General terms of sale

1. Applicability

All sales, transactions, deliveries and purchase orders, as well as any other document relating to the goods to be delivered by Flinn NV are solely governed by these terms and conditions and any special conditions signed by the parties (which would prevail in the event of inconsistency or contradiction). The customer expressly acknowledges that its own special or general terms do not apply.

2. Offers

All prices, brochures, catalogues, offers or proposals issued are free of engagement on its part and do not imply any commitment as to prices, quantities or periods of delivery and execution, which are in any event always only indicated approximately.

3. Purchase order

All purchase orders received are considered to be final, binding upon the customer and irrevocable.

Unless otherwise expressly agreed in writing, the acceptance of a purchase order is limited to acceptance of the express terms set forth in the purchase order insofar as they do not deviate from these terms and conditions or any special conditions signed by the parties.

4. Price

The price for the Goods shall be agreed in writing by the parties. Except in case of a sales agreement with take-or–pay quantity, take-or-pay price, take-or-pay period and take-or-pay amount Flinn NV can adjust its prices at any time to take into account changes of the cost price as a consequence of changes of (non comprehensive list): price of raw materials, wages, social security or public administration charges, price of electricity, gas or other energy sources.

5. Payment

Unless otherwise specified on the invoice, any invoice is payable in cash at the time of delivery, without any invoice amount reduction or discount. All costs, taxes, duties, import duties or any other levies relating to the (delivery of the) Goods will be at customer's expense. Invoices shall be issued and paid in euro. The customer expressly waives any right of set-off in its relationship with Flinn NV.

If the customer fails to pay any sums when due, Flinn NV shall be entitled, automatically and without summons, to:
(i) default interest (calculated at the rate used by the European Central Bank for its refinancing operations plus 10%); and
(ii) a lump-sum compensation payment ('liquidated damages') for damage suffered calculated equal to 10% of the unpaid or overdue paid invoice amount with a minimum of 250 euro.

Without prejudice to clause 11 (termination), the customer's failure to pay an invoice on its due date shall entitle Flinn NV to suspend further performance and deliveries to the customer until it receives full payment.

Payment of an invoice, in full or in part, amounts to the customer's unconditional acceptance of the relevant Goods.

6. Delivery times

All indicated delivery times are indicative only. A delay in delivery or after an indicated delivery date can under no circumstance give rise to liability on Flinn NV's part or be considered as grounds for annulment, suspension or termination of the agreement (partly or entirely).

7. Delivery, shipment and risks

All Goods will be delivered to the customer on a EXW (Incoterms 2010) basis and the risk is passed accordingly.

8. Retention of title

The Goods remain Flinn NV's property until Flinn NV receives full payment of the price from the customer. The customer is not entitled to sell, process or modify any Goods for which title has not passed. Without prejudice to its other rights and remedies, Flinn NV shall be entitled, automatically and without summons, to reclaim the delivered Goods up to the amount not paid if the customer fails to pay any sums when due. If the customer resells the Goods before making payment in full, the retention of title will transfer and apply to the monies representing the resale price.

During the retention of title period, the customer shall be responsible for storing and keeping the delivered Goods in good condition, and will be responsible for any loss or damage caused to the Goods. The customer undertakes to insure the Goods against all risks at its expense and to store the Goods in such a way that they cannot be confused with other goods and that they can always be recognized as the property of Flinn NV.

9. Complaints

Flinn NV shall use reasonable endeavours to supply the Goods in accordance with the indicated specifications (if any). However, the customer accepts that the Goods are products for which specifications are always indicative only and may vary from time to time. In no event can any variation in specification give rise to a claim by the customer for any indemnification or price reduction on the grounds of non-conformity or defect; nor shall it entitle the customer to annul, suspend or terminate the agreement (partly or entirely).

Without prejudice to the above, the customer must verify the quality and quantity of the Goods upon receipt. Complaints regarding a visible defect or non-conformity are only validly made if (i) notified by the customer to Flinn NV in writing immediately upon receipt of the Goods (and in any event within 24 hours after delivery) and (ii) the Goods concerned still remain unprocessed and available for inspection by Flinn NV.

