General Conditions of Sale / Status April 2003

1. Scope of application
The following general conditions of sale apply to all of our - even prospective - deliveries and services. We do not accept conditions of the customer that are conflicting or deviate from our conditions of sale, especially not through unreserved delivery with the knowledge of such conflicting or deviating conditions.

2. Offer/conclusion of a contract
a) Our offers are not binding. A contract is only first effected through our order confirmation, but in each case with the uncontradicted acceptance of the delivery. Possible contradictions are to be noted on our delivery note and the CMR consignment note and to be countersigned by the driver; the customer is to send one copy of each of these documents to us without delay.

b) Specifications on dimensions, weights and other product characteristics included in our offers as well as in other attached documents are solely reference values and only become part of the contract if they are listed as binding in our order confirmation. Varying from this, the tolerances stipulated in our technical data sheet or - failing such - the customary tolerances apply as confirmed and in this order, even without explicit declaration of application. The version of the technical data sheet valid in each case will be sent at our cost if requested by the customer.

c) We retain our title to and copyright for all compositions, manufacturing specifications, models and other specifications and information that we accord to the customer - be it in a tangible or intangible form, but also especially in electronic form; they may not be made accessible to third parties without our explicit written approval. This applies specifically for any written documents that have been designated as confidential.

d) If the order qualifies as an offer according to sec. 145 of the German Civil Code, this is binding for the customer for a time period of 14 workdays after the order is sent. We shall be entitled to the right to accept the offer within this period by sending an order confirmation or sending the ordered goods.

3. Price/payment/default interest/lump-sum damage compensation
a) Our prices are free domicile and shall exclude any statutory value added tax, unless otherwise agreed in individual cases. Each delivery day is merged into unit billing, unless otherwise agreed.

b) All invoice final amounts are due for payment within 30 days of the invoice date without deduction, unless otherwise agreed in individual cases. In the event of default of payment, we may charge interest in the amount of 15 % p.a. above the base rate in accordance with sec. 247 of the German Civil Code, irrespective of our right to claim further damages and the opportunity for the customer to demonstrate to us that no or fundamentally little damage has resulted; however, we can at the least claim the legal default interest rate.

c) We reserve the right to raise our prices proportionately if cost increases occur after the conclusion of the contract that were incalculable at an earlier time, at the earliest four weeks after the agreement date; especially included here are cost increases due to advances in prices for preliminary products and imported goods, as well as modified exchange rates. Relevant changes will be verified by us to the customer on demand.

d) If we accept cheques or promissory notes upon specific arrangement, this only takes place on account of performance; possible cheque and bill charges are at the expense of the customer.

e) In the event of unjustified failure to perform and/or unjustified breaking of a contract by the customer, a lump-sum damage compensation of 15 % of the net value of the goods from the order will be additionally levied, irrespective of the opportunity for the customer to demonstrate to us that fundamentally little or no damage has resulted, and irrespective of our right to claim further damages.

f) If the insufficient performance of the customer is recognizable after the agreement date and with it an endangerment of the performance in return by the customer, especially in the form of a fundamental degradation of the customer's economic relations - not limited to immaterial late payments or the continual failure to comply with our terms of payment - we are authorised to cancel agreed payment periods, even for future deliveries, and only to conduct outstanding deliveries from all business relations existing with the customer against advance payment or the providing of securities in accordance with bank practices. Further legal claims remain unaffected.

g) The set-off with counterclaims and the assertion of a right of retention by the customer is excluded as long as the counterclaim is not final and binding, uncontested or recognised by us in writing. However, the customer is entitled to retention due to counterclaims from the same contractual relationship.

4. Delivery/force majeure/packaging/transport/passing of risk
We reserve proper and timely self-delivery. If this is not possible due to circumstances for which we are not responsible, we will correspondingly inform the customer promptly, at the latest within 5 workdays after receiving this information ourselves. In this case we may withdraw from the contract after an adequate waiting time has expired. The customer is entitled to the right to withdraw from the contract after expiry of an adequate additional period for performance that was confirmed in writing or, in the exceptional cases regulated by law, without setting an additional period for performance with the non-arrival of the proper and timely self-delivery.

b) We are not bound to delivery dates confirmed by us should the customer not provide us with the information and documents required for the scheduling, production and transport planning in a timely manner and/or fail his/her other contractual obligations that determine or influence the timely delivery of the goods to him/her; specifically included here are: (1) The final clarification of all technical details using the designations listed in the version of our technical data sheet that is valid in each case, (2) the timely and proper fulfilment of the obligations of the customer, specifically the submission of all documents and official authorisations to be provided by the customer as well as (3) the payment of an agreed advance payment.

