Doosan Industrial Vehicle America Corporation Sept. 2013

ATLANTA PARTS CENTER POLICY AND PROCEDURES

INTRODUCTION

The Parts Operation of Doosan Industrial Vehicle America Corporation (afterwards referred to as DIVAC) has

published this information in order to assist distributors to fully understand the parts policies and procedures

that govern their relationship with DIVAC. This manual should be reviewed by all distributor parts

department personnel and should serve as a reference whenever clarification of DIVAC parts policies is

required.

Previous parts policies distributed via bulletin, letter and other correspondence are contained in or

superseded by the contents described within this manual. In the event that any condition conflicts with the

Distributor Agreement in effect between DIVAC and the Distributor, please contact Tony Jones, Director of

Parts Sales and Marketing at 770-831-2264 as soon as possible.

DIVAC reserves the rights to periodically update this manual on our dealer access system to allow up to the

minute availability by our distributors parts operations.

DIVAC reserves the right to change conditions contained in this manual without notice.

DIVAC believes that having our policies and procedures outlined in a quick reference format will increase

efficiency at distributor locations when performing day-to-day parts functions.

TABLE OF CONTENTS

SECTION 1 ~ GENERAL INFORMATION

1.1 Company Location 1.2 Parts Center Contact Information 1.3 Internet Access 1.4 Business Hours

SECTION 2 ~ PARTS ORDERS

2.1 General Parts Order Information 2.2 Stock Orders 2.3 Regular Orders 2.4 Machine Down Shipments 2.5 Same Day Shipments 2.6 Shipping Options 2.7 Initial Stock Purchase 2.8 Purchase Order Confirmation 2.9 Direct Ship Policy

2.10 Drop Ship Policy 2.11 Gray Market Machine Policy for Ordering Parts 2.12 Back Order Cancellations 2.13 New Dealer Introductory Phase-In Period

SECTION 3 ~ RETURNS

3.1 General Conditions 3.2 Annual Returns 3.3 Parts Ordered In Error by Distributor 3.4 Defective/Damaged Parts or Parts Shipped in Error by DIVAC 3.5 New Dealer Initial Stock Parts Returns 3.6 Short Shipped Parts

SECTION 4 ~ PARTS WARRANTY

4.1 New Parts Warranty Policy 4.2 Limited Warranty Policy for Lift Truck Parts 4.3 Warranty Parts Requested to be returned SECTION 5 ~ INVOICING

5.1 Payment Terms 5.2 Wire Transfers SECTION 6 ~ DISTRIBUTION OF PUBLICATIONS

6.1 Dealer Manuals 6.2 Parts Bulletins 6.3 DIVAC Parts Price List SECTION 1 ~ GENERAL INFORMATION

1.1 Company Location:

The DIVAC Parts Distribution Center is located at:

DOOSAN INDUSTRIAL VEHICLE AMERICA CORPORATION 2905 SHAWNEE INDUSTRIAL WAY SUWANEE, GEORGIA 30024

1.2 Parts Center Contact Information:

The following phone numbers are for the Parts Center – Order Entry, Customer Service, Parts Technical

Support, etc.

(770) 831-2200 Parts Call Center

(770) 831-2250 Parts Fax

Primary Parts Contacts:

Tony Jones (770) 831-2264 Director, Parts Sales and Marketing / email: tony.jones@doosan.com

Jim Ferrell (770) 831-2220 Parts Technical / email: jim.ferrell@doosan.com

Derek Manders (770) 831-2217 Parts Technical / email: derek.manders@doosan.com

Kevin Pine (770) 831-3442 Parts Technical / email: kevin.pine@doosan.com

Steven Romero (770)831-2218 Parts Sales and Marketing/ email: steven.romero@doosan.com

Ed Marshall (770)831-2273 Parts Marketing and HPT Ordering/ email: ed.marshall@doosan.com

1.3 Internet Access

The minimum computer system required to access the DIVAC web site is

Microsoft Windows 98

Microsoft Internet Explorer

An Internet Service Provider

To access the secure dealer area of the DIVAC web site or if you have any questions concerning our web site,

please contact Jim Ferrell, Parts Technical Support (Lift Truck) at 770-831-2220 e-mail address:

jim.ferrell@doosan.com

1.4 Business Hours

8:00 AM to 5:00 PM, Monday through Friday Eastern Standard Time

SECTION 2 ~ PARTS ORDERS

2.1 General Parts Order Information

A. Orders may be submitted to DIVAC by any of the following methods:

Received via Internet Access.

