I. Validity of conditions

The terms and conditions of business of the supplier apply exclusively; other terms are not
considered an integral part of the contract, even if the supplier does not expressly contradict
them.

II. Offers

Our offers are subject to change without notice and without obligation if no agreement has
been made to the contrary. Declarations of intent made by word of mouth are not binding until
they have been confirmed in writing by the supplier.
The documents which form part of the offer such as drawings, weight and dimensional
information are only approximate, in so far as they are not marked as binding and the intended
use is not affected. The supplier retains rights of ownership and copyright to cost estimates,
drawings and other documents; they may not be made accessible to third parties.
The supplier has the right to change the promised performance and to deviate from it if the
intended use or the performance is not affected or such change or deviation was agreed with
the customer.

III. Delivery time, delivery and late delivery

Delivery times are only approximate. The delivery time is considered fulfilled, if the goods have
left the factory by the agreed date or the goods have been stated to be ready for despatch.
The delivery time is prolonged accordingly, at least by the duration of the relevant events, if the
delivery is not implemented because of strike, non-delivery or late delivery on the part of a sub
supplier or because of Act of God, such as loss of production of limited production due to
natural forces. This does not apply if any of the above were caused by the fault of the supplier.
The supplier shall inform the customer of the start and end of such delay in important cases.
If, in case of delay, the customer has expressly stated to the supplier that he does not wish to
accept the delivery if delivery is not effected after an appropriate period of grace and if the
delivery is not effected by the end of this period, the customer is entitled to withdraw from the
supply contract.

IV. Transfer of risk and acceptance

The risk is transferred as soon as the consignment is given to the carrier when it leaves the
supplier's premises for the purposes of despatch. If despatch is not possible due to no fault of
the supplier, the risk is transferred when the goods are declared ready for despatch. In this
case, the supplier is prepared to take out insurance for the customer at the customer's
request, to be paid for by the customer.
Goods which are supplied, even if they exhibit insignificant defects, must be taken in by the
customer. In so far as the customer issues a complaint with regard to the defects, this occurs
without prejudice to his rights as described in Section VIII.

V. Price and payment

Prices are ex works, excluding packaging. Packaging is charged at cost. Return of transport
packaging must be implemented free of freight charges and free of cost to us. The value of the
packaging shall not be credited to the customer's account.
The binding price is basically the price which applies on the day of order confirmation. For
deliveries with a delivery period of more than four months, the price which applies on the day
of delivery shall apply. Payment is to be made 30 days net following date of invoice. If the
customer is late with payment, the supplier shall be entitled to add interest corresponding to
the rate of interest of open current account overdrafts of commercial banks plus the legal valid
rate of VAT. This interest shall be charged at a lower rate if the customer can demonstrate
lesser interest charges.
Charges for bills of exchange shall be the responsibility of the customer. Even if only one bill is
not honoured at the agreed time, the entire sum becomes due.

VI. Offsetting, retentions and right to refuse performance

Offsetting, retention of payment and rights to refuse performance shall not apply unless the
supplier has grossly infringed his contractual obligations or the portion of the payment which
corresponds to the actual performance has been paid or an objection has been established in
law, is undisputed or at least is ready for decision.

VII. Retention of title

The goods supplied shall remain the property of the supplier until all payments issuing from the
business relationship between the supplier and the customer have been implemented.
Cancellation of individual items in a current invoice as well as balancing of accounts shall not
affect the retention of title. Payment is only considered complete when payment for the goods
is received by the supplier. The customer is entitled to sell on the goods subject to retention of
title in the normal course of business; pledging or mortgaging of the goods, use as security or
assignment of the goods as security is however not permitted. The customer undertakes to
secure the rights of the supplier (seller with the right to retention of title) when goods subject to
retention of title are sold on credit. The claims of the customer for further sale of the goods
subject to retention of title are already now assigned to the supplier by the customer; the
supplier accepts this assignment. Regardless of the assignment and the right of the supplier to
call in the goods, the customer is entitled to call in the goods for as long as he fulfils his
obligations to the supplier and does not become subject to deterioration or loss of assets. On
request of the supplier, the customer shall provide the supplier with the information regarding
the assigned claims which is necessary to call in the goods and shall inform debtors of the
assignment. The customer undertakes processing of the goods subject to retention of title for
the supplier without obligations arising for the latter. If the goods subject to retention of title are
processed, linked, mixed or combined with other goods not belonging to the supplier, the
supplier is entitled to the proportion of the goods according to the invoice value of the goods
subject to retention of title in relation to the other processed goods at the time of processing,
linking, mixing or combination.
If the customer purchases sole rights of ownership in the new item, the contractual partners
agree that the customer shall grant the supplier joint rights of ownership in the new item in the
proportion of the invoice value of the processed, linked, mixed or combined portion consisting
of the goods subject to retention of title and that the customer shall retain this proportion for
the supplier free of charge.
If the goods subject to rights of retention are sold on together with other goods, regardless of
without or subsequent to processing, linking, mixing or combination, the aforementioned
agreed preliminary assignation shall only apply in the amount of the invoiced value of the
goods subject to retention of title which are sold on together with the other goods.
The customer shall inform the client immediately of levies upon the property subject to
retention of title or the previously assigned claims due to debt executed by third parties and to
hand over any documents needed for intervention to the supplier. The supplier undertakes to
release securities of his choice due to him according to the aforementioned provisions at the
customer's request, as long as the value of the securities exceeds the claims to be secured by
20% or more. The customer is obliged to have the goods subject to retention of title insured
against damage of all kinds at his own expense.

