General Contractual Terms and Conditions of KRÁLOVOPOLSKÁ SLÉVÁRNA, s.r.o.

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1 General Contractual Terms and Conditions of KRÁLOVOPOLSKÁ SLÉVÁRNA, s.r.o. 1. General provisions 1.1. These terms and conditions (TC) govern the sale of products and services (hereinafter as goods ) of KRÁLOVOPOLSKÁ SLÉVÁRNA, s.r.o., having its registered seat at Křižíkova 3004/68h, Brno, Postal Code ; Company Identification Number: ; entered in the Commercial Register maintained by the District Court in Brno, Section C, File (hereinafter as the Seller ) Pursuant to the applicable Purchase contract and these General Contractual Terms and Conditions, the Seller undertakes to deliver goods to the Purchaser; the type, quantity, quality and delivery deadline shall conform to the specifications stated in the Purchase contract The Purchaser undertakes to pay to the Seller the agreed-upon purchase price for the goods pursuant to the Purchase contract, properly and in due time. Unless otherwise stated in the Purchase contract, the amounts paid shall be in Czech crowns (Kč, CZK) The place of performance of the Purchase contract shall be the registered seat location of the Seller Provisions of the Purchase contract shall have precedence over the provisions of these General terms and conditions. 2. Payment and delivery conditions 2.1. The Seller has the right to fulfil its obligation regarding the goods delivery by means of partial deliveries. Individual deliveries can be realised earlier with the consent of Purchacer Goods are deemed to have been delivered whey they are accepted by the Purchaser. Should the Purchaser fail to accept the goods within five business days from the deadline for the performance of the Purchase contract and from the notification by the Seller that the goods are prepared, the goods are deemed to have been delivered. The Seller shall become entitled to charge the purchase price on the day of delivery, unless otherwise stated in the Purchase contract. The Seller is not responsible for defects of the goods that have occurred in the course of storage which cannot be avoided using the applicable storage methods on the premises of the Seller; the risk of damage to the goods shall be transferred to the Purchaser The Purchase price shall be paid upon the basis of an invoice issued by the Seller. It is due within the period of time stated in the Purchase contract. If no such deadline is specified, the Purchase price shall be due within 14 days from the date of issue. The Seller reserves the right to invoice for partial deliveries, or to arrange advance payments for goods deliveries up to 100 per cent of the price of the goods. These advance payments may be due before the commencement of any works related to the manufacture of the goods in question The purchase price specified in the concluded Purchase contract may be increased by the Seller, on a unilateral basis, in the event of a change to the weight of the goods The Purchase price specified in the concluded Purchase contract may be increased by the Seller, on a unilateral basis, in the event of a change to the costs of manufacturing caused by increased prices of electricity, gas and fuel, materials, machinery, tools, external deliveries, transportation costs, including taxes, customs etc., by more than +/- 5 %, during the period of time from the conclusion of the Purchase contract to the delivery of the goods to the Purchaser Objections regarding the issued payment document must be communicated to the Seller in writing, no later than on the due date. Payment document corrections shall not affect the originally agreed-upon due date. No attention will be paid to objections communicated after said date The purchase price is deemed to have been paid on the day the Seller s bank account is credited with the corresponding amount The Purchaser undertakes to pay a contractual penalty corresponding to 0.05 % of the purchase price for every day of default with the payment of the purchase price, provided that the Seller has specified such a penalty. Default shall refer to the failure to pay the purchase price in due time. The Seller is entitled to claim damages beyond the contractual penalty, if they are caused by the Purchaser s failure to pay the purchase price in due time. The payment of a contractual penalty is based upon the respective statement. If the Purchaser does not contest the accuracy of the statement before the due date, the contractual penalty shall be deemed to have been calculated and claimed by the Seller correctly and legitimately The Purchaser undertakes to accept the goods in the place of performance properly and in due time. The Purchaser shall indicate the takeover on the delivery note. The risk of damage to the goods shall be transferred to the Purchaser upon the takeover of the goods The transfer of the title to the goods to the Purchaser shall take place upon the payment of the purchase price in full A delivery note shall be issued for each subject matter of the performance hereunder. Aside from compulsory data, each delivery note shall bear the number of the respective Purchase contract or binding Purchase order. In

