General Terms and Conditions of FLAMRO Brandschutz-Systeme GmbH, Leiningen

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1 1. Offer and formation of a contract 1.1 The following terms and conditions apply to all offers, quotes and sales related to FLAMRO products (delivery items). The customer's terms and conditions shall not become binding even if such terms and conditions are not expressly rejected again by the supplier. 1.2 The contract shall only be formed following the supplier's written order confirmation. 1.3 Side agreements, amendments or promises of features shall only be effective if they have been confirmed by the supplier in writing. Statements regarding dimensions, weights and other technical information, as well as illustrations, descriptions and designs related to the subject matter of the contract and the usage purpose are only approximate unless they have been designated as binding. 1.4 The customer shall be bound to their order for 30 days. 2. Prices 2.1 Unless otherwise agreed, prices are ex warehouse, exclusive of packaging, insurance and assembly costs. The prices/any advance payment amounts are exclusive of turnover tax and customs duties at the relevant statutory amount. 2.2 Goods will be shipped at the customer's risk, including in cases where carriage is paid. 3. Payment terms 3.1 In the absence of special agreements, payment must be made within 30 days from the invoice date without discounts ex paying agent of the supplier. A 2% discount on the final invoice amount will be granted for payments made within 14 days following the invoice date. Representatives and other sales personnel of the supplier are not authorised to collect payments. 3.2 The customer shall be in default without requiring an official reminder in the event that a fixed payment term is not met (Section 284 sub-section ll of the German Civil Code BGB). In this event we shall be entitled to demand interest for default within the scope of Section 288 BGB amounting to 6% p.a. above the relevant applicable discount rate of the German Bundesbank, unless we are able to provide evidence of loss which justifies higher interest for default. Bills of exchange and cheques will only be accepted on account of payment. If they are made out to secondary centres then the supplier shall not be liable for the timely lodging of a protest. The customer shall be responsible for discount, exchange and collection costs. The customer shall not be entitled to withhold due payments in the event of a complaint. Rights of retention and offsetting against disputed counter-claims and counterclaims which have not been determined by force of law shall be excluded. Version 11/12 Page -1- of -7-

2 3.3 If the customer is in default of payment for an amount which represents at least 1/10 of the purchase price then the entire amount which is outstanding shall be due for payment without an official reminder. If the purchaser has paid for the goods in whole or in part then the supplier's claim shall become due immediately to this extent. The same applies if the agreed bills of exchange or cheques are not provided or cashed in time, in the event of a discontinuation of payments or of an application for a settlement arrangement or bankruptcy or in the event of actions to enforce payments. If claims are reduced to a share in proceedings (e.g. bankruptcy, settlement arrangement) then claims for agreed allowances and/or bonuses shall cease to apply. 3.4 In these cases the supplier shall also be entitled to take back the items delivered, to the exclusion of any right of retention, for the purposes of collateral or for best possible disposal on the open market for account and at the risk of the customer, without the customer being released from the contract. In these cases the supplier may also demand compensation for non-fulfilment at the amount of 10% of the purchase price without any particular evidence, or at the amount of any higher loss which is demonstrated. 3.5 If the supplier receives unfavourable information regarding the customer's creditworthiness which the customer is unable to refute, then the supplier may demand advance payment or collateral or cash on delivery. 4. Delivery period 4.1 Delivery periods and deadlines are non-binding unless a particular delivery period has been promised in writing. 4.2 The delivery period shall be met if the items are ready for shipment and the readiness for shipment is communicated by the end of the period. The delivery period shall also be reasonably extended, including within the framework of an existing delay, in the event of industrial disputes as well as the occurrence of unexpected obstacles (such as interruptions to business operations, reject goods, delivery blocks, transportation defects and official actions) which are not intended by the supplier, provided that it can be demonstrated that such obstacles have an essential impact on production or delivery of the delivery item. This also applies if these events occur affecting our sub-suppliers. 4.3 If the customer suffers damage or loss on account of a delay which has arisen as a result of the supplier's own culpability, then to the exclusion of further claims the customer shall be entitled to claim compensation for the delay. For each complete calendar week of the delay this shall amount to 0.5% up to a maximum 5% in total of the value of the relevant part of the overall delivery which cannot be used in time or in accordance with the contract on account of the delay. 4.4 If the shipment is delayed at the customer's request then starting one month following the notification of the readiness for shipment, the customer will be charged the costs incurred for storage at the supplier's factory; the minimum charge for this will be 0.5% of the invoice amount for each month. Version 11/12 Page -2- of -7-

