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Example Warranty (Quality and Services) Agreement

SCHEDULE B (QUALITY AND SERVICES)

1.

Warranty. PARTY A warrants only to Buyer that: (a) for a period of twenty-six (26) months from the manufactured date, as stated in the identification label affixed in each relevant Product, (such period, the “Product Warranty Period”) the Product shall: (i) conform to the mutually agreed specifications, if any; and (ii) be free from defects in design, material and workmanship under normal and proper use in accordance with instructions and directions of PARTY A applicable thereto; and (b) for a period of eight (8) months from the manufactured date, as stated in the identification label affixed in each relevant Accessory, (such period, the “Accessory Warranty Period”) the Accessory shall: (i) conform to the mutually agreed specifications, if any; and (ii) be free from defects in design, material and workmanship under normal and proper use in accordance with instructions and directions of PARTY A applicable thereto.

2.

Procedure. In order for Buyer to qualify for PARTY A’s warranty under this Schedule B, Buyer shall submit a full and accurate return merchandize authorization ( RMA ) Request to PARTY A every week. Upon receipt of the RMA Request, PARTY A shall evaluate the RMA Request after such receipt and inform Buyer whether the warranty applies or not. For three (3) months after the request date of the RMA Request, Buyer shall properly store all Defective Products (or the Defective Spare Parts) and/or Defective Accessories at Buyer ’s warehouse at Buyer ’s expense. From time to time during the Term of this Agreement and upon twenty four (24) hours prior notice to Buyer, Buyer shall allow PARTY A or its agent to access such warehouse to the extent necessary for PARTY A to determine whether or not the warranty applies. Additionally, at PARTY A’s request, Buyer shall deliver the Defective Products (or the Defective Spare Parts) and/or Defective Accessories, at Buyer ’s expense, with all necessary detailed information to PARTY A. In the event the Defect in such delivered Defective Products (or the Defective Spare Parts) and/or Defective Accessories are proven to be caused solely by PARTY A, PARTY A shall compensate Buyer ’s freight expense arising out of such delivery.

1

3.

Sole and exclusive remedy for Defect. (a) If the Defective Product is proven to be caused solely by PARTY A, and a valid claim is received within the Product Warranty Period, PARTY A’s sole and exclusive liability and Buyer ’s sole and exclusive remedy for such Defective Product shall be for PARTY A, or agents designated by PARTY A, to provide non-Defective Spare Parts free-of-charge to Buyer. (b) If the Defective Accessory is proven to be caused solely by PARTY A, and a valid claim is received within the Accessory Warranty Period, PARTY A’s sole and exclusive liability and Buyer ’s sole and exclusive remedy for such Defective Accessory shall be for PARTY A, or agents designated by PARTY A, to provide a new but same non-Defective Accessory to Buyer free-ofcharge.

4.

Exclusion. Notwithstanding anything to the contrary herein, Articles 1 and 3 of Schedule B shall not apply, and PARTY A shall not be liable for any and all claims under this Agreement: (a) if the Product and/or Accessory has been subjected to misuse, abuse, negligence, improper installation, improper maintenance, improper transportation, accident, cosmetic damage, crack, wear and tear, alteration or design change by anyone other than PARTY A; (b) if the identification label has been defaced, altered or removed; (c) if the Product and/or Accessory has been used in violation of installation manual, service manual, end-user ’s manual or otherwise instructions furnished by PARTY A; (d) customizations, adaptation, and/or modifications to the Product and/or Accessory by anyone other than PARTY A; (e) if the Product and/or Accessory has been combined with, or installed on product or equipment of any third party, provided that the Defect arises directly and solely out of such third party’s product or equipment; (f) if the environment to where the Product was installed lacks stable power supply causing frequent power turn off and turn on to the Product; or (g) if Buyer does not submit the RMA Request in accordance with Article 2 of Schedule B.

5.

Epidemic Failure. Subject to Article 4 of Schedule B, “Epidemic Failure” will be deemed to have occurred in the event that PARTY A acknowledges all of the following conditions have been met:

2

(a) (b) (c) (d) (e)

Products are in Defect; such Defect is identifiable by PARTY A to have been caused by same symptom with same root cause of a component of the Products; such Defect occurs repeatedly in an identical component of the Product; such Defect occurred within the Product Warranty Period; and such Defect rate is five percent (10%) or higher, as per the following calculation method: Total number of Defective Products that were (i) manufactured within a particular month, and (ii) which Defects occurred within a 12-month period

Defect rate = Total number of Products manufactured by PARTY A within the aforementioned one month period 6. Sole and exclusive remedy for Epidemic Failure. (a) During the Warranty Period and subject to Article 8 of the Agreement, in case the Products qualify as Epidemic Failure subject to Article 5 of Schedule B, PARTY A’s sole obligation and liability, and Buyer ’s sole and exclusive remedy, shall be for PARTY A to compensate Buyer as liquidated damages the Buyer ’s Repair Labor Cost and Freight Cost. (b) For the purpose of this Agreement, the terms used shall have the following meanings: (1) “Repair Labor Costs” shall mean Buyer ’s repairman’s any and all labor costs and expenses for repair of the Defective Product, which shall be fifty United States Dollars (US$50) per Defective Product; and (2) “Freight Costs” shall mean the any and all freight costs and expenses to collect the returned Defective Spare Parts and supply the replacement Spare Parts, which shall be ten United States Dollars per Defective Product (US$10). For the avoidance of doubt, foregoing costs shall be confirmed to be equal to actual direct costs. 7. Spare Parts.

