General Claims Policy

1. SCOPE
This general claims policy (the “Policy”) applies to all products manufactured by DEACERO, S.A.P.I. de C.V. and its affliates and subsidiaries (collectively “SELLER”) and purchased by client “Buyer”). This Policy is subject to change at any time at the sole discretion of Seller.

Buyer’s assent to this Policy shall be conclusively presumed from Buyer’s (1) receipt of Seller’s order acknowledgment without written objection sent to Seller within ten (10) days after receipt of the order acknowledgement or accepted purchase order, (2) instructing Seller to begin work or to ship any of the goods, or (3) acceptance of all or any part of the goods ordered. Seller’s acceptance of Buyer’s purchase order or commencement of performance shall not constitute acceptance of any of Buyer’s terms and conditions.

ALL CLAIMS BY BUYER ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE POLICY. TERMS ADDITIONAL TO OR DIFFERENT FROM THOSE IN THIS POLICY, INCLUDING BUT NOT LIMITED TO TERMS CONTAINED IN BUYER’S PURCHASE ORDER, ARE HEREBY REJECTED UNLESS OTHERWISE ACCEPTED BY SELLER IN WRITING.

This Policy is in addition to any terms and conditions of sale of Seller. In the event of inconsistency or discrepancy between any of such terms and conditions and this Policy, this Policy shall prevail.

2. STANDARDS AND TOLERANCES
Unless specifically agreed to in writing by Seller, all goods sold shall conform to industry standard variations and tolerances.

Requirements for dimensions, flatness, surface, coating weight, surface texture, and chemistry will be according to Buyer´s specifications accepted by Seller in advance in writing, and/or consistent with applicable industry standards, such as ASTM .

Cuando el Comprador proporcione una instrucción de diseño o requiera de algún ajuste específico para una variable del proceso de producción, el Comprador asume la responsabilidad por los defectos o problemas de rendimiento que surjan como resultado de dichas instrucciones proporcionadas por el Comprador.

3. LIMITED WARRANTY
If, within the earlier of 6 (six) months after shipment or thirty (30) days after first use, any goods furnished by Seller proves to be defective in material or workmanship upon examination by Seller, Seller will, at Seller´s sole discretion: (1) REPLACE THE DEFECTIVE GOODS AT THE POINT OF SHIPMENT FROM THE SELLER’S FACILITY, (2) REPAIR THE GOODS AT A LOCATION TO BE DETERMINED BY THE SELLER, OR (3) REPAY OF OR CREDIT AGAINST THE PURCHASE PRICE OF SUCH GOODS UPON AUTHORIZED RETURN THEREOF. Any replacement goods will be warranted against defects in material or workmanship for the unexpired portion of the warranty applicable to the particular goods.

Seller shall not be responsible for and assumes no liability for materials or workmanship or any transportation charges, labor costs or other related expense for any work performed by others in the repair or replacement of defective goods, without Seller's prior written consent.

This warranty will be voided if: (a) the goods have not been stored, installed or maintained in accordance with accepted industrial practice or any specific instructions provided by Seller; (b) the goods have been subjected to any accident, misapplication, environmental contaminant, corrosion, abrasion, abuse or misuse; (c) Buyer refuses to permit Seller to examine the goods and operating data to determine the nature of the defect claimed; or (d) any repairs, alterations or modifications are made without Seller's approval.

EXCEPT AS EXPRESSLY STATED IN THIS SECTION 3, SELLER MAKES NO ADDITIONAL WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH ARE EXPRESSLY DISCLAIMED.

