General Terms and Conditions of Sale

1. General
 1.1 Any delivery of goods and services by Nanodrag as the seller to the customer (“Customer”) shall be subject to the Terms and Conditions
set forth herein to the extent no other agreements have been explicitly made. The Customer’s general terms and conditions that are
inconsistent with the Terms and Conditions set forth herein shall only be applicable to the extent Nanodrag has explicit approved in writing.
1.2 Any claims held against Nanodrag may not be assigned to third parties. Section 354a of the German Commercial Code (HGB) shall
remain unaffected.
1.3 The sale, resale and the disposal of goods and services including any associated technology or documentation may be governed by German,
EU, US export control regulations as well as by the export control regulations of further countries. Any resale of goods to embargoed countries
or to denied persons or persons that use or may use the goods for military purposes, ABC weapons or nuclear technology is subject to an
official license. Customer declares with his order the conformity with such statutes and regulations and that the goods will not directly or
indirectly delivered into countries that prohibit or restrict the import of such goods. Customer declares to have obtained all licenses required
for export and import.

2. Information, Consultancy
Information and consultancy in relation to Nanodrag’ goods and services is provided as deemed appropriate from existing experience. Any
values quoted as part thereof, especially performance data, represent average values which have been determined through experiments under
standard laboratory conditions. Nanodrag cannot assume any commitment for its products to precisely meet the quoted values and areas of
application. Section 10 of these Terms and Conditions governs any issues of liability.

3. Prices
3.1 The prices quoted in the order confirmation of Nanodrag shall solely apply. Additional services will be invoiced separately.
3.2 All prices are quoted as net prices and do not include value added tax, which is to be paid additionally by the Customer in the amount
specified by applicable law.
3.3 Unless otherwise expressly agreed, the prices are quoted ex works of the Nanodrag company using these Terms and Conditions. The
Customer shall bear all additional freight costs, packing costs in excess of standard packing, public fees (including withholding taxes) and
duties.

4. Delivery
4.1 Unless otherwise expressly agreed, Nanodrag shall deliver ex works (EXW INCOTERMS 2010) of the Nanodrag company using these
Terms and Conditions.
4.2 Delivery periods shall only be binding if expressly agreed in writing. Delivery periods shall begin on the date of the order confirmation by
Nanodrag, however, in no case prior to settlement of all details relating to an order including the furnishing of any required official certificates.
Delivery periods shall be deemed to be met on timely notification of readiness to ship if the goods cannot be dispatched in time through no
fault of Nanodrag.
4.3 With respect to delivery periods and dates, which are not expressly defined as fixed in the order confirmation, the Customer may -two
weeks after expiry of such a delivery period or date- set an adequate grace period for delivery. Nanodrag may only be deemed to be in default
after expiry of such a grace period.
4.4 Without prejudicing Nanodrag’ rights from Customer’s default, delivery periods and dates shall be deemed to be extended by the period
of time during which the Customer fails to comply with his obligations towards Nanodrag. In case nanodrag does not comply with its obligations
Nanodrag
shall only be liable for all types of damages in accordance with section 10 of these Terms and Conditions.
4.5 Nanodrag reserves the right to carry out a delivery using its own delivery organization.
4.6 Nanodrag may perform partial deliveries and render partial services if such action would not unreasonably affect the Customer.
4.7 The Customer may rescind the contract after two unsuccessful grace periods unless the hindrance is merely temporary in nature and a
delay would not unreasonably affect the Customer.
4.8 Any contractual or statutory right of a Customer to rescind the contract, which the Customer fails to exercise within a reasonable period
of time set by Nanodrag, shall be forfeited.

5. Shipment, Passing of Risk
5.1. Unless otherwise expressly agreed, shipment shall always be carried out at the Customer’s risk. The risk shall pass to the Customer as
soon as the goods have been handed over to the person executing the shipment.
5.2 If a shipment is delayed for reasons to be attributed to the Customer, the risk of accidental deterioration, loss and destruction shall pass
to the Customer on notification of Nanodrag’ readiness to ship. Required storage costs after passing of risk shall be borne by the Customer.
This shall not affect any other claims.
5.3 If the Customer defaults in accepting, Nanodrag shall be entitled to claim refund of any expenditure associated therewith and the risk of
accidental deterioration, loss and destruction shall pass to the Customer.

6. Payment
6.1 Payment shall be made in full within 30 days from the date of the invoice. Payment shall be considered to have been made on the day the
payable sum is received by Nanodrag. Bills of exchange and cheques shall not be deemed payment until after they have been honored and
will be accepted without any obligation to make timely presentation and timely protest.
6.2 Immediately upon default of payment – or from the due date if Customer is a merchant within the meaning of the German Commercial
Code (HGB) – Nanodrag reserves the right to claim a higher actual damage.
6.3 Customers may only withhold or offset due payments against their own counter-claims if these are uncontested or have been found to be
legally binding.
6.4 Any of Nanodrag’ receivables shall be immediately payable in the event of a default in payment, a notice given in protest against a bill of
exchange or suspension of the Customer’s payments, independent of the term of the bills of exchange which may have already been accepted.
In any of these aforementioned cases, Nanodrag shall also be able to perform remaining deliveries only against advance payment or provision
of security, and, if no such advance payment is made or security provided within a two-week time period, to cancel the contract without fixing
another extension term. This shall not affect any further claims.

