PSI.1. QUALITY SYSTEM: Seller shall provide and maintain a Quality Management System in
accordance with stated requirements of the applicable purchase order, contract drawing, or specification
and revision requirements. Compliance with this requirement shall not preclude subsequent rejection
until seller provides acceptable product. Seller's quality system is subject to review and approval by
PSI during the purchase order contract duration.

PSI.2. RIGHT OF ACCESS: In addition to our right of access, the supplier agrees to right of access
for our customers (primary or prime customer), or regulatory agencies to the applicable areas of all
facilities, at any level of the supply chain, involved in the order and to all applicable records.

PSI.3. CERTIFICATE OF CONFORMANCE/COMPLIANCE: A certificate of conformance/compliance
is required from the seller for parts and material in accordance with applicable purchase order, contract
drawing, and specification and revision requirements. Signature or stamp with title of Seller’s authorized
personnel signing the certificate, date of signing, and a statement attesting that Goods provided under
this contract conform to all contract requirements. Certificates utilizing secured computer-generated
signatures with title of Seller’s authorized personnel are acceptable. Traceability information to include
the lot trace (e.g., date, batch, heat) or the individual item trace (e.g., serial number) and shelf life

PSI.4. RECORDS: All quality records created and/or retained by seller shall be legible, stored and
retained in a suitable environment to prevent damage, deterioration or loss. Quality records shall be
retained by seller for a minimum of ten years, unless otherwise specified. Records shall be available for
review by PSI, their customers and regulatory authorities in accordance with contractors or regulatory
At the expiration of such period set forth above and prior to any disposal of records, Seller will notify
PSI of records to be disposed of, and PSI reserves the right to request delivery of such records. In the
event PSI chooses to exercise this right, Seller shall promptly deliver such records to PSI on media
agreed to by both parties.

PSI.5. FLOW-DOWN REQUIREMENTS: Seller is required to flow down all applicable requirements in
the purchasing documents (e.g. key characteristics, record retention period etc.) to sub-tier suppliers.

PSI.6. SELLER’S TRACEABILITY: Seller's providing parts and material shall supply a copy of the
original certificate of conformance or certificate of compliance and the material safety data sheet. Test
Reports and/or Certificates of Analysis when requested on the purchase order shall be provided to
specifications requested. All documentation shall accompany shipments. Failure to provide
documentation shall result in delay of receiving material and possibly payment of invoice.

PSI.7. SHELF LIFE: A minimum of 85% shelf life is required upon delivery of all age sensitive
material, unless otherwise specified on applicable purchase order, or approved by the buyer.
Certifications for shelf life items shall include the following:
• Type of material
• Manufacturer's name
• Manufacturing date
• Expiration date
• Lot or batch number

PSI.8. ORDER CONFIRMATION: Seller shall acknowledge orders within 48 hours from receipt.

PSI.9. TERMS/CHANGES: As specified on order, unless otherwise arranged by the seller and the
buyer, any change to the contract requirements by the supplier must be approved by the customer in
writing; all COD shipments require an invoice to be faxed to the Buyer with correct value of order, prior
to shipping.

PSI.10. DISCREPANCIES: The supplier shall notify the buyer in writing of any price or quantity
discrepancy, prior to acceptance of the order or shipping the material.

PSI.11. SHIPPING: The order shall be shipped as specified with our forwarder of choice, unless
otherwise agreed. If the supplier is unable to use the forwarder requested, please contact the buyer for
alternate choice.

PSI.12. FOREIGN OBJECT DAMAGE: Seller shall maintain a program to control foreign object
damage or contamination during manufacturing, assembling, inspection, storage, and shipment.

PSI.13. DELIVERY: Packaging Systems, Inc. requested delivery date = dock received date.

PSI.14. NON-CONFORMING MATERIAL: When it is known to seller that material is nonconforming
to buyer's requirements, seller shall contact buyer for approval prior to delivery. Material received
incompliant to buyer's purchase order requirements, including requested documentation, is subject to
be on hold with buyer until issues have been resolved. This condition may cause delay of payment of
seller's invoice. When the root cause to a nonconformance is determined to be under the responsibility
of the seller, a corrective action requests may be issued and the seller shall take necessary actions to
prevent future deliveries of nonconforming products.

PSI.15. NOTIFICATION OF CHANGE: Notify the organization of changes in product and/or process,
changes of suppliers, changes of manufacturing facility location and, where required, obtain
organization approval from PSI.

PSI.16. DISCLOSURE OF CONFLICT MINERALS: Sellers providing product shall practice due
diligence to ensure supplied product does not contain conflict minerals originating from the Democratic
Republic of the Congo or adjoining countries identified in section 1502 of the Dodd–Frank Wall Street
Reform and Consumer Protection Act.

PSI.17. CALIBRATION SERVICES: Vendors providing calibration services shall be accredited to
ISO/IEC 17025:2005. Vendor ISO/IEC 17025:2005 scope of approval shall include all equipment listed
on applicable acknowledged purchase order. Calibrations shall conform to ISO 10012:2003 and ANSI
Z540.3-2006 and must be traceable to NIST.

PSI 18. MATERIAL SUBSTITUTION: Unauthorized material substitutions are not permitted on
Buyer’s Goods. Unauthorized material substitution includes any deviation from the engineering definition
of a raw material. Engineering definition includes Buyer design drawing and applicable specifications,
product specification, form, size, shape, chemistry, melt method, origin, temper/condition, product
testing or surface finish. Alternate materials specified in the engineering definition (and often described
as approved material substitutions therein) do not constitute unauthorized material substitution.

