Angie,

We are still awaiting the remainder of your payment for the resolution of your account balance.

As you previously arranged with our CFO, Matt Berke, we can waive the restocking fees on your returns if you meet the agreed-to payment level.

You are barely short of the agreed-to amount and therefore very, very close to having this all resolved.

Please remit the remainder of the agreed-to amount and we can close the door on this whole matter.

Thank you,

Jeff Crews

Collections Specialist

Ph. 678-924-5220

From: Angela Velasquez [mailto:angie@parableink.com]

Sent: Wednesday, March 18, 2009 11:05 AM

To: Jeff Crews

Subject: Re: Your Account Balance

The matter is being handled by my attorney since I have paid in full all amounts agreed to in writing and have paid in full for all merchandise that I actually retained possession of. My attorney is in contacts with Matt Burke as per the recommendation of a representative of Alternative Apparel, so I believe you will no longer need to email me regarding this matter.

Regards,

Angie Velasquez

Parable Ink

On Mar 19, 2009, at 10:35 AM, Jeff Crews wrote:

Angie,

I have verified that your attorney has never contacted Matt Berke, our CFO.

You have signed a CC Authorization form with Alternative and will be charged at the end of this month if arrangements are not made.

You have received credit for everything that has been physically returned to us and did not pay the agreed-to amount at which point we would have waived your restocking fees.

Jeff Crews

Collections Specialist

From:   angie@parableink.com

Subject:    Re: Your Account Balance

Date:    March 19, 2009 6:17:39 PM EDT

To:   jeff@alternativeapparel.com

Cc:      revins@evinslegal.com
Jeff,

I am considering this harassment and will certainly include the record of this correspondence during litigation. My attorney, if he is not in contacts with Matt yet, will be in the near future. As you know it takes time to review all the information at hand. Additionally, I never signed any CC authorization form with you or any representative of Alternative Apparel. If you attempt to charge the card I used for the 13K portion of my last payment, then you should know that the cardholder is international and has no contracts with Alternative Apparel or any of its representatives or myself. Or in simple terms, you will be making an illegal unauthorized charge and I will certainly notify this individual of your intent so that he may notify his credit card company. Please do not email me further regarding this issue.

Regards,

Angie Velasquez

Parable Ink

Angie,

As I mentioned yesterday, we’d like to go ahead and obtain payment for the balance not in dispute for your account.

We were unable to run the card that you requested last week for $ 12,000.

Can you please clear the account for this amount, or advise with a different credit card?

Thank you,

Jeff Crews

Collections Specialist

Ph. 678-924-5220

From:   angie@parableink.com

Subject:    Re: Your Payment

Date:    January 28, 2009 4:24:45 PM EST

To:      jeff@alternativeapparel.com

Jeff, I will mail a check. I need an invoice detailing exactly what invoices and quantities this check will be applied to.

Angie

From: Amanda Piola 
Sent: Tuesday, February 03, 2009 12:00 PM
To: Mary Kathryn Dean; Jeff Crews; Angela Velasquez; samy@parableink.com
Cc: Jessica m. Castillo
Subject: RE: Parable Ink – Returns and Credits

Angie,

At this point we have given you 2 months to work through any discrepancies you have.  We have given you credit for any items that were overlooked on our end initially, and our case is closed. As Mary Kathryn wrote to you previously, “we have given this matter thorough attention and have given you the opportunity to reduce your liability by making these returns.  If we do not obtain payment for your balance by February 13, we will unfortunately have to refer your account to a third-party collections agency for contact and potential legal action, as we do with all delinquent accounts.”

We have been more than accommodating to you in this situation, and hope you would return the respect of the exceptions to our policies we are granting you.  Please review the below email from Mary Kathryn and the attached return request form, for all details regarding the amounts you are being credited, the amounts that you still owe, and when they are due.

Thank you,

Amanda

amanda s. piola

alternative brand rep

p: 678.924.5237

f: 888.718.7609

www.alternativeapparel.com

Date: February 10, 2009 12:47:42 PM EST

To: mary Kathryn Dean <marykathryn@alternativeapparel.com>

Subject: Fwd: Parable Ink

Mary,

As per Matt’s email I have been awaiting a response regarding box capacities.

Over the weekend I was able to locate 2 more tracking numbers* from your issued call tags that are not on your records.** I also noticed upon closer inspection that of the tracking numbers you have on record, two CM’s are repeated for separate tracking numbers.***

Let us resolve this issue ASAP.

The returned goods are being sent today via UPS after I and another individual count and notarize a final spread sheet of what’s actually inside each box. If you will not honor a record like this I ask that you call me immediately because I will not be by email and am more than willing to drive the boxes to your warehouse in Atlanta to do a live count.

Regards,

Angie Velasquez

Parable Ink

(713) 478-2360

*1Z40V8832659395269

1Z40V8832658234284

**On Jan 27, 2009, at 10:33 AM, Jessica m. Castillo wrote:

Fed Ex tracking # for the replacement order # 2099543: 031859431182928

UPS tracking # for call tag for order # 2098737: 1Z40V8832653632648

UPS tracking # for call tag for order # 2099894 and 2099906: 1Z40V8832660011573

UPS tracking # for call tag for order # 2099900 and 2099899: 1Z40V8832659752749

***Note that for order #2099900, on this page, you have 2 separate tracking numbers listed here. The 2nd is 2 lines below. Also note that this is the CM you said had 3 other tracking #’s associated with it. That would total 5 tracking #’s, or 5 boxes for what was 200 pieces and what you claimed as arriving only as 174 pieces. All 5 tracking #’s do show your receipt too. By “Watson”

UPS tracking # for call tag for order # 2098741: 1z40v8832662649702 and 1z40v8832662580115

UPS tracking # for call tag for order # 2099900: 1z4v8832663808921

UPS tracking # for call tag for order # 2099894: 1z40v8832662488878, 1z40v8832662820089, and 1z40v8832661641695

On Feb 11, 2009, at 11:52 AM, Jessica m. Castillo wrote:

Hi Angie,

I am looking into the tracking #’s you provided.  So far, I can say that the first tracking # is coming up as invalid on UPS’s website.  I am still looking into the 2nd tracking #, so I will keep you updated on that.

