Common use of Subsequent Deliveries, Sorting and Reworking Costs Clause in Contracts

Subsequent Deliveries, Sorting and Reworking Costs. 2.3.1 KOSTAL shall be entitled to demand from the Supplier the subsequent delivery of products free of defects, or the remedy (repair) within an appropriate period set by ▇▇▇▇▇▇. KOSTAL will give the Supplier the opportunity before installation of the products upon the option of KOSTAL to sort out or repair the defective products or to replace the products by flawless new products where it is reasonable for the Supplier. Where it is not reasonable for ▇▇▇▇▇▇ (e.g. in the event of a threatened production interruption, endangerment of the compliance with their own delivery obligations) or if the Supplier refuses or fails to meet the deadline of the remedy or is unable to do so, ▇▇▇▇▇▇ shall have the right to perform the remedy themselves or have the remedy made by third parties, or to procure replacement. The Supplier will then be charged with the costs arising according to staff employ- ment, work effort as well as hourly wage along with overheads and profit margin. ▇▇▇▇▇▇ shall be entitled to fully charge the Supplier, in addition to the above-mentioned costs, with the rental costs arising for the required work and storage spaces to the amount of the effort actually made. The Supplier shall be charged with the extra costs arising from the replacement purchase. In events in which immediate action is required, KOSTAL shall be entitled to do so without any advance notification or extension of time. 2.3.2 The Supplier shall be required to pay, or reimburse ▇▇▇▇▇▇, all costs arising due to the remedy, including subsequent costs from third-party claims. This shall include but not be limited to costs for removal, installation, transport (freight and packaging), troubleshooting, allowances, addi- tional expense for covering purchase, material, scrapping etc. as well as third-party damage claims. 2.3.3 In addition, in the event of defects in supplied parts/materials/services, the following amounts will generally be invoiced within the scope of compensation for expenses due to internal ex- penditure at KOSTAL: a) Per necessary test report, the Supplier shall be required to reimburse € 192.50 (3.5h x 55 €/h). b) The Supplier shall be charged with error reports for which the cause of failure is determined by KOSTAL analysis staff during further processing with € 275.00 (5h x 55€/h). If additional costs are incurred by KOSTAL for the verification of the defect because the Supplier unjustly contests the defect or their responsibility, KOSTAL shall be entitled to charge the Supplier with these costs also. c) The Supplier shall be required to fully pay the special transport for the prevention of busi- ness interruptions at KOSTAL or at ▇▇▇▇▇▇’▇ customer’s to the full invoice amount for the transport.

Subsequent Deliveries, Sorting and Reworking Costs. 2.3.1 KOSTAL ▇▇▇▇▇▇ shall be entitled to demand from the Supplier the subsequent delivery of products free of defects, or the remedy (repair) within an appropriate period set by ▇▇▇▇▇▇. KOSTAL ▇▇▇▇▇▇ will give the Supplier the opportunity before installation of the products upon the option of KOSTAL ▇▇▇▇▇▇ to sort out or repair the defective products or to replace the products by flawless new products where it is reasonable for the Supplier. Where it is not reasonable for ▇▇▇▇▇▇ (e.g. in the event of a threatened production interruption, endangerment of the compliance with their own delivery obligations) or if the Supplier Suppl ▇▇▇ refuses or fails to meet the deadline of the remedy or is unable to do so, ▇▇▇▇▇▇ shall have the right to perform the remedy themselves or have the remedy made by third parties, or to procure replacement. The Supplier will then be charged with the costs arising according to staff employ- ment, work effort as well as hourly wage along with overheads and profit margin. ▇▇▇▇▇▇ shall be entitled to fully charge the Supplier, in addition to the above-mentioned costs, with the rental costs arising for the required work and storage spaces to the amount of the effort actually made. The Supplier shall be charged with the extra costs arising from the replacement purchase. In events in which immediate action is required, KOSTAL ▇▇▇▇▇▇ shall be entitled to do so without any advance notification or extension of time. 2.3.2 The Supplier shall be required to pay, or reimburse ▇▇▇▇▇▇, all costs arising due to the remedy, including subsequent costs from third-party claims. This shall include but not be limited to costs for removal, installation, transport (freight and packaging), troubleshooting, allowances, addi- tional expense for covering purchase, material, scrapping etc. as well as third-party damage claims. 2.3.3 In addition, in the event of defects in supplied parts/materials/services, the following amounts will generally be invoiced within the scope of compensation for expenses due to internal ex- penditure at KOSTAL▇▇▇▇▇▇: a) Per necessary test report, the Supplier shall be required to reimburse € 192.50 (3.5h x 55 €/h). b) The Supplier shall be charged with error reports for which the cause of failure is determined by KOSTAL ▇▇▇▇▇▇ analysis staff during further processing with € 275.00 (5h x 55€/h). If additional costs are incurred by KOSTAL ▇▇▇▇▇▇ for the verification of the defect because the Supplier unjustly contests the defect or their responsibility, KOSTAL ▇▇▇▇▇▇ shall be entitled to charge the Supplier with these costs also. c) The Supplier shall be required to fully pay the special transport for the prevention of busi- ness interruptions at KOSTAL ▇▇▇▇▇▇ or at ▇▇▇▇▇▇’▇ customer’s to the full invoice amount for the transport.

