Terms and Conditions

*PLEASE UTILIZE THE FOLLOWING CHECKLIST TO MEET MINIMUM PRIME SITE FLOWDOWN REQUIREMENTS (IN ADDITION TO STANDARD PO REQUIRMENTS) WHEN END CUSTOMER IS BOEING OR BELL HELICOPTER.

1. ENGINEERING DRWG AND REV______

2. AIRCRAFT MODEL NUMBER ____________

3. DESTINATION OR PRIME SITE/DESIGN AUTHORITY _____________

4. PROCESS SPEC AND REV________________

5. MATL TYPE/COND/HEAT/LOT/BATCH WHEN APP________________________

6. SERIAL NUMBERS WHEN APP_________________

7. BELL PO NUMBER WHEN APP_________________

8. COMPLETE BELL PARTS LIST/NOTES/ECO’s WHEN APP___________

9. BELL FROZEN PLANNING AND PART CLASS WHEN APP_____________

10. THE ABOVE ARE MINIMUM FLOWDOWN REQUIREMENTS PER BOEING AND BELL HELICOPTER AND MUST APPEAR ON YOUR PURCHASE ORDER (PO) IN ORDER TO PROCESS YOUR ORDER.

*PLEASE REVIEW THE FOLLOWING PROVISIONS PRIOR TO PURCHASE ORDER ISSUANCE TO MAGNETIC INSPECTION LABORATORY, INC. MAGNETIC INSPECTION LABORATORY, INC HEREIN AFTER REFERRED TO AS MIL.

11. MIL SHALL NOT BE HELD LIABLE FOR PARTS NOTED TO HAVE ARRIVED AT MIL UNDER DISCREPANT CONDITIONS WHICH INCLUDES BUT IS NOT LIMITED TO INSUFFICIENT PACKAGING, OR DAMAGE INCURRED DURING SHIPMENT.

12. MIL SHALL NOT COUNT UNSERIALIZED ORDERS WITH QUANTITIES TOTALING OVER 100 PIECES. IF QUANTITY OVER 100 IS TO BE VERIFIED ON UNSERIALIZED PARTS, AN ADDITIONAL MINIMUM CHARGE OF $75 SHALL APPLY. THIS MUST BE STATED ON PURCHASE ORDER.

13. MIL SHALL NOT BE HELD LIABLE FOR DISCREPANT QUANTITIES OVER 100 RECEIVED AT CUSTOMER FACILITY UNLESS THE ABOVE PROVISION (#12) HAS BEEN INVOKED ON PURCHASE ORDER.

14. UNLESS OTHERWISE SPECIFIED, MIL WILL PERFORM INCIDENTAL VISUAL INSPECTION ON INCOMING ORDERS. MIL RESERVES THE RIGHT TO PERFORM TIGHTENED/ENHANCED INSPECTION AT AN ADDITIONAL CHARGE ON PARTS FOUND TO BE NON-CONFORMING UPON RECEIPT AT MIL.

15. MIL SHALL NOT BE HELD RESPONSIBLE IF PARTS ARE FOUND TO BE NON-CONFORMING UPON RECEIPT AT MIL AND CUSTOMER HAS BEEN NOTIFIED.

16. MIL SHALL PROVIDE COATINGS AND CHEMICAL PROCESSING SERVICES ON PRODUCT WHICH HAVE BEEN MASKED, PRE-TREATED, OR PROCESSED IE CHEM FILM, ANODIZE, PHOSPHATED, PLATED, ETC AT ANOTHER FACILITY OR VENDOR ON A BEST EFFORT BASIS ONLY, AND SHALL NOT BE HELD LIABLE FOR SUBSEQUENT NON-CONFORMING CONDITION.

17. MIL RESERVES THE RIGHT TO RECEIVE PAYMENT FOR RE-WORK SERVICES PROVIDED ON PARTS THAT HAVE BEEN PROCESSED AT ANOTHER FACILITY OR VENDOR, DESPITE SUCCESS OR FAILURE OF REWORK.

18. UNLESS OTHERWISE AGREED UPON, PARTS AWAITING CUSTOMER DISPOSITION CAN BE HELD AT MIL FOR UP TO 10 WORKING DAYS. PARTS MAY BE HELD LONGER THAN 10 DAYS AT AN ADDITIONAL CHARGE.

19. PARTS TO BE PRIMED/PAINTED/DFL’d MAY BE SUBJECT TO 7-DAY (OR MORE) CURE IAW SPECIFICATION REQUIRMENTS.

20. PLEASE ALLOW DELIVERY TIME TO MEET FULL COMPLIANCE WITH SPECIFICATION REQUIREMENTS, OR PROVIDE FLOW-DOWN WAIVER FROM COGNIZANT ENGINEERING OR DESIGN AUTHORITY.

21. CUSTOMERS THAT DO NOT HAVE DESIGN AUTHORITY OR REPRESENT THE COGNIZANT ENGINEERING AUTHORITY ARE NOT AUTHORIZED TO WAIVE SPECIFICATION REQUIREMENTS. THIS INCLUDES BUT IS NOT LIMITED TO HUMIDITY TESTS, ADHESION TESTING, SALT FOG/SPRAY TESTING, ETC. MIL SHALL ONLY RECOGNIZE WRITTEN WAIVERS FLOWED DOWN FROM THE DESIGN AUTHORITY OR REPRESENTATION OF THE COGNIZANT ENGINEERING AUTHORITY.

