General Conditions GENERAL CONDITIONS OF DELIVERY AND PAYMENT General conditions of sale, delivery and payment of MBrands-International of Katwijk, in the Netherlands. All prices in euro. All prices under proper reserves. PMS 164 PMS 172 Article 1: Applicability of these conditions. PMS 421 1.1 All proposals shall be made with the declaration that these general conditions of sale, PMS 423 deliveryandpaymentshallapplybothtotheproposalandtheacceptancethereof,andto the agreement thus established. 1.2 Generalconditions(ofpurchase)oftheclientshallonlyapplywhereitisexpresslyagreedin writingthattheseapplywiththeexclusionoftheseconditionsofsupplytotheagreement between parties. Article 2: Proposals, quotations. 2.1 Allproposalsshallbewithoutobligationunlessthesecontainaperiodforacceptance.Where aproposalcontainsanofferwithoutobligation,weshallhavetherighttorevoketheoffer within two working days of receipt of acceptance. 2.2 Incaseofcompositepricequotationsthereshallbenoobligationtodeliverapartforthe corresponding part of the price indicated for the whole. 2.3 Where reservations or modifications with respect to the proposal are included in the acceptance,asanexceptiontotheprovisionsofArticle2.1,theagreementshallonlycome into being where we have notified the client that we agree to these deviations from the proposal. 2.4 If no order is placed after the proposal requested, the costs of this may only be charged where this has been agreed. 2.5 Foradditionalandextraworkforwhichnopricehasbeenagreedthepricetobepaidshall be calculated on the basis of costing. Article 3: Prices and price changes. 3.1 Allpricesindicatedshallbeexclusiveofvalueaddedtax(VAT)andotherleviesimposedby the Authorities. 3.2 Thepricewhichweindicatefortheservicetobeperformedshallonlyapplyforsuchservice and not for the dispatch and transport costs etc. 3.3 We shall be entitled to increase the agreed price if one or more of the following circumstancesoccuraftersignatureoftheagreement:increaseinthecostsofmaterialsor serviceswhicharenecessaryfortheexecutionoftheagreement,increaseindispatchcosts, wages,employer’schargesandsocialsecuritycontributions,inthecostsinvolvedinother conditionsofemployment,introductionofnewandincreaseinexistinggovernmentlevieson raw materials, energy or waste, an appreciable change in foreign exchange rates or, in general, circumstances which are comparable with all these. Article 4: Delivery method; reservation of ownership. 4.1 Unlessotherwiseagreeddeliveryshallbemadetotheplacewherewecarryonourbusiness. 4.2 We shall not be obliged to carry out delivery in parts. 4.3 The client shall be obliged to give his full cooperation to the delivery of the goods to be suppliedbyusinaccordancewiththeagreement.Theclientshallalsobeindefaultwithout being given notice thereof where he does not collect the goods to be delivered from us afterourfirstrequestorwhereadeliverytohisaddressisagreed,herefusestotakereceipt of the goods. 4.4 Anydeliveryofgoodsbyustotheclientshallbemadeonreservationoftitlethereof,until theclienthaspaideverythingtowhichheisobligedundertheagreement,includinginterest and costs. 4.5 Wheretransportofthegoodstobedeliveredisagreed,thisshallbeforaccountoftheclient, unlessfreedeliveryhasbeenagreed.Theclientshallonlybeartheriskduringtransport. Theacceptanceofgoodsfromusbythecarriershallbedeemedevidencethatthesearein anexternallygoodcondition,unlessthecontraryisshownbytheconsignmentnoteorthe receipt. 4.6 We shall not be responsible for the storage of the goods to be delivered, unless this is expresslyagreed.Wherestorageiscarriedout,thisshallbeforaccountandriskoftheclient. Article 5: Delivery period. Deliveryperiodsindicatedshallneverberegardedasdeadlines,unlessotherwiseexpressly agreed.Incaseoflatedeliverywemustthereforebegivenwrittennotificationofdefault. Article 6: Partial delivery Anypartialdelivery,includingalsothedeliveryofcomponentsofacompositeorder,maybe invoiced.InsuchcasepaymentmustbemadeinaccordancewithArticle8‘termsofpayment’. Article 7: Check upon delivery. 7.1 Theclientshallbeobligedtocheckwithappropriatespeedafterdeliverywhetherwehave satisfactorilyfulfilledtheagreementandshallalsobeobligedtonotifyusimmediatelyin writing,shouldhefindthecontrary.Theclientmustcarryoutthecheckjustmentionedand give the relevant notification at the latest within 24 hours of delivery. 7.2 We shall always be entitled to provide a satisfactory new service in place of a previous unsatisfactory service, unless the default cannot be remedied. 7.3 Thefulfillmentoftheagreementshallberegardedbetweenpartiesassatisfactorywherethe clienthasbeenindefaultofpromptlycarryingoutthecheckorthenotificationasreferred to in paragraph 1 of this Article. 7.4 Wheretheperiodof24hoursreferredtointhefirstparagraphofthisarticleinaccordance withcriteriaofreasonablenessandfairnessmustalsoberegardedasunacceptablyshortfor acarefulandalertclient,thisperiodshallbeextendedatthelatestuntilthefirsttimewhen the check or the notification given to us by client is reasonably possible. 7.5 Ourserviceshallinanycaseberegardedbetweenpartiesassatisfactorywheretheclient hastakenintouse,treatedorprocessed,ordeliveredtothirdpartiesthegoodsdeliveredor partofthegoodsdeliveredorhadthemtakenintouse,treatedorprocessedordeliveredto thirdpartiesunlesstheclienthastakenintoaccounttheprovisionsofthefirstparagraphof this article. Article 8: Terms of payment. 