Document:

Exhibit 10.25

 

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

 

Dated the 15 day of May 2009

 

SIEMENS MAGNET TECHNOLOGY LIMITED

 

and

 

BRUKER EAS

 

 

SUPPLY AGREEMENT

 

 

 

THIS AGREEMENT IS MADE THE 15 DAY OF MAY 2009

 

BETWEEN

 

(1)                                  SIEMENS MAGNET TECHNOLOGY LIMITED a company incorporated in England and Wales (registered number 2342055) whose registered office is at Sir William Siemens Square, Frimley, Camberley, Surrey GU16 8QD, United Kingdom (“Siemens”); and

 

(2)                                  Bruker EAS GmbH whose registered office is at D-63450, Hanau, Ehrichstrasse 10, Germany (“the Supplier”).

 

RECITALS

 

(A)                              Siemens produces superconducting magnets for magnetic resonance imaging applications and requires superconducting wire for incorporation in such magnets and the Supplier produces superconducting wire.

 

(B)                                The parties have therefore agreed to enter into this Agreement for the supply of such wire by the Supplier to Siemens upon the following terms and subject to the conditions contained below:

 

NOW IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                      DEFINITIONS

 

In this Agreement the following words and expressions shall have the following meanings unless the context otherwise requires:

 

	
“Agreement”
    	
 
    	
means   this agreement between Siemens and the Supplier and the Schedules;
    
	
 
    	
 
    	
 
    
	
“Assets”
    	
 
    	
means   those items defined in clause 22 of this Agreement;
    
	
 
    	
 
    	
 
    
	
“Clause”
    	
 
    	
means   clauses of this Agreement;
    
	
 
    	
 
    	
 
    
	
“Competitiveness”
    	
 
    	
the   Supplier’s continued competitiveness in respect of matters including (but not   limited to) cost, price, supplier support and the Supplier’s compliance with   the Quality Key Performance Indicators. “Competitive” shall be construed   accordingly;
    
	
 
    	
 
    	
 
    
	
“Internal   Consignment Store”
    	
 
    	
means   the consignment store located at the Site;
    

 

 

	
“External   Consignment Store”
    	
 
    	
means   the Supplier’s site as notified to Siemens’ in writing from time to time;
    
	
 
    	
 
    	
 
    
	
“Consignment   Store”
    	
 
    	
Shall   jointly refer to the Internal Consignment Store and External Consignment   Store and shall mean the areas as determined in accordance with Clause 6.1;
    
	
 
    	
 
    	
 
    
	
“Effective   Date”
    	
 
    	
means   01-12- 2008;
    
	
 
    	
 
    	
 
    
	
“Epidemic   Failure”
    	
 
    	
means   where there is a consistent failure over a three month consecutive period   resulting in defects greater than 1.75% per month by part number;
    
	
 
    	
 
    	
 
    
	
“Generic   Failure”
    	
 
    	
means   where 1.75% or more of the Products supplied in a period of one month are   defective or where 1.75% or more of the Products supplied within a single   batch are defective;
    
	
 
    	
 
    	
 
    
	
“Invoice”
    	
 
    	
means   the invoice raised in accordance with Clause 9, the form of which is shown in   Schedule 9;
    
	
 
    	
 
    	
 
    
	
“KANBAN   System”
    	
 
    	
Means   the production control system used by Siemens at the Site or at the premises   of Siemens’ nominated logistics providers for managing logistics of supplying   parts to Siemens as provided for by Clause 6.3;
    
	
 
    	
 
    	
 
    
	
“Kit   Price”
    	
 
    	
means   the price of the Products as varied from time to time in accordance with   Schedule 2 ;
    
	
 
    	
 
    	
 
    
	
“Material   Breach”
    	
 
    	
shall   include but not be limited to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
i)                                         any act or   omission of a Party which deprives or which may deprive the other Party of   the benefit of this Agreement to a material degree; or 

ii)                                      there being   an Epidemic Failure.
    
	
 
    	
 
    	
 
    
	
“Parties”
    	
 
    	
means   Siemens and the Supplier. “Party” shall be construed accordingly;
    
	
 
    	
 
    	
 
    
	
“Price”
    	
 
    	
means   the price payable by Siemens to the Supplier in force from time to time and   calculated in accordance with Schedule 2;
    

 

 

	
“Products”
    	
 
    	
means   the products and the Specifications for which are set out in Schedule 1;
    
	
 
    	
 
    	
 
    
	
“Purchase   Orders”
    	
 
    	
means   the purchase order for Products in the form shown at Schedule 6;
    
	
 
    	
 
    	
 
    
	
“Quality   Key Performance Indicators” (“Quality KPI’s”)
    	
 
    	
means   the key performance indicators set out in Schedule 7, or such other key   performance indicators as the Parties may agree from time to time;
    
	
 
    	
 
    	
 
    
	
“Schedules”
    	
 
    	
means   the schedules to this Agreement;
    
	
 
    	
 
    	
 
    
	
“Scheduling   Agreements”
    	
 
    	
means   the scheduled orders for Products in the form shown at Schedule 12;
    
	
 
    	
 
    	
 
    
	
“Site”
    	
 
    	
means   Siemens Magnet Technology, Wharf Road, Eynsham, Witney, Oxon, OX29 4BP;
    
	
 
    	
 
    	
 
    
	
“Rework”
    	
 
    	
means   any remedial or repair works carried out on any Product;
    
	
 
    	
 
    	
 
    
	
“Specification”
    	
 
    	
means   the specification for the Products set out in Schedule 1 as such   specification may be amended from time to time in accordance with the   provisions of this Agreement.
    

 

2.                                      PURPOSE OF AGREEMENT

 

The Supplier will supply to Siemens during the continuance of this Agreement the Products in accordance with the provisions of this Agreement which shall override any contrary, different or additional terms or conditions (if any) contained in or referred to in a purchase order, order acknowledgement or other documents or correspondence between the Parties.  In the event of conflict between the Clauses and the Schedules the Clauses shall prevail.

 

3.                                      DATE AND TERM

 

This Agreement shall commence on the Effective Date and shall continue in force until terminated by either Party giving not less than twelve months’ written notice to the other Party.

 

4.                                      DEMAND PLANNING

 

4.1                                 Siemens shall keep the Supplier as well informed as possible in the light of customer demand for its magnets and shall promptly inform the Supplier of 

 

 

changes in its requirements.  Without limiting the foregoing Siemens shall notify the Supplier in writing on a monthly basis of Siemens’ requirements for Products for the following twelve (12) month period; this forecast shall indicate Siemens’ requirements by magnet type.  Such forecasts shall be prepared in good faith on the basis of best available information but the Parties acknowledge that such forecasts do not form a binding commitment on Siemens to purchase or the Supplier to supply Products and is for information purposes such as long term planning by the Parties.

 

4.2                                 Without prejudice to Clause 4.1, in the event that Siemens requirements for Products exceeds the requirements projected in accordance with Clause 4.1, Siemens shall notify the Supplier in writing of its requirements and the Supplier shall use all endeavours reasonably practicable to meet such requirements.

 

4.3                                 Siemens agrees that it shall purchase from the Supplier the following percentages of its annual requirement of Products until such time as the percentages are reviewed and amended as agreed by the Parties:

 

	
Magnet   Type
    	
 
    	
Percentage
    
	
 
    	
 
    	
 
    
	
[**]  
    

 

It shall not be a breach of this Agreement for Siemens in its sole discretion to purchase any Products from other Suppliers in the event of unavailability of the Products either in meeting Siemens’ forecasted requirements or due to unavailability at the Kanban System notwithstanding that this may result in the annual percentages to be purchased from the Supplier being lower than set out in this Clause 4.3.  The percentages set out above shall be reviewed annually by the Parties.

 

5.                                      ORDERING OF PRODUCTS

 

5.1                                 The Supplier shall supply Siemens as specified in its Scheduling Agreements.  Scheduling Agreements which are generated electronically shall not require any signature, unless the Purchase Order relates to Products outside the scope of this Agreement.  The Supplier shall promptly acknowledge in writing each Scheduling Agreement.

 

5.2                                 Products ordered for other purposes than magnet production shall be ordered using individual Purchase Orders.  The Purchase Order shall include the required delivery date and quantity.  The Supplier shall promptly acknowledge in writing each such individual Purchase Order.

 

6.                                      CONSIGNMENT STORE SUPPLY LOGISTICS

 

6.1                                 The delivery logistics for the Products shall be upon the basis of a consignment store, such store to comply with clause 6.2 and to be located at the Site reasonably determined by Siemens and Siemens shall in making such determination provide the Supplier with reasonable storage space.  This shall be the Internal 

 

 

Consignment Store.  Siemens may elect for a third party agent to operate an External Consignment Store at a place outside the Site (and for avoidance of doubt, the provisions of Clause 6.2 shall only apply to the Internal Consignment Store).  The Supplier shall be responsible for putting in place and maintaining insurances against all appropriate risks for the external Consignment Store and the Supplier shall produce to Siemens certified copies of such certificates of insurance within seven (7) days of written request from Siemens.

 

6.2                                 Siemens shall procure that the Internal Consignment Store to be provided pursuant to clause 6.1:

 

6.2.1                        is wind and weatherproof and provides adequate protection from the elements for its contents;

 

6.2.2                        is dry and is maintained at a temperature between four degrees Celsius and 30 degrees Celsius;

 

6.2.3                        is configured to minimise the risk of damage to Products in the course of handling;

 

6.2.4                        is of adequate size and appropriate shape and lay-out for safe storage of Products;

 

6.2.5                        contains such racking and other storage equipment as is appropriate for safe storage of the Products;

 

6.2.6                        and that the Site is secure against unauthorised entry or access.

 

6.3                                 The method for delivery to the Consignment Stores shall be by way of the KANBAN System as set out in Schedule 10.

 

6.4                                 Siemens shall procure that:

 

6.4.1                        only authorised personnel of Siemens (being persons who have been granted access to the Site by Siemens) or the Supplier have access to the Site;

 

6.4.2                        Products are not removed from the Internal Consignment Store except by Siemens’ authorised personnel (or by the Supplier);

 

6.4.3                        Products are not removed by Siemens from the Internal Consignment Store except as complete Products;

 

6.4.4                        Products are not removed from the Internal Consignment Store except when required for prompt incorporation in a magnet or other Siemens needs at the Site (or by the Supplier) or if a Product is rejected by Siemens and Siemens shall further procure that proper care of the Products is taken prior to any such incorporation;

 

 

6.4.5                        Products being worked on are treated properly and preserved from damage in the Internal Consignment Store; and

 

6.4.6                        Products are kept within a demarcated area of the Internal Consignment Store which is clearly identified as containing Supplier goods.

 

6.5                                 Siemens ensure that the KANBAN System will notify the Supplier when Products are removed from the External Consignment Store, such notification to be made within twelve hours of removal and to specify the Products removed.

 

6.6                                 Without prejudice to Clause 12, risk in the Products shall pass to Siemens upon delivery of the Products to the Internal Consignment Store in accordance with this Clause 6.6.  For the avoidance of doubt, where Products are damaged in the Internal Consignment Store due to the negligent or wilful act or omission of Siemens prior to the transfer of risk and title in accordance with this Clause 6.6, Siemens shall be responsible for such damage.

 

6.7                                 Without prejudice to Clause 7, the Supplier shall ensure that all Products in the Consignment Store meet the Specification.

 

6.8                                 Siemens shall allow the Supplier’s employees, agents, contractors and representatives access to the Internal Consignment Store during normal business hours.  The Supplier shall ensure that all its employees, agents and representatives stay within the paths, foot-prints and other markings made by Siemens delineating the passage to and from the Internal Consignment Store and that such parties observe all health and safety laws and regulations and warning notices on the Site, including but not limited to warning notices in relation to magnetic fields and “ESD” zones.

 

6.9                                 Products ordered through Individual Purchase Orders shall be delivered to the Siemens receiving warehouse, unless specified otherwise by Siemens.

 

6.10                           If the Supplier removes Products from the Internal Consignment Store, it shall ensure that only complete Products are removed.

 

7.                                      INVENTORY RISK

 

7.1                                 Siemens may from time to time notify the Supplier by way of written notice (the “Notice”) a minimum of five months prior to the planned date, that it is terminating production of a magnet or other product for which it requires particular Products and accordingly that it no longer requires the particular Products for the item which it is so terminating and for which there were ongoing forward requirements in the forecast (the “Obsolete Products”).  The Supplier shall notify Siemens within 6 weeks of the date of the Notice, of Siemens liability for the Obsolete Products which are the subject of the Notice, such liability to be calculated in accordance with this clause.  Siemens will not accept any further claims from the Supplier for Obsolete Products after this six week period.

 

 

7.2                                 Siemens shall be responsible for that quantity of Obsolete Products in a period equal to 100% of the cost of the Obsolete Products up to a period of 8 weeks from the date of the Notice, 80% up to a period of 12 weeks from the date of the Notice and 50% up to a maximum period of 16 weeks for all Product types with the exception of [**] related Products that will be 20 weeks from the date of the Notice subject always to the Supplier using its reasonable endeavours to utilise, place, dispose of or sell such Obsolete Products elsewhere.  For the avoidance of doubt, any determination of quantity as described above will be limited within the confines of the relevant Supplier MPS (Relevant Supplier MPS being the Supplier MPS to 20 weeks for [**] related Products and 16 weeks for all other Product types at the time of the Obsolete Product Notice.  Siemens will endeavour to issue replacement orders to the Supplier for alternative products to maintain the agreed upon overall share of the Siemens demand.

 

8.                                      TECHNICAL MODIFICATIONS

 

8.1                                 The Supplier shall modify, amend or otherwise vary the Specification and the process of manufacture only with the prior written consent of Siemens (which shall not be unreasonably withheld delayed or conditional) save in respect of modification, amendment or variation for health and safety reasons or which does not affect form fit or function, in which circumstances the Supplier shall promptly notify Siemens in writing setting out in detail the modification, amendment or variation made and the relevant health and safety reasons.

