The following information is provided to assist suppliers in understanding some of Amstron's procedures, policies, and practices that are designed to lend continuity to our supplier/customer relationships. This outline is intended to be a general overview and not a complete summary. The purchasing staff (purchasing@amstron.com ) is able to provide additional details where necessary.

1.	Product Quality - Amstron expects suppliers to furnish quality products that conform to specifications and customer demands on a consistent and ongoing basis. This is of absolute necessity in supporting Amstron's position as the quality leader in the battery industry.
2.	Product Delivery - In today's competitive business environment, manufacturers and suppliers must work diligently to streamline the supply chain. Delivery, respecting agreed-upon delivery times, is essential to a mutually beneficial Amstron/supplier relationship.
3.	New Products/Technologies - Amstron encourages and expects suppliers to introduce new ideas, products, and technologies to our business. Through this creativity, Amstron is able to offer its customers a unique and more advanced product relative to years past and our competition. This premise is a foundation of our long-term supplier relationships.
4.	Value Analysis - Our suppliers, both prospective and current, are encouraged to provide direction and input on Amstron value analysis opportunities aimed at enhancing our product line. Conversely, we are eager to work with suppliers in value-engineering their products to create mutual benefits.
5.	Pricing - Amstron desires multi-year agreements that provide an assurance of continuous business. Our preferred suppliers are consequently well positioned to develop long-term strategic plans for their business, including R&D, facilities, and equipment investments. In exchange for this volume consideration and long-term agreement, we expect our suppliers to commit to stable pricing and annual price reductions over the term of our agreement. When necessary, any proposed price increases are to be presented for review sixty (60) days prior to the effective date of change. Of course, any price increase must be substantiated and "earned" through performance during the preceding period.
6.	Warranty - Amstron warrants its products for a minimum of one year from date of sale to its customer, with an emphasis on ensuring customer satisfaction. Amstron's warranty covers both parts and labor. Our suppliers are expected to support this warranty by offering the same warranty on their products. Suppliers will receive a quarterly "Warranty Claims Statement" so they can review recent warranty claims and provide feedback to Customer Service and Corporate Purchasing regarding the disposition and corrective action on defective parts.
7.	Return Policy - In the event that Amstron must return a part or product to a supplier, regardless of the circumstances, it is our policy to debit the supplier for the cost of that part. "Return Goods Authorization" numbers will be obtained in advance of the return if required by the supplier. Each return will be accompanied by a document that details the reason for the return, the party responsible, and disposition. The supplier may re-invoice Amstron for returned parts when repairs/replacements are made. All repair charges must be approved in advance by Amstron Purchasing.
8.	Product Liability - Suppliers are required to maintain general product liability insurance with respect to the products supplied to Amstron. This coverage will be a minimum of $2 million and may be more, depending upon the relative liability exposure of the item.
9.	Confidentiality - As Amstron is continually striving to stay ahead of the competition, it is essential that discussions of any nature be held in the strictest confidence. At times, depending on the circumstances, suppliers will be asked to sign a formal confidentiality agreement.
10.	Ethics - All purchasing personnel within the Amstron organization, and the suppliers they deal with, are expected to conduct their business in accordance with the 12 "Principles and Standards of Purchasing Practice" as defined by the National Association of Purchasing Management (NAPM).

Principles and standards of purchasing practice

LOYALTY TO YOUR ORGANIZATION, JUSTICE TO THOSE WITH WHOM YOU DEAL, FAITH IN YOUR PROFESSION

From these principles are derived the NAPM standards of purchasing practice. (Domestic and International)

1.	Avoid the intent and appearance of unethical or compromising practice in relationships, actions and communications.
2.	Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and only authority granted.
3.	Refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the employer.
4.	Refrain from soliciting or accepting money, loans, credits or prejudicial discounts, and the acceptance of gifts, entertainment, favors or services from present or potential suppliers that might influence, or appear to influence, purchasing decisions.
5.	Handle confidential or proprietary information belonging to employers or suppliers with due care and proper consideration of ethical and legal ramifications and governmental regulations.
6.	Promote positive supplier relationships through courtesy and impartiality in all phases of the purchasing cycle.
7.	Refrain from reciprocal agreements that restrain competition.
8.	Know and obey the letter and spirit of laws governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.
9.	Encourage all segments of society to participate by demonstrating support for small, disadvantaged, and minority-owned businesses.
10.	Discourage purchasing's involvement in employer-sponsored programs of personal purchases that are not business related.
11.	Enhance the proficiency and stature of the purchasing profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behavior.
12.	Conduct international purchasing in accordance with the laws, customs and practices of foreign countries, consistent with United States laws, your organization policies and these Ethical Standards and Guidelines.