General Business Terms and Conditions

1. All VEBEG sales are governed exclusively by the following conditions and the conditions of the respective tenders. Alternative agreements require confirmation by VEBEG in writing.

2. Published tenders are not binding.

3. Published tenders are not to be understand as a contractual offer in terms of law, but shall be deemed as an invitation to the bidder, to submit binding bids (= offers).

4. The definition contractor in terms of the following provisions shall be understood as a natural person, a legal entity or a partnership of legal capacity, who upon conclusion of a legal transaction, acts within its commercial- or individual professional duties.

5. VEBEG´s tenders include also goods, which according to the assessment of VEBEG are embraced by the Export Control List (AL) of the German Exporte Ordinance (AWV), for which export thereof requires an Export License from the Federal Export Control Authority (BAFA). These goods will be annotated.

1. Inspect goods thoroughly before submitting a bid (note provision G "Warranty and Liability for Defects").

2. Send bids in writing preferably on VEBEG's Bidding-Form to VEBEG in Frankfurt. Submission of bids by Telefax are acceptable, bids by E-mail are not accepted. Bidding- Forms will be sent on demand.

3. The correct lot number must be given, using all eight digits. Give a brief description of goods description of goods wherever possible.

4. Submit bids using the correct bid-basis (e.g. per item, per kg, en bloc).

5. Bids must always apply to the total quantity of the respective lot.

6. VAT will be charged in addition to the bid price, unless the regulations of § 25a UStG (German VAT Law) apply.

7. Bids must include the exact address of bidder (if available including telephone- or fax number). Do not forget your legally valid signature!

8. Send bids in due time to arrive at VEBEG prior before tender deadline expires.

9. Withdrawal of a bid must arrive at VEBEG in writing before the expiry of tender deadline. If bidder submits several bids for the same lot, the valid bid is always the last bid received.

10. Bids may not be considered and may be rejected by VEBEG, if they are not in accordance with above mentioned provisions or if they contain any conditions or reservations.

11. The Bidder whose bid has been accepted will be notified within 7 days. Bidders who do not receive notification within this period may assume that their bid was not considered. On enquiry by phone, the successful bid price and the bidders name will be made public.

1. Bids are principally to be made in EURO. Bids in foreign currencies will be converted at the official exchange selling rate in EURO (€) on the day of bid acceptance.

2. Submitted bids are binding offers for the conclusion of a contract.

3. The purchase contract with a bidder will be concluded upon acceptance of bid on the time set for bid opening. The contract will be awarded to the highest bid at that time. The highest bidders has no claim for acceptance of his bid.

4. VAT will be charged in addition to the bid price, unless the regulations of § 25a UstG (German VAT Law) apply.

1. Payment shall be received by VEBEG within 10 days of date of invoice without any deduction. Cheques are accepted as payment only, bills of exchange are not accepted.

2. In case of Intra Community Deliveries within the meaning of the German VAT Law to other territories within the EU, the invoice shall be without VAT. In case of Export Deliveries within the meaning of German VAT Law to countries outside the EU, the Buyer shall pay in addition to the purchase price a security to the same amount as the VAT. The security can only be reimbursed upon presentation of proof of exportation for VAT purposes in form of copy No. 3 of the Export Declaration cleared by the customs office of departure (border customs office), as well as (if required) in form of supplementary proof of import respectively in form of dispatch vouchers (e.g. Air Waybill, Bill of Lading) and, as far as required in an Export License, in form of a Delivery Verification or Landing Certificate issued by the county of destination. Reimbursement shall be forfeited if the required documents are not received by VEBEG within 6 months of date of invoice; this does not affect the Buyers obligation to present the documents.

3. Payment is to be made in EURO. Banking fees and exchange differences are at the Buyers expense.

4. The Buyer may set-off only those claims against VEBEG, which have become res judicata or which are undisputed by VEBEG.

1. On payment of the full invoice amount the Buyer will receive a release note (Abholvollmacht). In case of Intra Community Deliveries, Prior to handing over of the release note, the Buyer has to declare in writing to deliver the goods to a member state of the Community.

2. The Buyer is obliged to collect the goods purchased within 3 weeks of the date of the invoice. This pick-up obligation is one of the Buyers principal performance obligations. Before removal, the Buyer must make prior arrangements with the contact officer at the storage location concerned.

3. VEBEG as the exporter is responsible for adherence of the customs regulations and the export licensing procedure.

In case of exports to destinations outside the EU, pick-up of the goods can only take place on presentation of copy No. 3 of the Export Declaration, cleared by the customs office competent for the storage location. For the export of goods subject to an Export License, pick-up can only take place after the Export License was granted by the Federal Export Control Authority (BAFA). VEBEG shall apply for the Export License. The Buyer has to put at VEBEG´s disposal any documents necessary for the application procedure. Domestic Buyers shall be incumbent to examine the goods in accordance with the German Export Control List and -where applicable- to apply for the Export License at the German Export Control Authority (BAFA).

4. Goods are sold ex storage location. The Buyer shall provide the manpower and equipment necessary for loading and transportation of the goods and shall pay for all costs incurred (including assistance by the storage authority, as well as fees for custom clearance).

5. The Buyer shall be liable for any loss or damage caused by himself or his agents arising out of or in any way in connection with the performance of his contractual obligations (especially during pick-up of the goods) and in this context shall indemnify VEBEG and its principals against all relevant third party claims including litigation costs. Unless excluded by law, the Buyer waives all rights to claim against VEBEG and its principals in respect of any loss, damage or injury suffered by him, his personnel or his agents in connection with the take-over, collection or transportation of the goods and in this respect VEBEG and its principals shall also be indemnified against all claims from third parties.

