WARRANTY POLICY

WARRANTY BASICS

Demag MHPS Corporation, (MHPS) warrants that the goods sold by MHPS shall be free from defects in material and workmanship for a time period dependent on the type of product as ordered and listed in the following table:

Crane, Crane Kit, Wire Rope Hoists, Chain Hoists, KBK Products, Drives and Demag Brand Radio Controls / 2 years from date of delivery or 4000 hours of operation, whichever comes first
Parts / 1 year or 2000 hours of operation from date of delivery, whichever comes first

Delays between shipment and placing the equipment in operation will not extend the warranty period unless authorized by MHPSin writing at the time of shipment.

All parts replaced, as set forth above shall become the property ofMHPS, and MHPS may request their return.

Service labor, travel and other site expenses will only be coveredfor cranes, crane kits and wire rope hoists and only for 1 yearfrom the start of the warranty period per the "Reimbursement / Credit Policy for Warranty Service Labor, Travel and Other Site Expenses" section of this document. Service labor, travel and other site expenses are not covered for parts orders.

Such warranty obligations are contingent upon the Buyer giving notice and satisfactory proof of any defect concerning quantity or quality of the goods sold to MHPS in writing within 10 days after delivery, or if the defect was latent, within 10 calendar days after discovery of the defect.

It is hereby expressly agreed that the time periods referred to in the previous sentence shall be deemed reasonable periods for the discovery and notification of such claims.

Buyer shall, at its expense, furnish MHPS with proof of the defect satisfactory to MHPS.

Instructions on contacting MHPS in Warrantymatters (to file a claim, and obtaining reimbursement / credit for cost incurred) are addressed in the section entitled “Submitting Warranty Claims”.

Except as otherwise provided in this warranty, no warranty shall apply with respect to any performance specification or performance guarantee (if there be any) once Buyer is deemed to have accepted goods.

Anything to the contrary herein not withstanding, MHPS’s warranty with respect to goods for parts not manufactured by MHPS or its affiliates shall further be limited to the warranty MHPS receives from the supplier.

THIS WARRANTY IS EXPRESSLY IN LIEU OF AND EXCLUDES ALL OTHER WARRANTIES, EXPRESS OR IMPLIED (INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) AND ALL OTHER OBLIGATIONS OR LIABILITY ON MHPS’S PART. THERE ARE NO WARRANTIES THAT EXTEND BEYOND THE LIMITED WARRANTY CONTAINED HEREIN. MHPS NEITHER ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR MHPS ANY OTHER LIABILITY IN CONNECTION WITH THE SALE OF MHPS’S PRODUCTS. THIS WARRANTY SHALL NOT APPLY TO ANY OF MHPS’S PRODUCTS THEREOF WHICH HAS BEEN SUBJECT TO MISUSE, ALTERATION, ABUSE, NEGLIGENCE, ACCIDENT, ACTS OF GOD OR SABOTAGE. NO ACTION BY ANY PARTY SHALL OPERATE TO EXTEND OR REVIVE THIS LIMITED WARRANTY WITHOUT THE PRIOR WRITTEN CONSENT OF SELLER. IN THE EVENT THAT ANY PROVISION OF THIS WARRANTY IS HELD UNENFORCEABLE FOR ANY REASON, THE REMAINING PROVISIONS SHALL REMAIN IN FULL FORCE AND EFFECT.

IN THE EVENT OF ANY BREACH OF THE WARRANTY BY MHPS, MHPS’S LIABILITY SHALL BE LIMITED EXCLUSIVELY TO THE REMEDIES (AT MHPS’S SOLE OPTION) OF REPAIR OR REPLACEMENT OF ANY DEFECTIVE PRODUCT COVERED BY THE WARRANTY. IN NO EVENT SHALL MHPS, OR ANY SUBSIDIARY OR DIVISION THEREOF BE LIABLE FOR INCIDENTAL, INDIRECT, CONSEQUENTIAL OR OTHER DAMAGES OR LOSSES RESULTING FROM A BREACH OF WARRANTY INCLUDING, WITHOUT LIMITATION, LABOR COSTS, LOSS OF USE OF OTHER EQUIPMENT, THIRD PARTY REPAIRS, LOST PROFITS, LOST TIME, TOWING OR HAULING OF EQUIPMENT, RENTAL COSTS, PERSONAL INJURY, EMOTIONAL OR MENTAL DISTRESS, IMPROPER PERFORMANCE OR WORK, PENALTIES OF ANY KIND, LOSS OF SERVICE OF PERSONNEL, OR FAILURE OF EQUIPMENT TO COMPLY WITH ANY FEDERAL, STATE OR LOCAL LAWS.

