PURCHASE ORDER QUALITY TERMS AND CONDITIONS All suppliers must comply with the basic Quality Clauses. Additional Quality clauses shall be noted on the Purchase Order as Required.

Manufacturers and Suppliers must meet the following as the minimum requirements.

QC 1 Suppliers must furnish inspection report, certificate of conformance and as applicable material and processing certifications for the parts they submit.

QC 2 Documented first article inspection reports shall be submitted to AEI Quality prior to the beginning of production. The supplier assumes all financial responsibility for replacement, rework and material when production of parts is begun without first article inspection approval from quality.

QC 3 Any delay in shipment for any reason has to be conveyed to AEI Quality as soon as the delay is known by the supplier.

QC 4 Any change to the contract requirements by the supplier must be approved by AEI in writing.

QC 5 All information in the contract must be held in confidence by the supplier and no third pary requests for information shall be authorized unless instructed in writing by an AEI representative.

QC 6 In addition to our right of entry, the supplier agrees to right of entry for our customers or regulatory agencies to all facilities and records in the performance of this contract.

QC 7 Manufacturers must have a Quality system in compliance to AS9003, AS9100 "B", or ISO9001:2000.

QC 8 Subcontractors are required to notify Quality prior to transferring any work to a new facility. AEI shall determine prior to the transfer if subcontractor may perform the transfer of work.

QC 9 Supplier must notify in writing AEI Engineering/Quality of any nonconforming product.

QC 10 Supplier must receive approval in writing to ship any nonconforming materials.

QC 11 Requirements for the supplier to flow down to sub-tier suppliers the applicable requirements in the purchasing documents, including key characteristics where required.

QC 12 Requirements for the supplier to comply with Executive Order E13224. Supplier shall not engage in any transaction of any type with persons or businesses or organizations who commit, threaten to commit or support terrorism.

For Processing suppliers, the following are the minimum requirements.

QC 13 Processing suppliers must furnish processing certifications to the purchase order requirements, and shall not process any parts for which they are not certificated or approved. After 01-01-05 NADCAP / and or specification owner approval is required.

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For Material suppliers, the following are the minimum requirements.

QC 14 Material suppliers must furnish material certifications to the purchase order requirements, and shall not supply material for which they are not certificated or approved.

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