123 East Maple Avenue

10-17-04

Supplier 123 East Maple Avenue Holland, MI 49464 Attn: Mr Green

Subject: Entry into Level 3 Containment

Dear Supplier:

Level 3 Containment is part of Herman Miller’s Supplier Containment Guidelines Procedure, PUR-QA-SI-011, and is part of the Supplier Quality Improvement Process. The Controlled Shipping process is a containment and problem solving activity mandated and directed by Herman Miller. Herman Miller has determined that current controls by your organization are insufficient to insulate the HMI Greenhouse Seating Plant from the receipt of non-conforming parts/material produced by your facility. This letter is formal notification and confirms discussions held with your organization that effective 10-17-04; your Zeeland, MI facility has been placed into Level 3 Containment. Level 3 Containment includes compliance to PUR-QA-SI-011 as evaluated by a third party assessment performed by Product Action www.productaction.com for the following non-conformances. See table below:

Part Number 15954042 & 15957783 Part Name Front Brackets Non-conformance(s) The flange angles m/a prohibiting the thru bolt to align with the weld nuts. NCM Number 20040915-073446 Plants Affected Greenhouse Seating Product Lines Chair Affected Product Lines Chair Affected Other Special Mark all containers with Corrective Action Number, inspector name and date Instructions inspected.

Therefore, you must immediately: 1. Implement containment and pay the costs of the approved Product Action containment and assessment over and above your current process controls and containment activities. The HMI-defined Containment Level 3 Process activities are in addition to any existing controls and containment activities at the Supplier. The HMI approved containment and assessment provider is Product Action. You are responsible to contact Product Action for implementation of Containment. Their contact phone # is 866-579-SORT.  Product Action must establish the containment and conduct a Kickoff Meeting with you within 24 hours of receiving your Purchase Order.  The first Containment status report shall be initiated within 3 business days and submitted to HMI within 5 business days after receiving your Purchase Order.  Follow up Containment status reports shall be conducted at minimum twice monthly until this containment action is closed.

2. HMI requires that your Corrective Action plans for Level 3 Containment issues be submitted to both Herman Miller and Product Action representatives for review.  The required documentation for termination of containment includes the Product Action Assessment/ Results, action plan and a successfully implemented and approved Corrective Action. (See also PUR-QA- SI-011)

Note: Failure to comply with this process or the inability to implement successful Containment action plans or containment activities will result in the implementation of New Business Hold.

The attached Confirmation Reply form must be completed and returned within 24 hours to the HMI contacts noted below. Confidential Page 1 4/6/2018 Form # PUR-QA-SI-011 rev 8 If you have any questions, your HMI contacts are:

Jan DeFouw – New Product SQE @ 616-654-3901, fax: 616-654-5279, & e-mail: [email protected], who, along with the Product Action Quality Engineer, will be monitoring and defining your Controlled Shipping activities, and

Brian Bordewyk @ 616-654-3579, fax 616-654-5117, & e-mail [email protected] who will be over-seeing the activities of your Controlled Shipping process.

Sincerely,

______Drew Schramm Sr. Vice President – Supply Management Herman Miller Inc.

Attachments

Title Name E-mail Address Mfg Plant Manger Greg Wrona [email protected] Mfg Quality Manger Mark Vruggink [email protected]

Mfg Quality Engineer Mike Burne [email protected]

Confidential Page 2 4/6/2018 Form # PUR-F-015 Attachment: Entry into Containment Level 3 letter,

Supplier Responsibilities During Level 3 Containment:

 Maintain Level 2 Containment elements  Contain all non-conforming parts at the supplier, warehouses, in transit, and at any Herman Miller locations immediately upon notification of Controlled Shipping status.  Participate in all Containment-Level 3 meetings as required.  Establish a containment area that is separated from the normal production and from the Containment Level 2 areas. This containment area may be located within the normal production area if the Herman Miller representatives approve the location based on material flow, possible damage due to excessive handling, or product design considerations.  Provide gaging, tooling, or equipment, if required, for product or process inspections.  Facilitate the review of Containment Data. Coordinate and Outline your plans for reviewing your Containment data.  Track and report your progress by using a mutually agreed reporting format as reviewed by the HMI representative.  Participate and pay the costs of Product Action Supplier Containment process as required by HMI.  Meet the defined Level 3 Containment exit criteria as specified in the Herman Miller Procedure # PUR-SI-005.

Exit Criteria:

 No NCMs issued for the listed defects and inspection data showing no rejects into the inspection area for a minimum of 3 shipments AFTER implementation of Irreversible Corrective Actions. (If deemed appropriate by Supplier Quality Engineer, the duration of the Controlled Shipping activities may be adjusted.)  Evidence that a thorough problem-solving process was used, the true root causes of the problems were discovered and effective Irreversible Corrective Actions were implemented and validated.  As appropriate, Statistical Process Control shall be used to confirm stable and capable processes during the 3 shipments after implementation of Irreversible Corrective Actions.  All documents (Potential Failure Mode and Effects Analysis (PFMEA), Process Control Plan, Process Flow Diagram, Operator Work Instructions and Training records must be modified and approved utilizing the PPAP process as required.  HMI SQE's will respond to a supplier’s request for exit from Level 3 Containment within 72 hours of exit package receipt.  The supplier is to remain in Controlled Shipping status until written authorization to exit is received from: Jan DeFouw – New Product SQE @ 616-654-3901, fax: 616-654-5279, & e-mail: [email protected].

Confidential Page 3 4/6/2018 Form # PUR-F-015 HERMAN MILLER GUIDELINES FOR CONTROLLED SHIPPING EXIT PACKAGE (S)

Documentation must be sent to the Originating Supplier Quality Engineer (SQE) noted in the Containment Notification.

All documentation must be contained in a binder or report folder indexed for easy location of all documentation.

Package should include:

1. Letter requesting exit on company letterhead 2. Updated PFMEA, Control Plan, Operator Work Instructions, Preventative Maintenance Plan and Flow Chart. (PPAP submission) 3. Well-illustrated Corrective Action Report containing when appropriate, evidence of error proofing. 4. Containment Data showing 3 consecutive shipments / lots that are error free. 5. Training records 6. Other documentation and information as requested by HMI 7. Statistical data as appropriate.

Confidential Page 4 4/6/2018 Form # PUR-F-015 CONTROLLED SHIPPING-LEVEL 3 CONFIRMATION REPLY HMI *** Note please send back to parties listed below via e-mail*** Do not separate this page from the rest of the letter & do not scan – keep in MS Word format.

TO: Jan DeFouw Herman Miller 375 West 48th Street Holland, MI 49423 5341 Email: [email protected]

FROM: Mr. Supplier 123 Maple Avenue Holland, MI 49464 050150481

We acknowledge receipt of your letter dated, 10-17-04, advising us that our above facility has been placed into Controlled Shipping-Level 3 Containment.

Yes No We have made contact and issued the necessary P.O. to Product Action to cover x containment costs incurred from date of notification.

If “NO” please indicate information as to why you do not fully understand or agree with the Herman Miller containment process requirements: ______

Please contact: Name of Supplier Contact at phone#: (Telephone number)

The Level 3 Containment activities will be performed at the following location:

The person responsible for the CS3 containment activities at my organization is: Name: Title: . Phone: Fax: E-mail: .

(Signature of person responsible for containment) (Date)

Confidential Page 5 4/6/2018 Form # PUR-F-015