THAN - Motion by AIG Companies to Reopen Bankruptcy Case to Enforce Audit Rights

8/12/2019 THAN - Motion by AIG Companies to Reopen Bankruptcy Case to Enforce Audit Rights

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Return Date: Wednesday, March 19,2014 at 9:45 A.M. ,S TResponsive Papers Due: Wednesday, March 1 2 , 2013

IIARDINKUNDLAMCKI~,ON 'OLETTO,1'.A.Steven P. Murray, Esq.110 William S t r e e t , 5 ` x F l o o rNew o r l c , NY 10038Phone: (212) 71 -0111John S. a v a t e , Esq.I I e n r y T.M. eFevre-Snee, Esy.673 Morris AvenueS p r i n g f i e l d , New e r s e y 07081Phone: 973) 1 2-5222A t t o r n e y s f o i ~ P l a i n t i f f s , AIU Insurance Company, ~1me~ c a n Horne A s s u ~ a n ~ c e CompUny,1 ~ 3 i ~ ~ n i n g h c z Y n I i ~ e I n s u r c t n c e Comp any o f e n n s y l > > a n i c r , G r a n i t e S t a t e I n s z ~ r ~ a i ~ c e C o r ~ ~ p a ~ ~ ,Lexzng~on y z s u ~ c ~ n e e ~ ; o l n p a n y , and N a t i o n a l Uninn F i r e I n s u ~ c r n e e C o m ~ ~ c r r ~ y n f I i t ~ , s b u r g h , P c ~ .

UNITEDSTATES ANKRYIP'I'CY COURTFOR THESOUTT- I E I 2 N D I S T R IC T 'OFNEW 0121{

I n I Z e :T I AUR1CtJL1'URE tJTRIPION, . L . L . , (Chapter l lD e b t o r . Case No. 08-14692

Hon. Robert E. e r b e r , r e s i d i n g ;

NOTICEOFAIG MEMBI~.R COMPANIESMOTIOI~ T ( ) RLOPF.NCHAPTER 1 CASL PURSUANTTOSL C I I 0 1 1 ~ 35Q(b)

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l l I S T R IC T OFNL'W YORK O1 0- 1

. I . ~ ~ ,KASOWITIBENSON ORRID- ; S RIEDMAN _ , L PKenneth H. Frenchman, Fsq.1633 BroadwayNew York,NY 0019Cou~scl o i T A~rr i c u l t u ~ e a r t r i t i o n , LLC' y a c ~ P h i l i p s E l c ~ c t ~ o ~ ~ i c s N o r ~ l 1 ~ f l m e r i c ~ c zCorporation

08-14692-reg Doc 614 Filed 03/03/14 Entered 03/03/14 13:39:02 Main DocumentPg 1 of 88


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CC:ALLCOUNSELOFRECORD

PLEASE TAKE NOTICE THAT h e AIG Member Companies Motion t o Reopen

Chapter 1 1 Case Pursuant o S e c t i o n 350(b) of i t l e 1 1 of h e U n i t e d S t a t e s Code, e d e r a l Ruleof Bankruptcy Procedure 5010, and Local Bankruptcy Rule f o r t h e S o u t h e r n D i s t r i c t of NewY o r l < 5010- 1 w i l l be p r e s e n t e d t o Honorable Robert E. Gerber on Wednesday, March 1 9 2014 t9:45 A.M. ST.

Dated:New o r l c New ork1 V l a r c h 3, 0 14

R e s p e c t f u l l y s u b m i t t e dHARDINKUNDLAMCKEON OLL T`I O, .A./ s / Steven P. Murray, sq.Steven P. Murray, sq.1 l0 William S t r e e t 5 t ~ F l o o rNew ork,NY 0 0 3Phone: (212) 71 -0111John S . F a v a t e Esc.Henry T. M eFevre- S n e e . Esq.673 Morris AvenueS p r i n g f i e l d New e z s e y 07081Phone: 9 7 3 ) 12-5222A t t o r n e y s f o i P l a i n t i f f s AIUInsurance C o ~ n p e r n y ~ r r 7 e ~ i c o nHome A s s u ~ a n c e Co~pany,B i gmingham F i g e I n s u i a ~ ~ c eConz~any of e n r ~ s y l v a n i c r G r a n i t eS t c a f e I n s u r a n c e C n i n p a r ~ y L e x i i ~ g d o nI n s u r a n c e C o i ~ ~ p e r n y c r ~ ~ d N a t i o ~ ~ ~ a lU ~ r i o n I ~ i ~ e I n s u r a n c e Compa~~y ~ ~ fP i t t s b u r g h P a.

The AlG Member Companies r e AIU I n s u r a n c e Company, m e t i c a n Home ssurance Company, irminghamF i r e I n s u r a n c e C om pa n y of e n n s y l v a n i a G r a n i t e S t a t e I n s u r a n c e Compan y, e x i n g t o n [ n s u r a n c e Company, ndN a t i o n a l t J n i o n F i r e I n s u r a n c e C om pa n y of i t t s b u r g h Pa.



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Return Date: Wednesday,March l9,2014 at 9:45 A.M..ESTResponsive Papers Due: Wednesday,March 1 2 , 2013

HAI2DIN KUNDLAMCKEON OLETTO, .A.Steven P. Murra y, sq.110 William S t r e e t , 5 ~ ~ F l o o rNew o r l c ,NY 10038Phone: (212) 71-0 1 1John S. a v a t e , Esq.Henry T. M. eFevre-Snee,Esq.673 Morris AvenueS p r i n g f i e l d , New e r s e y 07081Phone: 973) 12-5222A t t o ~ n e y s f o g P l a i n t i f T s , AIU n s z ~ ~ a n t e Company, Amer i c a n H o ~ ~ e A . s s z n c r n c e C o ~ ~ ~ p a n y ,B i g m i n g h a ~ n F i ~ ~ e Insurance Co mpany of e n n s y l v a n i a , G~ a n i t e S t a t e I n s i+ r a n e e C o r n l ~ a n y ,L e x i n g / o n I n s ~ u ~ o n c e Company, and a t i o n a l Union i ~ e I n s u r a n c e Co mpany f ~ P i l l s b z t r g h , P e a ,

UNITEDSTATESBANKRUPTCYCOURTFORTHESOUTHERNDISTRICTOFNSWYORK

I n Re:THAGRICULTURE NUTRITION, . L , C . , Chapter 1 1D e b t o r . Case No.08-14692

Hon. Robert E. e ~ ~ b e r , r e s i d i n g

TIIE AICMEMBERCOMPANIES'MOTIONTOREOPEN CHAPTER 1 CASEPURSUANTTO ~C TION . 5 0 b )

OF I TLI; 11 OF IIE UNITED STATESCODS, EllERALRULrOF 3ANKRUPI'CYPROCEDURE O10,ANDLOCALBANKRUPTCYRULEFORTHESOUTHERN

DISTRICTOFNSWYORK 010- 1The AIG Member Companies, by and t h r o u g h t h e i r c o u z l s e l , Hardin Kandla McKeon

P o l e t t o , P . A . , hereby m o v e p u r s u a n t t o S e c t i o n 350(b) of i t l e 1 1 of h e u n i t e d S t a t e s Code,

The AIG Member ompanies a r e A I t J I n s u r a n c e Company, American I - I o m e Assurance Company, 3 i r m i n ~ ha mF i r e I n s u r a n c e Company f Pennsylvania, r a n i t e S t a t e I n s u r a n c e Company, Lexington I n s i n ~ a n c e Company, an dN a t i o n a l Union F i r c Insurance Company f i t t s b u r g h , Pa.



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F e d e r a l Rule of Bankruptcy Procedure 5010, and Local Bankruptcy Rule f o r t h e S o u t h e r nD i s h ~ i c t of New York 5010- 1 f o r an Order 1) e o p e n i n g t h e Chapter 1 1 Case t o a l l o w t h e SIGMember Companies t o c omme n c e an Adversary Proceeding t o e n f o r c e t h e i r r i g h t s u n d e r t h eS e t t l e m e z l t Agreement; and 2) r a n t i n g such o t h e r and f u r t h e r r e l i e f a s t h e Court deems u s t andp r o p e r .

I n s u p p o r t of t h i s motion, t h e AIG Member Companies r e l y upon t h e f a c t s a a ~ d l e g a la r g ume n t e t out n t h e i r accom panyi ng memorandum.

Dated: New o r l c New Yo rkMarch 3,2014

R e s p e c t f u l l y s u b m i t t e dHARDINKUNDLAMCI~ON OL~TTO .A ./ s / S t e v e n P . Mu r r y , , s c ~ ,Steven P. Murray, s q .110 William S t r e e t 5 ` x F l o o rNew ork,NY 10038Phone: 212) 71 - 0 1 1 1John S. a v a t e F s q .Henry T. M. eFevre-Snee, _ , s q .673 Morris A v e n u eS p r i n g f i e l d New e r s e y 07081Phone: 973) 1 2-5222A t t o ~ n e y s f o i P l a i n t i f f s ~ 1 I UI n s u ~ U ~ c e C o ~ ~ ~ p u n y A n z e r ~ i c a nHome A s s u ~ o n c e Compan y,B i r i n i n g h c ~ m T i r e l i ~ s u ~a c eC om p a n y of P e n n s y l v a n i a G~ a n d t eS t a t e I n s u ~ c r n c e C o n z p e r n y Lei n g t o nInsurance Com~a ~y, c r u d N a t i o n a lUnion F i ~ e I n s u ~ a n t e C om p a n y o f fP i t t s b i ~ ~ g h P c r .



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Return Date: Wednesday, March 19, 2014 a t 9:45 A.M. GSTResponsive Papers Due: Wednesday, March 1 2 , 2013

HARDINKUNDLAM(:Ki+;ON OL~TTO, .A.Steven P. Murray, sq .1 1 0 William S t r e e t , 5 t ~ FloorNew ork,NY 0038Phone: (212) 71 -0111John S. F a v a t e , Esq.Henry T.M. eFevre-Snee, Esq.673 Morris AvenueS p r i n g f i e l d ,New e r s e y 07081Phone: 973) 1 2-5222AttoNneys f o g P l a i n t i f f s , AIU InsuNance ConZpany, American Ilome Assurance C o n z ~ ~ a y ,I 3 i ~tningham F i r e I n s u ~ o n c e C o i n ~ ~ a n y of Pennsylvania, Granite S t a t e h ~ , s z r r a i ~ c e Com~u~zy,Lexington n s z i ~ a n t e Company, and National Union i r e I n s u i a n t e Con~~any g J ~ P i t t s b z ~ r g h , Pa.

UNITEDSTATES ANKRUP'T'CYCOURTFORTHE OUTI-TERN DISTRICTOFNSW ORK

In I Z e :T I AGRICULTURE NUTRITION, .L.C., Chapter 1 1Debtor. Lase No. 08-14692

Hon. Robert F. Gerber, r e s i d i n g

[PROPOSED] R I ) E 1 2 GRANTING O'T'ION OFAIGM~MI3ER OMPANII+;STO Z ~OI'EN CHAPTER 1 CASE

U p o n c o n s i d e r a t i o n of h e motion t h e Motion ) of AIU nsurance C o m p any, t i l e z ~ i c a nHone Assurance C o m p any, Birmingham F i r e I n s u r a n c e C o m p a n y of Pennsylvania, G r a n i t eS t a t e Insurance C o m p any, Lexington Insurance C o m p any, and N a t i o n a l Union F i r e I n s u r a n c eC o i ~ l p a n y of i t t s b u r g h , P a . , seeking e n t r y of an o r d e r p u r s u a n t t o S e c t i o n 350(b) of i t l e oft h e United S t a t e s C od e t l ~ e Bankruptcy C od e ) , F e d e r a l Rule of Bankruptcy Procedure 5010,and Local Bankruptcy Rule f o r t h e Southern D i s t r i c t of New Y o r i < 5 0 10- 1 , reopening T - 1



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A g r i c u l t u r e &Nutrition L . L . C . ' s Chapter 1 1 c a s e ( t h e Chapter 1 1 C ase ) ; and t h e Court h a v i n g ;

reviewed t h e Motion, accompanying p a p e r s , and any o p p o s i t i o n t h e r e t o , and t h e Court h a v i n g

d e t e r m i n e d t h a t cause e x i s t s t o reopen t h e Chapter 1 1 Case, t i s h e r e b y :

ORDERED h a t t h e Motion i s g r a n t e d ; and t i s f u r t h e rORD~R~D h a t , p u r s u a n t t o Bankruptcy C o d e S e c t i o n 3 5 0 ( b ) , t h e C h a p t e r 1 1C ase i s reopened; and t i s f u r t h e rORDERED h a t t h i s Court h a l l r e t a i n t h e j u r i s d i c t i o n t o h e a r and d e t e r m i n e l l m a t t e r s

a r i s i n g from t h e i n t e r p r e t a t i o n , i m p l e m e n t a t i o n and enforcement of h i s Order, n c l u d i n gany d i s p u t e s t h a t m a y a r i s e between o r among; h e p a r t i e s .

