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PHOENIX EXCHANGE, INC.
GENERAL SALES POLICY

PAYMENT TERMS: Accounts Receivable will be handled by Interstate Billing Service
(IBS) in Decatur, Alabama. Statements will be sent to you on or about the 25th of each
month. Payments should be made payable to Phoenix Exchange Inc., and mailed to:
Interstate Billing Service P.O. Box 2208 Decatur, Alabama, 35609-2208. Since we
provide invoices at the time of sale, no invoices will be sent with your statement. For
billing information or assistance please call 1-800-223-9146 for any question you might
have about your account. Cores that have not been returned during current month billing
may not be deducted from your payment. Open balance accounts that are delinquent for
lack of payment, for cores not returned, or cores that do not adhere to our terms and
conditions will be put on due upon receipt terms. An open balance account that shows no
activity in a six (6) month period will be considered inactive and therefore canceled.

FREIGHT: Freight will be paid by the customer and added to the invoice at time of
purchase. Exceptions will be at the discretion of Phoenix Exchange Management on a
case by case basis. Orders placed after 3:00 p.m. that require same day service are subject
to a $15.00 special handling fee.

CORE RETURNS: All cores must be returned freight prepaid to: PHOENIX
EXCHANGE, INC. 2412 IRVING BLVD. DALLAS, TX 75207, within 60 days from
the date of purchase to be considered for full core credit (exceptions to this will be made
by Phoenix Exchange Management only). Invoicing for products not exchanged will
be invoiced as an “Outright Sale”, with the core being part of the complete product,
(therefore due and payable). Full core credit will be issued upon return of
REBUILDABLE CORES with a copy of the original invoice indicating the invoice
number, date of purchase and part number. Core eligibility is maintained on a like for like
core basis, and the customer is eligible to return the cores purchased within 60 days from
the date of invoice. Any core returned after 60 days will not be considered for full core
credit unless otherwise authorized. Cores sold outright at reduced values are not eligible
for return. Cores returned for credit must be complete and never disassembled. Wrecking
yard or weather beaten cores will not be accepted for credit. Units that are rusty, frozen
(seized or locked up) or that cannot be rebuilt will be classified as junk with no value.
Fan Clutch Cores, Steering Gear Cores and Pump Cores must turn through, mounting
holes and housings not cracked or broken, input and output shaft splines or keyways must
not be damaged (twisted or sheared)or have excessive wear, welded on, or show signs of
severe impact to be eligible for full credit. Cores are subject to an internal inspection
before credit will be issued.

Limited Warranty: All products remanufactured by Phoenix Exchange, Inc. are warranted
against remanufacturing defects in material and workmanship for a period of 1 year.
Products returned as defective, will be disassembled to determine that the failure was due
to a remanufacturing defect prior to replacement. In all cases, Phoenix Exchange, Inc.
reserves the right to either repair or replace any of Phoenix Exchange, Inc. products that
have failed due to workmanship or defective material used during the manufacturing
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