Brief for the United States (1914)

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42 FAixT Iv'. (h) The remainder, up to an amount equal to the net film royalties, shall be assigned and paid to the Biograph Co. and the Armat Co., respectively, in the proportion of two-thirds to the Biograph Co. and one-third to the Armat Co. (c) If any balance remains after the foregoing paraients, it shall be divided and paid to the Edison Co., the Biograph Co., and the Armat Co. in the proportion of one-half to the Edison Co., one-third to the Biograph Co., and one-sixth to the Armat Co. (Par. 12.) (4) Provision was made for the continuation of the agreement beyond August, 1914, the date of the expiration of the patents which the Edison Co. assigned. This was accomplished by providing that on August 13, 1915, one year after the expiration of those patents, and at the end of each year thereafter, the Patents Co. should pay to the trustee who holds its certificates of stock all of its net profits for the preceding year, consisting of net machine royalties, net exhibitors' royalties, and ^^the net sum of any royalties which the Patents Co. may collect in lieu of the present film royalties'' as a dividend upon the capital stock of the Patents Co., and would instruct the trustee to divide the said dividends and to pay to the Edison Co. therefrom an amount equal to one-half of such dividend. (Par. 13.) (5) The agi eement may be terminated — (a) Tf the Patents Co. becomes bankrupt or ceases doing business; (h) if the Patents Co. is dis