Common use of Warranty/Guarantee Clause in Contracts

Warranty/Guarantee. (a) If no agreement to the contrary has been made in individual contracts, the Seller will supply the purchased item in compliance with its standard product description (catalogue, etc.), if one exists and, if not, in average quality but with consideration of letters (b) and (c). The Seller will then not be liable for any properties of the purchased item in excess of said description or quality. In particular, the Buyer cannot base any such liability on the part of the Seller on other descriptions of the purchased item contained in public statements or in the advertising of the Seller or its sub-supplier / manufacturer, unless the Seller has expressly confirmed this additional property in an individual agreement. All guarantees require express written confirmation by the Seller’s management. (b) For technically unavoidable quantity discrepancies in deliveries of yarns, the tolerances shall apply as in Section 4 paragraph …. of the “Terms for Trading with Raw, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amount. (c) In addition, “Part 2 – Technical Fundamentals” of the GTC German Yarn Contract shall apply. 6.2. Provided that the Buyer has complied with its obligations to inspect the goods and forward notification of defects as per Section 377 HGB in conjunction with Section 6.3 of the present GTC, the Seller will initially fulfil the warranty for defects in the goods by reworking them or supplying a substitute, at its own discretion. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right to refuse the chosen type of subsequent performance if it necessarily involves unreasonably high costs and the alternative type of subsequent performance does not constitute any significant disadvantages for the Buyer. If subsequent performance proves unsuccessful, the Buyer can, at its discretion, require reduction of remuneration or rescission of the contract. The right of the Buyer to claim damages as permitted by law as well as rescinding the contract is not prejudiced, with the exception of the limitations on damages claims by the Buyer under Section 7. 6.3 Notification of defects by the Buyer as provided in Section 377 HGB will only be effective if forwarded in writing. The other statutory requirements of Section 377 HGB are not prejudiced. Irrespective thereof, warranty claims by the Buyer are ruled out if the Buyer does not give written notification of obvious defects within 1 week, calculated from the time of delivery of the goods until dispatch of such notification. 6.4 In all cases, a non-defective item will only be supplied as part of subsequent performance in return for hand-over of the defective item. 6.5 The limitation period for warranty claims by the Buyer is one year. Instead of this 1-year period, the statutory warranty periods apply in the following cases: a) in the event of liability due to intent, b) in the event of malicious concealment of a defect, c) for claims against the Seller due to the defectiveness of an item if it was used in its customary way for a building and caused the latter to be defective, d) for claims due to losses resulting from injury to life, body or health which are based on a negligent breach of obligation by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent of the Seller, e) for claims due to other losses which are based on a grossly negligent breach of obligation by the Seller or an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent of the Seller and f) in the event of recourse by the Buyer on the basis of the regulations on sale of consumer goods. 6.6 The Buyer will forfeit its warranty claims if it carries out installation or processing or resale of the goods despite knowledge of a defect.

Warranty/Guarantee. (a1) If no agreement Supplier shall guarantee and warrant that all contractual products comply with state-of-the-art technology, the relevant, worldwide statutory provisions, legal requirements, standards, regulations, provisions and directives set forth by authorities as well as the EC, professional associations and trade associations. Furthermore, the Supplier shall guarantee and warrant that all contractual products are free of faults, comply with the requirements of Customer and are suitable for the respective application purpose as well as the place of application. In the event the Supplier wants to deviate from the aforementioned provisions as well as requirements he needs to obtain the written consent of Customer in advance. The warranty claims shall not be affected by this consent. (2) The Supplier shall assume a durability warranty for the contractual products pursuant to § 443 German Civil Code (BGB) by which the Supplier shall guarantee that the contractual products are free of any quality defects and deficiencies in title for a period of two years starting with the transfer of risk. (3) An incoming-goods inspection of the contractual products through Customer shall be restricted to an inspection whether the delivered contractual products correspond to the contrary has been made in individual contractsordered quantities by piece number; have apparent, externally visible transportation damages and whether the Seller will supply delivered contractual products correspond to the purchased item in compliance with its standard product description ordered contractual products (catalogue, etc.), if one exists and, if not, in average quality but with consideration of letters (b) and (cidentity). The Seller will then not For these aforementioned defects a complaint period of 2 weeks shall be