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CLAYTON THEATER 495
Both distributing companies installed systems on the terms of a 10-year contract guaranteeing supervision and service and requiring 25% of installation costs at the time of placing the order, balance on completion of installation or in monthly payments over a period to be arranged, and a monthly service charge approximating $200 per month. A resume of the RCA Photophone contract follows:
AGREEMENT dated , 19. . , between X Company,
a Delaware corporation, having its principal place of business in the City and State of New York, and , a corporation (hereinafter called the Exhibitor), having its principal place of business in the City of , State of
WHEREAS, the Exhibitor is operating the Theater,
located at in the City of , State of ,
(hereinafter called the Theater), and desires to obtain from the X Company a license to use in the Theater the electrical sound reproduction equipment hereinafter described, upon the terms and conditions hereinafter set forth.
Now, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:
1. (Agreement to install equipment on or before specified date, to provide instruction of operators, and to supervise operation for one week following installation.)
2. (Grant to the Exhibitor non-exclusive and non-assignable license to use the equipment for term of agreement.
3. (Terms of payment.)
4. (Title and ownership to remain in the X Company.)
5. (Costs of transportation and changes in the Theater to be borne by Exhibitor.)
6. (Agreement to inspect and supervise regularly all necessary repairs and adjustments in the equipment and to receive for such services a monthly service charge.)
7. (All risk of loss or damage to be borne by the Exhibitor.)
8. (Taxes to be paid by Exhibitor.)
9. (Exhibitor to supply power service.)
10. The Exhibitor will use the equipment only in the Theater and will not at any time during the term of this agreement keep, maintain and /or operate the equipment in any manner from time to time prohibited by the X Company. The Exhibitor will not, without the written consent of the X Company, alter the equipment in any particular, nor add anything to it, or take anything from it; and will not break the seal upon any part or collection of parts which is or may be sealed upon the delivery or installation of the equipment. Nothing herein contained, however, shall be construed to prohibit the Exhibitor from taking all reasonable steps to correct or repair the equipment in the event of an accident or breakdown.