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WEIL, GOTSHAL & MANGES Presentment Date: March 7, 1995 Attorneys for uebtors

, in Possession 767 New York, New York 10153 . (212) 310-8000 ! John J. Rapisardi (JR 7781) 1

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK .....______... ______..----x

In re : Chapter 11 Case Nos. METALLURG, INC., AND : i SHIELDALLOY METALLURGICAL 93 B 44468 (JLG) ' CORPORATION, : 93 B 44469 (JLG) (Jointly Administered) |

Debtors. : ....______...... _____x APPLIED INDUSTRIAL : MATERIALS CORPORATION, Plaintiff, :

-against- : Adv. Proc. No. 93/9637A *

METALLURG, INC., AND : SHIELDALLOY METALLURGICAL CORPORATION, : Defendants. ------x |

NOTICE OF PROPOSED STIPULATION AND ORDER l (a) COMPROMISING AND SETTLING THE CAUSES OF ! ACTION OF APPLIED INDUSTRIAL MATERIALS CORPORATION ("AIMCOR") AGAINST THE DEBTORS, (b) ALLOWINC

AIMCOR'S ADMINISTRATIVE AND UNSECURED CLAIMS, AND | (c) DISMISSING ADVRDRARY PROM anING l

! PLEASE TAKE NOTICE that upon the annexed stipulation and order, dated February 27, 1995, of

Metallurg, Inc. and Shieldalloy Metallurgical Corporation, a

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as debtors in possession (collectively, the " Debtors"), and

Applied Industrial Materials Corporation ("AIMCOR"), (i)

approving the compromise and settlement of certain causes of action relating to the reclamation of certain goods, (ii)

allowing AIMCOR's administrative and unsecured claims

against the Debtors, and (iii) dismissing that certain

adversary proceeding commenced on September 14, 1993 by

AIMCOR against the Debtors, the undersigned will presented

for signature the attached order to the Honorable James L.

Garrity, Jr., United States Bankruptcy Judge, Room 610-2 of the United States Bankruptcy Court, Alexander Hamilton

Customs House, One Bowling Green, New York, New York 10004,

at 12:00 noon on March 7, 1995. PLEASE TAKE FURTHER NOTICE that responses, if any,

to the proposed stipulation and order shall be in writing,

shall conform to the Federal Rules of Bankruptcy Procedure

and the Local Rules of Bankruptcy Court, shall set forth the

name of the objectant, the nature and amount of any claim or the interests held or asserted by the objectant against the

Debtors' estates or properties, the basis for the objection,

and the specific ground therefor, and shall be filed with

the Bankruptcy Court, with one copy to chambers, together

with proof of service thereof, and served upon Weil, Gotshal

& Manges, Attorneys for the Debtors, 767 Fifth Avenue, New |

2

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11:30 a.m. on March 7, 1995. Unless objections are received by that time, the order may be signed. *

Dated: New Yvrk, New York s ; February 27, 1995 i

D k Cv3MM i J hn J. isahdi (JR 7781)

GOTSHAL & MANGES Attorneys for Debtors in Possession 767 Fifth Avenue New York, New York 10153 (212) 310-8000 |

To: THE PERSONS ON THE ANNEXED SERVICE LIST

..

|

3

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- f. . METALLURG/SHIEL0 ALLOY SERVICE LIST ! -

1 . 176422 Canada Inc. Boulanger. Hicks. Stein & Clarendon Ltd. * 4 - 1920 Marie Victoria Churchill P.C. 100 First Stamford Place * Contrecoeur. Quebec 135 East Stamford. CT 06902 Canada New York. NY 10022 Attn: Jordan Most Attn: Michael S. Elkin. Esq. ' i' Considar. Inc. Abraham. Pressman & Bauer. P.C. Bruce H. Roswick. Esq. 630 ; 1818 Market Street 101 East New York NY 10017

