Order. Handling Rules. And. Distribution Plan

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1 Order Handling Rules And Distribution Plan 15-july

2 Introduction All delivery deadlines set out in these Rules are merely indicative, and do not represent a commitment by CIN. Their fulfilment depends on the availability of stocks of finished products, raw materials, accessories and packaging and the availability of CIN s dispatchers. They are also bound by force majeure clauses. CIN is only liable for delivery deadlines provided that: The order has been formally accepted and the delivery date has been formally confirmed. Confirmation will have to be made within 15 days of the delivery date, and reservation of the quantity is mandatory. This commitment is subject to the force majeure clause. The indicated rules are valid from 1 February 2011 and shall remain in force until amended or repealed. Numerical rules may be amended without prior notice in the event of force majeure, by decision of General Management, on proposal by the Commercial or Operations department. In such an event, existing orders may be respected or not. All fees listed here are of mandatory payment and they are cumulative. Orders are classified according to the following criteria: 1. Order Classification Criteria Delivery deadline Order size (Quantity/Value) Validation of urgent orders Delivery fees Order composition: Batch products Special Products 2. Delivery Deadlines & Distribution Plan Batch products and Colormix tinting Subject to stock availability Keep the current delivery routine, with the following changes: Direct delivery in the Lisbon and Porto urban areas, normally within approximately 48 hours following the order. In all other zones, according to the first available route, normally within approximately 48 hours following the order. 15-july

3 N.B. - These deadlines are solely indicative and may be subject to change without prior notice. These deadlines may be longer in the event of complex orders, large orders or orders made at peak periods, among other reasons. If the quantity ordered is less than 50 kg/l, or EUR 100 (without VAT) for motor vehicle refinishing products, a delivery charge of EUR 30 will be payable, which will be added to the amount of the invoice. Express order: Deadline 24 hours Subject to stock availability Order time limit 4:00 p.m. of the day preceding the delivery date maximum number of products 3 Delivery fee according to the attached delivery costs table Express order costs table Weight kg /L Delivery Cost Up to 50 kg/l EUR to 150 kg/l EUR to 450 kg/l EUR to 1,000 kg/l EUR 90 Above 1,000 kg/l Charge of the Freight cost Internet Order: Minimum order: 150 Kg/L Priority and delivery commitment of approximately 48 hours or the first available delivery route System input deadline 6:00 p.m. Order collected by customer from Maia Distribution Centre: Collection deadline 4 hours after placement, during normal working hours, from 09:00 a.m. to 01:00 p.m. and from 02:00 p.m. to 07:00 p.m. Order placement after 04:00 p.m. collection the following day from 9:00 a.m. Maximum number of articles per order 6 15-july

4 3. Order of Special Products: Always subject to availability of raw materials and stocks Definition of acceptance criteria by product type with regard to: o Normal and urgent delivery deadline o Minimum Quantities Table o in accordance with that stated below. Liquid Paints Delivery deadline 7 business days No fees for orders that exceed the minimum quantity defined by product family, in accordance with the following table. Payment of fee for orders of small quantities, in accordance with the following table. Liquid Paints Table of Minimum Quantities and Fees Type of Product Minimum qty. kg/l Quantity Fee Solvent based paint from Machine > 100 and < 200 EUR 80 Water based paint from Machine > 140 and < 200 EUR 80 Mixing from bases (1) > 60 and < 120 EUR 50 Latex Paint (1) > 495 and < 900 EUR 50 Varnish / Staining > 60 and < 100 EUR 50 Thinner > 25 and < 100 EUR 25 (1) - Product / Colour not available in Colormix Decorative or Industrial Urgent order: Delivery deadline 4 business days Feasibility confirmed by Customer Service in conjunction with Planning Urgency fee EUR 100 Quantity fee applies according to the above-attached Table for orders of special products liquid paint. Powder Paint Delivery deadline 14 business days Minimum quantity per product family 15-july

5 Powder Paint Table of Minimum Quantities Type of Product Qty. Minimum kg Gloss 175 Polyester matt 350 Metallic 350 Urgent order: Delivery deadline 9 business days Feasibility confirmed by Customer Service in conjunction with CIN Indústria Minimum quantity per product family, according to preceding table Urgency fee EUR Special situations and 2K products Orders placed to Maia Distribution Centre: Accessories: only possible according to sales multiples (e.g. 6,12,18, ). Mixing of products by machine in 1L and 0.75L containers: only possible for complete box. 2K products always supplied as complete kit. 5. Deliveries in CIN stores The CIN stores were designed to serve retail customers and provide support in case of emergency. They are not prepared to dispatch orders to distributor customers in substitution of the Maia Distribution Centre, also since the extra cost in such cases is very high. Distributor customers must, therefore, use the stores solely in emergencies and only in such cases. An emergency is defined as an order of: Less than 4 products Less than 100 Kg/L. Note: Revised on 15 July july

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