General Terms and Conditions of Business r-BeSt coating Hartstoffbeschichtungs GmbH, Exlgasse 20a, A-6020 Innsbruck

1 Preamble
This contract is valid, as long as the contracting parties clearly and in writing have not agreed anything to the contrary, for all deliveries and services of r-BeSt coating Hartstoffbeschichtungs GmbH (=r-BeSt)

2 Close of Contract
2.1 The contract is taken as concluded, as soon as r-BeSt after the receipt of an order has sent out a confirmation to the principal and the said principal does not promptly reject the order in writing. An order is taken in this sense to include the sending of goods, the pre advising of goods to be sent and similar activities respectively.
2.2 Offers from r-BeSt are made without prejudice. Verbal information and acceptances, statements in prospectuses and advertising statements in whatever form respectively, illustrations, samples, compositions, performances, applications, quality statements, etc. are without prejudice, provided they have not clearly and in writing been designated as binding by r-BeSt.
2.3 Deviations from the product descriptions are taken as approved, provided the contracting partner does not find them unreasonable.

3 Delivery Dates and Part Deliveries.
3.1
The delivery dates given by r-BeSt are to be understood as guideline values. Should r-BeSt run into delay, so is r-BeSt responsible for the damages resulting from the delay only, if the delay is caused by r-BeSt through a breach of fundamental duties of the contract or through wilful damage or gross negligence. Compensation for damages as a result of non-performance can only be demanded by the contract partner also after a time limit with threats of rejection, if the non-performance is as a result of wilful damage or gross negligence or in the case of minor negligence is based on a breach of fundamental provisions of the contract.
3.2 r-BeSt is entitled to split delivery.

4 Price and Payment Conditions
4.1
The prices stated in the confirmation of order are taken as agreed and operates from the place of delivery stated by r-BeSt. Not included in the quoted prices are costs and additional costs of the delivery e.g. freight, postage, custom duties, insurances, and delivery costs. These prices will be charged extra on the invoice to the contract partner The prices stated are always net, that means excluding statutory revenue, custom duties and other dues.
4.2 The danger of damage or loss of the delivered goods passes upon leaving the point of distribution to the contract partner.
4.3 Invoices from r-BeSt are, as long as not otherwise agreed in writing, payable net without any cash discount deductions or any other deductions within 30 days, or payable within 10 days less 2% cash discount. r-BeSt accepts cheques payable on account only, all resulting bank charges will be debited to the contract partner. In the case of part deliveries according to paragraph 3.2 only the amount partly due is payable.
4.4 In cases of delay in payment r-BeSt will charge the contract partner default interest in the height of 10%. r-BeSt reserves the right to prove a higher damage resulting from the delay , the contract partner the right to prove a lower consequential damage.
4.5 The contract partner can only exercise a right of retention based on a counter claim which relates to the same contractual relationship. In the cases of ongoing business relations each individual order is considered as a separate contractual relationship. The off setting against claims of r-BeSt is also only with uncontested and absolutely laid down claims admissible.
4.6 The contract partners agree that the rights and duties stipulated under this contract will not be affected through the introduction of the Euro. Payment obligations, in particular the stipulated monetary value, are taken to be agreed in Euro, as soon as the Euro becomes the sole permissible legal tender. The translation follows in all cases upon the officially stipulated exchange rate.
4.7 For delivery and payment the registered office of r-BeSt GmbH is taken as the place of fulfilment, also in the case where actual delivery according to agreement takes place at another place.

5 Guarantee

5.1 Scope of the Guarantee
5.1.1 r-BeSt does not guarantee the reaching of a particular result through the employment of the subject matter of the contract (tool life, etc.), guarantees however that at the time of delivery by r-BeSt no spontaneous flaking off of the diamond coating was present.
5.1.2 The guarantee does not cover the removal of mistakes that occurred through outside influences or application mistakes. Furthermore guarantee claims do not result, if the contract partner does not follow necessary instructions issued by r-BeSt, or the contract partner or in addition non authorized third parties have interfered with the contractual goods or have caused changes to be effected, just as also not in the case where the contract partner has not completely or has incorrectly supplied information necessary for r-BeSt to properly carry out his duties.

5.2 Conditions of the Guarantee.
The contract partner is for the assertion of the guarantee duty bound, r-BeSt is to be granted the examination of the complaint object by the sending of the said object to the company registered office of r-BeSt. r-BeSt will be freed from all guarantee obligations upon refusal by the contract partner to grant the examination of the said object by r-BeSt.

5.3 Handling of Guarantee Claims
5.3.1 In the case of deficiency of the contractual goods or of property defect that r-BeSt according to § 2.3 has assured the contract partner in writing, r-BeSt is entitled as she may choose, in the first place to the improvement of the defective object. Should the said improvement prove impossible or should replacement delivery prove impossible within a reasonable time, the contract partner is entitled to demand the setting off (reduction) of the contractual sum. r-BeSt retains the right to liquidate the contract partner’s claim by the issuing of a credit note to cover the sum concerned.
5.3.2 Public defects are to be reported to r-BeSt by the contract partner before using the contract object, in any case at least within five working days after receiving the delivery, in every case of defect all claims are to be made in writing giving details of the defect. This also applies in this respect after the appearance of defects that could also not have been discovered after careful examination within this time limit. The general guarantee time limit is absolute, also for hidden defects with a time limit of six months after reception of the delivery.

