Supplier Quality Rejection Policy (Revised)

26 September 2006

Effective immediately, Paulstra CRC is taking action to shift the responsibility of sorting defective purchased components from Paulstra CRC to the supplier. The manufacturing facility will not routinely sort defective purchased product.

Paulstra CRC (as necessary) will perform “Short-term” sorting at our facilities to avoid any disruption of product to our customer. However, the “Short-term” Sorting Charges will be debited to the responsible supplier.

In the event product is rejected at any Paulstra CRC facility, the names of 3rd party sorting companies will be provided to the supplier. The supplier is responsible for either managing the return of defective product to their facility or establishing contact with a 3rd party source for sorting product, certifying product and returning the certified product to Paulstra CRC). Paulstra CRC will not enter into any 3rd party contracts between the supplier and the 3rd party sorting company.

Paulstra Approved Inspection Sources

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