Agreement on Quality

and Corporate Social Responsibility

Between

Robert BOSCH GmbH

Robert-Bosch-Platz 1, 70839 Gerlingen, Germany
also in the name of and on behalf of subsidiaries in which BOSCH directly or indirectly has a majority stake. For
supplies in subsidiaries who are seated in the North America region, there has to be an
Addendum A concluded.

- hereinafter referred to as "BOSCH" –

and

>SUPPLIER<
[Address]
also in the name of and on behalf of subsidiaries in which the SUPPLIER directly or indirectly
has a majority stake
>List (as appendix) or addresses of the companies <

- hereinafter referred to as "SUPPLIER" –

QAA-IS-EN (02/2014)

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 Agreement to Quality and Corporate Social Responsibility

Content:

Preamble

1 The Supplier Management Systems..........................................................................................................3

2 Subcontractors' Management System........................................................................................................3
3 SUPPLIER or Subcontractor Audit...........................................................................................................3
4 Information and Documentation...............................................................................................................4
5 Agreements regarding the Product Life Cycle..........................................................................................4

5.1 Development, Planning, Release....................................................................................................4

5.2 Manufacturing, Labeling of Products, Traceability.........................................................................5
5.3 Delivery, Inspection........................................................................................................................5
5.4 Complaints, Solving Problems, 8D Report.....................................................................................5
5.5 Continuous Improvement Process (CIP).........................................................................................6
6 Quality Targets.........................................................................................................................................6
7 Corporate Social Responsibility 6
8 Agreement Term, Termination..................................................................................................................6
9 Final Provisions........................................................................................................................................6
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 Agreement to Quality and Corporate Social Responsibility

Preamble
This agreement forms part of the supply agreement with BOSCH and is binding for business relationships
between the SUPPLIER and BOSCH. For deliveries to North America, the terms of this agreement shall apply
only if SUPPLIER and Robert Bosch GmbH execute Addendum A. This
Agreement replaces all Quality Assurance Agreements for suppliers previously agreed between Robert Bosch
GmbH and the SUPPLIER and in the event of contradiction takes precedence over any
individual quality assurance agreements.
The subject of the Agreement are all products (hardware and software), materials or services
(afterwards referred to as products) supplied by the SUPPLIER.

1 The Supplier Management Systems

THE SUPPLIER shall maintain a certified management system complying at the very least with
ISO 9001.
The SUPPLIER shall further ensure and if agreed demonstrate any and all Industry-specific or
material-field-specific requirements (e.g. CE-labeling ISO 17025, IEC-, VDE-, VDI-instructions) if
applicable.
Promptly upon BOSCH’s request, the SUPPLIER shall provide BOSCH with copies of the relevant valid
certificates demonstrating that appropriate management systems described above are in place or issue them on the
internet.

2 Subcontractors' Management System

With a goal of a preventive quality assurance (including, but not limited to, defect avoidance and
continuous improvement) throughout the supply chain, the SUPPLIER shall instruct its
subcontractors to introduce and maintain a quality management system analog to ISO 9001
standards or assure itself the quality of the pre-supplied products by suitable measures.

3 SUPPLIER or Subcontractor Audit

BOSCH may to ascertain through audits whether SUPPLIER’s quality assurance measures meet BOSCH
requirements.
Audits shall always be carried out upon prior reasonable notice. Where required, e.g. in case of quality problems,
the SUPPLIER shall facilitate requests for audits that are made on short notice.
The SUPPLIER shall grant BOSCH access to all commercial areas, test centers, warehouses and
adjoining areas, as well as to all quality-related documents. SUPLLIER may take all necessary and reasonable
measures to safeguard proprietary material that falls outside SUPPLIER’s relationship with BOSCH.
BOSCH shall inform the SUPPLIER of the result of these audits. If BOSCH believes that measures are required,
the SUPPLIER shall prepare a corrective action plan per upon agreed timing, shall implement such measures
according plan, and shall update BOSCH on its progress as necessary.
If the SUPPLIER or the subcontractor has grounds for an objection to BOSCH taking part in an audit, BOSCH is
prepared to accept the results of a neutral party (third-party).
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4 Information and Documentation

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 Agreement to Quality and Corporate Social Responsibility

If it becomes apparent that SUPPLIER cannot meet its supply obligations regarding, for example,
quality features, schedules, delivery quantities, or packaging requirements, the SUPPLIER shall so inform
BOSCH immediately. The SUPPLIER shall also inform BOSCH immediately of any deviations identified after
delivery. The SUPPLIER shall disclose all relevant data and facts in the interest of a speedy resolution.
The SUPPLIER shall inform BOSCH well in advance of
- Changing the product or packaging;
- Changing subcontractors;
- Relocating or setting up production sites; or
to allow BOSCH to verify the change to conform it has no negative impact to its products.