2 addition, documentation requested in the respective Purchase contract (attestations, safety data sheets, certificates etc.) must be attached The Seller shall ensure the preparation of the accompanying documentation for the Purchaser in Czech, Russian, German and English. Should the Purchaser require other language versions of the accompanying documentation, the Seller is willing to have it translated by an authorised translation agency, in which case the Purchaser shall pay the price of the translation The sending of any documentation which is not explicitly referred to in the Purchase contract, or the making of duplicates of previously submitted documentation, is subject to a fee of CZK 100 per one A4 page. The Purchaser is obliged to submit a proper order. The requested documentation will then be sent to the Purchaser, along with an invoice for the services provided according to the Purchaser s requirements The Seller is entitled, on a unilateral basis, to postpone the deadline for the delivery of goods, as stipulated by the Purchase contract, or to interrupt the production activities, should the Purchaser fail to meet the conditions regarding payments and deliveries stipulated in the concluded Purchase contract and in these General terms and conditions. The deadline shall be postponed by the number of days of the default on the part of the Purchaser. This provision does not apply only to the currently valid Purchase contract, but also to all outstanding obligations from previous contracts entered into with the Purchaser The Purchaser shall arrange for the transportation of the material on its own and at its expense. Each individual or business entity authorised by the Purchaser to take over the goods must submit a written authorisation and a proof of identification, or other document proving the right to take over the goods. The person accepting the goods shall then sign the original handover protocol and specify that he or she is an authorised person, haulier, etc. If no such document is submitted, the Seller reserves the right to refuse to hand over the goods and the Purchaser shall be obliged to pay to the Seller the damages incurred due to the failure to meet the obligations regarding identification and authorisation of the person accepting the goods The goods are generally delivered on pallets with strapping, in bundles or as goods in bulk, depending on the size and weight of the goods. Unless otherwise stated in the Purchase contract, the Purchaser undertakes to pay a packing fee of CZK 180 per pallet and CZK 1,400 per bundle. The Seller shall arrange for the loading of the goods onto a transport vehicle provided by the Purchaser; the Purchaser shall be responsible for the placing and securing of the goods Should the Seller fail to meet the agreed-upon deadline, the Seller shall be obliged to pay a contractual penalty corresponding to 0.05 % of the total value of the undelivered goods per day. If the Seller manages to realise the entire delivery within 15 days from the expiry of the date of performance, no contractual penalty shall be claimed from or charged to the Seller In the event that the Purchaser is providing its own model equipment the Purchaser is obliged to submit a certificate of conformity and to meet the deadline defined for the delivery of the model equipment in the Purchase contract. Otherwise the Seller shall not be responsible for the dimensions of the final product (goods). Should the Purchaser fail to meet the deadline the Seller shall be entitled to postpone, on a unilateral basis, the term of the delivery of the product (goods), depending on the Seller s manufacturing capacities. In the event of a requirement for guaranteed dimensions, it is possible (subject to an agreement between the Seller and the Purchaser) to carry out the gauging of the model equipment and adjustment (if necessary) at the expense of the Purchaser Should the Purchaser and the Seller mutually agree to cooperate on the goods in production, the Purchaser shall be obliged to meet the binding deadlines referred to in the Purchase contract and, when returning the unfinished goods to the Seller, the Purchaser shall make sure to have it marked properly and to hand over the related agreedupon documentation. The failure to meet the deadline or to ensure the completeness of the delivery gives rise to the Seller s right to postpone the deadline for the delivery of the final goods to the Purchaser, depending on the manufacturing capacities of the Seller. In addition, the Seller shall have the right to charge the costs incurred with respect to the delayed delivery on the grounds of an interruption of continuous manufacturing processes. Should the return of the unfinished goods by the Purchaser be delayed by more than 10 business days, the Seller has the right to charge to the Purchaser the price of the goods as per the valid Purchase contract, and the goods shall be deemed to have been delivered. Should the Purchaser request any other procedures with respect to the goods delivered, these procedures shall be treated as if they were a new order, charged separately under a new Purchase contract Goods are issued by the Seller every business day, preferably subject to a prior arrangement, no later than on 1:30 p.m. Vehicles arriving for loading after 1:30 p.m. shall be ignored and the Purchaser (or a contract haulier) must park the vehicle outside the premises of the Seller and postpone the loading to the next business day at its expense. Any other loading time must be agreed prior to loading date and time The Purchaser s model equipment can be accepted on business days, preferably subject to a prior arrangement, no later than on 1:00 p.m. The Seller may refuse, and move to the next business day, deliveries made later on the grounds of the failure to meet the conditions of acceptance. Any other dropping time must be agreed prior to loading date and time.

