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TERMS OF TRADE & DELIVERY FOR TELEORDER-TRADE WITH RETAILERS

LECON^® Produkte Vertriebsgesellschaft m.b.H. / McEyewear (McEyewear in the following)

1. General: These terms are obligatory for present and future teleorder-trade transactions between McEyewear and retailers, even, if there is not explicitly refered to. They are integrated part in all wholesale trade agreements with McEyewear. Declarations to the contrary from the side of the orderer are legally ineffective, even if they remain uncontradicted by McEyewear. Purchase terms of the orderer are explicitly excluded. All informations and data in our WebSite (http://www.lecon.com/McEyewear), in any official catalogue or product description et al. are made with reservation of modifications in production and can be changed without previous announcement. Errors reserved. The true colour tones of the products cannot be reproduced in publishing. Changes in colour reserved. Drawings and photographs only serve to illustrations. Deviations reserved. All offers by McEyewear are without engagement as far as they are not characterized as binding.

2. Orders: Orders are accepted by 1) Internet-submission of the online Orderform for Retailers, 2) by submission of the Orderform for Retailers to Print and Fax to McEyewear at +43 1 405 74 71, or 3) by submission of the Orderform for Retailers to Print and Mail to McEyewear, Lecon Produkte Vertriebs GmbH, Feldgasse 1, A-1080 Vienna, Austria, Europe. Submitted orders are accepted not before transmission of a confirmation of order by McEyewear, or 4) by personal handing over the orderform to an authorized representative of McEyewear. Within 3 days after receipt of the confirmation of order, any reclamation at prices or performance as declared in the confirmation of order has to be stated to McEyewear in writing by 1) e-mail to: lecon@EUnet.at, by 2) Fax to: +43 1 405 74 71, or by 3) mail to: Lecon Products Austria GmbH. / McEyewear Fashion, Feldgasse 1, A-1080 Vienna, Austria, Europe. Afterwards the confirmation´s details explicitly effect as being due. Prices are decisive as designated in the confirmation of order. Oral additions or such by e-mail, Fax, mail, phone et al. and any modifications need a subsequent confirmation by McEyewear in writing for their validity.

3. Prices: Our Ex Eorks Pricelist for Retailers as made known to the orderer by McEyewear in ATS Austrian Shillings exclusive VAT, shipping additional and transport insurance. All prices with reservation to changes, errors or misprints. Taxes and duty are on the orderer´s debit. Any duty and import turnover tax depending on the orderer´s shipping address is regularly collected after delivery by post-men. Extra charges resulting on subsequent changes or additional requests of the orderer are accounted seperately.

4. Payment: Retailers may choose between the payment options at the Orderform for Retailers: 1) T/T Telegraphic Transfer, 2) order check, 3) not negotiable cheque, 4) bank transfer / foreign remittance order or 5) CreditCard. All inland- and foreign charges in connection with theses payment options are to the orderer´s debit. Representatives are not authorized for collection.

5. Delivery: After full in-payment the ordered products are delivered by way and in time as described in the confirmation of order. Stated delivery-dates are no fixed dates. At orders comprising a number of positions, part deliveries are admissible. If no other time of delivery is mentioned in the confirmation of order, time of delivery is about 8 weeks after receipt of the irrevocable confirmed letter of credit and the confirmation of order. McEyewear meets an agreed date when the consignment within the agreed time of delivery or time of performance is brought to delivery. Acceptance of the products by the orderer asserts as approval of the delivery date. A removal into delay is suspended as far as the delay in delivery is due to circumstances McEyewear is not responsible for, as particularly force majeure, mobilization, war, warlike incidents or other worriments, delays of transport, strike or any interruption of transport. For the duration of such or the like events McEyewear is dispensed from the duty of performance in time. In general, delivery is made from stocks in Vienna, Austria, for the danger of the receiver by post or other qualified transport enterprises. Any delivery immediately has to be examined for quality and completeness. For possible insurance claims, reclamations about transport damages have to be stated to the transport enterprise immediately after receipt of delivery, and within 8 days after delivery prooved to McEyewear by registered communication in writing. After expiration of time-limit the delivered products are agreed. For security, especially at air freight-, railway freight- or forwarding-transports, defects have to be certified at the consignment-note before taking over the consignment. The orderer bears the danger of official restrictions or such by administrative law concerning the admissibility of delivery of the ordered products. The orderer is obliged to obtain foreign exchange permissions or any other administrative permissions at his costs.

6. Warranty: Complaints concerning visible defects of the delivered products have to be made within a time-limit of 8 days after receipt of the products by registered communication in writing. Within a guaranty time-limit of 6 months after delivery but immediately after discovery the orderer has the right for free product improvement for at the time of delivery not visible material- or manufactoring-defects. Redelivery of objected products needs the explicit previous agreement of McEyewear and effects on costs and danger of the orderer. The original Certificate of Genuineness and a copy of the original consignment-note must be sent with the returned product. At founded complaint within time-limit we partly or in whole exchange the product into another similar one or a product of the same kind without damages. We only exchange products we have delivered. At complaints about defects being visible or which had to be visible at the time of delivery we can only accept redelivery of objected products with unbroken Seal of Origin within 8 days after delivery. We do not guarantee for damages resulting on atypical use, e.g. mechanical impacts, or, if parts of foreign origin have been incorporated, or if repair has been made by foreign party or for defects resulting on the execution of explicit orderer´s wishes. Durability of colours and material and its compatibility with environment and health as well as other material-qualities can be guaranteed corresponding to the guaranties of our pre-suppliers. The orderer has to storage the products carefully and especially has to avoid any damages. In the case of lacking of the duty of proper care, an exchange into a similar product or the same kind of products without damages is impossible. Further claims from the side of the orderer against McEyewear are out of question. The orderer´s claim for guaranty ends not later than with the further purchase of the products and is only transferable, if the orderer is a by McEyewear authorized retailer.

7. Liability: McEyewear is not responsible for damages as far as intention or gross negligence cannot be proved. Further liability is out of question. In case of consequential damages resulting on defects, McEyewear is only responsible in cases of its intention or gross negligence. As far as no ultimate consumer comes to harm, liability for material damages accordng to product-liability-law are out of question for all enterprises participating in production and distribution of the ordered products.

8. Final terms: All agreements are subject to the law of the Republic of Austria. The apply of the UN-agreements about international ware purchase is out of question by agreement. The orderer declares that he is aware of the true value of the ordered products and that he purchases the same by special preference. Thus a contestation about shortening over the half does not take place. For any law-suits and all claims out of the business relationship with full-traders the exclusive jurisdiction of the competent court in Vienna is agreed. Should part of these "Terms of Trade and Delivery for Trade with Retailers" be invalid in whole or partially, the effectiveness of the other part is not concerned. An invalid provision shall be replaced by another valid one coming closest to the commercial object of the invalid provision. Agreements and promises diverging from these terms of wholesale trade and delivery are only valid, if effecting in writing and being signed firm-officially by McEyewear.

Valid from 1998 07 01