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TYNE ELECTRO DIESEL LTD

CONDITIONS OF BUSINESS

1. (a) "The Company" shall mean Tyne Electro Diesel Ltd.

(b) "The Customer" shall mean any person buying goods or for whom work is done and/or materials supplied under any agreement with the Company.

(c) "Statutory Rights" shall mean the rights as so defined by the Consumer Transactions (Restriction on Statements) Order 1976.

2. (a) Unless notice is given to the Company within four days of despatch of an acceptance of order by the Company, that acceptance shall be deemed correctly to represent the Customer's order in all respects.

(b) The Company shall not be obliged to accept any cancellation of a customer's order after despatch of an acceptance of order.

3. In the case of a sale to the Customer of or including items not of the Company's own manufacture, the price of such items to be paid by the Customer will be the manufacturer's price ruling at the time of the despatch of the goods.

4. The Company's terms of payment are one month net after date of invoice. The Company shall thereafter be entitled to charge the Customer interest at the rate of 2% per month on any amounts from time to time remaining due and unpaid.

5. (a) Where the Company gives the Customer an estimate of the cost of work or repairs which it is proposed the company should undertake such estimate is given upon the following terms:

(i) The Company shall not be bound to carry out the work or repairs within the estimate so given.

(ii) Where during the course of work or repairs being carried out by the Company it appears that the Company's estimate will be exceeded by 10% of the original estimate the Company shall give a revised estimate to the Customer. The Customer shall then have the option to accept such revised estimate or to instruct the Company to discontinue the work or repairs upon payment by the Customer of the Company's proper charges for work or repairs already carried out.

(b) Where no estimate has been given by the Company, the Customer shall pay the Company's proper charges for all the work and repairs carried out.

6. Except where it is expressly otherwise agreed by the Company, the Customer shall pay for all work and repairs carried out on his behalf on or before collection of items left for work or repair, and the Company shall not be obliged to deliver up possession of any items left for work or repair until payment in full has been made.

7. (a) In the case of a sale to a person dealing as a consumer as defined by the Unfair Contract Terms Act 1977, goods are supplied with the benefit of the conditions and warranties implied by Section 12-15 inclusive of the Sale of Goods Act 1893 as amended.

(b) In the case of a sale to a person dealing otherwise than as a consumer but which is not an international supply contract as defined by the Unfair Contract Terms Act 1977, goods are supplied with the benefit of the conditions and warranties implied by Section 12 of the Sale of Goods Act 1979 as amended.

(c) Subject to (a) and (b) above, all conditions or warranties, whether express or implied, statutory or otherwise are hereby excluded in the case of a sale by the Company.

(d) Except where the Company is in breach of a condition or warranty as provided by sub-clauses (a) or (b) above, the Company shall only be liable under a contract of sale for the supply of wrong or defective goods in the following circumstances and subject to the following limitations:

(i) The Company shall replace free of charge any items which are defective provided that such defects are attributable to faulty materials or faulty workmanship by the Company or to damage caused prior to such items leaving the Company's premises.

(ii) Where the sale is of or includes items not of the Company's own manufacture the Company shall at the request and expense of the Customer use its best endeavours to obtain for the Customer the benefit of any warranty, guarantee or undertaking supplied by the manufacturer of such items. In the case of such items the Company's liability shall in no case be more extensive than the liability to the Company of the person, firm or company from whom the Company obtained such items under the terms and conditions on which such items were supplied to the Company.

(iii) The Company shall not be liable for any consequential losses arising from the supply of wrong or defective goods.

(e) Nothing in the foregoing shall affect or derogate from the statutory rights of the Customer.

8. Goods agreed to be sold shall be at the Customer's sole risk from the time of delivery. All other goods, including goods accepted for work or repair by the Company shall be at the sole risk of the Customer and the Company shall not be liable for the loss or misdelivery or damage to such goods howsoever caused unless it is proved that such loss misdelivery or damage has been caused by the fraud or wilful act or default of the Company or its own servants. In such circumstances the Company's liability will not exceed the cost to the Customer of replacing or repairing the goods.

9. In the case of a contract for work and materials the Company's liability shall be limited as follows:

(a) The Company will make good without cost any defective work or repairs carried out by it or its servants or agents provided that the Company is given notice of such defective work or repairs within fourteen days of the return to the Customer of the item to which such work or repairs was carried out.