There will be no obligation to inform where such changes pertain to non-Bosch-specific catalog goods or were
SUPPLIER can assure, after thoroughly evaluation, that there will be no effect on BOSCH.
The SUPPLIER shall document all changes to the product including any validations and present this document to
BOSCH upon request.
There shall be a minimum archiving period of 10 years for all documentation and drawings relating to the parties’
agreements and the products SUPPLIER provides to BOSCH, commencing on the date of the final series
production delivery.
Documents and drawings must be archived and disposed of in such a way that they cannot be
accessed by third parties.

5 Agreements regarding the Product Life Cycle

During contract review, the SUPPLIER shall check all technical documents, such as specifications, drawings,
parts lists, CAD data, packaging requirements and standards upon receipt for feasibility. The SUPPLIER shall
inform BOSCH immediately of any identified defects, risks or possible improvements.

5.1 Development, Planning, Release

If an order placed with the SUPPLIER includes development tasks, the contractual partners will set out the
requirements of each such task in writing. The SUPPLIER shall operate its project
management activities beginning in the planning phase of products, processes and other
interdivisional tasks and shall allow BOSCH to inspect its progress upon request.
The SUPPLIER shall implement process planning (work plans, test plans, resources, tools,
machines etc.) for all features.
The SUPPLIER shall ensure suitability of the production equipment, if supporting tools are used, e.g. software
tools, the ability must be verifiable.
If BOSCH orders initial samples, then the SUPPLIER will submit, prior to start of the series delivery, initial
samples of the product, manufactured under series conditions, within the agreed scope and on time. Sampling
shall be performed and documented in full according to Bosch-specific sampling requirements.
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.2 Manufacturing, Labeling of Products, Traceability

In the event of a process disruption or quality deviation, the SUPPLIER shall analyze the causes,
introduce corrective measures, and check their effectiveness.

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 Agreement to Quality and Corporate Social Responsibility

If the SUPPLIER is unable to supply products to specification, then prior to delivery SUPPLIER must obtain a
written concession from BOSCH addressing the issue.
The SUPPLIER shall label products, parts and packaging in accordance with the Parties’ agreements. SUPPLIER
must ensure that labeling of the packaged products is legible and remains so during
transportation and storage.
The SUPPLIER shall abide by the FIFO (First In, First Out) principle and shall ensure the traceability of the
products it supplies. If a fault is identified, SUPPLIER shall ensure the containment of the faulty
parts/products/batches etc.
Any manufacturing, measuring or inspection equipment supplied by BOSCH—especially resources and
equipment within the context of delivery acquisition—must be identified as being the property of BOSCH. The
SUPPLIER is responsible for sound condition and correct functionality and shall arrange for maintenance and
repair.

5.3 Delivery, Inspection

The SUPPLIER shall supply the products via suitable means of transport and - if agreed upon – shall use
exclusively those methods of transportation approved by BOSCH.
Bosch will inspect incoming product only for externally apparent shipping damage and for
confirmation of the quantity and part number of the products according to the shipping documents. Any defects
identified at this stage shall be reported immediately. Bosch shall notify SUPPLIER of any defects not identified
at this stage as soon as they are detected in the ordinary course of
business. SUPPLIER hereby waives its right to reject delayed notification of deficiency.
The SUPPLIER adapts its quality management system and its quality assurance measures to this inspection
procedure.

