(a) Operating leases and other

The Company has total commitments of $19,820,000 under operating leases for properties and equipment. Minimum annual amounts under these leases are as follows: 2011 – $3,788,000; 2012 – $3,103,000; 2013 – $2,625,000; 2014 – $2,029,000; 2015 – $1,834,000 and thereafter $6,441,000.

(b) Legal claims

The Company and its subsidiaries are involved in various legal actions which arise out of the ordinary course and conduct of its business. Management believes any potential liabilities that may result from these actions have been adequately provided for and are not expected to have a material adverse effect on the Company’s financial position or its results