Terms & Conditions

GENERAL TERMS AND CONDITIONS OF SALE AND DELIVERY

1. Preamble

1.1 In these general terms and conditions of sale and delivery the seller shall mean Herrmans Oy Ab (below the “Seller”), the buyer shall mean the company, corporation or person with whom any agreement is concluded or to whom any order confirmation is addressed (below the “Buyer”), and the goods shall mean the goods to be sold by the Seller to the Buyer (below the “Goods”).

1.2 These general terms and conditions of sale and delivery shall apply to the sale and delivery of Goods between the Seller and the Buyer, unless otherwise expressly agreed in writing with respect to all or part of the provisions contained herein

2. Product information

Information given in brochures and other advertising material is only given as guidance and shall not be binding upon the Seller.

3. Formation of agreement

No offer, obligation or agreement relating to the sale and delivery of the Goods shall be binding upon the Seller, unless accepted and confirmed in writing by the Seller.

4. Title and right of use of moulds, parts of moulds and equipment used in the production of the Goods

4.1 Unless otherwise agreed in writing or stipulated in Section 4.2 below, all moulds, parts of moulds and equipment used in the manufacture of the Goods, shall remain the Seller’s property.

4.2 If the cost for a mould is charged by the Seller under a separate invoice, the title of the mould is transferred to the Buyer after the Seller’s invoice has been paid in full.

4.3 A mould owned by the Buyer shall not be used for any other purpose than for producing Goods for the Buyer and shall be returned to it, if requested by the Buyer. The Seller may postpone the return of the mould for one (1) year after the end of the agreement between the parties despite a request for return, if the return of the mould would reveal technological knowledge to others which is significant to the Seller.

4.4 A mould owned by the Seller may be used for producing goods for third parties.

4.5 If the Seller essentially neglects to fulfill the terms and conditions of an agreement for reasons other than force majeure or a reason on the Buyer’s side, a fully paid mould shall, at request, be returned to the Buyer without delay.

4.6 Patterns, drawings, parts lists, tools or software required for the manufacturing of the mould will always remain the property of the Seller and shall not be transferred to the Buyer. The Seller is not obligated to reveal any technological data or knowledge required for the manufacturing of the mould. No industrial property rights related to the mould and owned by the Seller shall be transferred to the Buyer as the mould is delivered.

4.7 The Seller shall, at its own cost, take care of the normal maintenance, storage and insurance of the mould while it is used for a production run. If the mould is defected in the course of a production run, it shall be repaired at the cost of the Buyer. When the agreed production run has been completed or the total quantity of Goods to be produced has not been agreed upon, the Seller shall notify the Buyer of a need to repair or replace the mould and submit it an offer to this effect.

4.8 The Seller shall store the mould at the Buyer’s cost and risk for a period of two (2) years after the completion of the last production run. The mould may be destroyed after this period, unless the Buyer requests continued storage within fourteen (14) days after receipt of a notification from the Seller of the intention of destroying the mould. Upon receipt of such notification, the Buyer shall pay the costs caused by the storage as well as give an estimate of how long the storage will continue. The mould shall be destroyed at the Buyer’s cost. A mould owned by the Buyer shall be marked by the Seller to make it identifiable as the Buyer’s property.

4.9 Should an agreement between the parties or a part thereof be cancelled, the Buyer shall pay the price for the mould, notwithstanding the cause for the cancellation. Should an agreement between the parties be ended prematurely or the quantities of Goods ordered be lower than expected, the Buyer shall buy, at cost, the production’s raw materials and other items remaining in the Seller’s storage.

4.10 The Buyer shall carry the cost and risk of transports of the mould between the Seller and the Buyer.

5. Price adjustment

5.1 Should, after an agreement has been concluded and entered into, the raw material prices for the Goods increase by more than five (5) percent or should the purchase, production, transport or any other costs relating to the Goods increase by more than five (5) percent due to changes in the rates of exchange or due to other circumstances, the Seller shall be entitled to revise the price accordingly.

5.2 Should, after an agreement has been concluded and entered into, export or import duties, custom charges, taxes on export, import or delivery or similar duties or charges increase or should new duties, taxes and/or charges be introduced and implemented in respect of the Goods, the Seller shall be entitled to revise the price accordingly.

