Modern Industries Inc

1. Supplier shall notify Modern Industries’ (MII) 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. MII 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. Ensure all communications and correspondences with United Technologies Corporation (UTC) are conducted through Modern Industries’ Purchasing and or Quality Department.

b. Meet all Aerospace Quality Requirements set forth by UTC.

þ HSM17 Supplier Product-Release Programs (Random Audit Process & Authorization To Release)

þ ASQR-01 Supplier Quality System Requirements

þ ASQR-07.5 Control of Software

þ ASQR-08.2 First Article Inspection

þ ASQR-09.1 Flight Safety Parts Program

þ ASQR-15.1 Handling, Storage, Packaging, Preservation & Delivery

þ ASQR-20.1 Supplier Sampling Requirements

þ ASQR-01 Form 4 Quality Verification Checklist

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.

þ Calibration of Inspection and Test Equipment

þ Contract Review

þ Control of Customer Supplied Material

þ Control of Nonconforming Product

þ Control of Quality Records

þ Control of Raw Material

þ Corrective Action

þ Final Inspection

þ Internal Audit Program

þ Provision for the Prevention, Detection and Removal of foreign Objects

þ Receiving Inspection

þ Written Work Instructions

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

c. Not subcontract items listed on the PO without MII’s written approval.

d. Not change or modify without MII’s written approval operations, process, manufacturing location or inspection techniques that have been identified as being Fixed, Frozen or Significant.

e. Ensure Customer Approved Vendors are utilized for ALL special processes.

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

g. Maintain ALL Quality Records in accordance with UTC ASQR-01 sec 4.4.1 or forward ALL Quality Records to MII with shipment.

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

i. 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.

j. Provide SPC process charts when “Key Characteristics” are identified with a Key, Ckey or Mkey.

5. Part(s) must meet customer drawing, specifications and current revision level.

a. As Required by HSM17 Paragraph 5.7.5 Supplier shall not ship production castings or forgings to Hamilton Sundstrand or another Hamilton Sundstrand supplier (Modern Industries) without having a written FAI approval from Hamilton Sundstrand Procurement Quality Assurance (PQA). Modern Industries requires this written approval to be forwarded with each First Article per sec 5.b. of this document.

b. Provide First Article Inspection Report (FAI) for each new part number, revision level, new lot and or annually. FAI shall be performed in accordance with SAE AS 9102.

c. Each shipment shall be accompanied with a Certificate of Conformance (MII-FRM-00111), ASQR-01 Form 4, Material Certification, Certification for each Special Process performed and Detailed Inspection Report (DIP) with corresponding “Bubbled Print”.

d. Qualified Personnel shall complete inspection and tests as applicable and in accordance with ASQR-01 Sec 6.1.

6. 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.

7. 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.

Fabrication of UTC Products Purchase Order Quality Requirements

END