3 9 4 D O C U M E N T 4 1 7 D R A F T C O N T R A C T 417. Draft Contract with Bamag-Meguin AG on a Cooling Machine [Berlin, before 15 November 1926][1] Prof. A. Einstein Dr. L. Szilard To Bamag-Meguin Corp. Draft contract in re. refrigeration machine. 1) In re the protection rights of the refrigeration machines described in the patent applications .............................................................................................................................. an option is granted to you. The mentioned applications comprise refrigeration ma- chines of three fundamentally different types, namely: 1. ammonia absorption refrigeration machines[2] 2. diffusion refrigeration machines[3] 3. steam jet refrigeration machines.[4] You can exercise the option for all three types, on 2 types, or even just on one. The option term lasts one year. Then, if you do not want to decide yet, the option term will be extended at your request for one more year upon payment of ?[5] marks. 2.) The rights and obligations that enter into force upon your acceptance of the option are the following: a) You obtain sole license to the rel[evant] patents for the countries ...........................................................................?.................... In these countries you pay a per-piece license of ? % according to the gross sales price of the entire system (hence, e.g., according to the sales price of the machine together with the ice box). If a sale by you of the rights for these countries to third parties occurs, then we receive 33% of the proceeds. b) We reserve for ourselves the right of disposing over the patents in the other countries. We share in the net profit at 51%, you at 49%. c) You do not have to make a cash payment upon acceptance of the option, but you guarantee the minimum license of 4,000 marks[6] for each of the three types of machines for which you exercise your option. The total, however, cannot fall below the minimum license of 6,000 marks.[7] d) If the payments by you to us in the year 1930 and in the following years for the countries under (a) do not correspond to minimum annual sales of: 1,400 machines in Germany 200 ″ ″ Αustria, etc. (I calculate by the rule of thumb of 200 machines annually per 10 million individuals),