General terms and conditions

BLM - Gesellschaft für Bohrlochmessungen mbH - hereinafter referred to as BLM GmbH - is a service company for the project planning and execution of scientific investigations and technical services for exploration, construction and monitoring purposes in geology, geoecology, geotechnics, raw materials management, mining, landfill technology, water management and civil engineering as well as related fields. These services are performed for public and private clients - hereinafter referred to as "AG".

1. general

Services and offers shall be made exclusively on the basis of these terms and conditions, even if they are not expressly agreed. These terms and conditions shall be deemed accepted at the latest upon order placement. Counter-confirmations of the customer or subcontractor with reference to his terms and conditions are hereby rejected. Deviations shall only be effective if they are confirmed in writing by BLM GmbH.

2. independent contractor

BLM GmbH provides its services as an independent contractor with its own personnel and technology, properly and professionally on the basis of the applicable laws, regulations and in compliance with specific requirements of the client. The service is rendered using the latest available state of science and technology and applying its own know - how, without guaranteeing the correctness of the results thus obtained.

3. offer and conclusion of contract

The offers of BLM GmbH are free of charge and non-binding. The contractual relationship shall be concluded by placing the order in writing or by telex. Deviations, supplements and ancillary agreements also require the written form.

4. price

The offer prices are based on the price list valid at the time of performance. Incidental costs, as far as known, are included in these prices, unless additional incidental costs are expressly indicated. The offer prices are net prices, the respective statutory value added tax to be calculated thereon shall be shown separately.
Unless otherwise agreed, the invoicing of the work performed shall be based on the data recorded in the measurement logs and confirmed by the Principal. Measurement meters that have been started shall be rounded up to meters.

5. right to information and examination

The client is obliged to ensure that BLM GmbH can perform services under conditions that comply with the official safety regulations. The client shall inform BLM GmbH about special circumstances that may endanger the personnel, technology and services of BLM GmbH and make the performance of services more difficult.
Upon request, the client or persons commissioned by him shall be informed about the status of the performance of services by BLM GmbH in accordance with the contract, and the client shall have the right to carry out inspections.

6. confidentiality

BLM GmbH guarantees the confidential treatment of all information and results obtained in the course of the execution of the order, unless a disclosure to third parties is ordered by court decision.

7. warranty

BLM GmbH shall only provide warranty for defects that are present at the time of transfer of risk or acceptance of the services, and which also include the absence of warranted characteristics and deviations in quantity, in the following manner:

• The client shall only be entitled to rectification of defects in the first instance and within a reasonable period of time. BLM GmbH shall be entitled to replace defective parts or to refer the client to rescission or reduction.
• BLM GmbH shall only provide a warranty for the work of subcontractors and parts of third-party manufacturers by assigning the claims against the subcontractor or supplier to the client.
• warranty obligation is limited to the amount of the order value.
• BLM GmbH shall only provide a warranty for the work of subcontractors and parts of third-party manufacturers by assigning the claims against the subcontractor or supplier to the client.
• warranty obligation is limited to the amount of the order value.
• The warranty by BLM GmbH shall not apply if persons not commissioned by BLM GmbH carry out repairs or other interventions or modifications to the services.
• The warranty shall also not apply in the event of defects based on operating errors, negligence or improper conduct or on defects in items to be provided by the client as well as on non-compliance with the instructions of organs of BLM GmbH or its vicarious agents.
• Notification of defects must be made in writing immediately after detection, visible defects at the latest within 8 days after delivery; otherwise BLM GmbH shall not be obliged to provide warranty.
• If the Customer accepts the services despite being aware of a defect, he shall only be entitled to warranty claims if he reserves them at the time of acceptance.

8. liability and limitation of liability

BLM GmbH shall be liable in the manner set forth in the "Special Implementation Provisions" of BLM GmbH.
BLM GmbH shall be liable for the damage caused in cases in which the duty of care was demonstrably violated by its personnel. Liability is normally limited to

5,000,000.00 EUR
for personal injury and property damage
1,000,000.00 EUR
for financial losses

Other liability sums must be agreed.

