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Raw Wool Certificate and Report Testing Services

1.             Application of these Terms and Definitions

1.1          These terms apply to each agreement (an “agreement”) for the
             provision of a raw wool Certificate testing service or Report testing
             service (including a related sampling service and appraisal of wool type)
             (a “testing service”).

1.2          The parties to each agreement are Australian Wool Testing Authority Ltd
             (“AWTA Ltd” or “we”) and the Client (“you”).

1.3          Any order which you place with us or receipt by you of test results after
             receiving notice of these terms constitutes acceptance of these terms.
             We must agree in writing to any additional or different term.

1.4         Consumer” means:

 (a)        an individual acquiring goods or services wholly or predominantly
            for personal, domestic or household use or consumption; or

 (b)      a person acquiring goods or services at a price not exceeding
            $40,000; or

 (c)        a person acquiring goods or services ordinarily acquired for
            personal, domestic or household use or consumption.

2.             Entire Agreement

2.1          Clause 2.2 and 2.3 shall not apply to a Consumer.

2.2          Unless agreed in writing, these are the only terms and conditions that
             apply to each agreement between us for the provision of a testing
             service.

2.3          These terms supersede and exclude all prior and other discussions,
             representations and arrangements relating to the testing service.

2.4          Where you are not a Consumer, these terms will apply to the exclusion of
             all other terms and conditions for the provision of a testing service.

2.5          We may amend these terms at any time by notifying you, including in any
             one or more of the following ways:

 (a)        printing the amended terms on our weight notes or Test Request
              forms;

 (b)           referring to the amendments and/or printing the amended terms
              in a newsletter or Fees List; or

 (c)            posting the amended terms on our internet site
              (
www.awta.com.au).

             Your continued use of our testing services after such notice will constitute
             acceptance of the amendment.

3.             Warranties, Guarantees and Liability

3.1          This clause does not apply to a Consumer with the exception that clause
             3.4 shall apply where the testing services are acquired at a price not
             exceeding $40,000 and are not of a kind ordinarily acquired for
             personal, domestic or household use or consumption.

3.2          We will carry out the testing services with due professional care and skill.

3.3          Other than the warranties contained in 3.2, to the maximum extent
             permitted by law, all warranties and guarantees expressed or implied by
             statute, common law, equity, trade, custom or usage or otherwise in
             relation to the provision of the testing services, are expressly excluded.
             Where the exclusion of any of the warranties and guarantees referred to
             in this sub-clause would be illegal, our liability for breach of such warranty
             or guarantee is limited in the manner set out in sub-clause 3.4.

3.4         AWTA’s liability for its breach of sub-clause 3.2 or a non-excludable
            consumer guarantee implied into these terms by law is limited to any one
            of the following as determined by us:

 (a)         the supplying of the testing service again; or

 (b)         the payment of the cost of having the testing service supplied
            again.

3.5          To the extent permitted by law and not withstanding anything else
             contained in these terms, where you are not a Consumer, we exclude all
             liability whatsoever to you arising out of or in any way connected with a
             testing service for any loss of profits, loss of business revenue, failure to
             realise expected profits or savings, overhead costs, loss of goodwill,
             loss of reputation, loss of value in any intellectual property, damages or
             liquidated sums payable pursuant to other agreements, other economic
             losses or any consequential or indirect losses of any kind howsoever
             arising and whether caused by breach of statute, breach of contract,
             negligence or other tort.

4.             Certificate Testing Services

4.1         Certificate testing service” means that we will certify that the test
             results are within the precision limits of the relevant IWTO Test Method.

4.2          We will provide a Certificate testing service where we supervise or
             conduct the weighing of the bales and the drawing of the samples in
             accordance with the relevant IWTO Test Method and any directly
             associated Regulations.

4.3          We will certify that the test results are within the precision limits of the
             relevant IWTO Test Method, but no other warranty is expressed or
             implied.

4.4          A Certificate will be issued, reporting the results in accordance with the
             relevant Test Method(s) and any directly associated Regulations.  On
             request, AWTA Ltd will make available sampling, weighing and/or
             testing details to any person who appears to be a bona fide bearer or
             transferee of an original Certificate or an official copy.  Photocopies and
             other reproductions are not recognised as Certificates.

4.5          A Client who requests that wool be sampled and tested must first sign a
             Declaration for IWTO Certificate Request, whereby it warrants that it will
             accurately describe the lot/s by stating the relevant IWTO Wool
             Preparation Category/ies.  We can refuse to supervise the sampling of
             wool or we can invalidate a Certificate unless you provide us with
             information that satisfies us that the wool is accurately described.  We
             are not liable for any loss you suffer if we refuse to supervise the
             sampling of wool or if we invalidate a Certificate.

