General Terms and Conditions for Dual Machine Corporation’s Suppliers

1. Supplier will maintain a quality management system in accordance with ISO 9001 or higher or maintain a quality management system which complies with industry standards and specifications which is appropriate to the type of product produced.

2. Supplier will notify Buyer if any nonconforming product is found after shipment with 24 hours of discovery of such product and obtain Buyer approval for disposition, if appropriate.

3. Supplier will notify Buyer of changes in product and/or process, changes of suppliers, changes of manufacturing facility location and when required, obtain approval from Buyer.

4. Products ordered should meet applicable drawings, specifications, standards and purchase order requirements. Supplier shall subject products to inspection and test to ensure products meet all Buyer’s requirements.

5. Supplier shall communicate to sub-tier suppliers the applicable requirements in the purchasing documents including any requirements from Buyer’s customer.

6. Supplier shall ensure all personal assigned to perform the services required for the products ordered are capable, skilled, qualified and competent.

7. Buyer, its customer and regulatory authorities shall have the right of access to Supplier’s applicable areas of facilities and to applicable documents supporting this purchase order. This right of access extends to sub-tier suppliers’ facilities and documents.

8. Supplier shall retain documentation supporting this purchase order for a minimum of 7 years.

9. Supplier shall maintain a system to prevent the use of counterfeit parts.

10. Persons performing activity to produce materials or provide services to be delivered or provided are by extension participants in driving product safety and shall ensure that persons are aware of the importance and meaning of ethical behavior.