FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen a. T. W. Terms of International Trade Valid for sale of goods to customers not located in Germany as amended on 01.09.2004 I. Validity of Terms of International Trade 1. The following terms of international trade apply to every costumer of FMD Moebel GmbH; Heidlaender Weg 68; D-49201 Dissen; Germany; -referred below as FMD- who is not based in Germany. For those customers established in Germany FMD’s General Terms and conditions (“Allgemeinen Verkaufbedingungen”) are applicable. A copy can be obtained upon request. Decisive is in every case the subsidiary which concludes the contract in its own name. 2. These terms of international trade are valid for all current and future contracts, whose subject matter predominantly is the delivery of goods to the customer. Additional duties of FMD do not affect the validity of the terms of international trade. 3. Opposing or dissenting terms or conditions of the customer do not bind FMD, even if FMD does not specifically contradict or if FMD without reservation renders or accepts services from the customer. Similarly FMD is not bound as far as the terms and conditions of the customer –independently of the content of the present terms of international trade- are different to the legal requirements. II. Conclusion of the contract of sale 1. The customer is required to give written notification to FMD before the conclusion of the contract, if the ordered goods are not solely destined for the customary use. Same applies if the goods form a special danger for health, security or environment or if the goods are supposed to fit to conditions of heavy duty. 2. Orders of the customers have to be set out in writing. If the order of a customer differs from the proposal or the offer of FMD, the customer has to highlight the divergence. 3. All orders, especially those accepted by FMD employees, only take effect by written acknowledgement by FMD. Neither the de facto delivery of the ordered goods, nor any other behavior of FMD nor silence may cause the customers trusting in the conclusion of the contract of sale. FMD can give the written acknowledgement up to 14 days after the order of the customer has been received by FMD. The customer is bound to his order up to this point of time. 4. The written acknowledgement of order is received in time, if it reaches the customer’s premises 14 days after its printing. The customer has to inform FMD immediately, if the acknowledgement arrives delayed. 5. The written acknowledgement by FMD is decisive for the whole importance of the contract of sale. The acknowledgement concludes a contract even if, it is – except of price and quantity- different to the costumers declaration. This especially applies to differences related to the exclusive validity of these Terms of International Trade. Special requests of the customer, notably warranties or guaranties concerning the goods or the performance of the contract require in every case an explicit written confirmation. The contract is only not concluded -independent of the dimension Ein Unternehmen der Horstmann Group Telefon: +49-(0)5421-9448-0 Fax:: +49(0)5421-9448-41 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen info@fmd-moebel.de www.fmd-moebel.de and the kind of difference- if the customer objects to the differences in writing not later than 7 days after receiving the written confirmation of order. 6. Employees and sales representatives or any other sales staff of FMD are neither entitled to dispense with the written acknowledgement of order nor to give any other promises or guaranties. Changes in a concluded contract also need a written confirmation by FMD. III. Obligations of FMD 1. Under the reservation of the liability disclaimers as stipulated in sec. VII 1. FMD is obligated to deliver the goods as described in the written acknowledgement or as stipulated in these Terms of International Trade. Especially FMD is not obliged to deliver not named accessories or to give advice to the customer. 2. Third parties, who have not been involved in the conclusion of the contract, especially the costumer’s costumers, are neither allowed to demand delivery for themselves nor make demands of any kind to FMD. The receiving competence of FMD’s costumer persists even if the costumer himself conveys demands to a third party. 3. FMD is obliged to deliver goods of average kind and quality, whereas customary tolerances regarding kind, quantum, quality and packing are considered. Structure and color are subject to alterations as far as this is caused by the nature of the used materials and these alterations are not more than customary. FMD is entitled to partial delivery and to separate bills. 4. As far as the goods require a more accurate determination, FMD specifies them considering its own interests and identifiable interests of the costumer. It is neither necessary for FMD to request specification of the goods by the costumer nor to ask him to take part in the specification process. FMD is not obliged to inform the costumer about the specifications or to give him the opportunity of making differing specifications. 5. FMD has to deliver the goods within the stipulated time of delivery to the delivery address as noted in the acknowledgement of order. Alternatively goods are ready to be picked up by the customer at the plant in Dissen a.T. / Germany at the same time. A previous segregation or designation of goods or a message to the costumer about the availability is not necessary. FMD is entitled to send the goods at customer’s risk and costs in order to receive verification of the tax-free export consignment. 