3 4.5 However, the supplier shall be entitled to dispose of the delivery item elsewhere after setting a reasonable period which expires without result and to supply the customer with a period which has been reasonably extended. 5. Transfer of risk and acceptance 5.1 Risk will be transferred to the customer no later than when the delivery items are shipped, including in cases where partial deliveries are made or the supplier is responsible for any other performance, e.g. shipment costs and installation. 5.2 The supplier will take out insurance against theft and damage from breakage, transportation, fire and water as well as against other insurable risks at the customer's request and expense. 5.3 If the shipment is delayed as a result of circumstances for which the customer is responsible or as a result of force majeure events, then risk shall be transferred to the customer from the date that the items are ready for shipment. 5.4 Delivered items must be accepted by the customer. 5.5 Partial deliveries are permissible. 6. Withdrawal from the contract. Other liability of the supplier. 6.1 In the event of force majeure or non-fulfilment of the contractual obligations by the customer, in particular in the event of default of payment, the supplier shall be entitled to withdraw from the contract by way of a written declaration without prejudice to any claims for compensation. The same applies if unexpected events for the purposes of section 4 of these terms and conditions mean that fulfilment can no longer justifiably be expected or if the customer is in default of acceptance in relation to the goods delivered one month following the notification of readiness for shipment. 6.2 The customer shall be entitled to withdraw from the contract by way of a written declaration if performance becomes impossible for the supplier or if the delivery culpably does not take place despite the fact that a subsequent period of generally four weeks has been set for performance in writing. If impossibility occurs during default of acceptance or as a result of culpability on the part of the customer then the latter shall remain under an obligation to provide the consideration. The customer shall also have a right to withdraw from the contract if the supplier culpably neglects to rectify a defect acknowledged by it for the purposes of these terms and conditions of delivery despite the fact that a reasonable subsequent period has been set for performance. 6.3 All further claims of the customer shall be excluded, in particular to rescission, termination, reduction in the contractual price or compensation of any type, including for damage or loss which has not occurred to the delivery item itself. This liability disclaimer shall not apply in the event of wilful intent or gross negligence on the part of the proprietor or its executive employees. It shall also not apply in the event of a lack of characteristics which have been expressly promised if this pledge was for the purpose of safeguarding the customer from loss or damage which has not occurred to the delivery item itself. Version 11/12 Page -3- of -7-

4 7. Retention of title 7.1 The supplier reserves the right to all of the items supplied by it until the purchase price has been paid in full. If the customer is a trader then the retention of title shall apply until all of the supplier's claims against the customer from the business connection, including future or conditional ones, have been settled inclusive of interest and costs. This shall also apply if individual or all claims of the supplier are being managed as part of an open account and the balance has been drawn and acknowledged. During the customer's normal hours of business the supplier shall be entitled to inspect and record the items delivered which are still subject to retention of title and for which the supplier has not yet received full payment. 7.2 In the event of conduct which is in breach of contract the supplier shall be entitled to withdraw from the purchase agreement following an official warning and the customer shall be under an obligation to return the items without any rights of retention. Asserting claims to retention of title as well as seizure of the item by the supplier shall not be considered to be a withdrawal from the contract unless the supplier expressly declares this. 7.3 Without prejudice to the customer's payment obligation the supplier shall be entitled either to sell the delivered items which it has taken back on the open market and to credit the proceeds or the contractual price - minus discounts, rebates and other allowances and minus a reduction in value of 10% of the contractual price. The customer shall not be permitted to mortgage the delivery item or assign it as collateral. The customer shall be under an obligation to notify the supplier without delay in the event of seizure or other interventions by third parties. The retention of title shall not be cancelled through third-party payments, in particular payments by endorsers of a bill. To this extent the rights of the supplier shall pass to the payer. The customer shall be under an obligation to insure the goods subject to retention of title adequately against fire, burglary, theft and water damage. The insurance claims are hereby assigned to the supplier for the value of the goods. The supplier declares its acceptance of this assignment to this extent. 7.4 The customer shall be entitled to process and resell the delivered goods in the ordinary and standard course of business. The customer shall carry out any processing of the delivery items which are subject to retention of title for the supplier in all cases without any obligations arising for the supplier from this; the supplier shall be the producer for the purposes of Section 950 BGB. If delivery items are processed with other goods which do not belong to the supplier then the supplier shall be entitled to coownership of the new item at the ratio of the invoice value of the delivery items to the value of the other goods in accordance with Sections 947 and 948 BGB. The customer hereby assigns to the supplier all claims from the resale of goods subject to retention of title by the supplier; the supplier accepts this assignment. The same applies to claims arising from agreements for work and services where the retention of title ceases to apply once these are provided. In the event of a sale of goods to which the supplier is entitled to co-ownership following processing, mixing or amalgamation, the prior assignment shall include a claim component which corresponds to the amount of the invoice value of the supplier's processed goods; the same shall apply if goods subject to retention of title by the supplier are resold together with other goods as a coherent unit. Version 11/12 Page -4- of -7-

