General Terms of Business of SINOVO Ltd. & Co. KG

§ 1 General Terms
1. These General Terms of Business (GTB) apply to all business transactions between Sinovo and their customers. Business conditions of the customer are herewith expressly countermanded. Such conditions cannot become part of a contract even when not expressly contradicted or delivery is made unconditionally. The GTB also apply in the case of wider business relations with the customer even when not expressly referred to. 2. Alterations or amendments of this contract must be expressly confirmed by Sinovo in writing to be valid in law.

§ 2 Establishment of Contracts
1. Customer orders represent an offer to Sinovo to close a purchase or licensing contract. This also applies when Sinovo transmits via the medium of the Internet or by e-mail confirmation of an order or confirms the receipt of an order. The purchase or licensing contact is established only after Sinovo has despatched the ordered goods to the customer or - in the case of downloads - the software has been completely downloaded onto the computer of the customer. 2. The acquisition of software has to be understood as the acquisition of a user's licence between Sinovo and the customer unless expressly agreed to differently in writing. The disclosure of source code is categorically excluded. The agreement with relevant licensing conditions precedes the right of use of the software. 3. Sale to minors requires payment in advance.

§ 3 Withdrawal from Sale
1. Instruction regarding the consumer's right to withdraw from sale As a consumer (according to § 13 BGB (German Federal Civil Code)) the customer can withdraw from the purchase contract in writing (also by fax or e-mail) or by returning the goods within 2 weeks after receipt. The customer can withdraw in writing from his contract without stating any reasons within two weeks (eg letter, fax, e-mail) or by returning the goods. The return deadline begins as soon as this instruction has been received. The timely return of goods or sending of a withdrawal notice is sufficient to safeguard the return deadline. The withdrawal should be addressed to: Sinovo Ltd. & Co KG, Taunusstr.98, 61381 Friedrichsdorf 2. Return Conditions In the case of a proper withdrawal mutually received benefits must be returned by either party as well as any resulting benefit of usage (eg interest). Should Sinovo customer be unable to return the service wholly, or returns only in part or in a deteriorated condition, appropriate restitution must be made. Mailed items must be returned by mail. The customer's payment obligations must be completed within 30 days of posting his withdrawal notice. If the order value of goods, for which a return has been requested, exceeds EUR 40.00 in total, Sinovo will reimburse reasonable return postage costs. Sinovo is entitled to retain compensation for possible depreciation caused by the usage of the goods. 3. Exceptions to Withdrawal from Contract The right to withdraw does not apply to audio and video media (eg cassettes, CDs, DVDs, CD-ROMs) or software, where the seal has been broken by the purchaser, or on-line services (eg software downloads).

§ 4 Supply and Payment
1. All deliveries are ex works or store and transport risk is at cost to the purchaser. If requested, goods may be insured at cost to the customer. Mailing costs and insurance will be charged at cost-price. 2. Production deliveries are reserved. Sinovo may withdraw from the contract, if production deliveries fail through no fault of Sinovo. Deposits are refunded - free of charge nationally. 3. Payments are due immediately and without any discount deductions.

§ 5 Property rights for goods or software and customer's adverse rights
1. Goods remain the sole property of Sinovo until full payment has been received. 2. User's rights to the software exist only after agreement of the respective licensing clauses. The customer receives, unless Sinovo has expressly agreed differently in writing, a single, not exclusive, user's license for use of the software on one terminal. Use by several users, specifically in a server application, is excluded unless a written agreement with Sinovo has been negotiated. Should the customer reject the licensing conditions prior to the first usage, the customer his entitled to return the software to Sinovo complete, without retaining copies, safety copies, back-ups or duplicates from any other copying process. Sinovo shall refund the purchase price. 3. The customer may offset an account or use his right of retention only if his claims are accepted by Sinovo or established in law.

§ 6 Liability for Defects and Compensation
1. In the case of defective supplies, the customer may first of all request substitute supply (either remedy or replacement). In the case of final failure of substitute supply, which can be assumed after two attempts have been made to correct the same fault, the customer may demand a reduction in purchase price or - assuming that the defect is not minor - cancellation of the contract. 2. In all other cases Sinovo is only liable for compensation for damages or incurred expenses, if caused with malicious intent, gross negligence, injury to life, body or health or else resulting from claims under product liability legislation or in the case of substantial neglect of contract obligations. Liability for less than malicious intent or gross negligence of substantial contract obligations is limited to usual contractual, foreseeable damages. 3. The previous claims assume that the customer has not contributed in any way. 4. Sinovo draws attention to the fact that software by its nature is never totally free of error. Therefore Sinovo only guarantees the functionality of the features announced by Sinovo in the context of the published recommended system requirements. Sinovo cannot accept liability for interfaces not guaranteed by Sinovo nor for the disruption of program sequences not caused by Sinovo.

§ 7 Usage for Health or Medical Purposes
IMPORTANT NOTICE FOR THE USAGE OF PRODUCTS FOR HEALTH OR MEDICAL PURPOSES: In the case that a customer wants to use hardware or software (hereafter products) to organize data for a therapy (i.e. diabetes), Sinovo points out that the products supplied by Sinovo are suitable only as an aid to organizing data or documentation of values entered by the customer. Obviously products supplied by Sinovo can in no way substitute for medical care or therapy. Every change of therapy (i.e. BE factors, correction rules, dosage of insulin) the customer must verify with his doctor in just the same way as he had to and should have done prior to the use of the program. SINOVO is not liable for health complications of any type, which may result from wrong therapy (i.e. wrong dosage of insulin). This also applies to advice the program may offer. Possible advice is offered without obligation and propriety and efficacy must be approved in detail by the treating physician. Particularly the usage of medical, especially in cases of diagnostic and health monitoring purposes, is recommended that apart from the evaluation by the software other recordings are carried out as well as frequent data back-ups to ensure that data is not inadvertently lost or to ensure that monitoring is secured by other means.

§ 8 Data Privacy
All data provided by the customer to Sinovo in the course of completing the order, delivery and support of the goods or software are stored electronically. Sinovo endeavours to use on the data minimally. The customer expressly agrees to the use of data in this context.

§ 9 Copyright and Commercial Protection
The software and its components are protected by copyright and commercial property rights. Annotation of documentation with the symbols ® or ^TM signifies the protection of respective trademarks. Equally even without respective annotation product descriptions are possibly protected trademarks of respective ownership.

§ 10 Applicable Law and Other
1. The laws of the Federal Republic of Germany are exclusively valid, excluding UN Law on Trade. 2. Should any one clause or any number of clauses be or become invalid, the validity of the remaining clauses is not affected. The contract partners shall endeavour to replace the invalid clause with a valid clause, reflecting as fully as possible the commercial and legal purpose of the invalid clause.