LEGISLATIVE CONTINGENCY PROVISION Clause Samples

LEGISLATIVE CONTINGENCY PROVISION. A. In the event Asbestos Fund Legislation is enacted and the Asbestos Fund Legislation Effective Date is on or before February 15, 2008, then on and after the Asbestos Fund Legislation Effective Date, Century Indemnity Company shall have no obligation to make payment of any unpaid amount not yet due and owing under this Settlement and Buyback Agreement (the "Unpaid Amount") so long as the Century Entities are assessed and do in fact make a payment and/or contribution to the Asbestos Fund (the "Asbestos Fund Payment") that is greater than the Unpaid Amount and is based, at least in part, upon (1) past payments for defense and indemnity costs for asbestos-related bodily injury claims made by the Century Entities pursuant to liability policies of insurance issued by the Century Entities; (2) historic premium charged by the Century Entities for lines of liability insurance that have sustained losses for asbestos-related bodily injury claims; (3) amounts reserved by the Century Entities for the asbestos exposure of their insureds; or (4) the estimated cost to the Century Entities for their future liability for asbestos-related bodily injury claims under liability insurance policies issued to the insureds of the Century Entities, including the Congoleum Entities. Even if the contingencies of the previous sentence are met, Century Indemnity Company shall nonetheless have an obligation to pay the Unpaid Amount if and in the dollar amount that the Century Entities are entitled to receive a credit or set-off pursuant to the Asbestos Fund Legislation that diminishes the Asbestos Fund Payment, which credit or set-off is permitted in recognition of the obligation of the Century Entities under this Settlement and Buyback Agreement to pay towards the Unpaid Amount. For the avoidance of doubt, the amount that Century Indemnity Company would be obligated to pay towards the Unpaid Amount in the foregoing sentence would be equal to the dollar amount of the credit or set-off permitted to the Century Entities in respect of this Settlement and Buyback Agreement. This Section XVIII shall have no effect on the release provisions of Section VI. B. The Century Entities shall not be required to pay any amount that any Congoleum Entity will be required to pay (or does in fact pay) to the Asbestos Fund other than provided in Section XVIII.A.