General Terms of Sale and Delivery

1. Conclusion of contract

These terms of Sale and Delivery shall be binding, shall constitute the entire agreement between the Parties pertaining to the subject matter hereof and shall supersede all prior agreements, understandings, negotiations and discussions, whether oral or  written.  Without limiting the generality of the foregoing, these Terms of Sale and Delivery shall govern and prevail, notwit hstanding  any  inconsistent or contradictory terms and conditions that may be stipulated by the customer in any purchase order or other document, unless the latter  are expressly accepted by ROSTA INC. (hereina fter " ROSTA" ) in writing. The contract incorporating these Terms of Sale and Delivery shall be deemed to have been entered into upon receipt of ROSTA's written confirmation stating ROSTA's acceptance of the order. All orders that are trans mitted verbally or by phone are accepted only at the customer's risk.

2. Prices and Terms of Payment

ROSTA's prices are quoted and apply to ex warehouse. For greater clarity,  risk   of  damage   and   loss   of   the   ROSTA  products the "Products"  or  "Product")  shall  pass  to  the  customer  prior   to the loading of the carrier at the loading dock of ROSTA's warehouse. Payment terms are Net 30 Days from date of invoice,  unless otherwise agreed on. All sales taxes (Goods & Services Tax and Provincial Sales Tax) are extra and shall be paid by the purchaser where applicable.

3. Delivery times

The period for delivery time shall commence once the contract has been entered into and all technical points have been settled.

The delivery time shall be reasonably extended:
if the info rmation required by ROSTA for the performance of the contract is not received in time, or if the customer subsequently changes it;
-   if agreed terms of payment are not met, letters of cred it are opened too late, or ROSTA does not receive the necessary import licences in time;
if hindrances or delays occur  which  ROSTA  cannot  prevent despite using reasonable diligence and/or which  are  beyond  ROSTA's control, regard less whether they affect the customer, or a third party, or ROSTA. Such hindrances include force maje ur e, acts or inaction of any gover nmenta l author ity, strikes, shortage  of labour, transportation facilities or necessary  materials  or  supplies, late or deficient delivery by subcontractors of raw material , semi­ finished or finished Products, breakdown  inor  the  loss of production or  anticipated  production  from  the  plant  or equipment, or the need  to scrap work  pieces due  to incorrect tolerances.

4. Delayed delivery

The customer sha ll not be entitled to claim any dama ges for delayed delivery un less such delay is clearly estab lished to be thfault  of ROSTA and then only if ROSTA is unable to substitute material of equivalent quality, failing which the maximum amount of damages claimable  shall  be ½% of  the  in voice price  of  the  delayed shipment for each  full  week of  delay commencing  after  the  first  two weeks during which  there shall be no entitlement to any such damages, to maximum total of 5% of s uch invoice price. The aforesaiamo unt  shall constitute liquidat ed damages and  the sole and  exclusive  claim and recourse of the customer for sucdelayed  delivery,  all  other claims, damages and  recourses  being hereby excluded.

5. Shipment charges

Unless prepaid shipment is expresslagreed  upon,  the  shipping costs shall be borne by the customer in conformity  with paragraph  (2). Shipment is effected at customer's risk, even if freight paid delivery is agree d on. Custo mers requiring rush air freighted shipments (due, for example to a breakdown  at  the  customers facility) from ROSTA's manufacturing facility in Europe, will  be solely responsible for all costs incurred by ROSTA to effect a nd obtain such air freighted shipment, and, in addition to $75.00  service fe e.

6. Warranties and Disclaimer

Subject to the conditions and exception set out herein  below and  to the inspection period stipulated in paragraph  9  below,  ROSTA hereby warrant  that the delivered  Products  will be free from defects in material and workmanship for a twelve (12)  month  period following delivery (hereinafter referred to as the "Warranty P!!riod"). Where delivered goods are established to be defective in material or wor kmansh ip during the Warranty Period, ROSTA shall, at ROSTA's option and cost, repair or replace the Product. If ROSTA is unable to repair or replace the  Product  within a reasonable period,  ROSTA  sha ll negotiate in good faith with the customer, an equitabll' price reduction  under  the  circumstances.  The  warranty  expires  and   is au tomatically cancelled prematurely if the customer or third party undertakes modifications or repairs to the Product or if the customer , in case of a defect, does not immediately notify ROSTA and does not take all appropriate steps to mitigate  the  damage  and  give ROSTA the opportunity to examine the Product and / or to  remedy such defect. There shall  be  excluded  from  the  warranty  and  ROSTA liabi lity any damage caused by improper installation, any non­ compliance with the operation, fitting and / or installation guidelines and  instructions  contained  in  ROSTA's  general  catalogue  iay the inst a llation  personnel of the  customer or of its own  customer-in the event of resale. There shall be likewise excluded from ROSTA's warranty and liability for defects, all deficiencies, which canhot be proved to have their origin in defective material or defective workmanship or which result from other reasons beyond ROSTA's control. The foregoing expresses ROSTA's sole warranty and liability and all other claims whatsoever are excluded and , without limiting the generality of the foregoing, all warranties implied by statute or law, including, without limitation,  any  warranty of merchantab ilitor  fitness  for  a   particular   purpose  are  expressly  excluded 1n no event , shall ROSTA be liable for any  other  direct  or  any  indirect, conse quential or incidental damages including , without limitation , damage for loss of busi ness information, loss of profits, Production interruption  and  the like.

7. Reservation of title

Title to the delivered goods shall remain with ROSTA until payment in full has been effec te d. The customer hereby acknowledges ROSTA's entitlement and consents to ROSTA's application for registration of the reserv a tion of title to property in the Product and for the registration of all purchase money and other applicable and appropr iate security interes ts to preserve ROSTA's said right  until full and complete payment of the purchase price for the Produ ct. The customer hereby grants such security interests and undertakes to execute any further document necessary to give effect }o the foregoing and to such security interests and to  permit  such registration and preservation.

8. Drawings

All drawin gs produced and supp lied by ROSTA shall remai n ROSTA's property . Reproduction in whole or in part thereof is prohibited. All ROSTA drawings shall not be disclosed or inade accessible to any third parties without ROSTA's prior express written co nsent.

9. Special designs

When executing orders for special  custom  designsROSTA  reserves the right to deliver  up  to 10% above  or  below  the  ordered  q rnntity and no cancellation of  orders  or  return  of  specia custom  Products will be accepted  under any circumsta nces.

10. Inspection and acceptance of the goods

The customer  shall  inspect the  supplied  Produ cts  within  14  days  of de livery,  and  sha ll  immediately   notify  ROSTin  writing  of   any de ficiencies. If the  customer  failto  so  inspect  aninform  ROSTA w ithin the sa id delay, the supplied Products shall be deemed to have been accepted and  to be free of any  deficiencies.

11. Place of performance and jurisdiction

These Terms of Sale and Delivery shall be construed and governed in accordance with thlaws  of  the  Province  of  Ontario  and  the  laws  of Ca nada  as  app licablh e rein, wit h the  exception of  any  laws fh e reof th at  wo  uld  render  the  laws  of   any   other   jurisdiction   app licable hereto.



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