| Recommended  by ZVEI - Zentralverband Elektrotechnik- und Elektronikindustrie e. V. | 
      
        | – as of June  2005 – | 
      
        |  | 
      
        | I. GENERAL PROVISIONS | 
      
        |  | 
      
        | 1. Legal  relations between Supplier and Purchaser in connection with supplies
  and/or  services of the Supplier (hereinafter referred to as “Supplies”) shall be
  solely  governed by the present Terms and Conditions. The Purchaser’s general terms and conditions
  shall apply  only if expressly accepted by the Supplier in writing. The
  scope of  delivery shall be determined by the congruent mutual written declarations. | 
      
        | 2. The  Supplier herewith reserves any industrial property rights and/or copyrights
  pertaining to  its cost estimates, drawings and other documents (hereinafter
  referred to  as “Documents”). The Documents shall not be made
  accessible to  third parties without the Supplier’s prior consent and shall,
  upon request,  be returned without undue delay to the Supplier if the contract
  is not  awarded to the Supplier. Sentences 1 and 2 shall apply mutatis mutandis
  to the  Purchaser’s Documents; these may, however, be made accessible
to those  third parties to whom the Supplier has rightfully subcontracted
  Supplies. | 
      
        | 3. The  Purchaser has the non-exclusive right to use standard software and
  firmware,  provided that it remains unchanged, is used within the agreed performance
  parameters,  and on the agreed equipment. Without express agreement
  the Purchaser  may make one back-up copy of standard software. | 
      
        | 4. Partial  deliveries are allowed, unless they are unreasonable to accept for the
  Purchaser. | 
      
        | 5. The term  „claim for damages” used in the present Terms and Conditions also includes claims
  for  indemnification for useless expenditure. | 
      
        |  | 
      
        | II. PRICES, TERMS OF PAYMENT, AND  SET-OFF | 
      
        |  | 
      
        | 1. Prices are  ex works and excluding packaging; value added tax shall be
  added at the  then applicable rate. | 
      
        | 2. If the  Supplier is also responsible for assembly or erection and unless otherwise
  agreed, the  Purchaser shall pay the agreed remuneration and any incidental
  costs  required, e. g. for traveling and transport as well as allowances. | 
      
        | 3. Payments  shall be made free Supplier’s paying office. | 
      
        | 4. The  Purchaser may set off only those claims which are undisputed or nonappealable. | 
      
        |  | 
      
        | III. RETENTION OF TITLE | 
      
        |  | 
      
        | 1. The items  pertaining to the Supplies (“Retained Goods”) shall remain the
  Supplier’s  property until each and every claim the Supplier has against the
  Purchaser on  account of the business relationship has been fulfilled. If the
  combined  value of the Supplier’s security interests exceeds the value of all
  secured  claims by more than 10 %, the Supplier shall release a corresponding
  part of the  security interest if so requested by the Purchaser; the
  Supplier  shall be entitled to choose which security interest it wishes to
  release. | 
      
        | 2. For the  duration of the retention of title, the Purchaser may not pledge the
  Retained  Goods or use them as security, and resale shall be possible only for
  resellers in  the ordinary course of their business and only on condition that
  the reseller  receives payment from its customer or makes the transfer of property
  to the  customer dependent upon the customer fulfilling its obligation to
  effect  payment. | 
      
        | 3. The  Purchaser shall inform the Supplier forthwith of any seizure or other act
  of  intervention by third parties. | 
      
        | 4. Where the  Purchaser fails to fulfil its duties, fails to make payment due, or
  otherwise  violates its obligations the Supplier shall be entitled to rescind the
  contract and  take back the Retained Goods in the case of continued failure
  following  expiry of a reasonable remedy period set by the Supplier; the statutory
  provisions  providing that a remedy period is not needed shall be unaffected.
  The Purchaser  shall be obliged to return the Retained Goods.
  The fact that  the Supplier takes back Retained Goods and/or exercises the
  retention of  title, or has the Retained Goods seized, shall not be construed
  to constitute  a rescission of the contract, unless the Supplier so expressly
  declares. | 
      
