I. Application of these International Purchasing Conditions

1. These International Purchasing Conditions apply to all suppliers of LR Health & Beauty Systems GmbH - hereinafter referred to as LR - whose place of business concluding the contract is not in Germany. For suppliers, whose place of business is in Germany, LR’s General Purchasing Conditions (Allgemeine Einkaufsbe-dingungen) apply, which will be forwarded on request.

2. These International Purchasing Conditions apply to all contracts which are concluded as of October 1st, 2025, and whose preponderant object is the delivery of goods to LR. Additional obligations assumed by the supplier do not affect the application of these International Purchasing Conditions.

3. Conflicting or differing terms of business of the supplier do not bind LR, even though LR does not object or unconditionally renders performance or accepts the supplier’s performance. Equally, LR is neither bound, insofar as the terms of business of the supplier, irrespective of the contents of these International Purchasing Conditions, deviate from statutory provisions.

II. Formation of the Contract

1. The supplier is under an obligation to give written notice to LR prior to the formation of the contract if the goods to be delivered are not fit without restrictions for the purpose goods of the same description would ordinarily be used for, or for the purpose made known to the supplier or for the purpose provided in the contract or if a risk to health, safety or the environment or a risk of atypical damages or unusual amounts of loss might be associated with the goods to be delivered which the supplier knows or ought to know. Furthermore, the supplier is under an obligation to give written notice to LR prior to the formation of the contract if statements regarding the goods to be delivered made by the supplier or by third parties in adverts, prospectuses or other public announcements whether in or outside Germany which the supplier knows or ought to know, do not apply in every respect.

2. Offers of the supplier must be set out in writing. If the supplier’s offer deviates from the inquiry or order submitted by LR, the supplier will emphasize the deviations as such. Illustrations and drawings accompanying the inquiry or order as well as details of amounts, size and weight are binding.

3. All orders, in particular also those placed by employees of LR, will become binding exclusively through LR’s written order confirmation. The actual taking delivery of the goods, the payment for such goods or any other conduct of LR or silence does not allow the supplier to assume the formation of the contract. LR can dispatch such written order confirmation up to and including fourteen (14) calendar days after the supplier’s offer has been received by LR. Until this time, the supplier’s offer is irrevocable.

4. LR’s written order confirmation becomes effective as soon as it is received by the supplier. In any case, the supplier shall inform LR without delay, if the written order confirmation is not received by him within seven (7) calendar days after its date of issue. If, however, LR requires the supplier to sign LR's order confirmation, the contract becomes effective only if a copy of the order confirmation validly signed by the supplier is received by LR within a period of fourteen (14) calendar days from the date of its issue.

5. LR’s written order confirmation sets out all the terms of the contract and brings the contract into effect even if - apart from the description of goods, purchase price and quantity to be delivered - it deviates from the offer or other declarations of the supplier in any other respect, especially with reference to the exclusive application of these International Purchasing Conditions. The contract will only fail to come into existence if the supplier objects in writing that LR’s order confirmation is not completely consistent with the declarations of the supplier, specifies the inconsistencies in writing and the objection is received by LR within a short time, at the latest seven (7) calendar days, after receipt of the written order confirmation by the supplier.

6. Any restriction of LR's legal rights or of the rights granted by these International Purchasing Conditions, namely any limitation to or any exclusion of statutory remedies, guarantees, warranties or assurances by the supplier in relation to the goods or the execution of the contract, require in each individual case the express and written agreement of the parties.

7. Order confirmations or standard terms and conditions sent or referred to by the supplier after LR’s written order confirmation remain without effect without any objection by LR being necessary. Neither the actual taking delivery of the goods, their payment or other conduct of LR or silence shall justify the supplier's reliance on the relevance of its order confirmation or its standard terms and conditions.

