Sale & Supply Conditions

ZyLAB North America, LLC ("ZyLAB"), ZyLAB Technologies B.V. ("ZyLAB"), ZyLAB Benelux B.V. ("ZyLAB"), ZyLAB Distribution B.V. ("ZyLAB"), ZyLAB UK Limited ("ZyLAB"), Powered by ZyLAB S.L. aka ZyLAB Iberia ("ZyLAB"), ZyLAB Asia Pacific Ltd. Pte ("ZyLAB") and ZyLAB Australasia Ltd. Pty ("ZyLAB")

Version July 2005

These Conditions are registered at the Amsterdam Chamber of Commerce in the files of ZyLAB Distribution B.V., ZyLAB Technologies B.V. and ZyLAB Benelux B.V.

1 GENERAL

1.1

The present general conditions are applicable to all proposals, offers etc. of ZyLAB and form part of any agreement for the supply of goods and/or services by ZyLAB.

1.2

ZyLAB will categorically renounce general conditions imposed by the receiving party ("Client").
2 OFFERS

2.1
All offers, in whatever form, are without engagement. Acceptance will only become formal after an explicit written confirmation by ZyLAB.

2.2
Agreements confirmed by our representatives will only become formal after our written confirmation or, if this confirmation is omitted, after a period of fourteen days provided the representative's actions imply that the agreement has been accepted.
3 PRICES

3.1

Prices that have been agreed upon in writing are definitive. However, ZyLAB reserve the right to pass on to the Client any price changes that occur during the execution of the order which are caused by external circumstances like changes in the rate of exchange, import duties, freight charges, wages, rights and commissions.
3.2 All prices and tariffs are exclusive of VAT, sales taxes or any other taxes as levied by the local tax authorities.

3.3
For transactions in the United States of America, Canada and Mexico only: The price quoted is exclusive of sales tax. To the extent that the sale is subject to sales and use tax, the Customer is responsible for any and all such tax. Customer indemnifies ZyLAB for any tax charges and will immediately pay ZyLAB such taxes should ZyLAB be held responsible by the tax authorities for the collection of such taxes.
4 DELIVERY

4.1
Times of delivery, indicated by ZyLAB, can never be construed as rigid terms unless otherwise specified in writing. In case the delivery time is exceeded, ZyLAB will be answerable only after a written statement to that effect has been received.

4.2
The Client will not be entitled to claim any damages when ZyLAB are answerable as meant in the previous article.
5 SHIPMENT

5 .1
Shipments will be for the account and risk of the Client unless explicitly specified otherwise in writing. In such case the responsibility of ZyLAB for the shipment is limited to a period of 10 days after the date of invoice unless ZyLAB have notified the forwarder in writing about the missing goods.

5.2
Return shipments will only be accepted after preceding approval in writing.
6 CANCELLATION

6.1
Contracts with ZyLAB can only be cancelled after written permission from ZyLAB and only under conditions specified by ZyLAB.
6.2 Disputing the terms of delivery or the terms of payment after the contract has been closed can never be accepted as a ground for cancellation.

6.3
In case of cancellation ZyLAB is entitled to a cancellation fee covering the time spent on the project by ZyLAB. This cancellation fee may never exceed the agreed sales price for the entire order.
7 WARRANTY

7.1
Goods supplied by ZyLAB are guaranteed for a period of three months. As far as the software is concerned, we refer to the license agreement supplied with the software.

7.2
The warranty from ZyLAB will be null and void in case the Client modifies or repairs the goods or contracts a third party to do so. This also applies when the Client uses the goods for other purposes than the normal business use or treats or maintains the goods, in the opinion of ZyLAB, inappropriately or fails to follow the written directions and instructions as given by ZyLAB.
8 COMPLAINTS

8.1
Complaints regarding visible defects can only be dealt with if reported to us, in writing, within a period of eight (8) days after delivery.

8.2
Complaints regarding other (non visible) defects, covered by the guarantee as specified in article 7.1, have to be reported to ZyLAB, in writing, by the Client within a period of eight (8) days after the possible defects have become apparent or could have been apparent.
8.3 Defects not covered by the guarantee or discovered after the guarantee has elapsed will be corrected by ZyLAB on request from the Client and against the normal rate charged by ZyLAB in those cases.
8.4 Complaints can never be used as a reason to defer payments.
9 PAYMENT

9.1
Payments have to be made by bank transfer and as an unconditional prepayment unless otherwise specified in writing.

9.2
In case terms of payment have been agreed upon and these terms are exceeded by a period of 14 days without explicit written agreement, interest of 1 percent (1%) per month will be due for the period from the date of invoice till the day the payment has been made. ZyLAB reserve the right to take collection measures.
9.3 In case the terms of payment are exceeded, ZyLAB are entitled to defer further deliveries or to revoke the contract. In addition ZyLAB have the right to claim damages from the Client.
9.4 Client is not allowed to balance the payment with outstanding discounts or credits.
9.5 In case payment is not made or is made too late, ZyLAB reserve the right, without previous notice, to start collection, either via the legal system or otherwise. Costs of this collection are for the account of the Client with a minimum of 20% of the amount to be paid, said sum amounting to a maximum of US$ 2,500 (Two thousand and five hundred US dollars) and a minimum of US$ 50 (Fifty US dollars) for transactions in the United States of America, Canada and Mexico and a sum amounting to a maximum of € 2,500 (Two thousand and five hundred Euros) and a minimum of € 50 (Fifty Euros) for transactions outside of the United States of America, Canada and Mexico. In the case that ZyLAB decide to file a petition for bankruptcy of the Client, the Client will be liable to pay the cost of this petition in excess of the sum due for the invoice, interests and collection costs to ZyLAB.
10 PROPERTY RIGHTS

10.1
The property rights of the goods supplied by ZyLAB will be transferred to the Client only after payment of the invoice and all additional costs.