7. Retention of Title
7.1 Delivered goods shall fully remain property of Nanodrag (goods sold subject to retention of title) until all receivables, on whatever legal
grounds, have been fully paid up.
7.2 In case of processing, combining or mixing of goods subject to retention of title with goods of the Customer, Nanodrag shall be entitled to
co-ownership of the new property inasmuch as the invoiced value of goods sold with retention of title relates to the value of the other involved
goods. Where Nanodrag co-ownership becomes null and void due to processing, combining or mixing with other goods, the Customer
immediately assigns to Nanodrag those of his rights of ownership in the new property or compound matter which correspond to the amount
of the value of goods subject to retention of title by Nanodrag. Customer shall also be responsible for holding such rights in safe custody on
the behalf of Nanodrag and at Customer’s own expense. Any rights to co-ownership created as a result of such processing, combining or
mixing shall be subject to section 7.1 of these Terms and Conditions.
7.3 The Customer may resell, process, combine or mix with other property, or otherwise integrate goods under retention of title in normal
business operations, as long as the Customer is not defaulting. The Customer shall be prohibited from taking any other disposition regarding
goods for which Nanodrag retains title. Nanodrag shall be promptly notified about any hypothecation or other seizure of goods under retention
of title through a third party. All intervention costs will be charged to the Customer if and to the extent that they cannot be collected from such
third party. If the Customer grants his buyer additional time for payment of the sales price, Customer shall reserve title in goods resold with
retention of Nanodrag’ title under the same terms which Nanodrag has applied when delivering such goods with retention of title. The
Customer shall be prohibited from any other kind of resale.
7.4 The Customer shall immediately assign to Nanodrag any receivables resulting from a resale of goods initially sold with retention of
Nanodrag’ title. These will be used to substitute the goods under retention of title as collateral of the equivalent amount. The Customer shall
only be entitled and authorized to resell such goods if his receivables therefrom accrue to Nanodrag.
7.5 If the Customer resells goods under retention of our title together with goods from other suppliers at a certain total price, Customer shall
assign to Nanodrag his receivables from such resale in the same amount as stated in the invoice for goods initially sold with retention of title
by Nanodrag.
7.6 If an assigned receivable is included into a current account, the Customer immediately assigns to Nanodrag that part of the balance which
is equivalent to the amount of such receivable, including the final balance from current account operations.
7.7 Until Nanodrag gives notice of revocation, the Customer shall be authorized to collect receivables assigned to Nanodrag. Nanodrag shall
be entitled to such revocation if the Customer fails to meet his payment obligations under the business relationship with Nanodrag in due
course. If the preconditions for exercising a revocation right are fulfilled, the Customer shall promptly notify Nanodrag of any assigned
receivables with respective debtors, furnish all data required for collection of such receivables, hand over all related documentation and advise
the debtors of such assignment. Nanodrag reserves the right to personally advise the debtors of such assignment.
7.8 If the value of the collateral deposited for the benefit of Nanodrag exceeds the amount of secured claims by a total of more than fifty (50)
per cent, the Customer shall be entitled to demand that Nanodrag insofar release securities of the choice of Nanodrag.
7.9 If Nanodrag claims retention of title, this shall only be understood as rescind of the contract if expressly stated so by Nanodrag in writing.
The Customer’s right to possess goods under retention of title shall be null and void if he fails to meet his contractual obligations.

8. Warranty
8.1 The goods claimed to be defective shall be returned to Nanodrag for examination in their original or equivalent packaging. Nanodrag shall
remedy defects if the warranty claim is valid and within the warranty period. It is at Nanodrag’ discretion whether Nanodrag remedies the
defect by repair or replacement. Nanodrag shall only bear the costs necessary to remedy the defect.
8.2 Nanodrag shall be entitled to refuse to remedy defects in accordance with Nanodrag’ statutory rights. Nanodrag may refuse to remedy
defects if the Customer has not complied with Nanodrag’ request to return the goods claimed to be defective.
8.3 The Customer shall be entitled to rescind the contract or reduce the contract price in accordance with his statutory rights, however, the
Customer shall not be entitled to rescind the contract or to reduce the contract price, unless the Customer has previously given Nanodrag
twice a reasonable period to remedy the defect which Nanodrag has failed to observe, unless setting of such a period to remedy defects is
dispensable. In the event of rescission, Customer shall be liable for any intentional or negligent actions that cause destruction or loss of the
goods as well as for failure to derive benefits from the goods.
8.4 If Nanodrag maliciously withholds disclosure of a defect or gives a quality warranty in accordance with section 444 of the German Civil
Code (a representation by the seller that the goods will have certain qualities at the time the risk passes and acceptance by seller of strict liability
in the event that they do not), the Customer’s rights shall be governed exclusively by the statutory provisions.
8.5 Any rights of the Customer to receive damages or compensation shall be governed by the provisions in section 10 of these Terms and
Conditions.
8.6 Specifications of Nanodrag’ goods, especially pictures, drawings, data about weight, measure and capacity contained in offers and brochures
are to be considered as average data. Such specifications and data shall in no way constitute a quality warranty but merely a description or
labelling of the goods.
8.7 Unless limits for variations have expressly been agreed in the order confirmation, such variations shall be admissible that are customary
within the trade.
8.8 Nanodrag shall not accept any liability for defects in the goods supplied if they are caused by normal wear and tear. The Customer shall
have no rights against Nanodrag in respect of defects in goods sold as lower-class or used goods.
8.9 Any warranty shall be void if operating or maintenance instructions are not observed, if changes are made to deliveries or services, if parts
are replaced or materials used that are not in accordance with the original product specifications by Nanodrag, unless the Customer can show
that the defect in question resulted from another cause.
8.10 Provided that the Customer is a merchant, the Customer shall be obliged to notify defects to Nanodrag in writing or via fax.
8.11 The limitation period for claims for defects shall be 12 months (24 months in case the Customer is a consumer). This shall not apply to
Customer’s claims for damages based on damages of body or health caused by a defect for which Nanodrag is responsible or claims for
damages based on intentional or grossly negligent conduct by Nanodrag.

