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TYLER UNION® <br />Quality Waterworks Products <br />To: Our Valued U.S. Customers <br />May 3, 2021 <br />RE: (REVISED) List Price & Multipliers for Import Fittings & Accessories Effective June 1, 2021 <br />As seems to be happening during these unique times, there have been significant global changes since our pricing <br />letter of April 201". With short notice, the Chinese Government rescinded their longstanding policy of refunding the <br />13% tax on most exported Iron & Steel Products effective May 1" <br />With existing heavy demand on Indian Suppliers because of supply migration from China to India due to the Section <br />301 tariffs, the increased costs out of China have correspondingly increased the supply costs from India to about the <br />same degree. <br />Further compounding the global supply situation is the rapid increase in COVID cases within India. That situation has <br />already disrupted the flow of raw materials and manufacturing output with further significant disruptions expected. <br />Given these unique circumstances beyond our control, we are rescinding our LP2021-2 List Prices for all Import <br />Fittings (including FBE, P401 and Zinc), Accessories and Fabricator Products and replacing them with revised List <br />Pricing, LP2021-3. The LP2021-3 pricing will be an increase of 23% from our current LP2021 (Feb 1, 2021), whereas <br />LP2021-2 was a 13% increase. <br />The new List Prices (LP2021-3) for Import Fittings & Accessories will be posted to our website at <br />www.TVIerUnion.com by tomorrow morning. Applicable Published Multipliers for each pricing region will be <br />communicated before the end of this week. <br />Due to the current inventory situation, acknowledgment of any orders received through May 31, 2021 will be <br />restricted to those for prior committed jobs and up to 1-month worth of normal stocking orders. Back ordered items <br />not received into our stock by May 31, 2021 against any open orders will be re -priced to the current LP2021-3 List <br />Prices and applicable multipliers. <br />Any job quotes given off LP2021-2 will be re -priced to the new List Prices LP2021-3 and applicable multipliers. <br />Given the extraordinary increase in supply costs, we will no longer be able to honor Municipal or Annual bids that <br />were priced off LP2019 or earlier List Pricing. Verified Municipal or Annual bid orders priced off LP2019 or earlier List <br />Pricing will be repriced effective immediately off LP2021(Feb 1, 2021) and the applicable published multipliers. Order <br />dollar volumes at this discounted pricing will be limited to less than 7% of each branch's total import product order <br />dollars for the balance of this year. <br />We thank you for your continued support during these challenging times and we remain committed to earning your <br />business. <br />Sincerely, <br />Jerry Jansen <br />National Sales Manager <br />