GENERAL REMARKS

• These general conditions apply to all our offers and deliveries. In case the client and MGG decided to establish firmer relations in an industrial partnership agreement these conditions apply in addition to the wording of said document(s).
• The General Conditions of Contracting for European Foundries (CAEF) Edition May 2014 are an integral part of the MGG general conditions. Upon request MGG will provide a copy.
• Changes and amendments to these conditions shall be valid only if made in writing.
• MGG can assign for every part or project the rights or obligations under the agreement to subsidiaries.
• In case of a conflict with the customer terms & conditions, even when signed by MGG, the MGG conditions prevail.
• MGG is entitled to subcontract the manufacturing to third parties.

OFFERS AND ORDERS

• Unless otherwise agreed upon in writing by the MGG Director of Sales: The customer is design responsible and has responsibility for the life and function of the product. The responsibility for validating the technical specification by testing or otherwise lies therefore by the customer.
• The customer is to update the 3D file for cast ability and the 2D drawing for machining.
• Rework such as welding, extra finishing and impregnation is allowed.
• Final casting quality (porosity, shrinkage, foam, etc.) will be defined in close cooperation with the customer as soon as the first castings are available.
• The customer and MGG will have an active dialogue on the specifications to optimise the quality, function and cost of the part.
• The customer is responsible for the technical specification and approval (PPAP) of assembly components and or operations executed by assigned suppliers.
• Auditing of potential or new suppliers to MGG is not included in any offer. Associated cost will be quoted separately.
• Dimensional deviations within trade practice, deviations in weight of +/- 10% necessitated by foundry technology as well as – in case of serial deliveries – changes in volume up to +/- 15% are permissible.
• Technical specifications given by MGG are to be considered as approximate figures customary in the trade and bot as expressly designated as such.

PATTERNS AND TOOLS

• Tools are not insured by MGG.

DELIVERY DEADLINES

• Prices are based on EDI communication, non EDI communication is subject to a surcharge.
• A 3 month production release is granted for material, for assembly components the release is 6 months.
• The annual volume will be evenly distributed over the year and called off in agreed batches.
• Call-off quantity cannot be changed within 7 days prior to the requested delivery date. 2 to 6 weeks prior delivery the quantity may be updated with +/- 10% per part number.
  MGG reserves production capacity according the expected annual volume. Cancellation of a part or project needs to be communicated minimum 1 year prior to EOP. All cost incurred by early cancellation will be reimbursed by the customer.

• During the life at least 70% of the anticipated life cycle volume is called off.
• In case of a product change request by the customer. The customers will purchase the existing stock of MGG.

DELIVERY AND TRANSFER OF RISK

• Deliveries FCA <MGG plant>
• When a part is to be supplied outside of the EU, costs related to export are charged to the customer.
• Packaging to be supplied, in sufficient quantities by the customer without any charge. Cost resulting from a late delivery of packing material and all further impact will be reimbursed by the customer.

PRICES

• Prices are subject to changes in wages, energy and production material.
• When agreed upon productivities only apply on MGG added value (casting and machining); material, components etc. are excluded.
• Cost reduction proposed by MGG will be for the account of MGG.
• The material surcharge is adjusted every quarter according the agreed upon notation.
• The sales price of a part will be updated with the cost change related to a changed product weight (including melting cost).

QUALITY

• In case MGG delivers blanc (un-machined) parts, the first 5% of scrap after machining is not to be included in quality or performance ratings

LIABILITY AND GUARANTEE

• Product liability insurance excluded..
• At a delayed delivery, as far as legally allowed, the customer and/or end customer are not compensated.
• With a defect part, MGG will reimburse the MGG sales price. All other costs are not compensated by MGG. In case an agreement of compensation is reached upon this compensation is maximised at 10% annual turnover value of the respective part.
• In case MGG delivers blanc (un-machined) parts. All scrap less than 5% is free of cost for MGG. Where it exceeds the 5% threshold, MGG will re-deliver said castings, other costs are not reimbursed
• Purchaser commits to submit to supplier on a regular basis detailed reports on a part number level. Such information will include but is not limited to chassis#, build date, first registration, country, dealer defined root-cause/reason for build-out, mileage, detailed failure rate against time (3-6-9-12-18-24 months after registration), and any other information requested by supplier. If this information is not delivered within 3 months after the customer complaint has occurred any cost related to these parts will not be for the account of supplier. This also applies to parts coming from a Field action. Customer complaints have to be send back to supplier within 3 months of the build out. Later returned parts are not be considered by supplier. Out of the first 50 defects, supplier will make an analysis report to define the technical factor. The technical factor will then be agreed upon between supplier and customer. From the date of the agreement the customer will send only a limited amount of field returns back to the supplier for further analysis. From this point supplier will compensate the customer for the unreturned field returns against the technical factor.
• Field complaints have to be agreed and confirmed in writing by MGG.
• The right of recourse of Purchaser in consumer contracts according § 478 of the German BGB or § 993 of the Austrian ABGB, is excluded.

JURISDICTION

• Place of jurisdiction is Venlo. MGG however is entitled to bring actions in any other court of competent jurisdiction.