+ Reems

4. Remuneration of Officers and Directors:
The Company and its subsidiaries paid aggregate direct
remuneration as follows —
Year ended December 31
1978 1977
To the twelve directors ........ $ 28,775 $ 20,900
To the five officers of

whom three are directors .. 362,775 299,879

$39 1/590 05320779

5. Pension Plan:

As at December 31, 1978 the unfunded portion of past
service benefits is approximately $1,017,000 which is
being funded and charged to operations by annual pay-
ments of $139,000.

6. Commitments:

The Company is committed to a leasing programme for
mining equipment. At December 31, 1978 the minimum
lease payments aggregated $7,378,000 of which
$2,151,000 will be payable in 1979.

7. Legal Actions:

The Company, as well as others, is continuing to be
named as a defendant in product liability suits in the
United States in which substantial damages are claimed
for alleged injuries to the health of asbestos workers or
members of their families by reason of the inhalation
and ingestion of asbestos fibres or dust. The Company
is contesting or defending such suits. Neither the exis-
tence of liability nor the extent of any possible damages
can be determined at this time. Thus no provision for
such liability, if any, has been made in the accompany-
ing consolidated financial statements.

Auditors’ Report

To the Shareholders of
Cassiar Asbestos Corporation Limited:

We have examined the consolidated balance sheet of
Cassiar Asbestos Corporation Limited as at December
31, 1978 and the consolidated statements of operations
and retained earnings and changes in financial position
for the year then ended. Our examination was made in
accordance with generally accepted auditing standards,
and accordingly included such tests and other proce-
dures aS we considered necessary in the circum-
stances.

In our opinion, subject to the outcome of the legal
actions referred to in Note 7, these consolidated finan-
cial statements present fairly the financial position of
the Company as at December 31, 1978 and the results
of its operations and the changes in its financial position
for the year then ended in accordance with generally
accepted accounting principles applied on a basis con-
sistent with that of the preceding year.

PRICE WATERHOUSE & CO.
Chartered Accountants
March 14, 1979

13