 

8.2                                 Siemens shall notify the Supplier in writing of design changes to its magnets.  In this case, Siemens shall only be liable for the quantity of Product which it no longer requires by reason of such design change described in Clause 7, following the same provisions to utilise, place, dispose of or sell the Products elsewhere and Siemens may issue replacement orders as provided in that Clause.

 

9.                                      PRICE AND PAYMENT

 

9.1                                 The price of the Products is set out in Schedule 2.

 

9.2                                 Payment for the Products shall be processed after taking from the Products from the Internal Consignment Store and the transfer of risk to Siemens as specified in clause 6.6.  The payment terms will be 10 business days once the Product has been taken (for consumption) from the internal Consignment Store.  Upon execution of the “Self Billing Agreement” as set out in Schedule 11 between the Parties in a form approved by HM Customs and Excise the Supplier shall agree that Siemens uses self-billing to process the payment.  The Supplier shall not raise VAT invoices for Products covered by this Self Billing Agreement.  After execution of the payment, the title will be transferred to Siemens.

 

9.3                                 For Products not covered by the Self Billing Agreement, the Supplier shall raise an Invoice following the transfer of title and risk to Siemens in accordance with 

 

 

Clause 6.6 and Siemens shall pay the Invoice within 30 business days.  Products not covered by the Self Billing Agreement are detailed in Schedule 1, Part 2.

 

9.4                                 The Price is exclusive of any VAT and sales taxes, which shall be charged in addition at the applicable rate in force at the time of chargeable supply by the Supplier.

 

9.5                                 For Products set out in Schedule 1, Part 2 the Supplier shall deliver the Products to the address stated in the Purchase Order and in accordance with delivery terms DDP stated address (INCOTERMS 2000).  All other deliveries by the Supplier shall be offloaded from delivery transport and placed in the Internal Consignment Store and shall be in accordance with DDP Siemens Magnet Technology, Eynsham (INCOTERMS 2000).  Siemens shall afford to the Supplier’s delivery personnel all reasonable access co-operation and facilities (including use of forklift trucks and other relevant equipment) as and when required for such delivery.

 

9.6                                 The Supplier shall be entitled to interest upon any invoice which is not paid when due at that rate which is three percentage points above LIBOR from time to time certified by Barclays Bank PLC, compounding weekly.  For this purpose, if the KANBAN System is late in notifying removal of the relevant Product from the KANBAN pursuant to clause 6.5, the period of lateness in such notification may be added to any period of late payment.  The Supplier shall only be entitled to such interest to the extent that the Supplier notifies Siemens in writing of its’ claim for interest within 60 days of the due date of payment of the invoice.

 

9.7                                 Pricing assumes delivery will be made by regular business transport as agreed.  Where Siemens pre-agree expedited delivery methods that incur additional charges or costs such charges shall be covered by a separate Purchase Order.

 

9.8                                 For the Products covered by this agreement, the Supplier will provide full price breakdowns in the format agreed upon between the Parties.

 

10.                               TERMINATION

 

10.1                           Siemens may terminate this Agreement at any time by serving notice of 12 months.  The Supplier may terminate this Agreement at any time by serving notice of 12 months.

 

10.2                           Either Party may terminate this Agreement immediately by serving notice in writing upon the other, without prejudice to its other rights and remedies if the other Party:

 

10.2.1                  commits any Material Breach of its obligations hereunder and where such breach is capable of remedy fails within thirty (30) days of written notice to remedy the same; or

 

 

10.2.2                  has a receiver or administrator appointed of the whole or any substantial part of its business or assets, or if any order is made or a resolution is passed for the winding up of that Party (except where such winding up is for the purpose of a bona fide amalgamation or reconstruction).

 

11.                               CONSEQUENCES OF TERMINATION

 

11.1                           Termination or expiry of this Agreement shall not affect the accrued rights or liabilities of either Party nor shall it affect the coming into force of continuance in force of any provision of this Agreement, which is expressly or by implication intended to come into or to continue in force after such expiry or termination.

 

11.2                           In the event of termination or expiry of this Agreement, the Supplier and Siemens shall in accordance with the provisions of this Agreement, fulfil their respective obligations in relation to all orders placed by Siemens in accordance with the provisions of this Agreement prior to such termination or expiry.  In addition, the Supplier shall supply and Siemens shall purchase all Products which were included in the first five months of the most recent forecast provided by Siemens and whose manufacture had commenced, assuming these products fully comply with Siemens’ specifications, including products affected as per Clause 7 of this Agreement.

 

12.                               SUPPLIER WARRANTIES AND WIRE DEFECT PROCESS

 

12.1                           The Supplier warrants and agrees that:

 

12.1.1                  the Products meet and fulfil the Specification at the time of their delivery to the Site or to Siemens’ nominated agent;

 

12.1.2                  the Products shall be free from defects in design, workmanship and materials for a period of 12 months from the date of transfer of title and risk in the Products to Siemens, but not more than 15 months from their date of delivery to the Siemens facility;

 

12.1.3                  it will perform its obligations under this Agreement in accordance with Good Industry Practice (which shall for the purpose of this Clause 12.1.3 mean the exercise of such reasonable skill and care, diligence, prudence, efficiency foresight and timeliness as would be expected from a supplier of products the same as or similar to the Products) and in compliance with all applicable laws.

 

12.2                           All Products in breach of the warranty at Clause 12.1.2 shall be repaired or replaced by the Supplier within a period of time the Parties agreed to by both parties, in default of which Siemens, acting reasonably shall be entitled to repair or replace or procure the repair or replacement of such Products itself.  This shall only be done after all reasonable ways to correct the problem have been exhausted.  Under these circumstances the Supplier shall pay all costs and 

 

 

expenses incurred by Siemens in connections thereof, up to and not exceeding the value of the kit.

 

12.3                           In the event of Generic Failure, Siemens shall notify the Supplier immediately after having determined that the Products are defective.  Siemens shall be entitled to treat the entire batch within which the relevant Products were supplied to Siemens as defective.  If it is not feasible to reject the entire batch due to Production constraints, both parties shall endeavour to identify and agree upon remedial actions, including but not limited to: additional inspection and tests of the Products, alternative suppliers or repairs in order to minimise the impact on Siemens’ production requirements and to limit costs claimed by Siemens from the Supplier directly pertaining to the Product, up to and not exceeding the value of the Product for each individual magnet affected.  In recognition of the seriousness of a Generic Failure, Siemens shall be entitled to recover from the Supplier all properly incurred costs incurred by it as a result of a Generic Failure subject to the limitations of liability set forth in clause 13.

 

12.4                           The costs in this Clause 12 cover all parts, labour, materials, travel and any other costs and expenses incurred by the Supplier in connection with such warranties.

 

12.5                           Without prejudice to Clause 10.2.1, in the event of an Epidemic Failure, Siemens shall be entitled to treat the Products as defective in which event the provisions of Clause 12.2 shall apply.  In addition to 12.2, Siemens shall notify the Supplier immediately after having determined that the Products are defective.  In such an event, both parties shall endeavour to identify remedial actions, including but not limited to: additional inspection and tests of the Products, alternative suppliers or repairs in order to minimise the impact on Siemens’ Productions requirements and to limit costs claimed by Siemens from the Supplier directly pertaining to the Product, up to and not exceeding the value of the Product for each individual magnet affected.  Save as aforesaid all other costs shall be subject to the aggregate limitations of liability set forth in clause 13.

 

12.6                           The Supplier may give to Siemens notice that by reason of defective materials or production difficulties any Product will not be available for purchase until otherwise notified by the Supplier to Siemens provided that such notice must be given in good faith and followed, if requested by Siemens, with all reasonable information as to the nature of such defective materials or production difficulties, the likely effects on the Products and the likely duration of unavailability.  If such notice (and supporting information, if required) is given the Supplier shall have no obligation to supply the Products the subject of the notice and any Purchase Orders for the same shall be suspended until the relevant product again becomes available for supply, provided that Siemens may by notice to the Supplier cancel any Purchase Order which is so suspended.  If Siemens does not cancel the Purchase Order in question, the Supplier shall use all reasonable commercial endeavours to find an acceptable alternative source of materials and/or to remedy the production as soon as possible, shall consult with Siemens as to the steps to be taken and shall keep Siemens fully informed as to the steps being taken and the 

 

 

likely period of suspension of the Purchase Order.  For the avoidance of doubt, the Supplier shall have no right to rely on this Clause 12.6 by reason purely of excess demand for Products; without limiting the foregoing, the Supplier shall make available to Siemens such Products or part of Products as it is able to supply and shall not supply any Products or parts of Products to any third party until it has first satisfied any Purchase Order which has been suspended pursuant to this Clause.

 

12.7                           The following shall apply in any case where defective Products have been incorporated in a magnet by Siemens and that magnet needs to be reworked in order to identify and remove the defective Product:

 

12.7.1                  as set out below at sub-clause 12.7.2, the Supplier shall pay to Siemens the Rework costs reasonably incurred by Siemens in carrying out such Rework, such costs are equivalent to [**]% of Siemens cost for carrying out such Rework.

 

12.7.2                  the Supplier’s liability for the Rework costs under this clause 12.7.2 shall not exceed:

 

a)                                      in respect of [**] – the sum of [**];

 

b)                                     in the case of [**] – the sum of [**].

 

12.8                           Without prejudice to Clause 12.7 should Siemens identify a failure in any Products in the form of a report, Siemens shall inform the Supplier as soon as reasonably practicable and will provide the Supplier with details of the failure including the magnet, magnet type and failure level.  Siemens shall endeavour to isolate the failure to a specific coil and the Supplier and Siemens may agree to carry out a Rework .

 

12.9                           Both parties recognize that final wire qualification cannot be fully verified until such wire is wound and the magnet fully tested.  If within 12 months of receiving the Product into the Internal Consignment Store Siemens finds that a magnet wound with Products supplied by the Supplier does not meet expected performance requirements, the parties will apply the process contained in Schedule 8.

 

12.10                     The Supplier shall make payments due to Siemens or Siemens shall request a credit in an equivalent amount due to it within 14 days of receipt of Siemens reporting the results of each test to the Supplier in accordance with Schedule 8.

 

12.11                     In the event that any Product is to be returned to the Supplier in accordance with an agreed returns policy between the Parties, risk in such Product shall pass back to the Supplier once the Product has been signed for and accepted for delivery by any nominated logistics provider or carrier.  Risk in the Product shall re-pass to Siemens only after it has been returned to the Internal Consignment Store and subsequently removed from the Internal Consignment Store following its return to 

 

 

Site (in accordance with Clause 6.5).  Title will only pass to Siemens after execution of the payment (according Clause 6.6 and 9.2).

 

12.12                     Title and risk in any structure or materials upon or in which the Product or any wire is incorporated shall remain always with Siemens however risk in any Products whilst incorporated in any structure or materials or any structure or materials which are stored at the External Consignment Store shall remain with the Supplier until payment takes place in accordance with clause 12.12.

 

12.13                     Where Siemens rejects a Product due to a failure or defect caused to the Product by Siemens, Siemens shall be liable to pay an additional kitting cost to the Supplier which shall be calculated as follows:

 

[**]

 

12.14                     Save as expressly provided for in this Agreement, all other warranties and conditions, whether express or implied and whether by statute or common-law are hereby excluded to the extent permitted by law.

 

13.                               LIMITATION OF LIABILITY

 

13.1                           Neither Party excludes or limits liability in respect of:

 

13.1.1                  death or personal injury;

 

13.1.2                  fraud or fraudulent misrepresentation;

 

13.1.3                  breach of obligation implied by statute as to title.

 

13.2                           Without prejudice to Clause 13.1, the liability of either Party in respect of property damage, howsoever arising out of or in connection with this Agreement shall be limited to $1,500,000 in respect of all events and circumstances in the same calendar year and the liability of each Party in respect of all other loss or damage of any kind howsoever arising out of or in connection with this Agreement shall be limited to $1,000,000, in respect of all events and circumstances in the same calendar year.

 

13.3                           Without prejudice to Clause 13.1, in no event shall either Party be liable for loss of business, goodwill, anticipated savings, loss of profit, third party liability, time of management or other personnel and/or any indirect or consequential loss.

 

14.                               INTELLECTUAL PROPERTY RIGHTS

 

14.1                           The Supplier shall indemnify and hold Siemens harmless against any claim of infringement of the intellectual property rights (including but not limited to patents existing at time of agreement execution, registered design, design right, trade mark or copyright) of any third party by the use or sale of the Products if the Supplier knows or ought reasonably to know at the date of this Agreement that 

 

 

such use or sale would infringe the third party’s rights and against all costs, expenses, liabilities and damages which Siemens may incur in any action for such infringement or for which Siemens may become liable in any such action.  This indemnity shall not however apply to any infringement, which is due to the Supplier having followed a design furnished by Siemens, covering process or product, or manufacture, use or sale of any portion of the Products not manufactured by the Supplier.  In the event of a claim of infringement against Siemens, Siemens will give the Supplier prompt notice in writing thereof and Siemens shall provide the Supplier with all reasonable cooperation and assistance (provided that the Supplier pays Siemens cost and expenses incurred in the provision of such assistance) and will permit the Supplier, at the Supplier’s expense, to conduct any litigation that may ensue giving the Supplier complete control of the defence and settlement of any claims.

 

14.2                           All intellectual property rights in Products shall be retained exclusively by the Supplier and Siemens shall not acquire any rights in the same and all intellectual property rights in magnets or other products of Siemens shall be the absolute property of Siemens and the Supplier shall not acquire any rights in the same.  If the Parties collaborate upon any product or process developments, they shall first agree upon the rights which they are to have in intellectual property rights in those developments.

 

15.                               DELAY

 

The Supplier shall be deemed late when the Supplier fails to deliver the Product within the time period set-out in Schedule 1, after receiving the KANBAN request from Siemens.  In the event of the Supplier being late, the Supplier shall (without prejudice to Siemens other rights and remedies) pay Siemens based on the following rates with the limitations of liability set forth in clause 13, Siemens shall use its reasonable endeavors to procure such Products elsewhere including procuring the Products from other suppliers.