liable for any properties applicable. For all other open defects as well as hidden defects a complaint period of the purchased item in excess 2 weeks upon discovery shall be effective. Any further obligations of said description or quality. In particular, the Buyer cannot base any such liability complaint and inspection on the part of the Seller on other descriptions of the purchased item contained in public statements or in the advertising of the Seller or its sub-supplier / manufacturer, unless the Seller has expressly confirmed this additional property in an individual agreement. All guarantees require express written confirmation by the Seller’s managementCustomer shall be excluded. (b4) For technically unavoidable quantity discrepancies Defects reprehended during the warranty period, which also include the non-attainment of guaranteed properties, must be eliminated by the Supplier immediately and cost-free upon request, including any additional costs, at the option of the Customer by means of rework or subsequent delivery (supplementary performance) or reimbursed by means of a credit of the purchase price/remuneration. In urgent cases or with small defects Customer may himself carry out the rework or have it done by third parties, without this restricting the rights of Customer under the warranty. Customer shall be entitled to invoice the costs incurred to him within this rework. After fruitless expiry of a period of grace set by Customer for rework or supplementary delivery, Customer shall be entitled to all statutory rights, especially withdrawal, reduction, reimbursement of expenses and compensation in deliveries damages instead of yarnsperformance. With work performance, the tolerances shall apply as in Section 4 paragraph …Customer is additionally entitled to the right of self-performance. of As for the “Terms for Trading with Rawrest, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amountSupplier undertakes to compensate all damages accrued to Customer through a defective contractual product even without a previously set deadline. (c5) In additionThe Supplier shall bear all expenses needed for supplementary performance, “Part 2 – Technical Fundamentals” especially costs of travel and transportation, labour and material (§ 439 II German Civil Code (BGB). (6) The warranty period shall be 36 months after delivery to the client of Customer, at the most, however, 48 months after transfer of risk to Customer unless explicitly agreed otherwise or the law provides longer periods. It shall begin with the transfer of the GTC German Yarn Contract shall applycontractual product to Customer or third parties appointed by Customer at the delivery address and/or place of delivery specified by Customer. 6.2. Provided (7) For contractual products that could not be used and/or operated during the Buyer has complied with its obligations to inspect the goods and forward notification inspection of defects as per Section 377 HGB in conjunction with Section 6.3 a defect and/or remedy of the present GTCdefects, the Seller will initially fulfil the a current warranty for defects in the goods period shall be extended by reworking them or supplying a substitute, at its own discretion. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right to refuse the chosen type of subsequent performance if it necessarily involves unreasonably high costs and the alternative type of subsequent performance does not constitute any significant disadvantages for the Buyer. If subsequent performance proves unsuccessful, the Buyer can, at its discretion, require reduction of remuneration or rescission of the contract. The right of the Buyer to claim damages as permitted by law as well as rescinding the contract is not prejudiced, with the exception of the limitations on damages claims by the Buyer under Section 7. 6.3 Notification of defects by the Buyer as provided in Section 377 HGB will only be effective if forwarded in writing. The other statutory requirements of Section 377 HGB are not prejudiced. Irrespective thereof, warranty claims by the Buyer are ruled out if the Buyer does not give written notification of obvious defects within 1 week, calculated from the time of delivery of the goods until dispatch of such notification. 6.4 In all cases, a non-defective item will only be supplied as part of subsequent performance in return for hand-over of the defective item. 6.5 The limitation period for warranty claims by the Buyer is one yearinterrupted operation. Instead of this 1-year periodFor repaired or newly delivered contractual products, the statutory warranty periods apply in the following cases: a) in the event period shall recommence on completion of liability due to intent, b) in the event of malicious concealment of a defect, c) for claims against the Seller due to the defectiveness of rectification or, if an item if it acceptance was used in its customary way for a building and caused the latter to be defective, d) for claims due to losses resulting from injury to lifeagreed, body or health which are based on a negligent breach of obligation by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent of the Seller, e) for claims due to other losses which are based on a grossly negligent breach of obligation by the Seller or an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent of the Seller and f) in the event of recourse by the Buyer on the basis of the regulations on sale of consumer goodsacceptance. 6.6 The Buyer will forfeit its warranty claims if it carries out installation or processing or resale of the goods despite knowledge of a defect.

