Company ("Clayton-Marcus"), have
been identified as PRPs by the EPA in connection with the EPA's
clean-up efforts at the Caldwell Systems Incinerator in Lenoir,
North Carolina. Clayton-Marcus is one of several hundred
companies thus far identified in connection with the site. As
discussed in paragraph 2 above, the PRPs have organized
themselves and are negotiating with the EPA with respect to the
site. No litigation has been commenced, and at the present time,
none is anticipated.
4. The Company's former subsidiary, The Gunlocke Company
("Gunlocke"), has been named as a PRP by the New York Department
of Environmental Conservation ("NYDEC") with respect to the
Prattsburg Landfill in Tonawanda, New York. NYDEC has to date
not pursued Gunlocke concerning this matter. Instead, the NYDEC
has obtained from Steuben County a signed Consent Order for a
remedial investigation and feasibility study and a remedy forthe
landfill. Nevertheless, this action does not preclude the
possibility that the NYDEC, Steuben County or other third parties
may subsequently make claims against Gunlocke and other PRPs
regarding this matter. Under the terms of the Maytag Agreement,
the Company's liabilities are limited to $200,000 for all off-
site liabilities in the aggregate.
5. Manifest show that No. 2 diesel fuel impacted soil was
sent by the Redd Level, Virginia plant of American of
Martinsville, a division of a subsidiary of the Company, to the
Seaboard Chemical Corporation treatment, storage and disposal
facility in Jamestown, North Carolina. The Seaboard Chemical
site is currently subject to remedial action under the
jurisdiction of the State of North Carolina. The Company has
been named as one of over 100 PRPs for this site. The group
representing the PRPs was contacted with regard to participation
by American of