AUGER INDUSTRIES PURCHASE ORDER TERMS AND CONDITIONS
(P/U-101/3) Rev. A

Warranties. Seller warrants that all articles, materials and work will conform with applicable drawings, specifications, samples and / or other descriptions given to Seller, and will be free from defects. Without limitations of any rights which Buyer  may have at law by reason of any breach of warranty, goods which are not as warranted may, at any time be returned at Seller’s expense for either credit or replacement as Buyer may direct.

Material, Equipment and Insurance. Unless otherwise specified, Seller is to supply all material and equipment required to execute this order. Any material which Buyer may furnish on other than a charge basis will be no consignment, and Seller shall pay for such material spoiled by Seller, or not otherwise satisfactorily accounted for. All material and equipment furnished by Buyer shall be protected against loss or damage by insurance acceptable to Buyer.

Design. Buyer retains all rights in designs and drawings furnished to Seller in confidence in connection with this order and no such design or drawing shall without Buyer’s written permission, be incorporated in, or used in connection with goods supplied to others.

Inspection. All goods furnished hereunder shall be subject to inspection and test by Auger Ind.

Nonconforming Product. The Seller must notify Auger Ind. of any nonconforming product prior to shipment. Auger Ind. MRB will review nonconformance for acceptability or rejection.

Change in product. Seller to notify Auger Ind. of any changes in product and or process definition. Auger Ind. MRB will review nonconformance for acceptability or rejection.

Changes in Drawings or Specifications. Buyer reserves the right to make changes to the drawings and specifications related to this order. If any such change causes a substantial variation to the cost of furnishing the goods covered hereby, the price of such goods shall be varied in the same ratio. Any claim hereunder shall be asserted promptly.

Quality System. Seller’s quality system must meet the minimum requirements of MIL-I-54208A. seller to retain all quality records pertaining to this order for no less than 7 years unless previously agreed upon with Auger Ind.

Right of Access. Seller aggress that it’s plant, books and records so far as they relate to the performance and cost of this or related order, shall at all practical times be subject to review, inspection and audit buy Auger Ind. and or it’s customers and regulatory authorities.

Flow Down. Seller is to flow down the above requirements in purchasing documents to its sub-tier suppliers, including key characteristics when required.