Court File No. 32-2338424Estate File No. 32-2338424

ONTARIOSUPERIOR COURT OF JUSTICE

(COMMERCIAL LIST)

IN THE MATTER OF THE NOTICE OF INTENTION TO MAKE APROPOSAL IN BANKRUPTCY OF

CON-KER CONSTRUCTION CORPORATIONOF THE CITY Of OAKVILLE

IN THE PROVINCE OF ONTARIO

FIRST REPORT OF THE PROPOSAL TRUSTEEFebruary 23, 2018

INTRODUCTION

1. On January 29, 2018, Con-Ker Construction Corporation (“Con-Ker”, the “Company”or the “Debtor”), filed a Notice of Intention to Make a Proposal (“NOI”). CroweSoberman Inc. consented to act as the Proposal Trustee (in such capacity, the “ProposalTrustee”) for the Company. A true copy of the Certificate of Filing of a Notice of Intentionis attached hereto as Appendix “A”.

2. Attached hereto as Appendix “B”, are the NOl, cover letter, and list of creditors

(collectively, the “NOl Mailing Package”) for the Company that were sent to all known

creditors on January 31, 2018.

3. Con-Ker will bring a motion returnable on February 27, 2018 (the “Motion”) for an order,

inter alia,

a) Extending the time within which a Proposal must be filed with the Official Receiver

to April 13, 2018;

1

4. In support of the Motion, Con-Ker filed an Affidavit of Mr. Dino Marchioni, swornFebruary 22, 2018 (the “Marchioni Affidavit”) which describes, among other things, ConKer’s history and the reasons for the commencement of these proceedings. The ProposalTrustee has not repeated those details in this first report to the Court (the “First Report”),except to the extent necessary.

5. Con-Ker is the owner and operator of a company located in the City of Oakville, whichspecializes in sewer, water main work, and other transportation infrastructure for theRegional Municipalities of Peel and Halton. Con-Ker has worked on projects for the Cityof Mississauga, Town of Oakville, Town of Milton, City of Burlington, and City ofBrampton. The Company maintains a large fleet of leased and owned equipment, has asmall amount of in-house employees carrying out maintenance and administrative work,and is largely reliant on unionized staff to carry out its contracts.

6. Con-Ker’s primary clients are municipal governments in Southern Ontario. Con-Ker hastwo active jobs, completing a large project on the James Snow Parkway for the Regional

Municipality of Halton (“Halton”), and another project in Streetsville for the Regional

Municipality of Peel (“Peel”) (together, the “Ongoing Projects”).

7. Due to Con-Ker’s liquidity issues, a number of construction liens have been registered on

the Ongoing Projects, and the Company has been notified that additional liens are being

registered in the near future. The liens have resulted in Con-Ker no longer receiving

payments from Halton or Peel for its ongoing work. Echelon Insurance (“Echelon”) has

issued bonds in connection with the Ongoing Project, and has advised Con-Ker that it has

received a number of claims under the bonds. The principals of Con-Ker believe that

Echelon will not retain the Company to complete the Ongoing Projects.

8. The Proposal Trustee has had discussions with Con-Ker’s principals regarding the

Company’s intentions in initiating these proposal proceedings. The principal purposes of

these proceedings, are to (i) provide Con-Ker with an opportunity to explore assigning the

Ongoing Projects to a replacement contractor that has the ability to complete the contracts

and assume the liabilities relating to the Ongoing Projects; (ii) allow Con-Ker time to

2

continue to litigate or settle outstanding proceedings involving certain municipalities forthe benefit of its creditors; (iii) allow Con-Ker time to collect certain accounts receivablein the normal course of business for the benefit of its creditors; (iv) allow Con- Ker time toperform an orderly liquidation of its equipment and assets; and (v) negotiate and make aviable proposal to its creditors.

PURPOSE Of THE FIRST REPORT

9. The purpose of this First Report is to advise the Court of the filing of the NOl, and theProposal Trustee’s position with regard to the Company’s application for a 45 dayextension of time for filing a Proposal, specifically to and including April 13, 2018,pursuant to Section 50.4(9) of the Bankruptcy and Insolvency Act (“BIA”). The ProposalTrustee hereby submits this report to the Court pursuant to Section 50.4(7)(b) (ii) of theBIA

DISCLAIMER

10. In preparing this First Report, the Proposal Trustee has relied upon certain unaudited, draftand/or internal financial information, the Debtor’s books and records, management andemployees, and information from other third party sources. The Proposal Trustee assumes

no responsibility or liability for loss or damage occasioned by any party as a result of the

circulation, publication, re-production or use of this First Report. Any use which any party,

other than the Court, makes of this First Report, or any reliance on, or any decisions to be

made, based upon it, is the responsibility such party.

BACKGROUND

11. A corporation search indicates that the Company was incorporated on December 22, 1994,

and began operating shortly thereafter. The corporate profile indicates that its current

directors and officers of Con-Ker are Francesco Fusillo and Dino Marchioni, who each

either directly or indirectly own 50% of Con-Ker. The Company operates out of leased

premises at 860 Progress Court, Oakville, Ontario (the “OakviIJe Property”). The

3

Proposal Trustee understands that a related company, 1276058 Ontario Inc., (“127”) ownsthe Oakville Property and has been declared a creditor.

CAUSES OF FINANCIAL DIFFICULTY

12. The Proposal Trustee understands that the Company’s financial difficulties stem fromissues that arose on specific contracts and bids with Peel and Halton, which involved delaysand add-ons. Due to delays in receiving certain holdback payments, the Company wasrequired to borrow funds from third parties and the directors, to repay its obligations, andvarious liens were subsequently registered against these projects. The Proposal Trusteeunderstands that there are still ongoing legal actions commenced by the Company againstboth Peel and Halton over these specific contracts, with mediation dates scheduled for thespring.

