JINAN QINGQI MOTORCYCLE CO., LTD
                             PRODUCT WARRANTY

TO WHOM IT MAY CONCERN                                          DATE: JAN.1, 2006

GENERAL CONDITIONS:
The only warranty that shall be applicable to vehicles shall be this written warranty expressly set forth here, except for the expressed liability under such written warranty, JINAN QINGQI MOTORCYCLE CO., LTD. assumes no obligation or liability, and it authorizes no other person or party to assume for it, any other obligation or liability in connection with parts and accessories.

WARRANTY ON VEHICLES:
JINAN QINGQI MOTORCYCLE CO., LTD. (hereinafter called the Seller) warrants its vehicles at conditions as:  (i)Engine capacity under 60CC (incl. 60CC): twelve(12) months after shipment date, or 6.000 km to the end customer, whichever comes first; (ii) Engine capacity above 60CC: twelve (12) months after shipment date, or 10.000 km to the end customer, whichever comes first. It will repair or furnish a replacement part or accessory for any defective or malfunctioning part or accessory imported by the Buyer.

This warranty covers only repairs and replacements made necessary due to defects in material or workmanship, under the applicable warranty only for the warranty period, but fulfill the following standard. It does not cover conditions resulting from negligence or any alteration which have not written approvals signed by the Seller, loss of time, inconvenience, loss of use of the vehicle or any other consequential damage.

Repairs and replacements qualifying under this warranty will be performed by authorized dealers (nominated by the Buyer) within a reasonable time following delivery of the defective or malfunctioning part or accessory to the dealers’ place of Business.

When vehicle is serviced under this warranty, the dealers must be furnished with the purchaser’s copy of the original sales slip for such vehicle, part or accessory, or purchaser’s copy of the repair dealer to validate the date of purchase, as applicable.

The applicable warranty parts and standard:

Note:
1) The expendable parts and grease are not warranted:
This refers to some plastic parts, glass parts, rubber parts, paper parts, cable standard parts, normal expendable and accessory, such as outer plastic parts, stickers, cowling, spark plug, fuse, brake shoe, bulb, belt, filter of air cleaner, piston ring, bearing, clutch pad, shield, helmet box, wind shield glass, axle parts, bumper, Mat floor, luggage carrier/basket, seal gasket, filter of grease, various of grease.

2) The following conditions are not covered by This Warranty :
Repair or replacement required as a result of (a) out of warranty period, (b) accident, (c) misuse or neglect, (d) lack of reasonable and proper maintenance;  (e) Use of replacement parts improperly installed or of unauthorized accessories or not conforming to JNQQ’s specifications, (f) modifications not recommended or approved in writing by JNQQ, (g) normal wear and deterioration occasioned by the use of the Products and Spare Parts, (h) Model no. VIN no. Engine no. are not in conformity with JNQQ’s factory record, (i) Abnormal Usage like racing or any kinds of speed compete game etc. (j), Special discount bikes (noted on purchasing Invoice). (k), Package broken, parts missing, rusty, broken, and damage due to distributors’ improper storage, transport as well as misgovern. (l) Damages caused by non-authorized maintenance points, and/or force majeure, such as typhoon, earthquake, war etc.,

THE SELLER AND BUYER’S OBLIGATION AND LIABILITY:
The Seller is liable for:
i) Only the charge of repairs’ replacement of defective or malfunctioning part or accessory under warrant, and is free from labor charge, import duty, and any other cost happened in the Territory;
ii) Supplying 1% spare parts free of charge, along with each shipment at FOB value.
iii) Instructing the Buyer how to judge reasons which result in defective or malfunctioning of part or accessory. The Seller shall reserves the right of final judgment in case of dispute.

The Buyer is obliged to :
i) Take responsibility of doing after-sale-service in the territory, supply the end customers with service, repair parts free of charge during the warranty period, as well as non-warranty period but at payable basis; and he shall, at its own discretion and responsibility, approve or reject each warranty request made by its assigned local dealers or clients in the Territory, thus enabling prompt settlement of claims for better customer satisfaction.
ii) Make sure that all the retailed Products are unpacked, assembled and commissioned well, reaching the requirements of use.
iii) Remind the end customers to use and maintain the vehicles according to owner’s manual, and conduct warranty service at appointed service shop/center.
iv) present all documents evidencing defective or malfunctioning parts or accessories having been replaced (see attached form), specifying each warranty claim with such information as engine & VIN numbers of failed motorcycles, kilometrage, cause and trouble codes numbers parts replaced, as well as proven photos of quality claim

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