 Centralized lubrication systems

 Metering technology

 Mixing technology

LubTec, s.r.o., Registered office: Opolany 4, 289 07 Libice nad Cidlinou, Company registration number: 25068911, Tax identification number: CZ25068911

General Business andDelivery Terms and Conditionsof Company LubTec, s.r.o.

  1. Validity andApplication of the Business Terms and Conditions

These general business, sales, deliveryand payment terms and conditions (hereinafter referred to asthe GT&C) are an integral part of every contract of sale(hereinafter referred to asthe Contract of Sale) concluded between company LubTec, s.r.o.,as the Seller(hereinafter referred to asthe Seller) andthe customer -the Purchaser (hereinafter referred to asthe Purchaser). They shall not apply to any contracts in which this was expressly stipulated. Any contingent contractual terms and conditions which would be contrary to these GT&C, shall have precedence over these GT&C.

Should any provisions of these GT&CorContracts of Sale, which include these GT&C, be invalid or should they become invalid any time later, the validity of any remaining provisions of the given documents shall not be affected.

Any amendments to any Contracts of Sale already concluded are valid only if they are made in writing after an agreement of the Contracting Parties.

  1. Conclusion of Contracts of Sale

Any Seller´s offer which does not include any address is not binding andcan be revoked any time before a Contract of Sale is concluded.

A Contract of Sale shall be concluded: by signing of a written Contract of Saleby the Contracting Parties, by receipt (confirmation) of an order made by facsimile or e-mail.

Any manifestations of will of the Contracting Parties do not need to be in the same document; the email communication does not require using a guaranteed electronic signature.

The Selleris obliged to deliver to the Purchaser(orto any other person designated by the Purchaser) the goods according to the terms and conditions of the concluded Contract of Sale, in particularly, in the time-limit, in quantity and quality stipulated.

  1. Price of the Goods

According to an agreement, the price shall be contractual.

The price for a product shall be understood the price without VAT ex warehouse of the Seller, i.e. EXW LubTec, s.r.o., Opolany 4,pursuant to INCOTERMS 2000. The VAT shall be added to the price and charged in the amount pursuant to legal regulations being applicable on the day on which a tax certificate was issued.

  1. Transportation of the Goods

Unless agreed between the Sellerand the Purchaser otherwise, the transportation of the goods shall be ensured by the Seller to the Purchaser;any parcels up to 30kg shall be delivered by using the Profi Parcel Service (or any similar service) of Czech Post, s.p. (Česká pošta, s.p.), parcels over 30kg shall be delivered by using any carriage service according to the Seller´s choice.The Purchaser undertakes to pay the price of the transportation.

  1. Delivery of the Goods and Packaging

Any duties of the Seller shall be considered to be fulfilled:

a)by a Seller´s notification made towards the Purchaser that the Goods are available for taking over;

or

b)by handing over of the Goods to the first carrier for transportation to the place determined by the Purchaser.

The Goods shall be taken over by the Purchaseror the Purchaser´s representative or the carrier in the presence of the Sellerora Seller´s entrusted employee. The taking over of the Goods shall be confirmed by the Purchaserin the delivery or carriage note, tax certificate or installation sheet.

Unless agreed otherwise, the Goods shall be packaged in the standard way (foil wrapper, cardboard,palette, container) according to the typeof the goods andtransportation. The standard packaging does not protect the goods against any careless handling.

The Purchaseris obliged to take over the Goods delivered by the Seller pursuant to the Contract of Sale,even in the case of a partial delivery – partial performance. The Seller´s failure to comply with stipulated delivery periods by less than ...... shall not constitute the Purchaser´s right to withdraw from the Contract of Sale.

In the case that the Purchaseris in delay with taking over of the goods, the Sellermay withdraw from the Contract of Sale.

The Sellershall be entitled to postpone the delivery of the goods until

-the Purchaserfulfils those duties which should be fulfilled according to the Contract of Salebefore the delivery of the goods.

-the Purchaserfulfils any other obligations, in particularly, until the Purchaser pays any due debits towards the Seller.

During the time of postponing of the delivery of the goods, the Seller shall not be in delay.