CURRENT LEGAL PROCEEDINGS

13. Upon the filing of the NOl, the Proposal Trustee issued fifteen (15) separate Notices ofStay of Proceeding to various creditors related to actions commenced against Con-Ker

prior to the filing of the NOl;

Court file Number Plaintiffs Defendants

1 CV-13-475513 Robert B Sommerville Co. Ltd. Con-Ker, F. Fusillo, D. Marcioni.

2 CV-4220-15 EC Power & Lighting Ltd. Con-Ker, Halton

3 CV-4222-15 EC Power & Lighting Ltd Con-Ker, Halton

4 CV-4223-15 BC Power & Lighting Ltd Con-Ker, Halton

5 CV-4224-15 EC Power & Lighting Ltd. Con-Ker, Halton

6 CV-4299-17 EC Power & Lighting Ltd. Con-Ker, F fusillo, D Marcioni

7 CV-5473-14 Belor Construction Ltd. Con-Ker

8 CV-15-521075 Belor Construction Ltd. Con-Ker, F Fusillo, D Marcioni

9 CV-15-523620 Belor Construction Ltd. Con-Ker, Zurich Insurance

10 CV-15-523620 Belor Construction Ltd. Con-Ker, Zurich Insurance

4

11 CV-59-16 Coco Paving Inc. Con-Ker, Zurich Insurance12 CV-$71-16 Coco Paving Inc. Con-Ker, F Fusillo, D Marcioni13 CV-4322-15 Coco Paving Inc. Con-Ker, Halton14 CV-1145-17 Bell Canada Con-Ker15 CV-11O1-17 Multiseal Paving Company Con-Ker

14. After circulating the NOl Mailing Package to all known creditors, the Proposal Trusteewas advised of an additional action commenced against Con-Ker;

Court File Number Plaintiffs Defendants

1 CV-16-55710 Peel Con-Ker, ,GHD Limited, Williams Parkway, Mattamy Limited,Sungold Group, Creview Development, Nicolau Properties Ltd.

15. The Workplace Safety & Insurance Board (“WSIB”) and International Erosion ControlSystems Inc. forwarded to the Proposal Trustee two notices of garnishment. Thegarnishment notices were served on the ID Bank branch where Con-Ker held its operatingaccount after the date of the NOl. The Proposal Trustee notified the branch manager of theStay of Proceedings that was in place, but was not able to send the Notice of Stay of

Proceedings until after the garnishment notices were received at the branch, which resulted

in Con-Ker’s bank account being frozen for several business days.

16. In the course of its monitoring, the Proposal Trustee noted that approximately $125,000

was transferred to the bank account of 127 the same date that the WSIB garnishment notice

was received. Con-Ker advised the Proposal Trustee that although the Debtor was aware

that a Stay of Proceedings was in place, it was concerned that the funds would not be

available to the Company for its ongoing operations. The Proposal Trustee has confirmed

that the funds have been subsequently transferred back to the bank account by 127, and TD

Bank has been properly notified of the Stay of Proceedings.

5

CASH FLOW AND MONITORING

17. The Company submitted its projected cash-flow statement dated february 5, 2018 (“CashFlow”), which was reviewed for its reasonableness by the Proposal Trustee. The ProposalTrustee uploaded the Cash flow to the Office of the Superintendent of Bankruptcy(“OSB”) on February 7, 2018, alongside the Proposal Trustee’s report and the report bythe insolvent person on the Cash Flow. A copy of the Cash Flow is attached hereto asAppendix “C”.

18. The Company has prepared a draft amended cash flow (“Amended Cash Flow”) with theassistance of the Proposal Trustee, based on the actual activity for January and February.The Amended Cash flow indicates that the Company has sufficient cash on hand to meetits obligations until the proposed Proposal extension date of April 13, 2018. A copy of thedraft Amended Cash Flow is attached hereto as Appendix “D”.

19. The Trustee has been actively monitoring the affairs of the Debtor following the filing ofNOT to the date of this first Report. The daily monitoring has focused on cash management,

collecting daily banking activity, reviewing online banking, and daily conversations with

staff on the deposits and withdrawals occurring in the corporate bank account, and review

of supporting material.

20. Representatives of the Proposal Trustee have attended at the Oakville Property on separate

occasions to meet with the Debtor’s staff and inspect the premises. A list of owned and

leased equipment has been prepared by the Debtor, which the Proposal Trustee is having

verified and appraised by a licensed appraiser.

21. The Proposal Trustee has confirmed that payments towards the Canada Revenue Agency

(“CRA”) for payroll remittances since the filing of the NOT have been processed. The

returns and reporting for the HST account are being finalized by Con-Ker’s staff.

6

STAY EXTENSION APPLICATION

22. As the Debtor is applying for an extension of the 30 day period within which the Proposalmust be filed, in the Proposal Trustee’s view, the Company has acted and continues to actin good faith and with due diligence. In this regard, prior to the filing of the NOl, theCompany worked closely with the Proposal Trustee to prepare its Cash How, and continuesto explore its restructuring options with the Proposal Trustee.

23. In light of the Debtors’ plans to find a replacement contractor to take over its obligationsand liabilities under the Ongoing Projects, and the likelihood that the Debtor will recoverfunds from its actions against Halton and Peel in the near future, the Debtor will likely beable to make a viable proposal if an extension is granted.

24. No creditor is likely to be materially prejudiced if an extension of the time within whichthe Proposal could be filed is granted.

25. Based on the foregoing, the Proposal Trustee supports the Debtor’s application for an Order

extending the time for the Company to file its Proposal to creditors.

All of which is respectfully submitted this 23’ day of February, 2018.

