Hi [hl][Client Name][/hl]

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We have reviewed your recent correspondence against the executed Agreement.

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For clarity, Clause 4 of the Agreement states that the contract is non-cancellable during the Initial Term and that payment obligations are not contingent upon utilisation once production has commenced.

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Production and strategic development were initiated in accordance with the agreed scope. As such, the Agreement remains fully binding and enforceable.

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Your recent notice purporting to cancel “effective immediately,” and/or the withholding of payment, constitutes a default under the Agreement.

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Under the terms agreed, PHMG reserves the right to:

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• Enforce the full remaining value of the Initial Term
• Recover any outstanding sums immediately due
• Recover applicable interest and reasonable costs of collection as provided for in the Agreement
• Pursue all remedies available under governing law

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We would prefer to resolve this commercially and avoid formal escalation. To that end, please confirm by [hl][5 business days from today][/hl] that:

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1. Outstanding invoices will be brought up to date, and ?
2. The Agreement will proceed in accordance with its terms.

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Absent confirmation within that timeframe, the matter may be referred for formal recovery action without further notice.

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We remain willing to discuss a structured resolution this week should you wish to do so.

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Kind regards

[hl][CSD Name][/hl]

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