General Terms of Purchase for the technology branches FEDERATIE VAN TECHNOLOGIEBRANCHES

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1 General Terms of Purchase for the technology branches FEDERATIE VAN TECHNOLOGIEBRANCHES

2 Published by FHI, Federation of technology branches, established in Amersfoort, henceforth to be referred to as the Association, registered at the District Court in Utrecht on the 27th of August 1999, number 271/1999, also at the Chamber of Commerce and Manufacturers for Eemland in Amersfoort on number All copyrights to these General Purchase Conditions are strictly reserved. 2

3 GENERAL CONDITIONS FOR THE TECHNOLOGY BRANCHES The Federation of Technology Branches (FHI) is the umbrella organisation for all the companies the Netherlands offering and utilising technology in industry and the healthcare sector. FHI has divided these companies into four branches: Industrial Automation (IA) Industrial Electronics (IE) Laboratory Technology (LT) Medical Technology (MT) Within FHI there are a number of other bodies that collaborate with the four branches. The Development Club (the Association of Independent Product Development Companies) and the VLW (the Association of Netherlands Suppliers of Weighing Instruments) are the largest of these collaborative FHI bodies with their own association status. FHI promotes the collective and individual interests of approximately 800 companies affiliated to it. These companies employ around 33,000 people, the majority of whom can be described as being technical service providers. These companies have a joint annual turnover of 13 billion guilders. FHI s members are mainly business-oriented companies that offer technological services and products to both the domestic and foreign markets. FHI supports its members technology and product marketing in a variety of ways. This support is mainly at branch level and includes the organisation of specialised fairs, specific technology marketing activities, incidental and periodic conferences, seminars and technology days. In June 2000, FHI launched its comprehensive database on the Internet; called TechnoBase, its address is The site contains details of almost two thousand technology companies and offers affiliated companies the opportunity to display their package of products in the form of an e-commerce module. FHI also offers its members support in the day-to-day running of their business. A comprehensive package of services is available, from general supply and purchasing conditions to individual legal support from FHI Legal Services; from collective vehicle insurance to an insurance package for entrepreneurs in the various branches and from salary surveys and financial reports to framework agreements with Working Conditions legislators. Over the years FHI has grown considerably. National and European government deregulation and their increasing hands-off approach has forced the business world to expand their capacity to regulate themselves. The legal frameworks laid down by government necessitate a joint approach from the business community. This is illustrated by the following examples, ISO, CE marking, closing the Disablement Insurance Act gap, PEMBA, regulations governing leave and, of course, the packaging covenant. FHI is responsible for co-ordinating this joint approach and keeping its members informed about it. This requires a great deal of formal and informal discussion with Ministries and other organisations. 3

4 CONTENT 1. Parties 5 2. Applicability 5 3. Realisation of the Agreement 6 4. Risk 6 5. Quality and Capacity 6 6. Inspection, sampling, testing 7 7. Packaging 8 8. Transport 8 9. Delivery Shortcomings of the Vendor Restitution Processing etc. of the Purchaser s goods Assembly, mounting and installation Instructions, manuals, operating instructions etc Transfer of Ownership Acceptance Purchaser s Materials Confidentiality Statutory law; permits etc Liability Millennium guarantee Price Industrial and intellectual property Shortcoming of the purchaser Force Majeure The Purchaser s personnel and representatives Security Provision Termination Headings Applicable law; forum Validity 19 4

5 Article 1. Parties. 1.1 In these General Purchase Conditions the parties are referred to as follows: each member of a branch organisation which belongs to the Association for which, or in whose name these General Purchase Conditions apply, or in whose name these conditions are clearly and recognisably applied, to each member to whom a tender or offer is submitted, whichever member enters into a contract of sale as a purchaser, or whichever member enters into any other agreement concerning the supply and/or processing or assimilation of goods and/or carries out services as the party to whom, in whose name or on whose behalf goods must be supplied and/or services carried out, is henceforth referred to as the Purchaser 1.2 The party who, commissioned by or for the benefit of the Purchaser, sells or causes to be sold any products or goods and/or supplies or causes to be supplied and/or processes or treats, or causes to be processed or treated and/or carries out any service or services commissioned by or for the benefit of the Purchaser, or who submits an offer or a tender to the Purchaser which concerns the sale and/or supply of any products or goods, and/or the carrying out of any service whatsoever, or who is the Purchaser s other party in an agreement for the sale and/or supply of goods and/or carrying out of services, or who, commissioned by or for the benefit of the Purchaser, supplies goods or services in the broadest sense of the word, is henceforth referred to as the Vendor Article 2. Applicability. 2.1 These General Purchase Conditions are applicable to all offers and tenders submitted to the Purchaser, to all sale agreements whereby the Purchaser is either the purchaser or the purchasing agent, to all agreements concerning the supply of goods to, commissioned by or for the benefit of the Purchaser, and/or the processing, assimilation or installation of goods, commissioned by or for the benefit of the Purchaser, and/or the carrying out of services, commissioned by or for the benefit of the Purchaser, and for all deliveries and services carried out, commissioned by or for the benefit of the Purchaser. This entails, amongst other things, that these General Purchasing Conditions in their entirety are part of each of the agreements referred to in the previous sentence, unless specifically agreed otherwise, in writing, by the Purchaser and the Vendor. 2.2 General conditions other than the General Purchase Conditions in question, which are also understood to mean conditions of sale or supply or similar conditions set by the Vendor, irrespective of what the other general conditions may be called or whatsoever form they may have, do not apply to all that is applicable in accordance with article 2.1 of these General Purchase Conditions, and the application of all other such conditions is rejected out of hand. By entering into a sale agreement with the Purchaser whereby the Purchaser is the purchaser or the purchasing agent, or entering into an agreement with the Purchaser concerning the supply of goods to, commissioned by or for the benefit of the Purchaser and/or the processing, assimilation or installation of goods for, commissioned by or for the benefit of the Purchaser and/or the carrying out of services commissioned by or for the benefit of the Purchaser, or by commencing to supply the Purchaser or for the benefit of the Purchaser or carrying out a service for or for the benefit of the Purchaser, or submitting an offer or a tender to the Purchaser, the Vendor 5

