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  General Terms and Conditions of the LGA

1 January, 2006

§ 1 Field of application
(1) The LGA's legal relationships to its clients shall be determined in accordance with the following General Terms of Business. "LGA" is defined as LGA (Landesgewerbeanstalt Bayern) Public Corporate, LGA Bautechnik GmbH, LGA QualiTest GmbH, LGA Training & Consulting GmbH, LGA Fachschulen gGmbH and LGA (HK) Limited.

(2) Any of the client's terms of business differing from these will only be contractually valid if specifically recognized in writing by the LGA.

§ 2 Test material: transport risk and storage
(1) Any danger and expense incurred through the carriage and transport of test material to and from the LGA shall be borne by the client, who shall also cover the expense of any measures necessary for waste disposal.
(2) Any test material which has been destroyed or otherwise made worthless shall be at the LGA's disposal, unless otherwise agreed.
(3) Any test material not destroyed will be stored by the LGA for four weeks after completion of testing. If a longer storage period is required, the LGA will charge an appropriate storage fee.

§ 3 Authority to publish, contractual penalty regulations
(1) Test results and expert opinion may only be published and used in their unabbreviated original phrasing and form. This shall also apply to the contractually granted use of trademarks. Any modified representations involving more than a simple change in scale must be individually approved by the LGA.
(2) The client shall be obliged to pay a contractual penalty amounting to 40% of the agreed fee for any infringement of Paragraph (1).
(3) The contractual penalty regulations shall not exclude the LGA from making further claims for damages. In this case, the charge for the contractual penalty shall be taken into account with the claim for damages.

§ 4 Services supplied by third parties
As a rule, the LGA's services are supplied by its own specialist staff. However, it is also entitled to have its services supplied by adequately qualified sub-contractors. In this case, too, the LGA shall remain the client's sole contractual partner.

§ 5 Client's rights
If the service supplied is unsatisfactory or if the LGA commits any breach of duty, the client is to allow the LGA an appropriate period of time to carry out the service or for subsequent fulfilment (correction of faults or substitute delivery). The client shall only be entitled to further rights if no effective action is taken within this period of time.

§ 6 Final acceptance

(1) The parties assume that the LGA's services, inasmuch as they are work services ("Werkleistungen"), are basically not open to final acceptance, and therefore that completion of the work shall replace final acceptance.

(2) Should final acceptance be required in any individual case, this shall be considered successful 14 days after completion and delivery of the work, unless the client expressly refuses final acceptance within this period of time. The LGA will specifically refer to this at the beginning of the period of time.

§ 7 Liability
(1) In the context of the statutory definition of liability, the LGA shall only be liable in cases of deliberate or grossly negligent behaviour on the part of the LGA, its legal representatives or assistants.
(2) The exclusion of liability in Paragraph (1) shall not apply in cases of injury to life, body and health.
(3) The exclusion of liability in Paragraph (1) shall also not apply if a contractually essential duty is carelessly neglected. In this case, the LGA's liability is limited to the foreseeable damage and to a maximum of € 2.5 million per claim.

§ 8 Change in price
(1) Any changes in price, in particular due to a new edition of the LGA's Schedule of Services and Fees, will be taken into account
a.) after expiry of the fourth month since award of commission/conclusion of agreement, in the case of private clients,
b.) after expiry of four weeks since award of commission/conclusion of agreement, in the case of companies, legal persons under public law and public law special assets.

(2) Divergent from Paragraph (1), changes in price shall have immediate effect in cases of continuous obligation.

§ 9 Terms of payment, due date
(1) The LGA is entitled to charge appropriate advance payments or part payments, according to the progress of services provided.
(2) The amount invoiced is payable immediately, without any deduction, and is to be transferred to an LGA account, giving the invoice number. Any bank charges made for payments in foreign currency shall be paid by the client.

§ 10 Legal domicile
The legal domicile for any disputes arising from the agreement is Nuremberg, if the client is
1. a businessman, a legal person under public law or public law special assets, or
2. has no general legal domicile in Germany.

§ 11 Applicable law
Any claims arising from the agreement shall be exclusively subject to the objective regulations of the law of the Federal Republic of Germany.

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