PRODUCER AGREEMENT
CONCERNING
CENTER FOR CLAIMS RESOLUTION
September 28, 1988
Exhibit No. 10(i)(b)
PRODUCER AGREEMENT CONCERNING CENTER FOR CLAIMS RESOLUTION
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This Agreement, dated September 23, 1988, to provide for the
administration, defense, payment and disposition of asbestos-related claims
(hereinbelow referred to as the "Agreement") is made between and among the
Participating Producers, as defined hereinbelow.
WITNESSETH:
WHEREAS, a substantial number of asbestos-related claims are pending, and
continue to be filed or asserted, against Participating Producers, requiring
appropriate defense and disposition;
WHEREAS, Participating Producers deem it beneficial to have an
organization that will administer and handle asbestos-related claims on behalf
of more than one Producer, that will provide claims-related analysis and
reporting and that will administer the insurance-coverage provisions of the
Agreement Concerning Asbestos-Related Claims dated June 19, 1985 (hereinafter
referred to as the "Wellington Agreement"); and
WHEREAS, although upon the dissolution of the Asbestos Claims Facility
certain aspects of the relationship between the Producer and Insurer signatories
to the Wellington Agreement will
continue to be governed thereunder, the relationship among Producer signatories
will not be so governed, and there no longer will be a waiver of certain cross
and counter claims among Producers; and
WHEREAS, Participating Producers believe it is important to establish an
organization that will, on behalf of all Participating Producers, resolve
meritorious asbestos-related claims in a fair and expeditious manner and, where
necessary, defend asbestos-related claims efficiently and economically; and
WHEREAS, Participating Producers desire to establish an organization that
will, at least for all Participating Producers, provide claims-related analysis
and reporting and administer the insurance-coverage provisions of the Wellington
Agreement; and
WHEREAS, Participating Producers desire to enter into a constructive
relationship with one another and to resolve any cross or counter claims that
they may have against each other;
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and intending to be legally bound hereby, the Participating Producers hereby
agree as follows:
I. DEFINITIONS
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As used in the Agreement and Attachment A hereto, the following terms
shall have the following meanings:
1. Allocated Expenses -- means all fees and expenses incurred for
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services performed outside the Center that can be directly attributed to the
defense and disposition of a particular asbestos-related claim.
2. Asbestos-Related Claims -- means any claims or lawsuits against any
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Participating Producers or the Center, or against any Supporting Insurer based
solely on the conduct of any Participating Producers, by whomever brought and in
whatever procedural posture such claims or lawsuits may arise, seeking monetary
relief (whether or not such relief is the only relief sought) for bodily injury,
sickness, disease or death, alleged to have been caused in whole or in party by
any asbestos or asbestos-containing product; provided, that asbestos-related
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claims shall not include claims for damage to or destruction of property or
statutory claims for compensation by an employee against an employer.
3. Center -- means the Center for Claims Resolution, established under
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the Agreement.
4. Insurer Agreement -- means the Insurer Agreement Concerning Center
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for Claims Resolution dated September 23, 1988.
5. Insurers -- means persons that are or were engaged in the business of
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providing liability insurance to Producers.
6. Liability Payments -- means the sums paid in settlement of, or in
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satisfaction of a judgment on, any asbestos-
related claims, exclusive of allocated and unallocated expenses for such claims.
7. Participating Producers -- means Producers that have become
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signatories to the Agreement.
8. Persons -- means natural persons and organizations of any kind.
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9. Producers -- means persons that are or were engaged in the mining,
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manufacturing, production, processing, fabrication, distribution, installation,
sale or use of asbestos or asbestos-containing products or that may have a
liability with respect to asbestos-related claims.
10. Supporting Insurers -- means Insurers that have become signatories to
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the Insurer Agreement.
11. Unallocated Expenses -- means the overhead, operating and
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administrative expenses (other than allocated expenses) of the Center incurred
in administering, defending and disposing of asbestos-related claims, providing
claims-related analysis and reporting and administering the insurance-coverage
provisions of the Wellington Agreement; provided, that unallocated expenses
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shall not include any expenses, debts or other obligations of the Asbestos
Claims Facility, whatever previously or hereinafter incurred by it.
II. ESTABLISHMENT OF CENTER
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1. Participating Producers shall establish a non-profit organization to
be known as the Center for Claims Resolution. The Center shall administer and
arrange for the evaluation, settlement, payment or defense of all asbestos-
related claims in accordance with the provisions of the Agreement and Attachment
A hereto, applicable law and professional standards; shall provide claims-
related analysis and reporting; and shall administer the insurance coverage
provisions of the Wellington Agreement.
2. The Center shall not be a continuation of or a successor to the
Asbestos Claims Facility. The Center shall be established, funded and operated
independently of the Asbestos Claims Facility, and shall not assume or otherwise
be responsible for any of the Asbestos Claims Facility's debts, liabilities or
obligations.
3. The Center shall be governed by a Board of Directors whose members
shall number at least five (5) and whose manner of election, powers and duties
shall be as set forth in the Center's by-laws. The Board of Directors shall
appoint as non-voting ex officio directors one representative selected by
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Supporting Insurers, who shall serve during the period that Supporting Insurers
are paying unallocated expenses of the Center, and one representative selected
by an affirmative majority of Participating Producers. The Board of Directors
shall have no
power to modify any provisions of the Agreement or Attachment A hereto.
4. The Center shall not sell, lease, exchange, mortgage, pledge, or
otherwise dispose of all or substantially all of its property or assets and
shall not dissolve or wind up its affairs except upon the affirmative vote of
two-thirds of its Participating Producer members with two-thirds interest.
III. MEMBERSHIP IN CENTER
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1. Each Participating Producer shall become a member of the Center upon
becoming a signatory to the Agreement, and shall have all of the rights and
duties of a member, as set forth in the Agreement, Attachment A hereto and the
Center's by-laws.
2. The membership of any Participating Producer in the Center may be
terminated only in the following manner:
a) the Participating Producer may terminate its membership
effective at any time after October 3, 1989, by: i) providing written notice to
the Center at least 60 days prior to the effective date of termination; and ii)
obtaining a determination from the Board of Directors of the Center, which may
not be unreasonably withheld, that such Participating Producer has paid or made
adequate provision for the payment of any amounts due from it under the
Agreement or Attachment A hereto; or
b) the membership of any Participating Producer shall terminate
upon the filing by such Participating Producer for bankruptcy protection or
other protection against creditors under any state or federal law; or
c) the Board of Directors of the Center may terminate or suspend
the membership of any Participating Producer that: i) is involuntarily placed
in bankruptcy under any state or federal law or that has been determined by a
court to be insolvent; or ii) the Board of Directors determines, by an
affirmative vote of three-fifths of the directors then in office, has materially
breached the Agreement or Attachment A hereto, including but not limited to a
failure to pay to the Center in a timely manner any amounts due to or incurred
by the Center on such Participating Producer's behalf; provided, that
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termination of membership by the Board of Directors for breach of the Agreement
or Attachment A hereto shall not be effective until 30 days after written notice
of the Board's determination is provided to the Participating Producer, to
afford such Producer an opportunity to cure the breach in question and avoid
membership termination.
