May 25, 2012

In March 2012, an administrative agreement was reached between 1 René-Lévesque inc., its directors, Michel Cholette, Philippe Cholette and Jean Gagnon, and the Autorité des marchés financiers (the AMF) to normalize an irregular distribution matter relating to the sale of hotel units in the Hotel Zero 1 real estate project.

The purpose of the normalization process and this agreement is to allow 1 René-Lévesque inc. to distribute hotel units with an option-to-lease program under a prospectus exemption granted by the AMF. Under the agreement, 1 René-Lévesque inc. undertakes that the document used to present the distribution will contain all relevant information regarding the terms of the Hotel Zero 1 lease program, including a description of the irregular distributions and a summary of the agreement with the AMF. Also under the agreement, 1 René-Lévesque inc. has paid the AMF an administrative penalty of $40,000.