General purchasing terms

1. Legal basics
1.1 For the order of VARIALUX GmbH (following named as buyer) apply the following terms. Otherwise the legal regulations of the law of the Federal Republic of Germany apply exclusively.
1.2 Agreements, which can cause a deviating from contents of this order or the following terms, require the written confirmation of the buyer to their effectiveness. In relation to any deviations n the confirmation of order the buyer’s silence does not apply as agreement.

2. Obligation to order
The buyer retains the revocation of the placed order at any time, if not within 7 days after the order is placed the seller gets a written acknowledgement of the order with detailed information concerning price and delivery period.

3. Demands on delivery or achievement
3.1 The delivery is to fulfil in a corresponding way of construction and version, according to the agreed achievement, the agreed sphere of action and the agreed requirements of power and energy.
3.2 All elements and materials, for whose kind DIN-standards exist, must correspond to these DIN-standards. Differences to the DIN-standards require the buyer’s written agreement.
3.3 All parts of delivery and achievement, including security and protective measures, have to be in accordance with regulations of law, supervisory authorities, social insurance against occupational accidents, branch associations and other authorities.
3.4 The seller is responsible to the buyer for the fact that the delivered elements do not injure patent law and other patent rights.
3.5 For delivered objects, whose handling is not generally known, installation and operating instruction are unasked attached to the delivery, including declaration, for which order they are intended. In the case of omission the seller is responsible also for defects, which are caused by inappropriate operation.

4. Warranty
4.1 The seller ensures that the supplied thing is faultless and exhibits the assured Characteristics. The seller has to immediately eliminate all errors arisen during the guarantee time in the case of incorrect supply upon the request of the buyer at his expense freely point of usage.
4.2 In urgent cases the buyer is entitled also without period setting to make the necessary repairs or replacement and/or spare part procurement in one him been suitable appearing way at expense of the seller or transfer third. The seller has to bear all costs which can be spent on such a replacement.
4.3 The warranty period is 24 months, starting with the implementation of the delivered object.
4.4 For rework and replacement parts a new full warranty begins.

5. Liability for damages
5.1 The liability of the seller to achieve compensation is determined by legal regulations, sellers restrictions of liability are not part of the contract.
5.2 If the buyer has a damage resultant from use of third parties, which is replaceable by the seller, the buyer will demand an immediately release from the seller.
5.3 Insists a third party legally on a not use, then the seller has to take back or remove on demand of the buyer his achievement at his costs and to reimburse the costs. Furthermore, the buyer can require compensation of the damage which is resulted to him.

6. Insurance
The seller declares that he has a sufficient liability insurance protection.

Order documents
7.1 All designs, models left for the execution of the order and other documents remain property of the buyer. They may be passed on without written consent of the buyer neither be multiplied nor on third, be used still for these or for complaint purposes or for own not agreed upon purposes of the seller. They have to be saved against unauthorised inspections or use. They are to be secured against unauthorized inspection or use. They must be sent back, as far as nothing different is agreed, at the latest with the remainder supply in useful condition to the buyer.
7.2 Models are made available if necessary and should be stored carefully. Model losses or damages are to be announced to the buyer immediately. The risk of the coincidental fall carriers the seller.

8. Price, payment
8.1 The agreed prices are fixed prices. They include costs for packaging, dispatch and insurance.
8.2 Payment takes place after completed delivery and received invoice, according to buyer’s choice within 14 days with 3% discount deduction or within 30 days net.
8.3 At performed payments of the buyer, which the seller has to refund, he has no set-off authority or retaining right in relation to the buyer, in case the contrary right is not unquestionable or legally binding discovered.

9. Concluding regulations
9.1 Place of performance of the delivery is the reception point, place of jurisdiction is Kamenz.
9.2 If one regulation of the contract, which was closed according to protruding conditions is ineffective, so this has no influence to the effectiveness of the other regulations. In place of the ineffective regulation comes a regulation, which is near to the content.

Arnsdorf, February 2003