Dated: New oi l c New o r l > a n i a G~ c r n i t e S t a t e I n s z n a n t e C o r n ~ a i ~ yL e x i ~ z g/ o n I n s u i a n c e Comp any, and a t i o n a l Union ~ i r e Insurance Company f Y i ~ t s b u r g l z P e r .

UNITEDSTATESBANKRUPTCYCOURTFOR THESOUTHERN IST1tICT OFNSW ORK

I n Re:~ ~ I I AGRICULTUKE NUTRITION, . L . C . Chapter I 1D e b t o r . Case No. 08-14692

Hon. Robert E. G e r b e r P r e s i d i n g

AFFIDAVITOFSTEVEN .MURRAY, SQ. IN SiJPPORTOFAIG MrMI3I?RCOMPANI~S'~ MOTIONTO 2~OPEN CHAI TrIt l CASE

I Steven Y. Murray, s q . do hereby c e r t i f y t h e f o l l o w i n g under p e n a l t y of e r j u r y :1 . I am an a s s o c i a t e of t h e law f i r m of I a r d i n I C u n d l a McKeon a l e t t o P . f 1 .

c o u n s e l f o r t h e AIG M e m b e r Companies. I am a m e m b e r i n good s t a n d i n g of t h e b a r f o g t h eUnited S t a t e s D i s t r i c t Court o r t h e Southern D i s t r i c t ofNew o r l < .

The AIG v t e m b e r Companies a r e AlU n s u r a ~ ~ c e Company, i ~ ~ e r i c a n Home Assurance Company, BirminghamF i r e I n s u r a n c e Company f Pennsylvania, r a n i t e S t a t e I n s u r a n c e Co mp a ny, Lexington I n s u r a n c e Company, ndN a t i o n a l Union F i r e Insurance Company f i t t s b u r g h Pa .



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2. Attached h e r e t o as E x h i b i t 1 i s a t r u e copy of t h e AIG Member Companies'Complaint a r i s i n g from T H A g r i c u l t u r e an d N u t r i t i o n , LLC TITAN) and i t s p a r e n tc o r p o r a t i o n , P h i l ip s E l e c t r o n i c s North American C o r p o r a t i o n ' s PENAL ) b 1 e a c h vi t h eS e t t l e m e n t Agreement and Mutual Kelease e n t e r e d i n t o among t h e AIG Member Companies,THAN nd PENAL n A p r i l 15, 2009, an d approved by t h i s Court on May , 2009 SettlementAgreement ) , s e e k i n g , among o t h e r remedies, a d e c l a r a t o r y r e l i e f an d s p e c i f i c performance:

3 . Attached h e r e t o a s E x h i b i t A o t h e Complaint i s a t r u e copy of h i s C o u r t ' s May6,200) rder approving t h e S e t t l e m e n t Agreement, and t h e S e t t l e m e n t Agreement.

Dated: New York,New YorkMarch 3, 2 0 1 4

R e s p e c t f u l l y s u b m i t t e d ,HARDINKUNDLAMCKEON OLETTO, . A ./ s / Steven P. M u ~ 7 a X , Esq.Steven P. Mun-ay, Esq.110 William S t r e e t , 5 ` x F l o o rNew o r l c ,NY 10038Phone: (212) 71 -0111John S, Favate, , s q .Henry T. M. eFevre-Snee, Esc.67 3 Morris A v e n u eS p r i n g f i e l d , New e r s e y 07081Phone: 973)91 2- 5 2 2 2A t t o N n e y s f n s P l a i n t i f f s , AIZIInsurance Company, A m e r d c c a i ~Home Assurace C n i n p r a y ,B i g^ n ~ i n g h a i n F i i e I n s t ~ ~ c z n c eComp any o f f P e n r ~ s y h ~ a i c a , G~ c a i 1 eSta/ e l i ~ s u r a n c e C o z p c z n y , I . e x i ~ g t o r ~I n s u r ~ a i ~ c e C o i ~ ~ p a n y , a ~ ~ d N a l i o i ~ c r lUnion F i g e l i ~ s i r ~ a c e Comp any ofP i t t s b u ~ g h , Pa ,



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EXHI IT



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HARDINKUNDLAMCHI~,ON OL~T'TO, .A.Steven P. Murray, sq.110 William S t r e e t , 5 ` x F l o o rNew ork,NY 10038Phone: 212) 71 -0111John S. a v a t e , Esq.Henry T. M. ePevre-Snee, sq.673 Morris A v e n u eS p r i n g f i e l d ,New e r s e y 07081Phone: 973) 12-5222A t ~ o f H e y s . f o r P l a i n t i f f s , AIU I n s u r a n c e Company, American Home A s s u ~ U n c e C o ~ ~ ~ ~ u ~ ~ y ,B i g r n i n g h a m F i ~ e I n s u ~ a c e Comp a n y ~f e n n s y l v a n i a , C r c r n i t e S t a t e I ~ s u r ~ a ~ c e C o r ~ ~ p u r ~ y ,1 x i n g l o n Insurance Compan y, an d a t i o n a l Union i i e I n s u ~ a n c e Conzpuny of i l s b z r r g h , P c r .

UNITrD STATES BANHItUPTCYCOURTFORTHESOUTHERNDISTRICTOFNSW ORK

I n Re :T - I AGRICUI.,TURE NUTRITION, . L . C . ,D e b t o r .

~ 1 I U I n s l u ~ a n c e Company, American HomeAssurance Company, Bir m i ngha m F i r eI n s u r a n c e Co m p a n y of e n n s y l v a n i a , G r a n i t eS t a t e I n s u r a n c e Company, exington n s u r a n c eCompany, and N a t i o n a l U nion F i r e I n s u r a n c eCa m p a n y of i t t s b u r g h , P a . ,P l a i ~ l t i ~ i s ,

v .

T H A g r i c u l t u r e u t r i t i o n , L . L . C . ; andP h i l i p s E l e c t r o n i c s North AmericaC o r p o r a t i o n ,l l e f e n d a n t s .

Chapter 1 1Cass No. 8-14692I I o n . Robert E. e r b e r , P r e s i d i n g

Adversary Proceeding Nn .



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COMPLAINT

P l a i n t i f f s AIUI n s u r a n c e Company, Ame rican HomeAssurance Company, 3 i r m i n g l l a mF i r e I n s u r a n c e Company of P e n n s y l v a n i a , G r a n i t e S t a t e I n s u r a n c e Company,L e ~ i n ~ ; t o n

I n s u r a n c e Company,and N a t i o n a l Union F i r e I n s u r a n c e Company of P i t t s b u r g h , 1 a .( c o l l e c t i v e l y , P l a i n t i f f s)erebycompl aina s f o l l o w s :

NATUREOFTHLACTION

1 This s ana d v e r s a r y p r o c e e d i n g a r i s i n g from t h e b r e a c h b yDefendant sT t

A g r i c u l t u r e &Nutrition, L.L.C. T I -IAN)andP h i l i p s E l e c t z o n i c s NorthAmericaC o r p o r a t i o n

P~NAC) of t h e S e t t l e m e n t AgreementandMut ualR e l e a s e ( t h e S e t t l e m e n t Agreement)e n t e r e d i n t o between l a i n t i f f s andTHANnd PENAC

JURISDICTION ANI)VENiJE

2 . ThisCourth a s j u r i s d i c t i o n ov er t h i s m a t t e r p u r s u a n t t o 28 I J . S . C . ~1334(b)

becau se h i s a d v e r s a r y p r o c e e d i n g a n i s e s i n , a r i s e s u n d e r , i i s r e l a t e d t o t l ~ e C h a p t e r 1 1 c a s e , TH

Apiculture &Nutrition, . L . C . , i n t h e United S t a t e s Bank ruptcyCourt o r t h e S o u t h e r n D i s t r i c t

ofNewor k, s Cas eN o. 8-14692.3 . P h i s Court h a s j u r i s d i c t i o n ov er t h i s m a t t e r p u r s u a n t t o t h e Ma ~ 28, 20 09

C o n f i r z n a t i o i ~ Order andS e c t i o n 1 3 . 1 ofh e F i r s t AmendedPrepac kag ed P l a n , andn p r i l 5,?0 0 9

Orderapproving h e S e t t l e m e n t A g r e e m e t z t4 . Thisi s a c o r e p r o c e e d i n g p u r s u a n t t o 28 U.S.C.5 7 ( b ) ( 2 ) . P l a i n t i f f s c o n s e n t t o

t h e e n t r y of f i n a l o r d e r s o r ju dgmentb y t h e b a n k r u p t c y judge i f i t s d e t e r m i n e d t h a t t h e

b a n k r u p t c y judge, b s e n t c o i ~ s e u t o i ' t h e p a r t i e s , cannote n t e r f i n a l o r d e t ~ s o ~ j u d g m e i z t c o n s i s t e n t

w i t h A r t i c l e I I I of h e UnitedS t a t e s C o n s t i t u t i o n .



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5 . This Courthas p e r s o n a l j u r i s d i c t i o n o v e r Defendantsp u r s u a n t t o F e d e r a l Ruleof

BankruptcyProcedure70040.6. Ve n u e s p r o p e r i n t h i s D i s t r i c t p u r s u a n t t o 28 U.S.C. 1 4 0 9 a ) .

THE RTIES

7 . P l a i n t i f f s IU I n s u r a n c e C o mp a n y American HomeAssurance Compa~ly

Birminghamf i r e I n s u r a n c e C o mp a n y ofP e n n s y l v a n i a , G r a n i t e S t a t e I n s u r a n c e C o mp a n y

LexingtonI n s u r a n c e C o mp a n y andN a t i o n a l Union F i r e I n s u r a n c e C o mp a n y of i t t s b u r g h P a .

a r e i s s u e r s ofh e i n s u r a n c e p o l i c i e s t o PENC i s t e d i n E x h i b i t o t h i s Complaint.

8 . P l a i n t i f f A IU I n s u r a n c e C o mp a n y i s i n c o r p o r a t e d undert h e laws of t h e S t a t e of

New o r l c w i t h t s p r i n c i p a l p l a c e oFbusinessi n NeworkNewo r l c .

9 . P l a i n t i f f Ame rican HomeAssuranceC o mp a n y i s i n c o r p o r a t e d undert h e laws of

t h e S t a t e ofNew ork with t s p r i n c i p a l p l a c e of u s i n e s s i n Nework Nework.

1 0 . P l a i n t i f f Birmin ghamF i r e I n s u r a n c e C o mp a n y ofPennsylvania s i n c o r p o r a t e d

undert h e lawsoft h e S t a t e ofP e n n s y l v a n i a , w i t h t s p r i r i c i p o l da c e ofb u s i n e s s i n NewYork

Nework.1 1 . P l a i n t i f f G r a n i t e S t a t e I n s u r a n c e C o mp a n y s i n c o r p o r a t e d under t l ~ l ~ l w s of l ~

S t a t e of e n n s y l v a n i a , w i t h t s p r i n c i p a l p l a c e of u s i n e s s i n Newo r i c Newo r l c .

1 2 . P l a i n t i f f LexingtonI n s u r a n c e C o mp a n y s i n c o r p o r a t e d under t h e laws of t h e

S t a t e ofDelaware i t h t s p r i n c i p a l p l a c e of u s i n e s s i n Boston M a s s a c h u s e t t s .

1 3 . P l a i n t i f f N a t i o n a l Union F i r e I n s u r a n c e C o mp a n y of P i t t s b u r g h Pa s

i n c o r p o r a t e d undert h e lawsof h e S t a t e ofP e n n s y l v a n i a , w i t h t s p r i n c i p a l p l a c e of b u s i n e s s i n

New ork Nework.

3



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1 4 . Upon n f o r m a t i o n and b e l i e f , THAN s i n c o r p o r a t e d u i z d e r t h e laws of h e S t a t e ofM i s s o u r i , w i t h i t s p r i n c i p a l p l a c e of u s i n e s s i n New ork,New ork, s t h e e n t i t y t h a t e i n e ~ g e d

from t h e Chapter 1 1 c a s e , I n r e TH g r i c u l t u r e &Nutrition, L . L . C . , i n t h e U n i t e d S t a t e s

Bankruptcy Court o r t h e Southern i s t r i c t of New ork, s C as e No. 8- 14692, nd s a p a r t y t ot h e S e t t l e m e n t Agreement.

