Terms and Conditions

THE FOLLOWING GENERAL TERMS AND CONDITIONS (GTC)
APPLY TO ALL PURCHASE ORDERS AND CONTRACTS,
UNLESS OTHERWISE NOTED. SPECIFIC COMPAC QUALITY
REQUIREMENTS CDCQR CLAUSES APPLY WHEN CIRCLED
AND STAMPED.		 Date Revision:
8/1/04 Rev A

GTC RIGHT OF ENTRY. THE BUYER AND BUYERS CUSTOMER, AND THEIR CUSTOMERS, OR ANY APPLICABLE REGULATROY AGENCY WILL HAVE THE RIGHT TO ENTER THE SELLERS FACILITY TO PERFORM INSPECTION OR ENSURE COMPLIANCE TO THE REQUIREMENTS OF THIS ORDER.

GTC ACCEPTANCE OF THIS ORDER, OR THE INITIATING OF ANY PROCESS, OR THE FURNISHING OF ANY PRODUCT, OR THE ACCEPTANCE OF PAYMENT, CONSTITUTES UNCONDITIONAL ACCEPTANCE BY THE SELLER.

GTC AMENDMENTS TO THIS ORDER, OR COMPAC TERMS AND CONDITIONS, SHALL BE SET FORTH IN WRITING, VIA PURCHASE ORDER CHANGE NOTICE, AND/OR REVISIONS TO THE PURCHASE ORDER TERMS AND CONDITIOINS. COMPAC DEVELOPMENT CORP. WILL CONSIDER SELLERS REQUEST TO MODIFICATION OF, OR EXCEPTION TO, ONLY IF SUCH REQUEST IS MADE IN WRITING, PRIOR TO THE ACCEPTANCE OF THE ORDER (REF. ACCEPTANCE CLAUSE)

GTC PRICE AS STATED ON THIS ORDER COVERS ALL GOODS AND SERVICES TO BE PROVIDED BY
THE SELLER AS SPECIFIED IN THE ORDER. THESE PRICES ALSO COVER ALL CHARGES FOR
PACKAGING AND CONTAINERS, BUT NOT TRANSPORTATION, UNLESS SPECIFICALLY
DEPICTED OTHERWISE ON THE FACE OF THE ORDER.

GTC SHIPMENT OF GOODS AND SERVICES UNDER THIS ORDER SHALL BE F.O.B. SELLER SHALL
FOLLOW BUYERS INSTRUCTIONS REGARDING METHOD OF SHIPMENT, EXCEPT WHERE
BUYER HAS SO STATED ON THE FACE OF THE ORDER.

GTC SCHEDULE FOR DELIVERY WILL BE THE RESPONSIBILITY OF THE SELLER. THE SELLER SHALL NOT BE HELD LIABLE FOR DAMAGES IN RESPECT TO DELIVERY DELAY DUE TO CAUSES BEYOND SELLERS REASONABLE CONTROL. HOWEVER, IF THE SELLER DOES NOT MEET THE DELIVERY DATE AS DEPICTED ON THE FACE OF THE ORDER, THE BUYER MAY APPROVE A REVISED DELIVERY SCHEDULE, OR TERMINATE THE ORDER WITHOUT LIABILITY FOR SUCH TERMINATION.

GTC PACKAGING AND PROTECTION OF THE PRODUCT SHIPPED SHALL BE IN ACCORDANCE WITH COMPAC DEVELOPMENT CORP. OR BEST COMMERCIAL PRACTICE TO PROTECT FROM DAMAGE AND/OR DETERIORATION.

GTC CANCELLATION SHALL REMAIN THE RIGHT OF THE BUYER AND CAN BE INITIATED AT ANY TIME.

GTC QUALITY ASSURANCE. The supplier shall comply with the Compac Development Corp. requirements as specified by the Compac Development Corp. Survey. Supplier agrees to implement and maintain the Quality System during the performance of this contract. An authorized Certificate of Conformance is required with each shipment. Where special process approval is required for a prime contractor process specification, seller shall provide evidence of such approval upon request from Compac Development Corp. Process suppliers shall furnish a complete Certificate of Conformance with each shipment indicating the P.O. number, specification number and revision, name of supplier and quantities accepted and rejected. General or specific (part number) NDT approval numbers shall be referenced on process certifications and/or certificates of conformance. Material suppliers shall furnish chemical/physical test reports with each shipment identifying the applicable specification and revision, actual chemical composition and physical properties, melt, heat, batch, or lot. Additional Compac Development Corp. Requirements (CDCQR clauses) apply when referenced by P.O. The supplier is not authorized to perform Material Review action of nonconforming material. (Note: This clause does not apply to contracts for Compac Development Corp. non-deliverable goods or services).

GTC DOMESTIC MATERIAL: Only certified domestic materials will be accepted without prior written authorization.

CDCQR 1 The supplier and supplier subcontractors shall implement a Quality System in compliance with ANSI/ASQC.

CDCQR 2 The supplier and supplier subcontractors shall implement a Quality System in compliance with SAE AS 9100.

CDCQR 3 The supplier and supplier subcontractors shall meet and maintain a Calibration System in compliance with Calibration System Requirements of ISO10012 and ANSI Z540-1.

CDCQR 4 Compac Development Corp. Inspection and/or Customer Verification is required at supplier facility prior to shipment. Compac Development Corp. will place an Inspection Stamp on the supplier shipper to indicate Compac Development Corp/ acceptance. Contact Compac Development Corp. at least 48 hours prior to shipment from supplier facility.

CDCQR 5 Government Source Inspection is required at supplier facility prior to shipment. Supplier shall contact Compac Development Corp. and applicable Government Representative to arrange for Government acceptance prior to shipment from supplier facility.

CDCQR 6 The supplier shall perform and document a complete First Article Inspection Report (FAIR) including 100% of B/P or specification requirements. One copy of supplier FAIR will be furnished to Compac Development Corp. along with the first shipment for this P.O./Contract.

CDCQR 7 The supplier shall identify and provide a Material Data Sheet for known Hazardous Materials relevant to this P.O./Contract and product shipped to Compac Development Corp.

CDCQR 8 The supplier shall implement and maintain a Key Characteristics (KC) and Advanced Quality System program Acceptable to Compac Development Corp. control charts, control plans and Cpk targets shall be reviewed and approved by Compac Development Corp. prior to supplier manufacturing.

CDCQR 9 The supplier shall comply with the Compac Development Corp. Special Quality Requirement as follows:
(As defined by Compac Development Corp.)


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