Standard After-Sales Service and Delivery Terms and Conditions We shall agree contracts with you only in accordance with the following terms and conditions. Your purchasing terms and conditions shall not become part of the contractual content in their entirety, even if we do not expressly object to them, or should you particularly emphasise that you want to deliver only in accordance with your terms and conditions. 1 Offers and advance cost estimates 1.1 An offer by us shall be binding only if it is made in writing. Any verbal instructions shall constitute approximate cost information only, and shall not be binding. 1.2 Please notify us if you require a written offer prior to the execution of an order for our services. 2 Scope of the deliveries and services 2.1 The deliveries and services shall be listed in detail on our order confirmation. 2.2 Partial deliveries are acceptable. 3 Plans and technical documentation 3.1 Instructions in plans and technical documents shall be binding only to the extent that we expressly guarantee them. 3.2 All rights to plans and technical documents shall remain with the party that delivered them to the other party. The receiving party is not authorised to make the documents available to third parties in whole or part, and shall use them in no other way than for the purpose for which they were delivered, unless with the prior written consent of the delivering party. 4 4.1 4.2 5 Delivery dates Any delivery dates agreed for the delivery of parts or the commencement of service and overhaul work will come into force once all the necessary permits for export or the deployment of our technician have been received and after you have made the agreed payments or provided the appropriate assurances. Any delivery date agreed shall be reasonably extended should impediments arise that are beyond our control, in spite of the requisite degree of care demonstrated on our part. For example, in the event of natural phenomena, epidemics, mobilisation, war, unrest, substantial operational disruptions, labour conflicts, governmental measures, etc., or should you or any third parties be negligent regarding the work to be carried out, or should you default with respect to the fulfilment of your contractual duties, or do not adhere to the conditions of payment. The benefits and risk shall be transferred once the parts ordered have been delivered to the shipping company. 5.2 Should shipment be delayed for reasons for which we are not responsible or because you require a later delivery date, the risk shall be transferred to you at the time and date originally agreed. Deliveries shall be stored at your cost and at your own risk from that point in time. 6.1 7 Default of delivery 7.2 If the agreed performance is delayed for reasons for which you are responsible, you shall compensate us for any costs incurred as a result, and for any wasted or additional travel time and cost, waiting time, etc., and 15% of the order value, in an amount of no less than 500.00 Swiss Francs. Permits We reserve the right to rescind the contract without compensation if the necessary permits and insurance for export, import or our technician’s work at your company, etc., cannot be obtained within a reasonable period. If, for any reason whatsoever, the service has to be interrupted for longer than four hours or temporarily discontinued due to force majeure, we shall be entitled, but not obliged, to recall our technician and to invoice you for the entire time taken to travel to and from your premises, for our technician’s waiting time, and for any other costs arising in this event. Acceptance Once our technician informs you that he has completed his work, you shall accept the services promptly in the form agreed, and confirm such acceptance in writing on our service report. 10.2 You shall not be entitled to refuse acceptance if an insignificant defect still exists, or a defect which is based on circumstances for which we are not responsible. 10.3 If the agreed acceptance is delayed through no fault on our part, it shall be deemed to be accepted upon the (re)commissioning of the machine, but no later than after the end of three days after our technician requested your acceptance. 11 Duties of cooperation Storage 11.1 You shall undertake to correctly store, at your own cost, all the parts to be mounted. We cannot be held liable for the consequences of incorrect storage or incorrect transport. Your company employees 11.2 You shall provide our technician with appropriately qualified employees to enable him to carry out the service in a timely manner. Our technician shall be authorised to instruct your employees in connection with the service work. 11.3 In all other respects, your employees shall remain under your supervision and responsibility, and shall be insured by you. Supplies, devices and tools 11.4 You shall make all the equipment, devices and tools necessary for the service available to us at no charge, in good working order and in an operationally safe condition. Test runs and commissioning 11.5 You shall provide us with the necessary materials at no charge to us, and will carry out all other actions required to configure and test the machine. Safety 11.6 You shall take all the necessary precautions regarding accident prevention and the protection of our technician and the equipment we bring onto your premises. In particular, you shall highlight specific dangers to our technician and inform him of the relevant safety regulations. 11.7 If another company is carrying out work at your premises while our technician is also working, you shall instruct and order one of your employees to coordinate the respective work projects to avoid any potential conflicts between such projects. The dates we indicate at the start of our services shall be based on the anticipated availability of our technicians. You shall promptly inform us if you are unable, for any reason whatsoever, to accept our services on the scheduled date. 8.1 10 Interruptions and discontinuation of service 10.1 Dates and deadlines 7.1 8 9.1 Transfer of use and risk 5.1 6 9 Accommodation 11.8 12 12.1 If it is agreed that you are responsible for our technician's accommodation, he must be provided with a single occupancy hotel room that conforms to Western European standards, with an en suite bathroom/shower room. Breach of duties of cooperation If you do not fulfil your duties of cooperation, we shall be entitled, but not obliged, to arrange to perform the measures you have failed to carry out, to undertake them ourselves or to recall our technician. All the costs arising from such event shall be borne by you. Stand: 10.01.2011 V2 13 machines we have overhauled in accordance with our internal operational guidelines. Prices Parts, material 13.1 Our prices shall be understood to be net, ex-works, excluding