Purpose

The purpose of these Terms and Conditions is to define the quality, technical, regulatory, and business requirements for Cross Technology Inc. applicable to all approved suppliers providing products and services necessary to satisfy all customer requirements. Compliance with these requirements is mandatory for suppliers furnishing materials, components, special processing, assemblies, calibration, testing, or subcontracted services used in aerospace, defense, automotive, commercial, and industrial products.

Scope

These requirements apply to all purchase orders, contracts, agreements, and releases issued by Cross Technology Inc. to approved suppliers.

The supplier shall ensure all subcontractors and sub-tier suppliers performing work affecting product quality and comply with the requirements contained herein.

1. General Requirements

The supplier shall:

• Maintain a quality management system with adherence to strict regulatory and environmental controls appropriate to the products or services provided.
• Maintain compliance with applicable AS9100, ISO 9001, customer, regulatory, and statutory requirements.
• Provide products and services that conform to all purchase order requirements, specifications, drawings, standards, and contractual requirements.
• Flow down all applicable requirements to sub-tier suppliers.
• Ensure personnel performing work affecting quality are competent and appropriately trained.

2. Quality Management System Requirements

Suppliers shall maintain one of the following, as applicable:

• AS9100 certification
• ISO 9001 certification
• Customer-approved quality system
• Other quality system approved by Cross Technology Inc.

Cross Technology Inc. reserves the right to conduct on-site or remote audits of supplier quality systems and associated records.

3. Configuration and Document Control

Suppliers shall:

• Use only current revisions of drawings, specifications, and work instructions.
• Maintain revision control of all documents affecting product quality.
• Verify that manufacturing and inspection activities are performed to the latest authorized revision level.

No changes to design, manufacturing methods, materials, processing sources, tooling, software, inspection methods, or manufacturing locations may be made without prior written approval when required by contract or purchase order.

4. Product Conformity

The supplier shall ensure:

• Product meets all engineering and purchase order requirements.
• Characteristics identified in drawings are verified through inspection.
• Product acceptance activities are documented.
• Products are free from defects, damage, contamination, corrosion, and deterioration.

When sampling inspection is utilized, the method shall be statistically valid and approved by the supplier’s quality system.

5. Inspection and Test Records

The supplier shall maintain records demonstrating product conformity including:

• First Article Inspection Reports (FAIR) when required.
• Dimensional inspection reports.
• Material certifications.
• Process certifications.
• Test reports.
• Calibration records.

Records shall be retained for a minimum of ten (10) years unless otherwise specified by contract.

6. First Article Inspection (FAI)

When required by purchase order, suppliers shall perform First Article Inspection in accordance with:

SAE International AS9102

FAI shall be required for:

• New part numbers
• Design changes
• Manufacturing process changes
• Manufacturing location changes
• Extended production interruptions exceeding two years

7. Material Traceability

Suppliers shall maintain strict protocols and complete traceability for:

• Raw materials
• Aerospace materials
• Special process lots
• Serialized products when required

Traceability records shall permit identification from finished product back to original material certifications and processing records. Suppliers must provide advance notice of any changes to materials, tooling, sub-tier vendors or manufacturing locations.

Material certifications shall accompany shipments when specified.

8. Special Process Control

Special processes including but not limited to:

• Heat treating
• Welding
• Plating
• Painting
• Chemical processing
• Passivation
• Anodizing
• Nondestructive testing

shall be performed by qualified personnel and approved facilities in accordance with applicable specifications.

Special process certifications shall be provided when required.

9. Calibration Requirements

Inspection, measuring, and test equipment shall:

• Be calibrated against standards traceable to national or international standards.
• Be maintained in a controlled calibration system.
• Be protected from damage and deterioration.
• Have current calibration status identified.

Out-of-tolerance conditions affecting delivered product shall be immediately reported.

10. Control of Nonconforming Product

Suppliers shall establish processes to identify, segregate and control nonconforming products.

The supplier shall not:

• Repair
• Rework
• Use-as-is
• Deviate from requirements

without prior written authorization when required by contract.

Notification shall include:

• Part number
• Lot number
• Description of nonconformance
• Quantity affected
• Proposed disposition

11. Corrective Action Requirements

Suppliers shall respond to corrective action requests within the timeframe specified by Cross Technology Inc.

Responses shall include:

• Root cause analysis
• Containment actions
• Corrective actions
• Verification of effectiveness

Accepted methodologies include:

• 8D
• 5 Why
• Fishbone Analysis
• Root Cause Corrective Action (RCCA)

12. Notification of Changes

The supplier shall notify Cross Technology Inc. in writing before implementation of:

• Ownership changes, including company name changes
• Facility relocations
• Process changes
• Manufacturing equipment changes
• Quality system certification status changes
• Key personnel changes affecting quality
• Changes to approved sub-tier suppliers

Approval may be required before implementation.

13. Right of Access

Cross Technology, Inc., its customers, regulatory agencies, and applicable authorities have the right to access:

• Supplier facilities
• Manufacturing operations
• Inspection areas
• Quality records
• Applicable sub-tier supplier locations

for purposes of verification, surveillance, and audit.

14. Counterfeit Parts Prevention

The supplier shall establish controls to prevent the use of counterfeit or suspect counterfeit parts.

Controls shall include:

• Procurement from authorized sources.
• Verification of material authenticity.
• Traceability documentation.
• Reporting of suspected counterfeit material.

Counterfeit material shall not be delivered under any circumstance.

15. Foreign Object Debris (FOD) Prevention

The supplier shall maintain a documented Foreign Object Debris/Damage (FOD) Prevention Program.

