Exhibit 99.2
SETTLEMENT AND POLICY BUYBACK AGREEMENT AND RELEASE
This Settlement and Policy Buyback Agreement and Release ("Settlement and
Buyback Agreement") is made by and among Congoleum Corporation, individually and
on behalf of all of the Congoleum Entities; upon its creation, the Plan Trust;
American Biltrite Inc., individually and on behalf of all of the ABI Entities;
and Travelers Casualty and Surety Co., formerly known as The Aetna Casualty and
Surety Company ("Travelers"), and St. Xxxx Fire and Marine Insurance Company
("St. Xxxx"), individually and on behalf of all of the St. Xxxx Travelers
Entities.
RECITALS
WHEREAS, numerous asbestos-related Claims including, but not limited to
Asbestos Personal Injury Claims and Asbestos Property Damage Claims, have been
asserted against certain of the Congoleum Entities; and
WHEREAS, certain of the St. Xxxx Travelers Entities issued or allegedly
issued one or more of the Subject Policies; and
WHEREAS, the Congoleum Entities assert that certain of the St. Xxxx
Travelers Entities are obligated to provide coverage under the Subject Policies
with respect to asbestos-related Claims including Asbestos Personal Injury
Claims and Asbestos Property Damage Claims; and
WHEREAS, there is a dispute among certain of the Congoleum Entities and
certain of the St. Xxxx Travelers Entities regarding their respective rights and
obligations with respect to insurance coverage for Claims including Asbestos
Claims; and
WHEREAS, Congoleum Corporation, Travelers and St. Xxxx are parties to a
lawsuit styled Congoleum Corporation v. ACE American Insurance Company, et al.,
Docket No. MID-L-8908-01 pending in the Superior Court of New Jersey, Law
Division, Middlesex County (the "Coverage Action") in which Congoleum
Corporation has asserted claims against Travelers and St. Xxxx, among other
insurers; and
WHEREAS, on December 31, 2003, Congoleum Corporation, Congoleum Fiscal,
Inc. and Congoleum Sales, Inc. (collectively, the "Debtors") filed petitions
pursuant to Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the District of New Jersey (the "Bankruptcy Court"), jointly
administered under Case No. 03-51524 (KCF) (collectively, the "Chapter 11
Cases"); and
WHEREAS, the Debtors continue to operate their businesses as debtors and
debtors-in-possession; and
WHEREAS, numerous Claims including Asbestos Claims have been asserted
against certain of the Congoleum Entities and may be asserted in the future, and
certain of the Congoleum Entities may contend that such Claims are covered under
the Subject Policies; and
WHEREAS, on March 17, 2006, the Debtors filed the Eighth Modified Joint
Plan of Reorganization; and
WHEREAS, Travelers and St. Xxxx have objected and continue to object to
the plans of reorganization proposed by the Debtors in the Chapter 11 Cases; and
WHEREAS, the Parties now wish to enter into an agreement to settle the
outstanding disputes referred to above and to release the St. Xxxx Travelers
Entities as set forth herein from any further obligations under the Subject
Policies, as well as to effect the buyback of the Subject Policies thereby
terminating all of the St. Xxxx Travelers Entities' respective obligations
under, and the Congoleum Entities' respective rights in, the Subject Policies;
NOW, THEREFORE, in consideration of the promises and of the mutual
covenants contained herein, and intending to be legally bound hereby, subject to
the satisfaction of all the conditions precedent as set forth in Section II of
this Settlement and Buyback Agreement (where and when applicable), the Parties
do hereby agree as follows:
I. DEFINITIONS
The following definitions apply to the capitalized terms herein wherever
those terms appear in this Settlement and Buyback Agreement, including the
prefatory paragraph, recitals, the Sections below and any exhibits attached
hereto. Capitalized terms in the prefatory paragraph, recitals, and in the
Sections below have the meanings ascribed to them therein to the extent they are
not otherwise defined in this Definitions Section. Capitalized terms that are
not defined in this Settlement and Buyback Agreement are given the meanings
designated in the Eighth Modified Joint Plan of Reorganization as of March 17,
2006. Moreover, each defined term, whether stated in the singular or the plural,
shall include both the singular and the plural, and pronouns stated in the
masculine, feminine or neuter gender shall include the masculine, feminine and
the neuter gender. The word "including" means "including but not limited to."
A. "ABI" means American Biltrite Inc.
B. "ABI Entities" means: (i) ABI; (ii) its respective present, direct and
indirect, parents, subsidiaries and affiliates; (iii) the respective past and
future, direct and indirect, parents, subsidiaries and affiliates of the Persons
described in Sections I.B(i) and/or I.B(ii) only to the extent that any of the
Persons described in Sections I.B(i) and/or I.B(ii) have the power to give the
releases set forth in Section VI.C on behalf of the Persons described in this
Section I.B(iii); (iv) the respective past, present and future, direct and
indirect, associated corporations and/or entities of the Persons described in
Sections I.B(i) through I.B(iii), inclusive, but only in their capacity as such
and only to the extent that any of the Persons described in Sections I.B(i)
and/or I.B(ii) have the power to give the releases set forth in Section VI.C on
behalf of the Persons described in this Section I.B(iv); (v) the direct and
indirect predecessors, successors and assigns of each of the foregoing Persons
described in Sections I.B(i) through I.B(iv), inclusive, except, in the case of
predecessors, only to the extent that any of the Persons described in Sections
I.B(i) through I.B(iv), inclusive, have the power to give the releases set forth
in Section VI.C on behalf of such predecessors; and (vi) the respective
officers, directors, employees, shareholders, agents, principals, attorneys and
representatives of the Persons described in Sections I.B(i) through I.B(v),
inclusive, but only when acting in their capacity as such and only to the extent
any of the Persons described in Sections I.B(i) through I.B(v), inclusive, have
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the power to give the releases set forth in Section VI.C on behalf of the
Persons described in this Section I.B(vi). Any Person who meets the definition
set forth above shall be individually referred to as an "ABI Entity." Other than
ABI and any other ABI Entity for which no Congoleum Entity has the power to give
the releases set forth in Section VI, any Person who meets the definition of
both "ABI Entity" and "Congoleum Entity," as such term is defined in Section I.H
below, shall be treated for all purposes under the Settlement and Buyback
Agreement as a "Congoleum Entity." ABI and any other ABI Entity for which no
Congoleum Entity has the power to give the releases set forth in Section VI
shall be treated only as "ABI Entities" and not as "Congoleum Entities" under
this Settlement and Buyback Agreement.
C. "ACC" means the Asbestos Claimants' Committee in the Chapter 11 Cases.
D. "Approval Order" means an order of the Court, in the form of Exhibit A
hereto with such changes, if any, to which the St. Xxxx Travelers Entities will
have consented in writing, or such other substantially similar form that does
not materially or adversely affect the rights of the St. Xxxx Travelers Entities
under the Settlement and Buyback Agreement, and that: (i) approves this
Settlement and Buyback Agreement and the compromise and settlement memorialized
herein; and (ii) provides that this Settlement and Buyback Agreement shall be
binding upon and inure to the benefit of the Parties and their respective
successors and assigns, including the Reorganized Debtors and the Plan Trust;
and (iii) provides that this Settlement and Buyback Agreement is an Asbestos
Insurance Settlement Agreement.
E. "Business Day" means any day other than a Saturday, Sunday or other
"legal holiday" as defined in Federal Bankruptcy Rule 9006(a).
F. "Claim" means:
(i) "Claim" as that term is defined in the Section 101(5) of the
Bankruptcy Code;
(ii) "Demand" as that term is defined in the Section 524(g)(5) of
the Bankruptcy Code; and/or
(iii) Any past, present or future, known or unknown, asserted or
unasserted, foreseen or unforeseen, matured or unmatured, concealed or
disclosed, fixed or contingent, direct or indirect claim, complaint,
cross-complaint, counterclaim, affirmative defense, writ, demand, inquiry,
request, suit, lawsuit, liability, action, cause of action, administrative
proceeding, governmental action, order, judgment, settlement, lien, loss,
cost or expense, and whether in law, equity, admiralty, or otherwise, and
whether for economic loss, general damages, medical monitoring, punitive
damages, attorneys' fees or otherwise.
G. "Confirmation Order" means an order or orders entered by the Court in
the Chapter 11 Cases that:
(i) Confirms the Plan;
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(ii) Has the effect of providing that the Asbestos Channeling
Injunction applies in full to the St. Xxxx Travelers Entities and the ABI
Entities with respect to Plan Trust Asbestos Claims and Demands; Asbestos
Claims and Demands; Derivative Actions; and any other Claims which are
channeled pursuant to the Asbestos Channeling Injunction.
(iii) Specifies that: (a) the St. Xxxx Travelers Entities are
Settling Asbestos Insurance Companies or incorporates by reference the
schedule referred to in Section II.B below; (b) any prerequisites to
permit the designation of the St. Xxxx Travelers Entities as Settling
Asbestos Insurance Companies under the terms of the Plan have been
satisfied; and (c) Settling Asbestos Insurance Companies are entitled to
all of the benefits of the Asbestos Channeling Injunction as Protected
Parties;
(iv) Provides that all of the Congoleum Entities' obligations and
rights under this Settlement and Buyback Agreement shall be binding on and
inure to the benefit of the Plan Trust and the Plan Trustee, and each of
the foregoing shall become fully bound to all of the terms and conditions
of this Settlement and Buyback Agreement, including the releases in
Section VI, and of the Approval Order without the need for further act or
documentation of any kind (which may be accomplished by a provision that
makes all Asbestos Insurance Settlement Agreements, including this
Settlement and Buyback Agreement, and related approval orders, including
the Approval Order, binding upon and inure to the benefit of the Plan
Trust and the Plan Trustee); and
(v) Specifies that the Congoleum Entities, the ABI Entities, the
FCR, the Plan Trustee, the ACC, and/or the Claimants' Representative may
not seek to terminate, reduce or limit the scope of the Asbestos
Channeling Injunction or any other injunction with respect to any St. Xxxx
Travelers Entities and any ABI Entities.
H. "Congoleum Entities" means: (i) the Debtors; (ii) Congoleum Corporation
as the parent of Congoleum Fiscal, Inc. and Congoleum Sales, Inc.; (iii) the
Debtors' respective present, direct and indirect, subsidiaries and affiliates;
(iv) the respective past and future, direct and indirect, parents, subsidiaries
and affiliates of the Persons described in Sections I.H(i) through I.H(iii),
inclusive, only to the extent that any of the Persons described in Sections
I.H(i) through I.H(iii), inclusive, have the power to give the releases set
forth in Section VI on behalf of the Persons described in this Section I.H(iv);
(v) the respective past, present and future, direct and indirect, associated
corporations and/or entities of the Persons described in Sections I.H(i) through
I.H(iv), inclusive, but only in their capacity as such and only to the extent
that any of the Persons described in Sections I.H(i) through I.H(iv), inclusive,
have the power to give the releases set forth in Section VI on behalf of the
Persons described in this Section I.H(v); (vi) any other insureds under the
Subject Policies, only to the extent that the Persons described in Sections
I.H(i) through I.H.(v), inclusive, have the power to give the releases set forth
in Section VI on behalf of the Persons described in this Section I.H(vi); (vii)
the direct and indirect predecessors, successors and assigns of each of the
foregoing Persons described in Sections I.H(i) through I.H(vi), inclusive,
except, in the case of predecessors, only to the extent that any of the Persons
described in Sections I.H(i) through I.H(vi), inclusive, have the power to give
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the releases set forth in Section VI on behalf of such predecessors; and (viii)
the respective officers, directors, employees, shareholders, agents, principals,
attorneys and representatives of the Persons described in Sections I.H(i)
through I.H(vii), inclusive, but only when acting in their capacity as such and
only to the extent that any of the Persons described in Section I.H(i) through
I.H(vii), inclusive, have the power to give the releases set forth in Section VI
on behalf of the Persons described in this Section I.H(viii). Any Person who
meets the definition set forth above shall be individually referred to as a
"Congoleum Entity." Notwithstanding anything in this Settlement and Buyback
Agreement to the contrary, the term "Congoleum Entities" does not include ABI or
any ABI Entity for which no Congoleum Entity has the power to give the releases
set forth in Section VI.
I. "Court" means the Bankruptcy Court or the United States District Court
for the District of New Jersey or other court of competent jurisdiction.
J. "Coverage Action" means the action pending in the Superior Court of New
Jersey, Law Division, Middlesex County, captioned, Congoleum Corporation v. ACE
American Insurance Company, et al., Docket No. MID-L-8908-01.
K. "Execution Date" means the earliest date on which this Settlement and
Buyback Agreement has been signed by all of the signatories hereto as reflected
by the last dated signature entered on the signature page.
L. "FCR" means the Futures Representative appointed pursuant to the
Bankruptcy Court's February 18, 2004 Order in the Chapter 11 Cases, solely in
his capacity as such, together with his successors and assigns, solely in their
respective capacities.
M. "Final Order" means an order as to which the time to appeal, petition
for certiorari, or move for reargument or rehearing has expired and as to which
no appeal, petition for certiorari, or other proceedings for reargument or
rehearing shall then be pending or as to which any right to appeal, to petition
for certiorari, to reargue, to rehear or to reconsider shall have been waived in
writing by the Person possessing such right, or, in the event that an appeal,
writ of certiorari, or reargument, rehearing or reconsideration thereof has been
sought, such order shall have been affirmed by the highest court to which such
order was appealed, or certiorari has been denied or from which reargument,
rehearing or reconsideration was sought, and the time to take any further
appeal, petition for certiorari, or move for reargument, rehearing or
reconsideration shall have expired, and no such further appeal, petition for
certiorari, or motion for reargument, rehearing or reconsideration shall have
been filed.
N. "Parties" means the Congoleum Entities, the ABI Entities, and the St.
Xxxx Travelers Entities.
O. "Person" means any natural or legal entity or person, including an
individual, a corporation, a partnership, an association, a trust, a joint
venture, a union, any other entity or organization, and any federal, state or
local government or any governmental or quasi-governmental body or political
subdivision or any agency, department, board or instrumentality thereof.
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P. "Plan" means the Eighth Modified Joint Plan of Reorganization, filed by
the Debtors on _March 17, 2006 in the Bankruptcy Court, as such Plan may be
modified from time to time in accordance with the terms thereof, provided,
however, that such modifications:
(i) Are consistent with the rights and benefits provided to the St.
Xxxx Travelers Entities under this Settlement and Buyback Agreement and
with the duties and obligations of, and releases provided by, the
Congoleum Entities and the ABI Entities under this Settlement and Buyback
Agreement; and
(ii) Do not otherwise have a material adverse effect on the
interests of the St. Xxxx Travelers Entities under this Settlement and
Buyback Agreement.
Q. "Plan Effective Date" means the earlier of: (i) the "Effective Date" as
that term is defined in the Plan; or (ii) the first Business Day after the date
on which all of the conditions precedent to the effectiveness of the Plan
specified in the Plan have been satisfied or waived, or, if a stay of the
Confirmation Order is in effect on such date, the first Business Day after the
expiration, dissolution, or lifting of such stay.
R. "Settlement and Buyback Amount" means the sum of Twenty-Five Million
U.S. Dollars ($25,000,000) in cash, certified or cashiers check, or wire
transfer, at the option of Travelers.
S. "St. Xxxx" means St. Xxxx Fire and Marine Insurance Company.
T. "St. Xxxx Travelers Entities" means: (i) The St. Xxxx Travelers
Companies, Inc., Travelers, St. Xxxx, and their respective past, present and
future, direct and indirect, parents, subsidiaries, affiliates and associated
corporations and/or entities; (ii) the predecessors, successors and assigns of
each of the foregoing Persons described in Section I.T(i), no matter the degree
of removal from the Persons described in Section I.T(i) (which terms shall
include any Person who assumes the liabilities of any of the foregoing Persons
described in Section I.T(i) and (ii) with the approval of the appropriate
insurance commissioner or other official); and (iii) the respective officers,
directors, employees, shareholders, agents, principals, attorneys, and
representatives of the Persons described in Sections I.T(i) and I.T(ii), but
only when acting in their capacity as such. Any Person who meets the definition
set forth above shall be individually referred to as a "St. Xxxx Travelers
Entity."
U. "Subject Policies" means all policies of insurance, whether the
policies are primary, umbrella, excess or otherwise, and whether called
liability, first party, third party, property, environmental impairment,
employer liability or otherwise and whether known or unknown, issued by any St.
