General Terms

issued by the Austrian Electrical and Electronics Industry Association

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1. Scope

1.1 These General Terms shall govern legal transactions between business enterprises,
namely the delivery of commodities and, mutatis mutandis, the
rendering of services. Software transactions are with precedence governed
by the Software Conditions issued by the Austrian Electrical and Electronics
Industry Association, assembly work by the Terms and Conditions for
Assembly Work issued by the Austrian Power Current and Light Current
Engineering Industry and/or (where applicable) the Terms and Conditions
for the Assembly of Electrical Equipment used in Medicine issued by the
Austrian Electrical and Electronics Industry (the current versions are available
at www.feei.at).
1.2 Any departure from the terms and conditions mentioned in 1.1 above shall
be valid only if expressly accepted in writing by Seller.
2. Submission of offers
2.1 Seller’s offers shall be deemed offers without engagement.
2.2 Tender documents and project documentation must not be duplicated nor
made available to third parties without the permission of Seller. They may
be claimed back at any time and shall be returned to Seller immediately if
the order is placed elsewhere.
3. Conclusion of contract
3.1 The contract shall be deemed concluded upon written confirmation by Seller
of an order received or upon dispatch of a delivery.
3.2 Particulars appearing in catalog, folders etc. as well as any oral or written
statements shall only be binding if Seller makes express reference to them
in the confirmation of the order.
3.3 Subsequent amendments of or additions to the contract shalI be subject to
written confirmation.

4. Prices

4.1 Prices shall be quoted ex works or ex Seller’s warehouse without VAT, packing
and packaging, loading, disassembly, take-back and proper recycling
and disposal of waste electrical and electronic equipment for commercial
purposes as defined by the Ordinance Regulating the Handling of Waste
Electrical Equipment. Buyer shall be liable for any and all charges, taxes
or other duties levied in respect of delivery. If the terms of delivery include
transport to a destination designated by Buyer, transport costs as weIl as the
cost of any transport insurance desired by Buyer shall be borne by the latter.
Delivery does not, however, include unloading and subsequent handling.
Packaging materials will be taken back only by express agreement.
4.2 Seller reserves the right to modify prices if the order placed is not in accordance
with the offer submitted.
4.3 Prices are based on costs obtaining at the time of the first quotation. In the
event that the costs have increased by the time of delivery, Seller shall have
the right to adjust prices accordingly.
4.4 In carrying out repair orders, Seller shall provide all services deemed expedient
and shall charge Buyer for the same on the basis of the work input
and/or expenditures required. The same holds for any services or additional
services the expediency of which becomes apparent only as the repair order
is executed. ln such an event special notification of Buyer shall not be required.
4.5 Expenses for estimates of costs of repair and maintenance or for expert
valuations shall be invoiced to Buyer.

5. Delivery

5.1 The period allowed for delivery shall commence at the latest of the following
dates:
a) the date of order confirmation by Seller;
b) the date of fulfillment by Buyer of all the conditions, technical, commercial
and other, for which he is responsible;
c) the date of receipt by Seller of a deposit or security due before delivery of
the goods in question.
5.2 Buyer shall obtain whatever licences or approvals may be required from
authorities or third parties for the construction of plant and equipment. If the
granting of such licences or approvals is delayed for any reason the delivery
period shall be extended accordingly.
5.3 Seller may carry out, and charge Buyer for, partial or advance deliveries. If
delivery on call is agreed upon, the commodity shall be deemed called off at
the Iatest one year after the order was placed.
5.4 In case of unforeseeable circumstances or circumstances beyond the parties
control, such as all cases of force majeure, which impede compliance with
the agreed period of delivery, the latter shall be extended in any case for the
duration of such circumstances; these include in particular armed conflicts,
official interventions and prohibitions, delays in transport or customs clearance,
damages in transit, energy shortage and raw materials scarcity, labor
disputes, and default on performance by a major component supplier who is
difficult to replace. The aforesaid circumstances shall be deemed to prevail
irrespective of whether they affect Seller or his subcontractor(s).
5.5 If a contractual penalty for default of delivery was agreed upon by contracting
parties when the contract was concluded, it shall be executed as follows,
and any deviations concerning individual items shall not affect the remaining
provisions: Where delay in performance can be shown to have occurred
solely through the fault of Seller, Buyer may claim for each completed week
of delay an indemnity of at most one half of one per cent, a total of no more
than 5 %, however, of the value of that part of the goods to be delivered
which cannot be used on account of Seller’s failure to deliver an essential
part thereof, provided the Buyer has suffered a damage to the aforesaid
extent. Assertion of rights of damages exceeding this extent is precluded.

6. Passage of risk and Place of performance

6.1 Enjoyment and risk shall pass to Buyer at the time of departure of the goods ex
works or ex warehouse regardless of the terms of quotation (such as carriage
paid, C.I.F. etc.) agreed upon. This provision also includes the case of shipment
being effected, organised and supervised by Seller and the case of delivery being
made in connection with assembly work to be undertaken by Seller.
6.2 For services the place of performance shall be the place at which the service
is rendered; the risk in respect of such services or any part thereof that may
have been agreed upon shall pass to Buyer at the time the services have been
rendered.