4 35th Floor 32nd Floor Attn: Ed Dowling ; Philadelphia PA 19103 New York. NY 10022 Attn: Matthew H. Krekstein. Esq. Corporacion Nacional Del , * Cobre De Chile Advanta Leasing Corporation Buchanan Ingersoll Professional c/o Codelco (USA). Inc. 1020 Laurel Oak Road Corporation 177 Broad Street. 14th F1. ! P.O. Box 1228 58th Floor USX Tower Stamford. CT 06901 i Vonrhees. M 08043 1228 600 Grant Street Attn: Mr. Raul Martinez j Attn: Cole B. Silver. Esq. Pittsburgh. PA 15219 i Attn: Gregory A. Pearson. Esq. Cressona Altminum Co. | AIOC Corporation 53 Pottsville Street - 230 Calame. Lineberger. Graham Pena Cressona. PA 17929 i New York NY 10169 Burney Foreman Torres & Garza. Attn: Glenn 5, Kolleeny L.L.P. P.O. Box 3064 Davis. Polk & War k ell - Albert Hayoun Houston. TX 77253 450

< 1434 Starling Lane Attn: Eloise A. Guzman, Esq. New York NY 10017 Cherry Hill. NJ 08003 Attn: Don Bernstein. Esq. j Cambior. Inc. ; 800 Rene Levesque Blvd. West Deconnissioning and Regulatory ' Altheimer & Grey Suite 805 Issues Branch ; 10 South Wacker Drive Montreal Quebec H38 1X9 Division of Low Level Waste ; Chicago IL 60606 Canada Management ar.d Decommissioning ' Attn: Melanie R. Cohen. Esq. Attn: Bruce Taylor United States Nuclear Regulatory Connission i Anderson Kill 011ck & Oshin:;ky Canada Life Assurance Company Washington, D.C. 20555 i One Gateway Center U.S. Investment Division Attn: John H. Austin | Suite 0901 330 University Avenue Chief ; Newark. M 07102 Toronto. Ontario MSG 1R8

; Attn: Paul E. Breen. Esq. Canada Deutsche Bank A.G. 5 Attn: Mary Lue S. Bill ' 31 West 52nd Street Atlantic Electric Company New York. NY 10019 ~ . 1199 Black Horse Pike Carlton. Fields. Ward. Eemanuel. Attn: Gregory Hill ; Pleasantville M 08233 Smith & Cutler. P.A. 255 S. Orange Avenue Dr. W. Fergus Porter Suite 1600 8 Fraser Road Bayh. Connaughton. Fensterheim Orlando. FL 32801 Westport. CT 06880 ' & Malone. P.C. /.ttn: Robert L. Young. Esq. ; 1350 Eye Street. N.W. ' Suite 200 Chasical Bank Fabiano J. Pegurier Washington. DC 20005 . 40th Floor Preca Almirante Belfort Attn: Andrew C. Lynch. Esq. New York, NY 10017 Vieira, 12/1101 Attn: E. Lee Smith. Esq. Rio De Janeiro, 22.440 :~ Biernan Everett Foundry Co. Brazil c/o % ven Schnitzer. P.A. Chemical Bank 40 West Northfield Road 270 Park Avenue. 40th Floor a P.O. Box 691 New York. NY 10017 FESIL KS Livingston. M 07039-0691 Atta: Mark Rachan Briskebyveien 48 Attn: Stever.Schnitzer 0259 05102 Nosway Chemical Bank c/o Thacher. Proffitt & Wood Bingham. Dana & Gould 270 Park Avenue 2 World Trace Center 150 Federal Street 30th Fl. New York, NY 10048 Boston, MA 02110 1726 New York. NY 10017 Attn: Mr. Christopher F. Graham Attn: Mary DeNevi. Esq. Attn: Agnes Levy Finkel Goldstein Berzow & Blakinger. Byler & Thomas. P.C. CIGNA Investments. Inc. Rosenbloom 28 Penn Square 900 ".ottage Grove 26 Broa &ay Lancaster PA 17603 5-307 Suite 711 Attn: Barry A. Solodsky. Esq. Bloomfield. CT 06002 New York. NY 10004 Attn: Thomas Shea Attn: Harold S. Berzow. Esq.

