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110 OKIGINAL PETITION, EXHIBIT 7.
provision shall not prevent the Licensee from selling, as refuse, in the ''territory aforesaid/' second-hand positive or negative motion pictm^es which have been used or become shopworn or in any way damaged, to a manufacturer or manufacturers licensed by the Licensor to manufacture sensitized motion picture film for ''Patents Company Licensees/' or to a manufacturer to manufacture other articles than film therefrom, but only after the}^ have been rendered by the Licensee unsuitable for use as motion pictures by cutting or otherwise defacing them; nor from selling exposed positive or negative film (either waste or in rolls) known as "blank film" for use by exhibitors for leaders or for spacing or for similar purposes, but which shall not and can not be otherwise employed for the exhibition of motion pictures.
12. The Licensee further covenants and agrees not to lease, loan, rent out, sell, or offer for sale, or otherwise dispose of in the "territory aforesaid," motion pictures to anyone purchasing or otherwise obtaining, leasing, using, loaning, renting out, selling, offering for sale, or otherwise disposing of or dealing in motion pictures containing the invention of said reissued Letters Patent No. 12192, not the output of the Licensee or of other licensees of the Licensor under said Letters Patent.
13. It is further mutually covenanted and agreed by the Licensor and Licensee that the Licensee shall have the right to sell motion pictures, manufactured for or purchased by it as aforesaid, in or for "said export territory," w^hen the goods, addressed to the purchaser, agent, or consignee, are delivered to the vessel or to a transportation company for transportation to "said export territory," and not otherwise; but in no case shall sales "for export" of motion pictures be knowingly made by the Licensee to persons, firms, or corporations whom such Licensee has reason to believe will reimport them into the "lease territory aforesaid" for sale or use.
14. It is further mutually covenanted and agreed by and between the Licensor and Licensee that no lease of positive motion pictures manufactured for or purchased by the