SUPPLIERS

Golden State Engineering, Inc.

TERMS AND CONDITIONS:

ACCEPTANCE

This Order constitutes Golden State Engineering, Inc.’s (GSE’s) offer to Supplier, which becomes a binding contract under these terms and conditions when it is accepted by the Supplier, either by acknowledgment or the commencement of performance. No condition stated by Supplier in accepting or acknowledging this Order will be binding upon GSE if in conflict with, inconsistent with, or in addition to these terms and conditions unless specifically accepted by GSE in writing. This Order is expressly limited to the terms and conditions contained herein.

NOTIFICATION

The supplier will promptly notify GSE of any discrepancy or nonconformance in materials, services or products immediately upon discovery of the discrepancy or nonconformance whether before during or after actual delivery to GSE of the materials, services or products.

ACCESS TO FACILITIES, AUDIT AND INSPECTION:

If this purchase order (a) includes specifications, or (b) is for the procurement of either (i) goods to be incorporated into Buyer’s products or (ii) services to be used in the production of Buyer’s products, then Seller’s (and Seller’s sub-tier suppliers who provide goods or services) plant, books and records pertinent to this or any related order (to the extent consistent with applicable laws and regulations) shall at all practical times be subject to review, inspection and audit by Buyer, its authorized representative and any authorized representative of Buyer’s customer to the extent necessary to verify compliance with Buyer’s specifications or to enable Buyer to comply with its obligations to its customer(s).

SUPPLIER CHANGES IN PRODUCT, MANUFACTURING LOCATION, OR PROCESS DEFINITION

Golden State Engineering, Inc. (GSE) must be promptly notified of changes in product, manufacturing location, or process definition that were not requested by GSE. Notification should describe the change or changes that have been made or are being proposed. GSE reserves the right to require its approval of the product, manufacturing location or the process change before the Supplier forwards the product.

SUBCONTRACTING

Supplier agrees to obtain GSE’s written approval before subcontracting this Order or any substantial portion of this Order. However, this requirement will not apply to the purchase of standard commercial supplies or raw materials on which Supplier will perform further work.

ITAR

Some GSE documentation may contain Technical Data that is restricted by 15 CFR (AECA), and 22 CFR (ITAR). Violations of these export laws are subject to severe criminal penalties. F.O.D. prevention activities along with counterfeit product programs are hereby flowed down to Suppliers.

MODIFICATIONS

No modification of any part of this Order, including these terms and conditions, will be valid unless it is issued in writing and signed by an authorized representative of GSE’s Purchasing Department.

ACCEPTANCE AND REJECTION

(a) Golden State Engineering, Inc. (GSE) will have the right to accept delivered items or give Supplier notice of rejection or revocation of acceptance, regardless of any prior payment, test, inspection, or passage of title. No inspection, test, delay, or failure to inspect, test or discover any defect or other nonconformance will relieve Supplier of any obligations under this Order or impair any rights or remedies of GSE.
(b) If Supplier delivers non-conforming items, GSE may, at its option and at Supplier’s expense: (i) return the items for credit or refund; (ii) require Supplier to promptly correct or replace the items; (iii) correct the items; or (iv) obtain replacement items from another source.
(c) The supplier will not redeliver corrected or rejected items without disclosing the former rejection or requirement for correction. The supplier will disclose any corrective action taken. Repair, replacement, and other correction and redelivery will be completed within the original delivery schedule or such later time as GSE’s authorized Purchasing Department Representative may reasonably direct.
(d) All costs, expenses, and loss of value incurred as a result of or in connection with non-conformance and repair, replacement or other correction may be recovered from Supplier by equitable price reduction or credit against any amounts that may be owed to Supplier under this Order or otherwise.
(e) Some GSE documents contain Technical Data whose export is restricted by the Arms Export Control Act (Title 22, U.S.C., Sec 2751, et seq.). Violations of these export laws are subject to severe criminal penalties.
In addition to the above clauses, GSE reserves the right to:
a) Set the requirements for approval of product, procedures, processes, and equipment,
b) Set the requirements for qualification of personnel,
c) Set minimum quality management system requirements,
d) Control the identification and revision status of specifications, drawings, process requirements,
inspection/verification instructions and other relevant technical data, the latest revision shall apply unless otherwise stated on P.O.
e) Set the requirements for design, test, inspection, verification (including production process verification), use of
statistical techniques for product acceptance, and related instructions for acceptance by the organization,
and as applicable critical items including key characteristics,
f) Set the requirements for test specimens (e.g., production method, number, storage conditions) for design approval, inspection/verification, investigation or auditing,
g) Establish the requirements regarding the need for the supplier to
– notify the organization of nonconforming product,
– obtain organization approval for nonconforming product disposition,
– notify the organization of changes in product and/or process, changes of suppliers, changes of
manufacturing facility location and, where required, obtain organization approval, and
– flow down to the supply chain the applicable requirements including customer requirements, records retention requirements, and
h) right of access by the organization, their customer and regulatory authorities to the applicable areas of all
facilities, at any level of the supply chain, involved in the order and to all applicable records
i) records related to GSE purchases shall be maintained for not less than 10-years or the latest revision shall apply unless otherwise stated on P.O.
Last but not least
Supplier is to ensure that personnel is aware of : 
1. Their contribution to product or service conformity
 2. The importance of ethical behavior 
3. Their contribution to product safety

Addendum A

(for Raw Material Vendors)

In addition to the standard clauses stated on GSE’s Terms and Conditions (which can be found on our website, www.goldenstateeng.com), GSE has the following restrictions on Raw Materials:

LIST OF PROHIBITED MATERIAL MANUFACTURERS

1) All Material Produced in India.
2) Western Titanium

**No materials produced by the above material manufacturers shall be accepted by Golden State Engineering Inc. Selling and shipping materials produced by the companies above to GSE shall be cause for the issuance of a Corrective Action or removal from GSE’s Approved Supplier List (ASL).

Furthermore, GSE only accepts Raw Materials in standard 12-foot random lengths or smaller. In the event the material (tubes and some carbon steels) come from the mill in 20-foot lengths, the seller will cut material down to 10 or 12-foot lengths prior to delivery to GSE. No 20-foot lengths of material will be accepted. Heat Control Required.