MHPS’s agents, dealers’ agents, distributors’ agents, or OEMs’ agents may have made oral statements about the machinery and equipment described in a sales transaction. Such statements do not constitute warranties, and buyer agrees not to rely on such statements. Buyer also agrees that such statements are not part of a warranty claim. MHPS and buyer agree that any claim made by buyer, inconsistent with warranty remedies herein, and in particular consequential and incidental damages, are expressly excluded from warranty coverage.

MHPS and buyer agree that buyer has been put on notice that dealer or distributor is not MHPS’s agent in any respect or for any reason. MHPS and buyer also agree that buyer has been put on notice that dealer, distributor, or OEM is not authorized to incur any obligations or to make any representations or warranties on MHPS’s behalf other than those specifically set forth in the warranty MHPS issues with such specific machinery and equipment covered under this warranty policy.

This warranty agreement constitutes a final written expression of all the terms and conditions of this warranty and is a complete and exclusive statement of those terms. Failure to comply with the stipulations of this Warranty Policy shall be deemed a waiver by buyer of all claims related to the occurrence of a particular defect.

ITEMS NOT COVERED AS PART OF WARRANTY

1) Normal wear of any part is not covered by warranty.

  • Specifically excluded from warranty coverage are this following list of normal wear items: brake linings, wire ropes, wire rope guides,sheaves, sprockets, chains, and chain guides.
  • Replacement fuses are not covered unless it is clearly the result of a Demag equipment deficiency.

2) Damage due to abuse is not covered by warranty.

  • Abuse from overloading beyond the rated capacity of equipment, and operating beyond the duty classification as specified in the original order are not covered.
  • Abuse from side-pulling of load, excessive jogging, damage to pushbuttons and operator control interfaces from impact, environmental exposure not specified in original order, lack of proper maintenance, lack of lubrication and use of improper lubricants is not covered.

3) Damage from fire, accidents, acts of God or nature, improper storage, and/or improper handling of the equipment is notcovered.

4) Damage from shipping is not covered by warranty.

  • Shipping damage is excluded from warranty. It is the buyer’s responsibility to verify equipment condition upon receipt and pursue damage claims with the shipping carrier.

5) This warranty shall be void and MHPS shall not be responsible for any defects if Buyer has carried out modifications or reconditioning
work on the goods without MHPS’s prior written consent.

SUBMITTING WARRANTY CLAIMS:

End users of Demag equipment, as well as MHPS’s distribution partners on behalf of their clients, can submit warranty claims.

A warranty claim can only be established and validated by the designated warranty function at the headquarter office in Solon, OH.

To obtain claim forms, please download from Demag Shop website or contact a Customer Service Representative in MHPS’s Solon, Ohio, office.

Claim forms can be e-mailed, faxed or sent by postal carrier to one of the addresses below:

E-mail:

Fax: (800) 945-7278

Mail Claims to: Demag Material Handling and Port Solutions Corporation

29201 Aurora Road

Solon, Ohio44139– 1895

Attn: Warranty Claim Enclosed

This information must be submitted to the designated Warranty function using the “Warranty/ Rework Request Form”.

The proper "Warranty/Rework Request Form" to submit is Form FRM-SD-SV-00005 Warranty Claim form.doc.

All mandatory information asked for on the form must be provided to be compliant with MHPS policy. Description of the Problem, Cause of the Problem and Proposed Corrective Action must be filled in.

A warranty claim will not be considered authorized until all required information has been received by the warranty functionand it passes a review for compliance withMHPS policy, technical merit and reasonable labor estimate. After passing this review, then an authorization number will be assigned and communicated to the claimant.

Once a warranty authorization number has been assigned, it must be used as a reference on all further communication in that matter including on any related invoice for Service Labor.

A new authorization number will be assigned for each new warranty claim as it is received.

WARRANTY CLAIMS FOR CHAIN HOISTS:

All warranty claims for chain hoists must be directed to the designated Warranty function at the Headquarter Office in Solon, OH.

Service labor, travel and other site expenses are not provided for chain hoists orders unless prior authorization is given by MHPS.

MHPS reserves the option to have a chain hoist fixed in place or returned to the nearest WarrantyServiceCenter.

In this case, transportation of Chain Hoist(s) to the designated Warranty Service Center is the responsibility of the claimant. MHPS covers the reasonable shipping cost back to the claimant from the nearest Warranty Service Center.

WARRANTY CLAIMS REQUIRING REPLACEMENT PARTS:

All requests for warranty that require replacement parts must be directed to the designated Warranty function at the Headquarter Office in Solon, OH.

Warranty Replacement Parts will be shipped once all information requirements for the warranty claim process have been met.