1 recruary 27, 1995 ' > . METALLURG/SHIELDALLOY SERVICE LIST | - | * - Fred Lonner & Co.. inc. Katz. Greenberg & Norton Melih Turhan One Penn Plaza Naima Sok NO 10/A ' 105 East Fourth Street Suite 3509 Cincinnati. OH 45202 Maya /p D. 8 * New York NY 10119 Attn: Louis Katz. Esq. Yesilkoy. Istanbul Kerr McGee Chemical Corporation Gerald Stoch. Esq. P.O. Box 25861 Skotch & Churchmark Co., L.P.A. Oklahoma City. OK 73125 Metal Exchange Corp. 24930 Detroit Road Attn: Mr. F. Javier Vela P.O. Box 7446M Westlake. OH 44145 St. Louis. MD 63195 Kirkpatrick & Lock. hart Attn: Tony Clover 1500 Oliver Building Goesta Loefstrand Pittsburgh, PA 15222 Midlantic National Bank Ekvagen 9 Attn: Paula A. Schmeck. Esq. 499 Thornall Street Saltsjoevbaden. 5-133334 Edison, n.1 08818 Sweden Klaus Naegeli Attn: Judy Land CH - 8123 Erbmatingen ! Gerstacherstrasse. Milbank. Tweed. Hadley & McCloy | Gulf Chemical & Metallurgical Switzerland 1 Chase Plaza | P.O. Box 200785 New York, NY 10005 | Houston TX 77216 Attn: John J. Jerome. Esq. I Attn: Alan Orr Kurt Ha mann Paul M. Fried. Esq. 4053 Juechen 7 Harry Goldberg & Sons Schulstrasse 3 Mitsui & Co. (USA). Inc. P.O. Box 1028 Germany 200 Park Avenue Perth Amboy NY 08862 38th Floor ; New York. NY 10166 Laporte. Inc. Attn: Yoshi Kuriyama Harry Goldberg & Sons One Woodlawn Green Sam Danzis c/o Markowitz & Zindler Suite 240 3131 Princeton Pike Charlotte. NC 28217 Mitsui & Co. (USA) Inc. Lawrenceville. NJ 08648 Attn: Thomas J. Riordan. Esq. 200 Park Avenue Attn: Linda Schwimer. Esq. New York NY 10166 Le8oeuf. Lamb. Greene & McRae Attn: Diana Mandice Hodgson. Russ. Andrews. Woods 1000 Kearns Building & Goodyear 136 South Main Street Ibegan Guaranty Trust Co. of N.Y. 1800 One M & T Plaza Salt Lake City. UT 84101 60 Wall Street Buffalo, NY 14203 Attn: Penrod W. Keith New York, NY 10262 Attn: John F. Donogher. Esq. Attn: Ms. Unn Boucher LeBoeuf. Lamb. Greene & MacRae Mr. Albert Gordon ' Hoeganaes Corporation 185 Asylun Street River Road & Taylors Lane CityPlace II Mrs. Erika Grmfeld Riverton. K) 08077 Hartford CT 06103 50 Glenside Place Attn: Douglas Meehan Attn: Paul T. Fitzpatrick. Esq. Chappaqua. NY 10514

Heter Douglas Metals Leonard C. Ferebee P.O. Box 74413 179 Lower Morden Lane Naobius Products Company. Inc. 011cago. IL 60690 Morden 1000 Old Pond Road Surrey. SM4 4SP Bridgeville. PA 15017 England Attn: Harry Stuart Huxley Barter Corporation 330 National Westminster PLC 34th Floor Marks & Murase 175 Water Street New York. NY 10017 29th Floor Attn: Bruce H. Roswick. Esq. New York. NY 10022 New York. MY 10038 Attn: Michael Z. Browntein. Esq. Attn: W. David Apps. V.P. Huxley Barter Corporation Eric 5, Bro m. Esq. W.' Cort Javarone j 780 Third Avenue 34th Floor Mary Jo White Newco Metals. Inc. New York, NY 10017 United States Attorney 7628 South S. R. 13 Attn: Brure H. Roswik. Esq. 100 Church Street Pendleton. IN 46064 New York NY 10007 Attn: Kipp Barber Joachim S. W. Nietz Attn: E &ard A. Smith. Esq. 54 Veronica Street Nort Nestern National Life Kloofendal Extension 1 McCarter & English Ir:surance Co. Roodepoort. 1710 Four Gateway Center c/o Washington Square Capital. Inc. South Africa 100 Mulberry Street 100 Washington Square Newark. K) 07102-40 % Suite 800 Attn: Lisa S. Ponsall. Esq. Minneapolis, MN 55401 2147 John T. Jennings Attn: Mr. E&ard B. Krekeler. Jr. 8 Locust Lane Glen Head. NY 11545

2 recruary a. an 1 * ' - - METl4. LURG /SHIEL0 ALLOY SERVICE LIST |

.

