Warranty Service Authorization Policy

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1 Warranty Service Authorization Policy As part of continuous improvement program for Albany High Performance Door Solutions, and to facilitate the payment process of warranty claims, we have developed this policy for warranty service authorization. This policy and its procedures are intended to involve AAES in the initial stages of a warranty service call to provide the best support and clarify the work to be done. WARNING Do not install, operate or service the product unless you have read and understand the safety practices, warnings, installation and maintenance instructions contained in the installation manual. 1. Upon identification of a warranty issue, the dealer must contact AAES Technical Support department prior to performing any work. AAES will issue a case number to log the call into our system. This work order will serve as authorization for the dealer to perform warranty work up to a standard amount of $ If, upon further review of the needed repair, the dealer believes that the service required would exceed the standard amount, the dealer must call AAES Technical Support to discuss the warranty repair. Tech Support will assist in diagnosis and resolution of the repair. After discussing the problem and assessing the service required, a Tech Support Representative will give the dealer an estimate of the number of hours authorized to perform the work. This amount will be logged into our system along with all call details. 3. Any time the dealer determines that the work required would exceed the AAES estimate, the dealer must call in to AAES Tech Support to develop a revised estimate. In the event of a dispute where the AAES estimate differs from the dealer s estimate of the work required the Tech Support Representative will document the disputed amount to be reviewed by the Dealer Technical Support Manager. 4. For any emergency or after hours call, the dealer is authorized to perform an initial inspection and repairs not exceeding the $ amount. It is the dealer s responsibility to notify AAES the next business day of any work done after hours. 5. Upon completion of the warranty service, the dealer should fill out the warranty claim form documenting all required information and work performed. In addition, pictures must also be provided documenting the failure. Please pictures to warranty.us.albany@assaabloy.com. Please reference the case number or the door serial number in the subject line.

2 6. All invoices with warranty claims that are submitted within 30 days of completion of warranty service and adhere to the above requirements will be processed within 10 business days of receipt. Claims will be paid in net 45 days after claim has been processed. 7. Claims submitted days after repair completion will be paid at 50%. Claims submitted outside this policy will be denied.

3 PRODUCT WARRANTY ADMINISTRATION PROCEDURE 1. Purpose: 2. Definitions: To define the process of administering product warranty claims and the expense reimbursed to the distributor for performing warranty service. 2.1 Warranty assurance to the purchaser/user that the product will be free from defects in material and workmanship for a specified use and time period after shipment. 2.2 Accessory products and service parts warranty AAES expressly warrants that accessory products and service parts sold will be free from defects in material and workmanship under normal use for a period of ninety (90) days from the date of shipment. The remedy for defective accessory products and service parts is their replacement. Labor & travel costs are not reimbursed. 2.3 Returned Materials Authorization (RMA) An AAES form sent to the distributor, either by fax or , bearing an RMA number, which authorizes return of product or parts to AAES. 2.4 Diagnostic Time The time allowed to determine the root cause of a failure. One (1) hour per incident. 2.5 Standard Repair Times - Allowed time needed to repair product defects in workmanship and material. AAES establishes these guidelines. The guideline may also be used as a tool for efficiently scheduling service work. 2.6 Travel Mileage Round trip mileage from the nearest dealer to the customer site paid at the $.75/mile per incident. Maximum of 300 miles. Travel mileage will only be paid for one vehicle for jobs where 2 Technicians are approved. 2.7 Travel Hours Technician time paid at 75% of published labor rate for round trip travel from the nearest Dealer to the customer site. Maximum of 7 hours per incident. Delays due to traffic, weather, accidents or vehicle failures are not included. 2.8 Warranty claim - The warranty claim form submitted to AAES. It is used to record and communicate the expense incurred to perform warranty repairs. 2.9 End user The customer who purchased the product for use in their facility. 3. Forms Used 4. How it Works Product Warranty Statement Returned Materials Authorization Warranty Claim Form 4.1 Outline of the Warranty Process The distributor purchases service parts from AAES or uses their AAES service parts inventory for warranty service work. Prior approval is not required for service parts purchases Warranty parts will be shipped from AAES using standard UPS ground service or its equivalent. Should overnight service be requested, the dealer will be responsible to pay the difference between standard ground and overnight service.

