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7. Copex represents and warrants to Harper Row that it is the sole proprietor of the said work; that the said work is original and does not infringe upon any statutory copyright or upon any common law right, proprietory right, or any other right whatsoever; that the said book contains no matter which is scandalous, obscene, libelous, in violation of any right of privacy, or otherwise contrary to the laws of the territory stated in Paragraph 1 hereof; that Copex is the sole and exclusive owner of the rights herein sold to Harper Row; that it has not previously assigned, pledged or otherwise encumbered the same; and that it has full power to enter into this agreement and to make the sale and other grant herein contained.

Copex agrees to indemnify Harper Row for, and hold it harmless from, any loss, expense (including reasonable attorneys' fees), or damage occasioned by any claim, demand, suit or recovery arising out of any breach of the foregoing warranties as determined by judgement finally sustained. If such claim, demand or suit is successfully defended, it is understood that Copex's indemnity hereunder shall be limited to fifty per cent (50 %) of the costs incidental to the defence of such claim, demand or suit.

8. If, in the reasonable opinion of Harper Row, there appears to be substantial risk of liability to third persons or of action against the work by the United States or Canadian governments, and if Copex, upon request by Harper Row, refuses to share equally with Harper Row in the cost (including reasonable attorneys' fees) to be incurred by Harper Row in connection with the elimination of and/or lessening of such risk or, having consented to share equally in such costs, Copex refuses to authorize changes to be made in the manuscript as recommended by Harper Row and/or its representatives, Harper Row, as owner of publication rights, may postpone or cancel publication without further liability to Copex.

Harper Row shall, with reasonable promptness, apprise Copex of any claim, demand or suit and Copex shall fully cooperate in the defense thereof. In the event of any claim, demand or suit Harper Row shall have the right to withhold payments due Copex under the terms of this agreement as security for Copex's obligations as stated herein.

Harper Row shall have the right to extend Copex's representations and warranties contained hereinabove to third parties with whom it makes agreements pursuant to the terms hereof (such as purchasers of subsidiary rights granted to Harper Row herein) and Copex shall be liable thereon to the [same extent as if such representations and warranties were originally made to such third parties. The warranties and indemnities as stated herein shall survive in the event this agreement is terminated. Harper Row shall notify Copex, in writing, of the identity of such third parties and of the nature of the agreements with such third parties.

9. Copex agrees that notwithstanding anything to the contrary contained in the Memorandum of Agreement and Schedule thereto, with regard to all copies of the hard cover book sold at discounts of fifty per cent (50 %) or more from Harper Row's suggested list price, the additional purchase price shall be ten per cent (10 %) of the amount actually received by Harper Row. Nothing herein contained shall be deemed to reduce the purchase price as stated in the preliminary Memorandum of Agreement and Schedule, with regard to any other copies sold in the regular channels of distribution.

10. Copex agrees that there shall be no purchase price Kayable on copies of the said work used by Harper for promotional purposes or sold by it at a price equal to or below;he cost of manufacture.

11. If Harper Row makes any sales of the said work by means of direct mail, circular, or coupon advertising, newspapers and periodicals, Copex agrees to accept five per cent (5 %) of the retail price thereof as the purchase price payable In such sales in lieu of the price stated in the preliminary Memorandum of Agreement and Schedule.