Management Policy

for Suppliers

Requirements of the
Quality Management System
of the Supplier

For All Plants of the

Group

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1 Table of Contents Page

1 Table of Contents 2

2 Conditions 4

2.1 Object and Purpose 4

2.2 Scope 4

2.3 Additionally Applicable Documents 4

2.3.1 Related Documents 4
2.3.2 Sources 5

3 Descriptive Part 5

3.1 General Information 5

3.1.1 Quality Management System 5
3.1.2 Quality Objectives / Continuous Improvement 5
3.1.3 Specifications for Suppliers 6
3.1.4 Environment 6
3.1.5 Heavy Metal Ban EU Car Directive (2000/53/EC) 6

3.2 Supplier Selection and Release 7

3.2.1 Supplier Audit 7

3.3 Order Documentation 8

3.3.1 Order and Technical Documentation 8
3.3.2 Contract Review 8
3.3.3 Data Protection 8

3.4 Quality Planning 9

3.4.1 Production Management Plan 9
3.4.2 Schedule and Milestone Plan 9
3.4.3 Quality Discussions 9
3.4.4 FMEA 10
3.4.5 Quality Assessment of Design Results 10
3.4.6 Process Capability 10
3.4.7 Test Planning 11
3.4.8 Delivery Certification / Documentation 11

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3.5 Sampling 12
3.5.1 Definition 12
3.5.2 Master Sample / Border Sample / Reference Sample 13
3.5.3 Perfomance test 14

3.6 Series Monitoring 14

3.6.1 Test Equipment / Measuring Equipment 14
3.6.2 Tests / Re-Qualification Tests 14
3.6.3 Preventive Maintenance 15

3.7 Complaints 15
3.7.1 Quality and Delivery Problems 15
3.7.2 Deviations 15
3.7.3 Quality Disturbances 16
3.7.4 Test Report / Complaint 16
3.7.5 Reduction of Incoming Goods Inspections 16

3.8 Delivery Rating System 17

3.9 Documentation / Product Safety Representative 17

3.9.1 Mandatory Documentation Parts (Safety Symbols) 17
3.9.2 General Documentation 18
3.9.3 Product Safety Representative 18
3.9.3.1 Tasks of the product safety representative 18

3.10 Shipping and Labelling 19

3.10.1 Labelling of Serial Products 19
3.10.2 Packaging and Shipping 19

4 Other 19

4.1 Service Performance 20

4.2 Warranty, Product Liability, Insurance 20
4.3 REACH 21

5 Modification Legend 21

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2 Conditions

2.1 Object and Purpose

This quality management policy describes the requirements for ensuring quality of
purchased parts and materials of the suppliers of IDEAL Automotive GmbH.

2.2 Scope
This Quality Management Policy is part of our purchasing conditions and applies to all
suppliers of purchased parts and materials that contribute to the IDEAL Automotive
GmbH products or are sold as IDEAL Automotive GmbH products; samples and prototype
parts are excluded.

The scope includes all plants of IDEAL Automotive GmbH. This quality management
policy supersedes all previous quality assurance arrangements.

2.3 Additionally Applicable Documents

2.3.1 Related Documents

The claim for compliance with the following standards and directives in their most current
issue has to be considered, even if they are not explained in detail in this quality
management policy:

- Quality System Requirement QS-9000 and accompanying documentation

- ISO TS 16949 quality management systems requirements
- VDA publication series "Quality Management in the Automotive Industry"
- DIN EN ISO 9000 et seqq. "Quality Management and Quality Assurance Atandards"
- DIN ISO 10011 "Guidelines for Auditing Quality Aystems"
- DIN ISO 10012, Part 1 "Management of Test Equipment"
- VDI / VDE / DGQ Directive 2618 "Testing Instructions for Test Equipment Checks"
- VDI / VDE / DGQ Directive 2619 "Inspection Planning“
- VDI Directive 2890 "Scheduled Maintenance"
- VDA Recommendation 4902
- DIN EN 10204 "Certificate of Material Testing"

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2.3.2 Sources

- CARWIN Continuous Ltd. Unit 1, Trade Link, Western Ave, West Thurrock, Grays,
Essex, England (QS-9000 and related manuals)
- Association of the Automotive Industry (VDA), Westendstr. 61, 60325 Frankfurt / Main
- Carl Hanser Verlag, Munich (DIN Standards)
- Beuth Verlag, Burggrafenstr, 10787 Berlin (DGQ, VDI publications).