6. Agreed periods of delivery or specific dates of delivery necessitate the customer to bring the required papers, permissions, licenses and releases on time. Further on he - as agreed- has to open a letter of credit and/ or make an advance payment. The costumer has to fulfill every other obligation in due time. The agreed periods of delivery start with the date of the written acknowledgement of order. FMD is allowed to deliver before the stipulated time. 7. FMD is entitled to fulfill the duties of the contract after the designated time if the costumer is informed about the delay and about a period of time for the supplementary performance. This regulation does not affect further legal rights. The customer is entitled to contradict the supplementary performance within a reasonable period if the supplementary performance is Geschäftsführer: Dipl- Kfm. Jürgen Horstmann Richard Netzel HRB Osnabrück 110103 Ust-ID: DE 117578973 Deutsche Bank AGBielefeld 07.01.2014 Kto-Nr. 0 241 661 BLZ: 480 700 20 Seite 1 von 4 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen a. T. W. unacceptable. The contradiction only takes effective, if FMD receives it previous to the begin of supplementary performance. FMD refunds the customer his proved additional expenditures, which were caused by the delay, as far as FMD is responsible according to section VII. 8. The danger of price and performance of the goods become the obligation of the customer, at latest as loading begins or the customers fails to follow up his obligation to take over the goods or the goods have become property of the customer, even if this is a result of unclear marking. There is not need of prior report to the customer by FMD. The loading of goods is an obligation of the customer. INCOTERMS of the group F or C or clauses like “Free delivery…” or similar clauses are only an exception for handling the transportation costs. All other regulations including the sharing out of risks as stipulated in these terms of international trade stay valid. 9. FMD is not responsible for obtaining any required licences, authorisations, certificates, formalities or further documents needed for export, transit or import even if using INCOTERMS or similar clauses like “Free delivery…”. On demand, FMD will help the customer to receive the necessary documents, on his costs and risk. 10. In particular FMD is also not responsible to organize delivery of goods, insurance of goods, to supply inexplicitly agreed confirmation or documents or to carry out the customs clearance outside Dissen a. T. / Germany. FMD is neither obliged to respect currently valid systems of weights and measures, packaging regulations, labelling or marking regulations outside Dissen a. T. / Germany, nor to inform the customer about the delivery or to take back packaging material from the customer. Regardless of lawful regulations, the customer has to bear the costs of the renewed use, the recycling and correct waste disposal. This regulation is obligatory regardless whether the costs of the packaging are billed separately. 11. Notwithstanding further legal rights, FMD has the right to interrupt the obligatory performances as long as from FMD`s point of view concern exists that the customer will not fulfil his legal obligations either partly or in whole. The right for suspending exists in particular when the customer does not faithfully fulfil his obligations of preparing payment either towards FMD or towards a third party. Same applies if his credit range granted by a credit insurance is already exceeded or will be exceeded due to the outstanding delivery. Instead of interrupting, FMD is entitled to make future deliveries conditional upon a letter of credit drawn on a German major bank or payment in advance. FMD is not obliged to the continuation of the performances when one of the customer’s securities, given to avert the interruption, is insecure or could be contested according to the applicable law. 12. Subject to the regulation in sec. III. –7. FMD is obliged to inform the customer about the delay or interruption of performances only if they are certain. written acknowledgement of order. If the delivery is not scheduled to take place within four months after the conclusion of a contract, FMD can change the agreed price according to the current list price. In case that a price has not been agreed, the contract is just the same effective; in this case FMD’s usual trade price for the agreed date of the delivery is applicable. Neither the employees nor sales representatives nor any other distribution agents of FMD are authorized to accept any payments. 2. At Last the purchase price is due at the date of delivery as stated in the invoice. The payment is due independent of any further conditions and especially regardless whether or not the customer has taken over the goods or documents and/ or has had the opportunity to examine them. The allowed period of payment are immediately cancelled and the outstanding demands become immediately due, when insolvency procedure concerning the costumers property have been opened; when the customer does not follow essential obligations to FMD and/ or a third party without giving a justifying reason; or when the customer made incorrect statements about his creditworthiness. 3. The customer has to assure that all conditions will be fulfilled in order to enable a sales-tax-free delivery according to the German law. If FMD does not receive a certificate for tax-free export or FMD must pay sales tax because of delivery modalities or of circumstances from the sphere of the customer, the customer exempts FMD of all claims without restriction notwithstanding further claims of FMD. The customer promises the exemption under the renunciation of the further conditions or other objections, especially under renunciation of the objection of lapse and includes the compensation of FMD’s expenditure. 4. FMD can allow the incoming payments regardless to currency and regardless to juridical competences on existing own or ceded claims towards the customer according to their free discretion. 5. Customers right to offset own claims against claims of FMD are excluded, unless the counterclaim acclaims to the same currency, is justified by the customers own legal right and either legally determined or due and indisputable or in written form acknowledged by FMD. 6. The customer’s rights for retention of payment or to raise objections is excluded, unless FMD causes infractions towards due obligations stemming from the same contractual relationship despite a written reminder and no adequate safeguard has been offered. 7. The customer is obliged to take over the goods as stipulated in the written acknowledgment of order. This applies to the delivery date -without claiming additional terms- and delivery address, alternatively at the head office of FMD in Dissen a. T. / Germany. The customer is only authorised to refuse the acceptance when exercising his right to terminate the contract according to the regulations in sec. VI. -1. IV. Price, payment and receipt of the goods 1. Regardless of the further obligation to payment safeguarding or payment preparation, the customer is obliged to transfer the agreed purchase price to the bank institute named by FMD, in the identified currency and without deduction of charges as stipulated in the V. Goods contrary to contract or defective of title 1. The following term does not disclaim the legal disqualification or restrictions of the responsibility of the seller. The goods are contrary to the contract, if the customer proves that at the time of passing the risk, the goods -concerning packing, quantity, quality or kind- Ein Unternehmen der Horstmann Group Telefon: +49-(0)5421-9448-0 Fax:: +49(0)5421-9448-41 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen info@fmd-moebel.de www.fmd-moebel.de Geschäftsführer: Dipl- Kfm. Jürgen Horstmann Richard Netzel HRB Osnabrück 110103 Ust-ID: DE 117578973 Deutsche Bank AGBielefeld 07.01.2014 Kto-Nr. 0 241 661 BLZ: 480 700 20 Seite 2 von 4 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen a. T. W. differed from agreed specifications as stipulated in the written acknowledgement of order. The terms stated in Sec. III have to be considered. Also the goods are considered contrary to the contract in case of missing specifications or if they are not fit for common usage in Dissen a.T. / Germany. Alterations of structure, color and grain caused by nature do not establish a contradiction to the contract. Without regards to the clauses effective for Dissen a.T. / Germany goods are not contrary to contract, if the clauses effective at the customer’s domicile do not oppose the customary usage of goods. 2. As far as the written acknowledgement of order is not giving an explicitly converse statement, FMD is not responsible for the goods being appropriate for the customers intended use; having qualities of a pattern or sample or complying with legal requirements beyond Dissen a.T./ Germany, for example in the customer’s domicile. FMD is not liable for anything contrary to the contract, if those occur after passing of risk. If the customer tries to correct anything contrary to the contract by itself or through third parties without FMD’s approval, FMD is discharged from any obligation to grant warranty. 3. When delivered the customer has to submit the goods to a careful examination according to the legal regulations. Every consignment has to be tested on observable and/ or typical breach of contract. 4. The following term does not disclaim the legal disqualification or restrictions of the responsibility of the seller. If the customer can prove, that at time of passing the risk the goods were not free from third parties’ rights or claims, the goods are defective of title. Without disclaiming further statutory requirements, the goods are defective of title, if a third party’s right or claim depends on industrial property or any other intellectual property and if this property is registered and published in Germany. Notwithstanding German regulations, the delivery is not defective of title, if the regulations at the costumers domicile do not oppose to the use of goods. 5. According to the statutes, the customer has to inform FMD immediately in writing if the goods are contrary to contract or defective of title. The employees and any other representatives are neither entitled to accept notifications nor to give any statement concerning warranty. 