10th Edition

Stant Corporation 70701 Powell Rd. Romeo, MI 48065

Stant Corporation

5300 Jefferson Parkway Pine Bluff, AR, USA 71602-3496

Stant Corporation Stant S.R.O. Calle Jose de Galvez # 1014 Fracc. NA Novem Poli 379/2

Garita de Otay C.P. 22509 73301 Karvina, Czech Republic Tijuana B.C. Mexico

Stant Corporation Stant Automotive System (Suzhou) Co., Ltd. 1 1355 Lakeview Drive No. 728 Feng Ting Road, Romeoville, IL USA 60446 Suzhou Industrial Park, PRC 215122

Stant Corporation 1620 Columbia Ave

Connersville, IN, USA 47331-1696

Stant Korea Corporation 312-17 Deuksan-dong

Asan-si, Chungnam, Korea

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STANT SUPPLIER QUALITY MANUAL

TABLE OF CONTENTS

INTRODUCTION pages 3-5

A. Ethics – Gifts and Entertainment B. Message to Suppliers

1.0 Qualification for Stant Approved Supplier List, pages 6-8

New and/or current supplier Quality system assessment

2.0 Quality Systems Requirements, pages 8-9 Fundamental principle in quality TS-16949:2009/ISO9001:2008

3.0 General Requirements, pages 9-13 Special characteristics Parts material certification Process certification Customs Compliance Environmental Initial Production Parts Process

4.0 Pre-Production/Prototype Part Quality Certification Requirements, page 13

5.0 Production Parts Approval Process, pages 13-16 PPAP Early Production Containment

6.0 Control, Monitoring & Verification of Measurement/Test, page 16-17 Equipment

7.0 Receipt of Nonconforming material/product/services, pages 17-25 Immediate notification Vendor Material Inspection Report Cost Recovery Supplier Measurements Return material (product) authorization

8.0 Sorting Requirements, pages 25-26 Supplier responsibility

9.0 Permanent Corrective and Preventative Action, pages 26 Request for corrective action

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Table of Contents (continued)

10.0 Controlled Shipping, pages 26-31 Two levels of controlled shipping The key steps of the process Controlled Shipping (CS1) level 1 process The supplier shall: Controlled Shipping (CS2) level 2 process The kick-off meeting Exit criteria

11.0 Requests for Change and/or Deviation, pages 31-32 Supplier Change Request Deviations

12.0 Associated Business Conditions, pages 32-33 Items related to Stant and Suppliers

13.0 Supplier Rating and Development, pages 33-34 Calculating supplier performance points Scorecard Defining Development Delivery and Requirements

14.0 Packaging and Labeling, pages 35-40 Size and weight requirements Special packaging and Container size Label requirement Bar code label standards Additional Labeling Requirements

15.0 Appendices List, pages 41

A) Stant Supplier Acknowledgment, page 42

B) Supplier Web Portal Access Form, page 43 C) Supplier’s Personnel Data Form, page 44

D) Vendor Material Information Report (VMIR), page 45 E) Controlled Shipping – Level 1 letter, pages 46-47

F) Controlled Shipping – Level 2 letter, pages 48-49 G) Supplier Change Request Form, page 50 H) Request for Deviation/waiver, page 51 I) General Terms and Conditions, page 52 J) Initial Production Parts Procedure (IPP), pages 53-57

K) Initial Production Parts Labels, pages 58-59 L) Team Feasibility page 60 M) Tech Review Checklist, page 61-63 N) PPAP Submission Requirements Check Sheet, page 64 O) Bar Code Example, page 65 P) Third Party Sorting Provider List, page 66 Q) NAFTA Certificate of Origin Forms, pages 67-68

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INTRODUCTION

To Our Suppliers

Since 1898, Stant has been dedicated to providing our customers with the finest products and services available. Our reputation in the marketplace for innovation, quality, and leadership is a great source of pride for all Stant associates and customers.

Our Vision

To be recognized as foremost global supplier of Vapor Management Systems, Fuel Delivery Systems, Thermal Management Systems and Engineering Services, providing our Customers with viable, reliable and cost competitive advantages.

Purchasing Department Mission Statement The Purchasing Department Mission is to obtain the greatest value in the acquisition of goods and services while ensuring the integrity and accountability of our processes.

Stant Mission Statement Stant has a mission to achieve profitable growth and increase stakeholder value by designing, engineering, and manufacturing products that deliver to our Customers’ expectations.

Quality Policy

Customer Satisfaction: To provide products and services which entirely satisfy the requirements as defined by the Customer. Each of us is, therefore, committed to excellence and to assist one another to pursue continuous improvement.

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A. Ethics – Our Ethics Policy

Gifts and Entertainment

Stant has enjoyed a prominent reputation in the market place. Striving to maintain this reputation is a high priority. Therefore, we want to remind our suppliers of our ethics policy. It is our belief that the giving/receiving of gifts, regardless of value, can potentially lead to favoritism and embarrassing situations. With regard to this, it is our goal to inform all suppliers of our code of ethics, as it relates to this situation and all Stant employees. We need your cooperation and compliance in this endeavor. Non-compliance jeopardizes your business relationship with Stant. Our policy states that “Associates may not accept gifts of money under any circumstances, nor may they solicit non-monetary gifts, gratuities, or other personal benefits from suppliers or customers”. Associates and members of their immediate families may accept unsolicited, non-monetary gifts from a firm or individual doing or seeking to do business with Stant only if: (1) the gift is no more than $ 50.00 (fifty dollars), or (2) the gift is primarily of an advertising or promotional nature. Gifts of more than $50.00 (fifty dollars), may be accepted if protocol, courtesy or other special circumstances exist, as sometimes happens when dealing in certain countries. Associates may not encourage or solicit entertainment from any individual or company with whom Stant does business. From time to time associates may offer or accept entertainment, but only if the entertainment is reasonable in the circumstances, occurs infrequently, and does not involve lavish expenditures. Offering or accepting entertainment, which is not a reasonable adjunct to a business relationship, but is primarily intended to gain favor or influence, must be avoided. If anyone in your company believes that any Stant employee has violated our policy, please call and inform the Human Relations Department at Stant at 800-822-3121.

Statement Regarding Labor Conditions Stant is committed to respectful and appropriate treatment of our workforce. Therefore, we will not support, nor ever participate in the subjugation of any person or the employment of minors. Our Suppliers must demonstrate the same commitment.

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Stant Message to Suppliers

Stant is a supplier of high-quality products and services. To enhance this position, Stant is committed to measurable continuous improvement in all aspects of our business. A primary element of this mission is to optimize relationships with our suppliers resulting in: Development of mutually beneficial relationships Improvement of internal and external business practices Formalization of cross-functional decision making teams World-Class performance Accreditation through ISO-9001:2008/or ISO/TS 16949:2009

Curt Howell Rennie Young CEO & President VP of Purchasing, Supply Chain Management & Materials ryoung@stantinc.com

Jose Vazquez Greg Brown

Supplier Quality Engineer Supplier Quality Manager jvazquezi@stantinc.com gbrown@stantinc.com

Duane Gardner Diana Gaston Supplier Quality Engineer Supplier Quality Engineer dgardner@stantinc.com dgaston@stantinc.com

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1.0 Qualification for our Approved Supplier List 1.1 The selection and approval process begins by being identified by Stant as a resource for a specific part, material, or commodity. There will be no special exemptions for these qualifications. All requirements must be met. Suppliers may be eligible by meeting and/or exceeding Stant’s and Stant’s Customer requirements. Eligibility may be determined by means such as:

Agreement and acknowledgement of the Supplier Manual

Registration to ISO/TS 16949:2009 or ISO9001:2008

Completed Wall to Wall Audit from Supplier resulting in an acceptable score

On-site evaluations by Stant Purchasing or Supplier Quality

Confirmation of performance in all required areas

Participation and compliance with all Stant systems, procedures and requirements contained within this manual.

Competitive bidding

Acceptable Risk Assessment Survey 1.2 There are four categories which classify our Supplier relationship levels. Preferred supplier has developed the following quality status: * Zero non-conformances (PPM) * Current ISO 9001:2008 and/or TS16949:2009 certification * No delinquent deliveries * Achieve a score of 95-100% on Supplier Performance Report * Score 91-100% on the initial or annual Wall to Wall Audit * Acknowledged and signed the Supplier Quality Manual * Participate in VA/VE (Value Added/Value Engineering) activities and submit VA/VE ideas yearly * Timely and accurate response to VMIRs (Vendor Material Inspection Report) Development to improve product quality: None Recommendations: Award more business Acknowledge their excellent quality performance (annually) Acceptable supplier has developed the following quality status: * Supplier has met their yearly target for either quality or delivery and has an approved corrective action plan to meet the established targets. * ISO/TS certified * Achieve a score of 85-94% on Supplier Performance Report * Score 85-90% on the initial or annual Wall to Wall Audit * Acknowledged and signed the Supplier Quality Manual * Participate in VA/VE activities and submit ideas * Timely and accurate response to VMIRs

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Development to improve product quality: Supplier to develop and document action plan to reduce defects Recommendations: Award more business – based on complexity Acknowledge their satisfactory quality performance. Developmental supplier has the following quality status: * Supplier has not met their yearly target for either quality or delivery, but has an approved corrective action plan to meet their quality and delivery targets * Supplier is not ISO/TS certified or has lost certification * Achieve a score of 75-84% on Supplier Performance Report * Score 75-84% on the initial or annual Wall to Wall Audit * Delinquent and ineffective response to Corrective Action Requests * Supplier is on level one containment * Supplier may have shut down Stant assembly line Development to improve product quality: Supplier to develop and document action plan to reduce non-conformances Supplier to develop and document action plan to reduce delivery issues Stant Purchasing or Quality must approve the supplier’s facilities (based on response to action plan from line shut down, controlled shipping, corrective action(s), and all actions supplier has submitted) Recommendations: Request supplier present action plan(s) to Stant senior management Request supplier become ISO certified Hold future business until quality status is satisfactory SQM set up accountability Unsatisfactory supplier has the following quality status: * Supplier has not met their yearly target for either quality or delivery, and has not submitted a corrective action plan, or their corrective action plan, is not effective. * Achieve a score of <75% on Supplier Performance Report * Score below 75% on the initial or annual Wall to Wall Audit * Very poor or no response to VMIR * Not ISO/TS certified or interested in becoming certified * On level 1 or 2 controlled shipping more than once * May have shut down Stant customer line Required development to improve product quality: Supplier to develop and document action plan to reduce defects Supplier to develop and document action plan to reduce delivery issues Recommendations: Request supplier present action plan(s) to Stant management Request supplier become ISO certified

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If quality performance is not improved within 3 months of receiving audit findings, begin process to look for another supplier. Supplier will be removed from the Stant Approved Supplier List, and will be on new business hold. The supplier must meet the requirements of the Satisfactory Supplier Level for a minimum of 3 months to be reinstated to the Stant Approved Supplier List. 2.0 Supplier Development 2.1 An Approved Supplier list will be maintained by Stant. The list will be updated on a continuous basis by the Supplier Quality Department. 2.2 A Wall to Wall Audit Form, for self-assessment, may be forwarded to a Supplier for completion when Stant is considering awarding new, additional business and/or prior to an on-site audit being performed. The self-assessment Audit Form shall be completed as requested and returned to the originator by the requested date. It is expected that suppliers will utilize a multi-discipline approach in order to complete the survey document. If questions are considered not applicable, indicate N/A. On-site Supplier Wall to Wall Audit performed by Stant Purchasing or Quality will be used by Stant as one method of ensuring that requirements are met. Stant Purchasing or Supplier Quality shall provide a copy of the completed Audit to the Supplier; who must initiate any follow up actions required. 2.3 Each Supplier must provide a copy of their Quality System Registration Certificate and complete the Supplier’s Personnel Data Sheet annually. 2.4 New Suppliers will complete an Environmental Survey as part of the initial assessment. 2.5 Separate manuals on stamping dies, injection mold tools, and EDI will be provided to the Supplier as required. 2.6 All production and /or prototype part Suppliers must complete the Supplier Portal Form and submit it to the Stant Information Systems Department. An account must be set-up with a sign-on and password. 2.7 Quality System Requirements (ISO 9001:2008/TS16949:2009) *The supplier, as a fundamental principle of its quality system, shall: Establish, document, and implement an effective quality system, with the goal of compliance to all applicable requirements of ISO 9001:2008 / TS16949:2009. Incorporate all requirements of the Stant Supplier Quality Manual into the Supplier’s quality system.