CR0WE SOBERMAN INC.Trjjstee acting under a Notice of Intention to Make a Proposal for

Corporation

7

EXHIBIT

C

1+1 Industry Canada Industrie CanadaOffice of the Superintendent Bureau du surintendantof Bankruptcy Canada des faillites Canada

District of OntarioDivision No. 07 - HamiltonCourt No. 32-2338424Estate No. 32-2338424

In the Matter of the Notice of Intention to make aproposal of:

CON-KER CONSTRUCTION CORPORATIONInsolvent Person

CROWE SOBERMAN INC.Licensed Insolvency Trustee

Date of the Notice of Intention: January 29, 2018

CERTIFICATE OF FILING OF A NOTICE OF INTENTION TO MAKE A PROPOSALSubsection 50.4 (1)

I, the undersigned, Official Receiver in and for this bankruptcy district, do hereby certify that the aforenamedinsolvent person filed a Notice of Intention to Make a Proposal under subsection 50.4 (1) of the Bankruptcy andInsolvency Act.

Pursuant to subsection 69(1) of the Act, all proceedings against the aforenamed insolvent person are stayed as ofthe date of filing of the Notice of Intention.

Date: January 29, 2018, 15:09E-FiIe/Dépôt Electronique Official Receiver

Federal Building - Hamilton, 55 Bay Street N, 9th Floor, Hamilton, Ontario, Canada, L8R3P7, (877)376-9902I”Canada

EXHIBIT

‘B’

,%\ Crowe SobermanT.Crows Soberman Inc.Licensed insolvency TrusteeMember Crowu Horwath International

2 St. CIair Avenue East, Suite 7100Toronto, ON M4T2T5416.929.2500416.929.2555 Faxwww.crowesoberman.com

January 31, 2018

TO THE CREDITORS OF CON-KER CONSTRUCTION CORPORATION

Please be advised that Con-Ker Construction Corporation filed a Notice of Intention to Makea Proposal on January 29, 2018 under the Bankruptcy and Insolvency Act. A copy of thisNotice is enclosed herewith.

This is a procedure whereby a debtor, with creditor and Court approval, reorganizes itsfinancial affairs. Our role as Trustee in this matter is to assist the debtor with thedevelopment of the Proposal, to liaise with creditors so as to fully explain the Proposal tothem, and to support and facilitate the decision-making process which creditors willultimately undertake, ending with their acceptance or rejection of the Proposal.

All liabilities, actual and contingent, of Con-Ker Construction Corporation as at January 29,2018 are subject to the Proposal mentioned above and are fixed by Section 62(1.1) of theBankruptcy and Insolvency Act as at that date.

All creditors are STAYED from commencing or continuing any actions as against Con-KerConstruction Corporation until the Proposal is dealt with by the creditors.

Con-Ker Construction Corporation has thirty (30) days from the date of filing the Notice ofIntention to Make a Proposal (subject to Court approved extensions of this time period) tolodge a Proposal with us so that we may file it with the Official Receiver.

We will be calling a meeting of creditors to consider the Proposal within twenty-one (21)days of the date on which the Proposal is filed. You will receive notice of the meeting alongwith all other necessary documents including the proof of claim form and voting letter, atleast ten days in advance of the meeting.

Please feel free to contact Graeme Hamilton at 416.963.7140, if you require any furtherinformation with respect to this matter.

Yours very truly,

CROWE SO BERMAN INC.Licensed Insolvency Trusteeacting in re: the Proposal of_eons ti n Corporation

Per: Graem a itonDirect 41 6-63-71 4JQraeme. hamiIton(crowesoberman.com

1+1 Industry Canada Industrie CanadaOffice of the Superintendent Bureau du sunntendantof Bankruptcy Canada des faillites Canada

District of OntarioDivision No. 07 - HamiltonCourt No. 32-2338424Estate No. 32-2338424

In the Matter of the Notice of Intention to make aproposal of:

CON-KER CONSTRUCTION CORPORATIONInsolvent Person

CROWE SOBERMAN INC.Licensed Insolvency Trustee

Date of the Notice of Intention: January 29, 2018

CERTIFICATE OF FILING OF A NOTICE OF INTENTION TO MAKE A PROPOSALSubsection 50.4 (1)

I, the undersigned, Official Receiver in and for this bankruptcy district, do hereby certify that the aforenamedInsolvent person filed a Notice of Intention to Make a Proposal under subsection 50.4 (1) of the Bankruptcy andInsolvency Act.

Pursuant to subsection 69(1) of the Act, all proceedings against the aforenamed insolvent person are stayed as ofthe date of filing of the Notice of Intention.

Date: January 29, 2018, 15:09E-FilelDépãt Electronique Official Receiver

Federal Building - Hamilton, 55 Bay Street N, 9th Floor, Hamilton, Ontario, Canada, L8R3P7, (877)376-990211+1‘anaca

Diatdct at OntarioDhlsiDfl No. 09- TorontoCourt No.Estia No.

FORM 33-NoUce of intention To Make a Proposal

(Subaectian 50.4(1) of the Act)

in the matter of the proposal ofCON.XER CONSTRUCTION CORPORATION

oldie City of Cakvle, in the Regional Munipallty of Haltonththo Province of Ontario

Take notice that

1. I, CON-KRcON5IRUCTION CORPORATION, an insolvent person, state1 purauantto subsecdon 50,4(1) of the Act that Itatendlomake mpodiomyanors.

2. Ctowe Sobennan Inc. o12 SI CiatrAve East, Suite 1100, Toronto, ON, M4T 215, aUcneed ttuetee, has consented to act asbijatee under the proposal. A copy of the consent is attached.3, A Pet at the nanres at the kiiowt aediiors with Ualms ot $250 or more and the amounts of their a)ma is also attached.4, Pursuant to section 69 of the Act, ati proceedings against me are stayed as of the date of fling of this notice with the offlolalraceivar In mit locality.

Dated at the City of Toronto in the Province of Ontario this 15th day of January 2016.

ON-ICER CONSTRUCTION CORPORATIONhisotvent Parson

To be completed by OMalal Receiven

Fifing DataOfficial Receiver

PagelofS

- FORM 33-Notice at Intention To Make a Proposal

(Subsection 50.4(1) olthe Act)

In the melter of the proposal ofCON.KER CONSTRUCTION CORPORATION

of the City afOsiwifie, tn the RelonaI Municipality of HalionIn the Province of Ontario

District citDivision No.Court No.Estate No.

