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TERMS AND CONDITIONS

Acceptance by Southwest United Industries, Inc. (“SWU”) of this order is expressly limited to the terms and conditions contained herein. Any terms proposed by Purchaser are hereby rejected unless otherwise accepted by SWU in writing.

  1. SWU order acceptance and payment terms are subject to credit investigation and approval.
  2. Whenever SWU is provided material/parts with detailed instructions as to processing requirements, SWU
    responsibility shall end with the carrying out of the instructions.
  3. Type of material, heat treat, tolerances and specifications for processing shall be given in writing prior to processing.
  4. Unless otherwise specified in writing, SWU requires a one percent (1%) scrap allowance.
  5. The Purchaser shall retain title and risk of loss for all material/parts provided to SWU except as specifically provided
    herein or otherwise agreed to in writing by SWU.
  6. SWU liability for any cause is limited to the cost of direct labor and material of the material/parts directly damaged
    by SWU processing or two (2) times the SWU processing charges on such material/parts, whichever is the lesser.
    Charges for services are based on this policy limiting SWU liability. Only when agreed upon in writing will SWU
    assume greater liability. In such event a higher charge may be made for SWU services.
  7. Material/parts processed by SWU shall be accepted as satisfactory by you if SWU is not notified of damages,
    shortages or other discrepancies within fifteen (15) days of your receipt.
  8. Rejected material/parts must be returned to SWU for rework. Further processing or assembly of unsatisfactory
    material/parts by you or any other party shall constitute a waiver of any liability on SWU’s part.
  9. Where operations or processes performed by SWU are in the nature of "salvaging" material/parts or if the
    material/parts are to be stripped and reprocessed after being processed by others, the work is accepted on a "best
    effort" basis and no liability shall attach to SWU unless previously agreed upon in writing prior to processing the job.
    Whether or not the attempted salvage operation is successful, SWU will bill for and be paid for all time and material
    expended in this effort.
  10. In the event that results of processing operations are unsatisfactory due to metal imperfections, changes in grade or
    composition of materials, manufacturing and/or fabrication imperfections, usages for which the processing or other
    finishing operations was not reasonably designed or similar conditions over which SWU has no control, the customer
    is still liable for the contracted amount for the processing operations performed.
  11. Price breaks, if any, are for quantities of material/parts received for processing at one time.
  12. All orders are quoted f.o.b. Southwest United Industries, Inc. (either Tulsa or OKC facility), unless otherwise agreed
    upon in writing.

We believe these conditions are realistic and reasonable enabling us to provide quality metal finishing at an economical price. Your placing of orders with us shall indicate your acceptance of our limitation of liability and other provisions set forth herein.

Southwest United Industries, Inc. is an equal opportunity/affirmative action employer.
Effective Date: 08/14/06



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