Notes Fourteen: COMMITMENTS AND CONTINGENCIES

The Company is one of numerous defendants in various asbestosrelated personal injury lawsuits. These cases generally seek unspecified damages for asbestos-related diseases based on alleged exposure to products previously manufactured by the Company and others, and, at this time, the Company is generally not aware of the extent of injuries allegedly suffered by the individuals or the facts supporting the claim that injuries were caused by the Company's products.Based upon the information available to it at this time, the Company is not in a position to evaluate its potential exposure, if any, as a result of such claims.Hence,no amounts have been accrued for loss contingencies related to these lawsuits in accordance with SFAS No. 5,"Accounting for Contingencies."The Company continues to vigorously defend all such lawsuits.As of November 30, 2004, the Company was a defendant in asbestos-related cases involving 18,298 claimants, compared to 17,447 claimants as of November 30, 2003. The Company is not in a position to estimate the number of additional claims that may be filed against it in the future. For the fiscal year ended November 30, 2004, there were new claims involving 1,633 claimants, dismissals and/or settlements involving 782 claimants and no judgments. Net costs and expenses incurred by the Company for the fiscal year ended November 30, 2004 in connection with asbestos-related claims were approximately $500,000.

The Company is one of numerous defendants in various silica-related personal injury lawsuits. These cases generally seek unspecified damages for silica-related diseases based on alleged exposure to products previously manufactured by the Company and others, and, at this time, the Company is not aware of the extent of injuries allegedly suffered by the individuals or the facts supporting the claim that injuries were caused by the Company's products. Based upon the information available to it at this time, the Company is not in a position to evaluate its potential exposure, if any, as a result of such claims. Hence, no amounts have been accrued for loss contingencies related to these lawsuits in accordance with SFAS No. 5. The Company continues to vigorously defend all such lawsuits. As of November 30, 2004, the Company was a defendant in silica-related cases involving 8,226 claimants, compared to 6,847 claimants as of November 30, 2003. The Company is not in a position to estimate the number of additional claims that may be filed against it in the future.For the fiscal year ended November 30, 2004, there were new claims involving 1,966 claimants, dismissals and/or settlements involving 587 claimants and no judgments. Net costs and expenses incurred by the Company for the fiscal year ended November 30, 2004 in connection with silica-related claims were approximately $400,000.

In April 2003, the Company was served with a complaint in an action brought by J.Ray McDermott, Inc., J.Ray McDermott, S.A. and SparTEC, Inc. (collectively "McDermott") in the District Court of Harris County, Texas against the Company and two co-defendants, in connection with certain coatings supplied by the defendants in 2002 for an offshore production facility known as a SPAR being constructed by McDermott for Dominion Exploration and Production, Inc. and Pioneer Natural Resources USA, Inc. (collectively "Dominion").McDermott alleges that the Company's co-defendants improperly supplied coatings which contained lead and/or lead chromate, and that as a result the Company and its co-defendants are liable to McDermott for all costs associated with removal and replacement of those coatings.McDermott's petition as filed alleged a claim for damages in an unspecified amount; however, McDermott's economic expert subsequently estimated McDermott's damages at approximately $21,000,000, a figure which the Company contests. Trial of this matter is expected in August 2005. The Company believes that it has meritorious defenses to this action. Based upon the information available to it at this time, the Company is not in a position to evaluate the ultimate outcome of this matter.

Separately, in May 2003, Dominion brought an action against the Company in Civil District Court for the Parish of Orleans, Louisiana as owners of the SPAR seeking additional damages allegedly sustained by Dominion resulting from delays in McDermott's delivery of the SPAR caused by the removal and replacement of coatings containing lead and/or lead chromate. Dominion contends that the Company made certain misrepresentations and warranties to Dominion concerning the lead-free nature of those coatings.Dominion's petition as filed alleged a claim for damages in an unspecified amount; however, Dominion's economic expert recently estimated Dominion's damages at approximately $128,000,000, a figure which the Company contests.This matter is in discovery and no trial date has yet been established. The Company believes that it has meritorious defenses to this action. Based upon the information available to it at this time, the Company is not in a position to evaluate the ultimate outcome of this matter.

In addition, certain other claims, suits and complaints that arise in the ordinary course of business, have been filed or are pending against the Company.Management believes that these matters are either adequately reserved, covered by insurance, or would not have a material effect on the Company's financial position or its results of operations if disposed of unfavorably.

The Company is subject to federal, state and local laws and regulations concerning the environment and is currently participating in administrative proceedings at several sites under these laws.While the Company finds it difficult to estimate with any certainty the total cost of remediation at the several sites, on the basis of currently available information and reserves provided, the Company believes that the outcome of such environmental regulatory proceedings will not have a material effect on the Company's financial position or its results of operations.