APPENDIX C-2 – Implementation of ISP (Initial Stock Parts) Program

1. Purpose

ISP (Initial Stock Parts) is a list of spare part items that dealers should mandatorily
purchase upon each machine order to secure minimum level of customer service.

ISP program is designed to

1) Guarantee use of genuine parts within warranty period
2) Improve dealer stock forecast and shorten dealer’s customer service lead
time
3) Increase dealer’s profitability

The ISP program will be applied to major models or any other models deemed to
be appropriate to implement this program.

2. Scope of Supply

The ISP list applied to each model is set by AM Business with the review of the
HQ technicians. The items included shall only be limited to the essential and
minimum spare parts that is expected to be required as the machine is being
operated within the warranty period. Samples of the ISP lists for the initially
applied models are attached which can be adjusted by AM Business Team if
necessary.

3. Contract Price

20% additional discount to the usual 35% discount from the DLP (FOB Korean
Port basis) shall be applied to the items for ISP orders.

4. Process

1) Upon receipt of Proforma Invoice for any machine purchase order at HQ,
orders for ISP items are mandatorily generated by AM Business.
2) In case machine is overseas ODM, the ISP may be shipped with other sea
freight cargoes from Korea to facilitate shipment and reduce freight costs.
3) It may be viable to add certain items to the ISP order and apply the same
discount rate under condition that AM Business deems it appropriate with internal
approval.