QUALITY CLAUSE Purchase Order Flow Down Supplier Quality Assurance Provisions Quality Requirements The scope of the Supplier’s efforts includes the following as defined in the purchase order: Articles identified in the purchase order are subject to the applicable supplier quality assurance provisions contained herein. Essentium, Inc. will list top-level drawings and specifications in the applicable purchase. The Supplier will deliver Products conforming to applicable specifications (i.e., drawings, specification sheets, etc.) and which are free of all Defects. Upon request, the Supplier will make available to Buyer all Product test data relating to qualification as well as production yield of evidence of conformance to specifications and quality control. All Products will be subject to inspection and approval by the buyer. Buyer will have the right to inspect the Products at any time during the manufacturing process at Supplier’s facilities or elsewhere provided buyer gives reasonable advance notice of each visit, and such visit does not disrupt the manufacturing capability of a supplier or violate supplier’s safety or clean room procedures. Buyer may, at its option, reject and return any Products which contain Defective material or workmanship, or which do not conform to this Purchase Order, applicable drawings, specifications, or samples. Rejected Products which Buyer returns to supplier and replacement or repaired Products which are returned to the buyer shall be returned at the Supplier’s risk and expense. The Buyer may, at its option, use a reasonable sampling plan. Lots that fail to pass such sampling plans may, at the Buyer’s option, be inspected 100% at the Supplier’s reasonable cost. The Buyer may return any defective or non-conforming articles or lots of Supplier at Supplier’s risk and expense. Exercise of these remedies shall not be exclusive of or without prejudice to any other remedies provided in law or equity which are available to the Buyer. Payment for any Products or services will not constitute final acceptance. If the Product is rejected, the Supplier agrees to supply the Buyer with a return material authorization number (including replacement Product if requested by the Buyer) and initial failure analysis and a containment plan within twenty-four (24) hours of Supplier’s receipt of notification. Supplier further agrees to provide the Buyer with full failure analysis and corrective action responsive within seven (7) days of notification. The Supplier agrees to provide failure analysis and corrective action in the Buyer’s requested format. If replacement Product is found to be non-conforming or Delivery of replacement Product is not fulfilled as required Buyer may, at its option, cancel the related Purchase Order in whole or part, without penalty or liability whatsoever to Buyer or Buyer may avail itself of any remedy set forth herein or according to applicable law. The date code limitation for all inbound components will be twenty-four (24) months from the date of manufacture. The Supplier is acting under Essentium, Inc. quality system, and all corrective actions requested by Essentium, Inc. are to be implemented. THe following procedures are required: A) Quality System with quality manual (or top-level document). A copy of the Supplier’s quality manual (or top-level document) is to be submitted for approval by Essentiu, Inc. The Supplier’s quality system is subject to surveillance by representatives of Essentium, Inc. and the Department of Defense. B) Design Data, Configuration Control. The Supplier will not implement any changes to process, Essentium, Inc. drawings or specifications or materials without written approval from Essentium, Inc. C) Manufacturing Data. The Supplier will maintain a batch or lot identification system that distinguishes one lot from another by use of (as applicable); shop travelers, routers, etc. D) Test and Inspections (Including Incoming) with records showing evidence of conformity. The Supplier will perform a First Article Inspection (FAI) to verify that the part conforms to the approved data and any additional purchase order requirements, including, if necessary, destructive testing. A FAI should be conducted fro any new production line, changes to the manufacturing/quality process such as drawing revision or delta change, or a new supplier. E) Identification and Traceability. Material and methods used must be identified, including any outside processing, and be traceable by the record to the purchase order imposed drawings and specifications. Records will be maintained. F) Competence and Training. The Supplier will maintain a system where personnel performing work affecting conformity to product requirements will be competent based on appropriate education, training, skills, and experience. Appropriate records will be maintained. G) Calibration, traceable to a national standard. The Supplier will maintain a calibration system in compliance with either ANSI/NCSL Z540, ISO 10012, ISO/IEC17025. Obsolete specifications such as MIL-STD-45662A will be considered acceptable. H) Handling, Storage (Segregation), and Packaging, including shelf-life and scrap items. The Supplier will use good commercial practices for the preservation and packaging of items supplied to Essentium, Inc. Limited-life materials will be identified by either 1) the date at which the useful life has begun [DOM]; or, 2) the date the useful life will be expended [expiration date], and, have at least 75% of their shelf life remaining at the time of Essentium, Inc. receipt. I) Record Completion and Retention. Completed, legible documentation supporting the requirements of the purchase order will be maintained on file for a minimum of ten (10) years. This document will include, but not limited to, material certifications, manufacturing and inspection reports, and test reports. J) Nonconformities. The Supplier is responsible for establishing controls to ensure that products/services not conforming to the purchase order are identified, segregated, dispositioned, and controlled to prevent inadvertent use. K) Conformity Document. The Supplier will provide a Manufacturer’s Certificate of Conformance (C of C) document, including any raw material or process certificates, as acceptable proof of conformity with each shipment. The C of C, signed by an authorized individual, certifies that all product or services have met the requirements of the purchase order, including drawings and specifications at the prescribed revision level of the product and shall inlcude: Company’s name and address Date of certifcation Essentium, Inc.’s purchase order number Essentium, Inc.’s part number and revision (as it appears on the contract) Part description Quantity Applicable material and test specifications and revision identification Raw material lot number (if applicable) Reference to Test Reports for all raw material, traceable by batch/lot number identification of exceptions (these would include a deviation or waiver, if applicable) It’s the Supplier’s responsibility to review test reports and C of C’s of sub-tier purchased material or services. L) Provisions for Direct Delivery/Direct Shipment. Not applicable. M) Assistance for Continued Airworthiness. The Supplier will immediately notify Essentium, Inc. of non-conforming items that have left the Supplier’s quality system, and, contain, investigate for root cause and implement corrective action. O) Significant Change to the Quality/Inspection System. The Supplier will notify Essentium, Inc. in the writing of any adverse change in the status of its quality control system, including any location or transfer of supplier manufacturing operations, which may affect the quality of supply. P) Failures, Malfunctions, and Defects. The Supplier must provide a disclosure notification letter to Essentium, Inc. in the event of any failure, malfunction, or defect, which would affect previously delivered products. Q) Access for the Department of Defense and Essentium, Inc. reserves the right of access for Essentium, Inc.’s customer/Government/Regulatory Authorities (when accompanied by Essentium, Inc.) to all facilities and all relevant records involved in the purchase order. R) Language. All working documents, such as the quality manual and technical/quality data, must be in the English language and retrievable in a form acceptable to the Department of Defense. S) Identification of Responsibilities. The Supplier’s contract review personnel are responsible for flowing the SQAP to and through the Supplier’s organization. T) Duration of the Supplier Arrangement. The purchase order and this SQAP.