STRONGA LIMITED GENERAL TERMS OF BUSINESS

Orders are accepted on condition that the following Terms of Business be accepted by the customer to the exclusion of any terms or conditions of purchase or order of the customer, and that in the event of re-sale the customer undertakes the responsibility of ensuring that the ultimate purchaser is also fully acquainted with and accepts the said terms.

1.         SPECIFICATION AND DRAWINGS: As improvements and alterations to designs are continually being carried out, the Company reserves the right to make any alterations to specifications without notice. Unless specially stated, drawings are not be considered binding in respect of details.

2.         DESIGNS: When supplying products modified to customers’ special requirements, every endeavor is made to meet the requirements of customers from the information supplied by them. No responsibility is accepted as to the suitability of any products for a particular purpose once an order is accepted, except under the terms of the Company's Guarantee.

3.         QUOTATIONS: All quotations are "ex works" and based on current values and are subject to acceptance within four weeks unless otherwise stated. The Company reserves the right to make variations arising from alterations in wage agreement or the price of materials, etc., prior to the delivery of the goods, and thus invoices will be rendered at prices ruling on day of collection. Products or parts offered from stock are offered subject to their remaining unsold when the Company receives the customer's order. All prices quoted to U.K. customers are subject to Value Added Tax at the rate applicable at the time of invoicing.

4.         CANCELLATION: Cancellation of orders in whole or in part cannot be accepted unless with the Company's prior written consent, and on terms that idemnify the Company against all loss. Goods returned without consent will not be accepted for credit. Delay in delivery of customers' prime movers will not constitute sufficient reason for cancellation.

5.         DELIVERY DATES: Delivery dates are estimated as closely as possible in accordance with conditions prevailing from time to time; they are subject to confirmation by the manufacturing company at the time orders are placed. Every effort will be made to adhere to the delivery estimate, but owing to the uncertainty of delivery of materials to their works, no guarantee or promise can be given in this regard. The Company accepts no responsibility of any nature for any delay in delivery howsoever arising and shall not be liable for any damages or any direct consequential or other loss or loss of profits or costs charges or expenses howsoever arising. No delay shall entitle the Customer to reject any delivery or any further installment or part of the order or any other order from the Customer or to repudiate the contract or the order.

6.         DELIVERY: LOSS OR DAMAGE IN TRANSIT: Delivery will take place when the goods are to be placed in the custody of the customer or his employee or carrier at the Company's works, and risk will thereupon pass to the customer. The Company accepts no responsibility for any loss or damage to goods, howsoever arising, after delivery has taken place, except in cases where the Company itself has agreed to undertake transport out of its works, when the Company accepts responsibility only for repair or replacement of damaged or lost goods where the cause of damage or loss was the result of the negligence of the Company's employee or agent, to the exclusion of any other liability on the part of the Company for loss, loss of profits, costs, charges or expenses, whether direct or consequential and howsoever arising, except to the extent that such exclusion is prohibited by any rule of law. Customers are strongly advised to make suitable insurance arrangements in respect of goods during transit out of the Company's works. Claim in respect of loss or damage in transit should be made direct on the carrier or transporter concerned.

7.         TITLE TO GOODS:

7.1        Ownership in the Goods will not pass to the customer until payment has been made in full.

7.2        Until payment to the Company of the total amounts owing in respect of goods the customer shall keep the goods as trustee for the Company. Nevertheless the customer is entitled to use or to resell the goods to third parties in the normal course of its business on the condition that the goods or any articles incorporating the goods and any amounts received from third parties for the goods are held by the customer as trustee for the Company pending payment in full to the Company and the customer hereby assigns to the Company all rights and claims that the customer has against any such third party.

7.3       The Company shall be entitled immediately after giving notice of its intention to repossess to enter upon the premises of the customer with such transport as may be necessary and repossess any goods or products to which it has a title hereunder. Nothing in this condition shall confer any right upon the customer to return the goods sold hereunder or to refuse or delay payment therefore unless otherwise agreed.

