Table of Content Obispo Ave., Long Beach, CA Tel: 877-SUN-LAND Fax: Page 1 of 49

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1 Table of Content New Account Application Process... 3 Reactive Account Application Process... 4 Company Policy... 5 New Account... 5 Order Forms... 5 Terms and Conditions... 5 Payment Methods... 6 Revision/Cancellation Policy... 7 Revision Fee Guideline... 8 Cancellation Fee Guideline... 9 Shipping/Freight Policy... 9 Storage and Disposal Fees...9 Shortage, Damage and Non-conforming Merchandise...10 Remake/Repair Claims & Policies...10 Full Service Installation Program...11 Self-Measured Installation Program...12 Waiver of Liability on Inside and Semi-Inside Mount Applications...12 Specialty Shutter Template Requirement...13 Claim Policy...14 Authorizers for MRA Claims...14 Authorizer Guidelines...15 Return Policy...15 Simple Repair Policy...16 Repairs and Refinishing Policy...16 Remake Policy...17 Fault at Sunland Shutters...17 Fault at Dealer...17 Sample Policy...20 Sample Request Procedure...21 Sample Pricing & Promotion...23 Rebate Requirements...23 Credit Coupon Rules...23 Sample Bags Old Design...23 Presentation Box...23 Sample Panel Set...24 Samples...24 Show Room Custom Display Shutters...24 Loaded Display Stands...24 Custom Display Stands...24 Personal Use Shutters...25 Marketing Materials...25 Page 1 of 49

2 Installation Standard Operation Procedure...26 Full Service Installation...26 Self-Measured Installation Service...28 Installation Program Instruction to Customer...30 Full Service Installation...30 Self-Measured Installation Program...32 Installation Surcharges...32 Sales Tax Applied to California Installation Orders...32 Account Receivable Policy...34 Payment From Branch...34 Expense Policy...35 Travel Expense Policy...35 Co-Worker Meal...35 Hotel Budget...35 Travel Meal...35 Event Budget...36 Declare Entertainment Expense...36 Fuel Expense Policy...37 Purchase Order Policy...38 Routine Purchases...38 Occasional Purchases...38 Overtime Policy...39 Travel Policy...40 PDA Scan Instruction...41 Start the Program...41 Load Invoice Data-start scanning the new invoice...42 Shipment Receiving / Edit / Checking...42 Upload Data to TBS...44 PDA Check Warehouse Inventory Instruction...46 How to turn on the program...46 Create PO Receive Instruction on TBS...46 Employee Order Pricing...47 Features and Benefit...48 Polycore...48 Lexwood...48 Company Resource Policy...49 Page 2 of 49

3 New Account Application Process New New Account Account Application Application Confidential Confidential Credit Credit Application Application Account Account Term Term CIA CIA COD COD 1 1 Company Company Policy Policy Resale Resale Certificate Certificate COD COD 2 2 Net Net Personal Personal Credit Credit Check Check Review Review Trade Trade & Bank Bank Reference Reference Account Account Code Code COD COD 1 1 Credit Credit Review Review COD COD 2 2 And And Net Net Only Only Approved Approved Term Term and and Credit Credit All new account applications required to fill out confidential credit application and submit a copy of the resale certificate. Effective 09/22/2008, all accounts requires a Personal Guarantee on file except accounts request for C.I.A. terms. Personal credit check and Trade/Bank reference are only required when the applicant is applying for COD 2 or Net 15 terms. Signed copy of company policy agreement is required for all accounts. A new account cannot be open without a signed copy company policy agreement and resale certificate. COD2 and Net Accounts will be open under COD 1 term until credit check is completed and reviewed with approved term/credit line. New account setup should be complete no longer than 5 working days. New account term review and approval process procedure: Credit Link as the primary source for trade reference information. Trade Reference and bank information can be filed with customer file after response received. New Account will be approved for Net 15 with credit line $3,000 to $5,000 at most in regardless of the trade reference and bank information. Trade reference and bank information will be reviewed when the account needs an increase on the credit line. ACH check is accepted for COD 1, COD 2 & Net accounts. Page 3 of 49

4 Reactive Account Application Process Confidential Credit Application CIA COD 1 Record Review New Account Application Previous Account Term Resale Certificate COD 2 Net 15 Personal Credit Check CIA COD 1 COD 2 Company Policy Trade & Bank Reference Credit Review COD 2 And Net 15 Only If no signed copy on file Approved Term and Credit An inactive account is having no sales activity for the past 6 months. Confidential credit application and resale certificate are required to update the account and owner information. Signed copy of company policy agreement is required if the account is currently blocked due to lack of signed company policy agreement. The company policy status can be verified with local office personal or A/R department. Effective 09/22/2008, all accounts requires a Personal Guarantee on file except accounts request for C.I.A. terms. Personal credit check authorization and trade/bank reference are only required when reactive account is applying for COD 2 or Net 15 terms. If the inactive account had CIA or COD 1 terms, then the account will be reactivated as previous terms. If the inactive account had COD 2 or Net 15 terms, then the account will be reactivated as COD 1 or COD 2 depends on the performance reviewed. New account term and credit line will be issued after review the credit information. Page 4 of 49

5 Company Policy New Account A valid seller s permit and resell certificate are required before registering as a new account. New accounts are automatically established on a C.O.D.**Basis until credit is approved. Our term for approved open accounts is NET 15 on the balance only. Deposits are required on all contracts. addresses and Internet access are strongly recommended since a vast amount of Sunland Shutters processing tasks are available for viewing on-line. **See Payment Methods Order Forms Sunland Shutters will only accept orders made on the latest version of our order form. These order forms must be filled out completely, legibly and signed. Any incomplete forms or orders on non-approved order forms will not be processed and may delay your shipment. Order forms are available for download at. On-line ordering is also available via our website at Terms and Conditions A 50% deposit is required on all orders except for accounts under C.I.A. terms, which require a 100% deposit. Sunland Shutter s acceptance of Customer s order is first subject to its receipt of the required deposit and information,as the case may be. Time of production is also calculated from the date of its receipt of the required deposit and information. All invoices must be paid in full. Discrepancies are to be filed through our customer service department. Any unauthorized short paid will result in credit hold of your account immediately. Upon Sunland Shutter s discretion, personal guaranties may be required before Sunland Shutters accepts any Customer s order. Any affected Customer will be advised if such a guaranty is necessary. Sunland Shutters reserves the right to reject any order and for any reason, including but not limited to the termination by any guarantor of his guaranty. Customer s submission of an order with the appropriate deposit is not an assurance the Customer s order will be accepted. Sunland Shutters will deliver to Customer written notice of the rejection of Customer s order via fax or . Page 5 of 49

6 Payment Methods The acceptable payment methods are different depending on account payment terms. The different payment terms consist of C.I.A., C.O.D. 1, C.O.D. 2, and Net C.I.A. Limited Payment Methods Accepted C.I.A accounts require 100% deposit up front with payment by a. Credit Card b. Cashier s Check c. Money Order d. Other payment methods other than the types listed above are not acceptable for C.I.A. orders. 2. C.O.D. 1 Limited Payment Methods Accepted C.O.D.1 account requires 50% deposit on all orders prior to manufacturing. C.O.D balance must be paid upon will call or local delivery. Payment commitment is required prior to scheduling LTL shipping or installation appointment. The following limited payment methods are accepted: a. Credit Card b. Cashier s Check c. Money Order d. ACH check e. Payment with Credit Card will be subject to pre-authorization. Actual charge or cash payments will be processed at the date of installation or LTL shipping. 3. C.O.D. 2 All Payment Methods Accepted C.O.D. 2 accounts require 50% deposit on all orders prior to manufacturing. C.O.D balance must be paid upon will call or local delivery. Payment commitment is required prior to scheduling LTL shipping or installation appointment. The following payment methods are accepted: a. Credit Card b. Cashier s Check c. Money Order d. ACH Check f. Personal Check g. Company Check h. Actual charge or cash payments will be processed at the date of installation or LTL shipping. Page 6 of 49

