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I. Validity

1. All offers, sales, deliveries and services of HAZET-WERK Hermann Zerver GmbH & Co. KG (hereinafter referred to as “HAZET”) are based exclusively on the following General Terms and Conditions (hereinafter referred to as “Terms and Conditions”). We herewith explicitly oppose the purchaser’s terms and conditions in the sense of § 305 et seq., German Civil Code (Bürgerliches Gesetzbuch – BGB).
2. The following Terms and Conditions are an integral part of all contracts concluded with HAZET’s contractual partners for its deliveries and services. Agreement is given to the Terms and Conditions when the order is placed or the delivery accepted. The Terms and Conditions do not apply to relations with consumers in the sense of § 13, BGB.
3. Modifications and/or supplements to these Terms and Conditions are only valid if written agreement thereto has been given.
4. “Purchaser” refers to the contractual partner irrespective of the nature of the contract.
5. To the extent that nothing else is agreed in these Terms and Conditions, the determining factor for the interpretation of the various sales clauses is the Incoterms in their latest version.

II. Offers and Conclusion of Contracts

1. HAZET offers are subject to confirmation and without obligation.Requests can be accepted by HAZET within thirty (30) days. The Purchaser is thus bound to its request for at least this period. A request is deemed as accepted when HAZET has confirmed it in writing to the Purchaser. The delivery and invoice are both deemed as confirmation of an order.
2. HAZET reserves the right to ownership and the copyright to the documentation pertaining to the offer (illustrations, drawings, descriptions and the like); third parties may only obtain access to the documentation if it is intended to be circulated. Otherwise it should upon request be returned to HAZET.
3. The information, drawings, illustrations, technicaldata, weights, measurements and descriptions of services included in brochures, catalogues, circulars, advertisements, price lists or in the documentation pertaining to the offer are only intended to convey a general idea of the products described. They do not include any explanations, other assurances or guarantees and shall not become an integral part of the contract. Deviations which are customary in the trade or modifications which are made due to legal regulations or are technical improvements are permitted as far as they do not adversely affect the contractually intended use.

III. Prices

1. Prices are net cash plus VAT of the respective statutory amount as well as freight ex works or warehouse and do not include outer packaging, postage and insurance.
2. If the Purchaser’s value of consignment exceeds a net value of EURO 500.00, i.e. excluding VAT, the delivery shall be made with carriage paid to the Purchaser’s address within Germany and without charging for the packaging which is customary in the trade.

IV. Payment Conditions

1. As far as nothing else is agreed in writing, the invoices are due for full payment in euros within 30 days as of the invoice date irrespective of any delays in delivery for which HAZET is responsible. The receipt by HAZET shall determine the date of payment.
2. In deviation of the conditions under cipher 1 above, HAZET generally reserves the right to insist on payment by an irrevocable and confirmed letter of credit depending on the country of destination and business contact.
3. As long as purchase price receivables based on older invoices which are due for payment are still unsettled, it is not permitted to make a cash discount deduction in any case.
4. If special agreements are the basis, HAZET shall only accept as payment checks and bills of exchange which are rediscountable with the Bundesbank (German central bank).
5. Bills of exchange or checks shall be credited subject to receipt and with the value of the date when HAZET can ultimately dispose over the proceeds. The Purchaser shall bear all costs and disbursements which result from this.
6. If the Purchaser does not adhere to the payment targets stated under A.IV.1., the respective outstanding amount shall bear interest of 8 % above the base rate pursuant to § 247, BGB, to be paid by the Purchaser. The right to assert further claims due to the delay is unaffected hereby.
7. HAZET’s entire receivables shall become due immediately irrespective of the duration of accepted and credited bills of exchange if these payment conditions are not observed or if HAZET becomes aware of circumstances in the sense of A.VI.9. HAZET reserves the right to rescind from contracts or demand compensation instead of payment after the deadline has expired without any result. If HAZET exercises its right of rescission, it can satisfy its receivables from a private sale of the goods which are subject to the reservation of title and have been taken back.
8. The retention of payments or offsetting with the Purchaser’s counterclaims is only permitted if the counterclaims are undisputed or have become res judicata.
9. With the exception of pecuniary claims the Purchaser cannot assign or transfer the rights and obligations arising from these Terms and Conditions and/or from the contracts covered by them without HAZET’s prior written consent.
10. If HAZET receives information about a deterioration of the Purchaser’s financial circumstances or if HAZET learns that the Purchaser is otherwise acting contrary to the contract, HAZET is entitled to request advance payments or that security be provided before rendering still outstanding deliveries or services.

