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Mr. Jim Maitland -5~

C. STAFFING, DURATION AND COSTS

' We propose that the study be carried out jointly by the staff of Thorne
Stevenson & Kellogg, Management Consultants and Thorne Riddell, your
auditors.

Mr. Lawrence Chen, a Principal in Thorne Stevenson & Kellogg's systems
Practice, will have overall responsibility for this Study and will carry out the
analysis and reporting functions. Mr. Chen has conducted many similar
assignments for public and Private sector clients. He is familiar with the Basic
Four systems and microcomputers.

Mr. James Topham, a chartered accountant and the Manager of Thorne
Riddell's Microcomputer Group in Vancouver, will be involved in documenting
your current systems and in the interviews.

Resumes of Mr. Chen and Mr. Topham are attached as Appendix A.

We are prepared to start the study immediately and expect the elapsed
time for this study to be approximately four to five weeks. Our fees and
expenses for this project are estimated to be $7,500. Mr. Topham is expected to
contribute about 35 hours to this Project. His time will be dealt with separately
as part of their overall auditing services.

Appendix B outlines our standard terms and conditions.

Yours sincerely,

Thorne Stevenson & ‘Kellogg
a

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Lawrence Chen
Principal

LC/de

Enclosures

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