Faxed to Doosan Industrial Vehicles America Corp, Attention: Parts Order Entry, (770) 831-2250

B. The following information on purchase orders must be included or it will be returned to the dealer for

processing.

1. Dealer Name

2. Dealer Code

3. Date of Order

4. Complete ship to address

5. Purchase Order Number (orders will not be processed without one).

6. Type of order:

STK – Stock Orders (Unlimited, minimum $500 per order)

REG – Regular Orders; Next Day, Second Day, Ground, Customer Pick-up (Regular orders are not guaranteed same day shipment)

MDS – Machine Down Shipment 7. Part Number

8. Description

9. Quantity required

10. Back order disposition "Cancel BKO." "Order BKO."

11. Dealer contact name (printed) and phone number for information.

12. Ship Via: Next Day, Second Day, Third Day, Ground, Best Way, Saturday Delivery, or Customer Pick-up.

(Pick-up orders not claimed within 24 hours of the stated time will be shipped as a best way and freight

charges will be billed to the dealer account)

13. Any order without specific ship instructions will be shipped ground.

2.2 Stock Orders (STK)

Minimum order amount is $500.00 dealer net, not including freight.

DIVAC places no limit on the number of stock orders allowed to be placed by distributors.

DIVAC will pay domestic freight on all stock orders, unless otherwise noted.

Stock orders are routinely scheduled for shipment no later than 5 business days after receipt of

order.

This policy is not applicable to distributor initial stock orders.

2.3 Regular Orders (REG)

Regular Orders are NOT guaranteed Same Day Shipping.

Cost of freight will be at distributor’s expense. Distributor must specify method of shipment (refer to

section 2.1 for details).

Shipping for Regular orders is routinely scheduled for 2 business days after receipt of order.

When air freight is specified as the shipping method, orders will be shipped the same day whenever

possible, but are not guaranteed.

Regular Orders do not incur any additional handling charges above and beyond those outlined in

general parts information.

2.4 Machine Down Shipment (MDS)

This order type is meant to apply to truck-down, warranty repairs only. Parts quantities should be

limited only to those required to affect a specific repair.

MDS orders are subject to DIVAC’s discretion.

All MDS orders are scheduled to ship same day received provided all policies and procedures are

adhered to. MDS orders will be assessed no surcharge in addition to any other handling charges.

The order must contain the machine model and serial number. DIVAC is not responsible if inaccurate

information about the machine is provided. An order that lacks this information will be classified as

an SDS Order and will be processed as such.

(All MDS orders that exceed 150 pounds or 130 inches total girth must be placed by 5 PM EST to

ensure guaranteed service) subject to carrier availability. Refer to 2.1 ‘Ship Via’.

All MDS orders under 150 pounds must be placed by 5:00 PM EST to ensure same day shipping.

All MDS orders are scheduled to ship the same day received provided all policies and procedures are

followed.

2.5.1 Surcharge discount incentive:

The surcharge for SDS orders will take into account your previous calendar year’s stock to emergency

purchases ratio and/or your participation in the Dealer Stocking Program. Each year your dealership

(individual branches) will be reviewed on the previous year’s activity from January through December to

determine your level of stock purchases. This level will be determined at the end of December to properly

prepare your account for a January 1st effective date. The following information describes each level and

their associated surcharge discount:

0% - 49% Stock Purchase Level = 3% Surcharge (no discount)

50% - 100% Stock Purchase Level = 3% Surcharge (surcharge waived)

Stock to Emergency purchase ratio is based on the number of lines ordered and is calculated annually

(January 1st through December 31st of the previous year).

2.5 Same Day Shipments (SDS)

This order type should apply to orders which require same-day shipping service. (All SDS orders that

exceed 150 pounds or 130 inches total girth must be placed by 4:00 PM EST to ensure guaranteed

service), subject to carrier availability. Refer to 2.1 ship via.