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Prepare a Quality Manual that addresses all requirements of ISO 9001:2008/ TS16949:2009. The manual must include or reference documented procedures to support the specified requirements within the quality manual. When a supplier does not have adequate resources to develop a system according to ISO 9001:2008 / TS16949:2009 certain specified requirements may be waived, based upon product complexity and an on-site assessment per AIAG QSA. The assessment provides the means to record objective evidence of compliance to the quality system requirements. Quality system assessments to ISO-9001:2008/TS16949:2009 by an approved second party or an accredited third party certification body/registrar shall be recognized in lieu of audits by Stant (Stant reserves the right to conduct an assessment). If a change in the suppliers’ ISO-9001:2008/TS16949:2009 status occurs, the supplier shall notify purchasing and quality in writing within 10 days. Stant shall be afforded the right to verify, at the supplier’s premises, that product, material and tooling conforms to specified requirements. This right shall also be afforded to Stant customers. Such verification shall not be used as evidence of effective control of quality by the supplier. Verification by the customer shall not relieve the supplier of the responsibility to provide acceptable product, material, or service, nor shall it prevent subsequent rejection by the customer. 3.0 Supplier General Requirements 3.1 Certified Products Requirement - All mass production part and material suppliers shall certify their products to meet or exceed acceptance established at Production Part Approval Process (PPAP). This shall include all parts and materials supplied to Stant or supplied as pass through to Stant’s Customer. If the quality level falls below the established quality standard, parts and materials shall be considered nonconforming. The supplier shall take immediate containment action and re-establish certification. 3.12 Special Characteristics - Some products will have features, which are designated as special characteristics. These requirements may be identified by Stant or a Stant customer. For these characteristics, SPC data verifying that a Short-term capability of a minimum 1.67 Cpk value or greater is met at the time of PPAP and maintain a Long-term capability of a minimum 1.33 Cpk value or greater during production. Note: Suppliers must have this data readily available. When a Stant customer’s special characteristic is shown on the part drawing or referenced in the specification, the supplier is required to comply with Stant’s Customer’s requirement. 3.13 Parts & Material Recertification - The supplier has the responsibility to ensure that purchased production parts/material supplied to Stant shall be in compliance with all material specifications shown on the drawing and/or purchase order. Parts/material

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certification containing actual per request-measured results may be required at designated intervals. Stant shall determine the need for part and material certification. The requirement for certification will be shown on the purchase order. 3.14 Process Certification – The supplier has the responsibility to ensure that production processes are in compliance with all material specifications shown on the drawing and/or purchase order. A Long-term capability with a minimum 1.33 Cpk value or greater during production must be maintained. Stant shall determine the need for process certification verification. 3.15 Annual Validation is required of all Suppliers for all production parts. The Annual Validation is the financial responsibility of the Supplier and must be submitted to the Plant Quality Engineer(s) for approval prior to the anniversary date of the original PPAP submission. 3.16 Annual Wall to Wall Audits will be performed by Stant Supplier Quality or Purchasing personnel or as a self-assessment by the Supplier. It is required that all action items raised during the initial Wall to Wall Audit or previous annual Wall to Wall Audit be resolved according to the Action Register published dates. If the Wall to Wall is performed as a self-assessment by the Supplier, action items may be identified by Stant Supplier Quality or the Supplier, based on the Audit results. 3.17 Zero Defects Acceptance – The supplier shall adopt acceptance criteria of zero defects on parts, materials, products, and services supplied to Stant. 3.18 Product Sorting - In the event defective supplied product or material is discovered at Stant and/or at the Stant Customer location, it is the Supplier’s responsibility to replace or sort the defective material in accordance to the direction given by Stant. Stant holds the right to sort/rework supplied product or material at any time, to ensure their Customer’s requirements are not compromised. The Supplier shall be responsible for all expenses; including, but not limited to, Stant administration fee, hourly rate charges, travel expenses and containment company charges. 3.2 On Time Delivery – 100% on time delivery is required of all suppliers. Appropriate planning information and purchase commitments to enable Suppliers to meet this expectation are provided by Stant and contained in Stant’s Purchase Order. 3.3 Supplier delivery performance is monitored and is an element of the Supplier performance rating system. Appropriate corrective actions shall be taken in the event of failure to meet these delivery requirements. 3.4 Excess Freight Cost - The Supplier shall be held responsible for excess freight cost incurred because of lack of Supplier performance. This includes premium freight charges from the Supplier facility to the Stant facility as well as any premium freight charges passed on by our Customer.

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3.5 Lot Traceability – The Supplier is responsible for maintaining lot traceability while product is at Stant. Mixed lots should be avoided. Mixed lots shall be identified. 3.6 Domestic and Foreign Content – Supplier shall provide, upon request, the domestic and foreign content of any materials purchased by Stant, as required by U.S. laws and regulations (i.e. NAFTA, etc.) Custom Compliance 3.7 All suppliers are required to provide a NAFTA Certificate of Origin (CBP-Form 434) on the origin of all items procured. Rules and Regulations are available at the US Customs and Border Protection Website www.CBP.gov or you may use the form Appendix Q. All sections must be completed in accordance with the CBP regulations. All items must include the HTS code (Harmonized Tariff Code) as outlined in the US International Trade Commission website www.vsitc.gov/tata/hts/bychapter/index.htm. A copy may be obtained from the US Government printing office. All Certificates must be signed and dated by the designated compliance officer or higher. Compliance certificates must be sent at the time of initial PPAP and annually to one of the following: email: nafta@stantinc.com or: Mail to:

Stant Corporation Attn. Customs Compliance,

1620 Columbia Ave Connersville, IN 47331. NOTE: Any changes during a calendar year that affect the country of origin must be submitted immediately to the email or mail address listed above. Environmental 3.8 Restricted Material ISO14001 - The supplier shall comply with all current governmental and safety restraints on restricted, toxic, and hazardous materials; as well as environmental, electrical, and electromagnetic considerations applicable to the country of manufacture and sale. 3.81 Underlying Material Constituents- Sellers are required to submit the composition of the products supplied to Stant using the IMDS system. Any item containing materials on the GADSL list contained within the IMDS must be disclosed at the time the material or component is cost quoted or within 10 business days of a new chemical being placed

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on the GADSL. It is the supplier’s responsibility to review and update the IMDS whenever there is a change to the GADSL. 3.82 In addition to the material specifications and restrictions contained in the prints and documentation provided by Purchasing, Product Engineering, and Quality Departments, Materials supplied to Stant that will be incorporated into products must be compliant with the laws and regulations set forth in this document. All materials must be compliant with the most recent version of: European Union End of Life Vehicle (ELV) Restrictions Restrictions concerning Brominated Flame Retardants- EU, California and New York State Restrictions concerning Plasticizers European Registration, Authorization, and Restriction of Chemicals (“REACH”) California Proposition 65 Specific to the above restrictions: 3.83 Stant prohibits the following from any material, product, component, packaging, or ink: Mercury, Hexavelent Chromium, Cadmium, Brominated Flame Retardants, Dibutyl phthalate, Dioctyl phthalate, any Substances of Very High Concern (SVHC) identified in REACH Annex XIV. 3.84 Stant allows Copper Alloys to have up to 4% lead by weight (per EU Directive 2002/525/EC) REACH Compliance: 3.85 Suppliers within the EU must ensure that all substances they use for our production will be pre-registered and will therefore be available after December 1, 2008 further on, and then registered by the phase in schedule contained in the directive. Suppliers must make us aware that a substance will not be registered and has to be taken from the market after 1st December 2010 at the earliest, must notify us without delay and Stant will start development of an alternative material or supplier. 3.86 All suppliers must notify us immediately upon becoming aware that a material provided to us contains an SVHC. This can be done in writing within 10 business days or through the IMDS system which will be updated to include SVHCs to the GADSL List of chemicals. 3.87 REACH One Point of Contact: Please direct all questions, concerns, and notifications concerning REACH as it pertains to Stant Corporation to your Stant contact. 3.88 California Proposition 65: North American Suppliers must notify Stant Manufacturing within 10 business days of becoming aware that a material, product, component, packaging, or ink contains a chemical listed in the California Safe Drinking Water and Toxic Enforcement Act of 1986 (Health and Safety Code, Chapter 6.6,

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Sections 25249.5 through 25249.13) commonly known as California Prop 65. More information on Prop 65 can be found at: http://www.oehha.ca.gov/ Initial Production Parts Procedure (I.P.P.) 3.9 Supplier shall implement the IPP Procedure in order to facilitate the smooth control of Initial Parts deliveries of PPAP approved parts for production. Supplier shall submit the Initial Parts Notification to the appropriate Plant QE or SQE whenever delivering initial parts that fall within the scope indicated above. To indicate Initial Parts Delivery, the Supplier shall attach a notification label to each container during the Initial Production Parts Procedure process. Indication shall be per the prescribed format. Please refer to Appendix J 3.9.1 In the event a supplier fails to provide proper material identification or labeling as stated within this document, product cannot go directly to the warehouse. A dock charge may be assessed to the supplier. Product will be considered nonconforming, VMIR issued and corrective action required. 4.0 Pre-Production/Prototype Part Quality Certification Requirements This is a function of Product Engineering and Advanced Quality Systems. 5.0 Production Part Approval Process (PPAP) 5.1 PPAP is always required prior to the first production shipment of a product in situations as outlined in the AIAG PPAP Manual. The AIAG Format shall be used unless otherwise specified by Stant. A Level 3 submission is required for component parts and Level 1 for raw materials, unless otherwise specified. 5.2 All PPAP requirements shall be issued to the supplier using the Supplier PPAP Checksheet (Appendix N). Stant Supplier Quality Engineering Department (along with Plant Quality Engineer) will provide and approve the requirements contained within the submitted PPAP. Submission part quantity will be 300 pieces unless otherwise specified. The PPAP shall be submitted to both the Supplier Quality Engineer and Plant Quality Engineer with whom the Supplier has been working since the beginning of the project. 5.3 The Supplier will be required to demonstrate that they can sufficiently produce product by using the run@rate requirements. As appropriate, run@rate trials may be attended by Stant associate(s). Run@rate capability and capacity data will be required before Stant gives PPAP approval. 5.4 All PPAPs will list the part number and rev level, as identified on the Purchase Order.

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5.5 Early Production Containment 5.5.1 The purpose of Early Production Containment (EPC) is to: Validate the production control plan for new part, program or Supplier Protect Stant from quality non-conformances during critical periods Document efforts to verify control of processes during start-up, acceleration, after revisions to the manufacturing process, or when manufacturing runs are separated by three months or more.

The Supplier must establish a validation process that contains the following elements: A member of Supplier Staff who will be responsible for ensuring the development and implementation of the verification process. Implement Early Production Containment with entry date, exit criteria, and exit date as defined by the Stant SQE Establish Early Production Containment stations, which must be off-line, separate, an independent check from the normal manufacturing process and located at the end of the process. Additional, or when more effective, in-process containment stations may be utilized and must be documented and approved by the Stant SQE Identify additional inspections, testing, and dimensional checks required at the Early Production Containment station based on Key Product Characteristics (KPCs), Part Quality Characteristics (PQCs), critical measurements points, high RPN and/or issues identified during product and process development. Train personnel relative to the standardized work performed at the Containment stations. Establish a reaction plan for single defect Implement an audit process of the Containment utilizing all levels of management (layered audit) to ensure conformance to the Pre-Launch Control Plan. Include any subcontractors in the validation process Submit data to the Stant SQE for all KPCs, PQCs, and critical measurement points

5.5.3 Early Production Containment requires the development of a Pre-Launch Control Plan that is a significant enhancement to the production control plan and, identifying additional controls, inspections, audits, and testing to ensure capability and conformance and raise the confidence level that all products shipped will meet requirements. The plan should consider:

Increased frequency/sample size as stated in the Production Control Plan.

Verification of packaging and label requirements

Verification of the effectiveness of error proofing

Immediate implementation of containment and irreversible corrective action when non-conformances are discovered in the Early Production Containment area or at the receiving location.

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5.5.4 Document the Pre-Launch Control Plan using the Control Plan format referenced in the AIAG Advanced Product Quality Planning and Control Plan Reference Manual. The Pre-Launch Control Plan is not a substitute for the Production Control Plan, but, is an addition to the Production Control Plan and is used to validate it.

Document additional inspections, functional testing, and dimensional checks required at the Early Production Containment station or in process check stations on the Control Plan

Document inspection work instructions for the Containment station to ensure standardized work.

Document evidence of execution and validation of the control plan. The data must be readily available for review by the Stant SQE.

Document problem solving for both internal and customer quality concerns utilizing customer acceptable format: including problem description, root cause, irreversible corrective action with break points and update FMEAs and Control Plans as appropriate.

Early Production Containment must be implemented for a period of time or quantity of parts as specified by the Stant SQE or until the Production Control Plan has been validated, whichever is longer. If time or quantity is not specified, Containment will remain in effect through acceleration or a minimum of 4 weeks, whichever is longer. Early Production Containment inspection is mandatory for 100% of all parts required through the Containment period.

To indicate compliance with the Early Production Containment requirements, label 1) Pre-Launch parts with an orange label, 2) Prototype parts will be labeled with a yellow label and 3) Approved PPAP parts with a light blue label , signed by your Senior Staff person accountable to insure proper implementation of Containment.

Early Production Containment inspection may be exited after validating the effectiveness of the Process Control Plan and meeting the criteria listed below. If unable to meet the exit criteria or if Containment inspection continues to identify non-conformances, the process must be continued, taking the necessary containment measures to insulate Stant, until the quality concerns have been resolved to the satisfaction of both parties and the Production Control Plan is validated.

Ship the number of pieces required to meet production requirements as specified for the Early Production Containment period with no problems identified.

If a problem is identified, Containment must remain in effect for a minimum of 4 weeks after implementation of corrective action or through the original Early Production Containment period, which ever is longer.

If the Early Production Containment plan continues to identify non-conformances, the plan must be kept in place until process controls and capabilities have proven effective and the Production Control Plan is validated.

