AutoMate CNC Warranty Agreement

AutoMate CNC Machine Tool Warranty Agreement

AutoMate CNC LIMITED WARRANTY CERTIFICATE Covering AutoMate CNC and Talon CNC Equipment Effective August, 1, 2015. (“AutoMate CNC” or “Manufacturer”) provides a limited warranty to all new mills, turning centers and rotary machines (collectively, “CNC Machines”) and its components (except those listed below under Limits and Exclusions of Warranty) (“Components”) that are manufactured by Detroit Machine Tools and sold by Detroit Machine Tools under the AutoMate CNC and Talon CNC brands or its authorized distributors as set forth in this Certificate. The warranty set forth in this Certificate is a limited warranty and it is the only warranty by Manufacturer and is subject to the terms and conditions of this Certificate.

Limited Warranty Coverage

Each CNC Machine and its Components (collectively, “CNC Products”) are warranted by Manufacturer against defects in material and workmanship.

This warranty is provided only to the final purchaser and end-user of the CNC Machine (a “Customer”). The period of this limited warranty is eighteen (18) months on all production grade AutoMate CNC lathes and mills. This excludes the four AutoMate CNC light-duty production CNC lathes and mills: FH30B Lathe, LT1440 Lathe, MX200 Mill, and the MX300P PRO Mill, which have a one (1) year period of warranty coverage. The warranty period commences on the date the CNC Machine is delivered to the Customer’s facility. Customer may purchase an extension of the warranty period from DMT or an authorized DMT distributor (a “Warranty Extension”).

Mechanical and Non-CNC Control Related Electrical Components

AutoMate CNC's customer contact and support structure has been tested in over 25 years of real-world experience.  AutoMate CNC's customer support relies on an internet-based sales and support process. This contact includes efficient text and image transfer, as well as Skype ® and telephone support. This process enables AutoMate CNC to provide high value equipment and services at reasonable prices. AutoMate CNC staff will diagnose problems over the phone and help owners determine a course of action for the owner. It is helpful when the owner has the ability and experience in mechanical and electrical repair, in addition to knowing how to operate safely while working with machine tools. Any labor cost necessary to repair a machine or part failure due to normal wear, workmanship, or through normal use during the warranty period is the responsibility of the machine owner. AutoMate CNC has staff technicians available for on-site visits and also has set up on-site service agreements with qualified repair technicians around the USA.

AutoMate CNC will repair or replace, at the discretion of the Manufacturer, parts or components that are defective in material or workmanship. Ground shipping rates to ship the replacement part or component will be paid by AutoMate CNC. Any extra expense associated with an expedited form of shipping that is requested by the owner will be the responsibility of the owner. Materials alleged to be defective shall be returned to AutoMate CNC, at the request of AutoMate CNC, freight prepaid.

Manufacturer’s sole liability, and customer’s exclusive remedy, with respect to any and all AutoMate CNC products shall be limited to repairing or replacing, at the discretion of manufacturer, the defective DetroitMT product under this warranty.

Disclaimer of Warranty

This warranty is manufacturer’s sole and exclusive warranty and is in lieu of all other warranties of whatever kind or nature, express or implied, written or oral, including, but not limited to, any implied warranty of merchantability, implied warranty of fitness for a particular purpose, or other warranty of quality or performance or non-infringement. All such other warranties of whatever kind are hereby disclaimed by manufacturer and waived by customer.

Limits and Exclusions of Warranty

Components subject to wear during normal use and over time, including, but not limited to, paint, window/shield finish and condition, light bulbs, seals, chip removal system, etc., are excluded from this warranty. Manufacturer’s specified maintenance

procedures must be adhered to and recorded in order to maintain this warranty. This warranty is void if Manufacturer determines that (i) any AutoMate CNC Product was subjected to mishandling, misuse, abuse, neglect, accident, improper installation, improper maintenance, improper storage, or improper operation or application, (ii) any AutoMate CNC Product was improperly repaired or serviced by Customer, an unauthorized service technician, or other unauthorized person, (iii) Customer or any person makes or attempts to make any modification to any AutoMate CNC Product without the prior written authorization of Manufacturer, and/or (iv) any AutoMate CNC Product was used for any non- intended use. This warranty does not cover damage or defect due to an external influence or matters beyond the reasonable control of Manufacturer, including, but not limited to, electrical current conditions, theft, vandalism, fire, weather condition (such as rain, flood, wind, lightning, or earthquake), or acts of war or terrorism.

Without limiting the generality of any of the exclusions or limitations described in this Certificate, this warranty does not include any warranty that any AutoMate CNC Product will meet any person’s production specifications or other requirements or that operation of any AutoMate CNC Product will be uninterrupted or error-free. Manufacturer assumes no responsibility with respect to the use of any AutoMate CNC Product by any person, and Manufacturer shall not incur any liability to any person for any failure in design, production, operation, performance or otherwise of any AutoMate CNC Product other than repair or replacement of same as set forth in this warranty above.

Limitation of Liability and Damages

Manufacturer will not be liable to customer or any other person for any compensatory, incidental, consequential, punitive, special, or other damage or claim, whether in an action in contract, tort, or other legal or equitable theory, arising out of or related to any AutoMate CNC product, other products or services provided by manufacturer or an authorized distributor, service technician or other authorized representative of manufacturer(collectively, “authorized representative”), or the failure of parts or products made by using any AutoMate CNC product, even if manufacturer or any authorized representative hasb een advised of the possibility of such damages, which damage or claim includes, but isn ot limited to, loss of profits, lost data, lost products, loss of revenue, loss of use, cost ofd owntime, business good will, any damage to equipment, premises or other property of any person, and any damage that may be caused by a malfunction of any AutoMate CNC product. All such damages and claims are disclaimed by manufacturer and waived by customer. Manufacturer’s sole liability, and customer’s exclusive remedy, for damage sand claims for any cause whatsoever shall be limited to repair or replacement, at the discretion of manufacturer, of the defective AutoMate CNC product as provided in this warranty.

Customer has accepted the limitations and restrictions set forth in this Certificate, including, but not limited to, the restriction on its right to recover damages, as part of its bargain with Manufacturer or its Authorized Representative. Customer realizes and acknowledges that the price of the AutoMate CNC Products would be higher if Manufacturer were required to be responsible for damages and claims beyond the scope of this warranty.

Entire Agreement

This Certificate supersedes any and all other agreements, promises, representations or warranties, either oral or in writing, between the parties or by Manufacturer with respect to subject matter of this Certificate, and contains all of the covenants and agreements between the parties or by Manufacturer with respect to such subject matter.

Manufacturer hereby expressly rejects any other agreements, promises, and representations or warranties, either oral or in writing, that are in addition to or inconsistent with any term or condition of this Certificate. No term or condition set forth in this Certificate may be modified or amended unless by a written agreement signed by both Manufacturer and Customer. Notwithstanding the foregoing, Manufacturer will honor a Warranty Extension only to the extent that it extends the applicable warranty period.

Transferability

This warranty is transferable from the original Customer to another party if the CNC Machine is sold via private sale before the end of the warranty period, provided that written notice thereof is provided to Manufacturer and this warranty is not void at the time of transfer. The transferee of this warranty will be subject to all terms and conditions of this Certificate.

Miscellaneous

This warranty shall be governed by the laws of the State of Michigan without application of rules on conflicts of laws. Any and all disputes arising from this warranty shall be resolved in a court of competent jurisdiction located in Washtenaw County, Michigan. Any term or provision of this Certificate that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

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