- * O'Melveny & Myers Robert Fonnei, Esq. Tenzer. Greenblatt. Fallon & Kaplan Special Counsel for Fuel Cycle & 405 Lexington Avenue , 153 East * New York. NY 10022 Safeguards Regulation New York. NY 10174 * Attn: Peter V. Pantaleo. Esq. Office of the General Counsel Attn: Andrew B. Exkstein. Esq. 4 Nuclear Regulatory Comission | Ohio Environmental Protection Agency Washington. DC 20555 Thacher Proffitt & Wood Southeast District Office Two World Trade Center 2195 Front Street New York. NY 10048 Logan. OH 43138-9031 Attn: Joel B. Harris. Esq. Rock Creek Alumina | 320 Huron Street ; | Elyria. OH 44036 The First National Bank of Boston ' Chio Power Conpany Attn: Jim Skoch 100 Federal Street P.O. Box 100 Boston, MA 02110 Canton. Ohio 44712 Rogers & Wells Attn: Elizabeth A. Ratto. 200 Park Avenue New York NY 10166 The Ore & Chemical Corporation Oppenheimer & Co., Inc. Attn: Selinda A. Melnik. Esq. Metallgesellschaft Limited World Financial Center 520 Madison Avenue 200 Liberty Street. 8th Floor Rolf Thome New York. NY 10022 New York. NY 10281 Kirchstrasse 11 Attn: Howard td Steinberg. Esq. Attn: Rick Paige. Esq. 4040 Neuss 1.

Germany Timminco Metals . Oppenheimer Wolff & Donnelly P.O. Box 66512 j Suite 3400 Chicago. IL 60666 | 45 South Seventh Street Ropes & Gray Minneapolis, MN 55402 One International Place Attn: Michael B. Frisco. Esq. Boston. HA 02110 2624 Townley & Updike Matthew E. Roy. Esq. Attn: Harold J. Marcus 405 Lexington Avenue New York, NY 10174 | Pension Benefit Guaranty Shieldalloy's UAW Enployees Attn: Edward M. Flint. Esq. Corporation of District 65 Office of the General c/o Security Plan United States Environmental Counsel. 22500 13 Astor Place Protection Agency 2020 K Street N.W. New York. NY 10003 Department of Justice Washington, D.C. 20006 Attn: Steve Nickerson Environmental Enforcement Section Attn: Bruce H. James. Esq. P.O. Box 7611 Si pore & Mayewski. P.C. Ben Franklin Station Piper & Marbury P.0 Box 429 Washington. D.C. 20044 Charles Center South Spring House. PA 19477 0429 Attn: Henry S. Friednan. Esq.

36 South Charles Street Attn: Stephen R. Signore. Jr. Esq. ~ Baltimore. 70 21201 Walter Fischer | Attn: Mark J. Friedaan. Esq. Skoch & Churchmach Co., L.P.A. 32 East Gate ' Susan S. Sands. Esq. 24930 Detroit Road Manhasset. NY 11030 Westlake. CH 44145 Po11cano & Manzo Attn: Gerald Stoch. Esq. | ' Park B0 West Walter Sch macher Plaza II SKW Metals & Alloys. Inc. Lakronstr. 29 Saddle Brook. 0 07662 P.O. Box 360070M Dusseldorf. 40625 Attn: Peter R. Nurge Pittsburgh, PA 15251 Germany

