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(4) If the Purchaser wishes, we shall cover the delivery by means of transport insurance; the<br />
Purchaser shall bear the costs incurred in this respect.<br />
§ 7 Warranty for defects<br />
(1) It shall be a precondition of warranty claims by the Purchaser that the latter has carried<br />
out its obligations of examination and giving notice of defects pursuant to § 377 HGB in<br />
due form. We shall not be liable for misuse or unsuitable use, in particular excessive operational<br />
demands, faulty installation or incorrect use by the customer or third parties, natural<br />
wear (wear and tear), incorrect and careless treatment and handling, in particular by untrained<br />
personnel.<br />
(2) If there is a defect in the purchased item for which we are responsible, the purchaser<br />
shall be entitled at its option to request subsequent performance in the form of the<br />
remedying of the defects or the delivery of a new item which is free of defects. If the<br />
defects are to be remedied, we shall be obliged to bear all the expenses necessary for the<br />
purpose of remedying the defects, in particular transport, travelling, labour and material<br />
costs, provided that these are not increased as a result of the purchased item having<br />
been taken to a place other than the place of performance.<br />
(3) If the subsequent performance is unsuccessful, the Purchaser shall be entitled at its option<br />
to request withdrawal or reduction of the price.<br />
(4) We shall bear liability in accordance with the statutory provisions provided that the<br />
Purchaser asserts claims for compensation that are based on a deliberate act or gross<br />
negligence, including a deliberate act or gross negligence on the part of our representatives<br />
or agents. Provided that no intentional infringement of the contract is imputed<br />
to us, our liability for damages is limited to foreseeable damage that typically occurs.<br />
(5) We shall bear liability in accordance with the statutory provisions if we culpably infringe<br />
a substantial contractual obligation; however, in this case our liability for damages shall<br />
be limited to foreseeable damage that typically occurs.<br />
(6) If the Purchaser is entitled to claim compensation for the damage instead of performance,<br />
our liability is also limited within the scope of paragraph 3 to compensation for<br />
foreseeable damage that typically occurs.<br />
(7) Liability for culpability in fatal injury, bodily injury or injury to health shall not be affected;<br />
this shall also apply to mandatory liability under the German Product Liability<br />
Act [Produkthaftungsgesetz].<br />
(8) If no differing provisions have been made above, liability is excluded.<br />
(9) The limitation period for warranty claims shall be 12 months, calculated from the time<br />
of transfer of risk.<br />
(10) The limitation period in the case of delivery recourse pursuant to § 478 and § 479<br />
BGB shall not be affected; it shall be no more than 5 years, calculated from the time of<br />
delivery of the defective item.<br />
§ 8 Joint liability<br />
(1) Any more wideranging liability for compensation than that provided for in § 6 is excluded,<br />
regardless of the legal nature of the asserted claim. This applies in particular to<br />
claims for compensation arising from faults on conclusion of the contract, by reason of<br />
other breaches of obligations or by reason of tortious claims for compensation for damage<br />
to property pursuant to § 823 BGB.<br />
(2) In so far as liability for compensation is excluded or limited with regard to us, this also<br />
applies with regard to the personal liability for compensation of our salaried employees,<br />
persons in our employ, members of staff, representatives and agents.<br />
§ 9 Returned goods<br />
(1) Returns of the purchased item are excluded, except in cases specified in § 7.<br />
(2) Purchased items returned without our approval will not be accepted or will be sent back<br />
to the purchaser at the latter’s expense.<br />
(3) If in a particular instance we agree to the return by way of exception after prior written<br />
agreement, we will charge a handling fee of at least 30% of the net value of the goods,<br />
as applicable.<br />
(4) The risk of transport and the transport costs shall be borne by the purchaser.<br />
§ 10 Reservation of ownership<br />
(1) We reserve the right of ownership in respect of the purchased item until such time as<br />
all payments arising from the supply contract have been received. In the event of the<br />
Purchaser taking actions that breach the contract, in particular in the event of a delay in<br />
payment, we shall be entitled to take back the purchased item. If we take back the purchased<br />
item this does not constitute withdrawal from the contract unless we expressly<br />
declare such withdrawal in writing. If we take the purchased item in seizure, this shall<br />