8. Against reimbursement of the supplier’s reasonable and proven expenses caused thereby, LR after formation of the contract is entitled to change the order for the goods to be delivered or to cancel part of the contract already made. In the case of a partial cancellation the supplier is also to be reimbursed for that part of its profit lost and proven by the cancellation. Otherwise, amendments to the concluded contract always require the written confirmation by LR.

9. LR´s employees, consultants, commercial agents or other intermediaries are not authorized to dispense with the requirement of LR’s written order confirmation or to make promises which differ from its content. If and to what extent such persons are authorized to make or receive declarations with effect for or against LR, is to be determined exclusively according to German law.

III. Obligations of the Supplier

1. The supplier shall fulfil all obligations incumbent on him on the basis of LR's written order confirmation and these International Purchasing Conditions and, in addition, the obligations incumbent on him on the basis of the rules of the ICC relating to the DPU Incoterms® 2020 clause and by statutory provisions, in particular to deliver the goods listed in LR’s written order confirmation in the agreed type and quantity for free disposal by LR. The supplier must fulfil any guarantees and other promises made by him, without these having to be confirmed in writing.

2. Subject to further commitments by the supplier or further specifications in LR's written order confirmation, the supplier is obliged to hand over goods to LR in the quality and packaging and with the markings and labels that comply with the regulations, standards and product law requirements that apply to making the goods available on the market in Germany, namely with regard to product safety, accident prevention, health protection and safety at work, non-use of prohibited substances, compliance with limit values, etc.. In addition, the supplier is obliged to abide by the packing instructions of LR. The supplier must also provide all documents that ensure the traceability of the goods and their elements and guarantees without limitation that the goods do not show any deviations which could result in impairments of the customary use or economic value in Germany or of the intended purpose made known to the supplier. The agreement of other clauses of the Incoterms or other delivery clauses is a deviating regulation of the transport and the transport costs and does not change the regulations made in this paragraph.

3. The supplier guarantees that at the time of delivery the goods are free from rights or claims of third parties, in particular those arising from ownership or from industrial or other intellectual property, which may affect the unrestricted usability of the goods by LR in all of its distribution countries.

4. The supplier is not allowed to entrust sub-suppliers the performance of its obligations owed to LR if this may result in legal obligations for LR.

5. Irrespective of other information duties, the supplier must give LR reasonable advance notice in writing of the delivery and examine the goods promptly to handing them over to LR with regard to compliance with the quantity, type and packaging owed and their freedom from relatively easily detectable defects in quality and of title and furthermore to the same extent as LR is obliged to examine incoming goods. The result of the examination is to be recorded in writing.

6. The transport and the custody of the goods until they are taken over by LR is the sole responsibility of the supplier. The supplier is responsible to LR for ensuring that the goods are packed appropriately for transport, loaded safely, and transported on means of transport suitable for their carriage. The agreement of other clauses of the Incoterms or other delivery clauses is a deviating regulation of the transport and the transport costs and does not change the regulations made in this paragraph.

7. Notwithstanding the provision in IV.-3. and notwithstanding the customs declaration by LR, the supplier is responsible for the Entry Summary Declaration, the Customs Arrival Declaration, the Temporary Storage Declaration and the Presentation of the goods under customs law. The supplier shall obtain the data and documents required for the customs declaration and hand them over to LR in 59227 Ahlen/Germany with a reasonable lead time. The supplier warrants that the goods fulfil all customs, import and security regulations applicable for importation into Germany at the time of delivery. The agreement of other clauses of the Incoterms or other delivery clauses is a deviating regulation of the transport and the transport costs and does not change the regulations made in this paragraph.

8. The supplier assures that neither the goods nor the supplier is subject to restrictions under foreign trade law and is not affected by sanctions under foreign trade law and undertakes to refrain from doing anything that could result in sanctions under foreign trade law.

9. The supplier shall hand over the goods to LR unloaded at the place of delivery indicated in the written order confirmation or - if a place of delivery is not indicated - at the premises in 59227 Ahlen/Germany. The supplier must ensure that at least one full working day is available for unloading an FCL container. In the case of drop shipment deliveries, the supplier is additionally obliged to notify LR in writing of the delivery made to the consignee. The agreement of other clauses of the Incoterms or other delivery clauses is a deviating regulation of the transport and the transport costs and does not change the regulations made in this paragraph.

