2001 Annual Report

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Deloitte & Touche

20. Deloitte & Touche was appointed auditor of the Trust Fund pursuant to the Orders of the Courts. The Joint Committee recommends the continuation of this appointment.

21. The Courts approved preliminary start-up fees of $39,013.00 and an annual audit budget for Deloitte & Touche of $45,000.00 for the year ended March 31, 2001. As part of its annual audit, Deloitte & Touche audited the disbursements to Class Members for the 6 months ending March 31, 2001. A copy of this 6 month disbursement audit is attached as Schedule "B" (the "March 31, 2001 Disbursement Audit").

22. In addition to the audit of the Trust Fund, the Joint Committee requested the following other services from Deloitte & Touche:

i) An audit of the disbursements to Class Members following the first 6 months of such payments. Attached hereto and marked as Schedule "C" is a copy of the audit report of Deloitte & Touche of the disbursements to Class Members for the 6 months ended September 30, 2000 (the "September 30, 2000 Disbursement Audit");

ii) A cost review (not an audit) of the expenses charged by CBS and Hema-Quebec to the Trust Fund. Deloitte & Touche agreed to a charge of up to $10,500.00 for this work. Attached hereto and marked as Schedule "D" and "E" respectively, is the Report of the Cost Review of CBS conducted by Deloitte & Touche and the Report of the Cost Review of Hema-Quebec conducted by Deloitte & Touche;

iii) A cost review (but not an audit) of the expenses charged by the Administrator to the Trust Fund. Deloitte & Touche agreed to conduct this cost review for a fee up to $10,500.00. Attached hereto and marked as Schedule "F" is a copy of the Cost Review of the Administrator.

iv) The preparation of the annual financial statements. Deloitte & Touche agreed to prepare the financial statements at a cost up to $10,500.00 in Year 1. It is anticipated that this cost will decrease sharply in following years once the methodology has been established. Attached hereto and marked as Schedule "A" is a copy of the financial statements prepared and audited by Deloitte & Touche;

v) Deloitte & Touche provided miscellaneous advice on financial and accounting matters as they arose during the first 6 months of the Trust Fund. Attached hereto and marked as Schedule "G" is an invoice which is recommended for payment by the Joint Committee in the amount of $15,264.34 in respect of these miscellaneous services;

23. The final charges for the audit and review work of Deloitte & Touche are not yet finalized but will be within the estimates set out in paragraphs 21 and 22 above. Full details of actual costs will be provided to the Court together with a request for payment at a later date.

24. Deloitte & Touche proposes and the Joint Committee recommends that its audit budget for the year April 1, 2001 to March 31, 2002 be identical to its previous budget at $45,000.00. The Joint Committee anticipates that Deloitte & Touche will be asked to perform other tasks similar to those referred to above and that fees will be of a similar nature. All such extra charges will be subject to specific approval by the Court. Attached hereto and marked as Schedule "H" is a letter dated May 1, 2001 from Deloitte & Touche setting out their proposed budget for the year commencing April 1, 2001.