4 4.1.3 Pictures will be required to be sent of the affected part(s). These need to include, but are not limited to: - Affected Component. - Complete Door. - Control Panel with fused disconnect shown within five (5) foot (if applicable). - Control Panel penetrations and wiring. Additional pictures may be requested. Please these to warranty.us.albany@assaabloy.com. Include the case number or door number in the subject line. Failure to include pictures may result in payment rejection or delay All warranty parts sent by AAES with a request to return the defective component(s) via an RMA number will be sent at no charge contingent upon the prompt return of any defective parts. If the defective parts are not returned within 30 days, the Distributor will be invoiced for the part(s) and original shipping Each Warranty Job requires the Distributor to obtain a Case number from AAES. Every Distributor is responsible to obtain a Case number prior to commencing any warranty work In non-emergency situations, the distributor is required to call AAES for Authorization of all warranty work prior to its completion. Authorization will be in the form of a Case number that must be included with the warranty invoice. All warranty claims must be submitted within thirty, (30) days after performing the work. Record service parts used and labor time on the Warranty Claim Report In emergency situations, such as after business hours or on weekends, a Case number must be obtained on the next business day for such warranties AAES will review the claim and process it for payment within 10 (ten) business days after receipt; providing all information has been completed on the claim form Claims will be paid net 45 days after approved claim has been submitted for processing New Parts that are determined to be defective must be returned to AAES within thirty (30) business days of receipt in order to receive credit; part/s received beyond the specified thirty (30) days will not be credited. Any defective part/s returned for credit must have been requested by AAES to be returned as well as have a Return Materials Authorization (RMA) number issued by AAES. Parts returned without this RMA number cannot be accepted and will not be credited to your account All Warranty claims, (including labor) will only be processed upon receipt and verification of defective part/s accompanied with the proper RMA documentation. 4.2 General Warranty Administration Policies Waiting time is not reimbursable warranty repair work. The distributor service department is responsible for scheduling of warranty service work and the End user is responsible for allowing access to the product at the time warranty service is to be performed Reimbursement for warranty service work is based on the hours specified in the AAES Standard Repair Time (SRT) Guidelines. Two person crews are reimbursed only when specified in the SRT. If special situations arise that necessitate a two-person crew or work not specified in the SRT, AAES must be notified and must give advance authorization for warranty reimbursement of the work. Unless prior authorization is given, reimbursement is based on AAES SRT AAES has the option to perform warranty service using AAES employees Upon receiving the End User s call requesting warranty service, the distributor has responsibility for diagnosing the problem and insuring that proper AAES parts accompany the service person responding to the warranty service call Subcontractors hired by the distributor to perform warranty service work are reimbursed according to SRT guidelines, at the distributor s warranty labor rate, and

5 through the standard warranty claim report. The distributor remains responsible for the quality of the subcontractor s work. Payment for warranty service work is made to the distributor who is responsible for paying the subcontractor Premium or overtime work, if necessary, requires prior authorization from AAES A crew of one person is used to perform all warranty work, unless prior approval from AAES Technical Support has been granted. 4.3 Warranty claims Information Submit warranty claims on the warranty claim report form with invoice attached for the total amount of your claim. A copy of the form is attached. Copies of service work orders will assist in timely claim processing. The warranty claim report form is used only to submit expenses to perform warranty repairs Warranty claims MUST record a product serial number to be processed. Warranty claims without product serial numbers will be returned to the distributor for completion. The distributor must resolve serial number discrepancies before the claim is processed for payment All warranty claims submitted to AAES MUST contain a Case number. Warranty claims without such numbers will be returned to the distributor via fax or for correction using AAES invoice notification form Pictures of the affected part(s) will now be required before payment is made on a warranty claim. These need to include, but are not limited to affected components, the complete door, control panel with fused disconnect shown within five (5) foot (if applicable), control panel penetrations and wiring. These can be ed to warranty.us.albany@assaabloy.com. Please include the case number or the door number in the subject line A satisfied customer after warranty service work is performed is important to the distributor and AAES. After a warranty claim is processed, the end user may be called or sent a warranty service survey to assess their satisfaction with the completed warranty service work. 4.4 Warranty Labor Rates The Maximum Base Labor Rate will be no greater than the average posted retail labor rates for 3 national auto distributors in the local area The Dealer Maximum Warranty Labor Rate for Dealers who have attended AAES training within the last 2 years will be 100% of the Base Labor Rate The Dealer Maximum Warranty Labor Rate for Dealers who have not attended training in the last 2 years will be 75% of the Maximum Base Labor Rate Shop Labor Rates increases can be requested one time per year and are limited to an increase of 10% Warranty Labor Rate requests should be sent to USWarranty.ADS@albint.com AAES will send written confirmation of any rate change and its effective date to the distributor. The new rate will be used on warranty service work performed after its effective date. 4.5 Warranty Travel Reimbursement Guidelines Warranty Travel will be the round trip distance from the nearest dealer location to product installation site on the original sales order Warranty Travel Labor will be reimbursed at 75 % of the Dealer s Warranty Labor Rate at a maximum of 7 Hours per Warranty Incident Warranty Travel Mileage will be reimbursed at $.75/mile per incident at a maximum of 300 miles. Travel mileage will only be paid for one trip for jobs where 2 Technicians are approved.

6 4.6 Warranty Standard Repair Times Warranty Standard Repair Times (SRT) are established for AAES products. SRT s were created with the assistance of AAES distributors and assume that service persons are trained and possess a basic working knowledge of AAES products. SRT s by product are attached Items not presently on the SRT will require approval from AAES for maximum allowable service time. 4.7 Tech Support Rep Site Visits Expenses for failures where the root cause is determined to be a defect in materials or workmanship will be covered by AAES Expenses for failures where the root cause is determined to be related to the installation of the product will be charged to the installer at a rate of $1000/day plus travel expenses Expenses for failures where the root cause is determined to be from damage, abuse, lack of required maintenance or misapplications will be billed to the customer at a rate of $1000/day plus travel expenses. 4.8 Service parts returned for warranty review If returned service parts are found not to be defective, AAES will call the distributor s service manager to discuss the situation. At that time AAES, at its sole discretion, will make a decision as to whether the warranty credit will stand or be reversed AAES will reimburse the distributor for the freight expense to return the defective service parts to AAES. The reimbursement is recorded on the Warranty Claim Report. While UPS red or blue services, or other next day air services, may in some cases be used to ship the original service part, only UPS ground charges (or equivalent) are reimbursed for return of the service part to AAES. 5. Items not reimbursed as warranty include, but are not limited to: Lubrication and adjustment Installation oriented problems Misuse and/or abuse of product Misapplication of product Exceeding the product s operating ranges and/or rated capacity or cycle rating. General product maintenance and cleaning. Labor Charges for phone time or wait time with Tech Support All items excluded from coverage in Product Warranty Statements.

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