6 accepts that the General Purchase Conditions in question apply and that no general conditions other than these General Purchase Conditions apply and, in as far as is relevant, the Vendor renounces any general conditions or standard conditions that could be applied, other than the General Purchase Conditions in question. Article 3. Realisation of the Agreement. 3.1 A sales agreement whereby the Purchaser is the purchaser or the purchasing agent, or an agreement concerning the supply of goods to, commissioned by or for the benefit of the Purchaser and/or the processing, assimilation or installation of goods for, commissioned by or for the benefit of the Purchaser and/or the carrying out of services for, commissioned by or for the benefit of the Purchaser, can only be realised after it has been explicitly, in writing, accepted or entered into by the Purchaser. This entails, for example, that an offer or a tender submitted to the Purchaser can only result in an agreement after it has been accepted, in writing, by the Buyer. 3.2 The scope and the contents of an agreement are determined by the acceptance thereof by the Purchaser as referred to in Article An agreement as referred to in Article 3.1 and amendments to it or any further agreements only bind the Purchaser when these have been entered into in writing and signed by one or more persons authorised to bind the Purchaser in this matter. Agreements made with personnel or representatives of the Purchaser who do not have the necessary authority are only binding in as far as they are confirmed in writing by one or more persons authorised to do so by the Purchaser. Article 4. Risk. 4.1 The risk involved for goods sold and/or supplied by or in the name of the Vendor, for the benefit of or commissioned by the Purchaser is, for the Vendor up until the moment that these goods have been definitely accepted by the Purchaser. 4.2 When delivery has been agreed, FOB, CIF, C & F, FAS, FOT, or in accordance with any other trade terms, this must be regarded as a cost-determining condition and has no further meaning for the transition of the risk, the delivery or the transfer of ownership. Article 5. Quality and Capacity. 5.1 Without prejudice to that stated in the instructions of the Purchaser and to the relevant technical and other specifications, designations and descriptions which are stated or stipulated by the Purchaser with regard to the goods to be supplied, commissioned by or for the benefit of the Purchaser, the Vendor guarantees, in any case: a) that these will comply exactly with that which has been specified or stated in the agreement by or in the name of the Purchaser with regard to the quantity, description and quality b) that these are manufactured, produced or composed from or using new raw materials and new materials of good quality; c) that these are skilfully manufactured, produced or composed; d) that these, are identical to samples, models, specimens or any examples shown or 6

7 made available to the Purchaser by the Vendor or his representative; e) that these meet the appropriate requirements with regard to capacity, production, efficiency, speed, purpose, usefulness, ease of use, return, performance etc., as agreed or as stated or described in the tender of the Purchaser and/or in the specifications relevant to it; f) that these are wholly suitable for the purpose or purposes stated by the Purchaser or his representative. 5.2 In the case that the supply consists of providing manpower, the Vendor guarantees that these workers shall fulfil that which has been agreed or, in the case that no specific agreements have been reached in this matter, that they shall have the necessary levels of skill to meet the requirements dictated by the circumstances, and that the agreed number of workers shall be constantly available for the period agreed. 5.3 If in the agreement and/or the accompanying appendices, reference is made to technical, safety, quality and/or other regulations not included in the agreement, the Vendor is expected to be familiar with them. Article 6. Inspection, sampling, testing. 6.1 Before sending or loading goods ordered by or for the benefit of Buyer, the Vendor is bound to inspect or to test these goods in order to ascertain that they wholly comply with that which was agreed between the parties. The Purchaser is entitled to expect that the Vendor shall give the said Purchaser timely notice of such an inspection, sampling or testing and offer the Purchaser or his representatives the opportunity to be present at and observe this inspection, sampling or testing. 6.2 Should the Purchaser so desire, the Vendor is bound to furnish the Purchaser with an authenticated copy of the inspection results or of the sampling or test report, whichever is applicable. If the Purchaser has given the Vendor sufficient notice, the Purchaser is also entitled to carry out, at his own expense, further inspections, sampling and/or tests of the whole or part of the consignment of goods to be delivered, in which case the Vendor is bound to offer his full co-operation in these further inspections, samplings and/or testing. 6.3 The Purchaser is empowered (although never bound) during the production, manufacture, mounting, assembly, mounting and installation of goods commissioned by or for the benefit of the Purchaser, to inspect these goods or have them inspected, sampled and/or tested during normal working hours, and the Vendor is bound to admit the employees and representatives of the Purchaser to the premises or areas where these goods are housed for this purpose, and if necessary to make available a suitable venue for the inspection, sampling or testing, and, furthermore, to offer the co-operation required for this purpose. 6.4 Unless otherwise previously specifically agreed by the parties in writing, the cost of inspections, sampling and testing referred to in this Article will be borne by the Vendor, with the exception of the costs of the Purchaser s personnel and representatives. 6.5 Should the Purchaser detect or discover in the course of an inspection, sampling or test that the goods or a part thereof, referred to in this Article commissioned by or for the benefit of the Purchaser, do not meet the description or indications stated in the tender or 7

8 the specifications thereof, or in any other sense do not meet the requirements of the agreement, or that it is likely that the goods or part thereof, shall not meet the requirements at the time of completion of production, manufacture, mounting, assembly, mounting or installation, the Purchaser shall inform the Vendor of this in writing; in which case the Vendor shall be bound to take all possible measures to ensure that the goods meet the stated descriptions, indications and specifications. Article 7. Packaging. 7.1 Goods commissioned by or for the benefit of the Purchaser that are to be delivered to him, should be packed adequately and in the correct manner, except in cases when due to the nature of the goods packaging in not possible or desirable. Furthermore, the goods should be adequately protected (by packaging and/or by other means) so that they reach their destination undamaged and in good condition. 7.2 The Vendor shall carefully follow the Purchaser s instructions in the matter of packaging, delivery, conserving, marking and accompanying dispatch documents. The Vendor shall precisely follow any special requirements concerning packaging and/or safety requested by the Purchaser or his representative. 7.3 The Purchaser is entitled to refuse out of hand deliveries that do not conform with that stated in Articles 7.1 or Loaned packing materials will be returned by the Purchaser within a reasonable period at the risk and expense of the Vendor. The Vendor will then fully reimburse the Purchaser the sum billed to him for these materials. Article 8. Transport. 8.1 Unless otherwise previously specifically agreed by the parties in writing, the Vendor is solely responsible for the transport and delivery of goods commissioned by or for the benefit of the Purchaser to the place or places where these goods should be delivered, deposited and/or installed, this includes the loading and unloading of these goods. The Vendor guarantees that the transport of the said goods shall be carried out by suitable means of transport and shall take place in such a way as to ensure that the goods shall be delivered efficiently and in a good, unchanged and undamaged condition. 8.2 The Vendor is bound to adequately insure himself to the satisfaction of the Purchaser against all risks connected with the transportation and delivery of goods (including loading and unloading) commissioned by or for the benefit of the Purchaser and to retain this insurance cover until such time as the risk connected with these goods has been transferred to the Buyer. The Vendor is bound to follow, to the letter, any instructions from the Purchaser concerning the insurance of the risks connected with transport. Article 9. Delivery. 9.1 The Vendor is bound to deliver goods or carry out services commissioned by or for the benefit of the Purchaser at the location or locations stipulated in the Purchaser s tender or to a location or locations agreed by the parties. 8

