CONDITIONAL SALES AGREEMENT

TABLE OF CONTENTS

PAGE

PREAMBLE................................................................................................................................ 3
0.00 INTERPRETATION ................................................................................................................................. 4
0.01 Terminology.................................................................................................................................... 4
0.01.01 Agreement.................................................................................................................... 4
0.01.02 Delivery notice ............................................................................................................ 4
0.01.03 Legal Representatives ................................................................................................. 4
0.01.04 Merchandise................................................................................................................. 4
0.02 Precedence ...................................................................................................................................... 5
0.03 Jurisdiction...................................................................................................................................... 5
0.03.01 Governing Law............................................................................................................ 5
0.03.02 Presumption ................................................................................................................. 5
0.03.03 Adaptation.................................................................................................................... 5
0.03.04 Continuation or rescission .......................................................................................... 5
0.04 Miscellaneous ................................................................................................................................. 6
0.04.01 Cumulative Rights....................................................................................................... 6
0.04.02 Computation of Time .................................................................................................. 6
0.04.03 Canadian Currency ...................................................................................................... 6
0.04.04 Gender and Number .................................................................................................... 6
0.04.05 Headings ...................................................................................................................... 7
1.00 OBJECT....................................................................................................................................................... 7
2.00 TERMS OF PAYMENT............................................................................................................................ 7
2.01 Monthly Installments...................................................................................................................... 7
2.02 Compulsory Installments ............................................................................................................... 7
3.00 OBLIGATIONS OF THE VENDOR ...................................................................................................... 7
3.01 Delivery........................................................................................................................................... 7
3.02 Guarantee ........................................................................................................................................ 8
3.03 Repetition ........................................................................................................................................ 8
4.00 OBLIGATIONS OF THE PURCHASER .............................................................................................. 8
4.01 Receipt and Payment ...................................................................................................................... 8
4.02 Storage............................................................................................................................................. 8
4.03 Transfer of Risks ............................................................................................................................ 8
4.04 Insurance ......................................................................................................................................... 9
CONDITIONAL SALES AGREEMENT Page 2 of 14

4.05 Inventory ......................................................................................................................................... 9

4.06 Best Effort....................................................................................................................................... 9
4.07 Guarantee ........................................................................................................................................ 9
4.08 Respect of Laws and Standards ..................................................................................................... 9
4.09 Moving of Merchandise ................................................................................................................. 9
4.10 Register ......................................................................................................................................... 10
4.11 Inspection ...................................................................................................................................... 10
4.12 Access ........................................................................................................................................... 10
5.00 SPECIAL PROVISIONS ........................................................................................................................ 10
5.01 Inalienability ................................................................................................................................. 10
5.02 Fortuitous Act ............................................................................................................................... 10
5.03 Maintenance of the Proprietary Rights ....................................................................................... 11
6.00 GENERAL PROVISIONS...................................................................................................................... 11
6.01 Schedules ...................................................................................................................................... 11
6.02 Arbitration..................................................................................................................................... 11
6.03 Notice ............................................................................................................................................ 11
6.04 Choice of Venue ........................................................................................................................... 12
6.05 Amendment................................................................................................................................... 12
6.06 Non-Waiver .................................................................................................................................. 12
7.00 TERMINATION OF AGREEMENT ................................................................................................... 12
7.01 Without Prior Notice .................................................................................................................... 12
7.02 Upon Notice .................................................................................................................................. 13
7.03 Repossession of Merchandise...................................................................................................... 13
8.00 COMING INTO FORCE AND TERM ................................................................................................ 13
9.00 SCOPE ..................................................................................................................................................... 14
9.01 Subsequent Sales .......................................................................................................................... 14
9.02 Legal Representatives .................................................................................................................. 14

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CONDITIONAL SALES AGREEMENT entered into at ............................, judicial district of
............................, Province of Quebec, Canada.

BETWEEN: ............................, legal person, duly incorporated pursuant to the

............................ Act, having its head or registered office at ............................,
in the City of ............................, judicial district of ............................, Province of
Quebec, Canada, ............................ herein represented by ............................, its
............................ who is duly authorized to act herein;

HEREINAFTER REFERRED TO AS «THE VENDOR»;

AND: ............................, legal person, duly incorporated pursuant to the

............................ Act, having its head or registered office at ............................,
in the City of ............................, judicial district of ............................, Province of
Quebec, Canada, ............................ herein represented by ............................, its
............................ who is duly authorized to act herein;

HEREINAFTER REFERRED TO AS «THE PURCHASER».