3. Upon termination of membership and thereafter, a Participating
Producer shall have none of the rights or obligations of a member of the Center,
as set forth in the Agreement, Attachment A hereto and the Center's by-laws.
However, notwithstanding termination of membership, a Participating Producer
shall continue to have and to honor all of the obligations incurred by it
hereunder or on its behalf as a member prior to the effective date of its
membership termination, including any retroactive adjustments of its percentage
shares of liability payments and allocated expenses made pursuant to Attachment
A hereto.
IV. SUBMISSION AND WITHDRAWAL OF CLAIMS
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1. By becoming a signatory to the Agreement and a member of the Center,
each Participating Producer hereby designates the Center as its sole agent to
administer and arrange on its behalf for the evaluation, settlement, payment or
defense of all asbestos-related claims against such Participating Producer. As
sole agent, the Center shall have exclusive authority and discretion to
administer, evaluate, settle, pay or defend all asbestos-related claims,
including the right to delegate to any person, upon consent of the Participating
Producer in question, such authority and discretion with respect to designated
asbestos-related claims against such Participating Producer.
2. The Center shall serve as the sole agent of each Participating
Producer with respect to all asbestos-related claims so long as such
Participating Producer is a member of the Center. Termination of membership of
a Participating Producer
pursuant to Paragraph 2 of Section III hereinabove shall serve immediately as a
withdrawal by such Participating Producer of the designation of the Center as
its sole agent made pursuant to Paragraph 1 of this Section, and shall terminate
immediately the Center's right, authority and obligation to act on behalf of
such Participating Producer with respect to any and all asbestos-related claims,
whenever made or filed, but this shall not prevent reasonable access by such
Participating Producer to its claims files.
V. COOPERATION WITH CENTER
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Each Participating Producer shall comply with the terms and conditions of
the Agreement and Attachment A hereto and shall cooperate with and assist the
Center in the furtherance of such terms and conditions and of its purposes.
Each Participating Producer shall respond fully and in a timely manner to
reasonable requests by the Center for information and shall assist in the
securing and giving of evidence concerning asbestos-related claims. The Center
shall use its best efforts to maintain the confidentiality of confidential or
proprietary information submitted by Participating Producers and Supporting
Insurers.
VI. ALLOCATION OF LIABILITIES AND EXPENSES
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Liability payments and allocated expenses shall be apportioned to each
Participating Producer from the date such Producer becomes a signatory to the
Agreement and a member of the Center. Such apportionment shall establish the
responsibility of each Participating Producer for a percentage share of
liability payments and a percentage share of allocated expenses attributable to
each claim handled by the Center as sole agent for such Participating Producer
under Section IV hereinabove. Each Subscribing Producer's percentage shares of
liability payments and allocated expenses shall be established as provided in
Attachment A hereto, and shall be subject to modification only in the manner and
to the extent set forth therein. To the extent that a Participating Producer's
percentage shares of liability payments and allocated expenses attributable to a
particular asbestos-related claim are not paid in a timely manner by one or more
of its Insurers, whether pursuant to the Wellington Agreement or any other
agreement, such Participating Producer shall pay in a timely manner the
percentages of liability payments and allocated expenses in question.
VII. PAYMENT OF UNALLOCATED EXPENSES
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Each Participating Producer shall pay, respectively, the percentage share
attributed to it pursuant to Attachment A hereto of any unallocated expenses
incurred by the Center during its
first fiscal year of operation not otherwise paid by Supporting Insurers
pursuant to the Insurer Agreement. The manner and timing of such payments shall
be as determined by the Center. The amounts and timing of unallocated-expense
payments, if any, by Participating Producers concerning the Center's second and
subsequent years of operations shall be as mutually agreed upon by the
signatories hereto.
VIII. CENTER CLAIMS HANDLING
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1. The Center shall administer, evaluate, settle, pay or defend all
asbestos-related claims in a fair, cost-effective and expeditious manner. The
Center shall handle each asbestos-related claim on behalf of all Participating
Producer members, and shall not settle an asbestos-related claim on behalf of
fewer than all Participating Producer members. The Center shall settle each
asbestos-related claim so as to extinguish claims for all damages, including
punitive damages, and, in the settlement of asbestos-related claims, the Center
shall not pay punitive damages to claimants.
2. The Center shall hire an adequate number of competent and experienced
claims and legal staff and shall retain the services of competent and
experienced legal counsel to defend asbestos-related claims. The Center shall
retain such counsel, including punitive counsel, as are necessary and
appropriate to
defend the interests of Participating Producer members. The Center may utilize
counsel-sharing arrangements on behalf of its members with Producers not
signatories hereto.
3. Actions against third parties may be undertaken by the Center on
behalf of its members, but the Agreement shall neither require nor preclude such
actions.
4. The Center shall require valid evidence to support each claim against
Participating Producer members, and shall require credible medical evidence in
each case prior to making payment to a claimant. Center personnel shall be
responsible for obtaining such evidence from each claimant and verifying it.
5. A claimant shall be paid solely for asbestos-related injury.
However, the Center may provide certain claimants whose claims have not matured
with an opportunity to resubmit a claim to the Center should additional medical
evidence become available. The Center may enter into agreements to suspend the
running of statutes of limitations with respect to claims timely presented and
shall adopt uniform, streamlined, expeditious procedures, including voluntary
nonjudicial means of resolving disputed claims.
6. The Center shall not make payments pursuant to a pre-determined
schedule of benefits, but detailed claims guidelines shall be used to evaluate
and settle asbestos-related claims. The Center shall make payments and settle
claims only on behalf of
Participating Producer members and shall be entitled to credit for settlements
made and judgments paid by Participating Producer members prior to membership in
the Center.
7. The Center shall operate according to annual liability, defense and
operational programs to be established by the Board of Directors. The Center
shall be subject to annual financial and quality control audits by persons
selected by the Board of Directors.
IX. CENTER ADMINISTRATIVE SERVICES
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1. In addition to the functions to be performed by the Center pursuant
to Section VIII hereinabove, the Center shall perform for Participating
Producers, and for Supporting Insurers that are paying unallocated expenses
incurred by the Center, certain administrative services, including claims
analysis and reporting and insurance allocation and billing.
