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preferred getting 150 percent on liquidation since preferred today is worth about 150. All other provisions quite acceptable. You pay nothing but [[underline]] release any claim against Germans. [[/underline]] Later Sachs said Berlin unagreeable wanted [[underline]] you and us [[/underline]] ^[[Bakelite]] buy 40% paying cash. Advise Sachs absolutely unagreeable. His associate returning Berlin [[strikethrough]] in [[/strikethrough]] Saturday to convince Berlin absolute control alone acceptable to us. [[strikethrough]] st [[/strikethrough]] Have not agreed you will surrender your claims for such percentage of shares but feel proposition might interest you." - [[underline]] Hays. [[/underline]] 
This all means as far as I can see:
1/ That we pay no cash.
2/ That we guarantee $25000 a year (present earnings) on the base of 7% [[underline]] cumulative [[/underline]] stock to present stockholders.
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3/ That preferred stock has no vote unless for some reason or another, preferred of 7% is not paid for 3 years.
4/ The present stockholders of B.G. get 49% of common stock, and Bakelite Corporation [[underline]] 51% [[/underline]]
5/ My present stock in B.G gets reduced from [[underline]] 28% to 20% [[/underline]] so that I get 20% of the cumulative preferred and 20% of the 49% common allotted to B.G. present stockholders.
6/ This brings [[strikethrough]] my to [[/strikethrough]] total holdings of Bakelite Corporation and myself to about 60% of total voting common stock of Bakelite Gesellschaft
7/ [[underline]] After 7% cumulative preferred is paid common gets its dividends [[/underline]] but as soon as common dividend gets above 7%, the preferred participates an equal 2% with the common then after the 7% + 2% + 2% is exceeded common gets all.
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