Doc. ID:  PRU-MRO

Modified 12/18/2003

Modern Industries Inc.

MRO Purchase Order Notes

1.                   Supplier shall notify MII’s Purchasing Department when;

a.                    The PO price and supplier’s quoted price are different, no price on the PO or are unable to comply with all PO and Quality Requirements.  Non-Compliance may render the product unfit for use.

b.                    Any non-conformance from the requirements of the drawing specification, delivery or purchase order requirements must be reported with cause and corrective action in writing.  All non-conformances shall be documented within shipping documents and individual parts specifically identified as non-conforming.

2.                   Modern Industries maintains a 3-day ship window on all shipments.  Any shipment arriving outside this window is subject to refusal of shipment and returned to supplier at the supplier’s expense.

3.                   Supplier shall;

a.                    Have a Quality System compliant to ISO9001:2000 or ASE AS9100 Rev A and Calibration per ISO 10012-1 and ISO 10012-2 to the extent necessary to comply with requirements of this PO.

b.                    Control their sub-tiers and ensure all PO requirements are flowed down.

c.                    Maintain All Quality Records for a minimum of seven years or forward All Quality Records to MII with shipment.

d.                    When applicable; Maintain Test Specimens used for testing to assure process of product conformity as required by governing specification

e.                    Provide First Article Inspection Report for each new part number and new revision level.

f.                     Furnish Certificate of Conformance for each piece / lot shipped.

4.                   Part(s) must meet customer drawing, specifications and current revision level.  Certification for material and special processes will be required with each shipment.  Inspection and Tests shall be completed by Qualified Personnel as applicable

5.                   MII, its Customers and Regulatory Agencies reserve the right of access to the supplier’s premises to determine quality of work, records and material on parts and processes noted herein.

6.                   In the event of a failure including, but not limited to, form, fit or function; the supplier shall provide a written and detailed failure analysis with appropriate objective evidence upon request.

END