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+—-32 ~ 2 When a contract for a “flat cental” or a “guarantee against ‘a percentage” is played and United with approval or consent of Producer has extend“@ credit to the Exhibitor, but due-te no negligence on the part of United it is unable to collect all or part of the film rental due it.
3. When a contract for a “straight percentage” is played and —
by the nature of such contracteredit has to be extended-to the Exhibitor, but due to no negligence on the part of United it is unable to coilleet all or part of the film rentai due it.
Producer agrees that United may deduet Producer’s share of any such litigation fees and expenses from the monies that first gecome due Producer hereunder.
“ CHECKING
Producer authorizes United to check itself or ihicough an independent ageney such engagements in the United States and Canada for which United deems checking advisable, and to give reasonable consideration to checking each engagement Producer requests United to check. The cost of checking shall be borne by Producer and Pro
ducer authorizes United te deduet Producer's share of the cost from
the first monies due Producer by United hereunder.
CASH COLLECTION BASIS
Producer agrees United’s obligation of accounting and payment hereunder is on a “Cash Collectign” basis. Producer agrees that for
convenience in some terri . including the United States, United .
may account on a “Played and Earned” basis. Such accounting on a “Played and Earned” basix, however, shall not alter United’s basic obligation to pay and account on a “Cash Collection” basis, and Producer agrees that United may adjust its accountings from time to time to reflect accurately its obligation to pay and account on a “Cash Collection” basis.
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