Xxxx Travelers Entity prior to the Execution Date: (i) to any Congoleum Entity;
and/or (ii) under which any Congoleum Entity claims to be entitled to insurance,
rights or benefits, except for the statutory portion of any workers'
compensation policy. Notwithstanding the above, the Parties agree that: (a)
Policy Nos. QK09000534, QK09000747, 06 XN 22205576, 0369JM0112, OC06900058, and
MOC 0645B63A issued by one or more of the St. Xxxx Travelers Entities to ABI
shall be deemed "Subject Policies" but only with respect to Claims arising from,
relating to or involving asbestos-related Claims, including but not limited to
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Plan Trust Asbestos Claims (recognizing that the Parties agree that each of the
first three above-mentioned policies contains an asbestos exclusion and that
each of the last three above-mentioned policies does not afford liability
insurance coverage), and only with respect to the rights of a Congoleum Entity
thereunder; and (b) with respect to policies issued by a St. Xxxx Travelers
Entity to any ABI Entities or any other Person other than one of the Congoleum
Entities, "Subject Policies" shall include only the rights of a Congoleum Entity
thereunder, and shall not include the rights of any other Person, including any
ABI Entity, thereunder. For the purposes of this Settlement and Buyback
Agreement, the Parties agree that "Subject Policies" shall not include: (x) any
policy of insurance issued by a Person that is not a St. Xxxx Travelers Entity
as of the Execution Date that acquires, is merged into, or is acquired by a St.
Xxxx Travelers Entity on or after the Execution Date; (y) any policy of
insurance issued to a Person that was not a Congoleum Entity on or before the
Execution Date, except to the extent that a Congoleum Entity had rights
thereunder which arose on or before the Execution Date; and/or (z) any policy of
insurance set forth in Exhibit C hereto.
V. "Travelers" means Travelers Casualty and Surety Company, formerly known
as The Aetna Casualty and Surety Company.
W. "Trigger Date" means the date on which all of the conditions precedent
set forth in Section II of this Settlement and Buyback Agreement have occurred.
II. CONDITIONS PRECEDENT
The obligations of the St. Xxxx Travelers Entities set forth in Section
III and the obligations of and releases by the Parties set forth in any other
provision in this Settlement and Buyback Agreement made subject to this Section
II are subject to and made expressly contingent upon the satisfaction of each of
the following conditions precedent:
A. The Approval Order shall have become a Final Order;
B. A schedule shall have been filed with the Bankruptcy Court prior to the
conclusion of the Confirmation Hearing, listing the St. Xxxx Travelers Entities
as Settling Asbestos Insurance Companies and such schedule shall not have been
amended to remove the St. Xxxx Travelers Entities from such schedule;
C. If and to the extent required under the terms of the Plan, any
necessary prerequisites to permit the designation of the St. Xxxx Travelers
Entities as Settling Asbestos Insurance Companies, entitled to all of the
benefits and protections of the Asbestos Channeling Injunction as Protected
Parties, under the terms of the Plan have been satisfied;
D. Congoleum shall have filed a modified Plan which provides injunctive
relief under Section 105(a) as set forth in Section IV.B for Claims that are not
related to asbestos but that arise out of or relate to the Subject Policies or
the insuring relationship of the relevant St. Xxxx Travelers Entities with the
relevant Congoleum Entities (the "105(a) Relief") in favor of the St. Xxxx
Travelers Entities in form and substance acceptable to the St. Xxxx Travelers
Entities, and shall use reasonable best efforts to obtain Court approval of said
modified Plan. The requirement of reasonable best efforts shall be deemed to be
satisfied if:
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(i) The Debtors affirmatively support the 105(a) Relief, brief
responses to any objections to the 105(a) Relief on all appropriate
grounds and advocate for, and defend against objections to, the 105(a)
Relief in all hearings and other proceedings in which such relief is in
issue, all in reasonable consultation with the St. Xxxx Travelers
Entities;
(ii) After the Debtors shall have complied with their obligations
set forth in subparagraph (i) above, the Court, including without
limitation, any appellate court of competent jurisdiction, declines to
confirm the Plan solely as a result of the 105(a) Relief, in which case
the Debtors will not be obligated to appeal denial of confirmation if the
only basis for such denial was the inclusion of the 105(a) Relief;
(iii) After the Debtors shall have complied with their obligations
set forth in subparagraph (i) above, the Court, including without
limitation, any appellate court of competent jurisdiction, determines to
stay the effectiveness of the Plan or the Confirmation Order solely as a
result of the 105(a) Relief, in which case the St. Xxxx Travelers Entities
will not oppose the removal of the 105(a) Relief from the Plan; and
(iv) The Court determines to deny confirmation on grounds in
addition to the 105(a) Relief and if the Debtors, or any other party,
determine to appeal denial of confirmation, the Debtors will include
denial of the 105(a) Relief as one of the issues on appeal, or in response
to the appeal of any other party, and shall brief, argue and prosecute the
appeal of the denial of the 105(a) Relief in all levels of appeal and
further review that the Debtors or such other party elect to pursue, all
in reasonable consultation with the St. Xxxx Travelers Entities.
E. The Confirmation Order shall: (i) be in conformity with the definition
of Confirmation Order in Section I.G above; (ii) be in form and substance
reasonably acceptable to the St. Xxxx Travelers Entities and otherwise
consistent with the terms of this Settlement and Buyback Agreement; and (iii)
shall have become a Final Order;
F. Congoleum: (i) shall have filed a modified Plan which both (a) provides
the ABI Entities with the benefits and protections of the Asbestos Channeling
Injunction as Protected Parties identical or equivalent to those provided under
the Eighth Modified Joint Plan of Reorganization, which benefits and
protections, if not identical to those found in the Eighth Modified Joint Plan
of Reorganization, are in conformity with, and no less favorable to the ABI
Entities than, those provided under the Eighth Modified Plan of Reorganization
and are in form and substance acceptable to the St. Xxxx Travelers Entities and
also (b) provides and/or clarifies that the ABI Entities are entitled to the
benefits and protections of the Asbestos Channeling Injunction as Protected
Parties with respect to Congoleum Derivative Actions, as that term is defined in
Exhibit F, or in an equivalent definition in conformity with the definition of
Congoleum Derivative Actions and which is acceptable in form and substance to
the St. Xxxx Travelers Entities (Congoleum Derivative Actions and their
equivalents being herein collectively defined as "Derivative Actions"); (ii)
Congoleum and the ABI Entities shall use reasonable best efforts to obtain entry
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of an order confirming such modified Plan which provides all of the benefits and
protections described in this Section II. F(i) under the Asbestos Channeling
Injunction to the ABI Entities; (iii) an order confirming such modified plan
providing all such benefits and protections under this Section II.F(i) to the
ABI Entities under the Asbestos Channeling Injunction shall have become a Final
Order, which Final Order, as it pertains to such benefits and protections, is in
conformity with this Section II.F(i) and is acceptable in form and substance to
the St. Xxxx Travelers Entities and which Final Order cannot be modified,
limited or terminated without the consent of the St. Xxxx Travelers Entities;
and (iv) the Effective Date of such modified Plan as described in this Section
II.F shall have occurred. For the avoidance of doubt, Congoleum Derivative
Actions and Derivative Actions do not include Claims for, based on, derivative
of, arising out of, or caused or allegedly caused (x) by exposure to asbestos or
asbestos-containing products manufactured, supplied, distributed, handled ,
fabricated, stored, sold, installed or removed by any ABI Entity (and not by any
Congoleum Entity) or (y) by services, actions or operations provided, completed,
or taken by any ABI Entity (and not by any Congoleum Entity) in connection with
asbestos or asbestos-containing products manufactured, supplied, distributed,
handled, fabricated, stored, sold, installed or removed by any ABI Entity (and
not by any Congoleum Entity).
G. The Plan Effective Date shall have occurred; and
H Congoleum Corporation or the Plan Trust shall have notified the St. Xxxx
Travelers Entities that all of the conditions precedent described in Sections
II.A through II.G, inclusive, have occurred and in fact they have occurred.
Travelers and St. Xxxx, at their sole option and in their sole discretion, shall
have the right to waive the satisfaction of any or all of the conditions
precedent described in Sections II.B through II.H, inclusive, including any
subsection(s) thereof, by delivery of written notice thereof to Congoleum
Corporation and ABI pursuant to Section XVI below, and any condition so waived
shall be deemed irrevocably waived and satisfied for all purposes of this
Settlement and Buyback Agreement.
III. PAYMENT
A. Travelers shall pay the Settlement and Buyback Amount, on behalf of the
St. Xxxx Travelers Entities, to the Plan Trust, or as otherwise directed by the
Court consistent with the terms of this Settlement and Buyback Agreement, on the
following payment schedule:
(i) Within thirty (30) calendar days following the Trigger Date,
Travelers shall pay, on behalf of the St. Xxxx Travelers Entities, Twelve
Million Five Hundred Thousand Dollars ($12,500,000) (the "First Payment
Date"); and
(ii) One year after the First Payment Date, Travelers shall pay, on
behalf of the St. Xxxx Travelers Entities, the remaining Twelve Million
Five Hundred Thousand Dollars ($12,500,000) of the Settlement and Buyback
Amount.
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B. The Parties agree that the payments made pursuant to this Settlement
and Buyback Agreement are for Claims against the Congoleum Entities, including
Asbestos Claims.
IV. LITIGATION AND BANKRUPTCY OBLIGATIONS
A. No later than five (5) Business Days following the Execution Date, the
Debtors shall:
(i) File, and take all steps to pursue granting of, a motion
pursuant to Federal Rule of Bankruptcy Procedure 9019 and Section 363 of
the Bankruptcy Code, in a form that is reasonably acceptable to the St.
Xxxx Travelers Entities, seeking the Bankruptcy Court's entry of the
Approval Order;
(ii) Serve the motion and notice of a hearing on such motion in a
form, manner and scope that is in compliance with all applicable
Bankruptcy Rules upon: (a) the "Core Service List" and the "Master Service
List," each as defined in the Order Establishing Case Management and
Administrative Procedures, dated February 25, 2004, and the "Master E-Mail
Service List," as defined in the Order (1) Amending The Order Establishing
Case Management and Administrative Procedures Entered On February 25, 2004
And The Order Establishing Procedures For Interim Compensation And
Reimbursement Of Expenses Of Professionals Entered On February 10, 2004
And (2) Allowing Notice By E-Mail And Establishing Procedures Therefor,
dated September 6, 2005; (b) the Claimants' Representative; (c) the Office
of the United States Trustee; (d) the FCR and counsel to the FCR; (e) the
ACC's members and its counsel; (f) parties who have filed a notice of
appearance in these Chapter 11 Cases; (g) the Collateral Trustee (the
"Collateral Trustee") of the Congoleum Collateral Trust (the "Collateral
Trust") established pursuant to a Collateral Trust Agreement dated April
16, 2003; (h) ABI and counsel to ABI; (i) counsel to all known holders of
Asbestos Claims as reflected in the proofs of claim filed in these Chapter
11 Cases, claims submitted in connection with the Settlement Between
Congoleum Corporation and Various Asbestos Claimants attached as Exhibit E
to the Disclosure Statement with respect to the Plan (the "Claimant
Agreement"), or ballots submitted in connection with these Chapter 11
Cases; (j) all known holders of Asbestos Claims whose counsel is not
included within the preceding clause who, as of at least ten (10) Business
Days prior to the Hearing, became known through filing of a proof of
claim; (k) the members of the bondholders' committee and counsel to such
committee and (l) any notice in addition to that described in Sections
IV.A(i)(a) through IV.A(i)(l), inclusive, in such other manner as the St.
Xxxx Travelers Entities may reasonably direct, with any such additional
service to be at the cost of the St. Xxxx Travelers Entities; and
(iii) Seek a hearing on the motion no later than thirty (30) days
following the Execution Date, provided that they shall not be obligated to
seek such hearing on shortened notice.
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The Debtors shall use their reasonable best efforts to have the Bankruptcy Court
enter the Approval Order as soon as reasonably possible. The St. Xxxx Travelers
Entities shall support the Debtors' efforts to obtain such approval.
B. Following the Execution Date, the Debtors shall file modifications to
the Plan, in a form reasonably acceptable to Travelers and St. Xxxx, pursuant to
Section 1127 of the Bankruptcy Code, to include an injunction pursuant to
Section 105(a) of the Bankruptcy Code that permanently enjoins all holders of
Claims not relating to asbestos from asserting against the St. Xxxx Travelers
Entities any such Claims, provided that they arise out of or relate to the
Subject Policies or the insuring relationship of the relevant St. Xxxx Travelers
Entities with the relevant Congoleum Entities, but such injunction shall not
affect or modify the rights of Insured Persons under policies of insurance
except to the extent released in Section VI. The term Insured Persons in the
preceding sentence shall mean those Persons specifically identified as named
insureds, insureds, additional insureds, additional named insureds, persons
insured, assureds or those Persons otherwise insured by means of a specific
policy provision or endorsement. The Debtors shall use their reasonable best
efforts to obtain Bankruptcy Court approval of the Plan as so modified to
incorporate such Section 105(a) injunctive relief in favor of the St. Xxxx
Travelers Entities, and the St. Xxxx Travelers Entities shall support the
efforts of the Debtors to obtain approval of such Section 105(a) injunctive
relief.
C. As of the Execution Date, the Parties shall file no further discovery,
motions, objections and/or Claims against each other in the Chapter 11 Cases;
provided, however, that the St. Xxxx Travelers Entities shall have the right to
file their own objections and to join in objections to confirmation filed by
other parties, and to prosecute all such objections and oppose confirmation of
the Plan as currently filed if the Approval Order has not been entered by the
date when such action is required by the Court. The Parties fully reserve all of
their rights pertaining to discovery, motions, objections and Claims made prior
to the Execution Date in the Chapter 11 Cases until such time as the Approval
Order becomes a Final Order. Nothing within this Section IV.C shall prevent any
Party from participating in any hearing or proceeding in the Chapter 11 Case.
Within three (3) Business Days of the Court's entry of the Approval Order,
Travelers and St. Xxxx shall withdraw any and all objections they have made to
the Plan and any and all pending discovery, motions, objections, Claims, and any
appeals or notices of appeal that they have made in the Chapter 11 Cases, and
the St. Xxxx Travelers Entities shall not pursue any Claim against the Debtors
in the Chapter 11 Cases. Within three (3) Business Days of the Court's entry of
the Approval Order, the Congoleum Entities and the ABI Entities shall withdraw
any and all pending discovery, Claims, motions and any appeal or notices of
appeal that they have made in the Chapter 11 Cases to the extent that such
pending discovery, Claims, motions and any appeal or notices of appeal involve
the St. Xxxx Travelers Entities, and the Congoleum Entities and the ABI Entities
shall not pursue any Claim against any of the St. Xxxx Travelers Entities in the
Chapter 11 Cases. Upon the Court's entry of the Approval Order, the St. Xxxx
Travelers Entities shall not object to or oppose confirmation of the Plan and
shall not appeal the Confirmation Order. Subject to Section IX, prior to the
Trigger Date, no provisions of the Plan or the Plan Documents, findings of fact
in the Confirmation Order, conclusions of law in the Confirmation Order, or
other rulings of the Court in the context of the proceedings on confirmation of
the Plan shall be used by the Plan Trust or any other Person as evidence in any
11
way in any proceeding involving a St. Xxxx Travelers Entity, nor shall they have
any evidentiary, res judicata, collateral estoppel or other preclusive or other
effect against any of the St. Xxxx Travelers Entities in any proceeding (the "No
Use/No Effect Restriction"); provided, however, that this No Use/No Effect
Restriction shall not apply after the Trigger Date, again subject to Section IX.
D. Prior to the conclusion of the Confirmation Hearing, (i) the Debtors
shall have designated the St. Xxxx Travelers Entities as Settling Asbestos
Insurance Companies on the schedule of Settling Asbestos Insurance Companies
filed by the Debtors; and (ii) any necessary prerequisites under the terms of
the Plan have been satisfied so as to permit the designation of the St. Xxxx
Travelers Entities as Settling Asbestos Insurance Companies, entitled to all of
the benefits and protections of the Asbestos Channeling Injunction as Protected
Parties.
E. The Congoleum Entities, the ABI Entities, and the Plan Trustee shall
not seek to terminate, or reduce or limit the scope of the Asbestos Channeling
Injunction, with respect to the St. Xxxx Travelers Entities after the
Confirmation Order becomes a Final Order.
F. The Congoleum Entities shall use their reasonable best efforts to
obtain in the Approval Order the protection of a sale free and clear pursuant to
Section 363(f) of the Bankruptcy Code for the buyback of all of the Debtors'
interests in the Subject Policies.
G. The Parties agree that no Party will seek to reject this Settlement and
Buyback Agreement as an executory contract in the Chapter 11 Cases or any other
bankruptcy case.
H. Within three (3) Business Days of the Execution Date, Congoleum
Corporation, Travelers and St. Xxxx shall submit a Consent Order to the court in
the Coverage Action seeking a dismissal without prejudice of all of the Claims
each has asserted against the other in the Coverage Action. The Consent Order
shall provide that, on the Trigger Date, such dismissals shall convert, without
any need for further act or deed, to dismissals with prejudice. The Consent
Order shall further provide that, in the event that the Settlement and Buyback
Agreement becomes null and void pursuant to its terms, then any Congoleum Entity
and any St. Xxxx Travelers Entity, to the extent it has the right to do so, may
re-institute litigation against each other, in accordance with Section V.B(viii)
below, and that neither the "Entire Controversy Doctrine" nor New Jersey Rule
4:30A nor any analogous doctrine or rule shall bar any such Congoleum Entity and
any such St. Xxxx Travelers Entity from asserting, in such litigation, the same
or substantially similar Claims and/or defenses to those asserted in the
Coverage Action. Any such Congoleum Entity or any such St. Xxxx Travelers Entity
may also file and/or assert any Claims and/or defenses which have arisen since
the trial of the Coverage Action began on August 2, 2005. Each Party is to bear
its own fees and costs in the Coverage Action and in the Chapter 11 Cases.
