Supplier Terms & Conditions Agreement

Rev. A Release Date 3/23/18

General: Sac EDM & Waterjet operates under a Quality Management System compliant with AS9100:2016 Rev D. As a supplier to Sac EDM & Waterjet, it is understood that by acceptance of a Sac EDM & Waterjet Purchase Order (PO), your organization agrees to meet the requirements listed below. In this document, "supplier” refers to the company or entity Sac EDM & Waterjet contracts with, via a PO, to provide raw materials, products, or services that impact Sac EDM & Waterjet’ ability to meet its customer’s requirements.

1. By accepting a PO, a supplier commits to meet Sac EDM & Waterjet’s requirements contained therein, including:

• The use of approved products, services, sub-suppliers, methods, processes, and equipment

• Criteria for testing, inspection, and verification to occur prior to product release

• Any special requirements, critical items, or key characteristics

• The need to provide test specimens, data, certificates of conformity, material certificates, or other evidence that Sac EDM & Waterjet’s requirements have been met

• Delivery of product on or before the stated required date

2. In some cases, requirements in addition to those stated on the PO will be communicated via drawings or CAD data.

3. In cases where changes to a process, product, service, sub-supplier, or location may impact the supplier’s ability to meet Sac EDM & Waterjet’s requirements, the supplier must notify an appropriate representative of Sac EDM & Waterjet, in advance of making the change.

4. Sac EDM & Waterjet expects 100% on time delivery. If the required by date on a PO cannot be met, the supplier must notify Sac EDM & Waterjet’s Supply Chain Manager in advance.

5. Sac EDM & Waterjet monitors supplier performance monthly and determines a Supplier Performance Score.

6. Suppliers who do not maintain a Supplier Performance Score of >90% may be removed from Sac EDM & Waterjet’s Approved Supplier List.

7. Suppliers must notify Sac EDM & Waterjet of nonconforming products detected both before and after product acceptance. Disposal methods of nonconforming products must be approved by Sac EDM & Waterjet.

8. Sac EDM & Waterjet will notify suppliers in the event that nonconforming product is detected after product acceptance. Depending on the severity and scope of the nonconformity, Sac EDM & Waterjet may issue a formal Corrective Action Request to the supplier of nonconforming product.

9. Suppliers are responsible for taking all necessary steps to prevent the introduction of counterfeit parts to the supply chain. Specific requests for product traceability, or the requirement for material/conformity certificates will be specified via PO.

10. When Sac EDM & Waterjet intends to perform verification/validation activities at the supplier’s premises, this will be communicated to the supplier in advance.

11. Suppliers must flow down Sac EDM & Waterjet requirements (including Sac EDM & Waterjet’s customer requirements) to their supply chain as applicable.

12. Suppliers are responsible for ensuring that its personnel are competent and aware of how they contribute to the compliance with these terms, including, but not limited to:

• Their contribution to product or service conformity;

• Their contribution to product safety;

• The importance of ethical behavior

13. Suppliers are expected to retain and maintain appropriate records of the activities listed above. The records must remain legible, readily identifiable and retrievable for a minimum of five (5) years after product acceptance. In cases where the duration of retention is increased (e.g. at the request of Sac EDM & Waterjet’s customer), specific instructions will be provided on the PO.

14. Sac EDM & Waterjet, its customer, and regulatory authorities retain the right of access to all applicable facilities and records related to products or services provided by the supplier.