 

[**]

 

16.                               BUSINESS REVIEWS

 

16.1                           The Parties shall meet quarterly to discuss performance improvements, cost reductions, warranty issues, and new developments and the Supplier’s performance measured against the ‘KPI’s and such other matters Siemens may (acting reasonably) require.

 

16.2                           The time, date and venue of such meetings shall be agreed between the Parties (each acting reasonably) and Siemens shall produce an agenda not less than forty eight (48) hours prior to the relevant review meeting.

 

16.3                           Siemens shall continuously review and determine in its sole discretion (acting reasonably) whether the Supplier is Competitive.  In the event that Siemens determines that the Supplier is not Competitive by reason of consistent or material failure to meet KPI’s the Parties shall use reasonable endeavours to agree a plan 

 

 

of the steps the Supplier must take to remedy this, and, if the Supplier fails to adhere to such plan or the failure to meet the relevant KPI’s is not resolved by the Supplier within the time period agreed upon by both parties, the Parties acknowledge that this will constitute a Material Breach in accordance with Clause 10.2.1.  The Parties shall discuss Competitiveness at the meetings referred to in Clause 16.1.

 

16.4                           The proceedings of such meetings shall be minuted by Siemens who shall send a copy of such minutes to the Supplier for approval promptly following the relevant meeting.  Subject to such approval the minutes shall be an authoritative record of the matters discussed and agreed at the relevant meeting and the Parties acknowledge that they may in no way amend this Agreement.

 

17.                               CORPORATE RESPONSIBILITY

 

17.1                           The Supplier shall comply with the principles and requirements of the ‘Code of Conduct for Siemens Suppliers’ attached in Schedule 5 (hereinafter referred to as the ‘Code of Conduct’).

 

17.2                           If requested by Siemens, the Supplier shall not more than once a year either, at its option, provide Siemens with either (i) a written self-assessment in the form provided by Siemens, or (ii) a written report approved by Siemens describing the actions taken or to be taken by the Supplier to assure compliance with the Code of Conduct.

 

17.3                           Siemens and its authorised agents and representatives and/or a third party appointed by Siemens and reasonably acceptable to the Supplier, shall be entitled (but not obliged) to conduct, also at the Suppliers’ premises, inspections in order to verify the Suppliers’ compliance with the Code of Conduct.

 

Any inspection may only be conducted upon Siemens giving prior written notice, during normal business hours, in accordance with the applicable data protection law and shall neither unreasonably interfere with the Suppliers’ business activities nor breach any of the Suppliers’ confidentiality agreements with third parties.  The Supplier shall reasonably cooperate with any inspections conducted.  Each party shall bear its expenses in connection with such inspection.

 

17.4                           In addition to any other rights and remedies Siemens may have, in the event of either (i) the Supplier’s material or repeated failure to comply with the Code of Conduct or (ii) the Supplier’s denial of Siemens’ right of inspection as provided for in clause 17.3, after providing the Supplier with reasonable notice and a reasonable opportunity to remedy, Siemens may terminate this agreement and/or any purchase order issued hereunder without any liability whatsoever.

 

A material failure shall include, but is not limited to, incidents of child labor, corruption and bribery, and failure to comply with the Code of Conduct’s environmental protection requirements.  The notice and the opportunity to remedy provision shall not apply to breaches of the requirements and principles regarding 

 

 

child labor as set out in the Code of Conduct or willful failures to comply with the Code of Conduct’s environmental protection requirements.

 

 

18.                               QUALITY ASSURANCE

 

The provisions of Schedule 3 shall apply in respect of quality assurance.

 

19.                               ENVIRONMENTAL PROTECTION

 

19.1                           The Parties shall minimize environmental pollution to the extent that is technically possible and economically feasible and shall promote the use of quality-assured recycled materials in the production process.  The Parties shall endeavour to avoid hazards as well as other negative influences deriving from the Products and possibly affecting the environment.

 

19.2                           The Supplier represents that there are no substances as listed in Schedule 4 (Prohibited Substances), with the exception of metallic lead, are contained in or forming part of the Products.

 

19.3                           The Supplier shall at the request of Siemens complete, sign and hand over to Siemens the prohibited substances form appended to Schedule 4 in respect of the Products.

 

20.                              RIGHT TO AUDIT

 

The Supplier shall allow Siemens, upon reasonable notice and at a time to be agreed between the parties, to access and inspect the Supplier’s premises for the sole purpose of verifying the Supplier’s processes and ability to fulfill its obligations under this Agreement.  The Supplier shall make available such facilities and give such assistance, including the provision of copies or extracts of such records as Siemens may reasonably request in connection with the performance of such audit and shall afford the Siemens all reasonable access to all other information, reports, documents, records and data, whether in human or machine readable form, solely relevant to the performance of its obligations hereunder.

 

21.                               CONFIDENTIALITY

 

21.1                           All the information which the Parties have received in connection with this Agreement and which has been described as confidential shall be used by the Parties only for purposes of this Agreement and, just as if such information were the relevant Party’s own trade secrets, shall not be made available or disclosed to third parties.  In particular, all information regarding the design of Products or concerning any processes applied by the Supplier in the production of Products shall be confidential information of the Supplier and subject to the provisions of this Clause.  This obligation shall remain valid for a period of three years after this Agreement has expired.

 

 

21.2                           This obligation shall not apply to information which is or becomes generally known, which can be proved to have been worked out independently or rightfully acquired from third parties and shall not prohibit either Party making any disclosure which it is required to make by order of a court of competent jurisdiction or is obliged to make by law but any Party which considers itself to be so obliged to make a disclosure shall immediately inform the other Party, shall co-operate with that Party’s reasonable requests to prevent or minimise the disclosure and shall in any event to the maximum extent possible in compliance with the obligation shall make the disclosure in confidence and to the smallest extent permissible.

 

22.                               ASSETS

 

Siemens shall notify the Supplier from time to time of such Assets that are the property of Siemens and shall be used by the Supplier solely in connection with the proper performance of its obligations under this Agreement.  In the event of termination or expiry of this Agreement, the Supplier shall provide Siemens all reasonable access and assistance to enable Siemens to remove and retrieve such Assets.

 

23.                               FORCE MAJEURE

 

The Parties will not be in breach of its obligations or liable to the other for any delay or failure to perform any obligation hereunder to the extent that such delay or failure is caused by circumstances beyond its reasonable control including without limitation acts of God, acts or omissions of any government or government agency, compliance with the requirements, rules, regulations or orders of any governmental authority, fire, storm, flood, earthquake, accident, acts of public enemy, war, armed conflict, rebellion, insurrection, riot, sabotage, terrorist act, invasion, quarantine, restriction, strike or transportation embargoes provided that a strike or work stoppage by the workforce of the Parties shall not constitute an event of force majeure.

 

24.                               WAIVER

 

Failure by any Party at any time to require the performance of any provision of this Agreement shall not affect the right of such Party to require full performance thereof at any time thereafter and the waiver by any Party of any breach of any provision of this Agreement shall not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of any such provision or in any way prejudicing such Party’s right hereunder.

 

25.                               SEVERANCE

 

If any part of this Agreement is found to be unenforceable, invalid or unlawful under any enactment or rule of law the court shall have the power to strike out or override that part whether it be an entire Clause or Clauses or some part or parts thereof and enforce this Agreement as if the offending part or parts had not been included.

 

 

26.                               NOTICES

 

All notices which are required to be given hereunder shall be in writing and shall in respect of Siemens be sent to the Site and in respect of the Supplier to the address set out in this Agreement or such other address as the Parties may designate for notice given in accordance with the provisions of this Clause.  Any such notice may be delivered personally, by email, or by first class pre-paid letter or facsimile transmission and shall be deemed to have been served if by hand when delivered, if by first class post 48 hours after posting, and if by email or facsimile, on the next working day after transmission.

 

27.                               ENTIRE AGREEMENT

 

The entire agreement between the Parties with respect to the subject matter herein is contained in this Agreement and shall be governed by the terms and conditions set forth in this Agreement.  Other than as expressly stated otherwise in this Agreement, any representations made prior to the date of this Agreement shall, save in respect of fraudulent misrepresentation, be expressly excluded.

 

28.                              ASSIGNMENT AND RELATIONSHIP

 

28.1                           This Agreement shall be binding on the Parties, their successors, or assigns.

 

28.2                           This Agreement shall not operate so as to create a partnership or joint venture of any kind between the Parties or be construed so as to constitute either Party as an agent of the other.

 

28.3                           Either party may, without the consent of the other party, assign the benefit of all or any of the other party’s obligations, or any benefit it enjoys under this Agreement to its parent or holding company or a wholly owned subsidiary of its parent or holding company.  Except as aforesaid neither party may assign the benefit of all or any of its obligations without the prior written consent of the other Party.

 

29.                               GOVERNING LAW

 

The provisions of English Law shall govern this Agreement and the Parties submit to the exclusive jurisdiction of the English courts.

 

30.                               VARIATION

 

This Agreement may not be amended varied supplemented or otherwise modified except by an instrument in writing signed by both Parties.

 

31.                               SURVIVAL OF OBLIGATIONS

 

The provisions of the following Clauses shall survive termination or expiry of this Agreement, Clauses: 1, 11, 12, 13, 14, 21, 22, 23, 24, 25, 26, 28, 29, 30 and 31.

 

 

32.                               DISPUTE RESOLUTION

 

In any circumstances in this Agreement where there is a dispute the Parties shall, in the event of a continuing dispute, escalate the matter to their respective managing directors to resolve.  In the event that no resolution is achieved, either Party may refer the dispute to an independent assessor (jointly agreed by the Parties) to decide the dispute.  The parties will be jointly responsible for the costs of the independent assessor unless otherwise determined by the independent assessor.  Any decision taken by the independent assessor shall be final.

 

For and on behalf of BRUKER EAS

 

	
Signed:   
    	
/s/   Burkhard Prause
    	
 
    	
Signed:   
    	
/s/   Reinhard Dietrich
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:   
    	
25.09.09
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:   
    	
Reinhard   Dietrich
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:   
    	
Director   Sales
    

 

For and on behalf of Siemens Magnet Technology Ltd:

 

	
Signed:   
    	
/s/   Dietmar Lehne
    	
 
    	
Signed:   
    	
/s/   Markus Kolitch
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:   
    	
09/07/09
    	
 
    	
Date:   
    	
06.07.09
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:   
    	
Dietmar   Lehne
    	
 
    	
Name:   
    	
Markus   Kolitch
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:   
    	
Managing   Director
    	
 
    	
Title:   
    	
Finance   Director
    

 

	
Signed:   
    	
/s/   Michel Atallah
    	
 
    
	
 
    	
 
    	
 
    
	
Date:   
    	
15/6/09
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   
    	
Michel   Atallah
    	
 
    
	
 
    	
 
    	
 
    
	
Title:   
    	
Logistics   Director
    	
 
    

 

 

SCHEDULE 1

 

PRODUCTS

 

PART 1

 

SMT KITS 2008/2009

 

	
KIT
    	
 
    	
Part SAP
    	
 
    	
mat-no.
    	
 
    	
length
    
	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
AK
    	
[**]
    	
 
    	
10109140
    	
 
    	
96732625
    	
 
    	
[**]
    
	
AM
    	
[**]
    	
 
    	
10127123
    	
 
    	
96732624
    	
 
    	
[**]
    
	
AS
    	
[**]
    	
 
    	
10111513
    	
 
    	
96732624
    	
 
    	
[**]
    
	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
V
    	
[**]
    	
 
    	
10108964
    	
 
    	
96732624
    	
 
    	
[**]
    
	
W
    	
[**]
    	
 
    	
10108893
    	
 
    	
96732624
    	
 
    	
[**]
    
	
XL
    	
[**]
    	
 
    	
10109134
    	
 
    	
96732627
    	
 
    	
[**]
    
	
YL
    	
[**]
    	
 
    	
10109131
    	
 
    	
96732626
    	
 
    	
[**]
    
	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
AA
    	
[**]
    	
 
    	
10109145
    	
 
    	
96732623
    	
 
    	
[**]
    
	
AB
    	
[**]
    	
 
    	
10108925
    	
 
    	
96732623
    	
 
    	
[**]
    
	
AC
    	
[**]
    	
 
    	
10108924
    	
 
    	
96732623
    	
 
    	
[**]
    
	
AD
    	
[**]
    	
 
    	
10109147
    	
 
    	
96732625
    	
 
    	
[**]
    
	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
AR
    	
[**]
    	
 
    	
10109152
    	
 
    	
96732625
    	
 
    	
[**]
    
	
AV
    	
[**]
    	
 
    	
10109144
    	
 
    	
96732624
    	
 
    	
[**]
    
	
AW
    	
[**]
    	
 
    	
10127638
    	
 
    	
96732881
    	
 
    	
[**]
    
	
AWL
    	
[**]
    	
 
    	
10109141
    	
 
    	
96732626
    	
 
    	
[**]
    
	
AX
    	
[**]
    	
 
    	
10109143
    	
 
    	
96732624
    	
 
    	
[**]
    
	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
AE
    	
[**]
    	
 
    	
10108989
    	
 
    	
96732620
    	
 
    	
[**]
    
	
AFL
    	
[**]
    	
 
    	
10108990
    	
 
    	
96732627
    	
 
    	
[**]
    
	
AG
    	
[**]
    	
 
    	
10108991
    	
 
    	
96732621
    	
 
    	
[**]
    
	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PAL
    	
[**]
    	
 
    	
10118311
    	
 
    	
96732626
    	
 
    	
[**]
    
	
PB
    	
[**]
    	
 
    	
10127639
    	
 
    	
96732881
    	
 
    	
[**]
    
	
PBL
    	
[**]
    	
 
    	
10118308
    	
 
    	
96732626
    	
 
    	
[**]
    
	
PCL
    	
[**]
    	
 
    	
10118309
    	
 
    	
96732627
    	
 
    	
[**]
    
	
PDL
    	
[**]
    	
 
    	
10126842
    	
 
    	
96732620
    	
 
    	
[**]
    

 

Product lead time for Products sighted above is 16 weeks (save for [**] related Products which shall have a lead time of 21 weeks)

 

 

SCHEDULE 2

 

[**]

 

 

SCHEDULE 3

 

QUALITY ASSURANCE

 

1.1           Requirements placed on the Supplier’s quality management system

 

The Supplier shall maintain a quality management system (hereinafter referred to as the “QM System”) that meets the following requirements:

 

	
Standard:
    	
 
    	
Certifying   office:
    
	
ISO   9000 2000
    	
 
    	
Optional
    

 

The Supplier will inform Siemens without delay of any amendment, interruption or revocation of the stated certifications.

