2264
THE NEW ZEALAND GAZETTE.
[No. 59

(c) (i) If no express provision be inserted either in the said Schedule or elsewhere in this agreement for the classification of the said films, the same may be classified by the renter.

(ii) Provided, however, that unless identical terms of hiring shall apply to all films the subject of this agreement any differentiation of such terms shall be deemed to be a classification within the meaning of this provision.

(iii) Provided also that the renter shall include in the notice of availability of every released film offered to the exhibitor pursuant to this agreement an intimation of the classification of such film.

(iv) Provided further that, if the renter shall offer to the exhibitor a lesser number of films than are provided for by this agreement the numbers of films stated in respect of each class shall be adjusted pro rata. If such adjustment should vary the classification of any picture already screened, and the hire paid, or to be paid in respect thereof, the variation in the amount of such hire shall be adjusted retrospectively, the average rentals from the different classes being the basis of such adjustment, and the renter shall debit or credit to the exhibitor in account any deficiency or excess of hire ascertained upon such adjustment. In the event of any dispute the matter shall be determined by arbitration.

(d) If during the film-renting season the renter releases or offers for release more films than are included in the statement required to be made to the Minister pursuant to section 7 of the Cinematograph Films Amendment Act, 1934, and if this agreement provides for the supply wholly or in part of unnamed or undescribed films, the unnamed or undescribed films to be made available to the exhibitor shall be the films released or offered for release in New Zealand which were first generally released in the country of origin, and in the case of any dispute as to which of those unnamed or undescribed films are included in this agreement the matter shall be determined by arbitration.

(e) If the renter shall fail during the period of supply designated herein to offer to the exhibitor any named or specifically described film required to be so offered, which film is released in the country of origin in the film-renting season corresponding to that to which this agreement has reference, the renter agrees that if he releases such film during the next succeeding film-renting season, he will offer such film to the exhibitor, in the same relative priority in relation to other exhibitors in the city, town, or locality in which the exhibitor’s theatre or theatres is or are situated, and upon the same terms, mutatis mutandis, as would have applied had the film been duly tendered during the period of supply under this agreement. Upon written notice of the availability of such film the exhibitor may within twenty-one days of such notice elect to take such film, and if he shall not within such period so elect he shall be deemed to have waived his rights under this subclause. In the event of any dispute as to the season in which any such film was released in the country of origin the matter shall be determined by arbitration.

(f) Nothing in this agreement shall prevent the parties (in the event of their so agreeing by express provision in the said Schedule or elsewhere in this agreement) from conferring on the renter a right to reserve or withhold from the films which would otherwise be offered to the exhibitor pursuant hereto such number of films as may be designated in that behalf: Provided, however, that if any of such films have been named or defined as in subclause (b) of this clause, then no reservation shall apply unless such film is adequately identified in the memorandum of reservation.

(g) Unless any of the said films is specifically contracted for first- or second-run exhibition, the renter shall not be under any obligation to supply the same until it has had first- and second-run exhibitions in the chief city or town of the provincial district in which the said theatre is situated.

(h) All films referred to in this agreement are to be of the standard size only (35 mm. width).

(i) Should the renter for any of the reasons hereinafter named be unable to deliver on the due date any of the films specified by title or other particulars herein or otherwise intended to be supplied hereunder, the renter shall, upon notifying the exhibitor, have the right either to select and supply some other film in lieu thereof or to reduce the number of films to be supplied to the extent that the renter is unable to deliver for any of the said reasons. In the event of the renter electing to supply a substitute film, it shall be optional on the part of the exhibitor whether he will accept the same by way of substitution, but he shall be deemed to have accepted if he fails within fourteen days after the receipt of notification to inform the renter of his rejection thereof; and in the event of his rejection the number of films to be supplied hereunder shall to that extent be reduced. The reasons for any of which the right conferred on the renter by this present paragraph (i) shall be deemed to arise are as follows:—

(i) Any cause beyond the control of the renter.

(ii) The loss or destruction of the film, or such damage thereto as to render it unfit for exhibition.

(iii) If in the opinion of the renter the delivery of the film would or might involve the renter or the exhibitor in a suit, action, or proceeding by any person claiming any interest in copyright or any other right or interest affecting the film.

(iv) If difficulties arise between the renter or its suppliers on the one hand and any person holding or claiming to hold any interest in copyright or any other right or interest affecting such film on the other hand, which in the opinion of the renter may render it unprofitable or inexpedient from the point of view of the renter to deliver such film.

(j) Any change by the renter of the name or title of any film shall not by reason only thereof be deemed to constitute such film a substitute film.

(k) Subject, however, to the provisions of subclause (e) hereof, if the renter releases during the said film-renting season a lesser number of films than he contracts to supply hereunder, the exhibitor shall not be entitled to require the renter to make good the deficiency or any part thereof out of films which are acquired by the renter bona fide for release by the renter in a subsequent season.

(2) Time and Place of Exhibition.

The exhibitor agrees to exhibit the said films, but only at the theatre or theatres hereinbefore specified on the exhibition date or dates fixed in the said Schedule or determined as herein provided, and save with the consent of the renter not to allow any print thereof to leave the exhibitor’s possession during the period specified for the exhibition thereof by the exhibitor, nor to exhibit or permit the exhibition of any such print at any other time or place. Unless otherwise provided herein, the exhibitor will not, without the written consent of the renter, exhibit any of the said films on any Sunday or between the hours of 11.45 p.m. on any day and 6 a.m. on the following day.

(3) Designation of Play Dates.

Unless the Schedule hereto designates the screening dates then, on the execution of this agreement or thirty days before the commencement of the exhibition period, the exhibitor may give written notice to the renter designating the dates during the first three months of such period on which he can take and exhibit a proportionate number of the films the subject of the contract, and he may give the like notice thirty days before each succeeding three months of such period. If the exhibitor fails to give any such notice the renter may designate the dates for exhibition of the said films during the relative three-monthly period, and in either case such designation shall be binding on both parties. No such designation of dates by the exhibitor shall entitle him to appropriate particular films to particular dates, the intention being that the renter shall determine the allocation of films to the dates so designated.

(4) Payment Clause.

(a) Flat Rentals: Subject in the case of percentage bookings to the special provisions specified in paragraph (b) hereof (which shall be deemed to apply only to the percentage portion of the hire), the hire payable for each film, together with all advertising, freight, and other charges, shall be paid free of exchange to the renter not less than three days in advance of the date of despatch from renter’s exchange or from the last previous exhibitor.

(b) Percentage Bookings: In any case where the hiring fee is to be computed entirely or in part upon the gross admission receipts of the said theatre, the exhibitor shall pay to the renter within seven days of the first authorized exhibition date, or if the exhibition