Terms & Condition of Sales

Terms of Sales

Any and all purchases made through EB Industrial will be governed by our Terms & Condition of Sales, which are expressly incorporated herein. Our Terms & Condition of Sales contain policies related to various aspects of your purchase of merchandise from EBI, such as shipping, returns, and other matters

Purchase Orders

Unless otherwise stated on the purchase order, the following supplier quality flow-down requirements apply to all

orders, as applicable to the nature of the products/services provided.

Quality Clauses:

Q1. Quality Control

Supplier must ensure that the clauses associated with this purchase order are flowed down to all its sub-tier

suppliers. Supplier is required to direct all its external providers to ensure that the requirements of the final product

are met.

Q-2. Quality System

The Supplier must have a Quality System consistent with industry standards. The Buyer reserves the right to review

the Supplier’s Quality system.

Q-3. Review

During the performance of this Order, the Buyer reserves the right to review; verify and/or analyze the Supplier’s

Quality and/or Inspection System and Manufacturing processes at the Supplier’s facilities. The Buyer’s

representative must notify the Supplier forty-eight (48) hours in advance of the intended review start date and

duration. Buyer’s inspection/acceptance of product prior to shipment is not required unless otherwise specified in

this Order.

Q-4 Notification of Process Changes

Supplier must notify buyer in writing of changes in product and/or process, changes of its own suppliers, changes of

manufacturing facility location and, where required, obtain buyer’s written approval. Notification must be made

within 48 hours.

Q-5 Notification of Nonconformities

Supplier must notify the Buyer of any process and/or major nonconforming product or sub-component of the

product verbally and in writing as soon as the nonconformance is detected. Major nonconformance means the

product or a sub-component of the product will not meet a specification. Notification must be made within 48 hours.

Q-6 Requirements for Sampling

Where the Supplier utilizes sample inspection plans or other statistical techniques, these must be statistically valid.

If the sample contains rejected items, the Supplier must, for the rejected feature or parameter, use a documented

method, such as 100% screening to assure the buyer that zero rejects are present.

Q-7. Product Acceptance

The Supplier must follow all requirements stated on the purchase order, drawing, data specifications and process

instructions to ensure product conformity, documentation and records are obtained.

Q-8 Qualification and Awareness of Personnel

The Supplier must employ competent personnel to ensure Buyers requirements are met. Supplier must ensure that

their employees are aware of their contribution to product or service conformity, their contribution to product safety,

and the importance of ethical behavior.

Q-9. Record Retention

The Supplier must maintain records regarding Buyer’s purchase order, specifications, drawings, process

requirements, inspection/verification instructions and other relevant technical data. Records must be maintained by

the Supplier for a minimum of 10 years or as specified by the Buyer after which the Supplier agrees to either return

or destroy related records.

Q-10. Approved Suppliers

When requested by Buyer or its customers, Supplier agrees to exclusively utilize customer or Buyer approved

external providers, including process sources (e.g. special processes).

Q-11. Access to Facilities

The Supplier agrees to permit access to the Supplier’s facility for surveying/auditing, if needed. The survey/audits

may include personnel from the Buyers, Buyer’s customer representative and/or regulatory authorities, and must

include access to all records applicable to Buyer’s product or orders.

Q-12. Counterfeit Parts Detection and Avoidance System Requirements

Supplier must detect and prevent the use of counterfeit, suspect counterfeit, unapproved, or suspect unapproved

parts.

Q13. Supplier Performance Expectations

Unless otherwise specified, seller agrees to adhere to meeting or exceeding 90% on-time delivery of product and

90% product quality ratings.

Q-14. Notification of Nonconformance

Supplier must notify the buyer of any major nonconforming product or sub-component of the product verbally and

in writing as soon as nonconformance is detected. Major nonconformance means the product or a sub-component of

the product will not meet a specification.

Q-15. Requirements for Conformance

Neither surveillance, inspection and/or tests made by the Buyer or Buyer’s representatives at either the Supplier’s or

Buyer’s facility, nor the Supplier’s compliance with all applicable product assurance requirements relieve the

Supplier of the responsibility to furnish items which conform to the requirements of the purchase order.

Q-16. Special Processes

The Supplier and any of its subcontractors performing special processes, that are non-standard according to their

approved process flow, must submit a certification listing the specification designation/number and that the special

process was performed in accordance with such specification.

Q-17. Traceability requirements

The Supplier must provide means of end item traceability. The Supplier may use the original manufacture Lot/Date

Code/Serial number or their own method for identifying the end item product as required for proper traceability.

Serialized shipments must have the serial numbers listed on the shipper and on the corresponding intermediate

packaging.

Q-18. Identification and Revision Status

The Supplier must maintain the identification and revision status of all documented information provided by the

Buyer, including but not limited to specifications, drawings, process requirements, inspection/verification

instructions and other relevant product/order related documentation.

Q-19. Calibration

The Supplier must maintain the calibration of equipment(s) used to manufacture, test, control, monitor, or measure

processes. The calibration standards used must be traceable to international or national measurement standards;

when no such standards exist, the basis used for calibration or verification is retained as documented information.

Q-20. Packaging & Shipping

The Supplier must use special packaging as required on this order, or when not specified, Supplier may use specially

designed shipping containers and/or good commercial practices as deemed necessary to prevent shipping damage.

As a minimum, the label must contain the following information: Part number and date of manufacture and Buyer’s

Order Number.

