Proceedings

IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, CHAPTER S.5
AND
IN THE MATTER OF
FRANK MERSCH AND PETER CUNTI
NOTICE OF HEARING
(Section 127 of the Securities Act)

TAKE NOTICE that the Ontario Securities Commission (the "Commission") will hold a hearing pursuant to section 127 of the Securities Act, R.S.O. 1990, c.S.5 (the "Act") at its offices on the 8th floor, 20 Queen Street West, Toronto, Ontario, commencing on Friday, May 15, 1998, at 9:00 a.m., or as soon thereafteras the hearing can be held,

TO CONSIDER:

(a) whether, pursuant to section 127 of the Act, it is in the public interest for the Commission to make an order:

(i) that the exemptions provided for in sections 35, 72, 73 and 93 of the Act shall not apply to one or both of the respondents for such time as the Commissionmay direct; and/or

(ii) that the registration of the respondent Frank Mersch be suspended or restricted for such period as the Commission may order, or that terms and conditions beimposed on his registration; and/or

(iii) such other order as the Commission may deem appropriate; and

(b) such other matters as the Commission considers appropriate,

BY REASON of the allegations as set out in the Statement of Allegations made by Staff of the Enforcement Branch of the Commission;

AND TAKE NOTICE that any party to the proceedings may be represented by counsel if it attends or submits evidence at the hearing;

AND TAKE NOTICE that, upon failure of any party to attend at the time and place of the hearing, the hearing may proceed in the absence of that party andthat party is not entitled to any further notice of the proceeding.

May 7th, 1998.

"Rose Gomme"