9. Limited Liability
9.1 In case of a breach of contractual obligations, defective deliveries or tortuous acts, Nanodrag shall only be obliged to compensate damages
or expenses – subject to any other contractual or statutory conditions for liability – if Nanodrag has acted intentionally or with gross negligence
or in cases of minor negligence, if such negligence results in the breach of an essential contractual duty (a duty the breach of which puts the
fulfilment of the purpose of the contract at risk). However, in case of minor negligence, Nanodrag’ liability shall be limited to typical damages
which are foreseeable at the time of the conclusion of the contract.
9.2 The liability of Nanodrag for losses caused by late delivery due to minor negligence shall be limited to 5% of the agreed purchase price.
9.3 The exclusions and limitations of liability in sections 10.1 – 10.2 shall not apply in cases of a quality warranty in accordance with section
444 of the German Civil Code (see section 9.4), in cases where Nanodrag has maliciously failed to disclose a defect, in case of damages
resulting from death, injury to health or physical injury or where the laws on product liability impose overriding liabilities which cannot be
excluded.
9.4 The limitation period for claims against Nanodrag – based on whatever legal ground – shall be 12 months (24 months in case Customer
is a consumer) from the date of delivery to the Customer and in case of tortious claims, 12 months (24 months in case Customer is a consumer)
from the date the Customer becomes aware or could have become aware of the grounds giving rise to a claim and the liable person, had the
Customer not been grossly negligent. The provisions in this clause shall neither apply in cases of intentional or gross negligent breaches of
duty nor shall they apply in cases referred to in section 10.3 of these Terms and Conditions.
9.5 If the Customer is an intermediary seller of the goods obtained from Nanodrag and the final purchaser of the goods is a consumer, the
limitation period for any action of recourse against Nanodrag by the Customer shall be the period specified by statute.

10. Industrial Property Rights, Copyrights
10.1 In the event of claims against the Customer because of breach of an industrial property right or a copyright in using deliveries or services
supplied by Nanodrag in accordance with the contractually defined manner, Nanodrag shall be responsible to obtain the right for the Customer
to continue using such deliveries or services, provided that the Customer gives immediate written notice of such third-party claims and
Nanodrag’ rights to take all appropriate defensive and out-of-court actions are reserved. If, despite such actions, it proves impossible to
continue using the deliveries or services supplied by Nanodrag under reasonable economic conditions, it shall be understood as agreed that
Nanodrag may, at the discretion of Nanodrag, modify or replace the particular delivery or service for removal of a legal deficiency, or take
back such delivery or service with refunding of the sales price previously paid to Nanodrag less a certain deduction to account for the age of
the delivery or service in question.
10.2 The Customer shall have no further claims alleging infringement of industrial property or copyrights provided Nanodrag has neither
violated essential contractual duties nor intentionally or grossly negligently breached contractual duties. Nanodrag shall have no obligations in
accordance with section 10.1 in case breaches of rights are caused by exploiting the deliveries or services supplied by Nanodrag in any other
manner than contractually defined or by operating these together with any other than Nanodrag deliveries or services.

11. Confidentiality
11.1 Unless otherwise expressly stipulated in writing, no information provided to Nanodrag in connection with orders shall be regarded as
confidential, unless their confidential nature is obvious.
11.2 Nanodrag points out that personal data in relation to the contractual relationship may be stored by Nanodrag and may be transferred to
companies associated with Nanodrag in the Nanodrag Group.

Definitions In these conditions:
1- ”Nanodrag” means Nanodrag technology GmbH the company supplying the goods or services, or a subsidiary.
2- ”Customer” means the individual, company or other party with whom the seller contracts.
3- “Contract” means the contract order for the purchase of goods or services.