Wyoming Steel Rejection Policy (Rev. 1 – 5/14/2008)

Wyoming Steel’s business is the processing and distribution of sheet steel products, in such a way as to conform to requirements and maximize value for our customers. We represent our products to the best of our ability, based on supplier certifications and Wyoming visual inspections and metallurgical testing. We strive to make deliveries when needed by our customers, and we assume that our products will be used promptly. As such, the following are the provisions of our rejection policy:

Wyoming will consider claims of the following types, provided that all applicable guidelines are met:

· Incorrect product type

· Ductility, strength or hardness issue

· Dimensional nonconformance (vs. industry standard tolerance or documented requirements)

· Shape or surface observation not conforming to documented requirements

· Coating adherence issue (if not due to a condition of sale)

· Weight discrepancy (if it exceeds 1% of the total invoice weight)

Wyoming Steel Claims Guidelines

1) Wyoming must be notified of the issue within 30 days of shipment, and prior to processing of any debit.

2) The complaint must be significant and valid, must involve material supplied by Wyoming, and must not have been caused by the customer. For example:

- CR bought as CS and having 61-B hardness isn’t a significant or valid nonconformance.

- Galv ordered as “NCT/Dry” will be prone to white rusting due to ambient humidity.

- HRP or CR ordered as “Dry” will be prone to red rusting due to ambient humidity.

- Material that is unloaded outside in precipitation of any kind does not warrant a rust claim.

3) The issue must not be one the material was sold subject to, or for which a cost adjustment was made.

4) The majority of the material involved must be returnable in its original form, with suitable tagging intact.

5) Approximately 10% of the material in question may have been processed and scrapped in the customer’s efforts to diagnose the problem and determine its extent and/or severity.

6) The customer must identify the material (via tag number or invoice number) and describe the problem.

7) The customer is expected to comply with reasonable/simple requests involved in investigating the issue.

8) Evidence is typically required, so that Wyoming can validate the claim, determine the cause, and file a claim with our supplier. Evidence may consist of: photos, samples, bad parts, gage charts, etc.

9) For issues related to formability or mechanical properties, either the material shall have been tried in the application, or the difference(s) from the expectation(s) must be large enough to clearly establish that the issue is not caused by error or uncertainty in test results. (See first example under guideline number 2.)

10) For some issues, documentation of receipt inspection findings is required, to demonstrate that the condition existed at time of delivery. This is critical for rust, handling damage, or any condition that could occur in transit or at the customer’s facility. Commercial carriers may deny claims without such evidence.

11) Wyoming’s approval is required prior to scrapping of any rejected products, and when material is scrapped, the customer is expected to credit Wyoming for the scrap value of the steel.

12) Credit will not be issued for rust if the material has been stored at the customer’s location more than 30 days or if there is evidence that the material has been exposed to moisture after delivery.

13) For some validated rejections, it may be advantageous – to both parties – to implement a concession or deviation agreement, by which the customer will retain and “work through” the material; Wyoming will consider granting a reasonable cost reduction (or partial refund) in such cases.

14) Wyoming’s liability is limited to issuing credit for unsatisfactory material and does not include costs associated with storage, downtime, processing, or other related costs from non-conforming material.

15) All claims received by Wyoming Steel Supply, Inc. will be reviewed by Sales and Quality, and final disposition (approval or denial) will be dictated by the VP of Sales. Any appeals must be submitted to the VP of Sales and/or our Owner and President – Paul Preston.

This policy has been implemented to clarify our position regarding claims for nonconforming material. Wyoming will make every effort to minimize nonconformance’s in our products. However, there may be occasional unforeseen issues, and when these arise, they should be addressed properly and expeditiously. Following the above guidelines will ensure timely disposition of the material and minimize problems associated with suspect material remaining in customer’s inventories for excessive periods of time.