Low Volume Non-Standard Shipments Packaging Requirements Faraday & Futures Inc. Logistics REV. 1.0 Aug 10, 2016 © Copyright 2016 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 1 Agreement and/or exempt from FOIA disclosure.

1. INTRODUCTION 3 This guide advises Faraday & Future (FF) suppliers of low volume non standardized packaging requirements for the shipment of components to FF destination(s). These packaging standards apply for low volume production phases. Please contact your FF Logistics Packaging Engineer should you have any questions. Our aim is to ensure quality is maintained, damage is minimized and have packaging that is both acceptable and adaptable to local market conditions. The guidelines provided in this manual should, if adhered to, aid in safe delivery of low volume and less-than-truck load shipments (LTL). LTL shipments need to withstand serious drops, impacts, and crushing. Heavy use of dunnage such as bubble wrap as well as using a strong corrugated container can alleviate damage to parts. Damaged parts lead to added time and costs for both the supplier and FF. Remember, the responsibility for ensuring component quality from your plant to the point of use remains with you - the supplier of the product. If a component requires unique packaging (odd dimensions, material requirements, and specific critical requirements) FF Packaging Engineers can assist with the design, testing, and implementation of the packaging solution. When situations like this arise, contact FF Packaging to obtain additional details. © Copyright 2015 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 3

2. DO & DO NOT DO NOT: Use thin wall box if the part is heavy. DO NOT: Leave empty space when adding dunnage to a container. Empty space allows parts to move with the box. DO NOT: Allow your product quality to be compromised due to inadequate packaging - zero defect is the norm. If weight is an issue, suppliers are required to increase the packaging strength requirements to ensure quality. DO: Choose the box with appropriate wall thickness depending on the weight of the parts. DO: Completely wrap the part with dunnage via bubble wrap or protective foam. Take care to heavily wrap sharp areas of parts. DO: Use cushioning materials to stop parts from moving within the box. DO: Ensure that sufficient tape is used to hold the container together. DO NOT: DO: © Copyright 2015 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 5

3. Consequences of Improper Packaging The box is not strong enough to handle the parts in the box. There’re already some examples of bad packaging received in the warehouse. The pictures below were two damaged boxes we received previously. The wall of the box was too thin, which led to the tear of the box edge during transportation. The bottom flap of this carton was damaged because the thin single wall was not capable to protect the parts during handling; lack of enough dunnage in the box made the situation worse. © Copyright 2015 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 5

3. Consequences of Improper Packaging Another example of bad packaging is not enough dunnage inside the carton. Due to the low volume of beta parts being shipped, parts would be loosely packed in the box if there is not enough dunnage. Here are some boxes we received without enough dunnage. Critical part penetrated the box due to the lack of bubble wrap on the cap. In the worst scenario, parts would travel and get damaged during handling. © Copyright 2015 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 5

4. Additional References Carriers like FedEx and UPS already provided some guidelines of how to prepare and pack a good shipment. Check the links below to find additional packaging references: FedEx General Packaging Guidelines http://images.fedex.com/us/services/pdf/packaging/GrlPkgGuidelines_fxcom.pdf FedEx Automotive and Mechanical Parts Packaging Guidelines http://www.fedex.com/us/packaging/guides/Automotive_fxcom.pdf UPS Packaging Guidelines https://www.ups.com/content/us/en/resources/ship/packaging/guidelines.html © Copyright 2015 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 5

© Copyright 2016 Faraday & Future Inc. All rights reserved © Copyright 2016 Faraday & Future Inc. All rights reserved. Proprietary and confidential business information subject to and disclosed under applicable Non-disclosure 1 Agreement and/or exempt from FOIA disclosure.