3 Descriptive Part

3.1 General Information

3.1.1 Quality Management System

The supplier is fully responsible for the delivered products and services. To meet this
responsibility, the supplier has to prove that a quality management system at least
according to the standards of DIN EN ISO 9001 is in place.

The goal must be, however, to obtain certification according to ISO / TS 16949 and
evidence this by certificate. In this process, measures to continually improve and ensure
the "0 defects initial quality" have to be developed in particular.

The quality management guidelines and specifications provided by IDEAL Automotive

GmbH are binding for the supplier.

If the supplier realizes that design set in the technical documentation or the prescribed
test procedures can be replaced by more appropriate, economical and / or effective
procedures, IDEAL Automotive GmbH expects the corresponding suggestions.

3.1.2 Quality Objectives / Continuous Improvement

Quality goals are zero defects through rigorous quality planning and production control
with a focus on error prevention and continuous improvement. To that end, the
acceptable quality level (AQL) is at 0. This also applies to standard and small parts.
Appropriate standards for acceptance testing (e.g. ISO 2859, ISO 3951, ...) do not apply.

Any exceptions require the written consent of IDEAL Automotive GmbH. In line with a
focus on continuous improvement of products and processes, the supplier must specify
measurable targets and monitor them (for example, reduce waste; reduce process
variations, improvement of process capabilities, etc.).

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3.1.3 Specifications for Suppliers

IDEAL Automotive GmbH reserves the right to agree specifications for the sub-suppliers
of its suppliers to specify quality responsibility on a product basis.

Optional deviations/changes to specification for sub-suppliers demanded by the supplier

require written confirmation by IDEAL Automotive GmbH.

3.1.4 Environment

The processes required to produce the parts as well as the materials used must comply
with state-of-the-art science and technology and the relevant legal requirements.

The legal limits are merely minimum requirements. Changes in legislation have to be
complied with by the supplier without requiring a special notice by IDEAL Automotive
GmbH.

Findings of studies must be made available to IDEAL Automotive GmbH, if required by

law.

Improvements in recycling of products (new materials) must be reported to IDEAL

Automotive GmbH.

An EC Material Safety Data Sheet according to EU 2015/830 has to be attached to first

deliveries and delivery changes regarding hazardous substances and auxiliary materials
(oils, greases, glues, base material for surface coating, additives for dyes etc.).

The same – a written notice and complete documentation – applies to the supply of
materials and parts which release hazardous substances under specific conditions as well
as substances that are difficult to dispose of.

3.1.5 Heavy Metal Ban EC Car Directive (2000/53/EC)

The EC Directive includes a ban on cadmium and restricted use of lead, mercury and
chromium (VI) in vehicles (passenger cars and commercial vehicles under 3.5 tonnes) for
cars that are brought to market after 01.07.2003. The final determination is made by the
transposition into national law. This applies to all vehicles that currently exist, the current
range of products and new developments that are brought to market from 07/01/2003.

It should be noted that the requirements not only have to be met for all newly developed
components, but also all components for which a type approval already has been granted
and sampling was performed. Spare parts of vehicles which are not brought to market
after 2/7/2003 are not affected.

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You, as our suppliers, are responsible for ensuring that the supplied raw materials and
parts meet the requirements of the EC scrapped cars directives.

