General Terms and Conditions of Business

DEPPE Backstein-Keramik GmbH,

January 2018

1 General

These General Terms and Conditions of Business and Delivery form the basis of all offers and contracts as well as deliveries and services of DEPPE Backstein-Keramik GmbH (hereinafter referred to as "Company") in business transactions with entrepreneurs.

2 Offers and prices

2.1 Our offers shall always be subject to confirmation until the conclusion of the contract and shall apply in accordance with the time quoted in the offer.

2.2 Unless otherwise noted, the prices quoted shall be ex works excluding packaging, pallets and freight. These shall be invoiced separately and are not discountable. The statutory value added tax is not included in our prices, but will be shown separately, provided that the customer is a businessman resident in Germany. Customs duties and other charges payable on the goods shall be borne by the customer. The employees of the factory are not authorized to make verbal subsidiary agreements or to give verbal assurances which go beyond the contents of the written contract at the expense of the factory.

2.3 If an Entrepreneur collects goods from the Company and transports, moves or ships them abroad, the Buyer shall submit to the Company immediately after delivery the export certificate required for tax purposes, the so-called confirmation of arrival. This can be done by email, fax or mail. If the proof of arrival is not submitted, the Buyer shall pay the VAT rate applicable to deliveries within the Federal Republic of Germany on the invoice amount. We expressly reserve the right to collect the sales tax and to refund it only after presentation of the required export certificates.

2.4 Freight, special costs and brick pallets are subject to change.

3 quality and samples
Brick products are goods manufactured from organic resources in a naturally occurring firing process. Unless otherwise agreed, the factory shall deliver the goods in accordance with the relevant standards in the usual factory grading. Samples of any kind and size, specimens, illustrations and descriptions shall therefore only be considered as non-binding samples and shall not be authoritative. Minor deviations do not entitle to complaints.

4 Delivery and transfer of risk

4.1 Deliveries are always ex works. The entrepreneur shall be responsible for the proper securing of the goods in accordance with § 412 of the German Commercial Code (HGB). The risk of accidental loss or accidental deterioration of the goods shall pass to the Buyer upon loading.

4.2 If delivery is agreed, the risk shall pass to the Buyer. The Contractor shall ensure that the unloading point is passable by heavy goods vehicles, that there is a suitable unloading facility and that the vehicle is unloaded properly and quickly. If these conditions are not met, the Customer shall be liable for any resulting damage.

4.3 Unforeseeable force majeure that makes the company unable to fulfill its delivery obligations shall fully release it from its delivery and performance obligations for the duration of its effects or in case of impossibility of delivery or performance. The Company shall immediately notify the Buyer of the occurrence of such a case.

4.4 If the Company cannot fulfill its obligations or cannot fulfill them in a timely manner for reasons other than those specified in Section 4.3 for which it is responsible, it shall only be liable in the event of intent and gross negligence.

4.5 Should cost increases occur between the conclusion of the contract and delivery, in particular for energy and personnel, which were not foreseeable in their extent and make it impossible to adhere to the agreed price, the parties shall renegotiate the price.

4.6 Minor damage occurring during transport of the heavy clay material, which does not significantly affect the usual usability, cannot be objected to, nor can customary breakage.

5 Notification of defects, warranty and liability

5.1 The Buyer shall inspect the goods without delay. Recognizable defects, differences in quantity or wrong deliveries must be notified in writing before the delivered goods are combined, mixed or processed, but at the latest within 7 days after receipt of the goods (non-recognizable defects within 7 days after they become recognizable, in any case before further processing). The factory must be given the opportunity to inspect the notified defects and to be present during removal for material testing.

5.2 If the goods are processed, in particular installed in a building, despite recognizable defects or excessive color deviations, they shall thereby be accepted by the Buyer in the recognizable condition as being in conformity with the contract.

5.3 If the delivery of grades 2, 3 has been agreed, warranty claims shall be excluded because the delivered goods are contractually