This excerpt taken from the RTI 10-Q filed Aug 4, 2006.
Article 5: FINANCIAL PROVISIONS
Individual Product prices, as specified in Appendix 2 (List of Products, Product Prices and Volume), are DDU IncoTerms 2000 to any destination within North America, the United Kingdom or mainland Europe specified by the Purchaser, all inclusive prices and taxes (excluding any applicable import duties or value added taxes), contractual, firm and non revisable under the Contract, except in the following cases:
(i) price revisions relating to Product technical modifications requested and approved by the Purchaser or Beneficiary Company;
(ii) price reductions agreed by the Parties in pursuance of the provisions defined in Article 5.3 (Cost Reductions);
(iii) delivery surcharge, to be agreed on a case-by-case basis, to destinations outside of North America, the United Kingdom or mainland Europe.
The price of each Product includes in particular all expenses relating to Product delivery, especially packing, packaging and transport of the Products to the place of delivery, as well as all taxes (excluding value added taxes), duties (except import duties), fees or other related contributions applicable in the Suppliers country of origin which shall be borne by the Supplier and are in consideration of the minimum shipment quantities of one thousand kilograms (1,000 kg) for billet or fastener bloom or five hundred kilograms (500 kg) for all other Materials.
The Supplier shall be responsible for the costs associated with the procurement of Sponge, on an Enabled Supplier basis, from the Purchasers allocated Sponge supplier as detailed in Appendix 10 (Raw Material Supply). Sponge shall be supplied in accordance with the Suppliers Sponge Specification and Supplier defined packaging, transportation and logistics requirements. The costs of such Sponge procurement activities are incorporated within the Product prices detailed in Appendix 2 (List of Products, Product Prices and Volume) and the Purchaser shall not be liable for any additional costs incurred unless agreed in writing between the Parties.
The currency used for invoicing and payment purposes is the United States Dollar ($ US).
The Supplier and the Purchaser shall work together in a proactive way to develop Cost Reductions. Individual Cost Reduction projects made by mutual agreement between the Supplier and the Purchaser, will detail a minimum target two percent (2%) of savings and timescales for completion.
Except in the case of EDI transmission, the Suppliers invoices shall be issued in three (3) original copies:
(i) two (2) copies of which shall be sent For the Attention of the Accounts Department of the Plant issuing the Procurement Order;
(ii) the third copy shall be sent imperatively with the Product shipping documents.
Each invoice shall bear:
(i) the designation, reference and quantity of the Products delivered, the reference number(s) of each Procurement Order;
(ii) the names and addresses of the Parties;
(iii) any price reduction and any statutory or legal indication;
(iv) amount inclusive of tax, VAT amount which will be specified as a separate line item on all invoices; and
(v) reference to this Contract Airbus/MAT/CON/353(or similar reference clearly identifying this agreement).
Unless the Products are rejected during the Counter-Acceptance, the invoices shall be by wire transfer within thirty (30) calendar days from date of invoice.
This lead time runs from the effective delivery date of the Product to the Beneficiary Companys Plant.