1 5 . Upon i n f o r m a t i o n aid b e l i e f , PENAL s t h e p a r e n t c o r p o r a t i o n of THAN si n c o r p o r a t e d under t h e laws of h e S t a t e a f ' M a s s a c h u s e t t s , w i t h i t s p r i n c i p a l p l a c e of u s i n e s s i n

Andover, a s s a c h u s e t t s , and i s a a r t y t o t h e S e t t l e m e n t Agreement.BACKGROUND

1 6 . P l a i n t i f f s , T'~~AN and PENAL ere a l l p a r t i e s t o an i n s u r a n c e c a v e r a ~ ; e d i s p u t e

c a p t i o n e d TH g r i c u l t u r e &Nutrition L.L.C. . ACE r o p e r t y and Cas. C o . , e t a l . No. 2 CH19037, i r c u i t Court of o o l c County, l l i n o i s , Chancery i v i s i o n ( t h e Coverage A c t i o n ) .

1 7 . On November 24, 2008, THAN ommenced r e o r g a n i z a t i o n p r o c e e d i n g s b e f o r et h e United S t a t e s Bankruptcy Court f o r t h e S o u t h e r n D i s t r i c t of New oe I < p u r s u a n t t o C 1 1 a p t E l

1 1 of h e Banla u p t c y Code, a p t i o n e d a s I ~ 1 r e T H A ~ i c u l t u r c ~ u t i i t ~ i o ~ 1 L.L,C No, 08-

14692.1 8 . On p r i l 1 5 , 2009, l a i n t i f f s , THAN nd PLNAC n t e r e d i n t o t h e S e t t l e m e n t

Agreement, whic h r e s o l v e d t h e Coverage A c t i o n , p r o v i d e d f o r P l a i n t i f f s t o m ak e c e r t a i np a y m e i z t s t o PENAL nd, among o t h e r r i g h t s , gave l a i n t i f f s v a l u a b l e a u d i t r i g h t s . S e e E x h i b i tA , 2 . 1 and 2 . 3 .

1 9 . T h e S e t t l e m e n t Agre em ent c a l l s f o r P l a i n t i f f s t o m a l e s u b s t a n t i a l s e t t l e m e n tpayments o PENAL epending upon c e r t a i n payment m i l e s t o n e s b e i n g r e a c h e d by h e A s b e s t o s

PI T r u s t ( d e f i n e d below) e s t a b l i s h e d t o p r o c e s s and pay a s b e s t o s c l a i m s c h a n n e l e d t o t h e



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Asbestos PI Trustpursuantt o t h e T I-IA NF i r s t AmendedPla no f e o r g a n i z a t i o n . She x h i b i t A ,

2 . 1 .20. S e c t i o n 2 . 3 o ft h e S e t t l e m e n t Agr e eme n t p r o v i d e s f o r broa da u d i t r i g h t s , which

we r e bargainedf o r b yP l a i n t i f f s a n d r e p r e s e n t v a l u a b l e a n d m a t e ~ i a l c o n s i d e r a t i o n i n r e t u r n f o r

P l a i n t i f f s e n t e r i n g i n t o t h e Se t t l e m e n t Agr eemen t . ' h e a u d i t r i g h t s p r o t e c t t h e i n t e r e s t s o f h e t h e

AIG MemberCo mp a n ie s,t h e Asbestos PT T r u s t , a n d t h e i n t e ~ r i t y oft h e THANba nkru ptcy

proceedingi t s e l f b yp r o v i d i n g a me a n s f o r P l a i n t i f f s t o o b t a i n i n f o r m a t i o n r e g a r d i n g claimsp a i d

b yt h e AsbestosPITr ustt o c l a i m a n t s s u f f i c i e n t t o d e t e c t b o t h m i s c a l c u l a t i o n o f p a yme n t a n d

f r a u d a g a i n s t t h e AsbestosPI r u s t .21. S e c t i o n 2 . 3 o fh e S e t t l e m e n t A gr e e me n t p r o v i d e s :

T h e AIG MemberCo mp a n ie s s h a l l ha ve t h e r i g h t t o a u d i t p a yme n ts andd i s t r i b u t i o n s made b yt h e T r u s t a t t h e i r ownxp en se,n o mo r e t h a n on ce p e r y e a r .Befor econ ductinga n ya u d i t AIG h a l l agreet o k e e p l l i n f o r m a t i o n c o n f i d e n t i a la n d s h a l l f u r t h e r agr een ott o u t i l i z e a n yinformationf o r a n y t h i n g o t h e r tha nt oa s s e s s whe the r t h e Tr ust i n f a c t ma d e p a ymen t st o t h e c l a i m a n t s a s s e t f o r t h i nt h e q u a r t e r l y r e p o r t s .

22, S e c t i o n 2 . 4 o f h e S e t t l e m e n t A gr e e me n t u r t h e r p r o v i d e s :

T h e AIGMemberCo mp a n ie ss h a l l not he e n t i t l e d t o c h a l l e n g e o r q u e s t i o n t h ep a ymen tsord i s t r i b u t i o n s o f h e T r u s t , nor s h a l l they b e e n t i t l e d t o c h a l l e n g e ort oq u e s t i o n t h e i r o b l i g a t i o n s t o make p a ymen tspursuantt o t h e terms a n d c o n d i t i o n so ft h i s S e t t l e m e n t a gr e e me n t,o r t o o f f s e t , t a k e c r e d i t a g a i n s t o r o t h e r w i s ewithho lda n y s u chp a ymen ts basedo n a n yclaimt h a t J e Trustor t s t r u s t e e s ) t h e T r u s t e e ( s ))i d n otp r o p e r l y i n c u r exp en sesord i d not p r o p e r l y l i q u i d a t e claimsaccordingt o t h e T r u s t ' s p r o c e d u r e s , oro t h e r w i s e , witht wo e x c e p t i o n s ;

a . I f t h e IGMemberCo mp a n ie sdetermine based o n t h e i r r eview a n d/ o ra u d i t t h a t p a yme n tsmadeb yt h e Trustt o a s b e s t o s c l a i a l ~ a n t s a l l e g i n gmalignanti n j u r i e s an d used a s t h e b a s i s I ~ o r c a l e u l a t i i ~ g t h e p e r c e n t a g es h a r e t o be p a i d byt h e AIGMemberCo mp a n ie s orr o l l o v e r a mou n ts, l la s p r ovid edi n S e c t i o n 2 . 1 , we r e m i s c a l c u l a t e d d u et o a n a c c o u n t i n g e r r o rt h e AIGMemberCo mp a n ie s mayb r i n g su chaccountinge r r o r t o t h ea t t e n t i o n o fh e T r u stees a nd r e q u e s t t h a t t h e Tr u stees r eviewt h e m a t t e ra n d,i f t h e T r u stees agreet h a t t h e r e ha sbeen a n a c c o u n t i n g e r r o r t h e



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AIG Member Companies w i l l be c r e d i t e d t h e amount of any overpaymentby t h e AIG Member Companies r e s u l t i n g from t h e accounting e r r o r andapply such c r e d i t toward t h e AIG Member Companies o b l i g a t i o n s t omake payments under t h i s S e t t l e m e n t Agreement w i t h o u t , however,reducing t h e AIG Member Companies o v e r a l l o b l i g a t i o n t o pay t h eSettlement Amount, as provided i n S e c t i o n 2 . 1 . PENAC agrees / ocooperate w i t h t h e AIG Me~ber Companies i n o b ~ a i ~ i n g any p e ~ ~ t i n e i ~ fi n f o r m o t i o n .

b . i f t h e AIG Member Companies have r e a s o n t o b e l i e v e t h a t any of t h eClaims submitted t o and p a i d by t h e Trust were r a u d u l e n t , e were basedon n t e n t i o n a l l y f a l s e i n f o r m a t i o n t h a t was m a t e r i a l t o t h e allowance of h eClaims, such t h a t t h e Trust was defrauded and has a r i g h t t o r e c o v e r backpayments made on such Claims, h e AIG Member Companies may r i n gsuch evidence of such f r a u d t o t h e a t t e n t i o n of h e T r u s t a e ( s ) and i n q u e s tt h a t t h e Trustees) eview t h e e v i d e n c e . F u r t h e r , n o t h i n g i n t h i s S e t t l e m e n tAgreement s h a l l p r e v e n t t h e AIG Member Companies from b r i n g i n g suchevidence t o t h e a t t e n t i o n of t h e Bankruptcy Court and/ o r t o t h e UnitedS t a t e s A t t o r n e y s O f f i c e f o r t h e Southern l l i s t r i c t of New York. I f t h eTrustees) agree t h a t t h e evidence s u p p o r t s t h e AIG Member Companiesclaim t h a t t h e Trust has been defrauded and/ o r w a r r a n t s f u r t h e ri n v e s t i g a t i o n i n t o p o s s i b l e f r a u d , concludes t h a t i t would be i n t l ~ e b e s ti n t e r e s t of h e Trust o u n d e r t a k e t h e e f f o r t s and i n c u r t h e expense r e q u i r e dt o pursue recovery and/ o r conduct such f u r t h e r i n v e s t i g a t i o n , andu l t i m a t e l y r e c o v e r s back a l l o r some. of t h e a n 7 o u n t s p a i d towardf r a u d u l e n t Claims a s t o which t h e AIG Member Companies madereimbursement t o P~NAC PENAL w i l l c r e d i t t h e A I C J MemberCompanies w i t h t h e a p p l i c a b l e p e r c e n t a g e (as p r o v i d e d i n S e c t i o n 2 . (h))of t h e recovered amount and apply such c r e d i t t o w a x d t h e P a r t i e so b l i g a t i o n s t o make payments under t h i s S e t t l e m e n t Agreement w i t h o u t ,however, reducing t h e AIG Member Companies o v e r a l l o b l i g a t i o n t o payup t o t h e S e t t l e m e n t , as provided i n S e c t i o n 2 . 1 . PLNAC agrees t ocooperate w i t h t h e AIG M e m be r Companies i n o b t a i n i n g any p e g l i n e n ti n f o r i n a t z o n .[Emphasis added.]

23. S e c t i o n 8 f ~ t h e S e t t l e m e n t Agreement p r o v i d e s ;T h e P a r t i e s s h a l l cooperate t o p r e s e r v e t h e v a l i d i t y , f i n a l i t y , and e n f o r c e a b i l i t y oft h i s S e t t l e m e n t Agreement. T h e P a r t i e s s h a l l use t h e i r b e s t e f f o r t s t o r e s o l v eand/ o r t o oppose any and a l l e f f o r t s o r o b j e c t i o n s t o c h a l l e n g e t h i s S e t t l e m e n tAgreement under any p r o v i s i o n of h e Bankruptcy Code.24. S e c t i o n 16 of h e S e t t l e m e n t Agreement r o v i d e s :



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ThisS e t t l e m e n t Agreementmayn o t beamended, l t e r e d o r m o d i f i e d e x c e p t byaw r i t t e n amendmentduly e x e c u t e d byt h e o r i g i n a l P a r t i e s or t h e i r s u c c e s s o r s o ra s s i g n s .

25 OnMay6,2009,t h e Court e n t e r e d an Order approving t h e S e t t l e m e n t

Agreement.P u r s u a n t t o t h e May 6,2009.O r d e r , t h i s Courtm a i n t a i n e d j u r i s d i c t i o n o v e r t h e

implementationo fh e S e t t l e m e n t Agreement.

26 OnMay28,2009t h e Courte n t e r e d F i n d i n g s o fF a c t , Conclusionso fLaw,and

confirmedTHANsF i r s t mendedPrepackaged Plan o f R e o r g a n i z a t i o n . P u r s u a n t t o t h e

C o n f i r m a t i o n Orderand S e c t i o n I 3 . 1 o ft h e F i r s t AmendedPrepackaged P l a n , t h i s Court

m a i n t a i n e d j u r i s d i c t i o n overc l a i m s andc a u s e s o fc t i o n r e l a t e d t o t h e S e t t l e m e n t Agreement.

27. TheAsbestosPI T r u s t i s aDelawareT r u s t f o r i x ~ e d p u r s u a n t t o S e c t i o n 524(8)of

t l ~ e I 3 a n l c r u p t c y Co de,a s p a r t o f h e BankruptcyPlanimplementedi n I n r e THg r i c u l t u r e

N u t r i t i o n , LLC28. Uponi n f o r m a t i o n andb e l i e f , e f f e c t i v e No vember30,2009,THAN I ;NAC and

t h e Asbestos PIT r u s t e n t e r e d i n t o a i r AsbestosRecordsC o o p e r a t i o n Agreementt h e AI ZC A ) ,

whichPENALandTHANe l y u p o nt o p u r p o r t e d l y m a t e r i a l l y d i m i n i s h andr e n d e r i n e f f e c t i v e

P l a i n t i f f s ' a u d i t r i g h t s andt o l i m i t PENALndTHANsb i l i t y t o c o o p e r a t e w i t h P l a i n t i f f s i n

e n f o r c i n g P l a i n t i f f s ' a u d i t r i g h t s p u r s u a n t t o t h e S e t t l e m e n t Agreement.

