General Terms and Conditions of Sale of Northcomp GmbH, Hückeswagen

Status: 12.07.2011

§ 1 Scope of application

(1) These Terms and Conditions of Sale shall apply exclusively to entrepreneurs, legal entities under public law or special funds under public law within the meaning of Section 310 (1) of the German Civil Code (BGB). We shall only recognise terms and conditions of the customer that conflict with or deviate from our Terms and Conditions of Sale if we expressly agree to their validity in writing.

(2) These Terms and Conditions of Sale shall also apply to all future business transactions with the Purchaser, insofar as legal transactions of a related nature are concerned.

§ 2 Offer and conclusion of contract

If an order is to be regarded as an offer in accordance with § 145 BGB, we may accept it within two weeks.

§ 3 Documents handed over

We reserve the property rights and copyrights to all documents provided to the customer in connection with the placing of the order, such as calculations, drawings, etc. These documents may not be made accessible to third parties unless we give the customer our express written consent. These documents may not be made accessible to third parties unless we give our express written consent to do so. If we do not accept the orderer's offer within the period of § 2, these documents must be returned to us without delay.

§ 4 Prices and payment

(1) Unless otherwise agreed in writing, our prices are ex works excluding packaging and plus value added tax at the applicable rate. Costs of packaging shall be invoiced separately.

(2) Payment of the purchase price shall be made exclusively to the account specified in the invoice. The deduction of a discount is only permissible with a special written agreement.

(3) Unless otherwise agreed, the purchase price shall be paid within 10 days after delivery. Default interest shall be charged in the amount of 8 % above the respective applicable base rate p.a.. The assertion of a higher damage caused by default remains reserved.

(4) Unless a fixed price agreement has been made, we reserve the right to make reasonable price changes due to changes in wage, material and distribution costs for deliveries which take place 1 month or later after conclusion of the contract.

§ 5 Offsetting and rights of retention

The customer shall only have the right to offset if his counterclaims have been legally established or are undisputed. The customer is only entitled to exercise a right of retention insofar as his counterclaim is based on the same contractual relationship.

§ 6 Delivery time

(1) The commencement of the delivery period stated by us is subject to the timely and proper fulfilment of the customer's obligations. We reserve the right to plead non-performance of the contract.

(2) If the customer is in default of acceptance or culpably violates other duties to cooperate, we shall be entitled to demand compensation for the damage incurred by us in this respect, including any additional expenses. We reserve the right to assert further claims. If the above conditions are met, the risk of accidental loss or accidental deterioration of the object of sale shall pass to the customer at the point in time at which the customer is in default of acceptance or debtor's delay.

(3) In the event of a delay in delivery not caused by us intentionally or through gross negligence, we shall be liable for each completed week of delay within the framework of a lump-sum compensation for delay in the amount of 1 % of the value of the delivery, but not more than 10 % of the value of the delivery.

(4) Further legal claims and rights of the purchaser due to a delay in delivery remain unaffected.

§ 7 Transfer of risk in case of shipment

If the goods are shipped to the Purchaser at the Purchaser's request, the risk of accidental loss or accidental deterioration of the goods shall pass to the Purchaser upon dispatch to the Purchaser, at the latest upon leaving the factory/warehouse. This shall apply irrespective of whether the goods are dispatched from the place of performance or who bears the freight costs.

§ 8 Retention of title

(1) We retain title to the delivered item until full payment of all claims arising from the delivery contract. This shall also apply to all future deliveries, even if we do not always expressly refer to this. We shall be entitled to take back the object of sale if the customer acts in breach of contract.

(2) As long as ownership has not yet passed to him, the purchaser is obliged to treat the object of sale with care. In particular, he is obliged to insure it adequately at his own expense against theft, fire and water damage at replacement value. If maintenance and inspection work has to be carried out, the purchaser must carry this out in good time at his own expense. As long as ownership has not yet been transferred, the purchaser must inform us immediately in writing if the delivered item is seized or exposed to other interventions by third parties. Insofar as the third party is not in a position to reimburse us for the court and out-of-court costs of an action in accordance with § 771 ZPO (German Code of Civil Procedure), the purchaser shall be liable for the loss incurred by us.