Quebec Metal Powders. Inc. 770 Hest Shererocke St. State of New Jersey White & Case Suite 1800/ Montreal PQ Department of Environmental 1155 6th Avenue Montreal. Protection and Eisergy New York NY 10036 Canada Office of the Conssissioner Attn: Allan Gropper. Esq. CN 402 Trenton W 08625-0402 William T. Joses. Esq. Richards. Layton & Finger Attn: Mr. Scott A. Weiner Cleary & Josen One Rodney Square 1420 Walnut Street P.O. Box 551 State of Jersey Suite 300 Wilmington, Delaware 19899 Department of Law and Pthlic Philadelphia, PA 19102 Attn: Thomas L. Anbro Safety Division of Law Todd V. Jones Environmental Protection Section Richard H. Hughes Justice Complex Riker. Danzig. Scherer. Hyland CN 112 & Perretti Trenton. HJ 08625 Headquarters Plaza Attn: Kenneth W. Elwell One Speedwell Avenue Morristow1. NJ 07962 1981 Stroock. Stroeck & Lavan Attn: Craig J. Donaldson. Esq. 7 Hanover Square New York. NY 10004-26 % Attn: Larry Handelsman. Esq.

3 . . .

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. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------x

In re : Chapter 11 Case Nos. METALLURG, INC., AND : SHIELDALLOY METALLURGICAL 93 B 44468 (JLG) CORPORATION, : 93 B 44469 (JLG) (Jointly Administered) I Debtors. . , ______------x I | APPLIED INDUSTRIAL : MATERIALS CORPORATION, Plaintiff, :

-against- : Adv. Proc. No. 93/9637A

METALLURG, INC., AND : SHIELDALLOY METALLURGICAL CORPORATION, : Defendants. ------x , STIPULATION AND ORDER (a) COMPRCMISING AND SETI' LING THE CAUSES OF ACTION OF APPLIED INDUSTRIAL MATERIALS CORPORATION ("AIMCOR") AGAINST THE DEBTORS, (b) ALLOW- * ING AIMCOR'S ADMINISTRATIVE AND UNSECURED CLAIMS, AND (c) DISMIFSING ADVERSARY PROCEEDING

RECITALS:

A. On September 2, 1993 (the " Petition Date"), , Metallurg, Inc. ("Metallurg") and Shieldalloy Metallurgical

Corporation ("Shieldalloy," collectively the " Debtors") each commenced a voluntary chapter 11 case under chapter 11 of

title 11, United States Code (the " Bankruptcy Code").

Pursuant to an order of the Court dated September 3, 1993,

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the Debtors' chapter 11 cases have been consolidated for

4 procedural purposes only and are being jointly administered.

B. Each of the above Debtors continues to oper-

ate its business and manage its propertiec as a debtor in | 1 possession pursuant to sections 1107(a) and 1108 of the

Bankruptcy Code. | 1 C. On September 14, 1993, Applied Industrial Materials Corporation ("AIMCOR") commenced an adversary

proceeding against the Debtors (t.he " Adversary Proceeding")

seeking reclamation of certain goods. The Adversary - Proceeding seeks, inter alia, to reclaim (i) from Metallurg

337.5 net tons of olivine sand, valued by AIMCOR at

$28,035.00 (the " Sand") in connection with which AIMCOR

served Metallurg with a reclamation demand on September 7,

1993, and (ii) from Shieldalloy 25,000 pounds of

ferrovanadium, valued by AIMCOR at $83,441.00 (the "Ferrovanadium") in connection with which AIMCOR served Shieldalloy with a reclamation demand on September 7, 1993. D. Additionally, AIMCOR has sought to reclaim from Shieldalloy 400,000 lbs. of low carbon ferrochrome ("Ferrochrome") valued by AIMCOR at $186,990.00 in connec- tion with which AIMCOR served Shieldalloy with a reclamation

demand on September 7, 1993. The Ferrochrome is not a sub- ject of this Adversary Proceeding.

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E. By Order to Show Cause dated September 30,

1993 (the " Order to Show Cause"), AIMCOR sought a temporary restraining order and injunctive relief enjoining the

Debtors from " consuming, selling, transferring, encumbering,

assigning, or otherwise disposing" of the Sand or the Ferro-

vanadium and seeking expedited discovery in the Adversary

Proceeding. F. On January 7, 1994, the parties entered into a stipulation and order which was so ordered by the Court on

January 10, 1994 (the " January 1994 Stipulation and Order") to obviate the need for further proceedings in connection

with the Order to Show Cause. ) G. The parties then continued with discovery in the adversary proceeding and appeared before the Court for )

status conferences on September 22, 1994, and December 15,

1994.