9 9.2 The Vendor is bound to deliver goods commissioned by or for the benefit of the Purchaser or to carry out services commissioned by or for the benefit of the Purchaser within the period or periods and at the time or times stipulated in the Purchaser s tender or as agreed by the parties. Agreed delivery times and delivery deadlines and times and deadlines for carrying out services are binding. Should the Vendor fail to meet these times and deaslines, he will automatically be liable without a reminder, demand or a notice of default being required. 9.3 As soon as the Vendor becomes aware that the goods commissioned by or for the benefit of the Purchaser cannot be delivered to the location or locations and/or within the period or periods and/or in the form the delivery should take place, or that services commissioned by or for the benefit of the Purchaser cannot be carried out at the location or locations and/or within the period or periods and/or in the manner in which they should be carried out, he is bound to inform the Purchaser of this immediately in writing. Irrespective of any other future rights (including the right to claim for damages), the Purchaser has the right to wholly or partially dissolve the agreement (irrespective of whether goods have been delivered or services carried out in accordance with the agreement), or to accept the late delivery of goods or services. If then, the Purchaser chooses to wholly or partially dissolve the agreement, the Purchaser has the right to (i)return the goods already delivered in accordance with the agreement or in that part of the agreement which has been dissolved, to the Vendor at the risk and expense of the Vendor, in which case the Vendor shall immediately reimburse the Purchaser for the amount of the goods in question, (ii) keep goods already delivered. 9.4 If for any reason the Purchaser is not in a position to, or is unable to take delivery of goods commissioned by or for the benefit of the Purchaser at the time or times agreed, the Purchaser has the right to request the Vendor to store the goods himself or to have them stored with one or more third parties if the Purchaser considers this to be acceptable. In such circumstances, the Vendor shall ensure than the goods shall be protected from outside influences and that the goods shall remain in a good, unchanged and unadulterated state. In such circumstances, the Purchaser is liable to reimburse the Vendor for the total storage of goods in accordance with usual tariffs of the branch in question. 9.5 If for any reason the Vendor wishes to store the goods commissioned by or for the benefit of the Purchaser, the expense and risk incurred will be solely for the Vendor; this type of storage does affect the rights of the Vendor to the Buyer. Article 10. Shortcomings of the Vendor The Vendor will automatically be liable, without a reminder, demand or a notice of default being required when goods commissioned by or for the benefit of the Purchaser are not delivered within the delivery times or delivery period, or at the agreed time or times, and/or to the agreed location or locations, and/or in the manner agreed, or when such goods or parts thereof do not conform with the designation, description or specifications in the tender or agreement or any accompanying document or do not display the features or qualities that the Purchaser might expect on the basis of the agreement, or are not of a quality that the Purchaser might expect, or do not satisfy the terms of the agreement in any other way. 9

10 10.2 The Vendor will automatically be liable without a reminder, demand or a notice of default being required when services commissioned by or for the benefit of the Purchaser are not carried out within the agreed period or periods, and/or at the agreed location or locations, and/or in the manner agreed, or when such services or parts thereof do not conform with the designation, description or specifications in the tender or agreement or any accompanying document, or do not display the features or qualities that the Purchaser might expect on the basis of the agreement, or are not of a quality that the Purchaser might expect, or do not satisfy the terms of the agreement in any other way If the Vendor is at fault, the Purchaser has the right to demand that the agreement should still be fulfilled in the correct way, or to demand that the agreement be dissolved immediately or at a date chosen by the Purchaser, without prejudice to that determined in Article If, in such a case, the Purchaser dissolves the contract, the Purchaser has the right to return to the Vendor the goods delivered in accordance with the agreement at the expense and risk of the Vendor, or to keep these goods or a part thereof, in the case of the latter, consistent with the circumstances, the Purchaser has the right to a reduction in the purchase price of the goods being kept, the Purchaser also has the right to offset amounts payable in connection with the goods retained against any sum that the Vendor may owe the Buyer The Vendor is liable for all damage either directly or indirectly caused by any failure on the part of the Vendor to fulfil his agreement with the Purchaser, and for all direct and indirect damage resulting from the Vendor s failure to inform the Purchaser on time of an expected delay or any other failing on the part of the Vendor. Article 11. Restitution Without prejudice to the right of the Purchaser to wholly or partially dissolve the agreement and to claim damages, the Vendor is bound to restore by means of replacement and/or repair at his own expense any defects in the goods or part thereof, supplied by the Vendor or supplied in his name, commissioned by or for the benefit of the Purchaser, as quickly as possible, without cost to the Buyer The Vendor is also bound to repair or replace at his own expense, any goods supplied by the Vendor or supplied in his name, commissioned by or for the benefit of the Purchaser, that have become damaged, defective or have gone missing during transport When the Vendor fails to meet his obligation to repair or replace goods as referred to in Articles 11,1 and 11.2 adequately or in time, and also in circumstances that the Purchaser judges to constitute an emergency situation, the Purchaser has the right to take action himself or to have this carried out by one or more third parties at the Vendor s risk and expense In cases of irreparable damage to goods that, stated in Article 11, binds the Vendor to replace the damaged or imperfect goods with all possible haste with goods in a perfect condition. 10

11 11.5 The ownership of and the risk involved in replacing goods is the sole responsibility of the Vendor from the time of replacement, and the Vendor should deal with this situation as quickly as possible. Article 12. Processing etc. of the Purchaser s goods If the Purchaser places goods at the disposal of the Vendor for processing, assimilation or for incorporation or mixing with goods not owned by the Purchaser, ownership of the firstmentioned goods is retained by the Purchaser, as do goods that have been processed, assimilated, incorporated or mixed. The Vendor is bound to take care of these goods in such a way that they are easily recognisable and identifiable as the property of the Purchaser All risk in connection with goods referred to in Article 12.1 remains with the Vendor until such time as the goods are delivered to the Purchaser or the Purchaser accepts them The Vendor is not empowered to use goods referred to in Article 12.1 in any of the following ways; to transfer or to mortgage them, to rent them out or make them available to third parties, or allow them to be used by third parties, the Vendor is not empowered to use these goods as collateral, and is not empowered to process or assimilate or incorporate or mix these goods with other goods or to perform actions on them that would cause them to become part of or an element of an item or goods no longer the property of the Purchaser If the Purchaser places goods at the disposal of the Vendor for mounting, the supervision of mounting, or for the purpose of testing or putting into operation goods already mounted or assembled, the Vendor bears the risk for these goods from the time that the goods are placed at his disposal until such time as the Purchaser accepts the delivery in question The provisions of these General Purchase Conditions with regard to goods supplied by the Vendor or supplied in his name, commissioned by or for the benefit of the Purchaser, also apply to the processing, assimilation, incorporation and mixing of goods as referred to in Article 12.1 and to goods that have already been processed, assimilated, incorporated and mixed The Vendor bears sole responsibility for all damage that may occur to goods as referred to in Article 12, as well as for all direct or indirect damage that these good may cause, the Vendor indemnifies the Purchaser against claims and demands from third parties based on or in connection with such damage. The Vendor is bound to be and to remain adequately insured against any liability resulting from claims for damages as referred to in the previous sentence. Article 13. Assembly, mounting and installation If the assignment or agreement stipulates that goods commissioned by or for the benefit of the Purchaser should be assembled, mounted and/or installed by the Vendor, the Vendor is bound to ensure that an adequate number of skilled workers are available for this purpose. 11