29 P l a i n t i f f s a r e n o t s i g n a t o r i e s t o t h e ARCAnd a r e n t boundby t

3 0 . TheARCAdoes n o t a l t e r , modify o r cha nget h e S e t t l e m e n t Agreement < > r

P l a i n t i f f s ' a u d i t r i g h t s undert h e S e t t l e m e n t Agreement.

3 1 . S i n c e t h e S e t t l e m e n t Agreementbec ame e f f e c t i v e , P l a i n t i f f s have met and

c o n t i n u e t o f u l f i l l a l l o fh e i r o b l i g a t i o n s undert h e S e t t l e m e n t A g r e e m e i z t , i n c l u d i n g mak ing l l

r e q u i r e d payments.7



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3 2 . S e c t i o n 2 . 4 ( b ) of h e S e t t l e m e n t Agreement c o n t e m p l a t e s t h a t t h e T r u s t c o u l d f a l lv i c t i m t o f r a u d , i n c l u d i n g t h e t y p e of a n i p u l a t i o n b r o u g h t t o l i g h t of h e s o r t b r o u g h t t o l i g h t i nt h e Garlock d e c i s i o n ( d e s c r i b e d b e l o w ) . P l a i n t i f f s have a r i g h t and d u t y t o conduct m e a n i n g f u la u d i t s of t h e payments and d i s t r i b u t i o n s ma d e by t h e Asbestos P1 I ~ r u s t on an a n n u a l b a s i s ,P l a i n t i f f s a r e u n a b l e t o b r i n g t o t h e a t t e n t i o n of t h e ~ l s b e s i o s P I T r u s t , t h i s C o u r t , and / o r t h eUnited S t a t e s A t t o r n e y e v i d e n c e of r a u d , a s s p e c i f i c a l l y p r o v i d e d f o r i n S e c t i o n 2 . 4 ( b ) of h eS e t t l e m e n t Agreement i f t h e y c o n t i n u e t o be d e n i e d t h e i r a u d i t r i g h t s o r have t h e i r a u d i t r i g h t sc u r t a i l e d and l i m i t e d a s PENAC nd THAN ave done t o d a t e .

33. P l a i n t i f f s s e n t n o t i f i c a t i o n t o THAN nd PENAC n f o r m i n g them of l a i n t i f f s 'i n t e n t t o e x e r c i s e t h e i r a u d i t r i g h t s under t h e S e t t l e m e n t Agreement.

3 4 . THAN and YENAC responded t o P l a i n t i f f s ' r e q u e s t , a s s e r t i n g ; t h a tn o t w i t h s t a n d i n g t h e p r o v i s i o n s of t h e S e t t l e m e n t Agreement, l a i n t i f f s ' a u d i t r i g h t s u n d e r t h eS e t t l e m e n t Agreement were l i m i t e d , and s u b o r d i n a t e t o and o t h e r w i s e c o n s t r a i n e d by t h e ARCn.

3 5 . These l i m i t a t i o n s would narrow t h e AIG M em b e r Companies u d i t r i g h t s t o s u c ha degree t h a t so a s t o r e n d e r t h e a u d i t r i g h i s m e a n i n g l e s s and r e n d e r i t i m p o s s i b l e t o d e f e c t t h em i s c a l c u l a t i o n a d d r e s s e d i n t h e S e c t i o n 2 . 4 ( a ) of t h e S e t t l e m e n t Agreement and t h e f r a u dcontemplated by S e c t i o n 2 . 4 (b) of t h e S e t t l e m e n t Agreement, i n a d d i t i o n t o whatever o t h e ri m p r o p r i e t i e s t o which t h e Asbestos P I T r u s t m a y have been o r c o n t i n u e s t o be s u b j e c t e d .

3 6 . YENAC nd THAN emanded t h a t P l a i n t i f f s a c c e p t and a g r e e t o be bound by t h eterms o ~ F t h e ARCA nd o t h e r l i m i t a t i o n s on any a u d i t a s c o n d i t i o n s t o P l a i n t i f f s ' e x e c c i s e of h e i ra u d i t r i g h t s under h e S e t t l e m e n t Agreement.

0



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3 7 . THANndPENACaver e f u s e d t o a l l o w P l a i n t i f f s t o e x e r c i s e t h e i r a u d i t r i g h t s

under t h e S e t t l e m e n t Agr e ementu n l e s s P l a i n t i f f s a g r e e t o a d d i t i o n a l c o n d i t i o n s and l i m i t a t i o n s

not e q u i r e d byt h e S e t t l e m e n t Agr ee mentand which wo uldr e n d e r any a u d i t m e a n i ~ 7 ~ l ~ s s .

38. y e f u s i n g t o a l l o w P l a i n t i f f s t o e x e r c i s e t h e i r v a l u a b l e a u d i t r i g h t s , whicha i e

s i g n i f i c a n t t o t h e i n t e g r i t y o f h e T r u s t s o p e r a t i o n , YENACnd TI-IANhave p r e c l u d e d P l a i n t i f f s

fr o meven havingt h e o p p o r t u n i t y t o uncover f r a u d andb r i n g i t t o t h e As be sto sPIT r u s t s , t h i s

C o u r t s o r t h e United S t a t e s A t t o r n e y s a t t e n t i o n , a s e x p r e s s l y p r o v i d e d f o r i n S e c t i o n 2 . 4 ( b ) o f

t h e S e t t l e m e n t Agreement. PENACand THANhave t h e r e b y b r e a c h e d t h e S e t t l e m e n t

Agreement.39. S e c t i o n 2 . 4 o f h e S e t t l e m e n t Agr ee ment a l s o g i v e s P l a i n t i f f s c e r t a i n r i g h t s i n t h e

event payments by t h e As be sto sPIT r u s t a r e fo undt o have been m i s c a l c u l a t e d duet o an

a c c o u n t i n g e r r o r and i f t h e P l a i n t i f f s haver e a s o n t o b e l i e v e t h a t any c l a i m s p a i d byt h e A s b e s t o s

Y I T r u s t wer e f r a u d u l e n t . PENACs o b l i g a t e d by t h e S e t t l e m e n t Agr eement t o c o o p e r a t e w i t h

P l a i n t i f f s i ~ ~ o b t a i n i n g anyp e r t i n e n t i n f o r m a t i o n n e c e s s a r y t o d e t e r m i n e whetherany c l a i i u s

s u b m i t t e d t o andp a i d byt h e Asbe sto sPI r u s t werem i s c a l c u l a t e d o r f r a u d u l e n t .

40. Th e c o n d i t i o n s t h a t PENAL ndTT- IANs e e k t o impo s e o n P l a i n t i f f s a u d i t r i g h t s

n o t onlyv i o l a t e t h e S e t t l e m e n t Agreement, be cause t h e y d e p r i v e P l a i n t i f f s o f h e v a l u a b l e a u d i t

e i g h t s whichfo r m~p a r t o f h e c o n s i d e r a t i o n b a r g a i n e d f o r i n t h e S e t t l e m e n t Agreement, r t a l s o

r e n d e r S e c t i o n 2 . 4 me aningless b e c a u s e w i t h o u t p r o t e c t i o n o f l a i n t i f f s a u d i t r i g h t s , Y l a i n t i f l ~ s

cannot d e t e r m i n e whethexanyo f h e c i r c u m s t a n c e s c o n t e m p l a t e d by S e c t i o n 2 . 4 e x i s t , andt h e r e

i s no o t h e r w a yt o r e v e a l f r a u d upo nt h e As bestos PIT r u s t .41. Th e r e c e n t d e c i s i o n i n I n r e GarlockS e a l i n g Technolo i e s , N n. 1 0- 3 1 E07, 20 1 4

B a i i k r . LEXIS 1 57 Bankr . WDN G, i a n u a r y ], 20 14),i l l u s t r a t e s t h e n e c e s s i t y o fand



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j u s t i f i c a t i o n f o r t h e broada u d i t p r o c e d u r e e n j o y e d by l a i n t i f f s under t h e S e t t l e i ~ l e n t Agreement,

whichp r o v i d e s P l a i n t i f f s a u d i t i n g r i g h t s s u f f i c i e n t t o uncoverf r a u d a g a i n s t t h e A s b e s t o s PI

T r u s t .

42. TheGarlockd e c i s i o n a s s e s s e d t h e e f f e c t s o nt h e v a l u a t i o n of s b e s t o s l i i l i t i e s

o f h e d e b t o r i n l i g h t o fproofd e m o n s t r a t i n g t h a t a s p e c t s o f h e a s b e s t o s t o r t andt r u s t system

havebe co m e i n f e c t e d byt h e m a n i p u l a t i o n of xposureevidence by l a n t i f f s and t h e i r l a w y e r s .

2 014 Bankr.LEXIS157 t *32.43. Garlockc i t e d s e v e r a l p a r t i c u l a r i n s t a n c e s of a c t i c s employedby so me a s b e s t o s

p l a i n t i f f s and t h e i r a t t o r n e y s t o i n f l a t e r e c o v e r i e s :

a . I n o ne c a s e , ap l a i n t i f f claimed t h a t 100 f i s wo rk waso n Garlockg a s k e t s ,

and d e n i e d t h a t he had been expose d t o U n i b e s t o s amphibole i n s u l a t i o n

manufactured byP i t t s b u r g h C o r n i n g . I d . a t * 3 7- 3 8 . Howev er,d i s c o v e r y b e f o r e

t h e bankruptcy c o u r t r e v e a l e d t h a t t h e p l a i n t i f f t t o r n e y s f i l e d s e v e r a l ~ r u s t

c l a i m s a g a i n s t amphibolei n s u l a t i o n i n a n u t a c t u r e r s , and s e v e n months p r i o r t o

t h e a s b e s t o s l i t i g a t i o n w i t h G a r l o c k , evenf i l e d ab a l l o t i n t h e P i t t s b u r g h Corning

bankruptcy c e r t i f y i n g under p e n a l t y o fp e r j u r y t h a t t h e p l a i n t i f f had been

expose d t o Unibestos i n s u l a t i o n . I d . a t *38.A l l t o l d , t h e a t t o r n e y s f a i l e d t o

d i s c l o s e exposuret o 2 2 t h e r a s b e s t o s p r o d u c t s . I b i d .b . I n a n o t h e r c a s e , ap l a i n t i f f s a t t o r n e y s f i l e d as t a t e m e n t i n t h e Owe n sCorning

bankruptcy c a s e t h a t t h e c l a i m a n t f r e q u e n t l y , r e g u l a r l y andp r o x i m a t e l y b r e a t h e d

a s b e s t o s d u s t e m i t t e d from Ow e n s C o r n i n g ; F i b e r g l a s s s Kaylo a s b e s t o s -

c o n t a i n i n g p i p e c o v e r i n g . I d . a t *39. J u s t s i x week s l a t e r , t h e sa me p l a i n t i f f , i t 1

l i t i g a t i o n w i t h ( J a r l o c k , i d e n t i f i e d nnexposuret o any o t h e r b a n k r u p t con p a n i c s '

1Q



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p r o d u c t s . I b i d . The l a i m a n t made r u s t c l a i m s f o r 20 i f f e r e n t a s b e s t o s p r o d u c t s ,none of which were d i s c l o s e d i n l i t i g a t i o n w i t h G a r l o c k , and 14 of which weres u p p o r t e d by sworn s t a t e m e n t s c o n t r a d i c t i n g t h e p l a i n t i f f ' s d e n i a l s i n t h e U a r l o c kc a s e . I b i d .

c . S i m i l a r l y , a n o t h e r p l a i n t i f f d e n i e d e x p o s u r e t o i n s u l a t i o n p r o d u c t s i n l i t i g a t i o nw i t h G a r l o c k , and went on t o f i l e 23 T r u s t c l a i m s , e i g h t of them w i t h i n t w e n t y -f o u r h o u r s of e t t l i n g w i t h G a r l o c k . I b i d .

d . L i k e w i s e , a n o t h e r p l a i n t i t f a g a i n s t U a r l o c k d e n i e d e v e s suing anyone i n s t a l l i n g

o r removing p i p e i n s u l a t i o n nn h i s s h i p , and y e t h i s a t t o r n e y s went on t o f i l e 1 1T r u s t c l a i m s , f which were b a s e d on d e c l a r a t i o n t h a t he p e r s o n a l l y removed

and r e p l a c e d a s b e s t o s i n s u l a t i o n p r o d u c t s , and i d e n t i f y i n g them by n a ~ 2 e . I d . a t

*39- 4 0 .e . I n a n o t h e r c a s e , a p l a i n t i f f l a w y e r s f i l e d a T r u s t c l a i m a g a i n s t F 3 a b c o l > a n i c r G r a n i t eS t a t e I n s u ~ a n t e Company LexingtonInsurance Company c i n d N a t ~ i o n c r lUnion F i g e Insurance Company ~P i t t s b u ~ g h Pa.