3.2 Supplier Selection and Release

3.2.1 Supplier Audit

To check the quality abilities as well as during quality losses, IDEAL Automotive GmbH
can perform an on-site supplier “System” audit according to ISO/TS16949 or an IDEAL
Automotive GmbH-specific audit or according to VDA, Volume 6 Part 3 "Process" – audit
to be carried out at the supplier's.

The supplier allows IDEAL Automotive GmbH to visit its manufacturing facilities and
access the necessary documentation within the frame of a previously set appointment.

If the customer of IDEAL Automotive GmbH is directly affected in case of failure and
wishes to visit the manufacturing site, the supplier shall permit this inspection in the
presence of IDEAL Automotive GmbH.

The supplier shall also be visited by IDEAL Automotive GmbH in case of repeated
complaints, massive customer annoyance or anticipated production or delivery stop within
24 hours.

The findings of visits and audits shall be treated confidentially and shall not be made
available to any third parties.

Reasons for a supplier audit can be:

- Procurement contract to a new supplier of IDEAL Automotive GmbH

- If a supplier of DEAL Automotive GmbH is going to produce a new product
- If process-related modifications of facilities, manufacturing sites (organization) or the
quality system (duty of disclosure of the supplier) are implemented
- If the quality standard of the delivered products is persistently or repeatedly negative

For quality matters, the competent IDEAL Automotive GmbH departments provide
support and assistance. The responsibility for the quality of the products, however,
remains with the supplier.
The supplier shall conduct an internal self-audit/process audit every year (the file can be
downloaded via www.ideal-automotive.de) with a product audit to VDA 6.3/VDA 6.5 and
deliver it to IDEAL upon request.
A self-audit according to the formula Q-capability (in the current version) must be carried
out for suppliers delivering for IDEAL products for VW-AG.

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3.3 Order Documentation

3.3.1 Order and Technical Documentation

With the first order, the supplier receives the IDEAL Automotive GmbH technical
documentation. The supplier must ensure that the order related documentation (e.g.
drawings, CAD data, specifications, testing requirements, etc.), if not available, are
ordered in writing from the respective purchasing department of the IDEAL Automotive
GmbH.

The supplier ensures through its distribution system that all concerned bodies always
have the latest version of the IDEAL Automotive GmbH documentation. Invalid/obsolete
documents are to be destroyed or returned to IDEAL Automotive GmbH.

Provided that delivery sources or manufacturer-specific material designations are

prescribed in the technical documentation, and the supplier wants to use other, written
consent must be obtained from the IDEAL Automotive GmbH purchasing department.

3.3.2 Contract Review

The supplier examines the manufacturability of the product on the basis of the technical
documentation. By accepting the contract, he confirms feasibility and assumes full
responsibility for the quality of the product. Deviations from the requirements are only
permitted after written approval by IDEAL Automotive GmbH, and thereafter require a
change in the order documentation.

3.3.3 Data Protection

The supplier maintains a system which ensures that the technical documents, information
and other findings provided by IDEAL Automotive GmbH will not be disclosed to any third
parties.

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3.4 Quality Planning

3.4.1 Production Management Plans

The supplier is obliged to plan its quality management activities.

In particular, the planning results are to be documented, where applicable, in the form of

• a schedule and milestone plan,

• an FMEA,
• process flow diagrams, process layouts, production management plans, pre-series and
series
• testing and manufacturing plans, as well as process or work instructions
• lists of requirements for production facilities, product and process characteristics

3.4.2 Schedule and Milestone Plan

For newly developed parts, the supplier provides a schedule and milestone plan before
the purchase order is placed. This is, after coordination with the IDEAL Automotive
GmbH, a binding part of the contract.

The schedule and milestone plan must include, where applicable, the following data as a
minimum:

- Creation of FMEA's - First Tool Parts

- Creation of Test Plans - Correction Phase Supplier
- Provision of Test Equipment - Date of First Sampling
- Tool Creation Dates - Production and Filling System
- Out-of-tool Samples
(if available)

3.4.3 Quality Discussions

The quality discussion is used for both coordination of the defined quality requirements
and the improvement of quality outcomes.
At the discretion of IDEAL Automotive GmbH, quality discussions can be also arranged
for in coordination with the supplier during the development and production of parts.

