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sBus Sa/es <br />Chassis availability is driving the whole decision on plant closures. Bus Manufactures are getting less than <br />30 percent of the chassis needed on a monthly basis. Company officials believe the supply issues aren't a <br />short-term problem. Analysts project the chassis shortage will continue well past 2022 and Long into <br />2023. The chassis shortages continue to grow the production backlog which is now in excess of 5,500 <br />buses. <br />The backlash of the COVID-19 pandemic has caused massive commodity price increases that cannot be <br />absorbed by the bus manufacturers and are in turn being passed along to the consumer. Attached is a <br />Forest River Memo highlighting the commodity increases. The pricing has substantially increased due to <br />market conditions. As a result we are asking you to look the revised HGAC Pricing Proposal and amend <br />your Purchase Order to the revised price. <br />We understand and appreciate the frustration this causes, Texas Bus Sales is in the same situation with <br />having to make adjustments. Like the delivery time the price was stated in good faith but, due these <br />circumstances and current conditions which are well beyond our control we have to implement this new <br />pricing. You certainly have the option of cancelling the order and re -ordering or rebidding. With the <br />massive back log that exist now that would only further delay your order. <br />I sincerely apologize for the inconvenience this causes you. As questions arise, please feel free to contact <br />me at 713-681-3600 extension 225 or darryl.r@texasbussales.com <br />Sincerely, <br />Texas Bus Sales, Inc. <br />President <br />TR.4NSPORTA TION SOL UT/ONS, EXPERIENCE IS THE DIFFERENCE <br />www.texasbussales.com <br />1605 West 34th Street - Houston, Texas 77018 -713-681-3600 <br />1210 Hallmark Street — San Antonio, Texas 78216 -210-349-6500 <br />