SIEMENS STANDARD TERMS AND CONDITIONS OF SALE FOR PRODUCTS
Version: 1.1 Siemens Standard Terms and Conditions of Sale for Products Date: 07/01/2016
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1. APPLICABLE TERMS. This Agreement governs the sale of equipment, components, parts, and materials provided
by Siemens (“Products”). Any applicable addenda, these terms, Siemens proposal, price quote, purchase order, or
acknowledgement issued by Siemens form the parties’ final agreement (“Agreement”). In the event of a conflict between
these documents, precedence shall apply in accordance with the order listed in the previous sentence. Siemens’ proposal,
offer or acceptance is conditioned on Buyer's acceptance of this Agreement. Any additional or conflicting terms in Buyer's
request for proposal, specifications, purchase order or any other written or oral communication are not binding on Siemens
unless separately signed by Siemens. Siemens’ failure to object to Buyers additional or conflicting terms does not operate
as a waiver of any terms contained in this Agreement.
2. PRICING & PAYMENT. Prices and payment terms are: (i) as stated in Siemens proposal, or if none are stated; (ii)
Siemens' standard prices in effect when Siemens receives Buyer’s purchase order; or if neither (i) or (ii) apply, then Siemens’
standard prices in effect when the Products ship.
(a) Payment. Unless stated in Siemens’ proposal, all payments are due net thirty (30) days from the invoice date in United
States Dollars.
(b) Credit Approval. All orders are subject to credit approval by Siemens. Siemens may modify, suspend or withdraw the
credit amount or payment terms at any time. If there is doubt as to Buyer’s financial condition, Siemens may withhold
manufacturing or shipment, require cash payments, or require other satisfactory security. Siemens may recover shipped
Products from the carrier pending such assurances.
(c) Installment Shipment. Where Products are delivered in shipments or only part of a shipment fails to comply with this
Agreement, the Buyer may only reject the non-compliant portion. Buyer will separately pay for each shipment. If Siemens
holds or stores Products for Buyer, it shall do so at Buyer's sole risk and expense.
(d) Taxes, Shipping, Packing, Handling. Unless stated in writing by Siemens, Siemens’ prices exclude charges for freight,
unloading, storage, insurance, taxes, excises, fees, duties or other government charges related to the Products. Buyer will pay
these amounts or reimburse Siemens. If Buyer claims a tax or other exemption or direct payment permit, Buyer will provide a
valid exemption certificate or permit and indemnify, defend and hold Siemens harmless from any taxes, costs and penalties
arising from same. Siemens' prices include the costs of its standard domestic packing only. Any packing deviation, including
U.S. Government sealed packing, will be charged to Buyer. Increases, changes (including in application), adjustments or
surcharges which may be incurred are for Buyer’s account.
(e) Late Payments. Late payments shall bear interest at an annual percentage rate of twelve percent (12%) or the highest
rate allowed by law, whichever is lower.
(f) Disputed Invoice. If Buyer disputes all or any portion of an invoice, it must first deliver written notice to Siemens of the
disputed amount and the basis for the dispute within twenty-one (21) days of receiving the invoice. Failure of Buyer to timely
notify Siemens of any dispute constitutes a waiver of Buyer’s claim. If Buyer only disputes a portion of the invoice, Buyer must
pay the undisputed portion in accordance with Article 2(a). Upon resolution of the dispute, Buyer must pay the invoice or the
remainder of the invoice, plus any accrued interest on the late payment.
(g) Suspension/Termination Right. Siemens may suspend work if an undisputed invoice is more than thirty (30) days past
due. Siemens may terminate this Agreement if an undisputed invoice is more than sixty (60) days past due. Unless
prohibited by law, Siemens may also terminate this Agreement immediately in the event of a material adverse change in
Buyer’s financial condition including, but not limited to, bankruptcy, insolvency, liquidation or similar financial condition.
3. DELIVERY; TITLE; RISK OF LOSS. Products will be delivered F.O.B. Siemens point of shipment with title and
risk of loss or damage passing to Buyer at that point. Buyer is responsible for all transportation, insurance and related
expenses. The related expenses shall include any taxes, duties or documentation fees. Siemens may make partial
shipments. Any shipping, delivery and installation dates are estimated dates only. Siemens is not liable for any loss or
expense incurred by Buyer or Buyer's customers if Siemens fails to meet its delivery schedule.