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3.4.4 FMEA

An FMEA system “Product” is to be created for those parts for which the supplier has the
design responsibility. An FMEA system “Process” is to be carried out for all parts.

The FMEA system replaces the traditional Design/Process FMEA, and in particular has to
be developed as an FMEA system, if processed assembled components or finished
products that consist of a series of individual parts are involved.

FMEAs of the suppliers are available to IDEAL Automotive GmbH with prior notice. The
FMEA creation must be based on VDA Volume 4, Part 2 in its current version.

FMEA's must be created on the agreed dates.

3.4.5 Quality Assessment of Design Results

In terms of production error prevention and continuous quality improvement, IDEAL

Automotive GmbH plans a quality assessment of the achieved design results
(development concept, development samples) as part of design reviews.

The quality assessment refers to suppliers who are responsible for the design. Review
dates will be set with mutual agreement.

The assessment will be compared with the functional requirements and specifications. If
the results achieved are deviating from these functional requirements and specifications,
the supplier has to develop and implement corrective action.

3.4.6 Process Capability

The supplier carries out process capability studies for all the features that particularly
affect the functionality or safety, or have important quality-determining properties.

The implementation must be made on the basis of VDA Volume 4, Part 1.

The estimated process capability on the basis of pre-production is achieved when the
parameters estimated process capability (Pp> 1.67) and foreseeable process capability
index (Ppk> 1.67) are met. These parameters must be documented and proven by the
supplier during the process of validation.

The process capability of serial production is achieved when the parameters estimated
process capability (Cp> 1.67) and process capability index (Cpk> 1.33) are met. These
parameters are to be documented and proven during serial production with manually

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guided control charts or statistical process control (SPC). IDEAL Automotive GmbH is
allowed to access the documentation upon request.

If the index parameters of the process capability cannot be reached, process

improvements must be implemented, using all available potentials and using appropriate
testing methods so that quality objectives can be met. If defective parts are discovered at
IDEAL Automotive GmbH, the supplier shall ensure that the error is stopped immediately
by appropriate measures.

3.4.7 Test Planning

If an order has been placed, the manufacturer must create test plans for incoming goods,
parts manufacturing, assembly, source and material testing. The test plans can be carried
out according to VDI / VDE / DGQ directive 2619.

All important features of the drawings and technical documents and the function of the
parts (if any) have to be incorporated in the test plans.

If part-based test equipment/measuring instruments are required, the supplier has to

obtain these at its own expense.

The test and measuring equipment must be in place before prototype production.

3.4.8 Delivery Certification / Documentation

In accordance with the certification agreements concluded with IDEAL Automotive GmbH,
compliance with product specifications must be certified by an approval test certificate
according to DIN EN 10204. This certificate has to be added to every delivery
documentation for a production lot or must be pre-sent by fax.

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3.5 Sampling

3.5.1 Definition

Initial samples are parts that have been made entirely with standard serial equipment and
under standard conditions of serial production. The initial sample date will be
communicated to the supplier with the order. The supplier must notify IDEAL Automotive
GmbH about expected deviations from this deadline immediately, otherwise IDEAL
Automotive GmbH reserves the right to bill all the resulting costs to the supplier.

All other samples such as for example prototypes, samples of "pre-production" tools,
samples of serial production tools that are not produced under standard serial conditions
must be clearly marked as such and do not replace the official initial sample.

The initial sample test is carried out with the purpose to release serial production, when all
dimensional, material-relevant and function-based criteria have been met, which – on the
basis of drawings and specifications – have been agreed to between IDEAL Automotive
GmbH and the supplier. If the test results of the manufacturer show that the parts fail to
match drawings and specifications, the manufacturing process must be corrected after
clearance with IDEAL Automotive GmbH and new initial samples have to be presented.