(b) In the case of a wrong or defective part or parts supplied, the Company shall without further charge to the Customer replace such wrong or defective part or parts provided that the Company is given notice of such wrong or defective part or parts within fourteen days of the return to the Customer of the item to which such wrong or defective part or parts had been fitted.

(c) Except as provided above the Company or its servants and agents shall not be liable for any loss or damage or expense arising out of or in connection with any defective work or repairs carried out by the Company or wrong or defective parts supplied by the Company, or arising out of or in connection with the Company's delay or failure to carry out any work or repairs. In particular the Company shall not be liable for any consequential losses arising from any such defective work or repairs, the supply of such wrong or defective parts, or any such delay or failure to carry out work or repair.

(d) Nothing in the foregoing shall affect or derogate from the statutory rights of the Customer.

10. The Customer warrants that he is the owner of any items left for work or repair or is the authorised agent of the owner of such items.

11. Subject to the Customer's express instructions in writing, the Company reserves to itself absolute discretion as to the time, place, method and procedure of carrying out any work or repair.

12. The Company shall be entitled in its absolute discretion to carry out any work or repair by employing or instructing any other person to perform part or all of such work or by entrusting items left for work or repair to any other person on such terms as that person may stipulate.

13. (a) Goods agreed to be sold will remain the property of the Company until all monies due to the Company from the Customer, whether in respect of goods now agreed to be sold or on any other ground whatsoever, are paid to the Company.

(b) The Customer shall hold any such goods in a fiduciary capacity as bailee thereof and shall keep such goods separate from the goods of the Customer and/or third parties and shall I mark goods agreed to be sold by the Company so as clearly to indicate that they are the property of the Company.

(c) If such goods shall, in the course of any manufacturing or other process, be mixed or combined with any other goods to form finished articles ("the Finished Articles") the Finished Articles shall upon completion of such manufacturing or other process be separated from all other products manufactured by the Customer and marked in manner described in paragraph (b) and the property in the Finished Articles shall upon such separation vest in the Company.

(d) Any proceeds of sale of such goods and/or the Finished Articles shall likewise be held by the Customer in a fiduciary capacity Upon Trust for the Company.

(e) In the event that any payment to the Customer arising from the sale of such goods or Finished Articles shall be applied in the reduction or satisfaction of any overdraft or other indebtedness of the Customer to any creditor holding any security with the result that upon commencement of any insolvency proceedings in relation to the Customer or at the time of the appointment of any Receiver or Receiver and Manager thereof the value of the security held by such creditor is in excess of the amount of the overdraft or other indebtedness (if any), the Company shall succeed to the rights of the creditor's security up to the extent of the amount then owed to the Company by the Customer or the aforementioned excess, whichever shall be the lesser.

14. (a) The Company shall have lien over any items left with it for work or repair for the payment of any amounts owing by the Customer to the Company whether in respect of that work or repair or not, together with any accrued interest and/or storage charges as hereinafter provided.

(b) When any items left for repair are ready for collection, the Company shall give notice thereof to the Customer. If any items remain uncollected for a period exceeding three months after the Company has given written notice to the Customer that such items are ready for collection, the Company shall in its discretion be entitled to charge for storage of such items at the rate of 1% per month of the Gross Value of the consignment stored until such items are collected by the Customer.

(c) If after the expiry of three months from the Customer having received such notification from the Company that items are ready for collection such items or any of them shall remain in the Company's possession whether because of the Customer's failure to collect such items or any of them or his failure or refusal to pay charges for work or repairs carried out, or interest or storage charges accrued, or any part thereof, the Company shall be entitled to sell such items or any of them and to deduct from the proceeds of sale the expenses of such sale and the amount of any charges for work and repair done, interest and storage charges accrued, before accounting to the Customer for any balance of such proceeds of sale. This right shall be in addition to any rights under the Disposal of Uncollected Goods Act 1972.

(d) Notification shall be sent by post to the Customer's residence, place of business, or other address given by the Customer and shall be deemed to have been received by him in due course of post.

15. NOTHING STATED IN THESE TERMS OF BUSINESS AFFECT THE STATUTORY RIGHTS OF THE CUSTOMER.