6. After notification according to Sec. V.5. the customer can to exercise the remedies stipulated in these terms of international trade. He is not entitled to any other claims. If the notification has not been made correctly, the costumer is only entitled to remedies, as far as FMD maliciously concealed that the goods are contrary to contract or defective of title. Remedies concerning defects of title become invalid according to the same regulations as remedies concerning deficient goods. Statements of FMD concerning defects of title or deficient goods only serve as means of clarification and do not mean a renunciation of the requirement of written notification. 7. The customer is, suitable to the regulations of the CISG, entitled to ask FMD for replacement or rectification of defects ore is allowed to reduce the purchase price. The customer has no further claims for compliance of the contract. FMD is notwithstanding the Ein Unternehmen der Horstmann Group Telefon: +49-(0)5421-9448-0 Fax:: +49(0)5421-9448-41 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen info@fmd-moebel.de www.fmd-moebel.de customers remedies according to Sec. III. 7. always entitled to rectification of defects or replacement of goods or to grant a suitable credit note in order to avoid the customer’s remedies. VI. Termination of contract 1. Disregarding the compliance with the legal requirements, the customer is only entitled to terminate the contract, after announcing the Termination to FMD in writing and passing of a fruitless respite. If the customer claims replacement delivery, rectification of defects or any other kind of fulfillment, he his bound to this remedy for a reasonable period of time without being able to terminate the contract. The customer has to directly inform FMD in writing about the termination of the contract within a reasonable period of time. 2. Without disclaiming further claims or rights, FMD is entitled to terminate the contract partially or completely without damage, if the customer disagrees to these Terms of International trade; if the confirmation of order is received by the customer later than 14 days after printing; if insolvency proceedings regarding the customer’s estate has been opened; if the customer fails to comply with vital requirements towards FMD or a third party without explanation; if the customer has given false data concerning his credit ranking; if FMD is -without being responsible- not supplied correctly or not at all; or if FMD is not able to fulfill is contractual duties by reasonable means. Hereby the customers and FMD’s noticeable interests when concluding the contract and the agreed service in return have to be considered. VII. Damages 1. FMD is only obliged to pay contractual and lawful damages according to the following terms a) In the first instance the customer is bound to choose the other remedies, damages are only paid for the remaining losses, in no case instead of other remedies. b) FMD is not liable for its suppliers or subcontractors or for disadvantages caused (partly) by the customer. FMD is not liable for interferences caused by natural or political incidents, industrial actions, sabotage, accidents, terrorism, biological, physical or chemical actions nor any other circumstances which FMD can not master by reasonable means. In other respects FMD is only liable as far as its organs or personnel deliberately or grossly negligent breaches contractual duties towards the customer. c) In case of liability FMD refunds within the borders according to section VII.1.d) the customer’s proven loss or damage as far as the customer could not have averted it and occurrence and amount of loss were predictable for FMD upon conclusion of the contract. The customer has to point out to FMD special risks, atypical damage possibilities and unusual damage heights in written form before completion of the contract. Besides, the customer is obliged to the damage decrease, as soon as a breach of the contract is recognized or becomes recognizable. d) FMD is not liable for lost profits and ideal interferences. Moreover, the level of the damages as a result of late delivery is limited for every full lateness-week to 0.5 per cent, in total max. five per cent, and as a result of other breach of duty on Geschäftsführer: Dipl- Kfm. Jürgen Horstmann Richard Netzel HRB Osnabrück 110103 Ust-ID: DE 117578973 Deutsche Bank AGBielefeld 07.01.2014 Kto-Nr. 0 241 661 BLZ: 480 700 20 Seite 3 von 4 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen a. T. W. 200 percent of the respective value of delivery. This paragraph is not applicable with intentional or coarsely careless faults of the organs or the leading employees of FMD. e) The preceding regulations b) to d) are not applicable, as far as, irrespective of the choice of law according to sec. IX.-3, legal regulations are to be applied providing demands and a further liability. f) The period of limitation for contractual claims applies in the same way to statutory claims of the customer against FMD which compete with contractual claims. As far as the claim has not come under the statute of limitations before, an exceptional period of six months is applicable to the proceeding of complaints on damages, which begins with the rejection of the damages. g) The preceding regulations to the liability of FMD are also applicable to the personal liability of FMD’s employees, workers, representatives and assistants. 