7 Net 15 All Payment Methods Accepted Net 15 accounts require 50% deposit on all orders prior to manufacturing and balance payment within 15 days of invoice date with Credit Card Cashier s Check Money Order ACH Check Personal Check Company Check Any non-sufficient fund (NSF) returned check will result a $25 NSF fee and the payment terms will be changed to C.I.A. Customers must provide correct account information for ACH checks processing. For any fees that result from wrong account information, there will be an additional $25 processing fee charged to your account. Revision/Cancellation Policy We will be implementing a significant change to our current Remake / Revision Policy. Starting Monday, Sept. 8, we will no longer allow for any remake or revision requests if: 1. We will not longer do remakes or revisions after deposits are paid for those accounts that require deposit. 2. We will no longer do remakes or revisions after orders are confirmed fort hose accounts that DO NOT require deposit. If a customer asks you to check whether materials have been cut --always answer with: Let me check...yes-materials have been cut and the order is on the production floor so we cannot allow any cancellations or changes. At this point, we can only offer you a remake with 10% discount. The policy and standard response above will apply to all new customers. For those older accounts that know we used to do change order requests even when the order is in the production floor, the standard response is: We have recently changed our manufacturing process to speed up our delivery lead time so we can no longer do change order or cancellations once the deposit is paid and the order is released to the production floor New Change order / Cancellation Fee Orders that are confirmed but still do not have a deposit can still be cancelled or have changes made. Our new change order and cancellation fee will now be $75 for any requests that will take Page 7 of 49

8 more than 20 mins to process. Please note that all accounts that do not require deposits WILL NOT BE ABLE TO CHANGE OR CANCEL THEIR ORDERS ONCE CONFIRMED. ** Ok to waive for good customers or new customers as long as we did not incur any material costs/ waste (i.e. we did not cut any materials), please get approval for the waivers. In order to expedite your production and delivery lead time, Sunland will no longer be able to accommodate change order or cancellation requests once the deposit has been placed on an order (because once the deposit is placed, the order will now immediately be released to the production floor and there will be no lag time that would allow for order changes / cancellations). Orders can only be cancelled or changed prior to placing deposits -a new lower administrative charge of $75 will be applied for such requests. For those customers with no-deposit or weekly deposit requirements (credit score with personal guarantee required); your orders can not be changed or cancelled once the order is confirmed in the system (orders will automatically be released to production once order is confirmed). Any changes or modifications to an order or request must be in writing and faxed to Sunland Shutters. Sunland Shutters will not accept any oral or verbal changes or modifications to an order. Changes or modifications to an order will only be accepted before the production of the order commences. A $75 fee will be applied for any changes or modifications made to an order after the Sales Order is created and before the commencement of production of the order. As all orders are custom made to the specific requirements of the Customer, the cancellation of any order, where the deposit has not yet been paid is subject to a $75 cancellation fee for each cancelled order, provided, however, that written cancellation is received by Sunland Shutters before production of the order commences. If production of the order has commenced, Customer shall remain liable for payment of the cancelled order in full. All deposits are non-refundable. Cancellations are required in writing and must be faxed to Sunland Shutters. As all orders are custom made to the specific requirements of the Customer, the cancellation of any order requiring a deposit will not terminate Customer s obligation to Sunland Shutters and Customer shall remain liable for payment of the cancelled order in full. Revision Fee Guideline We only charge our $75 revision fees ONLY when there are substantial changes / revisions that require a significant amount of a designer s time or production labor s time to change. In general, I do not want us to charge any revision fees when: 1. No materials were used or lost due to the change order / revision 2. On revisions that take less than 20 mins to complete --i.e. change shipping method requests, etc. Page 8 of 49

9 Cancellation Fee Guideline Generally, if we have not wasted materials, gas (i.e. we sent an installer to pick up the job) or a lot of time (an hour of a dmin work is not that much time), we should not charge the cancellation or change order fee. Shipping/Freight Policy Sunland Shutters offers local delivery in limited areas via its own trucks. All other deliveries will be made via motor freight. Please check with your sales representatives for the delivery rates. Sunland Shutters does not personally deliver to the end user s home due to liability concerns. Sunland Shutters ship shutters outside the limited areas described above by motor freight due to UPS size and package limitation. Please check with your sales representatives for the delivery rates. Orders with a C.O.D. balance require payment commitment prior to scheduling delivery with motor freight carrier. Payment will be processed on the date order ships out. Special Delivery/Service Surcharges via Motor Freight may consist of the following: 1. * Residential fees via motor freight: $65 fee waived for Re-delivery fees via motor freight: $72 3. * Lift gate delivery required via motor freight: $65 free waived for * Notification of delivery via motor freight: $35 fee waived for Re-route Fee If a Customer requests a shipment to be re-routed to another location this will result in a re-route fee of $75 plus additional freight charge 6. Storage Fee If a Customer requests that a carrier hold their shipment, this would result in a storage fee. The amount of the surcharge would depend on the length of time the shipment is held * Deliveries to the following states do not qualify for waived fees and will be charged: AK, CT, DE, HI, MA, MD, ME, MT, NH, NJ, NY, PA, RI, VT, WV, WY Special Delivery/Service Surcharges via Sunland Local Delivery may consist of Re-delivery or re-route fee of $50 per trip. Storage and Disposal Fees Storage Fee If the finished product is not picked up within 3 weeks from the ready date, 5% storage fee of the total invoice amount will be applied. 5% storage fee will be charged to customer s invoice every 3 weeks. Page 9 of 49

10 Disposal Fee If the product is not picked up within 8 weeks from the ready date, the product will be disposed at Customer s expense ($150) and the Customer is responsible for the full invoice amount. Shortage, Damage and Non-conforming Merchandise All shipments must be checked carefully for damage and piece count upon receipt. Shortage or damages on motor freight shipments are recipient s responsibility. If packages are damaged due to the shipment, refuse the damaged package. Sunland Shutters will file claims for all refused shipments. If damaged packages are accepted, carrier must be notified for an immediate inspection. It is imperative to keep all cartons and packaging material in which the order was shipped until after carrier inspection. Any shortage or damage must be noted on the bill of lading before signing. In any claim of shortage, damage, and non-conforming merchandise, Customer must contact Sunland Shutters customer services for a Material Return Authorization(MRA) number and further instruction. Do not install damaged or incorrect shutters. Sunland Shutters will not honor any damaged or incorrect claims once the product is installed. If Sunland Shutters is not notified of any damaged or missing boxes within 7 days of delivered shipment, the Customer assumes all responsibility for any replacement. Remake/Repair Claims & Policies Do not install damaged or incorrect shutters. Sunland will not honor any damaged or incorrect claims once the product is installed. Sunland Shutters will repair or replace, at its sole discretion, the defective components. Sunland Shutters reserves the right to call back the original items for inspection. Sunland Shutters reserves the right to decide how the product will be remade or repaired. Returning shutters without Material Return Authorization (MRA) number will be rejected and returned at Customer s cost. The standard lead-time of remakes or repairs for Polycore is one week. The lead-time for basic repairs for Lexwood is one week and six weeks for remakes. Customer is responsible for the shipping freight when the remake/repair is due to Customer s fault. Material Return Authorization (MRA) Number: Material return authorization number can be obtained via local branch customer service or call (dial Option 1 for Customer Service). Sunland Shutters customer services agents will immediately issue a MRA number for your reference and future correspondence and respond within 2 working days with a case status. Page 10 of 49

