1610 N.

Green Street
Spokane, WA 99217

May 30th, 2022

Matt Colyar, Fluid Power Engineer

Mike Thompson, Head of Engineering
Wagstaff, Inc and Applied Technologies
3910 N Flora Rd
Spokane Valley, WA 99216

Dear Mr. Colyar and Mr. Thompson:

For the past 16 months Wagstaff has been experiencing record growth in our Hydraulics Department
and increased demand for our Hydraulic Power Units (HPUs). Wagstaff is on track to see increased
production of our HPUs by the end of 2023. However, to meet this goal Wagstaff will need to anticipate
shipping delays and recalculate expected lead times for HPU components coming from our distributors.
HPU production at Wagstaff has been delayed numerous times due to increased lead times and shipping
delays for HPU components.

If the Fluid Power Department can adjust to these new shipping standards, Wagstaff can decrease
production delays and continue to meet our customers’ expectations. I recommend we do the following.

 Schedule a meeting between June 1st, 2022, and June 30th, 2022, with myself, Matt C, and Mike T
to discuss lead times.
 Preemptively add ten weeks to all HPU component lead times coming from distributors and
order components accordingly.
 Continue to schedule monthly meetings with myself, Matt C, and Mike T to discuss possible
changes in lead times, shipping delays, or any other problems concerning HPU components that
come from our distributors.

Please respond to this letter with your availability in June for the upcoming meeting. My office hours
are Monday through Thursday 5am – 3:30pm and Friday 7am – 3:30pm. I can also be reached
through my extension #3701 or on my cell at 509.444.4444. Thank you both for taking the time to
help solve this problem with me and I look forward to hearing from you.

Sincerely,

Jon Smilden