        |  | 
      
        | IV. TIME FOR SUPPLIES; DELAY | 
      
        |  | 
      
        | 1. Times set  for Supplies shall only be binding if all Documents to be furnished
  by the  Purchaser, necessary permits and approvals, especially concerning
  plans, are  received in time and if agreed terms of payment and other obligations
  of the Purchaser  are fulfilled. If these conditions are not fulfilled in time,
  times set  shall be extended reasonably; this shall not apply if the Supplier is
  responsible  for the delay. | 
      
        | 2. If  non-observance of the times set is due to force majeure such as mobilization,
  war,  rebellion or similar events, e. g. strike or lockout, such time shall be
  extended  accordingly. The same shall apply if the Supplier does not receive
  its own  supplies in due time or in due form. | 
      
        | 3. If the  Supplier is responsible for the delay (hereinafter referred to as “Delay”)
  and the  Purchaser has demonstrably suffered a loss therefrom, the
  Purchaser may  claim a compensation as liquidated damages of 0.5 % for
  every  completed week of Delay, but in no case more than a total of 5 % of
  the price of that  part of the Supplies which due to the Delay could not be put
  to the  intended use. | 
      
        | 4.  Purchaser’s claims for damages due to delayed Supplies as well as claims
  for damages  in lieu of performance exceeding the limits specified in No. 3
  above are  excluded in all cases of delayed Supplies, even upon expiry of a
  time set to  the Supplier to effect the Supplies. This shall not apply in cases
  of mandatory  liability based on intent, gross negligence, or due to loss of life,
  bodily injury  or damage to health. Rescission of the contract by the
  Purchaser  based on statute is limited to cases where the Supplier is responsible
  for the  delay. The above provisions do not imply a change in the burden
  of proof to  the detriment of the Purchaser. | 
      
        | 5. At the  Supplier’s request, the Purchaser shall declare within a reasonable
  period of  time whether it, due to the delayed Supplies, rescinds the contract
  or insists on  the delivery of the Supplies. | 
      
        | 6. If  dispatch or delivery, due to Purchaser’s request, is delayed by more than
  one month  after notification of the readiness for dispatch was given, the
  Purchaser may  be charged, for every additional month commenced, storage
  costs of 0.5  % of the price of the items of the Supplies, but in no case more
  than a total  of 5 %. The parties to the contract may prove that higher or, as
  the case may  be, lower storage costs have been incurred. | 
      
        |  | 
      
        | V. PASSING OF RISK | 
      
        |  | 
      
        | 1. Even where  delivery has been agreed freight free, the risk shall pass to the
  Purchaser as  follows: | 
      
        | a) if the  Supplies do not include assembly or erection, at the time when the
  Supplies are  shipped or picked up by the carrier. Upon the Purchaser’s
  request, the  Supplier shall insure the Supplies against the usual risks of
  transport at  the Purchaser’s expense; | 
      
        | b) if the  Supplies include assembly or erection, at the day of taking over in
  the  Purchaser’s own works or, if so agreed, after a fault-free trial run. | 
      
        | 2. The risk  shall pass to the Purchaser if dispatch, delivery, the start or performance
  of assembly  or erection, the taking over in the Purchaser’s own
  works, or the  trial run is delayed for reasons for which the Purchaser is
  responsible  or if the Purchaser has otherwise failed to accept the Supplies. | 
      
        |  | 
      
        | VI. ASSEMBLY AND ERECTION | 
      
        |  | 
      
        | Unless  otherwise agreed in written form, assembly and erection shall be subject
  to the  following provisions: | 
      
        | 1. The  Purchaser shall provide at its own expense and in due time: | 
      
        | a) all earth  and construction work and other ancillary work outside the
  Supplier’s  scope, including the necessary skilled and unskilled labor, construction
  materials and  tools, | 
      
        | b) the  equipment and materials necessary for assembly and commissioning
  such as  scaffolds, lifting equipment and other devices as well as fuels and
  lubricants, | 
      
        | c) energy and  water at the point of use including connections, heating and
  lighting, | 
      
