5. Reservation of rights and ownership

All rights to documents such as drawings, plans and samples are reserved. These documents may not be processed nor reproduced nor made available or forwarded to third parties without permission and are to be returned on request. PERNDORFER Maschinenbau KG expressly reserves the right to ownership until payment is made in full. In the case of delay in payment PERNDORFER Maschinenbau KG is entitled to demand the return of the reserved goods; the retrieval of the reserved goods does not represent a withdrawal from the contract. PERNDORFER Maschinenbau KG will further dispose of the goods by private contract and credit the customer with the proceeds, having deducted all expenses associated with the retrieval and further disposal of the goods. Seizure of the reserved goods instigated by PERNDORFER Maschinenbau KG does not imply a renunciation of ownership. If the customer should dispose of the reserved goods, all claims by the customer against third parties resulting from such disposal up to the amount of the still unresolved claims are to be considered to have been assigned to PERNDORFER Maschinenbau KG for the purpose of payment. The customer is obliged to reveal all information regarding buyer, purchase price, delivery date, location of the goods, etc. and disclosure of the transfer. If the goods are confiscated by the customer, he is obliged to deposit the proceeds separately. In the case of seizure of the reserved goods by a third party including attachment, confiscation or similar actions, the customer is to indicate PERNDORFER Maschinenbau KG´s right of ownership and to notify PERNDORFER Maschinenbau KG immediately in writing. The customer will completely indemnify PERNDORFER Maschinenbau KG for all expenses incurred in the prevention of any seizure of the reserved goods. Having given due notice PERNDORFER Maschinenbau KG is entitled to withdraw from the contract and to collect the reserved goods if the customer delays fulfilment of his obligations - even for reasons beyond his control - or if circumstances arise which compromise the rights of PERNDORFER Maschinenbau KG (see e.g. sub-clause 4 above)

6. Prices / Payment

Prices apply as ex warehouse of PERNDORFER Maschinenbau KG in Kallham or ex works excluding carriage, packaging and insurance and are exclusive of the current rate of VAT. Contracts for which no definite prices have been expressly agreed will be charged according to the list price valid on the date of delivery. Invoices are payable without discount thirty days after date of invoice. PERNDORFER Maschinenbau KG reserves the right - even having confirmed a contract - to increase the prices to PERNDORFER Maschinenbau KG´s list price as on the delivery date in the case of increases in the costs of significant materials, raw materials, carriers, increases in labour costs due to mandatory statutory provisions or collective contractual conditions, changes in exchange rates or conditions, increases in charges or increases in transport and delivery costs. Costs which are due to subsequent changes or adjustments to the order, will be borne exclusively by the customer. Bills of exchange and cheques will only be accepted if expressly agreed, without obligation for production or protestation and only on account of payment. Acceptance will be at the value applicable on the day on which PERNDORFER Maschinenbau KG can have disposal of the equivalent value. Discount charges and all costs associated with the discharge of the cheque or bill of exchange will be borne by the customer. Incoming payments will be credited first to costs and expenses, then interest and finally capital; PERNDORFER Maschinenbau KG is entitled to credit incoming payments against the longest-standing unpaid items. In the case of a default in payment on the part of the customer - even for reasons beyond his control - the customer is obliged to pay interest on arrears at a rate of 8 % above the current base rate of the European Central Bank, at least, however, at a minimum of 1 % per month. All guaranteed discounts, deductions or other concessions will be regarded as not granted in the case of a default in payment or if insolvency proceedings are commenced against the customer. If the customer is in arrears with payment - even for reasons beyond his control - he is obliged to pay the reminder and collection costs (e.g. solicitors' fees, debt collection agency's fees, etc) incurred in the due extra-judicial collection of the claim.

7. Cancellation

The customer is not entitled to cancel the contract either as a whole or in part. If PERNDORFER Maschinenbau KG should accept a cancellation in an individual case, the customer is obliged to pay a lump sum of 30% of the contractual amount to PERNDORFER Maschinenbau KG. The assertion of a claim for a higher amount of damages is reserved.

8. Bank guarantee / Letter of credit

For all prices and payments PERNDORFER Maschinenbau KG reserves the right to demand an abstract, divisible bank guarantee from a first class Austrian bank or the opening of an irrevocable, divisible and transferable documentary credit confirmed by a first class Austrian bank.