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1Report, the Order Approving Trustees’ Selection of the Honorable David F. Levi to Serve as Futures2Representative was entered by the Bankruptcy Court on April 10, 2018.36.Fiscal Year and Tax Obligations: The Trust is required by the Internal Revenue Code4to account for and report on its activities for tax purposes on a calendar-year basis. Therefore, the5Trust’s fiscal year is the calendar year. Except where otherwise stated, all reports attached to this6Annual Report cover the Accounting Period. Section 2.2(b) of the Trust Agreement requires the7Trustees to file income tax and other returns and statements in a timely manner, and comply with8all withholding obligations as legally required, including fulfilling requirements to maintain the9Trust’s status as a Qualified Settlement Fund. The Trust has complied with its tax obligations on a10quarterly basis. The 2018 federal tax return was filed by its extended due date of September 16,112019 and the 2019 federal tax return will be filed by its extended due date of September 15, 2020.12The Trust resides in Nevada, and Nevada has no state income tax. Although the Trust is not subject13to tax in California, the Trustees file a tax return in California each year, attaching a copy of the14Trust’s federal tax return, but showing no California taxable income or state tax liability.157.16Annual Report: Section 2.2(c)(i) of the Trust Agreement provides in pertinent part:The Trustees shall cause to be prepared and filed with the BankruptcyCourt, as soon as available, and in any event within 120 days followingthe end of each fiscal year, an annual report containing financialstatements of the Trust (including, without limitation, a statement of thenet claimants’ equity of the Trust as of the end of such fiscal year and astatement of changes in net claimants’ equity for such fiscal year)audited by a firm of independent certified public accountants selected bythe Trustees and accompanied by an opinion of such firm as to thefairness of the financial statements’ presentation of the equity presentlyavailable to current and future claimants and as to the conformity of thefinancial statements with accounting principles generally accepted in theUnited States, except for the special-purpose accounting methods .17181920212223The Trust’s financial statements are prepared using special-purpose accounting methods that24depart from Generally Accepted Accounting Principles (GAAP) in certain respects in order to better25disclose the amount and changes in net claimants’ equity.26278.Audited Financial Statements: In accordance with the requirements of Section2.2(c)(i) of the Trust Agreement, the Trustees have caused the Trust’s financial statements to be28audited by Eide Bailly, LLP, the independent certified public accountants retained by the Trust toCase: 13-31914 Doc# 1896 Filed: 04/24/20 Entered: 04/24/20 15:44:09 Page 5 ofPage 4 of 21161

1perform the annual audit of its financial statements. The Trust’s audited financial statements for the2year ended December 31, 2019 (“Audited Financial Statements”) are attached hereto as Exhibit “A”3and include a Statement of Net Claimants’ Equity, a Statement of Changes in Net Claimants’ Equity,4a Statement of Cash Flows and Explanatory Notes. The Statement of Net Claimants’ Equity, which5is the equivalent of a corporate balance sheet, reflects total assets of the Trust at market value and6on the other comprehensive basis of accounting utilized by the Trust. These Audited Financial7Statements show, among other things, that as of December 31, 2019, total Trust assets were8 512,747,373, total liabilities were 45,337,053, and Net Claimants’ Equity was 467,410,320.99.Claim Report: Section 2.2(c)(ii) of the Trust Agreement provides that, along with the10Audited Financial Statements, the Trustees shall file with the Bankruptcy Court a report containing11a summary regarding the number and type of claims disposed of during the period covered by the12financial statements. The Western Asbestos Settlement Trust Claim Report as of December 31,132019 (“Claim Report”) is attached hereto as Exhibit “B” and notes, among other disclosures, that14during