9. lump-sum compensation for damages in the event of termination

If the contractual relationship is terminated prematurely due to an extraordinary termination by the Customer without there being an important reason based on the Contractor's conduct, the Contractor shall be entitled to demand 30% of the contractual price as compensation for damages, unless the Customer proves that the damage did not occur at all or is significantly lower.

10. property rights

BLM GmbH warrants that domestic property rights of third parties will not be infringed upon in the performance of the agreed services.

11. subcontractor

BLM GmbH guarantees that the above conditions will also be complied with in the event that subcontractors are used.

12. payments

The client shall settle the payments to BLM GmbH within the period and condition set on the invoice.
According to § 284 III BGB, the client shall be in default 30 days after the due date and receipt of the invoice, without prior reminder. From this point in time, outstanding amounts shall bear interest at a rate of 5% above the prime rate on the basis of the new regulation § 288 BGB. If outstanding amounts are collected by legal proceedings or by debt collection, the client shall bear the expenses and attorney's fees.

13. severability clause

If any provision or part of these terms and conditions is held to be invalid, the remaining provisions shall not be affected thereby.
The invalid terms and conditions shall be replaced by terms and conditions that achieve the intended economic purpose as closely as possible in a legally permissible manner.
Failure to comply with any or all of these terms and conditions in one or more specific instances shall not constitute an exclusion or waiver of subsequent compliance.

14. applicable law

The contractual agreements, also in the case of foreign orders, are subject to the law of the Federal Republic of Germany.
Insofar as the Client is a registered trader within the meaning of the law, the place of jurisdiction shall be the registered office of the Contractor, i.e. the Burg Local Court.

