Barium & Chemicals, Inc. - Page 8

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          his expenses to approval by either E. Naylor or D. Naylor, from             
          August 1, 1994, forward.                                                    
               On August 19, 1996, family members filed cross-motions in              
          the Court of Common Pleas for Jefferson County, alleging                    
          violations of the settlement agreement.  One of the issues raised           
          in the cross-motions was the payment of compensation to Yanok.              
          On August 20, 1996, the court ordered, in part, that A. Pavlik,             
          in his capacity as treasurer of petitioner, pay to Yanok                    
          compensation for July and August 1996.  The court also ordered              
          A. Pavlik to discontinue a unilateral pay increase to Exley and             
          to reimburse petitioner for the amounts paid to Exley as a result           
          of the pay increase.                                                        
               On January 31, 1997, additional motions were filed regarding           
          disputes among the family members.  On February 28, 1997, the               
          Court of Common Pleas ordered, in part, as follows:                         
               Albert Pavlik, Jr., is enjoined from writing corporate                 
               checks for any payroll purpose * * * the Court ORDERS                  
               that all of the payroll related bills of the                           
               corporation shall be paid through Eleanor Naylor and                   
               those persons under her control with respect to the                    
          On April 4, 1997, the Court of Common Pleas modified the                    
          February 28, 1997, order as follows:                                        
               With respect to the Naylors being the only ones                        
               permitted to write payroll checks as set forth in its                  
               last Order, said Order is modified to the extent that                  
               Albert Pavlik, Jr., may write payroll checks to                        
               Virginia Exley in view of the Naylors position that she                
               is not a proper employee of the corporation.  However,                 
               the said Albert Pavlik, Jr., shall provide the Naylors                 

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