Symbolic Displays, Inc. (SDI) Quality Clauses

Symbolic Displays Inc.	QUALITY CLAUSES FOR PURCHASED MATERIALS

	Issued by: QA	Eff. Date: 07/01/11	Revision: L	QP-06-01-F01

The following Quality Assurance Provisions with their terms and conditions become an integral part of the Purchase Order to the extent specified in the Purchase Order. These provisions supplement, but do not supersede the presently existing terms and conditions of the Purchase Order. The Seller will include in each shipment, in addition to the Packing Sheet, objective evidence of quality demonstrating compliance with applicable specifications. Military Specification and standards listed herein shall be for reference only.

1. QUALITY SYSTEM REQUIREMENTS

The Seller shall maintain a quality system that is acceptable to the Buyer’s Quality Department. The buyer reserves the right to audit the Seller’s quality system. When specified, the latest revision of the following standards is herby made a part of this order:
(A) ISO9001
(B) AS9100

2. WORKMANSHIP STANDARD

The material on this Purchase Order shall be uniform in quality and condition, sound and free from foreign materials and imperfections detrimental to the usage of the product. The product must be of an overall quality consistent with good industry practices and adhere to requested PO requirements without deviation.

3. DELETED

4. SYMBOLIC DISPLAYS, INC. SOURCE INSPECTION

When specified on the purchase order:
At the option of SDI, all items covered by this Purchase Order are subject to surveillance and inspection by an SDI Inspector at the point of manufacture. This will include surveillance of the products, and seller’s systems, procedures and facilities. The Seller shall furnish at no cost, the necessary facilities and equipment, and perform tests as required by SDI Source Inspector, to demonstrate conformance to the Purchase Order and referenced documents. Final acceptance of Source inspected material will be at SDI. The Seller shall provide sufficient advance notice to SDI to permit scheduling of Source Inspection. Evidence of Source Inspection shall accompany each shipment.

5. SYMBOLIC DISPLAYS, INC. IN-PROCESS INSPECTION

When specified on the purchase order:
In addition to the requirements of SDI inspection, all items covered by this Purchase Order are subject to in-process inspection by a SDI Quality Assurance Representative. Prior to the application of epoxy materials, hermetic sealing, or any permanent closure, the Supplier will notify the cognizant Buyer within adequate time for In-process Source Inspection coverage. Evidence of in-process inspection will accompany each shipment.

6.     INSPECTION AND/OR PRODUCTION TOOLING

       When specified on the purchase order:
       Seller is held responsible for the protection, calibration, and care, other than normal wear, of all production and inspection
       tooling and equipment furnished by SDI, for use in performance of Purchase Order requirements. All tooling shall be subject to
       SDI surveillance and/or inspection upon notice. Said tooling, or replacement tooling of equal quality, shall be returned in an
       acceptable condition upon demand or notice.

7.     FIRST ARTICLE INSPECTION

       When specified on the purchase order:
       Inspection and acceptance by SDI, of a first article manufactured against the Purchase Order is required prior to the start of
       fabrication. This first article report shall, as a minimum, include the part nomenclature, Purchase Order and shipping document,
       number, drawing or specification dimension, (Electrical value, etc.) with tolerance and the actual measurement of demonstrate
       compliance with all specification requirements. First Articles must conform to AS9102 and all requirements of this Purchase
       Order and referenced documents, and shall be submitted for inspection and functional approval.

8.     GOVERNMENT SOURCE INSPECTION

When specified on the purchase order:
(A)   On receipt of this order, promptly furnish a copy to the Government Representative who normally services your plant, or, if
       none, to the nearest Army, Navy, Air Force, or Defense Supply Agency inspection office. In the event the representative or
       office cannot be located, notify our Purchasing Agent immediately.

(B)   During performance on this order, your quality control or inspection system and manufacturing processes are subject to
       review, verification, and analysis by authorized government representatives. Government inspection or release of product
       prior to shipment is not required unless you are otherwise notified. You shall provide a copy of this order to your
       Government representative upon his request.

