GENERAL TERMS AND CONDITIONS OF SERVICE AND MAINTENANCE Article 1 General Provisions 1.1 1.2 1.2.1 These general terms and conditions apply to all offers and agreements by which Blaauw Products supplies goods and provides services to the purchaser in relation to a maintenance or service agreement for work to be carried out by Blaauw Products concerning equipment as described in article 2. Any departures from these general terms and conditions only apply if they have been explicitly agreed in writing. Applicability of any purchase or other conditions of the purchaser is explicitly rejected by Blaauw Products. Article 2 Definitions 2.1 2.2 2.3 Maintenance is defined as follows: a) preventive maintenance: inspection, adjusting and cleaning of the equipment considered necessary by Blaauw Products in order to prevent malfunctions, b) corrective maintenance: remedying malfunctions of the equipment which have occured upon normal use of the equipment as a result of natural wear and by reason of individual defects of the equipment, as well as the performance of the repair work required for this and the replacement of worn or as the case may be damaged parts, all this as defined in more detail in the maintenance agreement or scope of work. Malfunction is understood to mean the equipment is not or not without interruption meeting the specifications laid down in writing by Blaauw Products. There will only be deemed to be an actual malfunction if it can be shown and reproduced. Working day is understood to mean: the days of Monday to Friday between 8 a.m. and 5 p.m., save generally recognized holidays. Article 3 Elements and Performance of the Work 3.1 3.2 3.3 3.4 3.5 The Maintenance Agreement involves the performance of maintenance work of the equipment stated in the agreement, as described in article 2 and in Annex 1 to these terms and conditions. The obligations of Blaauw Products under this agreement do not include the performance of the following activities: - disposal or processing for environmental purposes of removed materials and used products - work which is the result of an amendment or extension of government regulations - work for the sake of partial or full renovation of the equipment - modifications of the equipment - moving, reinstallation of equipment or resulting work - building work required by reason of replacement of parts or for other reasons. The obligations of Blaauw Products under this agreement, do not include the performance of work, the carrying out of inspection or the remedy of malfunctions which are the result of: - climatic and other external conditions which the supplied good is not designed for - external causes such as failure in the energy supply - incorrect handling and/or negligence of the purchaser and/or third parties, who did not act in the name of or by order of Blaauw Products - parts or non-durable materials installed by third parties the use of which Blaauw Products has not approved in writing - incorrect or as the case may be improper operation or use of the equipment. If the purchaser orders Blaauw Products to carry out work which is caused by factors as stated in paragraphs 2 and 3 of this article, this will be invoiced separately to the purchaser at the current rates. The maintenance will be carried out during workings days. Should the occasion arise, the days for intervention shall be fixed in mutual agreement between Blaauw and Ceramaterials, that the work must be carried out outside working days, an additional sum will be charged to the purchaser in conformity with the rates then applicable. Blaauw Products BV – General Terms and Conditions of service & maintenance (revision 2011-1) 1/3 3.6 3.7 In the event of malfunctions the required preventive maintenance work will be carried out at the same time, Blaauw Products will make a quotation and get it first accepted by the purchaser. Replacement of parts is carried out if, in the view of Blaauw Products this is required to remedy or to prevent malfunctions. Blaauw Products will make a quotation and get it first accepted by the purchaser. Article 4 Price and Payments 4.1 4.2 Each year the maintenance price will be adjusted on the basis of the index figure of the Contractual Hourly Wages including special remuneration in the metal and electrical technical industry published by the Centraal Bureau voor de Statistiek [Dutch Central Agency for Statistics] in Voorburg. (1990 = 100) The adjusted price is calculated according to the formula below: new maintenance price = old price x new wage index figure old wage index figure 4.3 4.4 4.5 4.6 4.7 4.8 As new wage index figure is applied the index figure of the month which precedes the date of adjustment of the maintenance price by three months. As old wage index figure is applied the index figure which precedes the new wage index figure by a year. Next to the automatic adjustment referred to in paragraph 1 Blaauw is entitled to raise the agreed maintenance price each year for reasons of its own. It has to communicate this to the purchaser by means of a written statement with due observance of a notice of four months before the starting date of the new maintenance period. If the purchaser cannot agree to an adjustment of the price communicated by Blaauw Products as referred to in paragraph 3 of this article, the purchaser is entitled to terminate the agreement