Supplier Terms and Conditions

1. Quality Management System (QMS) Requirements

• Suppliers must have established and maintain a QMS
• Certification to ISO 9001 (or IATF 16949, AS9100, etc.) is preferred and may be required depending on the criticality of the product or service

2. Product and Service Conformity

• Products and services must meet all applicable specifications, drawings, and purchase order (PO) requirements
• Any deviation must be approved in writing by Cactus Materials Inc. prior to shipment

3. Change Management

• Suppliers must notify Cactus Materials, Inc. of any changes in:
  • Product or process
  • Materials or source of raw materials
  • Manufacturing location
  • Sub-suppliers
• Changes require prior written approval

4. Traceability and Identification

• All products must be traceable to raw material lots, production batches, and inspection/test records
• Lot numbers and date codes must be clearly marked and recorded

5. Right of Access

• The manufacturer, its customers, and regulatory authorities reserve the right to access the supplier’s facilities, systems, and applicable records for verification or auditing purposes

6. Record Retention

• Suppliers must retain quality and production records for a minimum of 10 years, unless otherwise stated

7. Counterfeit Parts Prevention

• Suppliers must have a documented counterfeit prevention program to ensure that only authentic, conforming, and traceable parts are provided

8. Nonconforming Product

• The supplier must notify Cactus Materials, Inc. immediately upon discovery of nonconforming product, whether identified before or after delivery
• Nonconforming product may not be shipped without written authorization (concession or deviation)

9. Corrective and Preventive Action

• Suppliers are required to investigate and respond to corrective action requests in a timely manner
• Root cause analysis and evidence of implemented corrective actions may be required

10. Packaging and Handling

• Products must be packaged to prevent damage, contamination, or electrostatic discharge (ESD) in transit
• Specific ESD control measures must comply with ANSI/ESD S20.20 or Cactus Materials Inc. requirements

11. Delivery and Performance Monitoring

• Suppliers are expected to deliver on time and in full (OTIF)
• Performance may be monitored and reviewed regularly for quality, delivery, and responsiveness

12. Ethical Conduct and Compliance

• Suppliers must comply with applicable laws, regulations, and ethical business practices
• This includes conflict mineral compliance (Dodd-Frank Act), environmental regulations (RoHS, REACH), and anti-bribery laws

13. Flow-down Requirements

• Suppliers must flow down applicable requirements to their sub-tier suppliers, including customer and regulatory requirements