§ 7 Retention of title

(1)  We retain the title to the delivered goods until all claims resulting from the business relations are fulfilled. This includes interest, accessory claims, costs of a possible prosecution and costs of necessary intervention resulting from a seizure of the delivered goods by a(General Terms and Conditions Act). third party. In the event that an execution is levied upon the delivered goods, the customer shall be obliged to notify us immediately. The customer shall bear the costs of the necessary intervention. (2)  In case of violations of the contract by the customer, in particular default in payment, we shall have the right to take back the delivered goods. In case we take back the delivered goods, this does not constitute a withdrawal from the contract by us, unless we have explicitly declared the termination of the contract. Seizure of the delivered goods by us shall exceeds 2 months, Pacific Gauge shall have the right to reasonably increase the  always constitute a termination of the contract. After taking back the goods, we shall have delivery price if the above costs have increased. the right to exploit such goods. The returns from such exploitation shall be offset against claims against the customer, with reasonable exploitation costs being deducted from such offset. (3)  In case of seizure or other interventions of third parties, the customer shall immediately approximate values only. notify us in writing so that we can institute an action Civil Procedure.{ (4)  In cases of small orders with a net purchase value of less than AU 200.00, We will If the third party is unable to reimburse the legal and extra-judicial costs, charge a processing fee of AU 110.00 in addition to shipping and packaging. the customer shall be liable for the loss incurred by us. (4)  The customer shall be entitled to resell the delivered goods within the course of regular business. If the customer resells the goods, all claims against customer's buyer or third parties to the complete invoice amount (including VAT) shall be assigned to us, regardless of whether the goods are sold as they are or further processed. The customer shall remain entitled to collect such claims even after the assignment. This does not affect our right to collect such claims ourselves. We undertake not to collect such claims under the following conditions: the customer meets his payment obligations from the returns and is not de- faulting in payment, no insolvency proceedings are filed against the customer, payment is not stopped. If any of the latter conditions are not met, we shall be entitled to request the customer to notify us of the assigned claims and the corresponding debtors and provide us with any information and the appropriate documents necessary for us to collect such claims, and to notify its customer of such assignment. (5)  Processing or modification of the delivered goods by the customer shall always be made on behalf of us. If the delivered goods are combined with other goods not belonging to us, we shall hold the title to the new product to a proportion that corresponds to the ratio of the value of the goods delivered by us and the value of the other objects used in the new product at the time of processing. The same provisions that apply to the goods delivered under retention of title shall apply to the new product resulting from further processing. (6)  If the goods delivered by us are combined with other objects not belonging to us in a way that it is impossible to separate such goods and objects, we shall acquire co-ownership to such new product to a proportion that corresponds to the ratio of the value of the goods delivered by us and the value of the other objects used in the combination at the time of processing. If the goods and objects are combined in such a way that the object of the customer is the main object, we shall acquire co-ownership to a proportional share. The customer shall keep such sole ownership or co-ownership for us.  (7) The customer shall also assign the claims to secure our claims against him which result against a third party from the combination of the delivered goods with real estate. (8)  Upon request by the customer, we undertake to release the securities if the value of our securities exceeds the claims to secure by more than twenty percent. The selection of the securities to be released shall be at our discretion.

§ 8 Liability

(1)  We shall not be liable in case of violations of immaterial contractual obligations caused by slight negligence. In other cases of slightly negligent violations of obligations, our liability shall be limited to the foreseeable, contractually typical direct average damage with regard to the type of goods or services covered by the contract. This shall also apply to slightly negligent violations of obligations committed by our legal representatives and vicarious agents (such as employees, other staff, subcontractors, etc.). (2)  In case of gross negligence committed by simple vicarious agents, the amount of dam- ages shall be limited to the foreseeable, contractually typical direct average damage with regard to the type of goods or services covered by the contract. (3)  Customer's liability claims shall be subject to a period of limitation of one year after delivery of the goods or acceptance of the service. (4)  Above liability limitations as per § 8 section 1 and § 8 section 2 as well as the period of limitations as per § 8 section 3 shall not apply in case of injury or loss of life. Above liability limitations as per § 8 section 1 and § 8 section 2 as well as the period of limitations as per § 8 section 3 shall neither apply in case of claims according to the product liability act nor in case we have guaranteed certain qualities. Above liability limitations as per § 8 section 1 and § 8 section 2 as well as the period of lim-

(1)  Payment shall be due ten days after the billing date as per § 8 section 3 shall not apply in case of wilful acts or gross negligence on our net value exceeds AU 500.00 - or thirty days after the billing date without discount. Pay- part. However, in case of gross negligence on the part of simple vicarious agents, the account in due time. In cases of cash on delivery or cash before delivery, we grant a dis- shall remain in effect. meant shall be considered to have been made in due time if it is made available in P/G our ability limitation as per § 8 section 2 as well as the period of Above liability limitations as per § 8 section 1 and § 8 section 2 as well as the period of limitations as per § 8 section 3 shall not apply in case of inability of impossibility to perform, provided we are responsible for such inability or impossibility to perform. (3)  If no other agreements are made, payments are set off against the oldest outstanding ac- (5)  Any other liability claims against us, regardless of the legal grounds, shall be excluded. (6)  If our liability is excluded or limited, such exclusion or limitation shall also apply to the per-For each written request for payment caused by default, we charge a fee of AU $450,00. liability of our legal representatives and our vicarious agents. (4) We accept bills only upon prior agreement.    

§ 9 Governing law - Place of performance - Jurisdiction

(1)  The legal relations between us and our customers are subject exclusively to the law of the (2)  Australia is the place of performance of our contractual obligations; this is also the place

Federal Australia. (3)  Our place of business in 4650 Maryborough, QLD, shall be the exclusive place of juris-

of performance of the customer's contractual obligations. diction in case there is no other legal, exclusive place of jurisdiction. January 2011

Retention of title /Policy