Milestone AV Technologies TECHNICAL SPECIFICATION

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1 Number: Revision: 02 Page 1 of 31 Revision History Date Rev Reason for Change 9/1/ Initial Release 8/1/ ECO Transferred specification into the appropriate Tech Spec Template and incorporated changes made by the AP group (see below). Removed table of contents and renumbered entire document. Section references listed below relate to revision 00 version of Section 2.0 Scope: Updated to add "Customer specific requirements are not included in the scope of this technical specification". Packaging Requirements section 3.0: Deleted #2 SUS and #4 WCC Construction Section 3.1.2: Deleted A - product weight and size; deleted "Heat Sealing" and heat sealing style information Section Color Management: Added E and F requirements Section Construction: Added (Choose material that meets Milestone stacking requirements) Deleted section Stacking Performance Evaluate Section 3.2.4: B - inserted new visual for the RSC style carton Section 3.3.1: Label Material definition deleted H and I Section 3.3.2: label selection - deleted D Section 3.6.3: Holes Requirement: Change 12 inch to 7 inch Section 6.0: Packaging Test Procedure - updated visual aid of carton and faces Section 6.2: Vibration Test - Changed ISTA 1A to ISTA 1C Section 6.3: Deleted Aging Test requirements Section 6.4: Deleted Humidity Test requirements Added section on Stacking Performance Evaluation Added Attachment A - PE Bag Warning 3/16/ ECO Changed the title of the tech spec to add Non-U.S. Suppliers Updated scope section 2.0 to clarify the technical specification applies to non-u.s. supplier product packaging and product protection Added Attachment B Visual Guideline on Packaging Accept/Reject Criteria per request from the AP China team

2 Number: Revision: 02 Page 2 of Purpose The purpose of this specification is to provide the packaging engineer, supplier, and procurement team with a basis for determining packaging qualification. This specification provides a minimum standard for supplier product packaging and product protection. 2.0 Scope This standard describes the methods and specification for packaging design of our supplier product packaging for non-u.s. supplier product packaging and product protection based on ISTA - International Safe Transit Association specifications. Customer specific requirements are not included in the scope of this technical specification. 3.0 Documents 3.1 Reference Documents ISTA International Safe Transit Association 4.0 Requirements 4.1 Milestone Corporation It is Milestone's responsibility to ensure the supplier has the latest revision of this specification. Questions a supplier may have regarding the content of this document should be coordinated through the Milestone Packaging Engineer if additional information is required. 4.2 Supplier The supplier shall provide an estimate of the packaging costs to Milestone AV Technologies Inc. in a quote considering factors such as cost, box dimensions, material, weight of the case pack with product, quantity per carton and internal packaging description. Milestone shall reserve the right to make recommendations regarding container loading in order to achieve greater efficiency in the transport of product from the supplier to Milestone's customers. The supplier shall provide the packaging drawing, specification, sample and test results to the appropriate Milestone packaging engineer for review as required. 4.3 Compliance In the event of non-compliance, Milestone reserves the right to Reject and return any shipments improperly packaged or identified. Charge the supplier for the cost of the labor and material for any repackaging resulting from noncompliance with a Milestone Specification. Remove suppliers that repeatedly fail to comply with the requirements in this Milestone Packaging Technical Specification from the list of approved suppliers.

3 Revision: 02 Page 3 of Packaging Requirements Inner Carton Material Definition Paperboard SBS: Clay Coated Solid Bleached Sulfate is a 100% virgin bleached Kraft and is comprised of chemically pulped and chemically bleached fibers. CCNB: Clay Coated Newback is 100% recycled material with clay on one side for printing. Art paper: 80gsm - 100gsm art paper used for Instruction Manuals Flute A Flute B Flute C Flute E Flute Flute Size Flute Size Flutes per Linear Meter "A" Approximate A 115 +/- 10 per linear meter 4.4 mm B 165 +/- 13 per linear meter 2.7 mm C 137 +/- 10 per linear meter 3.5 mm E 305 +/- 27 per linear meter 1.5 mm Use where DIN standards are applicable