The program shall include:

• Employee awareness and training.
• Housekeeping requirements.
• Tool accountability.
• Material handling controls.
• Inspection for foreign object contamination.
• Cleanliness requirements during manufacturing and packaging.

Products shall be delivered free of:

• Chips
• Burrs
• Loose hardware
• Dirt
• Dust
• Oils beyond specified limits
• Contaminants
• Foreign materials

Aerospace products shall be protected from FOD throughout manufacturing, storage, packaging, and transportation.

16. Product Safety

Suppliers should promote product safety throughout product realization activities.

This includes:

• Risk awareness
• Hazard identification
• Configuration control
• Human factors considerations
• Prevention of escaped defects

Any condition that may affect product safety shall be reported immediately.

17. Ethical Behavior and Business Conduct

Suppliers shall maintain ethical business practices and comply with applicable laws and regulations.

Suppliers shall:

• Conduct business honestly and ethically.
• Avoid conflicts of interest.
• Prohibit bribery and corruption.
• Protect confidential information.
• Comply with export control regulations.
• Comply with labor and employment laws.
• Maintain a workplace free from discrimination and harassment.

Fraudulent, deceptive, or unethical practices are grounds for removal from the Approved Supplier List.

18. Awareness Requirements

Personnel performing work affecting product quality shall be aware of:

• Their contribution to product conformity.
• Their contribution to product safety.
• The importance of ethical behavior.
• Customer-specific requirements.
• Regulatory requirements.
• FOD prevention requirements.

19. Packaging and Preservation

Suppliers shall package products to prevent:

• Corrosion
• Contamination
• Mechanical damage
• Electrostatic discharge damage (when applicable)
• FOD contamination

Protective packaging shall be suitable for shipment and storage conditions.

20. Certificate of Conformance

Each shipment shall include a Certificate of Conformance stating:

• Supplier name
• Purchase order number
• Part number
• Revision level
• Quantity shipped
• Statement of conformity
• Authorized representative signature or electronic approval

Example statement:

“The products supplied under this shipment have been manufactured, inspected, and tested in accordance with applicable purchase order requirements and are certified as conforming to all specified requirements.”

21. Flow Down Requirements

The supplier shall flow down all applicable requirements contained in:

• Purchase Orders
• Drawings
• Specifications
• Customer requirements
• Regulatory requirements
• These Supplier Terms and Conditions

to all sub-tier suppliers involved in fulfillment of the order.

22. Supplier Performance

Supplier performance may be monitored using criteria including:

• Quality performance
• On-time delivery
• Corrective action responsiveness
• Certification status
• Customer complaints
• Audit results

Unsatisfactory performance may result in:

• Increased surveillance
• Conditional approval
• Probation
• Disqualification from the Approved Supplier List

23. Record Retention

The Supplier shall maintain records demonstrating conformity to all purchase order, regulatory, statutory, customer, and quality management system requirements.

At a minimum, records shall include, as applicable:

• Certificates of Conformance
• Material Certifications (Mill Test Reports)
• First Article Inspection Reports (AS9102), when required
• Dimensional inspection records
• In-process and final inspection records
• Test reports
• Calibration records
• Special process certifications
• Corrective action records
• Training records for personnel performing work affecting product quality
• Traceability records
• Nonconformance records
• FOD prevention records, when applicable

Unless otherwise specified by contract or customer requirements, all quality records shall be retained for a minimum of ten (10) years from the date of product shipment.

24. Annual Supplier Documentation Requirements

To maintain Approved Supplier status, suppliers shall provide updated documentation annually, or whenever changes occur.

Documentation shall be submitted each calendar year, unless otherwise requested by Cross Technology, Inc.

The following documentation shall be provided, as applicable:

Quality Management System

• Current AS9100 or ISO 9001 Certificate
• Scope of Certification
• Certification expiration date
• Notification of any suspension, withdrawal, lapse, or change in certification status

Insurance

Current Certificate of Insurance including:

• General Liability
• Product Liability (if applicable)
• Workers’ Compensation
• Automotive Liability (if applicable)

Coverage limits shall meet contractual requirements.

Supplier Contact Information

Updated:

• Company name
• Physical and mailing address
• Primary contacts
• Quality Manager contact
• Purchasing contact

Regulatory Compliance

Current declarations, as applicable:

• Conflict Minerals (CMRT)
• REACH Compliance
• RoHS Compliance
• DFARS Specialty Metals Compliance (when applicable)
• Country of Origin information
• Export Control Compliance (ITAR/EAR, when applicable)
• Cybersecurity Compliance (NIST 800-171/CMMC, when applicable)

Tax Information

Updated:

• W-9 (U.S. suppliers) or applicable tax form

Supplier Acknowledgment and Acceptance

The undersigned acknowledges that they are an authorized representative of the supplier identified below and certify that they have received, reviewed, and understand Cross Technology, Inc.’s Supplier Terms and Conditions.

The supplier agrees to comply with all applicable purchase order requirements, quality requirements, regulatory requirements, and the provisions contained within these Supplier Terms and Conditions.

The supplier further agrees to:

• Maintain an effective Quality Management System appropriate to the products and services provided.
• Notify Cross Technology, Inc. of any changes that may affect product quality, regulatory compliance, or certification status.
• Flow down all applicable requirements to sub-tier suppliers.
• Provide only products and services that conform to contractual requirements.
• Maintain required quality records and make them available upon request.
• Promote product safety, ethical behavior, counterfeit parts prevention, and Foreign Object Debris (FOD) prevention throughout all applicable operations.
• Submit updated certification and supplier documentation annually, or immediately upon any significant change.

This acknowledgment shall remain in effect until superseded by a revised Supplier Terms and Conditions document or withdrawn in writing by either party.