Ontario09 -Toronto

List ot Creditoes with cWme of $250 or morn.

Cretiitor MdreaaAorouni# ClalnAniount

1219503 Ontario 660 Progress Court575,000.00Oalr4He ON 1.5181(1

1276055 OntarIo 860 Progress Court300,000Oakv5le ON 16161(1

407 EIR Eapresa ToO Route 6300 &eelae AveW15,007.73Mtori RkeardsonlCecUom Woodiidge ONC4H IJI

Msenae Undwmund 38557 Webb Dr3,935.23Weatiend Wd 48186-1979 USA

Amg Usia Inc. 21 Bales Dttha west,21,006.75StiaronONLOGiVO

Anmal Corporation2,056.83Aqustach Dowatedng 331 RoOnea Rd

12,669.49Company MieONL6A4P5Allintic Industries United 640 Waydom Drive

105,206,00AYRONNOB1EOHanicadeTroServicee Inc. 8672 Keele St,

1,615.90ConomdCNL4K2N2alorCouctionUi 180 AdmIral Blvd,

526,824.75Mlulmiga ON LET 2N68inlngIun Corisutrcttan 4787 Aurora Rd

7,430.00Whftchwcii-Stouffe*s ON L4A 7X4Blech1itandd 28leotStreelEaat,Snta2fDQ

Th763.6OToronto ON M4W 1A8Broiwi’s Fual 3975 Koala

28,310,00Ncr*YorkONM3J1P1Blued ConfrarVng limited 37 Shanrdfffa Rd

497.40ETOSICOXE ON NeZ 51(2Cedarlnfrantiuah,reProducte 330 RodlneaRd#f

51,389.00ma MapIeONLBA4PS

Page2of 8

FORM 33-NotIce of Intention To Make a Proposoi

(SectIon 60.4(1) of the Act)

In the mWtter of the pmpos ofCON-KER CONSTRUCTION CORPORATION

at the City atOakvllle, In the RagIon MunIpaflty of H&tonIn the Pmince of Ontario

UetofCmdjtomwltlr clilmi of525Oormom,

Cre A4&eCtaknnI

Centennial Conitruodan 353 Towntna Road,6,24L41NIaara.Cn.The-LtheON LOS iJO

CRA-Tax- Ontario Shawlnigen - Rod National VerMoeton and Cdlectlon RP0001 1,000,000.00Quabclnidvencylntake CentreCentre 4805 ShantnIgan-d Blvd

ShawinIen-,ud OC GOP 5119CRA - Tax - Ontario Sheelnigan- Sad Na(onal Verification arid Collection 910001 2,607656.70Quebec Inecivency Intake CentreCentre 4995 Shavrlrtigan-Sud Blvd

Shawln!gen-iud QO 99P 5119Craflanien CuttIng 5455 Dlaz St

4,99340Ire dale CA 61706 USAD..Cwpt&SoneUmbed P027Z

54,338,20Tim Hand Scarborough ON MIS 386DSA Encfmnmental SeMcee 825 Greenh9 Ave. #3

1,24,3,00Inc Hamilton ON 18K 5W9DECASIUd. 6807 Stmone Country Rod 56,

245,000.00Utaa ON LaM ITOOthocU egrorrnd Ltd.

- 135 Conmerolal Road,47,140.98Baton ON L7E ¶R6

DInoMerakioni 86OPrcgtena Cowl3,000,000.00DalMile ON L6L BKf

DlmctErpilpmantUi 1383 Comwafl Road,IO,66L78Oaln6MeONL6lflS

DCL Hydraeeedlng Inc. 6639 Seventh Line19,558.008nOWL 340

Drudl ,Aleulou kuchar CL? 7050 Wanton Road &ilte 6103,807.70Marleta Deacanlo Woodbcldge ON C4L 897

E,C. Power & Lighting Ltd. 2461 Betyl Rd.677A42.12Oolrv0le ON 18.1 7X3

DIattictofDivision No.CaurtNo.Eatata No

Ontario09-Torontp

Page 3ofB

- FORM 33.Notice of Intention To Make a Proposal

(Subsection 50.4(1) of the Act)

In the matter of fits proposal ofCON-KER CONSTRUCTiON CORPORATIONof the City of Oekvllle, In the Regional Municipality of Nation

In the Province of Ontario

Cut of Creditors with claims at $250 armors.

Dlsbi of:Division No.Court No.Estate No.

Ontario09-Toronto

Crit Addras

Ethelon Ensironmental 605 KoodRd20,281.00Markham ON

Envyrazorie 25 CisirerSie Cr,t3,857.75ETOSICOitE ON M9W 527

Esta of Sam Hamag ON63o,000,00Fr-Pal Consiniatlon lid 171 Fenmar Or,231,083.08Noth ‘tork ON M9L IN?

Portents Prenum Pipe Inc 511 E John Carpenter Fre’128,470.00IRVING TX 75082 USA

Frank FujIflo 880 Progress Court3,000,000.00Oakvlfle ON LSLOKI

Fvrtart Pa.dng Co 2791 Markham R65U7j70MOScarborough ON MIX 1M4

GeoShack- Toronto 35 McCleary C8,530.28Concord ON L4K3Y9

GateaL 141 MebIdeStWeet,#DfD28,432.04Toronto ON MaN 31.6

Green Sphere trio. C-420 Mi St East, Suite 8108,329.14Milan ON CDT 5G3

Greenhodzons Group of 2907 Upper James Street7,128,03Fsrma-HauthonSod MountHopeONLORIWO

Greenville Paveorelelno. 31 Dalti Park Blvd47,250.00BramiptonONLGT5E?

