GENERAL TERMS OF DELIVERY FOR FALU RÖDFÄRG These General Terms of Delivery are valid between Stora Kopparbergs Bergslags AB, hereinafter called Falu Rödfärg, and buyers of paint, hereinafter called the Buyer. The terms of delivery are valid if nothing else has been agreed upon in writing between the parties. In these Terms of Delivery the material that is sold is called “the Goods”. 1. CONCLUSION OF CONTRACT A tender, or another message, that usually should be regarded as a tender, submitted by Falu Rödfärg, is valid under no obligation if nothing else has been explicitly stated in the tender or message. If the Buyer places an order with Falu Rödfärg, Falu Rödfärg will be bound by contract in connection with the written order acknowledgement of Falu Rödfärg. 2. DELIVERY OF AND RISK FOR GOODS If nothing else has been stated in the order acknowledgement of Falu Rödfärg, the Goods should be regarded as delivered when it is made available as deliverable at the warehouse of Falu Rödfärg, Falu Vapen, Sundbornsvägen 3, SE-791 07 Falun, Sweden. The risk for the Goods is passed to the Buyer when loading of Goods onto the transport vehicle at the warehouse of Falu Rödfärg has started, however, if the transport is delayed by the Buyer the risk should be regarded as being passed when the Goods has been delivered. If Falu Rödfärg has undertaken to arrange the transport, by its own or other transport vehicles, this will be effected at the risk and expense of the Buyer. 3. TIME OF DELIVERY The time of delivery is stated in the order acknowledgement of Falu Rödfärg. If the time of delivery is stated as a certain period of time, it should be counted from the date on which the contract was concluded. 4. SUCCESSIVE DELIVERIES If the contract is intended for successive deliveries (part deliveries), the Buyer is not entitled to cancel the contract at delays of a part delivery or at faults or deficiencies in the part delivery, unless it does not refer to the part delivery in question. 5. DELAY Ver. March 2011 corresponding to three times the value of the delivered Goods (part delivery) at a maximum. The responsibility of Falu Rödfärg does not include damages that might have been caused by faulty or uncommon use of the Goods, i.e. it is used on such materials or exposed to such conditions, e.g. weather and moisture, that the Goods is not intended for. Furthermore the responsibility of Falu Rödfärg for faults or deficiencies does not include normal wear and tear or impairment and is not valid more than one year from the date of delivery – unless nothing else has been agreed upon between the parties. In excess of what has been stipulated above, Falu Rödfärg has no responsibility for faults or deficiencies of the Goods. Falu Rödfärg is thus not liable to pay any compensation depending on any faults or deficiencies to the Buyer, for loss of production, non-profit or any other indirect damages. This limitation of the responsibilities of Falu Rödfärg, however, is not valid in case the company is guilty of gross negligence. 8. COMPLAINT OF FAULTS AND DEFICIENCIES Damage, or loss that is visible must be reported immediately on receipt of the goods and noted on the signed copy of the transport document or other document. Recipients of a consignment are obliged to check immediately on receipt if the goods have suffered any damage that is hidden by the packaging. The Buyer should inform Falu Rödfärg in writing about faults or deficiencies of the Goods immediately or within one week at the latest from the date the Buyer has noticed or should have noticed the fault or the deficiency. Should the Buyer neglect doing so, Falu Rödfärg will be released from liability for the fault or the deficiency. Should Falu Rödfärg receive information about faults of the Goods or if the Buyer has noticed or should have noticed that the Goods were faulty, Falu Rödfärg is entitled to prescribe that the Buyer should cease using the Goods. The Buyer should on his own initiative cease using such Goods that the Buyer understands or should understand will make professional work impossible or might cause damages. Should the Buyer not cease using the Goods, when this have been prescribed or otherwise should have been done, Falu Rödfärg will be released from any other liabilities for the fault in question than to deliver faultless Goods. 9. RETURN DELIVERIES Return deliveries will only be accepted after agreements entered upon in advance. 12. TERMS OF PAYMENT Unless nothing else is agreed upon between the parties, payment should be Falu Rödfärg by hand thirty days after the invoice date at the latest. If payment should not have been effected on the due date, the interest rate on delayed payment will be eight percentage units above the current reference interest rate determined by the Swedish Riksbank. Should the Buyer’s delayed payment cause any costs for Falu Rödfärg in the form of exchange, inflation or depreciation losses or should there be other costs such as costs for reminder letters etc, the Buyer must compensate Falu Rödfärg for its costs. 13. INSOLVENCY etc. Should there be a plausible reason for supposing that the Buyer will not fulfil his obligations to pay, Falu Rödfärg is entitled to retain further deliveries and also to require that an acceptable guarantee is provided. If the guarantee should not be provided without delay, Falu Rödfärg is entitled to cancel the contract in writing. Falu Rödfärg is entitled to cancel the purchase in accordance with this provision also after the Buyer has come into possession of the Goods. 14. FORCE MAJEURE Should as a consequence of circumstances such as a labour dispute whatever it might be, fire, explosion or another serious accident, natural catastrophe, war, rebellion, decision of official authority, extensive operational disturbances at the party, non-delivery from subcontractors or lack of raw materials, abnormal increase of commodity prices or circumstances on a par with those mentioned, the possibilities of Falu Rödfärg to perform the possibilities of each individual receiver to receive the Goods be impeded or made considerably difficult, Falu Rödfärg and the Buyer respectively are entitled to postpone the delivery (part delivery) during such a long time that is required to overcome the effects of such a circumstance, unless the circumstances should have been considered when entering into the contract and the party has had no reasonable possibility to eliminate the detrimental effects of the circumstances. If this period of time should exceed two months, each party has the right to cancel the contract, in total or partly, concerning the deliveries that should have been performed during the period of time in question. This is also valid if such a circumstance as referred to above should occur after the delivery time agreed upon. If a party finds that he cannot keep to the agreed upon time of delivery (part delivery), receipt of the Goods, or the undertaking of another party, the other party – unless nothing else has been agreed upon – should be informed hereof immediately. 