11 Claim Supporting Documentation: Claim cases require claim statement from the Customer,digital pictures to support the claim statement and signed off POD (proof of delivery) by customer. For Sunland Staff, return shutters will always need Sunland Return Repair Sheet Form Open Claim Validation: Open claim without Customer response will be closed after 1 month of the initial file date. Further claim on the same issue and opening will not be processed. Full Service Installation Program To initiate an order with installation, the Customer must completely fill out a Measure Request form, sign, and submit by fax to the respective Sunland Shutters branch. Sunland Shutters is not required to select frame, color, louver size or any other cosmetic detail with the end user. The Customer may be responsible for additional costs associated with additional consultation requirements when aforementioned details are not indicated on the measure form. Sunland Shutters employees are responsible for product measurements, panel configurations, and ensuring that the order is placed within the parameters defined by the engineering specifications. Sunland Shutters will confirm the details of the order with the end user at the time of the measure if the Customer is not present, and may suggest any changes needed if the selected options will not function properly. The finalized order form will be faxed to the Customer for their authorization signature. Upon receipt of a Sales Order Confirmation, the Customer is responsible for submitting a 50% deposit to start the manufacturing process. Order confirmations are sent via fax or . If the Customer does not elect to receive billing information by , confirmations will be sent by fax. Therefore, if the Customer does not have a dedicated fax line, there may be a delay in receipt of confirmations. C.O.D balance of an installation order requires a payment commitment to be made prior to scheduling the installation appointment with end user. The payment commitment can be made according to the payment terms listed in the Payment Method section of this Master Sales Agreement and Policy Statement. Installation order C.O.D.2 balance payment commitment made by check -Sunland Shutters must receive the check prior to installation appointment scheduling. Installation order C.O.D. 1 or C.O.D. 2 balance payment commitment made by ACH check ACH check payments must be received by Sunland Shutters prior to installation appointment scheduling and will be processed on the day of the installation. Installation order C.O.D. balance commitment made by Credit Card -C.O.D. 1 orders is subject to a Credit Card pre-authorization approval to installation appointment scheduling. C.O.D. 2 orders must submit credit card information prior to installation appointment scheduling. C.O.D. Balance for installation order will be charged on the day of the installation. Page 11 of 49

12 The end user or Customer must be present to acknowledge the condition of the shutters as installed and must acknowledge the installation completion by written acknowledgement. Any measured request doesn t turn into an order, a minimum $75 measurement fee will be charged to dealer s account. Self-Measured Installation Program Sunland s Self-Measure Installation Program is strictly limited to customers who attend our Dealer Training Seminars and receive qualification for self-measuring by one of our in-house installers / trainers executives. A qualified self-measure customer may place self-measured installation orders with Sunland Shutters via our online web order system only. Sunland Shutters will not be responsible for our customer s design errors, order errors, measure errors or any other errors created by our customers. All of Sunland s other policies and regulations pertaining to our full service turnkey installation will fully apply to our self-measure installation orders. Waiver of Liability on Inside and Semi-Inside Mount Applications Inside or semi-inside mount frames may hinder the removal of windows or interior screens for cleaning and maintenance purposes. The retailer has the responsibility to disclose these limitations to the end user at the time of sale and waives Sunland Shutters of any liabilities if the inside / semi-inside mount application is deemed unacceptable to the end-user after installation (in regardless of whether measure and installation was provided the retailer or through Sunland s turnkey program). Page 12 of 49

13 Specialty Shutter Template Requirement Specialty order with template requirement will have two weeks extended lead-time from normal leadtime. All arch top shutter order without template will be manufactured as half circle or continuous slope. If the arch shutter ordered is not a half circle or continuous slope, Cutout template is required for manufacturing purpose. Two templates are recommended, one for Sunland Shutters and one for the dealer s records. Marked lines on templates are not acceptable to avoid mis-line determination only cutout templates should be sent. All orders that require a template must MAILED IN with the order form (via UPSP or UPS or Fed Ex) for that opening with the template attached. Sunland Shutters will not accept any order for openings requiring a template via online order or fax order. Orders that have openings requiring templates that ENTIRE order should be submitted via PHYSICAL MAIL along with the associated templates. Order where only 1 or 2 openings require templates -the openings that DO NOT require templates should be submitted online or via fax. The 1 or 2 openings requiring templates should be submitted via PHYSICAL MAIL. Please make sure the side mark is the same on both submissions. Mail Instruction Sunland Shutters 5855 Obispo Ave. Long Beach, CA Attention Design Template Page 13 of 49

14 Claim Policy All claims require MRA (Material Return Authorization) case number and Return/Repair Sheet if defective product ought to be returned for inspection. Return/Repair Sheet with a MRA number is required at the time of the pick-up/drop-off. This Return/Repair sheet should be attached to the return products. Sunland Shutters reserve the right to reject process claim or return product without above required information. If it s clear cut customers fault, please don t open MR, please advise customer for 10% remade or Sunland can repair with a reasonable fee. Claim Procedure Contact Local Sunland Shutters office or corporate office. MRA number can be generated from any Sunland Shutters Office or Corporate, SUN-LAND. Corporate office is available to take claim from 6:30 am to 5:00 pm PST. MRA Claim number will be given to the customer to identify the claim, MRXXXXX. It is very important to educate the customer to refer MRA number for claim follow-up. Review/Authorization Once a MRA case is generated, it will be reviewed and decision will be made toward the particular claim. The decision might include follows: Approve for Repair Approve for Remake Approve for Credit with Credit Memo Approve for Credit with Credit Coupon Decline Authorizers for MRA Claims Central -Invoice starts with H MRA Authorizer: Jorge Bernal and Evelyn Lin MRA Inspector: Jorge Bernal MRA Monitor: Evelyn Lin MRA Repair/Remake Paperwork: Enchi Chen East Coast -Invoice starts with T MRA Authorizer and inspector: Anthony La Ferrera MRA Repair/Remake Paperwork: Brandon Liao Other Regions MRA Authorizer: Enchi Chen, Judy Wang, and Dean Crumrine MRA Inspectors: Dean Crumrine and Jose Olivas MRA Monitor: Judy Wang MRA Return/Remake Paperwork: Enchi Chen Page 14 of 49