5.4 Complaints, Solving Problems, 8D Report

If BOSCH notifies SUPPLIER of a defect, SUPPLIER will carry out a fault analysis immediately, with support
from BOSCH to the extent required and feasible.
BOSCH and SUPPLIER will agree upon the number of products that will be sent back to
SUPPLIER related to any quality defect.
SUPPLIER commits to analyze the cause of defect and notify BOSCH in short term the cause of
deviation, initiated corrective actions, measures for failure prevention and their effectiveness. Complaints should
be handled in accordance with the 8D method
If BOSCH or its customers face the risk of production shutdowns due to delivery of products, that are defective or
do not conform to the specification, then the SUPPLIER in coordination with BOSCH must take suitable
immediate measures to minimize a disruption in production, including but not limited to, procuring substitute
supplies, sorting, rework, adding additional shifts, finding express transportation etc.
The suppliers liability concerning defective or delayed deliveries will remain unaffected by these agreements.

5.5 Continuous Improvement Process (CIP)

The SUPPLIER is obliged to maintain a continuous improvement process.
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6 Quality Targets
The SUPPLIER is committed to a strategic zero-defect goal regarding its supplies to BOSCH.

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 Agreement to Quality and Corporate Social Responsibility

7 Corporate Social Responsibility

The SUPPLIER shall comply with all applicable statutory regulations relating to environmental
protection and occupational health and safety and will keep any manufacturing effects on people and the
environment as minimal as possible through appropriate environmental protection
management and a corporate environmental protection policy.
The SUPPLIER shall introduce or further develop an environmental management system (EMS) in
accordance with ISO 14001 or a comparable environmental management system.
Besides the compliance of legal laws, each delivery must comply with BOSCH standard N2580,
"Prohibition and Declaration of Substances". (Internet: www.bosch.com > Purchasing & Logistics > Downloads).
The SUPPLIER shall observe the principles of the UN Global Compact Initiative and consider them in its sub-
supplier management.
If the SUPPLIER performs work on BOSCH premises, then it will follow all of BOSCH’s safety and
accident preventive regulations and shall observe BOSCH procedures regarding behavior on the
company premises.

8 Agreement Term, Termination

This Agreement has no specific time limit and may be terminated in writing at the end of any calendar year upon
six months' notice. This shall not affect any agreements made under this quality assurance agreement, i.e. the
stipulations of the quality assurance agreement shall continue to apply for such agreements until they expire.
BOSCH maintains the right to terminate this Agreement for important reasons.
If significant provisions of this Agreement are violated by the SUPPLIER, e.g. SUPPLIER fail to present valid
certificates or SUPPLIER introduce changes without BOSCH's approval, BOSCH is entitled, after unsuccessful
warning, to the exceptional termination with immediate effect of existing supply
agreements. In the event of such a termination, the SUPPLIER shall have no right to any compensation from
BOSCH

9 Final Provisions
Changes and additions to this Agreement, including to this paragraph 9, must be made in writing.
If any of the conditions of this Agreement should be or become partially or wholly invalid, the other
conditions shall remain in force and the Parties shall agree on a valid condition that most closely
represents the intent of the invalid condition. The same applies to any omissions.

This Agreement is subject to the law of Germany, excluding its conflict of laws provisions and the
United Nations Convention on Contracts for the International Sale of Goods (CISG). If all parties in a dispute
have their headquarters in Germany, the sole place of jurisdiction for any contract dispute is Stuttgart. For
processes in front of district courts, Stuttgart District Court (70190 Stuttgart) is the
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responsible court in this case. In all other cases, contract disputes shall be settled definitively in
accordance with the Rules of Arbitration of the International Chambers of Commerce by one or several arbitrators
appointed in accordance with this ordinance. The place of arbitration is Zurich, Switzerland, unless the parties in
dispute agree a different location. The language for the arbitral proceedings is English. The parties in dispute shall

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 Agreement to Quality and Corporate Social Responsibility

handle all information that they receive in re-spect of arbitral

proceedings in accordance with this provision with the utmost confidence, including the existence of arbitral
proceedings. In a court and/or arbitral proceeding, they shall only disclose such information as is required to
exercise their rights. The chairman or arbitrator must be a different nationality to the
parties in dispute. The parties in dispute shall continue to meet the agreements affected by the dispute subject to a
different decision by the arbitral court.

Place………………….., dated……… Place………………….., dated………

………………………………………… ……………………………………….....
Robert Bosch GmbH SUPPLIER

Company stamp
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