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~ : memes rons 4B
. Producer agrees that United need—not-in any event submit for Producer’s approval contracts weth exhibitors in licensee territories.
OUTRIGHT SALES OR AGENCY DEALS
All eontracts for outright sales or with licensed agencies in Europe shall be submitted to Producer and any rejection thereof must be exercised by Producer in ‘accordance with the procedure set forth above in the paragraph entitled “Producer’s Right of Approval of Exhibition Contracts”.
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PROGRAM SALES _
The parties recognize that in certain foreign territories of the world it is necessary, because of existing customs, to distribute motion pictures on a so-called program basis and Producer does hereby authorize United to deduct the-~cost of the balance of the program from the price of such program hefore accounting on any such contract. Likewise, it is the custom in certain parts of the world to furnish free to exhibitors lithographs and trade accessories as part of the exhibition and Producer does hereby authorize United to deduet the retail cost of such lithographs and accessories from the sum realized by United for such exhibition. ¢
FRANCHISE AGREEMENTS A franchise agreement is one in which an exhibitor agrees to exhibit all of United’s product released at any time during two or more seasons. “Producer agrees that United may include Producer's motion pie
_ tures in any franchise which is presently outstanding,in any territory
outside of the United States and in any presently outstanding franchise in the United States if not declared to be illegal in a court of final jurisdiction. However, United may not include Producer’s motion pictures in any franchise agreement not presently outstanding in any territery where Producer has a representative without having first obtained the written consent of that representative.
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