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(a)

Buyer shall be solely responsible and liable for handling and performing, in a manner consistent with good industry practice, all installations, implementations, queries, training, support and other services including without limitation, requests for support with respect to the Product, Accessories and Spare Parts from any of Buyer ’s customers and/or other third party, including without limitation any end-users (“Buyer ’s Services”). Under no circumstances, shall PARTY A and/or its affiliates be required to provide any Buyer ’s Services to such Buyer ’s customers and/or other third party, and Buyer shall not refer any such Buyer ’s customers and/or other third party to PARTY A for any and all such Buyer ’s Services.

(b)

Buyer shall be liable and responsible for any interaction between Buyer and Buyer ’s customers and/or other third party. Accordingly, Buyer shall be obligated to purchase from PARTY A and store sufficient number of Spare Parts in advance for the purpose of Buyer ’s Services.

(c)

PARTY A shall have the Spare Parts available for a period of two (2) years beginning from the date the Product is discontinued or no longer offered for sale by PARTY A or from the date of last shipment to Buyer, whichever is earlier.

(d)

Buyer shall provide PARTY A by the 10th day of each month with a rolling three (3) months Spare Parts forecast (of which the first month shall be binding, and the second and third months shall be non-binding) indicating, the quantities of Spare Parts the Buyer expects to purchase and the desired date by which the Spare Parts are to be delivered to the location designated by Buyer. Buyer shall use its best efforts to ensure that the forecasts accurately represent Buyer’s Spare Parts needs.

(e)

Buyer shall guarantee at least ninety (90) days for PARTY A’s delivery of Spare Parts, provided, however, that the Parties may agree to shorten such period.

(f)

For the purpose of this Agreement, Spare Parts shall mean the following items: (1) (2) (3) (4) (5) (6) X board (X right, Center, left) Assembly Y board (Y sus, Y drv top, Y drv bottom) Assembly Controller board Assembly Power Supply Unit (SMPS) Assembly PDP Module Vertical Supporter

4

(7) (8) (9) (10) (11) (12) 8. DISCLAIMER.

Middle Cabinet Fan (700mm, 1,200mm) Back Cover Main Board (VSC) AC Inlet Chassis Cover Plate

NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THE WARRANTY AND REMEDY UNDER THIS SCHEDULE B CONSTITUTE PARTY A’S SOLE AND EXCLUSIVE LIABILITY AND BUYER’S SOLE AND EXCLUSIVE REMEDY FOR BREACH OF WARRANTY AND EPIDEMIC FAILURE WITH RESPECT TO THE PRODUCTS SOLD UNDER THIS AGREEMENT, AND ARE IN LIEU OF, AND BUYER HEREBY WAIVES, ALL OTHER WARRANTIES, REMEDIES, GUARANTIES, CONDITIONS OR LIABILITIES, EXPRESS OR IMPLIED, BY LAW OR OTHERWISE, FOR ANY PRODUCTS AND SPARE PARTS THEREOF FURNISHED HEREUNDER. THE PARTIES HEREBY AGREE THAT THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE EXCLUDED FROM THIS TRANSACTION AND SHALL NOT APPLY FOR THE PRODUCTS AND SPARE PARTS THEREOF.

5

SCHEDULE C (RMA REQUEST FORM)
Set Model Set Serial No. Quantity No. :Buyer□ Vertical Line ( R , G , B Pattern) □ Vertical Bar ( R , G , B ) □ Horizontal Line ( R , G , B ) Module Model Symptom □ Horizontal Bar ( R , G , B ) □ Cell Defect □ Mal-discharge Module Serial No. Country Customer purchase date PCB B/D defect only Serial No. Detail : □ X-L-TOP(UP) □ X-R-TOP □ X-L-BTM(LOW) □ X-R-BTM □ Y-SUS □ Y-DRV-BTM □ Z-SUS No.: □ □ □ □ □ □ □ X-C-TOP PSU X-C-BTM DC-DC Y-DRV-TOP CTRL etc □ No Raster □ External Defect □ Etc. -

Issued date

Issued place Condition in use Detailed repair records and the result including date Pictures of Symptom TCP defect only

No.:

6


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