Fenwick Automotive Products

Policies and Procedures

For

The Alliance Group

Strictly Confidential

This manual shall remain the property of Fenwick Automotive Products and must be surrendered upon request.

This manual is not to be copied, reproduced, or distributed to any third party without the express written permission of Fenwick Automotive Products.

Table of Contents

Corporate Profile

General Information 3

Quality 4

Community 5

Contact Information 6 &, 7

Terms and Conditions

Pricing Policy 8

Credit and Remittance Information 9

Order Placement 10

Freight and Shipping Policy 11

Product Return Policy 12

Labor Claim Policy 13

Annual Stock Returns & Product Warranty Periods 14

General Information

Customer Satisfaction is the key to the future

and Quality is the road that will take us there!

From our humble beginnings over 60 years ago, we have evolved to become a leader in the North American Automotive Aftermarket, offering distinct product lines of both Remanufactured and New products. Each and every day we strive to offer our customers what we call the "Fenco Value Proposition" -our proven combination of Quality, Service and Price-in the over 8 million parts we ship each year.

Throughout our growth, we've never forgotten our roots, our loyal customers and our valued employees, who have all played a vital role in helping make our success possible.

Within our 750,000 square feet of manufacturing and distribution, every one of our associates exemplifies the word "pride" while making our quality parts and providing exceptional service to our customers. It's this kind of integrity and dedication that has always kept us on the leading edge of Quality and Customer Satisfaction.

Our achievement of becoming the first re-manufacturer in North America to receive the FORD Q1 quality certification and then QS9000 in 1998, followed by achieving the new standard of TS16949- stands proof of the Quality standards of every one of our products.

Quality

Fenco's Quality Philosophy - Continuous Improvement

As far back as 1963, when Fenco first started supplying Ford Motor Company, formalized Quality Control procedures were already well indoctrinated throughout every aspect of our operation.

Through the years, our focus has intensified, brought about by our continuous improvement philosophy and our ongoing extensive training programs for all associates in this vital area.

In 1987, Fenco adopted the Deming Theory of statistical process control (S.P.C.) which facilitated the finite measurement and documentation of all critical dimensions and specifications for all components utilized for final assembly. As well, our 100% testing philosophy, coupled with our stringent quality control processes have enabled us to continuously improve upon both our Internal and External warranty rates.

Customer Satisfaction - Quality Focus

Fenco is committed to meeting, and exceeding, the requirements and expectations of our customers. Our continuous improvement philosophy, coupled with our dedication to Quality, provides our customers with:

Guaranteed product quality and reliability

High order fill

On time delivery

Personalized services

Competitive prices

Lowest warranty rates in the industry

Our commitment to our customers is that we will be relentless in our quest to provide the highest quality parts, at the lowest possible price, while providing the highest degree of personalized services.

Community

At Fenco, we take pride in giving back to the community.

Fenco and the Fenwick family are proudly active in the community, focusing on fundraising for many local hospitals, medical research and children's charities.

Although we support over 40 major charities related to health issues and people in need, we at Fenco have been specifically involved with one special charity for the past 10 years, and that is the Starlight Children's Foundation.

The Starlight Children's Foundation grants wishes to seriously ill and terminally ill children. In addition, Starlight provides 'in hospital' support to children while confined to hospitals, as well as family counseling and support.

The Fenwick brothers are regularly involved in fund raising for Starlight, through events such as the annual Fenwick Run for the Children. Funds from these events go directly to "wish granting" and in-hospital entertainment centers, all in an effort to put a smile on the faces of children.

This tradition of giving back to the community started with the Company's founder and family patriarch, Reuben Fenwick. Both the Company and the Fenwick brothers are committed to continuing on with this legacy.

Contact Information

Headquarters

Fenwick Automotive Products

1100 Caledonia Road

North York, Ontario

Canada

M6A 2W5

US Toll-free: 1-888-413-3626

Phone (416) 787-1723

Fax (416) 787-7621

Website: www.fencoparts.com

Customer Service

Email:

Larry Urovitz

US Toll-free: 1-888-413-3626

Phone (416) 787-1723 EXT. 279

Fax: (416) 787-0093

Email:

Technical Services Department

As a Fenco customer, we offer a Technical Hotline for your convenience. Hours of operation are Monday to Friday 8:00 a.m. to 8:00 p.m. EST. Saturdays are 9:00 a.m. to 3:00 p.m. EST.

Tech-line is 1-888-413-3626

Email:

Contact Information
Accounts Receivable

Du Pomazanskyj

US Toll-free: 866-413-3626

Phone: (416) 787-1723 EXT. 234

Fax: (416) 787-2786

Email:

Returns Department

Tom Dickson

US Toll-free: 888-413-3626

Phone (416) 787-1723 Ext. 278

Fax: (416) 787-2786 attention: RGA Dept.

Email:

Request an RGA # by emailing us at

Terms and Conditions

Pricing

All prices are subject to change without notice.

Core values may increase or decrease according to market value fluctuations. Allowances will not be given when core values change.

Fenwick Automotive Products also provides jobber pricing and electronic cataloging via Activant, Wrenchead, and AMS.

Fenwick Automotive Products is also AAIA format compliant.

Credit Policy

Fenwick Automotive Products requires that all accounts applying for credit as a new account submit three viable trade references from other manufacturers. Fenwick Automotive Products will provide a credit application.

