MATERIAL AND
SPECIFIC INVENTORY FOR AN ADDITIONAL 11616 BAGS
BASED ON OUR DISCUSSIONS AND SOME SUBSEQUENT THINKING WE PROPOSE THE FOLLOWING
SHOULD 1W SUPPLY PROS DISTRIBUTORS OR OTHER THIRD PARTY NOT COMPENSATE SUPPLY PRO FOR TERMINATING BOOM DELIVERIES
OR SHOULD BP NOT RESUME SUCH DELIVERIES FROM SUPPLY PRO OR SUPPLY PROS DISTRIBUTORS
TOGETHER AND INDEPENDENTLY SUPPLY PRO AND ECOSORB WILL CONTINUE THEIR EFFORTS TO SELL THE EXISTING ECOSORB
INVENTORY OF 6912 BAGS FOR PERIOD OF MONTHS ENDING FEBRUARY 12011 SUPPLY PRO WILL BE INVOICED FOR
WHATEVER OF THIS INVENTORY REMAINS AT THE END OF THAT PERIOD OUR VENDOR HAS CONDITIONALLY AGREED TO ACCEPT RETURN OF THE UNUSED RAW MATERIAL SUBJECT TU THEIR ANALYSIS
APPROVAL AND IF APPROVED TRANSPORTATION HANDLING AND RESTOCKING FEES THE TOTAL COST OF PROCESSING AND
RETURNING THIS UNUSED MATERIAL WILL BE 12750 IF WE ARE TO RETURN THE MATERIAL WE HAVE TO NOTIFY THEM BY
WEDNESDAY AUGUST 18 TO START THEIR EVALUATION AND ACCEPTANCE PROCESS IF WE DO NOT RETURN THE MATERIAL AND IT IS CAREFULLY MAINTAINED THERE IS SHELF LIFE OF MONTHS THE DECISION TO BE MADE IS WHETHER TO RETURN IT NOW OR TO RETDIN IT IN THE HOPE OF UTILIZING AND SELLING THE ADDITIONAL 11616 BAGS OF KSORB HYDROPHOBIC TO BE
MANUFACTURED PLEASE GIVE THIS YOUR IMMEDIATE ATTENTION AND ADVISE WHAT YOU PREFER AS TIME IS OF THE ESSENCE IN
GETTING THE RETURN PROCESS STARTED AND COMPLETED IF YOU ELECT FOR US NOT TO RETURN THIS MATERIAL ANY REMAINING ON HAND ON JANUARY 2011 WILL BE PROCESSED INTO FINISHED KSORB HYDROPHOBIC AND INVOICED TO SUPPLY PRO
PT XH1BIT BIOCEL 001387 JI9AL WE WILL WAIVE THE REMAINING PURCHASE REQUIREMENT OF A6320 BAGS 34848 LESS 6912 ON HAND AND LESS 11616 IN
PROCESS
SHOULD BP SUPPLY PROS DISTRIBUTORS OR OTHER THIRD PARTY COMPENSATE SUPPLY PRO FOR TERMINATING BOOM DELIVERIES OR SHOULD BP RESUME SUCH DELIVERIES FROM SUPPLY PRO OR SUPPLY PROS DISTRIBUTORS AND IRRESPECTIVE OF THE ABOVE
IF COMPENSATED ECOSORB WILL BE COMPENSATED BY SUPPLY PRO IN THE SAME PROPORTION AS SUPPLY PRO IS
COMPENSATED LESS THE RESTOCKING FEE OF 12750 OUTLINED ABOVE IF THE RAW MATERIAL RETURN OPTION IS ELECTED BY
SUPPLY PRO IF DELIVERIERS ARE RESUMED ECOSORB WIU RESUME DELIVERIES IN THE SAME PROPORTION AS SUPPLY PRO RESUMES DELIVERIES
ANY COMBINATION OF COMPENSATION OR DELIVERIES TO SUPPLY PRO WILL BE ALSO HANDLED IN THE SAME PROPORTION OF
COMPENSATION AND DELIVERIES TO ECOSORB OTHER THAN THE OFFSET FOR THE 12750 RESTOCKING FEE SHOULD SUPPLY PRO ELECT THAT OPTION THERE WILL BE NO OTHER
OFFSETS TO COMPENSATION OR QUANTITIES DELIVERED
SUPPLY PRO WILL NOTIFY ECOSORB IN TIMELY MANNER IN THE EVENT COMPENSATION AND OR DELIVERIES ARE PROVIDED OR RESUMED AS OUTLINED ABOVE
WE UNDERSTAND THE DIFFICULTIES THIS SITUATION HAS CREATED FOR BOTH OF US AND BELIEVE THIS IS REASONABLE SOLUTION AS UNDERSTAND IT SUPPLY PRO RELIED ON PURCHASE CONTRACTS AS THE BASIS FOR THEIR PURCHASE ORDERS TO US ACCORDINGLY YOU SHOULD EXPLORE WHATEVER RECOURSE YOU MAY HAVE BELIEVE IT IS HIGHLY LIKELY THAT BP WILL MAKE