H. In order to minimize the cost to the parties of continuing litigation, the parties have reached a compro- | mise and settlement of the Action subject to the terms and

conditions set forth below.

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AGREEMENT:

1. In full and complete satisfaction of any and all claims that have been or could have been asserted against the Debtors' by AIMCOR, including without limitation those set forth in the Complaint, the Debtors agree to grant the claims of AIMCOR as administrative priority claims par- suant to sections 546 (c) and 503 (b) of the Bankruptcy Code in the amount of: (i) $28,035.00 against Metallurg, and (ii)

$83,441.00 against Shieldalloy. Such claims represent the value of the Sand and the Ferrovanadium respectively. Additionally, the Debtors agree to allow AIMCOR a general unsecured claim against Shieldalloy in the amount of

$186,990.00 representing the value of the 'errochrome.

2. The value of such claims are co be paid to AIMCOR pursuant to a confirmed chapter 11 plan or plans of reorganization for the Debtors.

3. Upon approval hereof and upon distribution to AIMCOR based upon the allowed amounts of AIMCOR's claims against the Debtors, AIMCOR, its respective predecessors-in-

' interest, successors, affiliates, assigns, employees and agents (collectively, "AIMCOR'), release and discharge the Debtors and their respective predecessors-in-interest, successors, affiliates, assigns, employees and agents (collectively, the " Debtors") from any and all actions,

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. causes of action, suits, debts, dues, sums of money, ac- counts, reckonings, bonds, bills, specialties, covenants,

contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extends, executions claims

and demands whatsoever, in law or equity, which against the .

Debtors, AIMCOR ever had, now have or hereafter can, shall |

or may have, for upon, or by reason of any matter, cause or

1 thing whatsoever, including without limitation those claims that were asserted or could have been asserted against any of the Debtors in the Complaint and in the Action, from the

beginning of the world to the day of the day of this Agreement.

4. Upon approval hereof and upon distribution to AIMCOR based upon the allowed amounts of AIMCOR's claims . against the Debtors, the Debtors, their respective

predecessors-in-interest, successors, affiliates, assigns,

employees and agents (collectively, the " Debtors"), release

and discharge AIMCOR and its respective predecessors-in- , 1 interest, successors, affiliates, assigns, employees and | 1 agents (collectively, "AIMCOR") from any and all actions,

causes of action, suits,. debts, dues, sums of money, ac- counts, reckonings, bonds, bills, specialties, covenants,

contracts, controversies, agreements, promises, variances,

trespasses, damages, judgments, extends, executions claims

5

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' and demands whatsoever, in law or equity, which against

1 } AIMCOR, the Debtors ever had, now have or hereafter can, i shall or may have, for upon, or by reason of any matter, t cause or thing whatsoever, including without limitation

' those claims that were asserted or could have been asserted

against any of AIMCOR in the Action, from the beginning of

the world to the day of the day of this Agreement.

5. This Agreement and the compromise and settle-

ment provided for herein constitutes a compromise and

settlement governed by Rule 408 of the Federal Rules of

Evidence. Nothing contained herein shall be deamed an

admission or concession by either party in respect of any of

the facts or claims that were, or could have been, alleged

in the Complaint, and except in respect of an action seeking

to enforce the terms of this Agreement, this Agreement shall

not be quoted or referred to by either party other than a

reference to this paragraph 5. 6. Pursuant to Federal Rule of Bankruptcy Procedure 7041, AIMCOR hereby withdraws the above-captioned

adversary proceeding, which shall be deemed dismissed with | prejudice, each party to bear its own costs.

7. The Debtors are hereby relieved of their

obligation to place up to $111,746.00 in an interest-bearing

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account for the benefit of AIMCOR pursuant to the terms of January 1994 Stipulation and Order.