Exception: IDEAL Automotive GmbH gives its consent to a drawing correction /

specification modification, which then leads to a change in the order documents. All
agreements that influence measurement and test results shall be made in writing and
must be attached to the test report.

The initial sampling is carried out in consultation with IDEAL Automotive GmbH either
according to VDA 2 or PPAP (QS 9000) with "Submission-Level” 2 (latest edition). In
parallel with the initial test sample case, the material data is to be documented by the
supplier before the initial sampling in the Electronic Material Data System IMDS database
of the VDA. Information hereto is available on the Internet: http://www.mdsystem.com.

As a matter of principle, the measurement report and material test report must include all
specified properties in the drawings (especially in parts’ samples) and all specifications. In
dimensional reporting, the set-up and the basic alignment for complex parts must be
provided. The set-up, clamping sequence, alignment, and the tools used must be properly
documented and should be fine-tuned with IDEAL Automotive GmbH before the initial
sampling.

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Amended initial sample appointment / re-sampling

If an initial sample is discarded, rejected or approved only under conditions due to

negligence of the supplier, this initial sample must be immediately corrected and
presented to IDEAL Automotive GmbH at the stipulated date. IDEAL Automotive GmbH
reserves the right to bill all resulting costs to the supplier (e.g. additional expenditure for
follow-up testing, costs incurred from final customers etc.).

The supplier agrees to do a part history, so that all suppliers and IDEAL Automotive
GmbH modifications can be tracked consistently with regard to their installation date. This
history has to be made available to the incoming goods inspection department of the
respective plant at each amendment without explicit demand.

Tooling costs are only paid after successful sampling with grade 1 (passed) and complete
IMDS registration.

3.5.2 Master Sample / Border Sample / Reference Sample

Master sample

The values given in technical data under "Master sample" for colour, grain, varnishing etc.
are binding.
The master sample is used for the clear definition of surfaces.
All master samples must generally be stored in places that are protected from outside
influences.
Procurement as well as exchange and replacement campaigns shall be carried out
through the IDEAL Automotive GmbH quality management.

Border sample

Tolerances from the above master sample are set and documented with the aid of
"border samples" with the IDEAL Automotive GmbH quality management.

Reference sample

The reference sample is the last part of a production cycle, and it is kept until the next
production cycle starts.
Should the building status of a part / product deviate dimensionally, in colour or surface
from the technical documentation, this deviation has to be released by IDEAL Automotive
GmbH in writing.
When authorization is granted and the production quantity is defined, this design status
has to be documented with a reference sample.

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3.5.3 Performance test

The supplier is obliged to carry out performance tests for all tool-dependent components
under his own responsibility at his place (e.g. 2TP-Acceptance Report, Run at Rate,
process series, etc. (the file can be downloaded via www.ideal-automotive.de)) and the
result has to be delivered to IDEAL together with the first-off sample documents.

IDEAL reserves the right to be present in this performance test at the supplier's or to
check the result there.

3.6 Series Monitoring

3.6.1 Test Equipment / Measuring Equipment

To ensure test and measurement capability, the supplier is obliged to monitor its test
equipment regularly and record the results. The review has to be in line with state-of-the-
art science and technology (e.g. VDI, VDE, DGQ 2618, DIN / ISO 10012 Part 1, etc.).

3.6.2 Tests / Re-Qualification Tests

The supplier shall ensure, through systematic quality assurance measures, that all
products meet the requirements of the drawings and specifications.

As such quality assurance measures the following is to be regarded:

- Incoming goods inspections

- Monitoring of process parameters
- Statistical process control (SPC) for efficient processes (where applicable)

- 100% inspection for non-capable processes (where applicable)

- Materials testing / endurance tests
- Audit tests (product audits)
- Annual re-qualification tests according to the technical requirements of our supplier
specification (unless otherwise agreed). The test reports regarding the re-qualification
tests must be made available to IDEAL Automotive within 24 hours upon request.

The selection of the necessary measures depends on the manufacturing conditions and
product requirements.

We reserve the right to perform product inspections and/or acceptance tests by our own
or our customers’ staff at your facilities, if necessary.

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3.6.3 Preventive Maintenance

By means of preventive maintenance (eg according to VDI 2890), the supplier shall
ensure that the tools, machines and equipment used are always operational and ready for
use.

3.7 Complaints

3.7.1 Quality and Delivery Problems

During production problems or events that could impair quality, delivery date or quantity of
the ordered materials, the supplier shall immediately disclose (orally or in writing) all
problems.

The supplier is required to take measures to ensure a continuous supply of material.

Such measures are for example:

- Safety stock
- Alternative production facilitites
- Alternative source of supply of pre-material
- Contingency plan

3.7.2 Deviations

In case of any deviation from the currently valid drawing status, master sample or border
sample, the supplier must immediately inform IDEAL Automotive GmbH.

He has to inform IDEAL Automotive GmbH in due time and prior to delivery on the nature
and extent of the deviation.

A special release in writing is issued by the quality management of IDEAL Automotive

GmbH.

When released, the parts shall be marked on the goods tag with the corresponding
indication with regard to:

- Type of deviation
- Special release, approved, department, name

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3.7.3 Quality Disturbances

For incorrectly supplied parts or materials where the fault unarguably lies with the supplier
and which are accepted by the supplier, the supplier is responsible for implementation of
the necessary rectifications, repair, conversion and sorting, and has to cover the costs
including all resulting costs and required special transports.

The time frame for the action is set by IDEAL Automotive GmbH, and a default situation
under the statutory scheme may occur.

If a shipment is returned to the supplier, a new, binding delivery date for perfect goods
shall be determined.

3.7.4 Test Report / Complaint

IDEAL Automotive GmbH test reports or complaints are created when complaints occur.

For inquiries about the report / complaint, the test report / complaint number and the
responsible officer have to be necessarily provided.

To issue an audit report approved by the supplier, a flat fee of € 100 is levied. Other costs
(see 3.7.3) shall be collected individually.

Costs can be:

Rejection of PPFB: at cost but min. 250 €
Visits due to faulty delivery: at cost
Repeated audits due to "B" or "C" classification: at cost
Complaints: at cost but min. 100 €

We apply the IDEAL intensification process on internal instruction that can be provided on
request.

3.7.5 Reduction of Incoming Goods Inspections

Considering the quality assurance obligations assumed by the supplier, IDEAL will
check the incoming consignments only for article numbers, quantities, visible transport
damage and obvious defects that can be detected with the customary attention.
Samples will not be retained. We will notify the supplier immediately after detecting a
defect, at the latest within one calendar week. Sections 377, 381(2) of the German
Commercial Code (HGB) are excluded.

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In addition, IDEAL Automotive GmbH shall execute quality-related sample test at goods
receipt, depending on the results of the quality assessment tests of both the supplier and
the supplier's products, executed by IDEAL Automotive GmbH at regular intervals.

3.8 Delivery Rating System

IDEAL Automotive GmbH continuously assesses the quality of the supplied products. All
incoming shipments are rated based on the VDA publication series "Quality Management
in the Automotive Industry – Volume 2".

The entire delivery rating system is used to monitor and correct the quality performance
of suppliers. The quality of performance is considered as a decisive factor for awarding
new contracts.

In terms of our assessment of suppliers, we demand 100% compliance of delivery dates

and quantities as ordered. Deviations hereto shall have to be agreed orally or in writing
with the purchasing agent / dispatcher.

The evaluation of quality performance, time and quantity correctness, cooperation,

special transport frequency, as well as of existing quality management and environmental
certificates is included in the semi-annual supplier evaluation. The supplier will be notified
of the assessment results in writing.

Special transports must be recorded with a corresponding note on the delivery

documents.