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UNITEDSTATF,SBANKRUPTCY COURTSOUTHERNISTRICTOFNEWYORK

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - xInr e : Ch ap t e r 1 1T HAGRICULTURE &NUTRITION,.L.C. , Case No.08-1692REG)

De btor .- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x

ORDERPURSUANTTOFED. . BANKR.. 9 01 9 ANDl 1 U.S.C. 05(a)APPROVINGTHESETTLEMENTAGREEMENTNDMUTUAL ELEASEBETWEEN THEDEBTOR,HILIPSELECTRONICS

NORTHAMERICACORPORATION ANDTHCAIG MEMBERCOMPANIES

Upon t h e motion d a t e d A p r i l l6, 2 0 0 9 t h e ~p ~~ov al Mot ion)o r Order, T iA g r i c u l t u r e &Nut r it ion ,L. L.C., a s debtor and debtor i n p o s s e s s i o n (the Debtor)e e k i n g ;

approval, pursuant t o Rul e 9 19 of h e F e d e r a l Rul esof Bankruptcy Pr ocedure t h e Ban]


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and no f u r t h e r o r o t h e r n o t i c e need be g i v e n ; and upon t h e r e c o r d h e r e i n ; and a f t e r dued e l i b e r a t i o n t h e r e o n ; and good c a u s e a p p e a r i n g t h e r e f o r , t i s

ORDERED h a t t h e A p p ~ o v a l Motion i s g r a n t e d ; and i t i s f u r t h e rORDERED h a t t h e S e t t l e m e n t Agreement, n t h e form annexed h e r e t o a s E x h i b i t

A s approved; and t i s f u r t h e rORDERED t h a t t h e AIG Mem b e r Companies, s u b j e c t t o t h e t e r m s of t h e

S e t t l e m e n t Agreement, a r e e n t i t l e d t o : a) a l l of t h e b e n e f i t s of b e i n g d e s i g n a t e d i n t h eC o n f i r m a t i o n Order a s s e t t l i n g a s b e s t o s i n s u r a n c e e n t i t i e s , and b) h e p r o t e c t i o n s p r o v i d e d bysuch d e s i g n a t i o n and t r e a t m e n t w i t h o u t f u r t h e r o r d e r of h i s C o u r t ; and t i s f u r t h e r

ORDERED h a t ( i ) n o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y i n t h i s O r d e r , t h eApproval Motion o r t h e S e t t l e m e n t Agreement, n o t h i n g i n t h i s O r d e r , t h e Approval Motion o rt h e S e t t l e m e n t Agreement ( i n c l u d i n g any p r o v i s i o n t h a t p u r p o r t s t o b e p r e e m p t o r y o rs u p e r v e n i n g ) , s h a l l i n any way o p e r a t e t o i m p a i r , o r have t h e e f f e c t of m p a i r i n g , n any r e s p e c t ,t h e L e g a l , e q u i t a b l e , o r c o n t r a c t u a l r i g h t s of h o s e i n s u r e r s who i e p a r t i e s t o t h e S t i p u l a t i o n a n dAgreed O r d e r , d a t e d a s of a n u a r y 28, 2009, which was approved by t h e Court on F e b r u a r y 1 0 ,2009 i n i t s Order P u r s u a n t To Fed. R. B a n l c r . P. 9019 Approving The S t i p u l a t i o n A n d AgreedOrder ( D l < t . No. 349 a t Ex. A t h e I n s u r a n c e N e u t ~ a l i t y S t i p u l a t i o n ) ; ( i i ) t h e r i g h t s of s u c hi n s u r e r s s h a l l be d e t e r m i n e d under any a p p l i c a b l e i n s u r a n c e p o l i c i e s , any a p p l i c a b l e i n s w ~ a n c cs e t t l e m e n t a g r e e m e n t s , and t h e I n s u r a n c e N e u t r a l i t y S t i p u l a t i o n ; i i i ) i n t h e e v e n t of any c o n f l i c t

between t h i s Order and t h e I n s u i a n c e N e u t r a l i t y S t i p u l a t i o n , t h e I n s u r a n c e N e u t r a l i t y S t i p u l a t i o ns h a l l govern t h e r i g h t s and o b l i g a t i o n s of THAN, e o r g a n i z e d THAN,PENAL, r t h e A s b e s t o sP I T r u s t as a p p l i c a b l e ) , and t h o s e i n s u r e r s who a r e p a r t i e s t o t h e ] n s u r a n c e N e u t r a l i t y

2



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S t i p u l a t i o n ; and i v ) any f i n d i n g of a c t and/ o r c o n c l u s i o n of law made by t h e Court l e c e i i ~ w i t hr e s p e c t t o whether t h e R e p u b l i c i n s u r a n c e p o l i c y o r c o v e r a g e o b l i g a t i o n h a s b e e n e x h a u s t e d o r

o t h e r w i s e t e r m i n a t e d p u r s u a n t t o t h e S e t t i e ~ n e n t A g r e e ~ r ~ e n t s h a l l n o t b e b i n d i n g . on any ofTHAN s o r PENAC s n s u r e r s w ho a r e p a r t i e s t o t h e I n s u r a n c e N e u t r a l i t y S t i p u l a t i o n f o r anyp u r p o s e s i n c l u d i n g , w i t h o u t l i m i t a t i o n , any pending o r f u t u r e c o v e r a g e l i t i g a t i o n ; and i t i s f u r t h e r

ORDERED h a t . t h e A a r t i e s a r e a u t h o r i z e d t o e x e c u t e and t o d e l i v e r any and a l lr e q u i r e d i n s t r u m e n t s , documents and p a p e ~ s and t o t a k e any and a l f a c t i o n s r e a s o n a b l y n e c e s s a r yo r a p p r o p r i a t e t o consummate and implement t h e S e t t l e m e n t Agreement and t o p e r f o r m any andi l l o b l i g a t i o n s c o n t e m p l a t e d t h e r e i n ; and i t i s f u r t h e r

ORDERCD t h a t t h i s Court s h a l l r e t a i n j u r i s d i c t i o n w i t h r e s p e c t t o t h ei m p l e m e n t a t i o n of h e S e t t l e m e n t Agreement and t h i s O r d e r ; and i t i s f u r t h e r

ORDERED h a t Counsel f o r t h e Debtor s h a l l i m m e d i a t e l y s e r v e a copy of h i sApproval Order on a l l p a r t i e s w ho have f i l e d a r e q u e s t f o r n o t i c e i n t h i s c a s e , a l l p a r t i e s t o t h eS e t t l e m e n t Agreement, o u n s e l f o r any o f f i c i a l c o m m i t t e e s , and t h e FCR nd a l e a c e r t i f i c a t e ofs e r v i c e w i t h t h e C l e r l < of h e Bankruptcy Court w i t h i n t e n (10) ays h e r e o f .

Dated: May , 2009New York,New York

Robert E . GerberUNITED STATESBANKRUPTCY JUDGE

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SETTLEMENTAGREEMENTANDMUTUALRELEASEThis e t t l e m e n t agreement and mutual e l e a s e h e r e i n a f t e r S e t t l e m e n t Agreement)

i s e n t e r e d i n t o between and a mo n g TH g r i c u l t u r e &Nutrition L.L.C. THAN, s f u r t h e rd e f i n e d below), h i l i p s E l e c t r o n i c s North America o r p o r a t i o n PENAL, s f u r t h e r d e f i n e dbelow), nd h e AIG M e m b e r ompanies a s f u r t h e r d e f i n e d below).A. RECITALS

WHEREAS, e r t a i n Asbestos- R e l a t e d Claims as e f i n e d below) ave beenbrought,and n t h e f u t u r e w i l l be r o u g h t , a g a i n s t THAN n d / o r PENAL eeking d a m a g e s and t h e rr e l i e f f o r b o d i l y i n j u r i e s a l l e g e d l y caused a s a e s u l t of xposure o a s b e s t o s ; and

WHEREAS, h e AIG M e m b e r Companies as e f i n e d below) s s u e d c e r t a i n l i a b i l i t yi n s u r a n c e p o l i c i e s t o PENAL nd e r t a i n of t s s u b s i d i a ~ i e s , i n c l u d i n g THAN; nd

WHEREAS, h e P a r t i e s (as e f i n e d below) i s p u t e t h e i r r e s p e c t i v e r i g h t s , o b l i g a t i o n sand r e s p o n s i b i l i t i e s under t h e AIG M e m b e r Companies' P o l i c i e s (as d e f i n e d below) f o rAsbestos-R e l a t e d Claims; n d

WHEREAS, h e P a r t i e s ' d i s p u t e i s t h e s u b j e c t of a pending l a w s u i t c a p t i o n e d TH. 4 g r i c u l t u ~ e &Nutrition, . L . C . v . ACE roperty a n d Cas. C o . , e t a l . , No. 2 CH 9037, i r c u i tCourt of Cook County, l l i n o i s , Chancery D i v i s i o n . t h e Coverage Action, s f u r t h e r d e f i n e dbelow); and

WHEREAS, n N o v e m b e r 24, 008,THAN i l e d a e t i t i o n s e e k i n g r e o r g a n i z a t i o np u r s u a n t t o Chapter of h e United S t a t e s Bankruptcy Cod e n t h e United S t a t e d BankruptcyCourt o r t h e Southeni i s t r i c t ofNew ork, ankruptcy e t i t i o n No. 8-14692 R.EG) t h e~ankr upcty Action, s u r t h e r d e f i n e d below} nd THAN o n t i n u e s t o o p e r a t e i t s b u s i n e s s a s ad e b t o r and debtor- i n -p o s s e s s i o n ; and

WHEREAS, t i s t h e i n t e n t of h e P a r t i e s t o e n t e r i n t o a e t t l e m e n t t h a t r e s o l v e s a l l oft h e i n s u r a n c e coverage m a t t e r s a t i s s u e i n t h e Coverage Action and Bankruptcy A c t i o n and t ohave h i s S e t t l e m e n t A g r e e m e n t p e r a t e a s and o n s t i t u t e a complete e l e a s e ofTHAN's ndPENAC's laims o r coverage o r Asbestos- R e l a t e d C laims and B a d a i t h Claims g a i n s t t h eA1G a r t i e s ; an d

NOWTHEREFORE, n c o n s i d e r a t i o n of h e f o r e ~ a i n g , and n c o ~ ~ s i d e r a t i o n of h emutual o n s i d e r a t i o n s , promises, e l e a s e s , and covenants as e t f o r t h below, t i s hereby g r e e da s f o l l o w s :1 . DEFINIT~UNS

As sed i n t h i s S e t t l e m e n t A g r e e m e n t and f o r purposes of h i s S e t t l e m e n t Agreemento n l y , t h e f o l l a w i n ~ ; terms have h e f o l l o w i n g meanings:



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1 , 1 . AIG Member Com a n i e s . AIG Member Companies means AIU I n s u r a n c eCompany, American Home A s s u r a n c e Company, Birmingham F i r e I n s u r a n c e Company ofP e n n s y l v a n i a , G r a n i t e S t a t e I n s u r a n c e Company, L e x i n g t o n I n s u r a n c e Company, and N a t i o n a lUnion F i r e I n s u r a n c e Company of i t t s b u r g h , P a .1 . 2 . AIG Member Companies' P o l i c i e s . AlG Meanber Companies' P o l i c i e smeans t h e i n s u r a n c e p o l i c i e s i s s u e d t o N o r t h American P h i l i p s C o r p o r a t i o n l i s t e d on S c h e d u l e A,1 . 3 . AIG a r t i e s . AIG P a r t i e s means (a) AIG Member Companies; b) AmericanI n t e i n a t i a n a l Group, n c . ; (c) e a c h of h e AIG Member Companies' d i r e c t and i n d i r e c t p a r e n t s ,s u b s i d i a r i e s ; f f i l i a t e s a s s o c i a t e d c o r p o r a t i o n s , d i v i s i o n s , h o l d i n g companies d i r e c t a n d i n d i r e c t ,merged c o m p a n i e s , a c q u i r e d c o m p a n i e s , p r e d e c e s s o r s , s u c c e s s o r s a n d a s s i g n s , s o l e l y i n t h e i rc a p a c i t i e s a s s u c h , a s of h e E x e c u t i o n D a t e ; and (d) h e d i r e c t o r s , o f f i c e r s , s h a r e h o l d e r s , a g e n t s ,r e p r e s e n t a t i v e s , e m p l o y e e s , managing a g e n t s , p r i n c i p a l s , and a t t o r n e y s of a c h of h e f o r e g o i n g,s o l e l y i n t h e i r c a p a c i t i e s a s s u c h .I . 4 . AIG P a r t i e s ' P o l i c i e s . AIG P a r t i e s ' P o l i c i e s means any i n s u r a n c e p o l i c i e s

i s s u e d t o THAN n d / o r PENAC nown o r unknown, u n d e r which THAN n d / a r PENAC r ei n s u r e d s o r q u a l i f y a s i n s u r e d s , i n c l u d i n g , b u t n o t l i m i t e d t o t h e AIG Member Companies'P o l i c i e s l i s t e d on S c h e d u l e A.1 . 5 . A s b e s t o s-R e l a t e d Claim. A s b e s t o s - R e l a t e d Claim means any and a l l p a s t ,p r e s e n t and f u t u r e C l a i m s , demands, a c t i o n s ( d i r e c t o i i n d i r e c t ) , s u i t s , p r o c e e d i n g s , n o t i c e s ofp a r t i a l o r t o t a l r e s p o n s i b i l i t y a g a i n s t THAN and/ o r PENAC h e t h e r p r e s e n t l y l c n a w n a runknown, t h a t s e e k m o n e t a r y , e o m p e n s a t a r y , p u n i t i v e o r s t a t u t o r y damages, d e c l a r a t o r yjudgment, i n j u n c t i v e r e l i e f e q u i t a b l e r e l i e f m e d i c a l m o n i t o r i n g , o r any o t h e r form of r e l i e fw h a t s o e v e r , on a c c o u n t of l l e g e d b o d i l y i n j u r y , p e r s o n a l i n j u r y , f e a r of u t u r e i n j u r y , m e d i c a lm o n i t o r i n g , m e n t a l i n j u r y o r a n g u i s h , e m o t i o n a l d i s t r e s s , s h o c k , s i c k n e s s , d i s e a s e , l o s s ofc o n s o r t i u m , o r any o t h e r i l l n e s s o r c o n d i t i o n , d e a t h , p r o p e r t y damage, a s s of s e of r o p e r t y , o rd i m i n u t i o n i n t h e v a l u e of r o p e r t y , r i s i n g from a l l e g e d , p o t e n t i a l o r a c t u a l e x p o s u r e of any t y p eo r n a t u r e w h a t s o e v e r t o a s b e s t o s , an a s b e s t o s -c o n t a i n i n g p r o d u c t , and/ o r any o t h e r s u b s t a n c e ,p r o d u c t , m a t t e r o r m a t e r i a l i n any form o r s t a t e t h a t c o n t a i n s o r i s a l l e g e d t o c o n t a i n a s b e s t o s ,e i t h e r a l o n e o r i n c o m b i n a t i o n w i t h any o t h e r s u b s t a n c e .1 . 6 . Asbestos-R e l a t e d Mati~nant Claims. A s b e s t o s -R e l a t e d I v ~ a l i g n a n t Claimsmeans any A s ~ i e s t a s -R e l a t e d Claims t h a t a E l e g e i n j u r i e s b a s e d upon a s b e s t o s-r e l a t e d m a l i g n a n td i s e a s e s , which i n c l u d e and a r e n o t l i m i t e d t o m e s o t h e l i o t n a , l u n g c a n c e r and o t h e r c a n c e r sc l l i m s .1 . 7 . B a d F a i t h Chaim. B a d F a i t h Clain means any and a l l p a s t , p r e s e n t and f u t u r eC l a i m s , demands, a c t i o n s , d i r e c t . a c t i o n s , s u i t s and p r o c e e d i n g s by FENAC THAN a n d / o ranyone c l a i m i n g r i g h t s d e r i v a t i v e of PENAC a n d / o r THAN h e t h e r p r e s e n t l y known o runknown, o r bad f a i t h , e x t r a -c o n t r a c t u a l damages, i o l a t i o n of an a l l e g e d d u t y of good f a i t h a n df a i r d e a l i n g , u n f a i r t r a d e p r a c t i c e s , u n f a i r s e t t l e m e n t p r a c t i c e s o r c o m p a r a b l e s t a t u t o r y C l a i mb a s e d i n any way an a c t s a r o m i s s i o n s o r a l l e g e d a c t s o r o m i s s i o n s of t h e AIG P a r t i e s w i t hr e b a r d t o A s b e s t o s- R e l a t e d C l a i m s , b a s e d upon c o n d u c t b e f o r e t l ~ e E x e c u t i o n D a t e .1 . 8 . Bankruptcy A c t i o n , Bankruptcy A c t i o n means t h e C h a p t e r 1 1 c a s e s t y l e d I nr e TH 4 g r i c t t l t u r e z r t r i t i o n L . L . C . commenced by THAN on November 24, 2008, i n t h eZ

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U n i t e d S t a t e s F 3 a n k n i p t c y C o u r t f o r t h e S o u t h e r n D i s t r i c t ofNewY o r k , C a s e No.Q8- 1 4 6 9 2(RE G),e e k i n g r e l i e f u n d e r t h e B a n k r u p t c y Cod ei n c l u d i n g S e c t i o n 5 2 4 g ) h e r e o f j .1 9 Bankruptcy Code. B a n k r u p t c y . Co de means T i t i e 1 1 of t h e U n i t e d S t a t e sCa d e , 1 U.S.C.01, t s e q .1 . 1 0 . B a n k r u p t c y Cou rt. BankruptcyCourt m e a n s t h e U n i t e d S t a t e s Bankruptcy

Cour t f o r t h e Southern D i s t r i c t o f NewYo rk,i n c l u d i n g a n y c o u r t t o wh ich t l ~ e BankruptcyActioni s r e f e r r e d p u r s u a n t t o 28 U.S.C. 1 57 andt h e UnitedS t a t e s D i s t r i c t Court f a r t h eSouthern D i s t r i c t o f NewYo r k w i t h r e s p e c t t o a nyproceeding o r p o r t i o n o f t h e Bankn~ptcyActiona s t o wh ic hi t has with drawnt h e r e f e r e n c e ors h a l l h ave s o l e a u t h o r i t y t o e n t e r a f i n a lo r d e r orju d g me n to r t o g r a n t a ny o t h e r r e l i e f .

l 1 r BusinessDa y . BusinessDay m e a n san y dayt h a t i s n o t a S a t u r d a y , Sun day o rf e d e r a l h o l i d a y i n t h e United S t a t e s o f America.

1 . 1 2 . Claim . Cla i m n e a n s any o f h e f o l l o w i n g : (a ) claim s t h a t term i s d e f i n e d i nS e c t i o n 101(5) o f t h e Bankruptcy Co d e ; (b) d e m a n d as t h a t term i s d e f r n e d i n S e c t i o n524(8)(5)o f h e Bankruptcy Ca de ; r (e) n y anda l l p a s t , p r e s e n t , f u t u r e o r p o t e n t i a l knowno ru n k n o w n c l a i m s , de ma n ds, o s s e s , s u i t s , p ay me nt o b l i g a t i o n s , a d j u s t m e n t s , e x e c u t i o n s , o f f s e t s ,a c t i o n s , c a u s e s o f c t i o n , c o s t s , d e f e n s e s , d e b t s , s u m s o f mo n e y , s s e r t i o n s o fr i g h t s , a c c o u n t s ,r e c k o n i n g s , b i l l s bo nds,covenants, c o n t r a c t s , c o n t r o v e r s i e s , agreements, p r o m i s e s , expenses i n c l u d i n g w i t h o u t l i m i t a t i o n c o u r t c o s t s anda t t o r n e y s ' f e e s ) , r e q u e s t s f o r r e l i e f of a nyk i n d ,s t a t u t o r y o r r e g u l a t o r y o b l i g a t i o n s , jud g me nt sa r any l i a b i l i t i e s o fa nyn a t u r e w h a C s o e v e r , k n o w nor u n k n o wn , n t i c i p a t e d o r u n a n t i c i p a t e d , f i x e d o r c o n t i n g e n t , mah~red o r un-matured, c c r u e d o run-a c c r u e d , whetheri n law, q u i t y , c i v i l o r c r i m i n a l , whethersoundingi n t o r t c o n t r a c t , e q u i t y ,n u i s a n c e , t r e s p a s s , n e g l i g e n c e or t r i c t l i a b i l i t y andwh ich havebe en o r maybe a s s e r t e d by o r onbehalf o f anyPerson, i n c l u d i n g w i t h o u t l i m i t a t i o n a nyc r o s s-c l a i m , c o u n t e r c l a i m , t h i r d - p a r t yclaim,r i g h t , r e q u e s t , s u i t , l a w s u i t , i n c l u d i n g show- c a u s e o r d e r s , a d m i n i s t r a t i v e o r d e r s o rd e m a n d s a r p r o c e e d i n g s o f a n y k i n d , n o t i c e ) , a r b i t r a t i o n , cause o f c t i o n or o r d e r , an d i n c l u d i n gan y cla ims or d e m a n d s f o r orr e l a t i n g t o ba df a i t h or e x t r a- c o n t r a c t u a l damag es,whetherformalori n f o r m a l .

1 . 1 3 . Claimant. Cla ima nt 'h a l l m e a n an yi n d i v i d u a l o r e n t i t y a s s e r t i n g a Claim.1 , 1 4 . Confirmation Qr d e r . ConfirmationOr der m e a n s ano r d e r o f h e United S t a t e s

D i s t r i c t Courtf o r t h e Southern D i s t r i c t o f NewYor k confirmingt h e P l a n p u r s u a n t t o S e c t i o n1 1 29 of h e Bankruptcy C o d e ora f f i r m i n g an o r d e r o f h e BankruptcyCourt ca n~r mi ng t h e P l a npursuantt o S e c t i o n 1 1 2 9o f l ~ e BankruptcyCo d e .Th e term ConfirmationOrder r e f e r s t o af i n a l o r d e r , mea ning t h a t t h e timet o a p p e a l , p e t i t i o n f o r c e r t i o r a r i , or m o v e f o r reargumento rr e h e a r i n g hase x p i r e d an dn o a p p e a l , p e t i t i o n f a r c e r t i o r a r i or o t h e r p r o c e e d i n g s f o r reargumentor r e h e a r i n g i s pending.

1 . 1 5 . Covera~~e Action. Covera g e Action m e a n s t h e l a w s u i t c a p t i o ~ l e d THA g r i c u l t u r e u t r i t i o ~ ~ L.L.C. v . ACE ropertya n d Ca s. C o . , e t a l . N o . 02 CH 19037, i r c u i tCourto f Co o k Count y, l l i n o i s Ch an cer y D i v i s i o n i n wh ich THAN e e k s an a d j u d i c a t i o n of t sr i g h t s , i f any, o coveragef o r t h e Asbe stos- R e l a t e d Claimsunder i n s u r a n c e p o l i c i e s i s s u e d by an u m be r o f t s i n s u r a n c e c a r r i e r s , i n c l u d i n g , b u t n o t l i m i t e d t o , t h e AIG MemberCo mpanies.

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1 . 1 6 . E x e c u t i o n D a t e . E x e c u t i o n Date means h e d a t e t h e l a s t s i g n a t u r e of l l P a r t i e si s a f f i x e d t o t h i s S e t t l e m e n t A g r e e m e n t .1 . 1 7 . FCR. FCR eans any e p r e s e n t a t i v e a p p o i n t e d by h e B a n k r u p t c y C o u r t i n t h e

B a n k r u p t c y A c t i o n p u r s u a n t t o S e c t i o n 5 2 4 ( g ) ( 4 ) ( B ) ( i ) o f t h e B a n k r u p t c y G o d e .1 , 1 8 . P a r t i e s . P a r t i e s means PENAC n d / o r THAN n d t h e AIG P a r t i e s . P a r t ymeans i t h e r PENAC, F - ~ A N o r t h e AIG a r t i e s .1 . 1 9 . PENAL. PENAL eans h i l i p s E l e c t r o n i c s N o r t h A m e r i c a C o r p o r a t i o n , l l of

i t s c o r p o r a t e p r e d e c e s s o r s , s u c c e s s o r s a n d a s s i g n s , a i l of t s f o r m e r o r c u r r e n t c o r p o r a t e p a r e n t s ,s u b s i d i a r i e s a n d a f f i l i a t e s a n d t h e r e s p e c t i v e o f f i c e r s , d i r e c t o r s , a g e n t s a n d e m p i o y ~ e s of a c h oft h e f o r e g o i n g .