Complaints regarding a hidden defect or non-conformity are only validly made if notified by the customer to Flinn NV in writing within 24 hours after the earlier of the time that the non-conformity or defect (i) was discovered or (ii) could reasonably have been discovered, and provided the Goods concerned are still available for inspection by Flinn NV.

If a complaint is validly made pursuant to the requirements of this clause, Flinn NV will suspend delivery and take remedial measures in respect of further delivery, without any (other) liability on its part; in particular, the customer shall not be entitled to annul, suspend or terminate the agreement (partly or entirely). Flinn NV shall not be liable for any other complaint, and the customer will be barred from lodging a claim on the basis of such a complaint.

Complaints in relation to (errors in) invoices must be notified by the customer in writing within 15 days after the invoice date. The payment of an invoice, in full or in part, shall be considered to imply acceptance of the invoice and of the Goods concerned. A contractual dispute shall not entitle the customer to withhold or suspend payment until such dispute is resolved.

10. Liability

The contractual and extra-contractual liability of Flinn NV arising from negligence, breach of contract or otherwise under or in connection with its relationship with the customer shall be limited to the lower of (i) the price of the Goods that caused liability, and (ii) EUR 5,000. If Flinn NV's liability is established, Flinn NV at its own discretion either (i) replace the Goods concerned at its own expense or (ii) reimburse the customer an amount equal to the price of the defective goods that caused liability, always subject to the limitation of liability as set out above. Flinn NV shall under no circumstance be liable for any (i) loss of profit, loss of turnover, loss of clientele, loss of business or revenue, loss of data, loss of goodwill, loss of expended management time or anticipated savings, financial damage, damage to machinery, loss associated with a product recall, directly or indirectly caused to or suffered by the customer; and/or (ii) other incidental or consequential loss of any kind arising out of or in connection with the Flinn NV Goods concerned.

The customer shall be liable and undertakes to hold Flinn NV harmless, and to defend Flinn NV from and against any third party claim (including a claim based on any applicable legislation on product liability), and shall indemnify Flinn NV and keep Flinn NV indemnified against any losses, damages, costs, charges, expenses and other liabilities (including, without limitation, legal fees), incurred by or awarded against Flinn NV as a result of, or in connection with such third party claim; unless such third party claim is based on a contractual default by Flinn NV in its relationship with the customer that has been notified in accordance with clause 9.

Nothing in this clause 10 shall operate to exclude or limit any statutory rights which cannot be legally excluded or limited, and this clause 10 is not intended to exclude or limit the liability of Flinn NV in respect of intentional default. If this clause 10 is found to be void, invalid or unenforceable, Flinn NV's contractual and extra-contractual liability to the customer and any third party shall in any event be limited to EUR 5,000.

11. Suspension and termination

If the customer or any other entity of its group (Customer Group) is in breach of any of the provisions of the agreement with Flinn NV, Flinn NV shall be entitled to suspend the delivery of Goods until such breach has been remedied in full.

Flinn NV has the right to terminate the agreement (including any pending delivery) by giving written notice to the customer, with immediate effect and without court intervention, if (i) the customer is in breach of any agreement with Flinn NV, and either such breach is not capable of remedy or, if the breach is capable of remedy, the customer has failed to remedy the breach within 5 calendar days of receiving written notice requiring it to do so, or (ii) any entity of the Customer Group is in breach of any agreement with Flinn NV, and either such breach is not capable of remedy or if the breach is capable of remedy, such entity has failed to remedy the breach in accordance with the relevant agreement. In the event of a termination of the agreement by Flinn NV, the customer will be liable to compensate Flinn NV for any damage suffered and expenses incurred, including any consequential loss and loss of profit. The customer shall also immediately settle all outstanding invoices which become immediately payable upon termination.

The agreement (including any pending delivery) shall terminate automatically if the customer becomes insolvent or an order is made or a resolution passed for its liquidation, administration, winding-up or dissolution (otherwise than for the purposes of a solvent amalgamation or reconstruction) or a trustee, liquidator, administrator, or similar officer is appointed over all or any substantial part of its assets or anything similar to the foregoing occurs in any applicable jurisdiction.