PREAMBLE

THE PARTIES MAKE THE FOLLOWING REPRESENTATIONS:

A) THE PURCHASER wishes to purchase from THE VENDOR, on a continuous

basis, merchandise consisting of …………………… (description of merchandise);

B) THE VENDOR accepts to sell to THE PURCHASER, on the same basis, such
merchandise, via a conditional sale only, by which THE VENDOR retains the
proprietary rights on the Merchandise until full payment and subject to other
provisions for the protection of the merchandise;

C) The parties wish to apply, as needed, the terms of the Agreement to all the sales
intervening between them from the signing hereof;

D) It is the interest of the parties hereto to reduce the terms and conditions of their
understanding in a private writing or deed

E) The parties wish this writing to be construed as a contract by mutual agreement.

THE VENDOR THE PURCHASER

 THE PARTIES AGREE AS FOLLOWS:

0.00 INTERPRETATION

0.01 Terminology

The following words and phrases, when they appear in the Agreement or in any ancillary
documents, shall be interpreted or construed according to the definitions set out below,
unless there be an implicit or explicit derogation therefrom in the text:

0.01.01 Agreement

shall mean the present Agreement including its preamble, recitals and schedules, any
ancillary documents, as well as any amendments or variations made thereto from time to
time by the parties; the terms “herein”, “hereof”, “hereto”, “herewith”, “hereunder”,
“hereby” and other similar phrase or expression, when used in the Agreement, generally
refer to the Agreement as a whole rather than to a specific part thereof, unless an indication
to the contrary exists in the text.

0.01.02 Delivery notice

shall mean any note, duly completed by THE PURCHASER, accompanying the
merchandise at the moment of its delivery and indicating the mark of each unit delivered,
its model and price.

0.01.03 Legal Representatives

shall mean, in respect of each party to the Agreement, and according to the nature and
manner of constitution thereof, either the executors or liquidators of its succession, its heirs
or legatees, devisees, agents, representatives or servants.

0.01.04 Merchandise

shall mean the merchandise that is manufactured, obtained, distributed or sold by THE
VENDOR and any other merchandise or other supply of a similar nature or used for similar
purposes, whether it is manufactured or not by THE VENDOR.

THE VENDOR THE PURCHASER

0.02 Precedence

The Agreement represents and embodies the entire understanding reached between the
parties, to the exclusion of all other documents, contracts, oral promises or covenants made,
given or entered into previously or concurrently herewith, in the course of negotiations
leading up to the full performance or execution of the Agreement, which the parties hereby
declare inadmissible to be tendered as evidence to the extent that they may be liable to
amend, vary or affect in any manner whatsoever any of the provisions of the Agreement.

0.03 Jurisdiction

0.03.01 Governing Law

This Agreement, as well as the interpretation or construction thereof, the execution or

performance thereof, the application and validity thereof, as well as the effects thereof, are
subject to the applicable laws in force and effect in the Province of Quebec and in Canada,
which govern all or part of the provisions hereof.

0.03.02 Presumption

Any provision in this Agreement which is not in compliance with any applicable laws shall
be deemed to be void, unenforceable and without effect to the extent that it is prohibited by
one of the said laws. The same shall go for any clauses which are ancillary or tied to such
provision to the extent that their applicability is dependent upon such provision.

0.03.03 Adaptation

Should any provision contravene any applicable law, it shall be interpreted or construed, if
need be, in such a manner as to render it in compliance with the applicable law or, failing
which, in the manner most likely to reflect the intention of the parties without departing or
derogating from the requirements or stipulations posited by the applicable laws.

0.03.04 Continuation or rescission

Where the Agreement contains a prohibited provision, all the remaining provisions of the
Agreement shall remain valid and in effect and shall continue to bind the parties unless the
contrary provision relates to an Essential Stipulation which is unseverable from the
Agreement. As the case may be, the Agreement may be voided and the parties restored to
their previous circumstances insofar as such shall be possible, taking into account their
change in circumstances since the coming into force of the Agreement, with a view to
attaining an equivalent restitution.

THE VENDOR THE PURCHASER