Complaint. WHEREFORE plantiff demands judgment against 19 the defendant for the sum of Three Hundred Fifty ($350.00) Dollars, with interest on Fifty ($50.00) from the 15th day of July, 1952; with interest on One Hundred ($100.00) Dollars from the 15th day of August, 1952; with interest on One Hundred ($100.00) Dollars from the 15th day of September, 1952; and with interest on One Hundred ($100.00) Dollars from the 15th day of October, 1952; together with the costs and disbursements of this action. 20 Davis & GILBERT, No. 1 East 44th Street, New York City, N. Y. This will confirm our understanding concerning the arrangement under which you agree to lease to us equipment for the reception of the program service of Muzak Corporation and of Exhibit A, Annexed to Complaint. 22 space radio programs and the transmission thereof to rooms in the Taft Hotel, located at Seventh Avenue and 50th Street, New York, N. Y. 23 1. You agree to lease to us the following equipment: (a) one five-channel Wired Radio transmitter, complete with tubes and motor generator, necessary coupling equipment connecting the transmitter to house circuits, one special monitor for checking incoming and outgoing Muzak programs, and all accessories and wiring necessary for immediate operation; (b) 5 space radio receivers, complete with tubes, necessary aerials, monitor speaker and switching panel; and (c) 1550 Muzak receivers, complete with tubes, front, and speaker, volume and station selector control knobs, adapted for installation in night tables to be furnished by us; the arrangement of such installation to meet with our approval. 24 It is understood that you expect to be able to commence delivery and installation of such equipment during the first week in May 1937. We shall not be obliged to accept such equipment unless the quality of the reproduction rendered thereby as a whole is at least equal to the quality of the recent test demonstration made to us. The title to all such equipment shall remain in you and we agree to pay all taxes and assessExhibit A, Annexed to Complaint. 25 ments made upon such equipment; not to sell or in any manner encumber the same or create or permit to be created any lien thereon or any levy under any judgment or execution for collection of any obligation of ours or of the Hotel or in any other manner impair your clear title thereto; not to add any apparatus to, or remove any apparatus from the equipment as originally installed without your express approval and permission; to observe and strictly comply with all laws, statutes, ordinances and regulations applicable to said equipment; to insure said equip 26 ment for your benefit, to at least the sum of $30,000 in a responsible company, for any loss that may be sustained caused by fire or otherwise (provided that the amount of such insurance may be reduced at each annual renewal thereof during the first fifty-four months of the term hereof by the amount of rental payments theretofore made by us hereunder and not made the basis of such a reduction); and to turn over such equipment to you, upon the termination hereof, in as good condition as upon completion of installation, ordinary wear, tear and depre- 27 ciation caused by normal use excepted. 2. You agree to do all work incident to installing the five-channel transmitting equipment, aerial system for space radio, lines from space radio receivers to transmitters, space radio monitoring equipment, Wired Radio monitoring equipment and tubes. All such work shall be done in a manner suitable to the No. 3 Local of the Electrical Union. We, however, agree to install the Muzak receivers in the night tables. Exhibit A, Annexed to Complaint. 28 3. We agree to provide suitable space in the Hotel in which to install the motor generator and transmitting equipment, with suitable light and outlets for trouble lamps, soldering irons, etc., and suitable space on the roof of the Hotel for the housing of the space radio receivers and the erection of the necessary aerials. We also agree to supply the necessary power supply as specified by you, both for the transmitting equipment and the receiving equipment, together with fused switches approved by you. 29 4. You agree to provide free of charge a periodic monthly inspection of the equipment, and for a period of six months after the installation has been completed to replace any equipment or parts, other than tubes, which may be defective as to workmanship or material. Otherwise we agree to maintain the equipment at our own expense and in case after said six months' period we call upon you for service or materials we agree to pay therefor as bills are rendered at fair prevailing rates for both service and materials. 30 5. We agree to rent the equipment described above from you and to pay to you therefor a rental of $600.00 per month for the first fifty-four months of the term hereof, and a rental of $1.00 per annum thereafter, each installment of rental to be paid in advance. In addition we agree to pay to you, as a license fee for the use of such equipment, the sum of $100.00 per month, payable in advance. Should the number of space radio receivers be reduced to one, the other four Exhibit A, Annexed to Complaint. 31 transmitter channels to be supplied from telephone wires, the rental for the first fifty-four months will be reduced to $576.00 per month. If this is to be done we shall give you notice by April 24, 1937. 6. You agree to hold us harmless from all claims for patent infringement arising out of the use of any such equipment furnished by you, and that the use of such equipment will not result in illegal or objectionable electrical radiation outside of the hotel building. 32 7. This arrangement shall be for a period of fifty-four months from the date installation of such equipment is completed, and shall continue thereafter until terminated by us upon two months' prior written notice to that effect. In case of any failure on our part to turn over such equipment to you upon such termination, or in case we fail to comply with any of the terms and conditions hereof, you shall have the right to enter upon the premises and repossess yourself of such equipment with or without process of law; provided however that in case we fail to comply with any of the terms or conditions hereof, you will give us written notice of such failure or alleged failure, and we shall have thirty days to comply therewith (or to commence to comply therewith if such compliance requires time for its completion) and you shall not enter upon the premises to repossess yourself of such equipment until the expiration of said thirty days, or in any case if we comply therewith (or commence so to do as above set 33 |