Global Supplier Balanced Scorecard (SBS)

Rating System Guidelines Definitions

1.

Quality (25%) = 1.25 Points out of 5.00 Points PPM (80%) Reject Occurrences (20%)

2.

Delivery (25%) = 1.25 Points out of 5.00 Points On-time Delivery (100%)

3.

Support (25%) = 1.25 Points out of 5.00 Points Minority Sourcing (50%) * Quality System (50%) * For non-USA, Minority Sourcing is not applicable. In that case, the Quality System metric is 100% and the Driver weighting is adjusted to 10% Support, and 30% each for Quality, Delivery, and Commercial.

4.

Commercial (25%) = 1.25 Points out of 5.00 Points Cost Savings (100%)

Total Rating Weighting

Max. Points

Quality

25 %

1.25 points

Delivery

25 %

1.25 points

SPI

25 %

1.25 points

Commercial 25 % 1.25 points ---------------------------------------------------------Maximum Total Rating = 5.00 points

Ratings are calculated for the most recent (rolling) 12 months and year-to-date.

Global Supplier Balanced Scorecard (SBS)

OEM Rating Metrics 1. PPM (Quality)—based on accumulation of parts per million and reflects the defect rate we have experienced with our supplier’s product. The rating scale below is used to assign points based on parts per million defective. Rating

Parts Per Million Defective

5.0 4.9 4.8 4.7 4.6 4.5 4.4 4.3 4.2 4.1 4.0 3.9 3.8 3.7 3.6 3.5 3.0 2.0 1.0 0.1

Equal to 0 PPM Greater than 0 PPM and ? 10 PPM Greater than 10 PPM and ? 20 PPM Greater than 20 PPM and ? 30 PPM Greater than 30 PPM and ? 40 PPM Greater than 40 PPM and ? 50 PPM Greater than 50 PPM and ? 60 PPM Greater than 60 PPM and ? 70 PPM Greater than 70 PPM and ? 80 PPM Greater than 80 PPM and ? 90 PPM Greater than 90 PPM and ? 100 PPM Greater than 100 PPM and ? 200 PPM Greater than 200 PPM and ? 300 PPM Greater than 300 PPM and ? 400 PPM Greater than 400 PPM and ? 500 PPM Greater than 500 PPM and ? 600 PPM Greater than 600 PPM and ? 1,000 PPM Greater than 1,000 PPM and ? 2,500 PPM Greater than 2,500 PPM and ? 5,000 PPM Greater than 5,000 PPM

2. Number of Reject Occurrencess (CARs, DMRs, etc.) (Quality)—based on number of Reject Occurrences in a twelve month period. Rating

Number of Reject Occurrences

5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.1

0 1-5 6 - 10 11-15 16 - 20 21 - 25 26 - 30 31 - 35 36 - 40 Greater than 40

Global Supplier Balanced Scorecard (SBS) 3. On-Time Delivery (Delivery)– as scheduled, is based on the number of shipments received relative to the agreed to as-scheduled date. The receiving facility will define measurement base as line fill, quantity fill or dollar fill. Point Value 5.0 4.9 4.8 4.7 4.6 4.5 4.4 4.3 4.2 4.1 4.0 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3.0

=> 100.0% 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% 87.0% 86.0% 85.0% 84.0% 83.0% 82.0% 81.0% 80.0%

to to to to to to to to to to to to to to to to to to to to to to

=< 100.0% 99.99% 98.99% 97.99% 96.99% 95.99% 94.99% 93.99% 92.99% 91.99% 90.99% 89.99% 88.99% 87.99% 86.99% 85.99% 84.99% 83.99% 82.99% 81.99% 80.99%

Point Value 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1.0 0.1

=> 79.0% 78.0% 77.0% 76.0% 75.0% 74.0% 73.0% 72.0% 71.0% 70.0% 69.0% 68.0% 67.0% 66.0% 65.0% 64.0% 63.0% 62.0% 61.0% 60.0% 0.0%

to to to to to to to to to to to to to to to to to to to to to to

=< 79.99% 78.99% 77.99% 76.99% 75.99% 74.99% 73.99% 72.99% 71.99% 70.99% 69.99% 68.99% 67.99% 66.99% 65.99% 64.99% 63.99% 62.99% 61.99% 60.99% 59.99%

