SUPPLY CHAIN

ADVANCED MATERIAL SPECIALTY INC. (hereinafter referred to as AMSpec) should inform your company according to AS9100: D Aviation, Space and Defense Industry Quality Management System Document “8.4.3 Information to External Suppliers”, and please cooperate:

1. Your company must pass AMSpec’s written or on-site evaluation before becoming a qualified supplier.
   • Whether to provide relevant technical identification materials (specifications, drawings, process requirements or work instructions).
   • Whether there are obvious controls on good and defective products – Defect Good Control
   • Whether there is Tooling management and control of tooling/mold/checking tools – Tooling Management
   • Whether there is obvious control over the ability and quality of personnel – Ability
   • Whether the equipments are regularly maintained – Maintenance for Equipments
   • How is the integrity of the quality system – Quality Management System
   • Whether the equipments accuracy meet – Precision of Equipment
     Is the delivery of the order (delivery date, quality) as required by the contract – Contract
   • Whether the finished product is properly packaged and packaged according to the agreed method – Package
   • Whether there are measures for quality exception handling – Management by Exception
   • Whether there are inspection standards and operating standards and the effective implementation – Inspection Standard and SOP
   • Whether it can cooperate with the development of trial products and have a complete record and report – Prototype Records and Reports
2. If your company finds that the process, product or service is defective during the production, please notify AMSpec immediately to discuss the disposal method.
3. Your company has the obligation to assist AMSpec in preventing the use of counterfeit parts. The relevant requirements are as follows:
   • Your company shall establish and maintain counterfeit product prevention and control mechanism to ensure that counterfeit products are not delivered to AMSpec.
   • Your company can only purchase directly from original parts manufacturers, authorized distributors, and after-sales manufacturers for products that are directly delivered or processed to AMSpec.
   • The product shall verify the goods can be traced back to the original part manufacturers, aftermarket manufacturers or authorized distributors, identifying the company names and addresses of all supply chain intermediaries from the part manufacturer to the direct source of the product.
   • The products delivered by your company should provide the manufacturer’s certificate or the third-party laboratory approved by AMSpec to conduct the testing and selecting process applicable to the product.
   • Ensure that the test and inspection records of your company should be provided to AMSpec’s quality assurance department for delivery verification.
   • If your company suspects or finds counterfeit parts in the delivered items, you should provide a written notice to the quality assurance and purchasing department of AMSpec. And take measures to ensure the counterfeit goods are not allowed to enter the supply chain.
   • Your company may use this clause or an equivalent clause in the manufacturer’s contract for delivering or processing the products delivered to the company.
   • Your company should ensure the counterfeit prevention plan includes education and training of personnel related to your company’s orders.
4. If your company has any changes in manufacturing processes, products, services, suppliers or factory locations, you must immediately notify AMSpec and discuss countermeasures.
5. For AMSpec’s orders, your company needs to manage internal suppliers and meet the requirements of AMSpec’s customers and AMSpec’s.
6. Your company needs to provide test samples for design approval, inspection/verification, investigation or audit according to the requirements of AMSpec.
7. In accordance with the requirements of different customers, properly keep the order production records until the deadline required, and destroy them with the agreement of AMSpec and the regulatory agency.
8. It is necessary to cooperate with the regulatory authorities, AMSpec’s customers and AMSpec’s inspection of facilities and documents at any level of your company’s supply chain.
9. After confirmed as a qualified supplier through the initial evaluation, AMSpec will conduct supplier evaluation month by month. The evaluation criteria are as follows:
   The total score of quality (purchase yield rate) and delivery date (delivery date achievement rate) is 100 points; 10 points will be deducted for each return, 5 points will be deducted for each delivery delay, and so on. The assessment results are compared with the following supplier performance assessment grading table, and the suppliers are divided into four levels: