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1 Daimler Trucks rth America Supplier Online: Quality Manual Page 1 of 1 Daimler Trucks rth America Effective: July 11, 2008 Foreword DTNA, LLC Quality Requirements Supplier Quality Evaluation Page Production Part Approval Process Statistical Process Control Supplier Corrective Action Masters of Quality - Supplier Quality Award for Excellence Supplier Disapproval Updates (change history) This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information

2 Daimler Trucks rth America Supplier Online: Supplier Quality Manual foreward Page 1 of 2 Daimler Trucks rth America Quality Policy Daimler Trucks rth America LLC is committed to continually improve the performance of its brands in all aspects of our customers' expectations and experiences with our products, services and people, while maintaining our commitment to the environment and safety. Purpose To inform all suppliers of the quality requirements of Daimler Trucks rth America, LLC and all of its subsidiaries, divisions, and Business Units. Scope Includes all suppliers of production material, tooling, and services to all Daimler Trucks rth America subsidiaries and divisions. Points of Contact If you have questions concerning this manual or the DTNA quality procedures, contact the appropriate Business Unit Quality Department or the Corporate Quality Assurance Department. Resources American Society for Quality (ASQ) Registration Accreditation Board (RAB) International Register of Certified Auditors (IRCA) +44 (0) Automotive Industry Action Group (AIAG) This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved.

3 Daimler Trucks rth America Supplier Online: Supplier Quality Manual foreward Page 2 of 2 Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

4 Daimler Trucks rth America Supplier Online: Daimler Trucks rth America Require... Page 1 of 1 Daimler Trucks rth America Purpose To define the suppliers' responsibility for compliance to Daimler Truck rth America quality requirements. Scope This applies to suppliers of production material, tooling, or services to any Daimler Truck rth America Business Unit. Procedure Suppliers must meet the following Quality Assurance requirements before business is awarded to them: I. 3rd party Registration to ISO 9001:2000; or II. 3rd party registration to ISO/TS 16949; or III. Completion of the Quality Assurance Supplier Self-Survey with a score of 75% or higher on all sections, a score of 6 or higher for each question, and agreement to achieve 3rd party registration to ISO 9001:2000 or ISO/TS within one year. Depending on the scope of the business intended, DTNA may require an on-site assessment. Low volume suppliers may be exempt* from certification requirements depending upon the nature and/or quantity of products and services provided. *See Supplier Quality Evaluation for Exemption List. This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

5 Daimler Trucks rth America Supplier Online: Supplier Quality Evaluation Page 1 of 2 Daimler Trucks rth America Purpose To define the suppliers' role in Daimler Trucks rth America's supplier quality evaluation process. Scope This applies to suppliers of production material, tooling, or services to any Daimler Trucks rth America Business Unit. Procedure Suppliers are required to be third party registered to ISO 9001:2000 or ISO/TS 16949* Suppliers are evaluated through on-site assessment or supplier self-surveys A self-survey becomes necessary if the supplier has not achieved ISO 9001:2000 or ISO/TS registration It then would be necessary for completion of the Quality Assurance Supplier Self-Survey: with a score of 75% or higher on all sections, a score of 6 or higher for each question, and agreement to achieve 3rd party registration to ISO 9001:2000 or ISO/TS within one year A DTNA self-survey document will be provided to the supplier if necessary. On-site Assessment results in classification of the supplier into one of three categories % 1 = Suitable in principle as supplier to DTNA 50-79% 2 = Could become a suitable supplier with support <50%

6 Daimler Trucks rth America Supplier Online: Supplier Quality Evaluation Page 2 of 2 3 = t suitable as a supplier to DTNA * Certain suppliers may be exempt from certification requirements depending upon the nature and/or quantity of products and services provided to DTNA. Examples of suppliers who may be considered exempt from certification requirements are: Low volume suppliers of custom components. Suppliers of prototype parts/assemblies. Providers of warehouse or clearinghouse services. Suppliers of other non-manufacturing related or non-value added services. Exempt status is determined at the discretion of Corporate Quality Assurance or Business Unit Quality Assurance Management. Exempt suppliers are not exempt from performing PPAP. If you are not ISO 9001:2000 or ISO/TS certified, your parts may be subject to closer scrutiny. This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

