Really Official M & K Letterhead - 1123 Legitimate Lane - Saskatoon, SK, V1R 4BK March 27 2012 Attn: Ms.

Tanya Lee 3465 Ocean Street Victoria, BC, Canada G5H 6H2

Dear Ms. Lee, SUBJECT: BAYSIDE SHOPPING CENTER PROJECT UPDATE Last time we spoke I informed you that we had broken ground on the foundation for the Bayside shopping center in Vancouver. At this point the excavation process is finished and the project is over half-way complete. M & K is committed to providing you with the highest quality service and making the best effort to finish the project on time and within budget. As important projects like this progress we make sure to re-evaluate timelines and make sure to factor in unforeseen variables. This allows us to provide our clients with the most up-to-date and accurate information. In regards to the Bayside shopping center, two of these variables have been encountered and they could have an effect on the timeline weve discussed previously. Firstly, Environment Canada is forecasting rain for the next 10 days. Wet weather typically slows progress, but our contractors are used to working in these conditions and will make the best effort to avoid delays. The second issue thats been encountered is a driver strike at our concrete supplier that could delay delivery times. There are two options available to remedy this problem, Id like for you to let me know which option you prefer. Our concrete supplier is Atlas Concrete. M & K has used Atlas for many years because of their high product quality and competitive prices. Under these special circumstances, it may be best to take advantage of another concrete supplier (ABC Concrete in Surrey) who can deliver the product on time and match the prices available from Atlas. The downside is that the contract with Atlas will need to be broken at a cost of $1300. Alternatively, we can wait and see if the drivers at Atlas can resolve the strike and continue to deliver the product at the negotiated price. There is no way to predict a timeline for the strike to end. For this reason, I recommend that the additional cost to use ABC Concrete is absorbed to keep the project on schedule. I will provide you with a revised timeline and cost estimate for both options and allow you a couple of days to consider them. M & K thanks you for your business and we will continue to strive to provide you with the best quality service. I will call you at the end of this week (Friday the 30th) to discuss the options with you and make a decision.

Sincerely, James Cocks. P. Eng Branch Manager M & K Engineering