Gfa)ltona Grading lid. 7165 Eghth LIne,2,547.60HombyONI.OPIEO

Imperial Fence& Lendecaplng 369 ErIe Ave79,057.97Bramtftrd ON N3S 2117

International Erosion Control 22295 Hoaklna Un.30,397.00Systems Rodney ON NOL 2C0

Page4 nIB

- FORM 33-Nottca of intenIon To Make a Proposat

(SubsectIon 50.4(l) of the Act)

in the matter of the PtDDB ofCON-KER CONSTRUCTION CORPORATION

of the City of OakvIe, in the Regional Municipality of Hainin the Province of Ontla

Dlebici oiDivision No.Court Na.Estate No.

OntarIo09 Toronto

List rCrmfltara with cMi ot $256 or mars.

C fi4drqClaim Ainpunt

niwnalicasi Union of 2245 Span Rd4Z348.00Oparaling En,en Lo Oakvile ON L6LSXB733

JUpaniTurfGmup 2374HolbcmRdB2561,00Queenevtte ON LOG IRO

gHrcesn TNoeJRowi555..OQBoonON1JE5A9

LaFrent Road Ssvfcea Ltd. 1780 ken,te Dr3390,00BudlegtonONt3L6V3

Un-Ce, Conete Produc 5131 Buehiar Line- 20,800,00Watenitsin ON NOB 230

Uuna Lacal 183 Members’ 1263 Wilson Avenue160,000.00Beqe5tFund NorthYorlONM3M33

Jennifer 5mm

M1eroreb Conebudlen in 290 Trerlers Boulevard East73,069.00Mlsstsseuge ON IAZ 1W7

MblsiiyotFTnence-ONPST MlnlskyofReuenue ENT 254232.00EHT&Othre-Taxer 33lc1n;SbeetWast6lh9oorMrs.iaAfbervy OshawaONLfHSH5f1riitl-Ccnsbudion Services 107W Longwoods Rd

- 83,726.00ChgthamON N7M511Mutilseal Pa%4n0 4255 Wton Rd

11300.00NoqlhYarkONMOClW8Naps ,4ulo Pens 90 Herapatead DrIve

Z688,00Hamilton ON LBW 287NatirWsCefl 1flCredlIoneRd

1620.00Conon1ONL4K1N5Nalhech Services Inc. 1290 Bslntaral Rd

12,200,00Cwnbitdga ON NIT lASNesceAqrege POBar 1070

662,842.52BurthgtonONLWDG8

Page 5 of 8

- FORM 33-No1ce of Intention To Matte a Proposal

(Subsection 50.4t1) of the Act)

in the matter of the proposal ofCON-KER CONSTRUCTION CORPORATIONof the City ot Oakviite, in the Regional Municipality of Haiton

In the Province of Ontaito

Lilt ci Credltam with claims of $256 or mona.

DlsUfrtoDlidelon No.Court No.Estate No.

Ontario09-Toronto

Ct, AdckasAj C4iuAmoimtNoitrax Caisda Incorporated 1655 EdtannieP4 East

4490.00Marva Martin Minsinsauge ON L4W 195Ontario Cutting e Cohrg Ltd 2398 Manna Rd

1,480.009.sisaeuge ON lAY 1Y6—

Pacific Paving Ltd 5845 Luke Road tkitt 204oo.ao)iIIlar4gs ON L4W.2K5

PaiIettValo U.P 300.77 City Caibu Cr, West Tower27,400.013Fmocee Wales Masineuga ON L56 1M5

Pabte’a Quality lop So$ Ltd. 4321 SIxth Line3,107.00Mttco ON L9T 593

Pipe FlowCvntrac4ng Corp. 111 FritiSt13,803.00Hamiiton ON LBP4M3

Platinum Infrastmcium In ON23,730.00Pcw Contracting Ltd. 180 Ram Famat Rd21,780.00GixnileyONU)H1S0

Power Premium Financing 290 Rovmbee Dairy Road26,889.00Corp Woodbridge ON L4L9]7

Pro Concrete and Paving Lid. 789 Bui8ngten St E4,294.00HamikonONLBL4K3

Pwoiator Courier Limltad 5995 Avebwy Ri 3rd F11,100.00Orde Neso Masinaiga ON L5R 318

Quitmia Toronto Inc 1801 Whistle Bra Rd800.00Cambridge ON NIR 563

R&MCcnstnrciinn 254MalnSIN67,000.00A±n ON L7iI 1W9

ft KJdd Fuels Corp. 1741 AJco Ro25,210.00toNouka ON MOV 1CS

RobartRSumervitlelnc. l3lThDufformnSl121,130.00KhigCftyONL7BlKS

Page 6 of B

- FORM 33-Notice at Intention Ta Make a Propoael

(Subsection 50.4(1) of the Act)

In the matiar at the proposal ofCON-KER CONSTRUCTION CORDRATlDNof the City of Oakv5le, In the Regional Mwaklpallty at Halton

In the Province of Ontario

District atDivision No,Court NoEstate No.

Ontario09-Toronto

List of Creditors with alsims of .$250 or mars.

CraslilorCalj MiaraitSanserContrecting ll244KealeSt

10072.00MepIeONLSAISISt. Marys Cement Inc 55 Induanta! St

182,840.00East York ON M4G 3W0SIeprInduitdea 23S4HsineeRd

10,101.00t.iAmIpIONL4Y1Y&SlaphenaDne Rental ServIces 1329 Spears Road

10,720,00Ins. - 0akve Othvflle ON LBL 2X5Btly Dempster

Stkiaon Owl LIla 130 Croditatons Rd5,430.00Vaughan ON L4K 1P2

StradaSu,veylns. 31 GaudaurRd6,13500Wxdbrtdge ON C4L3RB

sub terrain dimatanal drtifiig Box 5554,720.00ltd StoultvtleON L4A7Z7

Sweep Aft Unlaiuan78500.00ON

T Sailor Sod Co 5043 Slmcoe County Rd I54,817,00PeON

Tedrnlcal Standards end 3300 Bloor Street Weal 14th Ficor Centre Tower8,090.00SeMy Authority Etobbooke ON M8XZ(4

NasreAbdaile

Tat Tranapod 100 Treelawe Blvd18,306.00KLEINBURG ON LDJ 100

Thurber Engineering Ltd. 2010 Wlnsten Perit Or Unit 1031,230,00DailvIlle ON LBH 5R7

Toromont Industries Ltd 3131 HIghway? Went P0 Box 55111,065.00CorisudONL4KlB7

Traadavrx The Sales 290Traders Blvd East8,650.00MbasIesarigaONL4ZlW7

Page 7 of 8

District of:Division Na.CowtNo.Estate No,

ToW

-FORM 33-Notice of intention To Make a Propossi

(SubsectIon 50.4(1) of the Act)

In the matter ot the proposal ofCON.KER CONSTRUCTION CORPORATION

of the City of Oakvitie, Tn the Rglonal Munldpallty of HsitonIn the Province of Ontario

List of Cmdltom wIth cleim; of $250 OtmCfe,

2

ffCOikER CONTRUCTIOtORPORA11ON

Insolvent Person

17453,792.49

Ontario09. Toronto

ec$W( AA’wi11 CfaknMtyjnt

UnHook Ltd 287 Armittong Ave8,44000GaorgetcenONL7G4X6

UnlonGa. 34BFlglnStrealPOSoxlD540,00Benkiuptoy Depaitoient Brentford ON N3T5M4

Unfted Rants 115, ArdettArenue11,280.00NicEwasr ON N20 2E1

War Supplyinc.— 115 Ronea Rd

330,202.00Vaughan ON LMIR5Wayncolinited 1417 Waynon Rd

78,749.00Carnbtfdge ON NIR 609WM]Tm*r&AnodaIei 85WesIWHmatSUnk1

225,000.00RldmxdKIONL4B1KTWorkplace Sntetyend 200 FrontStW

173,83400Ireurcoc. Board Toronto ON M5V 3.]fdoCoeofion Services

WrtateWs Home Spedaldes 838 Fenni Ave E UnIt 30125,609,00Inc. HainiNon ON L8V )V8

Page 8 of B

District of: OntarioDivision No. 09 - TorontoCourt No. 32-2338424Estate No. 32-2338424

- Notice of stay of proceeding -

In the matter of the proposal ofCON-KER CONSTRUCTION CORPORATION

of the City of OakviIIe, in the Regional Municipality of Haltonin the Province of Ontario

Date of Proposal: January 29, 2018.

Notice Is hereby given that the above debtor filed a proposal.

Every proposal made in pursuance of this Act takes precedence over all judicial or other attachments,garnishments, certificates of judgment, judgments operation as hypothecs, executions or other process againstthe property of a bankrupt, except such as have been completely executed by payment to the creditor or hisagent, and except also the rights of a secured creditor.

Upon the filing of a proposal made by an insolvent person or upon the bankruptcy of any debtor, no creditorwith a claim provable in the bankruptcy shall have any remedy against the debtor or his/her property or shallcommence a claim provable in bankruptcy until the trustee has been discharged or until the proposal has beenrefused, unless with the leave of the Court and on such terms as the Court may impose.

Where a proposal has been made, the Sheriff or other officer of any Court or any person having seizedproperty of the bankrupt under execution of attachment or any other process shall, upon receiving a copy of theproposal certified by the Trustee as a true copy thereof, forthwith deliver to the Trustee all the property of thebankrupt in his hands.

Where the Sheriff has sold the property of the bankrupt or any part thereof, he/she shall deliver to theTrustee the money so realized by him/her less fees and the costs referred to in subsection 70 (2).

Any property of a bankrupt under seizure for rent or taxes shall on producUon of a copy of the proposalcertified by the Trustee as a true copy thereof be delivered forthwith o the Trustee, but The costs of distress atea first charge thereon, and if such property or any part thereof has been sold, the money realized therefrom,less the costs of distress and sale shall be paid to the Trustee.

Dated at the City of Toronto in the Province of Ontario, this 31st day of January 2018.

2/St. air ve”E’’st1 Suite 1100 -

Toronto ON M4T 2T5Phone: (416) 929-2500 Fax: (416) 929-2555

Page 1 of 1

EXHIBIT

Inth

M,,tf’r

nf

un’

P,’nn,na,)

255,100168,lt)O

9)2,60))1nn

,tm

cti,’n

,,.n,

nt

rni,’,’i,’t

CJanuurv

-fl...,h

,..-‘5

030

.........

..—

.....

—______

Jan-ISF

eb-IStin

t-ISM

ay-ISJun-IS

Jul-ISA

nti-ISS

ep-lBO

ct-ISD

ec-IST

otalC

ashInflow

sProject

I-Jam

esSisoss

300,000600,001)

6)10,000500,000

560,0002,800,000

James

Snow

lioldbacks350,000

350.000D

eductA

nticipatedLieno

Itsclear

(300,000)(00,900)

(360,000)l’rojecl

2-Streelsville

(05,000205,000

205,000205,000

300,000300,000

300,000300,000

300,000300,000

150,0002,700,000

Strcet’,iII

ho)dbacks490,1100

100,000Streelsviflc

Dda0ed

Claim

611,00045,000

45,00045,000

45,00045,000

45.000330,000

Deducic

palc

dL

iensto

clear(60,O

00)(

40,000)(200,00(1)

Misc

income/service

call0

Saleotliquipinent-D

inptmcks

20,00020,000

20,00075,000

75,00075,000

50,0005(1.000

385,000l(ohlbueksollserprojeets

50,000235,000

100,000140.000

525,000t)otnI

ch

flowfrom

1ne

‘,‘

9()JJ)))9

270,00)I400

1(00.000,j4

,00

0JlI6

5,0

U0

97S004l*fi1

5,0

00

4215,000k35

0,0

ofl

•<230,000’

