Warranty

EXPRESS LIMITED WARRANTY FOR SUPPLIED PRODUCTS

REPLACEMENT PARTS FOR WAUKESHA ENGINES

Introduction

This warranty applies only to genuine Workhorse Power Inc. or for the enforcement of warranties for those products resold by WP (Workhorse Power).

1. Terms of Express Limited Warranty

Workhorse Power Inc.warrants that it will repair or replace, at its election and expense, any part installed on an engine, or product (hereinafter referred to as "products") provided by wp, which proves to have a defect in material or workmanship.

The coverage will be for 12 months beginning on the date of receipt of the material.

2. WP responsibilities under the Express Limited Warranty

wp shall be responsible for:

  1. The repair or replacement, at wp's election, of covered repair parts
  2. Labor time to repair or replace the defective part as established by the engine labor guide manual applicable to the specific engine.

3. Owners responsibilities under the Express Limited Warranty

Owner shall be responsible for:

  1. The operation and maintenance of the product within the guidelines established by the engine manufacturer;
  2. Making the products available to wp or wp's authorized representative for any warranty repair, during normal business hours;
  3. All additional costs incurred for premium or overtime labor, should owner request that repairs be made on a premium or overtime schedule;
  4. All costs incurred as the result of removal or reinstallation of the products as may be required to effect any warranted repairs;
  5. all administrative costs and expenses resulting from a warranted failure;
  6. Any costs of transportation, towing, repair facilities, or associated costs;
  7. All travel, mileage, and other related costs and expenses associated with repair under the terms of this warranty;
  8. All additional labor time in excess of engine labor guide for that specific engine;
  9. Loss of revenue, and loss or damage to real or personal property.

4. Limitation of wp's obligations

The obligations of wp under this express limited warranty shall be waived and voided, and wp shall not, thereafter, be responsible for:

  1. Any failure resulting from owner or operator abuse or neglect, including but not by way of limitation, any operation, installation, application, maintenance, or assembly practice not in accordance with guidelines or specifications established by the engine manufacturer; or
  2. Any failure resulting from unauthorized modifications or repairs to the product ; or
  3. Any failure resulting from overload, over speed, overheat, accident; or
  4. Failure of owner to promptly provide notice of a claimed defect; or
  5. Failure of repair parts for which wp did not receive proper documentation concerning the parts purchase date; or
  6. Failure to make products available to wp or its authorized representative; or
  7. Failure to supply documents such as drawings and specifications relating to the specific application of the parts; or
  8. Any failure of parts resulting from misapplication or improper repair procedure; or
  9. Any failure or damage resulting from the improper or extended storage of a part.

5. Applicability and Expiration

The warranty set out above is extended to the original purchaser of the wp supplied product. The Warranty and obligations of wp shall expire and be of no further effect upon the date of expiration of the applicable warranty period.

6. Warranty administration

This warranty is administered exclusively by Workhorse Power Inc. The invoice for the failed part must be provided to wp to determine whether the warranty is applicable.

The foregoing sets forth wp only obligations and owners' exclusive remedy for breach of warranty, whether such claims are based on breach of contract, tort (including negligence and strict liability), or other theories, and the foregoing is expressly in lieu of other warranties howsoever expressed, implied, or statutory, including without limitation, the implied warranties of merchant-ability and fitness.

Notwithstanding the preceding, in no event shall wp be liable for any direct, special incidental, or consequential damages (whether denominated in contract, tort strict liability, negligence, or other theories) arising out of this agreement or the use of any products provided under this agreement.

Any action arising hereunder or relating hereto, whether based on breach of contract, tort (including negligence and strict liability), or other theories must be commenced within two (2) months after the cause of action accrues or it shall be barred. All disputes and claims between the parties which may arise out of or in connection with this contract shall be settled by good faith negotiation between an executive level representative of each party. If the parties are nonetheless unable to reach agreement, such dispute shall be resolved by binding arbitration. The arbitration shall be administered by the American Arbitration Association according to its Rules of Commercial Arbitration then in force. The arbitration shall take place in Houston, Texas before one arbitrator. The language to be used shall be English. The Law of Texas shall govern. Judgement upon the award of the arbitrators may be entered in any court of competent jurisdiction.

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