J. Me Page & Me. &. Browning Company Two. the expenses of prosecuting and defending suits with respect to infringements and shall share recoveries obtained in infringsThis agreement also suthorized Colt's to grant ment actions, but requires it to pay you fifty percent of all sublicenses, royelties received. The together to grant two agreements of November cover both types of machine guns, sublicenses and requires the same 22, 1917, which repeat the right division of royalties. The agreement of July ©, 1941, modifies the agreeParagraph ment with respect to royalties from sublicensees. seven provides that such royalties received "shall be diviced ecually between the Colt company and other commissions ‘deducting end proper the Browning payments’to selling Jt thet selling expenses are not to be it, but is quite Colt's in making its are other similar expenses clear own sales incurred by other after | ‘third parties, but without deducting curred by the Colt company". by or company expenses incurred deducted, if it 3 in- nor finds it- self compeslied to pay a commission to a third party in connection with the sale of armas by F. NH. under the latter's license, so that its profit out of the royalty actually paid by F. NR. will be reduced, that payment mey be deducted by it from the royalty received before dividing with youe No other application of the. orovision now occurs to me, ; has no application If that to the situations the correct has not contended that it has incurred | commissions, royalty to apparently or be otherwise, paid bore is all by F. the which N. It expense will is of construction, now any expenses reduce its quite the existing, the sele other and peragraph the for Colt's by way of shere of the way. will bear F. He all the expense of manufacturing, and is paying Colt's an inersased royalty. Colt's is not claiming the deduction of an expenditure but rather the right to retain more than half of as larger receipt. As to the other transaction in which Colt's have paid F. N. because it hes sold in F. N.'s territory, the paragraph would seem clearly not to apply, for it provides only for deductions from royalties paid by sublicensees. Colt's has made duct no it contention thet the has construed it as it has mentioned. It paid paragraph applies, and not applying in either you the full royalty by of its the due upon concases its sales