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Gov't Ex. 133, Agt. Edison & Eastman Kodak Cos. 571
for such film to the purchaser thereof a royalty amounting to such proportion of one-half (%) cent per running foot as the width of such film bears to the film approximately one and three-eighths of an inch (1% in.) in width, and which royalty the Eastman Company is to pay to the Patents Company on such film sold by it which is paid for by the purchaser thereof; such adjustment and payments to the licensee and the Patents Company to be made by the Eastman Company within thirty (30) days after the expiration of each such year, counting from June 20, 1909, provided, however, that if, at the time such payment of royalties is due from the Eastman Company to the Patents Company, the Edison Company should be indebted to the Eastman Company for "Licensed Film'' or other supplies purchased from or furnished by the East man Company to the Edison Company during such year, the royalties shall be applied by it on account of such indebtedness, the balance, if any, remaining over such indebtedness, to be paid by the Eastman Company to the Patents Company, and a statement at the same time shall be given by the Eastman Company to the Patents Company of the amount of such indebtedness incurred after June 20, 1909, to which said royalties have been applied by it.
It is mutually covenanted and agreed by and between the Patents Company, the Edison Company and the Eastman Company, that all royalties heretofore paid to the Eastman Company by the licensees of the license agreements with the Edison Company referred to in Paragraph 3, between June 20, 1908, and the date hereof, under and in accordance with the aforesaid agreements between the Edison Company and the Eastman Company, referred to in Paragraph 8, and all royalties that may be paid to the Eastman Company by the "Patents Company licensees" between the date hereof and June 20, 1909, shall be adjusted in the same manner as provided for in this paragraph (except that the royalties that may be paid by the licensees, George Kleine and the American Mutoscope & Biograph Company to the Eastman Company, for such period, shall be adjusted on the same basis as if each of said licensees had purchased "Licensed Film" from the Eastman Company at the same rate during the entire year preceding June 20, 1909, that such "Licensed Film" was billed and shipped to and paid for by each between the