1. CONTRACT PARTNERS

This Master Quality Agreement is concluded between:

Hereinafter referred to as "Customer) and:

also acting on behalf of its affiliated and associated companies, hereinafter referred to as “SUBCONTRACTOR(SUPPLIER)".

2. PERIOD OF VALIDITY

This Master Quality Agreement is effective after the date of acceptance by both CUSTOMER and

SUBCONTRACTOR(SUPPLIER).

This Master Quality Agreement is valid until the end of usage of the products (parts) by CUSTOMER, included the product lifetime.

3. TABLE OF CONTENTS

1. CONTRACT PARTNERS (1)

2. PERIOD OF VALIDITY (1)

3. TABLE OF CONTENTS (2)

4. REFERENCED DOCUMENT (2)

5. PURPOSE (3)

6. ZERO-DEFECTS............................................................................................................... 错误！未定义书签。

7. APPLICABLE DOCUMENTS (4)

7.1. Product specification (4)

7.2. Quality agreement documents (5)

7.3. Standards (5)

7.4. Order of precedence (5)

7.5. Environment. (5)

8. MUTUAL ACCESS, VERIFICATION AND CONFIDENTIALITY (7)

9. QUALIFICATION (7)

9.1. System (8)

9.2. Process (8)

9.3. Product (8)

10. SAFETY (9)

11. APPLICATION VALIDATION (9)

12. CHANGE CONTROL (10)

13. PROCESS CONTROL (10)

14. PRODUCT INSPECTION, MONITORING AND REPORTING (12)

15. QUALITY SPECIFICATION (12)

16. PPM MANAGEMENT (12)

16.1. Complaints and handling of rejects. (13)

16.2. Costs. (13)

16.3. Production line. (14)

17. HANDLING OF REJECTS (14)

18. SHELF LIFE AND WARRANTY (14)

19. TRACKING AND TRACING (15)

20. SIGNATURE SHEET (16)

4. REFERENCED DOCUMENT

The format of this Master Quality Agreement is documented in the standards system

5. PURPOSE

The purpose of this Master Quality Agreement (MQA) is to establish the quality system elements, the working relationship and the feedback systems between CUSTOMER and SUBCONTRACTOR(SUPPLIER) for products to be procured by CUSTOMER from SUBCONTRACTOR(SUPPLIER). The Master Quality Agreement establishes also the basic elements, which are required and aimed on the continuous improvement of the product conformity and reliability performance.

This document, as a memorandum of understanding, does not affect the terms and conditions set out by the Supply Agreement.

The Master Quality Agreement shall be used in conjunction with a Quality Data Sheet (QDS) or quality specification on product level.

6. Quality Target (Defect rate definition)

Both SUBCONTRACTOR(SUPPLIER) and CUSTOMER are committed to the principle of Annual Quality Target, in which all product defects and failures as well as other quality discrepancies, which provoke the need for complaints, are to be considered as unacceptable. The improvement to the target should following the roadmap of agreed annual and quarter milestones. Both parties will actively co-operate to investigate the causes of failure and the implementation of corrective- as well as preventive actions and generally assist each other in the achievement of mutually beneficial opportunities for quality improvement.

As evidence of the SUBCONTRACTOR(SUPPLIER)’s commitment to the Quality Target goal, SUBCONTRACTOR(SUPPLIER) agrees to supply products in accordance with the conformity and reliability targets as specified in the Quality Data Sheet (QDS) or quality specification.

2005 Q1 Q2 Q3 Q4

Active Box 2500 2000 1000 800

Passive Box 2000 1000 500 500

Wireless 2500 2500 1500 1000