ATTACHMENT 1: TINE GENERAL TERMS - PURCHASE OF GOODS 1. GENERAL TERMS 2. GENERAL OBLIGATIONS OF THE CONTRACTOR. Page 1 av 7
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1 Page 1 av 7 ATTACHMENT 1: TINE GENERAL TERMS - PURCHASE OF GOODS 1. GENERAL TERMS 1.1 Definitions Call-off means order based on a Framework Agreement. Agreement means the agreement document signed by the Parties, these General Terms for purchase of goods and any attachments, addendums and/or amendments that are agreed in writing between the Parties. General Terms is this document. Contractor is the contractor that is stated in the Agreement. Delivery is goods, services, equipment, processes, documentation, drawings and/or results that shall be developed, performed and/or delivered by the Contractor to/for TINE in accordance with the Agreement. Party is TINE or the Contractor. Framework Agreement means agreement with the Contractor where all terms except volume and delivery time is agreed. TINE means the TINE Group, i.e. TINE SA and all companies where TINE SA owns or controls more than 50 % of the ownership shares. 1.2 General The Contractor has by entering into the Agreement accepted all of its terms. The Contractor s own terms that may be attached to accompanying documents, order confirmations or invoices are not part of the Agreement unless otherwise agreed in writing by the Parties. 2. GENERAL OBLIGATIONS OF THE CONTRACTOR The Contractor shall perform the Delivery with such level of professional skill that can be expected by reputable contractors within corresponding or similar business sectors. The Delivery shall be in accordance with the requirements in the Agreement, including all requirements to type, amount, quality, properties, documentation and packaging. The Delivery shall be suitable for the intended purpose and be free of legal defects. The Delivery shall be carried out, documented and controlled in accordance with applicable laws, regulations, business sector requirements and relevant EU-rules. A declaration of conformity shall accompany the Delivery what certifies that the Delivery meets the requirements of the foodcontact regulation of number 1381 that implements the Food Contact Materials Regulation (EC) 1935/2004. The Contractor shall obtain and maintain all necessary approvals and certificates in connection with the production, storage, treatment and performance of the Delivery and shall at the request of TINE document that such approvals and certificates exist. The Contractor is obligated to inform TINE of any change that may have impact on the Contractor s approvals and issued certificates. The Contractor shall carry out alteration work free of compensation if amendments of laws, regulations and public rules that are of relevance for the Delivery are adopted after the entry into the Agreement but before agreed delivery takes place. The Contractor shall not handover the Delivery, in whole or in part, to sub-contractors without TINE s written approval. Such approval does not exempt the Contractor for any obligations under the Agreement. If the Agreement designates Contractor s key personnel, change of such personnel shall be approved by TINE. Approval shall not be denied without just cause. Training of new personnel shall be at the Contractor s cost. The Contractor shall at its own cost ensure immediate change of personnel that acts in a reprehensible manner or that is deemed unsuited to perform services encompassed by the Agreement. Where relevant, the Contractor shall guarantee in writing that neither the Contractor nor his sub-contractors are using genetically modified materials directly or indirectly in connection with the Delivery to TINE. This guarantee shall be sent of the Contractor s own accord to TINE at the time of entry into contract at the latest.