always constitute withdrawal from the contract. After taking back the purchased item,<br />
we shall be authorized to utilize it; the proceeds of the utilization are to be credited<br />
against the Purchaser’s debts, deducting appropriate utilization costs.<br />
(2) The Purchaser shall be obliged to treat the purchased item carefully; in particular it shall<br />
be obliged to insure the item adequately for its replacement value at its own expense<br />
against damage by fire, water and theft. If maintenance and inspection work is required,<br />
the Purchaser must carry out the work in good time at its own expense.<br />
(3) In the event of attachments or other encroachments by third parties, the Purchaser<br />
must inform us in writing without delay, so that we can institute an action in accordance<br />
with § 771 ZPO [German Code of Civil Procedure]. If the third party is not able<br />
to repay to us the costs, in and out of court, of a legal action in accordance with § 771<br />
ZPO, the Purchaser shall be liable for the shortfall we incur.<br />
(4) The Purchaser shall be entitled to resell the purchased item as part of the ordinary<br />
course of business; however, it shall assign to us now all receivables, in the amount of<br />
the final invoice amount agreed with us (including purchase tax) which we are entitled<br />
to claim, that accrue to it from the resale from its purchaser or third parties; this<br />
shall apply irrespective of whether the purchased item has been resold without having<br />
been processed or after processing. The Purchaser shall retain authorization to recover<br />
this debt even after the assignment. This shall not affect our authorization to recover<br />
the debt ourselves. However, we undertake not to recover the debt as long as the Purchaser<br />
satisfies its payment obligations from the proceeds received, does not default<br />
on payment and in particular as long as no application is made to institute bankruptcy<br />
proceedings, composition proceedings or insolvency proceedings and there is no suspension<br />
of payments. However, if this is the case, we can demand that the Purchaser notifies<br />
us of the assigned receivables and the debtor involved, supply all the information<br />
necessary for recovery, hand over the associated documents and inform the debtors<br />
(third parties) of the assignment.<br />
(5) Any processing or reconstruction of the purchased item undertaken by the Purchaser<br />
shall in all cases be undertaken for us. If the purchased item is processed using other<br />
articles that do not belong to us, we shall acquire joint ownership of the new article<br />
according to the ratio of the objective value of the purchased item (final invoice amount<br />
including purchase tax) to the other processed articles at the time of processing. Moreover,<br />
the same terms shall apply to the article which has been produced as a result of the<br />
processing as to the conditionally supplied purchased item.<br />
(6) If the purchased item is inseparably admixed with other articles that do not belong<br />
to us, we shall acquire joint ownership of the new article according to the ratio of the<br />
objective value of the purchased item (final invoice amount including purchase tax) to<br />
the other admixed articles at the time of admixture. If the admixture takes place in such<br />
a way that the Purchaser’s article is to be regarded as being the main article, it is agreed<br />
that the Purchaser shall transfer joint ownership to us proportionately. The Purchaser<br />
shall keep safe for us the sole or joint property that has thus come into being.<br />
(7) The Purchaser shall also assign to us, in order to safeguard our claims against it, those<br />
claims which have accrued against a third party as a result of combining the purchased<br />
item with a piece of real estate.<br />
(8) On request by the Purchaser, we undertake to release the securities to which we are<br />
entitled if the realizable value of our securities exceeds the debts to be secured by more<br />
than 10%; we shall decide which securities are to be released.<br />
§ 11 Applicable law place of jurisdiction place of performance<br />
(1) If the Purchaser is a businessman, our place of business shall be the place of jurisdiction.<br />
However, we shall also be entitled to take legal proceedings against the Purchaser in<br />
another lawful place of jurisdiction.<br />
(2) The laws of the Federal Republic of Germany shall apply; any applicability of UN sales<br />
law shall be excluded.<br />
(3) Provided that no contrary arrangements are made in the order confirmation, our place<br />
of business shall be the place of performance.<br />
(4) Should any individual provisions be ineffective or lose their effectiveness as a result of<br />
circumstances arising later, this shall not affect the effectiveness of the other provisions.<br />
<strong>Kludi</strong> GmbH & Co. KG<br />
Date: January 2011<br />
41