2266
THE NEW ZEALAND GAZETTE.
[No. 59

(c) Return: The exhibitor shall promptly return all films,
together with spools and straps, in the same con-
dition as same were received (reasonable wear and
tear excepted), and properly packed in containers
and properly addressed to the renter’s exchange or
to any other place named by the renter in writing to
the exhibitor by delivery or consignment as afore-
said. The exhibitor shall consign by such means of
transport, other than by air, as may be specified in
writing by the renter.

(d) Freight: The exhibitor will pay all costs of transporta-
tion of the said films and/or accessories from the
renter’s exchange, and return to renter’s exchange,
or to another exhibitor, as the case may be.

(e) Damages: The exhibitor agrees that if for any reason
not beyond his control despatch instructions are not
carried out by him, with the result that loss is thereby
caused to the renter and/or the exhibitor to whom
the films should have been despatched in accordance
with the despatch instructions of the renter, he will
pay to the renter by way of liquidated damages a
sum equivalent to the amount of the loss thereby
suffered by the renter and/or such other exhibitor,
and will indemnify the renter against any claim pre-
ferred by such other exhibitor against the renter in
respect of such loss.

(10) Sound and Projection Equipment.

The exhibitor undertakes that the reproducing equipment
used in connection with any films supplied hereunder will
operate properly, reliably, and efficiently to reproduce such
recorded sound with adequate volume and high quality, and
that he will maintain and keep the projection machine and all
other apparatus used by him in a good, proper, and substantial
state of repair, order, and condition, and will at all times allow
free access for a representative of the renter appointed in
writing by the renter for that purpose to enter into every part
of the said theatre or theatres for the purpose of inspecting
and/or testing such sound and/or projecting equipment and
apparatus. If, after any such inspection or test, the repre-
sentative (being a person approved by writing in that behalf
by the Chief Inspector for the time being under the Cinemato-
graph Films Act, 1929) serve upon the exhibitor or leave for
him at the said theatre notice in writing requiring the ex-
hibitor, within a time specified in such notice, to do or to
refrain from doing anything in connection with the said equip-
ment or the use thereof which in the opinion of the representa-
tive is necessary for the more satisfactory exhibition of the
said films, the exhibitor shall observe and/or perform the re-
quirements of such notice within the time specified therein,
and in the event of the exhibitor failing to observe or perform
the requirements of such notice, and so long as such failure
continues, the renter shall be entitled to refuse to supply or
allow the said films or any of them to be exhibited, but never-
theless without prejudice to any other right or remedy the
renter may have under this agreement.

(11) Copyright.

(a) The right to exhibit the said films shall include a right
under all copyrights in respect of such films and of
the recorded sound in synchronism therewith, but
not the right to perform in public any musical work
included in such recorded sound.

(b) The exhibitor warrants that he will have at the date or
dates of the exhibition of each of such films an
effective license from the Australasian Performing
Rights Association, Limited, or other person or
association of persons designated in writing by the
renter upon inquiry by the exhibitor who or which
may control the right of public performance of such
copyrighted musical or other composition to perform
publicly such composition.

(c) Each party will indemnify the other against any claim
in respect of infringement of copyright or infringe-
ment of the right of public performance, as the case
may be, where the same arises by reason of a breach
by such first-named party of his obligations under
this clause.

(12) Slander or Libel.

The renter will indemnify the exhibitor against any claim
in respect of any slander or libel which arises exclusively
from the contents of any film exhibited pursuant hereto and/or
the use of advertising matter in relation thereto supplied by
the renter.

(13) Cutting and Alteration of Films.

The exhibitor shall exhibit each film in its entirety, and
shall not copy, duplicate, cut, or alter any film excepting with
the written or telegraphic consent of the renter.

(14) Loss and Damage to Films.

(a) The exhibitor shall forthwith on the receipt of any film
hereunder report to the renter on a form to be
supplied by the renter upon application by the
exhibitor the condition of such film.

(b) The exhibitor shall immediately notify the renter’s
exchange by prepaid telegram of the loss, theft, or
destruction of or damage or injury to any print. If
any film shall be received from the exhibitor by the
renter or any subsequent exhibitor in a damaged or
partially destroyed condition it shall be deemed to
have been so damaged or destroyed while in posses-
sion of the exhibitor, unless the latter before or
immediately after the first public exhibition thereof
shall have telegraphed the renter that such print was
received by the exhibitor in a damaged or partially or
wholly destroyed condition, and setting forth fully
the nature of such damage and the amount of
footage so damaged or destroyed.

(c) The exhibitor shall pay to the renter a sum equal to the
cost of replacement at the renter’s exchange for each
linear foot of film which may be lost, stolen,
destroyed, or so damaged as to be unfit for further
exhibition while in the possession of the exhibitor.

(d) If damage occurs to any film while in the possession of
the exhibitor, but such damage is not of such nature
as to preclude further exhibition, the exhibitor shall
pay to the renter a sum in proportion to the nature
and extent of such damage. The amount of such
damage shall be determined by mutual agreement
or by arbitration, but in no case shall it exceed the
value of the film as set out in subclause (c) hereof.

(e) The exhibitor shall not be relieved of his obligation to
return all discs and other accessories by reason of
the same having been broken, worn out, or damaged.

(15) Insurance.

The exhibitor shall insure and keep insured all films to be
supplied hereunder while in his possession under a block risk
policy effected and operated from time to time by a Board
constituted of an equal number of representatives of the Film
Exchanges Association of New Zealand (Incorporated) and
the New Zealand Motion Picture Exhibitors’ Association
(Incorporated), and constituted pursuant to an agreement
between the said associations, dated the 6th day of August,
1935, or to any agreement in substitution or renewal thereof,
and shall punctually pay to the said Board all contributions or
levies required of or made upon him by the said Board to
enable such insurance to be effected and maintained; and, in
the event of default by the exhibitor in payment of any such
contribution or levy, the renter may if it thinks fit pay the
same and recover the amount thereof from the exhibitor;
Provided, however, that in the event of such Board for any
reason ceasing to exist or to function, the exhibitor shall
insure and keep insured the said films whilst the same are
deemed to be in his possession hereunder against the same risks
as specified in the said block policy in some insurance office
approved by the renter, the total insurance cover in respect
of any one programme to be not less than £300 (or such other
sum as may be agreed upon from time to time or in default of
agreement fixed by arbitration), and shall punctually pay all
premiums in respect thereof, the renter having the right in
the event of default by the exhibitor to pay the same and
recover the amount from the exhibitor.

(16) Broadcasting prohibited.

The broadcasting of or from any films supplied under this
agreement is expressly prohibited.

(17) Switching.

The renter reserves the right to switch each and every film
supplied hereunder to any other exhibitor or exhibitors for
return in due course; Provided that such switching shall
not affect the normal screening of the programme of which
such film is a part. No costs or expense in effecting such
switching shall be borne by the exhibitor unless the switching
be at his request.

(18) Observation of Acts and By-laws.

The exhibitor and the renter shall as the same are applicable
to motion-picture theatres and/or the control, care, and use
of film at all times fully and effectively comply with all Acts
of Parliament and rules and regulations thereunder, as well
as with all by-laws of any local government or other authority
having power in that behalf for the locality or district wherein
the said films are to be used.