You mentioned “two CM’s are repeated for separate tracking numbers,” but you didn’t provide the credit memo #’s or tracking #’s they go with.  Can you please provide those, so Jeff and I can look into it?

Thanks so much!

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

From:   angie@parableink.com

Subject:    Re: Parable Ink

Date:    February 11, 2009 1:30:05 PM EST

To:      jessica@alternativeapparel.com

Jessica, I was told that Mary Kathryn would be handling this. I need to know who is in charge of this because I don’t want to waste everyones time.

As for the tracking number, it’s impossible that it’s invalid. I wouldn’t have the sticker receipt if UPS hadn’t given it to me after taking the package.

Angie

On Feb 11, 2009, at 1:32 PM, Jessica m. Castillo wrote:

Angie,

Mary Kathryn has been at jury duty, so she’s been out of the office.  I don’t want there to be anymore confusion.  I can research this now if you give me the credit memo #’s and tracking #’s for what you’re talking about.

If you go to UPS’s website and track # 1Z40V8832659395269, you will see that it comes up as invalid.

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

From: Angela Velasquez [mailto:angie@parableink.com]

Sent: Wednesday, February 11, 2009 1:39 PM

To: Jessica m. Castillo

Subject: Re: Parable Ink

Jessica, I am more than willing to wait for Mary Kathryn to handle this. This is who Matt Burke assigned to this as an issue that he and she would resolve. As a result, I would rather not drag everyone back into it since we’ve made progress with a smaller number of people doing the research.

Thank you.

Angie

Parable Ink

THEN EVIDENTLY SHE SENDS THIS MESSAGE TO MATT SO HE REPLIES:

From: “Matt Berke” <matt@alternativeapparel.com>

Date: February 11, 2009 1:42:05 PM EST

To: “Angela Velasquez” <angie@parableink.com>

Cc: “Jessica m. Castillo” <jessica@alternativeapparel.com>, “Amanda Piola” <Amanda@alternativeapparel.com>, “Mary Kathryn Dean” <marykathryn@alternativeapparel.com>

Subject: FW: Parable Ink

Angie,

Jess is perfectly capable of helping out with this issue in MK’s absence.  I am interested in resolving this as quickly as possible, rather than worrying about who is looking up tracking numbers.

-Matt

From:   angie@parableink.com

Subject:    Fwd: Parable Ink

Date:    February 11, 2009 2:04:43 PM EST

To:      matt@alternativeapparel.com

Matt,

I’ve copied the email sent to Jessica here. I just want to note however that Jessica has already disregarded my requests to check box capacities and am curious as to how she will now give me a different answer than before, which was simply that “we consider the matter closed”.

Thank you,

Angie

Parable Ink

I HAVE TO LOCATE THE EMAILS BUT THEN HE ASKS ME WHAT THE PROBLEM IS and I REPLY:

From:   angie@parableink.com

Subject:    Parable Ink Box Capacities

Date:    February 12, 2009 11:01:00 AM EST

To:      matt@alternativeapparel.com

Matt:

There were many shirts that I returned and that I was not credited for. When I inquired into when the returns would be credited I was told that the returns were not made. Sometimes it was whole boxes that were claimed to have never been received and other times it was pieces out of boxes I had put together myself and pieces out of boxes I never even opened. So to get to the bottom of it I’m starting with the 2 missing boxes. I asked Jessica to email me all tracking numbers associated with my returns. She sent me a list of 10 tracking numbers. 2 of which were never used. Then I found 3 not on her list, and later 2 more. This is the 1st sign that there must be a data entry error on your end. Here is what she wrote when I found the first 3 not on her list:

Hi Angie,

I looked into these tracking #s and they go with this call tag…

TRK# 1Z40V8832659752749

Customer# 20-PARAINK

Company Name: Parable Ink

Address: 232 3rd street, Unit E001, Brooklyn, NY  11215

Contact Name: Angie

PO# Fall/Holiday

Number of bxs: 4

Weight: 50 lbs

Reason:   This is what she’s returning:

6094ERCHI     S-60    M-20   L-20

6021ERCHI     S-60    M-20   L-20

You wanted to return 200 pcs, so I asked for 4 call tags to be sent to you.  For some reason, the shipping department only provided me with 1 tracking #.  I’ve attached the credit memos for these returns.

Thanks!

My initial argument to this is that you’ve never used 4 boxes to send me 200 pieces. I am providing several examples of actual PO’s where I happened to save the shipping label which states the # of pieces and boxes used. Secondly, I never wanted these pieces because they were a fabric I asked to not be sent so I returned them untouched. Then your receiving department claimed that they only got 7 larges out of each style rather than 20. If this is the case then I was only sent 7. Perhaps they could verify the weight of what was initially shipped to me against the weight of 200 pieces of this style and fabric. This also means that you only got 174 pieces, not 200 and that I sent them in 4 separate boxes which again, I’m arguing against. Here are my examples of your normal box capacities:

Order #2092271. had 1 box for 129 pieces.