2. In furtherance of its administrative function the Center shall, among
other things, administer all Center receipts and disbursements; develop,
maintain and keep current an accurate claims database; produce claims-related
analyses, comparisons and reports; clearly communicate Center claims-handling
analyses and results on a periodic basis; administer and implement the
provisions of Attachment A hereto, including the provision of timely evaluation,
analyses and monitoring of the manner in which
liability payments and allocated expenses are apportioned thereunder; administer
and implement the insurance-coverage provisions of the Wellington Agreement in
full conformity with that agreement and also in an accurate, consistent and
timely manner, including the provision of periodic billings and supporting
information; administer other insurance-coverage arrangements of Participating
Producers; and administer for Participating Producers any counsel-sharing
arrangements with producers not signatories hereto.
3. The Center shall perform its administrative function in a timely,
accurate and cost-effective manner, and may retain the services of experienced
and competent third parties and consultants to do so.
4. The Center may enter into arrangements to provide certain
administrative services to persons that are not signatories hereto in exchange
for appropriate compensation and upon terms satisfactory to the Center, but the
Center shall not be required to enter into such arrangements.
X. THIRD-PARTY RIGHTS
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The Agreement is intended to confer rights and benefits only upon
Participating Producers, Supporting Insurers that are paying unallocated
expenses incurred by the Center and the Center, and is not intended to confer
any rights or benefits upon
any other persons. No person other than the Center, a signatory hereto or a
Supporting Insurer that is paying unallocated expenses incurred by the Center
shall have any legally enforceable rights under the Agreement. All rights of
action for any breach of this Agreement by any signatory hereto are hereby
reserved to the Center, Participating Producers and to Supporting Insurers that
are paying unallocated expenses incurred by the Center.
XI. EFFECTIVE DATE
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The effective date of this Agreement with respect to each signatory hereto
shall be the date upon which such person executed the Agreement in the manner
set forth in Section IV hereinbelow or September 30, 1988, whichever is later.
XII. ADDITIONAL SIGNATORIES
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1. A Producer may become a signatory to the Agreement subsequent to
September 30, 1988, only upon application to the Board of Directors of the
Center and approval by an affirmative vote of four-fifths (4/5) of the voting
directors then in office.
2. In determining whether a Producer may become a signatory hereto, the
Board of Directors shall determine whether the best interests of the Center and
of the other signatories would be served thereby, in order to assure that the
compromises
herein and commitments of resources hereunder are duly respected, that such
Producer derives no unfair advantage with respect to the other signatories and
that none of the other signatories suffers any unfair disadvantage by reason of
said Producer's failure to become a signatory to the Agreement prior to
September 30, 1988.
3. Pursuant to the foregoing, the Board of Directors shall determine the
terms upon which a Producer may become a signatory to the Agreement subsequent
to September 30, 1988, including the percentage shares of liability payments,
allocated expenses and unallocated expenses that are to be attributed to such
Producer. In so doing, the Board of Directors shall consider all relevant
factors, including: (i) what the shares would have been had the Producer became
a signatory to the Agreement prior to September 30, 1988; (ii) the degree of
risk of additional liability or expense that the Producer would bring to the
Center; (iii) the impact of such Producer's participation on the percentage
shares of other Participating Producers; and (iv) the appropriateness of a
minimum share.
XIII. MODIFICATION AND TERM
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1. The Agreement, including Attachment A hereto, is the entire agreement
between and among the Participating Producers for the administration, defense,
payment and disposition of
asbestos-related claims. All antecedent or contemporaneous extrinsic
representations, warranties or collateral provisions concerning the negotiation
and preparation of the Agreement or Attachment A hereto are intended to be
discharged and nullified. In any dispute involving the Agreement or Attachment A
hereto, no person shall introduce evidence of or seek to compel testimony
concerning any oral or written communication made prior to September 30, 1988,
with respect to the negotiation and preparation of the Agreement or Attachment A
hereto. Nothing in this Paragraph applies to the Insurer Agreement, the
Wellington Agreement, the Agreement Concerning Asbestos Claims Facility dated
June 15, 1988, or the Agreement Concerning the Insurance Defense Program between
certain Supporting Insurers and GAF Corporation and Keene Corporation.
2. Nothing in the Agreement shall have the effect of relieving any
Supporting Insurer or Participating Producer of any obligation under the
Wellington Agreement that survives dissolution or termination of the Asbestos
Claims Facility, including insurance-related obligations; provided, that as to
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Supporting Insurers, the Insurance Defense Program provided for in Section XII
and
Appendix E to the Wellington Agreement ("IDP") and all rights thereunder with
respect to allocated expenses incurred after October 3, 1988, shall terminate as
of that date.
3. Any modifications to the Agreement or Attachment A hereto may be made
only by mutual agreement of all Participating Producers and in writing.
4. The Agreement and Attachment A hereto shall have perpetual existence,
notwithstanding the failure or invalidation of any particular provision.
XIV. WAIVERS, ADR AND CHOICE OF LAW
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1. So long as it is a member of the Center each Participating Producer
shall forego all claims for contribution or indemnity (other than for
contribution or indemnity assumed under written agreement) against all other
Participating Producers that are members of the Center.
2. Each Participating Producer waives, as to the Center and all other
Participating Producers, any claims for conflict of interest that may arise from
the representation of it or the Center in connection with the handling or
defense of asbestos-related claims hereunder during the period of such
Participating Producer's membership in the Center by i) any Center liaison
counsel, ii) joint or special counsel or iii) employees of the Center or of any
Participating Producer.
3. All disputes concerning the validity, interpretation and application
of the Agreement or any provision thereof, and all disputes concerning issues
within the scope of the Agreement shall be resolved through alternative dispute
resolution (ADR) in the manner set forth in Appendix C to the Wellington
Agreement; provided, that the Center for Public Resources, rather than the
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Asbestos Claims Facility, shall be requested to administer any alternative
dispute resolution and the parties thereto shall share, on an equal basis and
pending final resolution, any of the fees or expenses of the Center for Public
Resources. All such disputes shall be determined in accordance with applicable
common law of the states of the United States.
XV. SIGNATURE
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The Agreement may be executed in any number of counter-parts and by
different signatories hereto in separate counter-parts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Each Participating Producer shall send
one executed counterpart of the Agreement to a depository to be established and
maintained by the Center.
IN WITNESS WHEREOF, the person named below has caused this Agreement to be
signed by its authorized representative on this 28 day of September ,
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1988.
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Name: Armstrong World Industries, Inc.
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By: /s/ Larry A. Pulkrabek
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Vice President,
Title: Secretary and General Counsel
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Signed, sealed and delivered this 28th day of
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September , 1988, in the presence of
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/s/ A. Earl Mays ,
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Witness to the signature of the above-named
person.
