July 13, 2023

Annual Notice to Suppliers

Dear Valued Supplier,

Advanced Energy Industries, Inc. (AE) would like to take this opportunity to remind our suppliers of the documentation and shipping requirements which are stated on all our purchase orders in our Standard Terms and Conditions:

1. The shipping container must be marked with the following information:
   1. AE part number (including alphanumeric revision level)
   2. Product description
   3. AE purchase order number
   4. Quantity of parts in that container
   5. Manufacturer's name and part number
   6. Country of Origin
   7. Date/Lot Code
   8. Moisture Sensitivity Level (if applicable)
   9. Indication of whether parts are RoHS Compliant
   10. Indication of whether parts are ESD sensitive
   11. Indication of whether parts are HAZMAT
   12. Box number (i.e., box 1 of 3)
   13. All wood packaging materials (pallets, crates, dunnage, etc) shall undergo either fumigation or heat treatment, in-compliance with the International Standard on Phyto-sanitary-15 (ISPM15) requirement to prevent the spread and introduction of pests of plant products.

2. All international shipments for AE must be accompanied by a Commercial Invoice. Commercial Invoices must include the following information:
   1. Invoice number
   2. Invoice date
   3. Seller's and Manufacturer's address must include a postal code
   4. AE Purchase Order Number, for each part number shipped
   5. AE Part Number, for each part shipped
   6. Product Description, for each part number shipped -the description should match the description of the AE Purchase Order
   7. Product Size, including net weight, for each part number shipped
   8. Quantity of each part number shipped
   9. Gross Weight
   10. Unit Price, including currency (note: must match AE's P.O. price)
   11. Country of Origin, for each part number shipped
   12. Harmonized Tariff Schedule (HTS) code, for each part number (note: please use the HTS provided on AE's purchase order)
   13. Export Control Classification Number (ECCN) or Dual Use Code (if applicable)

3. In addition to the items listed above, please be aware that there are regulatory requirements for ocean shipments to the United States. If your company is supplying goods to any AE location in the U.S. via ocean freight, you will be required to submit details in advance of shipment in order for AE to comply with the Importer Security Filing (ISF) Requirements from U.S. Customs and Border Protection. Much of the required information will be available from the Commercial Invoice.
   The requirements for ISF include:
   1. Invoice number(s)
   2. Manufacturer's name and address
   3. Seller's name and address
   4. Container Stuffing location
   5. Harmonized Tariff Schedule Code for each part number
   6. Country of Origin, for each part number
4. Supply chain security is a priority to AE, and suppliers are required to meet the minimum-security criteria of Authorized Economic Operators (AEO) and/or Customs Trade Partners Against Terrorism (C-TPAT).
   Minimum-security is criteria includes but is not limited to:
   1. Processes for notifying customers and the authorities in the case of a security incident
   2. Investigating and documenting shipment overages, shortages, and suspicious contents
   3. Having a secure information technology network
   4. Ensuring products and materials are held in a safe and secure environment
   5. Prohibiting the use of forced, child, or indentured labor in your facilities, and throughout your supply chain
   6. Ensuring all packaging materials and containers used to transport products are clean and debris free
   7. Usage of International Standards Organization {ISO) Publicly Available Speciation (PAS) 17712 seal on ocean containers
   8. Having a supply chain security training program for employees and contractors
   9. Adherence to the AE Supplier Code of Conduct (https://www.advancedenergy.com/about­-us/supplier-code-of-conduct/)
5. All shipments must follow the AE routing guide published by our AE logistics team. Following the routing guide will ensure not only that the correct billing of freight will occur but also the correct broker and notify party will be used.

6. If you received tooling from AE or any affiliate at no cost, please inform GlobalTradeCompliance@aei.com prior to shipment of goods, and we will follow up with the requirements for proper reporting.

Please take a few moments to review your shipping practices and commercial documents to ensure that your company is accurately marking containers and providing complete invoices. Failure to comply results in delayed payment processing and may result in issuance of a warning letter and possible remedial actions, including disqualification.

If you should have any questions regarding these requirements, please feel free to contact the Purchasing Department.

Sincerely,

Erin Tannock

Director, Global Trade & Counsel

October 1, 2021

Dear Advanced Energy Vendors:

It is that time of year again to start planning for Advanced Energy's yearly physical count activity for AE owned stock located at vendor sites.

Over the course of 2021, Advanced Energy has reviewed its processes for this physical count activity, and we have determined that due to less working days and year-end activities in the month of December that we would move our yearly count activities to be managed over the course of the month of November.

Due to this change Advanced Energy felt it necessary to provide you our vendors notification in October to assist you in planning for this upcoming necessary count activity.

You should see requests asking for counts in your locations starting the first week of November and ask that you please have necessary inventory count feedback returned no later than the second week in November. This will assist with any reconciliation activities necessary for us to meet a goal of posting all our vendor counts prior to end of month.

We appreciate your attention and support during this very critical activity.

Sincerely,

CHARLIE JIMENEZ

Manager, Worldwide Inventory Control

Dear Advanced Energy Supplier Partners,

SNC forecast recovered!

Please kindly go to SNC - Forecast page to get the latest forecast every Monday.

Thanks.