Order #2092268 had 1 box for 109 pieces.

Order #2102527 had 1 box for 136 pieces

Order #2099921 had 2 boxes for 280 pieces. I still retain one box of the two, untouched, with 174 pieces in the 1 box and is labeled as having these exact pieces in it on shipment.

Order #2098741 had 2 boxes for 252 pieces.

Order #2098737 had 4 boxes for 530 pieces.

If I can prove that somehow the 4 tracking #’s are not for just these pieces and that somehow there was a data entry error then we can look into tracking what was actually in the 4 boxes. I’m certain that some of what was in the other boxes were the items I was told were never sent. If we can find data entry error here to be the fault then I can make my arguments for he other missing items which are much harder for me to prove but not impossible.

Thank you for your time Matt.

Regards,

Angie

Parable Ink

On Feb 12, 2009, at 3:25 PM, Mary Kathryn Dean wrote:

Angie,

I just want to make sure you understand our return process.  For all returns we ask the customer to fill out the Return Form found on the back of the packing list.   I don’t believe that you have been including this in any of your returns.  There are 2 types of returns: Customer Initiated Returns & Returns that are Alternative’s responsibility.  For customer initiated returns the freight is the responsibility of the customer.  Call tags are sent for returns that are Alternative’s responsibility.

When we issue a call tag we notify our Returns Dept of the estimated number of items coming back and the reason for the return.  We then estimate the number of boxes based on our best guess.  You have inquired about box capacity but that will vary depending on how the customer decides to pack the return.  We might send 3 or 4 boxes for 150 pieces just to be safe.  The customer packs up the product and fills out the form and includes it in the return.  So a customer might only use 1 or 2 and throw the extra call tags away.  In many cases product was included in the return via call tag that we did not approve.  For example we would send you 3 call tags and you would use 1 call tag for the approved return and the other 2 for additional merchandise that you no longer wanted.  When you include merchandise in a call tag that was not approved it causes additional confusion.  In these cases a return form was not included so we had to guess what order to credit.  So one box might have credit memos issued against 3 or more different orders.  A credit memo is sent via USPS mail as soon a return is processed.  This is the point where you should notify us if there is a discrepancy.

We sent you a list of call tag tracking numbers.  Internally we use the lead tracking number when we document call tags that are issued.  We have done an enormous amount of research on your returns.  It seems that at this point there are 2 tracking numbers that are still in question: 1Z40V8832658234284 and 1Z40V8832659395260.  Jess researched and these call tags were received and credited on credit memo 0831716.  This was for the 200 of the 4503 Vintage Black.  In a previous email or spreadsheet we noted that these 3 tracking numbers: 1z40v8832662488878, 1z40v8832662820089, 1z40v8832661641695 for credit memo 0831716 but we were mistaken.  We sent these 3 tracking numbers but you were ill and unable to be reached.  So you used these 2 call tags/tracking numbers: 1Z40V8832658234284 and 1Z40V8832659395260 to return the 4503’s instead.

This has been incredibly time consuming research for us because you did not fill out the return form and have no other documentation to provide.  At this point we feel that we have done all the necessary research on our end.

Thank you,

Mary Kathryn and Jess

From:   angie@parableink.com

Subject:    Re: Parable Ink Box Capacities

Date:    February 12, 2009 3:52:49 PM EST

To:   marykathryn@alternativeapparel.com

Cc:      matt@alternativeapparel.com, jessica@alternativeapparel.com

I will need to know the point of contact for my attorney’s reference.

Regards,

Angie Velasquez

Parable Ink

(713) 478-2360

On Feb 12, 2009, at 5:21 PM, Mary Kathryn Dean wrote:

Angela,

Did you include the spreadsheet of what was in each box with the return?  Do you have an electronic copy you can send me?  Did you send different amounts from the spreadsheet of approved returns (see attached?)

Thanks,

MK

From:   angie@parableink.com

Subject:    Re: Parable Ink

Date:    February 12, 2009 6:45:50 PM EST

To:      marykathryn@alternativeapparel.com

Each box has written on it exactly how many of each style and color are inside. The quantities did vary as I have already relayed to Jessica. Speak with her regarding these issues so that I do not have to constantly repeat this information.

Angie

On Feb 12, 2009, at 6:50 PM, Mary Kathryn Dean wrote:

Angie, did you send back items that we did not approve?

Sent from my iPhone

From:   angie@parableink.com

Subject:    Re: Parable Ink

Date:    February 12, 2009 7:01:37 PM EST

To:      marykathryn@alternativeapparel.com

Please confer with your associate Jessica.

Angie

From:      angie@parableink.com

Subject:    Re: Alternative: Credit Memos for Returned Items

Date:    February 18, 2009 6:02:50 PM EST

To:   marykathryn@alternativeapparel.com

Point of contact for my attorney?