V. Security

1. HAZET reserves the right to the ownership of all delivered goods (reserved property) until the full payment of all outstanding amounts which exist at the time of delivery or come into existence later on, and/ or especially payment of the respective balance of the receivables, which HAZET has against the Purchaser for whatever legal reason. This also applies if payments are made on specially designated receivables.
2. The Purchaser may only sell reserved property during the course of normal business and as long as it is not behind with the payment of outstanding receivables towards HAZET. The Purchaser herewith assigns in advance to HAZET all receivables against third parties arising from such sales in the amount charged for the respective sold reserved property including the statutory VAT.
3. If the Purchaser sells the reserved property together with other objects not delivered by HAZET, the assignment of the receivables from the sale shall apply only in the amount of the invoiced value of the reserved property, which value is stated in the HAZET invoices.
4. The Purchaser is entitled to collect the receivables from the sale to third parties.
5. HAZET shall be entitled to revoke the authorization to collect the receivables given in A.V.4. if the Purchaser defaults on its payments and in the event of A.IV.9. Upon request the Purchaser must inform HAZET of the assigned receivables and their debtors and provide the documentation which is necessary to collect the receivables. Upon special request by HAZET the Purchaser shall inform the third-party debtors of the assignments having taken place.
6. As far as the Purchaser becomes entitled to claims against insurance companies or other third parties due to the reserved property deteriorating or becoming damaged, lost or destroyed or for other reasons, these claims shall also be assigned instead of the sales proceeds to HAZET in advance and to the same extent together with all ancillary rights.
7. Rights arising from the reservation of title and from all the special forms stipulated in these conditions are also deemed until the title is transferred in full as contingent liabilities which HAZET has accepted in the Purchaser’s interest.
8. The Purchaser may not make or allow dispositions regarding the reserved property, which dispositions do not correspond to the above conditions.
9. The Purchaser must inform HAZET in writing and without undue delay of seizures and other risks to HAZET’s rights, which risks arise from third parties, and give information necessary for legal action to be brought by a third party claiming title to the seized property in accordance with § 771, Code of Civil Procedure (Zivilprozessordnung – ZPO). The Purchaser shall be liable if HAZET suffers a loss because a third party cannot pay the legal and out-of-court costs of legal action which it must reimburse to HAZET pursuant to § 771, ZPO.
10. HAZET is entitled at the Purchaser’s expense to insure the reserved property against fire, water and theft unless the Purchaser itself can demonstrate that it has taken out the insurance.
11. If the value of the security including the possibilities to offset exceeds the secured receivables by more than 10 % for an extended period of time, HAZET is obliged upon the Purchaser’s request to release security of HAZET’s choice.

VI. Return of Goods

Goods can only be returned with HAZET’s prior written consent and if they are up-to-date, in their original packaging and can be resold. The return must be made free of charge. HAZET reserves the right to reduce the amount to be reimbursed by at least 20 % for administration and storage costs.

I. Delivery Periods, Delivery Dates

1. The delivery periods and dates stated by HAZET are not binding.
2. The delivery periods commence with the receipt of the order confirmation but not before all the details of the order have been completely clarified and any necessary national and international official certificates have been obtained. The delivery periods and dates refer to the time of delivery, i.e. dispatch ex works or warehouse; they shall also be deemed to have been observed with the notification that the goods are ready to be dispatched if HAZET is not responsible for the fact that the goods cannot be dispatched on time.
3. Without influencing HAZET’s rights arising from the Purchaser’s default – the agreed delivery period is extended by the time during which the Purchaser defaults on its obligations arising from this or other business plus an appropriate start-up period.
4. Partial deliveries are permitted as far as the Purchaser can be reasonably expected to accept them. Each partial delivery is deemed an independent business transaction.
5. HAZET is entitled to withhold outstanding deliveries if the Purchaser does not fulfill its payment obligations or if there is reasonable concern that it cannot fulfill such an obligation (right of retention). HAZET reserves the right in any case to make deliveries in return for advance payment or cash on delivery.

II. Special Conditions for Goods on Recall

For business with continuous deliveries HAZET must receive release orders and type categories for roughly the same amount per month. If the release orders or type categories are not given on time, HAZET is entitled after the deadline has expired without any result to make the type categories and deliver the goods itself or to rescind from the still outstanding part of the business and demand compensation instead of payment.

III. Force Majeure and Other Delivery Conditions

1. Cases of force majeure such as strikes, lock-outs, mobilization, war, blockades, import and export bans, lack of raw materials and fuel, fire and other circumstances, for which HAZET is not responsible, entitle HAZET to postpone the delivery for the duration of the hindrance plus an appropriate start-up period. This applies irrespective of whether the above circumstances occur at HAZET’s premises, the preliminary suppliers’ premises or one of the sub-contractors’ premises.
2. The Purchaser can demand an explanation from HAZET as to whether delivery will take place within an appropriate period or whether a rescission from the contract should be considered. If HAZET does not make a declaration within an appropriate deadline, the Purchaser can itself rescind from the as yet unfulfilled part of the delivery.
3. The declaration made by the preliminary supplier or the sub-contractor to HAZET regarding circumstances which have occurred at their premises pursuant to B.III.1. are deemed as sufficient proof that HAZET is not responsible for the hindrance of the delivery.