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6.0 Control, Monitoring & Verification of Measurement/Test/ Tooling Equipment 6.1 All equipment provided by Stant or its Customer to Suppliers for measurement, test and tooling activities shall be monitored by the Supplier with respect to the latest product engineering change level for which each piece of equipment is used. 6.2 Stant tooling location record must be submitted and remain on all tools, gages, and assembly equipment owned by Stant or Stant’s Customer. 6.3 The recall, modification, update, verification, return, and/or replacement of all such equipment shall be monitored by Stant. 6.4 All suppliers shall have a documented system in place for monitoring all changes to Stant supplied measurement and test equipment. The system shall include an annual verification procedure, which shall include confirmation of current revision levels of all equipment supplied by Stant. 6.5 All gages, tooling and fixtures are to be maintained in working order with documented Certification Date records. These records will be maintained and available for Stant’s review. 6.6 The Supplier is responsible and financially accountable to maintain, at Stant’s acceptable level to ensure that these items can verify and/or produce product quality in the production levels required, (annually calibrate, if appropriate) all Stant supplied measurement test equipment, gages, fixtures and tooling. Design intent shall be maintained. 6.7 Routine maintenance includes, but not limited to, regular cleaning and upkeep, replacement of worn parts (i.e. springs, ejector components, switches etc.), and parting line and locking surface maintenance. 6.8 The supplier must notify Stant Purchasing or Quality Engineering Department immediately of tooling that is not capable of product quality or capacity. 7.0 Vendor Material Inspection Report (Refer to Appendix D for VMIR Form) 7.1 A VMIR may be issued for Supplier Caused:

Part or Material Nonconformances at any time through the life of the part; Packaging Nonconformances (including labeling problems); Shipping problems; Quality of service problems (as described in the applicable service contract); Warranty claims made from customers;

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Engineering problems (for Suppliers that are design responsible); Process Nonconformities (including failure to communicate in a timely manner, failure to follow Stant-prescribed procedures, or failure to meet deadlines);

7.2 Lot Audit/Lot Acceptance Process VMIR A Quality VMIR should not be issued when a Nonconformance has been detected and reported by the Supplier or a third party during the Lot Audit/Lot Acceptance process. A Quality VMIR and Controlled Shipping may be issued, however, for: (i) repeat Nonconformances detected during the Lot Audit/Lot Acceptance Process; or (ii) Nonconformances that are built into vehicles or that cause a Major Disruption.

Costs incurred by Stant (e.g. sorting, rework) will be charged to the Supplier in any instance.

Types of VMIR Stant Satisfaction VMIR A “Stant Satisfaction VMIR” may be issued when Stant detects any Nonconformity caused by a Suppliers action or inaction (excluding pricing or commercial issues).

Nonconformances that may result in a Stant Satisfaction VMIR include, without limitation:

Failure to make required communications

Failure to meet deadlines or other responsiveness and timeliness issues (i.e. APQP Program Management)

Failure to follow required procedures

Failure to honor promised corrective action

Note: A Stant Satisfaction VMIR may be issued with or without reference to a part number.

Indirect VMIR

An “Indirect VMIR” may be issued to document a problem caused by a non -production Supplier (e.g., Suppliers of tooling, equipment, or repair parts) including scheduled work activities that cannot be completed due to the Supplier’s failure to meet delivery requirements.

Packaging VMIR A “Packaging VMIR” may be issued for a Supplier Caused packaging Nonconformance that does not result in part damage or affect part salability.

Nonconformances that may result in a Packaging VMIR include, without limitation: Failure to secure part or material in a container;

Failure to adequately secure a container in a carrier vehicle;

Inadequate container design or fabrication;

Damage to a container from improper handling;

Incorrectly built, mixed pallets; or failure to properly label that does not affect part identification;

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Part or container labeling issues that affect part identification;

Failure to design a proper container that causes part or material damage

Quality VMIR A Quality VMIR may be issued for a Supplier Caused Nonconformance.

Issues that may result in a Quality VMIR include, without limitation, problems with: Appearance; Dimensions; Welds; Finish, (e.g., burrs or flash); Contamination; Coating; Laboratory and metallurgy specifications; Machining; Functions; or Part packing.

Shipping VMIR A “Shipping VMIR” may be issued for Supplier Caused shipping or schedule -related Nonconformances.

Nonconformances that may result in a Shipping VMIR include, without limitation:

Failure to meet schedule requirements

Failure to meet documentation requirements (e.g., missing or inaccurate shipping documents);

Problems with electronic communications

Premium shipment issues, (e.g., prepayment, coordination, excessive use) Warranty VMIR

A “Warranty VMIR” may be issued for Supplier Caused Nonconformances detected after parts are shipped to our customers that caused a warranty or a production spill.

Supplier Initiated VMIR The Issuing Location may categorize a VMIR as “Supplier Initiated” if the Supplier notified Stant of a possible Nonconformance before Stant identified the problem.

Immediate action shall be taken in the event that a Supplier has reason to believe that a nonconforming product condition exists. Contact shall be made by a telephone call to the receiving Stant Plant, or a designated Stant associate.

If parts or materials have not entered or affected Stant’s production process, and have not impacted the workstation, no VMIR is required.

Ramifications of Supplier Initiated VMIRs Costs incurred by Stant (e.g., sorting, reworking) may be charged to the Supplier.

The Supplier’s PPM calculation will include only the actual quantity of Nonconforming parts identified on a Supplier Initiated VMIR.

7.4 Supplier Performance System

A VMIR may be issued by Stant immediately after a Supplier Caused Nonconformance is verified.

English is the preferred language for all fields in the VMIR system.

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Line Accumulation VMIRs should be entered only after the full impact and the monthly quantity is available to the issuer. When it is appropriate, the VMIR may be written with the first occurrence and adjustments made as additional Nonconformances are found.

Problem Identification VMIRs should be described in sufficient detail in the VMIR system. Each VMIR should include the following information where applicable: 1) Part Number or “NPN”, if applicable; 2) Problem magnitude (e.g. Major Disruption) and reason for classification; 3) Whether Supplier notified Stant before material was received by Stant; 4) Whether VMIR is internal or external; 5) Quantity of problem parts found; 6) Area/Shop/Line Location of problem parts found

Verification of Responsibility

The Issuing Location should verify that the Nonconformance was Supplier Caused before issuing a VMIR and should use appropriate expertise and resources (e.g., lab test results, dimensional checks) to verify the Nonconformance. If possible, the Issuing Location should attempt to contact the Supplier by telephone before issuing a VMIR. The Issuing Location should notify the Supplier of the Nonconformance and discuss immediate containment actions.

Whenever possible, the Supplier must participate in identifying and verifying Nonconformances. If relevant evidence to support problem solving, such as the part, photograph, sketch, or marked drawing is not available, the VMIR should be deleted within 7 days from VMIR issue date.

Suspect Material

The Issuing Location should gather and quarantine Suspect Material, considering the lot number, run date, ship date, or other type indicators that would help isolate the problem to its smallest logical batch. The Suspect Quantity does not include product in transit. The Issuing Location should promptly return Suspect Material if requested by the Supplier. The Supplier will have 5 days to provide a Return Material Authorization for Suspect Material to avoid potential scrapping of the material by the plant.

Identification of Quantities for the VMIR When a VMIR is issued to a Supplier, the Issuing Location should accurately record on the VMIR the quantity of Suspect Quantity and the Checked Quantity. When sorting is performed in the plant, the Supplier, or third -party sorter should provide corrections to the quantities entered in the VMIR. This correction will be entered promptly, to accurately reflect the VMIR conditions.

VMIR Resolution

A VMIR is identified as “issue closed” after Stant has moved it from “open or rejected” status to 8D approved status. The Issuing Location should close the VMIR issue within 15 days of receiving an acceptable final response from the Supplier and verifying the corrective action.

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Corrections to a VMIR If any information in a VMIR is found to be inaccurate, the Issuing Location should ensure that corrections are made. Corrections may only be made while the VMIR is open unless an appeal is pending. If a Supplier contests any information in a VMIR, the Issuing Location should assist in investigating the details and then entering the correct information, where applicable. Appeals by the Supplier must be directed to the Supplier Quality Management or Materials Management at the Issuing Location.

Supplier Requirements General

The Supplier must promptly notify Stant whenever Suspect Material has been shipped.

Problem Identification The Supplier must provide proactive participation in problem identification, if requested.

7.4.2 Initial Response

Within one business day of VMIR issuance, the Supplier must provide an initial response comprised of the following:

Initiate immediate and ongoing containment actions to prevent further shipments of Nonconforming material. Containment must be extraordinary, visible, and temporary. Containment should include data gathering and analysis. Initiate sorting and rework as an immediate containment action at Stant location. Sorting or rework may be performed by Stant, Supplier, or third-party sort/rework company, at the Supplier’s expense. Disposition of the Non-conforming materials at the Stant Location and in transit. The Supplier must analyze the entire delivery chain to identify any Suspect Material at any Stant Location or in transit to a Stant Location. Identify the date of the next shipment of conforming parts. Include how it will be identified. The conforming -material ship date should apply to all Stant Locations including service. Provide the name, title, and phone number of the Supplier representative providing the above information. Document in the containment section of the VMIR every location affected by the corrective action. Include the names of people contacted. Note: Stant generally will not measure a Supplier on Initial Response timeliness. However, if an Initial Response is not received by Stant within one business day after VMIR issuance, a Stant Satisfaction VMIR may be issued. The Supplier must promptly complete appropriate problem -solving activities. At a minimum, the Supplier must conduct a “5 phase,” including a “5 why” root -cause analysis.

Why did the manufacturing process not prevent this failure?

Why did the quality process not detect this failure?

Why did the planning process not predict this failure?

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7.4.3 Final Response

The Supplier must provide a final response within 10 calendar days after a VMIR is issued. The final response must include, at a minimum:

Containment actions taken; Methods used to evaluate the success of the containment; Root cause, including method used to determine root cause; Corrective and preventive action implemented (error proofing) including rationale used in evaluating alternatives; Elements of the proposed implementation process; Contact information for those assigned responsibility for actions taken; How the success of proposed actions will be evaluated; How the solution will be institutionalized with respect to other similar processes; Dates when revised process Failure Mode and Effects Analysis (FMEA) and control plan will be available for Stant review. If no revisions were made, enter the current day’s date and state “no revisions made”; Identification of the responsible tier -2 Supplier, if applicable. This does not absolve the tier -1 Supplier of any responsibility, but documents where the issue may have originated; Identification of the directed -buy tier -2 Supplier, if applicable. This does not absolve the tier -1 Supplier of any responsibility, but documents where the issue may have originated; Note: Stant may measure a Supplier’s final response for timeliness and whether adequate thought and investigation was given to the problem. If adequate response cannot be given in 10 calendar days, the Supplier must notify the Issuing Location. Failure to respond without prior notification may result in issuance of a Stant Satisfaction VMIR. 8-D Verification In order to verify the effectiveness and appropriateness of the implemented permanent-fix Corrective Action, the next shipment must be confirmed to be defect free.

VMIR Closure With the acceptance of the Supplier’s 8-D response and verification of the 8D effectiveness, the VMIR will be designated as “Issue Closed” status. Total closure of the VMIR is pending closure of any commercial issues (i.e. charge backs). Stant reserves the right to request additional information and procedures during the VMIR process that are not covered in these guidelines.

VMIR Appeal Process The Supplier may appeal the issuance of a VMIR or specific information contained in a VMIR. To appeal, the Supplier must provide objective evidence, in writing, to the Issuing Location, demonstrating the rationale for the appeal. Any request to change a VMIR due to error must be submitted within 10 calendar days after the VMIR was issued.

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If the Issuing Location and the Supplier do not agree, and the Supplier wants to pursue further appeal, the appeal must be addressed to the Vice President of Purchasing, Supply Chain Management and Materials.

7.5 Cost Recovery Process

Stant uses a Cost Recovery Process to recover costs incurred as a result of Supplier’s Nonconformance on issues occurring in Stant location (in plant), for issues discovered after shipment to our Customers (Customer rejections), and issues discovered after use by Consumers (Warranty issues)..

In-plant Cost Recovery requests should have adequate supporting documentation regarding the issue. Typically, man -hours, downtime, or units impacted, investigation costs, and various administrative costs may be used to determine the amount of cost recovery.

Customer Rejection Cost Recovery requests should have adequate supporting documentation regarding the issue. Typically, Customer chargebacks, man-hours, downtime, outside sorting costs, travel and expenses, premium freight costs, and various administrative costs may be used to determine the amount of cost recovery.

Warranty Cost Recovery requests should have adequate supporting documentation regarding the issue. Typically, part cost, vehicles, dealer mark-up, standard labor hours, investigative costs, and various administrative costs may be used, along with the total number of claims, to determine the amount of cost recovery.

Stant should provide, when using a Cost Recovery Request, a detailed explanation of any additional costs.

Cost Limits and Restrictions Actual/incremental costs will be determined by each initiating location. Man-hours will be charged at a rate of $XX dollars per hour. This does not apply to Customer Rejections or Warranty Cost Recoveries. Downtime, within Stant plants that lasts for 5 minutes or longer will be charged at $XX dollars per minute. Downtime less than 5 minutes will be recorded in a cost recovery but will not generate an actual request for payment. This does not apply to Customer Rejections or Warranty Cost Recoveries. Stock-Out charges will be assessed based on man hours expended to retrofit units. This does not apply to Warranty Cost Recoveries. Premium freight is to be covered by the originator in the amount of costs incurred. This does not apply to Warranty Cost Recoveries. Other costs associated with the impact of Nonconformance, including, without limitation: Expenses incurred by Stant associates for travel to the Supplier Location; Re-billing of the Supplier-caused costs attributable to Major Disruptions; Incidental laboratory, machining, or retrofit costs; and Re-scheduling of orders. Costs that are ineligible for a Cost Recovery request include, without limitation: Excessive or unreasonable man-hours Manufacturing and Service Part Cost Recoveries less than US $ 50,000, with no Supplier response, may be set off from Stant’s payables to Supplier, after 10 working days from issuance of the Cost Recovery.

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For Warranty Cost Recoveries the labor rate is $75 US per hour and $500 per minute of downtime.