12 13.2 After the assembly, mounting and/or installation has been completed, a test or tests will be carried out in the presence of the Purchaser and the Vendor or their representatives, the Vendor is bound to ensure that an adequate number of skilled workers is available until the results of the test or tests have reached a satisfactory conclusion If, during the carrying out of a test as referred to in Article 13.2, any flaw, shortcoming or defect in or in connection with the goods or any part thereof comes to light, the Purchaser has the right to dissolve the agreement and to return the goods or any part thereof to the Vendor at the Vendors expense and risk, and to de-mount or cause to be de-mounted, dismantle or cause to be dismantled, remove or cause to be removed and/or to return or cause to be returned the goods or any part thereof to the Vendor, at the Vendor s expense and risk. If, in such a case, the Purchaser decides not to dissolve the agreement, the Vendor is bound to repair or cause to be repaired, replace or cause to be replaced and/or reassemble or cause to be re-assembled, remount or cause to be remounted and/or reinstall or cause to be reinstalled the flawed, defective or non-functioning goods at his own expense or risk. Article 14. Instructions, manuals, operating instructions etc The Vendor is bound to make available to the Purchaser, on time and in a practical form, clear instructions, manuals, operating instructions, mounting requirements, maintenance requirements etc. necessary for the use and/or application, the maintenance and repair, and the storage and care of goods commissioned by or for the benefit of the Purchaser, or to be supplied to or already supplied to him The Vendor is bound to make available to the Purchaser, on time and in a practical form, any necessary or desired instructions and other information concerning the features, properties, quality, the use and the application of goods commissioned by or for the benefit of the Purchaser to be supplied to him or already in his possession, in connection with the safety and/of the health and safety of persons and animals and/or in connection with the environment in the broadest sense of the word After completion of the assembly, mounting or installation of goods as referred to in Article 14.1, the Vendor shall make available for a period or periods as required, an adequate number of skilled workers to adequately instruct and/or train the Purchaser and his personnel and other employees in the use, application, maintenance and repair of the goods supplied If the Vendor supplies or plans to supply goods, commissioned by or for the benefit of the Purchaser, that do not require to be assembled, mounted or installed, but for which instruction and/or training is necessary or desirable, the Vendor shall make available an adequate number of skilled workers for this purpose, for a reasonable period of time Unless otherwise explicitly agreed in writing, manuals, instructions for use, mounting requirements, maintenance requirements and instructions will be drawn up in the Dutch language, and instructions and training will also be given in the Dutch language Manuals, instructions for use, mounting requirements, maintenance requirements and instructions on paper, diskette, CD-ROM or any other information carriers shall always be 12

13 included in the price; the same is true of instruction and training, unless it has been otherwise explicitly agreed in writing. Article 15. Transfer of Ownership In the event of, and in as far as is not explicitly agreed in writing and without prejudice to that concerning the risk that is specified in Article 4, and without prejudice to that which has been specified concerning the ownership of goods in Article 12 and Article 17, the ownership of goods that are to be supplied by the Vendor to the Purchaser will pass into the ownership of the Purchaser at the moment that these are unloaded at the place where they, in accordance with the agreement, are to be delivered In the event of the goods to be supplied to the Purchaser being stored in accordance with Article 9.4 and, in accordance with the agreement, the ownership thereof has been transferred to the Purchaser, the Vendor is bound to ensure that these goods are and remain stored in such a way that they are easily identifiable as belonging to the Purchaser, on the understanding that and with no prejudice to that which is determined in Article 4, the Vendor retains the risk for the goods up until the time that they are explicitly accepted by the Purchaser. Article 16. Acceptance Acceptance by the Purchaser of goods that need to be assembled or installed or are subject to one or more sampling or testing procedures shall be effected in writing. Acceptance of other goods shall be effected either in writing or by tacit approval if the Purchaser does not refuse delivery or has not expressed any complaints or claims in regard to these goods within fourteen days of delivery The Purchaser has the right to use the goods supplied by or on behalf of the Vendor before having accepted the ownership thereof. Article 17. Purchaser s Materials All documents, designs, drawings, models, specimens, facsimiles, films, photographs, tapes, diskettes, CD-ROMs and other sources of information, moulds, matrixes, gauges or specific tools and equipment and other materials that are put at the disposal of the Purchaser by the Vendor or on behalf of the Vendor or have been produced or purchased by the Vendor at the expense of the Purchaser or have been obtained for the benefit of the Purchaser in accordance with an agreement between the parties, either in connection with a proposal, an offer, a tender or delivery to the Purchaser, will either remain and/or become the property of the Purchaser As referred to in Article 17, the Vendor is bound, in his capacity of borrower, to retain possession of the goods and materials that have been lent to him and to ensure that they are clearly recognisable as the property of the Purchaser, to keep them in good condition and maintain them and to insure them and continue to insure all these means and materials for as long as these are used by or on behalf of, or are in the possession of the Purchaser and/or as long as any third party has possession of them, commissioned by or for the benefit of the Vendor. 13

