INLAND NORTHWEST METALLURGICAL SERVICES INC.
STATEMENT OF LIMITED LIABILITY

(Please read carefully):

(Standards generally adopted by the Metal Treating Institute):

ALL WORK IS ACCEPTED SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:

It is recognized that even after employing all the scientific methods known to Inland Northwest Metallurgical Services Inc. (“IN-MET”), hazards still remain in metal treating and in the handling of IN-MET’s customer's material (collectively, “Heat Treat Work”). Therefore:

IN-MET’s LIABILITY TO CUSTOMER, FOR ANY CLAIM WITH REGARD TO HEAT TREAT WORK, SHALL NOT EXCEED TWICE THE AMOUNT OF IN-MET’s CHARGES FOR THE HEAT TREAT WORK PERFORMED BY IN-MET (EXCLUDING CHARGES FOR TESTING, TRUCKING, DRILLING, ETC.) ON THE MATERIAL IN QUESTION (INTENDED FIRST TO REIMBURSE FOR THE CHARGES AND SECOND TO COMPENSATE IN THE AMOUNT OF THE CHARGES), EXCEPT BY PRIOR WRITTEN AGREEMENT WITH CUSTOMER SIGNED BY THE GENERAL MANAGER OF IN-MET. UNLESS OTHERWISE DIRECTED, IN WRITING, BY THE GENERAL MANAGER OF IN-MET, THE MATERIAL IN QUESTION MUST FIRST BE RETURNED (AT CUSTOMER’S COST) TO THE IN-MET FACILITY AT WHICH THE HEAT TREAT WORK WAS PERFORMED, FOR INSPECTION AND VERIFICATION, OR THE CLAIM OF CUSTOMER WILL NOT BE HONORED.

CUSTOMER, BY CONTRACTING FOR HEAT TREAT WORK WITH IN-MET, AGREES TO ACCEPT THE LIMITS OF LIABILITY AS EXPRESSED IN THIS STATEMENT, TO THE EXCLUSION OF ANY AND ALL PROVISIONS AS TO IN-MET’S LIABILITY AS MAY BE SET FORTH IN CUSTOMER'S OWN INVOICES, PURCHASE ORDERS OR OTHER DOCUMENTS. IF CUSTOMER DESIRES THAT ITS OWN PROVISIONS AS TO IN-MET’S LIABILITY APPLY TO THE HEAT TREAT WORK TO BE PERFORMED BY IN-MET, IN-MET MUST SPECIFICALLY AGREE THERETO, IN WRITING SIGNED BY THE GENERAL MANAGER OF IN-MET. IN SUCH EVENT, A DIFFERENT CHARGE FOR IN-MET’S HEAT TREAT WORK, REFLECTING THE HIGHER RISK TO IN-MET, SHALL BE SET FORTH IN A WRITTEN AGREEMENT WITH CUSTOMER SIGNED BY THE GENERAL MANAGER OF IN-MET.

IN-MET MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY, AS TO THE PERFORMANCE OF CAPABILITIES OF THE MATERIAL AS HEAT TREATED AND/OR THE HEAT TREAT WORK. THE LIMITATION OF LIABILITY IN THIS STATEMENT IS SPECIFICALLY IN LIEU OF ANY EXPRESS OR IMPLIED WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND/OR ANY OTHER SUCH OBLIGATION ON THE PART OF IN-MET.

No claims for shortage in weight or count of material will be entertained by IN-MET unless presented in writing to IN-MET (to the attention of the General Manager of IN-MET), within five (5) working days after receipt of the material in question by Customer. Claims will neither be allowed for discoloring/brightness, cleaning, â€‹shrinkage, expansion, deformity or rupture of material by heat treating or straightening, except by prior written agreement, signed by the General Manager of IN-MET, nor in any case for rupture caused by or occurring during subsequent grinding, machining, or working.

Whenever Customer desires that IN-MET comply with detailed instructions as to any Heat Treat Work, Customer shall provide such instructions to IN-MET, in writing, and, subject to the limitation of liability set forth in this Statement, IN-MET’s responsibility therefore shall end with the carrying out of those instructions. Failure by Customer to indicate to IN-MET, plainly and correctly, in writing, the kind of material (e.g., proper alloy designation, material condition, etc.) to be treated, shall result in Customer paying an extra charge to IN-MET to cover any additional expense incurred as a result thereof, but shall not change the limitation of liability set forth in this Statement.

Customer's material treated by IN-MET is not intended to be utilized in any "utilization facility", as defined by the Atomic Energy Act of 1954, as amended, including, without limitation, nuclear reactors, nuclear fuel fabricators, nuclear waste burial sites, laboratories and the like (collectively, "Nuclear Facility"). In the event that Customer's material will be utilized in a Nuclear Facility, Customer shall execute a separate written endorsement to this Statement, in the form provided by IN-MET.

Customer agrees that Customer’s remedies with regard to the Heat Treat Work performed by IN-MET as set forth in this Statement are exclusive, and that IN-MET shall have no other liability whatsoever to Customer, in contract, tort or otherwise (including, without limitation, in negligence and strict liability actions), and/or for any direct, indirect, special, incidental and/or consequential damages, arising from any cause, matter or reason whatsoever, including, without limitation, personal injury, property damages, loss of profits, loss of production, recall and/or any other losses, costs, expenses or liabilities allegedly occasioned by the Heat Treat Work performed by IN-MET.

Customer must inspect all materials immediately upon the return of such materials by IN-MET to Customer. In any event, claims with respect to any such material must be reported to IN-MET, in writing, prior to the time that any further processing, assembling or any other work is undertaken with respect to the subject material. IN-MET’s LIABILITY TO CUSTOMER, WITH RESPECT TO ANY MATERIAL, SHALL CEASE, IN ANY EVENT, ONCE ANY FURTHER PROCESSING, ASSEMBLING OR ANY OTHER WORK HAS BEEN UNDERTAKEN ON SAID MATERIAL.

IN-MET’s liability to Customer is limited to and by the provisions of this Statement and the terms and conditions contained in the quotation/purchase order/invoice/sales acknowledgement set forth on the other side of this Statement and/or to which this Statement is attached, affixed or in which it is referenced. Any different or additional terms and conditions contained in any of Customer’s forms are hereby deemed to be a material alteration hereof and notice of objection thereto and rejection thereof is hereby given by IN-MET.

No agent, employee or representative of IN-MET is authorized to alter this Statement and/or any of the above terms and conditions, in any respect, except by a writing duly signed by the General Manager of IN-MET.

INLAND NORTHWEST METALLURGICAL SERVICES, INC.
16203 E. Marietta Ave. • Spokane Valley, WA 99216
(509) 922-7663. (800) 379-2231 • Fax (509) 922-7626