2 Page 2 av 7 Where genetically modified variants of a product or an input factor to a product that is a part of the Delivery is available on the global market, the Contractor shall at its own accord submit an IP (Identity Preservation) certificate to TINE at the time of entry into agreement at the latest. The Contractor shall not use products that contain substances that are listed on the environmental authorities priority list of substances that are hazardous for health or the environment. The Delivery shall not contain oil or fat fractions that stems from palm oil. 3. ORDERS Orders take place by TINE entering into a single detached agreement with the Contractor or by TINE making a Call-off. Call-offs can be made in writing, orally or in TINE s order systems. All Call-offs shall be confirmed in writing by the Contractor without undue delay. Call-offs that are not confirmed in writing by the Contractor within two working days are not binding for TINE, unless otherwise agreed. 4. CANCELLATION TINE has at any time the right to cancel any order made in accordance with the Agreement in whole or in part. All cancellations shall be confirmed in writing by the Contractor without undue delay. In case of cancellation, TINE shall pay such amount as the Contractor is owed for such part of the Delivery as is carried out at the time of cancellation and cover such documented and necessary expenditures that have been incurred as a direct consequence of the cancellation. 5. CHANGES TINE may, within the limits of what the Parties could reasonably expect at the time when the Agreement was entered into, at any time require changes to the quality and quantity of the Delivery and changes to the progress plan. Where the Contractor has suggestions for changes, TINE shall be notified in writing as soon as the suggestion for a change becomes clear for the Contractor. If changes entail increased costs or savings, the Parties shall enter into specific negotiations. Consideration for changes shall be in accordance with the Agreement s original unit prices and price level. Changes shall be approved by TINE by written change orders before they are effectuated. Upon receipt of change order from TINE, the Contractor shall effectuate this without undue delay, even if the effect of the change order on price, progress plan and other terms of the Agreement are not yet clarified. 6. DEFERRAL TINE may, by way of written notice to the Contractor, defer the Delivery in whole or in part. The Contractor shall upon receipt of such notice without undue delay inform TINE of the possible effects of the deferral for the performance of the Delivery. The Contractor shall resume the Delivery within reasonable time of TINE notifying the Contractor to do so. If the deferral continues for more than 60 calendar days than what was notified, the Contractor has the right to terminate the Agreement by written notification to TINE. During the deferral period the Contractor is only entitled to claim coverage of documented and necessary expenses. 7. DELIVERY TERMS The Delivery shall be properly packed, marked and delivered freely at place of delivery DDP in accordance with INCOTERMS 2010, unless otherwise agreed in writing. Agreed documentation is a part of the Delivery. Delivery of the Delivery cannot be split up, unless agreed in writing.
3 Page 3 av 7 8. PACKAGING AND MARKING OF THE DELIVERY All Deliveries shall be marked so that they are easy to identify. Outer packaging shall be marked in accordance with the requirements of TINE. The packaging shall be suitable for the mode of transport in use. A list of contents shall accompany each Delivery that shall contain article number, order number, product designation, number of items and units that the Delivery encompasses. The list of contents shall be accessible without having to break the outer packaging. All pallets and other load carriers shall be clean before use, and shall be marked pursuant to the GS1 standard for load carrier (see EUR-pallets shall be used. Maximum height on loaded pallet shall not exceed 1200 mm. TINE shall at stock receipt be able to scan the label for verification of received goods and as basis for tracking. All wooden pallets and other transportation packaging made of wood that be made of bark free wood and treated and marked in accordance with International plant sanitary standard ISPM number ENVIRONMENT - RETURN SCHEMES FOR PACKAGING AND GOODS If the Contractor has an office and/or business address in Norway and the Contractor uses disposable packaging, the Contractor shall in the entire agreement period be a member of Grønt Punkt Norge AS. Upon request from TINE the Contractor shall document such membership. The Contractor shall be a member of the producer liability schemes that are used for the type of deliveries that are included in this Agreement; alternatively, the Contractor can submit documentation that demonstrates that the Contractor has its own system for collection and end treatment of relevant Deliveries. The Contractor s measures pursuant to this provision shall not lead to any additional costs for TINE. 10. QUALITY ASSURANCE The Contractor shall have a satisfactory quality assurance system that is adapted to the Delivery. Upon request from TINE, the Contractor shall document the system. The Contractor shall upon request from TINE prepare a quality plan specifically adapted for the performance of the Delivery. TINE has the right to carry out audits on the Contractor and any sub-contractors within normal work hours and after prior written notice. The Contractor shall contribute to the performance of such audits. Where the audit uncovers non-compliance, the Contractor shall without undue delay effectuate corrective measures. TINE may stipulate a reasonable deadline for implementation. Failure to effectuate or perform corrective measures constitutes material breach of contract. TINE shall facilitate Contractor s access to relevant quality documents. The Contractor shall log all observations of deviations or unusual circumstances under production, treatment, control and storage of the Delivery. Where one cannot exclude that the Delivery may be affected, TINE shall be notified immediately about this in writing. The Contractor shall cover the cost of external laboratory tests/analysis to evaluate the quality of the Delivery. If the Contractor wishes to withdraw the Delivery from the market due to safety concerns, the Contractor shall notify TINE in writing immediately. TINE decides if and how the Delivery shall be withdrawn from the market. The Contractor shall mark and log all batches of the Delivery in order to enable an efficient withdrawal and traceability of any errors and defects of the Delivery. TINE is responsible for establishing necessary routines for withdrawal from its off-takers and to implement withdrawal where necessary. Where relevant, the Contractor is obligated to take and keep samples of each batch. All samples shall be kept in a proper manner at least during the durability period. The Contractor shall give TINE necessary access to the samples for quality control. Where the Delivery consists of chemicals and chemical products, the Contractor shall offer TINE free of costs Product Data Sheets via the solutions offered by ECO Online, i.e. ECO Publisher or ECO Anylink.
