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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 12 &amp;#8212;  Commitments and Contingencies&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In March&amp;#160;2009, GTL was served in the Jersey Islands with an injunction obtained by FG Hemisphere
   Associates LLC (&amp;#8220;FG Hemisphere&amp;#8221;), which is seeking to enforce two arbitration awards made in 2003
   by an arbitral tribunal operating under the auspices of the International Court of Arbitration
   against the DRC and Soci&amp;#233;t&amp;#233; Nationale D&amp;#8217;Electricit&amp;#233; for $108.3&amp;#160;million. FG Hemisphere asserts that
   G&amp;#233;camines (a partner in GTL) is an organization of the DRC and that FG Hemisphere is entitled to
   enforce the arbitral awards in the Jersey Islands against any assets of G&amp;#233;camines and the DRC
   located in that jurisdiction (including monies paid or to be paid by GTL to G&amp;#233;camines or the DRC).
   GTL has been enjoined from making payments to the DRC and G&amp;#233;camines under the Long Term Slag Sales
   Agreement between GTL and G&amp;#233;camines. The Company does not believe the Royal Court of Jersey (the
   &amp;#8220;Court&amp;#8221;) has jurisdiction over the assets of GTL, including monies paid or to be paid to G&amp;#233;camines.
   A hearing was held on this issue in June&amp;#160;2010, but the Court has not yet delivered its decision.
   Until that decision is delivered, GTL will continue to comply with the terms of the injunction. As
   a result, the amount due from GTL to G&amp;#233;camines (included in Accounts payable on the Unaudited
   Condensed Consolidated Balance Sheets) has increased to $57.7&amp;#160;million at June&amp;#160;30, 2010 from $23.3
   million at December&amp;#160;31, 2009. While there can be no assurances with respect to the final outcome of
   this process, the Company believes that, based on the information currently available to it, this
   matter will not have a material adverse effect upon its financial condition, results of operations
   or cash flows.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The Company has potential contingent liabilities with respect to environmental matters related to
   its former Precious Metals Group (&amp;#8220;PMG&amp;#8221;) operations in Brazil. The Company has been informed by
   the purchaser of the PMG operations of potential environmental issues at three of the operating
   locations in Brazil. Environmental cost sharing arrangements are in place between the original
   owner and operator of those PMG operations, the Company and the subsequent purchaser of the PMG
   operations. The Company has reviewed the limited information made available to it on the
   environmental conditions and is awaiting more detailed information from the purchaser of PMG. The
   Company cannot currently evaluate whether or not, or to what extent, it will be responsible for any
   remediation costs until more detailed information is received.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The Company is subject to a variety of environmental and pollution control laws and regulations in
   the jurisdictions in which it operates. As is the case with other companies in similar industries,
   the Company faces exposure from actual or potential claims and legal proceedings involving
   environmental matters. A number of factors affect the cost of environmental remediation, including
   the determination of the extent of contamination, the length of time the remediation may require,
   the complexity of environmental regulations, and the continuing improvements in remediation
   techniques. Taking these factors into consideration, the Company estimates the undiscounted costs
   of remediation, which will be incurred over several years, and accrues an amount consistent with
   the estimates of these costs when it is probable that a liability has been incurred. At June&amp;#160;30,
   2010 and December&amp;#160;31, 2009, the Company has recorded environmental liabilities of $2.5&amp;#160;million and
   $2.8&amp;#160;million, respectively, related to remediation and decommissioning at the Company&amp;#8217;s closed
   manufacturing sites in Newark, New Jersey and Vasset, France. In addition, at June&amp;#160;30, 2010, the
   Company has a $1.3&amp;#160;million environmental liability associated with the Joplin, Missouri site
   acquired in the EaglePicher Technologies acquisition. Although it is difficult to quantify the
   potential impact of compliance with, or liability under, environmental protection laws, the Company
   believes that any amount it may be required to pay in connection with environmental matters is not
   reasonably likely to exceed amounts accrued by an amount that would have a material adverse effect
   upon its financial condition, results of operations or cash flows.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;From time to time, the Company is subject to various legal and regulatory proceedings, claims and
   assessments that arise in the normal course of business. The ultimate resolution of such
   proceedings, claims and assessments is inherently unpredictable and, as a result, the Company&amp;#8217;s
   estimates of liability, if any, are subject to change and actual results may materially differ from
   the Company&amp;#8217;s estimates. The Company&amp;#8217;s estimate of any costs to be incurred as a result of these
   proceedings, claims and assessments are accrued when the liability is considered probable and the
   amount can be reasonably estimated. The Company believes the amount of any
   potential liability with respect to legal and regulatory proceedings, claims and assessments will
   not have a material adverse effect upon its financial condition, results of operations or cash
   flows.
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