Fenwick Automotive Products also uses D & B and MEMA Credit Services for additional credit history when necessary.

The following are general credit and payment terms:

A.  Payment terms for Fenwick Automotive are 2%, 90 days.

B.  All accounts are to maintain current status on their monthly statements. Accounts who fall into the 30 day past due category, will automatically be placed on “hold shipment” status until they become current.

C.  Fenwick Automotive Products sales agents will be notified if any of their respective accounts fall into this category.

Remittance Information

Please send all remittance to:

Fenwick Automotive Products

1100 Caledonia Road

Toronto, Ontario

M6A 2W5

Order Placement

Fenwick Automotive Products accepts orders via mail, fax, or EDI. Our order desk is open Monday to Friday, 8:30 a.m. to 4:30 p.m. EST.

A.  All orders submitted must contain a customer purchase order number before it will be processed.

Purchase order must include date and account number.

B.  Based on order size, order turnaround is 48 hours upon receipt of purchase order and can be delivered within 14 working days.

All orders should be sent to:

Fenwick Automotive Products

1100 Caledonia Road

Toronto, Ontario

Canada

M6A 2W5

Attn: Order Desk

E-Mail:

US toll-free: 888-413-3626, choose option # 1

Phone: (416) 787-1723

Fax: (416) 787-7621

Fenwick Automotive Products is EDI/Transnet compliant.

Freight and Shipping Policy

1.  Freight is prepaid by factory on all orders of $1,500.00 NET (unit cost, net of cores) or greater.

2.  Freight to Hawaii, Alaska, and Puerto Rico will be shipped in the most efficient and cost effective manner. Freight carrier will be designated by Fenwick Automotive Products. Freight is prepaid to these locations with minimum $6000.00 NET (unit cost, net of cores) order.

Product Return Policy

Core & Warranty Returns

1.  Cores and warranties may be returned collect to factory when return quantity is 3 skids or more, and must be accompanied by an RGA number and must be shipped in the original Fenco box. Although cores and warranties can be combined to make freight, they must be packed and marked separately, and a separate RGA # will need to be assigned for both the core return portion and the warranty return portion.

2.  In order to receive an RGA number, contact us via email at . Cores and Warranty require a separate return number and will be issued separate RGA numbers. Pallet count and weight is required on the request.

Copy of the packing slip/parts list is required with the request.

3.  Fenwick Automotive Products will make arrangements to have cores and warranties picked up and provide all shipping information.

4.  Failure to use Fenwick Automotive Products authorized carriers or meet weight requirements will result in charge back to customer for freight charges. Customer is responsible for accurate declaration of quantity and type of return for customs purposes.

5.  All core returns to Fenwick Automotive Products must include:

Packing slip with:

1.  Account name and address

2.  RGA Number (provided by Fenwick Automotive Products)

3.  Quantity of returned units listed in Fenco number

One copy of packing slip to be attached to the Bill of Lading for the receiver.

One copy of packing slip attached to one skid of the load, preferably in a carton marked “PACKING SLIPS ENCLOSED”

Labor Claim Policy

1.  All Labor Claims must have an RGA assigned by Fenco prior to sending the units back for inspection.

To obtain an RGA please send an email to , and include the part number, quantity, claim number along with your complete shipping address, name, phone number and extension. Please note that the ship to location may vary with each labor claim depending on the type of Fenco product and issue.

2.  An RGA will be sent to return the product along with return instructions.

3.  The following information will be required, and must be inside the shipping container.

A. Fenco customer name, Fenco account number, & store location and store # if applicable.

B. Date of claim

C. Customer claim #

D. Claim amount requested (Must provide specific details)

E. Claimants name

F. Part #

G. Quantity

H. All receipts need to total the amount requested, and must be legible.

I. Fenco customer contact name and phone number.

If paperwork is not complete or missing, only unit/core credit will be issued, and labor claim amount will be denied.

4.  The outside of the shipping container must be labeled with the RGA number, and marked “Labor Claim Enclosed”.

5.  If claim is valid and failure was due to defective material or workmanship;

A.  Fenco will reimburse customer based on Chilton flat rate schedule. ($40.00 per hour.)

B.  Incoming freight will be credited back at actual freight cost, as supplied by customer.

C.  For each unit returned, the unit and core will be credited at customer’s current price.

6.  If Fenco receives any unit that is not a genuine Fenco or Fenco re-boxed unit or not in a Fenco box, the part will be returned to the customer.

Expenses NOT reimbursed are rental car, loss of wages, sales tax on product, tax on repair, lodging, taxi, meals and any additional work done not pertaining to claim

Annual Returns

1.  Returns are based on 5% of previous year’s net purchases and are non-cumulative. An equal or greater offsetting order for new coverage must be placed at time of return. Customer pays freight on return.

2.  An RGA number must accompany all returns. Please contact your sales representative for approval and RGA #.

3.  Credit for returns will be issued at current acquisition cost less applicable discount.

Fenco Product Warranty

Product Line / Years / Miles / Commercial
Rack & Pinion Units / 2 / 24,000 / 30 days
Power Steering Pumps and Gears / 2 / 24,000 / 30 days

Please note that although these are our published warranty periods, we provide a customer satisfaction warranty, which allows you to accept and return for credit to Fenco, any Fenco product that you deem appropriate in order to take care of your customers.

2