the Accounting Period, the Trust received 930 claims, paid 291 claims, and made settlement15offers on 147 claims.16Section 5.4 of the TDP provides that the Trust shall pay Pre-Petition Default, Settlement,17and Matrix Claims (as defined in the TDP) (hereafter “Pre-Petition Liquidated Claims”)3 “[as] soon18as practicable after the Effective Date.” The vast majority of these claims were paid in 2004 and,19by December 2005, the Trust had paid 99% of all Pre-Petition Liquidated Claims. Proper releases20for two (2) Pre-Petition Liquidated Claims were received during the Accounting Period, which21resulted in payments of 54,868, reducing the remaining number pending a release to eleven (11)22for a total amount unpaid of 120,917. One (1) Pre-Petition Liquidated Claim was paid in February232020 in the amount of 10,397. The representative law firms continue to search for the claimants24and beneficiaries of the remaining ten (10) Pre-Petition Liquidated Claims.252610.Public Inspection: In compliance with Section 2.2(c) of the Trust Agreement, theAnnual Report, including the Audited Financial Statements and Claim Report, has been provided to27283See the Oakland Court’s February 3, 2004 Memorandum of Decision after Confirmation Hearing Docket No. 1265.Case: 13-31914 Doc# 1896 Filed: 04/24/20 Entered: 04/24/20 15:44:09 Page 6 ofPage 5 of 21161

1the Futures Representative, the TAC, the Debtors, and the Office of the United States Trustee with2responsibility for the United States Bankruptcy Court for the Northern District of California. The3Trust has filed the Annual Report, including the Audited Financial Statements and Claim Report,4with the Bankruptcy Court. Accordingly, the Annual Report and related documents have been made5available for inspection by the public in accordance with established procedures.611.Trustees’ Meetings: Article II, Section 4 of the Bylaws provides that the Trustees7shall meet in Nevada, or a state other than California, at least four times per year, as close as8practicable on a quarterly basis. The Trustees held seven (7) meetings during the Accounting Period9(February 22, 2019, March 22, 2019, April 19, 2019, May 24, 2019, July 18, 2019, September 20,102019, and November 22, 2019). The April, May, July and September meetings were held in Nevada,11and the February, March and November meetings were held in Arizona.12131412.Arbitrations: During the Accounting Period, no arbitrations were held pursuant toSection 5.9 of the TDP.13.Payment Percentage: Section 4.2 of the TDP provides that, commencing on the first15day of January, after the Plan has been confirmed and no less frequently than once every three years16thereafter, the Trustees shall reconsider the Payment Percentage to assure that it is based on accurate17current information and may, after such reconsideration, change the Payment Percentage, if18necessary, with the consent of the TAC and Futures Representative. In its April 14, 2004, “Order19Under Fed.R.Bankr.P. 9019 Approving Compromises with Settling Insurers”, the Oakland Court20approved a Payment Percentage to the Trust’s claimants of 31.5%. The Payment Percentage was21increased to 34.2% on January 1, 2006, to 40% on July 24, 2007, and to 44% on February 18, 2010.22The Payment Percentage was reviewed on February 7, 2013 and remained at 44%. The Payment23Percentage was reviewed on September 23, 2014 and increased to 48%. In September 2017, the24Payment Percentage was reviewed and remained at 48%. After completion of the preliminary25review of the Payment Percentage conducted in the Spring of 2018 and the final review in 2019, the26Payment Percentage was increased to 51.1% on May 24, 2019.27An addition to Section 2.3 of the TDP was approved on May 24, 2019 with respect to28Payment Percentage increases by way of the “Amendment of the Western Asbestos Settlement TrustCase: 13-31914 Doc# 1896 Filed: 04/24/20 Entered: 04/24/20 15:44:09 Page 7 ofPage 6 of 21161