7 Daimler Trucks rth America Supplier Online: Production Part Approval Process Page 1 of 3 Daimler Trucks rth America Purpose To define the suppliers' role and responsibility in the approval process of purchased parts and tooling for production purposes. To determine if all customer engineering design record and specification requirements are properly understood by the supplier and that the process has the potential to produce product consistently meeting these requirements during an actual production run. Scope This applies to suppliers of production material or tooling to any Daimler Truck rth America Business Unit. Procedure Production part approval is required as defined in "Production Part Approval Process" (PPAP) published by the AIAG. All applicable elements are to be completed and retained on file at the supplier's location. While this Procedure is intended to cover all situations normally occurring during the submission process, questions that arise should be directed to the appropriate production part approval coordinator - DTNA Corporate Quality Assurance or Business Unit Quality Assurance. All requested PPAP document submissions are to be sent to DTNA Corporate Quality Assurance or the requesting Business Unit Quality Assurance Department. When a sample part is requested, the above still applies and copies of the PSW, Dimensional Report, and marked print must accompany the sample part(s) to be shipped to the specified plant. Corporate and Business Unit Quality Assurance review applicable documents for new and revised parts and assemblies, as well as for any design or process changes warranting notification or submission as indicated in PPAP. Submission and approval requirements are determined using individual judgment and the risks associated with each part, as outlined in the Production Part Approval Process flowchart. When families of parts occur, and evidence of supplier quality planning for one part (parent) in the family of parts is deemed sufficient, the remainder of the parts in the family will be approved with the approval of the parent part.

8 Daimler Trucks rth America Supplier Online: Production Part Approval Process Page 2 of 3 Parts received prior to PPAP approval without the required documentation (noted above) will be rejected by DTNA Plants. Parts such as standard fasteners, fittings, raw materials, components of an assembly, etc., are defaulted to approved status. Also, parts below estimated annual usage of 150 such as Custom Engineered parts are defaulted to approved status as well. However, Suppliers must document steps taken to make certain that parts conform to specifications. Corporate and Business Unit Quality Assurance determine the submissions and approvals required for purchased parts and tooling according to the complexity of the part and Supplier's performance history. The PPAP default level for all parts is Level 1 (excluding Appearance Approval Report unless specifically requested). Approval of submitted samples and/or documentation, default or requested, is required prior to supplying production volumes unless a documented waiver is obtained by the supplier from Corporate or Business Unit. Interim approval for a limited time or piece quantity may be granted if the supplier's root cause, action plan, and timeframe are acceptable to the appropriate production part approval activity. If a supplier fails to complete PPAP prior to the start of production, they must comply with the following "Exception Conditions": All parts shipped to DTNA must be 100% inspected. All characteristics per the drawing must be inspected and conform to specification. If parts do not conform to specification, contact DTNA Corporate Materials prior to shipping parts. Identify each package or container with a sheet of 8 1/2 x 11 inch, heavy bond white paper, with at least 1 inch black lettering that identifies the parts as conforming to the exception conditions of DTNA Production Part Approval Process 09-R074. Records of the required inspection described above must be maintained by the supplier and be made available to DTNA Quality Assurance upon request. Parts submitted without required documentation will be rejected. THIS PROCESS WILL REMAIN IN EFFECT UNTIL PRODUCTION PART APPROVAL PROCESS IS APPROVED. DTNA reserves the right to review and/or audit all supplier PPAP records. The recommended method from suppliers is electronic submission of the PPAP forms. The supplier for the length of time that the part is active plus one calendar year must maintain production part approval records. Sample submissions are to be adequately labeled and tagged by

9 Daimler Trucks rth America Supplier Online: Production Part Approval Process Page 3 of 3 the supplier. Plant will perform the Dimensional Results verification and communicate results to Corporate. Production Part Approval Process - Buy Part Flowchart Production Part Approval Process - Exception Conditions Flowchart Make Part Approval Process Flowchart This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

10 PRODUCTION PART APPROVAL PROCESS - Exception Conditions - Date: Supplier: Job: PU/ME: Daimler Trucks rth America (DTNA) Quality Assurance has issued Production Part Approval Process and/or Initial Sample Inspection Report requirements for parts that your company supplies. The following parts have not yet received approval: DTNA Part Number Revision Level DTNA Part Description Date Material Shipped (to be logged by Supplier) For the parts listed above, Daimler Trucks rth America now requires your company to perform the following exception condition procedure: DO NOT SHIP THE ABOVE LISTED PARTS UNTIL THE FOLLOWING PROCEDURE IS COMPLETED 1. All parts shipped to Daimler Trucks rth America must be 100% inspected (electronic components must be functionally tested). 2. All characteristics per the drawing must be inspected and conform to specification. If parts do not conform to specification, contact Daimler Trucks rth America Corporate Materials prior to shipping parts. 3. Identify each package or container with a sheet of 8 1/2 x 11 inch, heavy bond white paper, with 100% inspected in at least 1 inch black lettering which identifies the parts as conforming to the exception conditions and ISIR Part(s) if applicable. 4. Records of the required inspection described above must be maintained by your company and be made available to Daimler Trucks rth America Quality Assurance upon request. THIS PROCESS WILL REMAIN IN EFFECT UNTIL DAIMLER TRUCKS NORTH AMERICA PRODUCTION PART APPROVAL PROCESS AND / OR INITIAL SAMPLE INSPECTION REPORT REQUIREMENTS ARE APPROVED. The Daimler Trucks rth America Corporate Materials or Manufacturing Engineering (Tooling) representative issuing this exception condition requirement has provided a copy to Daimler Trucks rth America Corporate Quality Assurance. 09-R074 (10/3/08)