Notwithstanding the above, nothing in this Section IV.H shall affect the rights
of the ABI Entities.
V. TERMINATION OF SETTLEMENT AND BUYBACK AGREEMENT
A. After the Execution Date, this Settlement and Buyback Agreement shall
become null and void upon the occurrence of any of the following contingencies:
12
(i) The failure of the Coverage Court to enter the Consent Order
described in Section IV.H above;
(ii) The entry by the Court of an order confirming a Chapter 11 plan
of reorganization for the Debtors other than the Plan;
(iii) The entry by the Court of an order that states that the St.
Xxxx Travelers Entities are not Settling Asbestos Insurance Companies;
(iv) The entry of a Final Order denying approval of the Settlement
and Buyback Agreement;
(v) The entry of an order by the Court converting the Chapter 11
Cases into Chapter 7 cases or dismissing the Chapter 11 Cases;
(vi) The entry of an order by the Court appointing a trustee or an
examiner possessing the rights, powers and duties reasonably and
substantially equivalent to those of a trustee in the Chapter 11 Cases as
described in Section 1106(a) of the Bankruptcy Code; or
(vii) The proposal or filing of a plan of reorganization by the
Debtors that: (a) is inconsistent with the rights and benefits provided to
the St. Xxxx Travelers Entities under this Settlement and Buyback
Agreement and/or with the duties and obligations of, and releases provided
by, the Congoleum Entities under this Settlement and Buyback Agreement;
and/or (b) otherwise has a material adverse effect on the interests of the
St. Xxxx Travelers Entities under this Settlement and Buyback Agreement.
Travelers, in its sole option and in its sole discretion, shall have the right
to waive, in writing, any of the contingencies set forth in Sections V.A(i)
through V.A(vii), inclusive, by notice to the Persons described in the notice
provisions in Section XVI below within thirty (30) Business Days of the
occurrence of any such contingency(ies), and any such contingency(ies) so waived
shall be deemed irrevocably waived and satisfied. If all such contingencies are
so waived or are satisfied, then this Settlement and Buyback Agreement shall
continue in full force and effect.
B. Notwithstanding anything in this Settlement and Buyback Agreement to
the contrary, in the event that this Settlement and Buyback Agreement becomes
null and void pursuant to Section V.A above:
(i) The Settlement and Buyback Agreement, except for Sections I,
IV.H, V, IX, XII, XVI and XVII (which Sections shall remain in full force
and effect), shall be vitiated and shall be a nullity;
(ii) Travelers, on behalf of the St. Xxxx Travelers Entities, shall
not be obligated to pay the Settlement and Buyback Amount pursuant to this
Settlement and Buyback Agreement;
13
(iii) None of the St. Xxxx Travelers Entities, none of the ABI
Entities, and none of the Congoleum Entities shall be bound by the terms
of any Approval Order;
(iv) None of the St. Xxxx Travelers Entities shall be designated as,
and none of the St. Xxxx Travelers Entities shall receive the benefits or
protections of, a Settling Asbestos Insurance Company, and none of the St.
Xxxx Travelers Entities shall be entitled to benefit from any injunctive
or related benefit provided for in the Plan, Confirmation Order, or
otherwise in the Chapter 11 Cases, including any injunction or benefit
provided under the authority of Sections 105, 363, or 524(g) of the
Bankruptcy Code;
(v) The St. Xxxx Travelers Entities, the ABI Entities, and the
Congoleum Entities shall have all the rights, defenses and obligations
under or with respect to any Subject Policies that they would have had
absent this Settlement and Buyback Agreement;
(vi) Any otherwise applicable statutes of limitations or repose, or
other time-related limitation, shall be deemed to have been tolled for the
period from the Execution Date through the thirtieth day after receipt of
notice by any of the Parties that any of the contingencies listed in
Sections V.A(i) through V.A(vii), inclusive, has/have occurred so that the
Settlement and Buyback Agreement becomes null and void, and no Party shall
assert or rely on any time-related defense to any Claim by any St. Xxxx
Travelers Entity, ABI Entity, or Congoleum Entity related to such period;
(vii) The releases set forth in Section VI below shall become null
and void ab initio;
(viii) Any Party who was a party in the Coverage Action may elect to
re-file a coverage action against any other party in the Coverage Action.
Such a new coverage action shall be called the "New Coverage Action." All
discovery taken in the Coverage Action or in relationship to any of the
Plan's previous versions, and any and all evidence admitted, testimony
taken, and rulings of the Court entered in the trial of the Coverage
Action between August 2, 2005 and September 6, 2005 may be used in the New
Coverage Action. No rulings of the court, conclusions of law, or findings
of fact entered in the Coverage Action after September 7, 2005, shall be
used as evidence in any way in any proceeding involving a St. Xxxx
Travelers Entity or Congoleum Entity or have any evidentiary, res
judicata, collateral estoppel or preclusive or other effect against any
such St. Xxxx Travelers Entity or Congoleum Entity in the New Coverage
Action. The Parties agree that neither the "Entire Controversy Doctrine"
of New Jersey nor New Jersey Rule 4:30A nor any analogous doctrine or rule
shall bar any such Congoleum Entity and any such St. Xxxx Travelers Entity
from asserting, in such litigation, the same or substantially similar
Claims and/or defenses to those asserted in the Coverage Action.
Additionally, any such St. Xxxx Travelers Entity or any such Congoleum
Entity may file and/or assert any Claims and/or defenses which have arisen
since the date the trial of the Coverage Action began, on August 2, 2005.
In the event of a New Coverage Action, the St. Xxxx Travelers Entities
shall have the right to examine or cross-examine any witnesses designated
14
by any of the Parties in the New Coverage Action who were not examined or
cross-examined by Travelers and St. Xxxx xxxxx to the closing of the trial
in the Coverage Action before any such testimony or evidence adduced from
or introduced through such witnesses can be used in any way in the New
Coverage Action by any Congoleum Entity. Notwithstanding the above,
nothing in this Section V.B(viii) shall affect the rights of the ABI
Entities; and
(ix) The St. Xxxx Travelers Entities may pursue any and all
objections, whether to confirmation of a Chapter 11 plan of reorganization
for the Congoleum Entities, or otherwise.
VI. BUYBACK AND TERMINATION OF POLICY RIGHTS AND RELEASE
A. Effective immediately upon the Execution Date, but subject to
satisfaction of the conditions precedent, as set forth in Section II above, the
Congoleum Entities remise, release, acquit and forever discharge the St. Xxxx
Travelers Entities from any Claims arising from, relating to or involving the
Subject Policies, including, but not limited to (i) any Claims arising from,
relating to or involving asbestos-related Claims, including, but not limited to,
Plan Trust Asbestos Claims, and (ii) any Claims that were or could have been
brought in the Coverage Action.
B. For the avoidance of doubt, the Parties hereby confirm that the
releases granted by the Congoleum Entities to the St. Xxxx Travelers Entities as
set forth in Section VI.A are intended to include and do include releases from
any and all Claims that any Congoleum Entity ever had, now has or may in the
future have against any of the St. Xxxx Travelers Entities arising from or
related to what is commonly referred to as bad faith or insurer misconduct and
which includes: (i) the insurance relationship between any St. Xxxx Travelers
Entity and any Congoleum Entity and any obligations of any St. Xxxx Travelers
Entity under or in connection with such relationship; (ii) the obligations of
any St. Xxxx Travelers Entity to any Congoleum Entity as a result of (a)
issuance of the Subject Policies, (b) the handling of Claims against any
Congoleum Entity, (c) the defense or trial of Claims against any Congoleum
Entity, or (d) the settlement of Claims against any Congoleum Entity; (iii) any
and all acts or omissions by any St. Xxxx Travelers Entity in connection with
Claims made against any Congoleum Entity; (iv) any and all Claims arising from
or relating to loss prevention or engineering acts or omissions by any St. Xxxx
Travelers Entity performed in connection with the insurance relationship between
any St. Xxxx Travelers Entity and any Congoleum Entity; (v) any Claims with
respect to payments made by any St. Xxxx Travelers Entity to or on behalf of any
Congoleum Entity prior to the Execution Date; and (vi) any actual or alleged bad
faith, fraud, unfair competition, breach of contract, breach of duty of good
faith and fair dealing, violation of insurance statute or regulation or
extra-contractual liability of any kind, type or description, including any and
all Claims that arise under or from the laws, whether statutory, common or
otherwise, of one or more of the fifty (50) states or any other jurisdiction.
15
C. Effective immediately upon the Execution Date, but subject to
satisfaction of the conditions precedent, as set forth in Section II above, the
ABI Entities remise, release, acquit and forever discharge the St. Xxxx
Travelers Entities from any Claims arising from, relating to or involving: (i)
the Subject Policies; (ii) Plan Trust Asbestos Claims; (iii) Asbestos Claims;
(iv) Derivative Actions; and (v) any Claims arising from or related to what is
commonly referred to as bad faith and includes Claims for unfair and deceptive
acts, breach or violation of statutory duties, breach of fiduciary duties, and
breach of the covenant of good faith and fair dealing solely to the extent such
Claims arise out of or relate to the Claims released in Sections VI.C(i) through
VI.C(iv), inclusive and are not reserved in the following sentence.
Notwithstanding the foregoing sentence and any other provision of this
Settlement and Buyback Agreement to the contrary, the ABI Entities specifically
reserve, and do not remise, release, acquit or discharge the St. Xxxx Travelers
Entities from, any and all Claims and rights arising from, relating to or
involving: (x) any policies issued to any ABI Entities, including but not
limited to, ABI, American Biltrite Rubber Co., Inc., ABI Rubber Co., Inc., and
American Biltrite Rubber Corporation, except to the extent that such policies
are Subject Policies; and (y) the Settlement Agreement by and between
Continental Casualty Company, the Travelers Insurance Company, the Travelers
Indemnity Company, Risk Enterprise Management, Ltd., The Aetna Casualty and
Surety Company, Employers Insurance of Wausau, and American Biltrite Inc., dated
February 1, 1996.
D. Effective immediately upon the Execution Date, but subject to
satisfaction of the conditions precedent, as set forth in Section II above, the
St. Xxxx Travelers Entities remise, release, acquit and forever discharge the
Congoleum Entities from any Claims arising from, relating to or involving the
Subject Policies, including, but not limited to: (i) any Claims arising from,
relating to or involving asbestos-related Claims, including, but not limited to,
Plan Trust Asbestos Claims; and (ii) any Claims that were or could have been
brought in the Coverage Action.
E. For the avoidance of doubt, the Parties hereby confirm that the
releases granted by the St. Xxxx Travelers Entities to the Congoleum Entities as
set forth in Section VI.D are intended to include and do include releases from
any and all Claims that any St. Xxxx Travelers Entity ever had, now has or may
in the future have against any of the Congoleum Entities arising from or related
to what is commonly referred to as reverse bad faith or policyholder misconduct
and which includes: (i) the insurance relationship between any St. Xxxx
Travelers Entity and any Congoleum Entity and any obligations of any Congoleum
Entity under or in connection with such relationship; (ii) the obligations of
any Congoleum Entity to any St. Xxxx Travelers Entity as a result of (a)
issuance of the Subject Policies, (b) the handling of Claims against any
Congoleum Entity, (c) the defense or trial of Claims against any Congoleum
Entity, or (d) the settlement of Claims against any Congoleum Entity; (iii) any
and all acts or omissions by any of the Congoleum Entities in connection with
Claims made against any St. Xxxx Travelers Entity; and (iv) any actual or
alleged bad faith, fraud, unfair competition, breach of contract, breach of duty
of good faith and fair dealing, violation of insurance statute or regulation or
extra-contractual liability of any kind, type or description, including any and
all Claims that arise under or from the laws, whether statutory, common or
otherwise, of one or more of the fifty (50) states or any other jurisdiction.
16
F. Effective immediately upon the Execution Date, but subject to
satisfaction of the conditions precedent, as set forth in Section II above, the
St. Xxxx Travelers Entities remise, release, acquit and forever discharge the
ABI Entities from any Claims arising from, relating to or involving: (i) the
Subject Policies; (ii) Plan Trust Asbestos Claims; (iii) Asbestos Claims; (iv)
Derivative Actions; and (v) any Claims arising from or related to what is
commonly referred to as reverse bad faith and includes Claims for unfair and
deceptive acts, breach or violation of statutory duties, breach of fiduciary
duties, and breach of the covenant of good faith and fair dealing solely to the
extent such Claims arise out of or relate to the Claims released in Sections
VI.F(i) through VI.F(iv), inclusive. Notwithstanding the foregoing sentence and
any other provision of this Settlement and Buyback Agreement to the contrary,
the St. Xxxx Travelers Entities specifically reserve, and do not remise,
release, acquit or discharge the ABI Entities from any and all Claims and rights
arising from, relating to or involving: (x) any policies issued to any ABI
Entities, including, but not limited to ABI, American Biltrite Rubber Co., Inc.,
ABI Rubber Co, Inc. and American Biltrite Rubber Corporation, except to the
extent that such policies are Subject Policies; and (y) the Settlement Agreement
by and between Continental Casualty Company, the Travelers Insurance Company,
the Travelers Indemnity Company , Risk Enterprise Management, Ltd., The Aetna
Casualty and Surety Company, Employers Insurance of Wausau, and American
Biltrite, Inc., dated February 1, 1996.
G. For the avoidance of doubt, none of the releases set forth herein shall
release: (i) any of the Congoleum Entities', any of the ABI Entities' or any of
the St. Xxxx Travelers Entities' respective obligations under this Settlement
and Buyback Agreement, and the Parties hereby reserve and retain all rights in
connection with the enforcement of this Settlement and Buyback Agreement; (ii)
the Parties' rights and obligations under Policy Nos. QK09000534, QK09000747, 06
XN 22205576, 0369JM0112, OC06900058, and MOC 0645B63A issued by one or more St.
Xxxx Travelers Entities to ABI for Claims other than those arising from,
relating to or involving asbestos-related Claims, including but not limited to
Plan Trust Asbestos Claims (recognizing that the Parties agree that each of the
first three such policies contains an exclusion for asbestos coverage and that
the last three such policies do not afford liability insurance coverage); and/or
(iii) any reinsurance policy, contract or certificate issued by any St. Xxxx
Travelers Entity and/or any reinsurance treaty in which any St. Xxxx Travelers
Entity participates.
H. In consideration of the promises contained in this Settlement and
Buyback Agreement and consistent with the scope of the releases given in Section
VI, effective immediately upon the Execution Date, but subject to the
satisfaction of the conditions precedent, as set forth in Section II above: (i)
the limits of liability of all of the Subject Policies are hereby deemed by the
Parties to be fully extinguished for all Claims; (ii) any and all purported
rights, duties, responsibilities and obligations of any St. Xxxx Travelers
Entity alleged to have been created or that may be created by the Subject
Policies and that have been released pursuant to Section VI are hereby deemed
extinguished, terminated, canceled and otherwise fully satisfied; and (iii) any
and all rights under the Subject Policies that have been released pursuant to
Section VI shall be and are extinguished, terminated and voided, subject to the
terms and conditions of this Settlement and Buyback Agreement. The Subject
Policies are to be thereafter treated as null and void, and no Person shall have
the right hereafter to present or tender any Claim released pursuant to Section
VI under the Subject Policies regardless of whether the Claim has been or could
17
have been presented or tendered prior to the Trigger Date. In addition, as of
the Trigger Date, any and all rights of the Debtors under the Subject Policies
shall be and are deemed sold, transferred and conveyed to the St. Xxxx Travelers
Entities pursuant to Section 363 of the Bankruptcy Code, free and clear of all
Claims, liens, encumbrances and/or interests of any kind and/or nature
whatsoever, to the extent permitted under Section 363(f) of the Bankruptcy Code.
None of the St. Xxxx Travelers Entities shall have a duty or obligation to
defend, pay defense costs, indemnify or otherwise to provide defense, indemnity,
coverage, services or benefits of any kind whatsoever released pursuant to
Section VI under the Subject Policies. For the avoidance of doubt, this Section
VI.H shall not apply to those insurance policies issued to any ABI Entities
insofar as they provide coverage to any ABI Entities.
I. The Congoleum Entities agree and jointly represent that the promises
and consideration given by any of the St. Xxxx Travelers Entities pursuant to
this Settlement and Buyback Agreement, including, but not limited to the payment
of the Settlement and Buyback Amount by Travelers on behalf of the St. Xxxx
Travelers Entities pursuant to this Settlement and Buyback Agreement, constitute
a fair and reasonable exchange for: (i) the releases granted to St. Xxxx
Travelers Entities in this Settlement and Buyback Agreement; (ii) the sale,
transfer, conveyance and buyback of the rights and interests of the Congoleum
Entities in the Subject Policies; and (iii) the designation of St. Xxxx
Travelers Entities as Settling Asbestos Insurance Companies, entitled to the
rights and benefits afforded to Settling Asbestos Insurance Companies under the
Plan and as set forth in the Approval Order and the Confirmation Order,
including the rights and benefits of the Asbestos Channeling Injunction and any
other Section 105(a) and 524(g) injunctions that may be granted under the Plan,
Approval Order and the Confirmation Order with respect to all Claims, including
all Plan Trust Asbestos Claims and Indirect Asbestos Claims.
J. Based upon the representation and warranty of the St. Xxxx Travelers
Entities set forth in Section XI.C and the Parties' understanding regarding the
corporate history of the Congoleum Entities, the Congoleum Entities do not claim
to be entitled to insurance, rights or benefits, and, in fact, to the extent
that they had or have any interest, expressly renounce any such interest in the
policies and alleged policies set forth in Exhibit D hereto (the "Listed
Policies") and agree that they have no right to assert any Claims under such
Listed Policies and that there is no coverage available to them under such
Listed Policies. For the avoidance of doubt, the Parties agree that they do not
deem the Listed Policies to be Subject Policies because they agree that the
Congoleum Entities do not have any interests or rights in the Listed Policies.
If, after the Execution Date, a court of competent jurisdiction were to rule,
after a final order on appeal, that a Congoleum Entity has an interest or right
in a Listed Policy as defined above, or if, after the Execution Date, new
information were to reveal that a Congoleum Entity has an interest or right in a
Listed Policy as defined above, then such Listed Policy will be deemed a Subject
Policy.
K. Except to the extent set forth in Section VI.J, the release provisions
of this Section VI are not intended to release and shall not be construed deemed
to effect a release of any Claims arising from, relating to or involving (i) any
policy of insurance that is not a Subject Policy, (ii) that portion of the
coverage of any policy of insurance that is otherwise a Subject Policy, but as
to which such portion of coverage has been carved out of the definition of
Subject Policy, or (iii) the rights of any insured Person under a Subject Policy
that is not a Congoleum Entity except to the extent that the Congoleum Entities
have the right and power to release such rights.
18
L. Each Party expressly assumes the risk that acts, omissions, matters,
causes or things may have occurred that they do not know or do not suspect to
exist. Each Party hereby waives the terms and provisions of any statute, rule or
doctrine of common law that either: (i) narrowly construes releases purporting
by their terms to release claims, in whole or in part based upon, relating to or
arising from such acts, omissions, matters, causes or things; or (ii) restricts
or prohibits releasing of such claims. Without limitation, each Party
acknowledges that it has been advised by its attorneys concerning, and is
familiar with, the California Civil Code Section 1542. Section 1542 of the
California Civil Code provides as follows:
a general release does not extend to claims which the creditor
does not know or suspect to exist in his or her favor at the time
of the executing of the release, which if known by him or her
must have materially affected his or her settlement with the
debtor.
Each Party expressly waives any and all rights under California Civil Code
Section 1542 and under any other federal or state statute or law of similar
effect. The Parties further agree that this reference to the California Civil
Code shall not give rise to any argument that California law applies to this
Settlement and Buyback Agreement or the disputes resolved pursuant hereto.
VII. DEFENSE OF THE ASBESTOS CHANNELING INJUNCTION
A. In the event that any Claim is brought against any St. Xxxx Travelers
Entity after the Trigger Date that is subject to the Asbestos Channeling
Injunction ("SPT Channeling Injunction Claim"), the Plan Trust and the Plan
Trustee will exercise their reasonable best efforts and take all reasonably
necessary and appropriate steps to oppose any such SPT Channeling Injunction
Claim by a Person claiming a right against any of the St. Xxxx Travelers
Entities under the Subject Policies or otherwise in violation of the Asbestos
Channeling Injunction.
B. Except as provided hereafter, the Plan Trust shall bear all of the
costs, including attorneys' fees and settlements and judgments, associated with
its opposing such SPT Channeling Injunction Claims. The St. Xxxx Travelers
Entities shall have the right to consent to the selection of the counsel to be
paid by the Plan Trust in any such action ("Designated Counsel"), which consent
shall not be unreasonably withheld. The Plan Trust shall have no obligation to
pay any internal costs of any of the St. Xxxx Travelers Entities (including
costs associated with time or expense of employees of any of the St. Xxxx
Travelers Entities) or fees or expenses associated with the St. Xxxx Travelers
Entities' employment of outside counsel (other than Designated Counsel). The
obligation of the Plan Trust to bear all of the costs, including attorneys' fees
and settlements and judgments, associated with its opposing such SPT Channeling
Injunction Claims (including the portions of any such Claim that is a SPT
Channeling Injunction Claim and that also names as defendants insurers other
than St. Xxxx Travelers Entities) and its opposing any other Claims that are
19
subject to the Asbestos Channeling Injunction (which opposition is undertaken at
the request of the St. Xxxx Travelers Entities) shall not exceed the total sum
of Three Million, Six Hundred Thousand U.S. Dollars ($3,600,000.00). In the
event the Plan Trustee or the Plan Trust fails to satisfy these defense
obligations, the Plan Trust shall be liable to the St. Xxxx Travelers Entities
for any damages that result from such breach, as may be determined by a court of
competent jurisdiction. In any action brought by any of the St. Xxxx Travelers
Entities against the Plan Trust or the Plan Trustee requesting that the Plan
Trust or Plan Trustee meet its obligations under this Section VII, each party
shall bear its own costs.
The St. Xxxx Travelers Entities may enforce any judgment that any of the
St. Xxxx Travelers Entities may obtain against the Plan Trust as a result of any
breach of the obligations of the Plan Trust or the Plan Trustee as is
contemplated in Section VII.B above, by any applicable enforcement procedure.
Without limitation, the St. Xxxx Travelers Entities may enforce any such
judgment awarded in their favor by offsetting the amount of such judgment
against any future payment by Travelers on behalf of the St. Xxxx Travelers
Entities under the Settlement and Buyback Agreement.
VIII. REDUCTION OF JUDGMENT
In the event that any insurer of the Debtors either: (i) obtains a final
binding award (whether by judgment, arbitration award, or other judicial or
quasi-judicial proceeding) against a St. Xxxx Travelers Entity after a contested
proceeding; or (ii) agrees to a settlement with a St. Xxxx Travelers Entity with
the consent of the Debtors prior to the Plan Effective Date or with the consent
of the Plan Trust following said Plan Effective Date (which consent in either
case shall not be unreasonably withheld) entitling such insurer to obtain a sum
certain from such St. Xxxx Travelers Entity as a result of such insurer's claim
for contribution, subrogation, indemnification, reimbursement or other similar
claim against such St. Xxxx Travelers Entity for such St. Xxxx Travelers
Entity's alleged share or equitable share of the defense and/or indemnity of a
Congoleum Entity, the Congoleum Entity shall voluntarily reduce or return to
such insurer an amount of any such final award (whether by judgment, arbitration
award or other judicial or quasi-judicial proceeding) or settlement payment that
they obtained or may obtain from such other insurer for Claims released pursuant
to this Settlement and Buyback Agreement, which amount shall be sufficient to
eliminate the St. Xxxx Travelers Entity's obligation to satisfy the award
against it.
IX. NO ADMISSIONS BY THE PARTIES; RIGHTS OF THIRD PARTIES
A. Nothing contained herein is or shall be deemed to be:
(i) An admission by the St. Xxxx Travelers Entities that any
Congoleum Entity, ABI Entity, or any other Person was or is entitled to
any insurance coverage under the Subject Policies, or as to the validity
of any of the positions that have been or could have been asserted by any
Congoleum Entity or ABI Entity;
(ii) An admission by the Congoleum Entities or the ABI Entities as
to the validity of any of the positions or defenses to coverage that have
been or could have been asserted by St. Xxxx Travelers Entities with
respect to the Subject Policies;
20
(iii) An admission by any Party of any liability whatsoever with
respect to asbestos-related Claims including, but not limited to Plan
Trust Asbestos Claims, Indirect Asbestos Claims or other Claims or
Demands;
(iv) A waiver by the St. Xxxx Travelers Entities of any position
that they may adopt or already have adopted concerning the appropriateness
of any bankruptcy process or procedure or any other issue or matter in any
other case or proceeding;
(v) An admission by any St. Xxxx Travelers Entity as to the validity
of anything with respect to the Plan, including, without limitation, any
claim allowance process or criteria, medical criteria, exposure criteria,
disease matrices, claim values, or trust distribution procedures that have
been or will be adopted, used or applied or any aspects of the Plan that
may implicate the rights and duties of the St. Xxxx Travelers Entities; or
(vi) An admission by any Congoleum Entity or any St. Xxxx Travelers
Entity as to the manner in which the other may allocate the Settlement and
Buyback Amount for its own purposes between and among the Subject
Policies.
In entering into this Settlement and Buyback Agreement, no Party has waived, nor
shall be deemed to have waived, modified, or retracted any rights, obligations,
privileges or positions it has asserted or might in the future assert in
connection with any Claim, matter, insurance policy or Person outside the scope
of this Settlement and Buyback Agreement.
B. Except as expressly provided in this Settlement and Buyback Agreement,
the Parties specifically disavow any intention to create rights in third parties
under or in relation to this Settlement and Buyback Agreement.
C. The Parties agree that no part of this Settlement and Buyback Agreement
may be used in any proceeding as an admission by or evidence against or for any
other purpose as evidence of the Parties' respective rights, duties or
obligations under and in relation to any policy of insurance, including the
Subject Policies; provided, however, that this restriction shall not apply to
any proceeding in connection with or related to the interpretation, validity,
enforcement or breach of this Settlement and Buyback Agreement. The Parties
further agree that no part of this Settlement and Buyback Agreement or the fact
that the St. Xxxx Travelers Entities have entered into it may be used in any
proceeding as an admission by, evidence against, or for any other purpose in an
action involving any of the St. Xxxx Travelers Entities pertaining to the
validity of anything with respect to the Plan, including, without limitation,
any claim allowance process or criteria, medical criteria, exposure criteria,
disease matrices, claim values, or trust distribution procedures that have been
or will be adopted, used or applied or any aspects of the Plan that may
implicate the rights and duties of the St. Xxxx Travelers Entities.
D. All actions taken and statements made by the Parties or their
representatives relating to their participation in this Settlement and Buyback
Agreement, including its formation and implementation, shall relate to this
matter only and shall be without prejudice or value as precedent and shall not
be taken as a standard by which other matters may be judged or adjudicated.
00
X. Xxx Xx. Xxxx Travelers Entities shall not seek reimbursement of any
payments that Travelers made or is obligated to make under this Agreement or the
Subject Policies, whether by way of a claim for contribution or subrogation, or
otherwise, from any Person other than the St. Xxxx Travelers Entities'
reinsurers in their capacity as such. Each of the Debtors shall use its
reasonable best efforts to obtain from all insurers with which it settles an
agreement similar to that set forth in the preceding sentence; provided,
however, that notwithstanding anything to the contrary herein, the failure of
the Debtors to obtain such an agreement from any other insurer with which they
settle shall not constitute a breach of this Agreement. Notwithstanding the
foregoing, subject to the effect of any injunction issued pursuant to section
524(g) and/or section 105(a) of the Bankruptcy Code, the St. Xxxx Travelers
Entities may file a cross-complaint or counterclaim against any Person that has
first asserted a claim seeking reimbursement for any payment that it has paid or
is required to pay to Debtors, whether by way of a claim for contribution and/or
subrogation or otherwise, against the St. Xxxx Travelers Entities in connection
with any Claims released hereunder.
X. SUCCESSORS
This Settlement and Buyback Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns,
including the reorganized Debtors and the Plan Trust.
XI. REPRESENTATIONS AND WARRANTIES
A. Each Party represents and warrants that it has full authority to
execute this Settlement and Buyback Agreement as its binding and legal
obligation (subject, however, in the case of the Debtors, to the requirement
that the Approval Order be entered). The person signing this Settlement and
Buyback Agreement on behalf of each Party represents and warrants he or she is
authorized to execute this Settlement and Buyback Agreement (subject, however,
in the case of the Debtors, to the requirement that the Approval Order be
entered) on behalf of all Persons for whom he or she signs.
B. The Congoleum Entities and the St. Xxxx Travelers Entities each
represent and warrant, which representation and warranty is based solely upon an
inquiry performed by their respective employees involved in the Coverage Action
and in the negotiation, documentation and execution of this Settlement and
Buyback Agreement and their counsel involved in the Coverage Action and in the
negotiation, documentation and execution of this Settlement and Buyback
Agreement, that they are not aware of any Subject Policies other than the
insurance policies and alleged policies identified in Exhibit E hereto.
C. The St. Xxxx Travelers Entities each represent and warrant, which
representation and warranty is based solely upon their understanding of the
corporate history of the Congoleum Entities and a review of the available
documentation and other information regarding the policies and alleged policies
identified in Exhibit D hereto performed by their employees involved in the
22
Coverage Action and in the negotiation, documentation and execution of this
Settlement and Buyback Agreement and their counsel involved in the Coverage
Action and in the negotiation, documentation and execution of this Settlement
and Buyback Agreement, that the documentation and other information available to
those Persons making such representations and warranties on behalf of the St.
Xxxx Travelers Entities regarding the policies and alleged policies identified
in Exhibit D hereto indicate, to the best of their knowledge and belief, that
the policies and alleged policies identified in Exhibit D hereto: (i) do not
identify any of the Congoleum Entities as insureds or otherwise insure them; and
(ii) insure only Persons who, during the effective period of the policies and
alleged policies, were not Congoleum Entities.
D. The St. Xxxx Travelers Entities each warrant and represent to the best
of their knowledge and belief, which representation and warranty is based solely
upon an inquiry performed by their respective employees involved in the Coverage
Action and in the negotiation, documentation and execution of this Settlement
and Buyback Agreement and their counsel involved in the Coverage Action and in
the negotiation, documentation and execution of this Settlement and Buyback
Agreement, that the St. Xxxx Travelers Entities encompassed by the definition in
Section I.T(i) in the business of issuing insurance policies as of December 31,
2005 are those Persons listed in Exhibit B and that the most recent publicly
available list is the one as of December 31, 2005; provided, however, that the
Congoleum Entities understand and acknowledge that Section I.T by its terms is
not limited to those Persons so listed, only that those Persons listed are the
ones that the St. Xxxx Travelers Entities represent and warrant pursuant to the
terms of this Section XI.D were in the business of issuing insurance policies as
of December 31, 2005.
E. Other than any pending or threatened Claims by Debtors against the St.
Xxxx Travelers Entities under the Subject Policies, the St. Xxxx Travelers
Entities each represent and warrant, which representation and warranty is based
solely upon an inquiry performed by their employees involved in the Coverage
Action and in the negotiation, documentation and execution of this Settlement
and Buyback Agreement and their counsel involved in the Coverage Action and in
the negotiation, documentation and execution of this Settlement and Buyback
Agreement, that they are aware of no pending Claims against any St. Xxxx
Travelers Entity by others that would be released by Section VI or barred by an
injunction contemplated and provided for by this Settlement and Buyback
Agreement.
XII. NO PREJUDICE AND CONSTRUCTION OF AGREEMENT
A. This Settlement and Buyback Agreement is the product of informed
negotiations and involves compromises of the Parties' legal positions. This
Settlement and Buyback Agreement is without prejudice to positions taken by the
Parties with regard to other insureds or to other insurers. This Settlement and
Buyback Agreement is the jointly drafted product of arm's length negotiations
between the Parties with the benefit of advice from counsel, and the Parties
agree that it shall be so construed. As such, no Party will claim that any
ambiguity in this Settlement and Buyback Agreement shall be construed against
any other Party by reason of the identity of the drafter.
23
B. The negotiation, execution and performance of this Settlement and
Buyback Agreement shall not be deemed to be or cited as an act of bad faith or a
violation of any statute, regulation, contract or duty owed by any Party to any
other Party.
XIII. ENTIRE AGREEMENT AND TERM
A. This Settlement and Buyback Agreement expresses the entire agreement
and understanding between and among the Parties. Except as expressly set forth
in this Settlement and Buyback Agreement, there are no representations,
warranties, promises or inducements, whether oral, written, expressed or
implied, that in any way affect or condition the validity of this Settlement and
Buyback Agreement or alter its terms. If the facts or law related to the subject
matter of this Settlement and Buyback Agreement are found hereafter to be other
than is now believed by any of the Parties, the Parties expressly accept and
assume the risk of such possible difference of fact or law and agree that this
Settlement and Buyback Agreement nonetheless shall be and remain effective
according to its terms. This Settlement and Buyback Agreement shall be binding
on, and inure to the benefit of, the Parties and their respective successors and
assigns in their respective capacities as such. This Settlement and Buyback
Agreement shall have perpetual existence, except as expressly provided herein.
