## 8. Provisions and contingencies (continued): 

## (b) Liability to insurance underwriter: 

The Company expects to receive reimbursement from its insurance underwriter for Bennett’s legal expenses incurred in connection with hiscriminal defense through 2014,as described in section (a) of this note. The amount outstanding as of December 31, 2014 related to this reimbursement was $434,236 (December 31, 2013 - $380,342) This expected reimbursement has been recorded as amounts receivable as described in note 5. Under its funding agreement with the underwriter,as noted above in note 8(a), the Company expects to be requi red to repay all legal costs it recovers from the underwriter in the event that Bennett is found guilty.  The Company hascash resources available to settle  the estimated liability that may result from this requirement. 

## (c) Additional claims involving Mr.Bennett: 

Bennett has also served a claim against Second City Capital Partners I, Limited Partnership (“Second City”), Samuel Belzberg (“Belzberg”) and the Company in 2011. The claim alleges that in September 2009,the Company was in possession of materia l undisclosed information and that, while in possession of such information, the Company and Belzberg directed Second City to purchase the Company’s common shares from Bennett. Management believes there is no basis for making this allegation against the C ompany. Accordingly the Company has made no provision in respect of this matter. 

## (d) Environmental Protection Agency: 

During the first quarter of 2012, the United States Environmental Protection Agency (“EPA”) provided the Company with a Notice of Propos ed Debarment for a period of five years resulting from documentary and procedural compliance deficiencies in connection with a prior agreement with the EPA. On October 3, 2012, the Company announced the resolution to all outstanding issues with the EPA. Pursuant to the terms of the negotiated Administrative Agreement (the “Agreement”) executed by the parties, the Company agreed to undertake certain reporting, certification, and monitoring requirements for a period of two years which expired on October 2, 2014. Management believes that the Company has complied with its obligations under the Agreement and that the Company will not be subject to any further obligations under its terms. 