 

1.2           Obligation to keep records and archiving

 

The Supplier shall prepare documentation that describes both the development (EHR = Engineering History Record) and the production (DMR = Device Master Record, e.g.  drawings, inspection plans, bills of materials etc.) of products.  Changes of products and processes as part of the product upgrade service are described in the EHR and DMR documents and are also integral components of these documents.

 

All EHR and DMR documents are to be archived following creation and kept for at least 5 years following discontinuation of the serial production and delivery.

 

The Supplier will document the manufacture of the individual products (DHR = Device History Record, e.g.  work progress documentation, test records, test certificates, etc.).  Such documentation contains proof, in relation to the serial or batch numbers, of the procurement and manufacturing/test steps for each manufactured product, including the test results in the test certificates.

 

All DHR documents are also to be archived and kept for at least 5 years following delivery of the individual products.

 

EHR, DMR and DHR documents are to be held available in a legible form during the archiving period and, if required, made available to Siemens free of charge within a maximum period of 3 workdays.

 

 

1.3         Verifying the QM System

 

Siemens shall have the right to verify the adherence to the agreed quality assurance measures, and the right to inspect the existing documentation and to participate in quality checks carried out by the Supplier.  The checks may be carried out by way of quality audits (e.g.  audits involving the systems, products or processes) and via inspections.

 

1.4         Additional QM System requirements

 

1.4.1      Quality management for new products

 

New products may only contain components drawn from used products if Siemens has expressly approved of such action.

 

The Supplier undertakes to comply with all statutory provisions and guidelines.  If adherence to technical regulations and norms is agreed upon for products or components of such products, such as CE, PED specifications, the Supplier shall provide proof of this as part of the DHR documents.  Its subcontractors and sub-suppliers will provide such proof in relation to the serial or batch numbers on the basis of suitable controls of their own or by way of appropriate confirmation.

 

The Supplier is responsible for the overall condition and the entire functional scope of the delivered products, including the condition and functioning of the components that it procures from its subcontractors and sub-suppliers.

 

The Supplier shall ensure that the manufacturing processes are run in accordance with the Supplier’s valid procedural instructions under controlled conditions.  This means, among other things, that suitable manufacturing and test devices are used, relevant process parameters are documented and that a QM control system geared towards such operations ensures that these processes are run accordingly.

 

To provide proof that the finished product meets the stipulated requirements, the Supplier shall ensure that the products it manufactures will undergo appropriate controls prior to, during or in the final manufacturing phase and prior to delivery to Siemens.  The tests must be carried out in accordance with any explicit agreement thereto but in every case in accordance with the Supplier’s procedural instructions valid at time of testing.  The Supplier shall document the implementation of the controls in accordance with its QM System, e.  g.  by way of a control sticker or a control stamp on the delivered products and on the accompanying packaging.

 

The Supplier will ensure that no products are delivered that do not fully meet the stipulated requirements.

 

In the case of products that contain deviations and whose acceptability must be clarified, the Supplier will forward an appropriate written concession application to Siemens.  The following details are to be included in such an application:

 

·                                          Type of deviation

 

·                                          Frequency of deviation

 

 

·                                          Cause of deviation

 

·                                          Corrective and preventive measures

 

·                                          Impact on reliability of the component

 

·                                          Safety

 

·                                          Customer interfaces

 

·                                          Operational performance

 

·                                          Specification & technical documentation

 

·                  Risk assessment

 

·                  Details of validation

 

The respective products are to be labelled so that they can be clearly identified.  Products that contain deviations may only be delivered following written approval by Siemens.

 

Proof of the manufacturing and tests is to be provided, in relation to the serial or batch numbers, in the respective DHR documentation.

 

1.4.2            Regulatory Data Requirements

 

1.4.2.1         General

 

It is a requirement of Siemens that all Assemblies and Parts manufactured by the Supplier are in compliance with the regulatory requirements defined by the Standards, Codes and EC Directives identified by Siemens Magnet Technology.

 

1.4.2.2         Delivery Regulatory Data

 

The current detail and format of documentation supplied to Siemens in support of both the regulatory requirements and Siemens Quality Regulations must continue unchanged unless a new agreement is reached between the parties.

 

The data package supplied for each assembly should be delivered to Siemens Magnet Technology within 5 working days of delivery of the assembly in question.

 

1.4.2.3         Records and Archiving

 

The regulatory data that is held by the Supplier shall be stored and controlled by the Supplier quality department for a minimum of 3 years and until disposal is agreed by Siemens Magnet Technology and be accessible within one day of any.

 

 

The current detail and format of data retained by the Supplier in support of both the regulatory requirements and Siemens Magnet Technology Quality Regulations must continue unchanged unless a new agreement is reached between the parties.

 

1.4.2.4         Quality management in the case of repairs of used products

 

In the case of repairs of used products [(returned goods from the field following startup at the premises of Purchaser’s final customer)], the Supplier will implement the same quality management as in the case of manufacturing new products, as far as this is possible.

 

Repaired products must conform with the same condition and functional scope as new products.  They must be labelled as repaired products.

 

1.4.2.5         Storage, packaging and transport

 

Following the final inspection the Supplier will ensure that sufficient protection is given for storage [in its own division], in particular against damage and environmental influences.

 

As far as possible, the environmental acceptability of packaging [and transportation] of newly produced products by way of coordinated forwarding concepts with multiple and/or shuttle packaging, the reduction of the packaging volume and use of environmentally friendly packaging materials as well as the costs of packaging and disposal are to be optimized.

 

1.5           Product labelling

 

The following identification characteristics are to be attached to the products and packaging:

 

	
Identification characteristics
    	
 
    	
Product
    	
 
    	
Packaging
    	
 
    	
Barcode
    	
 
    
	
Name of product
    	
 
    	
optional
    	
 
    	
optional
    	
 
    	
no
    	
 
    
	
Siemens Med part number of product
    	
 
    	
yes
    	
 
    	
yes
    	
 
    	
yes
    	
 
    
	
Product Serial or batch number
    	
 
    	
yes
    	
 
    	
yes
    	
 
    	
yes
    	
 
    
	
Product revision status
    	
 
    	
yes
    	
 
    	
yes
    	
 
    	
yes
    	
 
    
	
Approval markings, where-available
    	
 
    	
yes
    	
 
    	
yes
    	
 
    	
no
    	
 
    
	
Supplier part and type number
    	
 
    	
optional
    	
 
    	
optional
    	
 
    	
optional
    	
 
    
	
Quantity of products in packaging unit
    	
 
    	
n.a.
    	
 
    	
yes
    	
 
    	
yes
    	
 
    

 

The machine-readable identification characteristics (bar codes) are to be drawn up in accordance with EN 800 as Code 39.  The layout and further details are described in the enclosed Quality Guideline Med 1 Al “Identification of products/requirements placed on suppliers”.  Requirements that extend beyond this are, where applicable, to be specified in the respective product descriptions.

 

 

1.6         Corrective and preventive measures

 

To determine weak spots the Supplier will maintain a fault analysis system for faulty products and will derive the necessary corrective and preventive measures (CAPA = Corrective and Preventive Action) from this.  Faulty products are products that have not only failed the Supplier’s tests prior to delivery to Siemens, but also products that have been returned by Siemens to the Supplier as being faulty.

 

Faulty products are to undergo a fault analysis.  This means, in particular, determining weak spots, specifying the necessary corrective measures and verifying their effectiveness.

 

The data from the fault analysis system will be treated as DMR documents.

 

1.7         Complaints

 

If returned goods are labelled with the following addition, “Goods returned for the investigation of a complaint” (so-called CC parts = Customer Complaint parts), these parts are to be analysed within 2 weeks of receipt, unless agreed otherwise by Siemens and the Supplier and an individual report is to be drawn up and forwarded to Siemens’ responsible office.

 

The respective parts may be integrated in the normal repair process only following approval by Purchaser’s responsible office.

 

In exceptional cases Siemens will be under obligation to store these parts, without changes, for 10 years.  These parts must be returned to Siemens following the fault analysis.  The necessary agreements are to be made in a respective case between Siemens’s responsible office and the Supplier.

 

1.8         Processing product changes

 

Product changes are all changes that may have an effect on function; design; measurements; interfaces; transport and storage capabilities; handling; capabilities regarding processing, repairs or maintenance; production processes; recycling or the disposal of products.

 

The Supplier will document all product changes in accordance with its QM System.

 

1.9         Quality assurance officer

 

Quality assurance representative / quality management officer at the Supplier’s premises:

 

	
Name:
    	
 
    	
Gerhard   Kalbitz
    
	
 
    	
 
    	
 
    
	
Dept.:
    	
 
    	
Quality
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
6181-4384-4135
    
	
 
    	
 
    	
 
    
	
Fax:
    	
 
    	
6181-4384-4480
    
	
 
    	
 
    	
 
    
	
E-mail:
    	
 
    	
Gerhard.kalbitz@advancedsupercon.com
    

 

 

Quality assurance representative / quality management officer at Siemens’ premises:

 

	
Name:
    	
 
    	
Shoune   Kent
    
	
 
    	
 
    	
 
    
	
Dept.:
    	
 
    	
QA
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
++44   (0) 1865 850283
    
	
 
    	
 
    	
 
    
	
Fax:
    	
 
    	
++44   (0) 1865 850189
    
	
 
    	
 
    	
 
    
	
E-mail:
    	
 
    	
shoune.kent@siemens.com
    
	
 
    	
 
    	
 
    

 

1.10       Exchange of quality-relevant information via e-mail

 

For the exchange of quality-relevant information between the partners via e-mail an appropriate software for the digital signature and encryption shall be used.  After this agreement comes into force, the Supplier and Siemens shall mutually determine the software to be used (with the current encryption standard PGP or S/MIME) and exchange the necessary public keys.

 

 

SCHEDULE 4

 

PROHIBITED SUBSTANCES

 

List of prohibited hazardous substances

 

List of prohibited hazardous substances

Excerpt of bans or restrictions on the distribution of hazardous substances, valid in the EU, in Switzerland, and some other countries.

Status: May 2002

 

	
2 Substance
    	
 
    	
CAS no.
    	
 
    	
Application
   affected
    	
 
    	
Limit value
   in wt. % (1)
    	
 
    	
Exceptions
    	
 
    	
1.1.1.1.1 Legal
   regulations (2)
    
	
Aliphatic   CHSs
    	
 
    	
see   below (3)
    	
 
    	
General   prohibition
    	
 
    	
0,1   (total)
    	
 
    	
yes
    	
 
    	
DE   ChemVerbots V

EU   76/769/EWG
    
	
1,1,1   – Trichloroethane

Tetrachloromethane
    	
 
    	
71-55-6

56-23-5
    	
 
    	
General   prohibition
    	
 
    	
0
    	
 
    	
 
    	
 
    	
CH   StoV Anh. 3,4

        StoV Anh. 4,14
    
	
Asbestos
    	
 
    	
1332-21-4

see   below (4)
    	
 
    	
General   prohibition
    	
 
    	
0,1   (total)
    	
 
    	
yes
    	
 
    	
DE   ChemVerbotsV

EU   76/769/EWG
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 3.3
    
	
Lead
    	
 
    	
7439-92-1
    	
 
    	
Permanently   installed batteries (7)
    	
 
    	
0,4
    	
 
    	
yes
    	
 
    	
DE   BattV

EU   91/157/EWG
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0,1
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 4.10
    
	
Cadmium   and cadmium compounds
    	
 
    	
7440-43-9
    	
 
    	
Pigments   in plastics Stabilized vinyl chloride polymers and copolymers (e.g. PVC)

Metal   surface coating
    	
 
    	
0,01

0,01

 

0
    	
 
    	
yes

yes

 

yes
    	
 
    	
DE   ChemVerbotsV

EU   76/769/EWG

CH   StoV Anh. 4.11 (in polymers) StoV Anh.   4.12 (corrosion protection)
    
	
 
    	
 
    	
 
    	
 
    	
Permanently   installed batteries (7)
    	
 
    	
0,025
    	
 
    	
yes
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Zinc-carbon   batteries
    	
 
    	
0,015
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Zinc   layers
    	
 
    	
0,025
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 4.12
    
	
Polychlorinated   dioxins and furans

Polybrominated   dioxins and furans
    	
 
    	
see   below (5)
    	
 
    	
General   prohibition
    	
 
    	
Group   limit values 0,000 000 5
    	
 
    	
yes

 

yes
    	
 
    	
DE   ChemVerbots V
    
	
CFCs   and halons
    	
 
    	
see   below (4)
    	
 
    	
Aerosols

Coolants

Foam   plastics

Cleaning   agents and solvents
    	
 
    	
1,0

1,0

0

1,0
    	
 
    	
yes

yes

yes

yes
    	
 
    	
DE   FCKW  -  Halon-VerbotsV

EU   2037/2000

CH   StoV Anh. 3.4

        StoV Anh. 4.9

        StoV Anh. 4.14-15
    

 

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
US   CAA (42 USC 7671 et seq.)
    
	
FCs   including C3

HCFCs   including C3

HBrFCs   including C3

Methyl   bromide
    	
 
    	
74-83-9
    	
 
    	
General   Prohibition
    	
 
    	
0
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 3.4

        StoV Anh. 4.9

        StoV Anh. 4.14-15
    
	
Formaldehyde
    	
 
    	
50-00-0
    	
 
    	
Wooden   materials and furniture
    	
 
    	
0,1   ml/m3

(special   testing procedure)
    	
 
    	
yes
    	
 
    	
DE   ChemVerbotsV

AT   BGBI. 194/1990
    

 

List of prohibited hazardous substances (continued)

 

	
3 Substance
    	
 
    	
CAS no.
    	