4. DEFERMENT AND CANCELLATION. Buyer has no right to defer shipment but may cancel this Agreement on thirty
(30) days written notice if Siemens has not already performed. If Buyer cancels this Agreement, it shall pay all cancellation
charges including, without limitation: (i) the full price for any finished Product; (ii) for partially completed product, the portion of
the price determined to be due by Siemens based on its percentage of completion of the Product; (iii) reasonable overhead and
profit; and (iv) any payments due subcontractors and/or suppliers for any materials, components or products ordered which
cannot be cancelled, refunded, or redirected for other beneficial use.
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5. TRANSPORTATION AND STORAGE. (a) When Products are ready for shipment, Siemens will: (i) inform Buyer,
and Buyer will then promptly give shipping instructions to Siemens; (ii) determine the method of transportation and shipment
routing; and (iii) ship the Products with freight prepaid by normal transportation. If Buyer fails to provide timely shipping
instructions, Siemens will ship the Products by normal transportation means to Buyer or to a storage location selected by
Siemens. Buyer will pay or reimburse any excess transportation charges for special or expedited transportation.
(b) If Products are placed into storage, delivery occurs and risk of loss transfers to Buyer when the Products are placed on
the carrier for shipment to the storage location. If the Products are to be stored in the facility where manufactured, delivery
occurs and risk of loss transfers to Buyer when placed in the storage location.
Buyer will pay all Siemens storage expenses, including but not limited to, preparation for and placement into storage,
handling, freight, storage, inspection, preservation, maintenance, taxes and insurance, upon receipt of an invoice(s) from
Siemens. When conditions permit and upon payment to Siemens of all amounts due, Buyer must arrange, at its expense,
to remove the Products from storage. Buyer bears the risk of loss, damage or destruction to Products in storage.
6. FORCE MAJEURE / DELAYS. If Siemensperformance is delayed by any cause beyond its reasonable control
(regardless of whether the cause was foreseeable), including without limitation acts of God, strikes, labor shortage or
disturbance, fire, accident, war or civil disturbance, delays of carriers, cyber-attacks, terrorist attacks, failure of normal
sources of supply, or acts or inaction of government, Siemens’ time of performance will be extended by a period equal to
the length of the delay plus any consequences of the delay. Siemens will notify Buyer within a reasonable time after
becoming aware of any such delay.
7. BUYER’S REQUIREMENTS. Siemens’ performance is contingent upon Buyer timely fulfilling all of its obligations
under this Agreement. These obligations include the Buyer supplying all documents and approvals needed for Siemens to
perform, including but not limited to technical information and data, drawing and document approvals, and necessary
commercial documentation. Siemens may request a change order for an equitable adjustment in prices and times for
performance, as well as for any additional costs or any delay resulting from the failure of Buyer or Buyer’s contractors,
successors or assigns to meet these obligations.
8. INDEMNITY. Siemens and Buyer (each as an “Indemnitor”) shall indemnify the other (“Indemnitee”) from and
against all third party claims alleging bodily injury, death or damage to a third party’s tangible property, but only to the extent
caused by the Indemnitor’s negligent acts or omissions. If the injury or damage is caused by the parties’ joint or contributory
negligence, the loss and/or expenses shall be borne by each party in proportion to its degree of fault. No part of the
Product(s) or Buyer’s site is considered third party property.
Indemnitee shall provide the Indemnitor with prompt written notice of any third party claims covered by this Article.
Indemnitor has the unrestricted right to select and hire counsel and the exclusive right to conduct the legal defense and/or
settle the claim on the Indemnitee’s behalf. The Indemnitee shall not make any admission(s) which might be prejudicial to
the Indemnitor and shall not enter into a settlement without the express permission of the Indemnitor.
9. WARRANTIES. (a) Warranties. Siemens warrants that: (i) each Product is free from defects in material and
workmanship; (ii) each Product materially conforms to Siemens' specifications that are attached to, or expressly
incorporated into this Agreement; and (iii) at the time of delivery, Siemens has title to each Product free and clear of liens
and encumbrances (collectively, the Warranties"). The Warranties do not apply to software furnished by Siemens. The
sole and exclusive warranties for any software are set forth in the applicable Software License/Warranty Addendum.