(3) The customer is entitled to resell the reserved goods in the normal course of business. The purchaser hereby assigns to us the claims of the customer arising from the resale of the goods subject to retention of title in the amount of the final invoice amount agreed with us (including the applicable statutory value added tax). This assignment shall apply irrespective of whether the purchased goods have been resold without or after processing. The customer shall remain entitled to collect the claim even after the assignment. Our authority to collect the claim ourselves remains unaffected by this. However, we shall not collect the claim as long as the customer meets his payment obligations from the proceeds collected, is not in default of payment and, in particular, no application for the opening of insolvency proceedings has been filed or payments have not been suspended.

(4) The processing or transformation of the object of sale by the customer shall always be carried out in our name and on our behalf. In this case, the purchaser's expectant right to the object of sale shall continue to apply to the transformed object. If the object of sale is processed with other objects not belonging to us, we shall acquire co-ownership of the new object in the ratio of the objective value of our object of sale to the other processed objects at the time of processing. The same shall apply in the event of mixing. If the mixing takes place in such a way that the customer's item is to be regarded as the main item, it shall be deemed agreed that the customer transfers co-ownership to us on a pro rata basis and shall keep the sole ownership or co-ownership thus created in safe custody for us. In order to secure our claims against the purchaser, the purchaser also assigns to us such claims as accrue to him against a third party as a result of the combination of the reserved goods with a piece of real estate; we already accept this assignment now.

(5) We undertake to release the securities to which we are entitled at the request of the customer insofar as their value exceeds the claims to be secured by more than 20 %.

§ 9 Warranty and notice of defects as well as recourse/manufacturer recourse

(1) Warranty rights of the purchaser presuppose that the purchaser has duly fulfilled his obligations to inspect and give notice of defects in accordance with § 377 of the German Commercial Code (HGB). The terms of use stated in the current catalogue (No. 6/2010) apply to the wheels and castors area and also represent the limits of our warranty.

For the area of chair and furniture components, we would like to point out that we assume the warranty for properly installed components of our program that have been used for their intended purpose and have not been modified. The products manufactured from them must comply with the guidelines of the Federal Institute for Occupational Safety and Health and the respective German, European or international standards. Otherwise there are no warranty claims.

(2) Claims for defects shall become time-barred 12 months after delivery of the goods supplied by us to our customer. The above provisions shall not apply if longer periods are prescribed by law. Our consent must be obtained prior to any return of the goods.

(3) If, despite all due care, the delivered goods show a defect which was already present at the time of the transfer of risk, we shall, at our discretion, either repair the goods or deliver replacement goods, subject to timely notification of defects. We shall always be given the opportunity to remedy the defect within a reasonable period of time. Claims under a right of recourse shall remain unaffected by the above provision without restriction.

(4) If the supplementary performance fails, the customer may - irrespective of any claims for damages - withdraw from the contract or reduce the remuneration.

(5) Claims for defects shall not exist in the case of only insignificant deviation from the agreed quality, in the case of only insignificant impairment of usability, in the case of natural wear and tear as well as in the case of damage which occurs after the transfer of risk as a result of incorrect or negligent handling, excessive stress, unsuitable operating materials, defective construction work, unsuitable building ground or due to special external influences which are not assumed under the contract. If the purchaser or third parties carry out improper repair work or modifications, there shall also be no claims for defects for these and the resulting consequences.

(6) Claims by the customer for expenses incurred for the purpose of subsequent performance, in particular transport, travel, labour and material costs, are excluded insofar as the expenses increase because the goods delivered by us have subsequently been taken to a location other than the customer's branch office, unless the transfer is in accordance with their intended use.

(7) The Purchaser's right of recourse against us shall only exist to the extent that the Purchaser has not entered into any agreements with its customer which go beyond the statutory mandatory claims for defects. Furthermore, paragraph 6 shall apply accordingly to the scope of the Purchaser's right of recourse against the Supplier.

§ 10 Miscellaneous

(1) This contract and the entire legal relationship between the parties shall be governed by the laws of the Federal Republic of Germany to the exclusion of the UN Convention on Contracts for the International Sale of Goods (CISG).

(2) The place of performance and exclusive place of jurisdiction and for all disputes arising from this contract is our registered office, unless otherwise stated in the order confirmation.

(3) All agreements made between the parties for the purpose of executing this contract are set down in writing in this contract.

(4) Should individual provisions of this contract be or become ineffective or contain a loophole, the remaining provisions shall remain unaffected. The parties undertake to replace the invalid provision with a legally permissible provision that comes as close as possible to the economic purpose of the invalid provision or fills this gap.

Northcomp GmbH

Hückeswagen

Status: 12.07.2011