FNORD DATACENTER SYSTEMS
LIMITED WARRANTY TERMS AND CONDITIONS AGREEMENT

PLEASE READ THIS DOCUMENT CAREFULLY

IT CONTAINS IMPORTANT INFORMATION ABOUT YOUR RIGHTS AND OBLIGATIONS AS WELL AS LIMITATIONS AND EXCLUSIONS THAT APPLY TO YOU, YOUR SERVER, AND YOUR COMPANY.

THIS AGREEMENT CONTAINS THE LIMITED WARRANTY AND TERMS AND CONDITIONS OF PURCHASE AND SERVICE THAT APPLY TO FNORD DATACENTER SYSTEMS. ALL FNORD RACKMOUNT SERVER PRODUCTS HAVE A 2 YEAR WARRANTY PERIOD. PLEASE REFER TO THE WARRANTY DETAILS OUTLINED BELOW. THE TERM "PRODUCT" MEANS HARDWARE DESCRIBED IN YOUR PURCHASE RECEIPT OR INVOICE. THE TERM "PRODUCT" DOES NOT INCLUDE SOFTWARE, EXTERNAL HARDWARE PERIPHERALS SUCH AS MICE, PRINTERS, SCANNERS, ETC., AND THEIR RELATED DOCUMENTATION (COLLECTIVELY "ACCESSORIES"). PLEASE BE CERTAIN TO READ THE INDIVIDUAL WARRANTIES FOR ACCESSORIES CONTAINED IN THE SHIPPING CARTONS.

GENERAL TERMS OF SALE

INSPECTION OF PRODUCT UPON RECEIPT
You must thoroughly examine the Product and Accessories when you receive them. If any item is damaged or missing, you must notify FNORD by phone or e-mail at once. FNORD will not consider any claim for damaged or missing items more than ten (10) business days from the date of delivery.

SHIPMENT AND TITLE
FNORD will arrange shipping of the Product and Accessories to your address from the shipping point of origin, Bellingham, WA 98225-4915. Title to the Product and Accessories passes to you upon delivery to the carrier and with that the risk of loss. The cost of shipping and handling will be shown on your purchase receipt or invoice. All shipments made by UPS, FedEx, or a similar competing carrier, whether by air or ground will be insured for their full replacement value with no exceptions. FNORD will inform you of estimated shipment dates but will not be responsible for delays in delivery due to events beyond its control, including shortage of materials, labor strikes, transportation failures, acts of God or any other major diety. In the event that a FNORD product is damaged during insured shipment by a major carrier such as UPS or FedEx, FNORD will handle all arrangements for a prompt and quality repair of the FNORD product. Shipment-damaged merchandise must be returned to FNORD by a common shipping carrier for repair by FNORD's technicians.

PRICE AND PAYMENT
Your total price for the Product, Accessories and Services will be stated on your purchase receipt or invoice. Prices and configurations advertised are subject to change without notice or obligation prior to acceptance of your order. In the event that prices and/or specifications change prior to the processing of your order, you will be offered the choice of the new specification or a cancellation and full refund of your order. Specifications may change due to product availability. In certain events, FNORD reserves the right to substitute equivalent-function components with those of equal or greater value. Unit prices advertised on the FNORD website do not include shipping charges or applicable sales taxes, (state of Washington customers) which will be added to the total price. Any unavoidable existing or new taxes or fees charged by any governmental authority will be added to your invoice.

PRODUCT RETURN POLICY
One of the reasons we are able to offer such great savings to our customers is our low overhead. In accordance with continuing to do so it is therefore our policy not to give cash refunds, and we do consider all sales final. We do, however, back our products with an extensive 2 year parts and labor warranty. During the warranty period, returned items that are non-functional will be exchanged. Returned items must be accompanied by their original packaging and all associated materials.

WARRANTY SUPPORT AND SERVICE PROCEDURES
(1) Contact FNORD customer support by phone or e-mail for an attempted technical support resolution of your issue. We will explore all possible reference information available on the Internet related to your situation and attempt to resolve the issue to your satisfaction. FNORD technical support will assist you in diagnosing the issue and determining the functional status of any component(s) in question.

(2) If FNORD customer support determines that your product contains non-functional components and/or needs warranty service, you may choose to ship the Product and/or Accessories back to FNORD using a insured common shipping carrier (UPS, FedEx, etc). FNORD will provide its UPS or FedEx account number for the purpose of billing the return shipment.