Plant VMIR Admin $ Man-hour $ Downtime $ Sorting $

Connersville US$350.00 US$45.00 US$1000/hour US$80.00

Pine Buff US$350.00 US$45.00 US$1000/hour US$80.00

Romeoville US$350.00 US$45.00 US$1000/hour US$80.00

Romeo US$350.00 US$45.00 US$1000/hour US$80.00

Tijuana US$125.00 US$15.00 US$400/hour US$30.00

Asan US$75.00 US$10.00 US$250/hour US$20.00

Karvina US$125.00 US$15.00 US$400/hour US$30.00

Suzhou US$75.00 US$10.00 US$250/hour US$20.00

Cost Recovery Response

Appeal Process

The Supplier may appeal a Cost Recovery request as follows:

When issuing Location and the Supplier do not agree, and the Supplier wants to pursue the appeal process, the appeal should be directed to the Quality Manager at the Issuing Location.

Appeal process should be completed within 6 weeks from the date the Cost Recovery was issued.

Supplier shall initiate any appeal within 10 calendar days of the Cost Recovery request by contacting the Issuing Location and providing objective evidence. Failure to reply or appeal within 10 calendar days will result in automatic debit of the Cost Recovery amount.

Supplier must provide objective evidence that the charge is inaccurate. If Stant and Supplier agree on the revised cost, the cost recovery request shall be amended by the Issuing Location and the revised amount shall be debited or invoiced to the Supplier. If no agreement is reached between Stant and the Supplier, the Supplier may then appeal to the Stant buyer. If the Stant buyer and Supplier agree on the revised cost, the Cost Recovery request shall be amended by the Issuing Location and the revised amount will be debited or invoiced to the Supplier. If no agreement is reached within 6 weeks of issuance of the Cost Recovery request, and Stant has not approved an extension, the original cost request may be debited from or invoiced to the Supplier. All Cost recovery equal to or greater than US $50,000, where the agreement between Issuing Location and Supplier can not be reached, shall be approved by Vice President of Purchasing, Supply Chain Management and Materials before debit to the Supplier.

Supplier Measurements General This section defines the Supplier Measurements used by Stant to monitor Supplier quality. These measurements may be used in Sourcing Metrics and Quality Performance Reports to help guide future business decisions, and help direct resources to the appropriate areas that require additional focus.

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Major Disruption Stant may track and report (based on VMIR issuance) Supplier-caused Major Disruptions for each Supplier location on a weekly basis.

The number of Major Disruptions is the most important measure of Supplier quality.

Parts Per Million (PPM)

Stant may track a PPM for each Supplier on a monthly basis.

Incidents of Controlled Shipping

Stant may track the number of incidents of Controlled Shipping (Level 1 and Level 2) on a weekly basis.

VMIR Measurements

Stant may track the number of VMIRs for each Supplier location on a weekly basis.

Stant may track the VMIR “Implementation Time” on a monthly basis.

Stant may track the VMIR “Closure Time”.

S.Q.I.M.

More than 4 Quality VMIRs issued to the same Supplier within 3 consecutive months, will force a Supplier Quality Improvement Meeting (SQIM). The SQIM will require that those at an Executive level within the Supplier’s organization be present to discuss the actions that will be required to improve performance.

Return Material (Product) Authorization 7.7 The Supplier has 5 working days to submit a Return Material Authorization (RMA) for the non-conforming material. If a RMA is not received within this allotted time, the material will be returned to the Supplier without approval and billed back accordingly. 7.8 Non-conforming material/product shall always be returned at Supplier’s expense. 7.9 Permanent corrective and preventative action may be requested for the Supplier to eliminate the possibility of future shipments on non-conforming product/material.

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8.0 Sorting Requirements 8.1 If sorting is required at Stant facilities, the Supplier shall be contacted by a Stant designee. 8.2 The Supplier must provide trained associates or employ an approved Third Party Sorting provider. All Suppliers must contact the Supplier Quality Supervisor or Stant designee prior to entering Stant manufacturing facilities. Safety equipment such as earplugs and glasses must be worn at all times in the manufacturing areas. 8.3 The Supplier shall have full responsibility of training either their associates or hired sorting companies to ensure Stant’s quality requirements are being met. Stant expects the Supplier to supervise the sorting and inspection activities during a sort. However, if the Supplier fails to respond, or in their absence Stant representation is required for sorting and inspection, the following charges will apply. 8.4 Stant appointed associates will only perform sorting activities at Stant or at a Customer’s facility to maintain immediate production requirements at a charge to the Supplier of $80.00 per hour, per person (according to the schedule in 7.4). If the Customer requires Stant representation throughout the sort, they will be billed at the established rate. 8.5 Travel time will be charged to the Supplier at a man-hour rate of $45.00 per hour per person (according to the schedule in 7.4). All other travel expenses will be billed at cost. 8.6 Stant reserves the right to determine the support required for the containment activities. 8.7 The Supplier must ensure workers representing their company have the necessary skills, training and tools to perform their job/task in a safe and timely manner. 8.8 It is the Supplier’s responsibility to provide evidence of Bureau of Workers Compensation coverage for the workers representing their company while at Stant in the event of an accident/injury. 8.9 The Supplier’s associate shall complete all the required sort sheet documentation as directed by Stant Quality accurately and completely. Note 1: Stant will not permit a supplier to perform rework on-site unless approved by the QE. Note 2: For sort activities in North America, the Supplier must select from the list of Approved Third Party Sorting companies in Appendix Q – or obtain approval In advance for a local provider.

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9.0 Permanent Corrective and Preventive Action Request for Corrective Action 9.1 A written corrective action is required for production non-conforming component, product and material. The corrective action document should be consistent with 8-D methodology. All corrective actions must be reviewed and approved by Quality. 9.2 Initial written response including containment is required within 24 hours. Short-term corrective action is required within 48 hours of receipt of samples if available. A complete corrective action document must be submitted for review within ten calendar days from receipt of the Vendor Material Inspection Report (VMIR) (see Appendix D), and samples if available. The permanent corrective action may take longer than ten days to implement. That’s acceptable if it is planned and dated on the corrective action report for verification, and the containment plan extends through the implementation date. 9.3 All suspect products must be immediately contained, screened, and certified until the corrective action has been approved and verified effective. Effectiveness of the corrective action shall be verified upon agreement between Stant and the supplier. 9.4 For critical and significant characteristics, containment must continue until such time the capability indices are within limits. All certified shipments must be marked with a descriptive clearly legible green label attached to the side of the container with the following information. CERTIFIED MATERIAL Reason for Screening Date Screened VMIR# . 9.6 If additional defects following the permanent corrective action implementation are detected for the same failure mode, a new VMIR will be issued and the same containment measures will be imposed. Additionally Stant may impose controlled shipping. 10.0 Controlled Shipping If the supplier is unsuccessful in eliminating or containing nonconforming material at the suppliers’ location then it will be up to Stant Quality to determine if Controlled shipping is required to control the shipment of nonconforming material. Controlled Shipping is a demand by Stant that a Supplier implement a redundant inspection process to sort for a specific Nonconformance, while implementing a root -cause problem -solving process. The redundant inspection is in addition to the normal controls. The data gathered at the redundant inspection is critical to measure the effectiveness of secondary in -system inspection, and the corrective actions that have taken place to eliminate the Nonconformance.

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10.1 Two levels of Controlled Shipping exist:

Controlled Shipping Level 1 includes the problem -solving and redundant inspection processes. The Supplier’s employees at the Supplier’s location can enact the inspection process in order to isolate Stant from receiving any nonconforming material.

Controlled Shipping Level 2 includes the same process as Level 1 with an additional third party representing Stant’s interest specific to the containment activity. The third party may be selected by the Supplier and approved by Stant (see list Appendix Q), and will be paid for by the Supplier.

10.2 The key steps of this process Stant makes the determination whether the supplier can effectively correct the nonconforming material situation through the corrective action process and isolate the customer from the problem. One or several of the following issues may be considered for implementation of Controlled Shipping: Repeat concerns Duration and severity of the problem Incapable processes Quality problem at Stant customer location Inadequate containment and/or resolution of non-conformances via the corrective action process Major disruptions Based on the considerations above, Stant chooses whether Level 1 or Level 2 would be appropriate. Input for this decision may be provided by the Quality Manager and other appropriate engineering resources. Note: It is the discretion of Stant, depending on the severity of non-conformance, to go directly to Controlled Shipping – Level 2. Communication to the supplier of action (Level 1 or Level 2) to be taken, including exit criteria shall be provided (see form in appendix E & F). A meeting with the supplier to provide a full explanation of the containment area, deliverables, and the roles and responsibilities of the involved parties shall be initiated by Stant. 10.3 Controlled Shipping (CS1) Level 1 Process The Stant Quality department or a Stant designee notifies the supplier by calling the appropriate staff level member at the suppliers’ location. This is the official notification of controlled shipping status.

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Stant also communicates to the supplier in writing defining the problem, the need for additional inspection, irreversible corrective action, containment efforts, and the exit criteria. (See Appendix E for the standard letter) The intent of the controlled shipping containment guidelines is to outline and describe a rigorous process that insulates Stant from the receipt of nonconforming parts and materials. 10.4 Controlled Shipping Containment Guidelines The containment area must be highly visible and properly lighted, equipped, well defined and efficient material flow including clearly identified areas for incoming and outgoing parts/material. Repairs will not be done in the containment area. The containment area must be independent of the supplier production process. Information boards must prominently display non-conformances, measures, action plan status, and results of the containment activity. Charts must be updated on a daily basis and reviewed by management. Problem solving must be formal, data driven and documented. Containment associates must have available to them the proper job instructions, quality standards, boundary samples, tools, and equipment, etc. Associates must be properly trained. 10.5 The Supplier Shall: Initiate the sort activities. Identify each component/part with a unique witness mark as agreed upon by Stant as proof of being certified by CS1. Apply “CS1” identification on or near each shipping label on every container being shipped to Stant. This identification information must be provided in advance of the first shipment. Establish and track breakpoints of nonconforming material. Review the results and ensure that corrective actions taken are effective, or plan required changes. Communicate results of sort activities to Stant Quality in an agreed upon format and frequency. Meet the defined exit criteria. Exit criteria shall be established by incorporating the agreed measurements that verify that the root cause is identified and that appropriate irreversible corrective actions were implemented and effective.

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Request exit from controlled shipping and provide supporting documentation on performance to the Stant Quality or designee. Stant evaluates if exit criteria have been met, and communicates in writing, that the supplier is no longer considered in Controlled Shipping. 10.6 * Controlled Shipping (CS2) – Level 2 Process Stant notifies the supplier of Controlled Shipping – level 2 by calling the appropriate Quality Manager or designee at the suppliers’ location. This is the official notification of controlled shipping status. Written communication confirms this conversation (See Appendix F). Written communication is sent from the Stant Quality Manager, and/or other appropriate associate(s), to the supplier’s Quality Manager describing: * The action being undertaken * The non-conformance(s) * The inspection checks required * Exit criteria required to be achieved The scheduling/execution of a Level 2 kick-off meeting with the supplier’s management to provide a full explanation of the containment process and containment area, deliverables, and the roles and responsibilities of the involved parties will be initiated by a Stant Supplier Quality Manager or designee. A Stant Supplier Quality designee shall facilitate the Kick-off meeting. 10.7 The Kick-off Meeting Describe the purpose of the meeting: Stant has determined that Controlled Shipping – Level 2 is being implemented. The production source is out of control and the nonconforming part/material must be isolated. Irreversible corrective action must be identified (documented), approved, implemented, and verified for effectiveness. * Review the process flow diagram * Describe the problem(s) * Define the roles and responsibilities of every party * Establish the controlled shipping plan details * Define the exit criteria * Define the communication plan Attendees for the Kick-off Meeting to include the minimum: Stant Quality Manager and/or Quality Designee Third Party representative Stant Buyer (if requested)

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Supplier’s Quality Manager Plant Quality Engineer, Quality Associate, Operation and/or Manufacturing Manager Stant must approve which third party will conduct the Level 2 containment activities. 10.8 Third Party: Provide facility (when required), associates, and tools to perform the re-inspection activity and records results. They will identify each component/part with a unique witness mark as agreed upon by Stant, to identify as certified product. Apply CS2 identification on or near each shipping label on every container being shipped to Stant. Provide instruction documents to perform re-inspection activity. Provide documentation to the supplier and the Stant Quality on the progress of the re-inspection activity. · Supplier: Contacting and issuing a purchase order to the third party for Controlled Shipping – Level 2 activities. The supplier is responsible for all costs of the CS third party activity. Provide people to continue performing the inspection activity and recording results for controlled shipping – Level 1 activities and the Level 1 inspection, which takes place during controlled shipping – Level 2. Provide proper layout and instruction documents to perform controlled shipping – Level 1 activities and the Level 1 inspection. Provide proper space and tooling to perform inspection activities, drive permanent corrective actions, and communicate the results of sort activities to Stant in a format and with a frequency agreed upon by Stant. Communicate the action plan, inspection status, and results of problem resolution activities to Stant in a format and with a frequency agreed upon by Stant Quality. 10.9 Exit Criteria: Must include clear and measurable results, be specific and relevant to the nonconformance issues being addressed, provide documentation to demonstrate corrective actions taken are permanent and remain constant for each nonconformance. Ninety (90) days of data from the containment activity will be used when other exit criteria are not defined. A summary, which verifies that the normal production controls are effective for controlling the discrepancy (discrepancies) identified in the controlled shipping activity. The time begins accumulating at the date the containment plan was implemented and submitted for approval.

