Mr. Wilson: come to basis. -2- the conclusion As you that know, 8/11/27 a the settlement margin of should profit be in made this on gun that will not stand payment by us of Brownings is approximately of this burden between the a double royalty. Our royalty to the 41.50, We think that a fair adjustment Brownings and ourselves would be for the Brownings to reduce the per gun, This would leave in cash within the next two royalty to be paid them by us the burden of advancing years and guaranteeing the payment to Pedersen of that amount. We are not us to %.75 $20,000.00 minimum calling on the Brownings to assume any of the cash payment or to underwrite the minimum royalty provision. it will further be incumbent upon us to pay the Pedersen royalty until October, 1936, whereas the reduction in the Browning royalty will be effective only until 1932, when the Browning patent expires and royalties cease. Therefore, Brownings’ contribution to the matter will only be approximately half the royalties In it 20 which accrue to them from February 1, 1927 to June view of the proposed minimum royalty arrangement with will,of course, be to our interest not to change the gauge gun so as to avoid the Pedersen patent and also patent. until The Brownings 15, 1932. We believe June | of 3.75 per gun view of their in 12 gauge. royalty on the will that therefore your is a substantial be clients one and assured will is of agree their that entirely 15, 1932, Pedersen, Model 17 the Browning royalty a royalty reasonable in agreement to accept %.50 per gun on the same model We are not asking them to make a further reduction 12 gauge and we will therefore be required pocket as in 12 gauge royalty to Pedersen out of start making this gun in 12 gauge. of course, the patent When we accepted this gun from the Brownings it on the understanding that they were in position rights. Now we find that it is necessary also this matter this matter whether our and will help us carry this extra burden. Kindly give your immediate attention and wire us as soon as possible proposal is acceptable to the Browning interests. to another. For their and of my letter M. A. Browning. of We are sure information, July 29th to that your I am mailing Messrs. Very clients own pay all of the soon as we tribute our to will was, to deliver to pay join us in a copy of this letter Nebeker, Val Browning and truly yours, A. A. Dicke, Manager Legal Section.