1TDP Section 2.3”, as follows: “To the extent that the designated legal representative of a claimant2or heir (or the Trust in the case of in pro per claimants), following reasonable efforts, cannot locate3a claimant or heir within one year from the approval of any additional payment pursuant to Section44.2, the legal representatives shall return all funds, which must be held in client trust accounts, to5the Trust which the Trust shall return to net claimant equity. To the extent the Trust cannot locate6a claimant or heir in pro per within one year from the approval of any additional payment pursuant7to Section 4.2 following reasonable efforts, the entire additional payment shall also be returned to8net claimant equity.” Such language was included in an amendment to the TDP on September 20,92019.1014.Maximum Annual Payment: Section 2.4 of the TDP requires that the Trust calculate11an annual payment limit for claims (“Maximum Annual Payment”) based upon a model of the12amount of cash flow anticipated to be necessary over the entire life of the Trust to ensure that funds13will be available to treat all present and future claimants as similarly as possible. At the May 24,142019 meeting, the Maximum Annual Payment for 2019 was reset to 56,605,355 and the amount15rolled over pursuant to Section 2.5 of the TDP was reset to zero. At the September 20, 2019 meeting,16Section 2.5 of the TDP was amended due to a shortfall in the amount allocated for Disease Category17A (malignant) claims in the MAC Company Category (Minnesota and North Dakota). At the18November 22, 2019 meeting, the Maximum Annual Payment for 2020 was set at 51,132,582.1915.Adjustments for Inflation: The original Payment Percentage approved by the Oakland20Court was based upon projections of future claim payments adjusted annually for inflation.21Beginning in 2006, all claim payments made during a calendar year include a cost of living22adjustment based upon the Federal Bureau of Labor Statistics’ Consumer Price Index for Urban23Wage Earners and Clerical Workers (CPI-W) announced in January each year. At the November2422, 2019 meeting, the CPI-W to be published in January 2020 was approved for use by the Trust in25making the cost of living adjustment for claim payments made in 2020. The CPI-W of 2.3% was26issued on January 14, 2020 and all inflation adjustments are cumulative. Consequently, all claim27payments made during the 2020 calendar year will have a cumulative inflation rate of 34.83% added28to the payment amount.Case: 13-31914 Doc# 1896Filed: 04/24/20 Entered: 04/24/20 15:44:09Page 7 of 21161Page 8 of

1The Trust began indexing the base case values for Economic Loss, Medical Loss, and2Assumed Future Medical Loss and Funeral Expenses in 2018. For claims paid in 2020, the base3case value for Economic Loss is 269,000, for Medical Loss is 326,000, and for Assumed Future4Medical Loss and Funeral Expenses is 122,464.516.Budget and Cash Flow Projections: Prior to the commencement of each fiscal year,6Section 2.2(d) of the Trust Agreement requires the Trust to prepare a budget covering such fiscal7year, and cash flow projections covering the succeeding four fiscal years. The 2020 budget and8four-year cash flow projections were prepared in November 2019. The Trustees approved the 20209budget on November 22, 2019. The Trustees approved the four-year cash flow projections on10February 21, 2020. These were provided to the Futures Representative and TAC pursuant to Section112.2(d) of the Trust Agreement.1217.Facilities Sharing Agreements: As initially described in the Trust’s Third Annual13Report, the Trust and J.T. Thorpe Settlement Trust (“J.T. Thorpe Trust”) entered into a Trust14Facilities and Services Sharing Agreement. The J.T. Thorpe Trust agreed to pay a negotiated15monthly amount and such arrangement was approved by the Oakland Court in the order approving16the Trust’s Third Annual Report. Pursuant to the annual reconciliation of fees presented on17February 22, 2019, the Trust and the J.T. Thorpe Trust agreed that the advance payments would be18 36,000 per month for 2019. The total amount paid to the Trust by the J.T. Thorpe Trust, after19accounts were reconciled for 2019, was 392,172. Pursuant to the annual reconciliation of fees20presented on February 21, 2020, the Trust and the J.T. Thorpe Trust agreed that the advance21payments shall be 37,000 per month for 2020.22As initially described in the Trust’s Seventh Annual Report, the