Contract Letter Notification of Audit

May 25, 20xx

Mr. Dominic Rafael

President and CEO

Jenson Structures Inc.

505 Granville Street, 12th Floor

Vancouver, British Columbia

Canada V6C 2R6

Dear Mr. Rafael:

Re: Notice of Intent To Conduct An Audit

Further to our recent phone conversation, this is to formally advise you that the Olympic Construction Committee has decided to request an audit of the accounting practices of Jenson Structures Inc. The audit will commence immediately and will be performed on behalf of the OCC by Taylor & Hanson Auditing Services Inc. of Vancouver.

As you know, this audit was prompted by some serious invoice/work order discrepancies that were noted during a number of our transaction-sampling mini-audits that were conducted over the past six months. When briefed on the results of these mini-audits, the OCC decided that an immediate audit of Jenson’s accounting practices and procedures with respect to invoicing was warranted.

The audit will be conducted in full accordance with the OCC’s contract administration and control policy which is an addendum to all of our construction contracts. Among other things, that policy states that “…all outstanding invoices submitted by the company being audited will be held in abeyance until such time as the results of the audit are known.” Also in accordance with the policy, “… depending on the results of the audit, it will be at the Committee’s sole discretion to determine when, and to what degree, any payments will be made to cover any outstanding invoices.”

We look forward to your complete cooperation with the auditors so that the audit can be conducted quickly and concluded as soon as possible.

If you have any questions about the audit process please feel free to contact the Project Senior Auditor, Janice Gonzalez, at 604-459-4111.

Sincerely,

Gordon Cranston

Chairman, OCC Accountability Committee