10. Each delivery must be accompanied by a delivery note in which the order number of LR's order confirmation and for each type of goods the applicable customs tariff number are clearly highlighted. Invoices, delivery notes and transportation documents must correspond to the details in LR's order confirmation, comply with all legal requirements and first copies are to be forwarded to LR separately by post and additionally by electronic means. Invoices must clearly state the order number and the date of LR's order confirmation as well as the supplier’s tax number and VAT identification number. Partial deliveries agreed upon or final instalment deliveries are to be identified as such in the delivery note and in the invoice.

11. The supplier shall fulfil all obligations incumbent upon him in good time. Strict compliance with agreed dates or periods for delivery shall be a fundamental obligation of the supplier. LR is entitled to select the date of delivery within an agreed period. The supplier is not entitled to make part deliveries or to invoice them separately or to perform its obligations outside the agreed dates or periods. Notwithstanding other claims of LR, possible delays in delivery must be communicated to LR in writing immediately after facts that might lead to a delay become known, stating the new delivery date.

12. Agreed penalties or liquidated damages or both shall be paid in addition to the agreed services, do not exclude the claim for further damages and are not affected by an unconditional taking of the delivery.

13. Statutory rights of the supplier to exercise a lien or to suspend performance or to raise defences or counterclaims are excluded, except where the corresponding claim of the supplier is due and undisputed or has been finally adjudicated upon or where despite written warning LR has committed a fundamental breach of its obligations due and arising out of the same contract and has not offered any adequate assurance.

14. The supplier assures to fulfil all requirements prescribed for the making available of the goods on the market in Germany, namely notification, communication and registration obligations and to communicate issued registration numbers as well as other proofs to LR in writing without being asked.

15. The supplier undertakes to ensure that the legal provisions and internationally recognised standards for the protection of the environment and respect for human rights, in particular prohibitions of child and forced labour and discrimination, regulations on minimum wages and occupational health and safety and fundamental workers' rights, hereinafter referred to as ESG standards, are complied with throughout the supply chain of the goods to be delivered to LR. The supplier shall contractually oblige his suppliers to comply with the ESG standards and to impose the same obligation on their suppliers. At LR's request, the supplier shall participate in training courses on ESG standards, install suitable monitoring mechanisms, provide evidence of compliance with the ESG standards in the supply chain by procuring and transmitting suitable documents and have it confirmed by third-party experts that no violations of ESG standards are recognisable in the supply chain.

IV. Obligations of LR

1. LR is obliged to pay the agreed purchase price. Payment shall be made on the due date, subject to subsequent check the invoice, by transfer to a banking institution with which the supplier maintains business relations. There are no obligations on the part of LR to secure or to enable payment or to verify the bank account details.

2. The supplier's claim to payment of the purchase price is dependent on the goods and documents being handed over to LR beforehand in full and in accordance with the contract. Without prejudice to the compliance with more far-reaching legal requirements, the payment is due within thirty (30) days with an application of a discount of 3% or within forty-five (45) days with an application of a discount of 2% or within sixty (60) days net. The payment period does not start before LR has received a due and proper invoice.

3. The price shall cover all of the supplier's services including any ancillary costs, in particular customs duties, taxes and charges for export and transit as well as bank charges accruing outside of Germany. LR shall pay the import turnover tax (Einfuhrumsatzsteuer) accruing in Germany as well as other duties to be paid upon import clearance. Any increase in the price agreed at formation of the contract - irrespective of the legal ground - is excluded.

4. Third parties not involved in the conclusion of the contract are not entitled to request payment. The supplier’s entitlement to receive payment shall also remain if he assigns claims to payment to third parties.

