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CONDITIONS OF SALE OF HEREFORD REWINDS LTD.

(hereinafter called the "the Seller")

1. Unless otherwise stated, quotations remain open for acceptance within 30 days from the date thereof and unless accepted within that period will be deemed to have been withdrawn. Extra charges will be made for any additions, alterations or tests ordered by the Buyer and not specified in the quotation.

2. Acceptance of quotation must be by an official order giving the necessary details. Orders may be cancelled only with the written consent of the Seller and those for goods made to special order cannot be cancelled.

3. Contracts are subject to cancellation by the Seller without notice in the event of being unable to secure labour, materials or supplies or as a result of any act of God, war, strike, lockout or other labour dispute, fire, flood, drought, or any other cause whatsoever beyond the Seller's control which renders the due performance of this contract impossible. No liability is accepted for loss arising from any delay in dispatch caused by circumstances beyond the reasonable control of the Seller.

4. The description of the goods contained in the quotation is believed to be correct as to weights, dimensions, capacity, performance and otherwise, and any error omission or misstatement found in the quotation shall not annul the sale or entitle Buyer to be discharged from the contract or to claim any compensation in respect thereof; provided that nothing herein contained shall oblige the Buyer to accept any goods which differ substantially in any way of the above mentioned respects from the goods agreed to be sold if the Buyer would be prejudiced by reason of such difference, and in the event the Buyer shall be entitled to rescind the contract and to claim repayment of the price.

5. If the contract provides that a test of the goods shall be made in the presence of the Buyer or his agent, such test shall take place at the Seller's works at the expiration of not less than seven days written notice by the Seller to the Buyer, and if the Buyer or his agent shall not duly attend at the appointed time such test shall proceed in his absence but shall be deemed to have been made in his presence and the Seller's report thereof shall be accepted by him accordingly.

6. The delivery period will commence on the date of receipt of the Buyer's official order and in accordance with the Seller's quotation. While the Seller will do his best to deliver within a stated period it reserves the right to make an additional charge to cover any increase in transport costs occurring between the date -of the quotation and the date delivery. No liability is accepted for loss arising from delay in dispatch caused by circumstances beyond the reasonable control of the Seller. The Seller reserves the right to make a storage charge at its discretion should the Buyer request a delayed delivered.

7. Unless otherwise stated, payment is to be made within 30 days from the date of invoice or receipt of goods whichever is the later. After this period, interest will be charged on overdue accounts at the rate of 21/2% per month unless otherwise agreed in writing. Unless otherwise specified in the quotation, no cash or other discount will be allowed.

8. Ownership of and property in the goods shall remain in the Seller until the Buyer has paid all monies owed by it to the Seller under this or any other contract for similar goods; the risk in the goods however passes on delivery. If the goods are sold to a third party before they have been paid for in full, then the Seller has the right to the proceeds of sale to the extent of any monies due to the Seller by the Buyer and such monies shall be held in trust for the Seller. Until payment, the Buyer shall keep the goods safe and stored so as to be readily identifiable.

9. Except as herein provided, all express or implied conditions and warranties whether statutory or otherwise as to description, quality or fitness for any purpose of the goods supplied are hereby excluded. The Seller's liability (if any) in respect of any misdescription, loss or non-delivery of, damage to or defect in the goods shall be limited to repair, replacement or refund of the price and shall not extend to any claim for loss of use or consequential damage of any kind.

10. All goods found to be unsatisfactory due to any material faults and improper workmanship will be repaired or replaced free of charge within 12 months from the date of purchase. No liability under guarantee or later for any deficiency in the equipment resulting from improper use, faulty storage, insufficient care, abnormal wear and tear, or unauthorised servicing is accepted.

11. Where the contract comprises any goods to be manufactured or modified by the Seller in accordance with the specification or instruction of the Buyer, the latter shall indemnify the Seller against any liability which it may incur as a result of (a) the work carried out by the Seller in accordance with such specification or instructions as aforesaid constituting an infringement of any letters patent or other protection subsisting in favour of any person, or (b) the goods so manufactured or modified by the Seller causing loss or damage to any person or property arising out of any defect in the design or construction thereof resulting from the Seller's compliance with the specification or instructions of the Buyer aforesaid.

12. Goods not collected within 90 days of the date of invoice, or quotation, whichever applicable, will be sold to defray expenses and the Buyer shall be liable to the Seller for any shortfall or other loss arising from such sale.

13. All disputes arising out of or in connection with any Contract shall be governed by English law which shall be the proper law of the contract. Where there is any conflict between these conditions and the Buyer's conditions of purchase these Conditions shall prevail.
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