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Stant evaluates if the exit criteria have been met. If appropriate, Stant communicates in writing that the supplier is no longer considered to be in controlled shipping and controlled shipping activities can cease. Suppliers cannot be removed from controlled shipping status or cease the controlled shipping activities without documentation from Stant that authorizes the removal. 11.0 Requests for Supplier Change When the Supplier wants to make modifications to the product, the effect of the modifications (function and performance, durability, manufacturing etc.) is to be clarified jointly with Stant. This is done with the aid of the Supplier Change Request Form (Appendix G) being submitted to Stant for approval. The form must be submitted to the appropriate Stant Buyer. Modifications carried out are to be recorded in accordance with the procedures established in the respective documents (drawings, bills of material and similar) kept up to date and transmitted to Stant after each modification. Stant’s Supplier of Record is responsible for communicating changes requested by their Sub-Supplier. Changes in manufacturing processes employed by the Supplier (or one of their Sub-Suppliers), which, for example, can lead to changes in the product, are to be submitted to Stant for approval prior to their implementation. Suppliers are required to use the Supplier Change Request Form (See Appendix G). After joint appraisal of the relevance, the measures to be adopted and required by Stant shall be planned and carried out by the supplier. All changes must be governed to AIAG PPAP Manual. 11.2 Request for Deviation Process deviations are requests to use a different or modified manufacturing method. Material deviations are requests to use material that does not meet a particular specification or requirement. A common example is use of parts that have not been PPAP approved. Any supplier can request a deviation. Supplier requests for deviations must be submitted to the receiving Stant plant(s)’ Quality Dept. See Appendix “H”. Generally a sample must be provided by the supplier to perform a trial to assure fit and function and other requirements as determined by Stant. It is the responsibility of the supplier to ensure that the deviation request is properly completed and outlines exactly all specifics related to the deviated part number, process, material, number of parts, specification etc. Once the request is received and logged, Stant Engineering and Management must review and sign the deviation for approval, where appropriate.

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Deviations shall be for a specified length of time, a specified quantity of material or until a specified date. Stant approval must be obtained for any deviation that affects the final product fit, finish, function or reliability. The approval must be documented on the deviation. Note: Blanket, undated or open-ended deviations will not be permitted. 12.0 Associated Business Conditions 12.1 Stant expects that its employees and our customer’s representatives will have access to supplier’s facilities and records at reasonable times for the purpose of surveys, assessments, inspection of goods and associated control systems. 12.2 Suppliers shall work with Stant detailing cost data as it relates to products for Stant and its customers. 12.3 Processes shall be aimed at nominal values unless otherwise directed in writing by Stant Supplier Quality Manager or designee. It is expected that all goods and services be certified zero defects. 12.4 Suppliers shall maintain accurate records, which show Stant and its customer’s conformance requirements are being met. Documented procedures shall be in place defining responsibilities for records control as outlined within the requirements of ISO 9001:2008/TS 16949:2009. Legal or government requirements prevail. 12.5 Suppliers shall maintain a documented, comprehensive business plan. Development and establishment of goals and objectives, monitoring performance, and adjustments to the plan shall include input from all departments. 12.6 Suppliers are expected to develop and implement a company wide training plan with input from all departments, with appropriate review and approval mechanisms. 12.7 Team building and organized employee involvement groups, working towards customer satisfaction, shall be developed. 12.8 Suppliers shall have documented procedures for assessing, selecting, monitoring and developing their own suppliers, with built-in continuous improvement philosophy geared to customer satisfaction and potential cost reductions. 12.9 Suppliers shall have documented procedures to effectively track and meet all key event dates; e.g. tooling build, prototypes, sample submissions, control plans, etc.

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13.0 Supplier Rating and Development 13.1 The top one hundred suppliers (at a minimum) will be rated on their quality and delivery performance. Stant will issue Quarterly Supplier Performance Reports to assist the supplier in tracking their quality and delivery ratings. 13.2 Stant Supplier Quality Department shall, upon request, assist in the development of improvement projects. 13.3 Stant Supplier Quality, Customer Quality Engineers, Plant Quality Personnel or the Stant Management Team can initiate development projects. 13.4 Participation in Value Analysis/Value Engineering (VA/VE) Process Stant invites its partner Suppliers to work together with us – focusing on key areas for improvement and/or innovation. Utilizing the VA/VE process can produce: Reduction in product variation Improved product quality Cost avoidance on future programs Improved performance Reduced piece cost More robust product development Suppliers who participate in VA/VE activities with Stant will be given additional credit and points on the Scorecard (which, affords more opportunities to be considered for new business, additional business, etc.). Calculating Supplier Performance points:

13.5 A Supplier Score Card System is in place and Supplier performance will be monitored. The key Suppliers will be monitored. Supplier Quality will summarize and distribute the report quarterly to Suppliers who request a copy and those who are in a “Developmental” or “Unsatisfactory” category. The Supplier Score Card and will measure suppliers in five categories:

PPM – 40% of total score. Will be calculated based on the known quantity of rejects after all material has been returned to the Supplier or sorted by the Supplier or the Supplier’s representative. Adjustments may be made to rejected quantity recorded with appropriate documentation.

VMIRs –20% of total score. Each VMIR issued will count against the score in order to properly penalize for multiple issues.

Delivery – 30% of total score. Will be calculated based on the number of on-time shipments as a percentage of total shipments due.

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Premium Freight- 5% of score. Each occurrence of Premium Freight will count against the score.

VA/VE Activities- 5% of score. Participation in VA/VE activities will award the Supplier with additional points. One point will be awarded for each idea submitted.

Supplier Score Cards

13.6 To be effective, Stant must build relationships with suppliers who can consistently meet our needs. The Supplier Score Card is used to do the following:

Recognize exceptional supplier performance

Promote and encourage improved communication on performance issues

Provide objective data for use in supplier management and sourcing decisions

Identify opportunities for continuous improvement.

Delivery Requirements 13.7 Suppliers must establish systems to support 100% on time delivery to Stant. Suppliers must notify their Stant Production Control contact of any delivery problem, prior to the products required delivery date. 13.8 Any shipment received after the purchase order required date shall be counted as a mis-delivery. 13.9 Stant Corporation requires all production Suppliers to use the Stant Supplier Web Portal to retrieve shipment requirements and ASN shipments to each Stant facility they supply. Suppliers are required to have adequate personnel trained at each of their facilities to access and create the required documentation for each and every shipment. .14.0 PACKAGING/LABELING 14.1 These “Packaging Guidelines” have been prepared to assist Stant suppliers in meeting our minimum packaging and handling requirements regarding quality and cost for shipments to all Stant locations. These guidelines apply to all material from prototype to PPAP approved.

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14.1.1 These guidelines are to be used during development of packaging plans prior to submitting a quotation for production parts. 14.1.2 The overall objective of all packaging and transportation is to ensure safety, guarantee part quality as received is the same as the original manufactured condition, maximize both transportation and production efficiency and reduce waste at a minimal cost. 14.1.3 All part quotations are to assume expendable packaging (unless otherwise specified by Stant). Suppliers are responsible for designing their own packaging systems. Stant will assist in developing acceptable packaging systems on request or in certain other circumstances. Stant will assume no responsibility for the supplier’s packaging design or its performance. A copy of the approved packaging form shall be included with all level 3 PPAP submissions with Bar Code Label example. 14.1.4 Suppliers will design packaging for maximum density and quality; and pack, label and ship material under requirements of common carriers in a manner to secure lowest transportation costs. Pack design and parts count (pieces per container/standard pack quantities) shall not vary and containers are to be shipped completely filled except when a release is marked “Final Release” or “Balance Out.” Attention to Lean Manufacturing guidelines should be adhered to, for standard pack quantities. 14.1.5 Suppliers will follow all U.S. and/or Canadian requirements of the Departments of Transportation’s “Hazardous Materials Transportation Regulations”, and also the OSHA hazard communications standard. All suppliers supplying goods to Stant which are considered to be “controlled” under D.O.T. (Department of Transportation) shall be familiar with and conform to all such regulations, for packaging and shipping. M.S.D.S. (Material Safety Data Sheets) shall accompany all shipments from all suppliers. “Controlled” substances shall be maintained in accordance with federal, provincial/state and local laws and regulations. 14.1.6 All expendable packaging materials must be legally and economically disposable. Reuse of packaging materials and/or containers, pallets, and other shipping aids must have prior written approval by the affected activity. 14.1.7 All material must be palletized to permit handling with industrial trucks when sufficient parts are shipped. One full layer of cartons on a pallet is sufficient volume to require that parts be palletized. All containers must be secured to pallets. Parts shall be secured by non-metallic strapping (at least two bands lengthwise and two bands widthwise) or by stretch or shrink film. Polyester and nylon strapping are recommended. No uneven or non-standard layers are allowed, so that pallet may support weight and footprint of another pallet stacked on top of it. 14.1.8 All features/surfaces considered critical to the quality or operation of the part (e.g. sealing surface, bore, etc.) are to be protected from damage, and / or contamination/sediment of rust, dirt, moisture, wood chips, cardboard dust or other debris.

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The supplier must designate a packaging contact for problem resolution on packaging information. Size and Weight Requirements 14.2 Maximum gross weight for manually handled pack is 40 pounds (unless otherwise specified). 14.2.1 Pallet size 48 inches long by 45 inches wide. See 14.4, Pallet Size and Construction. ` 14.2.3 Manually handled expendable container shall be compatible with 48 inch by 45 inch pallet. 14.2.4 Cartons / containers are to be modular to the shipping pallet; cartons are not to overhang the pallet. Containers must be adequately sealed to insure failure does not occur during handling. Stretch Wrapping or Banding to secure loads is required. Plastic banding is preferred, and use of metal should be approved by Stant prior to use. 14.2.5 Maximum load height (pallet + carton) is to be 48 inches. 14.2.6 Maximum weight of any load is to be 4,000 pounds. 14.2.7 Parts should completely fill the container to prevent collapsing. Minimum test load for cartons is 275 pounds. Special Packaging Requirements The Stant blueprint will identify parts that require special packaging beyond the minimum criteria listed above. Stant specifications will be provided as required for these special packaging situations such as layering, bagging, cell pack, tubes, etc. Pallet Size and construction 14.4 Desired truck mode expendable footprint (load) to allow two (2) wide loading in highway trailers is: Load Length: 48 in. +0, -1. Load Width: 45 in. +0, -1. 54 in. length x 44 in. width is recommended for rail shipments. Note: Size is the outermost dimension of length and width of a pallet, container, or container system, as received. Some receiving locations may require extensive use of specific sizes/designs as directed by Stant. 14.4.1 Pallet dimensions state the length of the notched 2" x 4" stringer first and the width of the deck boards and bottom three tie strips second.

37

Box and corrugated container manufacturers’ standard practice generally is to state the larger dimension first. 14.4.2 Pallets must be constructed with sufficient strength to last until empty at our plants. Nailed construction is required. Minimum 2-1/4 in. (57 mm) long, four-flute helical hardened nails are recommended. 14.4.3 Stringer style, non-reversible construction is required with the 3.5 in. (90 mm) minimum height fork openings for primary entry. 14.4.4 Four-way entry must be provided on stringer style pallets by 2 in. x 9 in. (50 mm x 230 mm) fork openings on minimum 18 in. (460 mm) centers (24 in. (610 mm) preferred) – including thickness of bottom tie strips of the pallet runners. In special cases, it may be necessary to increase the bottom tie thickness to accommodate receiving plant application of thicker forks. Notes: Pallet base to be identified by pallet number. Wood pallet must have the pallet size on the runner in “1” minimum characters 48" x 45". Three stringers 1 1/4" x 3 5/8" x 48". Top deck – eight boards 1/2" x 3 3/4" x 45" (evenly spaced). Bottom deck – three boards 1/2" x 3 3/4" x 45". Bar Code Labeling Requirements 14.5 Applies to all suppliers who supply to North American Stant Manufacturing sites

14.5.1 Stant will require all suppliers to provide bar code labels on each package (container) shipped to all Stant facilities. In addition, a Master Shipping label must be applied to each shipping skid (pallet). Stant has adapted the AIAG B-10 Trading Partner Labels bar code standards. 14.5.2 The size of the label shall be 4” by 6.5”. The adhesives used for labels on expendable containers must be pressure sensitive and applied wrinkle free. LABEL CHARACTERISTICS 14.6 Data Area and Short Titles There are eight data areas on each label: part number, quantity, supplier, serial, purchase order, lot number, revision level and description. Each data area is separated by thin lines and contains the short title. If area contains a bar code, the data identifier for that data area is located directly under the short title and enclosed in parenthesis.

38

Data Identifiers There are six bar code data areas. The data identifier code for the data area is in the first position of each bar code symbol. The following identifiers are required for the data areas: These bar code fields are mandatory P – STANT PART NUMBER Q – QUANTITY K – PURCHASE ORDER NUMBER T – LOT NUMBER S – SERIAL NUMBER 14.6.2 Label Data Areas (see Appendix Q) PART NUMBER (Mandatory) The bar code symbol of the part number must be directly below the human readable characters. It is fifteen characters maximum plus the data identifier. Minimum bar code height is 0.5” high (13 mm). The human readable characters shall be a minimum 2 LPB (0.40” - 11 mm) and bold. 14.6.3 Quantity (Mandatory) The bar code symbol of the quantity must be directly below the human readable characters. It is six characters maximum plus the data identifier. Minimum bar code height is 0.5” high (13 mm). The human readable characters shall be a minimum 2 LPB (0.40” - 11 mm) and bold. 14.6.4 Serial Number (Mandatory) This is a 14-digit serial number, first 5 positions are the supplier code, plus a 9 position unique serial number assigned by the supplier. For human readable only the dash must be present between the supplier code and the serial number. This number should not be repeated to Stant within a thirty-six month period. The bar code symbol of the serial number must be directly below the human readable characters. It is 14 digits plus the data identifier. Minimum bar code height is 0.5” (13mm) high. The human readable characters shall be a minimum 4 LPB (0.2” – 5 mm). 14.6.5 Purchase Order Number (Mandatory) The bar code symbol of the purchase order number must be directly below the human readable characters. It is ten characters plus the data identifier. Minimum bar code height is 0.5” (13 mm) high. The human readable characters shall be a minimum 2 LPB (0.40” - 11 mm). All shipments must have a purchase order number under which the items were purchased.