All SDS orders under 150 pounds must be placed by 5:00 PM EST to ensure same day shipping.

All SDS orders will be assessed a 3% surcharge in addition to any other handling charges.

All SDS orders are scheduled to ship the same day received provided all policies and procedures are

followed.

2.6 Shipping Options

(All MDS orders that exceed 150 pounds or 130 inches total girth must be placed by 5:00 PM EST to ensure

guaranteed service), subject to carrier availability. Refer to 2.1 ‘Ship Via’.

A. Saturday Delivery Option

UPS is the primary carrier and FedEx will be the secondary carrier.

Only SDS or MDS orders may be placed as "Saturday Delivery" and must be placed by 4:00 pm EST on

Friday (if the order is placed on any other day besides Friday, it will be sent NDA).

An additional fee (from the carrier) will be charged to the order on all "Saturday Deliveries".

Saturday Delivery is only available for shipments within the continental U.S. (Dealers in Hawaii,

Alaska, South America, or Canada can use any of the other shipping methods available).

B. Domestic Shipping Options

Next Day

Second Day

Third Day Air

Ground

Pick Up

Saturday Delivery

*Primary Carrier: UPS

C. International Shipping Options

International Priority (1-3 Days)

International Economy (2-4 Days)

Ground

Pickup

*Primary Carrier for Canada: DHL if under 150 lbs. / FedEx if over 150 lbs.

* Primary Carrier for South America and Puerto Rico: DHL

* Direct Shipping to locations outside the US may create commercial invoicing concerns. Contact our parts

department for assistance. (770-831-2200)

*DIVAC is not responsible for delays in transit times caused by customs clearance.

*For alternative carrier options, please see the following section.

D. Alternate Carrier Options

DIVAC suggests that our products be shipped to dealers via either our preferred primary freight carriers listed

above or by our preferred secondary carriers listed during the checkout process in order to take full

advantage of discount structures and pre-arranged pick up times. Dealers who encounter concerns with our

preferred selection of primary and secondary carriers should contact Scott Walker, Shipping Supervisor, at

(770) 831-2259 or Kevin Couch, Parts Warehouse Manager at (770) 831-2275. When necessary, DIVAC

dealers may be given the option to utilize other freight carriers. If this should occur, the following terms will

apply:

Method of shipment on order must be coded as a Customer Pick Up.

It is the responsibility of the dealer to arrange all details pertaining to shipment pickup and delivery.

(Customer Pick-up orders not claimed within 24 hours of the stated time will be shipped as a best

way and freight charges will be billed to the dealer account).

Dealer preferred carrier account number must be provided.

Dealer is responsible for filing claims for credit with the carrier when parts are received damaged or

when parts are lost.

2.7 Initial Stock Purchase (ISP)

This program is intended to encourage new distributors to stock spare parts required for common repairs

and maintenance based on parts activity and DIVAC’s recommendations. Improved parts availability at the

distributorship location and increased customer satisfaction are the results of using this program.

Terms:

Parts shipped freight prepaid.

Payment terms are net 30 days. Shipping for initial stock orders is 4 to 6 weeks.

No restocking fee unless goods need to be repackaged (see Section 3 for details).

All returns are prepaid freight. Collect shipments will be returned to dealer and freight charges

incurred by DIVAC will be billed to dealer account.

Order Policy:

DIVAC will accept one initial stock order for each model initially ordered by the distributor. DIVAC will

provide the distributor with a parts list for each approved model.

Modifications are allowed to an Initial Stock Purchase pending DIVAC approval.

Distributor’s purchase order must clearly indicate machine model number for verification and must

also be clearly marked "Initial Stock Purchase" or "ISP". A separate purchase order is required for

each initial stock order per model.

Distributors are eligible for this program up to 90 days after signing the distributorship agreement. If

in the first 90 days, a dealer orders additional models for their inventory, an additional initial parts

stock order for that new model can be ordered from DIVAC.