(3) If you choose to make use of FNORD's next day on site service, all reasonable attempted resolutions to your situation must have been previously exhausted with FNORD technical support. The component in question must be determined beyond any doubt to by truly non-functional and in need of immediate replacement. If the customer chooses, customer-employed qualified and experienced technicians may repair the server and/or replace components without voiding the FNORD server warranty.

(4) If the customer does not have qualified technicians and/or does not wish to replace a non-functional component themselves, FNORD will provide an on site service technician within twenty-four (24) hours from the time of warranty service need notification. As stated above the component in question must be absolutely non-functional. On-site service does not cover any pre-existing software and/or customer installed software or the customer data content of any server. The only software which will be maintained or installed by an on-site service technician is the operating system device drivers needed to properly interface with a FNORD server's input/output components. "Warranty need notification" is herein defined as the initial starting time and date FNORD is notified that a FNORD product requires warranty service.

(5) As stated above, from the time of service notification FNORD will be obligated within twenty-four (24) hours to provide a qualified technician at your work site. This 2-day parts/labor on site service warranty only covers FNORD products located within reasonable
commuting range of all major United States and Canadian cities. FNORD products located in remote or rural areas which do not have qualified and/or available service personnel cannot be covered by FNORD's on site service warranty. On-site coverage is still available for FNORD products located in remote or rural areas, provided the customer agrees to pay the additional travel costs for an on-site service technician. FNORD products located in remote or rural areas remain fully covered by the 2-year parts replacement warranty if the customer wishes to ship defective components back to FNORD.

(5a) If the customer wishes to replace components themselves, FNORD will provide cross-shipped replacement products provided the customer agrees to return the defective component as soon as possible. As stated above, non-functional components may be returned to FNORD using FNORD's UPS or FedEx account number. Insured ground shipment is the preferred method of returning non-functional components.

(6) The customer agrees to provide and facilitate all reasonable access to the FNORD product for repair by FNORD-hired on site service technicians.

(7) On-site service is available between the hours of 8 AM to 6 PM, in the time zone in which the FNORD product is located. On site service is not available during Saturdays, Sundays, or other primary bank-honored holidays without the prior arrangement of a customized service contract. On site service contracts covering weekends and/or bank holidays are available for an additional fee, which is dependent upon the total complexity of the FNORD product(s) a particular customer may wish to purchase.

RETURN PROCEDURES
Write the FNORD-provided RMA number in large, clear characters on the outside of each box you ship. You must include a copy of your FNORD invoice and/or packing slip with the returned Product and Accessories to establish proof of purchase. You must also return all disks, cables, and manuals supplied with the Product and Accessories. Fully functional returned items must be returned in a condition ready for immediate resale to another customer. Unless RMA'ed non-functional product is shipped using FNORD's UPS or FedEx account number, you are responsible for the product and accessories until FNORD received them, including all shipping/handling and insurance charges.

FINANCE CHARGE
2.0% interest per month will be charged for payments beyond the terms stated on the invoice. In addition, if payment is more than 45 days late, Fnord will terminate the Product Limited Warranty as described above and below with or without notice and without any customer recourse. Returned checks are subject to a $35 NSF fee. Our attorney will process uncollectable checks for the maximum amount allowed by law. This can be as high as 3 times the amount plus attorneys fees.

PRODUCT LIMITED WARRANTY; DISCLAIMER OF WARRANTIES
DISCLAIMER OF WARRANTIES. THIS LIMITED WARRANTY IS THE ONLY WARRANTY APPLICABLE TO THE PRODUCT. ANY IMPLIED WARRANTY IS LIMITED IN DURATION TO THE LIMITED WARRANTY PERIOD DESCRIBED BELOW. NO ORAL OR WRITTEN INFORMATION, OR ADVICE GIVEN BY FNORD, ITS AGENTS OR EMPLOYEES SHALL CREATE A WARRANTY OR IN ANY WAY INCREASE THE SCOPE OF THIS LIMITED WARRANTY. CUSTOM SERVICE & WARRANTY PLANS ARE AVAILABLE FOR AN ADDITIONAL COST AND CAN BE NEGOTIATED ON A PER-CASE BASIS WITH FNORD TECHNICAL SUPPORT AND SALES.