4 Page 4 av INTELLECTUAL PROPERTY RIGHTS TINE retains all rights to any material and all information, irrespective of format and medium, that is submitted to the Contractor or that in any other way is made available to the Contractor. The Contractor cannot use such material or information for any other purposes than the performance of this Agreement. TINE shall have all rights to processes, databases, production equipment, tools, clichés, products, designs, product combinations, specifications and production orders that the Contractor develops, develops further, adapts or in any other ways brings about or purchases in connection with and that is specific for the Delivery when this is principally is paid for TINE, whether directly or indirectly. TINE is entitled to secure its immaterial rights to the Delivery in any manner, including by way of seeking to register patents, trademarks and designs. The Contractor shall assist TINE with this. The Contractor warrants that the Contractor has the right to use the input factors in the Delivery and that the performance of the Agreement will not infringe any other persons rights. The Contractor shall have all necessary rights transferred to him from his own employees, temporary staff, consultants, independent contractors and sub-contractors that have contributed to the Delivery. Documentation of such transfer shall be submitted to TINE at TINE s request. Where it is not possible to transfer such rights to TINE or where such transfer entails an extraordinary cost for TINE, then TINE shall be notified immediately. 12. CONTRACTOR S PERSONNEL 12.1 Timesheets The Contractor s personnel shall complete daily timesheets where the Delivery or parts of it is being compensated based on actual time spent. Timesheets received or approved by TINE shall not be deemed as accept of costs Salary and employment terms The Contractor s employees shall at least have salary and employment terms pursuant to the regulations on general application of collective agreements where applicable. The Contractor shall furthermore ensure that the same applies for any sub-contractors or other contractors that directly contributes to the performance of the Agreement. The Contractor shall have systems and routines to check and follow up that sub-contractors comply with the regulations on general application of collective agreements. Where TINE so requires, the Contractor shall within 14 calendar days present documentation on the salary and employment terms in use. This applies correspondingly for sub-contractors and other contractors that directly contribute to the performance of the Agreement. Any information that the Contractor submits to TINE on salary and employment terms shall be treated as confidential information, reference is made to item 21 below. In cases of non-compliance with this provision, liquidated damages will be incurred for each calendar day until the non-compliance is confirmed rectified by the Contractor. The liquidated damages constitutes 0,2 % of the total compensation payable under the Agreement. The total amount shall not exceed 15 % of the total amount that is payable under the Agreement. TINE may terminate the Agreement where the maximum liquidated damages are incurred or where the Contractor opposes to rectify the situation. 13. PRICES Prices are fixed and include all of TINE s payment obligations to the Contractor, including packaging, administration and invoicing costs, customs tariffs, taxes and other dues et cetera. Prices shall be stated excluding VAT. If there is a change in customs tariffs or other publicly imposed dues that can be documented, directly connected to the Delivery and that affect the Contractor s costs, each of the Parties can require price change that represents the change on one month s written notice. Changes in exchange rates do not result in a right to changes of contract prices, unless otherwise agreed. 14. TRAVELLING COSTS The Parties cover their own costs in connection with travels/meetings.
