Common use of QUALITY PROBLEMS Clause in Contracts

QUALITY PROBLEMS. 1. In case of deviations from the product- or the performance specification (drawing, technical terms of delivery, material, material properties, etc.) or from released procedures, the Sup- plier shall obtain a written deviation permit from GAUDLITZ before delivering the products. Potential arising expenditures which result from granting the deviation permit shall be at the Supplier’s expense. 2. If the Supplier or his subcontractor detects an increase in deviations of the actual condition of the Products from their specified condition (quality fall-offs), he shall, without delay (with- in 24 hours), inform the Ordering Party thereof and about the remedial action he intends to take. Until those corrective actions will take effect, the Ordering Party is able to demand special measures (e.g. higher testing frequency) for an appropriate period. It shall be for the Sup- plier to prove the restored accuracy of the contractual products and the achievement of the arranged quality level. Hereby arising additional costs are at the Supplier’s expense, pro- vided that the quality fall-off was not verifiably caused by the Ordering Party. 3. The Supplier shall, by marking the packing (traceability) or, if this should be impossible or inappropriate, by other suitable measures, take care to ensure that, as soon as any non- conformity of any of the Products occurs, he can identify which further Products might be affected. The Supplier shall inform the Ordering Party about his marking system or other measures, so as to enable the Ordering Party to carry out its own investigations to the ex- tent necessary. In the event of a quality problem, there shall be the possibility of access to lot and produc- tion data within one working day. Insofar as the problems issue from the quality of the products, the contracting parties are obliged to elaborate on approaches within one working day after appearance of the problem. The Supplier shall ensure that a short-term access to resources for inspecting and analyzing defects will be guaranteed at any time. 4. In the event of complaints, GAUDLITZ shall ask the Supplier for the presentation of an 8D report. The deadlines set therein, shall be considered by the Supplier. If it is not possible for the Supplier to meet the set deadlines, thus he shall communicate this in combination with a well-founded interim report. Final reports of error analyses shall to be meaningful, conclu- sive and complete with regard to contents. 5. For every justifiable complaint, the accrued additional costs shall be charged to the Suppli- er’s account. Additionally accruing efforts or damages on the premises of GAUDLITZ and / or its customers, due to defective products of the Supplier, shall be charged to the Suppli- er’s account. The Supplier ensures that he has contracted a product liability insurance at an appropriate amount.

QUALITY PROBLEMS. 1. In case of deviations from the product- or the performance specification (drawing, technical terms of delivery, material, material properties, etc.) or from released procedures, the Sup- plier shall obtain a written deviation permit from GAUDLITZ before delivering the products. Potential arising expenditures which result from granting the deviation permit shall be at the Supplier’s expense. 2. If the Supplier or his subcontractor detects an increase in deviations of the actual condition of the Products from their specified condition (quality fall-offsfalloffs), he shall, without delay (with- in within 24 hours), inform the Ordering Party thereof and about the remedial action he intends to take. Until those corrective actions will take effect, the Ordering Party is able to demand special measures (e.g. higher testing frequency) for an appropriate period. It shall be for the Sup- plier Supplier to prove the restored accuracy of the contractual products and the achievement of the arranged ar- ranged quality level. Hereby arising additional costs are at the Supplier’s expense, pro- vided provided that the quality fall-off was not verifiably caused by the Ordering Party. 3. The Supplier shall, by marking the packing (traceability) or, if this should be impossible or inappropriatein- appropriate, by other suitable measures, take care to ensure that, as soon as any non- conformity non-con- formity of any of the Products occurs, he can identify which further Products might be affectedaf- fected. The Supplier shall inform the Ordering Party about his marking system or other measures, so as to enable the Ordering Party to carry out its own investigations to the ex- tent necessaryextent nec- ▇▇▇▇▇▇. In the event of a quality problem, there shall be the possibility of access to lot and produc- tion production data within one working day. Insofar as the problems issue from the quality of the products, the contracting parties are obliged to elaborate on approaches within one working day after appearance of the problem. The Supplier shall ensure that a short-term access to resources for inspecting and analyzing defects will be guaranteed at any time. 4. In the event of complaints, GAUDLITZ shall ask the Supplier for the presentation of an 8D reportreport according to VDA Standard. The deadlines set therein, shall be considered by the Supplier. If it is not possible for the Supplier to meet the set deadlines, thus he shall communicate com- municate this in combination with a well-founded interim report. Final reports of error analyses anal- yses shall to be meaningful, conclu- sive conclusive and complete with regard to regarding contents. 5. For every justifiable complaint, the accrued additional costs shall be charged to the Suppli- erSup- plier’s account. Additionally Additionally, accruing efforts or damages on the premises of GAUDLITZ and / or its customers, due to defective products of the Supplier, shall be charged to the Suppli- erSup- plier’s account. The Supplier ensures that he has contracted a product liability insurance at an appropriate amount.