PATRICK K. MARTIN, B.A.,LL.B.,B.C.L.
BARRISTER AND SOLICITER

1370 DON MILLS ROAD, SUITE 300
TORONTO, ONTARIO, M3B 3N7
TEL (416) 847-3359 FAX (416) 847-3358

WITHOUT PREDJUDICE

PRIVATE AND CONFIDENTIAL
Dear Mr. Parent

Re: Zellers Inc. and Parent of Child
Recovery of Civil Damages/Our Case Number ZZZZ ? XXXXXX

I am external legal counsel for Zellers Inc. (the ?Retailer?) with respect to civil recovery matters. It is alleged that on March XX, 2007, a young person under your care and custody, (namely The Child) took unlawful possession of merchandise from the Retailer?s premises located at Zellers Inc, 489 Albert Street N. , Regina, SK. The retailer takes the position that it has right to claim damages from the said your person and/or you as a result of such action based on theft, damages and conversion. The Retailer?s right of civil recovery and payments made to the Retailer are separate and distinct from any criminal proceedings which may be instituted by the police.

The retailer also takes the position that it has the right to claim damages from you as a parent or guardian of the young person for failing to provide reasonable supervision of the young person. You have a right to be represented by a lawyer with respect to this claim.

The Retailer is prepared to settle its claim for damages in return for a payment of $475.00 (the ?Settlement Amount?), received on or before June XX, 2007. If this amount is not paid, I may receive specific instruction, whether or not to arrange for a law firm in your jurisdiction to commence legal proceedings before a civil court for all damages, plus interest, legal expenses, and other administrative costs incurred by the Retailer in connection with this matter. These latter amounts may increase if payment is not made by the noted date. This settlement amount is based on the costs associated with the detection, apprehension, recovery of goods and damages associated with shoplifting, hereafter referred to as Recovery Costs. Retailers have calculated the average Recovery Costs to be approximately $900.00. The settlement amount is significantly lower than the Recovery Costs, however, should the retailer be compelled to prove costs in Court, they would rely on the higher or actual amount of Recovery Costs in any civil claim field.

Should you choose to settle the Retailer?s payment of the Settlement Amount, payment should be made by cheque or money order, made payable to ?CIVIL RECOVERY? on behalf of the Retailer, with your name and the above case number noted thereon. The payment should be sent in the enclosed postage paid envelope or to the following address: P.O. Box 193, Streetsville, Ontario L5M 2B8.

I have been advised that Canadian retailers estimate shoplifting amounts to an annual expense exceeding $4.0 billion. Experience indicates that pursuing shoplifters for such losses reduces the number of shoplifting incidents, resulting in savings which can then be passed on to the consumers. The Hudson?s Bay v. White supports the position that shoplifters, in certain cases, are liable for punitive damages.

Any questions in regard to this matter are to be made in writing, and addressed to the undersigned.

Yours truly,

Patrick Martin , B.A.,LL.B.,B.C.L.

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