ATTACHMENT A
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Apportionment of Center Payments and Expenses
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All Liability Payments, Allocated Expenses, and Unallocated Expenses
shall be apportioned among Participating Producers based on the individual
Participating Producer shares established as provided in this Section (the
"Participating Producer Shares").
A. Initial Producer Shares
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The Participating Producer Shares for Participating Producers as of
September 30, 1988, shall be as provided in this Section A until changed
pursuant to the provisions of Section B. Participating Producer Shares for
Producers becoming Participating Producers subsequent to September 30, 1988,
shall be as determined pursuant to Section XII of the Agreement.
1. Liability Payment Shares
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Any Liability Payment shall be apportioned among the Participating
Producers based on individual Participating Producer Shares established as
provided herein (the "Liability Payment Shares").
a. Period I Claims. For any Asbestos-Related Claims filed or brought on
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or before September 30, 1983 (the "Period I Claims"), the Liability Payment
Share for each Participating Producer will be the liability share (determined
pursuant to
Appendix A-1 of the Agreement Concerning Asbestos-Related Claims dated May 29,
1985) that each Participating Producer had in the Asbestos Claims Facility as of
September 1, 1987, adjusted upward pro rata to reflect the absence of the
liability shares of those Producers who were members of the Asbestos Claims
Facility but are not members of the Center as of September 30, 1988.
b. Period II & III Claims. For any Asbestos-Related Claims filed or
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brought during the period October 1, 1983, through June 19, 1986 (the "Period II
& III Claims"), the Liability Payment Share for each Participating Producer will
be computed as provided in this paragraph A.1.b. For Participating Producers
that became members of the Asbestos Claims Facility pursuant to Section H of
Appendix A-1 of the Agreement Concerning Asbestos-Related Claims dated May 29,
1985 (the "New Entrants"), their Liability Payment Shares will be their
respective liability shares as negotiated pursuant to that Section H, with
appropriate adjustments to reflect the absence of the liability shares for
Period II & III Claims of those Producers who were members of the Asbestos
Claims Facility but are not members of the Center as of September 30, 1988. For
all other Participating Producers, the Liability Payment Share for each
Participating Producer will be computed as follows:
(i) All such claims will be placed in one of twelve occupational
categories (the "Twelve Occupational Categories")
using the Guidelines for Occupational Categories attached hereto as Exhibit 1.
These Twelve Occupational Categories will then be grouped into four occupational
groupings (the "Four Occupational Groupings") as shown below.
Twelve Four
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Occupational Categories Occupational Groupings
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Shipyard Shipyard
Insulator Insulator
Construction
Plasterer/Spray Construction
Sheetmetal
Bystander/Secondary Exposure
Friction
Maintenance/Repair/Cleaner
Manufacturing All Other
Other
Plantworker
Railroad
A determination will then be made for each Participating Producer of the number
of Period II & III Claims in each of the Twelve Occupational Categories in which
that Participating Producer is named as a defendant or third-party defendant or
is otherwise designated in the claim as responsible for the injury (the "Claims
Named for Each Participating Producer for Each Occupational Category").
(ii) All Asbestos-Related Claims closed by each Participating
Producer prior to becoming a member of the Asbestos
Claims Facility will then be placed in one of the Twelve Occupational Categories
using the Guidelines for Occupational Categories attached hereto as Exhibit 1.
The total number of such claims in each Occupational Category for each
Participating Producer will then be divided into the total amount of liability
payments (including punitive damages, if any) made by that Participating
Producer with respect to those claims to derive the "Average Cost Per Closed
Claim" for each Participating Producer for each such Occupational Category.
(iii) For each Participating Producer, the Claims Named for each
Occupational Category for that Participating Producer will then be multiplied by
the Average Cost Per Closed Claim for that Occupational Category for that
Participating Producer to derive that Participating Producer's Claims Named
Times Average Cost for each Occupational Category.
(iv) Each Participating Producer's Claims Named Times Average Cost
for the Twelve Occupational Categories will then be converted into separate
occupational shares for each of the Four Occupational Groupings (the
"Occupational Shares"). These shares will be used to apportion the Liability
Payments with respect to Period II & III Claims falling within the corresponding
Occupational Groupings.
(I) Where the Occupational Category is also an Occupational
Grouping (as is the case for the "Shipyard" and
"Insulator" Occupational Categories), each Participating Producer's Claims Named
Times Average Cost for the Occupational Category will be divided by the
aggregate of all Participating Producers' Claims Named Times average Cost for
that Occupational Category (including a factor for the New Entrants) to produce
the Occupational Share for that Occupational Grouping. For any Participating
Producer that would otherwise have an Occupational Share for any Occupational
Grouping of less than one one-hundredth of one percent (0.01%), the Occupational
Share for that Occupational Grouping for that Participating Producer will be one
one-hundredth of one percent (0.01%).
(II) Where the Occupational Grouping is made up of several
Occupational Categories (as is the case for the "Construction" and "All Other"
Occupational Groupings), each Participating Producer's Claims Named Times
Average Cost for each of the Occupational Categories making up the Occupational
Grouping will be added together and divided by the aggregate of all
Participating Producers' Claims Named Times Average Cost for those Occupational
Categories (including a factor for the New Entrants) to produce the Occupational
Share for that Occupational Grouping. For any Participating Producer that would
otherwise have an Occupational Share for any Occupational Grouping of less than
one one-hundredth of one percent (0.01%), the Occupational
Share for that Occupational Grouping for that Participating Producer will be
one one-hundredth of one percent (0.01%).
c. Period IV Claims. For any Asbestos-Related Claims filed or brought
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after June 19, 1986 (the "Period IV Claims"), the Liability Payment Share for
each Participating Producer will be computed in the same manner as for Period II
& III Claims except using Asbestos-Related Claims filed or brought during the
period June 20, 1986, through June 30, 1988, rather than Period II & III Claims.
These shares will be used to apportion the Liability Payments made by the Center
with respect to Period IV Claims. Notwithstanding the foregoing, separate
Interim Sharing Arrangements as described below will be adopted pursuant to
paragraph B.5.b for Period IV Claims categorized as "Rubber" and "Steel" claims
(as defined pursuant to the Guidelines for Occupational Categories attached
hereto as Exhibit 1).
(i) Under the Interim Sharing Arrangement for Rubber claims, any
Liability Payments with respect to those claims will be shared per capita among
those Participating Producers named as a defendant, third-party defendant, or
otherwise designated in the claim as responsible for the injury in more than
four percent (4%) of those claims.