14 17.3 The Vendor is bound to return, in good condition and/or to put at the disposal of, the means and materials referred to in Article 17.1 as soon as the Purchaser so requests and, should such a request not be made, to return these or to put them at the disposal of the Purchaser the instant the goods are delivered to the Purchaser or at any point in time that may have been explicitly and in writing agreed by the parties If the Vendor does not promptly return or place at the disposal of the Purchaser or gives back such materials as referred to in Article 17.1, in a damaged, well-worn or in a worse state, the Vendor is bound to compensate the Purchaser for all damage sustained in this connection; the Purchaser has the right to offset any cost or costs incurred by such damage against the amount that may be owed to the Vendor The Vendor shall use the means and materials referred to in Article 17.1 exclusively for the benefit of the goods to be supplied to the Purchaser and their delivery, or for services commissioned by or for the benefit of the Purchaser and the carrying out thereof, and the Vendor shall not use or permit the use of, copy, multiply or distribute these means and materials for any other purpose and shall not put them at the disposal or allow them to be put at the disposal of any third party, and not process or treat or cause to be processed or treated, or unite or mix or cause to be united or mixed these means and materials with any other goods, or perform or cause to be performed any other actions that would result in these parts or components becoming part or component of any other goods. Article 18. Confidentiality The Vendor is bound to maintain strict confidentiality and not to divulge to any third party all data and information to which he has been given access by, on behalf or on the part of the Purchaser and the results obtained as a result of the processing thereof for any other purpose than that for which it was made available by or imparted on behalf of the Purchaser. The Vendor is also bound to ensure that his personnel and any other persons involved with him to whom such data and results are made known, reported or who may have access to them, are also bound to treat this data and information with the strictest confidentiality and in no way divulge it The obligation of the Vendor as stated in Article 18.1 does not apply to data and information that is common knowledge or freely available or freely accessible to the public at large. Article 19. Statutory law; permits etc The Vendor guarantees that the design, the composition, the capacity and the quality of the goods that are supplied by or on behalf of the Vendor, commissioned by or for the benefit of the Purchaser are, in all respects, in accordance with the relevant conditions and requirements laid down in the appropriate legislation, guidelines, rules and regulations, also including regulations set by government, international organisations and supra-national authorities. The Vendor further guarantees that all normal, routine or reasonable use of these goods meet these requirements and conform to them. 14

15 19.2 The Vendor is responsible for obtaining in time all the correct permits, licences, permissions, concessions, registrations and certificates that could possibly be required for the transport, storage, delivery, handling, assembly, mounting, installation, start-up and/or the use and the application of the goods that either by or for the benefit of the Purchaser need to be supplied, or are required to carry out services for, commissioned by or for the benefit of the Purchaser, and the Vendor is bound to send these permits, licences, permissions, concessions, registrations and certificates to the Purchaser; the Vendor is responsible for the costs directly involved in these matters or in connection with them The Vendor is bound to obtain the permits, licences, permissions, concessions, registrations and certificates referred to in Article 19.2 and the absence of any one of the necessary permits, licences, permissions, concessions, registrations or certificates referred to in this Article, does not absolve the Vendor from any one obligation to the Purchaser and does not give the Vendor the right to suspend the fulfilment of any commitment he has to the Purchaser. Article 20. Liability The Vendor is liable for all damage that is directly or indirectly caused by goods that have been or are to be supplied by or in the name of the Vendor, commissioned by or for the benefit of the Purchaser, or which is caused directly or indirectly by any use or application of these goods or any fault thereof The Vendor is also liable for all damage that is caused either directly or indirectly by any shortcoming on the part of the Vendor in the fulfilment of any of his obligations to the Purchaser The Vendor is also liable for all damage that is caused either directly or indirectly by the absence of any necessary permit, licence, permission, concession, registration or certificate as referred to in Article The Vendor grants the Purchaser indemnity against any claims from third parties that are based on or have any connection to damage as referred to in Article 20.1, Article 20.2 or Article The Vendor is bound to compensate the Purchaser, his personnel and other employees and persons involved on his behalf of the Purchaser for any damage they have suffered as a result of any shortcoming on the part of the Vendor in the fulfilment of his obligation to the Purchaser, or as a result of any unlawful deed by the Vendor or any one of his personnel, or any person involved in carrying out an agreement on his behalf; this liability to compensate for any damage also covers the compensation for damage by any goods belonging to or used by the Vendor or any goods belonging to or used by any employee of the Vendor or any person involved in carrying out an agreement on behalf of the Vendor, or caused by any use, application or transport of such goods The Vendor grants the Purchaser indemnity against any claim by a member of staff or an employee of the Purchaser or any third party, that is based on or has a connection with any damage as referred to in Article

