Three Year Accidental Damage Protection Program

For VCS Notebook Computers

Accidental Damage Protection - Terms and Conditions

BY ACCEPTING THE VCS ACCIDENTAL DAMAGE PROTECTION SPECIFIED ON YOUR CERTIFICATE, YOU AGREE TO BE BOUND BY AND ACCEPT THE TERMS AND CONDITIONS HEREIN. PLEASE READ THIS AGREEMENT IN ITS ENTIRETY. THESE TERMS AND CONDITIONS WILL SUPPLEMENT THE TERMS AND CONDITIONS OF VCS''S STANDARD INVOICE TERMS AND CONDITIONS OF SALE.

For your one-time payment to us through your Computer Dealer, VCS Computers will provide you with Accidental Damage Protection pursuant to the following terms and conditions:

1. Products Covered/External Components Excluded ("Covered Product"):

This Agreement will cover the notebook/laptop described on our invoice to your Dealer, including the central processing unit, internal keyboard, internal hard drives, and the computer's built-in LCD. This Agreement does not cover peripheral devices, such as docking stations, external modems, external speakers, game devices, carrying cases, secondary monitors, external mouses, external keyboards and other computer components not internal to the Product. This Agreement is for accidental damage to hardware only (see Scope of Coverage below). Coverage does not cover any defects in or damage (including without limitation virus-inflicted damage) to software preloaded on, purchased with or otherwise loaded on the Product, including without limitation custom integration items.

2. Scope of Coverage:

a. Repair and Replacement for Accidental Damage. During the term of this Agreement and subject to the limitations in this Agreement, we will repair or replace the Product as necessary for a Term of Three Years from the date of our invoice to correct accidental damage to the Product. For example, under this Agreement, we will repair or replace the Product if it is damaged because:

•• You accidentally spill liquid on the keyboard;

•• You accidentally drop the Product; or

•• An item is accidentally dropped on the Product.

If we repair your Product, you understand and agree that we may replace original parts with new or used parts from the original manufacturer, or a different one. Replacement parts will be functionally equivalent to the original parts. In our discretion, we may designate an affiliated company or contract with a third party to complete repairs on the Product.

If we decide that it is necessary to replace the Product rather than repair it, you will receive a Product equivalent to or better than the VCS Product you originally purchased, as determined by us in our sole and reasonable discretion.

b. Limits of Protection: This Agreement does not cover and we are not obligated to repair or replace:

•• Any Product located outside of the continental United States and the District of Columbia.

•• Any damage to or defect in the Product that is cosmetic only or otherwise does not affect Product''s functionality. Under this Agreement, we are not obligated to repair reasonable wear and tear on the Product and other superficial items, such as scratches and dents that do not materially impair your use of the Product.

•• Any Product that anyone other than VCS or a person we designate has tried to repair. Any repair or attempted repair on the Product covered by this Agreement by any party other than us or someone we designate will void and cancel this Agreement. We will not reimburse you for any repairs that you or another person make or attempt to make to the Product.

•• Any Product that is lost or stolen. To receive repair or replacement of a Product, you must return the damaged Product to us in its entirety.

•• Any Product that is damaged by fire from an external source or that is intentionally damaged. If we find evidence of intentional damage, we are not obligated to repair or replace the Product.

•• Major Parts replacement limited to one each: LCD panel, Motherboard, Optical Drive, CPU, Hard-Drive, Battery, Memory during the term of the protection.

•• Any recovery or transfer of data stored on the Product. You are solely responsible for all data stored on the Product. We do not provide you any data recovery services under this Agreement.

•• It is not necessary that you perform any preventive maintenance on the Product to obtain repair or replacement of a Product covered by this Agreement.

•• This Agreement does not cover damage from events normally considered "Acts of God" or "Force Majeure," including electrical surge damage and other events beyond the control of either party, misuse or storage of the Product in violation of manufacturer's specifications (see user's manual for proper use and care), or events normally covered by customary casualty insurance.

•• You understand that so long as we make the decision in good faith, the determination of what damage is covered by this Agreement is within our sole discretion.

Limitation of Liability.