VIII. Warranty and complaints

Liability is only accepted for defects and lack of warranted characteristics if the goods are
inspected and any complaint made immediately (e.g. also not damage which occurred to the
object of supply itself) in accordance with the following conditions. No further liability shall be
accepted.

1. The warranty period shall begin with the day of delivery, at the latest withcommissioning.The date on which the item supplied was first put into operation or used isconsidered the date of commissioning. The customer has to inform thesupplier of the date of commissioning without the need for special request.All components which prove to be defective within twelve months (in the case oftwo-shift working within six months) of the date of delivery or of the date ofcommissioning at the latest shall be repaired or replaced at the discretion of thesupplier. Any such defects are to be reported immediately to the supplier. Partswhich have been replaced shall become the property of the supplier. If despatch,assembly and erection or commissioning are delayed without the fault of thesupplier, liability shall lapse at the latest twelve months after the transfer of risk.The warranty period shall be three months for the replacement part and therepair; however, it shall run at least up to the end of the original warranty periodfor the item supplied.2. In so far as repair leads to additional costs because parts have to be taken to adifferent site from that of the place of business of the customer, the customershall bear these additional costs. Costs accruing to the customer for installationand disassembly shall not be reimbursed. The customer shall pay the freightcosts from the supply factory for the items repaired or for the replacement parts.3. In so far as the customer does not observe operating or maintenance instructionsof the supplier, makes changes to the product, replaces parts without theapproval of the supplier or uses consumables and operating materials which donot conform to the original specification, the liability of the supplier shall lapse.The same shall apply if the customer opens or dismantles products suppliedwithout the approval of the supplier.4. If a repair should prove unsatisfactory after an appropriate period of grace, thecustomer may demand a reduction in the price or cancellation of the contract athis own discretion.

IX. Other liability and general limitation of liability

1. Liability claims arising from impossibility of performance, delay, positive
infringement of claims, fault on conclusion of the contract and tortious act are
excluded, unless they are based on deliberate intent or gross negligence on the
part of the supplier or his company managers. The customer is entitled to
withdraw from the contract in these cases. No other rights shall apply.

2. Claims for damages which conflict with the claims for damages as regulated by
this contract are excluded, in so far as they deviate from the provisions of this
contract as regards reason and amount.

3. All other further claims of the customer are excluded, in particular claims for
conversion, termination or price reduction and for compensation for damages of
whatever kind, including such damages which did not occur directly on or at the
item supplied itself.

4. Damages are restricted to two-and-a-half times the value of the order.

X. Withdrawal from the contract

The supplier reserves the right to withdraw from the contract if the claim to counter
performance is at risk, in particular if an attempt at enforcement against the customer has
remained unsuccessful, if the customer has become bankrupt, or if the customer transfers on
products drawings and drawings of hydraulic equipment to third parties without permission. In
addition, the supplier is entitled to withdraw from the contract if the delivery date, plus a period
of grace, is not observed because of strike, lack of supply or late supply to the supplier himself,
Act of God such as loss of production or limitation of production because of natural forces etc.

XI. Legal venue

If the customer is a merchant in the legal sense, courts at the general legal venue of the
supplier shall settle all disputes.

XII. Partial invalidity

Should any one provision in these general terms and conditions of business or any provision
contained within the framework of other agreements be or become invalid, the validity of all
other provisions or agreements shall not be affected. If invalidity or partial invalidity should be
established, the parties agree to find a solution which approaches as nearly as possible to the
original provision in economic and practical terms.

Additional provisions regarding supply of hydraulic equipment

The aforementioned provisions apply to hydraulic equipment with the following additions or
modifications. Included in the order value (offer value) is the creation of one copy of
conventional drawings in the German language. If further documents are required, they will be
charged at cost price.
The offer price (order value) includes all the work included in the preliminary planning. In so far
as changes are required on request of the customer during execution of the order or during the
following time, a new price agreement will be made. The customer alone is responsible for
supply of protective covers in so far as they are not specified by German safety law. Supply of
such covers shall be subject to special agreements.

Only for finally assembled complete plant or equipment:
The plant or equipment shall be supplied fully assembled as defined in the text of the offer
(order confirmation), in so far as the plant or equipment can be sent or transported in fullyassembled
form. If transport and packaging should make it necessary to disassemble
awkwardly-shaped pipelines, fittings and other parts, the costs for assembly on site shall be
borne by the customer. The assembly costs at the customer's site are not included in the price.
In so far as the customer wishes to have assembly and commissioning carried out by a
technician or fitter from the supplier's company, the necessary costs shall be charged
according to our assembly regulations MB I and MB II (for assembly abroad). Pipe screw
connections, even if they have been tightened by the supplier, must be re-tightened by the
customer some time after commissioning of the plant or equipment. Any costs arising from this
shall be borne by the customer. In so far as planning of hydraulic equipment leads to the
conclusion that conditions are present which could lead to unfavourable temperature influence
(e.g. increased ambient temperature, inadequate air ventilation, function-related reactive
power etc.), oil coolers are provided by the supplier as far as possible. If, after commissioning,
additional oil cooling should prove necessary, no conclusions as to warranty can be drawn.

Additional provisions regarding repair
Liability for defects related to repairs is limited to the parts which are replaced and correct
implementation of the factory and repair work. Here too, the customer has the obligation to
make an immediate complaint. Corresponding defects must be reported at once following
implementation of the repair. Otherwise the provisions agreed under VIII and IX shall apply as
regards liability for faults and correct implementation of the factory and assembly work.