3 3. Liability for defects, warranty period 3.1. The Purchaser is obliged to inspect the goods immediately after takeover (typically within five business days). Should the Purchaser breach said obligation, the Purchaser may only set up claims related to visible defects found under the condition that the Purchaser is able to prove that the goods had these defects at the time of the transfer of risks. Should the Purchaser discover a defect, the Purchaser shall draw up a protocol on defects found (complaint protocol), in which the Purchaser shall specify the nature and extent of the defect, and inform the Seller about it immediately. In addition, the Purchaser shall provide to the Seller the number of the purchase order, goods specification and description and extent of the defect in question The Seller shall grant a warranty period of no more than 24 months with respect to the quality of goods. Said period shall commence on the day the goods are handed over, unless the respective Purchase contract specifies a shorter period All rights arising from defects, if not duly reported, shall cease to exist within 24 months from the day of delivery. The delivery of faulty goods shall not constitute a material breach of the contract If a notice of defects (complaint) is made by phone, fax or , it shall also be made in writing within five business days; otherwise the notice shall be deemed to have never existed The Seller shall inform the Purchaser about the extent of the documentation (photos, drawings of defects...) which is needed for the assessment of the legitimacy of the complaint. In addition, the Seller shall propose to the Purchaser the procedure and deadline for the remedy of the defect, so as to restore the error-free condition as soon as possible If requested by the Seller, the Purchaser must allow to the Seller to physically verify the legitimacy of the notice of defects Should the Purchaser discover latent defects of the goods in the course of machining process, the Purchaser is obliged to suspend the machining works immediately and to immediately send to the Seller a notice of defects. Should the Purchaser continue with the machining process without a prior binding consent of the Seller, or should the Purchaser choose to remedy the fault itself without the consent of the Seller, the notice of defect (complaint) will not be accepted and the corresponding remuneration will not be granted by the Seller The Seller shall bear the costs of the remedy of the defects only if the conditions referred to in Article 3 of these terms and conditions are fulfilled. 4. Conditions of storage and keeping of goods 4.1. Subject of storage is the model equipment kept with the Seller, including model equipment manufactured by the Seller for the Purchaser The Seller undertakes to store and safeguard the Purchaser's model equipment, in the case of which it is expected that it will be used on a regular basis to manufacture products (goods) upon the basis of future Purchase contracts between the Seller and the Purchaser. The Seller undertakes to keep this model equipment in an indoor storage facility. The Seller shall provide all services related to the model equipment on its own. The Seller is obliged to safeguard the stored model equipment and to prevent damages to the model equipment (considering the nature of said equipment and its capacities regarding damage prevention) The Purchaser acknowledges the fact that the Seller is not responsible for natural changes to the material which the model equipment is made of The Seller shall ensure due insurance of the stored model equipment only if the Purchaser has determined and provided the relevant insurance premium applicable to the stored model equipment. Should the Purchaser fail to provide the insurance premiums for individual pieces of model equipment the Seller shall be unable to ensure the due insurance of the stored model equipment and the Seller shall in no way be responsible for the stored model equipment in the event of natural disasters and damages caused by third persons The Purchaser may request from the Seller the liquidation of the model equipment for a consideration. The price and method of such liquidation shall be determined by the applicable provisions of the relevant legislation on hazardous waste disposal, i.e. CZK 8 per one kilogram of the model equipment If requested to do so by the Purchaser, the Seller is obliged to surrender the Purchaser's model equipment. The surrendering of the model equipment has suspensive effect in the event of the Purchaser's failure to pay the financial obligations related to goods or services; the effect shall last up until the payment of all obligations of the Purchaser towards the Seller. The costs of transportation of the model equipment shall in any event be borne by the Purchaser. The Purchaser undertakes to pay a packing fee with respect to the model equipment in the amount of CZK 180 per one pallet The Seller is obliged to maintain records of the storage of the model equipment. The Seller shall not use the model equipment for itself and for the benefit of third persons without the Purchaser's consent The storing of model equipment is without prejudice to the opportunity to repair the model equipment due to the general tear and wear and due to requirements related to technological adjustments. The costs of these works shall be borne by the Purchaser.