15 Branch and Satellites Authorizer can only authorize orders fabricated in China and Taiwan for Simple Repair only. Simple repair policy is to provide a better service on repair turnaround time for all regions. Branch and Satellite Authorizers are prohibited to authorize decisions for Remake or Repair over $300. The authorization capability is $300. Customer paid Repair and remake paperwork will be prepared by Enchi Chen and Brandon Liao. All Freight Claims after approval passes to Evelyn Lin to file claim with Freight Companies and following up. Over limit MRA authorization: Johnny Hsieh, i.e. MRA claim case passes to Judy Wang for review and approval. Authorizer Guidelines Claim must have pictures as supporting document if the material is not going to be returned for inspection, or customer ask immediate replacement w/o product returned yet. Absolutely no trip charge credit coupons will be given going forwards If we took a shutter back on a problem job and we did a satisfactory repair or a remake, we will not offer any credit coupons going forwards. Even such repairs/remakes will result in that job not meeting our normal lead times but we DO NOT GUARANTEE LEAD TIMES -we only guarantee that we will fix any problem jobs in a timely fashion. We may offer coupons in those situations where a dealer fixed the problems themselves (i.e. like ROYASA in San Antonio) and they did not have to send the job back to our facilities for repairs/remakes. We will NEVER make special accommodations on credit coupon usage-do not even ask please and Operations should never authorize. If operations ever run into problem cases, refer them to their sales rep. Sales can never ask operations to unblock an account (on A/R block) or rush jobs for certain customers without Johnny Hsieh s approval -production has a set schedule and sales cannot constantly throw curve balls into their production flow. Sales can never authorize MRAs or communicate accommodations to a customer without the MRA being approved -we have specific authorization requirements in Operations --if you communicate an accommodation without having a MRA approved, you will pay for the MRA out of your pocket. Prior to all evidence collected, if customers ask immediate replacement, orders are subject to charge until evidence is provided to offset the charge. Return Policy Products can be return to closes TCI local branches by one of the following methods, and must have Sunland Return Repair Sheet Form: Drop-Off at Warehouse When drop off products, the Return/Repair Sheet must be filled out on site and given a copy to customer as receipt. Sunland Shutters will not be liable for any lost return product if customer can not provide the Return/Repair Sheet with TCI warehouse signature. Schedule a Pick-Up Page 15 of 49

16 TCI Truck Two Return/Repair Sheets will be given to the driver. Both copy needs to be signed by the Dealer and Driver. One copy should be given to the Dealer, and Sunland Shutters will achieve the other copy. Call Tag Call tag can be arranged by Sunland Shutters to pick up defective product. This is only available for area outside of TCI truck service radius. In this case, the Return/Repair sheet needs to be submitted to Sunland Shutters prior call tag is issued. Simple Repair Policy Simple repair policy enable minor repair to take place prior MRA case is authorized. Minor repair consist of minimal replacement parts due to scratch, dent, broken parts, and etc. Simple repair must be logged in detail under MRA case progress. The log must include picture of the damaged parts prior repair takes place, damaged parts replaced, labor spent, and other resource used to complete the repair. Repairs and Refinishing Policy 1. Wood shutters that are to be sent back to a Sunland facility for repairs MUST BE protected and wrapped before Sunland picks up on a TCI truck or the shutters are shipped back via LTL. Repair shipments sent back or picked up without necessary wrapping / protection will be rejected by Operations MRA authorizers (or we will refuse to pick up an unwrapped / unprotected shutter if the pickup is made by TCI truck). 2. When replacement louvers are needed we MUST have a broken louver to be returned to Sunland for color match (or else we simply will not accommodate -be clear on why we need a piece of the broken louver to make sure the replacement louvers match perfectly or else there is a high chance the MRA process will go on forever). 3. In the case of a serious repair where the panel will need to be repainted, please make sure we check whether the panel is part of a two panel opening --if it is part of a two panel opening, BOTH PANELS must be returned to Sunland so we can ensure color match and do it right-we can not and will not refinish only one panel in a two panel opening because there is a high risk that one of the panels will have a slight color shade different and/or a texture feel difference (since only one was refinished). In the case where one panel out of a two panel opening needs a complete remake, we would need to make sure that we have the broken or defective panel back to our warehouse before we start the remake so we can ensure color match. We will not start the remake until we have something (even if it s a piece of louver) from the old panel to ensure color match. Page 16 of 49

17 Remake Policy Fault at Sunland Shutters MRA case needs to be approved by Johnny Hsieh prior any remake can be processed as fault at Sunland Shutters. These errors might include one of the follows: Designer Error: This type of error needs to be verified by Design Supervisor. Production Error: This type of error needs to be clearly described. Picture is mandatory to be attached with the MRA case, either provided by customer or Sunland Warehouse. If product is return to one of the TCI facilities, the return product needs to be inspected by warehouse manager. Shipping Damage: Freight claim must be filed with this type of damage. Pictures of the damages and damage description on Proof of Delivery will help expediting the freight claim process. System Error: This type of error will be informed to IT. Once a MRA case determines to be fault at Sunland Shutters, the remake will be processed domestically from one of the closest branch offices. Fault at Dealer A 50% deposit on all remakes or repairs that require a labor or materials charge (customers can choose to pay everything up front to eliminate the hassle of having to submit payment twice for a small repair).if the total remake/repair invoice is below $200, the deposit process will be void. The deposit policy will follow the type of credit term that the customer account currently has --i.e. if an account is weekly or no deposit (usually out bigger customers), then the account will also have no deposit requirements for any repair work done. If a customer is on regular 50% deposit (except remake/repair invoice less than $200), then they need to pay at least 50% before we will begin on the repair work (again --this is just for charged repairs/remakes--i.e. repair/remake is due to customer error and not Sunland error). The deposit policy mimics our orders policy --we start production only after receiving the deposit. We need to implement this issue because we have been very inconsistent with deposit requirements on repairs (since repair charges can vary from a few dollars to hundreds of dollars).we also have had situations where a customer would refuse to pay for a repair after getting the bill because they said our repair charges are too high --having a deposit requirement forces the customer to acknowledge the repair charges required up front. Page 17 of 49

18 We will allow Parts Orders (NO DESIGN WORK REQUIRED)to be billed according to the customer terms (i.e. if a customer is Net 15, then they will be billed Net 15 but if its COD, then they will pay upon delivery / pick up/ shipping). No Deposits Required on Parts orders. Dealer can request a remake due to dealer s measure or ordering error. The remake order can be priced with one of the two options below: Express Remake via one of the branch locations Express remake is done domestically and will be price out of dealer s domestic price tier with 10% discount. The express price tier listed below is applicable for all regions throughout US. Express Polycore A Tier -$14.25/sq-ft B Tier -$14.75/sq-ft C Tier -$15.75/sq-ft Express Lexwood A Tier -$16.25/sq-ft B Tier -$16.75/sq-ft C Tier -$17.75/sq-ft Regular Remake Regular remake is manufactured by oversea facilities with normal lead-time. This option is also available for the 10% discount off the regular product tier price. The 10% courtesy discount will not automatically apply to the sales order. The customer is liable for informing and following up with remake order prices. Additional discount will not be granted without approval from Johnny Hsieh. ** Please get approval for domestic remake, as we no longer do domestic production. Page 18 of 49

19 Return Repair Policy Customer Guideline Sunland dealers please note the Repairs Remake policy 1. Sunland will NOT ACCEPT a repair without a Sunland Company MRA. A MRA number must be attached to all repairs picked up, dropped off or shipped back to a Sunland repair facility. The MRA number must be marked on the outside of the product and return products need to be packaged correctly to prevent damage. 2. When a shutter is received with damage the Sunland dealer has 7 working days to report the damage to Sunland. 3. All shutters containing louver damages will need a piece of the broken louver sent back to Sunland for correct color match. Failure to do so will result in no replacement provided by Sunland. Color match is extremely important. 4. Shutters are considered fine furniture for windows and with any wood product some damage may occur during shipping. Sunland would like the dealer installer to repair small clips and dings at job sites. The Sunland dealers should make sure the installer is capable of properly installing and repairing small cosmetic issues at the job site. Sunland cannot be held responsible for small clips and dings due to freight damage. Sunland can provide a brief repair procedure to your capable installer. This will allow quick repairs to be done at the job site allowing the Sunland dealer to get fully paid from the consumer quickly. 5. When a remake is needed the dealer must report to Sunland within 7 days except where a special situation has arisen. A Sunland dealer must also record a MRA with Sunland either by the Sunland Web Site or by calling Sunland directly. Pictures must be provided for any remake required. Without all of the above Sunland will not be able to provide a remake. Sunland Shutters prides itself on an outstanding finish and fine craftsmanship. A Sunland dealer should provide a level of service to their consumer. By enhancing the consumers experience assures a quick and quality product. Sunland Shutters hold the rights to repair any shutter provide to a Sunland dealer. Page 19 of 49

