Doc. ID:  PRU-SERV

Modified 03/16/2005

Modern Industries Inc.

Servicing 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; When applicable.

c.      As to any product or service obsolesence at least 180-days in advance of such obsolesence.  Notification must include reason for obsolesence, last time buy date, and specifications and pricing for alternative products or services recommended to replace obsoleted product or service

2.     A written quote must be submitted and approved by the MII Purchasing Agent prior to work being performed.

3.     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; When applicable.

4.    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.

      At a minimum the supplier shall have in place a documented system that addresses the following areas.

            ·     Calibration of Inspection and Test Equipment

            ·     Contract Review

            ·     Control of Customer Supplied Material

            ·     Control of Quality Records

            ·     Written Work Instructions

b.   Return parts, prints, documents and gages in the same containers as received unless otherwise directed in writing from MII.

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

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

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

f.     Furnish certifications identifying processes performed.  Certifications shall provide current specification level, items such as but not limited to thickness, hardness, results, or special process perimeters with each shipment.

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.

END