4 4.9. The Purchaser is obliged to pay a storage fee for the storage of the model equipment. Said fee shall be paid on a quarterly basis, on the basis of a statement issued by the Seller. Only model equipment which has not been used to manufacture the goods (i.e. it was not used for forming) for more than six months shall be included in this statement. Model equipment used to manufacture goods with repeated production cycle of not more than six months shall be stored by the Purchaser and the Seller's expense If any piece of the Purchaser's model equipment is not used for manufacturing purposes for longer than two years the Seller is entitled to send this model equipment to the Purchaser, at the Purchaser's expense. If this equipment is not accepted by the Purchaser, it shall be deemed to have been refused by the Purchaser. The Seller may then decide to liquidate this equipment, in which case the costs incurred shall be borne by the Purchaser, pursuant to the provisions of Article 4.5 of these General terms and conditions The model equipment storage fee will be charged depending on the gross weight of the casting in question. The fee shall be payable for each commenced calendar month, as follows: Gross weight of casting Model equipment storage fee 0 kg 100 kg CZK 100 / month 101 kg 200 kg CZK 200 / month 201 kg 500 kg CZK 300 / month 501 kg 1,000 kg CZK 600 / month 1,001 kg 2,000 kg CZK 800 / month + 2,000 kg and more CZK 1,000 / month Should a separate Contract on the storage of model equipment be entered into after 31 st October 2011, this Storage contract shall have precedence over the provisions of these General terms and conditions which govern the storage conditions In the case of a valid Contract on the storage of model equipment which is entered into before 31 st October 2011, the conditions of the storage and keeping of model equipment in these General terms and conditions shall prevail Should the Purchaser fail to accept the manufactured goods within five days from the agreed-upon delivery date the Purchaser undertakes to pay a storage fee for the storage and handling of the goods. The price of the storage and handling of the goods of the Purchaser will be charged to the Purchaser starting on the 5 th calendar day after the agreed-upon handover date. It shall amount to CZK 1,000 per one square metre of the area needed for the storage and handling of the Purchaser's goods for each commenced month. The Purchaser is obliged to pay the storage fee prior to the retrieval of the goods. 5. Final provisions 5.1. The Purchaser agrees that the Seller may name the Purchaser as a client in the Seller s business presentations and in the course of marketing programmes and activities. In addition, the Purchaser agrees that it shall become a part of the Seller s reference programme Rights and obligations of the contracting parties with respect to issues which are not explicitly covered by these terms and conditions shall be governed by the relevant generally binding legal regulations of the Czech Republic, namely the relevant provisions of the Civil Code, with the exclusion of conflicting provisions of legal regulations within the international private law which govern obligation relationships with international elements in the Czech legal system All disputes related to the fulfilment of these General terms and conditions and Purchase contracts, or to issues arising from them or in relation to them (which is to include disputes regarding invalidity) will, if they are not resolved amicably between the contracting parties, be brought before and finally decided by courts in the Czech Republic. However, the contracting parties shall make every endeavour to resolve all disputes amicably. The competent court shall be the court of general jurisdiction based on the seat of the Seller The Purchaser may not, without a prior written consent of the Seller, surrender, transfer or assign to any third person any right or obligation arising from the respective Purchase order or Purchase contract The Purchaser may not, without a prior written consent of the Seller, set off any claim towards the Seller, on the basis of a purchase order or Purchase contract, against any claim of the seller towards the Purchaser In the event of a change to ownership relations on the part of the Seller or Purchaser, the Seller and the Purchaser agree that the rights and obligations arising from the Purchase contract shall pass to the legal successor founded on the basis of the original legal entity of the Seller or Purchaser. The Seller and the Purchaser undertake to inform the other contracting party about the transfer of the aforementioned rights and obligations without undue delay and to provide proper evidence thereof The concluded Purchase contract and all changes, amendments or termination thereof, must at all times be made in writing The contracting parties are obliged to inform each other about changes to matters which affect the contents of the Purchase contract, or the performance thereof.