4 Revision: 02 Page 4 of Construction Construction Selection (Material Standard) Weight Level Material Categories Bursting ECT (Edge Crush Test) Light ( less 3 kg) E Flute B gsmCCNB 105lbs 27 Medium ( less 6kg) B Flute B3+ 350gsmCCNB 135lbs 31 Heavy ( 6-10 KG) C Flute A3 or K gsmCCNB 150lbs 34 Over 10kg Double Wall BE Flute A gsmCCNB 175lbs 34 Double Wall BC Flute A gsmCCNB 200lb Clamshell Pack Clamshell insert card: 210gsm SBS or 157gsm SBS+157gsm SBS Corrugated Direction Corrugated direction according to stacking direction, at the long side as specified on carton drawing Hang Hole and Handle Testing Requirements See dieline hang hole and handle capability (Two times the weight of the entire package for one hour) PDQ Display Tray B Flute: B3+350CCNB Coating: UV Coating Minimum Dieline Requirements (Inside dimension, outside dimension, material and corrugate direction) Die Line Form: CAD and PDF file at a minimum; EPS form preferred Die Line Content: Internal size, external size, material, bursting, ECT, corrugate direction Die Line Time Line and Die Line Change Procedure The die line should be provided when Milestone has completed the drawing and the prototype unless special circumstances occur. Suppliers shall not make changes to the layout or graphics. Changes to die lines must be authorized by Milestone. Provide the revised die line to Milestone for graphic updates.

5 Revision: 02 Page 5 of Color Management Refer to digital proof for the four process colors Refer to the PMS art board for PMS color requirements CIE Color Management C L*A*B ECMC 2.0 Elab Color Proof Procedure All color proofs shall be approved and signed off by Milestone prior to production. On site review and approval is acceptable if the need is urgent CCNB paper source and paper shall be approved by the Milestone Packaging Engineer prior to production Ink source and ink brand shall be approved by Milestone Packaging Engineer prior to production Joint and Closure Requirement All carton joints shall be glued. Milestone does not accept metal staples with the exception of furniture packaging In order to ensure the outer carton joints have sufficient adhesive strength, the packaging shall have a minimum of 80% paper/adhesive adherence when the joint is separated Carton Carton Style and Definition HSC - Half Slotted Carton: Outer flaps meet at the center of the box on one end only. RSC - Regular Slotted Carton: This is the most common box style. It is made from a single sheet of cardboard and the outer flaps meet at the center of the box.

6 Revision: 02 Page 6 of Construction Choose material that meets Milestone stacking requirements Material references provided below. o Flute BC Flute Double Wall o Flute BCC Flute Triple Wall o Bursting ECT Requirement A=A ECT 5300N/m Bursting: 200 lbs K=A ECT 6300N/M Bursting: 225 lbs K=K ECT 6500N/M Bursting: 250 lbs Joint and Closure Requirement Select RSC style carton for Milestone products. An HSC style carton shall be used for PDQ display trays All cartons shall be sealed using 2.5 inch width box sealing tape using the shape seal unless otherwise specified All carton joints shall be glued. Milestone does not accept metal stitching/staples with the exception of packaging on furniture products.

7 Revision: 02 Page 7 of Shipping Marking Requirement Marking o Manufacture Certification The sample provided below is for reference only. For detailed information, mark according to actual information. o Recycle Marking - sample provided below Shipping Marking Information RSC Style Carton

8 Number: Revision: 02 Page 8 of HSC Style Carton Label and Tape Material Definition Art paper with permanent adhesive Art paper with removable adhesive SBS with permanent adhesive SBS with removable adhesive Mylar label, transparent, permanent Mylar label, removable, any color Mylar label with Vacuum AL, permenant Label Selection UL Sticker: Use UL approved 25 mls or 50 mils Mylar label with Vacuum AL and permanent adhesive. Label shall be PP laminated Tape/Label for closing the carton: Mylar tape with transparent and permanent adhesive Custom customer label for use over UPC: SBS with permanent adhesive Lot Number label for carton: 16 by 31 mm, 5 PT thickness, art paper with permanent adhesive Other Label: According to the actual requirements Cushion Material Corrugate Insert Use corrugate such as die cut insert, partitioned or folded, for any shape box to sufficiently protect the product. Material shall be environmentally friendly and low cost. This is an acceptable selection for cushion material.