11 Production Part Approval Process- Buy Part Engineering Releases parts to Production Part Schedule(PPS) Supplier tifies customer of design and/or process changes(aiag section 1.3) Reviews PPS weekly report and supplier information to determine submission level Loads IMS and PPAP data base with submission requirements Issues PPAP request to supplier Supplier Submits sample parts Are sample parts required Plant approves sample Plant Updates IMS and sends results to Corporate Reviews the exception report New part required Plant Is supplied with written deviation PPAP received PPAP Approved Update IMS with approved date and notifies supplier Plant Updates IMS with reject and notifies and Materials Supplier Reworks/ reproduces sample Tooling date changed Revises PPAP due date and notifies supplier Supplier requested extension Changeover approves extension Job cancelled Cancels PPAP request and notifies supplier tifies supplier Is supplier capable Third notification to supplier tifies Purchasing Assigns late PPAP to supplier 09-PROC017(2/21/06) PPAP received prior to production tifies Materials buyer Materials/ME tifies supplier that Exception condition applies

12 Supplier Completes and Receives PPAP Approval prior to production Production Part Approval Process Exception Conditions Supplier Performs Exception Condition Requirements (Reference 09-R074) Supplier Reworks / Reproduces Parts Supplier Parts Conform to Specification Materials Contact Engineering for Action Engineering Can Deviation be Issued for Part Supplier Ships Parts to Required DTNA Location Plant Receive Part and Perform Receiving Inspection in Accordance with 09-S06 and Plant Procedures Supplier Deviation to Plant or to Supplier Plant Parts Conform to Specification Plant Plant Uses Parts in Production Supplier Completes and Receives final PPAP approval 09-PROC017(2/21/06) Updates PPAP systems to reflect approval Purchased Part Approval Process Complete

13 Make Part Approval Process Engineering Releases part to PPS Proceed per Parts Plant Operating Procedures (n-tooled) Tooled part? (Tooled) ME Completes preliminary tooling information Reviews print for inspection required Loads '' into PPS. Parts show approved (IMS, MFOIU). Is ISIR and capability study required? Issues ISIR/Capability packet to ME, loads PPS inspection required (IMS, MFOIU) ME Coordinates ISIR with tool maker Tool Maker Performs ISIR on all dimensions (1 part) and Process capability study on key characteristics (30 parts) ME Rework Tool? Tool Maker ISIR Passes? ME Print Change Tool Maker Sends inspection documents and ISIR sample to parts plant Plant Loads PPS and inspects ISIR sample (IMS, MFOIU) Plant ISIR approved? ME / Plant Performs 30-piece capability study ME/Plant Capability study approved? 09-PROC017 (2/21/06) Plant Updates PPS-parts show approved (IMS, MFOIU) Make Part Approval Process Complete

14 Daimler Trucks rth America Supplier Online: Statistical Process Control Page 1 of 2 Daimler Trucks rth America Purpose To define the suppliers' responsibility for collecting, analyzing and reporting statistical data. Scope This applies to suppliers of production material and tooling to any Daimler Trucks rth America Business Unit. Procedure I. Suppliers are required to review all DTNA, LLC and Business Unit drawings and specifications to determine if Key Characteristics, identified by the symbol or as otherwise indicated on the measurement plan/drawing, are present. All dimensions designated as such, or features specified by the responsible Quality Engineer, must meet the process capability requirement of CPK greater than or equal to 1.8. II. Supplier must include Key Characteristics on Process Control Plans and apply appropriate SPC techniques. This information may be requested by Corporate Quality Assurance. III. Suppliers are expected to identify and use SPC as appropriate on all incoming parts and materials that are used in the production of components, parts, and assemblies for DTNA, LLC and Business Units. IV. Production tooling supplied to DTNA, LLC and Business Units must meet the process capability requirement of CPK greater than or equal to 1.8. V. Production Check Fixtures, CMM holding fixtures and other tooling aids must pass the Gage R&R requirements as defined in the DTNA, LLC Prototype/Production Checking Fixture Requirements & Buy-Off Information Book. VI. Suppliers must maintain records of the above activities. DTNA, LLC and Business Units reserve the right to audit these records. This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved.

