GENERAL CONDITIONS OF PURCHASE

1

The terms and conditions applicable to the order shall be as set out below and shall supersede any contradictory conditions in the Seller’s tender, quote or conditions of sale unles otherwise agreed upon in writing between the Buyer and the Seller. In these condions the term goods includes services where applicable.

2

Delivery Notes and Consignment Notes of the Seller must show details of the goods convered threby. This order number must be quoted by the Seller on all documents and correspondence relating to this order. Unless otherwise stated in the order, all prices included delivery and are deemed to be firm.

3

Goods sold by weight are purchased by nett weight only.

4

The ownership and risk in the goods remain with the Seller until they are delivered at and accepted by the Buyer at the place stated for delivery in the order.

5

Subject to any settlement discounts, deductions and retentions in terms of the order, and subject to the Seller carrying out all his obligations in terms of the order, payment will, as far as possible, be made on the last day of the month following that in which delivery is made. The Buyer is entitled to deduct from any payment due to the Seller, any amounts due by the Seller to the Buyer arising from any cause whatsoever.

6

The Seller shall be responsible for packing the goods in such manner as to ensure freedom from loss or injury in transit due to faulty packaging, and the Buyer shall be entitled to recover from the Seller any loss or damage which he hs suffered arising from failure to comply with this Clause. Packing cases and packing materials shall be deemed to have been included in the purchase price and shall become the property of the Buyer.

7

The goods shall be of the qualities and sorts described and equal in all respects to the Specifications, Patterns, Samples and Drawings specified in the order or in the documentation relating to the order. Should there be no specification or sample or pattern exhibited, the goods shall be the best of their respective kinds. The goods shall at all times by subject to the approval of the Buyer. The Buyer reserves the right to conduct some inspections. The Seller shall not be relived of his obligation in and audits on the premises of the Seller should this be required. The Seller shall not be relived of his obligation in respoect of the goods by virtue of the fact that the Buyer has not objected thereto and had, in fact, been inspected by the Buyer, or by virtue of the fact that such goods had been accepted by or on behalf of the Buyer.

8

Time is of the essence of the order. Should the Seller fail to deliver the goods at the place specified in this order on or before due date, the Seller shall indemnify the Buyer against all loss or damage, direct or indirect, which the Buyer may have suffered in consequence of such failure.

9

Should the goods or any portion thereof not be delivered on or before the due date specified in the order, the Buyer shall be entitled without prejudice to any other remedy for breach of contract (a) to cancel the order, either wholly or to the extent of such default, or (b) to purchase other goods of the same or similar description, or order goods to be manufactured as the Buyer thinks fit to make good such default. Any excess of the purchase price of cost of manufacture as the case may be, over the contract price appropriate to such default or balance, shall be recoverable from the Seller, together with any damage, direct or indirect, suffered by the Buyer or the Buyer's principal, due to late delivery or non-delivery. The liability imposed on the Seller  under this Clause shall be deemed to be in addition to and not in substitution of any other liability which may incur under these conditions.

10

Goods will be accepted at the place of delivery only as regards number and condition of packages and notwithstanding any receipt that may have been given, the goods shall remain liable to rejection if not in accordance with the order. Rejected goods will be held at risk and expense of the Seller who, before such  goods are released, shall refund the purchase price and all charges incurred by the Buyer in respect of such goods. Rejected goods shall, if required by the Buyer, be replaced by the Seller immediately upon receipt of notification of rejection. Should the Seller fail within the time required by the Buyer to replace the goods, the Buyer shall be entiled to the remedy set out in Clause 9.

11

The Seller hereby indemnifies the Buyer against any claim which may be made against it for the infringement of Patent rights, Trade-Marks or protected rights in respect of goods or services  supplied. All royalties and expenses arising out of the use of such Patent rights, Trade-Marks or protected rights shall be payable by the Seller.

12

In the event of latent defects manifesting themselves within a period of twelve calendar months from the date of which the goods are commissioned into use by the Buyer, The Buyer shall without prejudice to any of its rights in terms of the order or in law, be entitled to call upon the Seller as its cost to replace such defective goods with minimum of delay.

13

The Buyer may by notice in writing cancel the order if the Seller becomes bankrupt, or makes any arrangement with his creditors,  or, being a Company, goes into liquidation either voluntary or compulsory.

14

 Failure by the Buyer to enforce any of its rights under these conditions shall not be deemed to be a variation or waiver of its  rights under these conditions, all of which rights shall remain in  the Buyer from the date of accrual of such rights.

15

Any special conditions specially endorsed elsewhere on this order shall apply notwithstanding the fact that they are in conflict with some or all of the general conditions contained herein. In such cases the general conditions shall be deemed to be cancelled and substituted by the special conditions to the extent to which they are in conflict.

16

The order shall be read, construed and performed according to the laws of the Republic of South Africa. The Buyer, at its sole discretion, may effect to settle any dispute arising by arbitration in terms of the Arbitration Ordinance of the Province nominated by the Buyer.