Quantity On-Time—Quantity received on or before the due date for the rating month. Quantity Due—Quantity ordered for the rating month. 4. Minority Sourcing (Support)—The rating is based on the annualized dollar value of purchases from Minority Business Enterprises (MBEs), compared to the supplier’s annual sales dollars to Dana. The minority supplier must be certified by an affiliate of the National Minority Supplier Development Council. For non-USA, Minority Sourcing is not applicable. In that case, the Quality System metric is 100% and the Driver weighting is adjusted to 10% Support, and 30% each for Quality, Delivery, and Commercial. (A) Minority Business Enterprise (MBE) Purchases Rating Purchases from MBEs as a Percent of Sales 5.0 Greater than or equal to 5% 4.0 Less than 5%, but greater than or equal to 4% 3.0 Less than 4%, but greater than or equal to 3% 2.0 Less than 3%, but greater than or equal to 2% 1.0 Less than 2%, but greater than or equal to 1% 0.1 Less than 1%

Global Supplier Balanced Scorecard (SBS)

(B) Minority Supplier Development Activities (for added points) In addition to the points received based on purchase dollars, the supplier may receive additional points for any combination of the following minority supplier development activities. To add points, the supplier must submit an acceptable Minority Supplier Development plan in writing to the appropriate Purchasing Manager, with a copy to Dana’s Director of Minority Business Development. The Maximum credit allowed for minority supplier development activities is 3.0 rating points. The maximum total rating for this metric is 5 points. Credit 1.0 0.5 1.0 0.5 0.5 1.0 2.0

Description Supplier has a designated Minority Purchasing Coordinator. Attendance and Recruiting of minority suppliers at Business Opportunity Fairs. Must attend a minimum of 2 fairs in 12 months. Member of National Minority Supplier Development Council (NMSDC). Member of NMSDC Regional Council. Mentoring a Minority Business Enterprise. Strategic alliance with a certified minority supplier that supplies product that is specific to Dana usage. Joint Venture with a certified MBE that supplies products specific to Dana usage.

5. Quality System (Support)—this rating reflects the supplier’s quality system status. * Rating 5.0 4.5 4.0 3.0 2.0 0.1

Description ISO-14000 and QS-9000 registered. QS-9000 registered. ISO-9000 registered. ISO-9000 or QS-9000 compliant as determined by Dana-approved 2nd party audit. Written plan to become ISO/QS-9000 registered. Plan must be acceptable to Dana. No plan to become ISO- or QS-9000 registered or compliant.

* Registrations to systems that are equivalent to QS-9000 are acceptable outside of the USA. These include VDA 6.1.

6. Cost Savings (Commercial)— This rating reflects the supplier’s cost trend. Rating 5.0 4.5 3.5 2.0 0.1

Description Supplier reduces total net costs above Hellweek expectations. Supplier reduces total net costs equal to Hellweek expectations. Supplier reduces total net costs below Hellweek expectations. Supplier holds total net costs steady. Supplier increases total net costs.

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Global Supplier Balanced Scorecard (SBS)

Sample Rating Calculation ? ? ? ? ? ? ? ?

25 PPM 2 reject occurrences 96.5% on-time delivery Purchases from Minority Business Enterprises (MBEs) = 1.3% of sales to Dana Corp. Supplier has a designated minority purchasing coordinator Supplier is QS-9000 registered Hellweek plan is to get a minimum 3.5% reduction in total net purchasing costs. Supplier reduces total net costs by 4%.

Quality PPM: 4.7 points x 80% = 3.76 Reject Occurrences: 4.5 points x 20% = 0.90 Quality Rating = 3.76 + 0.90 = 4.66 Delivery On-time Delivery: 4.6 points x 100% = 4.60 Delivery Rating = 4.60 Support MBE Purchases: 1.0 points MSD bonus points: 1.0 + 0.5 = 1.5 points Minority Sourcing: (1.0 points + 1.5 points) x 50% = 2.5 x 50% = 1.25 Quality System: 4.5 points x 50% = 2.25 Support Rating = 1.25 + 2.25 = 3.50 Commercial Cost Savings: 5.0 points x 100% = 5.00 Commercial Rating = 5.00 Total Rating = (4.66 x 25%) + (4.60 x 25%) + (3.50 x 25%) + (5.00 x 25%) = 1.16 + 1.15 + 0.88 + 1.25 = 4.44 Overall

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