Warranty/Guarantee. (a) If no agreement to the contrary has been made in 6.1. Unless differently agreed by individual contracts, con- tract the Seller will supply shall deliver the purchased item object of sale in compliance accordance with its standard the regular product description (catalogue, etc.), if one exists andavailable, if not, in otherwise of average quality but with consideration quality. Any qualities of letters (b) and (c)the object of sale beyond this are then not owed by the Seller. The Seller will then Buyer may not be liable for any properties of the purchased item de- rive such obligation in excess of said description or quality. In particular, the Buyer cannot base any such liability on the part of the Seller on particular from other descriptions of the purchased item contained object of sale made in public statements or in the advertising of the Seller or its subpre-supplier / manufacturersupplies/manufacturers, unless the Seller has expressly confirmed this additional property in an such further quality by individual agreement. All guarantees require express written confirmation Guarantees must be expressly confirmed in writing by the Seller’s management. (b) For technically unavoidable quantity discrepancies in deliveries of yarns6.2. If the Buyer is a contractor, the tolerances shall apply as in Section 4 paragraph …. we will warrant, at our discretion, for defects of the “Terms goods ei- ther a rectification of defects or substitute delivery. If the Buyer is a consumer the right to choose passes to the Seller upon expira- tion of a suitable time period stipulated by the Seller to the consumer for Trading with Raw, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amount. (c) In addition, “Part 2 – Technical Fundamentals” declara- tion of the GTC German Yarn Contract shall apply. 6.2. Provided that the Buyer has complied with its obligations to inspect the goods and forward notification of defects as per Section 377 HGB in conjunction with Section 6.3 of the present GTC, the Seller will initially fulfil the warranty for defects in the goods by reworking them or supplying a substitute, at its own discretionchoice. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right is entitled to refuse the chosen type of subsequent performance chosen rectification of de- fects if it necessarily involves unreasonably high such rectification can only be per- formed subject to excessive costs and the alternative type of subsequent performance rectification does not constitute entail any significant disadvantages for the Buyersubstantial drawbacks. If subsequent performance proves unsuccessfulthe rectification fails, the Buyer cancustomer, at its discretion, require may demand a reduction of remuneration or rescission re- scission of the contract. The This does not affect the Buyer’s right of to demand compensation in addition to the Buyer to claim damages as permitted by law as well as rescinding the contract is not prejudicedstatutory rescission, with the exception of the limitations on damages claims by for compensation of the Buyer under Section pursuant to Item 7. If the defect consists in the customer having received faulty assembly instructions, the Seller is merely obliged to deliver accurate assembly instructions; this also applies if only the de- fect of the assembly instructions opposes the proper assembly. 6.3 Notification The notification of defects demanded by the Buyer as provided in statutory obligation of a notification of de- fects according to Section 377 HGB will of the Ger- man Commercial Code can only be effective effec- tively declared by the contractor if forwarded issued in writing. The other further statutory requirements of Section 377 HGB of the German Commercial Code are not prejudicedaffected. Irrespective thereofof this, the Buyer’s warranty claims by the Buyer are ruled out excluded if the Buyer does not give written notification of report obvious defects in writing within 1 week, calculated a period of two weeks as from the time moment of delivery receipt of the goods until dispatch posting of such notification. With regard to transport damages Item 4.9 is not affected. 6.4 In all cases, The delivery of a nondefect-defective free item will only be supplied to fulfil the rectification as part of subsequent performance in return for hand-a rule is performed concur- rently against handing over of the defective item. The Seller is entitled to refuse the sub- stitute delivery if the Buyer has used the de- fective item for an extensive period. If the Buyer may nevertheless demand a substi- tute delivery, the Seller is entitled to enforce a compensation for the lost value for the benefit drawn by the Buyer and refuse recti- fication until payment of the respective amount. 6.5 If the Seller performs services in the search for, inspection of and remedy of defects without being obliged to do so, such as e.g. in case an unjustified notification of defect was pronounced, the Buyer shall reimburse such costs to the Seller that arise as a result of this. GTC Sale – December 2013 Page 5 of 7 6.6 Any additional expenses in remedying the defects must also be reimbursed which the Seller incurred as a result of the Buyer not properly complying with its duties to co- operate. The limitation period performance of a search for, inspection of and remedy of defects does not constitute the recognition of the defect by the Seller. 6.7 Expenses in relation to the defects which the Buyer incurs because the Buyer transported the goods to a place other than the location stipulated in the contract of sale are for the Buyer’s account. 6.8 The statute of limitations for warranty claims by of the Buyer is one year. Instead of this 1-year period, ; in cases in which the statutory warranty periods apply in is based on the following cases: a) in the event of liability due to intent, b) in the event of malicious concealment of a defect, c) for claims against the Seller due to the defectiveness sale of an item if it was to be used in according to its customary way intended applica- tion for a building and which caused the latter to be defective, d) for claims due to losses resulting from injury to lifeits de- fectiveness, body or health which are based on a negligent breach is five years. The statute of obligation by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent limi- tations always commences upon delivery of the Seller, e) for claims due to other losses which are based on a grossly negligent breach of obligation by the Seller or an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent sold item. 6.9 This does not affect Section 479 of the Seller and f) in the event of recourse by the Buyer on the basis of the regulations on sale of consumer goodsGer- man Civil Code. 6.6 6.10 The Buyer will forfeit forfeits its warranty claims if it carries out installation or processing or resale in spite of the goods despite knowledge being aware of a defectdefect the item is fitted or processed or resold.

