General Conditions of Purchase of Helmholtz-Zentrum Geesthacht Zentrum für Material- und Küstenforschung GmbH Version of March 24, 2014 These GCP constitute merely a convenience translation. Exclusively, the German AEB of HZG are legally binding. 1. General information 10. Ownership, confidentiality These General Conditions of Purchase shall apply unless otherwise agreed upon in writing between Helmholtz-Zentrum Geesthacht Zentrum für Material- und Küstenforschung GmbH (“HZG”) and the contractor (“Provider”) for all deliveries and services ordered. By submitting an offer, by confirming an order, by accepting or by executing an order, the Provider agrees to these General Purchasing Terms. All deviating General Purchasing Terms of the Provider shall apply, only if and to the extent that they have been expressly accepted in writing. This applies even if the Provider refers to his General Purchasing Terms; this case does not require any objection by HZG. Reference number and date of HZG's letter must be indicated in all documents including invoices. HZG collects and processes personal data through automated processes (note in accordance with Paragraph 33 BDSG). Offers must be submitted free of charge and without obligation for HZG. The Provider shall adhere to the offer in terms of quantity, quality and execution of the request or tender and he shall explicitly refer to any existing deviations. He shall be in principal bound to his offer for 30 days, unless longer binding is agreed. The order must be in writing in order to be binding. Verbal agreements shall only be valid, if HZG confirms them in writing. Orders must be confirmed promptly in writing by the Provider. If the Provider does not accept the order within 10 working days from receipt in writing, then HZG shall be entitled to cancel the order. Deliveries and services of the Provider shall be carried out in each case without reservation of ownership. HZG acquires full ownership of the delivery or service with acceptance; the same applies to the documents supplied by the Provider (Clause 4, phrase 6). If the order consists of a development, then HZG shall acquire by accepting the service the sole ownership of the development subject, including any existing intellectual property rights or other rights for software. Upon handover the Provider shall declare that he has the full right of disposal and that there are no third party rights. Materials supplied of any kind shall remain the property of HZG. They should be labelled as such and stored, marked and managed separately. Should materials supplied be processed, transformed, combined with other items or mixed, then HZG shall acquire the sole ownership of the new item. The Provider shall keep them free of charge for HZG. All title and copyrights in documents of HZG that he had provided to the Provider, shall remain the exclusive property of HZG. The documents shall be returned immediately upon request with all copies or reproductions. The documents of HZG may only be used for the purposes set out under the contract and shall be issued to any third party only with the express written consent of HZG. As far as HZG provides technical documents (e.g. construction drawings and descriptions) to the Provider, these shall be treated as confidential by the Provider and may be disclosed only to employees bound by the Provider to treat them as confidential. They may not be commercially exploited and they shall not be made the subject of applications for intellectual property rights. In breach of the above conditions the Provider shall be liable towards HZG for the entire damage. 3. Prices 11. Invoicing and payment 2. Offer, order, confirmation of order The agreed prices are fixed prices without applicable Value Added Tax and are for delivery to the agreed place of use (unloaded), including packaging and other incidental expenses. Unless otherwise agreed, freight and packaging costs should be advanced by the Provider and shown separately on the invoice. Price escalation clauses may be allowed even with longer delivery periods only in exceptional cases. If a price escalation clause is required for delivery periods exceeding 18 months, then material, wage and solid shares should be broken down as a percentage and the calculation basis for this should be specified. When determining the prices, the provisions of regulation PR No 30/53 on the prices for public contracts in connection with the Guidelines for pricing on the basis of self-costs (LSP) shall apply. By accepting the order, the Provider agrees with a price check by the Federal Ministry for Education and Research or its commissaries. 4. Execution of the contract, observance of regulations The Provider agrees to comply with the relevant laws and government regulations and requirements when fulfilling the contract. Delivery or performance shall correspond to the safety, industrial safety, accident prevention, relevant standard, DIN, VDE and other provisions and technical regulations, including GPSG-, VDE, TR and AD rules. Furthermore, the machines and/or safety components, pressure equipment to be delivered as defined by the PED or electronic and electrical equipment must be provided with the CE marking of conformity (CE mark), the declaration of conformity and an operating manual and other mandatory labelling. Necessary safety equipment and conformity markings in accordance to such provisions should be taken into account during the Provider's calculation and shall belong to the scope of delivery, even if not specifically mentioned in orders, requests or tenders of HZG. Should the Provider have doubts about the method of execution requested by HZG, he shall immediately notify HZG in writing. All documents (plans, test reports, inspection certificates, drawings, operating instructions, etc.) required for acceptance, operation, maintenance and repair should be supplied free of charge by the Provider, if necessary, in a form suitable for copying. The engagement of a subcontractor by the Provider requires the explicit consent of HZG. 5. Delivery deadlines, delay The agreed delivery periods are binding. Compliance with the delivery deadline or delivery periods shall be determined by arrival of non-defective goods at the place of reception or use indicated by HZG or the acceptance of delivery or performance by HZG. Should delays be expected, the Provider shall notify thereof immediately in writing, stating the reasons and probable duration. 