ANY AND ALL LIABILITY OF FNORD UNDER THIS AGREEMENT IS EXPRESSLY LIMITED TO THE PRICE YOU HAVE PAID FOR THE PRODUCT AND ACCESSORIES. YOUR SOLE REMEDY AGAINST THEM IN ANY DISPUTE UNDER THIS AGREEMENT SHALL BE TO SEEK RECOVERY OF THE AMOUNTS YOU HAVE PAID UPON THE PAYMENT OF WHICH THEY SHALL BE RELEASED FROM AND DISCHARGED OF ALL FURTHER OBLIGATIONS AND LIABILITY TO YOU. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR SPECIAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, INCLUDING, BUT NOT LIMITED TO, REDRESS OF ANTICIPATED PROFITS OR REVENUE, ECONOMIC LOSS, LOSS OF DATA, LOSS OF USE OF THE PRODUCT OR ANY ASSOCIATED EQUIPMENT, COST OF CAPITAL, COST OF SUBSTITUTE OR REPLACEMENT EQUIPMENT, FACILITIES OR SERVICES, DOWN TIME, YOUR TIME, THE CLAIMS OF THIRD PARTIES, AND INJURY TO PROPERTY, REGARDLESS OF THE NATURE OF THE CLAIM, INCLUDING BUT NOT LIMITED TO, BREACH OF WARRANTY, BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR STRICT LIABILITY, AND EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE.

THIS LIMITED WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS THAT VARY FROM STATE TO STATE. SOME STATES DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU.

STATEMENT OF LIMITED WARRANTY
FNORD warrants to the end-user that the Product will be free from defects in materials and/or workmanship. FNORD server and workstation parts are covered for 2 years from the date of shipment and 2 years for labor costs. At any time within 24 months from the date of the shipment, FNORD will, at its option: (1) provide replacement parts and next day on-site technician service necessary to repair the Product, or (2) replace the Product with a comparable Product. Any replacement parts or Products will be new or serviceably used, comparable in technological function and performance to the original part or Product. Purchasing additional parts or Products from FNORD does not extend this warranty period.

EXCLUSIONS
This limited warranty covers normal Product use. FNORD does not warrant and is not responsible for:

(1) DAMAGE CAUSED BY FAILURE TO PROVIDE A SUITABLE INSTALLATION OR OPERATING ENVIRONMENT FOR THE PRODUCT AND/OR ACCESSORIES;
(2) DAMAGE DURING SHIPMENT, OTHER THAN ORIGINAL SHIPMENT TO THE CLIENT; SHIPPING DAMAGE WILL BE HANDLED THROUGH THE UPS OR FEDEX SHIPMENT INSURANCE CLAIMS PROCESS.
(3) DAMAGE CAUSED BY IMPACT WITH OTHER OBJECTS, DROPPING, FALLS, SPILLED LIQUIDS, OR IMMERSION IN LIQUIDS AT CUSTOMER PREMESIS
(4) DAMAGE CAUSED BY A POWER SURGE OR A DISASTER SUCH AS FIRE, FLOOD, WIND, EARTHQUAKE, OR LIGHTNING;
(5) DAMAGE CAUSED BY UNAUTHORIZED ATTACHMENTS, ALTERATIONS, MODIFICATIONS OR FOREIGN OBJECTS;
(6) DAMAGE CAUSED BY USE OF THE PRODUCT OR ITS ACCESSORIES FOR PURPOSES OTHER THAN THOSE FOR WHICH THEY ARE CUSTOMARILY USED OR INTENDED BY THEIR MANUFACTURER;\
(7) DAMAGE FROM IMPROPER INSTALLATION OR MAINTENANCE;
(7a) DAMAGE FROM INSTALLATION IN AN EXCESSIVELY HOT, COLD OR DUSTY ENVIRONMENT.
(7b) DAMAGE FROM EXCESSIVE ELECTROMAGNETIC FIELDS GENERATED BY CUSTOMER OWNED OR LEASED EQUIPMENT.
(7c) DAMAGE FROM EXCESSIVE VIBRATION, IMPROPER MOUNTING ANGLE OR OTHER ENVIRONMENTAL STRESS.
(8) DAMAGE CAUSED BY ANY OTHER ABUSE, MISUSE, MISHANDLING, OR MISAPPLICATION, INTENTIONAL OR UNINTENTIONAL;
(9) CONSUMABLE PRODUCTS SUCH AS FLOPPY DISKS, BURNABLE CD-ROM OR DVD DISCS AND SIMILAR;
(10) ACCESSORIES OR OTHER PRODUCTS OR SERVICES OF COMPANIES OTHER THAN FNORD;
(11) DAMAGE CAUSED BY ANY SOFTWARE PROGRAMS, DATA, VIRUSES, OR OTHER FILES;\
(12) DAMAGE RESULTING FROM USER'S FAILURE TO BACK-UP USER-CREATED DATA OR ANY OTHER FILES