Trust and Thorpe Insulation23Company Asbestos Settlement Trust (“Thorpe Insulation Trust”) entered into a Trust Facilities and24Services Sharing Agreement and the Thorpe Insulation Trust agreed to pay a negotiated monthly25amount. Such arrangement was approved by the Oakland Court in the order approving the Trust’s26Seventh Annual Report. Pursuant to the annual reconciliation of fees presented on February 22,272019, the Trust and the Thorpe Insulation Trust agreed that the advance payments would be 40,00028per month for 2019. The total amount paid to the Trust by the Thorpe Insulation Trust, afterCase: 13-31914 Doc# 1896 Filed: 04/24/20 Entered: 04/24/20 15:44:09 Page 9 ofPage 8 of 21161

1accounts were reconciled for 2019, was 457,006. Pursuant to the annual reconciliation of fees2presented on February 21, 2020, the Trust and the Thorpe Insulation Trust agreed that the advance3payments shall be 40,000 per month for 2020.4As initially described in the Trust’s Tenth Annual Report, the Trust and Plant Insulation5Company Asbestos Settlement Trust (“Plant Trust”) entered into a Trust Facilities and Services6Sharing Agreement and the Plant Trust agreed to pay a negotiated monthly amount.7arrangement was approved by the Bankruptcy Court in the order approving the Trust’s Tenth8Annual Report. Pursuant to the annual reconciliation of fees presented on February 22, 2019, the9Trust and the Plant Trust agreed that the advance payments would be 37,000 per month for 2019.10The total amount paid to the Trust by the Plant Trust, after accounts were reconciled for 2019, was11 449,132. Pursuant to the annual reconciliation of fees presented on February 21, 2020, the Trust12and the Plant Trust agreed that the advance payments shall be 39,000 per month for 2020.1318.14pay valid claims.1519.SuchSettlement Fund: The Settlement Fund was established at Wells Fargo Bank, N.A. toOperating Fund: The Operating Fund was established at Wells Fargo Bank, N.A.16During the Accounting Period, transfers were made from the Settlement Fund to the Operating Fund17to pay anticipated operating expenses of the Trust. In February 2019, Wells Fargo Bank experienced18a server disruption that affected certain areas of the United States. Although it did not impact the19Trust or its ability to access funds, the Trustees decided that it was prudent to place funds with20another financial institution to ensure that funds for short-term operating costs, including payroll,21would be available in the event of future disruption. Therefore, the Trust deposited 250,000 with22Sierra Pacific Federal Credit Union in Reno, Nevada.2320.Set Aside Funds: The Trust continues to maintain separate funds for the defense and24indemnification of Ordway and Milwaukee, Van Packer, and Employer Reassurance Corporation25as required by Trust Documents and/or settlement agreements. These accounts hold the legally26required amounts in cash and securities for certain indemnification obligations.27Accounting Period, no claims were made against, and no payments were made from any of these28funds.Case: 13-31914Doc# 1896Filed: 04/24/20 Entered: 04/24/20 15:44:09of Page161 9 of 21During thePage 10

121.Indemnity Fund (Self-Insured Retention):Section 4.6 of the Trust Agreement2provides that the Trust shall indemnify the Trustees, Trust’s officers and employees, Futures3Representative, TAC and each of their respective agents. The Trustees, Futures Representative,4TAC and their respective agents have a first priority lien upon the Trust’s assets to secure the5payment of any amounts payable to them pursuant to Section 4.6. In addition to the first priority6lien on the Trust’s assets, in 2004, the Trust established an indemnity fund at Wells Fargo Bank,7N.A. in the amount of 40,000,000 to provide liability coverage for the Trustees, Futures8Representative and TAC, and their agents to pay the expenses, costs and fees (including attorneys’9fees and costs) associated with defending any judicial, administrative, or arbitrative action, suit or10proceeding, as described in all the Trust’s Annual Reports. All interest earned by the fund is11returned to the Trust quarterly.12As described in the Trust’s Fifteenth Annual Report, the