May 31, 2010

HST IMPLEMENTATION:

Dear Customer:

As you are aware, the government is implementing the Harmonized Sales Tax (HST) effective July 1, 2010.

The HST represents a combination of the Federal Goods and Services Tax (GST) and Ontario Provincial Sales Tax (PST).

Commencing on July 1 2010, the PST and your PST exemption number will cease to be used. You will however be required to keep the information and records for the statutory period as well as file your remaining PST returns. Note: Monthly PST returns can be filed up to October 2010 for any product returns.

Attached is a summary of the effect of the HST on items you may purchase from us.

Below is a listing of items to keep in mind:

• HST paid is recovered through the HST returns filed with Canada Revenue Agency, in the same manner as GST.
• There is no need to register for HST if you have previously registered for GST.
• Your HST account number is the same as your GST account number.
• HST disclosure on the invoice follows the existing rules for GST.
• For more information, contact Ontario government @ 1-800-337-7222 or the Canada Revenue Agency @ 1-800-959-5525.
• Online information may be obtained from ontario.ca/taxchange and cra.gc.ca/harmonization

Sincerely,

Mary Lynn Calcott, Chief Financial Officer
Morton Wholesale Ltd