7. Payment

7.1 Unless otherwise agreed, one third of the purchase price shall fall due at the
time of receipt by Buyer of the order confirmation of Seller, one third after
half the delivery period has elapsed and the balance at the time of delivery.
Irrespective thereof the turnover tax comprised in the amount of the invoice
shall be paid within 30 days of the invoice date.
7.2 In the case of part settlements the individual part payments shall fall due
upon receipt of the respective invoices. The same shall apply to amounts
invoiced for additional deliveries or resulting from additional agreements
beyond the scope of the original contract, irrespective of the terms of payment
agreed upon for the principal delivery.
7.3 Payment shall be made without any discount free Seller’s domicile in the
agreed currency. Drafts and checks shaII be accepted on account of payment
only, with all interest, fees and charges in connection therewith (such as collection
and discounting charges) to be borne by Buyer.
7.4 Buyer shall not be entitled to withhold or offset payment on the grounds of
any warranty claims or other counterclaims.
7.5 Payment shall be deemed to have been effected on the date at which the
amount in question is at Seller’s disposal.
7.6 If Buyer fails to meet the terms of payment or any other obligation arising
from this or other transactions, Seller may without prejudice to his other
rights
a) suspend performance of his own obligations until payments have been
made or other obligations fulfilled, and exercise his right to extend the
period of delivery to a reasonable extent,
b) call in debts arisen from this or any other transactions and charge default
interest amounting to 1.25 % per month plus turnover tax for these amounts
beginning with the due dates, unless Seller proves costs exceeding this.
In any case Seller has the right to invoice all expenses arising prior to a
lawsuit, especially reminder charges and lawyer’s fees.
7.7 Discounts or bonuses are subject to complete payment in due time.
7.8 Seller retains title to all goods delivered by him until receipt of all amounts
invoiced including interests and charges.
Buyer herewith assigns his claim out of a resale of conditional commodities,
even if they are processed, transformed or combined with other commodities,
to Seller to secure the latter’s purchase money claim. In the case
of resale granting respite Buyer shall have the power of disposal of the product
under retention of ownership only with the proviso that upon reselling
Buyer notifies the secondary buyer of the assignment for security or enters
the assignment in his account books. Upon request Buyer has to notify the
assigned claim and the debtor thereof to Seller, and to make all information
and material required for his debt collection available and to notify the assignment
to the third-party debtor. If the goods are attached or otherwise
levied upon, Buyer shalI draw attention to Sellers title and immediately
inform Seller of the attachment or levy.
General Terms of Delivery
issued by the Austrian Electrical and Electronics Industry Association

8. Warranty and acceptance of obligation to repair defects

8.1 Once the agreed terms of payment have been complied with, Seller shall,
subject to the conditions hereunder, remedy any defect existing at the time
of acceptance of the article in question whether due to faulty design, material
or manufacture, that impairs the functioning of said article. From particulars
appearing in catalogues, folders, promotional literature as well as
written or oral statements which have not been included in the agreement no
warranty obligations may be deduced.
8.2 Unless special warranty periods operate for individual items the warranty
period shall be 12 months. These conditions shall also apply to any goods
supplied, or services rendered in respect of goods supplied, that are firmly
attached to buildings or the ground. The warranty period begins at the point
of passage of risk acc. to paragraph 6.
8.3 The foregoing warranty obligations are conditional upon the Buyer giving
immediate notice in writing of any defects that have occurred and such notice
reaching the Seller. Buyer shall prove immediately the presence of a defect,
in particular he shall make available immediately to Seller all material
and data in his possession. Upon receipt of such notice Seller shall, in the
case of a defect covered by the warranty under 8.1 above, have the option to
replace the defective goods or defective parts thereof or else to repair them
on Buyer’s premises or have them returned for repair, or to grant a fair and
reasonable price reduction.
8.4 Any expenses incurred in connection with rectifying defects (e. g. expenses
for assembly and disassembly, transport, waste disposal, travel and siteto-
quarters time) shall be borne by Buyer. For warranty work on Buyer’s
premises Buyer shall make available free of charge any assistance, hoisting
gear, scaffolding and sundry supplies and incidentals that may he required.
Replaced parts shall become the property of Seller.
8.5 If an article is manufactured by Seller on the basis of design data, design
drawings, models or other specifications supplied by Buyer, Seller’s warranty
shall be restricted to non-compliance with Buyers specifications.
8.6 Seller’s warranty obligation shall not extend to any defects due to assembly
and installation work not undertaken by Seller, inadequate equipment, or
due to non-compliance with installation requirements and operating conditions,
overloading of parts in excess of the design values stipulated by
Seller, negligent or faulty handling or the use of inappropriate materials, nor
for defects attributable to material supplied by Buyer. Nor shall Seller be liable
for damage due to acts of third parties, atmospheric discharges. Excess
voltage and chemical influences. The warranty does not cover the replacement
of parts subject to natural wear and tear. Seller accepts no warranty for
the sale of used goods.
8.7 The warranty shall lapse immediately if, without written consent of Seller,
Buyer himself or a third party not expressly authorised undertakes modifications
or repairs on any items delivered.
8.8 Claims acc. to § 933b ABGB are struck by the statute of limitation with
lapse of the period mentioned under point 8.2.
8.9 The provisions of sub-paragraphs 8.1 to 8.7 shall apply, mutatis mutandis, to
all cases where the obligation to repair defects has to be accepted for other
reasons laid down by law.

