Pat Appleson Studios, Inc.

Terms and Conditions:

TERMS: COD unless credit arranged prior to booking. Sundays & Holidays are booked at twice daily rates. All accounts are NET 10 DAYS. Invoices not paid within 30 days will be assessed 1½% service charge per month. Any claims for adjustment must be presented to Pat Appleson Studios, Inc. herein referred to as PAS, in writing within 10 days from date of invoice. All products and materials judged to be defective by the Client must be returned to PAS before replacement is made or credit is issued. Any and all costs and expenses including attorney fees resulting from efforts to enforce collection of past due accounts will be charged to the Client.

TRANSPORTATION AND TAXES: Transportation to and from PAS shall be at Client's risk and expense. Existing and future local, state or other governmental charges for sales, manufacturing, excise and like taxes shall be added to all PAS prices where required.

CANCELLATION: Unless otherwise specified in writing, cancellation notices will be accepted ONLY if received by PAS by 10am of the day PRECEDING scheduled use; otherwise charges will be made for the facilities as ordered and scheduled. In any case a minimum charge equal to PAS published hourly rate in effect at time of cancellation will be incurred to Client.

LIENS: PAS shall have a lien on all tapes, including but not limited to; audio & video recorded media, recording media, soundtracks, raw elements, masters, graphics and materials delivered by the Client to PAS and on all tapes, films and other material made by PAS therefrom, for the balance of the account due PAS.

CLIENT MATERIALS: PAS assumes no risk for and makes no guarantees concerning the safety of Client's materials on the premises whether in production or storage.

SEVERABILITY: The invalidity or enforceability of any one or more terms or conditions shall not affect the validity or enforceability of the remaining terms and conditions.

RETURN OF CUSTOMER'S MATERIALS: PAS at its option, and on written demand of the Client made when all outstanding bills have been paid by the Client, will return Client's materials to Client at Client's expense. A nominal charge per month will be made on all Client's tapes, films and other materials that remain in the possession of PAS for over one (1) month. In the absence of written instructions from the Client to the contrary, PAS retains the right to destroy all tape, film and sound elements one year after completion of Client's work.

LIMITATIONS OF WARRANTY AND LIABILITY: Client's tapes are received, processed and stored by PAS solely at Client's risk, and PAS shall not be liable or responsible for the loss, damage or destruction of tapes or any risks of loss or destruction of tapes or any risk of loss or damage. PAS shall not be liable or responsible to Client or to any other party for any acts of omissions of any personnel furnished by PAS. PAS has not made and does not make any warranty, and has not assumed and does not assume any liability or responsibility as to the character or quality of the materials or services furnished by it or as a result of any of its undertakings. Without limiting the foregoing in any particular, PAS shall not be liable for loss of any kind whatsoever due to delays or failures in performance caused directly or indirectly by acts of God, the elements, strikes, lockouts, fire, failure of transportation, agencies, public enemy, inability to obtain or the failures of others to deliver or the delay of others in delivering necessary material, machinery or equipment, inability to obtain qualified personnel, or any other causes, whether such causes be of the same or of dissimilar kind of character. In any event the liability of PAS shall be limited to the value of the work done by PAS and its suppliers.

ATTORNEY FEES AND COSTS: In connection with any litigation arising between PAS and Client, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorney's fees in the trial and appellate courts, or arbitration.

DUPLICATE TAPES: Client shall retain a duplicate tape of all tapes and other materials delivered to PAS hereunder.

NOTICES: All notices and communications hereunder to the party at the address above.

PARAGRAPH HEADINGS: Captions of the paragraphs hereof are for convenience only and shall have no effect on the interpretation of any terms or provisions hereof.

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