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OKIGINAL PETITION, EXHIBIT 3. 59
in proportion to the reduction or increase in width of such narrower or wider ^'Hcensed film" below or above the width of such "licensed film'' of approximately one and three-eighths (If in.) inch or thirty-five (35) millimeters.
The Licensor and Licensee further mutually covenant and agree that the manufacturer of such ''licensed film" shall in the first instance — that is to say, when such film is billed and shipped by it — charge the Licensee with its price per running foot plus the maximum royalty aforesaid, and on the expiration of each year, counting from June 20th, 1909, shall adjust the royalty account of the Licensee as to ''licensed film" so billed and shipped to and paid for by the Licensee, according to the royalty schedule aforesaid, returning to the Licensee any amount the Licensee shall have overpaid, according to said schedule, and paying the balance to the Licensor; and that the royalties which may hereafter be paid to the manufacturer of such "licensed film" after the date hereof and up to June 20, 1909, under this agreement, shall be adjusted and the excess returned, in the same manner, the royalty rate to be charged for such period being the rate that would have been charged if the shipments of "licensed film" to the Licensee had been continued for a year at the same rate at which shipments were made for such period.
The Licensor further agrees that the dealings between the Licensee and the authorized manufacturer or manufacturers from whom the Licensee purchases such "licensed film" shall, in so far as the number of running feet ordered by or shipped to the Licensee or anything that would indicate or disclose the number of such feet is concerned, be a matter of confidence between the Licensee and such manufacturer or manufacturers, who shall not be at liberty to disclose, and moreover shall be bound in writing not to disclose, directly or indirectly, to the Licensor or any of the additional licensees hereinafter provided for, the number of such feet of "licensed film" so ordered by or shipped to the Licensee; the Licensor further agreeing to so arrange or provide for the reports and royalty payments to be made to it by such manufacturer or manufacturers that the