Angie

Date: February 3, 2009 3:48:33 PM EST

To: <angie@parableink.com>

Cc: <samy@parableink.com>, “Amanda Piola” <Amanda@alternativeapparel.com>, “Mary Kathryn Dean” <marykathryn@alternativeapparel.com>, “Jeff Crews” <jeff@alternativeapparel.com>, “Jessica m. Castillo” <jessica@alternativeapparel.com>

Subject: FW: Parable Ink – Returns and Credits

Ms. Velasquez,

I have been advised by my co-workers about the situation with your account, and we need to resolve this matter immediately.  We have been more than accommodating up until this point, and we now feel that it is time to bring closure to your account balance.  The attached return of goods has been approved, despite the fact that the deadline for returns has long passed.  We expect to receive those goods immediately and you will receive the credit of $8,171.86 as promised as soon as we receive the goods in our warehouse.  As for the balance of $23,032.77 I am willing to offer you three options to resolve this:

1)       If you pay by close of business (5:30 EST) on this Friday, February 6, 2009 we will give you an additional discount of $1,532.77.  This would essentially waive the restocking fee.  The amount due on this Friday is $21,500.00.  This is a one-time discount offer that will not be extended past 2/6, or

2)       You can pay the full balance of $23,032.77 no later than close of business on Friday, February 27, 2009, or

3)       Your account will be referred to our attorney and immediate legal action will be taken to collect this debt.  In addition to all of the amounts currently owed, you will be liable for interest on the balance and any related legal fees and court costs.  This is described in further detail in our standard Terms and Conditions, to which you agreed at the time of purchase.  The full text of the Terms and Conditions may be found at https://www.alternativeapparel.com/Wholesale/Terms-And-Conditions.aspx

Please also note that our offer to allow you to return items per below will expire on February 13, 2009.  After that time, the full amount of $31,204.63 will be due in full and no returns will be allowed.

If you have any further questions, please do not hesitate to call me.  I expect an answer from you quickly so that we know how you intend to proceed.  I am hopeful that we may bring this matter to conclusion as amicably and quickly as possible.

Regards,

Matt

Matt Berke

CFO

Alternative Apparel, Inc.

(678) 924-5206 – office

(888) 481-1216 – fax

matt@alternativeapparel.com

From: Angela Velasquez [mailto:angie@parableink.com]

Sent: Thursday, February 05, 2009 11:57 AM

To: Matt Berke

Subject: Parable Ink

Dear Mr. Berke:

We would like to be clear and make sure you and your company understand that it has always been our intention to meet our obligations.

We do recognize we have some accounts payable to settle with Alternative; however, we disagree with regards to the amount owed.  You seem to suggest that the outstanding balance is 23,032.77.  According to our calculations, Parable´s outstanding balance is $20,567.85*, including restocking fee.

At Parable, we take pride in our ethical business practices.  As much as you want, we too want a fair and just resolution to this matter as early as possible.  To us it is a matter of principle.   We hereby  reaffirm our willingness to settle our outstanding balance no later than February 27th, 2009. If you so wish to extend you offer of eradicating the restocking fees in order to expedite this charge, then so be it. We will be  authorizing the charge in the amount of $19,054.21**, until the dispute of the missing items is resolved.

Now, before going into great depth about the missing items, I would like to ask you one favor. Call someone in the warehouse. Ask them to box these shirts exactly. Then ask them how many boxes they used to pack them.

6094ERCHI S-60, M-20, L-7

6021ERCHI S-60, M-20, L-7

If the answer is 1 or 2 boxes, then we can expedite the process of resolving the dispute of the remaining balance.

Regards,

Angie Velasquez

Parable Ink

(713) 478-2360

*The discrepancy ($2,464.52) between what your accounting department has asked us for and what we show as owed is due to an apparent discrepancy between our data as to what was returned and your data as to what was received. (see appendix)

** Parable Ink has on file, both paper and electronically, as owing $20,567.85 after returns are made and restock fees are billed. Without the restock fees this would bring this number down to $19,054.21. Please call for credit card information.

From: “Matt Berke” <matt@alternativeapparel.com>

Date: February 5, 2009 12:43:42 PM EST

To: “Angela Velasquez” <angie@parableink.com>

Cc: “Mary Kathryn Dean” <marykathryn@alternativeapparel.com>, “Amanda Piola” <Amanda@alternativeapparel.com>

Subject: RE: Parable Ink

Angie,

I would really appreciate it if you could pay the $19,054.21 immediately. Someone will call you to get the credit card info.  We can then work together to resolve the balance.  Clearly, this assumes that you still return the items for which we have given approval.  I have copied Mary Kathryn so that she is aware of the situation.  As far as the difference of $2,464, we will need to validate the return of these items either by obtaining proofs of delivery for the return of checking box capacities as you have mentioned.  Mary Kathryn can work with you and our warehouse on this.

Should I have someone call the number below to get the CC info?

Thanks for your help with this.  We really appreciate it.

-Matt

From:   angie@parableink.com

Subject:    Parable Ink

Date:    February 5, 2009 11:56:50 AM EST

To:      matt@alternativeapparel.com

Dear Mr. Berke:

Thank you for your prompt response. Yes, please have someone reach me at the number provided here to obtain the necessary credit card information.

Thank you for your time.

Regards,

Angie Velasquez

Parable Ink

(713) 478-2360

On Feb 18, 2009, at 5:11 PM, Mary Kathryn Dean wrote:

Angie,

Attached you will find the credit memos for the product you returned.

At this time your balance is $4,866.91.  Would you like us to run the

card on file for the remaining balance of $4,866.91?

Thank you,

Mary Kathryn

From:   angie@parableink.com

Subject:    Re: Alternative: Credit Memos for Returned Items

Date:    February 18, 2009 5:35:09 PM EST

To:   marykathryn@alternativeapparel.com

You are NOT to run any credit cards. My attorney will be in contacts with you. I asked before who his point of contact should be and you have yet to reply to this. Please do so that we can proceed.

