§ 1 Court of Settlement

All legal relationships directly or indirectly derived herefrom (including law suits involving cheques, bills and other documents and including bankrupty and settlement suits) are subject to the court of Rotenburg/Fulda

§ 8 Payment

1.)The following terms of payment shall apply, if no agreement to the contrary has been made. Shipment takes place against cash on delivery or against advancepayment. In case of custom made products and first orders 30% down-payment will be become due after placing order. Rest-payment on delivery, payable within 10 days net.

§ 2 Place of Settlement

1.) Place of Settlement for delivery and payment is Rotenburg/Fulda

2.) If both parties aggreed to a delivery on account the date of invoice will always be the same as the date of shipment. Phostphoning this date is expressly precluded.

§ 3 Extend of supply commitment

1.) All statements about delivery-dates, quantities, capacities articles and qualities are approximate. Such statements shall be binding only to the extend they have been expressly referred in contract.

2.) Offers always are without obligations, unless terminable orders require a written confirmation to be valid, whose content is prevailing for the contract. Verbal agreements will become valid only after having given a written confirmation.

3.) If patterns are ordered they only will be delivered if the purchaser takes the charges of the delivered goods.

4.) Payments always will be taken to balance the oldest outstanding receivables.

5.) If after the contract is signed, reasonable doubt as to the solvency or creditworthiness of the purchaser becomes apparent, the supplier ist entitled either to demand advance payment or the provision of sufficient collateral, or to withdraw from the contract and to demand reimbursement from the purchaser of any costs arising therefrom. The same shall apply if the purchaser is in delay of acceptance or has already violated the stipulated terms of payment

§ 4 Shipment

1.) Shipment is ex suppliers place, without costs for freight and package.

2.) If if the purchaser is in delay of acceptance by own guilts the supplier has the right either to make out an invoice of arrears or to withdraw from the contract and claiming for damages after fixing a subsequent acceptance-time of 10 days.

§ 9 Delay of payment

1.) If the agreed dates of payment were exceeded, interest at the rate of 2% above the Federal Bank Rate, but not less than 8% will be charged, without special payment reminder beeing given, and without in any way restricting other rights in particular claims of damage.

§ 5 Interuption of delivery

1.)In the event of force majeure,riot, interuptions in manufacture and other circumstances beyond the suppliers control, or if the supply is temporarily interupted the delivery date postphone by a period equivalent to the duration of such interuption, but max. 5 weeks.

2.) The purchaser is entitled to withdraw partially or wholly from the contract if the delivery is not in time. In case the purchaser wants to take his right to withdraw he must give an written official advice 2 weeks before.

3.)Any claim for damages and reimburse- ment of expenses by the purchaser, particularly as a result of above terms shall be excluded.

§ 10 Conditions of payment

1.) Payment has to be in money, cheque or regular bank-transfer.

2.) The withholding of payment, or the deduction from monies due, as a result of claims the purchaser may have against the supplier are expressly excluded, except in those cases, where the supplier agrees to such an arrangement.

3.) If after express previous agreement, cheques or bills of exchange are accepted as payment - whereby such acceptance in no way affects the date on which the salesprice is due, - the discount and collection charges together with interest, all of which are part of the salesprice and as such immediately fall due and become payable, are to be paid.

§ 6 Subsequent delivery-time

1.) If the delivery-time has expired, automatically a subsequent delivery-time of 1 month becomes effective. In this respect, both parties shall have the right to withdraw from the contract after the expiration of this time limit.

2.) If the purchaser wants to withdraw from the contract, a term of subsequent delivery-time must be fixed (max 1 month) from the purchaser by threatening that otherwise he will withdraw from the contract after expiration of the subsequent delivery-time.

3.)Alterations, reductions and claims for damages are expressly precluded, ir- respective of supporting legal arguments.

§ 7 Liability for defects

1.) Defects have to be submitted to the supplier immediately, but latest after a period of 2 weeks after receipt.

2.) Provided that, without delay a proper report of proven defects is submitted, the supplier can decide either to repair the defective goods, which the purchaser has to send back immediately or to provide non-defective replacements free of charge.

3.) After time-expiration mentioned in pt. 1 the rules of legal law apply.

4.) Any damage caused by wrong handling or attendance will not come under guarantee. Also the guarantee expires, if the goods have suffered as a result of incorrect storrage by the purchaser, or if the goods have in any way been modified either by the purchaser or a third party.

5.) In case of hidden defects legal law applies.

§ 11 Reservation of ownership rights

1.) All goods supplied remain the sole property of the supplier until all future, conditional or limited claims arising from the whole business transaction, in particular from current invoices and current bills (including those presented by third parties), cessions or transfer of legal claims are settled in full. Goods remaining the property of the supplier (conditional goods) may not be sold, pledged, given away, leased or disposed in any way or removed to another place. As long as the goods remain the property of the supplier, the purchaser is responsible for maintaining the goods in good condition, for keeping them insured against fire and theft and for supplying the supplier with corresponding proof of this request.

2.) With processing of components the supplier gets co-ownership at the manufactured work in accordance with §§ 947 and 948 BGB, as long as payment did not take place.

3.) The purchaser must inform the supplier immediately of any distraint or any limitation of the suppliers rights by third parties, inform the executive body of the ownership rights and acknowledge these rights both to third parties and to the supplier in writing. Any violation of this commitment entitles the supplier without proof of purchaser's fault to demand reimbursement of all costs and damages. Any costs the supplier might incur in removing such distraint or other restriction by third parties or in recovering the goods must be repaid by the purchaser. Should the purchaser become insolvent or incur heavy debts, he must immediately seperate the conditional goods.