9.     SPECIAL PROCESSING REPORT

       Reports of all special processes and inspection methods, such as welding, heat treating, brazing, plating, painting, x-ray,
       magnetic particle inspection, fluorescent penetrant inspection, etc. that demonstrate compliance with all applicable
       specifications as referenced by the SDI drawing and/or Purchase Order. This shall be accomplished by an approved
       source using approved equipment and personnel.

10.   CERTIFIED TEST DATA

       Certified test data on stationery of the organization performing the testing shall be supplied with each shipment. The test data
       shall be signed and dated.

11.   WELDER’S STAMP

       A Certified Welder’s Stamp must appear on all items welded in accordance with Government Specifications MIL-W-8604, MIL-
       W-8611, and/or MIL-T-5021.

12. PHYSICAL AND CHEMICAL ANALYSIS

Mill or foundry physical and chemical test reports or stated, signed, and dated, “a true copy” thereof (photographic), which demonstrates conformance to all applicable specifications for all metals used in the fabrication of the ordered material, shall be supplied with each shipment.

13. RECORD RETENTION

Test reports, inspection records, and other verifiable documentation for quality and procurement, which indicate conformance to all applicable specifications, are maintained at the point of manufacture. These documents are available for review by the Buyer and/or the Government and, unless otherwise specified by purchase order or contract, documents shall be held for a minimum of ten (10) years after completion of order.

14. NOTICE OF REJECTION

Resubmittal of previously rejected parts or parts from a lot rejected on the basis of sampling inspection, shall be accompanied by the statement “Resubmittal lot” on the Supplier’s Shipping Document.

15. IDENTIFICATION

The Seller shall be responsible for legibly and permanently identifying each part with the following information:
(A)   Rubber cure date (cure date required) --
       Seller’s shipper and /or packing sheet must specify curing date. Packages and containers (and parts when required by
       SDI drawing call out) must be marked with curing date, as applicable. Cure date age at time of receipt by the Buyer shall
       not exceed four quarters. Rubber material or parts not having sufficient space for marking, will be identified by a tag,
       bearing the cure date and attached to the part or part container.

(B) Materials with a limited shelf shall reflect the Manufacturing (Cure Date) and Expiration Date on the container (e.g. epoxies,
paint, etc.). A minimum of nine (9) months product life shall remain on items delivered.

16. PACKAGING REQUIREMENTS

The Seller shall assure that the materials, parts, assemblies, products and supplies on the Purchase Order are packaged as noted below:

(A) In general, packing and packaging will conform to MIL-P-116D, Method III, “Packaged for Mechanical and Physical Protection only” and be subject to review by SDI or best commercial practices. All items shall be free of dirt, fingerprints, loose particles, oil, moisture and other foreign materials. Items shall be enclosed with wrappings, bags, cartons, boxes, or other containers, as applicable, to the extent necessary to provide protection from hazards of contamination and physical damage encountered in general handling, shipping, and storage. Material in direct contact with metal surfaces will not cause or promote corrosion.

       All packaging material used for packing and packaging items purchased by and shipped to SDI shall be new, in good condition,
       and of a grade, size and weight consistent with item(s) packaging needs. Packaging materials used shall be non-abrasive,
       chemically neutral (pH 6.5 to 7.5) and have a water-soluble acidity of not more than 0.02% equivalent sulfur trioxide.

(B) Physical protection to items packaged shall be accomplished by the use of cushioning (dry and dust free), bracing or blocking, as applicable, in accordance with good commercial practices to prevent rupture of flexible barriers, free movement within rigid or semi-rigid containers, and physical damage due to shock and/or vibration.

(C) Specified identification markings and/or bar coding shall be clear and legible, and applied on all outside containers as well as on all intermediate containers or wraps, as applicable, and indicate as a minimum: SDI part number, Purchase Order number,
Fragile, any special handling, quantity shipped, etc.

