CREDIT TERMS POLICY

· Companies listed and rated 1A1 or better by Dun and Bradstreet can receive Full Net 30 terms starting with their first order.

· Companies listed 1A2, 2A2, 3A2, 4A2 or 5A2 by Dun and Bradstreet or who have very strong credit references can receive the following terms on their first order: 50 % prepayment with purchase order, balance net 30

· Companies who have a Dun and Bradstreet rating under "A2" and who do not have strong credit references will receive the following terms on their first order: 50% prepayment with purchase order; balance due 1 week prior to shipment.

· SLM offers a 2 ½% discount over the total invoice charge for companies who prepay an order in full at the time of submitting a purchase order.

For those who must prepay on their initial order it is important to note that on subsequent orders better terms may be available if credit reports on your company improve. For those companies who receive partial credit on their first order it is crucial that payment be made promptly on the first order. Prompt payment of a previous order is always heavily considered when the improvement of credit terms is requested. Generally, with repeat customers who have not been given credit on their first order a starting credit is determined on subsequent orders. Every case is determined on an individual basis.

* A 1 ½% finance charge will be applied to all past due balances.