From:   angie@parableink.com

Subject:    Re: Alternative: Credit Memos for Returned Items

Date:    February 18, 2009 5:36:12 PM EST

To:      marykathryn@alternativeapparel.com

Additionally, all restocking fees were to be voided as per Matt Berkes recommendation.

Please see to it that this is take care of.

On Feb 18, 2009, at 5:45 PM, Mary Kathryn Dean wrote:

Angie,

I spoke with Matt and the agreement was that we would waive the restock

fees if you paid $21K you however paid $19K.  We just discussed and

would be willing to accept a payment of $3K to settle this matter.  We

would be happy to send you a document for each of us to sign with the

terms of this settlement.

Thanks,

MK

From: “Matt Berke” <matt@alternativeapparel.com>

Date: March 20, 2009 12:08:38 PM EDT

To: “Angela Velasquez” <angie@parableink.com>

Cc: <revins@evinslegal.com>

Subject: FW: Your Account Balance

Angie,

We have given you credit for every piece of clothing that you have returned.  The documentation supporting all of the shipments and returns is crystal clear.  In fact, we even gave you credit far past the time limit for returns.  Additionally, you did not follow the required return process.  There is no harassment here.  We are simply trying to get paid for merchandise that you purchased but have not returned or paid for.  If you have more clothing to return, we will accept that too assuming it is still in our line.  On top of all of that, we have offered you numerous discounts in order to resolve the issue once and for all.

So, before we proceed with legal action to collect the remainder of this debt, I will give you one more opportunity to pay your outstanding balance of $4,866.91.  If you pay it immediately, I will settle for $3,500.  As far as the credit card authorization, attached is your signed credit application which does in fact have a CC authorization as part of it.  Even though that card is expired, you clearly did sign the authorization.

Richard, whom I assume is your attorney, is free to contact me at any time to discuss this further.  I hope we can settle this matter quickly and amicably.

Thanks,

Matt

Matt Berke

CFO

Alternative Apparel, Inc.

(678) 924-5206 – office

matt@alternativeapparel.com

BUT This is about the time that I started to finally realize that they actually didn’t care to understand what happened to their shirts nor find them. This is when I realized that they were blatantly disregarding all the evidence and investigation I had done to try to help them recover the goods they claim they didn’t have that I returned, and rather they just wanted me to pay for them.  I had headache after headache going through paper work doing everything I could think of to figure out how they could trace these shirts and alas, when I found some shred of evidence that I though would help them, they simply told me in so few words to fuck off and pay the bill. The evidence didn’t matter one bit to them. So here it is:

From: Angela Velasquez [mailto:angie@parableink.com]

Sent: Tuesday, January 27, 2009 4:30 PM

To: Jessica m. Castillo

Subject: Re: Parable Ink – Returns and Credits

Please note I have 3 tracking numbers not listed. They are as follows:

1Z40V8832658153755

1Z40V8832658693172

1Z40V8832660372568

Most likely they will track those boxes claimed to be missing.

please forward to the others.

On Jan 28, 2009, at 3:23 PM, Jessica m. Castillo wrote:

Hi Angie,

I looked into these tracking #s and they go with this call tag…

TRK# 1Z40V8832659752749

Customer# 20-PARAINK

Company Name: Parable Ink

Address: 232 3rd street, Unit E001, Brooklyn, NY  11215

Contact Name: Angie

PO# Fall/Holiday

Number of bxs: 4

Weight: 50 lbs

Reason:   This is what she’s returning:

6094ERCHI     S-60    M-20   L-20

6021ERCHI     S-60    M-20   L-20

You wanted to return 200 pcs, so I asked for 4 call tags to be sent to you.  For some reason, the shipping department only provided me with 1 tracking #.  I’ve attached the credit memos for these returns.

Thanks!

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

From:   angie@parableink.com

Subject:    Re: Parable Ink – Returns and Credits

Date:    January 28, 2009 6:40:23 PM EST

To:      jessica@alternativeapparel.com

Please forward this to the others.

Have you actually investigated any of these issues because you’ve told me nothing Jeff hasn’t already told me. Did you compare shipping weights? Did you check them against supposed stock coming and going? I will make my own notes by each thing you wrote. I am not lying about these returns nor am I mistaken. Not adding my invoices is one thing but counting items and putting them in a box I’ve always done accurately. Or simply putting a return label on a box without opening is I also do accurately. So you need to further investigate these issues because I wont’ pay for items I have never kept or used for that matter.

I need to know what the progress is on:

-the missing 4507′s sent back long ago from po. “replacement” – These were never returned to us.  There is no call tag record or email requesting a call tag for these items.  If you shipped them back to us, then please provide a tracking #. THIS RETURN WAS REQUESTED VIA PHONE. MOST LIKELY IT WAS ON OCTOBER 9TH AT 4PM OR OCTOBER 17TH AT 5:19PM OR OCTOBER 24TH.

-the earth natural a-line v-necks from 822114– These were never returned to us.  There is no call tag record or email requesting a call tag for these items.  If you shipped them back to us, then please provide a tracking #. THESE WERE SHIPPED BACK WITH ALL THE OTHER PERUVIAN FABRICS. THEY ALL WENT BACK AT ONE TIME SO WHEN YOU GOT THE OTHERS YOU WOULD HAVE GOTTEN THESE. I ASKED TO NEVER BE SHIPPED THIS FABRIC TO BEGIN WITH AND STILL PAID FOR YOU TO SHIP IT TO ME. THAT ASIDE WHY ON EARTH WOULD I KEEP A FABRIC I DON’T USE MUCH LESS IN NATURAL, BY ALL THE WORST SELLING COLOR EVER.

