NOTICE OF 25% TARIFF SURCHARGE

Date: April 9, 2025

Dear Valued Customer,

We are writing to notify you that, due to recently enacted government tariffs, a 25% surcharge

will be applied to select HVAC equipment and components.

In accordance with the terms outlined in our agreement, this surcharge is being implemented

to offset increased costs directly resulting from tariffs imposed on key materials and components

used in HVAC manufacturing and distribution. This includes, but is not limited to:

• Steel and aluminum products

• Compressors

• Copper tubing

• Fan motors

• Refrigerants

The 25% tariff surcharge will appear as a separate line item on all affected invoices and will apply

only to products falling under the impacted tariff classifications. We will continue to try to

mitigate this impact as much as possible with continued discussions with manufactures and

suppliers to obtain the best pricing possible.

We understand the challenges this may present and remain committed to transparency and

ongoing support as you manage your projects and procurement planning.

We sincerely appreciate your continued partnership and understanding as we adapt to these

ongoing market changes.

Sincerely,

Neels Heating & Cooling