 
    	
Application
   affected
    	
 
    	
Limit value
   in wt. % (1)
    	
 
    	
Exceptions
    	
 
    	
1.1.1.1.2 Legal
   regulations (2)
    
	
Halogenated   aromatic compounds
    	
 
    	
 
    	
 
    	
Capacitors   and transformers
    	
 
    	
0,05/0,005   (mono-/poly-halogenated)
    	
 
    	
 
    	
 
    	
CH   StoV Anh. 4.8
    
	
Pentachlorophenol   (PCP)

Pentachlorophenol,   sodium salt

Other   PCP salts and compounds
    	
 
    	
87-86-5

 

131-52-2
    	
 
    	
General   prohibition
    	
 
    	
0,000   5 (total)
    	
 
    	
yes
    	
 
    	
DE   ChemVerbotsV

EU   76/769/EWG
    
	
Polychlorinated   hiphenyls (PCBs)

Polychlorinated   terphenyls (PCTs)

Monomethyltetrachlorodiphe   nylmethane (Ugilec 141)

Monomethyldichlorodiphenyl   methane (Ugilec 121 or 21)

Monomethyldibromodiphenyl   methan (DBBT)
    	
 
    	
1336-36-3

 

61788-33-8

 

76253-60-6

 

 

 

99688-47-8
    	
 
    	
General   prohibition
    	
 
    	
0,000   5 (total)

 

0
    	
 
    	
yes
    	
 
    	
DE   ChemVerbotsV

EU   76/769/EWG

CH   StoV Anh.3.1
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Polychlorinated   biphenyls (PCBs)
    	
 
    	
1336-36-3
    	
 
    	
Not   completely packaged
    	
 
    	
0,05
    	
 
    	
yes
    	
 
    	
US   TSCA (15 USC 2605)

        + 40 CFR 761
    
	
Halogenated   biphenyls, terphenyls, naphtalenes
    	
 
    	
 
    	
 
    	
General   prohibition
    	
 
    	
0
    	
 
    	
 
    	
 
    	
 
    
	
Mercury   and mercury compounds
    	
 
    	
7439-97-6
    	
 
    	
Batteries
    	
 
    	
0,000   5
    	
 
    	
yes
    	
 
    	
DE   BattV

EU   98/101/EG
    
	
 
    	
 
    	
 
    	
 
    	
Button   cells and batteries 
    	
 
    	
2
    	
 
    	
 
    	
 
    	
DE   BattV

EU   98/101/EG
    

 

 

	
 
    	
 
    	
 
    	
 
    	
composed   of button cells
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Alkaline-manganese   batteries
    	
 
    	
0,025
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 4.10
    
	
 
    	
 
    	
 
    	
 
    	
Carbon-zinc   batteries
    	
 
    	
0,01
    	
 
    	
 
    	
 
    	
CH   StoV Anh. 4.10
    
	
 
    	
 
    	
 
    	
 
    	
General   prohibition
    	
 
    	
0
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 3.2

NL   Decree 9 September

SE   1998

        SFS 1998:944
    
	
Mercury   and cadmium
    	
 
    	
7439-97-6

7440-43-9
    	
 
    	
Permanently   installed batteries (7)
    	
 
    	
0,001

(total)
    	
 
    	
yes
    	
 
    	
CH   StoV Anh. 4.10
    
	
Heavy   metals (lead, cadmium, hexavalent, chromium, mercury)
    	
 
    	
 
    	
 
    	
Substances   and preparations for the private and consumer
    	
 
    	
0,01   (total)
    	
 
    	
 
    	
 
    	
DE   VerpackV

EU   94/62/EG
    
	
Tar   oils
    	
 
    	
8001-58-9
    	
 
    	
Wood   and wooden materials
    	
 
    	
0
    	
 
    	
yes
    	
 
    	
DE   ChemVerbotsV

EU   76/769/EWG
    

 

List of prohibited hazardous substances (continued)

 

	
4 Substance
    	
 
    	
CAS no.
    	
 
    	
Application
   affected
    	
 
    	
Limit value 
   in wt. % (1)
    	
 
    	
Exceptions
    	
 
    	
4.1.1.1.1 Legal
   regulations (2)
    
	
+Carcinogenic, mutagenic,   and reproduction toxic substances (categories 1 and 2)
    	
 
    	
 
    	
 
    	
Substances   and preparations for the private end consumer
    	
 
    	
Depends   on the substance
    	
 
    	
yes
    	
 
    	
DE   ChemVerbotsV

EU   76/769/EWG
    
	
The regulations concerning   the following residual monomers only apply to plastic parts intended for   contact with foodstuffs.  They do not   apply to the majority of electrotechnical products!
    
	
Acrylonitrile   as residual monomer
    	
 
    	
107-13-1
    	
 
    	
ABS,   SAN and other copolymers in contact with foodstuffs
    	
 
    	
0,000   002
   (SML)
    	
 
    	
 
    	
 
    	
DE   BedarfsgegV
   EU   90/128/EWG
    
	
Butadiene   as residual monomer
    	
 
    	
106-99-0
    	
 
    	
ABS   in contact with foodstuffs
    	
 
    	
0,000   002
   (SML)
    	
 
    	
 
    	
 
    	
DE   BedarfsgegV
   EU   90/128/EWG
    
	
Vinyl   chloride as residual monomer
    	
 
    	
75-01-04
    	
 
    	
PVC   and copolymers in contact with foodstuffs
    	
 
    	
0,000   1 0,000 001
   (SML)
    	
 
    	
yes
    	
 
    	
DE   BedarfsgegV
   EU   90/128/EWG
    

 

 

Notes regarding the List of prohibited hazardous substances

 

1)                                      The value 0 means that no limit is stated in the legislation.  In this case, the legally specified chemical concentration limits are to be observed.

SML = Specific Migration Limit (maximum permissible concentration of the diffused substance in foodstuff)

 

2)                                      Country codes according to ISO 3166

 

BattV = Battery ordinance

BedarfsgegV = Commodity goods ordinance

ChemVerbotsV = Chemical prohibition ordinance

CAA = Clean Air Act

FCKW-Halon-VerbotsV = CFC and halons prohibition ordinance

SFS = Svensk forfattningssamling (Swedish Code of Statutes)

StoV ---- Swiss ordinance regarding environmentally hazardous substances

TSCA = Toxic Substances ControlAct

VerpackV = Packaging ordinance

 

	
3)
    	
 
    	
Alphatic CHSs
    	
 
    	
CAS no.
    	
 
    	
6)
    	
 
    	
CFCs/halons
    	
 
    	
CAS no.
    
	
 
    	
 
    	
Tetrachloromethane
    	
 
    	
56-23-5
    	
 
    	
 
    	
 
    	
Trichlorofluoromethane (R11)
    	
 
    	
75-69-4
    
	
 
    	
 
    	
1,1,2,2-Tetrachrloromethane
    	
 
    	
79-34-5
    	
 
    	
 
    	
 
    	
Dichlorodifluoromethane (R12)
    	
 
    	
75-71-8
    
	
 
    	
 
    	
1,1,1,2-Tetrachloroethane
    	
 
    	
630-20-6
    	
 
    	
 
    	
 
    	
Chlorotrifluoromethane (R13)
    	
 
    	
75-72-9
    
	
 
    	
 
    	
Pentachloroethane
    	
 
    	
76-01-7
    	
 
    	
 
    	
 
    	
Tetrachlorodifluoroethane (R112)
    	
 
    	
76-11-9
    
	
 
    	
 
    	
Trichloromethane (chloroform)
    	
 
    	
67-66-3
    	
 
    	
 
    	
 
    	
Trichlorotrifluoroethane (R113)
    	
 
    	
76-13-1
    
	
 
    	
 
    	
1,1,2-Trichloroethane
    	
 
    	
79-00-5
    	
 
    	
 
    	
 
    	
Dichlorotetrafluoroethane (R114)
    	
 
    	
76-14-2
    
	
 
    	
 
    	
1,1-Dichloroethylene
    	
 
    	
75-35-4
    	
 
    	
 
    	
 
    	
Chloropentafluoroethane (R115)
    	
 
    	
76-12-0
    
	
 
    	
 
    	
1,1,1-Trichloroethane
    	
 
    	
71-55-6
    	
 
    	
 
    	
 
    	
Bromochlorodifluoromethane (halon 1211)
    	
 
    	
353-59-3
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Bromotrifuoromethane (halon 1301)
    	
 
    	
75-63-8
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4)
    	
 
    	
Asbestos
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Dibromotetrafluoroethane (halon 2402)
    	
 
    	
124-73-2
    
	
 
    	
 
    	
Aktinolite
    	
 
    	
77536-66-4
    	
 
    	
 
    	
 
    	
Tetrachloromethane
    	
 
    	
56-23-5
    
	
 
    	
 
    	
Amosite
    	
 
    	
12172-73-5
    	
 
    	
 
    	
 
    	
1,1,1-Trichloroethane
    	
 
    	
71-55-6
    
	
 
    	
 
    	
Anthophyllite
    	
 
    	
77536-67-5
    	
 
    	
 
    	
 
    	
Chlrorfluromethane (R22)
    	
 
    	
75-45-6
    
	
 
    	
 
    	
Chrysotile
    	
 
    	
12001-29-5
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Crocidolite
    	
 
    	
12001-28-4
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Temolite
    	
 
    	
77536-68-6
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5)
    	
 
    	
Halogenated dioxins and furans
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2,3,7,8-Tetra-CDD
    	
 
    	
1746-01-6
    	
 
    	
 
    	
 
    	
1,2,3,4,6,7,8,9-Octa-CDD
    	
 
    	
3268-87-9
    
	
 
    	
 
    	
1,2,3,7,8-Penta-CDD
    	
 
    	
40321-76-4
    	
 
    	
 
    	
 
    	
1,2,3,4,6,7,8-Hepta-CDF
    	
 
    	
67562-39-4
    
	
 
    	
 
    	
2,3,7,8-Tetra-CDF
    	
 
    	
51207-31-9
    	
 
    	
 
    	
 
    	
1,2,3,4,7,8,9-Hepta-CDF
    	
 
    	
55673-89-7
    
	
 
    	
 
    	
2,3,4,7,8-Penta-CDF
    	
 
    	
57117-31-4
    	
 
    	
 
    	
 
    	
1,2,3,4,6,7,8,9-Octa-CDF
    	
 
    	
39001-02-0
    

 

 

	
 
    	
 
    	
1,2,3,4,7,8-Hexa-CDD
    	
 
    	
39227-28-6
    	
 
    	
 
    	
 
    	
2,3,7,8-Tetra-BDD
    	
 
    	
50585-81-6
    
	
 
    	
 
    	
1,2,3,7,8,9-Hexa-CDD
    	
 
    	
19408-74-3
    	
 
    	
 
    	
 
    	
1,2,3,7,8-Penta-BDD
    	
 
    	
109333-34-8
    
	
 
    	
 
    	
1,2,3,6,7,8-Hexa-CDD
    	
 
    	
57653-85-7
    	
 
    	
 
    	
 
    	
2,3,7,8-Tetra-BDF
    	
 
    	
67733-57-7
    
	
 
    	
 
    	
1,2,3,7,8-Penta-CDF
    	
 
    	
57117-41-6
    	
 
    	
 
    	
 
    	
2,3,4,7,8-Penta-BDF
    	
 
    	
131166-92-2
    
	
 
    	
 
    	
1,2,3,4,7,8-Hexa-CDF
    	
 
    	
70648-26-9
    	
 
    	
 
    	
 
    	
1,2,3,4,7,8-Hexa-BDD
    	
 
    	
110999-44-5
    
	
 
    	
 
    	
1,2,3,7,8,9-Hexa-CDF
    	
 
    	
72918-21-9
    	
 
    	
 
    	
 
    	
1,2,3,7,8,9-Hexa-BDD
    	
 
    	
110999-46-7
    
	
 
    	
 
    	
1,2,3,6,7,8-Hexa-CDF
    	
 
    	
57117-44-9
    	
 
    	
 
    	
 
    	
1,2,3,6,7,8-Hexa-BDD
    	
 
    	
110999-45-6
    
	
 
    	
 
    	
2,3,4,6,7,8-Hexa-CDF
    	
 
    	
60851-34-5
    	
 
    	
 
    	
 
    	
1,2,3,7,8-Penta-BDF
    	
 
    	
109333-34-8
    
	
 
    	
 
    	
1,2,3,4,6,7,8-Hepta-CDD
    	
 
    	
35822-46-9
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

6)                                      Permanently installed batteries are those which cannot be removed from appliances without effort.  They are either soldered or welded to the contacts, or permanently connected in some other manner.

 

The Supplier recognises their obligations as a manufacturer or supplier to operate our business in a safe and environmentally responsible way.  It is our aim to comply with all applicable legal, regulatory and corporate requirements and, if it is deemed appropriate, adopt more stringent standards for the promotion of good safe working practices and the protection of the environment and the communities with whom we cooperate.

 

The Supplier shall ensure that compliance with all relevant Environment, Health & Safety legislation, taking into account any appropriate exemptions, is achieved based on competent design and manufacture and on assurances from suppliers of components, sub assemblies and other items which form an integral part of the products supplied.

 

In particular, but not exclusively, we shall ensure, where appropriate, compliance with the following;

 

The European Union’s ‘Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment’ Directive (2002/95/EC) which took effect on July 1, 2006 prohibits the sale of electronic equipment containing certain hazardous substances such as lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyls (“PBB”) and polybrominated diphenylethers (“PBDE”) in the European Union.

 

The WEEE (Waste from Electrical and Electronic Equipment) Directive aims to encourage producers of electrical and electronic equipment to design in an environmentally friendly way and to maximize the potential for recyclability or re-use of the product.  The initial intent of the directive was to address the issue raised by the huge volume of consumer products which were discarded after a very short period of use due

 

 

to fashion or technology changes, but is now deemed to apply to all producers of electrical and electronic equipment (with certain exemptions as defined in the text).