packaging and excluding tax. Delivery shall be made FCA works in accordance with latest Incoterms as per ICC rules, unless otherwise expressly agreed with you. 13.2 In the case of replacement parts, we shall credit you up to 30% of the value of the replacement parts delivered to you, depending on the condition and the costs that will be incurred to repair your part, provided you return to us the damaged part that you replaced, at your cost and risk, within 10 days of receipt of our part, and provided we are able to repair it. 13.3 Should we send you various electronic parts or data carriers, we shall charge you for all such parts and data carriers unless you return such parts and data carriers within 10 days, at your cost and risk, in the undamaged and unopened original packaging. If the original packaging is damaged or has been opened, we shall inspect the relevant parts and data carriers, fully reconfigure them and, depending on the result, charge you for the costs incurred for such reconfiguration or for the cost of the part/data carrier. 16.3 You shall inspect our deliveries and services within a reasonable time period and promptly inform us in writing of any defects found. Our deliveries and services shall be deemed to be approved if you fail to do so. Scope of warranty 16.4 During the warranty period, we undertake to repair or replace, at our discretion and as quickly as possible, any parts that are demonstrably damaged or unusable as a result of poor quality materials, defective design or incorrect execution. 16.5 Parts that are replaced shall become our property unless we expressly disclaim ownership of such parts. 16.6 If a substantial defect is present for which we are responsible we shall, at our discretion and at our cost, immediately remedy it at your premises, replace the defective part with a new part, or repair it at our premises. 16.7 If the defect is not remedied despite multiple attempts on our part, we shall reasonably reduce the price of our services or the defective part, beyond which you shall be entitled to no additional claims. Service work, overhaul 13.4 We shall invoice you for our services based on the hourly rates and conditions stated on the respective effective price list. Any other agreements shall only be binding if they have been made in writing. 16.8 Our warranty shall be null and void should you or any third party carry out inappropriate modifications or repairs, should you fail to immediately use your best endeavours to prevent any damage, or fail to enable us to remedy the defect once it has occurred. 13.5 We shall invoice you for the entirety of the costs we have incurred, regardless of whether it has been possible to perform effectively the service work because, for example, the error in question did not occur at the time of the inspection, because you failed to adhere to the service time agreed, if you terminated the order or failed to acquire the necessary replacement parts within a reasonable time. 16.9 Any damages that may arise for which we are not responsible, such as natural wear and tear, defective servicing, disregard of operating instructions, excessive load, unsuitable equipment, chemical, electrolytic or electronic factors, maintenance work that has not been carried out by us, etc., shall be excluded from the warranty and liability. 13.6 Our technician's travel time shall be considered working time, and shall be charged per travel hour at the hourly rate indicated on the relevant effective price list. 17.1 The claims to which you are entitled, irrespective of the legal grounds on which they are based, are conclusively regulated by these terms and conditions. 17.2 We shall be liable exclusively for damage to the machine, but not for any further damage, such as production shutdown, loss of use, loss of orders, loss of earnings or any other pecuniary damage or losses. 17.3 You shall be liable for damage that is caused by your employees, even if our technician conducted or supervised the service, unless our technician exhibited gross professional negligence. 17.4 Similarly, you shall be liable for damage resulting from any defective equipment, devices, tools and materials that you make available, even if our technician accepted to use them, unless he should have recognised such defects had he been reasonably attentive. 14 14.1 14.2 15 15.1 15.2 15.3 15.4 16 Service report Our technician shall undertake to maintain a service report, itemised by working hours, travel time, preparation time and waiting time, for each deployment. We shall invoice you for our services based on such service report. You shall review and sign the service report. Please note that the information concerning the travel time for the return trip can only be stated approximately in the service report, and can only be definitively determined following our technician's arrival at his next deployment or his place of residence. 17 Payment terms and conditions Payments shall be made to our offices, excluding any deductions, i.e. early payment discounts, bank fees or other fees, taxes, charges, fees, customs duties, etc. We shall invoice you for our deliveries and services based on the rates and payment conditions stated on the respective effective price list immediately after the parts are delivered or after the service work has been carried out. If you are in arrears with your payments to us, we reserve the right to postpone any deliveries and/or services (including warranty) agreed with you but not yet rendered, until the outstanding payments have been received, and reserve the right to make said/future deliveries and services conditional upon advance payments. If you fail to meet the agreed payment deadlines, statutory default interest must be paid to us without further notice at a rate of 5% from the agreed due date of the payment. 18 18.1 19 Liability / Exclusion of liability Limitation of actions Your claims, irrespective of the legal grounds on which they are based, shall elapse after 12 months. Applicable law and place of jurisdiction 19.1 Swiss substantive law shall be applicable. Applicability of the Convention of the United Nations Concerning Contracts on the International Sale of Goods is excluded. 19.2 The place of jurisdiction is the domicile of Mägerle AG Maschinenfabrik. However, we also reserve the right, at our discretion, to sue you for claims at your offices. 20 20.1 Final provisions Any amendments or addenda to the contract that exists between us, including this section, shall be binding only if they have been agreed in writing. Warranty Warranty period 16.1 The warranty period for our deliveries and services shall be 12 months from the delivery date. Inspection and acceptance of deliveries and services 16.2 Following the completion of our work, we shall inspect the Stand: 10.01.2011 V2