STRATEGIC SUPPLIERS MANAGEMENT SYSTEMS

Riceelec believes that strict supplier management system is an effective way for our counterfeit avoidance actions.

We have defined and documented to ensure:
• New suppliers are evaluatedand selected basedon their abilitiesto supply qualifiedproducts,which meetour criteria includingformal trade reference and audit.

 • Qualification of suppliers is classified as manufacturer, franchised distributor, OEM/EMS and otherswith preference dated from vendor code set up.

 • Supplier transactions history is reported quarterly to practicethe systematic credit management.

 • Evaluation is initiated quarterly to rate suppliers base on quality,delivery,corrective action,result of port of eport of n and ratingality and shipment issues.quality and shipment issues.