1. We retain title to the delivered Goods until full payment of all our present and future claims arising from the purchase contract and from an ongoing business relationship (secured claims).
2. Before full payment of the secured claims has been made, the Goods subject to retention of title may neither be pledged to third parties nor assigned as security. The Purchaser must notify us in writing without delay if an application is made to open insolvency proceedings or if third parties take action (e.g. by way of attachment) against the Goods belonging to us. Where the third party is not able to reimburse us for the judicial and extrajudicial costs of an action pursuant to Section 771 of the German Code of Civil Procedure (ZPO), the Purchaser shall be liable to us for the resulting loss.
3. In the event of conduct by the Purchaser in breach of the contract, in particular failure to pay the due purchase price, we shall be entitled under the statutory provisions to withdraw from the contract and/or to demand return of the Goods on the basis of the retention of title. A demand for return shall not at the same time constitute a declaration of withdrawal; rather, we shall be entitled merely to demand return of the Goods while reserving the right to withdraw. If the Purchaser fails to pay the due purchase price, we may assert these rights only after setting the Purchaser a reasonable deadline for payment which has expired without success. This applies only where such a deadline is not dispensable under the statutory provisions.
4. The Purchaser is authorised, until revoked in accordance with Section 7 (4) (c), to resell and/or process in the ordinary course of business the Goods subject to retention of title. In such cases, the following provisions apply in addition:
a. Products resulting from the combination, mixing or processing of our Goods shall be subject to retention of title at their full value, and we shall be deemed the manufacturer. Where, in the case of combination, mixing or processing with third‑party goods, the third party’s ownership rights continue to exist, we shall acquire co‑ownership in proportion to the invoice values of the combined, mixed or processed goods. In all other respects, the same provisions shall apply to the resulting product as those applicable to the Goods delivered subject to retention of title. The Purchaser also assigns to us, for security purposes, any claims arising for the Purchaser against a third party from combining the Goods subject to retention of title with real property. We hereby accept this assignment.
b. The Purchaser hereby assigns to us, already at this point in time and in full or in the amount of our co‑ownership share pursuant to Section 7 (4) (a), for security purposes, the claims against third parties arising from the resale of the Goods or of the product, in the amount of the final invoice value agreed with us (including VAT). We hereby accept this assignment. The obligations of the Purchaser set out in Section 7 (2) also apply in respect of the assigned claims.
c. The Purchaser remains authorised, alongside us, to collect the claim. For as long as the Purchaser meets its payment obligations to us, is not lacking in financial capacity, and we do not assert the retention of title by exercising a right under Section VII. 3., we undertake not to collect the claim. If we exercise a right under Section 7 (3), we may require the Purchaser to disclose the assigned claims and their debtors, to provide all information necessary for collection, to hand over the relevant documents, and to notify the debtors (third parties) of the assignment. In addition, we shall be entitled to revoke the Purchaser’s authority to resell the Goods and its authority to process the Goods subject to retention of title.
d. If the realisable value of the securities exceeds our claims by more than 10 %, we shall, at the Purchaser’s request, release securities of our choice.
5. For as long as title has not passed to the Purchaser, the Purchaser shall be obliged to treat the purchased item with due care. In particular, the Purchaser shall be obliged to adequately insure the purchased item at its own expense against theft, fire and water damage at the item's replacement value. Where maintenance and inspection work is required, the Purchaser shall carry this out in good time and at its own expense.