Bad News_Contract Changes

To: Louis Ho

Subject: Contract Changes. #U5201314

Dear Mrs. Ho,

U-Skateboard greatly appreciates the strong cooperation we have had with your company over the past two years. As you are aware, the sport industry is highly competitive and challenging, which is why mutual support and open communication between us have always been important.

I would like to bring to your notice that the contract we signed six months ago will need a slight revision in terms of the cost. Due to the current economic climate, material costs have been increasing, which in turn directly affects our profit margin.

Therefore, we are afraid that the original price quoted will be increased by 10 %, effective from Jan 1, 2020. To offset this inconvenience, we would like to provide you with a 45-day line of credit, instead of the 30 days we previously agreed on.

Thank you for your time and understanding. We appreciate your continuous support during this difficult time. Please find the details attached below and let me know if you have any further questions.

Sincerely,

Michael Kaehler

Sales Manager