 

The European Union’s Registration, Evaluation and Authorisation of Chemicals (REACH) regulations entered force throughout the European Union on 1 June 2007.  They represent the most major upheaval in the regulatory environment for chemicals for over 25 years.  REACH applies not only to chemical manufacturers and importers; it also has major implications for the electrical products sector.

 

 

SCHEDULE 5

 

CODE OF CONDUCT FOR SIEMENS SUPPLIERS

 

This Code of Conduct defines the basic requirements placed on Siemens’ suppliers of goods and services concerning their responsibilities towards their stakeholders and the environment.  Siemens reserves the right to reasonably change the requirements of this Code of Conduct due to changes of the Siemens Compliance program.  In such event Siemens expects the Supplier to accept those reasonable changes.

 

The Supplier declares herewith:

 

Legal compliance

 

·                                          to comply with the laws of the applicable legal system(s).

 

Prohibition of corruption and bribery

 

·                                          to tolerate no form of and not to engage in any form of corruption or bribery, including any payment or other form of benefit conferred on any government official for the purpose of influencing decision making in violation of law.

 

Respect for the basic human rights of employees

 

·                                          to promote equal opportunities for and treatment of its employees irrespective of skin colour, race, nationality, social background, disabilities, sexual orientation, political or religious conviction, sex or age;

·                                          to respect the personal dignity, privacy and rights of each individual;

·                                          to refuse to employ or make anyone work against his will;

·                                          to refuse to tolerate any unacceptable treatment of employees, such as mental cruelty, sexual harassment or discrimination;

·                                          to prohibit behaviour including gestures, language and physical contact, that is sexual, coercive, threatening, abusive or exploitative;

·                                          to provide fair remuneration and to guarantee the applicable national statutory minimum wage;

·                                          to comply with the maximum number of working hours laid down in the applicable laws;

·                                          to recognise, as far as legally possible, the right of free association of employees and to neither favour nor discriminate against members of employee organisations or trade unions.

 

Prohibition of child labour

 

·                                          to employ no workers under the age of 15 or, in those countries subject to the developing country exception of the ILO Convention 138, to employ no workers under the age of 14.

 

Health and Safety of employees

 

·                                          to take responsibility for health and safety of its employees;

·                                          to control hazards and take the best reasonably possible precautionary measures against accidents and occupational diseases;

 

 

·                                          to provide training and ensure that employees are educated in health and safety issues;

·                                          to set up or use an occupation health & safety management systems to OHSAS 18001 or equivalent.

 

Environmental protection

 

·                                          to act in accordance with the applicable statutory and international standards regarding environmental protection;

·                                          to minimise environmental pollution and make continuous improvements in environmental protection;

·                                          to set up or use an environmental management system according to ISO 14001 or equivalent.

 

Supply Chain

 

·                                          to use best efforts to promote among its suppliers compliance with this Code of Conduct;

·                                          to comply with the principles of non discrimination with regard to supplier selection and treatment.

 

For and on behalf of the Supplier:

 

	
Signed:
    	
/s/   Burkhard Prause
    	
 
    	
Signed:
    	
/s/   Reinhard Dietrich
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
25.09.09
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name
    	
 
    	
 
    	
Name:
    	
Reinhard   Dietrich
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
Director   Sales
    

 

 

For and on behalf of Siemens Magnet Technology Ltd:

 

	
Signed:
    	
 
    	
 
    	
Signed:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

 

SCHEDULE 6

 

EXAMPLE PURCHASE ORDER

 

(NOT APPLICABLE)

 

 

SCHEDULE 7

 

KEY PERFORMANCE INDICATORS

 

The detailed format of the Key Performance Indicators shall be agreed between the parties.  A target for each KPI shall be agreed at each Business Review Meeting by both parties.  The following shall constitute the basis of these:

 

Quality KPI:

 

The percent of Products delivered to Siemens which are rejected, are subject to a Corrective Action Requests or a concession due to the Product not meeting the specification

 

Delivery Performance KPI:

 

The delivery performance KPI shall record any event where the Siemens Production line is stopped due to failure to supply Products, with the limits set-out in Clause 4.1 or an incident where a Supplier requires additional management by Siemens personnel to facilitate, accelerate or organise the delivery of Products.

 

Cost Reduction KPI:

 

The target set out for cost reduction shall be 5% year-on-year across the range of the products supplied per Schedule 1.  This cost reduction is a target only and not an obligation on the Supplier

 

Kitting Efficiency KPI

 

This is based on the scoring assigned to number of joints, number of spools per kit and minimum wire length targets set-out in the Purchase spec

 

Kanban KPI:

 

The target is for the Supplier to maintain 70% levels unless Siemens alters its consumption volume by +/-20%.  The levels will be measured on a daily basis and reported as an average value at the end of every month and the target levels reviewed annually.

 

 

SCHEDULE 8

 

WIRE DEFECT PROCESS

 

[**]

 

	
  

  	
  SCHEDULE 9
  EXAMPLE INVOICE SELF BILLING Invoice Invoice No. Vendor Address Original
  Invoice Number: Document Date. Ref. 28 October 2008 Original Invoice Date.
  Material Doc No. Vendor No. VAT No: Shared Services: Siemens Magnet
  Technology Limited PO Box 433 Durham DH1 9WH Client Site: Siemens Magnet
  Technology Limited Wharf Read Eynsham Witney OX29 4BP VAT No: GB 532 5920 54
  Material No. Description Unit Price Quantity Net Amount 0 Total Reference
  settlement - 0 issued by Siemens Magnet Technology Limited for: Description
  0.00 0.00 0.00 Sub total Total VAT 17.50% 0.00 0.00 GBP 0.00 Contact Details
  - Eynsham email: james.batty@siemens.com fax: +44(0)1865 850150 phone:
  +44(0)1865850327 This document was generated by Siemens Magnet Technology
  Limited The VAT shown is your output tax due to HM Revenue and Customs

  

 

 

 

SCHEDULE 10

 

KANBAN PROCESS

 

[**]

 

 

SCHEDULE 11

EXAMPLE ONLY

SELF-BILLING AGREEMENT

 

The self-biller (the customer) agrees:

 

1.                                       To issue self-billed invoices for all supplies made to them by the self-billee (the Supplier) pursuant to a Supply Agreement entered into between the Customer and Supplier (the “SA”).

 

2.                                       To complete self-billed invoices showing the supplier’s name, address and VAT registration number, together with all the other details which constitute a full VAT invoice.

 

3.                                       To make a new self-billing agreement in the event that their VAT registration number changes.

 

4.                                       To inform the supplier if the issue of self-billed invoices will be outsourced to a third party.

 

The self-billee agrees:

 

1.                                       To accept invoices raised by the self-biller on their behalf until the SA expires in accordance with clause 3 of the SA.

 

2.

 

3.                                       Not to raise sales invoices for the supplies made under the SA.

 

4.                                       To notify the customer immediately if they

 

·                                          change their VAT registration number;

 

·                                          cease to be VAT registered; or

 

·                                          sell their business, or part of their business

 

For and on behalf of the supplier:

 

	
Signed
    	
 
    	
 
    	
Signed: 
    	
/s/ Reinhard Dietrich
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:   
    	
25.09.09
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name
    	
 
    	
 
    	
Name: 
    	
Reinhard Dietrich
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:   
    	
Director   Sales
    

 

 

For and on behalf of Siemens Magnet Technology Ltd:

 

	
Signed
    	
 
    	
 
    	
Signed:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: Dietmar Lehne
    	
 
    	
Name: Markus Dolitch
    
	
 
    	
 
    	
 
    
	
Title: Managing Director
    	
 
    	
Title:   Finance Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name: Michel Atallah
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title: Logistics Director
    	
 
    	
 
    

 

 

SCHEDULE 12

 

EXAMPLE SCHEDULING ORDER

 

(Not Applicable as all Product are on Kanban)Exhibit 10.26

 

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

 

	
 
    	
[RI   research Instruments Letterhead]
    
	
 
    	
 
    
	
Deutsches   Elektronen Synchrotron DESY
    	
Dr. Michael   Pekeler
    
	
Attn.:   Ross Killough
    	
Tel.:
    	
+49   (2204) 84 – 25 65
    
	
Purchaser
    	
Fax:
    	
+49   (2204) 84 – 25 01
    
	
Notkestrasse   85
    	
michael.pekeler@research-instruments.de
    
	
 
    	
MIP
    
	
D-22603   Hamburg
    	
 
    
	
 
    	
July 21,   2010
    

 

Reference:  Your Purchase Order 659/431030038

Manufacturing of 300 XFEL cavities

 

Dear Mr. Killough,

 

We thank you very much for above referenced contract award.  We acknowledge this contract under the following boundary conditions:

 

1.               Reference:  Pos 0050 to Pos 0090

 

The “Delivery” for the Down-payments 1 through 5 shall be as follows:

 

Down-payment 1:  31.07.2010

Down-payment 2:  30.04.2011

Down-payment 3:  01.03.2011

Down-payment 4:  31.01.2012

Down-payment 5:  01.11.2011

 

2.               Reference:  “1.  Scope of supply”

 

Material supply in amount and date for Nb, Nb/Ti and helium vessel shall be in accordance with RI letter dated March 30, 2010 and the spread sheet in the annex of that letter.

 

3.               Reference:  “2.  Technical Specifications”

 

The technical Specification are:

 

1.               RI letter dated March 30, 2010 with all annexes

2.               Chapter 8, “Comments to supplied technical specification and drawings” of the technical part of RI offer ANG-1.4/2812-01/10, dated 12.02.2010

3.               Documents named under point 2 “Scope of Supply” in the DESY Call For Tender dated January 29, 2010.

 

 

All these documents are enclosed to this letter.

 

4.               Reference:  “3.  Terms and Conditions”, “2.  Terms of payment”

 

The bank guarantees (Burgschaften) shall be in accordance with the templates sent to DESY on March 31, 2010.  The reduction of the bank guarantees shall be according to the value of the accepted deliveries.
 The templates of the Bürgschaften are enclosed to this letter.

 

5.               Reference:  “3.  Terms and Conditions”, “4.  Delivery schedule”

 

The manufacturing of single parts and subassemblies (equator welds excluded) for the series cavities will start after DESY material supply.  Time schedule is valid only if the material will be supplied according to point 2 above.

 

6.               Reference:  “3.  Terms and Conditions”, “6.  Warranty”

 

The warranty period shall expire 24 months after the date of acceptance by DESY, 30 months after delivery at the latest.  In case of warranty (deficiency of the cavity), RI shall at their own cost and discretion repair and/or replace the deficient cavity.  DESY shall make the cavity available to RI, ready for transport, DESY Facility Hamburg, AMTF Hall.  Cost involved in making the cavity available shall be borne by DESY.  Any further claims of DESY, in particular damages in lieu of performance or compensation for any direct or indirect damages — including collateral or consequential damages (inter alia production stop, loss of profit, damages concerning different components or objects etc.), irrespective of legal reason — are explicitly excluded.  The limitation of liability shall not apply in the event that RI or a vicarious agent of RI acts intentionally or by gross negligence or in other cases where mandatory law precludes such limitation.

 

7.               Reference:  “3.  Terms and Conditions”, “8.  Right of Access and Designated Personnel”

 

RI’s commercial contact person shall be

Mr.  Helmut Schulten

Tel.:  +49 (2204) 84 – 35 38

Fax:  +49 (2204) 84 – 25 01

 

8.               Reference:  “3.  Terms and Conditions”, “9.  Documentary Order Priority”

 

For the avoidance of doubt, the DESY Verkaufsbedingungen shall not apply for this contract.

 

We are very grateful to work for you on this XFEL cavity production project and once again thank you for the contract award.  We are looking forward to a fruitful collaboration.

 

Yours faithfully

RI Research Instruments GmbH

	
/s/   Burkhard Prause
    	
 
    	
/s/   Michael Peiniger
    	
 
    

 

2

 

Enclosures

Order Acknowledgement

Technical specification documents as listed under point 3. above

Templates of Bürgschaften (2 pieces)

 

3

 

	
[Deutsches   Elektronen-Synchrotron DESY Letterhead]
    	
 
    
	
 
    	
 
    
	
RI   Research Instruments GmbH
    	
[handwritten:]   In addition the
    
	
Friedrich-Ebert-Strassee   1
    	
conditions   of RI letter dated 21.07.10
    
	
51429   Bergisch-Gladbach
    	
shall   apply.
    

 

Our Customer Number:

Our UStIdentnummer:  DE118714904

 

Delivery Conditions:   see ordering code

Payment Terms:            see Text

 

Währung EUR

 

Preamble

DESY refers to Deutsches Elektronen-Synchrotron DESY, Notkestrasse, 85, 22607 Hamburg, Germany.

 

RI refers to RI Research Instruments GmbH, Friedrich-Ebert-Strasse 1, 51429 Bergisch Gladbach, Germany.

 

The following is a record of agreement, between DESY on the one hand and RI on the other hand, both to be collectively hereinafter also referred to as The Parties, and by which The Parties mutually enter into contract for the purpose as laid down in detail in this Purchase Contract, and -

 

WHEREAS — DESY, a juridical person, incorporated under the laws of the Fed. Rep. of Germany and registered postal address as mentioned before, is the Purchaser who buys from the Vendor such contractural object as described under Scope of Supply, and -

 

WHEREAS, — RI, a juridical person, incorporated under the laws of the Fed. Rep. of Germany and registered postal address as mentioned before, is the Vendor who sells to the Purchaser the same such contractural object as described under Scope of Supply.

 

NOW, THEREFORE — may hereby be known the Purchase Contract between The Parties.

 

As a result of a “European Negotiated Procedure without prior Publication” in accordance with the “General Rules for the Procurement of Supplies and Services — (VOL, version 2006)”, referenced under DESY’s Call for Tender “EV012-09 XFEL”, dated January 29, 2010, RI’s offer “ANG 1.4/2812-01/10 dated February 12, 2010, negotiations carried out by The Parties and amendments to the afore mentioned offer from RI, dated March 30, 2010 and March 31, 2010.

 

4

 

	
Pos.
    	
