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20. WARRANTY CONDITIONS

1. Without prejudice to the restrictions stated hereinafter, the contractor guarantees both the

soundness of the product delivered by him and the quality of the material used and/or delivered for
it, insofar as this concerns faults in the product delivered which do not become apparent during
inspection or transfer test, which the principal shall demonstrate to have arisen within 12 months
from delivery in accordance with subarticle 1A exclusively or predominantly as a direct consequence
of unsoundness of the construction used by the contractor or as a consequence of faulty finishing or
the use of poor materials.

1A. The product shall be deemed to have been delivered when it is ready for inspection (if

inspection at the premises of the contractor has been agreed) and otherwise when it is ready for
shipment.

2. Articles 1 and 1a shall equally apply to faults which do not become apparent during inspection or

transfer test which are caused exclusively or predominantly by unsound assembly/installation by the
contractor. If assembly/installation is carried out by the contractor, the guarantee period intended in
article 1 shall last 12 months from the day on which assembly/installation is completed by the
contractor, with the understanding that in this case the guarantee period shall end not later than 18
months after delivery in accordance with the terms of subarticle 1A.

3. Defects covered by the guarantee intended under articles 1, 1a and 2 shall be remedied by the

contractor by repair or replacement of the faulty component either on or off the premises of the
contractor, or by shipment of a replacement component, this remaining at the discretion of the
contractor. Subarticle 3A shall equally apply if repair or replacement takes place at the site where
the product has been assembled/installed. All costs accruing above the single obligation described
in the first sentence, such as are not restricted to shipment costs, travelling and accommodation
costs or disassembly or assembly costs insofar as they are not covered by the agreement, shall be
paid by the principal.

3A.If repair or replacement takes place at the site where the product has been assembled/installed,

the principal shall ensure, at his own expense and risk, that:

a. the employees of the contractor shall be able to commence their work as soon as they have

arrived at the erection site and continue to do so during normal working hours, and moreover,
if the contractor deems it necessary, outside the normal working hours, with the proviso that
the contractor informs the principal of this in good time;

b. suitable accommodation and/or all facilities required in accordance with government

regulations, the agreement and common usage, shall be available for the employees of the
contractor;

c. the access roads to the erection site shall be suitable for the transport required;

d. the allocated site shall be suitable for storage and assembly;

e. the necessary lockable storage sites for materials, tools and other goods shall be available;

f. the necessary and usual auxiliary workmen, auxiliary machines, auxiliary tools, materials and

working materials (including process liquids, oils and greases, cleaning and other minor
materials, gas, water, electricity, steam, compressed air, heating, lighting, etc.) and the
measurement and testing equipment usual for in the business operations of the principal, shall
be available at the correct place and at the disposal of the contractor at the correct time and
without charge;

g. all necessary safety and precautionary measures shall have been taken and adhered to, and

all measures shall have been taken and adhered to necessary to observe the applicable
government regulations in the context of assembly/installation;

h. the products shipped shall be available at the correct site at the commencement of and during

assembly.