Subsidiary Company $ John Val Val A. Browning Browning November 3, 1954 ne important parts of forming this new company so I will give you the pertinent facts: 1. The company will be an entirely Company so that all existing orders to F.N. for guns, the owned capital same as subsidiary is of would be entirely at present. to get the Browning Arms behind our 4. The name of the subsidiary Se in The officers and directors would be theoretically the same, light of recent events there might be some minor changes. would probably be Browning 4, One of the main purposes would toward Section 102 of the Internal retain retain F.N.'s all of Industries, Inc. although be to take advantage of the new attitude Revenue Code which allows a company to more of its earnings and theoretically with two companies we could double the amount without paying our earnings out in dividends. Oe You also know of will want to mention want to do so, the important this to F.N. excise tax saving, but I am not sure you In fact, I am fairly sure you will not | : 6. In the future our contracts and correspondence with F.N. would be in the name of Browning Industries, Incorporated instead of Browning Arms Company. That would be the only change as far as F.N. is concerned from any standpoint which I can see. Regular royalties would still be paid to Trustee as at ‘ present. Will you kindly put the matter up to F.N, you know, a very important move for us, in Love, Daddy the proper light. It is, as