Page 38 - Gulf Coast Division - Training Manual 5 -18

PAGE NUMBER
Ben E. Keith Company POLICIES/PROCEDURES DOCUMENT NUMBER
6 of 8
501
DATE ISSUED
SECTION: 5.0 CREDIT 11/1/2005
SUBJECT: CREDIT POLICY ORIGINATING DEPARTMENT
CORPORATE

6.2 A bad debt reserve account in the Ben E. Keith Employees Federal Credit Union
shall be established for each salesperson by deducting a minimum of $50 per month
from their commission or salary to a maximum of $2,500 for individuals who became
a salesperson prior to August 1, 2010 and $3,500 for individuals who became a
salesperson on or after August 1, 2010. Funds from this account will be used to pay
such salesperson's 25% share of bad debt charge offs as set out above. Any unused
balance in the account will earn interest which will be paid to the salesperson
quarterly if not used to pay bad debts. By your signature upon this credit policy, a
salesperson: (1) agrees to sign an application for membership in the Ben E. Keith
Employees Federal Credit Union and to submit such application with a signed copy of
this credit policy to the credit union. (2) agrees that all funds in the credit union
account, including accumulated interest, may be withdrawn by the company to pay
bad debts as set out above, (3) irrevocably makes, appoints and constitutes the
Branch Credit Manager of such salesperson's branch and all successors to such
position as such salesperson's attorney-in-fact to in the name and stead of such
salesperson withdraw funds from the salesperson's bad debt reserve credit union
account, endorse with such salesperson's name any check or other instrument so
withdrawn from the credit union, and apply the withdrawn funds to the payment of
bad debts as set forth above. (4) agrees to make no withdrawal from the bad debt
reserve account (including accumulated interest) at anytime during employment or
until all of their accounts have been resolved and reconciled after leaving or being
discharged from the employment of the company. (5) Acknowledges that if the sums
set out in the bad debt accounts prove to be insufficient to pay his or her 25% share
of bad debt charge offs that he shall remain personally liable for such 25% share
both during and subsequent to his or her employment with the company.

7.0 NSF Checks (includes ACH’s)

7.1 All accounts become CASH accounts upon notice of dishonor of an item by a bank
for any reason and remain on CASH until thirty (30) days after the item has been
honored or paid by the customer, at which time the account may return to its original
status with approval of the Branch Credit Manager. A second dishonored item at any
time will cause an account to become a permanent CASH account.

8.0 Prohibitive Actions

8.1 Credit sales are not to be made to a COD account. Any bad debt write-offs resulting
from such shipments will be deducted in full from the salesperson's pay or from the
driver's pay, whoever is responsible for the delivery.

8.2 The salesperson is responsible to keep himself and the Company informed as to the
status of his accounts. A salesperson may cut off credit sooner than required by this
policy as he/she sees fit, however, once on COD the account cannot regain credit
status without the approval of the Branch Credit Manager.

REVISION DATE OF LATEST REVISION SUPERSEDES ISSUE DATED
07/01/2015 07/01/2015 07/01/2014
APPLIES TO
Entire Company Food Division Only Beer Division Only Other (see text)