PRICE

All prices quoted include cash discount and are exclusive of taxes and s & h charges. Purchaser shall furnish to BITS an appropriate tax-exemption certificate, if applicable.

TERMS OF PAYMENT

All goods are payable COD immediately upon receipt, unless otherwise arranged. Finance charges of 1.5% per month (not to exceed maximum allowed by law) shall be applied monthly to past due accounts, Handling charges will be assessed for returned checks. In the event of Purchaser's default on payment for products purchased hereunder, Purchaser shall be responsible for all reasonable costs and expenses incurred by BITS in collection of any sums owed by Purchaser. Such reasonable costs and expenses of BITS shall include, but not limited to, reasonable attorneys' fees, plus any other costs of such action. BITS shall not be obligated to make any further deliveries to Purchaser.

DELIVERY

Shipment of all products shall be FOB BITS Technical Corp. In the event of carrier's damage, loss, or misdelivery of product, it shall be the responsibility of the Purchaser to deal with the carrier. In the absence of specific shipping instructions, BITS will select the method and carrier it deems best. Delivery schedules are approximate only. BITS will make every reasonable effort to deliver on time, however, BITS shall not be liable for late or lost shipments.

TITLE

Title and risk of loss or damage to product shall pass to purchaser upon delivery to carrier or Purchaser or Purchaser's Agent at FOB point. The above notwithstanding, Purchaser agrees that BITS shall retain a purchase money security interest in all products sold to Purchaser, and to all products now or hereafter acquired by Purchaser ("the collateral") and to any proceeds from the disposition of said products until the purchase price and other charge due BITS have been paid in full. Upon and default by Purchaser hereunder, BITS shall have all rights and remedies of a secured party under the Uniform Commercial Code, which rights shall be cumulative.

CHANGES AND CANCELLATIONS

Orders accepted by BITS are not subject to change or cancellation by Purchaser except with BITS's written consent AND upon payment of an appropriate charge to cover the cost or loss incurred by BITS which, unless otherwise agreed in writing, shall be not less than fifteen percent (15%) of the price of the goods subject to change or cancellation.

LIMITATION OF LIABILITY

In no event shall BITS be liable for any loss of use, revenue or anticipatory profit, or for any direct, indirect or consequential damages arising out of or connected with the sale, use or operation of goods sold.

APPLICABLE LAW

Designs, schematics, data, or other technical information supplied by BITS to Purchaser in connection with the sale of goods shall remain BITS property and be held in confidence by Purchaser. Such information shall not be reproduced or disclosed without BITS' prior written consent. The rights and obligations of the parties under this agreement shall be governed by the laws of the State Where the BITS office responsible for the sale is located.