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General Terms and Conditions

(as per November 2016)

§ 1 Start of Contract

Mutual contractual obligations shall start on the date agreed in the Virtual Office Service Contract. Should the agreed start of contract be delayed because of circumstances, which occurred after the conclusion of the contract and for which the service provider is not liable (for instance delayed completion of office premises) then the service user shall be freed from payment of the service fee. Should the agreed date be exceeded by more than 3 months then the service user shall be entitled to terminate the Office Service Contract without giving notice. Apart from this regulation there are no further claims that may be asserted against the service provider, especially no demands for compensation for damage.

§ 2 Company Name Plates

Name plates and advertising signs may be put up only in the provided spaces as advised by the service provider and in a form suitable to the character of the house. Signs will be removed by the service provider at the end of the contract.

§ 3 Telecommunications

1. The address, offices and telecommunication facilities, including data links and Internet service providers, must not be used for the communication and distribution of illegal or immoral contents or be used for any other criminal or illegal purposes.
The service user is responsible for basic security and virus protection for his systems. He must ensure that these cannot be used for infringements of system or network security.
The service user must ensure that the services and the information he provides, or which is required from him, does not violate the protection rights of third parties in any way.

2. The service provider is not responsible for the type or content of services, which are carried out in his name and upon request of the service issuer.
The service provider reserves the right to refuse access after unsuccessful warning, if it is suspected that the access has been used to distribute illegal contents.
The service provider has the right to delete contents if the service user is at fault. In such instances the service user has no rights to claims of damages or service refusal against the service provider.

§ 4 Pre-Tax Deductions

The service user confirms that he is entitled to full pre-tax deductions in the case of the stated option of VAT, and therefore that he will use the office premises or services provided to him via the contract exclusively to carry out services that allow pre-tax deduction. He promises to inform the service provider immediately when the conditions for full pre-tax deduction no longer exist. The service user shall compensate the service provider for any loss incurred because of the option lapsing so that the remuneration agreed in the service contract (net excluding VAT) is the gross sum without separate itemisation of VAT. If the statutory VAT is increased then the respective higher gross fee is payable.

§ 5 Transfer, Offset, Retention and Reduction

1. The contractual parties agree herewith that the service user is not entitled to transfer
his rights arising from the contract to third parties.

2. The service user’s rights to offset, retention and reduction because of individual claims
against the service provider are excluded, when the service user’s claims are not
undisputed or not legally recognized.

§ 6 Security deposit, Default in Payment, Payment term

1. The security deposit owed by the service user serves as security for all of the service provider’s claims arising from this contract, in particular for safeguarding the monthly
service fees and for the cost of additionally provided services.

2. The service provider is entitled to ask for an appropriate increase in the security deposit if the service user falls into arrears with due payments and these exceed the
security deposit or when due fees are repeatedly paid too late.

3. The service user is entitled to a refund of the security deposit after termination of the contract when all due service provider claims have been paid. If a settlement of accounts is not possible until a later date, such repayment entitlement only becomes due, when the claims, which cannot be billed until later by the service provider, have been remunerated.

4. In the case of a delayed payment, the service provider has the right to claim default interest at 8 % above the respective annual base rate. The enforcement of any further
compensation remains unaffected by this. In cases of service user debits, charge back, refusal of a credit card or insufficient cover for a submitted cheque, the service provider has the right to invoice a service charge of 25 € plus the current statutory VAT per transaction.

5. In cases of non-payment, the service provider is entitled to refuse to render his services until his main and additional claims due are fulfilled, without him being liable for any
resulting, possible losses incurred by the service user.

6. The customer agrees with a reduction of SEPA-debit notice period to two days .

§ 7 Rules on Confidentiality and Liabilities

1. The service provider pledges to keep all information, which relates to the service user and which he obtains in connection with the contractual relationship, confidential and
not to pass this on to third parties without the consent of the service user.

2. The service provider is liable, according to statutory regulations, for losses incurred by the service user caused by the service provider or his representatives or operators
with intent or due to gross negligence. If there is no intent then liability is limited to a maximum of 20,000 € for foreseeable,
typically occurring damage.

3. Statutory regulations apply for liability due to culpable injury to life, physical harm or health damages.

4. Statutory regulations with regards to mandatory liability according to the product liability law remain unaffected.

5. Any service provider liability, apart from the aforementioned regulations, is excluded.

6. Customer liability claims, provided they are not based on intent, come under the statute of limitations, if they have not been legally claimed within three months of having been rejected.

§ 8 Termination without Notice and End of Contract

1. The contractual relationship terminates as agreed in the Virtual Office Service Contract.

2. The right to terminate the contract because of a significant reason remains unaffected by the agreement. Significant reasons, which justify a termination by the service provider without giving notice, are for instance:
Payment arrears over 3 weeks, security deposit not being paid on time, significant infringement of house rules, premises and fitments being rented to third parties without written consent, business transactions liable to prosecution or criminal
conduct by the borrower, immoral or disorderly property or conduct by the service user within the rented property despite written warning, the initiation of bankruptcy procedures against the service user’s assets, application for judicial insolvency proceedings against the service user, gross violation of contractual obligations and collateral duties, repeated simple violations of the contract despite written warning.

3. Both contract parties have the right to terminate the contractual relationship without giving notice if the service provider is not able to provide the contracted services in the business premises named in the contract (for instance in the case of site relocation). In this case there are no reciprocal claims for damages because of termination without notice.

4. In the case of a termination without notice by the service provider, the service user is obliged to pay as compensation the service remuneration, which should have been paid up to the end of the contractual period. This claim is payable upon receipt of the termination without notice. A claim to compensation for further losses incurred by the service provider is not affected by this regulation.

5. Furthermore, the service user agrees to have his name plates and advertising signs removed by the service provider as well as cancellation of telephone and mail.

6. If the service provider terminates the contract for cause without notice, the service user is obligated to pay the service fee at the date stipulated in the contract in accordance with the general applicable price list at the time of the termination for the use of the office.

§ 9 Written Form and Severability Clause

1. All agreements between the parties must be in written form. This applies in particular to amendments or changes to the contract and to possible declarations of consent. The cancellation or change of the written form requirement must also be in writing.

2. Should any individual agreements within the contract or General Terms and Conditions become invalid then this does not affect the validity of the remaining agreements. The invalid regulation is replaced by a regulation, which comes closest to the commercial purpose represented by the invalid condition.

§ 10 Place of Fulfilment and Place of Jurisdiction

The Office Service Contract is exclusively subject to the legislation of the German Federal
Republic. Place of fulfilment is the respective business premise of the service provider,
place of jurisdiction for all disputes arising from this contract is Munich.

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