Document No.: FN-PUR-023
Revision No.: 2

1. ACCEPTANCE
    By accepting this Purchase Order as a Supplier to TOWAM SDN. BHD. (hereinafter     called “TOWAM”), you agree to comply with the additional terms and conditions     listed below with respect to any product or services provided to TOWAM.

2. CONTROL OF DRAWINGS & SPECIFICATIONS
    The Supplier shall ensure that the drawings and specifications are the relevant     revision status specified on the Purchase Order. The Supplier shall comply with any     special requirements requested by TOWAM.

3. QUALITY/INSPECTION SYSTEM
    Supplier shall maintain a quality/inspection system that will ensure all goods and     services conform to contract requirements whether manufactured or processed by     Supplier or procured from Sub-Tier Suppliers.

4. REPORTING DISCREPANCIES
    Discrepancies, omissions, and the need for clarifications or interpretations of any     nature encountered by Supplier in respect of furnished drawings or engineering     data will be brought to the attention of TOWAM for resolution.

5. CALIBRATION SYSTEM
    All Inspection Measuring & Test Equipment used by the Supplier during in-process     and final inspection to make a compliance evaluation shall be calibrated to the ISO     17025 standard.

6. SPECIAL PROCESSES
    Supplier shall provide support documents for all special processes and     nondestructive test results performed with each shipment. Supplier used shall be a     TOWAM and/or Customer approved source for said Processes. These include     operations subject to process controls such as: surface treatment, heat treatment,     welding, etc. The Supplier shall be approved as per above to perform specific     required Special Processes, or use Special Process vendors acceptable to TOWAM     and TOWAM’s customer.

7. MATERIAL SUBSTITUTION / PRODUCT DISCONTINUANCE
    Unauthorized material substitutions are not permitted without TOWAM’S written     consent. TOWAM must be notified of all product discontinuance and product     changes. TOWAM must receive all product discontinuance notifications (EOL or     Obsolescence) a minimum of 6 months prior to the last time buy date.

8. CHANGES IN PROCESS, PRODUCT OR LOCATION
    Supplier shall notify TOWAM of intended or actual changes that may affect the     quality of delivered goods and services. This includes: Changes to the Quality     Management System, the Manufacturing Line, Facility Location, Processes, or     Natural Disasters. Quality data and/or approved design data to be available in the     English language.

9. WORKMANSHIP QUALITY
    Manufactured product shall be free from burrs, and sharp edges. Cosmetic issues     caused by manufacturing or special processes must be identified. Supplier is     responsible for the cost of product damaged due to mishandling by the supplier.

10. LIMITED SHELF LIFE ITEMS
    Materials with limited shelf life shall indicate the date of manufacture, lot number     and applicable specification on the container.

11. CERTIFICATE OF CONFORMANCE
    Suppliers acceptance of TOWAM’S Purchase Order certifies that the materials and     processes supplied under the Purchase Order shall be or have been controlled and     inspected in accordance with TOWAM’S Purchase Order and they meet the specified     order requirements, referenced specifications and drawings.

12. CHANGES
    The Buyer may by way of a written order make changes to the quantities, drawings,     designs, specifications, method of shipping, packing and/or place of delivery. Any     increase or decrease in the costs or time for performance shall be quoted by the     Seller within 7 working days of receipt by the Seller of the notification of change.

13. NONCONFORMING PRODUCTS AND MATERIAL
    Supplier shall obtain TOWAM prior written approval with respect to the disposition     of any nonconforming products or materials supplied, that does not meet     engineering drawing or documents under contract or Purchase Order. In the event     that nonconforming materials are present, and the materials are deemed acceptable     or useable by the Supplier, it is still the responsibility of the Supplier to inform     TOWAM so that a determination can be made for the use of said materials. TOWAM     has the right to reject parts and withhold payment if non-conforming parts are     shipped without notification. Supplier is responsible for the total cost of product     rejected due to non-conformance by the supplier. When a nonconformance is     determined to exist, or is suspected to exist on goods and/or services already     provided to TOWAM under Purchase Order Contract, Supplier shall provide written     Post Delivery Notification Letter or Letter of Disclosure within 2 working days.

14. RIGHT OF ACCESS
    TOWAM, its customers, and regulatory authorities shall be granted the right of     access to all Supplier and sub-tier Supplier facilities and records involved in fulfilling     the Purchase Order conformance with the requirements.