5 5.9. If any provision of the Purchase contract is found to be invalid, ineffective or incomplete, it shall not affect the validity or effect of the remaining provisions of the Purchase contract. The contracting parties shall enter into a written agreement, so as to replace said provision by an amendment to the contractual relationship which shall be as similar as possible to the original purpose and scope of the contract The signed Purchase contract can be rescinded only under the conditions specifically referred to by the Civil Code or the provisions of the valid Purchase contract combined with these General terms and conditions In addition, the Seller may rescind the contract if the Seller becomes aware of facts that may suggest that the Purchaser might be insolvent, e.g. sudden changes in the Purchaser s property conditions, termination of payments, unfavourable changes in ownership or partnership arrangements, default with the payment of any debt of the Purchaser, entering into liquidation or a resolution of a court regarding the arrangement of bankruptcy proceedings within the meaning of act number 182/2006 Coll., the Insolvency Act, as amended, or if a similar decision was taken pursuant to another country s jurisdiction, or if the other contracting party declares that it cannot fulfil a future obligation under the Purchase contract and the other contracting party fails to provide sufficient guarantee regarding the fulfilment of its obligation The Purchase contract shall cease to exist due to rescission, once the relevant rescission notice has been delivered to the other contracting party. The rescission shall render void all rights and obligations of the contracting parties arising from the contract, save for the right to damages, contractual penalties, costs incurred and agreed-upon severance pay in compliance with these General terms and conditions and other provisions of the Purchase contract Each party that was granted performance prior to contract rescission shall return said performance to the other party no later than within fifteen days from the expiry of the Purchase contract. In the event that any financial performance is returned, the rightful party is not entitled to an interest Should the Purchaser rescind a concluded Purchase contract the Seller is entitled to charge to the Purchaser all costs so far incurred with respect to the performance of the Purchase contract, along with severance pay in the amount of 30 per cent of the total Purchase price, as quoted in the contract, which the Purchaser would have been obliged to pay in the event of performance of the contract. The contracting parties agree that the rescission of the Purchase contract is without prejudice to the rights and obligations referred to in this paragraph The contracting parties are not obliged to fulfil their obligations arising from the mutual contractual relationship, if this non-performance has been caused by force majeure. If any contracting party is claiming to have been affected by force majeure circumstances, it must immediately (within five days) provide to the other party admissible evidence of the occurrence of force majeure. Should the effects of force majeure last more than 90 days both contracting parties shall be entitled to rescind the purchase contracts The Seller and the Purchaser undertake to keep confidential and protect from disclosure to third parties all trade secrets and confidential information provided to them by the other contracting party in the course of contract performance. The term trade secret shall apply to any information of business, production and technical nature, including drawings and designs, including any other information, facts and documents which are referred to as the subject of trade secret. The Seller and the Purchaser are obliged to keep confidential the other party s confidential information and trade secret; they must not disclose it to any third party without an express consent of the other party or use them for their own, or any third party s benefit. In addition, they shall use it only for purposes related to the performance of the respective contract. Should the Seller or the Purchaser breach the obligation to protect the other party s confidential information and trade secret, the liable party shall pay damages suffered by the other party as well as a contractual penalty in the amount of CZK 50,000 for each case of such a breach Both contracting parties declare that they are duly incorporated in the Commercial Register or that they conduct their respective business activities upon the basis of a valid trade certificate. In addition, they declare that they have so far not filed a motion to delete the company from the Commercial Register or resolution on liquidation of the company or bankruptcy petition. Furthermore, they are not aware of any other person having filed any such motion The contracting parties declare that, prior to the signature of the purchase contract; they have made themselves familiar with the General terms and conditions and read them thoroughly. In addition, they confirm that the contract was concluded as a free act and deed, not under distress or evidently onerous conditions. They declare that they find the contract understandable and that they are aware of legal consequences arising from this contract These General terms and conditions form an integral part of the purchase contract, as acknowledged by each contracting party s signature on the Purchase contract These General terms and conditions shall take effect on 1 st November 2011; they shall remain valid as long as no agreement on new terms and conditions has been concluded.

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