Terms and Conditions of Sale

1. The base price includes charges for outage and representative sampling, prior to purchase. Charges for reweighing, as requested by Purchaser and approved by the Association, will be paid by Purchaser directly to the storage firm. By-products will be sold on original weights without sampling. Purchaser assessment fees will be added to all sales as follows: (1994 Crop NNC- .046278 and TMA- .010596) (1997 Crop NNC- .001621 and TMA- .011887) (1998 Crop NNC- .026684 and TMA- .009834) (2000 Crop NNC- .038585).
2. The base price will be increased by adding carrying charges for each month beginning with April, 2001, up to and including the calendar month in which final invoice is submitted. Carrying charges are subject to change periodically based on interest rates charged by Commodity Credit Corporation.
3. The sales prices are net prices per 100 pounds f.o.b. storage warehouse on the basis set forth in paragraph 1. BSC will not be responsible for any weight discrepancies which may occur after the tobacco has been accepted at the point of storage or time of inspection.
4. Remarking of cases, recoopering, wire lacing, etc., will not be paid by the Association. Shipping and marking instructions should be given directly to storage by purchaser.
5. Any tobacco purchased may be placed on Deferred Sales Contract for a period not to exceed 24 months. Otherwise, terms are net cash upon receipt of invoice. If payment is not received and applied to the loan balance by the end of the month in which invoice is submitted additional carrying charges will be added each month until payment is received.
6. Strips and by-products are priced separately but are offered only as a single product in the proportions of :

   .01317 pounds of fiber per pound of strips 1994 Crop

   .01724 pounds of fiber per pound of strips 1997 Crop

   .28203 pounds of stems per pound of strips 1998 Crop

   .01707 pounds of fiber per pound of strips 1998 Crop

   .049374 pounds of scrap per pound of strips 2000 Crop

   Based on such proportions, the pounds of by-products to be included in each purchase will be calculated to the nearest complete container weight.

7. Title and risk of loss shall pass to the purchaser upon delivery to the purchaser, or his agent, of the tobacco or delivery order(s) for such tobacco, whichever event shall first occur. The placing of the delivery order(s) in the U. S. Mail in an envelope addressed to the purchaser or the storage warehouseman holding the tobacco (with instructions to hold the delivery order(s) subject to the purchaser's order) shall constitute delivery of the delivery order(s) to the purchaser.