B. Titles and captions contained in this Settlement and Buyback Agreement
are inserted only as a matter of convenience and are for reference purposes
only. Such titles and captions are intended in no way to define, limit, expand,
or describe the scope of this Settlement and Buyback Agreement or the intent of
any provision hereof.
XIV. NO MODIFICATION
No change, amendment, variation or modification of the terms of this
Settlement and Buyback Agreement shall be valid unless it is made in writing and
signed the Debtors, ABI, Travelers, and St. Xxxx. In the event that any such
Person is dissolved following the Execution Date, the remaining Persons may
modify this Settlement and Buyback Agreement without that Person's consent.
After the Plan Effective Date, any change, amendment, variation, or modification
of the terms of this Settlement and Buyback Agreement will also require the
consent of the Plan Trust.
XV. EXECUTION
This Settlement and Buyback Agreement may be executed in counterparts,
each of which shall be deemed an original and all of which shall constitute one
and the same instrument. Each counterpart may be delivered by facsimile
transmission, and a faxed signature shall have the same force and effect as an
original signature.
24
XVI. NOTICES
Any and all statements, communications, or notices to be provided pursuant
to this Settlement and Buyback Agreement shall be in writing and sent by
facsimile or by first-class mail, postage prepaid. Such notices shall be sent to
the individuals noted below, or to such other individuals as each Party may
designate in writing from time to time:
IF TO CONGOLEUM CORPORATION OR TO ANY
OTHER CONGOLEUM ENTITY:
Xxxxxx X. Xxxxx III
Congoleum Corporation
00 Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000-0000
Phone: (000) 000-0000
Fax: (000) 000-0000
e-mail: xxxxxx@xxxxxx.xxxxxxxxx.xxx
With a copy to:
Pillsbury Xxxxxxxx Xxxx Xxxxxxx LLP
0000 Xxxxxxxx
Xxx Xxxx, XX 00000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxx X. Xxxxxxx, Esq.
Phone: (000) 000-0000
Fax: (000) 000-0000
e-mail: xxxxxxx.xxxxxx@xxxxxxxxxxxx.xxx
xxxxx.xxxxxxx@xxxxxxxxxxxx.xxx
Xxxxxxxxx & Xxxxxxx
0000 Xxxxxxxxxxxx Xxxxxx, XX
Xxxxxxxxxx, XX 00000-0000
Attn: Xxxxxxxx X. Xxxxx, Esq.
Phone: (000) 000-0000
Fax: (000) 000-0000
e-mail: xxxxxx@xxx.xxx
IF TO AMERICAN BILTRITE INC. OR
TO ANY OTHER ABI ENTITY:
Xxxxx X. Xxxxxx
American Biltrite Inc.
00 Xxxxx Xxxxxx
Xxxxxxxxx Xxxxx, XX 00000
Phone: (000) 000-0000
Fax: (000) 000-0000
25
With a copy to:
Winston & Xxxxxx LLP
0000 X Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attn: Xxxxxxx X. Xxxx, Esq.
Xxxx Xxxxxxxxxx, Esq.
Phone: (000) 000-0000
Fax: (000) 000-0000
e-mail: xxxxx@xxxxxxx.xxx
xxxxxxxxxxx@xxxxxxx.xxx
IF TO THE PLAN TRUST:
Plan Trustee
Contact information to be supplied by the Plan Trust
IF TO THE ST. XXXX TRAVELERS ENTITIES:
General Counsel - Environmental Litigation
Travelers Casualty and Surety Company
Xxx Xxxxx Xxxxxx - 0XX
Xxxxxxxx, XX 00000-0000
Phone: (000) 000-0000
Fax: (000) 000-0000
XVII. NEGOTIATION PRIVILEGE
All communications, negotiations and/or discussions leading up to the
execution of this Settlement and Buyback Agreement and all related
communications, negotiations and/or discussions shall be deemed to fall within
the protection afforded to compromises and to offers to compromise by Rule 408
of the Federal Rules of Evidence and any parallel state law provisions. The
Parties agree that any and all such communications, negotiations and/or
discussions shall remain confidential, inadmissible and not subject to
discovery.
XVIII. 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, Travelers 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 St. Xxxx Travelers
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 St. Xxxx
Travelers Entities pursuant to liability policies of insurance issued by the St.
Xxxx Travelers Entities; (2) historic premium charged by the St. Xxxx Travelers
26
Entities for lines of liability insurance that have sustained losses for
asbestos-related bodily injury claims; (3) amounts reserved by the St. Xxxx
Travelers Entities for the asbestos exposure of their insureds; or (4) the
estimated cost to the St. Xxxx Travelers Entities for their future liability for
asbestos-related bodily injury claims under liability insurance policies issued
to the insureds of the St. Xxxx Travelers Entities, including the Congoleum
Entities. Even if the contingencies of the previous sentence are met, Travelers
shall nonetheless have an obligation to pay the Unpaid Amount if and in the
dollar amount that the St. Xxxx Travelers 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 St. Xxxx Travelers Entities under this Settlement and
Buyback Agreement to pay towards the Unpaid Amount. For the avoidance of doubt,
the amount that Travelers 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 St. Xxxx Travelers 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 St. Xxxx Travelers 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. This Section XVIII.B shall have no effect on the obligations of
the Parties under Section III and Section XVIII.A.
C. Definitions
"Asbestos Fund" means a fund, trust or other similar mechanism
created by Asbestos Fund Legislation.
"Asbestos Fund Legislation" means any legislation enacted by
the United States Congress and signed by the President of the United
States, or that becomes law without the President's signature, that
establishes a fund, trust, or other similar mechanism that has the effect
of providing for resolution of substantially all of the asbestos-related
bodily injury claims that are pending or, in the absence of the Asbestos
Fund Legislation, could have been filed in the state or federal courts.
The term "Asbestos Fund Legislation" is intended to encompass what is
commonly understood to be "asbestos reform" legislation and is not
intended to encompass general tort reform, class action reform,
malpractice reform, or tax reform, or any other legislation that would
regulate, limit or control Claims without regard to whether such Claims
arise from or are attributable to exposure to asbestos or
asbestos-containing products. For the avoidance of doubt, the fact that
legislation alters or modifies the requirements or standards for
establishing liability against the Debtors and/or the Plan Trust
(including legislation that imposes medical and/or exposure criteria,
imposes strict liability on the Debtors and/or the Plan Trust, or
regulates or limits the jurisdiction or forum in which asbestos-related
bodily injury claims may be brought) without also creating a fund to pay
for such Claims is not "Asbestos Fund Legislation" under this Section
XVIII.C(ii).
27
"Asbestos Fund Legislation Effective Date" means the date on
which Asbestos Fund Legislation is signed by the President of the United
States or becomes law without the President's signature.
XIX. MISCELLANEOUS
The Parties shall execute such instruments, agreements or other documents
and take such further actions as may be reasonably required to carry out the
provisions of this Settlement and Buyback Agreement and the transactions
contemplated hereby.
[The remainder of this page is left blank intentionally.]
28
IN WITNESS WHEREOF, this Settlement and Buyback Agreement, consisting of
59 pages, including the signature page and Exhibits A through F, has been read
and signed by the duly authorized representatives of the Parties on the dates
set.
April 25, 2006
CONGOLEUM CORPORATION,
CONGOLEUM SALES, INC. and
CONGOLEUM FISCAL, INC. (on behalf of all
of the Congoleum Entities)
By: /s/ Xxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxx X. Xxxxx
----------------------------------
Title: CFO
---------------------------------
April 25, 2006
AMERICAN BILTRITE INC.
(on behalf of all of the ABI Entities)
By: /s/ Xxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxx X. Xxxxx
----------------------------------
Title: VP-Finance
---------------------------------
April 20, 2006
TRAVELERS CASUALTY AND SURETY
COMPANY AND ST. XXXX FIRE AND
MARINE INSURANCE COMPANY (on behalf
of all of the St. Xxxx Travelers Entities)
By: /s/ Xxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxx X. Xxxxx
----------------------------------
Title: Senior Vice President
---------------------------------
29
SETTLEMENT AND BUYBACK AGREEMENT EXHIBIT A
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW JERSEY
--------------------------------------
In re:
CONGOLEUM CORPORATION, et al., Case No. 03-51524 (KCF)
Jointly Administered
Debtors. Chapter 11
--------------------------------------
ORDER AUTHORIZING AND APPROVING SETTLEMENT AND
POLICY BUYBACK AGREEMENT AND RELEASE AMONG THE
CONGOLEUM ENTITIES, THE PLAN TRUST, THE ABI ENTITIES AND
THE ST. XXXX TRAVELERS ENTITIES AND SALE OF SUBJECT POLICIES PURSUANT TO
SECTIONS 105, 363, 1107 AND 1108 OF THE BANKRUPTCY CODE
AND RULES 2002, 6004, 9014 AND 9019 OF THE
FEDERAL RULES OF BANKRUPTCY PROCEDURE
The relief set forth on the following pages, numbered two (2) through
sixteen (16) is hereby ORDERED.
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
2
This matter came before the Court on the Motion for Order Approving
Settlement and Policy Buyback Agreement and Release with the St. Xxxx Travelers
Entities, et al. (the "Motion"), filed by Congoleum Corp., Congoleum Sales,
Inc., and Congoleum Fiscal, Inc., the debtors and debtors-in-possession herein
(the "Debtors"), seeking approval of the Settlement and Policy Buyback Agreement
and Release, dated as of April __, 2006 (attached hereto as Exhibit 1 and as it
may be amended, supplemented or otherwise modified from time to time in writing,
the "Settlement and Buyback Agreement"), and the settlements, releases,
compromises and policy buyback contained therein pursuant to Bankruptcy Code
Sections 105, 363, 1107 and 1108 and Rules 2002, 6004, 9014 and 9019 of the
Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules"). All capitalized
terms not otherwise defined herein shall have the meaning ascribed to such terms
in the Settlement and Buyback Agreement. Capitalized terms that are not defined
in this Approval Order or in the Settlement and Buyback Agreement are given the
meanings designated in the Eighth Modified Joint Plan of Reorganization, dated
as of March 17, 2006.
Adequate notice of the Motion and of the hearing on the Motion was given
by mailing, or emailing in the case of the Master E-Mail service list defined
below, a copy of the Motion and notice of the hearing on the Motion to: (a) the
"Core Service List" and the "Master Service List," each as defined in the Order
Establishing Case Management and Administrative Procedures, dated February 25,
2004, and the "Master E-Mail Service List," as defined in the Order (1) Amending
The Order Establishing Case Management and Administrative Procedures Entered On
February 25, 2004 And The Order Establishing Procedures For Interim Compensation
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
3
And Reimbursement Of Expenses Of Professionals Entered On February 10, 2004 And
(2) Allowing Notice By E-Mail And Establishing Procedures Therefor, dated
September 6, 2005; (b) the Claimants' Representative; (c) the Office of the
United States Trustee; (d) the FCR and counsel to the FCR; (e) counsel to the
members of the ACC and the ACC's counsel; (f) parties who have filed a notice of
appearance in these Chapter 11 Cases; (g) the Collateral Trustee (the
"Collateral Trustee") of the Congoleum Collateral Trust (the "Collateral Trust")
established pursuant to a Collateral Trust Agreement dated April 16, 2003; (h)
ABI and counsel to ABI; (i) counsel to all known holders of Asbestos Claims as
reflected in the proofs of claim filed in these Chapter 11 Cases, claims
submitted in connection with the Settlement Between Congoleum Corporation and
Various Asbestos Claimants attached as Exhibit E to the Disclosure Statement
with respect to the Plan (the "Claimant Agreement"), or ballots submitted in
connection with these Chapter 11 Cases; (j) all known holders of Asbestos Claims
whose counsel is not included within the preceding clause who, as of at least
ten (10) Business Days prior to the Hearing, became known through filing of a
proof of claim; and (k) the members of the Bondholders' Committee and counsel to
such Committee.
A hearing on the Motion was held on May __, 2006 (the "Hearing") to
consider approval of the Settlement and Buyback Agreement, and all interested
parties were given an opportunity to be heard and to present evidence and object
to the Motion. Based upon the record of the Hearing and of these Chapter 11
Cases, and after due deliberation and sufficient cause appearing therefor:
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
4
The Court hereby FINDS(1) that:
XX. THIS COURT HAS JURISDICTION TO HEAR AND DETERMINE THE MOTION PURSUANT
TO 28 U.S.C. xx.xx. 157 AND 1334. THIS MOTION PRESENTS A CORE PROCEEDING
PURSUANT TO 28 U.S.C. xx.xx. 157(B)(2)(A), (N) AND (O).
XXI. THE NOTICE OF THE MOTION, OF THE DEADLINE TO OBJECT TO THE MOTION AND
OF THE HEARING ON THE MOTION DESCRIBED ABOVE CONSTITUTES DUE, SUFFICIENT AND
TIMELY NOTICE TO ALL PERSONS ENTITLED THERETO IN ACCORDANCE WITH THE
REQUIREMENTS OF THE BANKRUPTCY CODE, THE BANKRUPTCY RULES AND THE LOCAL RULES
FOR THE U.S. DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY AND THE BANKRUPTCY
COURT, AND OF DUE PROCESS. NO OTHER OR FURTHER NOTICE OF THE MOTION, OF THE
HEARING ON THE MOTION OR OF THE REQUEST FOR ENTRY OF THIS APPROVAL ORDER IS OR
SHALL BE REQUIRED. THIS COURT HEREBY FURTHER FINDS THAT NOTICE TO AN ATTORNEY
FOR THE HOLDER OF AN ASBESTOS CLAIM CONSTITUTES NOTICE TO SUCH HOLDER FOR
PURPOSES OF NOTICE OF THE MOTION, THE HEARING, THE SETTLEMENT AND BUYBACK
AGREEMENT, AND THE APPROVAL ORDER.
XXII. THIS APPROVAL ORDER IS "FINAL" WITHIN THE MEANING OF 28 U.S.C. ss.
158(A)(1).
----------
(1) Findings of fact shall be construed as conclusions of law and conclusions
of law as findings of fact when appropriate in accordance with Bankruptcy
Rule 7052.
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
5
XXIII.______TO THE EXTENT THAT ANY PERSON (I) EITHER (A) RECEIVED PROPER
NOTICE OF THESE MATTERS (OR IS REPRESENTED BY A PERSON, INCLUDING, WITHOUT
LIMITATION, THE FCR OR COUNSEL, THAT RECEIVED SUCH NOTICE) OR (B) HAVING HAD
NOTICE OF THESE CHAPTER 11 CASES, ELECTED NOT TO REQUEST NOTICES REGARDING THESE
CHAPTER 11 CASES, AND (II) FAILED TO OBJECT TO THE MOTION AND THE ENTRY OF THIS
APPROVAL ORDER, THEN SUCH PERSONS, INCLUDING WITHOUT LIMITATION, THE DEBTORS AND
THE PLAN TRUST (OR, TO THE EXTENT THAT IT HAS NOT YET BEEN FORMED OR DOES NOT
YET EXIST, ITS PREDECESSOR(S) IN INTEREST), THE FCR, THE CLAIMANTS'
REPRESENTATIVE AND THE ACC, HEREBY SHALL HAVE NO RIGHT TO FILE OR PROSECUTE AN
APPEAL OF THIS APPROVAL ORDER.
XXIV. THE CONGOLEUM ENTITIES AND THE ST. XXXX TRAVELERS ENTITIES
NEGOTIATED AT ARM'S LENGTH AND IN GOOD FAITH TO REACH A SETTLEMENT ON THE
MATTERS RESOLVED THROUGH THE SETTLEMENT AND BUYBACK AGREEMENT.
XXV. THE DEBTORS' RIGHTS AND OBLIGATIONS UNDER THE SUBJECT POLICIES ARE
PROPERTY OF THE DEBTORS' ESTATES, AND THIS COURT HAS THE JURISDICTION AND POWER
TO APPROVE THE SETTLEMENT AND BUYBACK AGREEMENT AND THE COMPROMISES AND RELEASES
CONTAINED THEREIN.
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
6
XXVI. THE DEBTORS HAVE DUE AND PROPER CORPORATE AUTHORITY TO ENTER INTO
THE SETTLEMENT AND BUYBACK AGREEMENT AND PERFORM ALL OF THEIR OBLIGATIONS
THEREUNDER. NO CONSENTS OR APPROVALS, OTHER THAN THIS APPROVAL ORDER, ARE
REQUIRED FOR THE DEBTORS TO PERFORM ALL OF THEIR OBLIGATIONS THEREUNDER,
INCLUDING THE SALE AND TRANSFER OF THE SUBJECT POLICIES. THE CONSUMMATION OF THE
SETTLEMENT AND BUYBACK AGREEMENT BY THE DEBTORS AND THE PLAN TRUST DOES NOT
CONFLICT, CONTRAVENE, OR CAUSE A BREACH, DEFAULT OR VIOLATION OF ANY LAW, RULE,
REGULATION, CONTRACTUAL OBLIGATION OR ORGANIZATIONAL OR FORMATION DOCUMENT.