Warranty/Guarantee. (a1) If no agreement Supplier shall guarantee and warrant that all contractual products comply with state-of-the-art technology, the relevant, worldwide statutory provisions, legal requirements, standards, regula- tions, provisions and directives set forth by authorities as well as the EC, professional associations and trade associations. Furthermore, the Supplier shall guarantee and warrant that all contractual products are free of faults, comply with the requirements of Customer and are suitable for the respective application purpose as well as the place of application. In the event the Supplier wants to deviate from the aforementioned provisions as well as requirements he needs to obtain the written consent of Customer in advance. The warranty claims shall not be affected by this consent. (2) The Supplier shall assume a durability warranty for the contractual products pursuant to § 443 German Civil Code (BGB) by which the Supplier shall guarantee that the contractual products are free of any quality defects and deficiencies in title for a period of two years starting with the transfer of risk. (3) An incoming-goods inspection of the contractual products through Customer shall be restricted to an inspection whether the delivered contractual products correspond to the contrary has been made in individual contractsordered quantities by piece number; have apparent, externally visible transportation damages and whether the Seller will supply delivered contractual products correspond to the purchased item in compliance with its standard product description ordered contractual products (catalogue, etc.), if one exists and, if not, in average quality but with consideration of letters (b) and (cidentity). The Seller will then not For these aforementioned defects a complaint period of 2 weeks shall be liable for any properties applicable. For all other open defects as well as hidden defects a complaint period of the purchased item in excess 2 weeks upon discovery shall be effective. Any further obligations of said description or quality. In particular, the Buyer cannot base any such liability complaint and inspection on the part of the Seller on other descriptions of the purchased item contained in public statements or in the advertising of the Seller or its sub-supplier / manufacturer, unless the Seller has expressly confirmed this additional property in an individual agreement. All guarantees require express written confirmation by the Seller’s managementCustomer shall be excluded. (b4) For technically unavoidable quantity discrepancies Defects reprehended during the warranty period, which also include the non-attainment of guaranteed properties, must be eliminated by the Supplier immediately and cost-free upon request, including any additional costs, at the option of the Customer by means of rework or subsequent delivery (supplementary performance) or reimbursed by means of a credit of the purchase price/remuneration. In urgent cases or with small defects Customer may himself carry out the rework or have it done by third parties, without this restricting the rights of Customer under the warranty. Customer shall be entitled to invoice the costs incurred to him within this rework. After fruitless expiry of a period of grace set by Customer for rework or supplementary delivery, Customer shall be entitled to all statutory rights, especially withdrawal, reduction, reimbursement of expenses and compensation in deliveries damages instead of yarnsperformance. With work performance, the tolerances shall apply as in Section 4 paragraph …Customer is additionally entitled to the right of self-performance. of As for the “Terms for Trading with Rawrest, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amountSupplier undertakes to compensate all damages accrued to Customer through a defective contractual product even without a previously set deadline. (c5) In additionThe Supplier shall bear all expenses needed for supplementary performance, “Part 2 – Technical Fundamentals” especially costs of travel and transportation, labour and material (§ 439 II German Civil Code (BGB). (6) The warranty period shall be 36 months after delivery to the client of Customer, at the most, however, 48 months after transfer of risk to Customer unless explicitly agreed otherwise or the law provides longer periods. It shall begin with the transfer of the GTC German Yarn Contract shall applycontractual product to Customer or third parties appointed by Customer at the delivery address and/or place of delivery specified by Customer. 6.2. Provided (7) For contractual products that could not be used and/or operated during the Buyer has complied with its obligations to inspect the goods and forward notification inspection of defects as per Section 377 HGB in conjunction with Section 6.3 a defect and/or remedy of the present GTCdefects, the Seller will initially fulfil the a current warranty for defects in the goods period shall be extended by reworking them or supplying a substitute, at its own discretion. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right to refuse the chosen type of subsequent performance if it necessarily involves unreasonably high costs and the alternative type of subsequent performance does not constitute any significant disadvantages for the Buyer. If subsequent performance proves unsuccessful, the Buyer can, at its discretion, require reduction of remuneration or rescission of the contract. The right of the Buyer to claim damages as permitted by law as well as rescinding the contract is not prejudiced, with the exception of the limitations on damages claims by the Buyer under Section 7. 