Charles E. and Noel K. Bradley - Page 26

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                    3. Litigation Settlement; Expense Reimbursement;                  
                    Releases; Termination of Voting Trust Agreement.                  
                    (a) * * * Ormet will pay to Bradley, by wire                      
               transfer of immediately available funds to an account                  
               specified to Ormet in writing, (i) $12 million (the                    
               “Bradley Litigation Settlement Price”) in settlement of                
               all direct claims (“Direct Claims”) by Bradley against                 
               Ormet, whether relating to the Litigations or                          
               otherwise, including but not limited to those libel and                
               slander claims described in that certain letter from                   
               Herbert Bennett Conner to Charles E. Bachman dated                     
               August 11, 1995, and (ii) $4 million as reimbursement                  
               of legal fees and expenses related to the Litigations                  
               (the “Litigation Reimbursement”).[28]                                  
                    (b) Each Member hereby acknowledges that any                      
               claims against the Defendants or the Other Litigations                 
               Parties other than the Direct Claims have no value, and                
               that no payment is being made to any Member in                         
               settlement of, or otherwise with respect to, such                      
               claims.                                                                
               Mr. Conner testified that the Settlement Term Sheet                    
          providing for the $12 million payment related only to the                   
          settling of petitioner’s filed direct claims against Ormet, not             
          to any libel or slander suits.  Further, Mr. Dixon stated that              
          there were no documents regarding petitioner’s physical injuries            
          available when Mr. Dixon gave a tax opinion regarding the                   
          settlement.  Mr. Bachman testified that he did not spend any time           
          defending Oralco against any personal injury claims because                 
          petitioner never filed any claims against it.  Mr. Boyle, Mr.               

               28 The Aug. 11, 1995, letter written by Mr. Conner and                 
          referred to in Mr. Bachman’s testimony was attached to                      
          petitioners’ opening brief, but petitioners never offered it into           
          evidence.  Petitioners are not permitted to supplement the                  
          evidence to include this letter by merely attaching it as an                
          exhibit to their brief.  Accordingly, the Court will disregard              
          this document.  See also supra note 25.                                     




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