Toll Processing Guidelines

When the Customer/Ship-to has processed product that is deemed non-prime, the Customer/Ship-to must provide representative samples of the defect, documentation establishing RC coil identity, quantity held and description of the problem. RC will review the documentation and samples within 30 days. RC may request to inspect the processed product at the point of manufacture, prior to disposition and removal of claim material. Reasonable opportunity to inspect the material should be made available to RC.

If RC authorizes reject coils to be returned, they will be inspected and/or reprocessed and placed in good inventory if prime. Material can only be returned to RC with a claim number issued by the RC Claims Coordinator or Field Technical Representative. The Customer will be responsible for total freight of unauthorized shipments.

To facilitate processing, debits need to include the RC claim authorization number, RC coil tag number, pounds accepted for debit, metal cost, and coating charge, itemized. Additionally, if the disposition of resale/scrap is made at the Customer/Ship-to location, resale/scrap credit should be included on the debit. Debits should be sent to Roll Coater, Inc., Accounts Receivable, 8440 Woodfield Crossing, Indianapolis, IN 46240.

RC will not be responsible for handling damage, transit damage, manufacturing setup blanks, normal head or tail losses (outer and inner wraps) and the like, which are included in accumulations. These defects are inherent to coil-supplied products produced in a continuous process, and as such are excluded from prime product claim reconciliation, PPMs or financial liability. Defects encountered within a coil at time of processing are flagged or marked, and wrapped in a main coil so as not to create a large number of small coils. The allowable weight will be identified by the Field Technical Representative.

Claims for non-warranty coating systems must be received within 1 year of processing date at RC. RC cannot accept debits, claims, rejects or returns unless accompanied by a claim number issued by the RC Claims Coordinator or a RC Field Technical Representative.

RC applies coatings in accordance with coating supplier specifications. Requests for applications that deviate from coating supplier specification parameters will be considered, but such applications will void future claims for product suitability and/or field performance.

Claims must be received within 1 year of processing date at RC, and must reflect a claim number as issued by the RC Claims Coordinator or Field Technical Representative.

All material is F.O.B. RC’s dock, both inbound and outbound. RC has no responsibility for freight cost, freight claims for damage in transit, or material liability on either inbound or outbound shipments. In order to provide timely resolution, the recipient should provide prompt notification of any paperwork discrepancies upon receipt.

RC reserves the right to refuse to load or unload any equipment and/or materials deemed unsafe.

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Effective October 1, 2001 Page 8

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