EDITION DATED JAN 2005

CMHI PARTS TEAM

'04 PARTS POLICY and PROCEDURE MANUAL

1. ORDER PROCESS

2. ORDERING

3. CONDITION OF SHIPMENT

4. TERMS OF PAYMENT

5. TERMS OF TRANSPORTATION

6. SERVICE AVAILABILITY

7. LIST PRICE POLICY

8. PARTS CLAIM

9. CANCELLATION ORDER

1. ORDER PROCESS

The Clark Material Handling International Inc.(Referred as ‘CHMI’) "Parts policy and Procedure Manual" outlines the practices with regards to a Dealers daily parts operation. Each parts Manager and employee of the parts operation should become familiar with the contents of this publication. Understanding the policies and procedures of CMHI will enable the Dealer to function in an efficient manner with regards of CMHI policies.

No /
Procedure
/ Remarks
1 / Inquiry ( P/N, Price, Lead time) by E-mail or Fax / OTS/PartsPro/Parts Manual
2 / Purchase Order or Proforma Invoice
Please provide the following information when placing firm orders.
1) Dealer Name
2) PO # (Purchase Order Number)
3) Shipping Instruction
- Destination
- Shipping Method ( Air or Sea freight)
-Nominated Forwarder
4) Part No & Description
5) Order Q’ty
6) Contact Name and Signature / E-mail or Fax
We refer to receive
3 / Review Purchase Order by CMHI
4 / Order Entry by CMHI
5 / Send Order Acknowledgement to Dealer / Fax / E-Mail / OTS
6 / Packing
7 / Arrange shipping with designated forwarder
8 / Shipping document by E-mail or Fax
9 / Outstanding Payment
10 / Parts Claim

* OTS web-site : ots.clarkmhc.co.kr

2. ORDER TYPE

CMHI provides three parts order classifications, Machine Down (Class 1), Emergency (Class 2) and Stock (Class 3). Each of this has a distinct purpose and priority.

MACHINE DOWN ORDER (Class 1)

A machine down classification is used for any order that contains parts needed to restore a machine to service. The model and serial number of the unit is required and should be provided when entering a Machine Down order. Machine Down orders are given top priority and will be shipped the same day if entered before 3:00 p.m. Depot Time if requested parts are available.(Ex-work Date: within 1 day)

EMERGENCY PARTS ORDER (Class 2)

Emergency Order should be used for non-critical parts needs that do not effect the operation of the machine or are for service repairs that can be schedule for a later time. Dealer can also use the Emergency Order as an intermediate stock order when replenishing items that have unexpectedly run out of. Emergency orders are shipped the same day when possible. (Ex-work Date: within 3 day)

STOCK ORDER (Class 3)

Dealer is permitted and encouraged to submit Stock Order to CMHI on a weekly basis. Stock Order will be accepted via fax or e-mail and must be identified as "Stock Order". Please do not place Stock orders via the telephone. Stock order is shipped on Ex-works Bucheon or Changwon via the most economical method of transportation. Stock orders will be shipped to the Dealer's facility only. Invalid Part Number will be rejected from the order and Dealer will not be notified prior to shipment.

(Ex-work Date: within 15 day)

Carefully prepared, regularly placed stock orders:

1.Reduce the number of emergency order, which are costly to the distributor and end-using customer.

2.Improve customer service by having readily available the correct parts on hand when needed.

3.Reduce transportation expenses.

* Above all mentioned delivery date may be changed according to our circumstance.

3. CONDITION OF SHIPMENT

-AIR FREIGHT: DESIGNATIED OF FORWARDER IS DEALER'S OPTION

-SEA FREIGHT: DEALER CAN REQUEST THE SHIPPING CONDITION BY FOB OR CIF ORC&F BASE IF IT IS ACCEPTED BY CMHI

FREIGHT CHARGE & INSURANCE FEE FOR SEAFREIGHT WILL BE CHARGEDCASE BY CASE

4. TERMS OF PAYMENT

All orders are shipped on Ex-works. Payment terms for all parts orders are SWIFT paid before shipment(T/T in advance). If Dealer fails to pay in accordance with payment terms, Shipment is delayed accordingly. All parts discounts are applicable only to orders that are paid within the terms stated above. IN CASE OF SHIPPING WITH PRODUCTION TRUCKS, L/C WILL BE ACCEPTED ACCORDING TO TERMS OF PAYMENT FOR PRODUCTION TRUCKS

5. TERMS OF TRANSPORTATION

ON BOARD

◇AMERICA:15 DAYS ◇EUROPE:30 DAYS ◇ASIA:5 DAYS ◇JAPAN:3 DAYS

◇AUST:20 DAYS

* ACTUAL TERMS MAY BE DIFFERENT FROM MENTIONED ABOVE DUE TO

CIRCUMSTANCES BEYOND OUR CONTROL

6. SERVICE AVAILABILITY

Description / Content
Basic / Line item
Calculation period /
Daily/Month/Year
Basic partsSupply term / M/O : 1 days, E/O : 3 days, S/O : 15 days
Distributor Calculation / By individual distributor (Dealer/Depot/HQ)
By link of distributor (Dealer/Depot/HQ)
Others / Supply term : Working day base, except holiday
Order date : Input date of order
Received date : CMHI received date of order
Offered date : Offered date by CMHI
Ship date : A date after an offered date + Supply date by ordered type

7. LIST PRICE POLICY

Periodically CMHI will revise parts prices. CMHI will provide a new parts price list to the Dealer at the time of the list price change. Interim price revisions may be announced via the parts information bulletins. Prices invoiced to Dealers will be those in effect on the day of shipment.

8. PART CLAIM

1) Claim Type

Type / Content / Liability / Module
Buyer’s order error / Forecasting & order mistake / Buyer / According to the Claim type after Check by manual
CMHI Error /
Different parts
Shortage & Excess / CMHI
System Error / Computer system error / CMHI
Quality problem / Malfunction
after mounted / Procurement DPT.
Damage by transport / Damage & Modification / Forwarder, Packing Co

2)PARTS CLAIM MODULE

Claim type / Claim authorization / Remark
Amount / Term
Buyer’s order error / After shipment
CMHI Error / - / 3 months
System Error / - / 3 months
Quality problem / - / 6 months
Damage by transport / - / 3 months
Others / After decision

It is noted that we can supply new parts as non-commercial value if you accepted

3) POLICY CHANGES

CMHI reserves the right to modify the Policies and Procedures contained in this publication and will notify each Dealer in a timely manner.

9. CANCELLATION ORDER

If dealers would like to cancel an order after issuing order acknowledgment, CMHI will inform whether it can be possible or not within 3 days based on the Korean working day after receiving the cancellation request. Even though it can be possible, the cancellation fee will be charged to dealers when accepted and CHMI will inform the rate of cancellation fee.

Copyright by Clark Material Handling International