 
    	
Material
   Order Unit
    	
 
    	
Description
   Price per Unit of Net Value
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0010
    	
 
    	
 
    	
 
    	
Dummy   Cavities (DCV)
    
	
 
    	
 
    	
4   Pieces
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 16.05.2011
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   1 “Scope of Supply”, Pos. 1.1 and
    	
 
    	
 
    
	
 
    	
 
    	
Point   4 “Delivery Schedule”
    	
 
    	
 
    
	
 
    	
 
    	
for   further information.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0020
    	
 
    	
 
    	
 
    	
Reference   Cavities (RCV)
    
	
 
    	
 
    	
4   Pieces
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 05.03.2012
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   1 “Scope of Supply”, Pos. 1.2 and
    	
 
    	
 
    
	
 
    	
 
    	
Point   4 “Delivery Schedule”
    	
 
    	
 
    
	
 
    	
 
    	
for   further information.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0030
    	
 
    	
 
    	
 
    	
Series   Cavities
    
	
 
    	
 
    	
280   Pieces
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 10.03.2014
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   1 “Scope of Supply”, Pos. 2.1 and
    	
 
    	
 
    
	
 
    	
 
    	
Point   4 “Delivery Schedule”
    	
 
    	
 
    
	
 
    	
 
    	
for   further information.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0040
    	
 
    	
 
    	
 
    	
HiGrade   Cavities
    
	
 
    	
 
    	
12   Pieces
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 10.03.2014
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   1 “Scope of Supply”, Pos. 2.2 and
    	
 
    	
 
    
	
 
    	
 
    	
Point   4 “Delivery Schedule”
    	
 
    	
 
    
	
 
    	
 
    	
for   further information.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0050
    	
 
    	
 
    	
 
    	
Down-payment   1
    
	
 
    	
 
    	
1,00   Contract Value  4.981.000,00
    	
 
    	
4.981.000,00
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 30.08.2010
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   3 “Terms and Conditions”
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   2 a) “Terms of Payment”
    	
 
    	
 
    

 

5

 

	
 
    	
 
    	
for   details.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0060
    	
 
    	
 
    	
 
    	
Down   payment 2
    
	
 
    	
 
    	
1,00  Contract Value 2.490.500,00
    	
 
    	
2.490.500,00
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 02.01.2012
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   3 “Terms and Conditions”,
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   2 b) “Terms of Payment”
    	
 
    	
 
    
	
 
    	
 
    	
for   details.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0070
    	
 
    	
 
    	
 
    	
Down   payment 3
    
	
 
    	
 
    	
1,00   Contract Value 2.490.500,00
    	
 
    	
2.490.500,00
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 02.01.2013
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   3 “Terms and Conditions”,
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   2. c) “Terms of Payment”
    	
 
    	
 
    
	
 
    	
 
    	
for   details.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0080
    	
 
    	
 
    	
 
    	
Down   payment 4
    
	
 
    	
 
    	
1,00   Contract Value 2.490.500,00
    	
 
    	
2.490.500,00
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 02.01.2011
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   3 “Terms and Conditions”,
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   2. d) “Terms of Payment”
    	
 
    	
 
    
	
 
    	
 
    	
for   details.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0090
    	
 
    	
 
    	
 
    	
Down   payment 5
    
	
 
    	
 
    	
1,00   Contract Value 2.490.500,00
    	
 
    	
2.490.500,00
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 01.01.2011
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   3 “Terms and Conditions”,
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   2. e) “Terms of Payment”
    	
 
    	
 
    
	
 
    	
 
    	
for   details.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
0100
    	
 
    	
 
    	
 
    	
Balance   of Payment
    
	
 
    	
 
    	
1,00   Contract Value 9.962.00,00
    	
 
    	
9.962.000,00
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 02.01.2012
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   3 “Terms and Conditions”,
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   2. f) “Terms of Payment”
    	
 
    	
 
    
	
 
    	
 
    	
for   details.
    	
 
    	
 
    

 

6

 

	
0110
    	
 
    	
 
    	
 
    	
Options
    
	
 
    	
 
    	
1,00   Contract Value
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Delivery   Tag 02.01.2013
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   see
    	
 
    	
 
    
	
 
    	
 
    	
Point   1 “Scope of Supply”,
    	
 
    	
 
    
	
 
    	
 
    	
Pos.   3.1 — 3.6 “Options”
    	
 
    	
 
    
	
 
    	
 
    	
for   details.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Total net value excluding VAT 
    	
 
    	
EUR       24.905.000,00
    

 

1.                                       Scope of Supply:

 

Manufacture, testing and delivery of:

 

	
Pos.
    	
 
    	
Qty.
    	
 
    	
Description
    
	
1.1
    	
 
    	
4   pieces
    	
 
    	
Dummy   Cavities (DVC),
    
	
 
    	
 
    	
2   w/ tanks, 2 w/o Tanks.  Tanks will be   supplied by DESY Material (Nb/NbTi for the Nb sheets), will be supplied by   DESY
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.2
    	
 
    	
4   pieces
    	
 
    	
Reference   Cavities (RCV),
    
	
 
    	
 
    	
Material   (Nb/NbTi for the Nb Sheets), will be supplied by DESY
    	
 
    	
 
    
	
 
    	
 
    	
Price:  Euro 1.333.000,00
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.1
    	
 
    	
280   pieces Series Cavities
    	
 
    	
 
    
	
 
    	
 
    	
Material   (Nb/NbTi for the Nb Sheets) will be supplied by DESY Tanks will be supplied   by DESY.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.2
    	
 
    	
12   pieces
    	
 
    	
HiGrade   Cavities
    
	
 
    	
 
    	
Materials   (Nb/NbTi for the Nb sheets) will be supplied by DESY
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Price:   Euro  23.572.000,00
    	
 
    	
 
    
	
 
    	
 
    	
Total   Contract Value:
    	
 
    	
Euro       24.905.000,00
    

 

Options:

 

Options for a maximum of 160 series Cavities as described in the Scope of Supply may be exercised up to no later than 2 (two) years after the date of the original order.

 

	
Pos
    	
 
    	
Qty.
    	
 
    	
Description
    	
 
    	
Price
    
	
3.1
    	
 
    	
40   pieces
    	
 
    	
Series   Cavities
    	
 
    	
Euro   [**]
    
	
3.2
    	
 
    	
80   pieces
    	
 
    	
Series   Cavities
    	
 
    	
Euro   [**]
    
	
3.3
    	
 
    	
160   pieces
    	
 
    	
Series   Cavities
    	
 
    	
Euro   [**]
    

 

Material (Nb/nBTi for the Nb sheets) will be supplied by DESY Tanks will be supplied by DESY

 

7

 

3.4           Implementation of alternative transportation concept.  Total price reduction for Pos. 2.1 and 2.2:  Euro 111.478,00

 

3.5           Supply or NbTi for cells as sheets instead of turned discs Euro 36.00 / Sheet

 

3.6           Supply of NbTi for flanges as rods instead of discs Euro 1.014,00 / Rod

 

All free issue items (Material (Nb/NbTi for the Nb Sheets) and / or Tanks), will be provided by DESY up to a maximum of 103% of the required quantities.

 

Where applicable, VAT shall be added to the invoice at the time of delivery.

 

1.1           Scope of Supply includes:

 

Please refer to point 2.2 “Included under Scope of Supply” in the Call for Tender documents dated January 29, 2010.

 

The surface [sic] preparation “EP” shall apply.

 

Costs for compliance with the pressure vessel directive and qualification of welds are not included in this contract.

 

2.                                       Technical Specifications:

 

The technical specifications are set out in the documents that are named under point 2. “Scope of Supply”, in the Call for Tender dated January 29, 2010.  Specifically, but not exclusively, this includes:

 

·                                          Technical Documents

 

·                                          Qualified Suppliers for the Procurement of Nb and Nb55Ti (where applicable)

 

·                                          Material, Equipment and Accessories Provided to the Vendor,

 

·                                          Preparation and Readiness of the Infrastructure,

 

·                                          HiGrade Cavities

 

3.                                       Terms and Conditions

 

1.                                       Price Basis

 

The contract price is firm, not subject to escalation or variation, and excludes Value Added Tax (i.e., VAT/MWST).  VAT, where applicable, shall be added at the prescribed rate at the time of delivery.  Costs for necessary packaging are included in the prices listed.

 

The point of delivery is CPT — DESY Facility Hamburg, AMTF Hall, in accordance with the Clause (Carriage Paid To) of the ICC INCOTERMS 2000.

 

8

 

The costs and risks of off-loading and handling are DESY’s responsibility.  Should DESY deem that transport shock logging devices be required, these will be supplied at no charge by DESY.

 

2.                                       Terms of Payment

 

The immutable pre-condition for the release of payment by DESY is the receipt of a relevant invoice by DESY and, where the net amount of the invoice is equal to or greater than EUR 50.000,00, submission of a suitable Bank Guarantee.  After fulfillment of these pre-conditions, amounts due will become payable 30 days thereafter, net, without deduction, and in accordance with the following schedule:

 

a)                                      20 % of the contract value, as down-payment, due upon conclusion of this contract and presentation of a bank guarantee, to be retained until the value of the accepted deliveries exceeds that of the aforementioned bank guarantee.

 

b)                                     10 % of the contract value, as a further down-payment, due 9 (nine) months after the conclusion of this contract and presentation of a bank guarantee, to be retained until the value of the accepted deliveries exceeds that of the aforementioned bank guarantee.

 

c)                                      10 % of the contract value, as a further down-payment, due upon supply by DESY of the first niobium material for the production of the Series Cavities and presentation of a bank guarantee, to be retained until the value of the accepted deliveries exceeds that of the aforementioned bank guarantee.

 

d)                                     10 % of the contract value, as a further down-payment, due 18 (eighteen) months after the conclusion of this contract and presentation of a bank guarantee, to be retained until the value of the accepted deliveries exceeds that of the aforementioned bank guarantee.

 

e)                                      10 % of the contract value, as a further down payment, due upon supply by DESY of the third niobium material for the production of the Series Cavities and presentation of a bank guarantee, to be retained until the value of the accepted deliveries exceeds that of the aforementioned bank guarantee.

 

f)                                        40 % of the contract value upon completion of deliveries on a pro rata basis as per the contractural Scope of Supply as well as acceptance of same by DESY, together with the presentation of a bank guarantee for 5 % of the respective cavity value for the duration of the warranty period.

 

The payments for a), b), c), d), and e) require the presentation of a directly enforceable Bank Guarantee of unlimited validity, for f), a Bank Guarantee of limited validity, committing the guarantor, jointly and severally, irrevocably and unconditionally, under waiver of defense of setoff, voidability and failure to pursue remedies, as well as abstention from the right to deposit

 

9

 

in trust, to pay to DESY, on first written demand, stating that the Vendor is materially in breach of contract.

 

Such guarantees shall be to DESY’s satisfaction and entirely free of charge, issued by an approved Banking Institution operating within the European Community.

 

Such guarantees shall furthermore be subject to the laws of the Federal Republic of Germany and recognise the jurisdiction of the courts of the State of Hamburg, for all parties concerned.

 

3.                                       Acceptance of Deliveries

 

Acceptance of deliveries occurs as specified in Appendix V

 

“Acceptance of Delivery” in the Call for Tender dated January 29, 2010.  Additionally, the following shall apply:

 

·                                          Acceptance of Levels 1, 2 and 3 shall be completed by DESY no later than 7 (seven) calendar days after notification and submission by RI of the relevant date, that the requirements for the respective level have been fulfilled.

·                                          Acceptance of Level 4 shall be completed by DESY no later than 14 (fourteen) calendar days after delivery to DESY.  The date of acceptance shall be recorded by means of a Final Acceptance Certificate to be issued by DESY and signed by The Parties.  All identifiable defects that exist at the time of the issuance of the Final Acceptance Certificate shall be listed in same.

 

Acceptance shall be deemed to have take place not later than 4 (four) weeks after delivery and hand-over of all required documentation, should the acceptance be delayed for reasons attributable to DESY.

 

Should a delivered Cavity, manufactured and delivered following all of the procedures supplied by and/or agreed to by DESY, fail to meet the acceptance criteria for the specified performance, DESY shall decide what steps are to be taken for the repair and/or replacement of the Cavity.  DESY shall carry the costs for the chosen course of action.

 

Minor defects or deficiencies, which do not essentially affect the function of the cavities, do not entitle DESY to withhold acceptance.

 

4.                                       Delivery Schedule

 

Deviations from the anticipated time schedule must be notified promptly and in writing.

 

Qualification Phase:

4 pieces Dummy Cavities (DCV)

 

                Delivery:  42 weeks after conclusion of contract

 

4 pieces Reference Cavities (RCV)

 

                Delivery for testing and release:  84 weeks after conclusion of contract

 

Should, for any reason whatsoever, the expected rf-parameters for the 4 RCVs not be fulfilled, and thus, the series production is endangered.  The Parties shall find an

 

10

 

amicable solution to agree on technical specifications that suffice for DESY’s objectives.  The time schedule for the delivery of the Series and HiGrade Cavities will be revised as required in this case.

 

No Party is entitled to claim indemnification or compensation of damages, expenses or any other losses from the other Party if the qualification phase is not completed successfully, in particular, without limitation, for the delay of the series production.

 

Production Phase:

 

	
280   pieces
    	
 
    	
Series   Cavities and
    
	
12   pieces
    	
 
    	
HiGrade   Cavities
    
	
 
    	
 
    	
14   per 4 week period
    
	
 
    	
 
    	
Start:  Requires the written release of the RCVs by   DESY at the end of the Qualification Phase.    Estimated date of delivery for release:  85 Weeks after conclusion of contract.
    
	
 
    	
 
    	
End:  189 Weeks after conclusion of contract
    

 

A detailed plan for the delivery of the Series and HiGrade Cavities is to be presented to DESY no later than 14 (fourteen) calendar days after the written release of the RCVs by DESY.  The Parties shall notify each other immediately in writing, if circumstances arise or become known, which cause a delay in the delivery of the Series and/or HiGrade Cavities.