2.8 Purchase Order Confirmation

Purchase order confirmation is available through the “Dealer’s Page’ of the DIVAC website

2.9 Direct Ship Policy

DIVAC provides our distributors with the privilege to direct ship part orders. Direct ship orders will be

shipped to the destination designated by the distributor for the purpose of providing the best

possible service to the customer.

DIVAC will not direct ship C.O.D. orders.

Direct shipment is defined as the shipping of parts to a location other than one of the distributor’s

contracted places of business.

Purchase orders must include: the name, address, city, state, zip, and a contact name with phone

number for the final destination. Also, please include the shipping instructions and the phrase "Direct

Shipment".

If insufficient information is provided, the order will be shipped directly to the dealer.

2.10 Drop Shipments

DIVAC does not allow drop shipments from vendors to dealers or end users.

2.11 Gray Market Machine Policy for Ordering Parts

Doosan Industrial Vehicle America Corporation does not have access to technical information on Gray Market

machines, and is not able to verify accuracy of Gray Market machine information.

DIVAC will accept parts orders for these gray market machines, if the part is readily available from DIVAC’s

supplier in Korea.

Terms:

•The Model and Serial Number of the machine must be written on the Purchase Order Form.

•All parts are NON-RETURNABLE.

•All parts have NO WARRANTY.

•Once a parts order is placed, it cannot be cancelled.

•Parts must be ordered on REG (Regular) orders; all associated charges for procurement of parts will be

charged to the dealer.

•Dealer is responsible for Part Number look-up.

2.12 Back Order Cancellations

When necessary, Distributors should request in writing that a back order be canceled. This can be

accomplished either via e-mail or facsimile to the DIVAC Parts department. This will ensure that proper

documentation is provided to support the cancellation when future discussions are presented.

2.13 New Dealer Introductory Phase-In Period

2.13.1. Introduction:

All new dealers will be given an introductory period of 5 months (150 days), during which all STK-to-EMR

ratio based incentives will be afforded:

•No Surcharge for MDS/SDS orders

•Supplemental Stock Order entitlement (see section 2.2)

•5% additional annual return allowance

2.13.2. Phase-In:

At the end of the introductory period, the dealer's official STK-to-EMR ratio will be calculated based on stock

purchase performance over the 5 month (150 day) period, and will be applied to the dealer's account for the

remainder of the standard audit period (Jan - Dec of the current year). At which time, the new dealer will be

considered completely phased in.

2.13.3. Establishment:

Once a new dealer is considered completely phased-in, their STK-to-EMR performance will be calculated as

standard policy dictates.

SECTION 3 ~ RETURNS

This Policy covers the conditions under which parts will be accepted for credit and the basis on which credit

will be determined. Its purpose is to expedite the return/credit procedure in a way that will be beneficial to

both DIVAC and the distributors that we serve. All returned parts are subject to inspection at DIVAC.

3.1 General Conditions

Distributors shall use the Return/Credit Request form on the DIVAC web site. This form applies to every type

of credit request involving service parts, which were ordered from the DIVAC Parts Depot. If the request

form is not filled out completely, this could result in delay or denial of the claim.

Returns are required to be submitted through the internet via the DIVAC website. This will allow the

system to perform initial checks for approval. Distributors will then be notified by DIVAC of the return

authorization number (RA number) by having the form returned to them.

All returned material must have been originally purchased from DIVAC. Items that have a limited

shelf-life (rubber products & paper goods among others) must be returned within 30 days of receipt

if shipped or ordered, in error.

If required, DIVAC reserves the right to ask for proof of purchase.

Used parts and parts that are not Genuine Doosan Parts may not be returned.

Requests to return parts must be submitted to DIVAC no later than 30 days after the invoice date.

All packages should be clearly marked with the assigned "RA" number. A copy of the approved Parts

Return/Credit Request form must accompany each package. Parts returned without this information

will be returned to the dealer, and freight charges will be billed to dealer account.

All returned parts must be in new, saleable condition and must be identified with the correct part

number. Parts must be returned in original packaging to ensure acceptance at DIVAC. The distributor

will have a period of 30 days after the date of approval in which to return all authorized parts. All

parts must be shipped "prepaid" to DIVAC, 2905 Shawnee Industrial Way, Suwanee, Georgia 30024.

