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KEIPER GmbH & Co. KG Hertelsbrunnenring 2 D-67657 Kaiserslautern

Kommanditgesellschaft: Sitz Kaiserslautern, Registergericht Kaiserslautern HRA 2352

USt-IdNr. DE 120 803 876

Komplementärin: KEIPER Verwaltungs-GmbH, Sitz Kaiserslautern,

Registergericht Kaiserslautern HRB 3265

Geschäftsführer: Elmar Deegener (Vorsitzender), Frank Jourdan, Hubert Kloß

Quality Management Rules

Scope of application

The following regulations apply to supplies and services of KEIPER incorporated in

products of the customer or sold as products to the customer; they shall be equally

binding for both the customer and KEIPER.

They are applicable even if the customer may have communicated its own diverging

Quality Management Rules. Customer Quality Management Rules will not be

recognized, even if KEIPER does not expressly object to them again after their

receipt at KEIPER.

Quality Management System

The QM system of KEIPER GmbH & Co. KG is certified in accordance with ISO/TS

16949:2002.

KEIPER shall be only responsible for the quality of its supplies furnished or services

provided. The responsibility for quality for customer furnished equipment or

deliveries shall be at the customer.

In case of quality problems, for example, the customer shall be permitted, upon

previous coordination and agreement with KEIPER, to perform a process audit by its

staff.

Environmental Management System

The Environmental Management System of KEIPER GmbH & Co. KG is certified

according to DIN EN ISO 14001: 2004.

KEIPER will make the material data required by the End of Life Vehicle directive

available to the customer via the International Material Database (IMDS).

Advance quality planning

KEIPER will follow the basic principle of “fault prevention rather than fault detection”.

A systematic advance quality planning will be conducted.

1. Producibility

KEIPER will check the supplies and services being subject of an order with regard to

its producibility. Producibility in this context means that the requested product can be

manufactured under series production conditions, particularly with respect to

requirements such as:

- Capacities / quantities

- Deadlines or scheduled times

- Requirement specification / Performance specification

- Drawings

- Specifications

- Process capabilities for SCs and CCs with Cpk > 1.33

The producibility will be checked for all new and modified parts / projects. The

customer will be notified of problems.

In the case that the customer is in charge of the design the customer will provide

KEIPER with all documents required for reviewing the producibility, such as:

- Drawings respectively CAD-data of single parts, components and assemblies

- Design-FMEA including all special characteristics (SCs and CCs)

- Interface-FMEA to the OEM

- Specifications

- Test specifications

- Listing of all special characteristics (SCs and CCs)

- Documents containing special customer requirements

2. Project plan / milestone plan

For the purpose of project planning and project execution KEIPER will prepare a

project or milestone plan. The project plan shall contain the following milestones:

- Creation of a Design- and a Process-FMEA

- Creation of a control or production control plan (incl. critical characteristics CCs

and significant characteristics SCs)

- Planning and provision of the test equipment

- Manufacture of prototypes (if necessary)

- Manufacture of pre-production samples

- Determination of the machine or process capability (for CCs and SCs)

- Prototype approval by the end customer, being provided by the customer

- Performance of initial sampling as per QS 9000 / PPAP or VDA 2 / PPF)

- Production start

- Start and target dates, resources and actual degree of performance

KEIPER shall communicate the project status to the customer’s responsible project

manager in specified intervals.

3. Inspection planning and test equipment planning

Systematic inspection planning and test equipment planning will ensure that for new

and/or modified products, manufacturing processes, etc:

- All characteristics of importance to the quality have been registered,

- The inspection methods and frequencies to be used are appropriate, and

- The test equipment is correctly designed and available in due time before the

start of pilot production.

The characteristics of importance to the quality shall be included in the drawings and

specifications. Determination of critical and significant product characteristics which

have to be considered specifically in the inspection planning and test equipment

planning shall be carried out in coordination with the customer and taking the FMEA

findings into account.

A control plan shall contain the following information:

- Master data (such as manufacturer, designation, drawing no., technical revision

status, obligatory documentation and author / user / date)

- Inspection characteristic(s) - (at least all CCs and SCs)

- Test equipment

- Testing frequency

- Testing method

- Type of test (quantitative or qualitative)

- Sample size or 100% inspection

- Corrective actions in the event of nonconformities (or individual determination, e.g.

in the test instruction)

The required test equipment shall be manufactured or furnished by KEIPER at its

sole responsibility and shall take economic and manufacturing aspects into

consideration.