5 Page 5 av PAYMENT TERMS Payment shall take place within 45 calendar days after receipt of correct invoice. Where the Delivery is delivered earlier than agreed, this does not entail a change in the agreed time for payment. All invoices shall contain the name of the orderer or TINE s purchase order number, a description and quantum specification of what is delivered and time and place for delivery. TINE has the right to return invoices that do not meet these requirements. Invoices to TINE shall preferably be sent as electronic invoices in EHF-format. Address for electronic invoice: Format EHF Address 9908: If it is agreed that the Contractor shall furnish a bank guarantee, TINE is not obligated to make payments before TINE has received such guarantee. TINE can deduct prepayments, liquidated damages incurred and disputed amounts or insufficiently documented items from the invoiced amounts. In cases of breach of contract, TINE may withhold payments, however not evidently more than what the breach of contract appears to constitute of the total compensation. Payment of invoices is not equivalent to accept of the basis for the invoice. Disputed claims are not due before agreement has been made or, alternatively, a legally binding judgement has been passed. The Contractor shall within 60 calendar days after the expiry of the agreement period submit final invoice. The final invoice shall cover all of Contractor s claims pursuant to the Agreement. Claims that are not included in the final invoice cannot be claimed at a later stage. Invoice shall be marked "Final invoice". 16. LATE PAYMENTS In cases of late payments, the Parties shall be liable for penalty interest on the payment due pursuant to the Act on Interest in Cases of Late Payments et cetera of 17 December 1976 number BREACH OF CONTRACT 17.1 Delay Delay occurs where the Contractor does not deliver to the agreed time or where the Delivery qualitatively or quantitatively does not comply with the Agreement, unless the delay is caused by circumstances at TINE or circumstances that TINE is liable for Effects of delay Unless otherwise agreed in writing, for each calendar day that the Delivery is delayed, liquidated damages of 0,2 % of the total compensation that is payable under the Agreement are incurred. Liquidated damages shall constitute at least NOK for each calendar day as from the agreed time of delivery until actual delivery takes place. Total amount shall not exceed 15 % of the total amount payable pursuant to the Agreement. If the delay only concerns a part of the Delivery, the liquidated damages shall be calculated on that part of the purchase amount that represents the part of the Delivery that cannot be used due to the delay. TINE may, in addition to claim liquidated damages, claim compensation for the loss that TINE incurs as a consequence of the delay, reference is made to item 17.5 below. TINE may terminate the Agreement in case the maximum liquidated damages are incurred or if the delay constitutes material breach of contract. TINE may in addition require performance and state a specific deadline. Where the deadline is not complied with, TINE may terminate the Agreement. In cases of delay or presumed delay, the Contractor shall notify TINE of this in writing without undue delay. The notification shall state the reason for the delay and the time when Delivery will be performed. Where TINE does not receive such notification within reasonable time after the Contractor obtained or should have obtained knowledge of the obstacle, TINE may claim compensation for the loss that could have been avoided had the notification been received on time.
