Exotherm Technology, Inc. — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation 400 Seventh St., S.W. Research and Washington, D.C. 20590 pecial Program Idministratio: AUG 28 2002 Mr. Robert W. Stephens Exotherm Technology, Inc. Vice President of Operations Reference No. 02-0183 5544 Riverton Court Plano, TX 75093 Dear Mr. Stephens: This is in response to your June 24, 2002 letter and recent telephone conversations with Eileen:; Edmonson of my staff concerning whether your company's product, a fish attractant pellet, would be subject to the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). You state each pellet weighs 10 grains (.648 grams) and is composed of 0.26 grams of magnesium. You state 8 pellets are hermetically sealed individually onto a bag, and further packed in an outer fiberboard box. The outer fiberboard box will contain 100 polyethylene/aluminum foil blister packaging that is packed inside a re-sealable polyethylene re-scalable bags. Based on the information you provided, it is our determination that the fish attractant pellet is in a quantity and form that does not pose a hazard in transportation and, therefore, is not subject to the HMR, regardless of the number of fish attractant pellets contained in one outer package. However, this determination does not apply to fish attractant pellets shipped in another type of packaging or those containing more than 0.26 grams of magnesium. I hope this satisfies your request. If we can be of further assistance, please contact us. Sincerely, Thattiz, Mitchell for Edward T. Mazzullo Director, Office of Hazardous Materials Standards 173.124 020183#

Page 2Edmonson June 24, 2002 8/73..124 Mr. Edward T. Mazzullo Director, Office of Hazardous Materials Standards 00 Seventh Street, S. W I.S. Department of Transportatio Definitions Washington, D.C. 20590 02-0183 Dear Sir: Over the past few years, our company has been in the process of developing a novel FISH movement when inserted into a plastic fishing tube. The associated noise and movement are initiated ATTRACTANT PELLET utilizing the attributes of a magnesium alloy to provide noise and the serious sport fisherman and commercial success for our company. We filed for patent protection upon contact of the FISH ATTRACTANT PELLET with water and does, indeed, suggest benefit to on 3/21/01 with U.S. Patent Application # 09/812,414. As we approach the production phase with this new product, we need clarification of DOT requirements for transport. Our FISH ATTRACTANT PELLET is composed of a magnesium alloy, material is a provider of the flameless ration heater (FRED) used in military mcals ready to eat blended with a high and low density polyethylene with 15% salt added. Our supplier of basic (VIRE's) which have been previously discussed with your organization in relation to hazard class 4.3. (See attached.) Our FISH ATTRACTANT PELLET weighs only 10 grains (~700 per pound) and will be packaged under humidity-controlled conditions. Each individual package will contain eight pellets and will be double sealed for shipment. (A similar package is included.) compared to eight gram of magnesium in a single FRH, it seems reasonable that the FISH Since a package of eight FISH ATTRACTANT PELLETS have only two grams of magnesium ATTRACTANT PELLETS pose significantly less risk as a "dangerous when wet" hazard than the FRH. It appears that your determination "that a single FRH device, containing eight grams of nagnesium alloy or less packaged in a tough plastic envelope within an MIRE, is in quantity and forr Regulations (HMR), regardless of the number of MREs in a package" could be prudently applied to hich does not pose a hazard in transportation and is not subject to the Hazardous Material the FISH ATTRACTANT PELLET. I hereby request your interpretation and clarification on an urgent basis. Blet Hephers Vice President of Operations Robert W. Stephens Exotherm Technology, Inc. (ExoTech) Piano, Texas 75093 5544 Riverton Court Fax: 903.769.0618 Phone: 903.769.0700 Email: ExoTech@att.net#

Page 3of Transportation US Department Special Programs Research and Administration MAR I 8 1999 8909 C Complex Drive Neal Langerman, Ph.D. Ref. No. 98-0345 San Diego, CA 92123-1418 Dear Dr. Langerman: This is in response to your letter and telephone conversations with a member of my staff regarding clarification of the requirements for shipping flameless ration heaters (FRE) in full pack (multiple) quantities or in single units as components of meals, ready-to-eat (MRE), and a previous letter dated for the delay in responding and hope it has not caused any inconvenience. July 7, 1992 to the Department of Defense (DOD) concerning classification of these items. I apologize The FRH is a device packaged in a tough plastic envelopc which, when water is added, generates heat •.. to warm a field ration. It is used in military meals, ready-to-eat (MRE), and each MRE includes one FRH. You indicated that the magnesium alloy contained in the FRH meets the definition of Division 4.3 (Dangerous When Wet). eight grams of magnesium alloy or less packaged-in a tough plastic envelope within an MRE, is in a Based on the information you provided, itis our determination that a single FRH device, containing quantity and form which does not pose a hazard in transportation and is not subject to the Hazardous Materials Regulations (HMR), regardless of the number of MREs in a packages This determination does not apply to FRH devices shipped separately from MREs, or to FRH devices containing more than eight grams of magnesium alloy, which must be shipped in conformance to the applicable requirements of the HMR. I hope this satisfies your inquiry. If we can be of further assistance, please contact us. Sincerely, Director, Offiace of Hazardous Materials Standards 173.124 -#