PURCHASE ORDERS & ORDERING PROCEDURE

The following must be provided on all orders and/or purchase orders:

1) Company Name and Account Number

2) Bill to & ship to address ( both if different)

3) City, State and Zip Code

4) Buyer's full Name

5) Purchase Order Number (if no number use buyer name)

6) Date including time with Purchase Order

7) Vendor Payee must be: USA Laboratories, Inc., 1438 Hwy. 96, Burns, TN. 37029-5030 USA

8) Terms must be filled out completely (including Net terms)

9) Product Item Description

10) Product Item Number

11) Quantity per Product Item

12) Freight On Board (F.O.B.) Price per product

13) Extended product price

14) Purchase order total & Delivered price (if appl)

15) Backorder information (Allowed, not allowed)

16) Delivery date requested (if appl)

17) Freight On Board (F.O.B.) including all shipping requirements (ie. receiving hours or appointment times)

18) Back Haul Allowance (upon USA Laboratories approval)

19)All EDI Orders will be placed through the home office of USA Laboratories.

TERMS OF SALE

BUSINESS DOMESTIC & INTERNATIONAL: First 3 orders, Payment must be Prepaid , Wire Transfer or Letter of Credit. Credit Card or COD-cash only (must be USAL approved, COD Domestic only), then the following should be acceptable:

1) C.O.D - (contingent upon signed acceptance form) - Company Check, Cashier's Check, Money Order or Cash. (First three orders of a C.O.D. must be Cashier's Check, Money Order, or Cash). Returned checks are subject to a $25.00 assessment.

2) Prepaid - Money Order, Cashier's Check, or Company Check. (if approved)

3) Credit Card - Master Card, Visa, Discover & American Express (if approved).

4) Net Terms - Applicable only upon approved credit application with guarantor or Bank Letter of Credit approval. (Standard Net 30)

5) Wire Transfers. (please see routing instructions)

 INVOICING

Invoices are enclosed with orders unless otherwise instructed. Invoices are payable upon receipt unless terms have been previously arranged. Balance not paid by due date will accrue a service charge of 2% per month computed on the beginning balance of each month, 24% annual rate or the maximum allowed by law which ever is greater. In the event it becomes necessary to resort to a collection for payment, all reasonable attorneys' fees including penelties and interest will be paid by the customer. USAL's liability is limited to the amount of the invoice. USAL in no event shall be liable for consequential damages sustained by buyer or customer/user.

 SHIPPING POLICY

USAL's best efforts are made to ship all orders the same day that we receive them (unless otherwise noted). To expedite same day shipment, orders must be received by 12:00 Noon Central Standard Time. A 21 business day lead time for special label or special production. Additional extended lead times may be required for special products or for specific accounts' needs.

Freight Charges: All freight costs will be incurred by buyer unless other arrangements have been made.

Freight Carriers: Due to corporate agreements, USA LABORATORIES, INC. has preferred carriers that it uses. If you have a preferred freight carrier, please inform us at time of ordering and include a phone number and contact person.

 DAMAGED OR MISSING MERCHANDISE

All orders are accurately picked, packed, checked and weighed prior to leaving our warehouse. It is the responsibility of the party who pays the freight bill to file a claim for damaged or missing merchandise. Immediately note and sign the delivery bill of any shortages or damages. Notify carrier within (7) days and notify your USAL account executive.

 RETURN POLICY

RETURNS OR EXCHANGES WILL ONLY BE ACCEPTED UNDER THE FOLLOWING CONDITIONS:

1) NO returns without prior authorization number.

2) No returns may be made after 30 days.

3) Returns or exchanges must be shipped prepaid.

4) Returns other than for defects will be assessed a 15% restocking fee.

5) Returns or exchanges must be free of all price stickers, handwritten prices or physical damage. Defaced products will be considered nonstockable.

6) No returns accepted on special label, private label, special production or closeout items.

USA LABORATORIES, INC. will NOT accept any merchandise returned that does not follow the above guidelines. Please make all claims through the carrier. Buyer's failure to give notice of claim within seven (7) days after receipt of said product shall constitute a waiver by buyer of all claims.

UNDER NO CIRCUMSTANCES WILL USA LABORATORIES, INC. OR ITS AFFILIATES ACCEPT ANY MERCHANDISE WITHOUT PRIOR RETURN AUTHORIZATION.

 ADVERTISING

All advertising or marketing dollars spent must be agreed upon advertising by both parties in writing and must be taken off invoice. This includes any and all forms of Dealers, Distributers, or Retailers advertising (CO- OP, Distribution, etc.).

 PRICES

DUE TO MARKET FLUCTUATIONS, PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.