Q-21. Supplier Corrective Action

In response to Buyer-initiated corrective action requests, Supplier must advise Buyer of root cause determination,

corrective action taken to prevent recurrence of reported problems and/or discrepancies, and effectively dates of the

planned corrective action(s). Supplier must maintain a corrective action system that determines the effectiveness of

such corrective actions, and that prevents shipment of nonconforming articles without prior approval from Buyer.

Q-22. First Article Inspection
When requested, the Supplier must perform a First Article Inspection (FAI) of one item from the first production lot,

or as required by the Buyer. The FAI must consist of recorded actual drawing, specification values, and/or

requirements (dimensional, test data, processes, drawing notes, etc.) and may be documented on the drawing or on a

separate report form. The first article item must be clearly identified by an external identification marking, and a

copy of the FAI must accompany the First Article part. The Buyer reserves the right to verify any or all of the

characteristics documented on the FAI report at the Supplier’s facility.

Q-23. Source Inspection

Source Inspection may be conducted by the Buyer at the Supplier’s facilities or where designated in this Order prior

to shipment. Inspection/test and/or in-process inspection/test of the articles specified in this Order must be

performed by the Supplier and may be witnessed by the Buyer’s Quality Representative. Prior to fabrication start,

the Supplier and the Buyer must determine the process steps at which Source Inspection must be conducted. The

Supplier must notify the Buyer of the scheduled inspection/test five (5) days in advance. The method of product

release must be a stamp or signature by the Buyer’s Quality Representative on the Supplier’s shipping or inspection

documents.

Q-24. Certification of Material(s) and Process(es)

When noted on the Purchase Order, the Supplier must submit certifications for raw material (chemical and physical

characteristics) and/or processes (stating specification) used in the manufacturing of the item(s). If outside

processing is performed; a certification from subcontractor is to be provided. Note: when specified on the Purchase

Order, raw material such as titanium, aluminum, etc. must have the appropriate heat lot identified on each piece for

heat lot traceability.

Q-25. Certificate of Conformance

The Supplier must furnish a Certificate of Conformance either by email or with each delivery attesting that each

item of hardware and/or software conforms to all requirements of the Buyer’s specification and purchase order and

that all required test and inspections have been performed.

Q-26 Product Disposition

Supplier must obtain Buyer’s written approval for nonconforming product disposition.

Q-27 Disclosure of Non-Authorized Parts, Material, or Assemblies

Seller agrees to disclose to Buyer if they are not authorized for the parts, material or assemblies they are supplying.

Quotes

Prices are only for the quantities indicated on EBI’s quotation. Changes in quantities may result in changes to the originally quoted price (+/-). Orders will not be processed until a fully executed purchase order is received signed by an appropriate purchasing agent or representative of the buying company.

Quotes are valid for thirty (30) days, however EBI reserves the right to update/change/edit any quoted price based on changes in material availability, fluctuations in material costs or for reasons not stated herein and at its sole discretion. This quote is not a promise to supply.

Delivery Dates/Lead Times

Lead times are always quoted in days after receipt of your purchase order. For manufactured parts, delivery dates are best estimates and may fluctuate based on current market conditions and material availability. EBI shall not be held responsible for reasonable or excusable delays nor shall the buyer refuse to accept deliveries because of such delays.

Currency

Payment shall be made in United States currency.

Method of Payment

Payments can be made by ACH, Wire Transfer or Company Check. Please discuss method of payment with your sales representative prior to order placement.

Payment Terms

Payment Terms are always 50% Prepayment due at the time Purchase Orders are placed and 50% due prior to shipping. Orders will not commence until payments are submitted. COD and Net 10/Net30 are reserved for repeat costumers after the approval of a submitting a Credit Application.

EB Industrial

2159 Palma Drive, Suite D, Ventura, California 93003 – 805-669-0040

Deposits

EBI reserves the right to charge a manufacturing deposit at our discretion based on the raw materials, size, and complexity of the job. Manufacturing deposits will be conveyed to buyer prior to acceptance of your order. Orders will not be processed until such deposit is received.

DEPOSITS ARE NON-REFUNDABLE AFTER PURCHASING IS COMPLETE AND WORK HAS BEGUN. ORDER CANCELLATION AFTER THIS POINT WILL RESULT IN SHIPMENT OF WORK IN PROGRESS NO MATTER WHAT THE STAGE OF COMPLETION MAY BE.

Certifications and Traceability

EBI will provide a Certificate of Conformance and traceability with each shipment. All items are manufactured using the latest available specifications unless otherwise noted or requested by the buyer and specified explicitly on the PO. We are not an FAA facility and we do not supply civil aviation parts or furnish 8130 documents.

Shipping

Unless otherwise noted, shipping is not included in quotation and is the responsibility of the buyer. EBI assumes no responsibility for items shipped on customer accounts. All shipments must be on customers shipping account. You assume all responsibility for loss or damage. All items are quoted FOB: Ventura CA.

Returns

Parts returned for replacement or credit must cite a Return Material Authorization (RMA) number on packing list and written on the returned package. Parts returned without authorization will not be accepted for credit. RMA numbers will only be issued with a valid QA rejection report. Non-Defective returns will be subject to a 50% restocking fee and return freight will be the responsibility of the buyer.

Warranty

EB Industrial LLC. warranties its products for 90 Days after the shipment of product for material defects and workmanship only.