20 Sample Policy Samples cannot be dropped off to the customer without processing the paper work with the operations office first. Fail to follow the proper procedures and give an account a sample bag that have not been properly checked out of inventory, then the sales will be accountable for the cost of sample. The cost of the sample will be paid by the sales or deducted from his/her paycheck. Sample Procedure: Submit the order with the official sample order form Turn it into corporate office and attention to Wanda Weaver Check out the samples out from local branch office through an operations personal with a Sales order number as reference. Check out by Sales Sales sign the Ok data packing list upon pick up the requested samples out of inventory. The operation officer will accept the signature and released the samples. This particular sales order must be marked as shipped and invoiced once the samples been released. Check out by Dealer Dealer signed the packing list/sales order. Operation office will mark the order shipped and invoice the sample order. Sample Rules: Do Not give Sample Bag to potential customers who doesn t have a Sunland Shutters account code Do Not give lend Sample Bag to the customer Do Not give samples and sample bags away without approval Do Not give sample and sample bags first and then try to backfill the paperwork Page 20 of 49

21 $ $ Sample Request Procedure Invoice (SSAMPL) $ Inform Office Sample Request Issue Sales Order (SSAMPL) Issue Sales Order (Customer Code) Send to Office Pick Up Samples Customer Purchase Samples Issue Invoice To Customer Salesman submits the sample request to office. A sales order will be issued under SSAMPL account and side mark is salesman ID (i.e. AZ, RZ, or etc.). Invoice the sales order when samples are picked from the warehouse to maintain correct inventory count. Salesman informs the office to issue a sales order on customer s account when samples are sold to customer. Sales order will be issue under customer s account with item code Parts and overwriting item description and price sold to customer. Invoice will be issued for customer to pay. If the sample is given as free sample, the sample procedure still needs to take place. The sales order and invoice under customer s account will be $0. Please all sample sales is required to add sales/used tax, as the sample will not be resale to customer, Sunland Shutter is liable of collecting sales/used tax. For sample sales shipping out of state where doesn t have a TCI facility, sales/used tax may be omit from this transaction. Will call Sales Tax is the local TCI location sales tax TCI delivery or other delivery Sales Tax is the destination location s county Sales Tax Out of state sales Exempt from collecting Sales Tax For California: For Texas: For Florida: Florida s general sales tax rate is 6% Page 21 of 49

22 Sample Item List Sample items must be entered accordingly on the sales order and transfer transactions with accurate vendor code and bundle number. Fail to apply accurate item code, vendor code, or bundle number will result a negative inventory in the system. Item Code Vendor Code Item Description Bundle # PCSAMPLEPANEL TC PC Sample Panel Large Z Frame PCSAMPLEPANELMZ TC PC Sample Panel malibu Z Frame PCCOLORPACK TC PC Color Deck PCFRAMEPACK TC PC Color Deck PCSAMPLEBAG PC Sample Bag PCSAMPLEBAG PC Sample Bag - Black, No Logo WDB PCSAMPLEKIT Loaded Sample Bag PCSAMPLEVER TC Vertical Sample Panel PCCASE TC Single Panel Brown Bag PCBOX TC Presentation Box WDSAMPLEPANEL HH Premium White Panel Only WDSAMPLEPANELFJ HH Advantage White Panel Only WDSAMPLEPANELFJ HH Advantage White with Deco Frame DF WDSAMPLEPANELMZ HH Premium White with Malibu Frame WDSAMPLEPANELMZ HH Plus White with Malibu Frame PLUS WDSAMPLEPANELMZ HH Premium Stain with Malibu Frame ST605 WDSAMPLEPANELLZ HH Premium White with Large Z Frame WDFRAMEPACK HH Wood Frame Pack WDFRAMEPACK HH Wood Frame Pack with Deco Frame DF WDATLFRAMEPACK HH Wood Frame with East Coast Frame WDLOUVERPACK HH Louver sample with WH, ST, DS WDCOLORPACK20 HH 20 Whites in fan deck WDCOLORPACK20 HH 20 Whites in fan deck no logo WD WDCOLORPACK20 HH 20 Stains in fan deck WDCOLORPACK20 HH 20 Stains in fan deck no logo WD WDDESIGNPACK Designer Series Deck WD3DF HH Deco Frame piece to add on deck PCS WDSHUTTERDISPLAY HH DISPLAY STAND LOADED WDBOX HH Presentation Box Page 22 of 49

23 Sample Pricing & Promotion Rebate request will only be process and accepted when the rebate form is filled out properly and invoice is paid in full. Rebates are given to customer with credit coupons. Rebate Requirements Sample Purchase Invoice must pay in full Rebate form must be filled out properly and submitted to Headquarter Credit Coupon Rules Credit Coupons are only applicable for orders over 75 sq-ft **exception: if one needs to ask for 50 sq-ft minimum, need to get approval. Double Coupon is prohibited Coupons have no expiration date Coupon codes must be provided at time of order and cannot apply on exiting SO or Invoices. Promotion New or reactive account, once purchase over 250 sq-ft, will be eligible to receive $100 in coupon ($50 increment, 2 x $50) with rebate requests. Sample bag: New account can qualify 1 sample bag rebate at fully bought price in coupons ($50 increment)upon rebate request. Presentation box: New or reactive account can qualify 1 presentation box rebate at fully bought price in coupon (2 x $ x $25) once they order at least 400 sq-ft upon rebate request; please note, new account has to choose either or between sample bag or presentation box. Sample Bags -- Old Design Retail Price: $100 excludes shipping and handling fee Rebate: New account, if buy over 250 sq-ft, can get rebate back for 1st sample bag purchased. Limitation: New customers only Only first one sample bag. Cannot be combined with presentation box promotion. Coupons are in $50 increment (2 x $50) Exceptions Exceptions can only be pre-approved by Johnny Hsieh Presentation Box Polycore Presentation Box: $125 Lexwood Presentation Box: $125 Page 23 of 49

24 Rebate: For new or reactive account, once they bought over 400 sq-ft, they can get credit coupon soon their 1st presentation box purchased. Limitation: Both new and reactive account can be qualified; if it s new account, can only choose either sample bag rebate after 250 sq-ft purchase or presentation box rebate after 400 sq-ft, cannot qualify both. This offer cannot be combined with old sample bag coupon rebate. Coupons in 2 x $ x $25 upon rebate request. Sample Panel Set 1 standard sample panel for $75 with carrying cases If purchase the Sample Panel Set with a Presentation Box, $25/set. Sample Dealer also has the option of purchasing individual sample components/panels from the most up to date Sample Order form. For a new Dealer s first order, it is qualified for a $50 rebate off the sample order form purchase with a $50 credit coupon. The rebate up to $50 is given only on the first order, i.e. dealer cannot split the $50 rebate into two separate orders. All future sample purchase off the standard order form will be charged in full. Show Room Custom Display Shutters Price: Account Product Tier Unit Price Rebate: No Rebate Loaded Display Stands Price: $500 Limitation: No Purchase Limitation Custom Display Stands Price: $700 Limitation: No Purchase Limitation Page 24 of 49

25 Personal Use Shutters Price: Account Product Tier Unit Price Rebate: No Rebate Marketing Materials Pamphlets, tri-fold brochures, etc: OK to give away each time (esp. on the cheaper tri-fold brochures) to good customers who ask for them instead of charging them. Still need to do sales order to keep track whom/how much we give out. Page 25 of 49

