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Black Swan Mfg. Co. has recently opened a new distribution center in Chicago.
Previously Black Swan had rented space for its distribution center. Now, Black
Swan owns the new facility. The advantages of the new facility are that we own
the facility, more space, located closer to the manufacturing plant, and should
allow us to be far more efficient in shipping our products.

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The world has adopted a new system for Material Safety Data Sheets and
labeling products. This new system is known as GHS-globally harmonized
system. The concept is to make the entire world on the same page when it
comes to labeling products and when it comes to providing material safety
data sheets (now known as GHS Safety Data Sheets).

The key features of the system includes pictograms (symbols showing the
dangers of products), hazardous statements, precautionary statements,
first-aid statements, storage statements and disposal statements.

Black Swan has completely updated all of our GHS Safety Data Sheets and
most of our labels are now GHS compliant. If any Black Swan customers
need help in understanding the new GHS system, do not hesitate to contact
us.

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Another major change at Black Swan in packaging is that we are now
adding pictures to many of our labels. We feel this improves the look of the
package and helps the end user obtain a better idea of what the product
actually does.

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Black Swan is also working on a new product that is similar to our No-Hub
Sealant. No-Hub Sealant can only be used on metal piping systems. This
new product will be able to be used on plastic piping systems. The new
product (which does not have a name at this time) will allow the end user
to work with rubber gaskets on plastic pipe and make a better seal.

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Black Swan has already added some new products  to our line that is not
mentioned on our price sheet. These products are as follows:

Stock No. Product Size Pack
       
08420 Combo Pack Cement Primer 1/4 pt. 6
11001 Fitting Brush - Blister Card 1/2" 12
11006 Fitting Brush - Blister Card 3/4" 12
11031 Tube Cleaning Brush - Blister Card 1/2" 12
11039 Four-In-One Cleaning & Fitting Brush
Blister Card
1/2" x 3/4" 12
11057 Acid Brushes - 3 Pack- Blister Card 1/2" 12
11130 Utility Brushes - Blister Card -- 12
18235 Plastic Hanger Strap 3/4" x 25' 20
18350 Interlocking Hanging Iron 3/4" x 10' 12
18420 J-Hooks 1-1/2" x 7" 6
18430 J-Hooks 2" x 7" 6

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Black Swan is currently working on our computer system to do the following:

    a.) Acknowledge all purchase orders via email.
    b.) Provide customer with a proforma invoice before shipment. This will
         allow the customer to analyze the order and to make sure Black
         Swan is shipping the correct product at the correct price. If there are
         any corrections on the purchase order, (wrong quantity, incorrect
         price, incorrect shipping information, etc) this will be noted at this time.
         At this time Black Swan will give estimated ship dates and estimated
         arrival dates.
    c.) After the order is shipped, Black Swan will send the customer notice
         that the order has been shipped.
    d.) Invoices will be sent via email. We hope this system will be in place
         by 12/31/16.

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Black Swan is currently evaluating all freight carriers that we use. We need
to lower costs, improve transit time, and improve the quality (damages,
shortages, etc) of the shipments. Our goal is to complete this analysis by
12/31/16.