4.6          Where you supply us with data relating to Mulesing Status (“MS”) or Dark
             and Medullated Fibre Risk (“DMFR”) you warrant that the declared
             information is derived from a National Wool Declaration which has been
             signed by or on behalf of the wool producer.  Where the accuracy of the
             declared information is disputed we may invalidate or cancel the relevant
             Certificate unless we are supplied with information that confirms that the
             declared information is correct.  Where we cancel a Certificate we may
             reissue it as one where the MS or DMFR is described as not declared
             (“ND”).

4.7          Subjective Appraisal

 (a)       Where we provide a subjective appraisal of the wool type based
           on an assessment of the display sample taken in accordance with
           IWTO Standards as part of the Certificate testing service we will
           provide it in the form of an AWEX-ID.  We will also provide you with
           the most current TEAM-3 processing predictions.  Our Subjective
           Appraisal Guidelines as published by us from time-to-time apply to
           each such appraisal.

(b)        We will guarantee that the AWEX-ID determined is a fair and
           adequate description of the non-measured wool characteristics as
           applied by a qualified AWEX-ID Appraiser.  This guarantee does
           not extend to any other aspect of the service including processing
           quality and/or performance.

 (c)        Any queries as to the accuracy of the AWEX-ID determined by us
           will be dealt with in accordance with the Subjective Appraisal
           Guidelines as published by us from time-to-time.  Where
           conciliation is necessary to resolve a dispute between us, it will be
           conducted by the Australian National Committee of IWTO.  Where
           conciliation is unsuccessful in resolving the dispute, the matter will
           be referred to the Australian National Committee of IWTO
           Arbitration Panel and conducted under the arbitration rules
           specified in the IWTO Blue Book.

5.             Report Testing Services

5.1          Report testing service” means that we will not certify the test results,
             but will instead issue a Report.

5.2          We will carry out a Report testing service if any of the following
             circumstances apply:

 (a)       We conduct a dark and/or medullated fibre test;

 (b)       We do not draw or supervise the drawing of the sample (in which
           case we make no warranty, implied or otherwise, as to the source
           of the sample);

  (c)      We do not perform the sampling and testing in accordance with the
          relevant IWTO Test Method and any directly associated
          Regulations, whether because:

         
(i)         we use a Test Method determined by ourselves; or
          (ii)       we use a Test Method requested by the Client.

 (d)       The Report includes test results issued by a test house other than
           AWTA Ltd.  We cannot attest to the accuracy of the test results or
           to the test procedures employed, because the test results were not
           arrived at by sampling and testing procedures under our control or
           supervision.

5.3          A test Report applies only to the sample tested, is intended to provide
             you with guidance information only and not for use in commercial
             transactions.  No responsibility can be accepted by AWTA Ltd for any
             claim which may arise from any person acting on information contained
             in the Report.

5.4          You must at all times indemnify us and our officers, employees,
             contractors and agents against any loss (including reasonable legal
             costs and expenses) or liability arising from the possession of a Report
             by a third party.

6.             Provisions Applicable to Both Certificate Testing Services and
             Report Testing Services

6.1          All sample material remaining after testing becomes our property, which
             we may use in any way.

6.2          Certificates and Reports are available in hard copy or electronic format
             under clause 10, at your option.

6.3          You must not:

 (a)        alter or allow alteration of Certificates or Reports; or

 (b)        reproduce or allow the reproduction of Certificates or Reports
           except in full.

             We disown all responsibility, to any party, in relation to a Certificate or
             Report which has been altered.

7.             Fees

7.1          We will calculate the fee according to:

 (a)         the AWTA Ltd Raw Wool Testing Fees List in force from time to
            time; or

 (b)         contract fees agreed with the Client for non-standard testing
            services.

7.2          You must pay the fees within 30 days of the end of the month in which our
             invoice is issued, unless we have agreed in writing to some other
             arrangement.  We may charge interest on overdue invoices in the
             amount fixed from time to time under the Penalty Interest Rate Act (1983)
             (Vic).

7.3          All payments must be made in Australian dollars unless otherwise
             agreed.  We will not accept credit card payment of statements.

8.             Taxes

              You must pay any tax, levy or impost imposed on the testing services
              provided under an agreement, including but not limited to any goods and
              services tax, in addition to our fees at the same time that you pay our
              fees.

9.              Delay in Meeting Service Levels

9.1          We offer 3 levels of service for IWTO Greasy Wool Core Test
             Certificates and IWTO Staple Test Certificates, Normal, Fast and
             Express, meaning that:

 (a)           Normal:     all Test Certificates available within 5 days.

