TERMINATING AN AGREEMENT: UNSATISFACTORY PRODUCT

Dear Felix

We refer to the Manufacturing Agreement between [NAME OF FIRST PARTY TO AGREEMENT] and [NAME OF SECOND PARTY TO AGREEMENT] dated [DATE OF AGREEMENT, ex. January 5, 1996].

As you are aware, we have been experiencing numerous problems with the [NATURE OF PRODUCT, ex. polymer resins] you have been supplying. The details of these problems have been communicated to you in our previous correspondence, and you have not satisfactorily addressed the problems, despite repeated requests by us.

Please accept this letter as our formal notice to you that we will be terminating the Agreement effective [EFFECTIVE DATE OF TERMINATION OF AGREEMENT, ex. August 1, 1998].

We regret having to take these measures, however our previous requests do not appear to have been met.

Regards
Lydia