CINEMAG SUPPLIER QUALITY MANUAL

1.0  PURPOSE:

The purpose of this document is to define and communicate to its materials supply base CineMag’s requirements and expectations .

2.0  SCOPE:

The CineMag Supplier Quality Manual applies to all CineMag material suppliers.

3.0  GENERAL:

The supply base is a key element to CineMag being able to achieve and maintain a high standard of component performance within the market place.  Therefore, we consider our supply base an important part of the CineMag team.  As a supplier, your agreement to comply with the guidelines outlined within this document will help to ensure your place as part of the CineMag team.  Any documentation requested for completion must be in English.  This manual is also considered part of the Terms and Conditions of the Purchase Order.

4.0  ENVIRONMENTAL MANAGEMENT SYSTEM REQUIREMENTS:

It is required that suppliers meet all regulatory environmental requirements of the country of origin and, where applicable, of the United States of America.

5.0  DECLARABLE SUBSTANCES:

It is required that suppliers guarantee that all materials supplied are in compliance with all environmental requirement legislation of the jurisdiction in which they are made or accumulated and with the laws of the United States of America.

Suppliers are required to provide upon request 100% material breakdown and to declare all substances used in the manufacture and creation of the materials being provided.

It is the responsibility of the supplier to provide true and accurate information.  The supplier shall indemnify and hold harmless CineMag against any liabilities arising from the information supplied.

6.0  CONFLICT METALS (DODD FRANK ACT)

6.1  CineMag considers sourcing responsibility to be a core requirement of its suppliers. Suppliers of products containing Conflict Metals, including but not limited to Tin, Tungsten or Gold, shall purchase only from smelters/refiners listed as compliant to the CFSP or the LBMA.  This may require the CineMag supplier to probe any of their suppliers, to determine the smelter of the material, where the material is from and ascertain for a certainty that the smelter does not provide direct or indirect support to armed terror groups in the Democratic Republic of Congo or the surrounding nine nations as described in the 2010 Dodd Frank Act of the United States, or as amended.  CineMag suppliers should request that their suppliers provide a completed CMRT (Conflict Mineral Reporting Template), based on the latest revision.

6.2  For more information and instructions on how to submit the information via CMRT, including the latest revision, please visit http://www.conflictfreesourcing.org.  Reporting to CineMag must be on the latest revision.

7.0  ENVIRONMENTAL

Suppliers shall comply with applicable environmental laws and regulations and maintain systems addressing environmental permits and reporting, pollution prevention, and resource reduction.

8.0  ETHICS

Suppliers shall conduct business with integrity and in compliance with applicable laws.  Ethical business requirements include prohibitions on bribery and corruption, fair competition and antitrust compliance, avoidance of conflicts of interest, protection of intellectual property, prevention of counterfeit parts and materials, and accurate disclosure of information.

Suppliers shall protect personal data and confidential information, maintain accurate business and financial records, and comply with applicable export controls and economic sanctions.

Suppliers shall provide channels for reporting concerns and shall prohibit retaliation against individuals who raise concerns or report misconduct in good faith.

9.0  QUALITY REQUIREMENT

9.1  CALIBRATION OF MEASUREMENT EQUIPMENT

Suppliers must ensure that measuring equipment is calibrated against standards traceable to international or national measurement standards.

All measurement equipment is to be uniquely identified and easily traceable to the calibration records.

All materials shall be RoHS compliant unless fully disclosed to CineMag in advance.  If supplier makes such determination based upon their own testing, all supplies shall be fresh, not out of date and properly stored prior to use.  Any equipment used to do the test shall be in calibration.

9.2  RECORD RETENTION

Suppliers are to have an established system to control and maintain records.  Examples of records are SPC charts, internal corrective actions, material certifications, process control charts, records of inspection, etc.

Suppliers shall fully cooperate with CineMag, when requested, to provide a complete list of chemicals used in materials and goods supplied to CineMag as relates to California Proposition 65 and RoHS requirements and standards.

Records shall be available for review by CineMag upon request.

Unless otherwise indicated, records must be retained for a minimum of twenty (20) years after completion of an order.

If record retention is less than twenty (20) years the supplier must send the records or copies thereof to CineMag before destroying the originals.

9.3  LABELING

Suppliers are required to ensure that the correct labels are attached to each shipment.  The information on the label must be in English.

9.4  DELIVERY

It is the expectation of CineMag that the supplier shall ensure delivery of conforming, defect free material.  It is the supplier’s responsibility to ensure that materials arrive at CineMag on the required date specified on the purchase order.  It is the supplier’s responsibility to ensure that deliveries are on-time despite shutdowns, vacations, etc., excluding force majeur being declared.

Suppliers are to inform CineMag immediately of any potential issues that might interfere with meeting delivery schedules, in order to avoid production downtime.

9.5  PREMIUM FREIGHT

Suppliers are responsible for premium freight charges incurred when delivery schedules are not met.

9.6  NONCONFORMING MATERIAL

Suppliers are required to immediately notify CineMag if suspect/nonconforming product is identified which has been shipped to CineMag.  The following information must be supplied:

•   Shipment tracking number
•   Material lot codes
•   Conforming material delivery date

9.7  SUPPLIER WAIVER REQUEST / APPROVAL FOR PRODUCT

It is the policy of CineMag not to accept product or material that does not meet the requirements of the purchase order, specification, or drawing.  Notice of nonconforming product or material shall be sent to CineMag for review and approval prior to shipment.  Waivers shall only be approved for a specific time frame or quantity of components or material.