-the 13 large 6094′s from 819024 – only 7 larges were returned to us THEN YOU MUST HAVE ONLY SENT ME 7. AGAIN I NEVER EVEN OPENED THE BOXES.

-13 large 6021′s from 815673 – only 7 larges were returned to us SAME NOTE AS ABOVE

-what happened to the 12 6060ERCHS’s from 819922 that were returned. – these pieces were never shipped back to us THESE ABSOLUTELY HAD TO HAVE BEEN IN THE SAME BOX THAT ALL THE OTHER SIZES WERE IN. I COMBINED THEM SINCE YOU SENT ONLY ENOUGH CALL TAGS FOR I THINK 2 BOXES THAT DAY SO I PUT THEM IN WITH SOME OTHER STYLES. PERHAPS YOUR GUYS OVERLOOKED THIS FACT. ALSO, AGAIN, HATE THE FABRIC AND WOULDN’T HAVE KEPT IT AND NEVER ORDERED IT TO BEGIN WITH.

-on CM 0815776-I returned 29 6032′s and got credit for only 10. – we only received 10 pieces back.  You also never told me you wanted to return 29- 6032’s because I have a note that you said you were only going to return the 4505s and 28 other various pieces. THIS MAY BE INNACCURATE. JEFF TOLD ME THAT I ONLY GOT CREDIT FOR 10 AND THAT I HAD STATED THAT I WOULD SEND BACK 29 SO IF HE’S WRONG THEN I’M WRONG.

-the credit error in 813442 – please clarify

PASTED FROM EMAIL FROM JEFF:

Invoice #0813442-IN (-$2,013.10) + ($1,833.95) = (-179.15) still to be credited.  The credit for the returned 4503′s is correct but the amounts for damaged items that were returned is wrong. I returned 26 (2660WHS), 8 (2660WHM), 12 (2660WHL), 4 (2607WHS), 5 (2607WHM), 4 (2607WHL). These total $563.10 in damaged item credits but I only see credits totaling $383.95.  Please send us tracking for this return.  We have only received returns for a total of 6 pcs of 2660’s and those are spread across 2 different credit memos (because they were returns from different dates.) CLEARLY YOU HAVE THE WRONG INFORMATION HERE BECAUSE IF YOU ONLY GOT 6-2660’S THEN THE DISPUTED AMOUNT HERE WOULD BE MUCH HIGHER. IF YOU ONLY GOT 6 THEN YOU WOULD HAVE ONLY CREDITED ME A TOTAL OF $209.10 AND THEN I’D BE AKING WHAT HAPPENED TO THE OTHER $354 RATHER THAN $179.15. PLEASE REVIEW THIS AGAIN.

Angie,

Attached is the list of items that we have approved for return.  You will notice that we agreed to accept all the merchandise that you requested to return.  Please understand that we are making a major exception to our 7 day return policy for you.  You are responsible for shipping these back at your cost.  These items must be physically received in our warehouse by Friday, February 13th.  We are unable to accept any returns past that date.  A 15% restock fee will be deducted from the credit.

We have tracked and matched every call tag with the return and credit.  The only one that was invalid was for order: 2099900 which was a call tag that never went out so we never received the goods.  We will however let you return this order (2099900,) please include it in your return shipment by February 13th.  The other items that you have noted as “returned, but not credited” were not returned via a call tag.  If you returned them on your shipping account, you need to provide us with the tracking information.  Below you mention a few orders where you were not credited for everything you returned.  The weights for Call Tags are estimated so it is inconclusive.  It seems that in many cases you added additional items that were not intended to be included with the call tag box.  For instance, call tag might have product from 2 different orders so 2 credit memos would be issued against 2 different invoices.  We mail credit memos for all returns and if there was an error you should have notified us.  At this point we have researched as much as possible on our end.  So the dispute over returned merchandise is over unless you can provide us with tracking numbers for items that you shipped back on your shipping account.

The calculated credit amount for these returns, including the restocking fee, would be $ 8,171.86.  Your current balance is $ 31,204.63. Therefore we ask that you send payment by check in the amount of $ 23,032.77 right away, owing to the size and age of your balance and that all of these orders were done on ‘Net 20’ terms.  You may call 678-924-5220 to pay via credit or debit card, if you prefer.  We have given this matter thorough attention and have given you the opportunity to reduce your liability by making these returns.  If we do not obtain payment for your balance by February 13, we will unfortunately have to refer your account to a third-party collections agency for contact and potential legal action, as we do with all delinquent accounts.

Thanks,

Mary Kathryn

MY REPLY:

From:   angie@parableink.com

Subject:    Re: Parable Ink – Returns and Credits

Date:    January 30, 2009 8:59:57 AM EST

To:      marykathryn@alternativeapparel.com

Mary,

We appreciate your diligence on the matter and all the time you put into this thorough analysis of the situation. However, since there have been inconsistencies on your end in the past  and now inconsistencies in the review, until we resolve those inconsistencies we do not consider the matter closed. We will review the facts on our end and we look forward to talking next week.

