Purchasing – Additional Conditions of Purchase - Quality

The following conditions apply to all Alpal Inc. purchase orders for raw material and services (material testing, calibration and/or processing) as noted.

1.0   QUALITY CONTROL

1.1  Quality System Requirements:  The suppliers Quality Control System shall comply with, as a minimum, Aerospace Standard SAE AS9003, Inspection and Test Quality System.

1.2  Right of Entry:  Acceptance of this purchase order grants the right of access by Alpal Precision Machining Co. Inc., their customer(s) and regulatory authorities to all facilities involved in the order and all applicable quality records.

1.3  Record Retention:  Unless otherwise specified, quality records, documentation and certifications shall be maintained on file for a minimum of ten (10) years after completion and payment of each purchase order.

1.4  Notification of Nonconformance:  The supplier shall notify, in writing, any nonconformance encountered during the execution of Purchase Order requirements.  The supplier shall quarantine nonconforming product and await Alpal Inc. instructions for disposition.

1.5  Requirement for Acceptance:  All services and supplies are subject to acceptance after Alpal’s inspection or testing.

1.6  Subcontracting and Requirement Flow Down:  Alpal Inc. suppliers shall not subcontract any tests or process without written approval from Alpal Inc.

1.7  Product Safety: Seller must maintain the state of the product so that it is able to perform to its designed or intended purpose without causing unacceptable risk of harm to a person or damage to property

1.8  Ethical Behavior: Seller must maintain and implement an ethics behavior program appropriate for its business throughout the performance of this contract.

1.9  Product or Service Conformity: Seller must ensure that personnel are aware of their contribution to product or service conformity and have the appropriate skills and experience to handle and process the product or service throughout the performance of this contract.

2.0   NON-DESTRUCTIVE TESTING AND SPECIAL PROCESSING

2.1       Certificate of Conformance (C of C):  A Certificate of Conformance listing all tests and processes performed        referencing the applicable specification(s) and revision must be supplied with each lot of parts tested and/or    processed.

2.2       Prime Contractor Identification:  When required, the name of the Alpal Inc. customer for items being             processed is noted on the purchase order.  Customer specific requirements shall be complied with as             additionally specified on the purchase order.

2.3       Government/Industry Specification Controlled Special Processing:  All Processing preformed in accordance      per government/industry specifications (e.g. MIL, AMS, MIL-STD, SAE, etc) shall be in accordance with the     current or superseded revision unless otherwise specified.

3.0   RAW MATERIAL, CASTINGS, FORGINGS & EXTRUSIONS

3.1       Certificate of Conformance:  A Certificate of Conformance referencing the applicable specification(s) and      revision(s) must be supplied with each shipment

3.2       Original Mill Reports:  Original mill or foundry chemical/physical analysis and mechanical test reports for              material used to fulfill the order must be maintained on file.  Heat lot numbers must be traceable to the             supplied material.  A copy of the original test data shall be supplied with each shipment.

3.3       Country of Origin:  All raw material, castings, forgings and extrusions must be of American content material            or meet applicable FAR requirements..