Terms and Conditions of Purchase

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1 Terms and Conditions of Purchase 1 General 1. Our Terms and Conditions of Purchase apply exclusively. We will not acknowledge any contrary or deviating general terms and conditions unless we have expressly agreed to their application in writing. Even if we accept delivery without making any reservations while being aware of the contrary or deviating general terms and conditions, we will not be deemed to have agreed to their application. 2. All agreements concerning the order must be in writing to be valid. 3. Our Terms and Conditions of Purchase will also apply to all future business with the supplier. 2 Order Confirmation 1. Each order shall state exactly the material designation, order number, price and delivery date and shall be confirmed in writing or performed without reservations immediately, however no later than within 14 days. 2. After expiry of this period, we will no longer be bound by our order. 3 Order Subject to Changes 1. After placing an order, we may demand that the supplier make reasonable changes to the contractual goods or services in terms of quantity and performance if this is necessary due to particular operational reasons and if such change is customary. 2. Implications on delivery dates as well as any increased or reduced cost shall be regulated reasonably and by mutual consent. Price increases or extensions of the delivery period will only be accepted, however, if such change actually and provably involves additional costs or extensions of the delivery period and if the

2 supplier has informed us thereof in writing immediately after the order was changed. 4 Delivery Period 1. Confirmed delivery dates shall be binding. The supplier agrees to immediately inform us in writing if and when it discerns circumstances which suggest that a presumable delivery date agreed upon cannot be met. 2. If a delivery date is not met, we have the right to set a reasonable grace period to the supplier. In this context, a reasonable period shall be a period of no more than 14 days. If the supplier fails to deliver within the grace period, we will be entitled to rescind the contract, irrespective of whether or not the supplier or its vicarious agents have been at fault. 3. Rescission of the contract will not affect our right to claim damages or compensation for futile expenditure due to the default in delivery caused by intent or gross negligence on the part of the supplier or its vicarious agents. 4. In case of delay in delivery, we will be entitled to claim liquidated damages equal to 0.3% of the net order value per each calendar day of delay, however, no more than a total amount of 10% of the order value, provided that such damages will be set off against a higher damage, if any, as calculated according to the statutory provisions; we hereby reserve the right to claim such higher damage. This will not affect the right of the supplier to prove that no damage at all or a much smaller damage was caused through the default. 5 Passing of Risk; Dispatch 1. Unless agreed otherwise, the place of performance shall be at the address of delivery. The supplier shall carry the risk of accidental loss or deterioration of the goods up to their delivery at the agreed address of delivery. 2. The shipping documents shall state the factory, department, order number and any other additional information requested in the order. The supplier will be lia-

3 ble for consequences resulting from incorrect or delayed shipping documents unless the supplier can prove that no fault lies with it or its vicarious agents. 6 Prices; Payment Terms 1. Except as agreed otherwise, confirmed prices are free address of delivery, including packing. 2. Confirmed prices are fixed prices. 3. Unless specifically agreed, payment of the invoices within 10 days shall be subject to 4% cash discount, within 30 days to 2.25% discount, or within 60 days net, based on the ten-day periods applied by us invoices received by us between the 1st and the 10th of any month: payment by the 20th of the same month: 4% discount invoices received by us between the 11th and 20th of any month: payment by the 30th of the same month: 4% discount invoices received by us between the 21st and the last day of any month: payment by the 10th of the following month: 4% discount. 4. We will be in default only if and when we have received a reminder of payment. 7 No Assignment / Setoff / Right of Retention 1. The supplier may not assign its claims against us except with our prior written approval. 2. The supplier may set off counter-claims only if recognised by us or established res judicata and only against our claims due against the supplier under the business relationship with it. 3. The supplier may exercise a right of retention only if it is based on the same contractual relationship.

4 8 Protection of our Property 1. Objects of any kind, in particular samples, drawings, models, tools and the like, which we provide to the supplier for executing an order remain our property. 2. Following execution of the order, said objects must be returned to us free of charge. 3. Objects of said kind as well as business and trade secrets provided or disclosed to the supplier for executing an order may not be made available to third parties. Products which are manufactured by using said objects or business and trade secrets may not be used by the supplier itself or passed on to third parties. 9 Retention of Ownership 1. If the supplier has retained ownership of the items delivered, such retention will be valid only until payment of such items, insofar as we have not already become the owner thereof due to processing, combination or mixture. 2. We will not acknowledge current account retention or extended group retention of ownership. 3. Equally precluded shall be the assignment of our receivables from the resale of such goods on the basis of a so-called extended or prolonged retention of ownership. We have no obligation to secure rights of the supplier as retained ownership of any kind vis-à-vis third parties. 10 Liability for Defects 1. If the goods are imperfect, we will be fully entitled to the statutory rights and claims to subsequent performance, rescission or reduction of purchase price, as well as to damages or compensation for futile expenditure.

5 HGB (German Commercial Code) applies, provided that the notice according to sub-section 1 and 3 of this section must be given within 2 weeks (time-limit for notice of defects) since inspection of the goods or discernibility of the defect. 3. Our claims based on defects of the goods supplied will become time-barred according to the statutory provisions. As regards warranties of title, however, claims will become time-barred no earlier than 3 years after delivery. 4. The supplier warrants that as a result of the supply of its goods or the performance of its services no patents, utility models, trade marks, firm names, copyrights or other third-party industrial property rights are infringed in Germany or any other country in which, in its knowledge, the goods or services are to be delivered or performed. The supplier will fully indemnify and hold us harmless against any claims advanced against us by third parties based on the infringement of such rights, to the extent that the supplier is responsible for such infringements of industrial property rights. 11 Product Liability 1. Insofar as the supplier is responsible for any damage to goods, it will be liable to release us from damage claims of third parties on first demand insofar as the cause of such damage falls within its sphere of influence and organisation and it is liable in the external relationship itself. 2. To this extent, the supplier will also be liable to reimburse any expenses according to 683, 670 BGB (German Civil Code) which arise from or in connection with a recall campaign carried out by us. Insofar as this is possible and can reasonably be expected of us, we will inform the supplier of the terms and scope of the recall campaign to be carried out and give it the opportunity to comment. Any additional legal claims remain unaffected. 12 Other Matters 1. The place of performance for the mutual contractual obligations will be the address of delivery as stated in the order.

6 2. The Landgericht München I [Regional Court], or, at our choice, the regional court at the supplier's seat, has jurisdiction as first-instance court for any disputes arising between the parties with respect to the order and its execution. 3. Our legal relationship with the supplier will be governed by German substantive law, ousting the UN Convention on the International Sale of Goods (CISG).

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