LIMITED WARRANTY

1- DEFINITIONS & INTERPRETATION:

1.1 Unless such meaning is inconsistent with the context, the following terms shall, throughout this LIMITED WARRANTY, have the meanings respectively ascribed to them, namely:

1.1.1 “AUTHORIZED SERVICE PERSONNEL” means the staff authorized by CANAWELD, who have been sufficiently trained to repair the EQUIPMENT(S), and are appointed and/or accredited as such by CANAWELD from time to time.

1.1.2 “AUTHORIZED SERVICE CENTRE” means the place of repair as appointed and/or approved by CANAWELD from time to time.

1.1.3 “CANAWELD” means Canaweld Inc (Business no. 835754847);

1.1.4 “CANAWELD SERVICE REPAIR CENTER” means the place of repair operated by CANAWELD.

1.1.5 “COMMENCEMENT DATE” means (i) the date of purchase of the EQUIPMENT for END USERS, (ii) 3 months from the date of purchase of the EQUPIMENT from CANAWELD by a CANADIAN DISTRIBUTOR or US DISTRIBUTOR or from the date of purchase of the EQUIPMENT by a customer from such CANADIAN DISTRIBUTOR or US DISTRIBUTOR whichever occurs first; or (iii) 5 months from the date of purchase of the EQUPIMENT from CANAWELD by an INTERNATIONAL DISTRIBUTOR or from the date of purchase of the EQUIPMENT by a customer from such INTERNATIONAL DISTRIBUTOR whichever occurs first;

1.1.6 “CANADIAN DISTRIBUTOR” means third parties located within the Canadian jurisdiction who are engaged with CANAWELD in a distribution agreement for the purpose of selling/distributing the EQUIPMENT.

1.1.7 “END USER” means customers who purchase the EQUIPMENT directly from CANAWELD.

1.1.8 “EQUIPMENT” means the equipment of CANAWELD which form part of the subject matter of this LIMITED WARRANTY.

1.1.9 “INTERNATIONAL DISTRIUTOR” means third parties located within any jurisdiction other than US or Canada who are engaged with CANAWELD in a distribution agreement for the purpose of selling/distributing the EQIPMENT.

1.1.10 “LIMITED WARRANTY” means this agreement and any annexures, schedules and/or amendments thereto.

1.1.11 “MANUFACTURING DATE” means the date of manufacturing the EQUIPMENT as per CANAWELD’s records.

1.1.12 “SUFFICIENT PROOF OF PURCHASE” means an official invoice or receipt issued by CANAWELD.

1.1.13 “WARRANTY PERIOD” is the period in which this LIMITED WARRANTY applies, and which differs depending upon the type of EQUIPMENT specified in clause 2 below.

1.1.14 “WARRANTY REGISTRATION” the registration of the EQUIPMENT with CANAWELD’s warranty program in accordance with the instructions available on CANAWELD’s website and annexed to this LIMITED WARRANTY (Annex 1 – Warranty Registration Instructions).

1.1.15 “US DISTRIBUTOR”: means third parties located within the US jurisdiction who are engaged with CANAWELD in a distribution agreement for the purpose of selling/distributing the EQUIPMENT.

1.2 In this LIMITED WARRANTY unless the context otherwise requires:

1.2.1 The singular shall import and include the plural and vice versa;

1.2.2 Words indicating natural persons shall import and include juristic persons;

1.2.3 Clause headings are for reference only and do not affect interpretation;

1.2.4 Where any number of days is prescribed in this LIMITED WARRANTY, they shall be
calculated exclusive of the first day and inclusive of the last day unless the last day falls on a Saturday, Sunday or public holiday. On such day the last day shall be the next succeeding day which is not a Saturday, Sunday, or statutory holiday.

 2-WARRANTY PERIOD:

2.1 The LIMITED WARRANTY period starts from the COMMENCEMENT DATE and will be valid for the following periods:

2.1.1 7 Years parts, 4 years labor(Conditions Apply):

• Main power Transformer and Inductance on all Three Phases INVERTER power supplies (having 60% DT or more in maximum Current.)

2.1.2 5 Years parts, 4 years labor(Conditions Apply):

• Main power Transformer and Inductance on all INVERTER power supplies (having less than 60% DT or more in maximum Current.)