(b) Conditions to the Warranties. The Warranties are conditioned on: (i) no repairs, modifications or alterations being made
to the Product other than by Siemens or its authorized representatives; (ii) Buyer handling, using, storing, installing,
operating and maintaining the Product in compliance with any parameters or instructions in any specifications attached to,
or incorporated into this Agreement; (iii) compliance with all generally accepted industry standards; (iv) Buyer discontinuing
use of the Product after it has, or should have had, knowledge of any defect; (v) Buyer providing prompt written notice of
any warranty claims within the warranty period described below; (vi) at Siemens' discretion, Buyer either removing and
shipping the Product or non-conforming part thereof to Siemens, at Buyer's expense, or granting Siemens reasonable
access to the Products to assess the warranty claims; (vii) Product not having been subjected to accident (including force
majeure), alteration, abuse or misuse; and (viii) Buyer not being in default of any payment obligation.
(c) Exclusions from Warranty Coverage. The Warranties do not apply to any equipment not provided by Siemens under
this Agreement.
Any Product that is described as being experimental, developmental, prototype, or pilot is specifically excluded from the
Warranties and is provided to Buyer “as is” with no warranties of any kind. Normal wear and tear is excluded, including any
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expendable items that comprise part of the Product (such as fuses, light bulbs and lamps). Siemens does not warrant or
guarantee that any Product will be secure from cyber threats, hacking or similar malicious activity. Products that are
networked, connected to the internet, or otherwise connected to computers or other devices must be appropriately protected
by Buyer and/or end user against unauthorized access.
(d) Warranty Period. Buyer must provide written notice of any claims for breach of Warranties by the earlier of twelve (12)
months from initial operation of the Product or eighteen (18) months from shipment. Additionally, absent written notice
within the warranty period, any use or possession of the Product after expiration of the warranty period is conclusive
evidence that the Warranties have been satisfied.
(e) Remedies. Buyer's sole and exclusive remedies for breach of the Warranties are limited, at Siemens' discretion, to
repair or replacement of the Product, or its non-conforming parts, within a reasonable time period, or refund of all or part of
the purchase price. The warranty on repaired or replaced parts is limited to the remainder of the original warranty period.
Unless Siemens agrees otherwise in writing, Buyer will be responsible for any costs associated with: (i) gaining access to
the Product; (ii) removal, disassembly, replacement, installation, or reinstallation of any equipment, materials or structures
to permit Siemens to perform its warranty obligations; (iii) transportation to and from the Siemens factory or repair facility;
and (iv) damage to equipment components or parts resulting in whole or in part from non-compliance by the Buyer with
Article 9(b) or from their deteriorated condition. All exchanged Products replaced under this Warranty will become the
property of Siemens.
(f) Transferability. The Warranties are only transferable during the warranty period and only to the Product’s initial end-
user.
(g) THE WARRANTIES IN THIS ARTICLE 9 ARE SIEMENS' SOLE AND EXCLUSIVE WARRANTIES AND ARE SUBJECT
TO THE LIMITS OF LIABILITY IN ARTICLE 10 BELOW. SIEMENS MAKES NO OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, COURSE OF DEALING AND USAGE OF TRADE.
10. LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY,
SIEMENS IS NOT LIABLE, WHETHER BASED IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE),
STRICT LIABILITY, INDEMNITY OR ANY OTHER LEGAL OR EQUITABLE THEORY, FOR: LOSS OF USE, REVENUE,
SAVINGS, PROFIT, INTEREST, GOODWILL OR OPPORTUNITY, COSTS OF CAPITAL, COSTS OF REPLACEMENT
OR SUBSTITUTE USE OR PERFORMANCE, LOSS OF INFORMATION AND DATA, LOSS OF POWER, VOLTAGE
IRREGULARITIES OR FREQUENCY FLUCTUATION, CLAIMS ARISING FROM BUYER’S THIRD PARTY CONTRACTS,
OR FOR ANY TYPE OF INDIRECT, SPECIAL, LIQUIDATED, PUNITIVE, EXEMPLARY, COLLATERAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, OR FOR ANY OTHER LOSS OR COST OF A SIMILAR TYPE.
SIEMENS’ MAXIMUM LIABILITY UNDER THIS AGREEMENT IS THE ACTUAL PURCHASE PRICE RECEIVED BY
SIEMENS FOR THE PRODUCT THAT GAVE RISE TO THE CLAIM.