Collect shipments will be returned to dealer and freight charges incurred by DIVAC will be billed to

dealer account.

Parts ordered in error or in excess of requirements by the dealer may be returned immediately after

obtaining a Return Authorization. The restocking charge for immediate returns is 15% or $15

whichever is greater.

The repackaging fee, if needed, is 10%.

Dealer must report parts shipped in error by DIVAC immediately upon receipt. Dealer must report

damaged parts immediately upon receipt. Parts must be returned with an approved RA Number

within 30 days. Credit will be issued for invoiced price plus freight.

There will be an additional 10% restocking fee charged to any shipment that is refused by the dealer

(or end-user) and returned to DIVAC in addition to the freight incurred for original shipment

outbound and inbound from refusal.

All MDS/SDS surcharges incurred by the dealer are for special handling of the original order and

therefore, will not be refunded.

3.2 Annual Returns

Doosan Dealers are entitled to an annual return of 10% of the previous calendar year’s total stock order

purchases. Doosan will notify the Dealer, in writing, as to the total dollar amount and month for the parts to

be returned. Returns will be at current dealer net pricing. This notification will also include the breakdown of

each branch’s activity for the previous year. The dealer is required to submit a list of quantities, part

numbers, descriptions and extended prices for each part to be returned within 30 days prior to their annual

return date. This list will be reviewed by DIVAC, and if acceptable, a Return Authorization Number will be

issued. The main branch is to consolidate all parts to be returned, and ship all returnable items back

together. No parts will be received without the authorization form attached and/or enclosed, nor will

multiple shipments from different locations be accepted.

3.2.1 Recommended Stock Items: Any recommended stock items that are purchased within the previous two

(2) calendar years may be returned as an addition to your annual return figure. For these terms to apply,

recommended stock items must be submitted on a separate list and sent in with your normal annual returns.

No penalties will be involved when the above procedures are followed properly.

3.2.2 Non-Returnable Items: Items not in saleable condition, items with limited shelf life (see 3.1), previously

installed items and items which have been superseded are not eligible for return.

3.2.3 Inspection of Return Parts: Credit will not be issued on any part returned that does not pass inspection.

Notifications will be sent if a part has not passed inspection. Upon notification, the part may be returned at

dealer’s expense, or the dealership may elect to have DIVAC’s warehouse scrap out the part.

3.2.4 Minimum Unit Price: Any part returned must have an extended value of $10.00 Dealer Net.

3.2.5 Freight: The dealer must prepay transportation costs of these returns.

3.2.6 Restocking Charge: There will be a 10% restocking charge deducted from the net amount for handling

and inspection costs.

3.2.7 Packaging Orders to be returned to Doosan: All parts must be properly packed and protected for

shipment. Each individual part item must be numbered and or tagged to ensure proper identification by

Doosan. A packing list must be included with the shipment. If any part is received poorly packaged, not

properly identified, or not in the original boxes (bags), the dealer will be subject to an additional 15%

repackaging charge. Parts found to be damaged in shipping due to improper packing will not be accepted and

may be returned to the dealer at the dealer’s expense.

3.3 Parts Ordered in Error by Distributor

All general conditions apply. Refer to Section 3.1 for details.

Distributors may request to return parts ordered in error within 30 days of receipt, with no minimum,

or it must be held for an annual return.

Distributor must provide their purchase order number or the DIVAC order number.

Returned parts must be shipped prepaid to DIVAC. Credit will be issued at current pricing less a 15%

restocking charge or $15 whichever is greater.

3.4 Defective Parts, Damaged Parts, or Parts Shipped in Error

All general conditions apply. Refer to Section 3.1 for details.

For any approved damaged/defective claim; credit will be issued for the item in question and the Dealer must

reorder the item. Any SDS/MDS surcharges for these claims will be refunded provided the Dealer requests a

refund in the comments area of the online parts return.

3.4.1 Parts which are defective

If the part is defective once installed on the machine, please consult the warranty policy and procedure

manual, or contact a DIVAC Warranty Administrator. If the part is visibly defective, follow the guidelines for a

general return. Once DIVAC has received the part, it will be inspected. If deemed defective, there will be no

restocking fee and full credit, including freight will be issued.