        | d) suitable  dry and lockable rooms of sufficient size adjacent to the site for
  the storage  of machine parts, apparatus, materials, tools, etc. and adequate
  working and  recreation rooms for the erection personnel, including
  sanitary facilities  as are appropriate in the specific circumstances; furthermore,
  the Purchaser  shall take all measures it would take for the protection
  of its own  possessions to protect the possessions of the Supplier and
  of the  erection personnel at the site, | 
      
        | e) protective  clothing and protective devices needed due to particular conditions
  prevailing on  the specific site. | 
      
        | 2. Before the  erection work starts, the Purchaser shall unsolicitedly make available
  any  information required concerning the location of concealed electric
  power, gas  and water lines or of similar installations as well as the necessary
  structural  data. | 
      
        | 3. Prior to  assembly or erection, the materials and equipment necessary for the
  work to start  must be available on the site of assembly or erection and any
  preparatory  work must have advanced to such a degree that assembly or
  erection can  be started as agreed and carried out without interruption.
  Access roads  and the site of assembly or erection must be level and clear. | 
      
        | 4. If  assembly, erection or commissioning is delayed due to circumstances for
  which the  Supplier is not responsible, the Purchaser shall bear the reasonable
  costs  incurred for idle times and any additional traveling expenditure of
  the Supplier  or the erection personnel. | 
      
        | 5. The  Purchaser shall attest to the hours worked by the erection personnel
  towards the  Supplier at weekly intervals and the Purchaser shall immediately
  confirm in  written form if assembly, erection or commissioning has been
  completed. | 
      
        | 6. If, after  completion, the Supplier demands acceptance of the Supplies, the
  Purchaser  shall comply therewith within a period of two weeks. In default
  thereof,  acceptance is deemed to have taken place. Acceptance is also deemed
  to have been  effected if the Supplies are put to use, after completion of
  an agreed  test phase, if any. | 
      
        |  | 
      
        | VII. RECEIVING SUPPLIES | 
      
        |  | 
      
        | The Purchaser  shall not refuse to receive Supplies due to minor defects. | 
      
        |  | 
      
        | VIII. DEFECTS AS TO QUALITY | 
      
        |  | 
      
        | The Supplier  shall be liable for defects as to quality (“Sachmängel”, hereinafter
  referred to  as “Defects”,) as follows: | 
      
        | 1. Defective  parts or defective services shall be, at the Supplier’s discretion,
  repaired,  replaced or provided again free of charge, provided that the reason
  for the  Defect had already existed at the time when the risk passed. | 
      
        | 2. Claims for  repair or replacement are subject to a statute of limitations of 12
  months  calculated from the start of the statutory statute of limitations; the
  same shall  apply mutatis mutandis in the case of rescission and reduction.
  This shall  not apply where longer periods are prescribed by law according to
  Sec. 438  para. 1 No. 2 (buildings and things used for a building), Sec. 479
  para. 1  (right of recourse), and Sec. 634a para. 1 No. 2 (defects of a building)
  German Civil  Code (“BGB”), in the case of intent, fraudulent concealment
  of the Defect  or non-compliance with guaranteed characteristics
  (“Beschaffenheitsgarantie”).  The legal provisions regarding suspension of the
  statute of  limitations (“Ablaufhemmung”, “Hemmung”) and recommencement
  of limitation  periods shall be unaffected. | 
      
        | 3.  Notifications of Defect by the Purchaser shall be given in written form without
  undue delay. | 
      
        | 4. In the  case of notification of a Defect, the Purchaser may withhold payments
  to an amount  that is in a reasonable proportion to the Defect. The Purchaser,
  however, may  withhold payments only if the subject-matter of the notification
  of the Defect  involved is justified and incontestable. The Purchaser has no
  right to  withhold payments to the extent that its claim of a Defect is time-barred.
  Unjustified  notifications of Defect shall entitle the Supplier to demand
  reimbursement  of its expenses by the Purchaser. | 
      
        | 5. The  Supplier shall be given the opportunity to repair or to replace the defective
  good  (“Nacherfüllung”) within a reasonable period of time. | 
      
        | 6. If repair  or replacement is unsuccessful, the Purchaser is entitled to rescind
  the contract  or reduce the remuneration; any claims for damages the
  Purchaser may  have according to No. 10 shall be unaffected. | 
      