XXVII.______THE COMPROMISES CONTAINED IN THE SETTLEMENT AND BUYBACK
AGREEMENT ARE A VALID AND PROPER EXERCISE OF THE REASONABLE BUSINESS JUDGMENT OF
THE CONGOLEUM ENTITIES AND REPRESENT AN EXCHANGE FOR REASONABLY EQUIVALENT
VALUE. THE RELEASES TO BE MADE BY THE CONGOLEUM ENTITIES PURSUANT TO SECTION VI
OF THE SETTLEMENT AND BUYBACK AGREEMENT ARE APPROPRIATE AND SHOULD BE APPROVED.
THE ST. XXXX TRAVELERS ENTITIES WOULD NOT HAVE ENTERED INTO THE SETTLEMENT AND
BUYBACK AGREEMENT OR ANY OF THE COMPROMISES AND SETTLEMENTS CONTAINED THEREIN,
OR AGREED TO PAY THE SETTLEMENT AND BUYBACK AMOUNT, WITHOUT THE BENEFIT OF
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
7
OBTAINING THE RELEASES CONTAINED IN THE SETTLEMENT AND BUYBACK AGREEMENT AND THE
INJUNCTIONS CONTAINED OR TO BE CONTAINED IN THE PLAN AND THE CONFIRMATION ORDER
AND IN THIS APPROVAL ORDER.
XXVIII._____THE SETTLEMENT AND BUYBACK AGREEMENT RESULTS IN SUBSTANTIAL
BENEFITS TO THE DEBTORS' ESTATE AND HOLDERS OF CLAIMS, INCLUDING ASBESTOS
CLAIMS, BY (I) SETTLING COMPLEX LITIGATION; AND (II) RECEIVING PAYMENT OF THE
SETTLEMENT AND BUYBACK AMOUNT FROM THE ST. XXXX TRAVELERS ENTITIES FOR THE
BENEFIT OF THE ESTATE AND HOLDERS OF ASBESTOS CLAIMS. THE SETTLEMENT AND BUYBACK
AGREEMENT IS FAIR AND EQUITABLE WITH RESPECT TO THE DEBTORS AND THE PLAN TRUST
AND THE PERSONS WHO HAVE ASSERTED, AND WHO MIGHT SUBSEQUENTLY ASSERT, CLAIMS,
INCLUDING ASBESTOS CLAIMS, AGAINST THE DEBTORS AND/OR THE PLAN TRUST.
XXIX. EACH OF THE FOLLOWING FACTORS HAS BEEN TAKEN INTO ACCOUNT BY THE
PARTIES IN REACHING THE COMPROMISES EMBODIED IN THE SETTLEMENT AND BUYBACK
AGREEMENT, AND EACH FACTOR SUPPORTS APPROVAL OF THE SETTLEMENT AND BUYBACK
AGREEMENT AND THE ENTRY OF THIS APPROVAL ORDER PURSUANT TO BANKRUPTCY RULE 9019:
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
8
A. the probability of success in the litigation of the claims
between the Debtors and the St. Xxxx Travelers Entities, including the ranges of
recoverable damages;
B. the likelihood that even if the Debtors were successful in the
Coverage Action, the St. Xxxx Travelers Entities would exhaust their appellate
rights thereby delaying collection of any judgment;
C. the complexity of the litigation between the Debtors and the St.
Xxxx Travelers Entities, and the expense, inconvenience and delay necessarily
attending it;
D. the paramount interest of creditors and proper deference to their
reasonable views regarding the Settlement and Buyback Agreement; and
E. whether the conclusion of the litigation promotes the integrity
of the judicial system.
XXX. CONSIDERING ALL OF THE FACTORS SET FORTH IN IN RE XXXXXX, 91 F.3D
389, 393 (3D CIR. 1996), AS DISCUSSED IN THE MOTION, THE PROVISIONS AND
CONDITIONS OF THE SETTLEMENT AND BUYBACK AGREEMENT ARE IN THE BEST INTERESTS OF
THE DEBTORS, THEIR ESTATES, THEIR CREDITORS, HOLDERS OF DEMANDS, THE PLAN TRUST,
AND OTHER PARTIES IN INTEREST.
XXXI. THE TERMS OF THE COMPROMISE AND EXCHANGES OF CONSIDERATION SET FORTH
IN THE SETTLEMENT AND BUYBACK AGREEMENT: (I) ARE IN THE BEST INTERESTS OF THE
CONGOLEUM ENTITIES, INCLUDING THE DEBTORS, THEIR RESPECTIVE ESTATES AND ALL OF
THEIR RESPECTIVE CREDITORS AND OTHER PARTIES IN INTEREST; AND (II) ARE ENTERED
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
9
INTO IN GOOD FAITH. NEITHER THE DEBTORS NOR THE ST. XXXX TRAVELERS ENTITIES HAVE
ENGAGED IN ANY CONDUCT THAT WOULD CAUSE OR PERMIT THE SETTLEMENT AND BUYBACK
AGREEMENT TO BE AVOIDED UNDER SECTION 363(N) OF THE BANKRUPTCY CODE. THE ST.
XXXX TRAVELERS ENTITIES ARE NOT "INSIDERS" AS THAT TERM IS DEFINED IN SECTION
101(31) OF THE BANKRUPTCY CODE.
XXXII.______BY ENTERING INTO THE SETTLEMENT AND BUYBACK AGREEMENT, THE
CONGOLEUM ENTITIES AND THE ST. XXXX TRAVELERS ENTITIES HAVE COMPROMISED THEIR
POSITIONS AND HAVE NOT ADMITTED TO OR WAIVED ANY LEGAL, FACTUAL OR OTHER
POSITIONS WITH RESPECT TO THE COVERAGE ACTION, OR OTHER DISPUTES BETWEEN THE
CONGOLEUM ENTITIES AND THE ST. XXXX TRAVELERS ENTITIES, THE SUBJECT POLICIES,
THE INSURANCE RELATIONSHIP BETWEEN THE CONGOLEUM ENTITIES AND THE ST. XXXX
TRAVELERS ENTITIES, OR ANY OTHER MATTERS.
XXXIII._____THE ST. XXXX TRAVELERS ENTITIES ARE GOOD FAITH PURCHASERS
WITHIN THE MEANING OF SECTION 363(M) OF THE BANKRUPTCY CODE AND, AS SUCH, ARE
ENTITLED TO ALL OF THE PROTECTIONS AFFORDED THEREBY. THE ST. XXXX TRAVELERS
ENTITIES HAVE ACTED AND WILL BE ACTING IN GOOD FAITH WITHIN THE MEANING OF
SECTION 363(M) OF THE BANKRUPTCY CODE IN EFFECTING THE BUYBACK OF THE SUBJECT
POLICIES CONTEMPLATED BY THE SETTLEMENT AND BUYBACK AGREEMENT AT ALL TIMES AFTER
THE ENTRY OF THIS APPROVAL ORDER.
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
10
XXXIV.______THE TERMS AND CONDITIONS OF THE SETTLEMENT AND BUYBACK
AGREEMENT AND THE SETTLEMENT AND BUYBACK AMOUNT TO BE PAID TO THE PLAN TRUST, OR
AS OTHERWISE DIRECTED BY THE COURT CONSISTENT WITH THE TERMS OF THE SETTLEMENT
AND BUYBACK AGREEMENT, ON BEHALF OF THE ST. XXXX TRAVELERS ENTITIES (I) ARE FAIR
AND REASONABLE; (II) CONSTITUTE REASONABLY EQUIVALENT VALUE AND FAIR
CONSIDERATION FOR THE SUBJECT POLICIES; AND (III) ARE WELL WITHIN THE RANGE OF
REASONABLENESS REQUIRED FOR APPROVAL OF THE SETTLEMENT AND BUYBACK AGREEMENT
UNDER THE BANKRUPTCY CODE AND APPLICABLE LAW.
XXXV. THE SALE AND TRANSFER OF THE SUBJECT POLICIES WILL (I) BE A LEGAL,
VALID, AND EFFECTIVE TRANSFER OF ALL OF THE DEBTORS' RIGHTS AND INTERESTS IN AND
TO THE SUBJECT POLICIES TO THE ST. XXXX TRAVELERS ENTITIES AND (II) VEST THE ST.
XXXX TRAVELERS ENTITIES WITH GOOD TITLE TO, AND ALL OF THE DEBTORS' RIGHTS AND
INTERESTS IN AND TO, THE SUBJECT POLICIES FREE AND CLEAR OF ALL CLAIMS, LIENS,
ENCUMBRANCES AND INTERESTS OF ANY KIND OR NATURE WHATSOEVER BECAUSE THE
STANDARDS SET FORTH IN SECTIONS 363(F)(1), (F)(2) AND (F)(5) OF THE BANKRUPTCY
CODE HAVE BEEN SATISFIED. ANY AND ALL NON-DEBTOR HOLDERS OF CLAIMS, LIENS,
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
11
ENCUMBRANCES AND/OR INTERESTS OF ANY KIND OR NATURE WHATSOEVER IN THE SUBJECT
POLICIES WHO DID NOT OBJECT TO THE MOTION AND TO THE SALE AND TRANSFER OF THE
SUBJECT POLICIES, OR WHO WITHDREW THEIR OBJECTIONS, ARE DEEMED TO HAVE CONSENTED
PURSUANT TO SECTION 363(F)(2) OF THE BANKRUPTCY CODE. ANY HOLDER OF A SECURED
CLAIM OR ASBESTOS SECURED CLAIM WHO DID OBJECT TO THE MOTION FALLS WITHIN
SECTIONS 363(F)(1) OR 363(F)(5) OF THE BANKRUPTCY CODE AND IS ADEQUATELY
PROTECTED BY HAVING ITS INTERESTS, IF ANY, ATTACH TO THE SETTLEMENT AND BUYBACK
AMOUNT.
Q. Consummation of the sale of the Subject Policies will not subject the
St. Xxxx Travelers Entities to any debts, liabilities, obligations or Claims of
any kind or nature whatsoever, whether known or unknown, contingent or
otherwise, existing as of the date hereof or hereafter arising, of or against
the Debtors, the other Congoleum Entities, the ABI Entities or any other Person
by reason of such sale of the Subject Policies, including, without limitation,
based on any theory of successor or transferee liability.
R. The Settlement Agreement is an Asbestos Insurance Settlement Agreement.
NOW, THEREFORE, pursuant to Bankruptcy Code Sections 105(a), 363(b) and
(f), 1107 and 1108 and Bankruptcy Rules 2002, 6004, 9014 and 9019(a), IT IS
HEREBY ORDERED, ADJUDGED AND DECREED THAT:
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
12
(i) The Motion shall be and hereby is GRANTED in all respects subject to
the provisions of this Approval Order, and the Settlement and Buyback Agreement
is hereby approved in all respects. All objections that have not been withdrawn,
resolved, waived or settled are hereby overruled on the merits.
(ii) The terms and provisions of the Settlement and Buyback Agreement are
incorporated by reference into and are an integral part of this Approval Order.
Each term of the Settlement and Buyback Agreement is valid, binding and
enforceable as though fully set forth herein. The provisions of the Settlement
and Buyback Agreement and of this Approval Order, including the findings of fact
and conclusions of law set forth herein, are non-severable and mutually
dependent. The failure specifically to include or reference any particular term
or provision of the Settlement and Buyback Agreement in this Approval Order
shall not diminish or impair the effectiveness of such term and provision, it
being the intent of the Court that the Settlement and Buyback Agreement be
authorized and approved in its entirety.
(iii) To the extent of any conflict or inconsistency between the
provisions of this Approval Order and the terms and conditions of the Settlement
and Buyback Agreement, the Settlement and Buyback Agreement shall govern and
control. The Settlement and Buyback Agreement shall also govern and control in
the event of any conflict or inconsistency between the Settlement and Buyback
Agreement and the Plan or any other plan of reorganization or liquidation, or
order of any type, entered in (i) these Chapter 11 Cases, (ii) any subsequent
chapter 7 case into which the Chapter 11 Cases may be converted, or (iii) any
related proceeding subsequent to entry of this Approval Order. The terms and
provisions of the Settlement and Buyback Agreement, together with the terms and
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
13
provisions of this Approval Order, shall be binding in all respects upon all
Entities, including each of the Debtors, their respective Estates, any and all
Chapter 7 and Chapter 11 trustees thereof, the Plan Trust, the Plan Trustee, the
FCR and each of the Entities whose interests he represents, the Collateral
Trust, the Collateral Trustee, the Claimants' Representative and each Asbestos
Claimant, the Debtors' other creditors, shareholders of any of the Debtors, and
all interested parties, administrative agencies, governmental units, federal,
state and local officials maintaining any authority with respect to the
Settlement and Buyback Amount, and their respective successors and assigns.
(iv) The Debtors are hereby authorized, empowered and directed to take all
necessary and appropriate acts to carry out and implement the Settlement and
Buyback Agreement in accordance with its terms without further order of the
Court, including designating the St. Xxxx Travelers Entities as Settling
Asbestos Insurance Companies and Protected Parties in the Confirmation Order,
and after the Effective Date of the Plan occurs, treating the St. Xxxx Travelers
Entities as Settling Asbestos Insurance Companies and Protected Parties under
the Plan for all purposes in these Chapter 11 Cases. The designation of the St.
Xxxx Travelers Entities as Settling Asbestos Insurance Companies shall entitle
the St. Xxxx Travelers Entities to the rights and benefits afforded to Settling
Asbestos Insurance Companies under the Plan, including the rights and benefits
of the Asbestos Channeling Injunction and any other Section 105 and 524(g)
injunctions granted under the Plan and the Confirmation Order with respect to
all Claims, including all Plan Trust Asbestos Claims.
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
14
(v) The Settlement and Buyback Agreement and this Approval Order
constitute valid and binding obligations of the Debtors, their Estates and the
Plan Trust, which shall be enforceable in accordance with the terms thereof and
shall be binding on the Debtors and their Estates, and any and all successors to
and assigns of the Debtors, including the Plan Trust, any Plan Trustee appointed
in these Chapter 11 Cases or any other case or proceeding, and all present and
future holders of Claims, including without limitation, Plan Trust Asbestos
Claims and Demands, and all other parties in interest, as set forth in the
Settlement and Buyback Agreement. The Confirmation Order and the Plan Trust
Agreement shall include as an obligation of the Plan Trust, effective from the
creation of the Plan Trust, that such trust shall be subject to and bound by the
Settlement and Buyback Agreement and the Approval Order. Upon its creation, the
Plan Trust, without further order of any court or action by any Entity, shall be
deemed to be automatically a party to the Settlement and Buyback Agreement.
(vi) The releases contained in Section VI of the Settlement and Buyback
Agreement are hereby approved in all respects and shall be effective in
accordance with the terms of the Settlement and Buyback Agreement.
(vii) Pursuant to Sections 105(a) and 363(b) and (f) of the Bankruptcy
Code, upon the Trigger Date the Debtors will sell, transfer and convey all of
their rights and interests in the Subject Policies and the coverages for
Asbestos Claims and other Claims and Demands under the Subject Policies to the
St. Xxxx Travelers Entities, free and clear of all Claims, liens, encumbrances
and interests of any kind or nature whatsoever. Effective upon entry of this
Approval Order but subject to the satisfaction of the conditions precedent as
set forth in Section II of the Settlement and Buyback Agreement, in addition to
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
15
the injunctions granted under the Plan and the Confirmation Order that will
protect the St. Xxxx Travelers Entities as Settling Asbestos Insurance
Companies, all Persons and Entities shall be hereby forever enjoined, barred and
estopped from asserting any Claims, liens, encumbrances or interests of any kind
or nature with respect to the Subject Policies against the St. Xxxx Travelers
Entities and their respective property and assets, including the Subject
Policies, including, but not limited to, any interests such person or entity
had, has, or may have against or in the Debtors or their respective estates or
successors, but such additional injunction shall not affect or modify the rights
of Insured Persons under policies of insurance except to the extent released in
Section VI of the Settlement and Buyback Agreement. The term Insured Persons in
the preceding sentence shall mean those persons or entities specifically
identified as named insureds, insureds, additional insureds, additional named
insureds, persons insured, assureds or those persons or entities otherwise
insured by means of a specific policy provision or endorsement. The St. Xxxx
Travelers Entities are not, and shall not be deemed to be, successors to the
Debtors and/or their respective bankruptcy estates by reason of any theory of
law or equity as a result of consummation of the transactions provided in the
Settlement and Buyback Agreement or otherwise. The St. Xxxx Travelers Entities
are not assuming under the Settlement and Buyback Agreement any liabilities of
the Debtors and/or their respective bankruptcy estates or of any other Persons.
(viii) As the Parties have entered into the Settlement and Buyback
Agreement by way of compromise and settlement, no Party released under the
Settlement and Buyback Agreement shall be deemed to have, and no such releasee
has, admitted or waived any legal, factual or other positions and no Person
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
16
shall or may use the Settlement and Buyback Agreement or any portion thereof, or
any negotiations with respect thereto, as evidence of any kind or nature that
any such releasee has made any admission or concession of any kind or nature
with respect to the Subject Policies, any Person's rights or obligations
thereunder or the Plan.