5.4 Concluding Regulations to the Guarantee
5.4.1 The guarantee from r-BeSt is limited to the height of the scope of the contractual sum (net, excl. statutory turnover tax) and in the case of contracts with more than one contractual positions, limited to the height of the corresponding position total.
5.4.2 All further rights and claims of the contract partner against r-BeStregardless of the legal ground e.g. as a result of defect or fault of the contractual goods are excluded. This applies also for the remedy of indirect, damages such as consequential losses, loss of profit, damages brought about through the use of the contractual goods or through their non-usability on things and persons. Furthermore claims based on grounds of a breach of subsidiary contractual duties, in particular consultation and clarification duties are excluded.

6 Liability for Damage
r-BeSt and his vicarious agents are liable only for damages caused through wilful damage or gross negligence. In the case of minor negligence r-BeSt is excluded from liability. In the case of gross negligence irrespective of the legal ground the liability is in the height of three times the contractual sum (net, excl. statutory turnover tax) and with contracts with more than one contract positions is limited to three times the height of the corresponding position total of the part that caused the damage or that stands in direct relation to the position causing the damage respectively.

7 Export
The contract partner undertakes in the case of export or import of the contractual goods to observe the laws of the appropriate countries as well as the Austrian foreign trade laws and to establish proof in the appropriate form of all due import- and/or export licences, foreign exchange authorizations or such authorization necessary for the carrying out and carrying in of the contractual object. This applies equally for deliveries in countries, on the receiver or for purposes where the contract partner knows or should have known that they are subject to legal control. In the absence of the appropriate authorization r-BeSt is in no case liable.

8 Exemptions
In the case of delay in deliveries due to force majeure, sovereignty interventions, Act of God, war, insurrection, strike in own business, by delivery companies or transporters or based on any other grounds not caused by r-BeSt, r-BeSt is entitled to carry out the delivery within a reasonable time upon the disappearance of the circumstance.

9 Third Party Claims
r-BeSt will set the contract partner free from third party claims resulting from the breach of industrial property rights or copyright laws, provided the contract partner has informed r-BeSt without delay and in writing of the existence of such rights, and has provided r-BeSt with all the information and support necessary for taking defensive measures, in particular the alteration or exchange of the delivered goods. All further claims from the contract partner based on any other grounds whatsoever are excluded.

10 Right of Property
10.1r-BeSt reserves the right of property for all delivered contractual goods (=reserved goods) until the complete discharge of all financial obligations arising from the current business relationship. This provision applies as long as the value of the delivered reserved goods and open invoices from r-BeSt do not amount to more than 100%, over and above that following contractual goods in the chronological order of their delivery are taken as transferred.
10.2 The contract partner is not entitled to seize reserved goods before the passing of property or to cause such to be transferred for security reasons, himself or through a third party to interfere with the property, to carryout or effect changes to the contractual goods. The contractual goods may only be further disposed of within the framework of the regular course of business, in so doing the contract partner acquires already complete rights against his purchaser as security against claims from r-BeSt. r-BeSt accepts this cession. Should there occur any intervention with reserved goods or the claims from which r-BeSt has cessed the contract partner will inform r-BeSt in writing without delay and thereby inform the third party of the existing rights of r-BeSt.
10.3 r-BeSt is entitled to demand from the contract partner that the property rights of r-BeSt on the reserved goods be externally made known. The contract partner is to follow the prescribed regulations necessary for the protection of the said right of property.
10.4 Should the contract partner be in delay with one or more payments in full or in part, discontinues his payments, has an impending bankruptcy or court action over his property or the lack of sufficient cost covering property present in order to avoid a bankruptcy action, the contract partner may no longer have access to the contractual goods. r-BeSt is entitled in such a case to withdraw from the contract or to take back the reserved goods to be utilized for other purposes or to recall the authorization of the contract partner regarding the withdrawal of claims from further disposition. r-BeSt can then demand information about the receiver of the reserved goods and show them the cession of the claim as well as withdrawing the claim himself.
10.5 During the duration of the right of property, the contract partner will undertake sufficient insurance at his own cost and expense to cover the reserved goods against damage and destruction, e.g. through fire, water, burglary, vandalism or theft. The contract partner gives over the rights to claim insurance acquired in this connection over to r-BeSt and r-BeSt accepts this cession. r-BeSt declares the reversion of these rights to the contract partner the moment the property rights are liquidated.

11 Rescission
Both parties could repudiate a concluded contract wholly or in part, if:
11.1 in accordance with § 5.3.1 it comes to a delay in delivery of more than three months over the agreed delivery date. Further claims of the contract partner are hereby excluded.
11.2 the working or coating of a product is impossible for any reason whatsoever. In particular r-BeSt is entitled to withdraw from a concluded contract, if after requesting the information necessary to effect the performance of the services the said information is not made available to r-BeSt in writing within three weeks.

12 Confidentiality and Data Protection
The contract partners will treat as confidential company and business secrets of the other contract partner that have become known to them within the framework of the their business relationship. This applies also after the termination of the business relationship.

13 Jurisdiction
13.1 The place of jurisdiction for all disputes directly arising from the contract is that Austrian court which has jurisdiction for the place where the main office of r-BeSt is situated.
13.2 The parties can also agree in writing the jurisdiction of a court of Arbitration.
13.3 Austrian law governs this contract. The validity of the United Nations Agreement over contracts regarding the International Sale of Goods of 11.04.1980 (CISG) is excluded.

14 Miscellaneous
14.1 Should individual provisions of this "General Terms and Conditions of Service of r-BeSt GmbH, Exlgasse 20a, A-6020 Innsbruck" or the contract concluded with the contract partner be partly or wholly invalid, so is the effectiveness o the rest of the contract not affected.
14.2 Alterations and additions to this contract for their validity requires the written confirmation through r-BeSt.

deutsche Version

last revision: 05.04.2007 08:52:17