QUASAR ENGINEERING LTD. (“QUASAR”) EXPRESSLY CONDITIONS ACCEPTANCE OF ANY PURCHASE ORDER ON CUSTOMER’S ACCEPTANCE OF THESE STANDARD TERMS AND CONDITIONS OF SALE. QUASAR AGREES TO SELL TO CUSTOMERS THE PRODUCTS OR SERVICES DESCRIBED IN THE PURCHASE ORDER ONLY ON THESE TERMS, WHICH ARE EXCLUSIVE AND REPLACE ANY OTHER TERMS AND CONDITIONS, WHETHER CONTAINED IN THE PURCHASE ORDER OR ELSEWHERE. QUASAR IS NOT RESPONSIBLE FOR TYPOGRAPHICAL, CLERICAL, OR OTHER ERRORS CONTAINED IN ANY QUOTATION, PURCHASE ORDER, OR PUBLICATION. ALL SUCH ERRORS ARE SUBJECT TO CORRECTION BY QUASAR. THE CUSTOMER’S ISSUANCE OF A PURCHASE ORDER PURSUANT TO QUASAR’S QUOTATION SHALL BE DEEMED AS ACCEPTANCE OF THESE STANDARD TERMS AND CONDITIONS OF SALE.

1. Terms of Sale: QUASAR pricing is FOB Hong Kong, unless stated otherwise in the quotation and agreed to in writing by QUASAR. Quotation is valid for thirty (30) calendar days unless extended in writing by QUASAR. If QUASAR extends such period or customer’s purchase order will require more than six (6) months to complete, QUASAR reserves the right to adjust its pricing.   Unit prices quoted by QUASAR apply only to specific quantities and delivery schedules contained in QUASAR’s quotation. If customer’s purchase order deviates in quantities or delivery schedules, QUASAR reserves the right to adjust its pricing. QUASAR’s pricing excludes taxes or duties, which are customer’s responsibility.

2. Payment: Payment in full to QUASAR, without offset or deduction, is due as per the payment terms stated in the quotation. If payment is not received when due, a late payment fee of 1% per month (or any part thereof) on the unpaid balance will accrue from date of invoice. If payment is late, QUASAR may, in addition to any other remedy, cancel the purchase order, refuse to make further delivery, or declare immediately due and payable all unpaid amounts for products or services previously delivered or in process. Each delivery is a separate and independent transaction, and payment is due accordingly. Customer is liable for all costs of collection, including reasonable attorney’s fees and costs. QUASAR may apply any payment received to any debt of customer to QUASAR. QUASAR’s acceptance of partial payment does not waive its right to receive full payment of all amounts due.

3. Retention of Product Sold: Without derogation from the Customer obligation to pay for the Products in full, Sold and delivered Products shall remain the property of QUASAR until the Customer pays the purchase price in full. Irrespective of whether title to the Products remains vested in QUASAR, risk in the Products shall pass to the Customer upon delivery.

4. Delivery: Delivery dates for products or services are estimates and depend upon timely receipt of all required information from the customer. QUASAR is not liable for delays in manufacture or delivery resulting from circumstances beyond its reasonable control, including customer’s acts, acts of God, acts of war, terrorism, or civil unrest, fire, flood, windstorm, strikes, labor shortages, or other Force Majeure events. If such event occurs, QUASAR may, at its option and without penalty, defer delivery for a period of time equal to the delay resulting from such event. If customer defers delivery of products scheduled under the purchase order, QUASAR may impose deferral and other charges.

5. Warranty: QUASAR’s products are warranted to conform to applicable specifications, including workmanship, for the period quoted by QUASAR. Liability under this warranty is expressly limited to QUASAR, at its option, repairing or replacing any QUASAR product returned to QUASAR’s factory for that purpose.