        | 7. There  shall be no claims based on Defect in cases of insignificant deviations
  from the  agreed quality, of only minor impairment of usability, of natural wear
  and tear, or  damage arising after the passing of risk from faulty or negligent
  handling,  excessive strain, unsuitable equipment, defective civil works, inappropriate
  foundation  soil, or claims based on particular external influences
  not assumed  under the contract, or from non-reproducible software errors.
  Claims based  on defects attributable to improper modifications or repair
  work carried  out by the Purchaser or third parties and the consequences thereof
  are likewise  excluded. | 
      
        | 8. The  Purchaser shall have no claim with respect to expenses incurred in the
  course of  supplementary performance, including costs of travel, transport,
  labor, and  material, to the extent that expenses are increased because the
  subject-matter  of the Supplies has subsequently been brought to another
  location than  the Purchaser’s branch office, unless doing so complies with
  the normal  use of the Supplies. | 
      
        | 9. The  Purchaser’s right of recourse against the Supplier pursuant to Sec. 478
  BGB is  limited to cases where the Purchaser has not concluded an agreement
  with its  customers exceeding the scope of the statutory provisions
  governing  claims based on Defects. Moreover, No. 8 above shall apply mutatis
  mutandis to  the scope of the right of recourse the Purchaser has against
  the Supplier  pursuant to Sec. 478 para. 2 BGB. | 
      
        | 10. The  Purchaser shall have no claim for damages based on Defects. This shall
  not apply to  the extent that a Defect has been fraudulently concealed, the
  guaranteed  characteristics are not complied with, in the case of loss of life,
  bodily injury  or damage to health, restrictions to liberty and/or intentionally or
  grossly  negligent breach of contract on the part of the Supplier. The above
  provisions do  not imply a change in the burden of proof to the detriment of
  the  Purchaser. Any other or additional claims of the Purchaser exceeding the
  claims  provided for in this Article VIII, based on a Defect, are excluded. | 
      
        |  | 
      
        | IX. INDUSTRIAL PROPERTY RIGHTS AND  COPYRIGHT; DEFECTS IN TITLE | 
      
        |  | 
      
        | 1. Unless  otherwise agreed, the Supplier shall provide the Supplies free from
  third  parties’ industrial property rights and copyrights (hereinafter referred to
  as “IPR”)  with respect to the country of the place of delivery only. If a third
  party asserts  a justified claim against the Purchaser based on an infringement
  of an IPR by  the Supplies made by the Supplier and used in conformity
  with the  contract, the Supplier shall be liable to the Purchaser within the time
  period  stipulated in Article VIII No. 2 as follows: | 
      
        | a) The  Supplier shall choose whether to acquire, at its own expense, the
  right to use  the IPR with respect to the Supplies concerned or whether to
  modify the  Supplies such that they no longer infringe the IPR or replace
  them. If this  would be impossible for the Supplier under reasonable conditions,
  the Purchaser  may rescind the contract or reduce the remuneration
  pursuant to  the applicable statutory provisions. | 
      
        | b) The Supplier’s  liability to pay damages is governed by Article XI. | 
      
        | c) The above  obligations of the Supplier shall apply only if the Purchaser (i)
  immediately  notifies the Supplier of any such claim asserted by the third
  party in  written form, (ii) does not concede the existence of an infringement
  and (iii)  leaves any protective measures and settlement negotiations
  to the  Supplier’s discretion. If the Purchaser stops using the Supplies in
  order to  reduce the damage or for other good reason, it shall be obliged
  to point out  to the third party that no acknowledgement of the alleged
  infringement  may be inferred from the fact that the use has been discontinued. | 
      
        | 2. Claims of  the Purchaser shall be excluded if it is responsible for the infringement
  of an IPR. | 
      
        | 3. Claims of  the Purchaser are also excluded if the infringement of the IPR is
  caused by  specifications made by the Purchaser, by a type of use not foreseeable
  by the  Supplier or by the Supplies being modified by the Purchaser
  or being used  together with products not provided by the Supplier. | 
      