6.3 Notification of defects by the Buyer as provided in Section 377 HGB will only be effective if forwarded in writing. The other statutory requirements of Section 377 HGB are not prejudiced. Irrespective thereof, warranty claims by the Buyer are ruled out if the Buyer does not give written notification of obvious defects within 1 week, calculated from the time of delivery of the goods until dispatch of such notification. 6.4 In all cases, a non-defective item will only be supplied as part of subsequent performance in return for hand-over of the defective item. 6.5 The limitation period for warranty claims by the Buyer is one yearinterrupted operation. Instead of this 1-year periodFor repaired or newly delivered contractual products, the statutory warranty periods apply in the following cases: a) in the event period shall recommence on completion of liability due to intent, b) in the event of malicious concealment of a defect, c) for claims against the Seller due to the defectiveness of rectification or, if an item if it acceptance was used in its customary way for a building and caused the latter to be defective, d) for claims due to losses resulting from injury to lifeagreed, body or health which are based on a negligent breach of obligation by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent of the Seller, e) for claims due to other losses which are based on a grossly negligent breach of obligation by the Seller or an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent of the Seller and f) in the event of recourse by the Buyer on the basis of the regulations on sale of consumer goodsacceptance. 6.6 The Buyer will forfeit its warranty claims if it carries out installation or processing or resale of the goods despite knowledge of a defect.

Warranty/Guarantee. (a) The delivery has the relevant laws, which are valid for the user, which were announced to the supplier to correspond. If no agreement user is called, then the delivery has to correspond to the contrary has been made in individual contracts, the Seller will supply the purchased item in compliance with its standard product description (catalogue, etc.), if one exists and, if not, in average Austrian safety and quality but with consideration of letters (b) and (c). The Seller will then not be liable for any properties of the purchased item in excess of said description or quality. In particular, the Buyer cannot base any such liability on the part of the Seller on other descriptions of the purchased item contained in public statements or in the advertising of the Seller or its sub-supplier / manufacturer, unless the Seller has expressly confirmed this additional property in an individual agreement. All guarantees require express written confirmation by the Seller’s management. (b) For technically unavoidable quantity discrepancies in deliveries of yarns, the tolerances shall apply as in Section 4 paragraph …. of the “Terms for Trading with Raw, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amount. (c) In addition, “Part 2 – Technical Fundamentals” of the GTC German Yarn Contract shall apply. 6.2. Provided that the Buyer has complied with its obligations to inspect the goods and forward notification of defects as per Section 377 HGB in conjunction with Section 6.3 of the present GTC, the Seller will initially fulfil the warranty for defects in the goods by reworking them or supplying a substitute, at its own discretion. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right to refuse the chosen type of subsequent performance if it necessarily involves unreasonably high costs and the alternative type of subsequent performance does not constitute any significant disadvantages for the Buyer. If subsequent performance proves unsuccessful, the Buyer can, at its discretion, require reduction of remuneration or rescission of the contract. The right of the Buyer to claim damages as permitted by law standards as well as rescinding the contract requirements given by the BUYER. In case of the doubts is not prejudiced, to be checked with the exception BUYER. For number of items, measures and weights the values fixed by the BUYER during the receiving inspection are determining. Lack of the limitations on damages claims by delivery from the Buyer under Section 7. 6.3 Notification buyers, as soon as they are determined and/or discovered after the conditions of defects by a normal business concern (this can be also only in the Buyer as provided in Section 377 HGB will only context of the further use), the supplier are to be effective if forwarded shown in writing. The other statutory requirements supplier assures that unrestricted and unloaded property will be transfer to the BUYER at the supplied goods and furnished work achievements. He assures the complete agreement of Section 377 HGB are not prejudiced. Irrespective thereofthe sold commodity with the samplings, warranty claims specimens and descriptions supplied by him as well as the input/specifications given by the Buyer are ruled out if supplier expressly. The BUYER can make possible lack valid during the Buyer entire guarantee period; the supplier does expressly without the objection of a late notice of defect. At the entire run time of the guarantee period the supplier has to prove that the supplied commodity and/or furnished work achievement did not give written notification of obvious defects within 1 week, calculated from exhibit an arisen lack yet at the time of delivery the delivery. It is open to the BUYER, at each time to require for own choice, improvement, exchange, price reduction or transformation. The supplier is bound to an appropriate choice of the goods until dispatch buyer. The decision of such notification. 