2001 Annual Report

Previous | Table of Contents | Next

Schedule K - Letter From Towers Perrin Summarizing Their Activities for the Fiscal Year Ended March 31, 2001.

PRIVATE & CONFIDENTIAL
VIA COURIER

May 1, 2001

Our Ref: 85384/001/ACS 01

Ms. Bonnie A. Tough
Hodgson Tough Shields DesBrisay O'Donnell
Barristers & Solicitors
36 Toronto Street, Suite 550
Toronto, Ontario
M5C 2C5

Dear Ms. Tough:

HEPATITIS 'C' 86/90 ANNUAL BUDGET 2001-2002

This letter is in response to your request regarding our budget for our services as investment consultant for the fiscal year ended March 2002. As with last year we have included in this budget only the scheduled activities. Should there be the need for additional services (e.g., special reports, revisions, other form of assistance), a separate budget will be established at that time.

The scheduled activities include:

• Day-to-day/When required
  • Interact with Investment Manager and Trustee to resolve any issues within the Investment Guidelines and their application
  • Authorize temporary asset mix positions that are outside of the ranges allowed by the Investment Guidelines, if appropriate
  • Monitor the developments that may affect the ongoing suitability of the Investment Guidelines
  • Perform such administrative and housekeeping duties that are within the rules and spirit of the Investment Guidelines. Otherwise, refer decisions to the Joint Committee or the Joint Committee and the Courts with a recommendation
  • Receive any comment or suggestion from Investment Manager for changes to the Investment Guidelines, mandate or investment program
  • Receive any written disclosure of conflict of interest from any party or agent
  • Receive Investment Manager's policy statements for applicable pooled funds
• Monthly
  • Receive and review Investment Manager reports and portfolio listings
  • Receive and review custodian reports
• Quarterly
  • Receive and review quarterly certificates of compliance from Investment Manager
  • Prepare investment performance report
• Annually
  • Conduct site visit of Investment Manager and review status, issues, etc.
  • Conduct site visit of Trustee and review status, issues, etc.
  • Present investment performance report to the Joint Committee and assist the Joint Committee with the review of the Investment Manager's organization and performance
  • Review any major developments to determine whether changes to the Investment Guidelines, manager structure and mandates are required.

For these activities we would request a budget of $56,000 plus G.S.T.

Please note that:

• Out-of-pocket expenses, travel expenses and applicable taxes are not included in the above.
• We understand that the annual budget has to be approved by the Court and that it will be paid on a monthly basis. The monthly payment including G.S.T., will be $4,993.33.

If you have any questions, please do not hesitate to communicate with us.

Sincerely,

D. Robert Bevan, CA
DRB:jmcb

Direct Dial: 416-960-2752