8. Any notices or other communications hereunder or in connection herewith shall be in writing and shall be deemed to have been duly given when delivered in person, by facsimile transmission, by courier service or by registered or certified mail (postage prepaid, return receipt requested) addressed as follows: if to AIMCOR: Tenzer Greenblatt L.L.P. 405 Lexington Avenue New York, New York 10174 Attn: Andrew B. Eckstein, Esq. if to the Debtors: Weil, Gotshal & Manges 767 Fifth Avenue New York, New York 10153 i Attn: John J. Rapisardi, Esq. | or such other addresses as shall hereafter be furnished in writing by any party. A notice of change of address shall

not be deemed given until received by the addressee. | 9. AIMCOR and the Debtors, subject to bankruptcy court approval, each warrant and represent to the other that

it is duly authorized to enter into this Agreement and this

it represents a binding obligation thereon. Purther, the respective signatories hereto on behalf of AIMCOR and the Debtors hereby warrant and represent that they are duly

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* 1 1 authorized to execute this Agreement on behalf of AIMCOR and

the Debtors, respectively.

10. This Settlement Agreement shall be governed in all respects, including the validity, interpretation and effect thereof, by the substantive laws of the State of New

York.

11. This Settlement Agreement constitutes the

entire settlement and supersedes all other prior agreements and understandings, both written and oral, between the

parties with respect to the subject matter hereof. This Agreement may not be changed, modified or amended in any manner except in a writing signed by all parties.

12. This Agreement, and the release contained

herein, shall be binding upon and shall inure to the benefit

of AIMCOR and the Debtors, and their respective heirs,

executors, administrators, successors and assigns.

13. This Agreement may be executed by the parties

by separate counterparts, and all of said counterparts taken

together shall be claimed to constitute one and the same

document. IN WITNESS WHEREOF, each of the parties hereto has I

caused this Settlement Agreement to be executed all as of , i !

> | )

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the day and year first written above.

Dated: New York, New York i

February , 1995

' 1 j 09 A Om h yohn J( %apisa: chi (JR 7781) M 1, dutlshal & Manges | Attorneys for the Debtors in I Possession l 767 Fifth Avenue Ne Y k, N Yo 015p

'

, j N Andrew B. Eckstein (AE 6142) Tenzer Greenblatt L.L.P. Co-Counsel to Applied Materials Industrial Corp. The 405 Lexington Avenue New York, New York 10174

SO OltDERED. e-

Dated: New York, New York February _, 1995

Hon. James L. Garrity ! United States Bankruptcy Judge 1

|

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' ' '* ; Inda No. 93 B 44468 (JLG) fear 19 95 . ' ' 93 B 44469 (JLG) UNITED STATES BANKRUPTCY COURT I* SOUTHERN DISTRICT OF NEW YORK

| In re METALLURG, INC., and SHIELDALLOY METALLURGICAL CORPORATION, Chapter 11 Case Nos. Debtors. 93 B 44468 (JLG) i ...... X 93 B 44469 (JLG) I APPLIED INDUSTRIAL (Jointly Administered) i MATERIALS CORPORATION, Plaintiff, Adv. Proc. No. 93/9637A -against- ; METALLURG, INC., and SHIELDALLOY i METALLURGICAL CORPORATION, Defendants.

NOTICE OF PROPOSED STIPULATION AND ORDER (a) COMPROMISING AND SETILING THE CAUSES OF ACTION OF APPLIED INDUSTRIAL MATERIALS CORPORATION ("AIMCOR") AGAINST THE DEBTORS, (b) ALLOWING AIMCOR'S ADMINISTRATIVE AND UNSECURED CLAIMS, AND (c) DISMISSING ADVERSARY PROCEEDING

WEIL, GOTSHAL & MANGES

Anorneysfor i l i 767 FITTH AVENUE BOROUGH OF MANHATTAN. NEW YORK. N.Y.10 53 (212) 316 4000

I .-

To: j l . Anorney(s)for

Servece of a apy of the wuMn is hereby admitted.

D ned...... |

Anorney(s)for

MEASE TAKE NOTICE a-a y a. L| nhat she wkMn is a true copy of a Nogt,0F ans. red he she agice gshe el rc (she wisks amned coerr en 19 0 sh., m. o,w., of ww.h she waun i, . .ne r7 we he rr .dfor, r.n.nr so sh, u.n. ,uyjg one of shejudger ofshe whMn amned Court, at on 19 . at M.

Dated: WEIL, GOTSHAL & MANGES Anorneysfor

M7RFFM AVENUE BOROUGH OF MANMATTAN. NEW YORK. N.Y.10153 To:

Assorney(s)for