Expiration or termination of the agreement for whatever reason shall be without prejudice to any rights or obligations which shall have accrued before expiration or termination and shall not destroy or diminish the binding force of any of the provisions of the agreement which are expressly provided to come into force on, or continue in force after such expiration or termination, including clauses 1, 5, 8, 9, 10, 11, 12 and 17.

12. Take-or-pay

If a take-or-pay quantity (a TOP Q) is provided in the special conditions, to be taken by the customer within a specific period (the TOP Period) and for a specific amount (the TOP Amount), the customer shall either take the TOP Q within the TOP Period, and pay the TOP Amount, or pay the TOP Amount less the price effectively paid for the contracted Goods that have been taken by the customer within the TOP Period (the TOP Shortfall Amount).

Flinn NV shall invoice the TOP Shortfall Amount after expiry of the TOP Period, and the customer shall pay such invoice in accordance with clause 5 (payment).

An extension of the TOP Period can only be agreed in writing.

13. Security

Flinn NV is entitled to investigate the customer's creditworthiness or its ability to fulfil its obligations under the agreement at any time during the term of the agreement. The customer shall provide Flinn NV with all relevant information in this regard as requested. If Flinn NV considers that there are reasonable grounds to question the customer's creditworthiness or that its ability to fulfil its obligations under the agreement is impaired, Flinn NV is entitled to suspend performance of the agreement and to require that customer, within three business days, provides or increases in amount: (i) a letter of credit, (ii) cash, or (iii) other security (including a bank or parent guarantee) in a form and amount reasonably acceptable to Flinn NV. Failure to timely comply with this requirement will be considered a material breach.

14. Hardship

Upon the occurrence of an event beyond Flinn NV's reasonable control which negatively affects Flinn's position (including price arrangements) for the procurement of raw materials (eg the insolvency of a supplier of raw materials) and hence the contractual balance for Flinn NV under the agreement, the customer shall renegotiate, at Flinn NV's first request, the agreed contract price with Flinn NV in good faith. If the parties cannot agree on a new price within 15 business days following Flinn NV's request, Flinn NV shall be entitled to terminate the agreement, with immediate effect, without court intervention and without owing any compensation to the customer.

15. Assignment

The customer is not entitled to assign, transfer or otherwise dispose of any of its rights and/or obligations under its agreement with Flinn NV without the prior written consent of Flinn NV. In any event the customer shall remain jointly and severally liable with the assignee or transferee for the proper performance of the agreement.

16. Force majeure

Neither party shall be liable to the other for any delay or non-performance of its obligations under the agreement (other than an obligation to pay money) arising from an event beyond its reasonable control (an FM Event). An FM event includes, without limitation, any of the following: war, civil war, revolt, mobilisation, confiscation, embargo, industrial conflicts, strikes and lockouts, transport difficulties, raw material supply difficulties, energy supply restrictions or difficulties, machinery accident, import or export measures or restrictions imposed by government, serious currency exchange rate changes, bad weather making it impossible to work, fire, floods or other natural disasters, even if it is one of Flinn NV's suppliers or subcontractors that suffer from these circumstances, as well as any unforeseeable circumstance as a consequence of which the performance of the agreement by Flinn NV leads to unreasonable loss, damage or costs.

Flinn NV shall also be deemed affected by an FM Event if a delay or non-performance of its obligations results from a business decision following a distortion of or reduction in its production capacities for any type of product which in itself was beyond Flinn NV's reasonable control.

Where an FM Event continues for a period of 30 continuous days or more, either party may by written notice to the other terminate the affected agreement with immediate effect and without court intervention. In such event, no indemnity or costs of any kind will be owed by the terminating party for such termination.

17. Applicable law – competent court

Any agreement entered into between Flinn NV and the customer and all underlying purchase orders and deliveries shall be governed by and interpreted in accordance with the laws of Belgium, each time with the express exclusion of the United Nations Convention on Contracts for the International Sale of Goods, Vienna, 11 April 1980.

Any controversy, dispute or claim in connection with or arising out of the existence, validity, construction, performance, non-performance, breach or termination of this agreement (or any terms thereof), including any claim based on contract, tort, statute or constitution, shall be finally settled by the courts of Ghent (Belgium).