May 8, 1998

Dear :

It was great meeting with you to discuss your pending retirement from AT&T. This letter will elaborate on the issues we discussed, and document the plan of action we would take if you selected us as your financial advisors.

Our firm would be an asset to you in helping to achieve your future financial and retirement goals and needs. We will service your account in the following way.

1. We will determine the proper decision about how to distribute your AT&T retirement and savings plans. This decision will be made by using both future cash flow needs blended in with tax planning. We will have lengthy discussions with you to make sure you were well informed as to the logic of our decisions.

2. We will determine your future cash flow needs through the creation of a financial plan. This also would be done through conversations with you.

3. We will advise you as to our investment philosophies. After you understood our philosophies (which by the way are quite simple and logical), we will determine your personal risk parameters. This will be achieved through a series of interviews.

4. We will then set up various investments that will be geared toward all of the issues discussed. We will make sure that the investments were consistent with your current and future cash flow needs.

5. Once the plan is completed we will monitor your account on a daily basis.

It is important that you understand the following items regarding our firm:

1. We work solely for you, our client. We choose investments suited for you and only you. Many advisors recommend products that generate commissions. We do not sell any products, we only sell advise. Our general goal is to advise low or no commission type products.

2. Also, we attempt to find the product that produces minimal commissions to the broker. We do this in the following ways.

A. We rarely sell investments that are in your account. We like to hold investments for long periods. This low turnover approach is an important method in holding down transaction costs.

B. We prefer to work with TD Waterhouse Institutional Services to keep costs at a minimum.

3. The following is a summary of our professional affiliations and costs for our services:

A. We are registered with the State of New Jersey as Registered Investment Advisors.

B. I am a licensed Certified Public Accountant and hold a Personal Financial Specialist (PFS) certificate.

C. Our fees for these services are 1% of managed assets. We generally charge for the planning work as well, but, because of the size of your account, we would waive our planning fee.

Well, this turned into an extremely long letter. I look forward to hearing from you soon. I certainly hope that we will begin a long and mutually beneficial association.



Ronald R Redfield CPA, PFS