The Procter & Gamble Company
Legal Division
1 P&G Plaza
Cincinnati, Ohio 45202-3315
September 5, 2002
Re: Cyclopss Corporation
Dear Mr. Toland:
This responds to your letter dated August 15, 2002 to Mr. A. G. Lafley, which we received on August 22, 2002, and in which you raised concerns about your holdings in Cyclo3pss Corp. (“Cyclopss”).
While we are unable to address your specific concerns regarding Cyclopss stock, we are able to provide some background from the perspective of The Procter & Gamble Company (“P&G”).
We have worked in good faith with Cyclopps since the late 1990s when the ozone firm first approached us. In January 2000, we extended a $1 million loan to Cyclopss. We have continuously been supportive of their endeavors in advancing their technologies, extending our loan agreement twice over the years. In June, Cyclopss notified us that the company was in default under the terms of its loan agreement with Procter & Gamble and had no prospects for financing the company and addressing the default. As a result the note became due in accordance with the terms of the loan agreement.
P&G has invested a significant amount of money and personnel resources toward the operational funding and development of Cyclopss technologies over the last two and one half years without any financial return, including the deferral of all interest payments. We have not foreclosed on any of the assets securing P&G’s loan. So far, P&G has only called the loan due pursuant to the terms of the loan agreement.
As a shareholder and creditor of Cyclopss we are following the developments of the company. Since our role is limited, however, we recognize that Cyclopss itself is responsible for the future direction of the company. We remain hopeful that Cyclopss will find ways to overcome its current situation and will turn around and find ways to commercialize its intellectual property portfolio.
For specific questions regarding Cyclopss stock and any disclosures and public filings by Cyclopss regarding the existing agreements between P&G and Cyclopss, we encourage you to contact Cyclopss and/or its transfer agent directly. We hope you find this information helpful.
Sincerely,
Marco R. Kerschen
Counsel, P&G Legal Division |