5. Statutory rights of LR to reduce the price or to exercise a set-off against the price or to suspend the performance of its obligations or to raise defences or counterclaims are not restricted by the provisions laid down in these International Purchasing Conditions and LR shall be entitled to these rights even if cash-payment terms are agreed or the claims result from different contracts. Without any previous notice to the supplier being necessary, LR is entitled to suspend the performance owed by LR, so long as in LR’s view there is a concern that the supplier is unable or unwilling to fulfil its obligations resulting from the present or any other contract concluded with LR and not yet completely fulfilled, in whole or in part, in accordance with the contract. LR is also entitled to exercise a set-off against the price or to suspend the performance of its obligations or to raise defences or counterclaims when the claim against the supplier is contested by the supplier, has been acquired by LR by assignment or LR is entitled to request payment for any other reason or when the claim exists but has not yet fallen due or is in another currency or is subject to the exclusive jurisdiction of a court or an arbitral tribunal different to that provided for the claim of the supplier.

6. LR is not obliged to perform any obligations which are not laid down in LR’s written order confirmation or in these International Purchasing Conditions.

7. The taking delivery of the goods by LR is subject to the proviso that the goods are in every respect in conformity with the terms of the contract, these International Purchasing Conditions and the applicable statutory provisions and free from rights or claims of third parties.

V. Non-conforming Goods and Goods encumbered with Rights or Claims of Third Parties

1. Further to statutory non-conformities, goods do not conform with the contract if they do not conform with the requirements set out in sections III.-1., III.-2., III.-3. and III.-7. or with assertions in adverts or with declarations made by the supplier to LR or with other legal provisions applicable within the distribution countries, if claims in favour of a third party based on product liability law or similar provisions occur due to the goods or if rights or claims of third parties, in particular those based on title, industrial property or any other intellectual property are claimed. Notwithstanding sentence 1, the goods are conforming with the contract if a different term is set out in LR’s written order confirmation, or the supplier proves that LR was well aware of the non-conformity when the contract was concluded and agreed to accept the goods despite the non-conformities.

2. Likewise, the confirmation to LR by the supplier as to the quality or suitability requested of the goods constitutes an unconditional and unrestricted guarantee of the supplier unless the supplier has advised LR in writing that he cannot give such a guarantee. The same applies to all references made by the supplier to generally accepted standards or quality marks or to similar declarations by the supplier indicating that the goods have certain qualities or are suitable for a particular purpose. In the case of subsequent transactions concerning the same type of goods the confirmations, references or other declarations of the supplier shall continue to apply without requiring any special mention.

3. With the exception of very obvious non-conformities, the duty to examine the goods arises when the goods are processed or used by LR, however at the latest half a year after their handing-over to LR. The duty to examine exists only in respect of typical deviations of a physical kind in type, quantity, quality and packaging of the goods delivered and is sufficiently fulfilled by applying LR’s usual methods of examination and limiting it to spot checks. In the case of delivery in instalments or of part deliveries, the examination of only an individual delivery shall suffice. The consulting of experts, damage assessors, inspection offices or other external third parties is not required. LR has no obligation to examine the goods in respect of compliance with non-physical characteristics or whether they are free from rights or claims of third parties. If the supplier delivers late, the duty to examine is waived insofar as an adequate time for examination is no longer available in consequence of the late delivery. If the supplier remedies a non-conformity, the duty to examine is suspended until LR has received a written notice of the supplier stating that the remedial measure has been completed.

4. LR shall give notice of very obvious non-conformities within five (5) working days after the handing-over of the goods to LR and of non-conformities discovered pursuant to the examination, within ten (10) working days after the completion of the examination of the goods. Notice of non-conformities not discovered by the examination shall be given within fifteen (15) working days after the non-conformity and the supplier’s responsibility therefor are finally determined and at the latest until the expiration of the limitation period. There is no obligation of LR to give notice if the supplier knew or ought to have known of the lack of conformity. Apart from that, the notice shall be given to the supplier or to its agents. The notice shall describe the non-conformity in general terms; greater details as to the type of non-conformity or the extent of the goods affected are not required. If interested in it, the supplier is obliged to request further details in writing from LR on the type of non-conformity or the extent of the goods affected. Rights or claims of third parties regarding the goods can be given notice of at any time without complying with any time limit.

