2002 Annual Report

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Deloitte & Touche

16. 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.

17. The Courts approved an annual budget for Deloitte & Touche of $45,000.00 for the year ended March 31, 2002. As part of its annual audit, Deloitte & Touche audited the disbursements to Class Members for the 6 months ending September 30, 2001. The budget for this work was $6,500.00. A copy of this 6-month disbursement audit is attached as Schedule "C" (the "September 30, 2001 Disbursement Audit").

18. Deloitte & Touche also audited the disbursements to Class Members for the six months ending March 31, 2002 as part of its annual audit. Attached as Schedule "D" is this 6-month disbursement audit (the "March 31, 2002 Disbursement Audit").

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

i) 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 per cost review for this work. Attached hereto and marked as Schedule "E" and Schedule "F" respectively, is the Report of the Cost Review of CBS conducted by Deloitte & Touche and the Report of the Cost Review of Héma-Quebec conducted by Deloitte & Touche;

ii) 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 of up to $10,500.00. Attached hereto and marked as Schedule "G" is a copy of the Cost Review of the Administrator.

iii) The preparation of the annual financial statements. Deloitte & Touche agreed to prepare the financial statements at a cost of up to $10,000.00 in Year 2. Attached hereto and marked as Schedule "B" is a copy of the financial statements prepared and audited by Deloitte & Touche;

20. The actual costs incurred by Deloitte & Touche in preparing the Annual Audit was $45,000.00, in accordance with its budget. The costs incurred in preparing the 6-month audit were $4,000.00, which is $2,500.00 under budget. Deloitte & Touche incurred $10,000.00 in preparing the Financial Statements of the Trust Fund. Deloitte & Touche incurred $6,000.00, $6,500.000 and $7,500.00 for the expense review of the Administrator, CBS and Héma-Quebec respectively. A copy of the invoices for the work of Deloitte & Touche in Year 2 are attached as Schedule "H". The Joint Committee requests payment of those invoices plus applicable taxes for a total amount of $84,530.00.

21. Deloitte & Touche proposes and the Joint Committee recommends that its audit budget for the year April 1, 2002 to March 31, 2003 be $48,000.00, exclusive of taxes, which represents a $3,000.00 increase from Year 2 due to additional time, which was incurred over Year 1 and Year 2 to complete the required tasks and is expected to be incurred in Year 3.

22. Deloitte & Touche proposes and the Joint Committee recommends that the 6-month audit of the disbursements to claimants be provided at a cost of up to $8,000.00, exclusive of taxes.

23. The Joint Committee anticipates that Deloitte & Touche will be asked to perform other tasks similar to those referred to above in Year 3. Deloitte & Touche proposes and the Joint Committee recommends that the fees for these additional services will be set as follows:

i) A cost review (not an audit) of the expenses charged by CBS and Héma-Quebec to the Trust Fund for a charge of up to $8.000.00 and $10,000.00, exclusive of taxes, respectively.

ii) A cost review (but not an audit) of the expenses charged by the Administrator to the Trust Fund for a fee of up to $9,000.00, exclusive of taxes.

iii) The preparation of the annual financial statements for a fee of up to $10,000.00, exclusive of taxes.

24. Attached hereto and marked as Schedule "H" is a letter, dated June 4, 2002 from Deloitte & Touche setting out the proposed Deloitte & Touche Annual Budget for the year commencing April 1, 2002. Any extra charges will be subject to specific approval by the Court.