8th November, 2007

Smart Builders Company Ltd

P O Box 12679-00600
Nairobi

Dear Sirs,

RE: PROPOSED RESIDENTIAL DEVELOPMENT ON PLOT LR NO.21

1/573, TIGONI ROAD, NAIROBI

We are pleased to advise you that your tender in the sum of Kshs 74,500,000.00
(Kshs. Seventy-four million five hundred thousand Only) including VAT has been
accepted.

You are hereby appointed as the main contractor for the above project.

You will be required to enter into a contract with the client, M/s Capitalist Realty Ltd.
You shall carry out the works in accordance with the Agreement and Conditions of
Contract for Building Works, Bills of Quantities, drawings and any other relevant
documentation availed to you.

The contract sum is Kshs 74,500,000.00 based on the bills of quantities priced by you
at tender. Any advance payment required may be made against a cash bond
acceptable to the Client.

Ascertain details and drawings as agreed with the Architect, M/s Mpenda Raha and
proceed and place your orders accordingly.

The site was handed over to the main contractor on 5 November, 2007. The date of
possession is the 19 November, 2007 which is also the date of comment. The
contract period is fifty-five (55) weeks and completion date shall be 7 December
2008.

The Agreement and Conditions of Contract for Building Works is ready at our offices
for your signature, get a performance bond executed, three sets of contract drawings
from the Architects offices.

Yours faithfully

MPENDA RAHA
Cc Capitalist Realty Ltd Client
Toa Umaskini & Associates Quantity Surveyors