Work Progress and Action Plan

Our Ref: xxx

Date: xxx

To                    :           xxx Mideast

                                   Oman Branch

Attention          :           Mr. xxx Sing

Project             :           xxx Building, Oman

Subject                 : Work Progress and Action Plan

Our references

1. Xxxx letter ref: xxx dated 9^th April xxxx
2. Xxxx letter ref: xxx dated 19^th April xxxx
3. Xxxx letter ref: xxx dated 26^th April xxxx
4. Xxxx letter ref: xxx dated 17^th May xxxx
5. Xxxx letter ref: xxx dated 1^st June xxxx

Dear Sir,

Following the meeting held on the 7^th of June xxxx along with the consultant and the client, and the clear intention shown from the client to receive pods at the earliest possible, we would like to clarify that Xxxx has been pushing for the past four months to secure all the necessary prerequisites to start production. The delay in starting production has a direct impact on our factory floor as we have booked production space for your project for the past months and this has impacted other running projects production rate without any benefit for us during all the previous period. The delay was and remains out of Xxxx responsibility as highlighted in our referenced letters above and detailed below.

Since the inspection of the mockup on 4-Mar-xxxx, we have been and we are still highlighting the fact that production cannot start until we have complete approvals on all materials to allow procurement to proceed, especially considering the fact that long lead items will require 10 to 12 weeks to be secured.

We have received a first set of mockup comments on 21-Mar-xxxx, and a second set of comments on 4-May-xxxx, both these sets were contradictory.

Due to this we have insisted on receiving a clear list of final approved materials on which we can base our procurement, however to this date, approval on materials are still elusive with general comments like “approvals subject to operator review” and other conflicting comments that prevent us from proceeding with procurement.

During this entire period of more than three months we have been pushing to get clarity on materials and have issued a number of letters (Ref. a to e) to highlight our major concerns relating to our inability to start procurement or production due to the lack of proper approvals on materials and drawings. We have not received a reply to any of our letters.

We again remind you that we cannot start production until all materials are procured, and procurement cannot be completed until there is a final approval on the list of material from all parties including the operator.

Xxxx will extend you with all the support you need to finalize the design and material selection of the pods, however we will not be responsible for any direct or indirect consequences resulting from the lack of finalization of the approvals on your part and your continuous disregard to our letters and raised flags.

We have attached a detailed “Situational Report” highlighting the current status on the project and what is required to allow us to proceed further, we urge you to address it with the appropriate urgency.

Thanks,

On behalf of Xxx LLC

xxx

Project Manager