10. RESPONSIBILITY FOR THE DAMAGING QUALITIES OF THE GOODS (PRODUCT LIABILITY) If the delay depends on another factor than that stated in item 15 below, and it puts the other party, not responsible for the delay, to inconvenience, and the other party understood or should have understood it, that party is entitled to cancel the contract in its entirety, or if it is a matter of part deliveries, as far as the part delivery concerns. The information from Falu Rödfärg concerning the Goods is based upon laboratory or application technical experiments and will only serve as guidance when choosing products, method of working and field of application and is not a guarantee for the appropriateness of the Goods for a certain purpose. A delayed delivery does not entitle the Buyer to claim indemnification unless Falu Rödfärg shows gross negligence and the Buyer can prove that the delay has caused considerable damage. Falu Rödfärg is not in any case responsible for damages that the Buyer may be subjected to as a consequence of the fact that the Goods have caused damage to other properties belonging to the Buyer, whatever it might be. Falu Rödfärg is entitled to assign or pledge its rights in accordance with this contract to another party within the Stora Enso group of affiliated companies. Nor is Falu Rödfärg responsible towards the Buyer concerning claims for compensation from the Buyer, based on claims for indemnification from a third party, including staff employed at the Buyer, as a consequence of damage to property or personal injury, other than in such cases where the Buyer according to compulsory statutes has been forced to be responsible for it and the Buyer in accordance with such a statute has the right by recourse to forward the claim to Falu Rödfärg, and provided that Falu Rödfärg has had the opportunity to consult with the Buyer in connection with the handling of the matter. 16. RIGHT TO INFORMATION 6. TIME FOR REQUEST FOR INDEMNIFICATION CAUSED BY DELAY Should the Buyer want to cancel the purchase or claim indemnification depending on delay the Buyer should notify Falu Rödfärg about this in writing at least one week prior to the delivery. 7. FAULTS AND DEFICIENCIES IN GOODS The agreed upon quantity may be exceeded by or fall below 10 % and such a deviation should not be considered as a fault or deficiency. If the delivered Goods are marred by errors or are defective, the Goods should be exchanged – if a party demands it and it is practically possible by reasonable means – towards faultless Goods or the deficiency should be supplied. If the fault has not been remedied or the deficiency supplied within a reasonable time, the Buyer is entitled to have a deduction from the purchase-price corresponding to the fault or deficiency; or if the fault or deficiency is important and Falu Rödfärg understood or should have understood it, be entitled to cancel the contract. The obligation of Falu Rödfärg to compensate the Buyer for damage as a direct consequence of faults or deficiencies of the Goods is limited to an amount corresponding to the price of the delivered Goods (part delivery). Should the Buyer show that he, as a direct consequence of faults or deficiencies of the Goods, should have had outlays for extra work regarding e.g. removal of faulty Goods or application of delivered faultless Goods, Falu Rödfärg is above that obliged to pay compensation, however, with an amount Falu Rödfärg is liable in accordance with compulsory statutes in those cases where the third party claims compensation directly from Falu Rödfärg based on damaging qualities of the Goods. However, the Buyer should in such cases indemnify Falu Rödfärg as long as the damage has arisen as a consequence of the fact that the Buyer has neglected the instructions of Falu Rödfärg how to use the Goods or the damage otherwise totally or partially is a consequence of the action or neglect of the Buyer. 11. THE PRICE The price of the Goods is stated in the current price list of Falu Rödfärg. Should there be a price increase, change of currency, tax increase or other events beyond the control of Falu Rödfärg, Falu Rödfärg will be entitled to increase the price correspondingly, whereby the Buyer still is bound to the purchase. The price is stated in SEK, excluding freight costs and VAT. A party, who wants to make use of the above mentioned privilege, should without delay inform the other party about this in writing. A party is not liable to pay damages in connection with cancellation – in total or partly – of the contract owing to a circumstance stated in this item. 15. ASSIGNMENT As the Buyer has come to an agreement with Falu Rödfärg, the Buyer, and the persons who possibly sign the contract, approve that Falu Rödfärg handles information about the Buyer and the persons who have signed the contract. With handling we refer to each measure, or series of measures, that are taken, whether made automatically or not, e.g. collection, registration or storage. The information will be handled with the aim to administrate this contract. The Buyer, or the persons who have signed the contract, also approve that the information may be forwarded to companies included in the Stora Enso group of affiliated companies or to the collaboration partners of Falu Rödfärg. 17. LITIGATION Litigation on account of the contract should be arbitrated in Sweden, in accordance with the arbitration law, and according to Swedish law without application of its regulations of international private law. However, a party is entitled to apply for injunction to pay concerning claims on delivered Goods being unpaid. If the application for injunction to pay should be opposed in due time and the party wants to go on with the litigation, this should be made by means of arbitration which may be demanded also when the case about injunction to pay has been removed from the cause-list. If a party should claim damages which do not refer to a higher amount than 75 000 SEK excl. interest, collection charges and law expenses, the party instead may start proceedings at a general court.