August 6, 2010

Soriano Construction Company1103 Miguel Street, Piles, MakatiPhilippines851-43-44

Mr. Gabby D. UntalanChief Executive OfficerSan Agustin Supermarket1001 Dona Soledad, Don Bosco, Paranaque

Dear Mr. Untalan:

I write a letter to inform you of the ongoing development in the construction of the San Agustin Supermarket.

Included with this letter is the progress report of the project from the past four months of the construction up to the present. We also estimated the project accomplishment for the next two months. In line with this, we included the tables, graphs and pictures of the project to support the details for the progress report.

We are confident in our ability to finish this project efficiently. Should you have any questions, feel free to call the number above at any time.

Thank you.

Very truly yours,

Engr. Joseph M. Pasag

Construction of San Agustin Supermarket

Progress Report: June – July 2010

In our letter dated July 6, 2010 we reported that the Ground Floor of the San Agustin Supermarket is already finished. Parts of the ground floor which are constructed include the following:

Supermarket Food Court Appliance Center Bowling Center

Construction of the Business Center, Surplus and Fitness First was also in line to be accomplished.

We would like to inform you that unfinished parts of the ground floor which are the Business Center, Surplus and Fitness First as of now are finished already. On the other hand, construction of the Upper Ground Floor had already started. As of now, five stall capacities are done since last month or approximately thirty days. Therefore, we can say that our company can finish five stalls per month. If you will allow us, we could fasten this process by adding more workers. As you already know, this will cause a drastic increase in the cost of the project. You could refer to Appendix – A of this report for further details. As a reply to your request last month, we included an additional space in the Upper Ground Floor for the Department Store. Instead of four by four stall measurement, we made it to six by six stall measurement as you have instructed us to do. So far, no problems or other things that will slow the speed of construction had been encountered.

In one month time, we can assure you that another five stalls will be finished. The stall for National Bookstore will be our next target to be accomplished. We will assure you that this project will run smoothly. You could refer to Appendix – B to check for the floor plan of this project. I have also included several pictures for your convenience. We will inform you of any progress in the near future.

Appendix A

Number of Workers Work Assignment Amount of Days Completed

Cost

Twelve Department Store Six 120, 000 Pesos

Thirteen Supermarket Seven 130, 000 Pesos

Ten Food Court Five 100, 000 Pesos

Eight Appliance Center Four 80, 000 Pesos

Ten Bowling Center Five 100, 000 Pesos

Seven Surplus Four 70, 000 Pesos

Six Business Center Three 60, 000 Pesos

Figures on the Worker Cost of the Project

Area Distribution for Ground Floor of San Agustin Supermarket

Appendix B

Floor Plan of San Agustin Supermarket