26 Installation Standard Operation Procedure Full Service Installation Full service installation is available for Southern California, Texas, and Florida customers. Full service installation service consists of below steps 1. Dealer submits Measure Request 2. Sunland Shutters Schedules Re-Measurement with End User 3. Sunland Shutters Re-Measure and fill out Order Form 4. Dealer Sign the order form as Order Confirmation 5. Order submits to Design Department 6. 50% deposit after receive the Sales Order Confirmation 7. Order Production 8. Sunland Shutters Schedules Installation Appointment with End User 9. Installation takes place and completed with a sign off sheet 10. Invoice Measure Request Sunland Shutters Measure Request Form A process manager measurement case must be generated when a measure request is received in regardless the measure request form is complete or incomplete. The request form needs to be scanned and attached to the case. The measure case will pass to Installation Coordinator. Customer must complete the Sunland Shutters measure request form prior the request is eligible for scheduling re-measure. If the measure request form is incomplete, the following up note must be logged on the Process Manager case memo to avoid future re-measure or other process delay complains from customer. Scan and attach completed Sunland Shutters measure request form to process manager case memo. Key point: Measure Process Manger Case Number, Measure Request Form Completed and Scanned, Log Case Memo Scheduling Re-measure Installation coordinators must attempt to contact end user for re-measure appointment within 1 working day after dealer submitted the completed Sunland Shutters measure request form. The coordination must be log the progress on process manager including the appointment time and date. Again, this is to avoid future re-measure or other process delay complains from customer. Key point: 1 working day, Log Case Memo Re-measure Page 26 of 49

27 Re-measure personnel must complete the Sunland Shutters order form with the re-measurement for customer to approve. The order form must be submitted to regional installation coordinator no later than 1 working day after the re-measure appointment. It is re-measure personnel s responsibility to fill out the order completely and submitted within the sufficient time frame. Key point: Complete and Submit order form, 1 working day Order Confirmation Installation coordinator will fax the completed order form to the customer for approval by signature on the order form. The approved order form with process manager case number has to submit to headquarter for design. Approved order form needs to be scanned and attached on the process manager. The fax number is Key point: Approve order form, Enclose process manager case number on order form Design The designer will contact with the re-measure personnel if there is question regards to the order. The designer should not call the customer regards to the full service installation orders. The question should always address to local branch or re-measure personnel. Key point: Contact re-measures personnel for question Deposit and Production This operating process is no different than other orders. Orders can only be released for production with 50% deposit except for weekly deposit customers, no deposit customers, or remake due to Sunland Shutters error. Scheduling Installation The installation scheduling has to be maintained on TBS Assign Installer function under Shutter Query. The installation scheduling is done upon receiving/finish-in destination shipping warehouse. Installation coordinator has to attempt the installation scheduling with end user within 5 working days after order is in stock, except for C.O.D. orders without payment commitment. For C.O.D customers, the payment commitment can be submitted prior order is in stock. Installation scheduling can not be attempted on C.O.D. orders prior there is a payment commitment with customer. Key point: 5 working days, C.O.D payment commitment Page 27 of 49

28 Installation Installer will pick up the installation orders from warehouse according to the installation schedule report on TBS installation orders cannot be checked out by installer prior installation date. Orders must be marked shipped when the installer picks up the order from warehouse. The order status will be maintained as installed and invoiced when the installer return the installation sign off sheet. Documentations require for installation orders: TBS installation schedule Okidata sheet Sign by installer when pick up the orders from warehouse. Installation sign off sheet This is printed from TBS with corporate standard format with end user signature. If check is picked up for customer, the check must be turn into office at the same day or latest by next day. The installation sign off sheet will indicate whether this customer is eligible for check pick up. Installer must double check that information prior take the check from end user. The installer must note clearly on the sign off sheet if this job needs further repair or remake. This repair/remake/additional service notation column is located at the bottom of the sign off sheet. A MRA case will be created by the installation coordinator according to the installer comment. Key point: Installation Schedule Sheet, Sign off sheet, Okidata sheet, Maintain shipping status, Maintain installation status. Invoice Invoice should proceed in regardless the installation is complete or incomplete. If the order is complete, C.O.D. order will be charged according to payment commitment. If the order is incomplete, a MRA case will be generated and payment commitment will not be applied prior order is completed. For net customers, the invoice due date will be recalculated upon MRA case closure/order completion. Self-Measured Installation Service Self-Measured installation service is only available for pre-qualify customers and may only place order online. Self-Measured installation service consist of below steps Dealer confirm the quotation online Order submits to Design Department 50% deposit after receive the Sales Order Confirmation Page 28 of 49

29 Order Production Sunland Shutters Schedules Installation Appointment with End User Installation takes place and completed with a sign off sheet Invoice The standard operating procedures for self-measured installation service is identical to full service installation service expect for design. If the designer has a question on a self-measured installation order, the designer should contact the customer instead of local branch or measure personnel. Regional Installation Program Coordinator 1. Long Beach and Temecula Elizabeth Finch 2. Austin Nick Free 3. San Antonio - Charles DeLuna 4. Houston Brooke Mladenka 5. Dallas - Paula Barton 6. Boynton Beach - Genevieve LaFerrera Installation Surcharges Surcharge also listed on the Measure Request Form Top Right Corner Tall Ladder Required - $35/opening High-rise Buildings require elevator equipment - $100/order Existing Window Covering removal and disposal - $15/opening Existing shutter removal - $30/opening + sign waiver Moving furniture for installation purpose - $15/opening Measurement fee - $75 if no order is submit after measurement Process Manager Measure Case Attachment Original Measure Request Form in regardless complete or incomplete If the Original Measure request form is incomplete, scan completed copy when available Order form with customer s signature Service Radius and Minimum Sq-Ft Requirement Service Radius < 100 miles from TCI Location, minimum Sq-Ft is 75 Service Radius < 150 miles from TCI Location, minimum Sq-Ft is 100 Service Radius >150 miles from TCI Location, Service is not available Page 29 of 49

30 Installation Program Instruction to Customer Sunland Shutters provides installation service to certain regions of the nation Southern California, Texas, and Florida. The program is available for Full Service Installation or Self-Measure Installation. Program participation details and instructions are detailed below. Full Service Installation Sunland Shutters Full Service Installation program consist of the measuring and installation. The Full Service Installation Service consists of the steps below: Dealer submits Measure Request The request form can be downloaded at under the order form tab. The Measure Request Form needs to be completed and signed before the re-measure can take place. Please make sure the product specifications, i.e. frame type, louver sizes, color selection, panel configuration, and etc. are filled in completed on the measure request form. Any incomplete measure request form will be returned to the dealer for resubmission. Sunland Shutters is not responsible for making the production specification selection for the dealer or end user. Local Installation Branch Office Contacts: Location Address Phone / Fax Local Contact / Southern California 5855 Obispo Avenue, Long Beach, CA Fax Elizabeth Finch elizabeth_finch@tachen.com Houston 9525 Wallisville Road, Houston, TX Dallas E. Northwest Highway Suite 400, Dallas, TX Austin 8222 North Lamar Blvd., Suite F53-F54, Austin, TX San Antonio 6864 Alamo Downs Parkway, San Antonio, TX Boynton Beach 120 Commerce Road, Suite A, Boynton Beach, FL Fax Fax Fax Fax Fax Brooke Mladenka brooke_mladenka@tachen.com Paula Barton paula_barton@tachen.com Nick Free nick_free@tachen.com Charles DeLuna charles_deluna@tachen.com Genevieve LaFerrera genevieve_laferrera@tachen.com Page 30 of 49