5. Without prejudice to its continuing contractual or statutory rights, LR is entitled to rely on the remedies provided in section V.-6. if the goods do not conform with the contract and these International Purchasing Conditions at the time the notice periods stipulated in section V.-4. commence, unless the supplier sets forth that the non-conformity with the contract or the rights or claims of third parties were caused after the taking over of the goods and are attributable to LR´s sphere of responsibility.

6. Irrespective of any fortuitous damage to the goods after risk has passed, LR is entitled in the case of delivery of non-conforming goods or goods encumbered with rights or claims of third parties to rely on the remedies provided by law or to advance extra-contractual claims. Delivery of substitute goods and avoidance of the contract are not conditional on a fundamental breach of contract, or the intact restitution of the non-conforming goods or goods encumbered with rights or claims of third parties, can be claimed beyond the extent of the goods not in conformity with the contract for the whole contract and shall be declared at the latest four (4) months after the notice of the non-conformity. If reduced quantities are delivered LR is entitled to reduce the purchase price without further ado. Excess quantities delivered may be rejected totally or partly by LR without a notice of non-conformity being necessary. Moreover, the stipulations in section VI.-2. on the avoidance of the contract and in section VII.-2. on damages apply to the delivery of non-conforming goods or goods encumbered with rights or claims of third parties as well. Until the complaint has been settled completely, LR is in addition entitled to retain from the purchase price up to 3 times the costs of repair. LR is also entitled to demand reimbursement of pro rata overheads and expenses incurred by LR, irrespective of other claims. This also applies to services provided by LR to his customers or other third parties insofar as they are the result of non-conformities or rights or claims of third parties attributable to the supplier and the underlying obligations were not entered into by LR after the non-conformity or encumbrance with rights or claims of third parties had been discovered.

7. The limitation period for remedies begins with the contractual taking over of the goods by LR and after complete performance of all of the supplier’s primary obligations. In no case shall the limitation period expire before the expiration of six (6) months from the giving of notice of the non-conformity if the notice was given before the limitation period elapsed. Art. 39 para. 2 CISG is excluded. The limitation period for remedies of LR against the supplier in respect of violation of third parties’ rights or claims is ten (10) years.

VI. Avoidance of the Contract

1. Complying with the legal requirements the supplier is entitled to declare the contract avoided after it has threatened LR with avoidance of the contract in writing and a reasonable additional period of time for performance given in writing has expired to no avail. The notice of avoidance of the contract is to be given to LR directly within a reasonable time and in writing.

2. Without prejudicing its other legal rights, LR is entitled to avoid the contract in whole or in part if the contract cannot be performed as contemplated at the time of its formation due to statutory or sovereign measures, if the supplier or its direct or indirect suppliers violate provisions for the protection of the environment or respect for human rights (ESG-standards), if the supplier objects to the application of these International Purchasing Conditions, if on grounds for which LR is not responsible the written order confirmation by LR is received by the supplier more than seven (7) calendar days after its date of issue, if insolvency proceedings are applied for or commenced relating to the assets of the supplier, if the supplier without providing a reason justifiable in law does not meet fundamental obligations due towards LR or towards third parties, if according to these International Purchasing Conditions and due to the delivery of non-conforming goods or goods encumbered with rights or claims of third parties LR is entitled to remedies, if the supplier has violated other obligations despite expiry of a grace period set by LR, or if LR cannot be expected to fulfil its obligations by means, which taking into consideration its own interests and that of the supplier as far as ascertainable and legitimate at the time of formation of the contract, are unreasonable in particular in relation to the agreed counter-performance.