17. CERTIFICATE OF CONFORMANCE REQUIREMENT

A Certificate of Conformance (C of C) shall accompany shipment from the supplier attesting that the item(s) shipped are in compliance with all purchase order and applicable specification(s) requirements therein/ thereof. The C of C shall state that all inspection and/or test results documenting the Item(s) compliance to the purchase order are available for examination by the purchaser, government and /or Federal Aviation Administration representative(s) upon request. This shall include any sub-contractor(s) documentation. The C of C must be signed by the suppliers authorized representative. Direct reference to the buyer’s purchase order, line item, part number and item revision level and the quality must be present on the C of C.

18. CALIBRATION OF ACCEPTANCE EQUIPMENT

The Supplier shall implement and maintain a system for the control and maintenance of measuring and test equipment that is in accordance with ANSI/NCSL Z540-1 or equivalent. The Calibration System shall be documented, accountable, traceable, and provide for initial and re-calibration during the life of the equipment. The equipment shall be calibrated to standards that are traceable the National Institute of Standards and Technology (NIST).

19. MATERIAL REVIEW BOARD AUTHORITY

Seller Material Review Board (MRB) authority is not authorized on this purchase order. Any non-conformance to the purchase order, drawing, specifications, or other applicable documents must be submitted to the buyer, through the buyer’s quality organization, for the buyer’s MRB approval prior to shipment. The supplier’s request for MRB approval must identify the “root cause” of the nonconformance(s) and describe the implemented corrective action taken by the supplier. Parts scrapped at the supplier’s facility which are identified with an SDI part number, cage code or other SDI trade marks/symbols are required to be mutilated beyond use prior to disposal.

20. DELEGATED SOURCE

When specified on the purchase order:
The suppliers SDI assigned “Certified Suppliers Representative” (CSR) shall stamp and include the applicable supplied SDI Operation Sheet with the shipment to SDI. The CSR certified by the application of the certified stamp to the Operation Sheet sequence applicable, the item(s) compliance to the purchase order is available for examination by SDI upon request. This shall include all supporting and subcontractor documentation. Supplier generated “stamp(s)” shall be first approved and recorded by SDI quality prior to their use.

21. RIGHT OF ENTRY

The Purchaser, the Customer, the Government and/or Regulatory Agencies (FAA, DCASPRO, NAVPRO, etc.) reserves the right of entry to the Seller’s facility to review the Quality System, records, and to inspect all product defined in this purchasing document at all stages of production. The Purchaser’s Procurement group shall in all cases, coordinate such auditing.

22. SPECIALTY METALS (DFARS 252.225-7014)

The supplier shall certify that items being delivered conform to DFARS 252.225.7014 (Deviation 2008-00002) and its Alternate I (Deviation 2008-00002), requirements for compliance of Specialty Metals.

23. RoHS COMPLIANCE

When specified on the purchase order:
The supplier shall certify that items being delivered conform to the EU RoHS directive. The EU RoHS directive, also know as the “lead–free” directive, identifies six materials that must be virtually eliminated from a great deal of electronic equipment before it's shipped into the EU after 1 July 2006. These materials include Lead (Pb), Hexavalent Chromium (Chromium IV), Cadmium, Mercury, Polybrominated Biphenyls (PBBs), and Polybrominated Diphenyl Ethers (PBDEs).

24. EXECUTIVE ORDER (EO) 13224

The supplier shall adhere to the directions provided in Executive Order 13224 on Terrorist Financing – blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism. Effective 09/24/2001 and any subsequent changes made to it. The supplier further agrees to include this requirement in lower-tier subcontracts.

25. MATERIAL SHELF LIFE

Materials with a limited shelf life shall be supplied with an accompanying effective date of manufacture and date of expiration. At the time of receipt at Symbolic Displays, the material shall have at least 75% of the shelf life remaining.

NOTE: Quality Clauses 26 thru 41 are reserved for future use.

Symbolic Displays, Inc. (SDI) Quality Clauses

QUALITY CLAUSES FOR PURCHASED MATERIALS

QP-06-01-F01