10.2
ZyLAB reserves the right to retrieve (or have retrieved) all unpaid goods without advance notice.
10.3 If similar goods, supplied by ZyLAB, have not been paid for yet, all goods present at the Client will be considered as being not paid for unless the Client can prove otherwise.
10.4 In case the Client has demonstrated that part of the goods supplied by ZyLAB has indeed been paid for, Client will transfer the property of said goods to ZyLAB as a security against his payment obligations to ZyLAB. Client agrees already now to eventually cede his proceeds from the transfer of the goods or otherwise generated to ZyLAB as a security against his payment obligations to ZyLAB subject to a penalty of US$ 500 (Five hundred US dollars) per day for transactions inside the United States of America, Canada and Mexico and a sum amounting to a maximum of € 2,500 (Two thousand and five hundred Euros) and a minimum of € 50 (Fifty Euros) for transactions outside of the United States of America, Canada and Mexico.
11 FORCE MAJEURE & ACTS OF GOD

11.1
ZyLAB cannot be held responsible for cases of force majeure as specified in article 11.3. Under such circumstances Client will not be allowed to cancel the agreement. ZyLAB will inform Client immediately when such a situation occurs.

11.2
When a situation of force majeure is imminent and ZyLAB have already partly fulfilled their obligations or are only able to fulfil part of their obligations afterwards, ZyLAB are allowed to invoice the part that has already been delivered or will be delivered with a separate invoice payable by Client as if it concerned a separate contract.
11.3 Force majeure, as meant in this article, comprises situations that cannot be attributed to ZyLAB and which may prevent, partly or in full, the fulfilment of the contract of ZyLAB. Amongst others this includes strikes, fire and other calamities at ZyLAB or their suppliers, acts of the local government and inadequate performance of their suppliers.
12 RESPONSIBILITY

12.1
ZyLAB will only be responsible for material damage, direct or indirect; to the goods belonging to Client or to third parties if this damage is caused either by a malfunction of the goods supplied or can be attributed to shortcomings of the personnel or tools that are used by ZyLAB in fulfilling their obligations under the current contract.

12.2
The responsibility of ZyLAB as mentioned above is limited to an amount of maximum US$ 500,000 (Five hundred thousand US dollars) per incident or a related group of incidents day for transactions inside the United States of America, Canada and Mexico and a sum amounting to a maximum of €500,000 (Five hundred thousand Euros) for transactions outside of the United States of America, Canada and Mexico.
12.3 ZyLAB will not be responsible for any consequential damage like overdue or deficient deliveries or damage to, and loss of information. Client will protect ZyLAB against all claims from third parties in this matter.
12.4 ZyLAB are also not responsible if the goods delivered are not fit for the function the Client wishes to use them for when the Client has not informed ZyLAB beforehand of his intentions.
12.5 The stipulations in this article do not affect the possible responsibilities of ZyLAB with respect to the legal regulations concerning product responsibility.
13 INTELLECTUAL PROPERTY

13.1
ZyLAB reserve the rights to all intellectual property concerning all goods and software supplied, including all inventions contained therein.

13.2
13.2 Client is not allowed to alter or copy the software supplied by ZyLAB. ZyLAB reserve the right to supply Client with certain software only under additional limiting conditions.
14 PUBLIC RELATIONS AND MARKETING

14.1
ZyLAB reserve the rights to use, without additional permission, Client's name for public relations and marketing purposes such as, but not restricted to: mentioning of Client's name on the ZyLAB Website, in the ZyLAB brochures, in ZyLAB case studies, in ZyLAB white papers, in ZyLAB's reference lists and in press releases. This all in relation to the applications released or ordered by Client from ZyLAB.
15 DEVIATION FROM THE PRESENT CONDITIONS

15.1
If both parties agree to deviate from certain articles in the present Conditions the other articles will remain in force, even if this has not been stipulated explicitly.

15.2
The agreement to partially deviate from these Conditions has to be confirmed in writing by ZyLAB. Under no circumstances will verbal agreements be binding.
15.3 If one or more conditions of our agreement with Client prove to be legally incorrect, then the other conditions will remain in force unconditionally. In the place of the incorrect stipulations an appropriate wording will be used that expresses as close as possible and legally correct the intentions of both parties and the economic result they aim for.
16 JURISDICTION

16.1
For transactions outside of the United States of America, Canada and Mexico, this agreement will be subject to Dutch law. All disputes originating from or applying to the agreement and/or these conditions shall only be submitted to the court of the city of Amsterdam, the Netherlands, in the Dutch or English language.

16.2
For transactions in the United States of America, Canada and Mexico, this agreement will be subject to Virginia law. All disputes originating from or applying to the agreement and/or these conditions shall only be submitted to the competent Judge in the Commonwealth of Virginia, U.S.A., in the English language.