As Supplier to Cutting Technology, Inc.(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 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.  CTI approval of the nonconforming product disposition may be as follows:
a)    Use-as-is
b)    Rework
c)    Return
Returned nonconforming product is to be clearly marked as rejected/nonconforming.
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 facilities involved in the aerospace order and to all applicable records.  
5.    The AS9100 Standard requires that all applicable customer, regulatory or AS9100 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.    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.  
7.    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.
8.    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.  
9.    The CTI 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.
10.     To prevent the purchase or 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.  
11.    Records are to be available for review by customer and regulatory authorities in accordance with contract or regulatory requirements.  Records are to be maintained for 10 years.
12.    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’s annual supplier re-evaluation identities a supplier with an on time delivery rate of 80% or less, a Corrective Action will be issued.  
13.    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

Please sign and return to acknowledge acceptance of CTI’s Terms and Conditions

     Signature                                                                Date