Credit Application

TERMS & CONDITIONS

1. DEFINITIONS.

   The words you, your and yours mean the applicant, joint applicant and persons authorized to use the Account. The words we, us, and our mean Karrera International Finance Ltd. The word Seller refers to the retailer from whom you purchase goods or obtain services in accordance with the terms of this agreement.

2. ACCOUNT.

   In consideration of our granting you credit on this Account ("Account"), you promise to pay for all the purchases made by you plus any finance charges and any other charges that may be assessed as provided in this agreement. This account can be used to purchase goods and services from the Seller.

3. TERMS OR PAYMENTS.

   We will send you a statement after the end of each monthly billing cycle in which there is a balance due. called the "Monthly Payment". You promise that by the end of the month of the billing date shown on your statement you will pay at least the minimum payment called for in this agreement plus any amount that is past due. Payments are not considered made and are not credited to your Account until received by us at the location which payment may be made. The monthly billing cycle covered by each statement vill be approximately 30 days.

4. WHEN CREDIT CHARGE IS IMPOSED.

   The credit charge on a transaction begins on the day after the close of the billing cycle in which the transaction is posted to your Account. Since your billing statement is prepared as or the close of the billing cycle, there is no date by which the new balance shown on the statement can be paid to avoid credit charges on the new balance.

5. FINACE CHARGE.

   We will calculate your finance charge on your account by applying the monthly percentage rate of 1.991% to the outstanding balance at the end of the month / billing cycle. To get the "monthly percentage rate" we take the annual percentage rate and divide it by 12 months. Finance charges shall become principal, for the purposes of calculating finance charges in the next billing cycle. A table of representative monthly finance charges is set forth below.

   Rate 23.9% per annum		Monthly Rate: 1.991%
   Balance	Credit Charge	Balance	Credit Charge
   500	9.96	2000	39.82
   1000	19.92	4000	79.64

6. MINIMUM MONTHLY PAYMENT.

   Your minimum monthly payment will be as set forth in the section titled "Minimum Monthly Pavment". The minimum monthly payment will only change if approved by Karrera International Finance Ltd. The minimum monthly payment will never be less than $25.00 even when special terms have been given. When the total Account balance is less than $25.00 the entire balance will be due at the next billing cycle.

7. SECURIIY.

   In the province of Ontario, Manitoba, Saskalchewan, Alberta, Nova Scotia, British Columbia, Prince Edward Island, New Brunswick and Newfoundland you grant to us a purchase money security interest to the extent permitted by law in any goods sold under this agreement until full payment of the goods has been made. You agree that any goods sold under this agreement will remain personal property and will not become a fixture even if attached to real ptoperty. If the mimum monthly payment or any other amounts due under this agreement are not made on time, the goods may be repossessed to the extent permitted by law.

8. CHANGE OF TERMS.

   We may change the rates and other terms of this agreement as permitted by law. We will notify you in writing before the change occurs. A change in the terms of this Account may apply to the unpaid balance existing on the effective date or change.

9. CANCELLATION OF THE ACCOUNT.

   We, at our sole discretion, may cancel this agreement and declare the entire balance due and payable, but the cancellation will in no way affect our liability to us on credit previously given.

10. LIMIT OF LIABILLY.

    We will not be responsible if the Seller refuses to accept any purchases of goods and services on your Account. You and the Seller shall settle any dispute between you and the Seller. To the extent required by law, you will pay for the charged items even though a dispute exists.

11. DEFAULT.

    You will be in detailt if:

    1. You fail to make any minimum monthly payment when due.
    2. You become insolvent.
    3. You break term of this agreement.
    4. You refuse to accept the change of any term of your agreement.

    If you are in default, we have the right after notice of detault has been given and you have failed to cure this detault, to:

    1. Demand you pay the entire unpaid balance on your account immediately;
    2. Start a lawsuit to collect the balance; and/or
    3. Take any other actions permitted by law; and/or
    4. Immediately take possession of the goods under the appropriate legislation.

    If any amount becomes due in default and is referred to for collection to an attorney, you agree to pay such fees of the attorney, and court costs allowed by law. You also agree to pay interest on judgement at the annual percentage rate in effect for your Account at the time of default.

12. DELAY ENFORCEMENT.

    We may wave or delay enforcing any of our rights without losing them. We may waive or delay enforcing our rights against one of you without waiving as to the other.

13. DISHONOURED CHEQUE.

    You agree to pay us the amount of $35.00 as damages in respect of each payment of yours, which is dishonoured. This amount will be added to the Account balance and may be varied under the terms of the agreement only in a manner permitted by the law of your province of your residence.

14. ASSIGNMENT.

    We may sell or assign all or part of the balance of your account to another person or entity from time to time without prior notice.

15. CREDIT INFORMATION.

    You promise that any credit information that is furnished to us is true and complete and understand that this information will be relied on by us in establishing your Account extending credit on your Account. We have the right to investigate your credit, employment and income records, and have the right to verify your credit references and to report the way you pay this Account to credit bureaus and other interest parties.

16. SPECIAL TERMS.

    1. Length of Special Terms.

       The special terms for an item purchased under the special terms agreement begin on the date of the sales invoice. The special terms last for the number of monthly billing cycles indicated on the sales invoice. If the special terms sales invoice indicates the special terms will last for a certain number of months, it means that number of monthly billing cycles.

    2. Interest Terms.

       If a special terms sales invoice indicates 0% in the annual percentage rate, it means that there is no credit charge on the Account containing the items sold on the invoice until the special terms end. You may avoid any credit charges on a "no interest" Account by paying the balance of the Account in full before the special terms end date.

    3. Special Rate.

       If this invoice shows a special rate that is lower than 23.9%, it means that corresponding monthly percentage rate shown on the invoice will be used to figure the credit charge for the Account instead of the regular monthly periodic rate and regular annual percentage rate.

    4. Minimum Payment.

       You may pay all or part of the balance of an Account at any time. Payment of more than the minimum monthly payment, but less than the unpaid balance, will not relieve you of the Obligation to make the minimum payment in any future billing cycle.