Warranty Information

I. Limited Warranty

(a) MasterImage warrants to Customer that upon the date of shipment of Customer’s Product from MasterImage’s plant, such Product will be free of defects with respect to MasterImage’s workmanship on that Product. MasterImage will process Product as specified by Customer. Commercial standards will apply (1) except as hereinafter provided, or (2) unless MasterImage has received, reviewed and acknowledged in writing acceptance of Customer’s own specified tolerances and standards.

(b) In the event of any nonconformity with the foregoing, MasterImage’s sole responsibility shall be, at its sole option and expense (including the expense of freight: (1) to rework the Product to remove any defect in MasterImage’s workmanship, or (2) to pay to customer the replacement cost of the Product, without interest, upon Customer’s transfer of title to the Product to MasterImage.

(c) “Replacement Cost” shall mean the cost of Customer’s cost of the MasterImage Product or Service on the date Customer submits its written warranty claim to MasterImage. All warranty claims must be in writing and submitted by Customer to MasterImage’s plant manager not later than 180 calendar days from the date that the Product was first shipped from MasterImage’s plant (“Warranty Term”).

II. Limitation of Warranty

The warranty given under paragraph I shall not apply:

(a) if Customer does not present a claim for breach of warranty by the end of the Warranty Term, or

(b) if Customer is in default of its obligations to MasterImage, including payment of any amount due hereunder or otherwise.

III. Disclaimer of Warranties and Limitation of Losses

THE WARRANTY SET FORTH IN PARAGRAPH I (AS LIMITED BY PARAGRAPH II) IS IN LIEU OF ALL OTHER WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS, IMPLIED AND/OR STATUTORY, AND ALL SUCH OTHER WARRANTIES, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED. IN NO EVENT SHALL MASTERIMAGE BE LIABLE FOR LOSS OR DAMAGES, WHETHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL, REGARDLESS OF THE LEGAL THEORY ASSERTED, WHETHER NEGLIGENCE, WARRANTY, STRICT LIABILITY OR OTHERWISE EXCEPT AS SPECIFICALLY PROVIDED IN PARAGRAPH I.

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