Kardell Paper Co Legal Counsel

To: Kardell Paper Company Directors

From: Kardell's Legal Counsel

Date: January 18, 2012

Subject: Concerns Related to Sonox Emission Issues

Dear Board of Directors,

As Kardell's Legal Council we are concerned with this issue that has arose about the sonox found in the Cherokee River. The Kardell Company has worked extremely hard to make sure it is observing properly all existing regulations on emission levels. There is no proper evidence indicating that we are the only company responsible for the sonox found in the river. We do understand that there have been health concerns that might be linked to the sonox waste within the river, but we still find it prudent to wait for the government's response on the levels of sonox that can be emitted by the company. We also feel that because of the disregard of previous cases, related to the waste material sonox, the situation may turn out he same and nothing will happen through all the hard work and long waiting.

Even though Kardell is not the only company dumping into the river, it is imperative that we as a company look at our part individually. Legally, the company is within its rights, but also it should be responsible for the community’s welfare. Sonox levels will continue to increase and more people will become ill. If the company does nothing, in the future the company could lose its reputation, and if illnesses increase, the company will lose money.

Thank you,

Legal Counsel