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[[note in left margin in red]] Stipulations to Carbide [[/note in left margin]]
[[red underline]] Rafferty with Townsend [[/red underline]] (the two latter representing C&C) and I would abstain from voting, which [[red underline]] Townsend thought would be acceptable). [[/red underline]] This latter discussion occurred a few days later, [[red underline]] when C.P. Townsend visited me alone at [[/red underline]] my office.
4/ [[red underline]] All present directors directly and exclusively engaged in the business of B.C. [[/red underline]] to be reelected for at [[red underline]] least one year [[/red underline]] after merger is concluded. And if any of the latter desire to with draw their successors shall not be appointed except with consent of [[strikethrough]] the [[/strikethrough]] all the remaining members of the present directorate of BC
5/ [[red underline]] All contracts or obligations of B.C. to be respected [[/red underline]]
6/ All contracts and obligations with [[red underline]] international Bakelite [[/red underline]] companies to be respected in letter and spirit
7/ No changes in organization or directorate of Bakelite Limited 
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or Bakelite of Canada except with consent of the majority of the minority directors or [[strikethrough]] stock holder [[/strikethrough]] minority stockholders.
8/ Same for Pantone
9/ Ratio of exchange of shares to be based on relative value of net assets per share of each company plus ratio of relative net earnings of each respective company divided by 2. (For instance if [[strikethrough]] P [[/strikethrough]] we trade as follows.
   B = Book value of share of common of Bakelite
   E = Earnings [[overwritten]] of [[/overwritten]] 
       (net) of Bakelite
   b = Book value of Un. C&C
   e = Net earnings of Un. C&C
Then the calculation follows
   B + E = T/2 = A in which 
       A means average earnings plus 
       Book value of Bakelite and:
   b + e = t/2 = a.
       a being the average of C.C so that
   A/a = R.
       R. being the Ratio of exchange of shares. 
If R is say [[strikethrough]] 15 [[/strikethrough]] 13 then C.C. shall [[strikethrough]] pay [[/strikethrough]] ^[[exchange]] 13 shares of its