5 In the case of agreements for work and services where the retention of title ceases to apply once these are provided, the prior assignment shall include a claim component which corresponds to the amount of the invoice value of the goods subject to retention of title. The customer shall be entitled to collect assigned claims until this is revoked by the supplier. The authorisation to collect claims shall cease to apply without an express revocation on the part of the supplier if the customer does not meet its obligations to the supplier or suffers a deterioration in its assets, in particular if payments are discontinued or if an application is made to open settlement or bankruptcy proceedings. At the supplier's request the customer must provide the information on the assigned claims required for collection purposes along with all corresponding documentation and must notify the debtor of the assignment. 7.5 The supplier undertakes to release the collateral to which it is entitled if the value of this exceeds the claims to be secured by more than 20% and provided that these claims have not yet been settled. 7.6 Despite the retention of title the customer shall bear the risk of destruction or deterioration of the items delivered. 8. Liability for defects in the delivery, warranty 8.1 The supplier shall only be liable for defects in the delivery, which includes the lack of promised characteristics, in accordance with the following provisions. 8.2 The customer must carefully inspect the delivery items without delay following receipt. The delivery shall be deemed to have been accepted unless a notification of defect is received by the supplier within 14 days following receipt of the goods at the destination or, if the defect was not capable of being detected during the inspection, within 5 days following detection of the defect, in writing, by written telecommunication or by fax. 8.3 In the event of a justified notification of defects the supplier shall repair the item or provide a replacement at its discretion under the warranty. If the repair or replacement delivery fail, the customer may demand a reduction in the purchase price or rescission of the contract. However, the supplier shall not under any circumstances be liable for defects in the delivery item which only arise after the transfer of risk. The customer is aware that careful adherence to the supplier's processing instructions by the customer or its purchaser is required for successful processing of the delivery item. In particular the customer must for instance pay attention to the delivery item's sensitivity to frost during transportation and during processing. The processing regulations in accordance with the approval notifications and test certificates of the German Centre of Competence for Construction (Institut für Bautechnik) in Berlin that are provided to the customer shall be authoritative in all other respects. 8.4 The supplier shall only be liable for any other claims for compensation to which the customer may be entitled on account of defects or lack of promised characteristics in the delivery items or defective work performance based on any legal grounds whatsoever if the supplier is culpable. Section 8.5 shall be applicable. However, this regulation shall not apply to claims for compensation for consequential damage caused by a defect in the absence of a promised characteristic if the promise of the characteristic is aimed at safeguarding the customer against the risk of damage of this type. However, in this case also the supplier shall be liable solely for loss or damage which is typical and foreseeable. Version 11/12 Page -5- of -7-

6 8.5 Scope of liability In the event of claims for compensation on account of culpable conduct based on any legal grounds whatsoever, including but not limited to default, defective delivery or performance - with the exception of section 8.3, positive breach of contract, breach of obligations in contractual negotiations and of duties to provide proper advice, and claims based on tort and product liability, the supplier shall be liable for slight negligence only if there is a breach of essential obligations which puts the purpose of the contract at risk. The supplier's liability for slight negligence and liability regardless of negligence or culpability shall be excluded In all other respects. 8.6 The supplier shall only be liable for typical and foreseeable loss or damage in the event of liability in accordance with the previous paragraph or of any mandatory liability or culpability. 8.7 The liability disclaimer in accordance with sections 8.5 and 8.6 shall also apply to the benefit of the supplier's employees. 8.8 Liability for malicious concealment of defects or with the assumption of a procurement guarantee as well as liability for claims based on the German Product Liability Act and for loss or damage based on injury to life, limb or health remain unaffected by the above limitations on liability. 8.9 All claims against the supplier based on any legal grounds whatsoever shall expire no later than 6 months following the transfer of risk in cases where the supplier has acted with slight negligence or is liable without culpability. The limitation period shall be 3 years in the event of wilful intent or gross negligence. Any shorter statutory limitation periods that may exist shall take precedence in all cases. 9. Other agreements 9.1 The supplier shall be entitled to process the data related to the business relationship or associated with this data received on the customer for the purposes of the German Federal Data Privacy Act, irrespective of whether this data originates from the customer personally or from third parties. 9.2 The ineffectiveness of individual provisions in these terms and conditions shall not affect the effective nature of the remaining provisions. 10. Place of fulfilment and jurisdiction 10.1 The place of fulfilment is the supplier's registered office. The law of the Federal Republic of Germany is applicable to the contractual relations, to the exclusion of the Uniform Law for the International Sale of Goods (Hague Convention) and the United Nations Convention on Contracts for the International Sale of Goods dated 11 April The place of jurisdiction for all claims from the business relationship with registered traders shall be Koblenz or St. Goar at the supplier's discretion, irrespective of the value of the subject matter of the dispute. This place of jurisdiction shall also apply for all summary procedures deciding claims arising out of a bill of exchange or relying entirely on documentary evidence which are connected with the delivery in any way. Version 11/12 Page -6- of -7-

7 The supplier may also bring an action against the customer at the latter's place of jurisdiction. Version 11/12 Page -7- of -7-

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