15 Daimler Trucks rth America Supplier Online: Statistical Process Control Page 2 of 2 Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

16 Daimler Trucks rth America Supplier Online: Supplier Corrective Action Page 1 of 2 Daimler Trucks rth America Purpose To define the suppliers' role and responsibility in the corrective action process. Scope This applies to suppliers of production material, tooling, or services to any Daimler Trucks rth America Business Unit. Procedure I. Corporate Quality Assurance A Supplier Management Team would decide to issue a Corrective Action Request to suppliers based on any of the following criteria: Supplier monthly reject report - a Supplier Management Team reviews reject reports of the suppliers that they are responsible for, and determines if a corrective action needs to be issued. Reports from plants or other departments - a Supplier Management Team investigates reported problems and determines if a corrective action needs to be issued. Management Directives II. Plants/Business Units All Business Units and manufacturing plants independently issue corrective action requests to suppliers. Supplier Corrective Action Process-Corporate Quality Assurance This form will be auto- ed to you when a corrective action is issued to you. It will have a distinctive title with the word F.R.A.C.A.S. (Failure Reporting and Corrective Action Sysem) on it. It will look like this: F.R.A.C.A.S. example.

17 Daimler Trucks rth America Supplier Online: Supplier Corrective Action Page 2 of 2 Supplier must complete ALL SECTIONS of Corrective Action Request form and return to Daimler Trucks rth America by the specified due date. This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

18 Title: Freightliner LLC Corrective Action Request - F.R.A.C.A.S. # # tice Body: Please Review the following Corrective Action Request and respond via to (LastName, FirstName) with a Corrective Action Plan and Timing. Freightliner LLC requires a response within 5 business days. Failure to respond will require the Purchasing department to become involved, with possible negative effects on your Supplier Evaluation. It is very important to resolve this problem to ensure the satisfaction of our mutual end customer. If your company does not have an established Corrective Action Form, please use the attached Freightliner LLC Seven Step Problem Solving Form DETAIL AS FOLLOWS: (PROBLEM DETAILS) Fracas Number: Problem Logged Date: Sub By: Phone: Title: Description: Priority: Module : Veh Area: Suggested Root Cause: Suggested Containment Action: Model Desc: Serial (s): Insp : Part (s): Drawing (s): Date Entered: Lot Qty: Sample Qty: Reject Qty: Reason Desc: Rev Lvl Inspected: Mfg Rev Lvl: Supplier Code: Supplier Name: Supplier Contact Name:

19 Supplier Contact Phone#: (PRODUCT(S)) (WARRANTY DETAILS) QUALITY POLICY Freightliner LLC is committed to continually improve the performance of its brands in all aspects of our customers' expectations and experiences with our products, services, and people, while maintaining our commitment to the environment and safety. Freightliner LLC's ability to meet the end customers' expectations depends greatly upon the quality of production material, tooling, and services provided by its suppliers. [Two attachments will be here. First will be a corrective action form, second will be the steps to complete it.]

20 Daimler Trucks rth America Supplier Online: "Masters of Quality" Supplier Quality A... Page 1 of 2 Daimler Trucks rth America Purpose To define criteria suppliers must meet in order to earn a "Masters of Quality" Award. Scope This applies to suppliers of production material to any Daimler Trucks rth America Business Unit. Procedure Masters of Quality Award-General Masters of Quality is the highest distinction awarded to suppliers that meet our strict standards and demonstrate an ongoing commitment to quality improvement. A. Suppliers with combined aftermarket and production purchases exceeding $500,000 annually, and with twelve months or more sales history to DTNA are eligible for the Masters of Quality Award. B. Suppliers will be evaluated and rated on a semi-annual basis by DTNA Corporation and Business Units for an annual Masters of Quality Award. Masters of Quality Criteria EBSC (External Balance Score Card) values are used to select best performing suppliers to be awarded Masters of Quality. The EBSC values reflect the following four categories. 1. Quality and Warranty (50% reject PPM, 15% Warranty PPM and 35% semi-annual supplier evaluation) 2. Supply (50% shortage PPM and 50% semi-annual supplier evaluation) Total score includes Accounting criteria as they relate to EDI, ASN, etc. 3. Cost (100% Purchasing department semi-annual supplier evaluation) 4. Technology (50% Engineering department semi-annual supplier evaluation and 50% Parts and Service semi-annual supplier

21 Daimler Trucks rth America Supplier Online: "Masters of Quality" Supplier Quality A... Page 2 of 2 evaluation. Semi-Annual Evaluation Criteria Aftermarket Purchasing and Purchasing Engineering Materials, Changeover and Accounting Parts and Services Warranty and Quality This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