4. Evidence of process capability

The selection and determination of the characteristics for which evidence of process

capability has to be adduced, shall be made as early as possible. All critical and

significant characteristics for meeting the coordinated specification shall be

considered.

- Preliminary process capability

Pp; Ppk > 1,67

- Process capability (long-term)

Cp; Cpk > 1,33

Sample submission procedure

The submittal of samples shall follow QS 9000 / PPAP-directive or VDA 2 / PPF

according to coordination with the customer. Unless otherwise agreed, Submission

Level 2 shall apply as standard.

The following documents will not be handed out. But customer employees will be

able to inspect them on site:

- Drawings or CAD-data of modules and single parts used, adaptation parts and

assembly drawings excepted

- FMEA documents, interface-FMEAs excepted

- Control plans

- Process layout and process-related instructions

Labeling, storage and packaging

KEIPER shall label its goods in such a way that the product status and the

inspection status are to be clearly identified at any time, from receipt of the goods

until dispatching of the goods.

The goods shall be stored in such a way that they are sufficiently protected against

loss / theft. The storage shall also exclude damages or impairment of material

properties due to environmental impact.

Unless otherwise specified by the customer, KEIPER shall be responsible for the

appropriate packaging for the designated shipping.

The cargo carriers containing goods ready for dispatch shall as a standard be

provided with a VDA label and a QA certificate. The passing of the risk shall be

governed by the conditions stipulated in the contract.

Documentation and traceability

Special archiving documents (DmbA) shall be kept for 15 years after the product has

been delivered to the customer. This shall enable the specified relevant product or

process data to be documented and in addition it shall also permit the corresponding

traceability of the products (in coordination with the customer, if applicable).

Production / series monitoring

By means of regular monitoring and documentation of process parameters and

product characteristics KEIPER shall ensure a stable and capable production

sequence and thus the quality of the manufactured products. For CCs and SCs the

use of SPC (Statistical Process Control), shall be planned and implemented where

appropriate and useful.

Nonconforming parts

Nonconforming parts occurring in the production of KEIPER will as a matter of

principle be selected, marked and separated. A mixing with acceptable parts shall be

excluded to ensure that only contractual items free of deficiencies are delivered.

KEIPER shall be entitled to supply products that deviate from the specification or the

test specification coordinated with the customer, if a deviation permit approved by

the customer exists.

Incoming inspection at the customer’s plant

The customer shall inform KEIPER of quality deviations immediately upon their

detection at incoming inspection or whenever during the course of ordinary

business.

Customer complaints

KEIPER shall respond immediately to complaints relating to nonconforming

contractual items concerning defined and coordinated specifications. Within 24

hours, or as individually agreed, KEIPER shall submit to the customer a report (8D-

Report) containing at least the following information:

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- Description of the nonconformance

- Cause of the nonconformance (if determined within 24 hours)

- Initiated immediate actions (damage limitation)

- Remedial actions (elimination of cause immediately after determination of the

cause)

- Preventive actions to avoid repetition

- Times/dates for actions and persons responsible for their execution

Rejection of nonconforming supplies / services

Prior to the rejection or rework of nonconforming supplies / services the customer

and KEIPER coordinate the actions to be taken in order to minimize the possible

damages.

1. Occurrence / detection of a nonconformance

In case of detection of nonconformance and in consideration of assuring the

production and the readiness to deliver, the following actions as the case may be

shall be initiated:

- Return and exchange without delay

- Separation by KEIPER

- Rework by KEIPER

- Replacement by KEIPER

The costs for activities such as sorting, rework and scrapping will only be borne by

KEIPER, if the nonconformance making necessary these activities are at the sole

default of KEIPER and if it concerns only the contractually agreed scope of delivery

at the time of delivery of the goods directly at the customer’s plant, i.e. without

further processing.

In principle, however, the absorption of the activities and the costs associated

therewith has to be settled between the customer and KEIPER in advance for each

individual case on the basis of ordinary trade usage.

2. Information exchange / examination of defects

The parties agree to inform each other immediately in case of possible damage risks

and damages that have already occurred. They agree to work together on measures

to avoid risks so that these measures can be smoothly carried out. Upon request

KEIPER shall support the customer in the analysis of causes of nonconformance

that can be attributed to the product supplied by KEIPER.

Secrecy

Each party assures that it will keep information and knowledge, that it has received

from its partner– by whatever means – secret and will not make them accessible to

third parties or use them for other than the intended purposes without the written

consent of the partner.

This obligation shall persist for a period of 3 years following expiration or termination

of this agreement.