OBTAINING WARRANTY SERVICE
To obtain service under this limited warranty, you must contact FNORD Technical Support. You may contact FNORD Technical Support via email, support@fnordsystems.com, or by telephone at +1-360-527-3301 between the hours of 9 AM to 6 PM, United States Pacific Time Zone. Customers who purchase certain high-end FNORD servers will also receive a twenty-four hour cellular phone number for FNORD technical support. FNORD technical support personnel will work to resolve issues professionally and quickly. However, you must reasonably assist FNORD in providing technical support services. Procedures for handling parts and replacements are outlined above. Procedures for handling on-site warranty service are outlined above. Warranty service may be denied or limited if your account is not in good standing, including outstanding debt for replacement parts not returned to FNORD. If you choose to contact FNORD in writing, send your request for warranty service to the following address: Fnord Systems, ATTN: Support Dept, 406 Gladstone St. Bellingham WA 98225-4915.

Whether you are obtaining replacement parts, having repairs, or returning the entire Product and Accessories for a replacement, the above outlined procedures must be followed exactly. FAILURE TO FOLLOW THE PROCEDURES SET OUT IN THE ABOVE "WARRANTY AND SUPPORT PROCEDURES" SECTION MAY RESULT IN DELAYS IN THE REPLACEMENT OF PARTS, REPAIR, OR REPLACEMENT OF YOUR PRODUCT, OR MAY RESULT IN ADDITIONAL CHARGES TO YOUR ACCOUNT. FNORD RESERVES THE RIGHT TO REFUSE TO ACCEPT PRODUCTS WHERE THESE PROCEDURES ARE NOT FOLLOWED.

Back up all files before returning the Product and/or Accessories for repair or replacement. FNORD recommends that you have an external back-up system at all times to reconstruct lost or altered files, data, or programs. FNORD also suggests that you back up all data before any on-site service call by a on-site technician. Strenuous efforts will be made by FNORD to preserve the content of RAID arrays and similar data storage devices which contain customer-generated data. HOWEVER, FNORD IS NOT RESPONSIBLE FOR ANY LOSS OF YOUR DATA OR SOFTWARE UNDER ANY CIRCUMSTANCES WHATSOEVER AS A RESULT OF WARRANTY REPAIR SERVICE.

You acknowledge and agree that the diagnostic or repair Services of FNORD are provided without any obligation of confidentiality or non-disclosure on the part of FNORD. You are advised to delete or otherwise remove from the Product, prior to delivering the Product to FNORD or allowing access to an on-site service technician, any files or data you consider private, confidential or proprietary. You understand and agree that a failure to delete or otherwise remove or secure such files and/or data shall constitute your waiver of any privacy, confidentiality or proprietary rights with respect to such files or data.

WITH REGARD TO REPAIRS, REPLACEMENT PARTS OR PRODUCT REPLACEMENTS, FNORD IS NOT RESPONSIBLE FOR ANY AND ALL POSSIBLE DAMAGE CAUSED BY ANY OF THE CONDITIONS LISTED IN THE SECTION TITLED "EXCLUSIONS".

INTERNATIONAL CLIENTS
The limited warranty coverage is the same for clients who are located outside of the United States and Canada, except as stated in this paragraph. All Canadian customers will be treated identically to United States of America customers for warranty replacement, on site service, and all other support issues. On all orders for replacement parts or Product, you must pay for the replacement parts or Product and shipping and handling costs before FNORD will ship the replacement parts or Product. FNORD will refund the cost of the replacement parts or Product when you return the non-functional parts or Product to FNORD. Shipping and handling charges are not refundable.

FNORD IS ALSO NOT RESPONSIBLE FOR ANY CUSTOMS FEES, TAXES, OR VALUE ADDED TAX THAT MAY BE DUE. YOU ARE RESPONSIBLE FOR THESE CHARGES, EVEN IF YOU REFUSE DELIVERY OF THE PRODUCT. ON ALL ORDERS FOR SERVICE, YOU ARE RESPONSIBLE FOR SHIPPING, HANDLING, AND INSURANCE CHARGES TO AND FROM FNORD, CUSTOMS FEES, TAXES, OR VAT THAT MAY BE DUE. CONDITIONS OUTLINED IN THIS SECTION TITLED "INTERNATIONAL CLIENTS" DO NOT APPLY TO CANADIAN CUSTOMERS.

Last revised April 26th 2002
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