1 . 2 0 . Person. Person m e a n s a n i n d i v i d u a l , c o r p o r a t i o n , p a r t n e r s h i p , p r o p r i e t o r s h i p ,a s s o c i a t i o n , t r u s t or a n y o t h e r e n t i t y or o r g a n i z a t i o n , a n y e d e r a l , s t a t e o r l o c a l government, n ygovernmental or q u a s i -governmental body ar p o l i t i c a l s u b d i v i s i o n , o r a n y agency, e p a r t m e n t ,board or n s t r u m e n t a l i t y t h e r e o f .

1 . 2 1 . Plan. Pl an m e a n s a n y Chapter 1 1 p l a n of e o r g a n i z a t i o n f i l e d b y'THAN n t h eBankruptcy Action (which m a y be m o d i f i e d from time t o time i n a c c o r d a n c e w i t h t h e termsthereof

1 . 2 2 . Released Claims. Released Claims m e a n s Asbestos- R e l a t e d Claims a n d B a dF a i t h Claims.

1 . 2 3 . S e c t i o n 524(~ZChannelin~ Iniunetion. Section 524(8) h a ~ u i e l i n g I n j u n c t i o nw e a n s a n i n j u n c t i o n e n t e r e d i n t h e Bankruptcy Action p u r s u a n t t o S e c t i o n 524(8) of t h eBankruptcy Code.

1 . 2 4 . Settlement Amount. S e t t l e m e n t A mou n t m e a n s h e s u m s o be p a i d p u r s u a n tt o S e c t i o n 2 of h i s S e t t l e m e n t Agreement, u b j e c t t o a maximum a g g r e g a t e amount of OneHrmdred Twent y- F i v e M i l l i o n U.S. o l l a r s $ 1 2 5 , 0 0 0 , 0 0 0 . 0 0 ) , s u b j e c t t o a l t o t h e r c o n d i t i o n s s e tf o r t h i n S e c t i o n 2 f h e S e t t l e m e n t Agreement and s u b j e c t t o t h e e r o s i o n of h e p r o d u c t l i a b i l i t ya g g r e g a t e l i m i t s of t h e AIG M e m b e r Companies' P o l i c i e s due t o p a y m e n t of a d d i t i o n a l ,u n r e l a t e d a n d non -r e l e a s e d c l a i m s t h a t now e x i s t o r a r e m a d e i n t h e f u t u r e by PENAL n d / o rT~-IAN.

1 . 2 5 . Settlement Agr e e m e n t , Settlement Agreement' m e a n s t h i s S e t t l e m e n tAgreement and Release and any x h i b i t s , c h e d u l e s a n d a t t a c h m e n t s t h e r e t o .1 . 2 6 . S e t t l i n g Asbestos Insurance n t i t y . S e t t l i n g Asbestos n s u r a n c e e n t i t y m e a n sa n y n t i t y t h a t i s s u e d i n s u r a n c e p o l i c i e s t o or o r t h e b e n e f i t of THAN h a t p r o v i d e coverage f o ra n Asbestos- R e l a t e d Claim o r which THAN l l e g e s p r o v i d e coverage f o r a n Asbestos- R e l a t e dClaim, which e n t e r s i n t o a s e t t l e m e n t agreement w i t h THAN a n d r e c e i v e s t h e b e n e f i t of a

S e c t i o n S24(g) hanneling I n j u n c t i o n .

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1 . 2 7 . TITAN. THAN eans TH g r i c u l t u r e & N u t r i t i o n , L . L . C . , l l of t s c o r p o r a t ep r e d e c e s s o r s , s u c c e s s o r s a n d a s s i g n s , a l i oC t s f o r m e r o r c u r r e n t c o r p o r a t e p a r e n t s , s u b s i d i a r i e sa n d a f f i l i a t e s a n d t h e r e s p e c t i v e o f f i c e r s , d i r e c t o r s , a g e n t s a n d e m p l o y e e s of e a c h o f t h ef o r e g o i n g .

1 . 2 8 . T r u s t . T r u s t means t h a t t r u s t e s t a b l i s h e d p u r s u a n t t o t h e P l a n a n d S e c t i o n5 2 4 ( g ) ( 2 ) ( B ){ i ) of h e B a n k r u p t c y Code.

1 . 2 9 . Trust A reem ent. Trust Agreem ent m e a n s t h e agreement governing t h ee s t a b l i s h m e n t , e x e c u t i o n a nd o p e r a t i o n of t h e T r u s t a nd t h e d u t i e s , o b l i g a t i o n s andr e s p o n s i b i l i t i e s of h e t r u s t e e i n c o n n e c t i o n w i t h t h e T r u s t and a r i s i n g out of h e BankruptcyA c t i o n .

1 . 3 0 . As sed i n t h i s S e t t l e m e n t Agreement, h e s i n g u l a r and masculine gender h a l lm e a n l s o t h e p l u r a l a nd feminine r n e u t r a l g e n d e r , a s m a y be p p r o p r i a t e .Z. PAYMENTOFTHESETTLEMENT OUNT

2 . 1 . I n f u l l a nd complete e t t l e m e n t of any a nd l l known or unknown, a s t , p r e s e n tor u t u r e Released C l aims under h e AIG a r t i e s ' P o l i c i e s a nd hereby b s o l v i n g , d i s c h a r g i n g andt e r m i n a t i n g a n y a nd a l l d u t i e s or r e s p o n s i b i l i t i e s of h e AEG a r t i e s t o THAN nd PENAL i t hr e g a r d t o t h e Released Claims, t h e AIG Member Companies s h a l l reimburse PENAL t h eS e t t l e m e n t Annount {as d e f i n e d h e r e i n } , T h e S e t t l e m e n t A m o u n t under t h i s S e t t l e m e n tAgreem ent s payable o PENAL s f o l l o w s :

a . Within s i x t y (60) days of e n t r y of t h e Confirmation C l y d a r , t h e AIGM e m b e r Companies s h a l l pay t o PENAL Four M i l l i o n D o l l a r s( $ 4 , 0 0 0 , 0 0 0 , 0 0 ) , which PENAL and THAN e p r e s e n t c o n s t i t u t e a good-f a i t h compromise of h e p a s t c a s t amounts i n c u r r e d by P~NAC n d / o rTHAN f a r Asbestos- R e l a t e d Claims. T h e AIG Meanber Compa ni es$4,000,400.Oa p a y m e n t h a l l be s u b j e c t t o t h e q u a r t e r l y caps s e t f o r t h a tS e c t i o n 2(d) below. Within s i x t y (60) ays of n t r y of h e Can~rmationOrder, t h e AIG M e m b e r Companies s h a l l be e n t i t l e d t o review a n d / o ra u d i t t h e f i l e s of FENAC's nd THAN's e f e n s e c o u n s e l i n t h e A s b e s t o s -R e l a t e d C l aims concerning h e p a s t c o s t amounts t i s s u e .

b . T h e AIG Member Companies h a l l pay t o PENAL n a g r e e d p e r c e n t a g eof each d o l l a r p a i d by t h e T r u s t t o a Claimant f o r Asbestos- R e l a t e dMalignant Claims, w i t h t h e A1G Mem b e r Compa ni es' p e r c e n t a g e s h a r eb i l l a b l e i n c r e m e n t a l l y , each time t h e T r u s t pays an a g g r e g a t e of $ 2Qm i l l i o n i n Asbestos- R e l a t e d Malignant Claims. T h e t o t a l S e t t l e m e n tA m o u n t s h a l l i n no event exceed an a g g r e g a t e of O n e Hundred andTwenty- F i v e M i l l i o n L 1 . S . D o l l a r s ( $ 1 2 5 , O Q O , Q 4 0 . 0 0 ) . T h e i n c r e m e n t a lpa ym ents h a l l be m a d e as o l l o w s :

i . I f t h e t o t a l p a i d by t h e T r u s t f o r Asbestos- R e l a t e d MalignantC l aims i s between $1 and $200 m i l l i o n , t h e AlG Me m b e rCo m pa n i e s h a l l pa y o PENALTwo nd Qne-Half e r c e n t ( 2 . 5 - 0 )p e r $2d m i l l i o n p a i d by t h e T r u s t f o r amounts t h a t exceed $1 b u t

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a r e l e s s t h a n X200 m i l l i o n ( i . e . , SOQ,000 p e r 20 m i l l i o nincrement) n t i l t h e AIG M e mb e r Companies have p a i d a t o t a l ofFive M i l l i o n D o l l a r s ( 5,000,000.00) p u r s u a n t t o t h i s c l a u s e

i i . I f t h e t o t a l p a i d by t h e T r u s t f o r Asbestos- R e l a t e d MalignantClaims i s between 200 m i l l i o n and 5 5 0 m i l l i o n , t h e AIGM e mb e r Companies s h a l l pay t o AENAC T en P e r c e n t ( 10) e r20 i l l i o n p a i d by h e T r u s t f o r amounts h a t exceed 200 i l l i o nb u t a r e l e s s t h a n 5 5 0 i l l i o n ( i . e . , 2,OOQ,000.00 p e r 20 m i l l i o nincrement) n t i l t h e AIG a r t i e s ha ve p a i d a t o t a l of h i r t y- F i v eM i l l i o n D o l l a r s ( 35,000,000.00) u r s u a n t t o t h i s c l a u s e 2 . 1 ( b ) ( i i ) ;and

i i i . I f t h e t o t a l p a i d by t h e T r u s t f o r A s h e s t a s - R e l a t e d MalignantC l a i m s i s b e t w e e n 550 m i l l i o n and 1 . 0 3 b i l l i o n , t h e A IGMember Companies h a l l pay o PENAC e v e n t e e n P e r c e n t (17 ~ 0 )p e r 20 m i l l i o n p a i d by t h e T n i s t f o r amounts h a t e x c e e d 5S0m i l l i o n b u t a r e l e s s t h a n 1.03 b i l l i o n i r e . , ~ ~ , 4 0 0 , 0 0 0 . 0 0 p e r 20m i l l i o n increment) n t i l t h e AIG M e mb e r Companies have p a i d at o t a l of Eighty- O n e M i l l i o n D o l l a r s ( 81,0OO,OQ0.00) u r s u a n t t ot h i s c l a u s e 2 . 1 b ) i i i ) .

c . T h e AIG M e mb e r Companies s h a l l be o b l i g a t e d t o mak e payments t oPENAL s s p e c i f i e d i n t h i s S e c t i o n 2 u b j e c t t o a m a x i m u m q u a r t e r l y capof One M i l l i o n Seve n Hundred F i f t y Thousand D o l l a r s ( 1 , 7 5 0 , 0 0 0 . 0 0 ) .In n o event s h a l l payments m a d e under t h i s S e c t i o n 2 exceed , 7 5 0 , 0 0 0 . 0 0 i n any i n g l e q u a r t e r of a l e n d a r y e a r .

c t . 1 f t h e amount t h e AEG Me mb e r Companies would be r e q u i r e d t o pay i nany s i n g l e q u a r t e r i s g r e a t e r t h a n t h e q u a r t e r l y cap of 1 , 7 5 0 , 0 0 0 . 0 0 , t h eamount h a t would be due and owing b u t f o r t h e cap i n t h a t q u a r t e r s h a l lbe o l l e d i n t o and p a y a b l e i n t h e n e x t q u a r t e r , u b j e c t o n l y t o t h a t q u a r t e r ' s1,750,040.00 cap.

~ ; . T h e AIG Me mb e r Companies' payment o b l i g a t i o n i s s u b j e c t t o amaximum annual cap of 7,00O,000. In no event s h a l l payments m a d eunder h i s S e c t i o n 2 xceed 7,aao,000 n any i n g l e a n n u a l y e a r .

f ; I f t h e amount h e AIG Member Companies would b e r e q u i r e d t o pay i nany i n g l e c a l e n d a r y e a r i s g r e a t e r t h a n t h e a n n u a l cap of 7 , 0 0 0 , 0 0 0 , t h eamount h a k would b e due a n d awing b u t f o r t h e c a p i n t h a t y e a r s h a l l b er o l l e d i n t o and p a y a b l e i n t h e n e x t y e a r , s u b j e c t o n l y t o t h a t y e a r ' sa p p l i c a b l e q u a r t e r l y a n d a n n u a l c a p s .