22. ON-TIME DELIVERY MEASUREMENT SHALL BEGIN FOLLOWING RECEIPT OF ALL REQUIRED DOCUMENATION AND ACCEPTANCE OF PART CONDITION AS RECEIVED FOR PROCESSING. PARTS SHALL BE CONSIDERED ACCEPTABLE IF THEY ARE FREE FROM DAMAGE, QUANTITY DISCREPANCY OR IF DOCUMENTATION OF CONSENT TO PROCESS WITH DAMAGE IS PROVIDED BY THE CUSTOMER.

23. UNLESS OTHERWISE SPECIFIED, MIL WILL RE-PACKAGE USING ORIGINAL MATERIALS RECEIVED FROM CUSTOMER. HOWEVER, THERE WILL BE A CHARGE IF ADDITIONAL OR SPECIAL PACKAGING IS REQUIRED.

24. UNLESS OTHERWISE AGREED UPON, MIL SHALL NOT BE HELD LIABLE FOR DAMAGE TO SPECIAL PACKAGING WHILE ON MIL PREMISIS.

25. WHEN PARTS ARE RECEIVED BY CUSTOMER AND DISCREPANT PACKAGING IS NOTED, IMMEDIATE PHOTO DOCUMENTATION OF AS RECEIVED CONDITION IS REQUIRED.

26. MIL WILL NOT ACCEPT FINANCIAL RESPONSIBILITY FOR PARTS FOUND BY THE CUSTOMER TO BE NON-CONFORMING, UNLESS A CLEAR AND CONCISE CORRECTIVE ACTION REPORT IS PROVIDED BY THE CUSTOMER, ACCEPTED BY MIL, AND FOLLOWING INVESTIGATION IT IS FOUND THAT THE CAUSAL CONDITION(S) AROSE AT MIL OR DUE TO MIL. ACCEPTANCE OF THE CORRECTIVE ACTION REPORT WILL BE GIVEN ONLY IF CORRELATED DIRECTLY TO A PO PROCESSED AT MIL, A DETAILED DESCRIPTION OF THE PROBLEM IS PROVIDED, AND THE QUANTITY OF PARTS EXHIBITING NON-CONFORMING CONDITION IS NOTED. ADDITIONALLY, DISCREPANT PARTS MUST BE MADE AVAILABLE FOR MIL EVALUATION. IF DISCREPANT PARTS ARE NOT AVAILABLE FOR RETURN TO MIL, CLEAR, HIGH-RESOLUTION PHOTOS OF THE DISCREPANT CONDITION MUST BE MADE AVAILABLE.

27. UNLESS OTHERWISE AGREED UPON, MIL WILL NOT ACCEPT FINANCIAL RESPONSIBILITY FOR DISCREPANT PARTS THAT HAVE BEEN SUBJECT TO SUBSEQUENT PROCESSING AFTER LEAVING MIL PREMISIS. THIS INCLUDES BUT IS NOT LIMITED TO INSTALLATION OF HARDWARE, THERMAL TREATMENTS, IMPRESSION STAMPING, AND MACHINING PROCESSES.

28. FOLLOWING CAUSAL INVESTIGATION AND UPON FINDING THAT NON-CONFORMING CONDITIONS AROSE AT MIL, MIL SHALL PROVIDE COMPENSATION IN THE AMOUNT OF EITHER ADMINISTRATIVE FEES OR REPAIR/REPLACEMENT COSTS BUT SHALL NOT PROVIDE COMPENSATION FOR BOTH. ADMINISTRATIVE FEE COMPENSATION PROVIDED BY MIL SHALL NOT EXCEED $250. DETERMINATION AND AGREEMENT ON FINANCIAL COMPENSATION SHALL BE PERFORMED ON A CASE BY CASE BASIS FOLLOWING CAUSAL INVESTIGATION AND WHICH SHALL BE MUTUALLY AGREED UPON BY BOTH PARTIES.

29. FOLLOWING CAUSAL INVESTIGATION AND UPON FINDING THAT NON-CONFORMING CONDITIONS AROSE AT MIL, MIL SHALL PROVIDE COMPENSATION FOR PARTS DEEMED BY CUSTOMER TO BE ‘SCRAP’ PER THE ABOVE STATED LIMITATIONS, HOWEVER MIL SHALL BE GIVEN OWNERSHIP OF SAID PARTS.

30. PARTS PROCESSED AT MIL ARE SUBJECT TO A WARRANTY OF CONFORMANCE FOR 10 CALENDERS DAYS UNDER NORMAL CONDITIONS AFTER LEAVING MIL PREMISIS. NORMAL CONDITIONS INCLUDE BUT ARE NOT LIMITED TO INDOOR STORAGE AT CONTROLLED TEMPERATURES AND MINIMAL SUBSEQUENT HANDLING.

31. THERE WILL BE A $5 PER BOX HANDLING CHARGE FOR ALL ORDERS SHIPPED TO CUSTOMER VIA FED-EX OR UPS.

32. NO CHARGE FOR HAZARDOUS WASTE

33. NO CHARGE FOR CERTIFICATION, HOWEVER IF CUSTOMER REQUIRES DEVIATION FROM ISSUANCE OF ORIGINAL CERTIFICATION, AN ADDITIONAL MINIMUM CHARGE OF $50 MAY APPLY.

34. PURCHASE ORDER REQUISITION OF QUOTED PART NUMBERS IS ACCEPTANCE OF PROVISIONS CONTAINED HEREIN.

35. PURCHASE ORDER REQUISITION FOLLOWING RECEIPT OF THE ABOVE STATED PROVISIONS IS CONTRACTUAL AGREEMENT TO TERMS AND CONDITIONS STATED HEREIN.

PLEASE CALL ME TO DISCUSS IF YOU HAVE ANY QUESTIONS AFTER YOUR REVIEW.

THANKS,

DON BERG