January 14, 2016 VIA FACSIMILE AND OVERNIGHT DELIVERY, Christopher Manlove Pennsylvania Bureau of Workforce Development Partnership Rapid Response Coordination Services 12" Floor Labor & Industry Building 651 Boas Street Harrisburg, PA 17121 Facsimile: (717) 783-7115 Re: Notice of Job Losses Resulting From the Relocation of Product Lines Dear Mr. Manlove: ‘This Notice is being issued in connection with the anticipated layoff of employees due to the relocation of certain product lines at Cardone Industries, Inc.’s (the “Company”) facilities located at $501 Whitaker Avenue, Philadelphia PA 19124 (“CDC”) and 5670 Rising Sua Avenue, Philadelphia PA 19120 (“Rising Sun”), The purpose of this Notice is to satisfy the notice requirements of the Worker Adjustment Retraining and Notification Act (“WARN”) to the extent applicable. The Company does not, however, concede that any legal obligation exists pursuant to the WARN Act or any other law. On or about May 9, 2016, the Company will terminate permanently the employment of approximately 11 employees at its CDC facility and approximately 31 employees at its Rising Sun facility in connection with the relocation of the product lines, Further job terminations are expected to occur on a monthly basis between on or about May 9, 2016 and on or about May 31, 2018. It is currently expected that these finther terminations will impact approximately 1,324 additional employees. The Company will be providing outplacement support to employees. All of the terminations are expected to be permanent. This Notice summarizes the information available to the Company at this time relating to these anticipated employment terminations. If you have any questions or require further information, please contact me at 215-912-3703. Sincerely, CARDONE Industries, Inc. + World Headquarters ‘5507 Whitaker Avenue * Philadelphia, PA 19124-1799 Telephone: 215.912.3000 + Facsimile: 215.912.3700 + Web Site: wiwwscardone.com