1. PURPOSE

The purpose of this Supplier Handbook is to establish a methodology for the purchasing of Rekor Kauçuk A.Ş. within the framework of sustainable management standards, social management system standards, to establish a written methodology for the purchase of raw materials and packaging products from suppliers, to define the methodology for the selection, periodic audits and evaluation of suppliers and to determine the responsibilities related to the subject and to carry out it in a discipline.

2. SCOPE

This includes our raw material suppliers. These suppliers supply raw materials that directly affect the product quality of Rekor Kauçuk and their qualifications have been approved. In order to guarantee the quality of their products and processes, they take, maintain and implement the measures in this handbook. Upon our request, all details of these measures, such as data, records and implementation results, will be made available to us.

3. APPLICATION

Our practices regarding our supplier selection are carried out according to this handbook. Our Purchasing Department is responsible for the coordination and execution of this work. Supplier selection is made among suppliers that have received at least ISO 9001:2015 certification by an accredited certification body "unless otherwise specified by the customer".

In addition, ISO 14001 environment and/or ISO 45001 occupational health and safety management system certificates may be requested from some of our suppliers. Suppliers are responsible for notifying Rekor Kauçuk of all new or revised quality system certificates.

As a minimum, the supplier must assume its legal responsibilities, meet environmental and labour law requirements and act in accordance with Rekor Kauçuk's Sustainable Development Goals.

4. SELECTION OF RAW MATERIAL GROUP SUPPLIERS AND APPROVED SUPPLIER LIST

The list of raw material suppliers from which Rekor Kauçuk A.Ş. procures the input materials used in production is given with the Approved Supplier List. The approved supplier list is prepared together for domestic and imported purchase items. Raw materials are not purchased from companies outside these lists. Approved supplier lists are kept up-to-date electronically. Approved, conditionally approved and unapproved suppliers can be seen in the approved supplier list. Approved suppliers are marked in green, conditionally approved suppliers in yellow and unapproved suppliers in red. All suppliers on the approved supplier list are reviewed once a year. Since the approved supplier list is a

living list and is constantly updated, the approval validity periods of approved suppliers are also renewed. For 3 years, suppliers with approved supplier status that have not been purchased are suspended and in case of re-purchase, the sample approval process continues first. The suspension dates and review dates of conditionally approved and non-approved suppliers are shown in the list. The review period for conditionally approved suppliers is 1 year, and the review period for non-approved suppliers is 3 years. In addition, CALIFORNIA 65 CONFLICT MINERAL FORM, KKDIK, EU REACH documents and whether it is a DIRECT SUPPLIER can be accessed in the approved supplier list.

4.1. Adding a new supplier to the Raw Material Approved supplier list

In order to get to know our suppliers technically and commercially, the question list of new supplier selection criteria, New Supplier Selection Criteria List Form is shared with the

supplier and document accuracy is confirmed with proof documents. Subsequently, TDS, SDS and ISO 9001 documents for the raw material to be supplied, Reach registration and KKDIK registration information are requested with samples. The sample is followed up with the ÜR-GE

Purchasing Alternative Raw Material Studies Tracking Form. In this form, starting from the order number of the material, supplier, manufacturer, origin information and TDS SDS REACH KKDIK information can be accessed. This form includes quality (32 points), manufacturing and control tools (24 points), company reliability (16 points), company price policy (8 points), legal requirements (20 points). The scoring is 8 for those that are present and 0 for those that are

not. The score from the bar will constitute 80% of the total score. In addition, SUSTAINABILITY- SELECTION CRITER, HR- SELECTION CRITER, OHS-SELECTION CRITER, ENVIRONMENT- SELECTION CRITER

There are headings and the scoring here consists of the number of YES-NO answers given to the questions and the scores will be multiplied by 20%.

25-19 yes fields: 100 points

18-12, yes: 50 points

11-0 yes fields: 0 points

As a result of this scoring, the suppliers that are above 85 points and have received at least 12 yeses from the corporate responsibility questions are added to the approved supplier list in electronic environment and orders can be placed. In line with the customer's request, the above-mentioned procedures are carried out for the companies that make or sell a new raw material required for a new formula. Buying the raw material requested by the customer from the supplier of their choice does not remove the responsibility of Rekor Kauçuk A.Ş. regarding quality

4.1.1. Raw Material Group Existing suppliers will be removed from the approved supplier list at the end of the evaluation period

Each order placed for purchasing purposes and the resulting shipments are recorded in the Supplier Monitoring Form and the Supplier is evaluated according to the Supplier Evaluation Report. The points given at the end of these evaluations are calculated in six-month periods. In case of a supplier to be removed from the list at the end of this calculation, supplier improvement processes are applied. Approved Supplier List and is updated electronically.

