IN RE NATIONAL STEEL CORPORATION, (Bankr.N.D.Ill. 2002)

JOHN H. SQUIRES, Bankruptcy Judge

CAROL A. BERNDT, as personal representative of the Estate of Gary G. Berndt, CAROL H. McCOMBS, as personal representative of the Estate of William J. McCombs, and CHRISTA EACKLES-WALKER, as personal representative of the Estate of Glen Walker (collectively "Claimants"), by and through their attorneys, Clifford Law Offices and Rieck and Crotty, P. C., by Jerome F. Crotty, HARTFORD FIRE INSURANCE COMPANY ("Hartford"), by and through its attorneys, Hinshaw Culbertson, and NATIONAL STEEL CORPORATION ("National Steel"), by and through its attorneys, PIPER RUDNICK, stipulate and agree as follows:

Whereas, Claimants have petitioned to lift the automatic stay (Docket Number 281) to pursue their wrongful death suit against National Steel, which is pending in Porter Superior Court, Porter County, Indiana, under the consolidated case number 64D03-9910-CT-587 (the "Case");

Whereas, National Steel has a certain, primary Commercial General Liability insurance policy with Hartford, which provides primary coverage subject to a $500,000 self insured retention deductible ("the Deductible");

Whereas, at the time of filing, National Steel was still subject to $171,538.82 remaining under the Deductible; and

Whereas, the parties have agreed, as a condition to National Steel's voluntarily lifting the stay, that: (1) Claimants will: (a) except as provided herein, waive any and all claims against National Steel and instead only proceed against the proceeds of National Steel's insurance policies; and (b) in the event of any verdict, award, settlement or judgment against National Steel in the Case, provide Hartford a credit of $171,538.82 to reduce said verdict, award, settlement or judgment; and (2) Hartford will waive any and all claims against National Steel for any amounts claimed owing under the Deductible related to the Case.

IT IS HEREBY AGREED, STIPULATED AND ORDERED AS FOLLOWS:

1. The automatic stay is lifted to permit Claimants to prosecute their claims in the Case against National Steel provided, however, such Claimants may proceed only to the extent of any insurance applicable to their claims against National Steel.

2. Except as provided and anticipated by this Stipulation, Claimants waive any and all claims against National Steel directly and agree to proceed against National Steel only to the extent of any insurance and proceeds of insurance applicable to their claims.

3. Claimants, in the event of any verdict, award, settlement or judgment against National Steel in the Case in favor of Claimants, will provide Hanford a credit in the amount of the first $171,538.82 by reducing said verdict, award, settlement or judgment otherwise payable by Hanford by the amount of $171,538.82.

4. Hartford waives any and all claims against National Steel for any amounts owing under the Deductible related to the Case.