Regards,

Angie Velasquez

Fed Ex tracking # for the replacement order # 2099543: 031859431182928

UPS tracking # for call tag for order # 2098737: 1Z40V8832653632648

UPS tracking # for call tag for order # 2099894 and 2099906: 1Z40V8832660011573

UPS tracking # for call tag for order # 2099900 and 2099899: 1Z40V8832659752749

UPS tracking # for call tag for order # 2098741: 1z40v8832662649702 and 1z40v8832662580115

UPS tracking # for call tag for order # 2099900: 1z4v8832663808921

UPS tracking # for call tag for order # 2099894: 1z40v8832662488878, 1z40v8832662820089, and 1z40v8832661641695

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

From:   angie@parableink.com

Subject:    Re: Parable Ink – Returns and Credits

Date:    January 27, 2009 4:29:39 PM EST

To:      jessica@alternativeapparel.com

Please note I have 3 tracking numbers not listed. They are as follows:

1Z40V8832658153755

1Z40V8832658693172

1Z40V8832660372568

Most likely they will track those boxes claimed to be missing.

please forward to the others.

Hi Angie,

I am back in town and I was able to look over all the correspondences between you and Jeff.

I’ve attached an excel spreadsheet with 2 new tabs for your returns.  The 1st tab, “Return Request”, is everything you want to return from the orders you listed below.  Please review and make sure all the quantities are correct for each order.  If there are additional items you need to return, please add those to that spreadsheet.  We’ll need the style #s, order #s, quantities, sizes, etc.  The 2nd tab, “Call Tag Info”, has the call tags you have not received credits for.  Actually there are only 2 call tags that you haven’t received credits for.  The first call tag was attempted by UPS to be delivered 3 times, but no one was available.  Once the call tag leaves our warehouse, it is the customer’s responsibility to make sure the goods are sent back to us.  We have no record of those items ever being returned to us.  The second call tag was an error on our end.  You should still have those goods because the call tag never went out.

Angie, we need to get this information as soon as possible.  Do you think that you could have this back to us by Wednesday 1/28/09?  The more time that passes makes this merchandise further outside of the acceptable return date range.  It is beneficial to all of us to get this settled immediately.  We are going to consider letting you return some of the goods based on our current inventory situation.  Once you return the spreadsheet to us, our Production Manager, Forecast Analyst, and Customer Service Manager will look over that spreadsheet and determine what we can accept based on our current and future inventory levels by sku and what will not mix well with our current stock.

As soon as they figure out what we can take back, I will send you a list of everything.  You will responsible for the cost of the return freight as well as a 15% restock fee.

I cannot stress enough that this is a one time deal and 7 days is still the policy.

Let me know if you have any questions.

Thanks!

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

MY REPLY:

From:   angie@parableink.com

Subject:    Re: Parable Ink – Returns and Credits

Date:    January 23, 2009 1:01:02 PM EST

To:      jessica@alternativeapparel.com

Hi, Jess. I am without internet until next Tuesday so all my email access is sparse and limited to trips to internet cafes. Aside from the 2 orders that were not retrieved because I had the flu that week and was not in the studio to meet with UPS, what about the returns that were actually sent and somehow never received? This worries me the most because I have no way of tracking the orders since they were sent via your call tags and not my own shipping.

Also note that I appreciate that you stress to me this one time return but I would also like to stress to your accounting department one very clear thing. I was approved for a 20K order limit. I am certain that this was for a reason too. Now, with that in mind how is it that 34K in orders were written and why did it catch no ones attention and if it did shouldn’t it have warranted a call of some kind or a hold on the orders?

I really don’t want to get into this in this way but I’m extremely upset that this has happened. I was extremely clear with Amanda when I placed my holiday order. I was clear about how much I expected to sell and how much merchandise I could handle at my max. Perhaps if there had been a price sheet in your showroom I could have totaled it myself catching this error. But there were no price sheets and the estimate was horribly off.

And lastly, as I fill in your spreadsheet, I can’t stress enough that if you do not accept these orders in return then you will not only not get paid but you will lose my business forever. I do not have enough money to pay the bill period. I have only enough to pay what I told Jeff I could pay. I am not even getting money for salary right now because instead I have to pay you. I am taking on a day job since I can’t afford to pay myself due to this nonsense. So keep that in mind when you’re assessing what you can and cannot take back.

Expect an email from me by Monday.

Angie

Parable Ink

THEN I REPLIED AGAIN SHORTLY:

From: angie@parableink.com

Subject: Re: Parable Ink – Returns and Credits

Date: January 26, 2009 2:21:54 PM EST

To: jessica@alternativeapparel.com

Jessica, I will be going over all the paperwork today. So far it looks fine, the quantities, but I will be a line by line review in a bit. Before tomorrow I wanted to also ask you about some other things not here. One issue I’m having is that there were returns made and no record of you guys receiving them. Two are of the utmost concern. The October Prep PO was mailed and then there were returns made based on defects or inaccuracies. The replacement shipment was sent out and when I finally received it, it was a bit late for one the the items. I spoke with either you or Stephanie over the phone about it and a call tag was issued. This was for the 4507′s in White. I explained that since it was mishsipped then reshipped later than I needed, that I had to return them and an okay was given. UPS picked up the package and now Jeff is telling me that it was never noted anywhere on my account. I need to jog your memory or Stephanie’s because unless we can track it then I’m going to be held accountable for a box os shirts I never retained possession of. Can you recall this? The 2nd is a return made of the Earth Coal A-Line V-necks. Jeff is telling too that this was never noted on my account as received. They were part of the returns made for bad fabric and I have no way of finding out more unless you have other records of the call tags issued. Please let me know what you find.