 (b)           Fast:           95% of Test Certificates available within 3 days with
                                   the residue within a further 24 hours; and

 (c)            Express:   95% of Test Certificates available the following
                                   morning with the residue within 24 hours.

9.2          While we will make all reasonable endeavours to meet the service level
             selected by you, we cannot guarantee that we will do so.  We are not
             liable for any loss or claim whatsoever arising from delay in meeting a
             service level.

9.3          Even where a service level does not apply, we make all reasonable
             endeavours to complete testing services within a reasonable time from
             the receipt of the sample in the laboratory.

10.          Electronic Data Interchange

10.1       This clause applies where you use our Electronic Data Interchange
           
 (“EDI”) system to access our database of test results and other data.

10.2       While we make all reasonable endeavours to ensure that our database
             is accurate, complete and up to date, we cannot guarantee the integrity
             of the telecommunications line used to transmit the data to your
             computing system.  We are not liable for any loss arising from problems
             with the line, including your inability to access our system or due to loss
             or corruption of data.  You are responsible for the accuracy of any data
             that you transmit to us that is matched to test results.

10.3       All data is provided on the EDI system in accordance with the Wool
             Industry EDP Communications Handbook.  You are responsible for
             ensuring that your software is compatible with this format, and that it is
             capable of capturing all data.  We are not liable for any loss you suffer
             because of problems with your software or your computing system, or
             any other problem outside our control.

11.          Copyright and Use of Test Results

11.1       We retain copyright in all test results and other written material (the
             “material”) produced under an agreement, and subject to the
             confidentiality obligation set out in clause 11.2, may use it for any
             purpose.

11.2       We will keep the material confidential, except where:

 (a)        it is already in the public domain;

 (b)        we are required to disclose it by law; or

 (c)        we provide all or part of the material to a person presenting a
           Certificate or an official copy of a Certificate, in accordance with
           clause 4.4.

12.          Client’s Responsibility for Sampling Employees’ Health and
             Safety

12.1       You must take all reasonable care for the health and safety of our
             sampling employees when they are working on premises which you own
             or control.

12.2       You must at all times indemnify us and our officers, employees,
             contractors and agents against any loss (including reasonable legal
             costs and expenses) or liability arising from injury to any of our
             employees because of negligence by you or your officers, employees,
             contractors or agents.

13.          Governing Law

             Each agreement is governed solely by the law of the state of Victoria,
             Australia
.

14.          Dispute Resolution

14.1       The parties must attempt to resolve any dispute as quickly as possible.
             However, if such dispute is not resolved within 20 business days of
             notification by one of the parties to the other of the particulars of the
             dispute, before issuing proceedings at court, either one of the parties
             may refer the dispute to mediation, administered by the Australian
             Commercial Disputes Centre in accordance with its guidelines for
             commercial mediation.  Each of us must bear our own costs of the
             mediation.

14.2       Should the matter be referred to mediation under clause 14.1, neither
             one of the parties may commence court proceedings concerning a
             matter in dispute unless the matter has not been resolved within 90 days
             of the referral.

15.          Severance

             If any provision of these terms is held to be invalid or unenforceable, such
             provision will be struck out and the remaining provisions will remain in
             force.

16.          Indemnity

             You must at all times indemnify us and our officers, employees,
             contractors and agents (“those indemnified”) against any loss
             (including reasonable legal costs and expenses) or liability arising from
             any proceedings against those indemnified where such loss or liability
             was caused by:

 (a)        a breach by you of an agreement; or

 (b)        incurred by those indemnified in enforcing any rights under an
           agreement with you.

17.          Termination

             Without limiting the generality of any other clause in these terms, we may
             cease to fulfil work in progress or refuse to commence new work for you
             if you are in breach of any term of an agreement.

18.          Force Majeure

18.1       A testing service may be totally or partially suspended by AWTA during
             any period in which AWTA may be prevented or hindered from testing,
             delivery or supply through any circumstances outside our reasonable
             control or where such testing, delivery or supply is rendered materially
             more expensive by such circumstances.

18.2       Circumstances beyond the reasonable control of AWTA shall include
             without limitation, strikes, and other industrial action affecting AWTA,
             inability to obtain any necessary materials or inputs, equipment, facilities
             or services on usual terms, power or water shortage, accidents or
             breakdowns of plant, machinery, software, hardware or communication
             facilities.

18.3       AWTA shall not incur any liability to you in respect of such suspension.

19.         Sub-Contracting to External Laboratories

             We may, after notifying you, sub-contract all or part of any testing service
             to an external laboratory.  These terms (except this clause) apply to
             testing services sub-contracted as if we had performed all of the testing
             services ourselves.

20.          Waiver

             Our failure to act with respect to a breach by you or others does not
             waive our right to act with respect to subsequent or similar breaches.