2.1.3 4 Years Parts and Labor(Conditions Apply):

• All CANAWELD welding machines power sources, Wire Feeders and Plasma arc Cutting power sources.

2.1.4 1 Year Parts and Labor, Unless Specified:

• All TIG, Plasma torches/MIG guns, spool guns, Push Pull guns, (Does not include expendable parts and guns/torches listed under 90- and 30-day warranties);
• All water coolers (internal or external models);
• Welding and cutting accessories including wire feed modules, undercarriages, field-installed options that are sold separately, unattached options, (Does not include expendable parts listed under 90- and 30-day warranties);
• All foot pedals.
• Water cooling system
• Welding carts.

2.1.5 90 Days (Parts, but No labor):

• All Helmet Lenses; and
• Gas Regulators, adapters, and other accessories.

2.1.6 30 Days (Parts, but No labor):

• All cable assemblies of gun, spool guns and push pull guns and Plasma or TIG torches.
• All stick electrode holders (Does not include consumable items listed under 30-day warranty.); and all consumable items that may be used with the environmental systems described above. This includes hoses, filters, belts, and hose adapters.

2.1.7 Miscellaneous:

• For all products manufactured by companies other than Canaweld Inc. the warranty is based on that specific manufacturer’s policy.

2.2 It is hereby brought to the attention of the END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR and INTERNATIONAL DISTRIBUTOR that all EQUIPMENT(S), which are subject to this LIMITED WARRANTY require WARRANTY REGISTARION (i.e. warranty be activated on CANAWELD’S online portal). Failure to register the EQUIPMENT within 40 days from the purchase date will result in the commencement of this LIMITED WARRANTY from the MANUFACTURING DATE unless a SUFFICIENT PROOF OF PURCHASE date was submitted to CANAWELD.

3- Warranty Coverage

3.1 Within the warranty periods listed above, CANAWELD will repair or replace any warranted parts or components that fail due to defects in material or workmanship and that may arise from the normal operation and usage of the EQUIPMENT(S), as prescribed in
the user manual of each respective EQUIPMENT(S) and in the general safety instructions annexed to this LIMITED WARRANTY (Annex 2 – General Safety Instructions). The END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR and INTERNATIONAL DISTRIBUTOR specifically acknowledges that no warranty cover shall exist in instances where the EQUIPMENT(S) is stored, operated and/or utilised out of such specification.

3.2 Within thirty (30) days of the defect or failure CANAWELD must be notified in writing, at which time CANAWELD will provide instructions on the warranty claim procedures to be followed. The period shall be decreased to one (1) week in the case of a missing part or a manufacturer defect. Notifications submitted as online warranty claims must provide detailed descriptions of the fault and troubleshooting steps taken to diagnose failed parts. Warranty claims that lack the required information as defined in the CANAWELD Service Operation Guide may be denied by CANAWELD.

3.3 Repairs and replacements of parts shall be at the discretion of the AUTHORIZED
SERVICE PERSONNEL only. CANAWELD’S obligation under this LIMITED WARRANTY shall be limited to (i) repair, (ii) providing replacement of defective parts, (iii) upon CANAWELD’S prior approval in writing, the pre-approved cost of repair or replacement at an AUTHORISED SERVICE CENTRE; or (4) payment of or credit for the purchase price (less reasonable depreciation based upon use).

3.4 Any repairs to the EQUIPMENT(S) and/or the replacement of any spare part and/or replacement of any machine, shall only be warranted for the remaining WARRANTY PERIOD.

3.5 Examination and repair of the EQUIPMENT(S) shall only be carried out at CANAWELD SERVICE REPAIR CENTER or an AUTHORISED SERVICE CENTRE, failing of which shall result in voiding this LIMITED WARRANTY.

3.6 Notwithstanding what is stated in section 3.4 above, INTERNATIONAL DISTRIBUTORS may carry out repairs to their customers at their in-house service/repair centers; however, in such a case the INTERNATION DISTRIBUTOR shall consult CANAWELD SERVICE REPAIR CENTER and obtain their prior approval on any repair work that will be undertaken and (ii) the WARRANTY PERIOD shall be reduced to a maximum of 1 year and will cover only the cost of part (ie. no labor cost will be covered). Customers of INTERNATIONAL DISTRIBUTOR may choose to send their EQUIPMENT to CANAWELD SERVICE REPAIR CENTER to benefit from the full WARRANTY PERIOD referred to in clause 2 above.

