Cost compensation criteria to buyer or buyer customer for supplier material quality issue:
1) Be obliged to penalty 850 RMB by every rejected and reported batch
2) BUYER’s personnel inspects faulty batch totally (100%), RMB 50/per hour/ person
3) BUYER’S product rework for supplier consequences of non-conformity or defects,
RMB 20/per hour/ person
4) Components cost loss is caused by supplier consequences of non-conformity or defects. The components expense calculation is based on component price currently.