TERMS AND CONDITIONS

The following terms, conditions, and clauses make up a part of all Purchase Orders by Babeco Fabrication and Machining.

As a key supplier to our operations you are required to fulfill all applicable terms. Please contact Babeco Fabrication and Machining Purchasing or Quality Assurance if you have any questions.

Right to Enter - Babeco Fabrication and Machining, our customers, and all applicable regulatory agencies have the right to enter the supplier's facility to review all processes and records that relate to any Babeco Fabrication and Machining order previously processed or currently in process. Entry will be with appropriate prior notification and to planned and agreed upon arrangements.

Certificate of Conformance / Certificate of Test Required - Conformance records showing that each product/service listed on the associated PO, attachments, process lists, etc. meet all agreed upon requirements. Where appropriate a separate C of C should be prepared for each individual line item. Electronic submission is the desired method of providing such quality documents.

Quality - Supplier shall maintain a quality management system that is acceptable and appropriate for the items supplied hereunder and shall comply with general industry standards. Items supplied shall meet the requirements of the applicable technical specifications and documentation (drawings, specifications, standards, etc.). Supplier must be an approved vendor by Babeco's Quality System.

Traceability - All suppliers must maintain conformance and traceability records regarding the product or service provided to Babeco Fabrication and Machining for a period of seven years or as otherwise stated in the PO contract. Records exceeding the retention period, or specifically identified as retention not necessary may be discarded by the suppliers' standard method. Records need not be returned unless requested in writing by Babeco Fabrication and Machining.

Personnel - All personnel must have proper training for the jobs they are performing that meet the industry standards.

Special Processes - All special processes required by this PO must be performed by qualified personnel, pre-approved processes, approved chemistry, and/or materials. Special processes may include welding, plating, painting, heat treat, etc. (list not inclusive).

Contract Review - Any differences between what is listed on the PO and related documents and what is provided by the supplier must be clearly identified, communicated and approved by Babeco Fabrication and Machining Quality Assurance prior to return shipment to Babeco Fabrication and Machining.

MRB Authority - Suppliers are not, under any circumstance, granted MRB authority. Customer provided documents and designs or documents and data provided by Babeco Fabrication and Machining shall not be altered, changed, or revised without prior written approval of Babeco Fabrication and Machining Quality Assurance, our customers, or appropriate regulatory agency.

Notice of Nonconforming Product – Risk Assessment - Detection of a nonconforming product regarding any order (currently in work or previously shipped) must be promptly communicated to Babeco Fabrication and Machining Quality Assurance for a risk assessment.

DFAR Compliance - All specialty metals shall be compliant with DFAR 252.225-7014 unless specifically authorized in writing to provide materials from alternate sources. Authorization must come from Babeco Fabrication and Machining Quality Assurance, be in writing, and provided before delivery of product to our facility.

Outsource of Processes - Babeco Fabrication and Machining Quality Assurance shall be notified and approval provided prior to outsource of any work to sub-tier suppliers. If any order approved for outsource to your suppliers, all applicable requirements and specifications must be communicated (including all applicable key characteristics) to each sub-tier supplier used.

If you have any questions, please send your inquiry to cody_m@babecoinc.com or call (512) 352-5355.