 

5.                                       Alterations to Scope of Supply

 

DESY may request RI to accept alternations to the Scope of Supply during the course of the contract fulfillment.  In as far as such alterations affect the manufacturing costs and/or date of delivery of the contractural object, RI shall inform DESY accordingly.  The alterations become an integral part of the contract as soon as The Parties have reached mutual agreement about them and, if necessary, by adjusting price and delivery time to a reasonable extent.  Alternations to Scope of Supply must be recorded in the written form.

 

6.                                       Warranty

 

RI shall warrant the Scope of Supply for the duration of 24 months following the date of acceptance by DESY.  In case of warranty (deficiency of the cavity), RI shall at their cost and discretion repair and/or replace the deficient cavity.  DESY shall make the cavity available to RI, ready for transport, DESY Facility Hamburg, AMTF Hall.  Costs involved in making the cavity available shall be borne by DESY.

 

7.                                       Annulment and Corruption Prevention

 

a)                                      VOL/B paragraphs 8 and 9 are applicable.  Any actions taken under these paragraphs require the written form,

 

b)                                     Furthermore, DESY may terminate the contract given justification appertaining to the Vendor as set out under VOL/A (version 2006), paragraph 7, No. 5, c-e,

 

11

 

c)                                      In case of annulment of the contract by DESY according to the terms in h), the Vendor shall make good all direct of Indirect damages.  The Vendor shall have no entitlement to claims resulting from the annulment other than the reimbursement of the goods and services delivered.  The BGB (German Civil Code), paragraphs 347-351 and 354 regarding the statutory rules of annulment, remain unaffected.

 

d)                                     Should the contract be annulled due to justifiable reasons as set out in b), the Vendor shall pay a penalty to DESY irrespective of whether DESY exercises the annulment of contract as per b) in full or in part.

 

e)                                      The amount of the penalty in case of corruption be 50 times that of the value of the gifts or other favours offered, promised or awarded.  In all other cases as per b), the amount of the penalty shall be 50 times that of the savings or resulting damages to a maximum of 10% of the total value of contract excluding VAT.  No penalty shall arise from minor benefits.  Damage claims as per c) remain unaffected.

 

8.                                       Rights of Access and Designated Personnel

 

DESY’s authorised representatives or agents shall be given access to the Vendor’s works and offices in as far as production progress and technical information, relevant to this Tender, is concerned.  This right extends to any and all sub-contractors acting on behalf of the Vendor for this contract.  Such requests for access shall be pre-notified by DESY and kept to working hours.  Attendance or participation in meetings and/or other contractual events by DESY’s representatives or agents shall be without any commitment to assume technical or contractural responsibility for the proceedings so witnessed.

 

All agreements pursuant to a contract must be in writing and must be signed in a legally binding manner by authorised signatories of DESY and the Vendor.  Representatives or agents of DESY are not authorized to enter in to agreements on DESY’s behalf.

 

Agreements with sub-contractors are subject to the rules laid out in VOL/A (version 2006), paragraph 10.

 

DESY’s contact personnel are:

On technical queries:

	
Dr. Weldemar   Singer — Dept. MPL
    	
 
    	
Tel.   (0) 40 8998-2775
    
	
 
    	
 
    	
e-mail:   waldemer.singer@desy.de
    
	
 
    	
 
    	
 
    
	
On   commercial queries:
    	
 
    	
 
    
	
Mr. Ross   Killough — Dept. Purchasing
    	
 
    	
Tel.   (0) 40 8998-1539
    
	
 
    	
 
    	
Fax.   (0) 40 8998-4009
    
	
 
    	
 
    	
e-mail:   purchasing.v401@desy.de
    
	
 
    	
 
    	
 
    
	
RI’s   contact personnel are:
    	
 
    	
 
    
	
On   technical queries:
    	
 
    	
 
    
	
Dr. Michael   Pekeler
    	
 
    	
Tel:   (0) 2204 84 2565
    
	
 
    	
 
    	
Fax:   (0) 2204 84 2501
    

 

12

 

	
 
    	
 
    	
e-mail:  Michael.pekeler@research-instruments.de
    
	
 
    	
 
    	
 
    
	
on   commercial queries:
    	
 
    	
 
    
	
Dr. Michael   Peiniger
    	
 
    	
Tel: (0) 2204 84 3676
    
	
 
    	
 
    	
Fax: (0) 2204 84 2599
    
	
 
    	
 
    	
e-mail:   Michael.peiniger@research-instruments.de
    

 

9.                                       Documentary Order of Priority

 

The Purchase Contract shall be governed by the following order of documentary priority -

 

·                                          The particular conditions of contract, as reflected in this Contract Document

·                                          The VOL/B, Verdingungsordnung fur Leistungen, Teil B (General Terms and Conditions for Performance of Supplies and Services, Part B)

·                                          The laws of the Federal Republic of Germany.

 

The United Nations Convention on Contracts for the International Sale of Goods, dated 11 April 1980, shall not have effect, nor be applicable.

 

In case of conflict between the German Language VOL and any translation into other language, the German language version shall take precedence.

 

In case of dispute, the contract is subject to the jurisdiction of the Courts of the State of Hamburg.

 

Domicilium citandi et executandi is Hamburg, Fed. Rep. of Germany.

 

10.                                 Exchange of Knowledge / Intellectual Property Rights / Confidentiality

 

Exchange of Knowledge

 

Within this project The Parties will share technical expertise, experience and results that may arise from the technical process of fabricating and preparing the cavities.  The Parties shall make available to each other, free of change and without any restriction, the rights over which they can legally dispose, and which are needed for the purposes of the project.  This shall be deemed to cover all documentation or technical information provided by The Parties to each other in any form, including information, reports, drawings, designs, computer programs, techniques, know how and other results of the work.

 

Intellectual Property Rights

 

The ownership title to all existing intellectual property rights prior to the commencement of the prototype development shall remain the uninfringeable property of the respective owners or the Vendor and DESY respectively.

 

13

 

The Vendor grants DESY an exclusive irrevocable license free of charge for all its domestic and foreign industrial property rights, industrial property rights applications and inventions, provided that they result from this contract.

 

Furthermore, DESY, by way of funding and assisting in the development of the prototype, shall receive a full set of reproducible “Design” and “As Built” drawings, including all material schedules, together with the stipulated and usual documentation.  If such information is provided in the form of electronic media, the software to access such media becomes part of the required documentation, if not already in DESY’s possession.  The full and up to date documentation shall be handed over to DESY upon completion of delivery.  Furthermore, the Vendor will grant DESY an irrevocable, exclusive users’ right free of change for all know-how (especially documentation and processes) and any enhancements and/or improvements, provided that they result from a contract resulting from this contract.

 

In order to accomplish this agreement DESY grants the Vendor non-exclusive license to any of its Intellectual Property which is needed for the purposes of the Project.  These licenses are restricted to achieve the objectives of this agreement and may not be used within other contexts.  The parties have the right to grant non-exclusive licensees to third parties who may be involved in the production process restricted to the use within the project.

 

Confidentiality

The open exchange of expertise and information shall honour the following principles:

 

The Parties shall treat any information as confidential.  The Parties shall take all appropriate steps to safeguard the confidential information.  Accordingly, the receiving Party shall not use any such information for any purpose other than in accordance with the terms of this agreement.  At the same time, the receiving Party shall not disclose any such confidential information to any third party, and such information shall neither be reproduced nor duplicated in any form.

 

11.                                 Miscellaneous

 

The contract language is English.

 

Neither sub-contracting nor assignment of any part of this Purchase Contract may be done without the consent of the enduring party.  If consent is given, which shall not be unreasonably withheld, it shall be in writing.  Agreements with sub-contractors are subject to their rules laid down under paragraph 10 VOL/A (version 2006).

 

This document constitutes the entire agreement of the Purchase Contract.  Deviations from the Purchase Contract may be agreed between the Parties and must be reduced to writing in the form of a numbered Contract Amendment and signed by authorised personnel of The Parties only.

 

No waiver of any deviation of any provision of this Contract shall constitute a wavier of any subsequent deviation or breach of the same or any other provision of this Purchase Contract and no waiver shall be effective unless made in writing.

 

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This Purchase Contract shall come into force upon signature by The Parties and shall remain in full force until fulfillment of all mutual obligations by The Parties.

 

If it is being determined at a later stage that individual parts of this Purchase Contract are in conflict with prescriptive legal rules or code, that shall not serve as reason to invalidate the entire agreement.  It shall rather induce The Parties to find a solution, substituting the afflicted parts of the agreement with a new and legally proper arrangement, which shall place neither party under the contract in a materially better or worse position as under the original agreement.

 

If, by governmental decree or imposition, bilaterally or unilaterally, the mutual fulfillment of this Purchase Contract becomes impossible or diminished in its intent, The Parties shall apply all reasonable efforts to adopt or modify this agreement and find a way to comply with and satisfy such opposing degree or imposition and for the purpose of bringing this Purchase Contract to its best possible conclusion.

 

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ADDENDUM TO CONTRACT

 

Addendum No. 1, Dated September 21, 2010
 to
 Contract No. 431030038, Dated July 13, 2010

 

I.                                         Payment Terms / Delivery Dates

 

The dates identified as “Delivery” under the positions (Pos.) 0050-0100 in the Contract, are not applicable as dates for payment.  The dates for payment as set out under “3.2 Terms of Payment” shall apply.

 

The dates for the positions 0010 — 0040 are not valid dates.  The delivery dates as set out under “4.  Delivery Schedule” shall apply.

 

II.                                     Free Issue Items

 

DESY shall inform RI, in writing and as soon as possible, should there be delays in providing the materials to RI.  Dates of delivery and any other dates which are dependent upon the delivery of materials by DESY will be adjusted accordingly.

 

In the case of delay of delivery of Free Issue Items by DESY; RI requires 4 months advance warning in order to minimize costs.  By delays of a shorter time period, the Parties will, by mutual agreement, attempt to reduce any impact on costs and/or scheduling.

 

The anticipated, non-binding, targeted dates for the delivery of free issue items may be found in the accompanying document “List of Nb and NbTi Material Required for XFEL Cavity Fabrication”.  At the time of this Addendum, the targeted dates are 4 (four) months behind those listed in RI’s “XFEL — List of required niobium material” dated March 30, 2010.  The targeted dates for the delivery of helium tanks for the series production will be communicated separately.

 

Binding dates will be set when the contracts for the delivery of niobium and niobium-titan materials and the delivery of helium tanks have been awarded by DESY.

 

III.                                 Bank Guarantee

 

Bank guarantees covering down-payments shall be reduced by 100 % of the nett sum of the cavities accepted and invoiced to the 15th of each month.  RI shall provide a bank guarantee in accordance with the provisions in the Contract under 3.2.f) for the warranty period for 5 % of the afore defined sum in order to effect release of payment by DESY.  The warranty period for all of the Cavities accepted and invoiced to the 15th of the month, begins on the 15th of said month.

 

The templates provided by RI for the bank guarantees are accepted.

 

IV.                                 Start of Manufacturing

 

[**].  To this end, DESY will approve the production facilities and procedures, in full and/or in part, of RI in a timely manner after having been informed of their preparedness.  [**].

 

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V.                                     Warranty / Liability

 

RI shall warrant the Scope of Supply for the duration of 24 months following the date of acceptance by DESY, 30 months after delivery of the respective cavity at the latest.  In case of warranty (deficiency of the cavity), RI shall at their cost and discretion repair and/or replace the deficient cavity.  DESY shall make the cavity available to RI, ready for transport, DESY Facility Hamburg, AMTF Hall.  Costs involved in making the cavity available shall be borne by DESY.

 

Liability for abovementioned warranty (repair and/or replacement) shall be limited to the value of the respective defective cavity and [**].

 

Any further claims of DESY, in particular damages in lieu of performance or compensation for any direct or indirect damages — including collateral or consequential damages (inter alia production stop, loss of profit, damages concerning different components or objects etc.), irrespective of legal reason —shall be limited to an amount of [**], in the aggregate.

 

The limitation of liability for warranty or otherwise shall not apply and RI shall be fully liable in the event that RI or a vicarious agent of RI acts intentionally or by gross negligence or in other cases where mandatory law precludes such limitation.

 

VI.                                 Contact information for commercial queries for RI is:

 

	
Helmut   Schulten
    	
 
    	
-   Tel.
    	
 
    	
+49   (0)2204 84 3538
    
	
 
    	
 
    	
-   Fax
    	
 
    	
+49   (0)2204 84 2501
    
	
 
    	
 
    	
-   e-mail: helmut.schulten@research-instruments.de
    

 

All Parties shall use the e-mail cavities-ri@desy.de for e-mail communications to and from DESY.

 

VII.                             Documentary Order Of Priority

 

The list as shown in the Contract under “9. Documentary Order of Priority” is clarified as follows:

 

·                  The particular conditions of contract, as reflected in this contract document and addenda.

·                  The Calls for Tender dated January 29, 2010 and in addition the one as of July 2, 2009 and all documents, in paper and/or electronic form, referred to in the Calls for Tender.  This includes technical specifications, “Change Report” CD, “List of Nb and NbTi Material Required for XFEL Cavity Fabrication” from April 12, 2010 and DESY letters dated December 18, 2009, January 22, 2010, and August 23, 2010 (2 letters).  This stipulation overrules the wording of Pos. “2 Technical Specification” of the contract.

·                  RI’s offer “ANG-1.4/2812-01/10 dated February 12, 2010 including amendments and clarifications from RI dated March 30, 2010.

·                  The VOL / B, Verdingungsordnung für Leistungen, Teil B (General Terms and Conditions for Performance of Supplies & Services, Part B).

·                  The laws of the Federal Republic of Germany.

 

The “DESY General Conditions of Purchase” do not apply for this contract.

 

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VIII.                         Conclusion of Contract

 

The Contract was concluded on July 13, 2010 and shall come into effect when this addendum is duly signed by the Parties.

 

	
DESY   Deutsches Elektronen-Synchrotron
    	
 
    	
RI   Research Instruments GmbH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Prof.   Dr. Helmut Dosch
    	
 
    	
/s/Dr. Michael   Peiniger
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Dr. Reinhard   Brinkmann
    	
 
    	
/s/Hanspeter   Vogel
    

 

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