22 Scoring Key: 10 - Excellent (no exceptions) 8 - Satisfactory (few exceptions) 5 - Unsatisfactory (numerous exceptions) 0 - Poor (does not meet criteria) Department Short Description Criteria Description Aftermarket Purchasing Purchasing Responsiveness Production Based Pricing 3-year Price Hold on Post Prod. Responsiveness How would you evaluate the supplier's performance regarding responsiveness? How would you evaluate the supplier's performance regarding a production-based pricing? (AM Price - Prod. Price) / Prod. Price = x % Packaging costs need to be accounted. How would you evaluate the supplier's performance regarding three years price hold on postproduction parts? How would you evaluate the supplier's performance regarding responsiveness including timely, quality responses to RFQs, CARs, SATs, tool tracking sheets, questionnaires, forms, and other strategic requests for information? Program Management How would you evaluate the supplier's performance regarding program management (e.g. new tooling, product to market, etc.) capability? Cost Savings Supplier has understanding of priorities, responds 100% of the time with clear/precise information within the timeframe requested. Supplier provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Acceptable packaging costs are validated. Supplier holds pricing on all production parts for 3 year post production 10%: Supplier has understanding of priorities, responds 100% of the time with clear/precise information within the timeframe requested. Supplier understands priorities but does not meet requested due date 100% of the time. Requires follow up to understand information provided. Supplier usually provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Packaging costs are usually acceptable and are validated. Supplier usually holds pricing on all production parts for 3 year post production 5%: Supplier understands priorities but does not meet requested due date 100% of the time. Requires follow up to understand information provided. 10%:Supplier has formal written 5%: Supplier has no formal procedure with dedicated team. Sr. procedure in development but Management supports concept. consistently demonstrates its ability Due dates are met 100% of the to provide required information time. within the timeframe requested. Supplier has difficulty prioritizing Supplier requires constant follow up to get needs. Relies on Freightliner to information, never responds on time. provide direction and does not take ownership. Supplier rarely provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Packaging costs are rarely acceptable and are validated. Supplier rarely holds pricing on all production parts for 3 year post production Supplier never provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Packaging costs are never acceptable. Supplier never holds pricing on all production parts for 3 year post production :-5%: Supplier has difficulty :-10%: Supplier requires constant follow up to get prioritizing needs. Relies on information, never responds on time. Freightliner to provide direction and does not take ownership. :-5%:Supplier has no formal procedure or plans for developing. Meets deadlines only part of the time and does not take ownership. Cost savings score is an internal calculation derived from several variables at the commodity level. te: Cost Savings scores cannot be reported to external users. :-10%: Supplier neither has a program nor has plans for developing one. Relies on Freightliner forms for providing information. Is not pro-active and consistently late providing information.

23 Scoring Key: 10 - Excellent (no exceptions) 8 - Satisfactory (few exceptions) 5 - Unsatisfactory (numerous exceptions) 0 - Poor (does not meet criteria) Department Short Description Criteria Description % Responsiveness How would you evaluate the performance and quality of the supplier's engineering staff? How dedicated and responsive are the contact persons? How is the quality of the technical support and personnel? Resident / dedicated engineer is supplied if needed; responds in a timely manner. Issue solutions are innovative, cost effective and implemented without undue delays. Products are of high quality and of cost effective design. Resident engineer or dedicated Freightliner engineer is supplied but not always available; responses are sometimes delayed. Products are not of consistent quality; cost issues Resident / dedicated engineer is supplied if needed; responds in a timely manner. Issue resolutions are adequate but not always w/o FTL effort, but are implemented without undue delays. Products are are not readily resolved. generally of initial high quality and of cost effective design. resident engineer or dedicated Freightliner engineer is provided. Supplier's technical support is inadequate; poor response time. Engineering 20% State of the Art Technology 20% CAD Communication 15% Prototypes & sample parts How would you evaluate the supplier's performance regarding a state of the art technology? How would you evaluate the supplier's CAD communication capability in general? How would you evaluate the supplier's performance regarding a timely supply of quality prototypes and conformity of sample parts to specifications? Supplier is a leader in technological development, has necessary R&D facilities and equipment, keeps Freightliner informed of new development programs. Provides CATIA or 3D CAD system data in a format conducive to our needs with no further conversion or manipulation. Able to receive and use Freightliner data. Or, no CATIA or 3D CAD communications are required of this supplier. All prototypes are delivered by the due date and sample parts meet Freightliner Engineering technical requirements. Supplier provides sample inspection or certification documentation for all prototypes. Supplier has technological development programs, facilities and equipment, but are only partly applicable to Freightliner products. Provides CATIA or 3D CAD system data, but requires minor conversion or manipulation. Able to receive and use Freightliner data with minimal issues. Has low technological development capabilities; innovations are applicable to Freightliner to a low degree. Parts have been delivered after the Parts have been late or there have due date or required rework, but did been rework needs causing not result in delays in program program delays in excess of one timing. Supplier provides sample week. Supplier does not provide inspection documentation, but only sample inspection or certification upon request. documentation. t oriented to the heavy truck industry; does not offer technological innovations. Facilities and equipment are outdated. Electronic data is not in formats Has no electronic data transfer capability. used at Freightliner and need significant manipulation to be made usable. Supplier is not able to provide suitable prototype parts. 15% Program Management How would you evaluate the supplier's program management capability? Dedicated Program Manager or "point person" is assigned and is easily accessible. Provides strategic assistance in implementation of significant changes. single Program Manager or "point person" assigned, but contacts are identified for necessary functional areas (e.g. Engineering, Purchasing, MFG, Quality). Coordination and assistance for implementation is good. Program Manager or "point person" changes with each program and assistance is not consistent and not of much benefit. Program Manager or contacts are defined; no high level assistance is provided.