  1. Risk ofHarm to the Goods

The risk of harm to the goods shall pass to the Purchaser at the moment of the taking over of the goods orof the handing over to the first carrier for transportation.

  1. PaymentTerms and Conditions

Unless expressly agreed in writing orgiven in an individual invoice otherwise, the purchase price shall be payable within fourteen (14) calendar days of the fulfilment of the Seller´s duty according to Clause 5.1 of the GT&C.

Unless the payment in cash is expressly agreed in writing, the purchase price shall be payable to the Seller´s bank account given in the Contract of Sale or in the tax certificate. The Purchaser´s obligation to pay the price shall be considered to be fulfilled, in the case of the credit transfer, at the moment when the amount is credited to the Seller´s bank account.

The Purchasershall become the owner of the goods only after the price is paid in full. If the Purchaseris in delay with payment, the Sellershall have the right to withdraw, in full or partially, from the Contract of Saleandthe Purchaseris obliged to return, at the Purchaser´s costs and risks, the goods to the Seller, to the place where the goods were taken over or from where the goods were handed over to the first carrier for transportation.

The Purchaseris obliged to handle with the goods, to which the reservation of ownership is related, before the transfer of ownership title in such manner to avoid any depreciation, damage, destruction, theft or lost of the goods. The Purchasermay not sell the goods, put them into pledge or encumber them with any rights of any third person before the transfer of ownership title.

  1. Contractual Penalty in the Case of Delay

If the Purchaseris in delay with payment of the purchase price, the Seller is entitled to the contractual penalty in the amount of 0,05% of due sum for every day of delay. This shall not affect the right to compensation for damages.

  1. Warranty – Claims Arising from Defects of the Goods, Warranty Claim

The Purchaseris obliged to inspect the goods when taking over them.If the Purchaserfails to take over the goods duly and timely, the Purchaser shall be fully responsible for all damages incurred in consequence thereof.The Seller shall provide the Purchaser with a contractual warranty for six (6) months with regard to the goods to be sold, under the conditions mentioned below in Art. 13.

Unless specified in these GT&Cotherwise, the provisions of the Commercial Code shall apply to claiming of defects at the Seller.

The Purchasershall confirm by taking over of the goods that it has became familiarized with technical parameters of the goodsandshall be responsible for the professional installation, using, operation and service, all in accordance with ČSN and EU standards, including ensuring of skills of the operating staff and service staff. The Purchaser shall be responsible for consideration of suitability of the goods andthe using thereof for Purchaser´s purposes.

All notifications of any defects must be sent to the Seller in writing. Any apparent defectsmust be claimed within fourteen (14) days of the taking over of the goods at the latest andany inherent manufacturing defects(defects ascertained by using the professional care)within six (6) months of the taking over of the goods at the latest. The finishing of the operating life under the conditions which do not correspond to parameters determined by the Seller, before the expiration of the warranty period, shall not be considered a manufacturing defect and the warranty shall not apply to this.

Any Purchaser´s claims arising from defects of the goods shall be admitted only in the case that they were notified timely andif the Purchaser proves that such defects were not caused after transfer of the harm to the goods to the Purchaser. The warranty period shall not apply to any components with the short operating life and to expendable supplies.

The prerequisite of the admission of a claim arising from defects of the goods is the admission of the warranty claim by the Seller on the basis of the Seller´s own technical testing.

If there are prerequisites for the admission of a claim arising from defects of the goods andif, in the case of delivery of any defective goods, the Contract of Salewas breached in a serious way, the Selleris solely obligated to:

a)deliver the missing quantity of the goods;

b)replace the defective goods by the goods without defects orto bring the goods into such conditions without defects.

The Purchaser shall have the entitlement to delivery of the replacement goods only after the Purchaser returned the defective goods to the Sellerpursuant to the prior agreement.

If the delivery of the replacement goods or missing quantity of the goods pursuant to Clause 9.7 is not possible, the Sellershall be entitled to withdraw from the Contract of Sale. In such case, the Selleris obliged to immediately refund the price of the goods which was not delivered.

10. Acquiring of Ownership Title

10.1 The Purchasershall become the owner of the goods after payment of the price thereof in full (reservation of the ownership).