3.4.2 Parts that are damaged

If there is visible damage to the package once received, dealer must advise carrier at time of receipt

and file claim with carrier (dealer must sign "received Damaged"). Failure to properly note damage

with carrier upon receipt typically will result in denial of claim.

If the freight carrier does not cause damage, then all general conditions apply. File a return with

DIVAC within 30 days of receipt, and upon inspection of the part, DIVAC will issue full credit plus

freight.

When choosing an alternate carrier (non-preferred, ref. section 2.6) Dealer is responsible for credit

claim filing with carrier for parts damaged or lost parts.

3.4.3 Parts that are shipped in error

Contact DIVAC as soon as the shipment is received, and then follow the guidelines for a general parts return.

The part(s) and all freight charges will be credited.

3.5 New Dealer Initial Stock Parts Return

All general conditions apply. Refer to Section 3.1 for details.

Initial stock parts remaining in dealer stock at the end of 24 months may be returned to DIVAC

freight prepaid. After the initial 24 months, Dealers have 30 days to submit a return request on these

items or the return is void.

Restocking fees will be waived for these parts, but repackaging fees may apply.

Parts returned without authorization will be refused by DIVAC and returned to the shipper freight

collect.

3.6 Short Shipped Parts

All general conditions apply. Refer to section 3.1 for details.

A part is considered short shipped if it is missing from the package, and the package is not damaged.

Dealers must submit a return request immediately and must use the short shipped reason code.

For any approved short-shipped claim; credit will be issued for the item in question and the Dealer

must reorder the item. Any SDS/MDS surcharges for these claims will be refunded provided the

Dealer requests a refund in the comments area of the online parts return.

SECTION 4 ~ PARTS WARRANTY

4.1 New Parts Warranty Policy

For complete policies and procedures regarding parts warranty, please see the Doosan Service Policy

Procedure and Warranty Manual or contact your Warranty Administrator.

4.2 Limited Warranty Policy for Lift Truck

The limited warranty for Doosan supplied genuine parts sold by a dealer on Doosan Lift Trucks or purchased

over the counter by the end-user customer will be effective for six (6) months or 1,000 hours of use

whichever comes first from the date of sale to the customer.

4.3 Warranty Parts requested to be returned

Parts that are required to be returned to DIVAC per the approved claim must be returned to the directed

appropriate DIVAC facility with appropriate documentation to identify the returned product. Improperly

shipping to the incorrect DIVAC location will result in product being returned to dealer and freight charges

incurred by DIVAC will be billed to dealer account. This may also result in voided claims due to delays from

improper shipping.

SECTION 5 ~ INVOICING

Parts invoices for shipped orders are posted daily and are accessible to dealers via DIVAC's Web site.

5.1 Payment Terms

Standard Terms of Payment are net 30 days from date of invoice. If payment is not received within 30 days,

DIVAC reserves the right to hold shipments and place the dealership on a credit hold.

5.2 Wire Transfers

If prepayment of shipment is your preference, please contact the DIVAC accounting department at 770-831-

2200

SECTION 6 ~ DISTRIBUTION OF PUBLICATIONS

6.1 Dealer Manuals

Lift Truck Dealers are responsible for purchasing manuals for their own machines after the initial startup

package. Examples of these are parts, service, and operator manuals. All parts manuals are currently

available through your dealer access site.

6.2 Parts Bulletins

The parts operation of DIVAC will publish and distribute periodic updates and announcements in the form of

bulletins to authorized distributors, free of charge via the DIVAC web site. Some of these bulletins will

address the parts requirements for specific repairs and maintenance of certain machine models. Other

bulletins will represent important changes in parts policies and procedures. Distributors should review these

bulletins and have them accessible to the parts department staff. Bulletins can be printed in an appropriate

format to be placed into existing binders.

6.3 DIVAC Parts Price List

All parts invoices are at Dealer Net in U.S. Dollars.

Dealers may distribute the price file to Minitrac, Fetner Associates, Inc., EBS Mechdata, DIS, MTA,

and National Distributor Services. It is the dealer’s responsibility to distribute price files accordingly.

EOD