The United States of America, petitioner, v. Motion Picture Patents Company and others, defendants (1912)

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50 ORIGINAL PETITION, EXHIBIT 2. upon the capital stock of the Patents Company, and the said trustee shall be instructed to divide and pay the said dividend in the following manner: (a) To the Edison Company shall be assigned and paid an amount equal to the net film royalties. (b) The remainder of the dividend, up to an amount equal to the net film royalties, shall be assigned and paid to the Biograph Company and the Arm^at Company, respectivel}^, in the proportion of two-thirds (f ) to the Biograph Company and one-third (J) to the Armat Company. (c) If any balance remains after the foregoing payments, it shall be divided and paid to the Edison Company, the Biograph Company, and the Ai^mat Company, in the proportion of one-half (4) to the Edison Company, one-third (J) to the Biograph Company, and one-sixth Q) to the Armat Compan3\ (13) The Patents Company further covenants and agrees that, on August 31, 1915 (one year after the date of the expiration of reissued Letters Patent Nos. 12037 and 12192), and at the end of each and every year thereafter, it will pay to the trustee provided for in paragraph 14 of this agreement all of its net profits for the preceding year, which consists of the net machine royalties, the net exhibitors' royalties and the net sum of any royalties which the Patents Company may collect in lieu of the present film royalties (such net amounts being determined as provided for in paragraph 12 hereof) as a dividend upon the capital stock of the Patents Company, and will instruct the trustee to divide the said dividend and pay to the Edison Company therefrom an amount equal to one-half (J) of such dividend. (14) The Edison Company further covenants and agrees not to pledge, sell or otherwise dispose of its capital stock in the Patents Company, except the minimum number of shares sufficient to qualify one-half of the total number of directors which the Patents Company may have, without the consent of the Biograph Company and the Armat Company, and the Edison Company further agrees to deposit its certificates of stock in the Patents Company, except such as represent the said qualifying shares for directors, with a responsible