24 Scoring Key: 10 - Excellent (no exceptions) 8 - Satisfactory (few exceptions) 5 - Unsatisfactory (numerous exceptions) 0 - Poor (does not meet criteria) Department Weighting Short Description Criteria Description Materials & Change Over 15% ASN Usage 20% Responsiveness 20% Capacity 15% EDI Accuracy 15% Changeover Process 15% How would you evaluate the supplier's performance regarding ASN Usage? How would you evaluate the supplier's performance regarding his responsiveness to supply needs? How would you evaluate the supplier's performance regarding his manufacturing flexibility and ability to meet commited volumes? How would you evaluate the supplier's performance regarding EDI Accuracy? Changeover - How would you evaluate the suppliers compliance with the Changeover process? Do they comply with our process including tooling rework, preseries requirements, and start of production procedures including PPAP completion? Changeover - How would you evaluate the performance and quality of the supplier's material contacts? How proactive and Changeover Requests responsive are the contact / Communication persons? How available are the material contacts? 90 to to to 79 0 to 69 Always Most of the time Less than half of the time. Almost never Always meets committed volumes Meets committed volumes but requires overtime or premium payments to accomplish task Has difficulty meeting committed volumes 90 to to to 79 0 to 69 Thorough understanding of changeover process. Dedicated point of contact to ensure our procedures are followed. Tooling Requirement procedures followed. Pre-Production requirement flexibility. Smooth implementation of changes without production issues. Always exhibits proactive communication regarding any change or disruption in supply. Always responds in a timely manner. Proactive contact and backup contact at each FOB point. Always informs FLLC of personnel, contact, or system changes or EDI issues. Good understanding of changeover process. Point of contact to ensure our procedures are followed. Tooling Requirement procedures followed. Pre-production requirement flexibility. Smooth implementation of changes. Lacks understanding of changeover process. Lack of support and organization. Tooling procedures not always followed. Unable to show flexibility with pre-production requirements. Changeovers require assistance to ensure a smooth implementation. Generally exhibits proactive Inadequate communication communication regarding any change or disruption in supply. Responds in a timely manner. Proactive contact and backup contact at each FOB point. Usually informs FLLC of personnel, contact, or system changes or EDI issues. regarding any change or disruption in supply. Does not respond in a timely manner. Contact is not always available. Does not inform FLLC of personnel changes, contact information, systems changes or any EDI related issues. Rarely able to meet committed volumes Little or no understanding of changeover process. point of contact to ensure procedures are followed. Tooling requirements not followed. Lack of pre-production flexibility. Changeovers consistently require assistance to ensure implementation. Little or no communication initiated regarding any change or disruption in supply. Does not respond in a timely manner, if at all. Contact is not always available. Does not inform FLLC of personnel or contact changes, system changes, or EDI issues. Accounting 25% Invoicing 25% Communication 25% Payments 25% EDI Does Supplier send invoices to FLLC accurately? - Sends correct EDI line numbers on invoices - Sends NO duplicate invoices - Invoice matches ASN (receipt matches invoice/sid) Does Supplier provide one central point of contact and communicates via to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner? Sends correct EDI line numbers Sends correct EDI line numbers 99.9% of the time, never sends any 90%- 99.9% of the time, rarely duplicate invoices, and always sends any duplicate invoices, and matches ASNs. matches ASNs most of the time. Supplier has one central point of contact and routinely communicates via to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner. Electronic Fund Transfer Supplier is set up to receive payment via EFT Sends EDI 810 for Manufacturing Always sends EDI 810's for all OEM for Aftermarket and for Direct shipments Ship Supplier has one central point of contact and usually communicates via to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner. Sends EDI 810 for Mfg. OEM and AM but rarely for Direct Ship Sends correct EDI line numbers 50%- 89% of the time, frequently sends duplicate invoices, and rarely matches ASNs. Supplier has an inconsistent point of contact and rarely communicates via to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner. Sends EDI 810 for Mfg. OEM and AM but inconsistently Sends correct EDI line numbers less than 50% of the time, regularly sends duplicate invoices, and never matches ASNs. Supplier has no clear point of contact and never communicates via to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner. Supplier is not set up to receive payment via EFT Never sends EDI 810's.

