As a members of the Metal Finishing Association of Southern California we wish to remind you of the established practices of the metal finishing industry in processing your materials. These practices have been formalized by the member of this Association as a Statement of Policy.

It is generally recognized that even after employing all the science known to us, and capable men with years of training, there still remains hazards in the electroplating and metal finishing fields. As a consequence, in order to avoid misunderstandings, we are setting forth below the terms and conditions under which your material will be accepted by us for processing:

1. Type of material, tolerances and specifications for processing shall be declared in writing prior to our processing.

2. When we are given material with detailed instructions as to treatment; our responsibility shall end with the carrying out of those, instructions. We assume no responsibility for correctness of such instructions.

3. Our liability for any cause is limited to the cost of direct labor and material of the product directly damaged by our processing or three times our processing charges on such material, whichever is the lesser. Charges for our services are based on this policy limiting our liability.

4. Liability greater than that outlined in Paragraph 3 above will be assumed by us only when so agreed in writing by us. In such event a higher charge may be made for our services.

5. Parts, materials, etc., as processed by us shall be presumed to be accepted as satisfactory by you if we are not notified in writing of damages, shortages or other discrepancies within ten working days of your receipt of the same. Rejected parts must be returned to us for rework. Further processing or assembly of rejected parts, materials, etc., by you or any other party shall constitute a waiver of any liability on our part.

6. Where operations or processes performed by us are in the nature of salvaging parts or material, the work is accepted on a "best effort" basis and no liability shall attach to us unless previously agreed upon in writing prior to processing the job.

7. In the event that results of metal finishing operations are unsatisfactory due to metal imperfections, changes in grade or composition of materials, manufacturing and/or fabrication imperfections, usages for which the plating or other finishing operation was not reasonably designed, and similar variables over which we have no control, the customer would be required to pay the contracted amount for the finishing operation performed.

8. No claim will be allowed for shrinkage, expansion, deformity, rupture or other alteration of material in finishing, except by special separate written agreement.

9. All customer's merchandise in out possession shall be subject to a general lien for all monies owing by the customer to us, whether or not due or payable, and whether or not such monies are owing to us for work, labor or services rendered, or materials or equipment used in connection with such merchandise.

10. Special tools, racks and fixtures required for the performance of the work described herein designated and built by us shall be and remain our property whether or not customer is charged for time and/or material in connection herewith.

11. During storage and transportation of customer's material, customer's containers used for delivery to us shall be used and any damage resulting from such containers shall be at the customer's risk.

We are sure you will agree with us that the conditions above set forth are realistic and reasonable and that acceptance of the material for processing subject to such conditions will permit us to continue to provide quality metal finishing at an economical price.