in conformity with the manner stated in article 5.2. The maintenance price does not include: - replacement costs of non-durable materials such as all the electric and electronic parts as well as thermoelements. - replacement costs of worn or damaged parts - travel and accommodation expenses concerning equipment not situated in the Netherlands. The travelcosts will be decided in agreement between Blaauw Products and the purchaser to get the lowest prices. The maintenance price shall be paid in advance and has to be received by Blaauw Products by the last working day of the year which it relates to. All other invoices are paid in conformity with the terms of payment stated in the invoice. Failing which the invoice price has to be received by Blaauw Products within thirty days following the invoice date. If the purchaser does not pay the amounts due within the time-limit agreed, he will be in default by law and will owe legal interest on the amount due. If Blaauw Products is forced to take legal action to collect the amount due, it will also claim extra-judicial collection costs to the amount of 15% of the capital sum, but at a minimum of € 50.00. Article 5 Duration of the Agreement 5.1 5.2 The Maintenance Agreement is concluded for the duration as agreed by the parties, failing which a two-year term applies. The agreement is always automatically renewed for the duration of the period originally agreed, unless termination of the agreement by the purchaser or Blaauw Products in writing by registered letter with due observance of a notice of three months preceding the end of the period concerned and without prejudice to that stated in article 8. Article 6 Rights and Obligations of the Purchaser 6.1 The purchaser is entitled vis-à-vis Blaauw Products to have Blaauw Products perform the agreed maintenance work at its best ability. Blaauw Products BV – General Terms and Conditions of service & maintenance (revision 2011-1) 2/3 6.2 6.3 6.4 6.5 Blaauw Products will supply materials and tools required for the servicing in consultation with the purchaser. Unless after written permission of Blaauw Products the purchaser will not make any change to the equipment or have this made, will not move the equipment, nor will it have the servicing carried out by any party other than Blaauw Products. The purchaser will always immediately inform Blaauw Products of any malfunction or other fact as a result of which (more) damage may be caused to the equipment. The purchaser is held to give staff of Blaauw Products or third parties appointed by Blaauw Products access to the site of the equipment, and to offer all other necessary cooperation. Article 7 Suspension of Obligations 7.1 7.2 Blaauw Products is entitled to suspend its obligations resulting from this agreement: - if the purchaser has not paid the maintenance price or did not meet any other (payment) obligation vis-à-vis Blaauw Products; - if and to the extent that Blaauw Products is unable to meet its obligations vis-à-vis the purchaser by reason of a fault (force majeure) not imputable to it, without prejudice to the right of the purchaser to have a proportionate part of the maintenance price refunded if and once the force majeure situation has lasted for more than two months. Such suspension does not relieve the purchaser from his (payment) obligations vis-à-vis Blaauw. Article 8 Termination of the Agreement 8.1 8.2 Blaauw Products may terminate the agreement prematurely without any proof of default or court intervention being required by means of a written notice taking effect immediately, if the purchaser applies for a moratorium, is declared bankrupt, winds up his business or ceases its business activities. In case of premature termination of the agreement, there is no entitlement to refund of (part of) the maintenance price. Article 9 Liability And Indemnification 9.1 9.2 9.3 9.4 If by reason of negligence of Blaauw Products damage is caused to parts of the Blaauw equipment, its liability is restricted to replacing the parts concerned once for free. The total aggregate liability of Blaauw Products for damage by reason of imputable fault under this agreement, is limited to compensation of the direct damage to an amount which equals the maintenance price for one year. The liability of Blaauw Products for indirect damage such as inter alia consequential damage, loss of profit, loss by reason of business stagnation, damage to persons or goods is explicitly excluded. The purchaser indemnifies Blaauw Products against all claims of third parties by reason of product liability as a result of malfunction or loss of the good or services which this (maintenance) agreement concerns. Article 10 Force Majeure 10.1 Neither party is held to perform any obligation if it is unable to do so by reason of force majeure. Force majeure is also understood to mean transport congestion, accidents or incapacity of staff, strikes and non-imputable faults of suppliers of Blaauw Products. Article 11 Applicable Law and Forum Selection 11.1 11.2 The law of the Netherlands only applies to the this agreement and to all resulting agreements. Disputes resulting from this agreement exclusively will be resolved under the jurisdiction of the relevant Courts in Amsterdam, the Netherlands. Blaauw Products BV – General Terms and Conditions of service & maintenance (revision 2011-1) 3/3