NORTH AMERICAN AVIATION TERMS AND CONDITIONS

Terms and Conditions

• 1. GENERAL DEFINITIONS:
• 1.1. "Seller" shall refer to North American Aviation, Inc. of 7330 N Broadway, Wichita, KS 67219
• 1.2. "Purchaser" shall refer to any customer or end user of products manufactured by North American Aviation, Inc.
• 1.3. "Conforming" means product conforms in all respects with the specifications as set forth in the purchaser's       Purchase Order (PO), related supplied engineering and other documents.
• 1.4. "Non-conforming" means product fails to conform in one or more respects with the specifications as set forth in the purchaser's Purchase Order (PO), related supplied engineering and other documents.
• 1.5. "Purchase Orders" shall be referred to as "PO" and means the agreement whereby Purchaser agrees to purchase and Seller agrees to manufacture and sell the product(s), consisting of the terms specified on the PO and the Purchaser's drawings, specifications and written correspondence relating to said product.
• 1.6. "CO" or "Change Order" shall refer to a change made in reference to an accepted PO by the purchaser.
• 1.7. "Work in Process" shall refer to any work that has begun in accordance with an accepted PO by the seller. This will include, but is not limited to, supplies and materials purchased, labor, and shop hours applied to the associated jobs.
• 2. PAYMENTS:
• 2.1. Payment terms are Net 30 from date of invoice, 1% late fee assessed after 45 days, unless other terms are expressly agreed upon. The date of shipment shall be the date of the invoice.
• 3. ACCEPTANCE OF PO BY SELLER:
• 3.1. Seller shall send a written acknowledgment of receipt of PO.
• 4. CHANGES:
• 4.1. Purchaser shall have the right at any time to make changes in drawings, designs, specifications, materials, delivery time or method of transportation. Purchaser shall submit such Change Orders in writing, in a timely manner to Seller.
• 4.2. Seller shall send a written acknowledgment of receipt of CO.
• 4.3. Seller shall proceed promptly to make such changes in accordance with the terms of such CO.
• 4.4. If a CO causes an increase or decrease in the cost of performance of the PO or in time required for performance, an equitable adjustment may be made, as applicable, to the price and/or the delivery schedule of the affected performance and the PO shall be amended in writing accordingly.
• 4.5. Seller reserves the right to reject any CO and invoice for Work in Process.
• 4.6. Purchaser shall be liable for any and all changes made which affect the seller's ability to perform the terms of said PO. Charges for Work in Process, Cancellation charges, re-stocking fees, or other costs may be applied to such changes that are not made in a timely manner.
• 5. INSPECTION AND WARRANTY
• 5.1. Inspection:
• 5.1.1. Seller is a certified AS9100 manufacturer and will maintain quality control and inspection systems in accordance with its certification.
• 5.1.2. Upon request, Seller shall provide Purchaser written or oral reports relating to the status of Seller's performance.
• 5.2. Initial inspection and receipt of product by Purchaser shall occur within 3 working days of delivery. Any discrepancies or damages to the shipment shall be reported immediately to the Seller. If notification is not received within 3 working days of delivery, the Purchaser shall be liable for the shipment as stated on the Packing List.
• 5.3. Warranty:
• 5.3.1. Seller warrants that the product shall conform to all requirements provided by the Purchaser, including specifications, drawings, and other referenced descriptions and technical documents and shall be of good material and workmanship.
• 5.3.2. Any damage due to mishandling, improper storage, improper usage, etc. will void the warranty.
• 5.3.3. The above warranty shall expire after a period of 12 months from the date of shipment to the purchaser.
• 5.4. Remedies:
• 5.4.1. Purchaser shall notify Seller of any non-conformance in writing. Purchaser shall supply detailed information concerning the non-conformance, the serial number of the product, date of shipment, Packing List number, and PO number.
• 5.4.2. Purchaser may return the affected product for repair or replacement after receipt of Return Authorization issued by Seller.
• 5.4.3. Seller will inspect and make a determination of the nature and scope of the non-conformance. Written notification of such determination shall be provided to Purchaser.
• 5.4.4. Seller will repair or replace non-conforming product in a timely manner and return to Purchaser.
• 5.4.5. Seller reserves the right to retain non-conforming product.