6.4 In execution of the defect removal at the place, at which the commodity/work achievement is, to let conduct at the place of delivery or if necessary against return of the commodity/the work achievement at the expense of the supplier at his shipping address and forwarding, is incumbent on exclusively the BUYER. If the supplier successfully concludes the fault rectification after repetitive request by the BUYER, at the latest however within 10 days, as well as in all those cases, in which the supplier refuses the fault rectification at all or in addition does not seem to be able to do so, the BUYER is entitled to eliminate the lack on his own or let it be done by the third person. In this context the supplier has to cover all developing costs, within a non-defective item will only be supplied as part period of subsequent performance in return for hand-over time of 10 days after a submission of a corresponding cost proof. The BUYER can deduct such cost claims if necessary still pending liabilities. In case of the defective item. 6.5 objection independently of it for each lodged complaint product the resulting administration costs at a value of 100, - euros are charged to the supplier. The limitation BUYER is entitled to be deducted these with the next xxxx run. The guarantee period amounts to 36 months starting from start-up/use of the commodity/work achievement with the end customers. A written notice of defect of the BUYERs restrains the expiration of the guarantee period. With conclusion of execution of fault rectifications in the context of the guarantee, the guarantee period for warranty claims by the Buyer is one year. Instead of this 1-year period, the statutory warranty periods apply in the following cases: a) in the event of liability due supplied commodity/furnished achievement begins to intent, b) in the event of malicious concealment of a defect, c) for claims against the Seller due to the defectiveness of an item if it was used in its customary way for a building and caused the latter to be defective, d) for claims due to losses resulting from injury to life, body or health which are based on a negligent breach of obligation by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent of the Seller, e) for claims due to other losses which are based on a grossly negligent breach of obligation by the Seller or an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent of the Seller and f) in the event of recourse by the Buyer on the basis of the regulations on sale of consumer goodsrun again. 6.6 The Buyer will forfeit its warranty claims if it carries out installation or processing or resale of the goods despite knowledge of a defect.

Warranty/Guarantee. (a1) If no agreement Supplier shall guarantee and warrant that all contractual products comply with state-of-the-art technology, the rele- vant, worldwide statutory provisions, standards, regula- tions, provisions and directives set forth by authorities as well as the EC, professional associations and trade asso- ciations. Furthermore, the Supplier shall guarantee and warrant that all contractual products are free of faults, comply with the requirements of Customer and are suitable for the respective application purpose as well as the place of application. In the event the Supplier wants to deviate from the aforementioned provisions as well as require- ments he needs to obtain the written consent of Customer in advance. The warranty claims shall not be affected by this consent. (2) The Supplier shall assume a durability warranty for the contractual products pursuant to § 443 German Civil Code (BGB) by which the Supplier shall guarantee that the con- tractual products are free of any quality defects and defi- ciencies in title for a period of two years starting with the transfer of risk. (3) An incoming-goods inspection of the contractual products through Customer shall be restricted to an inspection whether the delivered contractual products correspond to the contrary has been made in individual contractsordered quantities by piece number; have apparent, ex- ternally visible transportation damages and whether the Seller will supply de- livered contractual products correspond to the purchased item in compliance with its standard product description ordered con- tractual products (catalogue, etc.), if one exists and, if not, in average quality but with consideration of letters (b) and (cidentity). The Seller will then not For these aforementioned de- fects a complaint period of 2 weeks shall be liable for any properties applicable. For all other open defects as well as hidden defects a com- plaint period of the purchased item in excess 2 weeks upon discovery shall be effective. Any further obligations of said description or quality. In particular, the Buyer cannot base any such liability complaint and inspection on the part of the Seller on other descriptions of the purchased item contained in public statements or in the advertising of the Seller or its sub-supplier / manufacturer, unless the Seller has expressly confirmed this additional property in an individual agreement. All guarantees require express written confirmation by the Seller’s managementCustomer shall be excluded. (b4) For technically unavoidable quantity discrepancies Defects reprehended during the warranty period, which also include the non-attainment of guaranteed properties, must be eliminated by the Supplier immediately and cost- free upon request, including any additional costs, at the op- tion of the Customer by means of rework or subsequent de- livery (supplementary performance) or reimbursed by means of a credit of the purchase price/remuneration. In