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SUPPLY AGREEMENT

Supply Agreement

SUPPLY AGREEMENT | Document Parties: APPLIED DIGITAL SOLUTIONS INC You are currently viewing:
This Supply Agreement involves

APPLIED DIGITAL SOLUTIONS INC

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Title: SUPPLY AGREEMENT
Governing Law: Minnesota     Date: 5/9/2006
Industry: Communications Equipment     Sector: Technology

SUPPLY AGREEMENT, Parties: applied digital solutions inc
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Parque Tecnol+APM-gico de Andaluc+AO0-a, Avda. Juan Lopez de Pe+APE-alver, 12 M+AOE-laga. (hereinafter called RME)+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-tr style+AD0-'mso-yfti-irow:5'+AD4- +ADw-td width+AD0AIg-7+ACUAIg- valign+AD0-top style+AD0-'width:7.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0AIg-2+ACUAIg- valign+AD0-top style+AD0-'width:2.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0AIg-91+ACUAIg- valign+AD0-top style+AD0-'width:91.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-tr style+AD0-'mso-yfti-irow:6'+AD4- +ADw-td width+AD0AIg-7+ACUAIg- valign+AD0-top style+AD0-'width:7.0+ACUAOw-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal align+AD0-right style+AD0-'text-align:right'+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-WHEREAS:+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0AIg-2+ACUAIg- 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class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-2.1+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-DAC shall purchase products in accordance with the terms set forth in Clause 3 below+ADw-strong+AD4AJg-nbsp+ADsAPA-/strong+AD4-and RME shall manufacture and supply the products, in accordance with the Specifications in existence at the time of the order release. RME shall ensure that the materials procured by RME and RME+IBk-s manufacturing of the Products shall remain competitive with regard to price, quality and other terms.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-2.2+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-This Agreement shall be effective from April 26, 2006 and except as provided by clause 17 below, shall continue until June 30+ADw-sup+AD4-th+ADw-/sup+AD4- 2010.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-2.3+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-Any modification to this Agreement shall be made by written agreement between DAC and RME.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-2.4+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will be DAC+IBk-s preferred supplier of the Products for the duration of this agreement provided RME+IBk-s pricing remains market competitive. Notwithstanding the foregoing, DAC reserves the right to purchase components for the Products from any supplier/vendor including RME+IBk-s suppliers/vendors.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-2.5+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-DAC may review and audit the components used by RME and/or its suppliers for compliance with the terms and conditions of this Agreement. In connection with any such audit, DAC shall be provided with copies of any documents reasonably requested by DAC.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/p+AD4- +ADw-div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-3.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-Orders and Forecast+ADw-/span+AD4APA-/u+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/p+AD4- +ADw-div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span 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class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-3.2+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-DAC will place orders covering at least 90 days horizon.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-3.3+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-At the time of receiving the rolling forecast, RME will also order long lead time parts needed to cover the quantity indicated in the forecast for the fourth month forward 25+ACU-.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-3.4+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-DAC is committed to lead times as agreed between the parties and will therefore bear responsibility for the long lead materials defined in 3.3 above if not consumed as forecasted.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span 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style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-4.1+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME and DAC will set a formal vendor approval process with the participation of both parties.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 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+ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/p+AD4- +ADw-div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-5.1+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME shall operate a quality system to the requirements of EN ISO 9001 or agreed equivalent.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-5.2+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME shall operate a first in first out policy on all components used in the Products manufactured for DAC.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span 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style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-5.3.1+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will strive to improve the yield of all of the assembly processes involved in the manufacturing of DAC products. Any yield improvement below 4+ACU- will be shared equally between RME and DAC.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/p+AD4- +ADw-div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-6.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 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+ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will continue supporting DAC prototype build and new product introduction.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-6.2+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will continue supporting and collaborating with DAC Engineering on a daily basis to improve product performance and design and process development.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-6.3+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-A project team including at least a program manager, 2 process engineers, a test engineer, a quality engineer and a supply chain engineer will be in charge of the whole program.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-6.4+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-The program manager assigned to the project will be in charge of the coordination, monitoring and daily activities for the operations and in dealing with suppliers.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-6.5+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will provide DAC with bills of materials and general process flow information for DAC internal use and to be submitted to DAC Head Office at St Paul MN when required. These documents and its content are covered by the Confidentiality requirements in article 18 as well +ADw-strong+AD4-as+ADw-/strong+AD4- signed off RME-DAC non-disclosure agreement and cannot be transferred to others.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-6.6+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will provide a customer advocate in order to communicate DAC+IBk-s desires to the appropriate RME personnel, as required.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/p+AD4- +ADw-div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-7.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-u+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-Engineering Change Orders +IBw-ECOs+IB0APA-/span+AD4APA-/u+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/p+AD4- +ADw-div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-7.1+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will not make any changes to the Specifications without DAC written authorization. +ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-7.2+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4-+ADw-span style+AD0-'font-size:10.0pt'+AD4-If DAC issues a written Engineering Change Order (+IBw-ECO+IB0-) to the Specifications, RME will apply such ECO to the relevant Products for all subsequent deliveries.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-div+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'display:none+ADs-mso-hide:all'+AD4APA-o:p+AD4AJg-nbsp+ADsAPA-/o:p+AD4APA-/span+AD4APA-/p+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-7.3+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-DAC will be responsible to RME for the cost of components specific to DAC products made obsolete as a consequence of an ECO. If components affected by ECO are already assembled into product, DAC will accept those products already manufactured.+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-/tr+AD4- +ADw-/table+AD4- +ADw-/div+AD4- +ADw-/div+AD4- +ADw-div align+AD0-center+AD4- +ADw-table class+AD0-MsoNormalTable border+AD0-0 cellspacing+AD0-0 cellpadding+AD0-0 width+AD0AIg-100+ACUAIg- style+AD0-'width:100.0+ACUAOw-mso-cellspacing:0in+ADs-mso-padding-alt:0in 0in 0in 0in'+AD4- +ADw-tr style+AD0-'mso-yfti-irow:0+ADs-mso-yfti-firstrow:yes+ADs-mso-yfti-lastrow:yes'+AD4- +ADw-td width+AD0-24 valign+AD0-top style+AD0-'width:.25in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4AJg-nbsp+ADsAPA-/p+AD4- +ADw-/td+AD4- +ADw-td width+AD0-48 valign+AD0-top style+AD0-'width:.5in+ADs-padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-7.4+ADw-/span+AD4APA-/p+AD4- +ADw-/td+AD4- +ADw-td valign+AD0-top style+AD0-'padding:0in 0in 0in 0in'+AD4- +ADw-p class+AD0-MsoNormal+AD4APA-span style+AD0-'font-size:10.0pt'+AD4-RME will use its reasonable endeavours to mitigate such cost. All such costs shall be agreed prior to implementation of the ECO.+ADw-/span+AD4APA-/p+AD4-
 
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