Non-Compliance with Benefit Corporation Requirements

Memo

To: Paul Lute, CEO, Sporks Unlimited

From: Clara Greengrass, VP of Procurement, Sustainable Restaurant Supplies

Date: 08/18/2018

Subject: Non-Compliance with Benefit Corporation Requirements

In January 2018, Sporks Unlimited became a Benefit Corporation and entered into a partnership with Sustainable Restaurant Supplies (SRS). The foremost requirement of this partnership was that your company would fulfill its obligation as a Benefit Corporation and show that it was providing a positive environmental or societal benefit via a third-party public benefit assessment report. As of the most recent report in August 2018, Sporks Unlimited is still producing 2.3 tons of landfill waste monthly, a value which remains unchanged from the start of the year. If your company is unable to fulfill its requirements as a Benefit Corporation, SRS will be forced to terminate our partnership.

SRS is committed to providing restaurant supplies to its customers that are environmentally friendly and ethically produced. Each of our suppliers is a Benefit Corporation that has shown to provide a positive effect on the environment within six months of the start of our partnership. Despite our purchases of over $35 million in products from Sporks Unlimited, in eight months you have been unable to fix the production inefficiencies that result in so much unnecessary waste.

To decide the future of our partnership, we are requesting that you schedule an additional audit for September 30, 2018. I would like to review the results with you and your production managers in person as soon as they are available. I hope your team can show that Sporks Unlimited can fulfill its requirements as both a Benefit Corporation and an ethical supplier. Please contact me anytime at (555)-867-5309 or greengrass@SRS.com with questions or to schedule our review of the audit results.

Sincerely,

Clara Greengrass

VP of Procurement