.7,0

!3,0

000

Project

Disbursenienls

00Pt’ujecl

IE

sitcnsts.Istm

eaSntiw

0Subirades

60,00(1(50,000

175.00020(1,000

250,000200.000

275,0001.310.000

Con-K

erespcnse.labour

mid

trmtedal

50,1)00(00,00(1

15(1.000150,000

175.000175,000

200.0000.030.000

‘InsuranceB

andI

0P

roject2

Expenses

Stre

tcvill

I)Subcam

r,sctar100.000

100,000200.000

250.000300.000

20(1.000200.001)

410,0001,760,00(1

Con-E

arm

ates/sI30,000

20,00040,000

40,00020.000

20.00620,000

20,000220.000

Con-K

etlabour

20.00040,000

10,000.10.006

30000.100(5)

‘10.00040,000

300,000T

hn

ceJo

nt1

-

0j5

1lP

sleet1)isbtsrst’m

enlc60,11011

60,11011150,110)1

320,001)5)0.0))))

635,15)9710M

W)

655,000575,1100

585,111)00

II3,620,01)01)

Operutins

Istwisam

PavollE

xpensea((net.

Reinittm

ices)12.000

30,00030,000

30,1)0030,000

36.00030,000

30,00030,000

30,00012.000

2,000306,000

Rats)15,000

(5,00015,000

15,000(5,000

15,0005.000

(5.0000

00

120,0)10V

eljjcle/Eqtsjpm

cntE

ptse

s45’O

I)15,200

30,00020.0(10

20,110015.000

15.06015.000

15.1)000

1)11

220,4(10H

edru2,000

2,0002,000

2,0002,000

2,01)02,000

2,0002,000

2,0002,000

2,60024,000

Water

500500

500590

500500

500500

500500

500500

6.000G

as’Fuel2,000

2,0005,00(1

5,0007,00(1

7,0007,000

7,0005,000

2.0002,001)

2,00053,000

flailC

anada5,000

5Ut)))

5J1

)5(100

5,1)01)5,000

5.0005,000

5.00))5.000

5.0005.1100

60.000O

Dice

Expenses

1,0001,000

(.0001,0110

(00)).000

1.0001.000

1.0001.000

1,0001,000

12.000Shop

Epenscs

1,000(.000

1,0001,000

1,0001,000

1.0001,000

1,0001,000

1.0001,000

12,001)T

oI5

l(5.0

0!/sj)sh

uraan

un

tx65,7(10

1(11,70))59,51)0

79,51)076,51)0

76,5)1076.500

73,50031,51)0

23,51(023,5011

513,4W)

tiiscand

Other

Ew

en,sraflank

Chnte

4(10400

400400

400400

400400

400‘100

400400

1,8(10Pm

fcssionalF

ees-CS

)(T

hj1ee)0

25,00615,000

15,00015,000

(5.00015,000

15,00010,000

10,00010,000

10,000155,000

PrareasionalF

cs.

Trustee’s

Counsel

)Aird

&flash))

10,00010.000

10.00010,000

111.00010,900

10,00010.000

10,00010.000

10.000110.000

l’rofessiotm)

Fees-

LeashC

ounsel(C

haitous)10,000

25,00020,000

20,00020,000

20,001)2(1,1)00

15.00015,000

10,0(5110,000

(0.000195.000

HST

Reruittatices

(Estim

atedas

aM

onthlyC

redit)0

00

00

00

00

00

00

WSIIO

-1(1)110

5.1101)5.01)0

goonsn

oo

6,00011,01)0

5,00011,000

11.00116,000

11,00096M

W)

Tt)

—18,41)0

684lHh

5341)0

53,40))53

401153

46053,4011

45,40043,400

3S

38,30))39

4005611.800

15’t9

fl3

.

Net

Cash

Flowfh

n’n

in.,

C,,.,I,

1(147,160)‘5

(0flA

ils

(170,100)(52,900)

35,100165,11)0

100,1110192.900

22.501)130,1011)

5.1)110170.100

cinsinLcosh

[P.12

00))2_

800(30

100)=

000170

1003’,0

20067iJ01)

8411411))

6629{)

91261100

200700I

365800

325,100350.200

165,101)675,3110

t177,900)840,40))

250,100en’,

cnn

1,360,80))C

on-Ker

Cotutnjetiou

Corporanon-

Proposalto

Credslur

Statement

ofProjectedCash

flowfor

liePeriod

Jatttiars-D

ecember

20)8

CIR

TtF

IC,V

fTO

Y

TI[FPU

RPO

SEof

thisStalm

oejitof

ProjectedC

ashhow

isto

providecrcditois

with

tilhieienlinfontm

tionto

zmke

aniitfonned

decIsionietarding

he?roponh,

mid

tofilly

thscboseto

theTm

s!eeand

theO

flicialR

eceiver,the

Claleof C

on-Ker

Conahnictinn

Corpoflitioti’s

hinaiteiahafihira.

ThisSintentest

ofProjecird

Cashthot

isprepared

puissantto

therequirentent.s

afectiotts

5O.I(2)(a)and

5O(&

tfa) ottheB

aitkntptcym

idbnsoIvenc

ActsitU

solelyfor

thatpurpose

Dated

this5th

dayot’lrebniaw

20111.C

on-Ker

Contoiciion

Colporittion

PPllo

I’er1)i,t

Marchioni

Dated

lbsSib

do3ofF

’(118

CR

OW

ES

otA

NIN

eend

boocir

’cc

Actins

inre

rou

:ti

ofCoit-K

erC

ustructionC

oniputtv

EXHIBIT

Inthe

Matter

ottheP

roposalotC

on-Ker

Coosh-uction

Corporation

Draft

Statem

entof Am

endedC

ashFlow

forthe

Period

January-D

ecember

2018

jan-18F

eb-18M

ar-18A

pr-18M

ay-18jun-18

Jul-18

600,000300,000

(300,000)

205,000

45,000

‘n1R

600,000

(600,000)

