Price Increase Announcement 2015 – Hedwin Division Products

January 8, 2015

Valued Customer,

Effective February 27, 2015, The Hedwin Division of Zacros America will implement a seven percent (7%) general price increase for our CUBITAINER®, Liner and Blow Molded product lines to address increased labor, health care and utility costs.

As your company needs to address the rising costs for these items, so does the Hedwin Division of Zarcos America. The Hedwin Division can no longer absorb the escalating costs for these items and as such must increase its prices.

We realize that the costs of LDPE, LLDPE and HDPE thermoplastic resins have decreased as of the first quarter of 2015. The reduced costs of thermoplastic raw materials have already been accounted for as part of this general price increase announcement.

If you under a current sales agreement with the Hedwin Division of Zacros America this particular price increase will be implemented per the terms of our negotiated agreement. In that case, this letter is being sent to you for informational purposes only. All other Hedwin Division of Zacros America customers that are not under a sales agreement will receive this price increase effective February 27, 2015.

Orders placed upon us prior to February 27, 2015 and that will ship before that date, or within thirty (30) days after this general price increase is to go into effect, will be honored at pre-price increase unit prices. Orders placed upon us on February 27, 2015 and thereafter will be priced per this general price increase.

On behalf of everyone at the Hedwin Division, I thank you for your continued business and for the right to earn it …. every day.

Sincerely,

Richard F. Broo

President/CEO