10.2 As long as the goods are owned by the Seller, the Purchasercannot grant or assign any rights to any third persons with regard to the goods in question.

11.Vis Majeure

11.1 Circumstances excluding the liability shall be considered any restriction which has occurred independently of the will of the liable party andwhich obstructs the party´s fulfilment of duties, if it cannot be reasonably assumed that the liable party will avert or overcome this restriction orany consequences thereof, andfurthermore, that this party could foresee this restriction at the moment of formation of this obligation.

11.3 If the circumstances excluding the liability andobstructing the fulfilment of any Seller´s duties pass away, the Selleris obliged to additionally fulfil any duties arising from the Contract of Saletowards the Purchaser, unless the Purchaserrequires the additional fulfilment.

12. Governing Law, Territorial Jurisdiction

12.1 Any Contracts of Saleto be concluded shall be governed by the Commercial Code.

12.2 Any disputes which will arise from the Contract of Saleorin connection therewith andwhich are not first resolved through amicable settlement shall be decided, as by the Court of the first instance (§ 89a of the Civil Procedure Code), by the District Court in Nymburk, eventually, by the Regional Court in Prague.

13. Warranty Terms and Conditionsof LubTec, s.r.o.

Company LubTec, s.r.o. guarantees that its own products andproducts to be distributed are free of any defects of material andmanufacturing defects for six (6) months.

13.1The Purchaseris obliged to duly inspect the goods when taking over themandto confirm the taking over in the Contract of Carriage of the carrier orin the delivery note, tax certificate or installation sheet andto maintain the controlled documentation relating to the taking over. If the Purchaserfails to take over the goods duly and timely, the Purchaser shall be fully responsible for all damages incurred in consequences thereof.

13.2Unless stated in these terms and conditions otherwise, the provisions of the Commercial Code shall apply to the notification of defects at the Seller.

13.3 The Purchasershall confirm by taking over of the goods that it has became familiarized with technical parameters of the goods and shall be responsible for the professional installation, using, operation and service, all in accordance with ČSN and EU standards, including ensuring of skills of the operating staff and service staff. The Purchaser shall be responsible for consideration of the suitability of the goods and the using thereof for Purchaser´s purposes.

13.4All notifications of any defects must be sent to the Seller in writing. Any apparent defects must be claimed within fourteen (14) days of the taking over of the goods at the latest and any inherent manufacturing defect (defects ascertained by using the professional care) within six (6) months of the taking over of the goods at the latest, however, 2000 operational hours at the most (unless it is stated otherwise). The finishing of the operating life under the conditions which do not correspond to parameters determined by the Seller, before the expiration of the warranty period, shall not be considered a manufacturing defect and the warranty shall not apply to this.

13.5Any Purchaser´s claims arising from defects of the goods shall be admitted only in the case that they were notified timely and if the Purchaser proves that defects were not caused after transfer of the harm to the goods to the Purchaser due to external circumstances. The warranty period shall not apply to any components with the short operating life and to expendable supplies.

13.6 The prerequisite of the admission of a claim arising from defects of the goods is the admission of the warranty claim by the Seller on the basis of the Seller´s own technical testing at company LubTec, s.r.o. Transportation of the goods claimed shall be always paid by the Purchaser.

13.7According to the warranty, the Seller shall, after the Seller´s discretion, eventually, after an agreement with the Purchaser:

a)deliver the replacement goods instead the defective goods, eventually,deliver the missing goods;

b)rectify such defect, if this defect is reparable.

13.8.All claims to compensation for any damages of the Purchaser towards the Seller in connection with the Contract of Sale shall be limited by the amount of the price paid for the goods delivered to the Purchaser; the Sellershall be responsible only for damages which it caused wilfully orby gross negligence.

13.9 Company LubTec, s.r.o. does not grant any other guaranties.

Applicable from 1.1.2007

The company is entered in the Commercial Register maintained by the Municipal Court in Prague, section C, insert number 46939.

LubTec, s.r.o. | Opolany 4 | CZ 289 07 LIBICE NAD CIDLINOU

Phone: +420325637545 | FAX: +420325637184 | |

VAT: CZ25068911 | Entered by the Municipal Court in Prague, section C, insert number 46939