        | 4. In  addition, with respect to claims by the Purchaser pursuant to No. 1 a)
  above,  Article VIII Nos. 4, 5, and 9 shall apply mutatis mutandis in the event
  of an  infringement of an IPR. | 
      
        | 5. Where  other defects in title occur, Article VIII shall apply mutatis mutandis. | 
      
        | 6. Any other  claims of the Purchaser against the Supplier or its agents or any
  such claims  exceeding the claims provided for in this Article IX, based on a
  defect in  title, are excluded. | 
      
        |  | 
      
        | X. IMPOSSIBILITY OF PERFORMANCE; ADAPTATION  OF CONTRACT | 
      
        |  | 
      
        | 1. To the  extent that delivery is impossible, the Purchaser is entitled to claim
  damages,  unless the Supplier is not responsible for the impossibility. The
  Purchaser’s  claim for damages is, however, limited to an amount of 10 % of
  the value of  the part of the Supplies which, owing to the impossibility, cannot
  be put to the  intended use. This limitation shall not apply in the case of
  mandatory  liability based on intent, gross negligence or loss of life, bodily
  injury or  damage to health; this does not imply a change in the burden of
  proof to the  detriment of the Purchaser. The Purchaser’s right to rescind the
  contract  shall be unaffected. | 
      
        | 2. Where  unforeseeable events within the meaning of Article IV No. 2 substantially
  change the  economic importance or the contents of the Supplies or
  considerably  affect the Supplier’s business, the contract shall be adapted
  taking into  account the principles of reasonableness and good faith. To the
  extent this  is not justifiable for economic reasons, the Supplier shall have the
  right to  rescind the contract. If the Supplier intends to exercise its right to
  rescind the  contract, it shall notify the Purchaser thereof without undue delay
  after having  realized the repercussions of the event; this shall also apply even
  where an  extension of the delivery period has previously been agreed with
  the  Purchaser. | 
      
        |  | 
      
        | XI. OTHER CLAIMS FOR DAMAGES;  STATUTE OF LIMITATIONS | 
      
        |  | 
      
        | 1. The  Purchaser has no claim for damages based on whatever legal reason,
  including  infringement of duties arising in connection with the contract or
  tort. | 
      
        | 2. The above  shall not apply in the case of mandatory liability, e. g. under the
  German  Product Liability Act (“Produkthaftungsgesetz”), in the case of
  intent, gross  negligence, loss of life, bodily injury or damage to health, or
  breach of a  condition which goes to the root of the contract (“wesentliche
  Vertragspflichten”).  However, claims for damages arising from a breach of a
  condition  which goes to the root of the contract shall be limited to the foreseeable
  damage which  is intrinsic to the contract, unless caused by intent or
  gross  negligence or based on liability for loss of life, bodily injury or damage
  to health.  The above provision does not imply a change in the burden of
  proof to the  detriment of the Purchaser. | 
      
        | 3. To the  extent that the Purchaser has a claim for damages, it shall be timebarred
  upon  expiration of the statute of limitations pursuant to Article VIII No. 2. The same  shall apply to the Purchauser’s claims in connection with
  actions undertaken  to avoid any damage (e. g. callback). In the case of
  claims for  damages under the German Product Liability Act, the statutory
  statute of  limitations shall apply. | 
      
        |  | 
      
        | XII. VENUE AND APPLICABLE LAW | 
      
        |  | 
      
        | 1. If the  Purchaser is a businessman, sole venue for all disputes arising directly
  or indirectly  out of the contract shall be the Supplier’s place of business.
  However, the  Supplier may also bring an action at the Purchaser’s place of
  business. | 
      
        | 2. Legal  relations existing in connection with this contract shall be governed by
  German  substantive law, to the exclusion of the United Nations Convention
  on contracts  for the International Sale of Goods (CISG). | 
      
        |  | 
      
        | XIII. SEVERABILITY CLAUSE | 
      
        |  | 
      
        | The legal  invalidity of one or more provisions of this Agreement in no way affects
  the validity  of the remaining provisions. This shall not apply if it would be unreasonable
  for one of  the parties to be obligated to continue the contract. |