Terms and Conditions of Purchase

Purchase Order Quality Requirements for Suppliers

Supplier and Plasidyne Engineering agree as follows:

By accepting the Purchase Order, the Supplier accepts the following requirements where identified on the Purchase Order:

1. The Supplier shall provide product in strict conformance in all ways to applicable Plasidyne Engineering specifications as identified on Plasidyne Engineering Inc.'s Purchase Order.

2. The Supplier shall, in the performance of this agreement, through the issuance of a Purchase Order(s), provide and maintain a quality system that is in conformance with the AS9100 Quality System Program.

3. QUALITY: Plasidyne Engineering shall have the right to inspect and test all material at source or destination before acceptance. Supplier hereby warrants that the material and workmanship of material delivered here under is of the quality specified, is free from all defects, and complies with the drawings, samples or other specifications if any, in all respects. If product is found defective, Plasidyne Engineering has the right to return product for full credit or rework product at the expense of the supplier. If product definition changes, the Supplier is required to notify Plasidyne Engineering in a timely manner.

4. The Supplier shall provide a Certificate of Compliance with each shipment against the Purchase Order. The certificate shall include as a minimum, the following information:

4.1 Supplier's name and address.

4.2 Date certification issued.

4.3 Plasidyne Engineering's Purchase Order number.

4.4 Governing specifications and/or drawing number and revision.

4.5 A statement of Quality certifying that all material used is in accordance with the applicable specification. All processes prescribed in the drawing or Purchase Order meet the applicable specification. All required inspections and/or tests, have been successfully performed.

4.6 Signature and title of an authorized company management representative.

5. PACKAGING AND SHIPPING: Supplier shall assure that Plasidyne Engineering's procured product receives the required cleaning, preservation, and special packaging as specified in the Purchase Order. When requirements are not specified, good commercial practices shall be observed to afford protection and preclude transit damage. Other shipping instructions are contained in the Purchase Order. Shipment documents shall be accompanied by the following documentation:

5.1 All documents and data required by the Purchase Order (e.g., certifications, test data, inspection data, test reports, airworthiness approval, etc.).

5.2 Identification of Purchase Order number, part number, part name, quantity, unit of measure and serial number, if applicable.

6. FAILURE ANALYSIS: When requested by Plasidyne Engineering, the Supplier shall perform a failure analysis and prepare a report providing, as a minimum, the following information:

6.1 The reject document identification number.

6.2 Description of failed items or components.

6.3 The cause of the failure.

6.4 The corrective action to prevent future rejects.

6.5 Effectively of the corrective action.

6.6 Purchase Order number.

The report shall be sent to Plasidyne Engineering's Purchasing Department. The report is due within 30 days following receipt of the failed product at Supplier's facility.

7. APPLICABLE LAW: Supplier shall comply with all local, State, and Federal laws and regulations affecting the price, production, sale or delivery of the material under this Purchase Order, or services performed.

8. DRAWINGS, PATTERNS, ETC.: All drawings, blueprints, tracings, patterns, samples, and the like, prepared by Supplier and paid for by Plasidyne Engineering, or furnished to Supplier by Plasidyne Engineering, and the information contained therein, are the property of Plasidyne Engineering, shall not be used by Supplier except to execute this Purchase Order, or except as authorized in writing by Plasidyne Engineering, and shall be delivered to Plasidyne Engineering promptly after completion or termination of this Purchase Order.

T&C -08 Rev. A

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Copyright by Plasidyne Engineering and Manufacturing, Inc. 2009