IV. Dispatch and Passing of Risk

1. The forwarding agent or freight carrier shall be determined by HAZET. The choice of itinerary and means of transport is left to HAZET due to the lack of a special agreement but excluding any liability.
2. Release orders must be given without undue delay for goods which have been notified as ready for dispatch on the agreed date. HAZET is otherwise entitled to store them as it sees fit at the Purchaser’s expense and risk and invoice them as delivered ex works or warehouse. The means of transport must be unloaded immediately if the delivery is made with carriage paid. The costs for any periods of delay shall always be borne by the Purchaser.
3. The risk shall in any case – including a confiscation – pass to the Purchaser when the goods are handed over to the forwarding agent or freight carrier or at the latest when the goods leave the works or warehouse – e.g. even if the delivery is made with carriage paid.
4. The Purchaser is obliged to examine the goods for damage and defects immediately after receipt. Defects, incorrect or short deliveries must benotified to HAZET within seven (7) days after receiving the goods at the latest since otherwise the goods are deemed to have been accepted. The Purchaser must immediately notify transport damage and visible defects to the relevant forwarding agent, hauler and/or freight carrier or the post office as well as HAZET.
5. Premature deliveries which the Purchaser can be reasonably expected to accept and excess or short deliveries which are customary in the trade are permitted.
6. The requested amount does not have to be reached or may be exceeded by up to 10 % for custom-made products. Custom-made products also include mass-produced articles which the Purchaser explicitly wishes to have a special designation. The Purchaser is not entitled to a right of rescission. The goods cannot be returned to HAZET.

V. Defects and Warranty

1. HAZET is entitled to choose whether all goods shall be repaired or new goods delivered or new services rendered (subsequent fulfillment) free of charge if they show a material defect during the statute of limitations – irrespective of their period of operation – and the cause of which defect already existed when the risk was transferred.
2. HAZET must always be first granted an opportunity for subsequent fulfillment pursuant to B.V.1. within an appropriate deadline.
3. Liability for defects does not exist if there is only a slight deviation from the agreed quality, a slight adverse effect regarding the usability, natural wear and tear or damage which occurs after the risk has been transferred due to incorrect or negligent treatment or damage which occurs due to another particular external influence.
4. Statutory recourse claims by the Purchaser against HAZET only exist as far as the Purchaser has not come to any understanding with its customer which exceeds the statutory claims due to liability for defects.
5. The reimbursement pursuant to B.V.4. above is limited to the cost price (e.g. transport and material costs) incurred by the Purchaser but not its profit margin towards the customer.
6. Further claims by the Purchaser due to material defects, which claims are asserted against HAZET and its vicarious agents, are excluded subject to the regulation in B.VI. of these Terms and Conditions.
7. Claims based on liability for defects have a statute of limitations of one year as of delivery.
8. Claims by the Purchaser based on damage arising from the violation of secondary obligations in a purchase contract, which damage does not consist of a defect, also have a statute of limitations of one year.

VI. Liability

1. Compensation claims on whatever legal grounds which are made by the Purchaser are excluded unless based on cases of intent, gross negligence, bodily injury, death or damage to health, due to the violation of a guarantee pursuant to § 444 BGB, inability or the violation of a major contractual obligation.
2. The compensation for the violation of a major contractual obligation is, however, limited to the foreseeable damage which is typical in contracts unless there is intent or gross negligence or liability due to bodily injury, death or damage to health or due to a guarantee pursuant to § 444, BGB. A reversal of the burden of proof to the Purchaser’s disadvantage is not associated with the above regulations.
3. The provisions of the product liability law shall apply without restrictions.

1. The place of fulfillment and exclusive court of venue for all disputes directly or indirectly resulting from this contractual relationship is Remscheid.
2. The legal relationship between HAZET and the Purchaser is exclusively subject to the law of the Federal Republic of Germany excluding the respective national provisions on the international conflict of laws, in particular the United Nations’ Convention on Contracts for the International Sale of Goods (CISG) dated April 11, 1980.
3. These Terms and Conditions shall apply until revoked.
4. Should any one of the clauses in these Terms and Conditions be or become invalid either in part or in full, the validity of the rest and/or the other provisions shall not be affected hereby.

(Status: August 2006)