MELOON FOUNDRIES LLC

TERMS AND CONDITIONS OF SALE OF THE NON-FERROUS FOUNDRY INDUSTRY

Unless otherwise agreed in writing, all quotations are made and nonferrous castings are sold upon the following terms and conditions.

1. Quotations must be accepted and releases scheduled to the seller within thirty (30) days from date of quotation, with the additional provision that quotations are subject to any changes in metal price structure between date of quotation and date of acceptance.

2. All castings are sold as unmachined castings, with heads, gates, fins and similar extraneous metal removed to approximately the contour of the casting, F.O.B. transportation agency. Terms – thirty (30) days net from invoice date. Invoices over sixty (60) days will halt order entry, production and shipments.

3. Claims for error in weight or number must be made within ten (10) days after the receipt of castings.

4. Credit will be given for castings rejected due to foundry defects. Such castings must be reported and returned to the seller within ninety (90) days after their receipt. Credit will be given and transportation allowed for actual weight of such casting returned. Seller is not responsible for machine work, welding, inserts or chills furnished by purchaser, labor charges or any other losses or damage caused by defective castings.

5. Seller is not responsible for loss of or damage to pattern equipment by fire or other casualties beyond its control. It is the responsibility of the purchaser to carry all forms of insurance that he deems necessary.

6. The seller shall not be liable in damages for failure to deliver, and the purchaser shall not be liable in damages for failure to receive, as a result of fires, strikes, and differences with employees, accidents, or other causes beyond their control.

7. Inquires from purchasers shall give actual or estimated rough weight of castings and an accurate detailed description of pattern and core box and other equipment to be furnished. This description should indicate whether the pattern and core box is plated, gated, single, skeleton or sweep, metal or wood. When new patterns are to be made, the purchaser should submit blueprints to the seller to obtain suggestions concerning the best method for constructing the pattern equipment. Quotations will be make on purchaser’s information.

8. When quotations involve the making of piece prices, weights as nearly definite as possible shall be established and agreed upon and quotations shall be subject to revision on any variation from the established weights.

9. Should purchaser require special treatment of castings, such as heat, special analysis, chemical and physical specifications, test bars, pressure tests, x-rays, etc., his inquiry shall set forth such requirements in detail. All special treatment in excess of processes described in condition No. 2 shall be at purchaser’s expense.

10. No order shall be changed without liability unless notice of revision is made and accepted in writing before work is in process. When a change is necessary and the work is in process, purchaser is to be charged for any castings previously made, as well as cost of cores, molds or equipment discarded because of such change.

11. Cancellations of orders without liability are to be made only by mutual consent of purchaser and seller. Cancellations and/or deterred deliveries must provide for fair payment for work in process.

12. The seller is to make an effort at all times as operating conditions will permit, to furnish, as near as possible, the exact quantity specified. However, unless otherwise stipulated, the purchaser shall accept an overrun of not to exceed 10% above quantity specified on order.

13. Special production service to secure unusual deliveries not in accordance with original delivery instructions shall be given on written request and at purchaser’s expense.

14. Purchasers shall supply pattern and core box equipment in proper condition to produce the quantity and quality of castings agreed upon. All repairs and changes necessary to place equipment in proper condition shall be the purchaser’s obligation.

15. The foundry shall not be liable in any manner for loss or damage by reason of the manufacture and sale to the purchaser of any patented device or parts thereof made in accordance with drawings, designs, models or patterns furnished by the purchaser.

16. Seller is not responsible for variations existing between blueprints and pattern and core box equipment supplied by purchaser. If requested by purchaser, seller will check patterns and core box equipment with blueprints at purchaser’s expense unless otherwise agreed to by the seller.

17. All patterns, core boxes and loose pieces thereof, shall be marked properly for identification.

18. Follow boards, core driers and similar devices when required are to be furnished by purchaser.

19. All freight, drayage, boxing and crating charges on patterns, both to and from the seller, shall be assumed by purchaser.