1 – SUBJECT MATTER OF THE AGREEMENT

The subject matter of the agreement between both parties applies to the provision of conditions for granting the certification which confirms that the management system (system in following) conforms to the specified standard or other normative documents for the system. The client is aware of the fact that the system certification is performed on the basis of a dynamic system audit at the given moment. The client is bound to assure that the relevant provisions of this agreement will be met by the organisation whose management system will be certified (organisation in following). LMS will perform the certification according to the application of the client and the price offer accepted by the client.

This agreement is applicable after it is signed by both parties, and the LMS price offer is signed by both parties and the filled in LMS form APPLICATION FOR MANAGEMENT SYSTEM AUDIT is signed and submitted by the client, all included without any exclusions.

Besides provisions given in 9 – TEMPORARY PROVISIONS, both parties agree with keeping the steps and relevant provisions of the certification programme and bind to do everything necessary to keep the correct fulfilment of this procedure. LMS is authorised to submit unilaterally non-essential amendments to this procedure that do not influence the content of the agreement between the parties.LMS can utilise subcontractors to meet the purpose of this agreement

By signing this agreement the client agrees to submit the following documentation to LMS or its representative before the beginning or during the certification audit: – List of the system procedures indicating the dates of their issue – documentation indicating in broader connections how the requirements for the system are met (usually "manual") – list of services and/or products produced in the system to be certified. The client confirms that these documents reliably define the system status on the date of the certification audit and that they identify the scope and fields of activities which are the subject of the certification

The certification audit consists of the document review and of the audit in situ by the auditor(s) nominated by LMS. The degree of conformity of the system and the system standard is assessed. The client can appeal against the auditors nominated by LMS. To be valid, the appeal has to be written and submitted within eight days after the names of auditors are announced in writing to the client by LMS. In such a case, LMS has to nominate new auditor(s) and is authorised to change the date of the audit. After the audit, LMS shall submit to the client the list of nonconformities and observations with the corrective action(s) request and the audit report. The client / organisation binds to propose and carry out corrective action(s) without undue delay and LMS shall assess whether the content and the term for carrying them out is acceptable. In some cases LMS can decide to perform an extraordinary audit of implementation and effectiveness of the corrective actions. This assessment represents minimum 1/2 – day audit.

Based on the audit report, the list of nonconformities and the action plan of the client taking corrective actions, LMS will decide autonomously about granting, postponing or the rejection of the certification. This decision is made in writing to the client.

a) for the activities according to the application, and is sent to the client and If the certification is granted, the certificate is issued in the language and recorded into the LMS list of certificated organisations. b) Certification is valid only for the certificated organisation, i.e. for the system recorded in the certificate applicable for the products / services recorded in the certificate. Any transfer of the certification and the certificate is explicitly forbidden. c) Certification is valid for one year however total validity is 3 years subject to surveillance audits are performed (see below) and the certification is not suspended or withdrawn by LMS. d) The surveillance audit represents a visit of an auditor, nominated by LMS to ensure the maintaining of the system level. Surveillance audits will be performed every 12 months. However, this number could be changed if it is imposed by any official regulation or based on the recommendation of the auditor. e) LMS can perform follow-up audits out of the regular cycle, if the system amendment (see 8.2) is considered by LMS to be the principal or if the scope of the application is changed.

LMS can decide autonomously to postpone its decision on certification while the required corrective actions are implemented by the organisation. After these actions are executed, the auditor will perform a new audit. Based on this, LMS will decide autonomously about granting the certification. The extent of this new audit depends on the extent of the nonconformities and relevant corrective actions.

In case the certification is rejected, the validity of this agreement automatically comes to an end three months after the rejection is announced to the client, if the client does not submit an appeal (see 6) or will not submit a new application for audit. The costs will be charged by LMS to the client in accordance with the beforehand agreed prices regardless to any appeal.

The certification must be renewed before its expiry. Renewal of the certification requires a total audit. This agreement is the order for certification renewal. Also, a new LMS price offer must be agreed by the client.

Provisions 5.1 to 5.3 are valid for the entire scope of certification or for its part.

Restricting certification is a temporary arrangement, not exceeding a 3 months period and will be applied if the critical nonconformities of the system are identified (e.g. during surveillance audits), or if the certified organisation does not submit adequate corrective actions for identified nonconformities in time. Restricting will be announced to the client and organisation in writing and becomes valid 30 days after it is announced to the client, except if the client appeals within time, according to the procedure given in clause 7.

LMS is authorised to suspend the certification in case of detecting (e.g. during the regular, follow-up, or surveillance audit) that the system is not in conformity with the standard or in case the obligations of this agreement including financial obligations are not kept to by the client / organisation. Suspension can come with or without previously restricting the certification. Suspension will be announced to the client and the organisation in writing, and becomes valid 30 days after it is announced to the client, except if the client appeals within time, according to the procedure given in clause 7.

The certification will be withdrawn: a) when the activities subjected to the certification cease to exist e.g. suspension of the activity, bankruptcy etc. (in case of bankruptcy the certification loses its validity on the day the bankruptcy is announced) b) in case the agreement is cancelled (see 9).

The certification automatically and legally loses its validity after expiry, unless it is renewed.

In case of restricting the certification, neither the client nor the organisation may either lay claim to the certification or refer to the certification in external contacts (e.g. offer, negotiations about a contract, publication, advertisement) during the time of restriction. In case of suspending, withdrawing or expiry, the client / organisation is obliged to immediately send the certificate to LMS and to stop any use of the certification or any reference to it. Any misuse or misleading of this, will lead to penalties. Besides this, LMS can publicise the suspension and the withdrawal. In case of suspension, withdrawal or expiry, obligations to LMS will legally cease to be.