Supplier Purchase Order Terms and Conditions

Effective May 3, 2007
1. Approval Requirement STC 1. Certificate of Compliance - Provide a Certificate of Compliance with each shipment, indicating conformance to requirements. STC 2. Certificate of Analysis - Provide a Certificate of Analysis for each shipment showing the chemical and/or physical ranges and the applicable specification. STC 3. Inspection Report - Provide an Inspection report with each shipment, detailing each characteristic inspected and the actual inspection results. STC 4a. Special Processes - Lucas Industries approval of Supplier Procedures is required prior to commencement of PO. Approval is based on successfully completing the attached questionnaire. STC 4b. Special Processes - Lucas Industries approval of Supplier Procedures is required prior to commencement of PO. Approval is based a successfully completed site evaluation by Lucas Industries. STC 5. Acceptance - Final inspection and acceptance shall be at destination. Any prior inspection shall not relieve Supplier of its obligation to furnish all work in accordance with requirements of this PO. STC 6. First Article Inspection (FAI) - A first article inspection report is required at the supplier facility. The supplier shall notify Lucas Industries a minimum of five (5) days prior to date material will be available for inspection. It is Lucas Industries' intention that this activity be limited to a single visit. (If, after the 1st article has been approved, the supplier changes the method of production, Lucas Industries shall be notified of these changes in order to determine if a new first article inspection is required.) 2. Personnel Qualification STC 7a. Control of Personnel Qualifications - Personnel qualification is required by submitting a current certification to Lucas Industries prior to commencement of PO. STC 7b. Control of Personnel Qualifications - Personnel qualification is required by submitting evidence of first tier approval to Lucas Industries prior to commencement of PO. STC 7c. Control of Personnel Qualifications - Personnel qualification is required by submitting a completed test report and test sample to Lucas Industries prior to commencement of PO. 3. Quality Management Requirement STC 8a. Supplier certification/compliance to quality management standard is required. Supplier must submit evidence of ISO9001:2000 compliance to Lucas Industries prior to commencement of PO. STC 8b. Supplier certification/compliance to quality management standard is required. Supplier must submit evidence of AS9100B compliance to Lucas Industries prior to commencement of PO. 4. Design and Inspection Instructions STC 9. Delegation of Design-Design shall be performed per Lucas Industries instructions. Supplier shall submit the completed design to Lucas Industries for approval prior to commencement of fabrication of the item. STC 10. Lucas Industries Source Inspection - Source Inspection is required prior to shipment. STC 11. Government Source Inspection - Government Source Inspection is required prior to shipment. STC 12. Customer Source Inspection - Customer Source Inspection is required prior to shipment. 5. Test Requirements STC 13. Test Report - Provide a Test Report with each shipment detailing the tests performed and the actual test results. 6. Non-conforming Product STC 14. Non-Conforming Product - Supplier shall maintain control of nonconforming material. Supplier must notify Lucas Industries of any nonconforming material. Material must not be shipped to Lucas Industries until written Lucas Industries approval is obtained. 7. Changes STC 15. Changes to Product or Process - Supplier must notify Lucas Industries of any changes to the product, process, or facility location. Lucas Industries written approval of such changes is required. Products must continue to conform to existing specifications. STC 16. Quality System - Notify Buyer immediately should a change occur in your quality system (loss of Registration, Certification, or Qualification.) 8. Right of Access STC 17. Lucas Industries (including Lucas Industries customer and regulatory authority) has right of access to Supplier and sub-tier facilities and all applicable records. 9. Flow Down Requirements STC 18. The supplier must flow down to sub-tier suppliers all applicable PO requirements. Supplier is responsible for assuring that that materials received from sub-tier sources are conforming. STC 19. Government Flow-Down Clauses - Comply with the required FAR clause/s contained on the attached document. 10. Sub-contracting Services STC 20. This order cannot be assigned, transferred or subcontracted without express written consent of Lucas Industries. STC 21. Customer approval special process sources are required. See P. O. for reference.