4. LIMITATIONS OF LIABILITY
SELLER’S LIABILITY, WHETHER IN CONTRACT, IN TORT, UNDER WARRANTY, IN NEGLIGENCE, OR OTHERWISE, SHALL NOT EXCEED THE PURCHASE PRICE OF THE GOODS AGAINST WHICH CLAIM IS MADE, AND UNDER NO CIRCUMSTANCES SHALL SELLER BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES. IN ADDITION TO THE FOREGOING, SELLER SHALL NOT BE RESPONSIBLE FOR ANY COST SUCH AS SORTING, SAMPLING, STORAGE, FREIGHT, ADDITIONAL PROCESSING, CONSEQUENTIAL COSTS, ADMINISTRATIVE OR REPLACEMENT COST UNLESS PRE-APPROVED IN WRITING AND ALLOWED BY SELLER PRIOR TO INCURRING THE EXPENSE.

5. CLAIMS BY BUYER
All claims must be made only for substantial cause, must be in writing, and must specify the reason(s) for the claim. The failure to notify Seller of any claim within the time period specified in section 3 (Limited Warranty) above shall constitute a waiver of and bar such claim. Seller must be given an opportunity to investigate the claim before Buyer disposes of the goods. Any damaged goods shall not be returned, repaired or discarded without Seller’s written permission.

All claims shall be evaluated on the basis of technical merit in line with published policies, applicable specifications, contracts, purchase orders, and final order acknowledgements.

All claims must be entered with the appropriate information, including but not limited to:

1. Claim reason
2. Product name, description and SKU
3. Purchase Order
4. Claim documentation
5. Serial number of the goods
6. Inspection report
7. Cost of material
8. Quantity of defective goods
9. Condition and location of the goods
10. Evidence such as samples, potos, videos to be analyzed by Seller
11. Contact information

In order to effciently evaluate and process a claim, Seller retains the right to visit to investigate and/or require a representative sample of the condition, digital photos with a size reference next to the condition, or a video.

After the claim is reviewed and decision is determined by Seller, Seller´s position on the claim will be communicated to Buyer.

For approved claims, Seller will reimburse the cost of material plus the freight (to the shipped-to location of the material) only. If the goods are authorized to be scrapped as a result of an accepted claim, scrap value is expected and will be negotiated between the parties.

Unauthorized or unidentified deductions before a claim is dispositioned or settled constitute nonpayment with subsequent consequences, including, but not limited to, credit hold, shipping hold, and loss of discount privileges.

6. TECHNICAL ADVICE
Seller assumes no obligation or liability for any technical advice furnished to Buyer, including without limitation technical advice with respect to the use of Seller’s goods and services, all such technical advice being given and accepted at Buyer’s risk.

7. DISPUTES RESOLUTION
Buyer and Seller will attempt in good faith to resolve promptly through negotiation any dispute arising from or related to this Policy. If a dispute should arise, representatives of the Buyer and Seller shall meet at least once and will attempt in good faith to resolve the dispute. For such purpose, Buyer or Seller may request a meeting which shall be held within fifteen (15) days of the request at a mutually agreed upon time and place. The meeting shall be attended by representatives of each party with authority to resolve the dispute.

If Buyer and Seller are not able to conduct a meeting within said fifteen (15) day period, or if Buyer and Seller do not resolve the dispute within thirty (30) days after their first meeting, Buyer and Seller agree to submit the dispute to arbitration settled according to the rules of arbitration of the International Chamber of Commerce, by three arbitrators appointed in compliance with said rules. Place of arbitration shall be in Monterrey, Mexico and the arbitral procedure shall be carried out in Spanish language. The arbitration award shall be final and binding.

8. SEVERABILITY
Invalidity of any of the set forth in this Policy will not affect the validity of any other provision and the remaining provisions will remain in full force and effect.

9.  GOVERNING LAW
This Policy shall be governed by, construed, and enforced in accordance with the laws of Nuevo Leon, Mexico, without regard to conflict of law principles. This Policy is written in Spanish and English languages, provided that the version in Spanish language shall prevail.

10. JURISDICTION
BUYER EXPRESSLY AND IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN MONTERREY, MEXICO AND WAIVES THE RIGHT TO ASSERT THAT ANY ACTION IN ANY SUCH COURT IS IN THE IMPROPER VENUE OR SHOULD BE TRANSFERRED TO A MORE CONVENIENT FORUM.

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