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acceptance rate plus 1% per annum. The lender charges a standby fee of 1/4% per annum on the undrawn portion of the facility. 

## 7. Related patty transactions 

Ihe Company has entered into a management agreement with Westar effective February 1, 1997. Westar is entitled to designate three of the Company’s five directors and is owned indirectly by a significant unitholder of the Fund. Under the terms of the agreement, Westar is responsible for providing executive management and other services to the Company. The initial term of the agreement is 15 years, and the agreement is renewed thereafter for successive five-year terms unless the Company gives notice of non-renewal at least 12 months before the end of the relevant term. The management agreement may be terminated by the Company in certain circumstances, and Westar can terminate the agreement at any time on 12 months’ notice. Westar earns a fee of $750,000 per annum plus reimbursement of reasonable out-of-pocket expenses for providing these services. In addition, as an incentive to Westar to enhance the cash flow of the Company, Westar is entitled to earn incentive fees that will be payable annually when the per-unit cash distributions to unitholders of the Fund exceed certain defined levels. 

Westar earned a fee of $750,000 (2001 - $750,000) for the year ended December 31, 2002 under the management agreement. No incentive fees were earned by Westar in 2002 and 2001. 

At December 31, 2002, accounts payable and accrued liabilities include $nil (2001 - $868,000) payable to Westar. At December 31, 2002, accounts receivable include $21,000 (2001 - $nil) due from the Fund. 

## 8. Employee future benefits 

‘The Company has two defined benefit pension plans and provides other retirement and post-employment benefits for most of its employees. 

Information about the Company’s defined benefit pension plans and other benefit obligations is as follows: 

December 31, 2002 and 2001 

(Figures in tables are expressed in thousands of dollars) 

Also see note 3. 

<img src='content_image/129211.jpg'>

All pension plans are fully funded. The other benefit plans have no assets. 

The significant actuarial assumptions adopted in measuring the Company’s accrued benefit obligations are as follows (weighted average assumptions as of December 31): 

<img src='content_image/129212.jpg'>

For measurement purposes, a 6% annual rate of increase in the per capita cost of covered health care benefits was assumed over the next 10 years. ‘The rate 

