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General Terms and Conditions for the Use of Image Data

Preamble

KARE has developed a modern lifestyle concept with a unique mix of furniture, lamps, accessories for the home, and gift items under the trademark 'KARE'. KARE markets the aforementioned products of this lifestyle concept worldwide.

For the purpose of a best possible presentation and marketing of its products, KARE is having photographed each single product of its product range (hereinafter individually a 'Product' and collectively the 'Products') against a mostly neutral background (the so-called 'Single Item Pictures').

Furthermore, a large part of the Products are photographed in a housing or other living environment in such a manner that a plurality of articles fitting together, such as pieces of furniture and/or accessories and/or lamps, are arranged so as to form a harmonious general picture (the so-called 'Mood Pictures').

KARE is the sole owner of the exclusive duplication, dissemination and processing rights to the above-described photographs (Single Item Pictures and Mood Pictures, together the 'Pictures').

The following General Terms and Conditions of Use govern the contract entered into by and between KARE and any of its trade customers (hereinafter the 'User') on a license to use the Pictures that can be downloaded from the Internet site 'www.kare-design.de' and are made available by KARE on its FTP server.

By making available the Pictures in such a manner, KARE wishes to support its customers in their marketing of the Products.

Clause 1 - Conclusion of the Contract

The contract on the grant of rights of use of specific Pictures between User and KARE shall be deemed closed through the following:

1. User transmits all its required business data to KARE in the application form provided for such purpose on KARE's Internet site. In addition, User indicates whether it applies for the grant of rights of use for Single Item Pictures and/or Mood Pictures. If User applies for the grant of rights of use for Mood Pictures, User shall identify each single Picture it wants to use and shall indicate every intended purpose of use, the planned duration of every such use and, in the case of use in the Internet and/or online media, every domain in which the respective Mood Pictures are to be used.
2. After check of its application and provided that KARE approves in whole or in part the use applied for, User will receive an e-mail from KARE in which KARE confirms to User which Pictures User will be allowed to use up to which extent, subject to these Terms and Conditions. The contract on the use of the Pictures applied for shall be deemed closed between User and KARE upon receipt by User of such e-mail confirmation (hereinafter the 'Contract').

Clause 2 - Subject-matter of the Contract

1. During the term of the Contract, KARE allows User to store the Single Item Pictures downloaded from the Internet site 'www.kare-design.de' and made available by KARE on its FTP server on an electronic data carrier and to use them commercially by granting User a simple, non-exclusive and non-transferrable right of use to such Single Item Pictures, subject to the compulsory condition that User shall use commercially only those Single Item Pictures of articles which User either has in stock at any time of the use or bindingly ordered from KARE. At no time shall User be entitled to commercially use Single Item Pictures of articles which User neither has in stock nor has bindingly ordered from KARE. No proprietary rights shall be transferred therewith. Customer shall pay a penalty in the amount of EUR 3,000.00 per Picture for each single case of additional use of one or more Single Item Pictures, which has not been approved by KARE. Each single use of one of the above-described Single Item Pictures subject to these Terms and Conditions shall be deemed to be a single case of use.
2. To the extent that KARE allows User the commercial use of precisely specified Mood Pictures during the term of the Contract, such permission shall be exclusively limited to the purpose of use agreed between KARE and User. To the extent that User wishes to publish one or more Mood Pictures in the Internet and/or online media and thus use them commercially, this shall be compulsorily subject to KARE's prior consent to the concrete use intended by User. No proprietary rights shall be transferred to User by virtue of such consent. Customer shall pay a penalty in the amount of EUR 3,000.00 per Picture for each single case of additional use of one or more Mood Pictures, which has not been approved by KARE. Each single use of one of the above-described Mood Pictures subject to these Terms and Conditions shall be deemed to be a single case of use.
3. User shall only be entitled to use a Single Item Picture and/or a Mood Picture if KARE's copyright is pointed to by displaying the company logo shown below in a manner clearly perceptible for an objective observer. This reference must be positioned either on the Single Item Picture and/or Mood Picture itself or well visible in its direct neighbourhood.
4. User may not alter Single Item Pictures and/or Mood Pictures subject to these Terms and Conditions by copying them manually, photographing them, or modifying them by electronic or any other means.
5. User shall not be allowed to transmit any Single Item Pictures and/or Mood Pictures subject to these Terms and Conditions and/or to transfer any granted rights of use to these Pictures.

Clause 3 - Term of the Contract

1. A Contract on the use of Pictures begins upon receipt by User of KARE's e-mail confirmation.
2. The Contract shall expire upon its termination by either party to the Contract with 4 weeks' notice to be effective at the end of a calendar month, or upon the end of the business relationship between the parties to the Contract. The business relationship between the parties to the Contract shall be deemed ended if KARE has notified such termination to User or if User has not purchased any Product from KARE within a period of more than 6 months.
3. The Contract may also be terminated by either party to the Contract without notice for cause, if any event arises that justifies such termination and if the terminating party to the Contract cannot be reasonably expected to continue the contractual relationship until expiry of the period of notice or the agreed expiry of the Contract, thereby taking the circumstances of the individual case and the interests of both parties into consideration. Such cause shall be deemed given, in particular, if User uses Single Item Pictures and/or Mood Pictures of articles from the KARE product range which User neither has in stock nor has bindingly ordered from KARE at the time of using the Picture.

Clause 4 – Consequences of Expiry of the Contract

1. Upon expiry of the Contract, User shall cease to be entitled to use the Single Item Pictures and/or Mood Pictures in any form whatsoever.
2. User shall pay to KARE a penalty in the amount of 3,000.00 € for each single case of violation of its obligations provided in Clause 4 Number 1. Each single use of one of the above-described Pictures subject to these Terms and Conditions shall be deemed to be a single case of use. KARE expressly reserves the right to claim compensation of any damage exceeding the amount of such penalty.
3. By paying a penalty pursuant to Clause 4 Number 2 of these Terms and Conditions, User shall not acquire any property rights or rights of use to the Pictures listed in Exhibit 1 of these Terms and Conditions.

Clause 5 - Miscellaneous

1. These Terms and Conditions shall be governed by the laws of the Federal Republic of Germany, in particular the German Civil Code (BGB) and the Copyright Law (Urheberrechtsgesetz). The place of performance of any and all obligations under the Contract and place of jurisdiction for any dispute arising out of or in connection with the Contract shall be KARE's seat in Munich. This shall not affect KARE's right to sue User at its seat. The provisions of the UN Convention on the International Sale of Goods shall not apply.
2. These Terms and Conditions shall supersede any and all prior oral and written agreements and arrangements between the parties to the Contract.
3. Any side agreement and amendment to the Contract shall only be valid if made in writing. This shall also apply to any amendment to or cancellation of this requirement of the written form.
4. The voidness or ineffectiveness of individual provisions of these Terms and Conditions shall not affect the effectiveness of the other Terms and Conditions.