15. RECORD RETENTION
    Supplier shall maintain records of inspections, tests, and process controls called for     by the contract or Purchase Order. Unless specified elsewhere in contracts,     customer flow down requirements or attachments, these documents shall be on file,     stored and protected in such a manner that they remain legible readily identifiable,     and readily available to TOWAM for 5 years.

16. COUNTERFEIT PARTS
    The Supplier shall certify that only new and authentic materials are used in     products or goods delivered to TOWAM and that the products/goods delivered     contain no Counterfeit Parts.

17. FOREIGN OBJECT DEBRIS/DAMAGE
    Supplier is required to establish and maintain a Foreign Object Debris/Damage     (FOD) prevention program that employs appropriate housekeeping practices to     assure timely detection and removal of residue/debris generated, during operations     and normal daily tasks. Parts supplied shall be free from oil, grease or any other     FOD unless part requires said oil in order to avoid corrosion.

18. SUPPLIER CORRECTIVE ACTION
    Supplier shall, on request, provide statements of corrective action on     nonconformities or failures of Suppliers goods or services.

19. PRODUCT SAFETY
    a. The complete TOWAM Purchase Order Number must appear on all invoices,         packing list, labels and correspondence.
    b. The part number, revision, manufacturer, manufacturer’s part number and         quantity must be on the packing list and packaging accompanying the parts and         must match the PO exactly.
    c.  Any marking on the product or packaging must be legible.

20. PACKAGING AND HANDLING
    As a minimum, the Supplier shall package all material in a manner that will ensure     protection against corrosion, oxidation, deterioration and physical damage during     shipment. If required, oil must be placed on certain material to prevent corrosion.     Electrostatic sensitive product shall be packed in an ESD protective bag. In addition,     when materials delivered are lot-controlled and multiple material lots are shipped     each lot shall be separately packaged and identified.

21. FLOW DOWN TO SUB-TIER SUPPLIERS
    Suppliers shall flow-down to Sub-tier Suppliers the applicable requirements as     required by the Purchase Order either specifically or by reference.

22. CONFIDENTIALITY & ETHICAL BEHAVIOUR
    Suppliers shall hold all information received from TOWAM in confidence and no     third-party request for information will be authorized unless approved, in writing, by     TOWAM. We expect our suppliers to comply per FN-PUR-019 (Non-Disclosure     Agreement).

23. CODE AND CONDUCT
    TOWAM is committed to upholding high standards of ethics, integrity and     corporate social responsibility in our business operations. In part, this is     demonstrated through our membership in the Responsible Business Alliance (RBA)     to ensure working conditions in the electronics supply chain are safe, that workers     are treated with respect and dignity and that business operations are     environmentally responsible.

    We expect our suppliers to comply with TOWAM Supplier Code of Conduct as above.

24. AWARENESS
    TOWAM suppliers are responsible for ensuring that its personnel are aware of their     contribution to product or service conformity, product safety and importance of     ethical behavior. Suppliers will support product safety by ensuring standard     practices and adhering to requirements of critical items, key characteristics and     special requirements. Suppliers must be committed to high standards of ethics and     business conduct by complying with all regulations and policies.

DEFINITIONS

Counterfeit Product means an unauthorised copy, imitation, substitute, or modified part (such as but not limited to material, part or component), which is misrepresented as a specified genuine part of an original or authorized manufacture.

Foreign Object Debris/Damage means a substance, debris or article alien to the Product which would potentially cause damage(Foreign Object Damage ) being any damage attributed to a foreign object that can be expressed in physical or economic terms that may or may not degrade the product's required safety and/or performance characteristics.

Product(s) means all goods and/or services detailed on the Purchase Order.

Purchase Order means the purchase order sent by TOWAM to the Supplier by e-mail, facsimile or mail or delivered by hand and any listed attachments including but not limited to TOWAM Terms and Conditions of Purchase and these Terms and Conditions of Purchase for Aerospace Product which together make up the contract between TOWAM and the Supplier.

Quality Records means any and all documentation that provide objective quality evidence including but not limited to documentation accompanying the Product, raw material process certification, material certification, shelf-life certificate, special process certification, test reports, certificate of conformity, inspection and test documentation, statistical documentation, process control documentation results of production process verification and any other quality assurance document as reasonably requested by TOWAM.

Sub-tier Supplier means any entity that supplies materials, parts, components or services to the Supplier for use in the Products.

Supplier means the person or company on whom the Purchase Order is placed.

Refer TERMS AND CONDITIONS OF PURCHASE