9 Revision: 02 Page 9 of Molded Pulp Tray Molded pulp trays shall consist of 50% paper pulp and 50% recycled paper pulp. Recycled paper pulp of less than 50% is acceptable. The molded pulp tray shall be water resistant. Material shall be environmentally friendly, biodegradable, and compliant with Environmental Protection laws. Material will be highly shock resistant and impact absorbant EPE - Expanded Polyethylene EPE is acceptable for Milestone product packaging and is highly impact absorbent and environmentally friendly Honeycomb Milestone recommends honeycomb cardboard for cushion packaging Clamshell and Window Material Definition PVC APET: Environmental protector Welding of the calmshell - sharp points and sharp edges are not acceptable. PVC Thickness: Shall be greater than 0.5mm for clamshell. PVC Thickness: Shall be greater than 0.3mm for the window PE Bag Material and Thickness Requirement PE thickness shall be greater than 0.08mm Warning Requirement Follow PE bag warning requirement specified in Attachment A unless otherwise specified Hole Requirements If the open end of the bag is larger than 7 inches, the PE bag shall have 6mm holes spaced less than or equal to 180mm apart Bar Code Bar Code Style UPC-12: US and Canada market unless otherwise specified EAN 13: EAN 13 for the European market unless otherwise specified SCC-14: Required for the master carton unless otherwise specified Code 128: Required for the Lot # code

10 Revision: 02 Page 10 of Bar Code Quality Level All bar codes shall be scanable. The bar code readable quality levels have five grades; "A", "B", "C", '"D", and "F" with "A" being the highest level and "F" being the lowest level. Bar Code printed on carton (including UPC and Lot#) quality requirement, print quality measurement and reflectance requirement Bar Code printed on Master Carton quality requirement, print quality measurement, and reflectance requirement A Required B Required B Accepted C Accepted Lot Code Requirement Lot Code Format Lot number is required on product, packaging, and the master carton. Lot number information shall be consistent in all three locations. The Lot number on the packaging and on the master pack requires a bar code Lot Code Location and Size Product: Lot number on the UL label or other product label can be printed or stamped.

11 Revision: 02 Page 11 of Retail Packaging: The Lot number with a bar code label is required near the UPC. Please see sample below. 50% 0.5 bar height Label Barcode Type: Code 128 Font: 7 point Master Carton: Lot number with bar code print shall be located near the carton bar code Container Container Loading Rate Requirement In order to achieve greater container loading efficiency in the transport of product from supplier to Milestone or Milestone's customer and to decrease transportation costs, the supplier is responsible for designing the case pack size as optimally as possible and providing the best container loading quality. The supplier will be held accountable if the actual container loading quantity is less than the provided quantity, Calculated by Volume Categories Interior Size 20 foot container 2300 X 5800 X 2335 mm 40 foot container 2300 X X 2335 mm 40 foot HQ container 2300 X X 2635 mm The size provided is a reference to calculate the container loading; it is not the actual size. When calculating the container loading, the carton tolerance must be considered.

12 Number: Revision: 02 Page 12 of 31 Calculated by Loading 20 foot container 40 foot container No less than 28 cbm unless approved by Milestone No less that 56 cbm unless approved by Milestone Maximum 15.0 tons Maximum 19.5 tons When calculating the container loading, the supplier shall consider the maximum weight of the entire container using the information provided below. 20 foot container: Maximum 15.0 tons 40 foot, 40 foot HQ, 45 foot HQ: Maximum 19.5 tons Environmental Considerations General Description All packaging should maintain the integrity of the product, assure safety, and comply with all legal and regulatory requirements while being environmentally responsible Toxic Material Reduction The total sum of heavy metals including lead, cadmium, mercury and hexavalent chromium allowed in all packaging material should contain no more than 100 parts per million by weight (0.1%) Product shall meet ROHS requirements. All packaging material shall use no-phthalate material. The supplier is required to provide the ROHS report as requested The Three R's Three methods should be used in designing packaging and considering opportunities for waste diversion; Reduce, Reuse and Recycle Packaging Test Procedure for Color Graphic Retail Boxes Drop Test Packaged products weighing 150 pounds or less shall follow ISTA 1C requirements unless otherwise required. This does not apply to furniture packaging Identify the face according to the diagram provided below. Critical component corner

