1. An analysis of all operations should be done with the creation of "hurdle rates" as to profit contribution".

2. A hurdle rate of profit generation should be determined for each operation or division.

3. Any division or subsidiary not meeting the "hurdle rate" of profit generation should be set to the side for further analysis, or eliminated on a prima facia basis:

3(a). The purpose of this is to bring individual attention to any division or subsidiary not meeting the hurdle rate. The purpose being to define why it is not meeting its hurdle rate. And can it be made to hit its hurdle rate. If so, how?

3(b). Define if the Division or Subsidiary can be improved in performance to meet the profit objectives of the Corporation. ( Be aware that any overhead allocation given to a division or subsidiary in the way of corporate overhead, which will not be eliminated will continue to be an encumberance on Connacher.)

4. For any Subsidiary or Division which is to be considered for retention, specific analaysis and an operational objectives with an operational plan for attaining the objectives must be performed, considered by the relevent decision makers and final determination made as to divestment or retention.

It would be my assumption that this process has already been completed by Management and what we are now seeing is the execution of the plan findings in order to provide for maximum cash generation in order to support the Corporation going forward. If not, then we are truly in trouble as such would indicate that the Corporation is being "flown by the seat of somebodys pants".

Brian