5.3 Any price adjustment made based on Section 5.1 or 5.2 above shall take effect thirty (30) days from the date of the Seller’s notice to the Buyer of such price adjustment, unless otherwise agreed in writing

6. Payment

6.1 Unless otherwise agreed in writing, payment shall be made by the Buyer on or before the thirtieth (30th) day after the date of the Seller’s invoice.

6.2 Interest on delayed payments is to be paid according to the provisions of the Finnish Interest Act.

7. Delivery

7.1 Unless otherwise separately agreed in writing, the term of delivery shall be FCA (Incoterms 2010) the Seller’s factory in Pedersöre, Finland.

7.2 The quoted delivery period and delivery date set forth in the Seller’s order confirmation are only approximate.

7.3 If the delivery is delayed more than fourteen (14) days from the delivery date set forth in the Seller’s order confirmation due to reasons attributable to the Seller, the Seller shall pay liquidated damages in the amount of 0.5 % of the value of such delayed part of a delivery for each completed week of delay, however, maximum 7.5 % of the value of such delayed part of a delivery. The

payment of liquidated damages as set forth in this Section7.3 shall be the sole remedy available to the Buyer due to delay in delivery.

8. Title

The Goods shall remain the property of the Seller as legal and equitable owner and no property in or title to the Goods shall pass to the Buyer until full payment for the Goods has been received by the Seller.

9. Warranty and liability

9.1 The Seller warrants that the Goods are free from defects resulting from faults in material or craftsmanship and that the Goods will comply with the requirements stipulated under Finnish law. The warranty period is twelve months from the day of delivery according to Section 6.1 above. The warranty period in respect of light output, i.e. the LED chip, is three (3) years.

9.2 The warranty does not cover wear and tear, physical or environmental damage, accidents, mismanagement or negligence in the use and maintenance of the Goods, nor does it cover if the serial number affixed to the product are removed, obliterated or defaced.

9.3 The Seller’s only obligation under this warranty is, at its sole discretion, to either repair any defects or replace any defective Goods, provided a claim with respect thereto is made by the Buyer within thirty (30) days of discovery of such defect. The Seller may elect to affect the remedies set forth above by a third party at the Seller’s expense.

9.4 The warranty set forth in this Section 9 is the only warranty given to the Goods and expressly replaces any other warranties, remedies, guarantees or liabilities, expressed or implied, against defects and any other obligations or liability whether in contract or law and the Buyer hereby waives any such other warranties, remedies, guarantees or liabilities.

9.5 The Seller shall under no circumstances be liable for loss of production, loss of profit, loss of use or any other consequential damages and/or indirect loss, whatever the cause may be.

9.6 The Seller’s aggregate maximum liability under an agreement shall be limited to the value of the agreement. In respect of deliveries to be made under a frame agreement based on separate orders, the Seller’s aggregate maximum liability shall be determined separately for each order and be limited to the value of such order.

10. Force majeure

The Seller shall not be liable for any default or delay in performing its obligations under an agreement, or for any loss or damage resulting therefrom, if the default or delay is caused by circumstances beyond the reasonable control of the Seller (force majeure), including but not limited to, wars, civil riots, strikes, epidemics, fires, acts of God, governmental restrictions and actions, winding up or failure of a subcontractor to provide materials or goods, shortage of transport or loss of workmen, or any circumstances beyond the reasonable control of the Seller’s subcontractors.

11. Code of Conduct

The Seller is committed to conduct its business in line with applicable laws and regulations and in accordance with high standards of business ethics. This requires the highest standards of integrity in all business interactions undertaken on behalf of the Seller. Consequently, any form of corruption, extortion, bribery or other improper offer for payments from or to any of the Seller’s directors, officers or employees or other representatives is strictly prohibited.

12. Governing law and settlement of disputes

12.1 These terms and conditions of sale and delivery and/or an agreement between the Seller and the Buyer shall be governed by Finnish law, excluding the United Nations Convention on Contracts for the International Sale of Goods (CISG).

12.2 Any dispute, controversy or claim arising out of or in connection with an agreement between the Seller and the Buyer and/or these terms and conditions of sale and delivery, or the breach or invalidity thereof, shall be settled by arbitration. The Rules of the Arbitration Institute of the Central Chamber of Commerce in Finland are to be followed in the arbitration proceedings. The arbitral tribunal shall be composed of one (1) sole arbitrator. The place of arbitration shall be Helsinki, Finland. The language used in the arbitration proceedings shall be English.