Standard Guarantee and Liability Terms 11-2010

I Guarantee

1. The Supplier guarantees that products, which are used under normal circumstances and according to instructions of use and the applicable legislation, will function properly and are manufactured of defect free materials.

2. The guarantee period is two (2) years unless otherwise limited or agreed upon for a specific product or a product batch. The guarantee period starts from the day the end user received the product. The limit of the guarantee period is three (3) years from the end of the calendar month, during which the Supplier delivered the product from his dispatch department.

3. When receiving the delivery those preceding the end user in the supply chain as well as the end user are to carefully inspect that the shipment is according to the packing list and technical documentation and that no visible damages occur. Before the assembly or installation the assembler is to re-inspect the product, technical and other dispatch documentation including numerical information therein according to normal procedures and to ensure that the assembled product functions as intended. Ensto is to be informed of any deviations as stated in the General Sales Conditions article 13.

4. The guarantee liability covers the repair or replacement of the defected product, including freights, forwarding and other direct costs linked with delivery of the repaired or replaced product under guarantee.

5. The guarantee repair shall be made by the Supplier or the Suppliers authorized representative, who, when needed, shall replace the defected product in whole or in part with new one. The precondition of the liability to carry out a repair under the guarantee, if the Supplier so demands, is that the defected product or the defected part of the product is returned to the Supplier or a third party nominated by the Supplier.

6. The guarantee is limited as follows:

6.1. The guarantee liability does neither cover dismantling costs of the defected product nor assembly of the repaired or the replacing product and does not cover indirect costs or losses resulting from example dismantling or reassembling equipment other than the defected product.

6.2. The Suppliers liability does not cover damages or defects which could have been detected in the inspections specified in paragraph 3. above, or consequences of such matters.

6.3. The Supplier has fulfilled its obligations according to guarantee in respect with the defected product when the Supplier has delivered a new product as replacement or returned the duly repaired product.

6.4. After the termination of the guarantee period the Supplier shall be liable for only such defects and deficiencies, which are due to the Suppliers gross negligence or intent.

6.5. The Suppliers contracting party is to limit his own guarantee liability accordingly in his own terms of sale.

II Product liability

1. The Supplier shall be liable for damages to products and damages to third parties caused by products according to current product liability laws in EU and these conditions (see also Orgalime S 2000 articles 38 and 43). Both parties shall have sufficient product liability insurance.

2. The Supplier shall not be liable for indirect losses and pure financial losses, lost profit or other consequential economic losses.

3. The Supplier shall not be liable for damages caused by negligence of his contracting party or a third party and not for damages caused by the use of the product for other purposes than it is intended to.

4. The Supplier shall not be liable for damages caused by raw materials, designs of work methods instructed by the purchaser.

5. The Supplier shall maintain a general product liability insurance with a minimum cover of 
3.000.000 euros. The insurance shall cover the product liability of the Supplier towards the contracting party and the product liability of the Supplier towards third parties.

6. The Suppliers contracting party is to limit his own liability accordingly in his own terms of sale.

III Orgalime S 2000, order to apply the conditions

1. Orgalime S 2000 general conditions, except for articles 12-15, 18, 20; chapter 1 and 2, articles 23, 26, 28, 36, 44 and 45, are an integral part of these terms and conditions.

The conditions of the agreement shall be applied in the following order: 1. The conditions of the Agreement, 2. Ensto’s General Sales Conditions, 3. Product specific Guarantee Terms, 4. Ensto’s Standard Guarantee and Liability Terms, 5. Orgalime S 2000, 6. Incoterms 2010.