13 Revision: 02 Page 13 of Drop Height Identification Packaged Product Weight Drop Height Equal to or greater than But less than Free Fall Lb Kg Lb Kg Inches mm Test Procedure Drop Sequence Description 1 A corner drop on the most critical component or product direction. If a critical direction cannot be determined, use the bottom corner at the manufacturing point. 2 Shortest radiating edge from the critical corner 3 Second shortest radiating edge from the critical corner 4 Longest radiating edge from the critical corner 5 Flat drop on the smallest face 6 Flat drop on the opposite side of the smallest face 7 Flat drop on the medium face 8 Flat drop on the opposite side of the medium face 9 Flat drop on the large face 10 Flat drop on the opposite side of the large face Vibration Test - Follow ISTA 1C requirements unless otherwise specified Test Time Familiarity with the following formula is required to calculate the test duration after the frequency required to bounce the packaged product is determined in the Vibration Test Block. The chart below shows examples of Test Durations calculated for several frequencies. CPM Hz Test Duration in Minutes

14 Revision: 02 Page 14 of Test Procedure Step Action 1 Put the packaged product on the vibration table so that face three rests on the platform. 2 Start the vibration system to vibrate at 1.0 inches (25mm) total displacement at the machine's lowest frequency. 3 Maintain a fixed displacement at one inch (25mm) and slowly increase the frequency (speed) of the vibration table until the packaged product begins to momentarily leave the surface of the platform. 4 Hold the vibration frequency to the frequency determined in Step 3. 5 Can a metal shim be intermittently moved between the bottom of the longest dimension of the packaged product and the surface of the platform? If Yes, hold that frequency and then continue to next Step. If No, increase the frequency until the requirement of Step 5 is met and maintain that vibration frequency. 6 Determine the test duration in minutes using the formula indicated in the "Before You Begin" block and the CPM or Hz frequency identified in Step 5. 7 Begin the vibration duration. 8 Are you using a vertical linear motion on the vibration system? If Yes, then go to Step 12. If No, continue with the next Step. 9 Stop the vibration test half way through the vibration duration and perform the appropriate action as indicated in the table below: IF a single 90 degree horizontal THEN perform a horizontal rotation is... rotation of... Possible 90 degrees as the specimen rests on the platform. Not practical because of the size of 180 degrees as the specimen the packaged product or the stability rests on the platform. of the packaged product. 10 Start the vibration system and continue the vibration test at the frequency used in Step Can a metal shim be intermittently moved between the bottom of the longest dimension of the packaged product and the surface of the platform? If Yes, then continue to next step. If No, then slowly increase the frequency until the frequency of Step 11 is met. 12 Complete the vibration duration. 13 Inspection of the packaged product for visible damage is allowed, provided inspection does not alter the current condition of the package or the condition or position of the product(s) in any way. 14 Vibration testing is now complete. Go to the Shock Test Block.

15 Revision: 02 Page 15 of Retail Packaging Test (Hang hole capability, handling capability) Hang Hole Capacity Add 15 pound force on the whole package and hold for a minimum of 10 seconds. Add two times the weight of the entire retail packaging and hold for one hour Handle Capacity Add two times the weight of the entire retail package for a minimum of one hour Adhesive Test (Label on the Product) Use 3M #810 adhesive to cover the edge of the label being tested, tear the 3M #810 adhesive off the label at a 180 degree angle using a sudden motion. If the label peels off, the test failed Stacking Performance Evaluation The distribution environment needs to be considered. If there are no other requirements, the container loading formula provided below shall be used for evaluation. H=2.4M compensating factor: 3 The formula to determine the test load (TL) TL=WX3X (2.4h)/H meter W= unit packaging weight H= the height of the carton (2.4-H)/H=total number of packaged product in a stack.