25 Scoring Key: 10 - Excellent (no exceptions) 8 - Satisfactory (few exceptions) 5 - Unsatisfactory (numerous exceptions) 0 - Poor (does not meet criteria) Parts & Service Short Description Criteria Description On-time delivery 30% Ship within 7 days of committed date: # of on-time shipments/ total # of shipments made by supplier 90 to 100% on-time shipments 80 to 89% on-time shipments 60 to 79% on-time shipments Truck Down Responsiveness 10% How would you evaluate the supplier's performance regarding coordinating customer contact? Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault,work with FLLC on field problems,ccoordinate action plans on field problems Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault, Work with FLLC on field problems,ccoordinate action plans on field problems Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault, Work with FLLC on field problems, Coordinate action plans on field problems below 59% on-time shipments Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault, Work with FLLC on field problems, Coordinate action plans on field problems Marketing Support 10% How would you evaluate the supplier's performance regarding providing marketing funds, brochures and field sales support? MDF = 2% of Sales; Incentive Program Sponser; Sales Fair Sponsor; 4 flyer modules Parts Field Reps who are dedicated to FLLC dealers and who call on all FLLC dealers at least three times a year. MDF = 2% of Sales; Sales Fair Sponsor; 3 flyer modules Parts Field Reps who are dedicated to OEM dealers and who call on all FLLC dealers at least twice a year. MDF = 2% of Sales; Sales Marketing Support Fair Sponsor, Flyer Module field parts support Parts Field Reps who call on dealers and distributors Technical Part Info. 10% How would you evaluate the supplier's performance regarding providing parts technical information? The supplier provides online access to parts technical information to dealers and customers or provides FLLC with complete parts technical information, including illustrations, upon request. NOTE across the board: t applicable for minor piece part suppliers. The supplier provides FLLC with complete parts technical information upon request. FLLC must convince the supplier that this assistance is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process. The supplier provides FLLC with parts technical information upon request. FLLC must provide significant rework and/or research in order to deliver the documentation to the field in a useful manner. The supplier does not provide any type of access to any parts technical information.

26 Service training 5% How would you evaluate the supplier's performance regarding providing service training? The supplier provides service training or assistance in development of service training programs to the full extent required by FLLC. NOTE across the board: Service training programs are not required for minor piece part suppliers. The supplier provides service training or assistance in development of service training programs. FLLC must convince the supplier that this assistance is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process. The supplier provides service training or assistance in development of service training programs. FLLC expends a lot of effort to convine the supplier that this assistance is necessary and valuable. FLLC is asked to fund the development effort. The supplier does not provide any service training assistance to FLLC. Diagnostic tools 3% How would you evaluate the supplier's performance regarding providing diagnostic tools to FLLC? The electronic component/system supplier provides service diagnostic software to dealers and customers in compliance with NAFTA standards; or the electronic component/system supplier provides electronic components/systems that have diagnostic and flashing functionality built into them. These suppliers also provide technical information and assistance in development of FLLC diagnostic tools in accordance with FLLC standards. The electronic component/system supplier provides service diagnostic software to dealers and customers in compliance with NAFTA standards; or the electronic component/system supplier provides electronic components/systems that have diagnostic and flashing functionality built into them. These suppliers also provide technical information and assistance in development of FLLC diagnostic tools in accordance with FLLC standards. FLLC must convince the supplier that this is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process. The electronic component/system supplier provides service diagnostic software to dealers and customers not in compliance with NAFTA standards; or the electronic component/system supplier provides electronic components/systems that lack full diagnostic and flashing functionality built into them. These suppliers also provide technical information and assistance in development of FLLC diagnostic tools in accordance with FLLC standards. The supplier does not provide any diagnostic tools or assistance to FLLC

27 Technical Service Info. 2% How would you evaluate the supplier's performance regarding providing complete service technical information? The supplier provides online access to service technical information to dealers and customers or provides FLLC with complete service technical information or assistance in development of same upon request. NOTE across the board: t applicable for minor piece part suppliers. The supplier provides FLLC with complete parts technical information upon request. FLLC must convince the supplier that this assistance is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process. The supplier provides FLLC with parts technical information upon request. FLLC must provide significant rework and/or research in order to deliver the documentation to the field in a useful manner. The supplier does not provide any type of access to any parts technical information. Product Info. Responsiveness 4% How responsive is the supplier to Responds within 24 hrs. calls for product information and specifications? 24hr response max. More than one business day. Root Cause Analysis & Ccorr. Act. 3% With regards to the current product and for models no longer in use, how often does the supplier respond, participate in root cause analysis and correct product issues quickly? 100% of incidents 99 to 90% of incidents 89 to 80% of incidents 79 to 0% of incidents Campaigns and recalls 3% How often does the supplier actively participate in field service campaigns or recalls (not only regarding information and analysis but also financially)? 100% of incidents 99 to 90% of incidents 89 to 80% of incidents 79 to 0% of incidents