The version of the technical data sheet valid in each case will be sent by us at our cost if requested by the customer.

c) Delivery dates are only binding if we expressly confirm them in writing and are subject to the reservations from number 4 letter a) and letter b).

d) Force majeure and similar events, including war, riots, lawful industrial action and illegal strikes, acts decreed by public authorities, energy and resource shortage, unavoidable interruptions of traffic and operations as well as fire, even at our suppliers', free us from the obligation of delivery and performance for the duration of the disturbance and the scope of its consequences.
If of incalculable duration, circumstances within the meaning of sentence 1 of this provision authorise us to withdraw, completely or in part, from the contract without the customer being entitled to a claim for damages, at the earliest 30 days after their occurrence; the same applies if the named circumstances retroactively render the realisation of the contract uneconomic and it is no longer reasonable that we adhere to the contract. Upon the occurrence of force majeure or similar events, we will inform the customer as soon as possible; number 4 letter a), sentence 3 applies accordingly.

e) We are entitled to partial deliveries and part performance and - according to corresponding invoicing - may request their separate payments, unless the partial delivery or part performance is objectively not of interest to the customer or is not reasonable for the customer. The rights of the customer with regard to default or impossibility of our performance remain unaffected by this.

f) If the delivery or acceptance of the goods is delayed in the case of a delivery date which is binding for us or if we have announced the (anticipated) delivery/performance a minimum of eight workdays in advance and the customer is responsible for the delay, the risk of loss and the deterioration of the goods, irrespective of other agreements on terms of delivery and payment, pass to the customer with the expiry of the workday agreed as the delivery date.

g) The corrugated board sheets are delivered on wooden pallets or comparable carriers unless otherwise agreed. Each pallet is equipped with a plastic strapping.

5. Warranty
a) Irrespective of the provision of sec. 377 of the German Commercial Code, the customer must note and confirm the defects that are obvious upon delivery of the goods, specifically short deliveries and wetness, forklift and other transport damages, immediately with the driver on our delivery note as well as on the CMR consignment note, and additionally promptly send us a copy of this delivery note. Defects that are identifiable through reasonable inspections as well as incorrect deliveries must be promptly reported by the customer in writing, at the latest within seven workdays of the delivery.

b) The customer carries the full burden of proof for all claim requirements, specifically for the defect itself, the rejected amount of delivered goods, the time of the identification of the defect and the timeliness of the notification of defects.

c) In the event of a justified complaint of defects for which we are responsible, we are entitled to the subsequent performance of our choosing, i.e. either by remedying the defect or by delivering defect-free goods within an appropriate period that also includes the time for the procurement of goods from the upstream supplier. If the subsequent performance is not carried out in adequate time, the customer can demand a reduction of the compensation or reverse the contract, if the utilisation of the delivered items is not only impaired insignificantly. Number 6 applies accordingly for potential claims for damages by the customer.

d) Claims under a right of recourse by the customer against us exist only if as the customer has not made any agreements with the buyer which overlap the legal warranty claims. Number 6 of these general conditions of sale applies for the scope of the claims for damages and claims for the compensation of wasted expenditure as part of the recourse.

e) The customer further undertakes to accept and handle warranty claims from his/her buyer according to our warranty policies that are known to him/her.

6. Damages, compensation of wasted expenditure
a) Claims for damages and claims for the compensation of wasted expenditure by the customer that are based upon negligent breach of our contractual or legal obligations are excluded, unless otherwise agreed in these general conditions of sale or individual agreements that deviate from them.

b) The exclusion of liability in the preceding letter a) does not apply with respect to our liability for the culpable injury to life, body, health, our liability for defects, the absence of which we had guaranteed, our binding liability according to the German Product Liability Act as well as for those cases in which we negligently breached an important contractual obligation (cardinal obligation). In the cases of negligently breaching a cardinal obligation, our liability is limited to the contract-specific, foreseeable damages at the conclusion of the contract, unless this breach of contractual obligations lead to damages to life, body or health.

c) If our liability is excluded or limited in these general conditions of sale, this is also valid for the personal liability of our personnel, employees, staff, representatives and vicarious agents.

