Koral Manufacturing, Inc.

Terms and Conditions

The terms of this purchase order exclusively represent the entire agreement between
the Supplier and Koral Manufacturing, Inc.

1. The Supplier shall maintain the proper identification and revision status of specifications, drawings, process
requirements, inspection/verification instructions and other relevant technical data.

2. All special processes required by a purchase order must be performed by qualified personnel.

3. The Supplier is required to notify Koral Manufacturing of any changes to a product and/or process, changes of suppliers, and changes of manufacturing facility locations.

4. Koral Manufacturing is to be contacted by the Supplier in the event of nonconforming product/material. The Supplier must obtain approval for the disposition of the nonconforming product/material by Koral Manufacturing's authorized.

5. Koral Manufacturing reserves the right of access and inspection by our representatives, our customers, any regulatory authorities to the applicable areas of all facilities, at any level of the supply chain, involved in the purchase order an to all applicable records.

6. The Supplier is required to flow-down to the sub-tier suppliers the applicable requirements in the purchasing documents and key characteristics where required. Koral Manufacturing must be notified and give written consent prior to its suppliers subcontracting any product or process to a sub-tier supplier.

7. Koral Manufacturing may perform inspection activities to verify the authenticity of the appropriate certificate of conformity, material certificates, etc. and other accompanying documentation by review and comparison as is appropriate to the drawing and/or industry specifications or by other means.

8. When necessary, Koral Manufacturing may inspect or audit at the supplier's facility. Products may be inspected to ensure they meet requirements (dimensions, surface finish, etc.) and the results are recorded as appropriate.

9. To prevent the purchase of counterfeit or suspect/unapproved products and to ensure product identification and traceability, Koral Manufacturing may institute controls that include the requirement of Material Certificates, Certificates of Conformity, and/or other supporting documentation from its suppliers as is appropriate. These requirements may be specified on Koral Manufacturing's Purchase Order or may otherwise be communicated to the supplier.

10. Koral Manufacturing may require specific actions where timely and/or effective corrective actions to a supplier issue(s) are not achieved. These actions may include but are not limited to any or all of the following: withholding payment until the issue is resolved, removal of the supplier from Koral Manufacturing's Approved Supplier List, and legal actions.

11. Koral Manufacturing reserves the right to review and approve the Vendors Quality Management System. Standard QMS Requirements Include:
- Vendors providing special processing must maintain a system for validating processes.
- Customer Directed sources must operate in accordance with approved specifications and standards as dictated and controlled by the customer in question.
- Suppliers initially approved for use via Certification (ISO, AS9100, ISO 17025, AS9120, etc.) must notify our organization of any changes to that certification.