As Supplier to CTI, it is understood that when accepting our purchase orders, your organization agrees to meet the following AS9100 stipulations/requirements. These requirements are to be considered Terms and Conditions to all purchase orders received. Any changes to these Terms and Conditions will be stated on the purchase order.

1. Where required the supplier shall use CTI approved products, services, equipment, and special process sources.

2. CTI is to be contacted by the supplier prior to product or services that may be deemed as nonconforming. Arrangements for approval of supplier nonconforming product/material/services must be as directed by CTI’s authorized Manager.

3. The supplier is to notify CTI of any changes to a product and/or processes, supplier location, subcontracted location, supplier’s

subcontractors, and to obtain approval from an authorized CTI Manager when applicable.

4. CTI, their customers, and regulatory authorities retain the right of access to all supplier/sub-tier supplier facilities, at any level of the supply chain, involved in the aerospace order and to all applicable records.

5. The AS9100 Standard requires that all applicable customer, regulatory or AS9100 to the latest revision requirements for the supplier

must flow-down to sub-tier suppliers (includes requirements in the purchasing documents and key characteristics where required). CTI must be notified if a sub-tier supplier is used in the production of the parts or conduct of service.

6. Supplier is aware of contribution to product and service conformity, contribution to product safety, and importance of ethical behavior throughout all processes.

7. CTI performs inspection activities to ensure that purchased product meets production requirements. They may include:

a. Receiving inspections (of supplier products/services/documents) may be/are performed by a designated employee. CTI

verifies the authenticity to the appropriate certificate of conformity, material certificate, etc., and other accompanying documentation by review and comparison (as appropriate) to the drawing and/or industry specifications or by other means. When necessary, CTI may inspect or audit at the suppliers facility.

b. Products are inspected to ensure they meet the requirements and the results are recorded (as appropriate). All special

processes where the compliance cannot be verified by inspections will require Certificate of Conformity.

8. When appropriate, CTI may delegate the inspection authority to one of its approved suppliers. CTI will communicate the inspection requirements (including approved monitoring and measurement equipment/methods) and will maintain a record of those approved to carry out such inspections.

9. When CTI or its customer intends to perform verification at the supplier’s premises, CTI will first state the intended verification arrangements and the method of product release or service commencement/completion. This information will be communicated on the CTI Purchase Order or via another acceptable purchasing agreement.

10. The CTI’s customer or customer’s representative will be afforded the right to verify at the suppliers premises that the subcontracted product conforms to specified requirements. Verification by the customer is not used by CTI as evidence of effective control of quality

by the supplier and shall not absolve CTI or its supplier of the responsibilities to provide acceptable product, nor shall it preclude subsequent rejection by the customer.

11. To prevent the purchase of counterfeit or suspect/unapproved products and to ensure product identification and traceability, CTI will institute controls that include the requirements of Material Certificates, Certificates of Conformity, and/or other supporting

documentation of process capability and traceability to recognize standards. These requirements may be specified on CTI Purchase

Order, Scope of Requirements & Validation or may otherwise be communicated to the supplier.

12. Records are required to be retained for 10 years and are available for review by customer and regulatory authorities in accordance with contract or regulatory requirements.

13. CTI expects 100% on time delivery. If the agreed upon delivery cannot be met, the appropriate CTI Manager must be notified in advance. If CTI annual supplier evaluation identities a supplier with an on time delivery rate of 90% or less, a corrective Action will be issued.

14. CTI may require specific actions where timely and/or effective corrective actions to a supplier issued are not achieved. These actions

may include but are not limited to any or all of the following:

a. Withholding payment until the issue is resolved

b. Removal of supplier from Approved Suppliers List

c. Legal Actions



Confidential Document