14.6.6 Lot Number (Mandatory) The bar code symbol of the lot number must be directly below the human readable characters. It is four characters plus the data identifier. Minimum bar code height is 0.5” (13 mm) high. The human readable characters shall be a minimum 4 LPB (0.2” - 5

39

mm). The lot number will be the Julian date plus the year ending digit. The lot number for container labels will reflect the date product was manufactured. The Master Shipping Label lot number will reflect the date of shipment. 14.6.7 Engineering Change Number (Mandatory) This contains no bar code. The human readable characters shall be a minimum 4 LPB (0.2” - 5 mm) and are maximum 3 characters long. 14.6.8 Description (Mandatory) The description of the part number is represented in human readable only. The characters shall be a minimum 4 LPB (0.2” - 5 mm) high. 14.6.9 Bar Code All bar codes shall be Code 39 and conform to the AIAG B-10 Standards. There shall be no leading spaces and data is left justified. There is no check character used. The ratio of wide elements to the narrow elements should be 3:1. All bar code symbols shall have leading and trailing quiet zones with minimum widths of 0.25” (6.3 mm). 14.7.0 Label Placement The container label must be placed in the upper half of the box. Each box must have identical labels on two adjacent sides. The Master Shipping Label must be placed in the upper middle of the pallet stapled to a container box. It must also have identical labels on two adjacent sides of the pallet. If plastic shrink wrap is used, the label must be applied under the wrap and visible. 14.7.1 Master Shipping Label Each pallet for a shipment must have a Master Shipping Label applied to it. This label will identify the total contents of a pallet per part number. If the pallet contains multiple part numbers, an additional Master Shipping Label must be applied to pallet for each part number. The lot # on the Master Shipping Label will reflect the shipment date in the same Julian date form as the container labels. The label design is the same as the container labels except it will have the total quantity per part per skid. It is applied to a sheet of white 8.5 x 11in. paper with the title “MASTER LABEL” at the top. The character shall be a minimum 2 LPB (0.40 - 11 mm) and bold. 14.7.2 Suppliers to European plants should use AIAG B-16 Global Transport Label Standard for the Automotive Industry Specifications. Additional Labeling Requirements: In certain situations it is necessary to place additional labels on the box and skid to identify the parts and keep them segregated from similar parts. Prototype, pre-launch, engineering changes, certified stock are examples of the need for additional labels.

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Below are the requirements for each situation: Prototype parts: A fushia 5”x7” label with the word “PROTOTYPE” in black bold letters shall be used to identify any prototype shipment. Where possible this label shall be placed with the bar code label for each box and master label. Pre-launch: Any parts submitted for pilot runs or prior to full PPAP approval are considered Pre-launch. An orange 5”x7” label with the word “PRE-LAUNCH” in black bold letters shall be used to identify any pre-launch shipment. Where possible this label shall be placed with the bar code label for each box and master label. Engineering changes: It is necessary to identify the material whenever there is a change to the product or process at either the supplier’s or Stant’s location. If the parts are not approved they are to be considered Pre-Launch. Upon PPAP approval, please follow Early Production Containment process and use a Lt Blue 5”x7” label with the word “PPAP approved” in black bold letters. Where possible this label shall be placed with the bar code label for each box and master label. Certified stock: In order to identify material that has been inspected beyond the scope of the control plan (100% sorting, retest, etc.) for a quality issue it will be necessary to add a green dot that is at least ½” in diameter to the bar code label of each box and the master label. Depending on the situation you may be required to place additional identifiers on each box and master label. The Plant Quality group will advise the supplier of any additions or changes to this requirement.

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15.0 Appendices List A) Stant Supplier Acknowledgment B) Supplier Portal Form C) Supplier’s Personnel Data Form D) Vendor Material Information Report (VMIR) E) Controlled Shipping – Level 1 letter F) Controlled Shipping – Level 2 letter G) Supplier Change Request Form H) Request for Deviation/Waiver I) General Terms and Conditions J) Initial Production Parts Procedure (IPP) K) Initial Production Parts Labels L) Feasibility Sign-Off M) Technical Review Checklist N) PPAP Check Sheet O) Bar Code Example P) Approved Third Party Sorting Providers Q) NAFTA Certificate of Origin

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The following documents are fill-in forms, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will distort the document. Appendix A Revision: 10

SUPPLIER MANUAL TENTH EDITION ACKNOWLEDGMENT

I have received, reviewed and agree to comply with the Stant Supplier Manual, Tenth Edition. NAME: TITLE: (GM/Sales Director /Sales manger): COMPANY NAME: ADDRESS: CITY: STATE: ZIP: DATE:

SIGNATURE:

Notes: PLEASE EMAIL TO: suppliermanual@stantinc.com

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Appendix B distort the document. Appendix B The following document is a fill-in form, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will distort the

document.

Stant Corporation Supplier Web Portal Access Form Stant is providing, for use by our Suppliers, a web portal to be used in data exchange. The purpose

of this system is to automate the communication of Supplier shipments and Stant shipping

requirements. Outlined below are the procedures for obtaining access to our website, as well as,

guidelines for its use. If you have any questions about these policies/procedures or have any

technical questions, please email Ron Cummins at (765) 827-8176.

Please complete the following information to assist us in creating access for you to our secure

site:

1. Company Name:

2. Primary Contact:

a. Name:

Phone:

b. Name:

Phone:

3. I.S. /I.T. Contact:

a. Name:

Phone:

After submission of this form, you will be given a log-in and password to access the site.

The password may be changed, if desired.

Policy:

This website is to be used solely for the confidential exchange of data between Stant

Corporation and its suppliers and customers. All transactions on this system will be monitored.

Any misuse of this system may result in removal from the system and/or loss of supplier status.

All information provided by the supplier to Stant will be kept in strict confidence.

Suppliers are expected to provide Advanced Shipping Notices for each shipment made to

Stant facilities, through this web portal.

Please complete this form and e-mail to: rcummins@stantinc.com . Thank

you.

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The following document is a fill-in form, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will distort the

document. Appendix C Revision: 10

SUPPLIER’S PERSONNEL DATA (Confidential)

Company Name:

Web Site: Year established:

Phone No: Fax No:

Street:

City: State: Zip:

Parent Company or Division Name:

Street:

City: State: Zip:

Oversees Locations: Where?:

Sales Manager: Phone No.:

E-Mail : Cell No.

Plant Manager: Phone No.:

E-Mail : Cell No.

Materials Contact: Phone No.:

E-Mail : Cell No.

Quality Manager: Phone No.:

E-Mail : Cell No.

Quality Engineer: Phone No.:

E-Mail : Cell No.

Finance Officer: Phone No.:

E-Mail : Cell No.

Hourly Union Salary Union : Local Affiliation: Contract Expiration Date:

Number of Employees: Hourly: Salary:

Dun and Bradstreet #:

Are you a Minority owned business? Yes No If Yes, Certification No.:

TS16949 Certified Yes No

ISO 9001 Certified Yes No

Date Certification Expires: Registrar:

If No, Expected Date of Certification:

ISO14001 Certified Yes No

Date: Signed:

Email completed form to suppliermanual@stantinc.com

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Appendix D

Vendor Material Inspection Report

Quality Control Part Number: Date: Supplier

Name:

Part Name: VMIR No.:

P.O. No. Quantity Inspected: Quantity Rejected: Area ___________ Samples

_______ ______ _______ Issue Close Date:____ Production Parts

VMIR

TYPE 1. Quality

2. Shipping

3. Packaging

4. Other (Specify) _______________

Description of Defect: Photo of Defect

Action Required: Initial Disposition: Charge Back: Defect: Repetitive Discrepancy:

OK Production Accept Vendor Minor Yes

Sort Required Return Chargeback

Amt ________

Major No

Sample Rejected Review Critical

Correct defects

listed, proceed with

scheduled shipments

Supplier

Proactive

Notification

WRITTEN CORRECTIVE ACTION REQUIRED USING THE 8-D FORMAT,

DUE WITHIN TEN (10) WORKING DAYS. WRITTEN CONTAINMENT

ACTION DUE WITHIN 24 HOURS. E-MAIL CORRECTIVE ACTION PLAN

TO THE ISSUING INDIVIDUAL

Cc:

46

The following document is a fill-in form, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will distort the

document. Appendix E Revision: 10 To: From: Stant MFG, Inc. Address: City & State: Zip: Date: Subject: Entry into Containment Level 1 Dear Supplier, Containment level 1 is part of Stant Supplier Quality Procedure per our Supplier Development Manual. Stant has determined that current controls by your organization are not sufficient to insulate Stant and our customers from the receipt of nonconforming product/material produced at your facility. This letter is formal notification and confirms discussion(s) held with the Quality Engineer, Quality Manager or Quality Associate that your facility has been placed in Containment Level 1 for the following non-conformances: Part Number:

VMIR Number:

Nonconformance:

The procedures/processes you have enacted to date have been insufficient in stopping the flow of non-conforming product/material to our plant(s). Therefore, you must immediately: Develop, define, and implement an agreed-upon over and above your current process controls and containment activity. Clearly identify the qualified shipments. Identify the root cause of the nonconformance(s). Define and implement irreversible corrective action for the root cause(s) of the problem(s). This will normally include revised FMEAs, Process Flow Diagrams, and Process Control Plans.

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Validate effectiveness of the corrective action. Outline your plan for reviewing your Containment Level 1 data. Track and report your progress by using an approved report format. You must submit regular reports as specified by the representative monitoring this activity. Meet the defined exit criteria. The product/material will remain in containment Level 1 until irreversible corrective actions are implemented and confirmed. Exit criteria will be established that verify the identification of the true root cause, and verify that appropriate corrective action is implemented, properly documented, and effective. Note: Failure to comply with this procedure or the inability to implement a successful action plan or containment activity will result in the implementation of Containment Level 2 and/or New Business Hold. Reference the Supplier Development Manual for further information and instruction.

If you have any questions contact XXX, Quality Engineer or Plant Quality Manager (XXX-XXX-XXXX), who will be monitoring and defining your Containment Level 1 activities. Sincerely, Brad Pickard

Divisional Quality Director Stant Corporation Stant Corporation Supplier’s Acknowledgement of Entry into Containment level 1 (Print) Name: (Sign) Name: Title: Cc: Plant Quality Manager Plant Quality Engineer Corporate Supplier Quality Engineer

48

The following document is a fill-in form, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will

distort the document.

Appendix F Revision: 10 To: From: Stant MFG, Inc. Address: City & State: Zip: Date: Subject: Entry into Containment Level 2 Dear Supplier, Containment level 2 is part of Stant Supplier Quality Procedure per our Supplier Development Manual. Stant has determined that current controls by your organization are not sufficient to insulate Stant and our customers from the receipt of nonconforming product/material produced at your facility. This letter is formal notification and confirms discussion(s) held with the Quality Engineer, Quality Manager or Quality Associate that your facility has been placed in Containment Level 2 for the following repeated non-conformance(s) during containment level 1, or as otherwise determined by Stant management: Part Number:

VMIR Number:

Nonconformance:

The procedures/processes you have enacted to date have been insufficient in stopping the flow of non-conforming product/material to our plant(s). Therefore, you must immediately: Develop, define, and implement an agreed-upon third party containment activity over and above your current process controls and containment activity. Clearly identify the qualified shipments and the name of the approved sorting company. Identify all the root cause of the nonconformance(s) of the nonconformance(s). Include a Why-Why analysis with the corrective action.

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Define and implement irreversible corrective action for the root cause(s) of the problem(s). This will normally include revised FMEAs, Process Flow Diagrams, and Process Control Plans. Validate effectiveness of the corrective action. Outline your plan for reviewing your Containment Level 2 data. Track and report your progress by using an approved report format. You must submit regular reports as specified by the representative monitoring this activity. Meet the defined exit criteria. The product/material will remain in containment Level 2 until irreversible corrective actions are implemented and confirmed. Exit criteria will be established that verify the identification of the true root cause, and verify that appropriate corrective action is implemented, properly documented, and effective. Note: Failure to comply with this procedure or the inability to implement a successful action plan or containment activity will result in the continuation of Containment Level 2 and/or New Business Hold. Reference the Supplier Development Manual for further information and instruction.

If you have any questions contact Name: XXX, Quality Engineer or Plant Quality Manager (XXX-XXX-XXXX), who will be monitoring and defining your Containment Level 2 activities. Sincerely, Brad Pickard Quality Director Stant Corporation Stant Corporation Supplier’s Acknowledgement of Entry into Containment level 2 (Print) Name: (Sign) Name: Title: Cc: Plant Quality Manager Supplier Quality Engineer Supplier Quality Manager

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Document No.

Revision Date

SUPPLIER TO COMPLETESupplier name and address Supplier ID or DUNS # Submission date

SCR submitted by Posit ion of responsibility

Email Phone

Part number(s) coverd by this SREA Part descript ion(s) Time to implement after approval

Type of change (check all that apply)

Descript ion of change (include list of any support ing documentat ion) Reason for change

Impact of change (check all that apply and explain)

CE #

STANT PURCHASING APPROVAL

Change impacts existing PO? If yes, Supplier to receive revised POPurchasing M anager Approved? Signature Date Comment

STANT ENGINEERING APPROVAL

Change impacts Stant design records? If yes, any Supplier PPAP must reflect new design records

Plant trials required? If yes, Supplier to coordinate trials w/ Stant Program Engineer

DV/PV testing required? If yes, Supplier to provide results prior to PPAP submissionProgram Engineer Approved? Signature Date Comment

Engineering M anager Approved? Signature Date Comment

STANT MATERIALS APPROVAL

Bank/safety stock required? If yes, quantity:

Implementation timeline required? If yes, Supplier to provide timelineM aterials M anager Approved? Signature Date Comment

STANT QUALITY APPROVAL

PPAP submission required? If yes, Supplier to submit Level 3 PPAPQuality M anager Approved? Signature Date Comment

N ot es:

1.