16 Number: Revision: 02 Page 16 of 31 Attachment A: PE Bag Warning

17 Revision: 02 Page 17 of 31 Attachment B: Visual Guideline on Packaging Accept/Reject Criteria 1. Template, label, manual and PE bag related issues 1.1 Template slight peel off 1.2 LOGO Big wrinkle at template LOGO 1.3 Little burrs on template 1.4 Template hole not centered 1.5 2MM Template is trimmed not straight. Step not over 2mm MM Template is trimmed not straight. Step bigger than 2mm.

18 Number: Revision: 02 Page 18 of Poor printing 1.8 Severe wrinkle on label 1.9 Warning words legible 1.10 Warning words not legible 1.11 Paper card slight deform 1.12 Paper card broken

19 Number: Revision: 02 Page 19 of Normal cutting line of pulp tray 1.14 Pulp tray broken 1.15 No obvious mismatch between the holes of template & wall plate 1.16 Mismatch between the holes of template & wall plate 1.17 Correct template orientation when opening color box 1.18 Wrong template orientation when opening color box

20 Number: Revision: 02 Page 20 of PE Screw pierce through the PE bag 1.20 PE Not good sealing of PE bag and screw expose out The insert card folds on corner 1.22 Brackets are not properly seated in the slots 1.23 Damaged wall plate template Dirty instruction manual.

21 Revision: 02 Page 21 of Insert card broken. 2. Master carton related issues 2.1 Crack at the corner * *Accept but expect to make improvement on future shipments 2.2 dirty on box * *Accept but expect to make improvement on future shipments 2.3 Broken at corner 2.4 Broken at shipping mark side

22 Number: Revision: 02 Page 22 of Ink at shipping mark side. 2.6 Missing been taped horizontally. 2.7 Slight printing issue of shipping mark 2.8 Not good sealing of carton 2.9 Carton broken 2.10 Carton tab is not inserted in place.

23 Revision: 02 Page 23 of Bar code prints are clear, can be read 2.12 Bar code prints blurry, can be partly read No cracking after folding 2.14 Cracking after folding * *Accept - but expect to make improvement on future shipments 2.15, Suitable carton size, not remain big space after placing products Oversized master carton.

24 Revision: 02 Page 24 of Damaged carton, dirty carton Carton tearing 2.19 Cracked carton 2.20 Bulged and deformed carton Master carton damaged 2.22 The tail of clear seal tape not consistent * *Accept but expect to make improvement on future shipments

25 Revision: 02 Page 25 of Slightly deformed master carton Foot print on the master carton 2.25 Damaged carton * *Accept but expect to make improvement on future shipments 2.26 Damaged carton * *Accept but expect to make improvement on future shipments 2.27 Repaired master carton 2.28 Master carton folder no flat after sealing

26 Number: Revision: 02 Page 26 of Color box related issues 3.1 Slight dent on color box 3.2 Big dent on color box. 3.3 Contamination on top of color box. * *Accept but expect to make improvement on future shipments 3.4 logo contamination around logo * *Accept but expect to make improvement on future shipments 3.5 The cover edge is almost even with bottom of color box. 3.6 ( 3mm) Big gap between cover edge and bottom of color box (>3mm).

27 Number: Revision: 02 Page 27 of Template exposed out of color box 3.8 PE PE bag exposed out of color box 3.9 Not good adhesion of color box 3.10 Damaged color box 3.11 Color box slightly tilted up 3.12 Color box edge tilted up seriously

28 Number: Revision: 02 Page 28 of The color box is caved Serious impression on color box 3.15 Box top are popping open at hanger side Box from master carton are bulged ( 3mm) Two edges are with very big gap for finished goods (>3mm) ( 3mm) Big gap between the edge of the color box (>3mm).

29 Number: Revision: 02 Page 29 of Color box damaged 3.20 Color box damaged 3.21 Wrinkled and deformed color box 3.22 Damaged color box 3.23 Damaged color box 3.24 Damaged color box

30 Number: Revision: 02 Page 30 of Scratched color box 3.26 Color box delamination 3.27 Tab is not inserted in place Tab is not inserted in place Color box damaged 3.30 Color box damaged

31 Number: Revision: 02 Page 31 of Stacking and storage related issues 4.1 Carton overhang 4.2 Rain on product carton 4.3 OK Pallet placement OK 4.4 Pallet Tip out 4.5 Pallet placement NG

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