Advance Replacement Terms and Conditions

The following terms and conditions (“Advance Replacement Terms”) govern the advance replacement and return of products (“Products”) manufactured or distributed by Norsat International Inc. (“Norsat”). These Advance Replacement Terms are to be read in conjunction with the Norsat Standard Terms and Conditions (“Standard Terms”). Subject to these Advance Replacement Terms, Norsat offers customers the ability to obtain an advance replacement of a Product (“Advance Replacement Unit”) prior to returning a Product suspected to have failed (“Failed Unit”) to Norsat.

By placing an order with Norsat for the Advance Replacement Unit listed on the quote attached to these Advance Replacement Terms (“Advance Replacement Quote”), you agree to be bound by these Advance Replacement Terms.

1 Scope

Advance Replacement Units are available only for standard Products covered by a valid Limited Warranty (as defined under the Standard Terms). Norsat will provide an Advance Replacement Unit with functionality and specifications equivalent to or better than those of the original Product covered by the Limited Warranty, on the condition that you return the Failed Unit in compliance with these Advance Replacement Terms.

2 Subject to Availability

Norsat will endeavor to provide Advance Replacement Units where appropriate and possible. However, Norsat cannot guarantee the availability of Advance Replacement Units, even if availability is indicated on Norsat’s website. Norsat reserves the right to cease offering any Advance Replacement Unit without prior notice or liability.

3 New or Refurbished Inventory

Norsat may, in its sole discretion, provide Advance Replacement Units from either its new or refurbished inventory.

4 Advance Replacement Unit Order and Delivery

To receive an Advance Replacement Unit, you are required to issue a purchase order to Norsat for the full value of the Advance Replacement Unit. The Advance Replacement Unit will be processed and invoiced through Norsat’s normal sales order process. Any credit relating to the returned Failed Unit will be handled separately in accordance with Section 7 of these Advance Replacement Terms.

All Advance Replacement Units will be supplied on an Ex Works basis (Norsat Warehouse, Richmond, BC). At your request, Norsat may assist in arranging shipment using your designated shipping carrier and shipping account. You must provide Norsat with the applicable shipping account number and shipping method and authorize Norsat to use such account for the shipment. Any such assistance in arranging shipment will not alter the applicable EXW shipping terms.

5 Failed Units Must Be Returned within 30 Days

As a condition of receiving an Advance Replacement Unit, you must return the Failed Unit to Norsat on a DDP – Delivered Duty Paid basis within 30 days after Norsat ships the Advance Replacement Unit.

If any other shipping term is used and Norsat incurs additional costs as a result, you agree to reimburse Norsat for such additional costs, together with any applicable administration fee.

If the Failed Unit is not returned to Norsat within the 30-day period specified above, no credit will be issued for the Failed Unit.

6 How to Return Failed Units

Shipping instructions for the Failed Unit will be provided separately by Norsat. You must not ship or otherwise return the Failed Unit until Norsat has provided the applicable Sales Return Order (“SRO”) number, issued the return shipping instructions, and reviewed and confirmed the Commercial Invoice, where applicable.

Once Norsat has authorized the return, the Failed Unit(s) or component(s) thereof must be securely packaged to prevent damage during transit. Appropriate protective packaging should be used, such as an anti-static bag and solid foam cushioning of a minimum of 2 inches in thickness on all sides, enclosed in a sturdy shipping container.

The applicable SRO number must be clearly marked on the outside of the shipping container. All return shipments must be made in accordance with the shipping instructions provided by Norsat.

7 Failed Unit Evaluation and Credit

Norsat will inspect and test the returned Failed Unit to determine whether the reported fault can be confirmed and whether the fault is covered under the applicable Limited Warranty.

If the fault is confirmed by Norsat and determined to be covered under the applicable Limited Warranty, Norsat may use or dispose of the returned Failed Unit in its sole discretion, and Norsat will issue a credit for the returned Failed Unit by way of a credit memo in accordance with these Advance Replacement Terms.

If the fault is determined to have resulted from causes not covered under the applicable Limited Warranty, including improper installation, operation, handling, misuse, or other customer-attributable causes, or if no fault is found by Norsat, no credit will be issued for the returned Failed Unit. In such cases, you are responsible for arranging collection of the Failed Unit from Norsat within seven (7) days after being notified by Norsat. If the Failed Unit is not collected within this period, Norsat reserves the right to dispose of the Failed Unit in its sole discretion.