Trading conditions of FeroStal

Trading conditions are an integral part of the purchase agreements negotiated by FeroStal Inc. with third parties for the sale of goods.

I.

Subject of individual purchase contracts

1. The subject of each purchase contracts will be metallurgical material sold by FeroStal Inc., 'the goods'.
2. Basic duties of FeroStal Inc. from the individual sales contract is to supply the agreed goods and the primary obligation of the buyer is to take over the goods and pay the purchase price.
3. By ordering goods the buyer is obliged to indicate and sustain who is entitled to buy for him from FeroStal Inc., ie to take over supplying goods eventually to conclude the purchase contract. If they do not do so or if these persons are not specified in the enclosure of the contract about a trade cooperation, they have to ensure that the purchasing person or even taking over the goods, was equipped with a valid power of attorney. (In case that they will not do so, it is valid that the person who will hand in the original buyer's order to FeroStal Inc. is authorized to purchase goods from FeroStal for buyer and that who is willing to take over the goods from FeroStal and to confirm it, is entitled to do it for the buyer.) Therefore the buyer is obliged to hand in a valid abstract of Commercial Reister or the trade licence while concluding the purchase contract.

II.

Characteristics of goods

1. If there was no specific contract of sale otherwise agreed, the FeroStal as required to deliver the goods in quality and design that is suitable for the purpose for which such goods are usually used.

2. Delivered goods will be packaged in the manner customary for such goods in trade with regard to the place of delivery of goods and means of transport so as to ensure the preservation and protection of goods.

3. FeroStal and confirms that it has sold the products covered by the Act. No. 22/1997 Coll. and relevant government regulations, issued a declaration of conformity.

4. Given the nature of the goods is the quantity of goods is theoretically the difference between the amount so determined and the quantity actually delivered and reproduced may be up to 5%. When they arrive at this tolerance, it is a good performance.

III.

Returnable packaging

1. Retro packaging means a container, which was the buyer when delivery of goods charged as a separate item.

2. In the case of goods in returnable packaging is FeroStal and undertakes to buy back packing in the corresponding number on the condition that the buyer is returned undamaged within three months from delivery. Packaging buy the charged amount will be reduced to take account of the degree of wear.

3. When returning the package, the buyer must indicate the number of tax document which he was charged for the delivery of packages.

IV.

Deadline for delivery of goods

1. Goods are delivered upon its receipt by the buyer or the seller to the buyer to deal with him or surrender to the first carrier the buyer.

V.

Place of delivery

1. If the Parties agree to ensure FeroStal and dispatch of goods to the buyer. If it is not a place where goods are to be sent in a single purchase agreement stated, it is considered that post office facility and the buyer unless stated office premises, it is considered that post office buyer. If the place of delivery is not available commonly used by truck, the buyer is obliged to draw attention to this fact FeroStal and in order.

2. The buyer is obliged to ensure the presence of a person authorized to accept the goods at the agreed time, the place of performance.

3. Person responsible for the buyer to the seller of goods is obliged to acknowledge receipt of proof of compliance, stating their names and surnames, including ID card. Confirmation document giving consent to the recording of your personal information to the buyer under special laws.

4. If the point of delivery is the seat or place of business of the seller and buyer of goods there will not be taken no later than 10 cal. days after the agreed date may FeroStal and the purchase contract.

5. Documents, enabling the purchaser to dispose of the goods, the seller must deliver the same time with him.

VI.

Retention of title

Buyer takes ownership of the delivered goods until full payment of the agreed purchase price.

VII.

The purchase price and the price for services

1. price agreed in the contract or purchase order price is fixed and can be changed only by agreement of both parties.

2. If the buyer will require the goods before the takeover rules (eg, cutting the required length or similar) and there is FeroStal entitled to reimbursement of expenses incurred by making adjustments. If FeroStal and then exercises his right to withdrawal from considerations depending on the buyer, there will it be entitled to reimbursement of expenses incurred in preparation for the buyer.

3. In the event that the goods be delivered outside of business FeroStal as has FeroStal as entitled to payment for goods transport. Unless the fee for transporting each agreed in the purchase contract has FeroStal as entitled to remuneration for the carriage of the usual time of delivery with regard to the manner and purpose of transportation.