NEITHER VCS Computers. NOR ITS AFFILIATES, PARTNERS, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS ARE LIABLE TO YOU, OR ANY SUBSEQUENT OWNER OR OTHER USER OF THE PRODUCT, FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LIABILITY OR DAMAGES FOR THE PRODUCT NOT BEING AVAILABLE FOR USE, LOSS OR CORRUPTION OF DATA OR SOFTWARE, PERSONAL INJURY, DEATH, OTHER INDIRECT LOSS DUE TO PRODUCT FAILURE, OR ANY AND ALL INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE PRODUCT, EVEN IF YOU HAVE ADVISED US OF THE POSSIBILITY OF SUCH DAMAGES. BY ENTERING INTO THIS AGREEMENT, YOU EXPRESSLY WAIVE ANY CLAIMS DESCRIBED IN THIS PARAGRAPH. YOU AGREE AND UNDERSTAND THAT WE WILL NOT BE RESPONSIBLE FOR ANY AMOUNT OF DAMAGES ABOVE THE AGGREGATE DOLLAR AMOUNT PAID BY YOU FOR THE PURCHASE OF THE PRODUCT COVERED BY THIS AGREEMENT, SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO SOME OR ALL OF THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU.

3. Your Responsibilities.

a. General: You are responsible for complying with the following:

1. You Must purchase the VCS Extended Warranty to obtain coverage for component failure for a total of three years.

2. Cooperate with Technician. You must cooperate with the technician to ensure that the Product is properly serviced. At our discretion, the technician will either send you a replacement part for you to install on the Product or give you directions to ship the Product to our repair facility. In some cases, where we can determine over the telephone that a replacement Product will be necessary, we may, in our discretion, ship you a replacement Product immediately. However, if you fail to return the damaged Product to us, you agree that you are responsible for the retail price of the replacement Product.

3. Payment. Coverage is only available with the purchase of a VCS notebook/laptop computer (the "Product") through an authorized VCS dealer. The Certificate will specify the serial number of the Product for which Coverage was purchased. In addition, the Product will be labeled with the serial number.

b. How and When to Use:

1. The hours of Coverage support shall not include regular holidays which include New Year's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day, and the day after Thanksgiving and Christmas Day. VCS is not liable for any failure or delay in performance due to any cause beyond its control.

2. To initiate Coverage under this Agreement, you must call Your VCS Dealer or our service department at 540-951-5150. When you call, a VCS technician will ask for the serial number located on your Product. Once the technician has verified your purchase of Protection, he or she will ask you a series of questions to assess the extent and cause of damage to the Product.

4. General Terms:

a. Term and Renewal: This Agreement begins on the date of invoice for the product to your VCS Dealer and expires in Three Years as indicated in our Certificate of Protection. The term of this Agreement may not be extended or renewed.

b. Claims of Confidentiality or Proprietary Rights: You agree that any information or data disclosed or sent to VCS, over the telephone, electronically or otherwise, is not confidential or proprietary to you.

c. Transferability: You may not transfer this Agreement to subsequent owners of the Product without our prior written consent.

d. Cancellation: We may cancel this Agreement if you make a misrepresentation to us or otherwise breach your obligations under this Agreement. If we cancel this Agreement, we will send you written notice of cancellation at the address indicated in our records. The notice will include the reason for cancellation and the effective date of cancellation, which will not be less than ten (10) days from the date we send notice of cancellation to you.

e. Entire Agreement: This Contract is the entire agreement between you and VCS with respect to its subject matter and none of VCS's employees or agents may orally vary the terms and conditions of this Contract.

f. Additional Remedies: This Agreement affords you specific legal rights. You may have additional legal rights that vary from state to state, including those listed below. This Agreement is not a warranty. The Product you purchase from us will also come with a limited warranty from VCS or third party manufacturers of Products we distribute. Please consult our limited warranty statements for your rights and remedies under those limited warranties.

g. Arbitration: You agree that, except as set forth in this paragraph, any and all claims or disputes arising out of or in connection with or in relation to this Agreement will be resolved by final and binding arbitration. However, this arbitration provision does not apply to any claim we may have against you for non-payment of monies owed for the purchase of this Agreement or the Product or any security interest we have in the Product covered by this Agreement. All arbitration proceedings will be held in the office of the American Arbitration Association closest to your permanent residence. Any arbitration that arises out of this Agreement will be held in accordance with the American Arbitration Association's Commercial Arbitration Rules. The Federal Arbitration Act, 9 U.S.C. §§ 1, et seq., shall govern all arbitration proceedings under this Agreement.