7. If in any year, beginning.........., the royalties from

...................., actually received by the Licensor from its several licensees referred to in...................., shall exceed the sum of $.................... cash, the said royalties for any such year shall be rebated so that above the said sum of $....................the Licensor shall receive royalties annually on machines at the rate of..........

per cent during that year and proper allowance shall be made therefor in the accounting for the first quarter in the ensuing year; and the Licensor agrees that it will keep full, accurate and complete books of account showing receipts of royalties from its said licensees and the date of payment thereof, which books shall be open to the inspection of the duly authorized representatives of the Licensee at all times; and that beginning

..............., it will render to the Licensee annually a verified statement of the total royalties actually received under said licenses herein enumerated or provided for.

8. In the event that the Licensee, failing to render statements and make quarter annual payment of royalties, as aforesaid, or any or all of them within thirty days after due date, then the Licensor may at any time thereafter, on notice, cancel this agreement without loss of right to recovery of any sum due it from the Licensee prior to cancellation, and upon giving such notice shall become immediately entitled to all payments over due as aforesaid, but it is agreed that such notice of cancellation is understood to be a notice of not less than..........days, given in writing, during which period the Licensee shall have the right to make good its default by rendering the statement and making the payment required of it.

9. The Licensor represents that the rates of royalties fixed herein are as low as those paid by other licensees and it agrees to give to the Licensee the benefit of any reduction in the rate of royalties and at equal terms to those which may hereafter be given to other licensees for...............covered or contemplated herein and as specified in paragraph 2 hereof.

10. The Licensor agrees to notify infringers of its patent to whom its attention may be called from time to time by the Licensee of such infringement, and upon notice and request, to assume the defense and pay the expenses of defending all suits and litigations that may be instituted against the licensee and its agents or customers because of the manufacture, use or sale of...............manufactured by the Licensee under this agreement and disclosed in the patents under which it is hereby licensed, and it further agrees to use all reasonable efforts to establish the validity of its patent No..........., and to secure to the.................... protection of the use of the inventions covered herein for machines of the class which the said Licensee is hereby licensed to manufacture and sell, but nothing herein contained shall be so construed as to render the Licensor liable with respect to any litigation between its various licensees.

11. The Licensee agrees to mark all apparatus made or sold by it under this license with the words "patented..........," and, if so requested to do by the Licensor, with the date or dates of any other patent or patents under which this license is granted.

12. The Licensee agrees not to subject or assign all or any portion of this agreement without the written consent of the Licensor.

13. It is agreed that the State of...............is controlled by the....................a corporation of the State of..............., and that therefore the State of..........

.....is included within the territory covered by this license upon and only upon the terms and conditions set forth in this paragraph, all of which the Licensee agrees to keep and perform and for failure to so keep and perform the State of

..............shall, at the option of the Licensor, such option to be notified to the Licensee at any time after such failure, be excluded from this license with like effect as if it never had been included herein, and in the event of such failure the Licensee agrees not to exercise within the State of..........

.....any of the rights hereby granted under the penalty of full damages suffered by the Licensor for so doing.

The Terms under which the State of...............is included herein are as follows:

The Licensee agrees to keep correct and full books of account, showing the business done in the State of...............and to render to the Licensor within thirty days after the end of each quarter-annual period, the first quarterly period to end

..............., complete and correct sworn statements of the business done by it under this license in the State of

..............., and further agrees to permit the..........

..........Company, or its officers or agents, to examine its books at all reasonable times in order to determine the truth tod completeness of said statements in so far as they apply to the business done hereunder in the State of...............

14. The Licensee hereby covenants that during the life of this agreement it will diligently and continuously manufacture, sell and market the...............machines which are the subject matter of this agreement and will use and exert its best powers to create a demand therefor and to increase and extend the business therein and the supply therefor.

15. This agreement shall bind the parties hereto and their successors and assigns.

In Witness Whereof the parties hereto have hereunto caused its respective corporate names to be subscribed and its respective seals to be affixed the day and year first above written.