Specialty Metals Processing, Inc.- Limited Warranty Information

1. Limited Warranty:
   
   
   1. SMP warrants to the customer that upon the date of shipment of Customer’s Product from a SMP facility, such product will be free of defects with respect to SMP’s workmanship on the Product. SMP will process Product as specified by Customer. Commercial standards will apply (1) except as hereinafter provided, or (2) unless SMP has received, reviewed and acknowledge in writing acceptance of Customer’s own specified tolerances and standards.
   2. In the event of any nonconformity of processing with the foregoing, SMP’s sole responsibility shall be, at its sole option and expense (including the expense of freight): (1) to rework the Product to remove any defects in SMP’s workmanship, or (2) to credit the customer’s account for replacement cost of the Product, without interest, upon Customer’s transfer of title to the Product to SMP. If product is not available to be transferred to SMP, then the current scrap price for that material will be discounted from the credit. (3) If material is salvageable but needs to be reworked by another processor, then we shall either pay for the cost of the rework or credit the Customers account (whichever is greater), this includes freight costs.
   3. Replacement cost shall mean the lower of Customers cost of the product or the products fair market value on the date at the time of order. All warranty claims must be in writing along with any supporting documents that prove SMP to be at fault, and submitted by Customer to SMP not later than 180 calendar days from the date that the Product was first shipped from SMP facility. (“Warranty Term”)
   4. Once SMP has acknowledged in writing that the claim is valid, and the Customer has transferred the title of the Product to SMP, a credit will be immediately issued to the customer and their account will reflect this credit. A statement of the Customers account will be provided along with the credit issued so that Customer can acknowledge their account balance. A debit is not to be taken by the Customer on a forth coming payment. Customer is to apply the credit given by SMP to their upcoming payment. If an unauthorized debit is taken by a Customer, it could result in a hold placed on their Product.
   5. Unless otherwise specified by Customer, all shipments will be packaged in our standard manner to be protected against normal handling and freight. SMP will only provide special packaging unless specified. SMP is not responsible for any damage to Customers property during transit.
   
   
2. Limitation of Warranty:
   
   The warranty given under paragraph I. Limited Warranty shall not apply:
   
   1. If Customer does not present a claim for breach of warranty by the end of the Warranty Term (180 days)
   2. If Customer is in default of any of its obligations to SMP, including payment of any amount due hereunder or otherwise.
   3. If the Product is secondary Product * (i.e. Product that does not have written mill certification as “Prime”). This is for slitting only, and does not apply to other processes.
   4. If the Product is a 25 gauge or lighter.*
   5. On bottom side polish on any sheet or plate.* *Product as all three of the foregoing are run by SMP on a “best efforts” basis and Customer agrees to accept “as is.”
   6. If the Product is aluminum and Customer does not order it to be processed within 72 hours of its delivery to SMP’s facility or is found to be water stained after the date it is shipped from SMP’s facility.
   7. If the yield loss does not exceed at least 3% of the incoming coil weight, or
   8. If more than 10% of the coil has been processed without authorization from SMP.
   9. If supporting documents such as tags, BOL. that would prove SMP to be at fault have been destroyed or are no longer available to Customer to be presented with written claim.
   10. Not responsible for cross breaks when incoming coil does not have cores.
   11. Not responsible for finish, if no protective covering has been applied.
   
   
3. Disclaimer of Warranties and Limitation of Losses:
   
   THE WARRENTY SET FORTH IN PARAGRAPH I (AS LIMITED BY PARAGRAPH II) IS IN LIEU OF ALL OTHER WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS, IMPLIED AND/OR STATUTORY, AND ALL SUCH OTHER WARRANTIES, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED. IN NO EVENT SHALL SMP BE LIABLE FOR LOSS OR DAMAGES, WHETHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL, REGARDLESS OF THE LEGAL THEORY ASSERTED, WHETHER NEGLIGENCE, WARRANTY, STRICT LIABILITY OR OTHERWISE EXCEPT AS SPECIFICALLY PROVIDED IN PARAGRAPH I.