QUALITY ASSURANCE POLICY

KOWA AMERICAN CORPORATION HAS AN ONGOING COMMITMENT TO SUPPLY ITS CUSTOMERS WITH THE HIGHEST QUALITY PRODUCTS AVAILABLE FOR EVERY DELIVERY. KOWA AMERICAN HAS ESTABLISHED THIS QUALITY ASSURANCE PROGRAM TO INSURE EVERY DELIVERY CONFORMS TO THE ESTABLISHED SALES SPECIFICATIONS, THAT A COMPLETE CERTIFICATE OF ANALYSIS IS PROVIDED BEFORE OR DURING DELIVERY, AND THAT ALL CUSTOMER’S INSTRUCTIONS FOR DELIVERY (INCLUDING TIME, PLACE, MARKINGS, LABELS AND PACKAGING/CONTAINERS) ARE CONSISTENTLY ADHERED TO. OUR POLICY IS TO STRIVE FOR ZERO NON-CONFORMING QUALITY INSTANCES.

KOWA AMERICAN‘S QUALITY ASSURANCE PROGRAM HAS BEEN DIVIDED INTO THREE AREAS:

1. ESTABLISH QUALITY ASSURANCE PARAMETERS WITH EACH CUSTOMER

KOWA AMERICAN WILL ESTABLISH QUALITY CONTROL PARAMETERS BEFORE THE FIRST DELIVERY THAT WILL INCLUDE THE AGREEMENT BY ALL PARTIES (MANUFACTURER, CUSTOMER AND KOWA) OF ALL THE SALES SPECIFICATIONS REQUIRED TO INSURE MATERIAL SUPPLIED WILL BE OF THE HIGHEST QUALITY AND TO BE FIT FOR THE INTENDED USE OR APPLICATION OF THE CUSTOMER. THIS WOULD INCLUDE REVIEW OF TEST METHODS, SAMPLES, AND STATISTICAL PROCESS CONTROL SHEETS TO INSURE REGULAR LONG TERM QUALITY COMPLIANCE. KOWA ALSO LOOKS TO ESTABLISH
“STRATEGICESALES SPECIFICATIONS WITH CUSTOMERS, WHERE CUSTOMER WOULD DESIRE IMPROVEMENT IN A CURRENT SALES SPECIFICATION FROM THE PRESENT QUALITY TO A QUALITY PARAMETER THAT WOULD IMPROVE THE CUSTOMER’S
MANUFACTURING EFFICIENCY, FINAL PRODUCT QUALITY, OR REDUCE WASTE.

2. INSURE COMPLIANCE OF QUALITY CONTROL PARAMETERS

KOWA WILL THEN ESTABLISH WITH ITS SUPPLIERS A PROGRAM TO INSURE FULL COMPLIANCE OF THE ESTABLISHED SALES SPECIFICATIONS. KOWA WILL INSURE THE CERTIFICATES OF ANALYSIS ARE PROVIDED BEFORE DELIVERY AND THAT THEY ARE COMPLETE AND IN SPECIFICATION. KOWA ALSO STRIVES TO INSURE SUPPLIERS ARE EITHER ISO-9000 CERTIFIED OR ARE IN THE PROCESS OF GETTING THIS CERTIFICATION.
KOWA’S QUALITY POLICY ALSO CALLS FOR QUALITY IMPROVEMENT, WHERE IDENTIFIED
STRATEGIC SPECIFICATIONS ARE RELAYED TO THE SUPPLIER FOR IMPROVEMENT. KOWA WILL WORK WITH BOTH SUPPLIER AND CUSTOMER TO STRIVE FOR A REGULAR QUALITY IMPROVEMENT OF THESE CRITICAL QUALITY PARAMETERS.

3. ESTABLISH AND INSURE COMPLIANCE OF DELIVERY INSTRUCTIONS

CUSTOMER WILL ADVISE KOWA OF ITS SPECIFIC DELIVERY NEEDS AND INSTRUCTIONS, WHICH WOULD INCLUDE:

A. METHOD OF TRANSMITTAL FOR CERTIFICATE OF ANALYSIS (VIA FAX, DRIVER,
ATTACHED TO DRUM OR PACKAGING).

B. DELIVERY TIME, SPECIFIC DELIVERY LOCATION AND IF BULK THE PROPER
UNLOADING EQUIPMENT REQUIRED (PROPER SIZED FITTINGS, HOSE TYPE &
LENGTH, VAPOR RETURN LINE, AND CUSTOMERS PREFERRED CARRIERS).

C. REQUIRED MARKS, CODE NUMBERS AND SAFETY INFORMATION FOR
CUSTOMER TO QUICKLY AND SAFELY IDENTIFY AND UNLOAD PRODUCT.

D. SPECIFIC PACKAGING NEEDS (i.e. PALLETS, SHRINK-WRAP, PACKING ORDER)

KOWA WILL INSURE THAT THESE CUSTOMER INSTRUCTIONS ARE FULLY COMPLIED WITH AND THAT A MATERIAL SAFETY DATA SHEET (MSDS) ACCOMPANIES EACH SHIPMENT. KOWA HAS ALSO ESTABLISHED A NON-CONFORMANCE PROGRAM FOR CARRIERS OR WAREHOUSES THAT DO NOT COMPLY WITH OUR ORIGINAL INSTRUCTIONS TO INSURE FUTURE COMPLIANCE.
NON-CONFORMING QUALITY OCCURRENCES“”

KOWA AMERICAN CORPORATION HAS AN MAJOR COMMITMENT TO A CONTINUOUS IMPROVEMENT IN BOTH PRODUCT QUALITY AND THE QUALITY ASSURANCE PROGRAMS THAT ARE DESIGNED TO INSURE QUALITY NEEDS ARE MET 100% OF THE TIME. PART OF THIS IMPROVEMENT IS TO REGULARLY REVIEW AND UPDATE OUR PROCEDURES AND STANDARDS IN OUR QUALITY CONTROL PROGRAM. KOWA AMERICAN WELCOMES ANY COMMENTS, SUGGESTIONS OR FEEDBACK FROM