Gommern, January 2016

Terms of execution for services

of BLM - Gesellschaft für Bohrlochmessungen mbH in boreholes and wells

1. These "Conditions of Execution for Services of BLM - Gesellschaft für Bohrlochmessungen mbH in Boreholes and Wells" are not "General Terms and Conditions" in the sense of the German Civil Code (BGB) or the General Terms and Conditions Act (AGB-Gesetz), but are stipulations and rules which serve the trouble-free execution of the technical services in boreholes and wells of the client and the reasonable delimitation of risks in the execution of these services.
2. By placing an order for the performance of a technical service, the client accepts these "Conditions of Execution", irrespective of which regulations have been made with regard to the "General Terms and Conditions" (GTC). A declaration by the client of non-acceptance of these "Conditions of Execution" or parts thereof shall entitle BLM GmbH to reject the commissioned services or parts thereof.
3. These "Conditions of Execution" are flanked by the stipulations of the Safety and Health Protection Document (SGD) in accordance with § 3 of the Mining Ordinance for all Mining Areas (General Federal Mining Ordinance ABBergV) dated October 23, 1995, of BLM GmbH, in particular by the guidelines (operating instructions) contained therein for the execution of borehole measurement and borehole shooting work.
4. Prior to commencement of the work, the client shall provide BLM GmbH with all information necessary for safe and quick performance of the services regarding the condition of the well and the conditions prevailing in it and its vicinity. Failure to provide this information, especially in the case of suspected intentional concealment, entitles BLM GmbH to refuse to perform the service even after the order has been placed.
5. BLM GmbH guarantees the performance of services with modern technology and according to proven technologies if the borehole is in a proper condition and if the conditions in the borehole and its surroundings are perfect. However, liability for complications that may nevertheless arise during the performance of services and for the completeness of the work results to be achieved shall only be assumed for intent and gross negligence on the part of the employees of BLM GmbH or their vicarious agents.
6. If it becomes apparent during the performance of services that the condition of the well or the conditions prevailing in and around it call into question the trouble-free and safe performance of the services, BLM GmbH may refuse to continue the work. In this case, the client shall bear the costs incurred up to this point. If the client insists on the continuation of the services and if the further work requires actions and measures that deviate from applicable safety regulations and operating instructions and/or from the agreed program or are not regulated in the latter, they must be discussed and determined in writing by the representative of BLM GmbH with the client or the client's authorized representative, provided that the existing conditions and the condition of the borehole permit this. If no agreement can be reached on the measures to be taken because the representative of BLM GmbH has reservations about the proposals of the client or his representative with regard to the safety of the well and his work, instructions that contradict the reservations of the representative of BLM GmbH shall be binding on him only if they have been given in writing by the client or his representative. In this case, the client bears the full risk. If the representative of BLM GmbH expresses his objections in writing or - if haste is required - orally to the effect that the subsequently agreed measures or the arrangements made at the borehole by the client or his representative endanger the safety of the borehole, the client shall bear the full risk. Objections raised orally shall be documented in writing without delay thereafter.
7. If, during the execution of borehole measurements, it is necessary to drive out of a drill pipe or drill casing located in the borehole, the client shall bear the risk for possible damages or losses if complications occur when driving back into the same when using usual technologies, unless the employees of BLM GmbH have grossly negligently or intentionally violated these technological rules.
8. If equipment or devices of BLM GmbH are lost or damaged in the borehole, the client has to bring them back in good condition at his own expense or, if this is not possible, to compensate BLM GmbH for them, unless BLM GmbH is responsible for the damage or loss in question due to gross negligence or deviating contractual provisions have been made.
9. The client assumes full responsibility for trapping work. Employees of BLM GmbH or its vicarious agents are not authorized to take any measures independently in this respect, nor may they be requested by the client to participate in the fishing work themselves, except in an advisory capacity. If BLM GmbH provides the client with fishing gear within the scope of such consulting activities, this shall serve the interests of the client alone and shall not affect the client's responsibility. The terms and conditions of Sections 4 through 8 shall apply to such provision of gear and advice on fishing operations.
10. The measuring cables and probes used by BLM GmbH are designed for normal borehole conditions. If damage to cables and probes is foreseen or has occurred due to abnormal borehole temperatures and/or pressures as well as corrosive gases, liquids or chemicals, the client shall be liable for such damage.
11. The client or well owner shall be solely liable for any reservoir losses as well as property damage resulting from well pressures, probe blowouts, or similar events, unless BLM GmbH is grossly negligent for such damage or loss.
12. During the performance of the services assigned to BLM GmbH, the client shall retain the duty of supervision and full responsibility for its personnel, its drilling, its equipment, its facilities and materials as well as the condition of the borehole. BLM GmbH shall assume liability for any damage caused to the drilling rig or the borehole during the performance of the services only if the client proves that such damage was caused by intent or gross negligence on the part of the employees of BLM GmbH or their vicarious agents. If the client does not provide this proof, it shall indemnify BLM against all claims for compensation - also against third parties.
13. The client shall indemnify BLM GmbH and the persons working for BLM GmbH against any liability if mining rights of third parties are violated during the execution of the order.
14. When using radioactive sources in connection with the services to be performed by BLM GmbH, the latter shall be responsible for compliance with the applicable safety regulations regarding the use, handling and transport of radioactive material and shall provide evidence of the relevant permits. Client's employees shall follow the instructions of BLM GmbH's employees or its vicarious agents in the field of radiation protection. If, in the event of loss of a probe with a radiation source in the borehole, it cannot be recovered intact, the part remaining underground must be isolated by suitable means by the client on site in compliance with the relevant legal regulations and official instructions.
15. The client is responsible for the access to and from the workplace and supports the approach of the BLM GmbH measuring vehicles with suitable means if necessary (difficult terrain). BLM GmbH does not assume any liability for damage to land and roads if the approach is made on the access roads laid out by the client.
16. The interpretation of measurement results - whether directly by electronic data processing or by other means - by employees of BLM GmbH or its vicarious agents is made to the best of their knowledge and belief. Since empirical facts and model ideas are incorporated into this interpretation, the interpretation results and conclusions derived therefrom are not infallible and may differ from the results of the evaluation by the AG or third parties. Under no circumstances should such interpretations or conclusions derived therefrom be used as the sole basis for decisions on drilling, completions or similar actions that jeopardize the safety of the drilling contractor, drilling rig, personnel or the environment.
17. Unless otherwise agreed, BLM GmbH shall retain the digital measurement data for a period of 6 months after performance of the service. Within this period, the client has the option of retrieving this data at any time; if the period has elapsed, the data will be deleted.

Gommern, January 2016