3.9 Documentation / Product Safety Representative

<S/C>
S
A
3.9.1 Mandatory Documentation Parts (Safety Symbols: D / / R
/ / L / DS)

This paragraph concerns only parts or materials that are issued by the IDEAL Automotive
GmbH specifications for suppliers (see Section 3.1.3) and explicitly marked as such.
Basis for the implementation of the documentation is the VDA brochure, Volume 1
“Documentation-requiring parts for the automotive manufacturers and their suppliers”.

The symbols show that there is a legal documentation requirement (requiring

documentation part). Documentation-requiring parts are products that are expected to
bear a special risk under product liability.

Parts and their properties are distinctively specified in the IDEAL Automotive GmbH
documents. The documentation obligation lies with the supplier.

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The supplier undertakes to file its documentation so that it is possible to fully prove at any
time that specifications were met, and appropriate tests were proven and recorded. The
documentation requirement extends over a period of at least 15 years or customer-
specific duration, and has to be implemented in proper form (e.g. stored in a fireproof
metal cabinet); proper care has to be evidenced, if so required (discharge certificate).

The documents shall be handed out on request without delay to the IDEAL Automotive
GmbH officer and/or the competent authority. This concerns mainly the detection of low
flammability in accordance with MVSS 302.

The supplier has to conduct annually a D-part audit, and deliver it to IDEAL-Automotive
upon request, for components which are marked as D-parts in the supplier specification
and for assy parts (ZSB) which are delivered to the VW Group.
This procedure is clearly described in the supplier specification for the respective
components.
The audit checklist for the D-part audit can be downloaded via www.ideal-automotive.de.

3.9.2 General Documentation

For all parts and features, which do not require documentation, records and regulations
have to be kept for at least five years and submitted on request to IDEAL Automotive
GmbH. In addition, the respective retention periods required by law have to be respected.
The retention periods for documentation-requiring features are covered in VDA Volume 1
Chapter 3.9.1.

3.9.3 Product Safety Representative

The supplier has to appoint internally a product safety representative and his deputy and
communicate the telephone number/e-mail addresses to IDEAL Purchasing Department.

3.9.3.1 Tasks of the product safety representative

1. Knowledge
1.1 of the product made: of the functional principle, manufacture in detail at his site and
intended use at the customer's
1.2 of the Product Safety Act and the Product Liability Law
1.3 of methods for risk assessment

2. Tasks

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2.1 Contribute to, elaborate and set priorities for removing or avoiding defects which
could compromise product safety in the product development phase (prevention of
nonconformities)
2.2 Contribute to or initiate and verify design/process FMEAs regarding safety-relevant
scopes
2.3 Contribute to new start-ups of products in the scope of "lessons learned" for avoiding
nonconformities which would compromise product safety in the fields of
manufacturing, assembly and test processes
2.4 Create "lessons learned" check lists for qualified checks of designs and processes
under aspects which are relevant for product safety
2.5 Independent execution or initiation of regular manufacturing and product checks of
the current series to confirm product safety for use (incl. foreseeable misuse) and
starting and following-up of (immediate) measures in the event of relevant
nonconformities
2.6 Assessment of failure probabilities and frequency of the respective nonconform
product
2.7 In the case of complaint the planned remedy measures, their prompt implementation
and sustained effect shall be verified. The effectiveness of the measures has to be
confirmed in writing by the supplier's product safety representative.
2.8 The communication (incl. voluntary report) runs via the QA component representative
of the customer (QA purchased part organisation or QA product engineering) incl.
communication of all details.
The product safety representative ensures the quality of the information
(unambiguous details on the characteristics of the nonconformity, limitation, failure
probability, etc.) and the confidentiality of the communication.

3. Competences
3.1 The product safety representative reports directly to the management, plant manager
or the head of the quality assurance department.
3.2 Start procedures to remove components from the running series, e.g. in the case of
safety and image relevant complaints (even if they put the use for series delivery at
risk due to safety reasons) incl. resource sovereignty for test rig tests, validation,
etc...

3.10 Shipping and Labelling

3.10.1 Labelling of Serial Products

If labelling of parts in the drawing or specification is required, it must be included as

requested in the drawing.