THIS LIMITED WARRANTY IS EXCLUSIVE AND IN LIEU OF ANY OTHER WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR

OTHERWISE, AND OF ANY OTHER OBLIGATION OR LIABILITY ON QUASAR’S PART. UNDER NO CIRCUMSTANCES WILL QUASAR BE LIABLE FOR ANY LOSS, EXPENSE, OR CONSEQUENTIAL, LIQUIDATED, OR SPECIAL DAMAGES SUFFERED BY CUSTOMER OR OTHERS ARISING IN CONNECTION WITH THE USE OF OR INABILITY TO USE QUASAR PRODUCTS, SERVICES, OR DOCUMENTATION EVEN IF QUASAR HAS BEEN ADVISED OF SUCH LOSS, EXPENSE, OR DAMAGE.

QUASAR will repair at the customer’s expense any QUASAR product that fails after the warranty period or as a result of misuse, improper installation, unauthorized repair, or unsuitable operating environment. QUASAR will provide an estimate before repair work is begun. If QUASAR finds no failure or defect covered by warranty in a returned product, the customer will pay QUASAR a charge for handling and inspection. The customer must immediately notify QUASAR of any claim upon discovering a defect or failure and obtain a return authorization number prior to returning the product. Returned products must be intact when received by QUASAR and retain QUASAR’s identifying marks. The customer must prepay transportation on the return.

6. Export Control Compliance: Customer will comply with all United States export control laws and regulations, including restrictions on export, re-export, end-use, or transfer of US-origin products, information, or technology, and will defend and indemnify QUASAR against any failure by customer to comply.

7. Confidentiality: QUASAR and customers will protect each other’s confidential information from unauthorized disclosure. QUASAR confidential or proprietary information may not be released or disclosed without QUASAR’s written consent. Disclosure or provision to the customer by QUASAR of any drawings, data, or other information does not convey any proprietary rights to QUASAR’s confidential information.

8. Documentation: Upon written request from the customer, QUASAR will provide documentation & quality statistics, as will be mutually agreed to between the parties and evidenced by written agreement.   Quasar reserves the right to charge a fee for such documentation and/or statistics.

9. Purchase Orders Non-cancelable: Customer purchase orders become non-cancelable upon acceptance by QUASAR, and all sales of products or services by QUASAR are final, non-returnable, and non-refundable.

10. Material Liability: If the customer’s delivery schedule requires QUASAR to stock parts peculiar or long-lead-time materials to meet customer’s product demand, customer will reimburse QUASAR for its inventory of such parts or materials, as well as any applicable restocking charges, if customer defers delivery. If customer’s orders requires QUASAR to purchase material in excess of customer order quantity due to minimum quantity requirements, customer will reimburse QUASAR for its inventory of such parts or materials, as well as any applicable restocking charges, if customer defers delivery or cancels orders.

11. Consigned Material: Should Customer consign material, that material should meet industry standard AQL for that type of material and have a defect rate below 0.3% in production. Should the material be rejected during incoming inspection or have a defect rate above 0.3% and need to be sorted, sorting charges will apply. Should production be delayed above one (1) month due to consigned material either being unavailable due to rejection or defects above 0.3%, Quasar will charge the customer the cost of the material not consigned plus 10%. This cost will be reimbursed when Quasar charges for finished units of the product.

12. Notices: Customer’s purchase order(s) should reference the QUASAR quotation number and must be made out to Quasar Engineering Ltd.

13. Governing LawAll sales will be deemed to take place in Hong Kong, and Hong Kong law, without reference to its provisions relating to choice of law, will govern all rights and obligations under customer’s purchase order, as amended by these terms and both parties consent to exclusive jurisdiction by the competent courts of Hong Kong.

14. Entire Agreement and SeverabilityCustomer’s purchase order, as amended by these terms, constitutes the entire agreement between customer and QUASAR and supersedes any prior understandings. No modification is binding upon

QUASAR, unless signed by an Authorized Representative of QUASAR. The invalidity of any provision hereof shall not affect the validity of the remaining provisions.

Corporate Offices: Flat B1 10/F Yeung Yiu Chung Ind. Building no. 6, 19 Cheung Shun Street Cheung Sha Wan, Kowloon, Hong Kong

Version: 2013v1