VII. Damages

1. The supplier is entitled to claim damages from LR in case of unjustified late payment. Damages amount to a flat interest rate of 2% per annum above the base interest rate of the German Federal Bank (Deutsche Bundesbank) or if the payment is not to be made in Euro, above the official rate of discount of the currency in which payment is due applicable during the unjustified retention of payment. With the exception of blameworthy injury of life, body or health of persons, or damages due to the deliberate or grossly negligent breach of obligations owed to the supplier by the organs or executive employees of LR or of obligatory product liability, any claim by the supplier on any other ground to damages, to further interest or to any kind of indemnity is excluded.

2. Without prejudice to other claims inclusive claims of an extra-contractual nature and without any restriction, LR is entitled to claim damages from the supplier instead of or in addition to any other remedy for every kind of breach of contract. The taking of delivery of the goods or the paying of the purchase price without any reservation shall not result in a waiver of the right to damages. Without prejudice to any further reaching legal rights, the damages to be compensated shall comprise all direct and indirect expenses, losses and inconveniences caused to LR by the breach of contract, unless the supplier proves that the extent of the damages was foreseeable neither at the time of formation of the contract nor during its performance. Without prejudice to the supplier proving that damage was either not caused or was caused in a significantly smaller amount, and without prejudice to LR claiming further damages, in each case of late delivery or non-delivery by the supplier LR is entitled to claim liquidated damages of 0.5 % of the value of the respective goods for each week of delay commenced, up to a maximum of 10 %, without any evidence being necessary.

VIII. Other Provisions

1. On delivery the goods as well as all related papers and documents become the unrestricted property of LR. If a reservation of title in favour of the supplier has been agreed, this has only the effect of a simple reservation of title; in addition, LR is entitled, regardless of the reservation of title, to utilise the goods at any time without any restrictions, namely by processing the goods and/or selling them, as well as by transferring property in the goods to third parties even when such utilisation has the consequence of invalidating the reservation of title.

2. Without prejudice to continuing claims, the supplier will furnish the due particulars and technical documentation regarding the goods in writing to LR and give LR unlimited security or compensation on first demand and waiving all further conditions or other defences, in particular waiving the observing of all duties of examination, notifying, control or recall or the prior taking of administrative or legal proceedings as well as waiving the defence of limitation if in consequence of an administrative order LR is threatened with detriment or if LR is subject to administrative fines or if LR suffers of other detriment and the administrative order is based on provisions of product law, the observance of which is according to these International Purchasing Conditions within the supplier’s sphere of obligation. The same applies if LR is obliged on the basis of applicable statutory provisions to recall goods, which have been delivered by the supplier or which contain parts delivered by the supplier as far as their causation for the recall of the goods cannot be excluded. Irrespective of any additional claims of LR, the supplier shall maintain a product liability insurance and a product recall insurance, each with a cover figure of not less than € 5 Mio. for each event of damage or loss.

3. The place of delivery results from section III.-9. of these International Purchasing Conditions and applies also to the delivery of substitute goods or repair. The place of payment and performance for all the rest of obligations arising from the legal relationship between LR and the supplier is 59227 Ahlen/Germany. This provision also applies if the supplier renders performance for LR somewhere else or payment is to be made against the handing over of the goods or documents or in the case of restitution of performance already rendered. The agreement of other clauses of the Incoterms or other delivery clauses is a deviating regulation of the transport and the transport costs and does not change the regulations made in this paragraph.

4. In relation to illustrations, drawings, calculations, product specifications, recipes, manufacturing processes and other documents as well as computer-software, which have been made available by LR in a tangible or electronic form, LR reserves all proprietary rights, copyrights, other industrial property rights as well as know-how rights.

5. Within the scope of the negotiation, performance and termination of the contract concluded with LR, the supplier shall ensure compliance with Regulation (EU) 2016/679 (General Data Protection Regulation) and other legal requirements applicable to the processing of personal data in the specific case, i.e. in particular the lawfulness and transparency of the processing and, if applicable, the transfer to third countries. In case of transfer of personal data from one party to the other, the responsibility of the receiving party starts from the moment of transfer of the personal data.