Subsequent Deliveries, Sorting and Reworking Costs. 2.3.1 KOSTAL ▇▇▇▇▇▇ shall be entitled to demand from the Supplier the subsequent delivery of products free of defects, or the remedy (repair) within an appropriate period set by ▇▇▇▇▇▇. KOSTAL ▇▇▇▇▇▇ will give the Supplier the opportunity before installation of the products upon the option of KOSTAL ▇▇▇▇▇▇ to sort out or repair the defective products or to replace the products by flawless new products where it is reasonable for the Supplier. Where it is not reasonable for ▇▇▇▇▇▇ (e.g. in the event of a threatened production interruption, endangerment of the compliance with their own delivery obligations) or if the Supplier refuses or fails to meet the deadline of the remedy or is unable to do so, ▇▇▇▇▇▇ shall have the right to perform the remedy themselves or have the remedy made by third parties, or to procure replacement. The Supplier will then be charged with the costs arising according to staff employ- ment, work effort as well as hourly wage along with overheads and profit margin. ▇▇▇▇▇▇ shall be entitled to fully charge the Supplier, in addition to the above-mentioned costs, with the rental costs arising for the required work and storage spaces to the amount of the effort actually made. The Supplier shall be charged with the extra costs arising from the replacement purchase. In events in which immediate action is required, KOSTAL ▇▇▇▇▇▇ shall be entitled to do so without any advance notification or extension of time. 2.3.2 The Supplier shall be required to pay, or reimburse ▇▇▇▇▇▇, all costs arising due to the remedy, including subsequent costs from third-party claims. This shall include but not be limited to costs for removal, installation, transport (freight and packaging), troubleshooting, allowances, addi- tional expense for covering purchase, material, scrapping etc. as well as third-party damage claims. 2.3.3 In addition, in the event of defects in supplied parts/materials/services, the following amounts will generally be invoiced within the scope of compensation for expenses due to internal ex- penditure at KOSTAL▇▇▇▇▇▇: a) Per necessary test report, the Supplier shall be required to reimburse € 192.50 (3.5h x 55 €/h). b) The Supplier shall be charged with error reports for which the cause of failure is determined by KOSTAL ▇▇▇▇▇▇ analysis staff during further processing with € 275.00 (5h x 55€/h). If additional costs are incurred by KOSTAL ▇▇▇▇▇▇ for the verification of the defect because the Supplier unjustly contests the defect or their responsibility, KOSTAL ▇▇▇▇▇▇ shall be entitled to charge the Supplier with these costs also. c) The Supplier shall be required to fully pay the special transport for the prevention of busi- ness interruptions at KOSTAL ▇▇▇▇▇▇ or at ▇▇▇▇▇▇’▇ customer’s to the full invoice amount for the transport.