General Terms of Hire

1. Subject-Matter of the Contract:
1.1. Lessor hires out to Hirer the hired objects listed in the enclosed Hire Contract under the terms and conditions referred to therein as follows. During the term of the Hire Contract, Lessor is authorised to replace the hired objects with another equivalent object. Lessor shall bear the transportation and other costs incurred as a result thereof.

2. Delivery:
2.1. Lessor shall bear the costs for delivery (freight, insurance, etc.), installations or other ancillary costs, unless said costs are included in the basic hire calculation.
2.2. Hirer shall take delivery of the contractually delivered hired object immediately and notify Lessor in writing that delivery has been taken.
2.3. Hirer shall report immediately any defects of the hired object.

3. Renting:
3.1. Hirer is obligated to pay the hire specified in the enclosed Hire Contract during the agreed upon hire period. The hire period starts on the date Hirer takes delivery of the hired object.
3.2. The hire is due monthly in advance, payable always on the first day of the month.
3.3. All payments effected by Hirer are subject to the statutory rate of VAT.
3.4. Set-offs and counter-claims are permissible only, provided they are directly related to the subject matter of the Contract, legally binding or undisputed.

4. Maintenance and Use of the Hired Object:
4.1. Hirer shall bear the operating and maintenance costs of the hired object. Hirer shall indemnify Lessor against all third-party claims in connection with the acquisition, ownership and use of the hired object.
4.2. Hirer shall keep the hired object in a proper and functional condition as stipulated herein - with the exception wearing parts - and perform general repairs at its own cost.
4.3. Hirer will use the hired object in accordance with Lessor's instructions for use and take good care of it. Furthermore, Hirer will comply with all public regulations concerning the use of the hired object and indemnify Lessor against any claims from violations thereof.
4.4. Improvements or any other changes of the hired object require Lessor's approval, which may be denied only for a sound reason. Unless such improvements have been removed by Hirer at Hirer's own cost upon termination of this Contract and return the hired object to its original condition, said improvements shall be transferred to Lessor without compensation.

5. Bearing the Risk:
5.1. Subject to the provisions stipulated in item 2.2, Hirer carries the risk for damage, destruction, loss and theft as of the acceptance date of the hired object. If one of the above events occurs, it shall not release Hirer from its rent obligation. Hirer is to be notified immediately after such an event. In this case, Section 542 German Civil Code shall not prevail.
5.2. Hirer is obligated to replace the hired object in question immediately at its own cost by a functional or similar object, which shall become Lessor's property, or to repair the damaged object. Instead of a replacement or repair, Lessor, however, may demand a reasonable deduction of unaccrued interest plus the replacement value. Any potential realisation of proceeds or compensation payments will not be charged.

6. Insurance:
6.1. Upon talking delivery, Hirer shall insure at their own cost the hired object at the original value and against the usual risks, especially against fire, theft, and water pipe damage, such that in a damaging event the insurance benefits are paid to Lessor. Hirer shall immediately submit to Lessor the corresponding insurance policies in Lessor's name. Notwithstanding Hirer's obligation according to item 4.1, Hirer shall take out a further adequate liability insurance for the hired object.
6.2. The insurance company's compensatory payment shall, at Lessor's option, be credited to Hirer's payment obligations or Hirer's other contractual indemnifications.

7. Access by Third Parties:
7.1. Hirer shall indemnify and or vacate the hired object for access by third parties (e.g. compulsory enforcement measures) and notify Lessor immediately of having submitted the corresponding documents. This shall also apply when initiation an execution of judgment on the real property unit on which the hired object is located.

8. Hire extension:
8.1. If Hirer has completed the Hire Contract to the end of the hire period, and Lessor will be willing to extend the Hire Contract, provided Hirer requests such an extension at the latest three months before the hire period expires.

9. Termination for an Important Reason:
9.1. Lessor is authorised to take back the hired object immediately at Lessor's option, if Hirer stops its payments or, on account of its assets situation, files for or initiates bankruptcy or composition proceedings, or if its liability base is considerable impaired compared with the situation that existed at the time of concluding the Contract (reduction of the share or nominal capital, withdrawal of personally liable partners, change of company owner, etc.); on account of a its deteriorating financial situation Hirer is no longer able to guarantee payment of the monthly hire in due time, is in arrears with the monthly hire by more than one month, or does not meets its other contractual obligations within two weeks after receiving a reminder. If Hirer has balanced the overdue hire amounts and the costs to be reimbursed to Lessor according to item 9.2, Hirer may request Lessor to return the hired object for further use; terminate the Hire Contract without notice and demand the cash equivalent as compensation for the still outstanding hire payments, including the replaceable value. Lessor shall determine cash value by applying a reasonable interest rate according to Section 315 German Civil Code. Lessor shall credit to Hirer the net revenue realized from any respective other use of the hired object up to the amount of the damages paid by Hirer.
9.2. Furthermore, Hirer is obligated to reimburse all costs, expenses, damages and losses, especially costs for legal prosecution, which Lessor is obligated to initiate because of one of the preceding occurrences or actions. Hirer shall notify Lessor immediately, as soon as one of the preceding occurrence materialises and, at the same time, identify the hired object clearly and acceptably as the Lessor's property. If Hirer does not surrender the hired object immediately, Lessor is authorised to access Hirer's premises and take possession of the hired object, subject to the exclusion of any liability.

10. Return of the Hired Object:
10.1. Upon termination of the hire relationship, Hirer shall return to Lessor the hired object at its own expense and in a perfect condition - apart from normal wear - and to transport, transport insurance paid, the hired object to a domestic destination to be determined by Lessor. Hire is not entitled to a retention or lien. The hired object shall be deemed to have been returned in a perfect condition only if Lessor issues a written acknowledgment upon returning the hired object.

11. Miscellaneous Provisions:
11.1. An assignment of Hirer's claims from this Contract requires Lessor's approval. Lessor is authorised to assign its rights and obligations of this Contract individually or overall to a third party.
11.2. If Hirer repeatedly is in arrears with its hire, Lessor will be allowed to request information about Hirer's financial situation; in particular, Hirer shall permit Lessor to inspect Hirer's recent financial transactions.
11.3. Lessor or its agent shall be allowed to access the hired object at any time, in order to inspect its condition, subject to a reasonable advance notice period.
11.4. Hirer shall indemnify Lessor against all damage claims directed against Lessor and owner of the hired object.
11.5. Should any individual provision be or become invalid, this shall not affect the validity of the remaining of this Contract. The invalid provision shall be replaced by an effective provision coming as close as possible to the parties' intent.
11.6. This Contract contains all agreements of the parties in connection with the renting of the object. Any changes hereto must be made in writing. Ancillary agreements and reservations shall be valid only upon Lessor's written approval.
11.7. The jurisdictional venue and the place of performance are Tostedt, provided our contracting party is a merchant within the scope of Sections 1 ff. German Commercial Code.