(ix) The St. Xxxx Travelers Entities are not obligated to perform under
the Settlement and Buyback Agreement and/or the Settlement and Buyback Agreement
shall become null and void if, among other things, any of the following
provisions of a plan of reorganization proposed or filed by the Debtors are
modified in a manner that would be inconsistent with the rights and benefits
provided to the St. Xxxx Travelers Entities under the Settlement and Buyback
Agreement and/or with the duties and obligations of, and releases provided by,
the Congoleum Entities under the Settlement and Buyback Agreement and/or
otherwise would have a material adverse effect on the interests of the St. Xxxx
Travelers Entities under the Settlement and Buyback Agreement:
(I) Asbestos Channeling Injunction. The sole recourse of the holder of a Plan
Trust Asbestos Claim or Demand on account of such Claim or Demand or of a
Person that had or could have asserted an Asbestos Claim or Demand shall
be to the Plan Trust pursuant to the provisions of the Asbestos Channeling
Injunction, the Plan, the Plan Trust Agreement and the TDP, and such
holder shall have no right whatsoever at any time to assert its Plan Trust
Asbestos Claim or Demand against the Debtors, Reorganized Debtors, any
other Protected Party, or any property or interest in property of the
Debtors, the Reorganized Debtors, or any other Protected Party. Without
limiting the foregoing, from and after the Effective Date, the Asbestos
Channeling Injunction shall apply to all present and future holders of
Plan Trust Asbestos Claims and Demands, and all such holders shall be
permanently and forever stayed, restrained, and enjoined from taking any
of the following actions for the purpose of, directly or indirectly,
collecting, recovering, or receiving payment of, on, or with respect to
any Plan Trust Asbestos Claims and Demands, other than from the Plan Trust
in accordance with the Asbestos Channeling Injunction and pursuant to the
Plan, the Plan Trust Agreement and the TDP:
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
17
(a) commencing, conducting, or continuing in any manner, directly or
indirectly, any suit, action, or other proceeding (including a
judicial, arbitration, administrative, or other proceeding) in any
forum against or affecting any Protected Party or any property or
interests in property of any Protected Party;
(b) enforcing, levying, attaching (including any prejudgment
attachment), collecting, or otherwise recovering by any means or in
any manner, whether directly or indirectly, any judgment, award,
decree, or other order against any Protected Party or any property
or interests in property of any Protected Party;
(c) creating, perfecting, or otherwise enforcing in any manner,
directly or indirectly, any encumbrance against any Protected Party,
or any property or interests in property of any Protected Party;
(d) setting off, seeking reimbursement of, contribution from, or
subrogation against, or otherwise recouping in any manner, directly
or indirectly, any amount against any liability owed to any
Protected Party or any property or interests in property of any
Protected Party; and
(e) proceeding in any manner in any place with regard to any matter
that is subject to resolution pursuant to the Plan Trust, except in
conformity and compliance with the Plan, the Plan Trust Agreement
and the TDP.
Any right, claim or cause of action that an Asbestos Insurance
Company may have been entitled to assert against a Settling Asbestos
Insurance Company based on or relating to Asbestos Claims shall be
channeled to and become a right, claim or cause of action as an offset
claim against the Plan Trust and not against the Settling Asbestos
Insurance Company in question and all persons, including any Asbestos
Insurance Company, shall be enjoined from asserting any such right, claim
or cause of action against a Settling Asbestos Insurance Company.
Except as otherwise expressly provided in the Plan, nothing
contained in the Plan shall constitute or be deemed a waiver of any claim,
right or cause of action that the Debtors, the Reorganized Debtors, or the
Plan Trust may have against any Entity in connection with or arising out
of or related to an Asbestos Claim. Notwithstanding any other provision in
the Plan to the contrary, nothing in the Plan shall be understood to
channel, prevent, impair or limit in any way enforcement against the
Debtors, the Reorganized Debtors, or any other Protected Party of any
rights provided in connection with any Workers' Compensation Claim; or
Debtor: Congoleum Corp., et al.
Case No: 03-51524
Caption: Order Authorizing and Approving Settlement and Policy Buyback Agreement
and Release Among the Congoleum Entities, the Plan Trust, the ABI
Entities and the St. Xxxx Travelers Entities and Sale of Subject
Policies Pursuant to Sections 105, 363, 1107 and 1108 of the Bankruptcy
Code and Rules 2002, 6004, 9014 and 9019 of the Federal Rules of
Bankruptcy Procedure
18
(II) Anti-Suit Injunction. With respect to the St. Xxxx Travelers Entities,
this Section 11.11 shall operate as an injunction, pursuant to section
105(a) of the Bankruptcy Code, permanently and forever prohibiting and
enjoining the commencement, conduct or continuation of any action or cause
of action, whether known or unknown, the employment of process or any act
to collect, recover from or offset any non-asbestos claim, Claim or demand
against the St. Xxxx Travelers Entities arising out of, relating to, or in
connection with a Subject Policy (as that term is defined in the
Settlement and Buyback Agreement) or the insuring relationship of the
relevant St. Xxxx Travelers Entities with the relevant Congoleum Entities
(as that term is defined in the Settlement and Buyback Agreement), but
such injunction pursuant to section 105(a) of the Bankruptcy Code shall
not affect or modify the rights of Insured Persons under policies of
insurance except to the extent released in Section VI of the Settlement
and Buyback Agreement. The term Insured Persons in the preceding sentence
shall mean those persons or entities specifically identified as named
insureds, insureds, additional insureds, additional named insureds,
persons insured, assureds or those persons or entities otherwise insured
by means of a specific policy provision or endorsement.
SETTLEMENT AND BUYBACK AGREEMENT EXHIBIT B
LIST REFERENCED IN SECTION XI.D
Afianzadora Insurgentes, S.A. De C.V.
American Equity Insurance Company
American Equity Specialty Insurance Company
Aprilgrange Limited
Athena Assurance Company
Atlantic Insurance Company
Captiva, Ltd.
Commercial Guaranty Casualty Insurance Company
Commercial Guaranty Insurance Company
Commercial Guaranty Lloyds Insurance Company
Constitution State Services LLC
Coronation Insurance Company, Ltd.
Discover Property & Casualty Insurance Company
Discover Re Managers, Inc.
Discover Reinsurance Company
Discover Specialty Insurance Company
Discovery Managers, Ltd.
Farmington Casualty Company
Fidelity and Guaranty Insurance Company
Fidelity and Guaranty Insurance Underwriters, Inc.
First Floridian Auto and Home Insurance Company
First Trenton Indemnity Company
Gulf Group Lloyds
2
Gulf Insurance Holdings U.K. Ltd.
Gulf Underwriters Insurance Company
Gulf Underwriting Holdings Limited
Gulf Underwriting Limited
Jago Capital Limited
Jago Dedicated, Ltd.
Jupiter Holdings, Inc.
Lloyds Syndicate 205
Lloyds Syndicate 5000
Mendakota Insurance Company
Mendota Insurance Company
MMedica Insurance Company, Ltd.
Mountain Ridge Insurance Company
Northbrook Holdings, Inc.
Northfield Insurance Company
Northland Casualty Company
Northland Insurance Company
Seaboard Surety Company
Select Insurance Company
Societe Nationale d'Assurances du Rwanda
St. Xxxx (Bermuda), Ltd.
St. Xxxx Bermuda Holdings, Inc.
St. Xxxx Fire and Casualty Insurance Company
St. Xxxx Fire and Marine Insurance Company
St. Xxxx Guarantee Insurance Company
3
St. Xxxx Guardian Insurance Company
St. Xxxx Insurance Company (S.A.) Limited
St. Xxxx Medical Liability Insurance Company
St. Xxxx Mercury Insurance Company
St. Xxxx Multinational Holdings, Inc.
St. Xxxx Protective Insurance Company
St. Xxxx Re (Bermuda), Ltd.
St. Xxxx Re Management PTE, Ltd.
St. Xxxx Re, Inc.
St. Xxxx Reinsurance Company Limited
St. Xxxx Risk Management International, Ltd.
St. Xxxx Specialty Underwriting, Inc.
St. Xxxx Surplus Lines Insurance Company
St. Xxxx Travelers Casualty and Surety Company of Europe, Limited
St. Xxxx Travelers Insurance Company Limited
St. Xxxx Venture Capital VI, LLC
TCS European Investments Inc.
The Automobile Insurance Company of Hartford, Connecticut
The Charter Oak Fire Insurance Company
The Northland Company
The Phoenix Insurance Company
The Premier Insurance Company of Massachusetts
The St. Xxxx Travelers Companies, Inc.
The Standard Fire Insurance Company
The Travelers Home and Marine Insurance Company
4
The Travelers Indemnity Company
The Travelers Indemnity Company of America
The Travelers Indemnity Company of Connecticut
The Travelers Lloyds Insurance Company
The Travelers Marine Corporation
TINDY RE Investments, Inc.
TPC Investments Inc.
TPC UK Investments Inc. LLC
TravCo Insurance Company
Travelers (Bermuda) Limited
Travelers Auto Insurance Co. of New Jersey
Travelers Casualty and Surety Company
Travelers Casualty and Surety Company of America
Travelers Casualty Company of Connecticut
Travelers Casualty Insurance Company of America
Travelers Commercial Casualty Company
Travelers Commercial Insurance Company
Travelers Excess and Surplus Lines Company
Travelers Indemnity UK Investments, LLC
Travelers Indemnity UK LLC
Travelers Insurance Group Holdings Inc.
Travelers Lloyds of Texas Insurance Company
Travelers PC Funds Investments, Inc.
Travelers Personal Insurance Company
Travelers Personal Security Insurance Company
5
Travelers Property Casualty Company of America
Travelers Property Casualty Corp.
Travelers Property Casualty Insurance Company
Unionamerica Acquisition Company, Ltd.
Unionamerica Combined Investment Co., Ltd.
Unionamerica Holdings, Ltd.
Unionamerica Insurance Company, Ltd.
United States Fidelity and Guaranty Company
USF&G Insurance Company of Mississippi
SETTLEMENT AND BUYBACK AGREEMENT EXHIBIT C
POLICIES REFERENCED IN SECTION I.U
-------------------------------------------------------------------------------------------------------------------------------
Policy Begin Policy End
Carrier Name Policy Number Date Date
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75-100034 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75-100996 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75 101790 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75-102500 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75-102594 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75-103280 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
AIU Insurance Co. 75-103173 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
American Centennial Insurance Company XX-00-00-00 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
American Home Assurance Co. CE 3380176 10/12/1972 1/1/1976
-------------------------------------------------------------------------------------------------------------------------------
American Home Assurance Co. SCLE 80 65427 1/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
American Home Assurance Co. SCLE 80 65428 1/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
American ReInsurance Co. M0691611 2/16/1973 1/1/1976
-------------------------------------------------------------------------------------------------------------------------------
Colonia Insurance Co. 85-L-1116/01 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Continental Casualty RDU 9973758 1/1/1964 1/1/1967
-------------------------------------------------------------------------------------------------------------------------------
Continental Casualty RDU 9433828 1/1/1967 1/28/1970
-------------------------------------------------------------------------------------------------------------------------------
Continental Casualty RDX 0308091604 1/28/1970 2/16/1973
-------------------------------------------------------------------------------------------------------------------------------
Continental Casualty RDU 8065433 2/16/1973 1/1/1976
-------------------------------------------------------------------------------------------------------------------------------
Continental Casualty RDX 8937036 12/17/1973 1/1/1975
-------------------------------------------------------------------------------------------------------------------------------
Continental Insurance Co. EXC 102428 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Employers Commercial Union EY 9399 004 1/28/1970 2/16/1973
-------------------------------------------------------------------------------------------------------------------------------
Employers Ins. Of Wausau 0000-00-000000 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Employers Ins. Of Wausau 0000-00-000000 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Employers Ins. Of Wausau 0000-00-000000 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Employers Ins. Of Wausau 0000-00-000000 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Employers Ins. Of Wausau Unknown 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 70018 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 70606 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 70607 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 71201 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 71202 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 71653 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 71654 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 73047 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 73048 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 73326 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Casualty Co. MMO 73526 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Liability Ins. Co. of Wisconsin 0524 00 084282 1/1/1973 1/1/1974
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Liability Ins. Co. of Wisconsin 0525 00 084282 1/1/1974 1/1/1975
-------------------------------------------------------------------------------------------------------------------------------
Employers Mutual Liability Ins. Co. of Wisconsin 0526 00 084282 1/1/1975 3/1/1976
-------------------------------------------------------------------------------------------------------------------------------
2
-------------------------------------------------------------------------------------------------------------------------------
Policy Begin Policy End
Carrier Name Policy Number Date Date
-------------------------------------------------------------------------------------------------------------------------------
Excess Insurance Xx. Xx Xxxxxxx XX 00000 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Federal Ins. Co. 7932 98 47 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Federal Ins. Co. (00) 0000-00-00 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Fireman's Fund XLX 1202504 10/12/1972 12/17/1973
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 924233 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 925946 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 927497 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 929216 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 930852 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 933238 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
First State Insurance Company 934313 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 00451 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 00452 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 00856 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 00857 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 01497 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 01498 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 02027 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 02028 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 02545 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Gibraltar Cas. Co. GMX 02546 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 00-00000 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Granite State Ins. Co. SCLD 80 94047 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 0000-0000 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 0000-0000 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 0000-0000 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 0000-0000 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 0000-0000 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Xxx. Xx. 0000-0000 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx Xxx. Xx. XX 00000 10/12/1972 12/17/1973
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 10638 1/1/1975 1/1/1976
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 20042 1/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 20227 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 20482 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 20789 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 20943 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 21208 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 21396 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 21696 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Highlands Ins. Co. SR 22005 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Holland-America Insurance Company H83678 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Home Insurance Company HEC 9791374 1/28/1970 2/16/1973
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Of North America XBC 1838 10/13/1965 1/1/1967
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Xx Xxxxx Xxxxxxx XXX 00000 1/1/1967 1/28/1970
-------------------------------------------------------------------------------------------------------------------------------
3
-------------------------------------------------------------------------------------------------------------------------------
Policy Begin Policy End
Carrier Name Policy Number Date Date
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Of North America XBC 43099 1/28/1970 2/16/1973
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Of North America XCP 3904 2/16/1973 1/1/1976
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Of North America XCP 3956 12/17/1973 1/1/1976
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Of North America XBC 155083 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Insurance Co. Of North America XCP GO 7908702 5/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 200500 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 201439 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 201522 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 203766 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 207014 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 207970 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Integrity Insurance Company XL 210163 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
International Surplus Lines Insurance Company (ISLIC) XSI 10018 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
International Surplus Lines Insurance Company (ISLIC) XSI 10017 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. Unknown 1/1/1952 1/1/1953
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. Unknown 1/1/1953 1/1/1954
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. Unknown 1/1/1954 1/1/1955
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LB24-914417-55 1/1/1955 1/1/1956
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP-24-692115-56 1/1/1956 1/1/1957
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP-6032-900078-37 1/1/1957 1/1/1958
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP-6032-900078-38 1/1/1958 1/1/1959
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP-6032-900078-39 1/1/1959 1/1/1960
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP-632-004138-040-TD93 1/1/1960 1/1/1961
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP1-632-004138-041 TD 93 1/1/1961 1/1/1962
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP1-632-004138-042 TD93 1/1/1962 1/1/1963
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP1-632-004138-043 TD 93 1/1/1963 1/1/1964
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP1-632-004138-044 TD 93 1/1/1964 1/1/1965
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP1-632-004138-045 TD 93 1/1/1965 1/1/1966
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LP1-632-004136-046 TD 93 1/1/1966 1/1/1967
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-632-004138-047 1/1/1967 1/1/1968
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-632-004138-048 1/1/1968 1/1/1969
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-632-004138-049 1/1/1969 1/1/1970
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LGl-632-004138-040 1/1/1970 1/1/1971
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-632-004138-041 1/1/1971 1/1/1972
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-632-004138-042 1/1/1972 1/1/1973
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-641-004051-046 3/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-641-004051-047 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-641-004051-048 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LGl-641-004051-049 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-641-004051-040 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-612-004157-041 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-612-004157-042 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-612-004157-043 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
4
-------------------------------------------------------------------------------------------------------------------------------
Policy Begin Policy End
Carrier Name Policy Number Date Date
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-612-004157-044 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. LG1-612-004157-045 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. RG1-612-004157-046 1/1/1986 8/19/1986
-------------------------------------------------------------------------------------------------------------------------------
Liberty Mutual Ins. Co. RG1-612-004207-046 8/19/1986 8/19/1987
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K21782 11/12/1953 11/12/1954
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K21783 11/12/1953 11/12/1954
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K21784 11/12/1953 11/12/1954
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K28288 11/12/1954 1/1/1958
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K28289 11/12/1954 1/1/1958
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K28290 11/12/1954 1/1/1958
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds K28291 11/12/1954 1/1/1958
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds CK2458 1/1/1958 2/1/1961
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds CK2459 1/1/1958 2/1/1961
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/XXX 0036 1/12/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/WHL551 4/1/1976 4/1/1977
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/UJL 0056 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/UJL 0057 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/UJL 0389 4/1/1977 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds WJU551 4/1/1977 12/31/1977