16 20.7 Except for mandatory legislative provisions in the matter of product liability, as well as in compliance with the rule of law concerning public order and good faith, the Purchaser is never liable for any damage that may be caused either directly or indirectly by goods, means or materials that by or in the name of the Purchaser have been made available to the Vendor in connection with carrying out an agreement, and the Vendor grants the Purchaser indemnity against any claims or demands from third parties that are based on or have any connection with such damage. Article 21. Millennium guarantee The Vendor guarantees the Purchaser that all products commissioned by or for the benefit of the Purchaser, supplied by the Vendor or supplied in his name, as well as all interactions that take place or are based on those products, shall be millennium proof by 31 December 1999 at the latest, which guarantee means that in any case; a) the data that is recognised by the products as the current date will cause no interruption to the functioning of the goods b) the products can accept, store and process, without modifications to the functionality, data from before, during and after the year 2000 and c) the century indication of a date in the products, the interfaces that are part of them and the data stored, whether shown written in full, according to unambiguous algorithm or the rules of derivation and, d) the products will recognise the year 2000 as a leap year The Vendor is bound to compensate the Purchaser for all costs and damage, including any legal costs arising from or connected with the non-fulfilment of or the failure to comply with the terms of the guarantee referred to in Article 21.1; also included in these costs are the costs and damages that the Purchaser may be liable to pay any third party as a result of any failure by the Purchaser to comply with obligations to that third party which are directly or indirectly a result of failure to comply with the terms of the guarantee referred to in Article The guarantee referred to in Article 21.1 and the obligation to pay damages referred to in Article 21.2 apply only as an addition to and not as a reduction of the rights of the Purchaser agreed in earlier arrangements and agreements with the Purchaser. Article 22. Price The agreed price is the complete price for the goods to be supplied including packaging, transport, insurance and delivery at the location or locations indicated by the Purchaser, and including the instructions, manuals, operating instructions, assembly specifications and maintenance instructions etc.,if applicable, including the costs of assembly, mounting, installation, start-up, testing, instruction and training The agreed price is fixed and binding, except in as far as explicitly determined otherwise in the agreement In the case of the goods being delivered to a location other than that agreed, this at the request of the Purchaser, the extra costs are to be met by the Vendor, unless otherwise explicitly agreed by the parties in writing. 16

17 22.4 The Purchaser has, in that respect, the right to offset the sums he owes the Vendor against those sums owed by the Vendor to the Purchaser. Article 23. Industrial and intellectual property The Vendor grants the Purchaser indemnity against any claim from third parties that is connected with any goods supplied by the Vendor, or supplied in his name, that have been commissioned by or for the benefit of the Purchaser and/or any data or information provided by or in the name of the Vendor to the Buyer for/or connected with any use, any application, any processing, any reproduction or distribution or any display or exhibition of such goods, data or information, and based on any infringement or alleged infringement of patent law, utility-model rights, model rights, rights to a drawing, plant-breeders rights, exclusive rights in the matter of the topography or circuit layout of a semi-conductor product, copyright or neighbouring right or any other rights concerning industrial or intellectual property In the case of any goods supplied by or in the name of the Vendor, commissioned by or for the benefit of the Purchaser, being the object of copyright, utility-model right, model right, right to a drawing, copyright or neighbouring right, or any other right of industrial or intellectual property of the Vendor, or the object of a licence concerning a right to industrial or intellectual property, the correction, repair or any modification to such goods will not be regarded as a violation of that right. Article 24. Shortcoming of the Purchaser In the case of any shortcoming on the part of the Purchaser in regard to the agreement with the Vendor or the execution thereof, the Purchaser will never owe the Vendor more than the sum total of the goods that are to be supplied in accordance with the agreement with the Vendor and never more than the actual or estimated value of the goods at the time of the shortcoming. Article 25. Force Majeure If due to circumstances beyond his control the Purchaser is prevented from fulfilling any obligation towards the Vendor, the Purchaser has the right to suspend fulfilment of his obligations until such time as the force majeure has ended, or to wholly or partially dissolve the agreement Force majeure is considered to be, any circumstance, cause or event, at any location, taking place or occurring, whether or not they could be expected or anticipated, that temporarily or permanently impedes, renders impossible or makes extremely difficult or unreasonably difficult the correct, complete and timely fulfilment of any commitment on the part of the Purchaser, and any circumstance, cause or event that the Purchaser in all fairness cannot avoid or that wholly or partially occurs outside the control of the Purchaser or outside his sphere of influence; force majeure is also considered to be a situation of force majeure on the part of a supplier or other third party contracted by the Purchaser and the failure of a supplier to meet his commitments to the Purchaser, or any circumstance, cause or event either directly or indirectly caused by or connected to the so-called millennium problem in the broadest sense of the word. 17