31 Sunland Shutters Schedules Re-Measurement with End User End User will be contacted for re-measure appointment on the same or next business day the COMPLTETED measure requested is received. Sunland Shutters Re-Measure and fill out Order Form Order form will be faxed to dealer for consent on next business day of re-measure. Re-measure will take place within 3 workings days after receiving the requested if end user is available. Sunland Shutters employees are responsible for product measurements, panel configurations, and ensuring that the order is placed within the parameters defined by the engineering specifications. Sunland Shutters will confirm the details of the order with the end user at the time of the measure if the Customer is not present, and may suggest any changes needed if the selected options will not function properly. Any changes or required build out materials will be noted on the order form. Dealer Sign the order form as Order Confirmation The order confirmation needs to be faxed to your local Sunland Shutters office after sign the signed order form is received as authorization to proceed with order design. Order submits to Design Department 50% deposit after receipt of the Sales Order Confirmation per Dealer Terms Sales order confirmation will be sent via or fax. If the Customer does not elect to receive billing information by , confirmations will be sent by fax. Delay in receipt of sales order may occur if deposit consent accounts don t have dedicated fax line. Additional costs associate with additional consultation requirements when aforementioned details are not indicated on the measure form. California orders will have sales tax applied to the Shutter Price, excluding the installation charge (labor). When we sell both the shutters and installation, we become the Retailer of Record and we become the responsible party for the sales tax. Any additional sales tax specifically charged to the consumer by the retailer will be the responsibility of the retailer and must be paid directly to the State Board of Equalization. For detail, please refer to Appendix 1 for California State Board of Equalization Construction Contractor Law. 1. Order Production 2. Sunland Shutters Schedules Installation Appointment with End User Sunland Shutters installation scheduler will contact the End User for installation appointment within one to two working days after receive of the order in the shipping warehouse. C.O.D balance of an installation order requires a payment commitment to be made prior to scheduling the installation appointment with end user. The payment commitment can be made according to the payment terms listed in the Payment Methods section of this Master Sales Agreement and Policy Statement. Page 31 of 49

32 Installation takes place and completed with a sign off sheet. If issues arise with an installation order, Installer will initiate a reference number to follow up the incomplete installation. Invoice Self-Measured Installation Program Sunland s Self-Measure Installation Program is strictly limited to customers who attend our Dealer Training Seminars and receive qualification for self-measuring by one of our in-house installers / trainers executives. A qualified self-measure customer may place self-measured installation orders with Sunland Shutters via our online web order system only. Sunland Shutters will not be responsible for our customer s design errors, order errors, measure errors or any other errors created by our customers. All of Sunland s other policies and regulations pertaining to our full service turnkey installation will fully apply to self-measure installation orders. Self-Measure Orders must be submit via web order system and will receive a $0.25/sq-ft discount on the installation charge. Installation Surcharges Surcharge also listed on the Measure Request Form Top Right Corner 1. Tall Ladder Required - $35/opening 2. High-rise Buildings require elevator equipment - $100/order 3. Existing Window Covering removal and disposal - $15/opening 4. Moving furniture for installation purpose - $15/opening 5. Measurement fee - $75 will be billed if no order is submit within 30 days after measurement 6. Existing Shutter removal - $30/opening + sign waiver Sales Tax Applied to California Installation Orders Please note, this law only applied to California customers. When construction contractors sell materials which they install, the sale of the materials is a retail sale. Consequently, there are no circumstances under which a construction contractor may accept a resale certificate from a prime contractor, interior decorator, department store, or others for materials which he furnishes and installs. Page 32 of 49

33 In reference to State Board of Equalization of California, Publishing # 9, Section 1521, on Page 9 - Quote Construction Contractors Use of Resale Certificates Under Regulation 1521, construction contractors are generally considered the consumer of materials which they furnish and install in the performance of a construction contract to improve real property. However, if the contract (other than a U.S. government contract) explicitly provides for transfer of title to the materials prior to installation, and the sales price of the materials is separately stated in the contract, the contractor will be deemed to be selling the materials. In addition, if a contractor bills their customer an amount for sales tax computed upon a marked up billing for materials under a time and material contract, it will be assumed that he or she is selling the materials. In general, construction contractors (other than U.S. construction contractors) are the retailers of fixtures which they furnish and install. However, in some instances a construction contractor may furnish and install a fixture for a person, other than the owner or lessor of the realty, who intends to lease the fixture in place as tangible personal property and pay tax measured by rental receipts. In this case the contractor may take a resale certificate from the lessor at the time of the transaction, and the sale to the lessor will be considered a sale for resale. Under no other circumstances may construction contractors accept resale certificates for fixtures which they furnish and install. Page 33 of 49

34 Account Receivable Policy Payment from Branch Please the daily branch check report to along with PDF copy of checks. To avoid any missing documents, please DO NOT fax in the check log to corporate nor checks (ACH Checks need to be log on daily check log and to corporate), please fax it to Please do not individual A/R rep. Account Status Issues When customer dispute payment and our sales do not respond on reasons below, A/R needs to block accounts and create a MRA case for Judy Wang that will be reviewed and approved by Johnny. Short pay Cancellation fee Restocking fee Revision fee Requesting Discount or Special Pricing NSF fee Other fee Please note that any short pay will result in immediate account block. Page 34 of 49

35 Expense Policy Travel Expense Policy Travel request needs to be submitted and approved by Johnny Hsieh or Ed Mitcher to qualify for travel expense reimbursement. Effective immediately, all Shutters and NASTA personnel who needs to travel, for the next 120 days (until June 1, 2009), we will limit travel meals to $20 / day in order to cut expenses. After June 1, 2009, travel meal limits will go back up to $40 / day for all Shutters and NASTA travel purposes. Terminate on 1/10/09 and replace with above new Policy: Sunland Personnel should not book any new airline flights until February 28, 2009 previously booked travel plans are ok but no more new airline bookings. All travel will be by car unless otherwise approved by Johnny Hiseh. Travel meal allowance will also be reduced to $35/day and no client entertainment expense will be allowed until February 28, Co-Worker Meal TCI employees will no longer be allowed to expense Co-Worker Meals (there really is no such expense category at other companies - Ta Chen is not responsible for meals between co-workers when no travel - travel defined as having to stay overnight at a location other than your home - is involved). Unless you are traveling, you cannot expense your meals - to be very clear - even when you are traveling, you can ONLY expense your own meals and not that of a co-worker who is not traveling (should you dine together - local employees always pay for their own meal expenses). If you decide to pay for a co-worker who is not traveling - this will be considered your personal expense that you decide to pay out of pocket. Unauthorized expenses on company credit card will result in the cancellation the card. **effect immediately, suspend this expense. Hotel Budget Travel overnight hotel budget is $150 per night maximum. Travel Meal Travel meal limitation is $60 per day maximum, i.e. including tips and taxes. Page 35 of 49

