ADVANCE REPLACEMENT POLICY

Notwithstanding any provision as set forth in this Limited Product Warranty, Happ may, in its sole discretion, ship advance replacement components to Distributors prior to receipt of the defective Warranted Part. The advance replacement components may be either new or refurbished, at Happ option. The number of parts used in this program is limited and will be determined by Happ.

Happ shall bill advance replacement components to the Distributor and payment will be due within normal terms unless the Distributor complies with all required warranty return procedures with respect to the Warranted Part. Specifically, payment will be due (i.e., Happ will not issue a credit) unless: (i) the Warranted Part is returned with a Return Material Authorization (RMA) Number within the thirty days of the shipment of the advanced replacement component; (ii) the defect is properly identified as indicated on the RMA; and (iii) the defective component, and its reason for failure, is determined by Happ to be covered by the warranty as stated herein.

Warranted Parts returned and found to be in good operating order will be returned to Happ's inventory, and a restocking fee may be charged, up to 25% of the current selling price, at Happ discretion.

CONDITIONS OF RETURN

The following conditions must be met before Happ will accept delivery of any Warranted Parts and perform any warranty services thereon.

1) Return Authorization Number: Happ will not accept delivery of any Warranted Part without an accompanying Return Material Authorization (RMA) Number. This number may be obtained by contacting Happ Midway Warranty's Customer Service Department and stating an appropriate reason for the return. If a Distributor returns a product or part without the RMA number, delivery will be refused.

2) Shipment: Any and all products being returned to Happ for a warranty claim must be shipped prepaid and accompanied by a RMA Number clearly marked on the outside of the package. All returns must be properly packed to prevent damage. Happ shall not be responsible for any damage incurred during shipment.

RETURN PROCEDURE

1. Happ is to be promptly notified by the Distributor within the Warranty Period, that said Warranted Part is defective and return authorization is granted;
2. Such Warranted Part is returned to Happ pursuant to the conditions of return set forth herein;
3. Warranted Part is returned in specified packaging to protect the part from damage and/or static contamination during transportation, and marked with Return Material Authorization (RMA) number.
4. Happ's examination of said Warranted Part discloses to Happ's satisfaction that the alleged defect existed or occurred within the covered warranty period and was not caused by accident, misuse, abuse, improper repair, installation, improper testing; and
5. The Distributor administering warranty coverage is current on all accounts payable.

Upon receipt of the returned item, the item will be inspected. If the problem is identified by Happ as not valid as specified within this warranty statement or the reason for return is different than originally stated, warranty services or credit may be delayed or denied.

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