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Changes to Olex Commercial Trading Arrangements

01 Jul 2005

Olex wishes to advise it customers of forthcoming changes to its commercial trading arrangements.

Recovery of Value for Service rendered

Cutting Service Fee

From 1 October 2005, a flat fee of $25+ GST will apply to each cut of cable product performed by Olex. This fee is being established to recover both the labour cost in performing the cutting activity and the residual waste generated.

This fee will be invoiced as a stock item so that the sales value will be subject to the trading terms between Olex and its customers.

From 1 August 2005, all Olex quotations will include cutting charges (if applicable). These charges will be payable for deliveries after 1 October 2005. All quotes issued prior to 1 August 2005 will be honoured under the terms and conditions applicable to that quote.

Olex also advises that it will only provide a cutting service for products which are not otherwise offered as standard packs. The following table provides a summary of those cables Olex offers in standard packs:

Cable Product

Standard Packs

Single core building wire and PVC / PVC SDI, copper conductor, 16mm2 and below

100 metres

500 metres

Orange circular 2, 3 and 4 cores plus earth, copper conductor, 10mm2 and below

100 metres

500 metres

1000 metres

Flat cables, copper conductor, 16mm2 and below

100 metres

200 metres (1mm2 only)

500 metres

Flexible cords, single and multicore, copper conductor, 4mm2 and below

100 metres

Minimum Order Value

Miniumum Order Values (MOVs) are applied by Olex to recover part of the administration cost in processing and handling small order sizes.

The following MOV thresholds currently apply:

MOV

Applicability

$500 (ex GST)

FOT Delivery to Wholesaler branch or Contractor

$1000 (ex GST)

FOT Delivery to work / project site, as requested by customer.


Please note that Olex's standard terms and conditions require its customers to unload product at the customer's cost and risk.

Where a customer places an order below the MOV thresholds, a service fee is applicable. From 1 October 2005, service fees will be calculated in accordance with the following table:

Customer Request

Process Charge

Delivery

Total

Pickup* product from Olex

$20

NA

$20

Metropolitan Delivery

$20

$20

$40

Country Delivery

$20

$60

$80

Remote Delivery

$20

$100

$120


The classification of a delivery destination is determined by the number of kilometres travelled from the relevant Olex despatching location. These distances may vary, depending on the despatching location. Please contact the Olex National Customer Service Centre for more information.

*'Pickup' is available at a minimum 4 hours from order placement or as advised by the Olex National Customer Service Centre.

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