2.

Routing: Purchasing Engineering Materials Quality

Supplier File

Supplier Change Request

Stant USA Corporation

SCR TRACKING #

Approval does not change Supplier's responsibility to provide a quality product. If the proposed changes result in unsat isfactory performance, the Supplier must assume

full responsibility, correct def iciencies, and reimburse Stant for all expenses incurred.

A fully signed form indicates approval of plan only; Supplier must complete all st ipulated requirements before implementing the changes.

MaterialProcessDesign SupplierLocation Other:Tooling

Safety:

Quality:

Delivery:

Obsolescence:

Cost:

Other:

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

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Appendix H

Deviation Number ____________

Request for Deviation or Waiver Supplier Name _____________________________

APPROVAL Name Date Approved

Q.C. ____________ ____________ CC: ________ __________

ENG. ____________ ____________ ________ ___________

OTHER ____________ ____________ ________ __________

____________ ____________ ________ __________

1.) INFORMATION

PART PART

NUMBER _____________ NAME _____________ REQUESTED BY____________________

DATE ____________________

EFFECTIVE QUANTITY

PERIOD _______________ AUTHORIZED___________

2.) DESCRIPTION OF DEFECT OR NON-STANDARD CONDITION

3.) REASON FOR DEVIATION

4.) DISPOSITION OF STOCK ON HAND

5.) PARTS ARE TO BE CONSIDERED "ACCEPTABLE" WITH THE FOLLOWING COMMENTS

6.) CORRECTIVE ACTION REQUEST FOR PRINT CHANGE: YES ___ NO ___

CA TO BE

SUBMITTED

BY WHOM:_______________________ EXPECTED CA COMPLETION DATE:_____________

7.) CUST. APPR. REQD: YES___NO___ 8) REVIEW FOR CHANGES: (If needed)

AUTHORIZATION:________________ DFMEA __________ INSP. INSTR. ___________

DATE:__________ PFMEA __________ SPEC.GAGES ___________

REF.DOC. & NO.:________________ CONTR. PLAN______PROCESS INSTR.________

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Appendix I Revision: 10

Terms and Conditions

TERMS AND CONDITIONS

1. Acceptance – This Order constitutes Buyer’s offer to Seller to purchase the specified goods or services pursuant to the terms set forth on sheet 1 and sheet 2 of this Order form. This offer to purchase expires

unless promptly accepted by Seller. Seller’s timely acknowledgement of this order, commencement and work on this Order by the shipment of goods or delivery of services specified in this Order shall be

conclusively deemed acceptance of this Order, including the terms contained herein. No terms or conditions stated by Seller in acknowledging and accepting this Order shall be binding upon Buyer if they are

in anyway inconsistent with or in addition to the terms herein set forth unless expressly accepted in writing and signed by Buyer. The terms stated on both sheets hereof are the final and complete agreement

between Buyer and Seller and cannot be modified or waived by a course of conduct or otherwise than by written agreement signed by Buyer. Buyer’s failure to object to inconsistent or additional terms and

conditions contained in any of Seller’s responses to this Order shall not be a waiver of the terms contained herein or on acceptance of such inconsistent or additional terms.

2. Price – Buyer shall not be billed at prices higher than stated on this Order unless authorized by Buyer. Seller represents that the price charged for the goods or services covered by this Order is the lowest price

charged by Seller to buyers of a class similar to Buyer under conditions similar to those specified in this Order and that the price complies with applicable government laws and regulations in effect at the time

of quotation, sale or delivery. Seller agrees that any price reduction made in goods or services covered by this Order subsequent to the placement of this Order but prior to shipment, or rendering thereof, will be

applicable to this Order. No payment shall be made for boxing, packing, crating, cartage or other added charge, unless provided on this Order or expressly accepted in writing by Buyer.

3. Delivery – Time is of the essence and is essential to performance to this Order. Except as otherwise provided herein, Buyer reserves the right to cancel at any time without any liability to Seller, all or any part

of this Order if the goods are not shipped or the services not rendered within the time specified. Seller shall be excused if delivery of goods or execution of services is delayed by the occurrence of an

unforeseen and unforeseeable event provided Seller notifies Buyer of such event as soon as it occurs, and gives Buyer its best estimate of a revised delivery or execution date. If any delay exceeds 15 days from

the original delivery date, Buyer may cancel this Order without any liability to Seller. If Seller’s ability to deliver or execute is only partially restricted or delayed, it shall use its bests efforts to accommodate

the requirements of Buyer, including giving this Order preference and priority over those of other customers which were placed after this Order.

Buyer may delay delivery of goods or execution of services, or acceptance if occasioned by a cause beyond its control. Seller shall hold such goods or delay such services at the discretion of Buyer and shall

deliver them when the cause affecting the delay has been removed. Buyer shall be responsible only for Seller’s direct costs in holding the goods or delaying performance of this Order at Buyer’s requests.

4. Warranties – Seller warrants that the manufacture, sale or warranty of its goods comply with all applicable Federal, state and local laws. Seller expressly warrants that all goods and services covered by this

Order shall fully conform to the specifications, drawings samples or other descriptions as specified by Buyer and shall be of good grade and the highest quality, fit and suitable for the purpose intended,

merchantable, of good material and workmanship and free from defect, latent or otherwise. Such warranties shall be in addition to any express or implied warranties of additional scope given to Buyer by Seller

or implied by law. All warranties contained in this Order shall survive inspection, test, acceptance and payment.

5. Indemnification – Seller shall indemnify and hold harmless buyer from all damages, claims, liabilities and expenses of any kind that Buyer incurs due to Seller’s negligent performance of this Order or

resulting from Breach of warranty by Seller.

6. Inspection/Testing – Payment for goods delivered or services rendered hereunder shall not constitute acceptance thereof. Buyer shall have the right to inspect such goods or services and to reject any or all of

said goods or services which are in Buyer’s sole judgement defective or nonconforming. Goods rejected and goods supplied in excess of quantities called for herein may be returned to Seller at its expense; and

in addition to Buyer’s other rights, Buyer may charge seller reasonable expenses incurred in unpacking, examining, repacking and reshipping such goods. In the event Buyer receives goods or services whose

defects or nonconformity are not apparent on examination, Buyer reserves the right to require replacement as well as payment of damages. Nothing contained in this Order shall relieve, in any way, Seller from

obligation of testing, inspection, and quality control.

7. Order Changes – Buyer has the right, at any time prior to completion of this Order by written notice to Seller, to make changes within the general scope of this Order, including but not limited to, changes in

drawings, designs, specifications, materials, packaging, time and place of delivery and method of transportation. If such changes affect the time or cost of performance, an equitable adjustment shall be made in

the delivery schedule and/or purchase price by agreement of Buyer and Seller. All claims by Seller for adjustment under this paragraph must be asserted, in writing and in full, within thirty (30) days of Buyer’s

change notice or Seller’s claim shall be waived.

8. Insolvency – Buyer may cancel this order at any time in the event of the occurrence of any of the following: insolvency of Seller, the filing of voluntary petition in bankruptcy by Seller, the filing of an

involuntary petition to have Seller declared bankrupt provided it is not vacated within thirty (30) days from the date of filing, the appointment of a receiver or trustee for Seller provided that such appointment is

not vacated within thirty (30) days from the date of such appointment or the execution by Seller of an assignment for the benefit of creditors. The exercise by Buyer of the right of cancellation reserved in this

paragraph shall not impose any liability upon Buyer by reason of the cancellation nor have the effect of waiving Buyer’s entitlement if any, to damages.

9. Termination – Buyer may for its own convenience and, at any time, terminate work on this Order, in whole or in part, by providing written notice to Seller, even though Seller is not in default. In accordance

with such notice, Seller shall terminate work on this Order and take all reasonable steps necessary to protect material and/or property in Seller’s possession, in which Buyer has or may acquire an interest. Upon

such termination, Buyer’s obligation to Seller shall be limited to payment for (I) the goods delivered or services rendered in accordance with the terms hereof and not previously paid for, (ii) the added cost

incurred by Seller, which are properly allocable under recognized commercial accounting practices to the terminated portion of this Order and (iii) a reasonable profit in work performed by Seller prior to

termination and for which Buyer has not been paid, provided, however, that the total payments, Buyer is obligated to make hereunder shall not exceed the purchase price of the goods or services to which such

termination applies. Termination by Buyer hereunder shall be without prejudice to any claims, which Buyer may have against Seller.

10. Buyer’s Premises – If any work under this Order is to be performed on Buyer’s premises or the premises of a customer of Buyer, Seller agrees to indemnify, defend and hold harmless Buyer, its directors,

officers and employees from any and all claims and demands (including reasonable attorneys fees) arising out of injury to, or death of, any person whatsoever or damage to property of any kind by whomsoever

owned, arising out of the performance by Seller, Seller’s sub-contractors or Seller’s agents. At least seven (7) days prior to start of the work on the premises, Seller shall submit to Buyer certificates of insurance

from insurance companies acceptable to Buyer for the following types of coverage and minimum limits; (a) Worker’s Compensation; (b) Employer’s Liability - $100,000 per person; (c) Automobile Liability

– Bodily Injury, $2,000,000 per occurrence; and (d) Comprehensive General Liability - $2,000,000 per occurrence. All certificates of insurance must provide that no material change or cancellation of the

policy shall be made without thirty (30) days prior written notice to Buyer.

11. Title – Unless the face of this Order expressly provides otherwise, delivery of goods hereunder shall be F.O.B. Seller’s Plant, and shall pass to Buyer upon transfer to carrier.

12. Proprietary Rights – Seller undertakes and agrees to defend at Seller’s expense all suits, actions or proceedings brought against Buyer, any of Buyer’s customers or the users of goods purchased hereunder for

actual or alleged infringement of any copyright, trademark, trade secret or letters patent because or on account of the use or sale of such goods, except such goods that are requested by Buyer to be specifically

made inexact accordance with Buyer’s design or specifications which constitute the basis for such actual or alleged infringement. Seller further agrees to pay and discharge any and all judgments or decrees

which may be rendered in any suit, action or proceeding. All artwork, plates, drawings, specifications, and similar materials or property delivered to Seller or produced by Seller hereunder shall be the property

of Buyer and shall be tendered to Buyer upon request. Seller shall have no right to disclose, display, reproduce, or recreate any of the Buyer’s materials or property involved in the performance of this Order.

13. Applicable Laws – Seller in the performance of this Order shall comply with the provisions of the Fair Labor Standards Act of 1938, as amended, and all other applicable Federal, state, and local laws,

regulations and ordinances.

14. General Rights – any right or remedy expressly conferred on Buyer herein shall not limit or modify any right or remedy, which Buyer would otherwise have. No waiver by Buyer of any terms of this Order or

of any obligation of Seller shall constitute a waiver of any other term or of any other of Seller’s obligations or any part thereof. No delay or failure of the part of Buyer in exercising any rights under this Order

and no partial or single exercise thereof shall constitute a waiver of such rights.

15. Setoff – All claims for money due or to become due from Buyer shall be subject to deduction or setoff by Buyer by reason of any counterclaim arising out of this or any other transaction with Seller.

16. Gratuities – Seller has not and shall not offer or give to any employee, agent, or representative of Buyer any gratuity for any reason. Any breach of this warranty shall be a material breach of this Order and

Buyer may cancel this Order. The exercise by Buyer of the right of cancellation reserved in this paragraph shall not impose any liability on Buyer by reason of the cancellation nor have the effect of waiving

Buyer’s entitlement, if any, to damages.

17. No Assignment – Seller shall not assign any of its obligations hereunder without the prior written consent of Buyer.

18. Equal Opportunity – Seller certifies that it is an Equal Opportunity Employer and that it will observe and comply with the provisions of Executive Order 11246 and 11758, as revised, pertaining to equal

employment opportunities and all other laws and regulations relating to affirmative action programs, handicapped workers, disabled veterans, Vietnam era veterans, small and minority businesses to the extent

so required pursuant to Federal, state or local law.

19. Governing Law, Interpretation – All questions of validity, interpretation and preference requirements arising out of this Order shall be governed by the Uniform Commercial Code as adopted by the State of

Indiana (the “UCC”), if applicable, otherwise by the general law of the State of Indiana. Whenever a term defined by the UCC is used in this Order, the UCC definition shall control. Modifications of these

terms appearing on the face of this Order shall prevail whenever they are in conflict with the printed terms on this side.

20. Entire Agreement – This Order contains, the entire understandings of the parties respecting the subject matter, and there are no representations, agreements, arrangements or understanding, oral or written,

between the parties hereto relating to the subject matter of this Order that are not fully expressed herein.

