Frankly, we would have thought you would be reaching out to shareholders and welcoming and acting on the positive ideas suggested by Platinum and others. However, the Board's terminal inaction convinces us that you cannot or will not right this ship without outside pressure and leadership. We cannot wait any more, and we sense that other shareholders feel the same way. We must now publicly advance a proposal that we believe provides a real lifeline to this troubled but potentially fantastic Public Company.
The following is a summary of our proposal:
1. Board Composition:
a. Vincent D. Enright and James F. Smith must resign immediately from the Board.b. Michael M. Goldberg, M.D. and Gary Saxton (an experienced medical device executive who has negotiated deals with many medical device companies) should be immediately appointed to the Board. 2. Development of CGM Technology: We have identified a potential partner (" China Partner") for the Company for the development and manufacture of the CGM Product in China. The Board should begin discussions with China Partner without delay. It is anticipated that an agreement with China Partner would include: a. Fast Track CFDA approval of the Product; b. China Partner covering the entire development cost and taking responsibility for manufacturing, marketing and selling the approved Product in China; c. China Partner would have exclusivity for the Product in mainland China; d. China Partner and the Company would split sales of the Product in China based on a high double-digit royalty arrangement; China Partner will pay all manufacturing, sales and marketing, and distribution costs from its share after the payment of royalties to Echo; e. The Company will retain all intellectual property; and