4. In the case of a violation of the obligations under Article V, Section 2 must be a repeated supply of goods, and has FeroStal entitled to a fee for transporting the re-delivery.

5. The provisions of this contract for payment of the purchase price shall apply mutatis mutandis to the payment of remuneration for the packaging of goods in accordance with paragraph 2 and the transport of goods in accordance with paragraphs 3 and 4 of this Article and to pay remuneration for the returnable containers in accordance with paragraph 2 of Article III.

6. Buyer is not entitled to withhold from the invoice price of the reasons the claim.

7. Party framework purchase agreement (the agreement) to specifically negotiated that any dispute arising from this agreement, shall be resolved by arbitration in accordance with the law governing at the time of holding such proceedings (the date of signing the contract is the law No. 216/1994 Coll. arbitration and enforcement of arbitral awards, as amended) under the following conditions.

   In case of dispute the parties agree on an arbitrator decides the only Bachelor Karel Herber, Brno, Hus 165 / 5, Postal Code 602 00, Brno office, Rosicky 1, ZIP 602 00, or else a single arbitrator appointed by the seller when the ruling will be principles of justice.

   The place where the proceedings will take place, a specific arbitrator.Arbitration can only be done in writing and on the basis of written documents submitted by the parties, ie without an oral hearing the case and the arbitration award will be given. Parties to a contract agree that all documents in the proceedings (eg call for expression, an arbitration award or order) shall be served by one of the parties or the arbitrators hand against confirmation of acceptance by third parties against acknowledgment of receipt or by mail. If the individual served, delivered to your home address in the header of the contract. Parties to the contract declare that they are able to have registered mail at his residence at any time to pick up, if temporarily for a period of at least 7 days were unable to retrieve mail following delivery charges, shall notify the designated arbitrator or other party is an indication of alternative delivery addresses.

   In case of change of residence of the parties are obliged to declare this agreement designated the arbitrator and to notify the other party within 7 days. Sending a document issued in proceedings by an arbitration clause in the contract home address, specified in the contract or to the address notified by the designated arbitrator or other party, as stated above, is valid and effective even if some of the recommendations to the Party a letter containing such document are not collected, and after three days of storage at the post office.

   The costs of arbitration, namely fees of the arbitrator, which include its administrative costs and attorneys' fees, paid by the party which has been unsuccessful, and in such proportion as they succumbed to the dispute. The amount of costs and their distribution determined by the arbitrator in his award.

VIII.

Paying the price

1. The purchase price is payable on the date specified in the accounting and tax document - invoice.

2. The purchase price is deemed to be paid at the time the funds are credited to the account as FeroStal. or her transfer to headquarters as FeroStal.

3. In the case of Buyer's delay in paying the purchase price within the time specified by the contract negotiated by both parties a penalty of 0.05%. The contractual penalty shall be payable within 14 days of its billing.

4. The seller is entitled to require the fulfillment of the commitment to ensure the goods

   - Liability

   - Security agreement

   - Ensuring the transfer of rights

   - Commitment of Exchange

   If the buyer refuses to provide collateral, the seller is authorized to contract neuzavřít or withhold delivery until the transmission of the aforementioned documents.

5. Seller may assign its claim against the buyer to another subject. Buyer accepts the possibility of change in the person of the creditor.

IX.

Liability for defects

1. The seller is responsible for defects in the goods sold. The buyer must apply in writing to the seller defects without undue delay after the

   - Is found

   - Took over the goods

   - Defects could be found later under professional care, within two years from the receipt of goods or the right buyer from defects in the goods shall cease.

2. Claims for defective goods from the buyer are:

   - Elimination of defects in the delivery of another defective or missing goods

   - Remove the defective goods repair

   - A reasonable discount on the purchase price

3. The buyer is obligated to claim defects always writing. In the event that the seller is found responsible, then he is required within the agreed time to cure the defect so that it provides the buyer with the transaction which the parties agree in accordance with Article IX. 2nd paragraph

X.

Legal relations contract prepared by the provisions of Act No. 513/1991 Coll.Commercial Code, as amended by subsequent legislation.

Brno 1 June 2010