36 Travel meal breakdown is $15 for breakfast $15 for lunch $30 for dinner ** effect immediately, $20/day meal expense If you need a special expense, get it authorized BEFORE you incur the expense. If you incur an unauthorized expense, the expense will be rejected (and deducted from your paycheck) even if the expense were reasonable. DO NOT test the system -- A/P does not have time to deal with expenses out of policy so the general rule for them will be to reject your expenses that I did not authorize. When dining out while traveling with co-workers, each employee is to pay for their OWN MEAL. If you pay for a co-worker s meal, you are agreeing to pay out of pocket should the total of both meals be over your daily travel meal expense limit. DO NOT combine checks (ask for 2 checks). This is policy. Entertainment Expense Policy Event Budget This event budget is for sales to take high potential clients out for breakfast or lunch meetings only. Co-Worker meal is also prohibited. All unapproved overages will not be reimbursed and deducted from either commission or paycheck. $60 per event $20 per person at 3 person s maximum including Sunland Shutters Sales Person Dinner Meeting and Alcohol Expense is prohibited. Declare Entertainment Expense Entertainment expense needs to be clearly detailed on the expense report including below information: Name of the business or Account Code Meeting attendance list Purpose of the meeting Conclusion and expected results from the meeting If fail to provide detailed descriptions of entertainment purpose with clear expected results, the expense will not be approved for reimbursement and will be deducted from the paycheck. Corporate Accounting will routinely audit the expense. Any abuse or violation to corporate policy will face disciplinary measures that may include losing corporate credit card and/or termination of employment. Page 36 of 49

37 Fuel Expense Policy Fuel expense on Company Credit Card is prohibited. All fuel expense should be paid in advance and reimbursed on a monthly basis. Overage on monthly fuel expense cap will not be reimbursed. The month fuel expense will only reimbursed up to the authorized fuel cap amount. Page 37 of 49

38 Purchase Order Policy All purchases of material or services must be documented by a written purchase order. All purchases can be classified as a routine or occasional purchase. Routine purchases include those types of material that are required on a regular basis. Routine Purchases Routine purchases include but not limited to: Office Supplies: Stationery (basic level), toner, ribbon, copy paper, cleaner, drinking water, coffee, creamer, sugar, paper cups, and restroom supplies. Shipping Supplies: Labels, stripping, film, tape, pallets, and boxes Warehouse Supplies: Propane, cleaner, small tools, light bulbs, paint and filters Service: Repair and maintenance (e.g. equipment, vehicle) under $300 and forklift PM service Routine purchase under $300 may be passed to local branch managers for review and approval. Routine purchase over $1,000 requires review by local branch managers and approve by Johnny Hsieh. Routine purchase over $1,000 without approval from Johnny Hsieh cannot be processed. Occasional Purchases Occasional purchases are non-routine purchases, including asset or capital improvement. Such purchases contain but are not limited to: Office equipment: PC, monitors, laptops, computer accessories, phone & accessories, printers, copiers, fax machines, desks, chairs, microwaves, coffee makers, electric staplers, electric hold punchers, shredders, racks, file cabinets, digital cameras, refrigerators. Advertisement: Mouse pads, cups, shirts, caps, golf balls, magazines, brochures, employment hiring ads. Warehouse equipment: Forklifts, order pickers, side loaders, storage racks, shredders, saws, banding tools, compressors, scales, ladders, dollies, paint guns. Shipping: Other special shipping/packing supplies request by customer and will be billed to the customer. Service: Repair/maintenance (e.g. equipment, vehicle) over $300 and other forklift service except PM service. Page 38 of 49

39 Overtime Policy Overtime needs to be pre-authorized by Johnny Hsieh or James Change, cc. Judy Wang. Office personnel overtime needs to be requested by Branch Operation Manager. Warehouse personnel overtime needs to be requested by Warehouse Manger prior submit for approval. California Operation Staff Overtime Request submit to Wanda Weaver for review. California Warehouse Staff overtime Request submit to Jose Olivas for review. Texas Operation Staff Overtime Request submit to Evelyn Lin for review. Texas Warehouse Staff Overtime Request submit to Jorge Bernal for Review. Florida Operation Staff Overtime Request submit to Anthony LaFerrera for review. Florida Warehouse Staff Overtime Request submit to Terence Antoszewski for review. Page 39 of 49

40 Travel Policy All travel planning required a 14 days advance notice. All travel needs are to be booked through Lydia Lee. No personnel can call Flower Travel directly, and any travel booked directly through Flower Travel will not be reimbursed (even if a travel request is approved). Do not request a specific airline We will book you on whatever airline has the lowest airfare at the requested date/time. The request for a specific airline will not be honored. Lydia Lee s Corporate Contact Direct Line: lydia_lee@tachen.com Do not make travel changes without approval If you are charged any change or cancellation fees due to your error, the revision fees will be deducted from your paycheck and will not be reimbursed. Reimbursement Policy Reimbursement will be process by A/P department on once a month basis. If there is a pending reimbursement for $500 or more, A/P can perform a special processed reimbursement prior the routine reimbursement schedule. Routine Reimbursement is processed at beginning of the month prior the first pay roll. For large amount or urgent reimbursement, please inform Judy Wang. Request will be review from there. Page 40 of 49

41 PDA Scan Instruction Start the program Make sure PDA can receive the wireless Internet signal and see the screen shown on the left picture below. Open Windows Explorer: (Center & right pictures) Start File Explorer Personal Shutters PDA TachenOrder (90.0K) Page 41 of 49

42 Load Invoice Data- start scanning the new invoice Clear the previous invoice data saved in PDA device Click on Load / Clear Data (PDA) Select the Invoice Data that you want to delete (Check Y in DEL) Click on Clear (PDA)- the new invoice data will append to the previous one. Load Invoice Data Click LOAD on the bottom of screen to load invoice data. ENTER INVOICE# and click START DOWNLOAD Shipment Receiving/ Edit/ Checking Shipment Receiving Scan Click RECEIVING on the bottom of the screen to load scan page. Single Job Scanning- LAC jobs, need to open crate & scan each bundle individually. Page 42 of 49

43 Scan the barcode on each bundle. Assign the location to PDA & then click OK (see 2 nd picture below). The location assigned can only be a maximum of three digits. If you scan a barcode for the same job number from the same crate, the PDA will automatically retrieve the previous location entered for that same job and save. (See the 4th picture below). ** RED screen (2 nd Picture) means that you need to enter the location. ** BLUE screen (3rd Picture) means that the scanner is ready for next barcode scanning. Whole Crate Scanning- Jobs for other branches & only need to scan the crate. Scan the crate s barcode. After searching, a message will show Yes or No to save this crate s data. Click YES to proceed. Edit and Check data after finish scanning each crate. Page 43 of 49

44 Listing all details- Click on Check List & all the item details from this invoice number will be loaded. Sort by different options- You can sort by any column with a simple click on the column CHK & there ll be some options to select from. Check if there s missing package- When finish scanning 1 crate, sort by CASE to see if there is any missing package. (Y- Received completed. V-Received partially. A-Received by crate barcode) Modify Location- you could modify the location with a double click on the LOC. Click on Clear All and enter new location and save the new/ correct location. Final check- After finish scanning the whole invoice, click on check list again to see if everything marked Y (Received completed) on the left of the screen. Upload Data to TBS Click Up on the bottom of screen to load upload program. Click Upload List, you can read the items (job numbers) that are going to upload. Click Upload Page and click Upload button to upload the data to TBS. When it s finished, Click ok. Page 44 of 49

45 5. Notes: In the case that if the program has an error and we need to reset, please press the on/off button for 15 seconds or so until the system reboots itself. If the PDA cannot find the Internet connection, please do the followings. Start---Wireless Companion---Wireless Configuration Editor---Find WLANs--- Click on Cherry--- Click on Connect----Click on Next---When you see Encryption, please select 40-Bit WEP---Click on Next---Enter the codes Click on Next and Finish at the end. If the invoice number already has data in PDA, system will give user three options: Yes (Replace): Clear the original invoice data and download the invoice s data again. No (Append): Add the new invoice s data onto the old invoice data. Cancel: No action. Page 45 of 49