Trust purchased a Directors and13Officers/Errors and Omissions policy in November 2018 and a Directors and Officers/Errors and14Omissions Excess DIC policy in 2019. Further, in November 2018, the Indemnity Agreement was15amended to provide that any indemnified expenses shall be paid primarily and first from insurance16proceeds and then from the Indemnity Fund or other assets of the Trust. If the Indemnity Fund or17other assets have funded such expenses prior to payment by insurance proceeds, then such expenses18shall be reimbursed to the Indemnity Fund or other assets from the insurance proceeds. The19Indemnity Agreement was also amended to reflect that the insurance premiums and deductibles on20the insurance policies may be paid from the Indemnity Fund or other assets of the Trust.2122.Special Budget Fund: A Special Budget Fund was approved in the Oakland Court’s22May 18, 2005 Order to Approve and Settle Western Asbestos Settlement Trust’s Annual Report and23Accounting, Audited Financial Statements, and Claim Report; and to Approve Resolution24Regarding the FAIR Act Docket No. 1595. There has been no change in this fund during the25Accounting Period.2623.27Settlement Fund Control Account and Security Interest Documents: Section 4.7 ofthe Trust Agreement grants the Trustees, Futures Representative and TAC a security interest in the28assets of the Trust to secure the indemnification obligations of the Trust to such parties. TheCase: 13-31914 Doc# 1896 Filed: 04/24/20 Entered: 04/24/20 15:44:09 Page 11ofPage161 10 of 21

1Trustees, Futures Representative, TAC and each of their respective agents have a security interest2in the assets of the Trust. The Trust entered into five separate Control Agreements in 2005 as3described in the Trust’s Second Annual Report.4At the November 22, 2019 meeting, the Trustees, the TAC and the Futures Representative5executed two separate Securities Account Control Agreements between the parties and Wells Fargo6Wealth Management and Wells Fargo Institutional Retirement Trust (“IRT”) to perfect the security7interest in the assets maintained at Wells Fargo, including the Indemnity Fund, accounts, securities,8financial assets, investment property and security entitlements, among other things. Wells Fargo9subsequently executed the Agreements, which supersede any previous Agreements.1024.Trust Management Update: As described in the Trust’s Fifteenth Annual Report, Sara11Beth Brown retired as Executive Director of the Trust effective May 4, 2019. The Claims Manager,12Laura Paul, served as Acting Executive Director pending the appointment of Ms. Brown’s13permanent successor. The Trustees retained a search professional to conduct a search for Ms.14Brown’s replacement. After conducting interviews with several candidates, the Trustees selected15and appointed Steven L. Bray as the Trust’s Executive Director effective January 13, 2020.1625.Civil Investigative Demand: As described in the Trust’s Fifteenth Annual Report, the17Department of Justice issued a Civil Investigative Demand (“CID”) to the Trust on September 12,182018 pursuant to the False Claims Act which focused on whether the Medicare Program has been19reimbursed in accordance with the Medicare Secondary Payer act for payments made by the Trust20to beneficiaries. The Trust and the Department of Justice agreed upon a protocol to limit the21production of data to those claimants who had exposure to Western Companies on or after 12/5/198022(effective date of the statute at issue), whose first payment from the Trust was on or after 1/1/200923(statute of limitations limit), and who were not identified by vendors for the Center for Medicare24and Medicaid Services (“CMS”) as having paid their Medicare obligations. The Trust provided25notice to affected beneficiaries with an opportunity to object. To date, the Trust has received no26objectio

OF WESTERN ASBESTOS SETTLEMENT TRUST The Trustees of the Western Asbestos Settlement Trust ("Trust") hereby submit this Sixteenth Annual Report and Accounting ("Annual Report") covering Trust activities occurring from January 1, 2019 to and including December 31, 2019 ("Accounting Period"), and certain activities of the Trust that .