6. Right of notification and inspection HZG and its agents shall be entitled to notify the Provider within operating hours of the contractual performance of delivery, to take part in factory inspections and carry out inspections. The cost of inspections initiated by HZG shall be borne by HZG, insofar as the personnel or material for carrying out the inspections is provided by HZG. If the agreed inspection is negative for reasons that the Provider is responsible for, and must therefore be repeated, then the total costs of reinspection shall be borne by the Provider. The Provider shall obligate his suppliers and subcontractors in writing that the control rights of HZG, referred to in this section, may be exercised by them as well. The inspections do not relieve the Provider from his liability for defects and general liability. 7. Contract amendment HZG may demand amendments to the delivery item or service even after the contract is concluded, as far as this is acceptable by the Provider. Amendments and their effect on pricing, delivery time or other terms and conditions shall be in writing according to no. 2 of these General Purchasing Terms. 8. Shipping and customs A shipping notice should be timely sent to HZG prior to delivery of the delivery items. Delivery must be accompanied by a delivery note. For deliveries from foreign customs territories, the Provider shall promptly contact HZG for the purposes of customs and import clearance. 9. Acceptance If delivery or service is performed in a condition which is in accordance with the contract, it shall be accepted. If trial operation is provided for, then acceptance shall be declared by means of a joint acceptance report following faultless trial operation. The HZG acquires full ownership of the object of delivery or service after handover with acceptance; the same applies to the documents supplied by the Provider (Clause 4). Invoices shall be submitted in a single copy. The invoices must comply with the legal requirements. Payments shall be made, unless otherwise agreed, either within 14 days with 2% discount or after 30 days strictly net. In case of incorrect delivery or service fulfilment HZG is entitled to withhold payment in whole or proportionately until the contract has been duly performed. Payments are principally made neither in advance nor in instalments. If payment in instalments is expressly agreed between HZG and the Provider deviating from these General Purchase Terms, payments shall be made only against an unlimited advance payment bond acceptable to HZG in the amount of each instalment payable plus applicable VAT. 12. Material liability for defects and legal liability for defects The Provider shall be liable in accordance with statutory provisions for material defects and legal defects. He guarantees careful and proper fulfilment of the contract, in particular compliance with the stipulated specifications and other implementation regulations of HZG in accordance with the latest developments in science and technology, as well as the quality and suitability of the delivery in materials, construction and implementation and documents belonging to the delivery (drawings, plans etc.). The stipulated specifications are considered contractually assured and guaranteed properties of the delivered item or service. The provisions of Paragraphs 633, section 2 to 639 BGB are also applicable to purchase and service delivery orders; HZG can also exercise his rights pursuant to Paragraphs 459 ff BGB at his discretion. HZG shall immediately notify the Provider in writing of any obvious defects of the delivered goods/services as soon as these are discovered in the course of a regular course of business and at the latest within 8 calendar days from receipt of the delivery by HZG. The Provider shall warrant for the delivered spare parts and repair work as for the subject of the delivery; the warranty period begins after the remedy of defects. For delivered parts that could not remain in operation due to warranty defects, the warranty period shall be prolonged for the duration of operation interruption. The costs borne by the Provider during remedy of the defects shall include the cost of packing, freight and delivery, the work expended for dismantling and installing, travel costs and the implementation of remedial measures for HZG. 13. Property rights The Provider warrants that during the execution of the contract, as well as during delivery and use of the object or service delivered, no third party property rights shall be violated. He indemnifies HZG, upon first written request, of any third party claims arising from any infringements of property rights. 14. Promotion material The Provider shall indicate his business relationship with HZG in promotion material only with the latter's express consent. The contracting Parties undertake to treat all commercial or technical details that are known to them through the business relationship as business secrets, while subcontractors shall be bound accordingly. 15. Termination and withdrawal HZG is entitled without prejudice to any other termination and withdrawal rights, to terminate the contract or withdraw from it when there are negotiations on the Provider's part within the meaning of Paragraphs 333, 334 StGB (granting of advantages, bribery). HZG may in addition require reimbursement from the Provider of all damages. HZG may also cancel or terminate the contract if insolvency proceedings or judicial proceeding has been opened for the Provider's property or Provider has temporarily suspended its payments. 16. Safety regulations and regulatory actions Safety regulations and regulatory actions of HZG must be observed for deliveries and services in the premises and areas of HZG, which in this case are part of the contract. 17. Place of fulfilment and jurisdiction Place of fulfilment for the Provider shall be the registered headquarters of HZG or any other place of use designated by HZG. Jurisdiction is Hamburg, provided the Provider is a businessman. 18. Governing law The law of the Federal Republic of Germany shall apply. The provisions of the UN Convention on Contracts for the International Sale of Goods (UNCITRAL / CISG) shall not apply. If the service has been tendered due to VOL/A, VOL/B shall apply additionally; otherwise the German Civil Code shall apply in addition. 19. Final provisions Should any provision of the contract or these General Purchase Terms be invalid, the contract and the General Purchase Conditions shall remain in effect. This does not apply if adherence to the contract or the General Purchase Terms constitutes unreasonable hardness for one party.