4.2. Company Visit and Supplier Selection

After the evaluation of the New Supplier Selection Criteria List Form, if deemed necessary, our Purchasing and Quality departments visit the company to observe the supplier candidate's opportunities on site. In some cases, other relevant departments in Rekor Rubber may also participate in these visits. The purpose of this visit is to observe the content of the form and detailed information sent by the supplier candidate.

4.3. Supplier Audit:

In line with the Supplier Audit Plan made every year, suppliers of raw materials/packaging materials, especially suppliers of production, are audited. These audits may be announced or unannounced. Especially when low performance is detected in existing suppliers, audits are

carried out according to ISO 9001:2015 standard with the participation of quality assurance, purchasing and production departments if deemed necessary. Within the scope of improvement,

quality management training suggestions are made to the supplier and the relevant process is followed. New suppliers or supplier candidates are also audited if deemed necessary. According to the report prepared as a result of the audit, it is decided whether to continue with the supplier in question, taking into account all situations.

During the audit, the Supplier Audit and Social Audit Questionnaire is filled in and the results are calculated accordingly. Online audits and interviews can be made for force majeur situations. Supplier interview Form during the interview is filled.

4.4. Supplier Evaluation

The supplier is eva l u a t e d i n t h e light of the criteria given below according to the shipment realised at the end of the order. The evaluation is completed until the middle of the month after the end of the period. Supplier evaluations are made with Supplier Monitoring Form and Supplier Evaluation Form. In addition to the evaluation of all suppliers, it is organised with the Supplier Risk Assessment Form.

4.4.1. Supplier Scoring Criteria:

A.) Quality System Certificates:

Quality system certificates are tracked with the Document Tracking Form. The following documentsareinto consideration during the evaluation; ISO 9001:2015 Quality Certificate

ISO 14001: 2018 Environmental Certificate

ISO 45001: 2018ISG Certificate

IATF 16949:2016 Automotive Quality Certificate

B.) PPM:

For the raw material product group, the margin of error in the products shipped to us is calculated by the quality department

and the supplier of the raw material is evaluated according to the PPM result.

C.) Error Reporting:

The number of error reports per shipment is calculated for all suppliers. It constitutes the bug report score.

D.) Corrective Action Rate:

Suppliers are scored according to the speed of fulfilment of corrective action (8D) requests.

E.) Field Returns:

The supplier is scored according to the problems caused by the supplier in the customer, including field returns.

F.) Recall

It is a recall problem related to the finished product, which is confirmed to be caused by the

raw material received from the

supplier.

G.) Compliance with Delivery Quantity:

The supplier is scored according to the compliance between the order quantity delivered and the order quantity received. (+/- 10% acceptance)

H.) Compliance with Delivery Deadlines:

REV.02

The supplier is scored according to the compliance between the transmitted order date and the promised delivery date (domestic market: +/- 2 days, import: +/- 7 days)

İ.) Excessive Freight

The supplier is scored according to the excessive freight charge caused by the supplier.

J.) Relations with suppliers

The supplier is scored according to price policy, ability to reduce costs, ability to communicate with the relevant parties, compliance with the confidentiality policy.

K.) Environment 14001:2018 (Damages of purchased products to the environment)

By examining the transport, handling and packaging conditions, it is evaluated whether there are practices that may harm the environment in these matters and scoring is made. It is questioned whether there is any damage, inappropriat packaging, stacking, spillage, use of flimsy packaging materials, etc. that may be harmful to the environment.

L.) ISO 45001:2018 (OHS assessment of products received)

It is evaluated by questioning whether the products supplied from suppliers in accordance with ISO 45001:2018 standards have an impact on human health despite taking precautions within the enterprise during use. (If any, occupational diseases are evaluated based on occupational accidents that arise or may arise from the use of the relevant raw material)

4.5 Supplier Development:

The Supplier Monitoring and Evaluation Form is shared for the development of the supplier for which a risk assessment is made according to the Supplier Risk Assessment Form, and the opportunity is given to make improvements on weaknesses. Status control is performed through second party audits. As post-audit improvement steps, information about process management, risk analyses, problem solving methods / guidance can be given in determining the need for training.

