Facts

On Feb. 24, 1999 plaintiff Meyer Sassoon purchased 100,000 shares of defendant Imperial Rubber Industries Inc. common stock. On March 12, 1999, defendant executed and delivered a promissory note to plaintiff and plaintiff lent defendant $400,000. The note was due on July 10, 1999.

PLAINTIFF'S CONTENTIONS:
The plaintiff alleged that defendants F. Tayton Dencer, who personally guaranteed the note, and defendant Imperial Rubber failed to repay the loan. The plaintiff claimed the defendants entered a consulting agreement with him agreeing to pay him $5,000 per month for one year for his consulting services. The plaintiff alleged that defendants breached the settlement agreements.

Settlement Discussions

On June 8, 2000, defendant Imperial Rubber and plaintiff entered a settlement agreement in which defendant Imperial Rubber agreed to pay plaintiff $504,126 which included $400,000 principal and $77,516 for consulting services and to issue 200,000 shares of defendant Imperial Rubbers' common stock. On Sept. 9, 2000, defendant Imperial Rubber and plaintiff entered into an amended settlement agreement in which defendant Imperial Rubber agreed to pay plaintiff $520,811 which included $400,000 principal and interest in the amount of $33,295 and $87,516 for consulting services. Defendant Imperial Rubber also agreed to issue plaintiff an additional 100,000 shares of stock.

Result

The judge returned a verdict for plaintiff and awarded him $710,000 plus $4,165 in costs.

Other Information

FILING DATE: Feb. 2, 2004.