6. The risk of deterioration or loss of the goods transfers to the Buyer on take-over of the goods but at the latest on expiry of the 3-week term.

7. For goods sold by weight, piece or measure, the exact quantity will be determined under supervision of the storage authority. In case of sale by weight, the goods shall be weighed on a weigh-bridge next to the storage location at the Buyers expenses. The weigh-bridge tickets shall be handed over to the storage authority immediately. On VEBEG's request the Buyer has to take over excess quantities; they will be charged at the agreed price. For deficit quantities according credit notes will be issued. The Buyer has no right to claim for a subsequent delivery.

8. In the event VEBEG is unable to make goods available prior to the transfer of risk to the Buyer, the Buyer is entitled only to reimbursement of the invoice amount. Further claims against VEBEG are excluded unless the action of VEBEG can be proved as to be deliberate or grossly negligent.

9. The Buyer has a right for those documents only, that VEBEG's contracting authorities have released for transfer, e.g. certificates, manuals. Military entries will be deleted.

The title of the goods, transfers to the Buyer once payment of the purchase price has been made and handing over of the of the goods has been completed.

1. The vehicles/goods advertised for bids, have been discharged by VEBEG´s contracting authorities, as they are in general not in a running condition, respectively have faults or defects. In order to restore operational function, extensive repairs could be necessary.

The exact quality, respectively the condition of the goods are unknown to VEBEG, as the sale is effected ex storage location. Details in the tender documents merely serve the general identification of the goods and do not represent any characteristics in terms of lawful purchasing. No conclusions can be drawn from these details as far as the condition of the goods or its functionality in individual cases is concerned. Due to this reason, bidders are invited, urged and cautioned to inspect goods thoroughly prior to submitting bids.

2. If the Buyer is a contractor, the goods are sold without any warranty. If the Buyer is a consumer, the warranty period is limited to one year.

3. Due to the lack of knowledge of the actual condition of the goods, VEBEG gives no guarantee as to description, quantity, quality, condition, suitability for use and licensing, undamaged history or the non-existence of apparent or hidden defects.

4. Remarks regarding the description, condition and assortment of the goods as well as indication of quantities in "en bloc"-lots are not binding. Information, statements and promises are without obligation unless confirmed by VEBEG in writing.

5. The Buyer shall be responsible for adherence of safety-, licensing- and environmental protection requirements as well as for applying for operating permits.

1. VEBEG´s liability - irrespective of the legal reason and apart from statuatory liability - is limited to damages caused by

a) deliberate violation of a major contractual duty (cardinal obligation), which impairs the performance of the contractual purpose, or

b) gross negligence or intent by VEBEG.

2. In the event that VEBEG is held liable pursuant to 1.a) for violation of a major contractual obligation, without being blame for gross negligence or intent, the liability is limited to such typical damages, which VEBEG could reasonably have anticipated under the circumstances known at the time of conclusion of the contract.

3. In the event that VEBEG is held liable pursuant to 1.a) and b) due to intent or gross negligence by employees, who are not legal representatives or management staff of VEBEG, the liability is also limited to such typical damages, which VEBEG could reasonably have anticipated under the circumstances known at the time of conclusion of the contract.

4. VEBEG shall not be liable for collateral damages, consequential damages caused by a defect, or loss of profit, unless these damages are attributable to intent or gross negligence by the management staff of VEBEG.

5. The before mentioned limitations of liability shall also apply in favour of employees or delegated agents of VEBEG.

6. The liability of VEBEG with regard to damage to life, bodily harm or health, as well as malicious nondisclosure of a defect to the object of purchase, remains unaffected by the above mentioned limitations of liability.

7. VEBEG cannot guarantee for the permanent availability of their website http;//www.vebeg.de and is not liable for technical impassability in connection with the internet medium. VEBEG is especially not responsible, when due to technical disruptions outside of VEBEG´s sphere of influence, tenders can not be viewed or downloaded.

1. If a contractor fails to pay the full amount of the purchase price in due time, VEBEG shall be entitled in accordance to §§ 280, 281 of the German Civil Code (BGB) to charge default interest at 8 % above the basic interest rate and to retain all performance ensued from all purchase agreements concluded with the Buyer. If a consumer fails to pay in due time, the interest rate is at 5 % above the basic interest rate.

2. If the Buyer fails to remove the goods in due time, VEBEG shall be entitled to charge default fees in the amount of storage fees usually charged by freight forwarders and/or to have the goods removed and to store elsewhere on account and risk of the Buyer. Pursuant to §§ 280, 281 BGB VEBEG shall also be entitled to refuse the acceptance of the Buyers further performance, to sell or dispose the goods over the counter and to charge the Buyer with all costs and damages incurred.

Place of Execution for all payments is Frankfurt am Main.

If the Buyer is a contractor or a legal entity under public law, venue and jurisdiction for all disputes shall be Frankfurt am Main,

Exclusively the laws of the Federal Republic of Germany shall apply. The UN Sales Laws are excluded.

If any of the above provisions shall be held to be invalid, the remaining provisions of the Terms and Conditions shall not in anyway be affected ore impaired thereby and stay binding.

Edition February 2002

Not binding translation. In case of disputes the German version prevails.