urgent cases or with small defects Customer may himself carry out the rework or have it done by third parties, without this restricting the rights of Customer under the warranty. Customer shall be entitled to invoice the costs incurred to him within this rework. After fruitless expiry of a period of grace set by Customer for rework or supplementary delivery, Customer shall be entitled to all statutory rights, especially withdrawal, reduc- tion, reimbursement of expenses and compensation in deliveries damages instead of yarnsperformance. With work performance, the tolerances shall apply as in Section 4 paragraph …Customer is additionally entitled to the right of self- performance. of As for the “Terms for Trading with Rawrest, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amountSupplier undertakes to compensate all damages accrued to Customer through a defective contractual product even without a previously set deadline. (c5) The Supplier shall bear all expenses needed for supple- mentary performance, especially costs of travel and trans- portation, labour and material (§ 439 II German Civil Code (BGB). (6) In addition, “Part 2 – Technical Fundamentals” the event of the GTC German Yarn Contract shall apply. 6.2. Provided that the Buyer has complied with its obligations to inspect the goods and forward notification of defects as per Section 377 HGB in conjunction with Section 6.3 of the present GTC, the Seller will initially fulfil the warranty claims for defects in the goods by reworking them or supplying a substitute, at its own discretion. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right to refuse the chosen type of subsequent performance if it necessarily involves unreasonably high costs and of Cus- tomer towards the alternative type of subsequent performance does not constitute any significant disadvantages for the Buyer. If subsequent performance proves unsuccessfulSupplier according to § 9 clauses 4, the Buyer can, at its discretion, require reduction of remuneration or rescission of the contract. The right of the Buyer to claim damages as permitted by law 5 as well as rescinding the contract is not prejudiced, with the exception of the limitations on damages claims by the Buyer under Section 7. 6.3 Notification of defects by the Buyer as provided in Section 377 HGB will only be effective if forwarded in writing. The other statutory requirements of Section 377 HGB are not prejudiced. Irrespective thereof, warranty claims by the Buyer are ruled out if the Buyer does not give written notification of obvious defects within 1 week, calculated from the time of delivery of the goods until dispatch of such notification. 6.4 In all cases, a non-defective item will only be supplied as part of subsequent performance in return for hand-over of the defective item. 6.5 The limitation period for warranty claims by the Buyer is one year. Instead of this 1-year period§ 439 II German Civil Code (BGB), the statutory warranty periods apply in Supplier shall reimburse Customer especially for the following casescosts for labour and material in a lump-sum to the amount of: a) lump sum for reminders or any other letters: 5,00 € per letter b) telephone lump sum: 3,00 € per phone call c) lump sum for copies: 0,50 € per copy d) travelling expenses 0,50 € for every driven kilometre e) labour expenses 50,00 € per working hour and employees The labour expenses shall be invoiced per commenced quarter of an hour. Customer shall be expressly entitled to claim higher damages. (7) The warranty period shall be 36 months after delivery to the client of Customer, at the most, however, 48 months after transfer of risk to Customer unless explicitly agreed other- wise or the law provides longer periods. It shall begin with the transfer of the contractual product to Customer or third parties appointed by Customer at the delivery address and/or place of delivery specified by Customer. (8) With devices, tools, machines and systems, the warranty period shall begin with the complete and unconditional as well as written acceptance of the contractual product. The acceptance may also be refused by Customer due to minor defects. The contractual products shall not be deemed ac- cepted in the event of liability due to intent,payment – even with unconditional payment – the putting into use, the use or the start-up through Customer. § 640 clause 1 sentence 3 German Civil Code (BGB) (fiction of acceptance) shall in particular not be applied within the individual agreements. b(9) in For contractual products that could not be used and/or operated during the event of malicious concealment inspection of a defect, c) for claims against the Seller due to the defectiveness defect and/or remedy of an item if it was used in its customary way for defects, a building and caused the latter to current warranty period shall be defective, d) for claims due to losses resulting from injury to life, body or health which are based on a negligent breach of obligation extended by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent time of the Sellerinterrupted operation. For repaired or newly delivered contractual products, e) for claims due to other losses which are based the warranty period shall recommence on a grossly negligent breach completion of obligation by the Seller or rectifi- cation or, if an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent of the Seller and f) in the event of recourse by the Buyer acceptance was agreed, on the basis of the regulations on sale of consumer goodsacceptance. 6.6 The Buyer will forfeit its warranty claims if it carries out installation or processing or resale of the goods despite knowledge of a defect.