3.7 At all times the transportation charges from and to the CANAWELD SERVICE REPAIR CENTER or an AUTHORISED SERVICE CENTRE shall be solely borne by the party requesting the repair (i.e., The END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR, INTERNATIONAL DISTRIBUTOR, or their customers).

4-Exclusions:

The scope of this LIMITED WARRANTY shall not extend and thus CANAWELD shall not be liable to the following:

4.1 The power supplies have been operated with other brands of torch/gun, welding connectors, cooling units, related consumables, and other accessories.

4.2 External parts of the machines (For example, switches, knobs, Potentiometers, welding/gas connections on machine panels, enclosure, LCD and displays).

4.3 The replacement of any expendable part that is required due to normal wear. (Such as, torch/gun contact tips, Nozzle, head, gas diffuser, trigger, liner.), or parts that fail due to normal wear.

4.4 The defects caused by improper packing by end-user, in case of returning the product.

4.5 EQUIPMENT that has been modified by any party other than CANAWELD, or equipment that has been improperly installed, improperly operated, or misused based upon industry standards, or equipment which has not had reasonable and necessary maintenance, or equipment which has been used for operation outside of the specifications for the EQUIPMENT.

4.6 Damage caused by not carrying out the recommended appliance maintenance.

4.7 Failures resulting from attachments, accessory items and parts not sold or approved by CANAWELD.

4.8 Failures resulting from delay in delivering the EQUIPMENT to CANAWELD SERVICE REPAIR CENTER or an AUTHORISED SERVICE CENTRE after being notified of a potential problem with the EQUIPMENT.

4.9 Damage resulting from normal wear and tear; and repairs or replacement of any parts reasonably considered to be consumables, including but not limited to the following TIG torch components: (i) collet and collet body, (ii) gas nozzles, (iii) gas cups, (iv) insulators, (v) back cups, and (vi) gas lenses, and to the following MIG/MAG torch components (vii) gas nozzles, (viii) tips, (ix) gas lenses, (x) liners, and (xi) drive wheels;

4.10 Failures caused by circumstances outside of CANAWELD’s control, such as damage from external sources, transit, weather, electrical outages, or power surges; and

4.11 If the EQUIPMENT has been subjected to improper installation, improper care or abnormal operation this LIMITED WARRANTY shall be void.

4.12 While operating a CANAWELD cooling unit, it
is highly advised to use the CANAWELD Antifreeze Fluid MTP11, an
antifreeze product that is designed specifically to protect the EQUIPMENT from freezing thus
avoiding its damages. This LIMITED WARRANTY shall not cover damages caused to the EQUIPMENT due
to the lack of use of Antifreeze Fluid or due to the
use of an Antifreeze Fluid other than CANAWELD Antifreeze Fluid MTP11.

5-REPRESENTATION AND WARRANTIES

5.1 As from the COMMENCEMENT DATE hereof, CANAWELD warrants that the EQUIPMENT(S) supplied in terms of the agreement shall be of CANAWELD’S standard quality and are reasonably suitable for the purposes for which they are generally intended. In the event that defects are discovered in the EQUIPMENT(S) supplied (that were present at the COMMENCEMENT DATE), CANAWELD shall within its own discretion either remedy the defect or supply defect free replacement EQUIPMENT(S).

5.2   CANAWELD makes no other warranty of any kind, express or implied, including without
limitation, any warranty of merchantability, or non-infringement. CANAWELD specifically makes no warranties as to any services or as to compliance with laws, regulations, standards and/or conventions including any related to the environment or to the packaging, labelling and/or
transport of hazardous EQUIPMENT(S). No warranty shall apply to shipping damage, damage
caused by improper installation, EQUIPMENT(S) that have been modified or altered in any
way, damage caused by corrosion, abrasion, or severe temperatures, or EQUIPMENT(S) that
have been subjected to improper maintenance, abuse, misuse, abnormal usage, storage,
insect, pest and/or rodent damage, or accident.