8.         CUSTOMER'S MATERIALS ETC., REPAIRS: While the Company takes all reasonable care of the customer's and free issue materials, parts and components, and of goods accepted for repair, the Company accepts no responsibility for any damage, distortion, faults or defects therein (howsoever arising) which appear or develop during or are caused by the work to be undertaken by the Company. Subject to availability of parts, materials and labour, the Company will be prepared to correct any such damage, distortion, faults or defects at the customer's request and expense.

9.         PAYMENT:

9.1        Unless otherwise stated in writing by the Company, payment in full for vehicles, prime mover conversions and spare parts is due on notification that they are ready for collection and before delivery or release to the customer and the Company will not hold itself responsible for delay in delivery due to non payment.

9.2        The Company reserves the right (i) to charge interest on overdue accounts at the rate of 2 per cent over Bank of England minimum lending rate and (ii) to charge for the storage

                  of vehicles and products not collected on the due date. Such rights shall be without prejudice to any right which the Company may have as a result of the customer's default.

10.       INSPECTION, TESTS and TRIALS where required before acceptance must be made at or in the neighbourhood of the Company's, work. On delivery at the gate no claim can be entertained except under the terms of the Guarantee.

11.       REFERENCES: Unsatisfactory trade references may prejudice the Company's formal acceptance of any order resulting from any quotation.

12.       CUSTOMER NOT COMPANY'S AGENT: Persons dealing in the Company's goods are not in any way legal Agents of the Company, and have not right or authority to assume any obligations on the Company's behalf, express or implied, or to bind the Company in anyway.

GUARANTEE

13.       Goods of the Company's own manufacture sold by the Company as new are guaranteed to comply with the specification or order and to be free of defective materials or faulty workmanship for a period of 12 months from the date of delivery.

14.       Goods which are covered by the above Guarantee will, within the terms of the Guarantee, be repaired, rectified or replaced, free of charge, subject to compliance with the following conditions;

14.1      The Company must be informed immediately in writing of any claim, and the relevant part, if possible, must be despatched carriage paid to the Company's works. Where this is not practicable, the Company must be given a reasonable opportunity to inspect the goods at the customer's address.

14.2      In the case of defects these must be found on inspection to be due exclusively to faulty material or bad workmanship on the Company's behalf.

14.3      The Company will accept no responsibility for the cost of dismantling and delivery to its works nor for the cost of carriage of the replaced part nor for the fitting of it to the goods.

14.4      The customer must forward to the Company on or before despatch of the part, a full and complete description of the alleged defect or failure to comply with specification together with the serial number of the product.

15.       The Company will in no circumstances accept responsibility for any defects whatsoever arising from over-loading of any vehicles (or container) misloading or specialised loads or running at excessive speeds. Further, this Guarantee shall not apply:

15.1      To goods which have been altered outside the Company's works or

15.2      To goods to which any parts or devices not sold or approved by the Company have been affixed, including bodywork which in the opinion of the Company is unsuitable.

16.       The above Guarantee does not apply to goods not of the Company's own manufacture and does not apply to parts or equipment made or supplied by other manufacturers, for example tyres, lamps, brake assemblies, electrical equipment, etc. The Company will pass on to the customer the benefit of the manufacturer's guarantee (if any) in relation to such parts and equipment so far as it is able to do so, but without itself being in any way liable in respect of such parts or equipment.

17.       The above Guarantee only applies to the first owner/user of the goods and is not assignable.

18.       Used or second hand goods are not covered by the above Guarantee. The Company is only contracting to pass on to the customer such title (if any) as it has in goods sold as used or second hand.

19.       The Company's prices are based on the assumption that the Company's liability is limited to the remedies under the above Guarantee.

20.       Any express warranty or any condition of warranty implied by law or any other claim in respect of goods (whether or not involving negligence on the part of the Company) shall cease to apply after the expiry of the warranty period and in all cases shall be limited to the enforcement of the above-mentioned rights of the customer. The Company shall not in any circumstances be liable for any damage, compensation, costs, expenses, losses or other liabilities, whether direct or consequential and any other remedy which would otherwise be available in law is hereby excluded except to the extent that such exclusion is prohibited by any rule of law.