~ ; The AIG Member Companies h a l l have no payment b l i g a t i o n u n d e r t h i sS e t t l e m e n t Agreement n t i l a f t e r t h e i s s u a n c e of h e C o n f i r m a t i o n Orderand a l l payments m a d e t h e r e a f t e r s h a l l b e s u b j e c t t o t h e t e r m s of t h e

C ~

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A g r e e m e n t . Once a i d , l l payments r e f i n a l and n o t s u b j e c t t o any o t h e rS e c t i o n s of h i s S e t t l e m e n t Agreement.

h . The AIG M e mb e r Companies s h a l l have no o b l i g a t i o n t o r e i m b u r s ePENAC o r any payments t h e T r u s t makes o r p a y m e n t of any a s b e s t o sc l a i m a n t a l l e g i n g non - malignant n j u r i e s , nor any o b l i g a t i o n t o r e i m b u r s ePENAC o r any a d m i n i s t r a t i v e c a s t s a s s o c i a t e d w i t h t h e p r o c e s s i n g orh a n d l i n g of l a i m s .The AIG Me mbe r Companies h a l l make r e q u i r e d payments w i t h i n s i x t y(60) ays a f t e r r e c e i v i n g an i n v o i c e from PENAC e m o n s t r a t i n g t h a t t h eT r u s t h a s a c t u a l l y p a i d s u f f i c i e n t amounts t o t r i g g e r t h e AIG MemberCompanies ~ t o m ak e payment o PENAL nder h i s S e c t i o n 2 .

2 . 2 . The n v o i c e p r o v i d e d t o t h e AIG a r t i e s s h a l l s p e c i f y t h e l i q u i d a t i o n v a l u e s of h eClaims, ayments m a d e by h e T r u s t , t h e c a l c u l a t i o n of h e amount h e AIG M e mb e r Companieswould be r e q u i r e d t o pay b s e n t a cap, h e amount h e AIG M e mb e r Companies r e r e q u i r e d t opay a c c o u n t i n g f o r t h e cap, and d e s c r i b e t h e b a s i s f o r t h e c a l c u l a t i o n , showing any r o l l o v e rc a l c u l a t i o n s t h a t m a y be a p p r o p r i a t e under S e c t i o n 2 . 1 ( d ) . The AIG M e mb e r Companiesr e c o g n i z e t h a t Claims may e i q u i d a t e d d u r i n g t h e p e r i o d of h e i n v o i c e b u t not c c o u n t e d f a r i nt h e i n v o i c e and h a t such Claims m a y be u b m i t t e d i n subsequent n v o i c e s .

2 . 3 . The AIG M e mb e r Companies s h a l l have t h e r i g l ~ t t o a u d i t payments a t a dd i s t r i b u t i o n s m a d e by t h e T r u s t a t t h e i r awn expense, no more t h a n once p e r y e a r . ~ 3 e f o r econducting any u d i t , AIG h a l l a g r e e t o keep l l i n f o r m a t i o n c o n f i d e n t i a l and s h a l l f u r t h e r a g r e enot t o u t i l i z e any i n f o r m a t i o n f o r anything o t h e r t h a n t o a s s e s s whether t h e T n i s t i n f a c t m a d epayments o t h e c l a i m a n t s a s s e t f o r t h i n t h e q u a r t e r l y r e p o r t s .

2 . 4 . The AIG M e mb e r Companies s h a l l nat be e n t i t l e d t o c h a l l e n g e a r q u e s t i o n t h epayments or i s t r i b u t i o n s of h e T r u s t , nor h a l l t h e y be n t i t l e d t o c h a l l e n g e or o q u e s t i o n t h e i ro b l i g a t i o n s t o m a k e payments u r s u a n t t o t h e terms and o n d i t i o n s of h i s S e t t l e m e n t Agreement,o r t o o f f s e t , t a k e c r e d i t a g a i n s t or t h e r w i s e w i t h h o l d any such payments b a s e d on any l a i m t h a tt h e Tn~st or t s t r u s t e e{ s ) t h e T r u s t e e ( s )) i d n o t p r o p e r l y i n c u r expenses o r d i d n o t p r o p e r l yl i q u i d a t e Claims c c o r d i n g t o t h e T r u s t ' s p r o c e d u r e s , or t h e r w i s e , w i t h two x c e p t i o n s :

a . I f t h e AIG Member Connpanies d e t e r m i n e based on t h e i r r e v i e w a n d / o ra u d i t t h a t payments m a d e by t h e T n i s t t o a s b e s t o s c l a i m a n t s a l l e g i n gm a l i g n a n t i n j u r i e s and used a s t h e b a s i s f o r c a l c u l a t i n g t l ~ e p e r c e n t a g es h a r e t o be p a i d by t h e AIG M e mb e r Companies or r o l l o v e r amounts, l las r o v i d e d i n S e c t i o n 2 . 1 , were m i s c a l c u l a t e d due o an a c c o u n t i n g e r r o r ,t h e AIG Member Companies m a y b r i n g such accounting e r r o r t o t h ea t t e n t i o n of h e Trustees) nd r e q u e s t t h a t t h e Trustees) eview t h e m a t t e rand, f t h e Trustees) g r e e t h a t t h e r e has been an a c c o u n t i n g e r r o r , t h eAIG M e mb e r Companies w i l l be r e d i t e d t h e amount of n y overpaymentby t h e AIG Member Companies r e s u l t i n g from t h e a c c o u n t i n g e r r o r andapply such c r e d i t toward t h e AIG Member Companies o b l i g a t i o n s t om ak e payments under t h i s S e t t l e m e n t A g r e e m e n t w i t h o u t , however,r e d u c i n g t h e AIG Member Companies o v e r a l l o b l i g a t i o n t o pay t h eS e t t l e m e n t A moun t , a s p r o v i d e d i n S e c t i o n 2 . 1 , PENAL a g r e e s t o

7

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c o o p e r a t e w i t h t h e AIG Member Companies i n o b t a i n i n g any p e r t i n e n ti n f o r m a t i o n .

b . I f t h e AIG Member Companies h a v e r e a s o n t o b e l i e v e t h a t any of t h eClaims s u b m i t t e d t o a n d p a i d by t h e T r u s t were f r a u d u l e n t , e were b a s e don i n t e n t i o n a l l y f a l s e i n f o r m a t i o n t h a t was m a t e r i a l t o t h e a l l o w a n c e of h eC l a i m s , s u c h t h a t t h e T r u s t was d e f r a u d e d and h a s a r i g h t t o r e c o v e r b a c kpayments made on s u c h C l a i m s , t h e AIG Member Companies may b r i n gs u c h e v i d e n c e of u c h f r a u d t o t h e a t t e n t i o n of h e T r u s t e e s ) and r e q u e s tt h a t t h e T r u s t e e s } r e v i e w t h e e v i d e n c e . F u r t h e r , n a t h i n ~ i n t h i sS e t t l e m e n t Agreement s h a l l p r e v e n t t h e AIG Member Companies fromb r i n g i n g s u c h e v i d e n c e t o t h e a t t e n t i o n of h e B a n k n t p t c y C o u r t a n d / o r t ot h e U n i t e d S t a t e s A t t o r n e y s O f f i c e f o r t h e S o u t h e r n D i s t r i c t of New ork.I f t h e T r u s t e e s ) a g r e e t h a t t h e e v i d e n c e s u p p o r t s t h e AIG MemberCompanies c l a i m t h a t t h e T r u s t h a s b e e n d e f r a u d e d a n d / o r w a r r a n t sf i i r t h e r i n v e s t i g a t i o n i n t o p o s s i b l e f r a u d , c o n c l u d e s t h a t t would U e i n t h eb e s t i n t e r e s t of t h e T r u s t t o u n d e r t a k e t h e e f f o r t s a n d i n c u r t h e e x ~ 7 e n s er e q u i r e d t o p u r s u e r e c o v e r y and/ o r c o n d u c t s u c h f u r t h e r i n v e s t i g a t i o n , a n du l t i m a t e l y r e c o v e r s b a c k a l l o r some of t h e amounts p a i d t o w a r df r a u d u l e n t Clams a s t o which t h e AIG Member Companies mader e i m b u r s e m e n t t o PENAC PENAC w i l l c r e d i t t h e AIG Member ~ ~ w i t h t h e a p p l i c a b l e p e r c e n t a g e ( a s p r o v i d e d i n S e c t i o n 2 . 1 ( b ) )of t h e r e c o v e r e d amount and a p p l y s u c h c r e d i t t o w a r d t h e P a r t i e so b l i g a t i o n s t o make payments u n d e r t h i s S e t t l e m e n t Agreement w i t h o u t ,however, e d u c i n g t h e AIG Member Companies o v e r a l l o b l i g a t i o n t o payu p t o t h e S e t t l e m e n t , a s p r o v i d e d i n S e c t i o n 2 . 1 . PENAC a g r e e s t oc o o p e r a t e w i t h t h e AIG Member Companies i n o b t a i n i n g any p e r t i n e n ti n f o r m a t i o n .

2 . 5 . S u b j e c t t o t h e t e r m s and c o n d i t i o n s of h i s S e t t l e m e n t Agreement a n d t h e e n t r y oft h e C o n f i r m a t i o n O r d e r , t h e S e t t l e m e n t Amount s t h e t o t a l amount h e AIG Member Companiesa r e o b l i g a t e d t o pay t o P~NAC nd THAN r any s u c c e s s o r s of h e s e e n t i t i e s on a c c o u n t of n yand l l R e l e a s e d Claims under t h i s S e t t l e m e n t Agreement. I t i s f u r t h e r u n d e r s t o o d t h a t t h e T r u s tw i l l n o t be a s s i g n e d ( o r o t h e r w i s e be g i v e n a c c e s s t o ) t h e AIG Member Companies o l i c i e s andt h u s t h e AIG Member Companies w i l l n o t be r e q u i r e d t o pay t h e T r u s t a n y t h i n g i n c o n n e c t i o nw i t h t h e R e l e a s e d C l a i m s . A c c o r d i n g l y , u n d e r no c i r c u m s t a n c e w i l l THAN r P~NAC e e k t oo b l i g a t e any AIG P a r t y t o make any a d d i t i o n a E payment t o any P e r s o n o r s e e k r e i m b u r s e m e n tfrom an AIG a r t y i n c o n n e c t i o n w i t h any Claim s u b m i t t e d t o t h e T r u s t t h a t s a R e l e a s e d C l a i m ,i n c l u d i n g , b u t n o t l i m i t e d t o , amounts a l l e g e d l y o w e d t o THAN o r AENAC o r p r e -p e t i t i o namounts. The P a r t i e s a g r e e t h a t a l l monies p a i d by t h e AIG Member Companies p u r s u a n t t o t h i sS e t t l e m e n t Agreement s h a l l p r a ~ e r l y e r o d e t h e p r o d u c t s l i a b i l i t y a g g r e g a t e l i m i t s of t h e AIGMember Companies P o l i c i e s and t h e P a r t i e s s h a l l t r e a t t h e p r o d u c t I i a b i l i r y l i m i t s of t h e AIGMember Companies o l i c i e s a s i m p a i r e d by t h e amounts p a i d by t h e AIG Member Companiest o PENAC u r s u a n t t o S e c t i o n 2 . 1 , a s s u c h amounts a r e p a i d . Any amounts p a i d by t h e AIGMember Companies under t h e p r o d u c t l i a b i l i t y h a z a r d of h e AIG Member Companies o l i c i e sf o r a d d i t i o n a l , u n r e l a t e d and non-r e l e a s e d c l a i m s t h a t n o w e x i s t o r a r e made i n t h e f u t u r e s h a l le r o d e t h e p r o d u c t l i a b i l i t y a g g r e g a t e l i m i t s of a i d P o l i c i e s a s s u c h amounts a r e p a i d . Paymentsmade u n d e r t h i s Agreement s h a l l be a l l o c a t e d t o t h e AIG Member Companies o l i c i e s u t i l i z i n g

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any methodology t h a t t h e AIG Member Companies deem a p p r o p r i a t e s o l o n g a s I) s u c hmethodology s r e a s o n a b l e , 2) u c h m e t h o d o l o g y i s g e n e r a l l y a c c e p t e d i n t h e i n s u r a n c e i n d u s t r y ,and 3} such a l l o c a t i o n i s p e r f o r m e d r e a s o n a b l y contemporaneous w i t h t h e making of t h ep a y m e n t s .

2 . 6 . Time i s o f t h e e s s e n c e w i t h r e s p e c t t o t h e payment o f t h e S e t t l e m e n t Amount.Except a s p r o v i d e d o t h e r w i s e h e r e i n , t h e payments m ade by t h e AIG Member Companiesp u r s u a n t H e r e t o s h a l l b e m ade no l a t e r t h a n t h e d a t e s when d u e , w i t h o u t any s e t o f f ,c o u n t e r c l a i m , d i m i n u t i o n o r any o t h e r d e d u c t i o n ; p r o v i d e d howev

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