Letter of Credit

The Company has secured letters of credit in the amount of $5,043,936 as at December 31, 2019. From this amount, a cumulative total of $4,890,005 has been applied in respect of a portion of the minimum required solvency special payments due over the period beginning January 1, 2011 and ending December 31, 2019. As such, there is a remaining face amount of $153,931 which can be applied in respect of future years’ special payments.

In accordance with the Act, a plan sponsor may use a letter of credit to fund solvency special payments, up to 15% of solvency liabilities. Accordingly, the maximum face value of the aggregate of all letters of credit secured in lieu of making solvency deficiency payments to the Plan may not exceed $5,619,900 (15% x $37,466,000) as at December 31, 2019.