F-PURCH-DSM-05 Rev 3 (8/26/22)

Supplier Terms and Conditions:

1. These terms and conditions are additional to the standard DSM terms and conditions.

2. DSM performs a periodic evaluation of its top suppliers based on performance. Criteria used in evaluation includes ≥ 90% on-time delivery and ≤10% quality reject performance. At the discretion of DSM, a supplier that fails to meet these criteria may be listed as a non-approved source. In this instance, future business may be subject to a supplier qualification re-evaluation.

3. Supplier shall flow down to sub-tier suppliers the applicable requirements in the purchasing documents.

4. Supplier shall establish and maintain records to provide objective quality evidence of conformity to purchasing requirements and of the effective operation of the supplier’s quality management system.

5. Unless stated otherwise in the purchase order, at a minimum, each quality record is to be maintained for at least seven years. Supplier shall destroy and dispose of all quality records at the end of the retention period.

6. Records shall be available for review by DSM, its customers and regulatory authorities, as required.

7. Upon request, suppliers are to provide their procedures for controlling relevant records to DSM’s purchasing for review by the Purchasing Manager.

8. Supplier shall notify DSM of nonconforming product or process prior to delivery and wait for DSM’s approval of supplier nonconforming product.

9. Supplier shall maintain objective quality evidence of DSM’s approval of supplier nonconforming product. The supplier organization shall take action to determine and eliminate the cause of nonconformities to prevent reoccurrence and to provide objective quality evidence to DSM, and/or our customers, assuring them of the quality of delivered goods.

10. If it becomes evident that non-conforming product has been inadvertently released to DSM, then DSM requires to be notified within 24 hours of such a discovery.

11. Supplier shall notify DSM of any changes in the product and/or process used in the manufacture of the product. DSM reserves the right for approval of the product, the parts used, the materials used, the procedures used and the equipment used by the Supplier in fulfilling the Purchase Order requirements.

12. Supplier shall provide Certificates of Conformity for product delivered, including:

    1. parts used

    2. materials used

    3. procedures/processes used

13. DSM, 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 requirements.

14. All items of this purchase order are subject to in-process quality surveillance by DSM and/or its customer.

15. Ensuring that persons are aware of:

    1. Their contribution to product or service conformity

    2. Their contribution to product safety

    3. The importance of ethical behavior

16. At any time, DSM may notify the supplier of specific requests for on-site surveillance (Right to Access). DSM reserves the right to request the opportunity to witness any actions in support of this order.

17. The supplier shall provide no less than three business days advance notification to DSM’s procurement representative before items are ready for any requested DSM source surveillance.

18. The supplier shall not proceed without DSM present or without DSM QA written authorization to proceed.

19. The supplier shall provide reasonable facilities and assistance, including all quality records and related data for contracted goods, upon request.

    1. Certification/ Test report

    2. Material certification is required to accompany the part(s) with the shipment.

    3. Plating certification is required to accompany the part(s) with the shipment.

    4. Special process certification is required to accompany the part(s) with the shipment. • Test reports required with the shipment.

    5. Raw material process certification and test reports required with the shipment.

20. If the supplier loses or damages DSM property, the supplier shall reimburse or credit DSM for the item’s value at that current level of completion.

    Distributor Provisions

21. Material certifications and/or inspection/test data must be maintained at distributor’s facility and furnished to DSM upon request.

22. Material to be identified and traceable to manufacturer’s part number, lot number, date code for all electronic and electrical parts, raw material, mechanical machined parts, etc.

23. Original Manufacturer’s Certificate of Compliance is required with shipment.

24. Distributor’s Certificate of Compliance must identify the original manufacturer and lot number for traceability. The original manufacturer’s Certificate of Compliance must be maintained by the Distributor for a minimum of 10 years and be available upon DSM’s request.

25. Suppliers are required to have a Foreign Object Debris (FOD) control program plan.

26. Where called out the seller must comply and flow down DFARS clause 252.225.7014: Preference for Domestic Specialty Metals (latest Revision) and Alternate 1 (latest revision).

27. Suppliers shall prevent the use of counterfeit parts and/or material.

    Inspection Provisions

28. Supplier is to provide First Article Inspection documentation to AS9102 Standard (latest revision) with shipment. The first article piece should be tagged as such.

29. Changes to process, movement of machines or a time of two years has lapsed since an item has been last supplied then a new delta or complete first article needs to be carried out.

    Purchase Order Provisions

30. Revision items indicated as, “**” must be manufactured to the latest documented revision.

31. All requirements stated on the purchase order that are applicable to sub-tier suppliers, shall be flowed down via purchasing documents, including any key characteristics that have been identified.

32. Original Manufacturer’s Certificate of Compliance is required with shipment.

33. Supplier shall maintain Foreign Object Debris/Damage (FOD) prevention program including:

    1. A review of manufacturing processes to identify and eliminate foreign object entrapment, periodic self-audit

    2. The Buyer’s right to perform FOD prevention program audits

    3. Periodic self-audit of supplier’s internal FOD prevention practices

    4. And to provide periodic FOD training to employees

34. Lot traceability is required for all items provided on this purchase order.

    Shelf-life Provisions

35. The material supplied on this purchase order shall be accompanied by a shelf-life certificate.

36. The material shall be received with the remaining shelf life greater than the minimum specified on the purchase order.

    Unique to Purchase Order

37. Special process suppliers (e.g., shot peen, plating, heat treatment, bonding, nondestructive testing, welding, coating, chemical processing, electro-mechanical machining, etc.) shall require accreditation through the National Aerospace and Defense Contractors Accreditation Program (NADCAP) as a pre-requisite for DSM approval.

38. All quality records (non-electronic) shall be documented in ink or other permanent marking.

39. The following must be requested in writing to the Buyer and approved in writing from DSM prior to incorporation:

    1. An anomaly noted in a drawing or specification that could result in a nonconformance. • Lack of clarity or definition in a drawing or specification.

    2. A request for an alternate method to a quality system requirement.

40. All electrical piece parts shall have a Certificate of Compliance and be purchased direct from vendor or authorized distributor. Authorized piece part distributors or the OEM shall be used as source of supply.

F-PURCH-DSM-05 Rev 3 (8/26/22)