Standard Modern™ Equipment Limited Warranty

RACER MACHINERY INTERNATIONAL INC. (the “Company”) warrants that for a period of twenty-four (24) months from the date that it is shipped, provided it is not used at a greater frequency than one eight (8) hour period per day, a Standard Modern™ Engine Lathe (“Lathe”) will be free from any failure to perform in accordance with its published specifications due to faulty or defective materials or workmanship. The Company is not responsible for any loss or damage which is caused by defective workmanship or defective material supplied by anyone other than the Company. This warranty does not include failures resulting from inadequate maintenance, modification, improper usage, wear and tear, abuse or accident arising from the ordinary operation of the Lathe.

Notwithstanding the above warranty, the Company’s warranty of all items incorporated into the Lathe but not manufactured by the Company is limited to the lesser of (a) the warranty or guarantee of the other manufacturer, or (b) the warranty of the Company as set forth herein. No other warranty or agreement shall have the effect of extending the warranty beyond the period noted above.

During the warranty period, the Company will provide necessary parts to bring the operation of the Lathe into compliance with its published specifications or in its sole discretion, replace the Lathe. This warranty does not include labour for the installation of replacement parts. All parts removed from the Lathe for repair purposes under this warranty become the property of the Company. Provision of a replacement Lathe or parts shall not extend the term of this warranty or create a new warranty period.

In no event is the Company responsible for payment of any claim for labour or other expenditures without the signed authorization of an official of the Company.

Subject to applicable legislative provisions, this warranty is in lieu of all other express or implied warranties, including any implied warranty of merchantability or fitness for a particular purpose, and no person is authorized to give any further representation or warranty or create or assume any further obligation on behalf of the Company with respect to the Lathe.

Repair or replacement of the Lathe shall be the sole remedy of the purchaser, and the Company shall not be liable for any direct or indirect, incidental or consequential loss or damage suffered by the purchaser by reason of any defect in workmanship or manufacture of the Lathe or the inability to use the Lathe.

The benefits to the purchaser included in this warranty will be void unless the attached Warranty Registration Card hereto is completed and returned to RACER MACHINERY INTERNATIONAL INC. within 30 days of receipt of the Lathe.