Exhibit No. 99.2
AGREEMENT
This 29th day of May, 2001, between General Bearing Corporation ("GBC") 00
Xxxx Xxxxxx, Xxxx Xxxxx, Xxx Xxxx and Gussack Realty Company ("GRC") 00 Xxxx
Xxxxxx, Xxxx Xxxxx, Xxx Xxxx.
Background:
GBC and GRC were joint plaintiffs and counterclaim defendants in an action
against Xerox for contamination to property owned by GRC, at which GBC was a
tenant. The Court awarded plaintiffs approximately $1.95 Mil. (the "Award"), for
negligent damage to the GRC property which GBC no longer occupies and in which
GBC has no interest.
The attorneys fees and other litigation costs of the action totaling
$2,572,623 ("Costs") and paid by GRC, were incurred on behalf of both GBC and
GRC. In addition to the award for property damage, the Court imposed sanctions
on Xerox of approximately $28,000, due to its conduct in the litigation, which
was awarded to GBC and GRC (the "Sanction").
GBC and GRC desire to resolve the disposition of the Award and division of
the Costs as set forth below.
Now therefore, based on consideration of $10.00, the mutual undertakings
set forth herein and other good and valuable consideration the receipt of which
is hereby acknowledged, it is hereby agreed as follows:
1. GBC waives all claims in and to the Award and any portion thereof.
2. The Costs shall be shared, 70% by GRC and 30% by GBC.
3. GBC shall reimburse GRC $763,387, representing 30% of the net Costs
after deduction of the Sanction, over a four year period, with
interest @ 8.4% per annum, in the form of additional rent of
$18,780.17 per month, commencing June 1, 2001.
4. GRC waives and releases GBC from any further claim for indemnity of
the Costs
IN WITNESS WHEREOF of the parties have signed this agreement on the date above
first written.
GENERAL BEARING CORPORATION GUSSACK REALTY COMPANY
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxxxx Xxxxxxx
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Xxxxx X. Xxxxxxx, President Xxxxxxx Xxxxxxx, General Partner
