1. Leadership, Knowledge, Solutions…Worldwide. State of the Market Update D&O Liability Insurance Andrea Orviss, Vancouver November 4, 2010

2. Marsh—Leadership, Knowledge, Solutions…Worldwide. 1 Directors and Officers (D&O) Liability Insurance  Market Conditions – Coverage – Capacity – Price  Claims Update

3. Marsh—Leadership, Knowledge, Solutions…Worldwide. 2 Market Conditions Coverage  New primary wordings – Consolidating incremental enhancements – Expanding coverage, especially:  Insured vs. insured exposures  Pollution-related liabilities  Definition of loss  Definition of claim  True follow form excess wordings  Side A Difference in Conditions (DIC) wordings

4. Marsh—Leadership, Knowledge, Solutions…Worldwide. 3 Market Conditions Capacity  Capacity abundant and largely stable  Canadian domestic capacity: – Theoretical 500,000,000+ – Practical 300,000,000+ – Depends on U.S. exposures and type of coverage – Does not include Lloyd’s or other licensed offshore capacity

5. Marsh—Leadership, Knowledge, Solutions…Worldwide. 4 Market Conditions Price  Soft especially for non public or Canadian only risks  Reasons: – Generally healthy insurance market – Insurers seeking to balance out U.S. exposures  But …

6. Marsh—Leadership, Knowledge, Solutions…Worldwide. 5 Timminco Limited Allen-Vanguard Corp. Bear Lake Gold Manulife Financial Novagold Resources Western Coal $80MM $25MM $100MM $400MM $520MM $500MM Claims Update Secondary Market Liability Note: Amounts claimed, not settlements or insurance recovery 2010 2009 Canadian Royalties Canadian Superior Energy Theratechnologies Canadian Solar $100MM $500MM $390K (per class member) $50MM easyhome Ltd. $15MM $80MM $25MM $15MM Redline Communications

7. Marsh—Leadership, Knowledge, Solutions…Worldwide. 6 Claims Update Secondary Market Liability Note: Amounts claimed, not settlements or insurance recovery 2006 IMAX Corp. 2007 Celestica Inc. CV Technologies Inc. Southwestern Resources Corp. 2008 SunOpta, Inc. European Minerals Corp. Gildan Activewear Inc. CIBC Arctic Glacier Income Fund American International Group Gammon Gold TVI Pacific $110MM $55MM $500MM $1.7BB $165MM $550MM $160MM $320MM $110MM $320MM $600MM $16MM

8. Marsh—Leadership, Knowledge, Solutions…Worldwide. 7 Claims Update Secondary Market Class Action Settlements *Cross Border TVI Pacific $16MM Claim Southwestern Resources $320MM Claim $15.5MM Settled CV Technologies $110MM Claim $7.1MM Settled SunOpta $110MM Claim* US$11.3MM Settled Orsu Metals (f.k.a., European Minerals Corp.) $55MM Claim Novagold $210MM Claim* $28MM settlement for global class Gildan Activewear $500MM Claim* $22.5MM tentative settlement for global class $2.1MM Settled $2.2MM Settled $25MM Claim $1.3MM Settled Bear Lake Gold

9. Marsh—Leadership, Knowledge, Solutions…Worldwide. 8 Legal Notice The information contained herein is based on sources we believe reliable, but we did not verify nor do we guarantee its accuracy. It should be understood to be general risk management and insurance information only. Marsh makes no representations or warranties, expressed or implied, concerning the financial condition, solvency, or application of policy wordings of insurers or reinsurers nor does Marsh make any representations or warranty that coverages may be placed on terms acceptable to you. The information contained in this presentation provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation, and should not be relied upon as such. Statements concerning tax and/or legal matters should be understood to be general observations based solely on our experience as risk consultants and insurance brokers and should not be relied upon as tax and/or legal advice, which we are not authorized to provide. Insureds should consult their own qualified insurance, tax and/or legal advisors regarding specific risk management and insurance coverage issues. Marsh assumes no responsibility for any loss or damage sustained in reliance of this presentation. Marsh is part of the family of MMC companies, including Guy Carpenter, Mercer, and the Oliver Wyman Group (including Lippincott and NERA Economic Consulting). The materials, data and/or methodologies used in this presentation are proprietary to Marsh. This document or any portion of the information it contains may not be copied or reproduced in any form without the permission of Marsh Canada Limited, except that clients of any of the companies of MMC need not obtain such permission when using this report for their internal purposes, so long as this page is included with all such copies or reproductions. Copyright 2010 Marsh Canada Limited and its licensors. All rights reserved.

10. Leadership, Knowledge, Solutions…Worldwide. M101101 : 2010/11/02