GLIA settles litigation: This is from the merger proxy statement:
In June 2000, Cartech Company, Ltd. filed a lawsuit against Gliatech and Guilford alleging breach of and interference with Gliatech's build-to-suit lease agreement with Cartech. The parties subsequently entered into a settlement agreement to resolve the litigation. Pursuant to the settlement agreement, Guilford agreed to pay Cartech $4.5 million within seven days after the merger has closed, or, if the merger agreement is terminated prior to closing or if the merger does not close by December 1, 2000, Gliatech will pay Cartech $4.5 million. In the event that Gliatech makes the payment to Cartech and upon Gliatech's written request, Gliatech and Cartech will enter into good faith negotiations for a new build-to-suit lease and Gliatech will receive a credit against the cost of the new lease of up to $2,187,500. The lawsuit has been dismissed by Cartech without prejudice, and the parties have agreed to a full mutual release of claims and termination of the existing build-to-suit lease effective upon receipt by Cartech of the payment by Guilford or Gliatech. Pending such payment, Cartech has agreed to abstain from further legal action against Guilford and Gliatech. |
