NOTICE TO DEFAULTER: COLLATERAL DEMANDED

Dear Felix

Regretfully, unfortunate circumstances have caused us to write this letter to you.

We are writing to inform you that you are in default under our security agreement of [DATE, ex. January 5, 1998] for the following reason {s}:

[LIST REASON (S), ex.

Failure to pay second installment of $12,000 per clause 4(b)]

As provided in our security agreement, we hereby request and demand that you surrender possession of the collateral listed therein to us immediately.

Regards
Lydia