18 25.3 Force majeure is also considered to be any consequence of a circumstance, cause or event as referred to in Article If due to circumstances beyond his control, the Purchaser is prevented from fulfilling his obligations to one or more of his suppliers or contract partners but not all of them, the Purchaser has the right to choose which obligations towards which of his contract partners he will fulfil and the order in which he will carry these out. Article 26. The Purchaser s personnel and representatives The Purchaser is not liable for direct or indirect damage or future damage caused by a member of his personnel, a person involved with the Purchaser in carrying out his obligations to the Vendor, or by an agent or representative of the Vendor. Article 27. Security Provision At the request of the Purchaser, before commencing or continuing activities that he has been charged to carry out, the Vendor is bound to provide sufficient guarantee that he will fulfil his obligations as stated in the agreement entered into with the Purchaser If the security demanded by the Purchaser is not demonstrated, or the Purchaser judges this to be insufficient, the Purchaser has the right to wholly or partially terminate or dissolve the agreement, without prejudice to the rights of the Purchaser to claim damages or the Purchaser s right to have reimbursed that which has already been paid by or on behalf of the Purchaser to the Vendor in connection with the carrying out of the agreement. Article 28. Termination If the Vendor should fail to meet any of his obligations to the Purchaser, the Purchaser has the right to dissolve or terminate the agreement immediately or at a time chosen by the Purchaser, without prejudice to the right of the Purchaser to claim damages, and without prejudice to the right of the Purchaser to expect or demand the fulfilment of these obligations with or without compensation Without prejudice to the Purchaser s other rights, including the right to claim damages, the Purchaser also has the right to dissolve or terminate the agreement with the Vendor immediately or at a time chosen by the Purchaser if a) the Vendor is declared bankrupt now or in the future b) the Vendor applies for a moratorium or if a temporary or definite moratorium is granted now or in the future, c) when the Vendor is a natural person, dies, or is made a ward of court or when an administrator has been appointed over the Vendor s capital or part thereof, d) when the Vendor is an artificial person, is dissolved or a decision is or has been taken to dissolve the Vendor or the Vendor goes into liquidation or a decision is taken now or in the future concerning the liquidation of the Vendor, e) the Vendor enters into a merger with a third party or is taken over by a third party, f) the Vendor s legal form is changed, or g) there is a fundamental change in the Vendor s activities. 18

19 28.3 If any of the events as referred to in Article 28.1 or in Article 28.2 occur, all claims that the Purchaser may have or may have obtained against the Vendor are due forthwith and payable in full. Article 29. Headings The headings of the Articles of these General Purchase Conditions are used for no other reason than to facilitate the reading of the Articles; more specifically, these headings do not serve to explain these General Purchase Conditions. Article 30. Applicable law; forum The agreement and the implementation of the agreement between the Purchaser and the Vendor is governed by Dutch law Disputes between the Purchaser and the Vendor, including those that are only regarded as such by one of the parties, resulting from or in connection with an agreement or its carrying out where these General Purchase Conditions apply and which cannot be solved amicably, will be settled at the Office of the District Court where the Purchaser is established, on the understanding that the Purchaser retains his right as claimant to bring his claim before the competent court in the Vendor s place of domicile or business, and also on the understanding that if a specific court is appointed by mandate as being competent, the dispute shall be settled by the appointed court as court of the first instance, without prejudice to the right of the Purchaser to appropriate goods and to take other provisional measures and/or to instigate civil proceedings at the location or locations and before a judicial body or bodies deemed desirable by this Buyer. Article 31. Validity Should any of the provisions in these General Purchase Conditions prove to be wholly or partly invalid and/or unenforceable, this as the result of any statutory regulation, judicial decision, or any directive, decision, recommendation or measure from any local, regional, national or supranational authority or body, or otherwise, this shall not affect the validity of all the other provisions in these General Purchase Conditions. If a provision in these General Purchase Conditions is found to be invalid for one of the reasons mentioned in the previous sentence, but could be valid if the provision had a more limited scope or implication, then this provision will be automatically valid to the maximum extent of the limited scope or implication by which and in which the provision is still valid. FHI, Federation of technology branches, August

20 FEDERATIE VAN TECHNOLOGIEBRANCHES Uraniumweg 23, 3812 RJ Amersfoort Postbus 2099, 3800 CB Amersfoort Tel. (033) , Fax (033) Internet

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