3.10.2 Packaging and Shipping

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The condition of incoming goods, the packaging and the amount of packaging for
purchased parts and materials are reported by IDEAL Automotive GmbH purchasing
department.

At each packaging unit, a VDA goods tag according to VDA 4902 Version 4 has to be
attached. Only with prior written approval (where applicable), the marking of packaging
units can be reduced to the following minimum information:

- Designation - Date of Delivery Note

- Part no., Client - Volume / Quantity
- Modification Index / Status - Batch Number
- Delivery Note No. - Production Date
The manufactured modification status (modification index drawing, where applicable)
must generally be indicated on this goods tag and on the delivery note.

Further, additional labelling of parts, containers or consignments shall be defined as

required by IDEAL Automotive GmbH.

Clear instructions for the handling of the goods ("Caution: fragile" or similar) are required.

Auxiliaries and additives (glues, primers, activators, etc.) must have a shelf life marking
and state a recommended storage temperature.

4 Other

4.1 Service Performance

IDEAL Automotive GmbH expects punctuality for the goods deliveries as well as
cooperative and flexible responses to short-term requirements.

4.2 Warranty, Product Liability, Insurance

Unless a longer warranty period has been specifically agreed or is legally valid, the
warranty period for all products supplied to IDEAL Automotive GmbH shall be 24 months
after delivery of parts / materials.

The supplier is aware that its company and the other IDEAL Automotive GmbH suppliers
are in the supply chain of consumer goods. IDEAL Automotive GmbH shall therefore be
entitled to the rights according to Sections 478, 479 of the German Civil Code against the
supplier.

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The IDEAL Automotive GmbH resulting related warranty costs shall be borne by the
supplier.

IDEAL Automotive GmbH expects the supplier to familiarize itself about product liability
legislation and its related obligations for it.

IDEAL Automotive GmbH recommends suppliers to cover product liability claims against
them by a respective insurance.

4.3 REACH
We are a downstream user of chemicals according to EC Directive 1907/2006 (REACH).
If and to the extent that the supplier supplies substances that fall under the application
range of REACH-VO, it shall be under obligation to register the substances supplied to us
according to the regulations of REACH-VO; we, in turn, shall be required to provide the
necessary information.

In addition, the supplier shall be under obligation to comply with its notification obligations
according to Section 33 REACH-VO for substances of the candidate list with a
concentration of more than 0.1 mass %. This applies to products as well as packaging.

5. Modification Legend

Index Description of Modification Created by Date

0 Document created B. Ullrich 18.12.00

1 Paragraph 3.1.5 added S. Frey 26.11.04

Paragraph 3.4.6 modified

Paragraph 3.5.1 modified

Paragraph 4.2 modified

2 Paragraph 3.1.1 (ISO/TS16949) and B. Ullrich 08.04.05

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Paragraph 3.4.8 (DIN EN10204) updated

3 Paragraph 3.2.1 (ISO/TS 16949) added S. Frey 08.05.07

Paragraph 3.4.1 Production Management Plan

modified

Paragraph 3.4.8 Tool Test Certificate modified

Paragraph 3.8 Special Transports added as

criteria

Paragraph 3.9.1 Safety Symbols updated

4 Paragraph 3.6.2 Re-Qualification Test added E. Hörl 16.02.09

Paragraph 3.9.2 Tendered as Requiring

Documentation
5 Paragraph 3.2.1 Supplier Audit modified S. Frey 18.11.10

Paragraph 3.6.2 Re-Qualification modified

Paragraph 3.9.2 Documentation modified

Paragraph 4.3 REACH added

6 Paragraph 3.1.2 B. Ullrich 18.11.13

Paragraph 3.2.1

Paragraph 3.5.3

Paragraph 3.9.

Paragraph 3.9.1

Paragraph 3.9.3

7 editorial revision D. Renzing 30.07.15

8 Paragraph 3.7.5 D. Renzing 20.04.16

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