Outbound freight cost for UPS Ground and standard LTL shipments to a Dealer, Distributor, OEM, or end user will be pre-paid by MHPS for any partsordered as Warranty Replacement Parts. Claimants may specify expedited shipping of replacement parts at claimant's expense.

WARRANTY CLAIMS REQUIRING REPLACEMENT PARTS (continued):

The Warranty Coordinator and/or CSR may issue forwarding instructions to the claimant if it is deemed necessary to inspect an allegedly defective part for further evaluation, or if it appears that a part can be rebuilt and reused.

Returned parts should be shipped freight prepaid by the sender.

If it is determined that the material is not covered under warranty or other aspects of the warranty haven’t been met, a debit will be issued against the claimant's account for the replacement parts and shipping charges.

MHPS reserves the right to replace, after start-up, any defective part(s) with reconditioned parts.

Reconditioned parts, as well as new replacement parts will carry the balance of the original equipment warranty period. This policy will apply throughout the entire warranty period.

WARRANTY CLAIMS REQUIRING SERVICE LABOR

If claimant is authorized by MHPSto conduct service work:

All requests for warranty service labor must be directed to the designated Warranty function at the Headquarter Office in Cleveland, OH. MHPS will not accept the cost for warranty service labor obtained through processes other than a warranty claim.

An estimate for performing said work shall be made on the Warranty/Rework Request Form.

Proposed corrective actions and labor estimates shall be reviewed by the MHPS Warranty Coordinator and/or CSR for technical merit, compliance with the MHPS warranty policy, and reasonable and customary amount of labor hours.

An issued warranty authorization number will serve as a purchase order for the end user, Dealer, Distributor or OEM with service capabilities to initiate the work.

It is imperative that the service provider stay in contact with the respective MHPS warranty function if the claim issue cannot be resolved within the originally estimated and authorized cost.

Service labor associated with a warranty claim shall be reimbursed according to the Warranty Reimbursement / Credit Guidelines section.

Within 90 days of completion of the work, the service provider is required to submit to the designated Warranty function a detailed invoice for field labor and expenses.

If the claimant is an end user, Dealer, Distributor, or OEM without service capabilities:

MHPS will contact an authorized service provider, and will coordinate the warranty work to be performed according to the Warranty Reimbursement / Credit Guidelines section.

A warranty authorization number will then be issued by MHPS to the service provider selected by MHPS to carry out the service work. Description of the Problem, Cause of the Problem and Proposed Corrective Action will then be reported to MHPS. If findings dictate that the warranty claim is rejected, MHPS will debit the claimant's account for parts, labor, and freight expenses, or any other cost incurred.

REIMBURSEMENT/CREDIT POLICY FOR WARRANTY SERVICE LABOR, TRAVEL AND OTHER SITE EXPENSES

MHPS will reimburse the on site costs of warranty repairs including labor, travel time, travel expenses, and rental of access equipment, for a period of1 year after shipment for cranes and wire rope hoists per the following schedule:

  1. MHPS will reimburse / credit directly contracted service labor up to a maximum of $ 70.00 USD / hr. or $ 75.00 cdn / hr. Reimbursements for directly contracted labor are contingent upon a detailed breakdown of dates, hours, rates, and actual work performed.
  2. MHPS will reimburse / credit third party service labor at cost, up to a maximum of $ 70.00 USD / hr. or $ 75.00 cdn / hr. Reimbursements for subcontracted labor require submittal of a copy of the invoice showing a detailed breakdown of dates, hours, rates, and actual work performed.
  3. Warranty work will be performed during regular working hours, Monday through Friday per the rates above. General Overtime Charges and Surcharges for Weekend / Holiday work will only be accepted after specific authorization by DCC before commencement of work.
  4. MHPS will reimburse / credit travel time at $ 55.00 USD / hr or $ 59.00 cdn / hr.
  5. MHPS will reimburse / credit travel mileage at 56 cents USD / mile or 54 cents cdn/ /km.
  6. MHPS will reimburse other travel expenses at cost. Reimbursements / credits for other expenses require submittal of copies of invoices showing reasonable expense details.
  7. MHPS will reimburse / credit expenses for lift equipment and any other equipment rentals at cost. Reimbursements / credits for other expenses require submittal of copies of invoices showing reasonable expense details.
  8. Detailed invoices are required that show labor hours, travel time, travel mileage, travel expenses, lift equipment rental, and any other equipment rental as separate items.

File Name: MPP-SD-SV-00003 WARRANTY POLICY.doc / Version: 2 Release:
Creation Date: 03/21/2014 / Original Author: Andy Rasch
Last Saved on: / Last changed by: Andy Rasch on 04/30/2015
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