205,000

45,000

Oct-18

Nov-18

Dec-18

Total

300,000

45,000

800,000

300,000

45,000

Cash

Inflows

Project1-

James

Snow500,000

2,800,000Jam

esSnow

holdbacks350,000

Deduct

Anticipated

Liens

toclear

(90t),00t))Project

2-Streetsvitle

120,000300,000

300,0002,510,000

Streetsvilleholdbacks

238,000238,000

StreetsvitleD

elayedC

taim180,000

Deduct A

nticipatedlien

sto

clear(43,000)

(43,000)M

iscincom

e/servicecall

0

Saleof

Equipm

ent-Dum

ptrucks70,000

20,00075,000

75,00075,000

435,000H

oldbacksother

projects100,000

140,000240,000

350,000

300,000300,000

180,000

20,00050,000

50,000

Total

Cash

flowrrom

Income

00

385000

250000

270000945

0001

165000

975000

515000

725000

350000

230000

5$10

0000P

rojectD

isbursements

00P

roject1

Expenses

James

Snow0

Subtrades60,000

150.000175.000

200.000250,000

200.000275.000

1310.000C

on-Ker

expenses,labour

andm

alerial80.000

100,000150.000

150.000175.000

175.000200.000

1.030.000Insurance

Bond

0P

roject2

Exncnses

Streetsvifle

0Subcontraclor

100.000100.000

200.000250.000

300.000200.000

200.000410.000

1.760.000C

on-Ker

material

52.00016.200

40.00040,000

40,00040,000

40.00040.000

308200C

on-Ker

labour0

insuranceB

ond

0T

otalP

rojectD

isbursements

52.00016,200

140.000280.000

490.000615.000

690.000665.000

575.000885.000

00

4.408.2000O

neratineE

xoenses0

PavollE

xpensesfind.

Rem

ittances)50,448

65.00030.000

30.00030.000

30.00030.000

30.00030.000

30.00012.000

12.000379.446

Rent

13,50013.500

15.00015.000

15.00015.000

15.00015.000

15,0000

00

132.000V

ehicle/Euuipm

entE

xpenses26.062

030.000

20.00020.000

15,00015.000

15.00015.000

00

0156.062

Hvdro

2.0002.000

2.0002.000

2.0002.000

2.0002.000

2.0002.000

2.0002.000

24.000W

ater500

500500

500500

500500

500500

500500

5006.000

Gas/fuel

97237.000

5.0005.000

7.0007.000

7.0007.000

5.0002.000

2.0002.000

65.723B

ellC

anada5.000

5.0005.000

5.0005.000

5.0005.000

5,0005.000

5.0005.000

5.00060.000

Office

Expenses

1.0001.000

1,0001.000

1.0001.000

t.0001.000

1.0001.000

1.0001,000

12.000Shop

Exoenses

1.0001,000

1.0001.000

1,0001,000

1.0001.000

1.0001,000

1.0001.000

12.000T

otalO

peratineD

isbursements

109.23395.000

89.50079,500

81.50076.500

76.50076.500

74.50041.500

23.50023.500

847233M

iscand

Other

Exuenses

Bank

Charnes

682400

400400

400400

400400

400400

400400

5.082Professional

Fees-C

SI(T

rustee)0

015.000

15.00015,000

15.00015.000

15.00010.000

10.00010.000

10.000130.000

Professionalfees-

Trustee);

Counsel

(Aird

&B

erlis)0

010.000

10,00010,000

10.00010.000

10.00010.000

10.00010.000

10.000100.000

ProfessionalFees

-L

enalC

ounsel(C

haitons)10.000

020.000

20,00020.000

20.00020.000

15.00015.000

10.00010.000

10.000170.000

HST

Rem

ittances(E

stimated

asa

Monthty

Credit)

00

00

00

00

00

00

0W

SIB0

0SOt)

500500

500500

500500

500500

5005.0(10

Total

Misc

andO

therE

xpenses10.682

40045.900

45.90045.900

45.90045.900

40.9QQ

,35.900

30.90030.900

30.900410.082

‘ra1D

1em

diii

600a.iáe

n400

s’

400S

u4LJi4

6854

01*2

40054

400w

4A

0I

5.C6S.515

rIn;n

oC

mh

Net

Cash

Flow(171,915)

(111,600)109,600

(155,400)(337,400)

207,600352,600

192,600(170.400)

(232,400)295,600

175,600O

oeninnC

ash210

1flA

75

78875

1RR

I7cllf

l7fllJ.3

25

111)6.725;245.8

75

338.475268.075

35.675331.2

75

190.47578.875

188.47533.075

(314325)(106.725

245,875438.475

268.07535.675

331.275506.875

506,875

Daled

this23rd

dayof

February2018.

Court

Fil

eN

o.32

-233

8424

INT

HE

MA

TT

ER

OF

NO

TIC

EO

FIN

TE

NT

ION

TO

MA

KE

AP

RO

PO

SA

LIN

BA

NK

RU

PT

CY

CO

N-K

ER

CO

NS

TR

UC

TIO

NC

OR

PO

RA

TIO

NO

FT

HE

CIT

YO

FO

AK

VIL

LE

INT

HE

RE

GIO

NA

LM

UN

ICIP

AL

ITY

INT

HE

PR

OV

INC

EO

FO

NT

AR

IO

ON

TA

RIO

SU

PE

RIO

RC

OU

RT

OF

JUS

TIC

EIN

BA

NK

RU

PT

CY

AN

DIN

SO

LV

EN

CY

FIR

ST

RE

PO

RT

OF

PR

OP

OS

AL

TR

US

TE

E

Cro

we

Sob

erm

anIn

c.L

icen

sed

Inso

lven

cyT

rust

ee2

St.

Cla

irA

venu

eE

ast,

Sui

te11

00T

oron

to,

Ont

ario

,M

4T2T

5T

el:

416-

929-

2500

Fax

:41

6-92

9-25

55H

ans

Riz

arri

,C

PA

,C

A,

LIT

,C

IRP

Lic

ence

:26

80H

ans.

Riz

arri

@C

row

eSob

erm

an.c

om