BUYER AGREES THAT THE EXCLUSIONS AND LIMITATIONS IN THIS ARTICLE 10 WILL PREVAIL OVER ANY
CONFLICTING TERMS AND CONDITIONS IN THIS AGREEMENT AND MUST BE GIVEN FULL FORCE AND EFFECT,
WHETHER OR NOT ANY OR ALL SUCH REMEDIES ARE DETERMINED TO HAVE FAILED OF THEIR ESSENTIAL
PURPOSE. THESE LIMITATIONS OF LIABILITY ARE EFFECTIVE EVEN IF SIEMENS HAS BEEN ADVISED BY BUYER
OF THE POSSIBILITY OF SUCH DAMAGES. THE WAIVERS AND DISCLAIMERS OF LIABILITY, RELEASES FROM
LIABILITY AND LIMITATIONS ON LIABILITY EXPRESSED IN THIS ARTICLE 10 EXTEND TO SIEMENS’ AFFILIATES,
PARTNERS, PRINCIPALS, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, SUPPLIERS, AGENTS, AND
SUCCESSORS AND ASSIGNS.
11. PATENT AND COPYRIGHT INFRINGEMENT. Siemens will, at its option and expense, defend or settle any suit
or proceeding brought against Buyer based on an allegation that any Product or use thereof for its intended purpose
constitutes an infringement of any Patent Cooperation Treaty country member’s patent or misappropriation of a third party’s
trade secret or copyright in the country where the Product is delivered by Siemens. Buyer will promptly give Siemens written
notice of the suit or proceeding and the authority, information, and assistance needed to defend the claims. Siemens shall
have the full and exclusive authority to defend and settle such claim(s) and will pay the damages and costs awarded in any
suit or proceeding so defended. Buyer shall not make any admission(s) which might be prejudicial to Siemens and shall
not enter into a settlement without Siemens’ consent. Siemens is not responsible for any settlement made without its prior
written consent. If the Product, or any part thereof, as a result of any suit or proceeding so defended is held to constitute
infringement or its use by Buyer is enjoined, Siemens will, at its option and expense, either: (i) procure for Buyer the right
to continue using said Product; (ii) replace it with substantially equivalent non-infringing Product; or (iii) modify the Product
so it is non-infringing.
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Siemens will have no duty or obligation under this Article 11 if the Product is: (i) supplied according to Buyer's design or
instructions and compliance therewith has caused Siemens to deviate from its normal course of performance; (ii) modified
by Buyer or its contractors after delivery; or (iii) combined by Buyer or its contractors with devices, methods, systems or
processes not furnished hereunder and by reason of said design, instruction, modification, or combination a suit is brought
against Buyer. In addition, if by reason of such design, instruction, modification or combination, a suit or proceeding is
brought against Siemens, Buyer must protect Siemens in the same manner and to the same extent that Siemens has agreed
to protect Buyer under this Article 11.
THIS ARTICLE 11 IS AN EXCLUSIVE STATEMENT OF SIEMENS’ DUTIES AND BUYER’S REMEDIES RELATING TO
PATENTS, TRADE SECRETS AND COPYRIGHTS, AND DIRECT OR CONTRIBUTORY INFRINGEMENT THEREOF.
12. CONFIDENTIALITY. (a) Both during and after the term of this Agreement, the parties will treat as confidential all
information obtained from the disclosing party and all information compiled or generated by the disclosing party under this
Agreement for the receiving party, including but not limited to business information, manufacturing information, technical
data, drawings, flow charts, program listings, software code, and other software, plans and projections. Neither party may
disclose or refer to the work to be performed under this Agreement in any manner that identifies the other party without
advance written permission. However, Siemens has the right to share confidential information with its affiliates and
subcontractors, provided those recipients are subject to the same confidentiality obligations set forth herein.
(b) Nothing in this Agreement requires a party to treat as confidential any information which: (i) is or becomes generally
known to the public, without the fault of the receiving party; (ii) is disclosed to the receiving party, without obligation of
confidentiality, by a third party having the right to make such disclosure; (iii) was previously known to the receiving party,
without obligation of confidentiality, which fact can be demonstrated by means of documents which are in the possession
of the receiving party upon the date of this Agreement; (iv) was independently developed by receiving party or its
representatives, as evidenced by written records, without the use of discloser’s confidential information; or (v) is required to
be disclosed by law, except to the extent eligible for special treatment under an appropriate protective order, provided that
the party required to disclose by law will promptly advise the originating party of any requirement to make such disclosure
to allow the originating party the opportunity to obtain a protective order and assist the originating party in so doing.
(c) It is Siemens’ policy not to unlawfully or improperly receive or use confidential information, including trade secrets,
belonging to others. This policy precludes Siemens from obtaining, directly or indirectly from any employee, contractor, or
other individual rendering services to Siemens confidential information of a prior employer, client or any other person which
such employee, contractor, or individual is under an obligation not to disclose. Buyer agrees to abide by this policy.