9. Withdrawal from contract

9.1 Buyer may withdraw from the contract only in the event of delays caused by
gross negligence on the part of Seller and only after a reasonable period of
grace has elapsed. Withdrawal from contract shall be notified in writing by
registered mail.
9.2 Irrespective of his other rights Seller shall be entitled to withdraw from the
contract
a) if the execution of delivery or the inception or continuation of services to
be rendered under the contract is made impossible for reasons within the
responsibility of Buyer and if the delay is extended beyond a reasonable
period of grace allowed;
b) if doubts have arisen as to Buyer’s creditworthiness and if same fails,
on Seller’s request, to make an advance payment or to provide adequate
security prior to delivery, or
c) if, for reasons mentioned in 5.4, the period allowed for delivery is extended
by more than half of the period originally agreed or by at least 6
months.
9.3 For the reasons given above withdrawal from the contract shall also be possible
in respect of any outstanding part of the delivery or service contracted for.
9.4 If bankruptcy proceedings are instituted against any contracting party or
an application for bankruptcy proceedings against that party is not granted
for insufficiency of assets, the other party may withdraw from the contract
without allowing a period of grace.
9.5 Without prejudice to Seller’s claim for damages including expenses arising
prior to a lawsuit, upon withdrawal from contract any open accounts in
respect of deliveries made or services rendered in whole or in part shall be
settled according to contract This provision also covers deliveries or services
not yet accepted by Buyer as weIl as any preparatory acts performed
by Seller. Seller shall, however, have the option alternatively to require the
restitution of articles already delivered.
9.6 Withdrawal from contract shall have no consequences other than those stipulated
above.
9.7 The assertion of claims on the ground of laesio enormis, error, or lapse of
purpose by the Buyer is excluded.

10. Disposal of waste electrical and electronic equipment

10.1 The Buyer of electrical/electronic equipment for commercial purposes, incorporated
in Austria, is responsible for the financing of the collection and
treatment of waste electrical and electronic equipment as defined by the
Ordinance Regulating the Handling of Waste Electrical Equipment, if he is
himself the user of the electrical/electronic equipment. If the Buyer is not
the end user, he shall transfer the full financial commitment to his customer
by agreement and furnish proof thereof to the Seller.
10.2 The Buyer incorporated in Austria shall ensure that the Seller is provided
with all information necessary to meet the Seller’s obligations as manufacturer/
importer, particularly according to §§ 11 and 24 of the Ordinance
Regulating the Handling of Waste Electrical Equipment and the Waste Management
Act.
10.3 The Buyer incorporated in Austria is liable vis-à-vis the Seller for any damage
and other financial disadvantages incurred by Seller due to Buyer’s
failure to meet or fully meet his financing commitment or any other obligations
according to Article 10. The Buyer shall bear the burden of proof of
performance of this obligation.

11. Seller’s liability

11.1 Outside the scope of the Product Liability Act, Seller shall be liable only if
the damage in question is proved to be due to intentional acts or acts of gross
negligence, within the limits of statutory provisions. Seller shall not be liable
for damage due to acts of ordinary negligence nor for consequential
damages or damages for pure economic loss, loss of profits, loss of savings
or interest or damage resulting from third-party claims against buyer.
11.2 Seller shall not be liable for damages in case of non-compliance with instructions
for assembly, commissioning and operation (such as are contained
in instructions for use) or non-compliance with licensing requirements.
11.3 Claims that exceed the contractual penalties that were agreed on are excluded
from the respective title.

12. Industrial property rights and copyrights

12.1 Buyer shall indemnify Seller and hold him harmless against any claims for
any infringement of industrial property rights raised against him if Seller
manufactures an article pursuant to any design data, design drawings, models
or other specifications made available to him by Buyer.
12.2 Design documents such as plans and drawings and other technical specifications
as well as samples, catalogues, prospectuses, pictures and the like
shall remain the intellectual property of Seller and are subject to the relevant
statutory provisions governing reproduction, imitation, competition etc. The
provisions of 22 above shall also cover design documents.

13. General

Should individual provisions of the contract or of these provisions be invalid
the validity of the other provisions shall not be affected. The invalid provision
shall be replaced by a valid one, which comes as close to the target goal
as possible.

14. Jurisdiction and applicable law

Any litigations arising under the contract including litigations over the existence
or non-existence thereof shall fall within the exclusive jurisdiction
of the competent court at Sellers domicile; the competent court of the Bezirksgericht
Innere Stadt, Vienna, shall have exclusive jurisdiction if Seller
is domiciled in Vienna. The contract is subject to Austrian law excluding
the referral rules. Application of the UN Convention on Contracts for the
lnternational Sale of Goods is renounced.

Last revised in March 2009