1. Quality:

a) Supplier will flow down all applicable requirements of the Purchase Order to their subtiers to insure conformance with all Specifications, Drawings, AS9100 or other Quality systems requirements, Regulations, Public Laws and other requirements, including key characteristics where required, as may be specified in the Purchase Order. Supplier must notify A&V Buyer of changes in product and/or process definition and must require A&V Buyer's approval.

b) Nonconforming material will not be accepted by A&V Engineering, Inc unless approved in advance in writing by the Buyer. Requests for authorization to ship nonconforming material will be addressed in writing to the appropriate A&V Buyer with full explanation of the nonconformance.

2. Right of Entry:

Supplier hereby grants to A&V Engineering Inc, its customers and any applicable regulatory agencies, the right to enter on its premises as well as other necessary places, during normal business hours for the purpose of inspection of Supplier's facilities and systems to ensure Supplier compliance with the terms and requirements of this order, including the quality of the contracted work, records and materials.

3. Liability:

The Supplier is liable for all defects in items delivered, including concealed defects, even if they are recognizable and discovered only upon processing, installation, and/or use, and this is not subject to any time limit for claim by A&V Engineering Inc. The Supplier shall indemnify and hold A&V Engineering, Inc. harmless from all claims arising from infringement of industrial property rights, patents, copyrights and other third-party rights, and Supplier agrees that it will defend at its own expenses any and all suits against A&V Engineering, Inc for infringement of any United States or foreign patent, copyright or other intellectual property right.