13. COMPLIANCE WITH LAWS. The parties agree to comply with all applicable laws and regulations, including but
not limited to those relating to the manufacture, purchase, resale, exportation, transfer, assignment or use of the Products.
14. CHANGES IN WORK. No change will be made to the scope of work unless Buyer and Siemens agree in writing
to the change and any resulting price, schedule or other contractual modifications. If any change to any law, rule, regulation,
order, code, standard or requirement impacts Siemens’ obligations or performance under this Agreement, Siemens may
request a change order for an equitable adjustment in the price and time of performance.
15. NON-WAIVER. Any waiver by a party of strict compliance with this Agreement must be in writing, and any failure by
the parties to require strict compliance in one instance will not waive its right to insist on strict compliance thereafter.
16. MODIFICATION OF TERMS. This Agreement may only be modified by a written instrument signed by authorized
representatives of both parties.
17. ASSIGNMENT. Neither party may assign all or part of this Agreement, or any rights or obligations under this
Agreement, without the prior written consent of the other; but either party may assign its rights and obligations, without recourse
or consent, to any parent, wholly owned subsidiary, or affiliate or affiliates successor organization (whether as a result of
reorganization, restructuring or sale of substantially all of a party’s assets). However, Buyer shall not assign this Agreement to:
a competitor of Siemens; an entity in litigation with Siemens; or an entity lacking the financial capability to satisfy Buyer’s
obligations. Any assignee expressly assumes the performance of any obligation assigned. Siemens may grant a security
interest in this Agreement and/or assign proceeds of this Agreement without Buyer’s consent.
18. APPLICABLE LAW AND JURISDICTION. This Agreement is governed by and construed in accordance with the
laws of the State of Delaware, without regard to its conflict of laws principles. The application of the United Nations
Convention on Contracts for the International Sale of Goods is excluded. BOTH SIEMENS AND BUYER KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVE ALL RIGHTS TO A JURY TRIAL IN ANY ACTION OR PROCEEDING RELATED
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IN ANY WAY TO THIS AGREEMENT. Each party agrees that claims and disputes arising out of this Agreement must be
decided exclusively in a federal or state court of competent jurisdiction located in a state in which either Buyer or Siemens
maintains its principal place of business. Each party submits to the personal jurisdiction of such courts for the purpose of
litigating any claims or disputes.
19. SEVERABILITY. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions
will not in any way be affected or impaired. A court may modify the invalid, illegal or unenforceable provision to reflect, as closely
as possible, the parties’ original intent.
20. EXPORT / IMPORT COMPLIANCE. Buyer acknowledges that Siemens is required to comply with applicable export /
import laws and regulations relating to the sale, export, import, transfer, assignment, disposal and use of the Products, including
any export / import license requirements. Buyer agrees that Products will not at any time directly or indirectly be used, exported,
imported, sold, transferred, assigned or otherwise disposed of in a manner which will result in non-compliance with any export /
import laws and regulations. Siemens’ continuing performance hereunder is conditioned on compliance with such export /
import laws and regulations at all times.
21. PRODUCT RETURNS. Prior to the return of any Product to Siemens, Buyer must identify the Product or portion
thereof and obtain written authorization and shipping instructions from Siemens. Siemens has the right, in its sole discretion,
to permit or reject any such return. Siemens’ authorization to return any Product to Siemens does not relieve Buyer of its
obligation to pay for such Product. Upon receipt, inspection, and acceptance of the Product by Siemens, Siemens will issue
a credit memo to Buyer, less applicable re-stocking fees. Siemens reserves the right to reject any hazardous material.
22. NUCLEAR. Unless expressly authorized in writing by Siemens, the Products must not be used in or in connection
with a nuclear facility or application. If Buyer uses any Product in connection with any nuclear facility or activity, it does so
at its own risk and Buyer will indemnify, defend and hold Siemens harmless, and waives and will require its insurers to waive
all right of recovery against Siemens for any damage, loss, destruction, injury or death resulting from a “nuclear incident,
as defined in the Atomic Energy Act of 1954, as amended, whether or not due to Siemens’ negligence. Siemens’ consent
to Buyer’s use of the Product in connection with any nuclear facility or application will be subject to additional terms and
conditions that Siemens deems necessary to protect its interests.
23. SURVIVAL. The articles titled Patent and Copyright Infringement, Limitation of Liability,” “Confidentiality,
“Delivery; Title; Risk of Loss, “Export / Import Compliance,” and “Nuclear” survive termination, expiration or cancellation of
this Agreement.