6. Data attachments to e-mails in pdf or TXT format are deemed to have been received upon receipt of the e-mail. The transmission of electronic documents (EDI) requires special agreements.

7. The limitation period for claims of LR against the supplier due to incorrect information regarding the obligations incumbent on the supplier according to section III.-7. or section III.-15. shall be ten (10) years.

8. All communications, declarations, notices etc. are to be drawn up exclusively in German or English. Communications by means of fax or e-mail fulfil the requirement of being in writing.

IX. General Basis of Contracts

1. The United Nations Conventions of 11 April 1980 on Contracts for the International Sale of Goods (UN Sales Convention / CISG) and on the Limitation Period in the International Sale of Goods, both in the English version govern the legal relationship with the supplier. The UN-Conventions apply above and beyond their own area of application and regardless of reservations adopted by any state, to all contracts to which these International Purchasing Conditions are to be applied according to the provisions of section I.-1. and I.-2. above. Where commercial terms are used, in case of doubt the Incoterms® 2020 of the International Chamber of Commerce apply taking into account the provisions stipulated in these International Purchasing Conditions.

2. The formation of contract, including but not limited to agreements as to the jurisdiction of courts or arbitral tribunals, and the contractual rights and obligations of the parties, also including but not limited to the liability for death or personal injury caused by the goods to any person and for non-compliance with pre-contractual and collateral obligations as well as the limitation of actions and the interpretation are exclusively governed by the UN-Conventions specified in section IX.-1. together with these International Purchasing Conditions. Subject to differing provisions in these International Purchasing Conditions, the rest of the legal relationship between the parties is governed by the Swiss law of obligations (Obligationenrecht).

3. All contractual and extra-contractual disputes as well as disputes under insolvency law, arising out of or in connection with contracts to which these International Purchasing Conditions apply, including but not limited to their validity, invalidity, or cancellation as well as other disputes arising out of the business relationship with the supplier shall be submitted to the Swiss Arbitration Centre and shall be finally resolved, without recourse to the ordinary courts of law, by arbitration according to the Swiss Rules of International Arbitration (Swiss Rules) in force on the date when the Notice of Arbitration is received in accordance with these Rules. The Tribunal shall consist of three (3) arbitrators. One (1) arbitrator shall be nominated by the claimant, one (1) by the respondent and the chairman of the Tribunal shall be designated by the two arbitrators so nominated. If the amount in dispute is less than € 250.000 (EURO two hundred and fifty thousand), there shall be one (1) arbitrator appointed according to the Swiss Rules of International Arbitration. The place of the arbitration shall be Zürich/Switzerland, the languages used in the arbitral proceedings shall be German or English or both. The competence of the Arbitral Tribunal excludes especially every statutory competence of state courts, which is provided by reason of a personal or substantive relation. If advances on costs ordered by the arbitral tribunal are not paid in full by the time limit set the party failing to pay loses any right on reimbursement of costs for legal representation in the arbitral proceeding. If this arbitration clause is ineffective or ceases to be effective, the non-exclusive local and international jurisdiction of the courts which have jurisdiction for 59227 Ahlen/Germany is agreed for any dispute instead. If the place of business of the supplier is within the European Economic Area (EWR) or Switzerland, irrespective of any ineffectiveness of the arbitration clause and instead of bringing an action before the Arbitral Tribunal, LR is entitled to bring an action before the State Court which has jurisdiction for 59227 Ahlen/Germany or the State Court of the supplier’s place of business, or any national court with jurisdiction according to domestic or foreign law.

4. If provisions of these International Purchasing Conditions should be or become partly or wholly ineffective, the remaining arrangements will continue to apply. The parties are bound to replace the ineffective provision with a legally valid provision as close as possible to the commercial meaning and purpose of the ineffective provision.