2. Irrespective of further statutory or contractual claims by FMD, the customer is obliged towards FMD to the following damages: a) In case of the unpunctual payment the customer refunds the usual costs that arise as a result of the legal pursuit in and out of court in home and foreign country. He also has to pay interest rate at a similar level applicable in Dissen a. T. / Germany to unsecured short-term credits in the currency agreed upon. b) In case of substantially delayed or missing delivery caused by the customer, FMD is entitled to claim a flat rate of 15 percent of the respective value of delivery without proof of damage. VIII. Other regulations 1. Delivered products remain property of FMD until covering of all existing demands against the customer. The regulation about the danger of price and performance in sec. III.-8 is not changed by the retention of title. 2. Without renunciation from FMD on further claims, the customer exempts FMD from any entitlements of third parties, which are raised on the basis of product liability or similar regulations against FMD, as far as these claims are supported by the circumstances given, e.g. by the presentation of the product by the customer or other third parties without explicit and written approval of FMD. The exemption includes in particular the expenditures made by FMD and is guaranteed by the customer under renunciation of further conditions or other objections, in particular under renunciation of supervision and recall duties as well as under renunciation of the objection of statute of limitation. 3. FMD reserves all rights of property, origin and other commercial protection originating from the company know-how on all pictures and drawings, calculations and other documents, as well as software put to the customers disposal whether in physical or electronical form. 4. All notifications, explanations, announcements et cetera are to be written exclusively in German or English language. Communications by means of Fax or E-mail are enough for the written form. Ein Unternehmen der Horstmann Group Telefon: +49-(0)5421-9448-0 Fax:: +49(0)5421-9448-41 FMD Möbel GmbH Heidländer Weg 68 D – 49201 Dissen info@fmd-moebel.de www.fmd-moebel.de IX. General terms for the contract 1. Location for Payment, delivery or any other obligations from the legal relations of FMD with the customer is Dissen a. T. / Germany. This regulation also applies if FMD undertakes the costs of payments, fulfils services for the customer at another place, or if payment against handing over of products or documents is to be performed, or if fulfilled services have to be reverted. The arrangement of INCOTERMS of the group F or the group C or arrangements to the payment of the expenses contain no change of the preceding regulation about the place where the contract is to be fulfilled. FMD is entitled to demand payment also at the head office of the customer. 2. For the legal arrangement with the customer, the agreements of the United Nations as amended on 11th April, 1980 about International Sale of goods (UNKaufrecht/ CISG) apply in the English-speaking version. The same is the case with the relevant commercial practices agreed upon in Dissen a. T. / Germany. The CISG applies beyond the range of its application and in spite of contract-stated reservations also to all contracts which are subject to the international terms of trade as stated in the regulations in sec. I. In case of use of trade clauses, the INCOTERMS 2000 of the international Chamber of Commerce are to be used taking into account the regulations stipulated in these international terms of trade. 3. The CISG in conjunction with these international terms of trade apply exclusively to the signing of contracts, including arrangements concerning the court competence and the inclusion of these international terms of trade, as well as the contractual rights and duties of the participating parties including precontractual and other accessory obligations, as well as to the interpretation of the above. Beyond the validity of the CISG, the legal relations of the parties determine themselves according to the not standardized Swiss law, namely to the Swiss contract law. 4. All contractual and extra contractual disagreements from or in connection with contracts, for which these terms of international trade is supposed to be applicable, are to be decided in the well-established legal way under preclusion according to the arbitration board order of the London Court of international Arbitration (LCIA). The arbitration board consists of three referees. One of them is nominated by the plaintiff and the defendant respectively. If the claim values less than EUR 5000, the board consists of one referee. The place of the arbitrational procedure is Zurich Switzerland; the language can be German or English. Nevertheless, FMD is entitled in particular cases to raise complaint before the state courts in the domicile of the customer or any other responsible state court, indicated by home or foreign law. 5. Should regulations of these terms of international trade be or become entirely or partly ineffective, the regulations for the rest remain effective. The parties are required to substitute the ineffective regulation by a lawful regulation similar to the economic sense. Geschäftsführer: Dipl- Kfm. Jürgen Horstmann Richard Netzel HRB Osnabrück 110103 Ust-ID: DE 117578973 Deutsche Bank AGBielefeld 07.01.2014 Kto-Nr. 0 241 661 BLZ: 480 700 20 Seite 4 von 4