1. Guideline for Overstock 2017

2. TABLE OF CONTENTS TO LOCK IN CUTOUT PRICES (SLIDE 3)
TO PREPARE BOXES (SLIDE 4)
TO GENERATE PACKING LIST
(SLIDE 5)
TO ARRANGE LOGISTICS (SLIDE 6)
TO MEET QUALITY STANDARDS & AVOID DEDUCTIONS
(SLIDES 7-10)
REPORT TO YARDS (SLIDE 11)
PAYMENT
(SLIDE 12)
STATEMENT
(SLIDE 13)

3. TO LOCK-IN CUTOUT PRICES
Our price and model list will update the beginning of the current month. Some prices and models may change or be cancelled.
Once we receive an invoice containing items being sold to us, the materials then must be shipped out no later than the next 30 days to warrant the price; materials arriving otherwise will be paid with updated price or scrap price.

4. TO PREPARE BOXES
Each box prepared for Fresh Path must have box number, Hollander ICs and stock numbers written either on the box or on a manifest attached to each box.
We also prefer recyclers to place 4 or more engines in an all-engine box, or 10 or more transmissions in an all-transmission box. Boxes containing both engines and transmissions should also be filled to capacity.
Never mix the cores with cutouts since we pay considerably higher prices for the cutout units and doing so might lead to units incorrectly priced.

5. TO GENERATE PACKING LISTS
A comprehensive packing list/manifest containing box number, Hollander ICs, and stock numbers for units in that specific box must be forwarded to Fresh Path in order to arrange shipment (see an additional document for the format).
Weight included for each box is preferable.

6. TO ARRANGE LOGISTICS
For purely overstock runner/cutout boxes, Fresh Path will arrange shipment with a minimum requirement of 5 boxes or more. However, we prefer full truckloads.
If there is an increase on the logistic fee caused by the yards, the difference will be on the vendor’s expense.

7. TO MEET QUALITY STANDARDS & TO AVOID DEDUCTIONS
Transmissions:
Items must contain stock number and have white tags attached. They must also be cleaned according to retail standards and be drained of oil [Attachment 1]; otherwise they will be paid based on the following situations:
No stock number: items will be paid with core price.
Must contain torque converter. If missing, items will be paid with core price.
Items cannot be broken and must be complete. If bell housing, case, and tail is broken, missing or has holes, we will pay based on scrap price. If pan and housing seal is broken or missing, item will be paid based on core price. If the sensors are broken, 20% will be deducted from the cutout price. [Attachment 2]
Items cannot be heavily corroded or rusted; otherwise it will be paid as core price. See [Attachment 2]
Burnt units will not be accepted as cutouts and will be paid based on scrap price.
Water damaged units will not be accepted as cutouts, they will be paid based on core price.
Heavily oil stained or extremely dirty units will be paid based on core price. [Attachment 2]
Wrong model or IC: If we receive the incorrect model, we will pay based on the correct price for that model if it's on our current buying list. If the model is not on the list, we will pay the scrap price or return to vendor at their expense.

8. TO MEET QUALITY STANDARDS & TO AVOID DEDUCTIONS (CONT.)
Engines:
Items must contain stock number and have white tags attached. They must also be cleaned according to retail standards and be drained of oil [Attachment 3]; otherwise they will all be paid according to the following situations:
All units must turn well with pressure or will be paid core value.
Units without stock numbers will be paid based on core price.
Units must contain all accessories: If the oil pan, timing cover, valve cover or coil pad is missing or broken, it will be paid based on core price.
Units must come with intake or will be paid with core value.
Coil pads must also be intact and secured in place or units will be paid core value.
If the sensor and surrounding accessories have been broken, there will be a 20% deduction from the cutout price.
Units cannot be burnt and middle block cannot be broken. Otherwise, it will be paid based on scrap price.
Units can’t be broken on the oil pan or have a hole in the oil pan. Otherwise, it will be paid based on core price. [Attachment 4]
Heavily corroded or rusted units will be paid based on core price. [Attachment 4]
Water damage units are not acceptable and will be paid based on core price.
Heavily oil stained or extremely dirty units will be paid based on core price. [Attachment 4]
We prefer to have the engine fully dressed with harness wires remaining attached to the unit.
Wrong model or IC. If we receive the incorrect model, we will pay the correct model price for it if it's on our current buying list. If the model is not on the list, we will pay the scrap price or return to vendor on their expense.

9. TO MEET QUALITY STANDARDS & TO AVOID DEDUCTIONS (CONT.)
Must have torque converter
Cannot be rusted / corroded
Cannot be broken / cracked

10. TO MEET QUALITY STANDARDS & TO AVOID DEDUCTIONS (CONT.)  
Clean & with stock#
Has oil cooler
Clean & no sign of burn
Not rusted / corroded

11. REPORT TO YARDS
If there are any issues with check-in items, we will place the order on hold, and report to vendor immediately by and confirm by phone:
Any missing, incorrect or quality issue units will be photographed and sent out to recyclers for review. Recyclers can either accept deductions or have Fresh Path ship the units back. Freight for items shipped back are complimentary only for one time use.
Yards have within 2 business days to acknowledge the problem before we can move loads into our inventory. If we don’t get the feedback in 2 business days, we will proceed based on our purchasing guidelines.

12. PAYMENT
After everything is confirmed, we will generate purchasing order (PO) and send to vendors. Vendor should generate or edit the final invoices based on the PO that we agreed upon.
Payment will be processed within 30 days after we receive the order. Shall there be any lengthier problems within the confirmation period, we may delay payment up to five days.

13. STATEMENT
This is the standard purchasing and check-in procedure for Fresh Path LLC. Fresh Path will abide by these guidelines and there will be no further changes unless further addressed. Anything verbally conducted by purchasing representatives against this guideline will not be valid.

14. If you have any questions, please feel free to call us at: (281)448-3333