- 4 -
rejected. In or about December 1989, Goldman filed a verified
complaint in the Supreme Court of the State of New York
initiating litigation (the litigation) against petitioner, Edward
Berro, and Rita Berro. The complaint alleged that petitioner and
the Berros failed to honor the terms of the Option Agreement.
Goldman sought specific performance under the terms of the Option
Agreement, requesting that petitioner and the Berros be ordered
to deliver the 24.5-percent equity interest in petitioner at the
agreed upon exercise price. He also sought monetary damages in
excess of $3 million.
On or about April 27, 1990, petitioner, Edward Berro, Rita
Berro, and Mark Goldman, entered into an agreement settling the
litigation. As stated in the settlement agreement, petitioner
concluded that it was impracticable and hazardous to the
continued viability of petitioner to permit Goldman to exercise
his option and become a shareholder in petitioner. Pursuant to
the terms of the settlement agreement, Mark Goldman is required
to release petitioner and the Berros from any claims asserted in
connection with the litigation. Petitioner is required to pay
Mark Goldman the sum of $1 million in annual payments of $83,200
in satisfaction of all claims asserted in connection with the
litigation.
In connection with the settlement of the litigation,
petitioner claimed a lawsuit settlement deduction in the amount
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011