28 Scoring Key: 10 - Excellent (no exceptions) 8 - Satisfactory (few exceptions) 5 - Unsatisfactory (numerous exceptions) 0 - Poor (does not meet criteria) Department Short Description Criteria Description % PPAP How would you evaluate the supplier's performance regarding PPAP responses? late PPAPs or failed audits. One late PPAP. Multiple late PPAPs. Failed PPAP audit. Quality 25% Corrective Actions 25% 25% Campaigns and Recalls 3rd Party Certification How would you evaluate the supplier's performance regarding Corrective Action Responses (CARs)? How would you evaluate the supplier's performance regarding recall history and campaigns? CARs are required. CARs are overdue. One late CAR. More than one late CAR or rejected CAR submitted by supplier. recalls or campaigns over last semester. Is supplier 3rd party certified? ISO 9000 ISO/TS16949 QS9000 Blank Supplier responsible for one campaign. recalls. Blank Blank. Supplier responsible for a recall or more than one campaign. 20% Warranty Agreement Does the supplier have a signed warranty agreement? Supplier has a current signed Freightliner supplier support acknowledgement agreement on file with no exceptions. Supplier has a current signed Freightliner supplier support acknowledgement agreement on file with agreed upon exceptions. Supplier has a current signed Freightliner supplier support acknowledgement agreement on file with exceptions that are not agreed upon. Supplier does not have a signed warranty agreement. Warranty 20% 20% 20% Parts Return Program Claims Responsiveness Root Ccause Analysis & Corr. Act. How would you evaluate the supplier's performance regarding his parts return program? Does the supplier provide detailed responses to claims Does supplier support failure of their products and work with Freightliner Manufacturing, Engineering and Dealers/Fleets to identify and implement corrective action? 0-7% and participates in the Dealer Certification Program. 0-7% 8-29% % Provides Recovery with Provides Recovery with Provides Recovery with Does not respond to claims. detailed denial explanation with detailed denial explanation with detailed denial explanation with payment/denial documentation. payment/denial documentation. payment/denial documentation Sends denial explanation with upon request. returned failed part. Excellent Average Poor Does not work with Engineering Freightliner Manufacturing, Engineering and Dealers/Fleets. 20% Does the supplier resond to claims within Timely Response to the time guidelines? Claims Supplier resonds to all claims within the time guidelines. Does not dispute aged claim debits. Disputes aged claim debits. Supplier does not respond.

29 Daimler Trucks rth America Supplier Online: Supplier Disapproval Page 1 of 1 Daimler Trucks rth America Purpose To define the criteria by which suppliers can be disapproved. Scope This applies to suppliers of production material, tooling, or services to any Daimler Trucks rth America Business Unit. Procedure Corporate and Business Unit Quality Assurance maintain criteria for helping to determine the disapproval of suppliers. The following are criteria that Quality Assurance uses at its discretion: A. Supplier fails to maintain ISO 9001:2000 or ISO/TS registration. B. Supplier continually fails to respond to DTNA Corrective Action Requests. C. Supplier has a reject rate of over 50 PPM for the last four consecutive quarters on average, and there are no signs of improvement. Failure to maintain ISO 9001:2000 or ISO/TS third party registration, to respond to DTNA Corrective Action Requests, or to maintain a reject rate of 50 PPM or less may be used in conjunction with criteria of other Corporate Departments to consider the need to advise Purchasing of the need to disapprove the supplier for any new business, and to consider resourcing with another supplier. This document is controlled on-line. Always refer to the Internet for the most current version. Daimler Trucks rth America All rights reserved. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

30 Daimler Trucks rth America Supplier Online: Updates to Supplier Quality Manual Page 1 of 1 Daimler Trucks rth America Significant updates and editing to the original January '01 release of the Third Edition of Freightliner LLC's Supplier Quality Requirements Manual will be listed here for a user-friendly reference: 7/22/08 - Significant updates and editing to the previous edition of this document. 2/12/01: Production Part Approval Process (PPAP) Part Submission Warrant and documentation submission direction was clarified under letter A. The Level 2 process for Sample Product submissions was clarified for suppliers under letter B. Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines

31 Daimler Trucks rth America Supplier Online: New Supplier Information Page 1 of 1 Daimler Trucks rth America Providing the end customer with a quality vehicle requires the energy and support of every link in the supply chain. Delighting the end customer requires participation from many supply chain members, including raw material suppliers, transportation carriers, assembly and manufacturing plants, and dealers. Daimler Trucks rth America is a demanding customer and seeks only those supplier partners who are able to maintain the highest levels of quality and customer satisfaction. Here is a brief look at our key supplier qualification requirements. ISO 9001:2000 or ISO/TS Certified Fully EDI/ASN Compatible Commitment to Support Daimler Trucks rth America Warranty Programs Acceptable Aftermarket Program Aftermarket pricing in line with production minimum purchase quantities Parts to be available for 15 years post to OE production Support aftermarket part lead-time requirements Signed Confidentiality Agreement CATIA/IGES Capability Home Purchasing Mission Applications Login Supplier Quality Manual New Supplier Information Packaging Guidelines