(ii) Under the Interim Sharing Arrangement for Steel claims, any
Liability Payments made with respect to those claims will be shared among those
Participating Producers named as a
defendant, third-party defendant, or otherwise designated in the claim as
responsible for the injury in more than four percent (4%) of those claims, with
each such Participating Producer assigned to one of three tiers as shown on the
chart below based on the percentage of those claims in which it is so named or
designated, and with each Participating Producer on a given tier having the same
Liability Payment Shares for those claims. The Liability Payment Share for the
Participating Producers on a given tier will be determined by taking the number
of Participating Producers on that tier, multiplying that number by the
Weighting Factor for that tier, determining what percentage that product is of
the aggregate of the products of the number of Participating Producers on each
tier multiplied by the Weighting Factor for each tier, and sharing the resulting
percentage equally among the Participating Producers on that tier. An example
follows, assuming the number of Participating Producers on each tier shown
below, which was the number based on data through September 30, 1987.
# Producers Range of Weighting Share Per
Tier On Tier % Named Factor Producer
- ------ ----------- -------- --------- ---------
1 7 More than 50% 3 10.00%
2 3 Over 20% but 2 6.67%
50% or less
3 3 Over 4% but 1 3.33%
20% or less
d. Application. The Liability Payment Shares computed pursuant to
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paragraphs 1.a, 1.b, and 1.c of this Section A for Period I Claims, Period II &
III Claims, and Period IV Claims, respectively, shall be applied to apportion
the Liability Payments with respect to those claims regardless of when those
payments shall be made or when those claims shall be disposed of.
Notwithstanding the foregoing, however, if a Participating Producer shall have
closed any claim prior to becoming a member of the Asbestos Claims Facility, the
Center shall not apportion to that Participating Producer (and that
Participating Producer shall not be obliged to pay) any portion of any Liability
Payments with respect to that claim. The amount of any such payments that would
otherwise have been apportioned to that Participating Producer shall be
apportioned among the remaining Participating Producers in proportion to the
Liability Payment Shares of those Participating Producers applicable to that
claim.
e. Definitions. For purposes of the Agreement and this Attachment A,
-----------
"closed claims" with respect to a Participating Producer are Asbestos-Related
Claims in which that Participating Producer was named as a defendant, third-
party defendant, or was otherwise designated in the claim as responsible for the
injury, and of which that Participating Producer has disposed on its own behalf,
whether by judgment, settlement, dismissal, or otherwise, prior to joining the
Asbestos Claims Facility. "Closed claims" with respect to the Center are
Asbestos-Related Claims in which at least one Participating Producer was named
as a defendant, third-party defendant, or was otherwise designated in the claim
as responsible for the injury and had not closed that claim as of becoming a
signatory of the Agreement, but of which the Center has subsequently disposed
(whether by judgment, settlement, dismissal, or otherwise). "Open claims" or
"pending claims" are Asbestos-Related Claims that are not "closed" so far as the
Producer or entity in question is concerned.
2. Allocated Expense Shares
------------------------
Any Allocated Expense shall be apportioned among the Participating
Producers based on individual Participating Producer Shares established as
provided herein (the "Allocated Expense Shares").
a. Derivation. The Allocated Expense Share for each Participating
----------
Producer will be a single share applicable to any
Allocated Expense, computed by determining for that Participating Producer a
partial Allocated Expense Share for Period I Claims, Period II & III Claims, and
Period IV Claims, respectively, and by taking the weighted average of those
Partial Allocated Expense Shares weighted by the total number of claims the
Center has in each of those periods that were open as to the Asbestos Claim
Facility as of June 30, 1988. The Partial Allocated Expense Shares for each
Participating Producer will be computed as follows:
(i) For Period I Claims, the Partial Allocated Expense Share for
each Participating Producer will be the allocated expense share (determined
pursuant to Appendix A-1 of the Agreement Concerning Asbestos-Related Claims
dated May 29, 1985) that each Participating Producer had in the Asbestos Claims
Facility as of September 1, 1987, adjusted upward pro rata to reflect the
absence of the allocated expense shares of those producers who were members of
the Asbestos Claims Facility but are not members of the Center as of September
30, 1988.
(ii) For Period II & III Claims, the Partial Allocated Expense Share
for each Participating Producer will be computed as provided in this paragraph
A.2.a(ii). For New Entrants, their Partial Allocated Expense Share will be
their respective allocated expense shares as negotiated pursuant to Section H of
Appendix A-1 of the Agreement Concerning Asbestos-
Related Claims dated May 29, 1985, with appropriate adjustments to reflect the
absence of the allocated expense shares for Period II & III Claims of those
Producers who were members of the Asbestos Claims Facility but are not members
of the Center as of September 30, 1988. For all other Participating Producers,
the partial Allocated Expense Share for each Participating Producer will be
computed by taking the number of Period II & III Claims in which that
Participating Producer is named as a defendant, a third-party defendant, or is
otherwise designated in the claim as responsible for the injury, and dividing it
by the aggregate of the number of such claims for all Participating Producers
(including a factor the New Entrants).
(iii) For Period IV Claims, the Partial Allocated Expense Share for
each Participating Producer will be computed in the same manner as for Period II
& III Claims except using Asbestos-Related Claims filed or brought during the
period June 20, 1986, through June 30, 1988, rather than Period II & III Claims.
b. Application. The Allocated Expense Shares computed pursuant to
-----------
paragraph 2.a of this Section A shall be applied to apportion the Allocated
Expenses regardless of when those expenses are incurred.
3. Unallocated Expense Shares
--------------------------
Any Unallocated Expense for which the Center does not receive
reimbursement from any Supporting Insurer of any Participating Producer shall be
apportioned among the Participating Producers based on individual Participating
Producer Shares established as provided herein (the "Unallocated Expense
Shares"). Each Participating Producer will be assigned to one of four tiers
based on where its Partial Allocated Expense Share for Period IV Claims falls
with respect to the ranges listed in the chart below. Notwithstanding the
foregoing, Participating Producers otherwise on the top tier will be placed on
the second tier if more than fifty percent (50%) of the insurance coverage
currently being billed by the Center to Supporting Insurers of that
Participating Producer (and other Insurers of that Participating Producers that
are nonetheless paying on the same basis as the Supporting Insurers) is primary
insurance. The aggregate Period IV Partial Allocated Expense Shares for all
Participating Producers on a given tier will then be divided equally among all
Participating Producers on that tier to give the Unallocated Expense Share for
each Participating Producer on that tier. The Unallocated Expense Shares as
thus established shall be applied to apportion the Unallocated Expenses incurred
while those shares are in effect. An example follows, assuming the number of
Participating Producers on each
tier shown below, which was the number based on data through September 30, 1987.
