XII. Control of Owned Material and Equipment

The supplier must establish and maintain procedures for the receipt, inspection, identification, handling and storage of material, returnable containers, and equipment supplied by the Company. Suppliers are responsible for maintaining the containers in a manner to ensure protection against part damage and/or deterioration.

The supplier must report any occurrence of loss, damage, and/or deterioration of the Company’s owned material and equipment to the appropriate Company representative.

Company owned tooling and equipment must be permanently marked so that the ownership of each item is clear. The supplier must track and control all Company owned tooling and equipment.

Any tooling purchased by and paid for by the Company will remain the property of the SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V/., although it may be stored, used to make production/service parts requirements and be maintained by the supplier. The supplier must use this tooling for the sole purpose of the Company production requirements for the duration of the component life, unless notified in writing by the Company’s Purchasing Department. The supplier must track and control all Company owned tooling and will be responsible for the proper storage, maintenance and handling of this tooling.

The supplier must submit the Tooling/Equipment Inventory List by the end of January each calendar year. This list must be sent to the Company’s Purchasing Department.

All tooling must be maintained by the supplier until written authorization is provided from the Company for disposal. All tooling is to be kept in a usable condition throughout the production requirements, as well as the service parts period.

The supplier must submit to the Company Purchasing the Request for Retirement Asset form. This written authorization from the Company’s Purchasing is required before any tooling is destroyed.