7. The Distributor shall pay to the Producer for the use of the prints of said production a sum equal to........(... %) per cent of the gross amounts paid by exhibitors as rental for each print and of the gross receipts of exchanges, subleases and licenses of the Distributor from all other sources, for the booking and exhibition of the prints of the said subject. The Distributor shall pay to the Producer on the delivery of the three or four prints of each subject as aforesaid as herein provided,
......dollars, as an advance on account of the payments to be made to the Producer for such production pursuant to the provisions of this paragraph; that thereafter the......% of the gross amounts and receipts above mentioned, from said productions, shall be retained by the Distributor until the amount of each advance thereon,.........dollars shall have been liquidated, it being strictly understood and agreed that the receipts from any one production shall not be retained by the Distributor to apply on the advances made on any other production.
The Producer shall furnish to the Distributor without additional advance by the Distributor, additional copies (not to exceed........) of any production when the Distributor deems it necessary for the best purposes of obtaining the maximum amount of rental out of a subject. The Producer agrees to furnish to the Distributor additional copies above........
for an advance of........dollars per copy, subject to reimbursement as last above provided.
8. The Distributor agrees and guarantees that the payments made to the Producer on account of the......... % as aforesaid on subjects which are delivered to the Distributor between the........day of.........19.., and the........day of
........, 19.., will aggregate such an amount as will be an average of........dollars per production, on or before the
........day of........, 19...
The Distributor agrees and guarantees, etc. (similar paragraphs).
And, in the event that such payments do not aggregate said sums within the time prescribed, the Distributor covenants and agrees to pay to the Producer at such time, the difference between the sums thereon paid on account of the said......%, and the amount of the said guaranty. Whenever the Distributor is required to make good any deficiency on any group of productions as above described, it shall be entitled to retain the........% of the gross amounts and receipts from said group until the amount of such deficiency paid by it shall have been offset.
9. The Distributor agrees to furnish to the Producer a weekly statement which shall show, in detail, the business transacted during such week, and shall include an itemized statement of the bookings and gross income during such week for each production; such weekly statements shall be mailed to the Producer promptly and in no event shall the mailing of any statement for any week be delayed beyond the period of one week. At the time of delivery of each statement, the Distributor shall pay the amount thereon shown to be due to the Producer in........funds; all statements shall be full, true and correct and shall show each and every booking and exhibition of prints during said week and each sale of franchise or territorial rights or income from other sources during such period.
The Producer, or its duly accredited representative, shall have free access at all reasonable times to the books, records, papers and vouchers of the Distributor, and its exchanges, pertaining to the bookings, rentals, franchises and income herein mentioned, and the Producer shall have the right to employ an accountant or accountants who, at all reasonable times, shall have access to all said books, at any of the offices, as well as the exchanges of the Distributor. The Distributor shall keep complete books and records of all business dealings relative to the films distributed by it under this contract.
10. The Distributor shall not permit any of the Producer's prints to be copied or duplicated or shown without the territory hereinbefore described and shall immediately notify the Producer of any infringement upon the productions herein mentioned, which comes to its knowledge.
The Producer will not exhibit said productions in said territory, nor will it cause the same to be exhibited therein, and the Producer will not lease, supply or lease prints of any of said productions to any other person for use in said territory during the term of this agreement, nor let, lease, market, dispose of, exhibit or permit others than the Distributor and its licensees to exhibit (so far as the Producer may control such exhibition by others) any of its productions whatever, except productions, the rights to lease or exhibit which were granted prior to the date of this agreement.
11. The Producer hereby gives and grants to the Distributor the right to enjoin any showing of any of the productions leased to the Distributor under this contract by any party not authorized so to exhibit them in the territory hereinbefore mentioned, or sue for damages therefor, but any such action shall be taken at the expense of the Distributor, and the Producer shall be in no way liable for the acts of the Distributor in relation thereto.
It is understood and agreed that the legal title to the said films shall remain in the Producer, and that this agreement is merely a license to use the films for........years from the date of delivery of the first print of each production, and that the Distributor will copyright or otherwise protect the title to the said films, in the names of the Producer, in the various countries included in the territory aforesaid.
12. Every print delivered to the Distributor under this agreement is to be returned to the Producer at the Producer's option after........years from the date of delivery of the first print of the production to which it relates, provided it has not been destroyed, stolen or rendered useless by unavoidable accident, in which case the Distributor if requested by the Producer shall supply proof covering the cause of its destruction or loss.