# Producers Share Range Share Per
Tier On Tier Of Tier Producer
- ---- ----------- ----------- ----------
1 6 More than 4% 11.97%
2 8 Over 1% but 4% 2.97%
or less
3 8 Over 0.4% but 1% 0.53%
or less
4 3 Less than or equal 0.06%
to 0.4% or $10,000
per year
whichever
is greater
4. Documentation on Initial Shares
-------------------------------
The data submitted to the Center by Participating Producers generally
has been reviewed for accuracy, consistency, reasonableness, and completeness.
Each Participating Producer, however, is responsible for the accuracy and
integrity of the data it has submitted. No reduction in any Participating
Producer's Liability Payment Share, Allocated Expense Share, or
Unallocated Expense Share shall be made in response to any error or
incompleteness in that data that may come to light more than thirty (30) days
after the effective date of the Agreement. Any error or incompleteness that
would result in an increase in any such share shall promptly be given effect by
the Center, after consultation with the Special Counsel (appointed pursuant to
paragraph B.3 below), through an appropriate adjustment to the appropriate
Participating Producer Share, with the same presumption of retroactive affect as
contained in paragraph B.5.c(i) below. There shall be deposited with both the
Center and the Special Counsel a complete list of Liability Payment Shares,
Allocated Expense Shares, and Unallocated Expense Shares for all Participating
Producers computed in accordance with this Section A using data through June 30,
1988. Accompanying this list shall be a computer tape containing on a claim-by-
claim and aggregated basis all data required for and actually used in the
computation of those shares.
B. Future Adjustment of Participating Producer Shares
--------------------------------------------------
1. Shares Subject to Adjustment
----------------------------
The Unallocated Expense Shares, the Allocated Expense Shares, and
those Liability Payment Shares applicable to Period IV Claims may be adjusted in
the future but only in accordance with the following provisions. Those
Liability payment Shares
applicable to Period I Claims and Period II & III Claims shall not be adjusted.
2. Participating Producer Approval
-------------------------------
Any adjustments pursuant to paragraph B.5 below must be approved by an
affirmative vote of the Participating Producers after consideration of the
recommendation of the Special Counsel (established pursuant to paragraph B.3
below) and applying the standards set out in this Section B. Any such
adjustments shall not become effective before sixty (60) days after such
affirmative vote. The affirmative vote must include Participating Producers
representing:
a. At least fifty percent (50%) of the combined dollar contributions by
all Participating Producers to the Center for all purposes during the preceding
calendar year (including contributions made by Participating Producers directly
or on their behalf by their respective Supporting Insurers); and
b. At least forty percent (40%) of the total number of Participating
Producers.
3. Special Counsel
---------------
The Board of Directors of the Center shall retain the services of an
independent Special Counsel to assist the Center and its Participating Producers
in connection with any future adjustment in the Unallocated Expense Shares, the
Allocated Expense Shares, and those Liability Payment Shares subject to
adjustment pursuant to paragraph B.1 above, and in connection with such other
matters as the Board shall deem appropriate. The Special Counsel shall serve at
the pleasure of the Board and shall be compensated by the Center as determined
by the Board.
a. Adjustment Proposals. All proposals for adjusting the shares of any
--------------------
Participating Producer pursuant to paragraph B.5 below shall be submitted to the
Special Counsel for its review prior to any consideration of the proposal by the
Participating Producers. The Special Counsel shall provide a recommendation
with respect to any such proposal prior to its consideration by the
Participating Producers. In addition, the Special Counsel may develop its own
proposals with respect to adjusting the shares of any Participating Producer
pursuant to paragraph B.5. Such proposals shall be promptly considered by the
Participating Producers pursuant to paragraph B.2 above and shall not require
prior consideration or approval by the Board.
b. Data Collection. To assist in this work, the Center shall maintain
---------------
information with respect to claims reported to Participating Producers, Liaison
Counsel, or the Center in which a Participating Producer is named as a
defendant, a third-party defendant, or is otherwise designated in the claim as
responsible for the injury. This information shall include, without limitation,
the following items:
(i) The Filing Date of the claim.
(ii) The Occupational Category of the claim based on the
occupation or status of the person whose exposure to asbestos gave rise to the
claim (hereinafter "Primary Claimant"), as determined by the Center using the
Guidelines for Occupational Categories attached hereto as Exhibit 1.
(iii) The Disease Category of the claim based on the asbestos-
related disease from which the Primary claimant is suffering as determined by
the Center.
(iv) The Dates of Exposure of the Primary Claimant to asbestos
(to the extent available and deemed appropriate).
(v) The Circumstances of such Exposure, to the extent available
and deemed appropriate (such as, for workplace exposure, the duties and
responsibilities of the Primary Claimant, the job site, the identity of the
Primary Claimant's employer, and the degree of exposure to asbestos or asbestos-
containing products).
(vi) Each Producer that is named as a defendant, third-party
defendant, or is otherwise designated in the claim as responsible for the
injury.
(vii) Plaintiff's counsel.
(viii) The Disposition Date (i.e. the date the claim was disposed
of by the Center, whether by dismissal, settlement, judgment, or other).
(ix) The Type of Disposition (i.e. dismissal, settlement,
judgment, or other).
(x) Producers Held Liable.
(xi) The Amount Paid or Owed by the Center as Liability
Payments.
(xii) Such other information as may be designated by the Center
or Special Counsel.
c. Reports. The Center shall provide monthly reports to the Special
-------
Counsel (at a time and in a form to be agreed upon) displaying on an aggregated
basis the information specified in paragraph B.3.b with respect to:
(i) new claims reported to Participating Producers, Liaison
Counsel, or the Center during the preceding month;
(ii) claims disposed of by the Center during the preceding
month;
(iii) all claims reported to Participating Producers, Liaison
Counsel, or the Center during Period IV as of the end of the preceding month;
and
(iv) all claims pending in the Center by period (i.e., Period I
----
Claims, Period II & III Claims, and Period IV Claims) as of the end of the
preceding month.
d. Outside Assistance. The Special Counsel shall be given access by the
------------------
Center to the information from which the reports described in paragraph B.3.c
are derived (including all
information described in paragraph B.3.b. above) and to such other information
as the Special Counsel shall deem necessary in order for it to perform its
responsibilities under this Attachment A (all such information hereinafter
referred to as the "Share Information"). The Center will perform studies and
analyses of the Share Information as directed by the Special Counsel. The
Special Counsel may, with the concurrence of the Board of Directors of the
Center, retain an outside auditor to conduct an independent audit of the Share
Information, or retain an outside consultant to perform studies and analyses of
the Share Information.