6 Page 6 av Defects The Contractor is liable for any defect of the Delivery and the performance thereof, in as far as the defect is not caused by TINE or circumstances TINE is liable for. TINE shall make a written claim within reasonable time after the defect was detected. The time limit for claims is by the Deliveries expiration date or 24 months after Delivery, whichever comes first. For rectification works, a corresponding time limit for claims applies as from the time of completion of the rectification work. The time limits for claims do not run as long as rectifications or other activities that are necessary for correct performance of contract are being carried out Effects of defects Where TINE makes a claim, the Contractor shall redeliver without undue delay. Redelivery shall be performed without cost for TINE. Where the Delivery is returned to the Contractor for redelivery, the Contractor is liable for costs and risk related thereto. If the Contractor has not redelivered within reasonable time, TINE is entitled to make a substitute purchase on the Contractor s risk and cost or to claim price reduction. The same applies in case waiting for the Contractor s redelivery will result in material inconvenience for TINE. In such cases, TINE shall notify the Contractor in writing before redelivery is effectuated. TINE may terminate the Agreement if the defect constitutes material breach of contract. In such cases TINE may oppose the Contractor s offer of redelivery Compensation TINE has the right to compensation for loss TINE incurs as a consequence of breach of contract by the Contractor or by anyone that the Contractor is liable for. Such compensation is limited to direct losses, except where the Contractor or anyone that the Contractor is liable for has acted grossly negligently or wilfully. The right that TINE has to compensation is independent of any other claims that TINE may invoke as a consequence of the breach of contract and of whether any such claims can be invoked. Where a defect in the Delivery results in TINE s withdrawal of one or more of the Deliveries and/or TINE s products, TINE has the right to compensation of the costs in connection with the withdrawal Material breach of contract The Contractor s bankruptcy, insolvency, breach of other material economic premises, repeated breach of instructions or breach of public laws and regulations, fraud, neglect, breach of TINE ethical trading guidelines or other circumstance that materially breaches the relationship of trust with TINE always constitutes material breach of contract. TINE has the right to terminate the Agreement with immediate effect in cases of material breach of contract. 18. FORCE MAJEURE Neither of the Parties is obliged to perform the Agreement nor any obligations incurred under the Agreement when performance is prevented by force majeure. Both Parties shall without undue delay notify the other Party of the force majeure-situation, the causes, presumed duration and possible measures. Where this is not complied with, the relevant Party shall cover the other Party s costs as a consequence of lack of or of late notification. If the force majeure-situation endures more than 60 calendar days, the Parties are entitled to terminate the Agreement by written notification to the other Party. 19. INSURANCE The Contractor shall for its own account take out and maintain such insurances as are adapted to the operations of the Contractor and the nature of the Delivery. Upon request from TINE, the Contractor shall document the insurance coverage and its scope. 20. INDEMINTIES The Contractor shall indemnify TINE for any claim caused by wrongful properties of the Delivery and any claim against TINE as a result of the Contractor s infringement of the rights of third parties.
7 Page 7 av 7 The Parties shall inform each other when claims that concerns the other Party are made by third parties. 21. CONFIDENTIALITY Neither of the Parties shall pass on nor in any other way make confidential information received from the other Party available for any third party, and shall not use such information for any other purposes than for the purpose of performance of the Agreement. Confidential information means all information received from the other Party, including know-how, information on product development, specifications, methods, uses, analyses, quality assurances, marketing, sales and other methods of business and business information. Irrespective of the aforementioned, the following shall not be deemed as confidential information: - Information that is publicly known in as far as the publication is not caused by unlawful circumstances. - Information that has become known to a Party from an independent third party who had an undisputed right to pass on such information. - Information that the receiving Party can document is developed independently of the information received from the other Party. - Information that one Party has obtained prior written approval from the other Party to release. - Information that a Party is obliged to provide pursuant to law, regulations or a legally binding decision from a competent court of law. Each Party shall ensure that all employees, hired consultants and other persons that receive information, either directly or indirectly, about the other Party shall be subject to a duty of confidentiality as stated in this provision. This provision shall also apply for information that was exchanged between the Parties before the Agreement entered into force, in as far as the information was exchanged for the purposes of entering into the Agreement, such as submission of tender, invitation to tender and contract negotiations. The obligations in this provision shall also apply after the discontinuance of the Agreement. Breach of this provision shall be deemed as material breach of contract. 22. ASSIGNMENT Neither Party can assign their rights and obligations under the Agreement without prior written approval from the other Party. Such approval shall not be withheld without just cause. TINE may nevertheless freely assign its rights and obligations under the Agreement to companies within the TINE Group. 23. CHOICE OF LAW AND DISPUTE RESOLUTION The Agreement is subject to Norwegian law. Any disputes between the Parties shall be sought solved through negotiations. If the Parties cannot agree, the matter shall be referred to ordinary legal proceedings, with Oslo as the legal venue.
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