4.6 System Requirements

Suppliers are audited under ISO 9001 as a minimum and audited under IATF/ VDA where applicable.

The supplier must provide a written response stating the immediate action within 48 hours at the latest and the root cause and permanent action within 10 working days.

Corrective action is the effectiveness of the activities carried out by the supplier and the closure of the activity is carried out by the Quality Department. The supplier has to agree with Rekor Kauçuk on what to do with the rejected products within 15 working days. Otherwise, the rejected parts may be scrapped and invoiced to the supplier.

4.7 Supplier Error Notification

When there is a non-conformity in the materials received from our suppliers, the quality department prepares a Corrective Action Form for the supplier regarding the non-conformity. The necessary follow-ups regarding the error are carried out by the purchasing and quality departments with the Verification method. All of these processes are carried out electronically in the Quality Management system and under record. If the Corrective Preventive Action form issued by the supplier does not comply with the standard, it is requested from the supplier again and guidance on how to follow the process is made by the purchasing department. If a second non-compliant DOF is received, the supplier is audited on-site. In case of suspicion of counterfeit parts in production, the error notification form from the quality unit is sent to the supplier of the suspicious product. An emergency action plan is received electronically from the supplier within 24 hours. After the efficiency and suitability of the urgent action is checked, the evaluation result is shared with the supplier and the process is progressed. While continuing these processes, simultaneously, the supplier error notification form is filled in and received from the supplier after being transmitted, and the evaluation result is uploaded to QDMS and sent to the quality unit.

4.8 Bidding

A quotation is requested for the relevant raw material with the Request For Quotation form. The supplier candidate arranges a detailed price analysis in line with our purchasing data and submits its offer to the Purchasing department using this form. The order of the materials requested over the collected offers is created according to the instructions for Creating a Purchase Order via ERP System.

4.9 Approval of the Proposal:

The offers of the supplier candidates are evaluated by the Purchasing department. If an agreement is reached, an order is opened to the selected supplier.

4.10 Customer Representative

The supplier company appoints a "Customer Representative", preferably from the technical departments, who will be in contact with the Quality Assurance and Purchasing departments. Our expectations from this "Customer Representative":

Storing the purchasing data transferred by the Purchasing Department and following up the update, Informing and training the relevant persons in the supplier company about this handbook,

Knowing the "conditions of use and environment" of the material or service supplied by the supplier both in Rekor Kauçuk and in the end-use area; accordingly, working in cooperation with the relevant departments of Rekor Kauçuk to determine the parameters to be "taken under control",

ensuring harmonisation in measurement and control systems, and ensuring continuity in this situation by exchanging information,

Notification of "suspicious product" shipments to the Purchasing Department, follow-up, sorting, etc. Monitoring and informing Rekor Kauçuk about all kinds of non-conformities "related to product and process" that arise in the supplier company and the related corrective actions,

In summary, to be an ambassador and representative between our company and the supplier company in terms of technical and logistical issues.

4.11 Initiation of the Project:

"Purchasing data" including the Supplier Handbook and technical documentation related to the product to be purchased are sent to the favourable supplier candidates by the Purchasing Department. The Supplier Handbook can also be downloaded from the Rekor Kauçuk website. In addition, Rekor Kauçuk General Purchasing Specification is signed with the supplier company. This specification must be signed by a person from the supplier company who is authorised to sign in the signature circular. While sending a copy of the specification to Rekor Kauçuk, a copy of the company's signature circular must be sent as an attachment.

4.12 Sample Order and Approval:

The purchasing department opens the first sample order to the supplier with the raw material purchase order form. The supplier company is responsible for supplying the requested product to Rekor Kauçuk with all technical documents unless otherwise stated.

4.13 Goods Acceptance Process and Return Process:

The supplier must send us the certificate of analysis together with the delivery note of the products to be shipped, without these two documents, the goods cannot be accepted in the ERP system.

If a defective product is detected during goods acceptance; a report is kept by the raw material warehouse team. Then the said report is forwarded to the supplier and confirmation is received from the supplier regarding the problem experienced. The return delivery note and invoice of defective products are created and the return process is completed.