Regulation 8 Participants` rights in connection with termination

(1)

The rights referred to in regulation 7 are –

(a)

a right to terminate participation at any time without penalty by giving 14 days written notice of termination to the promoter or any of the promoters at an address in the United Kingdom which has been furnished to the participant in writing;

(b)

where notice is so given not more than 14 days after the participant first agreed to participate in the scheme, a right to require the promoter or any of the promoters to repay the participant within 14 days any monies which he had paid to or for the benefit of the promoter or any of the promoters in connection with his participation in the scheme or paid to any other participant in accordance with the provisions of the scheme less –

(i)

any amount due from or paid by him in respect of goods which he has sold;

(ii)

an amount equal to the value of any other goods which have been delivered to him under the scheme and which he has not re-delivered or despatched to the promoter or promoters or to a person nominated by the promoter or promoters to receive them;

(iii)

where any goods so re-delivered or despatched have deteriorated and their deterioration was occasioned by an act or default on his part, an amount equal to the diminution in their value resulting from such deterioration;

(c)

where notice to terminate participation is given by the participant in any other circumstances, a right to require the promoter or any of the promoters to buy –

(i)

at a price which is not less than 90 per cent of the price which the participant paid for them less, in the case of any goods the condition of which has deteriorated due to an act or default on his part, an amount equal to the diminution in their value resulting from such deterioration;

(ii)

on terms whereby the price is payable upon delivery of the goods or, if the goods are already held by the promoter or any of the promoters, forthwith, and

(iii)

for delivery within 21 days of the giving of the notice at any place which the participant may reasonably nominate, any goods which he has purchased under the scheme;

(d)

a right to be discharged upon the termination of his participation from all contractual liabilities towards the promoter or any of the promoters in connection with the scheme except –

(i)

liabilities relating to payments made to him under contracts which he has made as agent for the promoter or any of the promoters;

(ii)

in a case where termination of participation does not give rise to the right described in sub-paragraph (b) of paragraph (1) of this regulation, any liability to pay the price of goods already sold to him by the promoter or any of the promoters;

(e)

if the promoter or any of the promoters terminates his participation in the scheme in accordance with its provisions, a right to require the promoter or any of the promoters to buy –

(i)

at the price which the participant paid for them less, in the case of any goods the condition of which has deteriorated due to an act or default on his part, an amount equal to the diminution in their value resulting from such deterioration,

(ii)

on terms whereby the purchase price is payable upon delivery of the goods or, if the goods are already held by the promoter or any of the promoters, forthwith, and

(iii)

for delivery within 21 days of such termination at the promoter`s expense at any place which the promoter may reasonably nominate, any goods which the participant has purchased under the scheme.

(2)

When the written notice referred to in sub-paragraphs (a) and (b) of paragraph (1) of this regulation is given by post, the period of notice shall start to run from the day when such notice is posted by first class post to an address furnished by the promoter.