PSI 19. COUNTERFEIT PARTS PREVENTION: To prevent the inadvertent use of counterfeit parts
and materials all fasteners and/or electrical, electronic and electro-mechanical parts delivered and/or
used in the manufacture of deliverable products shall be from the Original Component Manufacturer
(OCM)/ Original Equipment Manufacturer (OEM) or their franchised dealer or an authorized distributor
chain. Parts shall not be used or reclaimed and misrepresented as new. The supplier shall flow down
this requirement to sub-tier suppliers.

ITAR CONTROLLED: Information contained herein is subject to the code of Federal Regulations
Chapter 22 International Traffic in Arms Regulations. This data may not be resold, diverted, transferred,
trans-shipped, made available to a foreign national within the United States, or otherwise disposed of in
any other country outside of its intended destination, either in original form or after being incorporated
through an intermediate process into other data without the prior written approval of the US
Department of State.

This is being written to notify suppliers, and for suppliers to notify their personnel to ensure they are
aware of their contribution to product or service conformity.

Suppliers are to support Product Safety by ensuring robust management of special requirements, critical
items and key characteristics as addressed within this document and as defined by AS9100D.

It is necessary to understand the importance of ethical behavior in your business operations and treat
all personnel in an ethical and fair manner while doing business with PSI.

Suppliers must maintain a minimum product/service conformity rating of 95% and a minimum on-time
delivery rating of 90%. PSI monitors supplier performance quarterly and may notify applicable suppliers
of required actions when unacceptable ratings are detected.

As a result of passage of California's "safe drinking water and toxic enforcement act of 1986 (proposition
65)," Packaging Systems, Inc. suppliers are hereby required to identify any chemicals on the California
list of chemicals known to cause cancer or reproductive toxicity that are contained in any products being
shipped to California. Such information may be provided on safety data sheets furnished with seller’s
product which clearly identifies the chemicals and which includes a statement concerning its
carcinogenicity or reproductive toxicity. A LIST OF CURRENTLY REGULATED CHEMICALS IS AVAILABLE:

A. Unauthorized Material Substitution (General)
Unauthorized material substitutions are not permitted on Buyer’s Goods. Unauthorized
material substitution includes any deviation from the engineering definition of a raw
material. Engineering definition includes Buyer design drawing and applicable specifications,
product specification, form, size, shape, chemistry, melt method, origin, temper/condition,
product testing or surface finish. Alternate materials specified in the engineering definition
(and often described as approved material substitutions therein) do not constitute
unauthorized material substitution. Terms and definitions for metallic materials and
processing used herein are clarified in ARP1917.
Contact Buyer’s Authorized Procurement Representative for details regarding deviations to
authorized materials. Seller agrees and understands that such deviations only apply to this
purchase contract, and only as indicated in the Buyer’s authorized document.

B. Metallic Materials (Specific)
Temper or Condition Conversion - Unless specifically authorized by the engineering
definition, conversion of a raw material (i.e. heat treat to change the temper or condition of
the material) constitutes material substitution of the condition provided by the
Metallic Raw Materials – Buyer’s engineering drawings may refer to obsolete or superseded
specifications covering several forms, thicknesses, widths, etc. of the alloy or alloys. The
required characteristics of these materials are defined not only by the objective test
standards of the specification, but by the processes/methods by which this final form is
achieved. These requirements are often captured in the definitions of the required material
forms, and may not be explicitly called out in the detailed requirements. The raw material
certification results from both the process used to make it and the tests to verify basic
Seller shall ensure that metallic materials covered by current or obsolete/superseded
specifications are produced using the standard industry practices designed strictly for the
production of stock to the specified thickness, diameter, width or cross sectional area,
achieved by thermo- mechanical processing or casting process. Chemical, electrochemical
and mechanical methods used for the removal of surface scale or contamination, or the
production of the required surface finish, in accordance with the material specification are
acceptable. Raw material must not be re-certified with respect to thickness, diameter, width
or cross- sectional area or product form. Machining or cutting of thicker product or other
product forms shall not be supplied in lieu of specified product unless specifically authorized
by Buyer. Raw material certifications for material or parts shall reflect the form and size of
the raw material as originally manufactured by the raw material producer.

C. Specification Supersession:
For government specifications and standards canceled after June 1994, Seller and
subcontractors at all tiers shall use the last active revision of the canceled specification and
standard until an acceptable replacement is included in the requirements of this Contract.
Contact the Buyer’s Authorized Procurement Representative in the event of any
inconsistency in applicable specification or standard.

D. Reports (Full Pedigree from melt to final product) - Raw material certifications shall show
clear traceability to the manufacturer(s) of the raw material including ingot source, all
thermo-mechanical processing (i.e. forging, rolling, drawing, etc), heat treatment, chemical
processing and inspections as required by applicable raw material specification

E. Chain of Custody (Disguising intermediate ownership) – Suppliers shall not disguise the
pedigree of material or chain of ownership by removal of a previous supplier’s name,
nomenclature or identification.

F. Source of Additional Information - Addition information and guidance may be found through
Buyer’s Supplier Portal or Buyer’s Authorized Procurement Representative.

G. The substance of this Article shall be flowed in all subcontracts at every tier.

Quality Clauses

Quality Clauses for Packaging Systems, Inc.​

(Purchase Order Clauses) Rev L 2/19/20     ​