4. Identification of Adjustments
-----------------------------
The Center and the Special Counsel shall monitor the reports and
information obtained pursuant to paragraph B.3 above to identify any factors or
trends that tend to suggest that the Participating Producer Shares subject to
adjustment pursuant to paragraph B.1 may not fairly reflect the relative
responsibility of Participating Producers for Liability Payments, Allocated
Expenses, or Unallocated Expenses with respect to all or an identifiable
category of claims. These factors or trends may include, without limitation,
the following:
a. A dramatic increase in the number of claims involving one of the
existing Twelve Occupational Categories (such as, for
example, a dramatic increase in the number of cases within the "Friction"
category) or a new occupational category.
b. A dramatic increase in the number of claims involving a particular
occupation or status presently subsumed within one of the existing Occupational
Categories (such as, for example, a dramatic increase in the number of chemical
plant cases within the "Insulator" category).
c. A dramatic increase in the number of cases of a particular type
within a particular state (especially if few cases of this type have previously
been filed in that state or if there is little available data on the disposition
of this type of case in that state).
d. A dramatic increase in the number of cases at a specific location or
place (such as, for workplace exposure, a particular job site).
e. A dramatic increase in the number of cases involving a particular
Disease Category (such as, for example, a dramatic increase in the "Pleural
Disease" category).
f. A dramatic increase in the number of cases involving a particular
disease subsumed by the Center within an existing Disease Categories (such as,
for example, a dramatic increase in the number of cases involving a particular
form of cancer currently classified by the Center within the "Other Cancer"
category).
g. Disposition or other data indicating for a particular category of
claims (whether based on occupation or status, location, disease, or some other
basis) that a particular Participating Producer is not liable for those claims
or that the relative responsibility among Participating Producers is
significantly different from what is indicated by the Participating Producer
Shares.
h. Such other factors and trends as may be identified by the Center or
the Special Counsel.
5. Adjustments Subject to Participating Producer Approval
------------------------------------------------------
a. General. Adjustments may be made to reflect these factors and trends
-------
in the Participating Producer Shares of any Participating Producer subject to
adjustment pursuant to paragraph B.1. These adjustments may include, but are
not limited to, the segregation of significant and identifiable categories of
Period IV Claims into "Special Claim Categories" (as described in paragraphs
B.5.b and c below), the recalculation of Period IV Liability Payment Shares (as
described in paragraph B.5.d below), and the subdivision of Period IV Claims by
time and the application of different Participating Producer Shares for claims
in each subdivision. These adjustments may also include revision of the
Guidelines for Occupational Categories at Exhibit 1. All adjustments pursuant
to this paragraph B.5 must be
approved by the Participating Producers pursuant to paragraph B.2 above.
b. Interim Sharing Arrangements for Special Claim Categories. Where a
---------------------------------------------------------
Special Claim Category is deemed appropriate, an "Interim Sharing Arrangement"
shall be proposed for apportioning among Participating Producers any Liability
Payments made by the Center with respect to claims falling within this Special
Claim Category.
(i) In developing the Interim Sharing Arrangement, the following
factors may be considered: (i) the relative frequency with which Participating
Producers are named as defendants, third-party defendants, or are otherwise
designated in the claims as responsible for the injury; (ii) any disposition
data with respect to those claims; (iii) information concerning the particular
products, locations, occupations, or employers involved; and (iv) such other
information as the Center or the Special Counsel shall deem relevant.
(ii) The establishment of a Special Claim Category and of an Interim
Sharing Arrangement for that category must be approved by the Participating
Producers pursuant to paragraph B.2. above. Once approved, the Interim Sharing
Arrangement shall be used to apportion all Liability Payments thereafter made
with respect to claims falling within that Special Claim Category (subject,
however, to the provisions of paragraph B.5.c below).
(iii) The Allocated Expenses paid in connection with cases falling
within the Special Claim Category and subject to an Interim Sharing Arrangement
shall be treated no differently than the Allocated Expenses paid in connection
with any other claim.
c. Permanent Sharing Arrangement for Special Claim Categories. The
----------------------------------------------------------
Center shall monitor, in conjunction with Liaison Counsel and the Special
Counsel, (i) relevant pretrial discovery taken in connection with claims falling
within a Special Claim Category subject to an Interim Sharing Arrangement, (ii)
relevant pretrial motions made in connection with such claims, (iii) disposition
data with respect to such claims, and (iv) such other data as the Center or the
Special Counsel shall deem relevant.
(i) Once it is concluded that the foregoing data is sufficient to
permit it, a "Permanent Sharing Arrangement" will be proposed for apportioning
among Participating Producers any Liability Payments or Allocated Expenses with
respect to those claims. Such a Permanent Sharing Arrangement must be approved
by the Participating Producers pursuant to paragraph B.2 above. Once so
approved, all Liability Payments made and all Allocated Expenses incurred
thereafter with respect to claims falling within that Special Claim Category
shall be apportioned among Participating Producers pursuant thereto, subject to
any subsequent change in the Permanent Sharing Arrangement approved
by the Participating Producers pursuant to paragraph B.2 above. In addition, it
is presumed that the Permanent Sharing Arrangement shall be given retroactive
effect to apportion all Liability Payments made and all Allocated Expenses
incurred with respect to claims falling within that Special Claim Category from
the date that Special Claim Category was first established, subject to the right
of the Participating Producers to make the application of such Permanent Sharing
Arrangement prospective only to Liability Payments made and/or Allocated
Expenses incurred after the approval of the Permanent Sharing Arrangement if the
benefit in terms of Participating Producer equity from retroactivity is deemed
to be di minimis when compared to the administrative costs of doing so and other
-- -------
factors.
(ii) In the event that a Permanent Sharing Arrangement proposed for a
Special Claim Category is rejected by the Participating Producers, all Liability
Payments made by the Center with respect to claims subject to that category
shall continue to be apportioned among Participating Producers pursuant to the
Interim Sharing Arrangement for that category (and all allocated expenses
incurred in connection with such claims shall continue to be apportioned as
provided in paragraph B.5.b.(iii) above) unless and until either a Permanent
Sharing Arrangement is subsequently approved by the Participating Producers for
that category or the Participating Producers vote to disestablish the
Special Claim Category. Any such disestablishment shall require approval of the
Participating Producers pursuant to paragraph B.2.
d. Differences in Naming Data. In the event that future claims reported
--------------------------
to Participating Producers, Liaison Counsel, or the Center in any of the Four
Occupational Groupings evidence significant differences from the claims in that
grouping previously filed or brought during Period IV (excluding claims subject
to Special Claim Categories) with respect to the relative frequency with which
Participating Producers are named as defendants, third-party defendants, or are
otherwise designated in the claim as responsible for the injury, the Center, in
conjunction with the Special Counsel, shall initiate such studies and analyses
as shall be deemed appropriate. The purpose of these studies shall be to
determine whether these differences reflect actual differences in the relative
liability or responsibility of Participating Producers for these claims. If the
Special Counsel shall deem this to be the case, then, with the approval of
Participating Producers pursuant to paragraph B.2, the Liability Payment Shares
for Period IV Claims in that Occupational Grouping (excluding claims subject to
Special Claim Categories) shall be recalculated incorporating these new claims.