Thank you,

Angie

HER REPLY:

On Jan 26, 2009, at 2:51 PM, Jessica m. Castillo wrote:

Hi Angie,

I looked over your 2 questions and neither Stephanie nor I have record of call tags issued for the aa4507s.  The only note I have for the aa4507s is that we sent you the aa4505s by accident and the aa4505s were sent back to us.  I have no record of a call tag issued for the aa4507s, so if you sent them back to us then you should have record of the tracking #.

The aa6032 Earth Coal A-Line V-necks are on the spreadsheet I sent you.  A call tag was issued for those pieces, UPS attempted to deliver the call tag 3 times, and no one was there.  After a call tag is sent it is your responsibility to get those goods back to us, but we will consider taking those back.  From my notes you told us that you double ordered those, not that there was anything wrong with the fabric.  Can you please clarify?   I hope this info helps.

Also does Sammy have a copy of the spreadsheet too?  We liked everyone to be on track and have all the info needed for tomorrow’s conference call.  Either Amanda or I can email him a copy if you’d like.

Thank you!

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

MY REPLY THEN WAS:

From: angie@parableink.com

Subject: Re: Parable Ink – Returns and Credits

Date: January 26, 2009 3:07:52 PM EST

To: jessica@alternativeapparel.com

Jessica,

This is a problem. Yes the wrong pieces were sent then they were sent back. You then resent the correct pieces. I then called and asked to return them since at that point it was too late into the autumn show to sell them. I will pull up my phone records now but can you tell me what the date of receipt is showing for invoice # 0812175. My invoice shows the order date and the invoice mail date but not the actual order receipt date. Once I have this I will look up my phone records to try to trace this issue.

The earth coal were not the problem with the other issue. I’m sorry if I typed that. I meant Earth Natural A-Line V-Necks. By the way the code for those is not 6032. 6032 is the unisex organic v-necks. the A-line V-neck code is 6060. So yes the 6032 double order is another issue unrelated here. My issue is returned 6060ERNA’s not accounted for.  And again, thank you for reminding me that it’s my responsibility to be there when UPS shows up to pick up a call tag but I had the FLU that week and had no idea they went to the studio until the week after when I was feeling well enough to get out of bed.

Angie

THEN:

On Jan 26, 2009, at 4:59 PM, Jessica m. Castillo wrote:

Angie,

You returned goods from the original order and you were given a credit for those ($712.05).  We sent you a replacement order which came out to ($707.55).  Your credit from the items you returned covered your replacement order, so you don’t owe anything on the replacement order.  Are you saying you returned replacement order?  I have no record of a call tag being issued for the replacement order.

I’m sorry if I got the aa6032 and aa6060 confused.  It would’ve helped if it style “aa6060” would’ve have been stated in the beginning.   So now you mean aa6060 Organic A-Line V-Neck in Earth Natural right?  That was from order # 2099901.  I have no record of call tag ever issued for that order.

I’m sorry you were out sick and couldn’t get out of bed when the call tags were delivered.  If you weren’t there to receive them, then you should have let me or Amanda know you never returned those goods.  I would’ve been more than happy to re-issue a call tag for you, but you never told us they weren’t returned.

jess castillo

product specialist

888.481.4287

jessica@alternativeapparel.com

THEN I WROTE:

From:   angie@parableink.com

Subject:    Re: Parable Ink – Returns and Credits

Date:    January 26, 2009 6:19:01 PM EST

To:      jessica@alternativeapparel.com

Again, do you have the delivery date of the replacement order? The receipt date? Also I see the notes on call tags issued but no tracking numbers. When UPS leaves the receipt for call tags the receipt only has the tracking number. It’s not associated with what style #’s are in each box. So I need tracking numbers for received call tags to compare with my receipts.

Thanks,

angie

Subject: Re: Parable Ink Accounting

Date: January 14, 2009 8:29:12 PM EST

To: jeff@alternativeapparel.com

Hi Jeff, the invoice number you asked about from my last email is fine to pay. As for not accepting these returns, unfortunately without them then you will not be able to charge my card because there is simply not enough money in the account for that large of a charge. By a lot. Amanda gave me a total of a 22K order and somehow it ended up 34k. I assume she did the math wrong and this is the main reason for me having ended up with way too much merchandise. Then retail season was very slow and I still have tons of stock that I won’t bother returning. The 6032′s were discussed with your ordering department long ago. Before I placed my christmas order I called to check all backorders and there were no 6032′s listed. Then I started getting in all these 6032′s and we found out that there was a backorder from early summer and so I ended up with more than double what I could move. I will have to pull up email records for the order numbers since all my files are currently packed.
Thank you,Angie
On Jan 14, 2009, at 5:32 PM, Jeff Crews wrote:

Angie,

Please see the attached spreadsheet with my comments in blue.

Unfortunately, we cannot accept returns after 7 days for items not damaged, etc, per our Returns Policy for wholesale customers.

Please describe the double-shipment of the 6032s. Which two orders were involved?

Jeff Crews

Collections Specialist

Subject: Parable Ink Accounting

Date: January 12, 2009 5:58:46 PM EST

To: jeff@alternativeapparel.com

Cc: Amanda@alternativeapparel.com

Hey guys, okay sorry about the late reply. I’ve been in the middle of wrapping up the holiday show and moving at the same time. I sent you guys some notes before on errors I found and will copy them below. I will also make more detailed notes on each invoice.