Quality Control Clause

QC01 -  Quality System

Supplier shall maintain an effective quality system.

QC02 -  Certificate of Conformance

The supplier shall furnish a Certificate of Conformance with each
shipment that states all Purchase Order requirements are met.

QC03 -  Traceability

The supplier shall maintain a system that allows ready identification
of suspect lots.

QC04  -  Records

The supplier shall maintain records for at least 7 years

QC05  -  Authorized Processors and Manufacturers

Only processors and manufacturers authorized by Wilson's Machine Products are authorized for to be used to performed work.

QC06  -  Non-conformances

Vendor must notify Wilsonís Machine immediately of any non-conformances and obtain approval for the nonconforming product disposition.

QC07  -  Changes

The supplier must notify Wilson's of any product or process changes.

QC08  -  Right of Access

Wilson's, our customers and any regulatory authority reserves the right of access to all facilities and records associated with our purchase orders.

QC09  -  Flow Down

All Wilsons Machine Products Inc. Quality clauses shall be flowed down to subtier suppliers at all levels.

QC10  -  Counterfeit Work

Counterfeit Parts Prevention

(a) For purposes of this clause, Counterfeit Work consists of those parts delivered under this Contract that are the lowest level of separately identifiable items (e.g., articles, components, goods, and assemblies). ďCounterfeit WorkĒ means Work that is or contains items misrepresented as having been designed and/or produced under an approved system or other acceptable method. The term also includes approved Work that has reached a design life limit or has been damaged beyond possible repair, but is altered and misrepresented as acceptable.

(b) SELLER agrees and shall ensure that Counterfeit Work is not delivered to Wilsonís Machine Products Inc.

(c) SELLER shall only purchase products to be delivered or incorporated as Work to Wilsonís Machine Products Inc. directly from the Original Component Manufacturer (OCM)/Original Equipment Manufacturer (OEM), or through an OCM/OEM authorized distributor chain. Work shall not be acquired from independent distributors or brokers unless approved in advance in writing by Wilsonís Machine Products Inc..

(d) SELLER shall immediately notify Wilsonís Machine Products Inc. with the pertinent facts if SELLER becomes aware or suspects that it has furnished Counterfeit Work. Upon sale of merchandise to Wilsonís Machine Products Inc. SELLER shall provide OCM/OEM documentation that authenticates traceability of the affected items to the applicable OCM/OEM.

(e) In the event that Work delivered under this Contract constitutes or includes Counterfeit Work, SELLER shall, at its expense, promptly replace such Counterfeit Work with genuine Work conforming to the requirements of this Contract. Notwithstanding any other provision in this Contract, SELLER shall be liable for all costs relating to the removal and replacement of Counterfeit Work, including without limitation Wilsonís Machine Products Inc.ís costs of removing Counterfeit Work, of reinserting replacement Work and of any testing necessitated by the reinstallation of Work after Counterfeit Work has been exchanged. The remedies contained in this paragraph are in addition to any remedies Wilsonís Machine Products Inc. may have at law, equity or under other provisions of this Contract.

(f) This clause applies in addition to any quality provision, specification, statement of work or other provision included in this Contract addressing the authenticity of Work.To the extent such provisions conflict with this clause, this clause prevails.

(g) SELLER shall include paragraphs (a) through (d) of this clause or equivalent provisions in lower tier subcontracts for the delivery of items that will be included in or furnished as Work to Wilsonís Machine Products Inc.

(h) SELLER shall establish and maintain a Counterfeit Prevention Program. The purpose of this document shall be to prevent the delivery of counterfeit parts and control parts identified as counterfeit.***