This recalculation shall be performed under the supervision of the Special
Counsel, and the recalculated shares shall be applied
to apportion all Liability Payments thereafter made by the Center with respect
to Period IV Claims falling within that Occupational Grouping (excluding claims
subject to Special Claim Categories). A recalculation of Allocated Expense
Shares shall not be made under this paragraph.
6. Adjustments Not Subject to
Participating Producer Approval
-------------------------------
Within twenty (20) days after the end of a calendar quarter
(hereinafter referred to as the "Completed Quarter"), the Partial Allocated
Expense Shares for Period IV Claims shall automatically be recalculated pursuant
to paragraph A.2 above by incorporating all Period IV Claims not previously
reflected in those shares that have been reported to Participating Producers,
Liaison Counsel, or the Center (excluding claims subject to a Permanent Sharing
Arrangement). Thereafter the weighted average of the Partial Allocated Expense
Shares shall be recomputed (pursuant to paragraph A.2), using the total number
of open claims the Center had in the corresponding periods as of the end of the
Completed Quarter, to compute new Allocated Expense Shares for all Participating
Producers. The Allocated Expense Shares thus recalculated shall be used by the
Center to apportion all Allocated Expenses incurred by the Center during the
calendar quarter immediately following the Completed Quarter (excluding claims
subject to a Permanent Sharing Arrangement). In addition,
the Unallocated Expense Shares shall also automatically be recalculated pursuant
to paragraph A.3 above using the recalculated Partial Allocated Expense Shares
for Period IV claims. The Unallocated Expense Shares thus recalculated shall be
used by the Center to apportion all Unallocated Expenses incurred during the
calendar quarter immediately following the Completed Quarter.
C. Punitive Damages
----------------
Punitive damage judgments shall not be apportioned among the
Participating Producers according to the Allocation Expense Shares provided
herein, but shall be borne by the Participating Producer against which the
judgment was rendered and its Insurers.
D. Separate Counsel
----------------
Any Participating Producer retaining counsel to represent it
separately from the Center (whether in connection with a punitive damage claim,
a matter as to which it has an interest that is not shared by the other
Participating Producers, or for some other reason) shall be entitled to have the
cost of such separate counsel in any calendar year reimbursed by the Center as
Allocated Expense (thereafter to be apportioned among all Participating
Producers including the Participating Producer retaining such counsel based on
the applicable Allocated Expense Shares) up to a limit to be established by the
Board of Directors
for each calendar year. All other such Allocated Expense shall be billed
directly to the responsible Insurer or Insurers for the Participating Producer
or, in the absence of such Insurers, to the Participating Producer itself.
E. Alternative Dispute Resolution
------------------------------
Any Participating Producer that believes that application of any
future adjustment in any Liability Payment Share, any Allocated Expense Share,
or any Unallocated Expense Share pursuant to Section B above is inequitable as
applied to its particular situation, or that the calculation of any particular
share pursuant to such future adjustment has been performed inaccurately or
incorrectly, may cause the matter to be presented to the Participating Producers
pursuant to paragraph B.2 above and, failing receipt of satisfactory action, may
take the matter to alternative dispute resolution within the Center. Such
Participating Producer shall bear the burden of proof.
F. New Entrants and Withdrawals
----------------------------
Any Producer that is not a signatory to the Agreement as of September
30, 1988, may become a signatory as provided in Section XII of the Agreement.
The Special Counsel shall provide such support and recommendations as the Board
may request with respect to any request from any Producer to become a signatory
to the Agreement, including the Liability Payment Shares, Allocated Expense
Shares, and the Unallocated Expense Shares to be borne by that
Producer. In the event the Producer becomes a signatory, the corresponding
shares of the other Participating Producers shall be reduced pro rata to make
room for the shares of the new Participating Producer. In the event that a
Participating Producer shall withdraw from membership in the Center pursuant to
Section IV of the Agreement or have its membership terminated pursuant to
Paragraph 3 of Section III, the corresponding shares of the other Participating
Producers shall be increased pro rata to pick up the shares of the withdrawing
or terminating Participating Producer.
Exhibit 1
CENTER FOR CLAIMS RESOLUTION
----------------------------
GUIDELINES FOR OCCUPATIONAL CATEGORIES
--------------------------------------
Occupational Category Description Occupational Examples
--------------------- ----------- ---------------------
Shipyard All claimants (including insulators) who Shipyard workers, shipfitter, shipwright, ship
worked in a shipyard or on board any vessel repair, ship maintenance, ship burner, marine
Also includes military personnel and seamen. machinist, ship scaler, rigger, shoreman,
stevedore, sandblaster, military personnel,
seamen, painter, welder.
Insulators Includes all insulators, boiler workers, Insulator, insulation mechanic, installer,
pipefitters, pipe covers and other related lagger, ripper, boiler maker, boiler repair
occupations (excludes insulators working in attendant, boiler installer, boiler tender, boiler
shipyards and railroads). In addition to the inspector, boiler cleaner, pipefitter, pipe
above, all claimants working in power plants, coverer, pipelagger, steamfitter, furnance
refineries and chemical factories are included mechanics, H & AC, refinery worker, chemical
in this category. worker, power plant operator, worker.
Sheetmetal Includes sheetmetal workers. Sheetmetal worker, sheetmetal mechanic,
metal assm.
Plasterer/Spray Individuals specifically identified with spray Plasterer, asbestos prayer, spray gun operator.
or as plasterers.
Friction Includes auto repair, auto mechanic and Friction, brakeliner, brake mechanic.
anyone else with brakes exposure.
Maintenance/Repair/Cleaner Individuals working in maintenance or repair, School maintenance, repairman, custodian,
as well as those associated with schools, building superintendent, cleaner, janitor, tank
hospitals or municipalities. cleaner, equipment cleaner.
Bystander/Secondary Exposure Claimants who alleges other exposure and Secondary exposure, family, wife, exposed
who would not otherwise be exposed through washing clothes, clerk, nurse, technician,
their normal course of employment. estimator, storekeeper, inspector.
Other Includes individuals who cannot be classified Equipment operator, forklift operator, crane
elsewhere. operator, fireman, guard, foreman, packer,
shipper, finisher, joiner, trade combination of
occupations, electronics, truck driver, bus
driver, government employee.
Special Categories
- ------------------