THREATENING TERMINATION OF 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.

Please accept this letter as our formal notice to you that unless you take immediate steps to replace the defective product and ensure adequate quality in the future, we will have no alternative but to terminate the Agreement without further notice.

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

Regards
Lydia