4.1. RMG reserves title in all Products until receipt of all payments under the business relationship with Buyer (hereinafter: "Reserved Products"). If a current account relationship exists as part of the business relationship, RMG shall retain title in the Reserved Products until receipt of all payments from acknowledged balances. In this case, reservation of title shall serve as security for the balance. For the duration of the reservation of title Buyer may not pledge the Reserved Products nor use the same as security.
4.2. If Buyer combines or mixes any Reserved Products in which RMG has reserved title with other items to form a new unit in such a way that one of the other items must be regarded as the main constituent, RMG shall have pro rata (co‐)title in the new unit created, such (co‐)title being in the ratio of the value of the Reserved Products to the value of the combined or mixed items at the time of such combining or mixing, and Buyer hereby transfers (co)title and possession in the combined or mixed item to RMG. RMG hereby accepts this transfer. Buyer shall keep possession of the combined or mixed item, which has thus been created for RMG in trust free of charge.
4.3. If Buyer or third parties acting on behalf of Buyer process or modify the Reserved Products (co‐) owned by RMG, this shall be deemed to have been carried out for RMG. If Buyer acquires sole title in the new main unit created by way of such processing or modification, the parties shall be deemed to have agreed that Buyer hereby transfers to RMG (co‐) title and possession therein in the ratio of the value of Reserved Products (co‐) owned by RMG to the value of the combination or modification and that RMG hereby accepts such transfer. Buyer shall keep possession of the sole or co‐owned items which has thus been created for RMG in trust free of charge. If the Reserved Products owned by RMG have not yet been inextricably combined or mixed with other items or otherwise processed or modified since supply, their value at the time of combining, mixing, processing or modification shall be deemed to be the amount billed for the Reserved Products by (including VAT).
4.4. Buyer may sell the Reserved Products in the course of ordinary business activities, however all claims equal to the final invoice amount (including VAT) accruing to Buyer against its customers or third parties from the resale are hereby already assigned to RMG. RMG herewith accepts such assignment. Buyer may not sell the ReservedProducts to customers that have excluded or limited the assignment of payment claims against them. After the assignment, Buyer retains the right to collect the claims. This shall not affect RMG's entitlement to collect the claims itself. However, RMG shall not collect the claims as long as (1) Buyer fulfill its payment obligations from the proceeds taken in, or (2) Buyer is not in default of payment or (3) Buyer has not filed an application for the opening of insolvency proceedings and has not suspended its payments. If any of this is the case, RMG may request Buyer to disclose the assigned claims and their respective debtors, to furnish all data required for collection, to hand over all documents pertaining thereto and to inform the debtors of the assignment. If such a case occurs, Buyer’s right to collect the claims is extinguished. To the extent that a current account relationship exists between Buyer and its customers pursuant to Sec. 355 of the German Commercial Code (Handelsgesetzbuch), the claim assigned to RMG in advance by Buyer shall also relate to the acknowledged balance, as well as to the balance surplus existing from the closing balance in the case of the customer's insolvency.
4.5. Buyer is obliged to notify RMG in writing without undue delay of all seizures, attachments and other interference by third parties with respect to the Reserved Products. Moreover, Buyer shall notify such third parties of the reservation of title. To the extent the third party is unable to reimburse RMG for the court and out‐of‐court costs of a legal action pursuant to Sec. 771 of the German Code of Civil Procedure (Zivilprozessordnung), Buyer shall be liable for the loss thus incurred to RMG.
4.6. Buyer is obliged to treat the Reserved Products with care; in particular, Buyer is obliged to have the same at its own expense sufficiently insured at replacement value against fire, damage by water and theft. To the extent that maintenance or inspection work is required, Buyer must carry this out in good time at its own expense.
4.7. At Buyer's request RMG shall release the securities held by RMG to the extent their realizable value exceeds the claims to be secured by 10% or more whereby RMG may select the securities to be released.
4.8. In case that RMG in its formal position of remaining titleholder of the Reserved Products shall under any laws be obliged to pay any taxes referring to the title of the Reserved Products Buyer shall indemnify RMG from those tax obligations.