5.3 THE END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR and INTERNATIONAL DISTRIBUTOR WARRANTS THAT HE/SHE SHALL FULLY COMPLY WITH ALLLABEL DIRECTIONS FOR THE HANDLING, STORAGE, POSSESSION OR USE OF THE EQUIPMENT(S) HEREUNDER AND THE END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR and INTERNATIONAL DISTRIBUTOR AGREES THAT HE/SHE SHALL INDEMNIFY AND HOLD CANAWLED HARMLESS FROM ALL CLAIMS (INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES) OF PERSONAL INJURY OR PROPERTY DAMAGE RESULTING FROM ANY NEGLIGENCE, RECKLESSNESS OR WILFUL MISCONDUCT ON THE PART OF THE CUSTOMER OR FROM ANY FAILURE OF THE END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR and INTERNATIONAL DISTRIBUTOR TO COMPLY WITH THE TERMS OF THIS LIMITED WARRANTY.

5.4 NO LIABILITY FOR DAMAGES WILL BE ATTRIBUTED TO CANAWELD RESULTING FROM UNSUITABLE OR IMPROPER USE, IMPROPER ASSEMBLY AND IMPROPER COMMISSIONING OR HANDLING BY THE END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR and INTERNATIONAL DISTRIBUTOR OR BY THIRD PARTIES, NORMAL WEAR AND TEAR OR PREMATURE EROSION DUE TO THE NATURE OF THE MATERIAL OR THE NATURE OF ITS USE, IMPROPER OR NEGLIGENT HANDLING OR STORAGE, IMPROPER MAINTENANCE, DEFECTIVE CONSTRUCTION WORKS, UNSUITABLE BUILDING GROUND, EXPOSURE TO THE ELEMENTS, DAMAGE CAUSED BY INSECTS OR SIMILAR PESTS, CHEMICAL, ELECTRO-CHEMICAL OR ELECTRICAL INFLUENCES UNLESS CANAWELD IS RESPONSIBLE FOR SUCH INFLUENCES.

5.5 CANAWALED shall not be liable for any loss suffered which: in any manner relates to a loss of revenue, profits, opportunity or production, loss or denial of use of any equipment or facility, increased expense of operation, economic loss, loss of goodwill or reputation, delay, business interruption or the cost of repair to or replacement of equipment, facilities or goods and related third party services; or in any manner can be construed as indirect, incidental, special, punitive or consequential losses or damages.

5.6 The EQUIPMENT is intended for commercial and industrial users rained and experienced in the use and maintenance of welding and cutting equipment and are not intended for personal, family, or household purposes.

5.7 END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR, INTERNATIONAL DISTRIBUTOR, or their customers responsible for filter replacement, routine inspection, including wear inspection, and regular maintenance of weld fume extraction products. Use of environmental products without routine inspection, regular maintenance and filter replacement can cause premature failure, which is not covered under this LIMITED WARRANTY.

5.8 CANAWELD is not responsible for cable wear and consequential damage resulting from cable wear due to flexing and abrasion. END USER, CANADIAN DISTRIBUTOR, US DISTRIBUTOR, INTERNATIONAL DISTRIBUTOR or their customers are responsible for routine inspection of cables for possible wear and to remedy the issue prior to cable failure.

5.9 This LIMITED WARRANTY and the rights granted herein are non-transferrable.

6-MISCELLANEOUS

6.1 This LIMITED WARRANTY shall be governed by the laws of the province of Ontario,
and accordingly, any dispute concerning the validity, existence, interpretation, rectification,
breach or termination or any dispute arising out of this agreement, their avoidance,
interpretation, rectification, breach or termination, shall be determined according to the laws
of the province of Ontario.

6.2. Severability. If any part, term or provision of this LIMITED WARRANTY is held to be illegal, in conflict with any law or otherwise invalid, the remaining portion or portions shall be considered severable and not be affected by such determination, and the rights and obligations of the parties shall be construed and enforced as if the LIMITED WARRANTY did not contain the particular part, term or provisions held to be illegal or invalid.

6.3. For Purchasers in Quebec:

The parties acknowledge that they have required that the present document, as well as all documents, notices and legal proceedings entered, given or instituted pursuant or relating directly or indirectly hereto, be drawn up in English.

Les parties reconnaissent avoir convenu que la rédaction du présent document sera en anglais, ainsi que tous documents, avis et procédures judiciaires exécutés, donnés ou intentés à la suite de ou en rapport, directement ou indirectement, avec les procédures concernées.