NOTICE OF TERMINATION BY THE OWNER FOR CAUSE

Below are the reasons why Pro-Active were deemed in breach of their contract and the 20 February claim settlement agreement as stated in a letter sent by the Ministry of Works and Engineering to Pro-Active president and general manager Arthur Ebbin on August 24:

?1) Persistent and repeated failure to provide an adequate workforce sufficient to meet the Substantial Completion date established by the Claim Settlement Agreement of the 20 February, 2004.

2) Substantial breaches of provisions of the Contract Documents and the 20 February, 2004 Claim Settlement Agreement. We refer you to our several requests for compliance per correspondence by letters, including but not limited to the following: Contract Articles 5.2 Award of Subcontracts And Other Contracts For Portions Of The Work. 5.3 Subcontractor Relations; Specification Sections 01040: and 20 February 2004 Claim Settlement Agreement including Clauses 9, 10 and 15.

?You (Pro-Active Management Systems, or PAMS) have been notified in the past of serious problems in these areas and the failure to pay subcontractors in accordance with subcontract agreements which is a further ground for termination for cause under General Condition paragraph 14.2.1.2. PAMS has failed to correct problems and has failed to take necessary steps to construct the work in accordance with the contract documents and contract deadlines.?