7. Reservation of title
a) We reserve the title on the delivery item (hereafter "goods subject to the reservation of title") and on the documents enclosed with the delivery item as long as we are still entitled to outstanding claims of any kind from present or future business relations with the customer. For current accounts, this reservation of title also serves the safeguarding of our respective account balance. In the event of default of payment or a sustained reduction of the creditworthiness of the customer, we are also entitled to an interim withdrawal of the goods subject to the reservation of title and the documents at the cost of the customer without exercising the right of termination and without an additional period for performance; the customer is obliged to surrender these. The assertion of the reservation of title as well as the complete or partial attachment of the delivery item by us do not apply as termination of contract unless explicitly identified as such.

b) The customer shall be entitled to resell the goods subject to the reservation of title in the ordinary course of business. An course of business is not ordinary if the goods subject to reservation of title are not resold under reservation of title. The authority to resell the goods subject to the reservation of title in the ordinary course of business expires as soon as the customer defaults the payment, a sustained reduction of the customer's creditworthiness occurs or the customer fails his/her other significant contractual obligations owed to us. The customer hereby assigns to us all claims arising from the resale of the goods subject to the reservation of title together with ancillary rights and security interests in the amount of the invoice value of the goods subject to the reservation of title. The preceding listed assignments are hereby accepted by us. The customer is also authorised to collect the assigned claims until the expiry of the preceding issued authority to resell goods subject to the reservation of title in the ordinary course of business. Upon expiry of such authority, we are entitled to inform the buyers of the customer of the assignment and to collect the claims ourselves. Upon expiry of the collection authority, the customer shall furthermore furnish all information and all documents to be delivered that are required for the assertion of the assigned claims.

c) Transfer of title or assignment for security as well as pledging of the goods subject to the reservation of title or the assigned claims are impermissible. The customer shall immediately inform us in writing of attachment or other dispositions or intervention by third parties.

d) The customer holds the goods subject to the reservation of title and the documents for us free of charge. The customer shall insure them against the customary dangers, such as fire, breaking and entering, theft and transport as well as bursting pipe damage. The claims arising from a case of damage against the insurer and third parties are hereby assigned to us by the customer in the amount of the invoice value of the affected goods subject to the reservation of title plus potential transport and disposal costs. This assignment is also accepted by us.

e) Should the value of the securities to which we are entitled exceed our claims in total by more than 20 %, we are obligated to release the securities of our choice upon demands in this respect by the customer or a third party affected by the excessive security.

f) The processing or alteration of the goods subject to the reservation of title by the customer will always be conducted for us. If the goods subject to the reservation of title are processed with other items that do not belong to us, we thereby gain co-ownership of the new object in a ratio of the value of the goods subject to the reservation of title to the other processed items at the time of the processing. For the objects created through the processing, the same is valid as for the goods subject to the reservation of title.

g) If the goods subject to the reservation of title are inseparably mixed with other items that do not belong to us, we thereby gain co-ownership of the new object in a ratio of the value of the goods subject to the reservation of title to the other mixed items at the time of the mixture. If the mixture occurs in such a way that the object of the customer is seen as the main object, it is deemed agreed that the customer assigns us proportional co-ownership. The customer holds for us the sole property or co-owned property thus generated.

8. Limitation of action
All warranty claims, damages claims and claims for the compensation of expenses incurred on the part of the ordering party shall come under the statute of limitations after 12 months unless stipulated otherwise below. In cases of gross guilt, i.e. in cases of malice, intent or gross negligence, for claims in accordance with the product liability act and in cases of injury to life, body, or health, the statutory deadlines shall apply.

9. Other
a) None of the preceding clauses lead to a modification of the burden of proof to the disadvantage of the customer in that the burden of proof for circumstances that are in our sphere of responsibility are imposed on him/her.

b) As long as the customer is a registered merchant according to the German Commercial Code, a legal person under public law or a special fund under public law, Landau i. d. Pfalz is the sole jurisdiction over all disputes that directly or indirectly arise from the contractual relationship; however we are entitled to also bring action against the customer at his or her head office.

c) The laws of the Federal Republic of Germany apply to the exclusion of the United Nations Convention on Contracts for the International Sale of Goods (CSIG), namely also if the customer has his or her registered office abroad.

d) All agreements met between the customer and us with regard to the orders and their implementation are and will be recorded in writing provided that the parties have not met a different agreement in individual cases or meet a different agreement in the future.

e) Should individual or multiple provisions from the contract entered into with the customer (including these general conditions of sale) prove to be invalid, void or incomplete, the validity of the other provisions of the contract remain unaffected by this. The parties of the contract - in the proper form, if necessary - will replace the invalid or void provision with a valid provision or fill the contractual gap with a provision with which the economic purpose that it is meant to fulfil can best be reached. If the invalidity or nullity of a provision is based on a measure of performance or time (period or deadline), a legally permissible measure should take the place of the invalid or void performance or time stipulation.

Registered office of the company is
Offenbach/Queich. Landau i. d. Pfalz
Local Court HRB 30110