Warranty/Guarantee. (a) If no agreement to the contrary has been made in individual contracts, the Seller will supply the purchased item in compliance with its standard product description (catalogue, etc.), if one exists and, if not, in average quality but with consideration of letters (b) and (c). The Seller will then not be liable for any properties of the purchased item in excess of said description or quality. In particular, the Buyer cannot base any such liability on the part of the Seller on other descriptions of the purchased item contained in public statements or in the advertising of the Seller or its sub-supplier / manufacturer, unless the Seller has expressly confirmed this additional property in an individual agreement. All guarantees require express written confirmation by the Seller’s management. (b) For technically unavoidable quantity discrepancies in deliveries of yarns, the tolerances shall apply as in Section 4 paragraph …. of the “Terms for Trading with Raw, Jet-Dyed and Finished – Dyed, Bleached, Gassed, etc. – Yarns and Twists made of Natural and Chemical Fibres, with the Exception of Fabricated Worsted Yarns, Multi-End Twists for Vehicle Tyre Production, Jute Yarns and Yarns Made Up for Retail Sales – German Yarn Contract, Cartel Version of 1 June 2016January 2002”, hereinafter called the “GTC German Yarn Contract”. Such quantity discrepancies will be given full consideration in the invoiced amount. (c) In addition, “Part 2 – Technical Fundamentals” of the GTC German Yarn Contract shall apply. 6.2. Provided that the Buyer has complied with its obligations to inspect the goods and forward notification of defects as per Section 377 HGB in conjunction with Section 6.3 of the present GTC, the Seller will initially fulfil the warranty for defects in the goods by reworking them or supplying a substitute, at its own discretion. The Seller reserves the right to make two attempts at subsequent performance. The Seller has the right to refuse the chosen type of subsequent performance if it necessarily involves unreasonably high costs and the alternative type of subsequent performance does not constitute any significant disadvantages for the Buyer. If subsequent performance proves unsuccessful, the Buyer can, at its discretion, require reduction of remuneration or rescission of the contract. The right of the Buyer to claim damages as permitted by law as well as rescinding the contract is not prejudiced, with the exception of the limitations on damages claims by the Buyer under Section 7. 6.3 Notification of defects by the Buyer as provided in Section 377 HGB will only be effective if forwarded in writing. The other statutory requirements of Section 377 HGB are not prejudiced. Irrespective thereof, warranty claims by the Buyer are ruled out if the Buyer does not give written notification of obvious defects within 1 week, calculated from the time of delivery of the goods until dispatch of such notification. 6.4 In all cases, a non-defective item will only be supplied as part of subsequent performance in return for hand-over of the defective item. 6.5 The limitation period for warranty claims by the Buyer is one year. Instead of this 1-year period, the statutory warranty periods apply in the following cases: a) in the event of liability due to intent, b) in the event of malicious concealment of a defect, c) for claims against the Seller due to the defectiveness of an item if it was used in its customary way for a building and caused the latter to be defective, d) for claims due to losses resulting from injury to life, body or health which are based on a negligent breach of obligation by the Seller or an intentional or negligent breach of obligation by a legal representative or vicarious agent of the Seller, e) for claims due to other losses which are based on a grossly negligent breach of obligation by the Seller or an intentional or grossly negligent breach of obligation by a legal representative or vicarious agent of the Seller and f) in the event of recourse by the Buyer on the basis of the regulations on sale of consumer goods. 6.6 The Buyer will forfeit its warranty claims if it carries out installation or processing or resale of the goods despite knowledge of a defect.