21. Tool Property Clause – The Tooling to be supplied on this Purchase Order, upon payment being made, whether partial or final, shall become the property of Buyer and shall be immediately marked or tagged

“Property of Stant Inc.”. While the Tooling is in Seller’s possession, Seller shall (I) bear all risk of loss thereof and damage thereto, and (ii) at its own expense, maintain the Tooling in first class condition and

replace worn out Tooling to the extent necessary to produce acceptable parts. The Tooling shall not be commingled with Seller’s property or that of a third person, shall not be used except for the manufacture

of supplies for Buyer, shall not be moved from Seller’s premises without prior written authority from Buyer, shall be deemed to be personal, and, upon request of Buyer, shall be delivered immediately to Buyer

by Seller, F.O.B. cars or trucks at Seller’s plant, properly packed and marked in accordance with the requirements of the carrier selected by Buyer to transport such Tooling or shall, upon request of Buyer, be

immediately delivered to Buyer by Seller at any location designated by Buyer, in which event Buyer shall pay to Seller the cost of delivering such property to such location. Buyer shall have the right to enter

onto Seller’s premises at all reasonable times to inspect the Tooling and Seller’s records with respect thereto.

53

Appendix J Revision: 10 Initial Production Parts Procedure (IPP)

Scope: To ensure that suppliers document and control product and material shipped to

Stant due to changes to parts and/or processes.

Purpose: The Initial Production Parts label is to be used to track changes and the

shipment of new parts during the trial phases of new model

Types of: It is necessary to issue IPP tags when there are changes to parts or processes

that change the parts. Below is a table that explains when an IPP tag is to be used and

some examples of the types of changes suppliers can/will make.

No. Item Explanation/Examples

1 Design Changes

The part drawing changes, altering the physical

structure or number

of the part. A design change is done when a new part

drawing or an

M/I is issued.

New part design

Design change that affects the part

2 New Supplier

A supplier or sub-supplier, who has never produced

the part or component, begins manufacturing the part

for Stant.

Addition of a new supplier or sub-supplier

Changing the supplier or sup-supplier

New delivery location

Change from in-house production to outside supplier

(or vise versa)

Change in factory location

3 Material Change

The material(s) use to manufacture the part has

changed.

Change material supplier

Material supplier changed from outside to self-

supplied (or vise versa)

Change in material composition (including anti-rust

oil or lubrication oil)

54

Appendix J Initial Production Parts Procedure (IPP) Revision: 10

No. Item Explanation/Examples

4

Manufacturing

Method Change

A process method, setting or condition used in

manufacturing the part is changed or modified. This

includes any change which effects the way the parts

are produced a s reflected in the Control Plan. This

applies when the normal control range changes, not for

routine adjustments.

Castings or forging method change

Heat treatment condition change

Rubber or plastic molding condition change

Process standards or setting method change.

Machining or cutting condition change.

5

Process Order

Change

The manufacturing process order is changed or

deviates from the control plan.

Change to the order of the process, adding or

deleting process steps.

Change a temporary to a permanent one (or vice

versa)

6 Machine Change

When the machinery initially used to produce the parts

during the approval process has been changed or

replaced by another machine.

(Machine examples: stamping press, assembly line,

injection or blow molding, forge press, etc)

Initial use of a new machine

Modification or major repair of a machine

Equipment relocation with the same plant.

7 Jig/Tool Change

The primary or secondary tooling or jigs are changed,

potentially affecting the quality, function, appearance,

or reliability of the part.

(Jig and tool examples: welding or assembly fixtures

used in manufacturing processes, cooling fixtures,

sonic or heat welding, etc.)

Change in machining master for camshaft or pistons

Change in machining master for other parts

New or modified jigs and tools

55

8

Die/Mold Change

A die or mold that is used in the manufacturing

process is new or changed.

New or renewed die or mold

Revisions or repair of the die or mold

NOTE: These could require trials and some

evaluations both at Stant and at the customer. This

will need to be coordinated before any parts are

shipped to Stant.

9

Inspection Method

Change

The inspection methods of the part are changed,

potentially resulting in either an improvement or

changes in the part’s quality performance. This may

require a revision to the control plan.

New or modified inspection equipment

Measuring method change or measuring instrument

type change

NOTE: These could require trials and some

evaluations both at Stant and at the customer. This

will need to be coordinated before any parts are

shipped to Stant.

10

Transportation and

Packaging Change

The method of transporting the part to Stant, or the

packaging of the part deviates from the initially

approved method. The change could adversely effect

the quality of the part.

Change in delivery method, packaging materials or

containers.

11

New Model Trial

Parts

This is to be used for the identification for each trial

event to identify parts being shipped to Stant. Part

number for each trial event must be identified with

IPP.

Note: Before any product is shipped to Stant for Change types #2 - #10, a PPAP

must be submitted to Stant Quality Engineers and approved.

56

Appendix J Initial Production Parts Procedure (IPP) Revision: 10 Suppliers Requirements when using IPP procedure. Shipments to multiple locations require an IPP tag for each location and production line. Parts of different colors require an IPP tag for each color. Suppliers must control or track IPP tags sent to Stant to ensure that part/process changes are IPP'd for all Stant destinations. The supplier prepares the first lot for shipment by attaching a properly completed IPP tag in a conspicuous location. The first lot is shipped in FIFO order. Note - when attaching an IPP tag directly to the container, use the area on the tag labeled for attachment. Do not tape over areas with a bar code or IPP number. The supplier clearly labels all containers. Containers are labeled on the outside to show an IPP tag is enclosed. When a shipment contains both IPP parts and older parts, all the containers in the shipment are labeled to indicate whether they contain old or new parts. Along with the IPP tag that is used when there is a change, there are two additional labels that must be used when a part is shipped to Stant. A”BLUE” placard must be attached to all part containers that say, “Old Style Parts.” This will allow Stant to segregate parts with the old level revision in their inventory. A “YELLOW” placard must be attached to all part containers that say, “New Style Parts.” This will allow Stant to segregate parts with the new level revision in their inventory. The supplier must notify Stant concerning each shipment containing IPP related parts. NOTE: The supplier must have a signed Part Submission Warrant before shipping any product or material to Stant.

57

The following document is a fill-in form, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will

distort the document. .

Appendix J Initial Production Parts Procedure (IPP) Revision: 10

Initial Production Parts Date: Supplier Name:

Manufacturing Location:

Component Number: Part Number:

Assembly Number: Part Number:

Supplier Lot #

Detailed Description of Change Points:

Delivery Quantity:

Delivery Date:

Supplier: Date:

58

Appendix K Initial Production Parts Labels Revision: 10

OLD STYLE

PARTS

59

Appendix K Initial Production Parts Labels Revision: 10

NEW STYLE

PARTS

60

The following document is a fill-in form, Use your Tab key to move to the next field. (Do Not Use the Enter Key) this will distort the

document. Appendix L

Feasibility Considerations

Our product quality planning team has considered the follow ing questions, not intended to be all-inclusive in

performing a feasibility evaluation. The draw ings and/or specif ications provided have been used as a basis for

analyzing the ability to meet all specif ied requirements. All "no" answ ers are supported w ith attached comments

identifying our concerns and/or proposed changes to enable us to meet the specif ied requirements.

YES NO CONSIDERATION

Is product adequately defined (application requirements, etc. to enable

feasibility evaluation?

Can Engineering Performance Specif ications be met as w ritten?

Can product be manufactured to tolerances specif ied on draw ing?

Can product be manufactured w ith Cpk's that meet requirements?

Is there adequate capacity to produce product?

Does the design allow the use of eff icient material handling techniques?

Can the product be manufactured w ithout incurring any unusual:

- Costs for capital equipment?

- Costs for tooling?

- Alternative manufacturing methods?

Is statistical process control required on the product?

Is statistical process control presently used on similar products?

Where statistical process control is used on similar products:

- Are the processes in control and stable?

- Are Cpk's greater than 1.33?

TEAM MEMBERS SIGN-OFF

SIGNATURE DATE

Operations

Quality

Sales

Engineering

Other

Other

Conclusion

Feasible Product can be produced as specif ied w ith no revisions.

Feasible Changes recommended (see attached).

Not Feasible Design revision required to produce product w ithin the specif ied requirements.

TEAM FEASIBILITY COMMITMENT

Appendix M - Page 1

61

Date:

Supplier:

Program:

Part Number(s):

Buyer:

Stant Quality Engineer Responsible:

Attendees: _______________________ ______________________________

__________________________________ ______________________________

1 Design Stant Responsibility

Supplier

Responsibility

a DFMEA

b DVP & R

Discussed Action Required

c Control Characteristics Log

d KPC / Critical Dimension

e Exceptions

2 Manufacturinga BOM

i. Process(es)

ii. Location(s)

iii. Suppliers - Components / Sub-Components

b PFMEA

c Control Plan

d Gages

Notes

Act

ion

Re

qu

ire

d

62

Date:

Supplier:

Program: Page 2

Part Number(s):

e Tooling / Die

i. Volume Assumptions

ii. Capacity

iii. Tool Life / Maintenance

f CPK

g Supplier Manual

i. VMIR and Chargeback Process

ii. Supplier Rating / Scorecard

h Exceptions

3 Early Production Containment

63

Date:

Supplier:

Program: Page 3

Part Number(s):

4 Traceability

5 Packaging

6 Logistic

a EDI / Tracking

7 Commercial

a SOP

b Contract Terms

c Exceptions

Additional issues:

64

Supplier PPAP Checklist Stant Quality Engineer:

P.O. Number: Program: CE : Eng Drawing Level: Eng Drawing Date:

Part Number & Description:: PPAP Submission Level:

Supplier: PPAP Submission Date:

Reviewed By & Date: PPAP Qty Required:

DIMENSIONAL PART OF SUBMISSION PASS FAIL N/A Prototype PPAP Submissions YES

NO

N/A

WARRANT Prototype Warrant to be submitted Correct Part Number per Drawing

Correct Engineering Level per Drawing Dimensional Layouts

Correct Engineering Date per Drawing

Weight noted to 4 decimal places (xx..xxxx kg) Material Certs within 1 year

Correct Customer

IMDS Number Prototype Label & Packaging must meet Stant Packaging Requirements

Submission Level Correct

Dim., Material, SPC, Appearance Boxes Checked First Shot – Debug Sample Component Parts Yes No Declaration Correct Will require a dimensional layout report

Signed and Dated

DRAWING EPC Quantity and Time Period:

Included in PPAP Package / Customer Approved

Key Characteristics from DFMEA identified on Drawing

Engineering change level match Warrant

PARTS Date Run at Rate Completed: Inspected Samples Included with PPAP Package

Numbered or Serialized per Inspection Report Date Certificate of Origin Submitted: ISO Marking on Plastic Parts

DIMENSIONAL INSPECTION PPAP NOTES Correct Part Number per Drawing

Correct Revision Level and Date

Number of Samples Inspected as Agreed

Inspection Results Pass

Inspectors Name / Date (Within 1 Year of Submission)

PROCESS FLOW DIAGRAM

Correct Part Number per Drawing

Correct Revision Level and Date

Complete with All Required Actions

Approved by Customer

PROCESS FMEA

Correct Part Number per Drawing

Correct Revision Level and Date

Complete with All Potential Failures SUBMISSION RESULTS

RPN’s Addressed with Recommended Actions

BASED UPON THE INFORMATION PRESENTED, THIS PACKAGE IS:

APPROVED INTERIM CLASS REJECTED *

Stant SQE Approval:

* Please present a written plan of action within the next 15 days

Key Characteristics from Drawing Addressed in PFMEA

Approved by Customer

PROCESS CONTROL PLAN

Correct Part Number per Drawing

Correct Revision Level and Date

Complete with all PFMEA Failure Modes Controlled

Controls and Audits adequate,

Key Characteristics from Drawing Addressed

GAGE R&R STUDIES SUPPLIER CONTACT INFORMATION

On Each Gage Noted on Control Plan SUPPLIER NAME:

QUALITY ENGINEER:

PHONE:

E-MAIL:

Acceptable Gage R&R Score (<20%)

STATISTICAL PROCESS CONTROL DATA

All Process Control Points in Control

Process Control Points meet Capability Requirements

Short-term Cpk>=1.67, Long term Cpk>=1.33

SPC Charts Included in PPAP Package

PACKAGING INSTRUCTIONS

Correct Part Number per Drawing

SUPPLIER COMMENTS Correct AIAG Bar Code Labeling

Label Correct with Latest Revision Level

Label & Packaging must meet Stant Requirements

OPERATOR INSTRUCTIONS

Key Characteristics from Drawing Addressed

APQP STATUS REPORT

Completed with Completion Dates

MATERIALS

Material Certs within 1 year Process Certs included (Heat treat, Plating, Lube etc)

All Testing performed / Passes Specifications included along with results.

TOOLING AUDIT Tooling audit checklist completed Form 301-F6 Rev 9/7/11

A

65

Appendix O Bar Code

66

Appendix P

Approved Third Party Sorting Companies for any North American

Stant facility:

Stratosphere Quality –

Stratosphere Quality’s terms of service can be found at: http://www.stratospherequality.com/Terms.pdf Contact Stratosphere Quality 24 hours a day at 877-224-8584 or 317-578-1455 for any questions or

further information regarding service.

The PIC Group-

Contact: Gwen Bradley – Acct Manager USA– Cell 248-508-1991 Toll Free #USA 877-742-8664

Elaine Regas- VP of Sales Canada- Toll Free # 800-263-3735 (x4631)

PTI Quality Containment Solutions

General Inquiries: www.ptiqcs.com or phone 313-365-3999 Ext 242 for Programs Manager

Locally Recommended:

Stant Connersville- Supplier Inspection Services – Vince Johnson 859-512-8161

Stant Tijuana- Quality Gold Mexico- Yulam Andalon (01152) 044664-2019-711

67

Appendix Q

68

69

Revision History Effective Date Revision Level Changes 6/1/11 9 VMIR Process, Org Changes, Early Production Containment 3/1/12 10 ASN, Annual validation, VA/VE, Labor Condition Statement, Supplier Change Request, Euro Labeling, Score Levels, PPAP Submission Qty, NAFTA Cert of Origin