Turbine Technologies, Inc. (Turbine) Quality Terms and Conditions

1. QUALITY SYSTEM: Your facility shall maintain a quality management system that is in conformance with the latest version of Aerospace Standard AS9100. This system may be subject to audit by Turbine.

2. CALIBRATION SYSTEM: Your facility must maintain a calibration system that meets the requirements of ANSI-Z-540 – 1994.

3. SURVEILLANCE: By contract, Turbine customer representatives or representatives from regulatory agencies shall be granted right of-entry for the purpose of product or system verification. Your facility is expected to allow these representatives, for any reasonable request, access to your facility at all reasonable times. Your facility must allow access to any place or process necessary to determine and/or verify the quality, records and material of the contracted work under Turbine’s purchase order.

4. DISCREPANCIES: If during your manufacturing, receiving inspection or any type of processing (except for those processes designed to detect discrepancies) discrepancies to engineering drawing or contract instructions are noted, notify Turbine immediately. No deviation is to be considered approved for further processing without written communication from Turbine.

5. CORRECTIVE ACTION: Upon acceptance of this contract, your facility, as applicable, is obligated, upon request, to perform a root cause investigation and analysis to discrepancies caused by your processing or processes in your control and to provide corrective and preventive action plan on said discrepancies within a reasonable timeframe. The corrective measure is to be specific to the discrepant product, while the preventive measures are to preclude recurrence.

6. TURBINE SOURCE INSPECTION: The product in this contract may be subject to Turbine source inspection. When specified on the contract, when material is ready for inspection, or when practical, 3 days in advance thereof, notify Turbine. Your facility, to a reasonable degree, agrees to supply the necessary gaging, records, equipment personnel and facilities required in order for such source inspection to be accomplished. Source inspection does not preclude your facility from the responsibility of producing 100% acceptable product…source inspection is considered a preliminary step. Final inspection to be performed at Turbine.

7. CERTIFICATE OF COMPLIANCE: Your facility shall submit a statement certifying that the product was produced to intent of and conforms with the requirements of this contract. The certifying statement must be accompanied with an signature by an authorized individual from your facility. As required by contract and as part of your certifying statement, report physical and/or chemical properties.

8. COUNTERFEIT PARTS: Supplier agrees and shall ensure that only new and non-counterfeit parts, materials and components are used in products required to be delivered to buyer. No other parts, materials or components shall be used unless approved in advance in writing by Buyer. To further mitigate the possibility of the inadvertent use of counterfeit parts, materials or components, Supplier shall only purchase parts, materials and components directly from the Original Equipment Manufacturers (OEMs), directly through the OEM’s authorized distribution chain, or directly from Independent Distributors. If procured from Independent Distributors, Supplier shall make available to Buyer upon adequate OEM documentation in Buyer’s sole judgment that authenticates the traceability
of the parts, materials and components to the applicable OEM. If the required items cannot be procured from the above identified three sources, use of parts, materials or components product without appropriate traceability documentation from independent brokers or any other sources is not authorized unless first approved in writing by Buyer. Supplier must present full, complete and compelling support for its request and include in its request all actions to ensure that the parts, materials and components thus procured are legitimate and not counterfeit. Buyer may also request at any time a certification of traceability from the Supplier and/or Supplier’s sources.

9. INSPECTION DATA: When requested within the text of Turbine’s contract, copies of your inspection data must accompany each shipment or as otherwise directed.

10. FIRST ARTICLE INSPECTION: When specified on contract, your facility is required to perform a First Article Inspection to the requirements specified. Unless, otherwise authorized by Turbine, the First Article Inspection is to be done prior to the running production product.

11. PROCESS APPROVAL / OPERATOR QUALIFICATION: By acceptance of this contract your facility agrees that you hold the necessary Process Approvals to perform the processes specified. In addition, by acceptance of this contract, your facility ensures that only qualified personnel will perform “special processes”.

12. RIGHT OF ENTRY: By acceptance of this purchase order, you, as a vendor / supplier / service provider to TTI, agree to allow TTI, TTI’s customers, government representatives, and / or regulatory agencies the right of entry into your facility for the review of process records and quality systems records.

13. FLOW DOWN: All specifications and requirements flowed down by TTI purchase order must be referenced on your certification of compliance to TTI.

14. PROCESS CAPABILITY: By acceptance of TTI purchase order, you agree to only have product processed, material purchased, or service rendered by personnel qualified to do such.

15. STANDARDS OF CONDUCT: All external providers to TTI, must be aware of the importance of their contribution to product and service conformity, their contribution to product safety, `and the importance of ethical behavior, including consequences for their actions.