8.1 Paymentmustbemadeupondeliveryincash,unlessotherwiseexpresslyagreedinwriting. 8.2 Whereadiscountforcashpaymentisagreed,thismayonlybedeductedfromtheinvoice amountwherepaidwithintheagreedperiodandwhereatthetimeoftheapplicationofthe discount there are not any other unpaid invoices. 8.3 Fromtheduedatetheclientshalloweinterestontheinvoiceamountof1%permonthor part thereof. 8.4 Thedemandforpaymentofthepurchasepriceshallbeimmediatelypayableiftheclientis declaredbankrupt,appliesforsuspensionofpayment,anapplicationforplacingunder restraintispending,anyattachmentismadeongoodsorreceivablesofclient,clientdies orwherethisisapartnership,aprivatelimitedcompanyorapubliclimitedcompany,itgoes into liquidation, is dissolved or acquires another partner. 8.5 Where the client is in arrears with any payment - even where this is the result of another agreement-thenallamountstobepaidbyhimtousshallbepayableuptothefullamount, irrespectiveofthestatusoftheordersandwecandemandimmediatepaymentthereof. Inthatcasetheexecutionofanyordergivenbythisclientistobesuspendeduntilpayment ismadewithinaperiodtobesetbyuswhichhasbecomepayableincaseoftheprevious sentence.Wherepaymenthasnotbeenmadewithinthisperiod,weshallbeentitledto cancelallordersofthatclient,notwithstandingallrightstocompensationasprovidedin case of ‘cancellations’ in Article 10. 8.6 Any suspension of payment granted may be withdrawn by us at any time. 8.7 Apaymentisregardedasreceivedoncetheamountinquestionhasbeencreditedtothe account indicated or have been handed over in cash. 8.8 A payment made by the client shall always cover all interest and costs owing and then invoicespayablewhichhavebeenoutstandingthelongest,evenwheretheclientindicates that the payment relates to a later invoice. 8.9 All costs, both extrajudicial and judicial, including the costs for solicitors, bailiffs and collectionagencies,incurredwithregardtothecollectionoftheamountpayablebythe client and not paid promptly shall be for account of the client. They shall be fixed at a minimum of 15% of the amount in question and shall amount to at least 150 Euro. Article 9: Retention right. Weshallbeentitledtoholdontothegoodsoftheclientonourpremisesuntilpaymentofall costs,whichwehaveincurredtoexecuteordersfromthissameclient,unlesstheclienthas provided sufficient surety for these costs.We shall also have the retention right where the client becomes bankrupt. Article 10: Cancellations. Wheretheclientcancelstheordergiveninfullorinpart,heshallbeobligedtoreimburseus forallcostsalreadyincurredwithaviewtotheexecutionofthisorderand,wherewewish this,totakethegoodsintendedfortheexecutionofthisorderforhisaccountattheprices includedbyusinthecosting.Thisisallnotwithstandingourrighttoremunerationforloss of profit as well as the other loss arising from the cancellation involved. Article 11: Force majeure. 11.1 Thedeliveryperiodreferredtointheseconditionsshallbeextendedbytheperiodduring whichwearepreventedbydefaultwhichcannotbeattributedtous-furtherindicatedby force majeure - from fulfilling our obligations. 11.2 Thereisaquestionofforcemajeureonourpartwhereaftersigningthepurchaseagreement wearepreventedfromfulfillingourobligationsarisingfromthisagreementorpreparingfor themasaresultofwar,dangerofwar,civilwar,revolt,warrisk,fire,waterdamage,flooding, strike,occupation,lock-out,importandexportbarriers,governmentmeasures,faultsin machinery,disruptionstotheenergysupply,allbothinourcompanyandatthirdparties, fromwhomwehavetoobtainallorpartofthegoodsrequired,aswellasincaseofstorage orduringtransportwhetherornotunderourownmanagement,andalsobyallothercauses which arise through no fault of ours or outside our sphere of risk. 11.3 Wherethedeliveryisdelayedbyforcemajeureformorethanfourteendays,bothweandthe clientareempoweredtoregardtheagreementasterminated.Inthatcaseweshallonlyhave a right to reimbursement of the costs to be incurred by us. Article 12: Liability. 12.1 Ourliabilityundertheagreementwiththeclientshallbelimitedtoanamountproportionate to the agreed price in accordance with criteria of reasonableness and fairness. 12.2 Weshallnotbeliablefordamageofanytypewhateverwhicharisesbecauseorafterthe clienthas,afterdelivery,takenthegoodsintouse,treatedorprocessedthem,delivered themtothirdpartiesorhadthemtakenintouse,treatedorprocessedordeliveredtothird parties. 12.3 Weshallalsonotbeliableforlossintheformoflossofprofitorreductioningoodwillinthe company or the profession of the client. 12.4 Whereweareheldliablebyathirdpartyforanydamageforwhichwearenotliablebyvirtue oftheagreementwiththeclientortheseconditionsofdelivery,clientshallindemnifyusin full from this and reimburse us for everything that we have to pay to this third party. Article 13: Applicable law and disputes. 13.1 Only Dutch law shall apply to the agreements between us and the client. 13.2 AlldisputesbetweenpartiesshallbesettledbythecompetentCourt,inthedistrictinwhich we are established. 13.3 Weshallhoweverremainauthorizedtosummonstheclientbeforethecourtcompetentin accordance with the law or the applicable international convention.