.- .- ?5 831] SNC LAVALIN Privileged and Con?dential October 15, 2018 The Right Honourable Justin Trudeau, MP. Prime Minister of Canada Office of the Prime Mnieter Langevin Block 80 Wellington Street Ottawa, Ontario K1A 0A2 Dear Prime Minister. i am writing to request a meeting at your eartiest convenience to discuss a matter ofeome urgency. You undoubtedly have heard about, iinot been briefed on, recent developments that impacted SNC-Lavaiin. Early last week. SNC-Levaiin was advised by the Director of the Public Prosecution Service of Canada that at this time they wilt not invite SNC-Lavalln to negotiate a Remediation Agreement (RA). As a publicly traded company, we disclosed such material information the following day and experienced one of the darkest clays in SNc-tevaiin's history. The Government of Canada?s decision to consider a made in Canada Deferred Prosecution Agreement or RA regime. and to embark upon in depth consultations, was important from the perspective of enhancing Canadian competitiveness and levelling the playing ?eld against our key competitors. This was followed by exhaustive legislative activities that led to Royal Assent of the RA regime on June 20, and coming into tome on September 20. 2013. it was the wit of Parliament and of your Government that this too! be made available to the Public Prosecution Service of Canada. Yet. for the present. the has used her discretion not to apply the tool in the case of SNO- Lavalin. This was very disappointing news for a number of reasons. First. SNO-Lavalin has not been treated very well over the past several weeks. - The Company's adviser and counsel with the PPSC. a well?respected expert in the law whose credentials are impeccable, former Justice ofthe Supreme Court of Canada. was not afforded the courtesy of a meeting or even a cat! with the after several requests were made, to explain SNC-Lavaiin?s rationale to enter into RA negotiations. . SNC-Laveiin lound out from the PPSC spokesperson, in the public domain. that somehow we ?did not meet the criteria?. . The Crown has decided to charge and pursue the company and innocent employees. but not the ones who have been involved in the misconduct and who have all left the firm 9) SNC Second. SNC-Lavalin believes that it does meet the requirements to enter into an RA negotiation with the PPSC and so therefore strongly disagrees with the cunent position. On this, we have been encouraged to write to the to try to explain the rationale for re? consideration. Whatever the outcome. we remain open and committed to negotiating such an agreement in the interest of Its employees, partners, clients, investors. pensioners and other stakeholders, all innocent parties that have been affected during the last six years, and now face an unnecessary extended period of uncertainty. All mosewho allegedly engaged in the misconduct left the cgmpany many years ago, so any negative impact on the company would only affect innocent emp yees. - . Third, it is in the public interest to enter into RA negotiations because SNMavolln is a much changed company. Since 2012. SNC-Lava?n has developed and butt a World-class ethics and compliance framework. This has been embodied to the extent that ?lntegrit'y' has become one of the c?pggy?s core values. The Company has also ctr-operated fully with regulatory and government a 0 es. The Company has tirelessly worked towards a world class ethics and compliance culture through many actions, the following: . Leadership at the Board and Executive Management levels has turned over 100 percent with an enhanced culture of integrity. . - Establishment of a world-class ethics and compliance tramewmk. An administrative agreement concerning ethics and compliance with Public Services and Procurement Canada to continue to bid on services work with the Government of Canada, . Recent comments in close connotation with the Commissioner of Canada Elections and with the Ordre des lng?nieurs du Quebec, 6 A fair and final settlement with Quebec's voluntary reimbursement program. . Renewal of certi?cation to old on work in Quebec via Autorlte dos marches ?nanciers (AMF). . Settlement of class actions in Quebec and Ontario ?led in 2012 on behalf of security holders. Fourth, SNC~Lavalin has experienced highly material impacts on all of its stakeholders- all of whom are innocent bystanders - over the past six years Last week, they had to mimosa tho negative impacts again. for a second time. For example, in addition to the two pensions plans Ceisse do Depots et de Placements du Quebec and the Canadian Pension Plan . at least other top institutions in Cenada hold SNC-Lavaiin chores for pension and mutual funds as well as for individual accounts. Given that percent of SNO- Lavaiin's shareholders are Canadian, the erosion in stock price of last Wednesday impacted many innocent Canadians who are saving for the future. in the past quarter. which includes the status of relations with the Kingdom of Saudi Arabia. SNC-Lavalln?s market capitalization has declined by about Surely this is not a fair or just outcome for Canadian severe, as it is not for the approximate 9,000 employees in Canada across 200 offices from coast to coast who have stock savings plans, as well as the 43,000 employees who work outside of the country. *Con?dential Commercial Information SNC .LAVALIN To conclude, Prime Minister, 1 have to ask if it is in the public interest to prosecute SNGLavaiin, and to try to achieve a grimy verdict. Confidential Commercial Information The answer to this question. may i respeottuliy and humbly suggest. was given by you some three years ago when you were Leader of Her Majesty's Loyai Opposition. in a meeting with my predecessor. Robert Card, you observed that SNC-Lavalin was a 'fieoron of Quebec and of Conada.? Prime Minister, I could not agree more. As a crown jewel. SNceLavaiin remains an important part of the iabrio of Canadian society. of that of Quebec, in the heart of Montreal. The executive and senior management team. and the Board. have helped engineer a remarkebie nansitlon and rebirth of the com . pony Personal Information it wouid be great to have the opportunity to rebuild the Canadian operations from the loss of almost 10,000 mostly high- paying. high value added jobs in the past six years, This, 50 that it can continue to develop and deliver great projects to ciiente and contribute to Canadian society both nationally and global ly Just in Canada today, SNC Lavaiin is the toad orco~ teed on several motor projects that provide oieen. safe and innOVative energy and transportation soiutions to Canadians -- Bruce Power and Ontario Power Generation nuclear refurbishments Chalk River nuciear site deveiopment project Egliogton LRT. Ottawa LRT Reseau Express Metropoiitain design. construction. operations and maintenance. the new Chemptain Bridge construction. operations and maintenance, and the Husky White Rose offshore oi! project in Newfoundland. 0n behait of alt of SNC-Laveiin 3 employees? both inside and outside of Canada, and all of our stakeholders, i hope that we will be abie to meet as soon as possible on this matter My wit! contact your office to see what may be possible in the very near term. Wit - regards, I, ..