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/WK0151 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/WK0161 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/WKT051 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 881/WLT121 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds FUL083067 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds XXX000000 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds FUL084656 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
London Companies And Lloyds 707/FULD8556 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 111017004473-5/ 10/12/1972 1/1/1976
111017004472-7
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 145821 1/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 152158 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 148361 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 160344 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 706593 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 723759 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 724778 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 748705 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 770107 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Midland Insurance Company XL 770108 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Mission Insurance Company M81757 1/1/1975 4/1/1976
-------------------------------------------------------------------------------------------------------------------------------
Mission Insurance Company M831963 4/1/1976 4/1/1977
-------------------------------------------------------------------------------------------------------------------------------
Mission Insurance Company M856066 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Navigators Insurance Co. 85-L-1116/01 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Old Republic Insurance Company OZX 11607 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
5
-------------------------------------------------------------------------------------------------------------------------------
Policy Begin Policy End
Carrier Name Policy Number Date Date
-------------------------------------------------------------------------------------------------------------------------------
Old Republic Insurance Company OZX 11787 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Protective National Insurance Company of Omaha XUB 000-00-00 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Company DXC 901037 1/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Company DXC DX0067 1/1/1977 1/1/1978
-------------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Company DXC DX 0588 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Company DXC DX 0659 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Company DXC DX 1356 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Company DXC DX 1357 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Puritan Insurance Co. XX 00 00 00 1/1/1978 1/1/1979
-------------------------------------------------------------------------------------------------------------------------------
Puritan Insurance Co. XX 00 00 00 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Puritan Insurance Co. XX 00 00 00 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Stonewall Insurance 36000045 1/1/1976 1/1/1977
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 9550 66 1/1/1979 1/1/1980
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 955-427 1/1/1980 1/1/1981
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU055787 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU955786 1/1/1981 1/1/1982
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 956122 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 956-123 1/1/1982 1/1/1983
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 956394 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 956395 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 956652 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 956653 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Transit Casualty Company SCU 957115 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Transport Indemnity Co. TEL 900359 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
Transport Indemnity Co. TEL 01129C 1/1/1985 7/15/1985
-------------------------------------------------------------------------------------------------------------------------------
Xxxx Xxxx Xxxx XXX 000000 1/1/1983 1/1/1984
-------------------------------------------------------------------------------------------------------------------------------
Twin City Fire TXS103545 1/1/1984 1/1/1985
-------------------------------------------------------------------------------------------------------------------------------
U.S. Fire Insurance Co. 349 001829 9 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
X.X. Xxxx Xxxxxxxxx Xx. X00000 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Unigard Mutual 1-0682 2/16/1973 5/19/1975
-------------------------------------------------------------------------------------------------------------------------------
United Reinsurance Corp. of NY 85-L-1116/01 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
Unknown (but not any St. Xxxx Travelers Entity) Unknown 2/1/1961 1/1/1962
-------------------------------------------------------------------------------------------------------------------------------
Unknown (but not any St. Xxxx Travelers Entity) Unknown 1/1/1962 1/1/1963
-------------------------------------------------------------------------------------------------------------------------------
Unknown (but not any St. Xxxx Travelers Entity) Unknown 1/1/1963 1/1/1964
-------------------------------------------------------------------------------------------------------------------------------
Western Employers Insurance Company EX10-0185-20348 1/1/1985 1/1/1986
-------------------------------------------------------------------------------------------------------------------------------
SETTLEMENT AND BUYBACK AGREEMENT EXHIBIT D
LISTED POLICIES REFERENCED IN SECTION VI.J
-------------------------------------------------------------------------------------------------------------------------
Alleged Policy Number Alleged Name of Insurer Alleged Policy Period
-------------------------------------------------------------------------------------------------------------------------
77XC9SCA The Aetna Casualty and Surety Company 01/01/1992 - 01/01/1993
-------------------------------------------------------------------------------------------------------------------------
077XC14SCA The Aetna Casualty and Surety Company 01/01/1993 - 01/01/1994
-------------------------------------------------------------------------------------------------------------------------
077XC31SCA The Aetna Casualty and Surety Company 01/01/1994 - 01/01/1995
-------------------------------------------------------------------------------------------------------------------------
77XC44SCA The Aetna Casualty and Surety Company 01/01/1995 - 01/01/1996
-------------------------------------------------------------------------------------------------------------------------
77XC57SCA* The Aetna Casualty and Surety Company 01/01/1996 - 01/01/1997
-------------------------------------------------------------------------------------------------------------------------
160T4304* The Travelers Indemnity Company 09/01/1988 - 01 /01/1989
-------------------------------------------------------------------------------------------------------------------------
160T4304* The Travelers Indemnity Company 01/01/1989 - 01/01/1990
-------------------------------------------------------------------------------------------------------------------------
160T4304* The Travelers Indemnity Company 01/01/1990 - 01/01/1991
-------------------------------------------------------------------------------------------------------------------------
166D6103 The Travelers Indemnity Company 07/27/1998 - 07/27/1999
-------------------------------------------------------------------------------------------------------------------------
166D6103 The Travelers Indemnity Company 07/27/1999 - 07/27/2000
-------------------------------------------------------------------------------------------------------------------------
166D6115 The Travelers Indemnity Company 07/27/1998 - 10/31/2000
-------------------------------------------------------------------------------------------------------------------------
166D6103 The Travelers Indemnity Company 07/27/2000 - 07/27/2001
-------------------------------------------------------------------------------------------------------------------------
166D6115 The Travelers Indemnity Company 10/31/2000 - 07/27/2001
-------------------------------------------------------------------------------------------------------------------------
166D6103 The Travelers Indemnity Company 07/27/2001 - 09/15/2001
-------------------------------------------------------------------------------------------------------------------------
166D6115 The Travelers Indemnity Company 07/27/2001 - 09/15/2001
-------------------------------------------------------------------------------------------------------------------------
1111855* The Travelers Indemnity Company 01/01/1963 - 01/01/1966
-------------------------------------------------------------------------------------------------------------------------
1308910* The Travelers Indemnity Company 04/20/1967 - 10/27/1967
-------------------------------------------------------------------------------------------------------------------------
3284326* The Travelers Indemnity Company 01/01/1967 - 01/01/1968
-------------------------------------------------------------------------------------------------------------------------
1245401* The Travelers Indemnity Company 02/20/1967 - 02/02/1968
-------------------------------------------------------------------------------------------------------------------------
201T1987 The Travelers Indemnity Company 09/01/1988 - 01/01/1989
-------------------------------------------------------------------------------------------------------------------------
199T9924 The Travelers Indemnity Company 09/01/1988 - 09/01/1989
-------------------------------------------------------------------------------------------------------------------------
139J3448 The Travelers Indemnity Company 01/01/1989 - 01/01/1990
-------------------------------------------------------------------------------------------------------------------------
201T1987 The Travelers Indemnity Company 01/01/1989 - 01/01/1990
-------------------------------------------------------------------------------------------------------------------------
199T9924* The Travelers Indemnity Company 09/01/1989 - 09/01/1990
-------------------------------------------------------------------------------------------------------------------------
139J3448 The Travelers Indemnity Company 01/01/1990 - 01/01/1991
-------------------------------------------------------------------------------------------------------------------------
181K196A The Travelers Indemnity Company 02/01/1994 - 01/01/1995
-------------------------------------------------------------------------------------------------------------------------
696K8594 The Travelers Indemnity Company 01/01/1995 - 01/01/1996
-------------------------------------------------------------------------------------------------------------------------
745K4532 The Travelers Indemnity Company 03/09/1995 - 01/01/1996
-------------------------------------------------------------------------------------------------------------------------
853K1146 The Travelers Indemnity Company 01/16/1996 - 01/01/1997
-------------------------------------------------------------------------------------------------------------------------
2312027 The Travelers Indemnity Company 01/01/1966 - 01/01/1969
-------------------------------------------------------------------------------------------------------------------------
1587862 The Travelers Indemnity Company 01/01/1969 - 01/01/1972
-------------------------------------------------------------------------------------------------------------------------
7232892 The Travelers Indemnity Company 01/01/1972 - 01/01/1973
-------------------------------------------------------------------------------------------------------------------------
*= St. Xxxx Travelers Entities have not located copy of policy and reserve all
rights pertaining thereto, including those that concern the existence, terms,
conditions and/or completeness of such alleged policy.
SETTLEMENT AND BUYBACK AGREEMENT EXHIBIT E
POLICIES REFERENCED IN SECTION XI.B
--------------------------------------------------------------------------------------------------------------------------
Policy Number Name of Insurer Policy Period
--------------------------------------------------------------------------------------------------------------------------
GA5743953 Gulf Insurance Company 02/02/1995 - 02/02/1996
--------------------------------------------------------------------------------------------------------------------------
01XN904WCA The Aetna Casualty and Surety Company 01/01/1976 - 01/01/1977
--------------------------------------------------------------------------------------------------------------------------
01XN905WCA The Aetna Casualty and Surety Company 01/01/1976 - 01/01/1977
--------------------------------------------------------------------------------------------------------------------------
01XN1221WCA The Aetna Casualty and Surety Company 01/01/1977 - 01/01/1978
--------------------------------------------------------------------------------------------------------------------------
01XN1222WCA The Aetna Casualty and Surety Company 01/01/1977 - 01/01/1978
--------------------------------------------------------------------------------------------------------------------------
01XN1631WCA The Aetna Casualty and Surety Company 01/01/1978 - 01/01/1979
--------------------------------------------------------------------------------------------------------------------------
01XN1632WCA The Aetna Casualty and Surety Company 01/01/1978 - 01/01/1979
--------------------------------------------------------------------------------------------------------------------------
01XN2061WCA The Aetna Casualty and Surety Company 01/01/1979 - 01/01/1980
--------------------------------------------------------------------------------------------------------------------------
01XN2062WCA The Aetna Casualty and Surety Company 01/01/1979 - 01/01/1980
--------------------------------------------------------------------------------------------------------------------------
01XN2455WCA The Aetna Casualty and Surety Company 01/01/1980 - 01/01/1981
--------------------------------------------------------------------------------------------------------------------------
01XN2456WCA The Aetna Casualty and Surety Company 01/01/1980 - 01/01/1981
--------------------------------------------------------------------------------------------------------------------------
01XN2877WCA The Aetna Casualty and Surety Company 01/01/1981 - 01/01/1982
--------------------------------------------------------------------------------------------------------------------------
01XN2878WCA The Aetna Casualty and Surety Company 01/01/1981 - 01/01/1982
--------------------------------------------------------------------------------------------------------------------------
01XN2879WCA The Aetna Casualty and Surety Company 01/01/1981 - 01/01/1982
--------------------------------------------------------------------------------------------------------------------------
01XN3267WCA The Aetna Casualty and Surety Company 01/01/1982 - 01/01/1983
--------------------------------------------------------------------------------------------------------------------------
01XN3268WCA The Aetna Casualty and Surety Company 01/01/1982 - 01/01/1983
--------------------------------------------------------------------------------------------------------------------------
01XN3269WCA The Aetna Casualty and Surety Company 01/01/1982 - 01/01/1983
--------------------------------------------------------------------------------------------------------------------------
01XN326WCA The Aetna Casualty and Surety Company 10/12/1972 - 01/01/1976
--------------------------------------------------------------------------------------------------------------------------
3827* The Travelers Indemnity Company 11/07/1967 - 11/07/1968
--------------------------------------------------------------------------------------------------------------------------
06 XN 22205576^ Travelers Casualty and Surety Company 04/01/1992 - 04/01/1993
--------------------------------------------------------------------------------------------------------------------------
2516266* The Travelers Indemnity Company 01/01/1966 - 01/01/1969
--------------------------------------------------------------------------------------------------------------------------
3735545* The Travelers Indemnity Company 01/01/1968 - 01/01/1969
--------------------------------------------------------------------------------------------------------------------------
1245401* The Travelers Indemnity Company 02/20/1968 - 02/20/1969
--------------------------------------------------------------------------------------------------------------------------
3836* The Travelers Indemnity Company 03/14/1968 - 03/14/1969
--------------------------------------------------------------------------------------------------------------------------
3921* The Travelers Indemnity Company 03/14/1968 - 03/14/1969
--------------------------------------------------------------------------------------------------------------------------
3922* The Travelers Indemnity Company 03/15/1968 - 03/15/1969
--------------------------------------------------------------------------------------------------------------------------
1237827* The Travelers Indemnity Company 06/01/1966 - 06/01/1969
--------------------------------------------------------------------------------------------------------------------------
1245401* The Travelers Indemnity Company 02/20/1969 - 02/20/1970
--------------------------------------------------------------------------------------------------------------------------
1658073* The Travelers Indemnity Company 02/20/1969 - 02/20/1970
--------------------------------------------------------------------------------------------------------------------------
1658073* The Travelers Indemnity Company 02/20/1970 - 02/20/1971
--------------------------------------------------------------------------------------------------------------------------
1658073* The Travelers Indemnity Company 02/20/1971 - 02/20/1972
--------------------------------------------------------------------------------------------------------------------------
1237827* The Travelers Indemnity Company 06/01/1969 - 06/01/1972
--------------------------------------------------------------------------------------------------------------------------
1300993* The Travelers Indemnity Company 07/28/1966 - 07/28/1969
--------------------------------------------------------------------------------------------------------------------------
XXX 0000X00Xx Travelers Property Casualty Company of America 01/01/2004 - 01/01/2005
--------------------------------------------------------------------------------------------------------------------------
590XA0834** St. Xxxx Fire and Marine Insurance Company 10/12/1972 - 01/12/1976
--------------------------------------------------------------------------------------------------------------------------
* = St. Xxxx Travelers Entities have not located copy of policy and reserve all
rights pertaining thereto, including those that concern the existence, terms,
conditions and/or completeness of such alleged policy.
** = St. Xxxx Travelers Entities have not located copy of policy in their own
records and have reserved all rights regarding policy, including rights
pertaining to its completeness and authenticity.
^ = These policies are considered Subject Policies only to the extent set forth
in Section I.U.
2
--------------------------------------------------------------------------------------------------------------------------
Policy Number Name of Insurer Policy Period
--------------------------------------------------------------------------------------------------------------------------
RP 06605372 St. Xxxx Fire and Marine Insurance Company 04/01/1993 - 04/01/1994
--------------------------------------------------------------------------------------------------------------------------
RP 06605372 St. Xxxx Fire and Marine Insurance Company 04/01/1994 - 04/01/1995
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RP 06605372 St. Xxxx Fire and Marine Insurance Company 04/01/1995 - 04/01/1996
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RP 06605372 St. Xxxx Fire and Marine Insurance Company 04/01/1996 - 04/01/1997
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RP 06605372 St. Xxxx Fire and Marine Insurance Company 04/01/1997 - 04/01/1998
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RP 06605372 St. Xxxx Fire and Marine Insurance Company 04/01/1998 - 04/01/1999
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QK 09000534^ St. Xxxx Fire and Marine Insurance Company 06/01/2003 - 06/01/2004
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QK 09000747^ St. Xxxx Fire and Marine Insurance Company 06/01/2004 - 06/01/2005
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0369JM0112^ St. Xxxx Fire and Marine Insurance Company 01/01/2005 - 01/01/2006
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OC 06900058^ St. Xxxx Fire and Marine Insurance Company 01/01/2006 - 01/01/2007
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* = St. Xxxx Travelers Entities have not located copy of policy and reserve all
rights pertaining thereto, including those that concern the existence, terms,
conditions and/or completeness of such alleged policy.
** = St. Xxxx Travelers Entities have not located copy of policy in their own
records and have reserved all rights regarding policy, including rights
pertaining to its completeness and authenticity.
^ = These policies are considered Subject Policies only to the extent set forth
in Section I.U.
SETTLEMENT AND BUYBACK AGREEMENT EXHIBIT F
DEFINITION OF "CONGOLEUM DERIVATIVE ACTION"
"(a) any claim, demand or lawsuit whenever and wherever arising or asserted
against any of ABI or the ABI Entities and (b) any debt, obligation or liability
(whether or not reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, bonded,
secured or unsecured), whenever or wherever arising or asserted, against any of
ABI or the ABI Entities; in either case (a) or (b) for, based on, derivative of,
arising out of, or caused or allegedly caused, in whole or in part, directly or
indirectly: (i) by exposure to asbestos or asbestos-containing products
manufactured, supplied, distributed, handled, fabricated, stored, sold,
installed, or removed by any Debtor; (ii) by services, actions, or operations
provided , completed or taken by any Debtor in connection with asbestos or
asbestos-containing products or (iii) by asbestos for which any Debtor or its
predecessors are otherwise liable under any applicable law, in either case (a)
or (b) including, but not limited to, any claim, demand or lawsuit for or based
on the corporate relationship between the Debtor and ABI, including, but not
limited to, allegations of piercing the corporate veil, shareholder liability,
interlocking directorships, or any similar allegations or otherwise."
