Introduction - Brasilian Aeronautical Commission

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					                         Brazilian Aeronautical Commission Application
                                      Rules & Regulations

Introduction: If your company wants to be placed on our Suppliers Registry, the BAC asks you
to please complete and submit the enclosed application. To allow the BAC to verify this
company's capabilities and reliability, the application requires a supplier to provide considerable
information about itself and to certify certain representations to the BAC.

The BAC will endeavor to review each application in the order in which it receives it. If a vendor
has not received a reply within 45 days of receipt of its application by the BAC, the BAC asks
that it send an e-mail to to ask if a decision has been made. The BAC strongly discourages vendor
applicants from making telephone inquiries concerning the status of their application.

Those suppliers applying to be placed on the BAC's Suppliers Registry agrees to be bound by the
following rules and regulations:

1. The BAC's decision on an application shall be based on what is most advantageous to the Brazilian
Air Force
and is final.

2. Each application must contain complete and accurate responses to the application form.

3. The applicant is exclusively responsible for ascertaining the contents of its application and
also to obtain Export License and other Governmental Approvals.

4. Applicants should also provide promptly, upon request by the BAC, the following

        1   A description of the suppliers experience in supplying the Product(s).

        2   FAA-Certification and Manufacturer’s Certificate of Origin

        3   Product Quality and Quality Assurance such as the ISO 9000 standards.

        4   A copy of the suppliers audited financial statements for the two most recently
            completed fiscal years

5. The BAC shall limit its award of contracts to suppliers who have applied and been accepted by
the BAC as its Supplier.

6. A bid from any supplier not on the Registry will be rejected.

7. Only suppliers, who, in the sole determination of the BAC, meet the BAC’s Supplier Registry
Standards, will be placed on the BAC’s Supplier Registry.

8. The BAC reserves the right to use any additional criteria and the following factors in making
its determination of which suppliers to place on the Supplier Registry:
            1   CAGE CODE Number
            2   Dun & Bradstreet Number
            3   Company’s capabilities to perform the contract;
            4   Company’s documented record of quality control such as the ISO 9001:2000
            5   Company’s documented record of Quality Control inspection of work and
                correction of defects;
            6   Record of company’s fulfillment of warranties;
            7   Record of company’s FAA certifications and FAA inspections
            8   Company’s financial strength and ranking (Dun & Bradstreet Supplier
                Evaluation Report)
            9   Record of company’s performance of Brazilian and U.S. Government contracts;

9. There are certain disqualifications that the BAC will strictly apply to all vendors if any of the
following conditions exist:

   1 Application that contains information that the BAC considers to be incomplete,
     inaccurate, distorted, or potentially misleading.

   1 violations by directors, officers or employees who were convicted of violating, or pled
     nolo contendere to violating, any provision of the Federal Acquisition Regulations, the
     Truth In Negotiations Act, the False Claims Act, the Foreign Corrupt Practices Act, the
     Anti-Kickback Act and Procedures, or any securities laws concerning illegal or improper
     activity, or who was found by a court of law to have committed fraud.

   2 If the supplier, or any of its subcontractors, has been suspended or debarred from
     contracting with any agency of the U.S. Government.

   3 If the supplier, or any of its subcontractors, has been placed, on the U.S. Defense
     Department's list of "high risk" contractors, or a similar list maintained by any other
     agency of the U.S. Government.

   4 If the vendor, or any of its subcontractors is the subject of an investigation by any agency
     of the US. Government whether for civic or criminal infractions or violations.

   5 If the vendor or any of its subcontractors is reported to the FAA or the BAC to have been,
     or if the vendor or any of its subcontractors discovers they have been the recipients or
     source of "bogus" or, "suspect unapproved parts".

   6 Loss of FAA Certification or Qualification.

   7 If any party files suit against the vendor, or any of its subcontractors, for (a)
     misappropriation of trade secrets or proprietary data, (b) infringement of copyright,
     trademark/service mark, or patent, or (c) a failure to honor a contract's warranties.

10. By submitting an application the applicant agrees and commits to permit inspections
of its facilities and its records. The BAC recognizes that such inspections will not
include any portion of a company's premises for which BAC personnel do not have the
required U.S. Government security clearance and that the information it obtains from its
review of a company’s records shall be kept confidential.
11. The BAC shall not be responsible for any applicant's efforts or expenses relating to the
preparation, submittal, and review of its applications.

12. The application process and any disputes arising hereunder shall be governed by governing
laws applied to our contracts (District of Columbia’s Commercial Code), and, if further guidance
is necessary, by basic principles of the laws of Brazil, especially Law 8.666/93. Disputes must be
submitted to the Federal Court of the District of Columbia.

13. The applicant must have a representative office outside Brazil (in the USA or other country)
and must be able to receive payments in US Dollars, Euro or GBP.

Approved by:

                                                        Col Mário Luis da Silva Jordão
                                              Head of the Brazilian Aeronautical Commission in

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