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MEMORANDUM RESOOGANIZATION PLAN U.S. Radium Corp. October 13, 1936. At this time, the plan shapes up about as follows: 1. Pay $50.00 por ahare on each of the 4000 shares Preferred now outstanding. 2. Issue 1/2 share New $5.00 dividend non-cumulative Preferred for esch share present Preferred. 3. In lieu of accumulated dividends on present Preferred, issue 1/2 share Common for each share Preferred. 4. Reduce present outstanding Common - by giving 1/5 share New Common for each of the now outstanding shares. 5. Stock picture then would be as follows: a. 2000 shares $5.00 dividend non-cumulative Preferred - callable or liquidation provision at $100.00 per share. b. 5000 shares Common - at nominal or no par value. 6. There are three suggestions regarding dividend participation: a. After a $5.00 dividend on Preferred, all other earnings to go to Common. b. After a $6.00 dividend on Proferred, all other earnings to Common. C. After a $5.00 dividend on Preferred, the Common and Preforred to share and share alike. 7. A reduction in personnel more in line with the prospective volume and profits. 8. Estimated earnings and savings for dividend purposes:- a. Personnel Savinga $8000.00 b. Rent from plant, etc. 2000.00 C. Dividends from Teksler 6000.00* d. Radium Operations, OVer savings, under a. 5000.00** $21000.00 * Weksler profits to Radium, based on maintaining or increasing present volume of sales, at present margins of gross profit. ** Radium profits based on present volume and under present highly com-