As far as our export business is concerned the laws of the Federal Republic of Germany including the 1980 United Nations Vienna Convention for the International Sale of Goods (UNCITRAL Convention of 1980) are exclusively applicable. In addition to these regulations, we sell our products only under the following:
Retention of title (R.O.T.)
The merchandise delivered will remain our property until complete payment is received, including payment of side claims and interest and including payment of all outstanding accounts deriving from the commercial relationship between us and the buyer. The buyer is only entitled to sell the merchandise or the products emerging from its processing within the ordinary cause of business. The buyer hereby assigns to us his claims deriving from resale of the reserved merchandise, independent of whether the sale is taking place prior to or after processing. Assignment is effected up to the full amount necessary to compensate all our outstanding accounts at the moment of assignment. In case of resale of our reserved merchandise after processing, mixing or commingling with other merchandise not belonging to us, the assignment of the claim deriving from the resale only takes place up to the amount of the value of our invoice for delivery of merchandise including incidental expenses. In the case of processing, mixing or commingling of our reserved merchandise with other merchandise not belonging to us to a new product, we do acquire title to the new product up to the extent and to a portion equivalent to the ratio of the invoice value of the reserved merchandise compared to the total of the invoice values of all the used merchandise not owned by the buyer.