The United States of America, petitioner, v. Motion Picture Patents Company and others, defendants (1912)

Record Details:

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OEIGINAL PETITION, EXHIBIT 8. 119 reels of approximateh^ one thousand (1,000) running feet per reel of ^'Licensed Motion Pictures'^ in any two consecutive weeks; and further that it may lease ^'Licensed Motion Pictures'^ on film of the width aforesaid from other ^^ Patents Company Licensees aforesaid" than the party of the first part, and sublet such ^'Licensed Motion Pictures" to motion-picture exhibitors. 8. The party of the second part further covenants and agrees that it will, in addition to the leasing prices hereinbefore referred to, pay to the party of the first part, at the end of each year during the continuance of this agreement, the following share of the net profit realized by it during that year from the subleasing and leasing, as aforesaid, of ^'Licensed Motion Pictures," to exhibitors and from the sale of ^'Licensed Projecting Machines," and from all other sources, to wit: Such a proportion of the balance, if any, of such net profit, remaining after deducting therefrom the dividend of seven per cent (7%) for that year on its issued preferred stock and an amount equal to a twelve per cent (125?) dividend on its issued common stock, as the number of running feet of ^'Licensed Motion Pictures" leased by it from the party of the first part during that year bears to the total amount of running feet of ^^ Licensed Motion Pictures" leased by it from all ^^ Patents Company Licensees aforesaid" during that year (^^ Licensed Motion Pictures" manufactured for or purchased by the party of the second part, as aforesaid, as well as " Licensed Motion Pictures" leased to it by '^ Patents Company Licensees aforesaid" produced from negatives made on its order, to be excluded) . 9. It is mutually covenanted and agreed by and between the parties hereto that by "net profit," as used in the last preceding paragraph, is meant moneys remaining after deducting from the gross earnings and income of the party of the second part from "Licensed Motion Pictures" and "Licensed Projecting Machines" and from all other sources, all operating expenses connected with the business of the party of the second part. 10. It is mutually covenanted and agreed by and between the parties hereto that the yearly payments out of the bal 55498—12 16