TERMS AND CONDITIONS

#6 3800 19^th Street N. E.

Calgary, AB T2E 6V2

(403) 277 - 3092

1. LIMITATION OF LIABILITY: As the rates charged for services provided are never proportionate to the value of the materials entrusted to us, all materials are received, processed, printed, handled and stored by us at the risk of the Customer and we accept no responsibility for any loss or damage to such materials from any cause whatsoever.

In no event will we be liable for the loss or damage of any material delivered to us beyond the cost of replacement of the raw film involved.

We will exercise reasonable care and extend our best efforts to produce high quality work but make no warranty

nor do we assume any responsibility as to or for the character, quality, or fitness for any purpose of the material or services to be furnished or provided by us.

Without limiting the foregoing in any we shall not be liable for any loss of any kind resulting from delays or failure in performance caused by acts of God, strikes, war or any act of war, failure of transport agencies, shortages of material or labour, electrical power failure, damage, accident to, or failure to perform of, machinery and equipment, insurrection or government regulation, injury or damage to or loss of any materials delivered to us by the Customer, or any other cause.

2. OWNERSHIP OF MATERIALS: The Customer represents that he is the sole owner of materials delivered to the Laboratory and that he is the owner of all rights in connection with such material including copyrights, literary, photographic, and musical and further that all materials are free of any lien or encumbrance.

3. LABORATORY LIEN ON MATERIALS: Material delivered to us is accepted on the express understanding that we hold a lien thereon for the general balance from time to time due us from the Customer in respect of services or goods provided.

4. CONDITION OF CUSTOMER'S MATERIALS: It is understood that any material delivered to us that exhibits any unusual physical or photographic characteristics including aging, shrinkage or damage is accepted for handling with the understanding that a charge will be made for lost time and/or materials whether or not satisfactory results are achieved. Any costs arising from error on the part of the Customer in preparing his materials, particularly with regard to synchronization, or in communicating his needs, are the responsibility of the Customer.

5. DELIVERY: Materials will be shipped via the method deemed most practical by the Laboratory unless the Customer makes a request for a specific method of shipment. If the Customer wishes insurance on any shipment, such request must be made in writing. All costs connected with shipment are the responsibility of the Customer. If conditions arise which prevent compliance with a delivery schedule, the Laboratory shall not be held liable for any losses, damages, or liability arising from any delay in delivery, nor for failure to give notice of delay. Such delay shall not constitute grounds for cancellation.

6. STORAGE OF MATERIAL: The Laboratory will store Customer's material during the time of production and release printing and for a reasonable time thereafter. However, as it is not practical to provide permanent storage of the Customer's material, it will be necessary to charge $0.50 per can per month for all material stored which remains inactive beyond a 3-month period. All stored material will be kept at a location and under conditions chosen by the Laboratory and is held without insurance or warranty of any kind. It is in the best interest of the Customer to arrange for permanent storage of his materials at his earliest opportunity. It is understood that in the event of failure to pay storage fees, the Laboratory shall have the right to sell or dispose of the Customer's materials so as to recover such fees. In no event will camera original or printing masters for any given project be released to the Customer until the balance owing for services and products provided pertaining to that project is paid in full.

7. TERMS OF PAYMENT: All services and materials are provided to the Customer FOB the Laboratory with expectation of prompt payment of charges levied therefor. Terms for established accounts are net, due and payable 30 days from the date of the invoice. Beyond this due date, unpaid balances will be considered delinquent and interest will be charged at legal rates. New accounts and orders for raw camera stock are COD. The Customer agrees to pay an additional sum as reasonable legal fees and costs in the event that suit is necessary to effect collection of any sums due the Laboratory.

8. PRICING: All prices are quoted with respect to normal production footage lengths and normal and accepted standards and methods of production. It is agreed that, in the event that short lengths or non-standard materials or processes are used by the Customer, additional charges for handling of such may be levied. Unless otherwise indicated, all pricing is exclusive of Federal Sales or other tax. Any applicable taxes will be charged to the Customer. Prices are subject to change without notice. Quotations (firm for 30 days) will be made upon request. Additional services or materials not included in original quotations and services or materials from original quotations for which payment has not been received within 30 days of invoice date shall be charged for at standard rates. Estimates will be given at no charge or obligation but are non-binding, being subject to actual services and materials provided.

9. VARIATIONS AND ADJUSTMENTS: No changes in any of the above terms and conditions shall be recognized or be of any force unless made in writing and bearing both the signature of the client and that of an authorized officer of the Laboratory.

In the event that material delivered by the Laboratory is found to be defective, and if such defect is confirmed by inspection by the Laboratory, the Laboratory will, at its option, repair or replace the material without charge if notice in writing of such defect has been received from the Customer within 10 days of the delivery of the material.

10.ACCEPTANCE: By delivery of material to the Laboratory or request to provide services or material the Customer agrees to accept the terms and conditions contained above.

Price List May 2001

All orders are subject to Laboratory Terms & Conditions

Pricing, Minimums, Schedules, Terms & Conditions may be changed without notice.