CarBahn Protection Plan

LIMITED WARRANTY

I - Definitions

• Us/We – CarBahn Motorsports LLC
• You – The protection plan holder
• Business Use Vehicle: Privately or company owned vehicles that are used by a primary driver for the purpose of conducting business, including, but not limited to, non-delivery route/sales work and light duty route work. Examples of business use are vehicles used for pizza and floral delivery, Realtors and sales reps. Business Use Vehicles also includes vehicles used for business, fleet and multiple driver vehicle, vehicles used for delivery, service and repair work, trade work, mobile businesses, route delivery and vehicles used to pull commercial trailers.
• CarBahn Authorized Dealer – a dealer or installer that CarBahn designates, in its sole discretion, as an acceptable facility to provide repairs or services on CarBahn parts.
• Commercial Use Vehicles. Vehicles used in any other type of business not listed in the definition of “Business Use Vehicle”.
• Covered repair: A Mechanical Breakdown that qualifies for coverage under the Buyer Protection Plan.
• In-Service Date: The date the vehicle is first sold new.
• Mechanical Breakdown: The inability any covered part(s) to perform the function for which it is designed due to defects in material or workmanship of that covered part, solely because of its condition and not because of the action or inaction of any non-covered parts.
• Selling Dealer: The CarBahn dealer identified on the registration page of this Limited Warranty.
• Term of Coverage: The duration in years and/or miles Your Vehicle is covered under this Protection Plan is listed under Protection Plan Coverage (below).
• Vehicle: The new or used vehicle described on the registration page of this Protection Plan.

II - Protection Plan Coverage:

1. Phase 1 – is up to 4 years or 50k (80km) from in service date, whichever occurs first:
2. Phase 1 Covers everything in phase 2 plus it covers Injectors, Coils, Turbochargers, ECU, engine and power train sensors and oil leaks.
3. Specific exclusions are listed under protection plan exclusions.
4. Phase 2 – is a power train warranty and as such covers only failed components within the engine and drivetrain. Phase 2 starts following the expiration of Phase 1 and ends on the last date of the Protection Plan, as follows:
5. Engine (Gas or Diesel): all internally lubricated engine parts including: Pistons, piston rings, piston pins, crankshaft, main bearings, thrust bearings/shims, connecting rods, connecting rod bearings, camshaft, camshaft bearings, balance shaft, balance shaft bearings, timing chain or belt (the timing belt must be serviced according to manufacturer’s recommendations to qualify for coverage), timing gears, tensioners/guides, intake and exhaust valves, valve springs, valve guides, push rods, rocker arms, rocker arm shafts, Cam followers, lash adjusters, lifters; oil pump, oil pump housing, oil pump pressure relief valve and spring; water pump; mounts; harmonic balancer; crankshaft pulley; flex plate; valve covers; timing gear cover; oil pan; dipstick and tube; injectors and vacuum pump; air filter housing; intake and exhaust manifold; distributor shaft and housing; fuel pump; thermostatically controlled air intake; engine block and heads are covered if damaged by the Mechanical Breakdown of an internally lubricated moving part.
6. Transmission: All internal parts; damaged by the Mechanical Breakdown of an internally lubricated moving part. Automatic: torque converter, front pump, planetary gear set, clutches, clutch apply piston, internal sealing rings, input and output shafts, roller clutches, bands, check balls, band apply servo, drums, center support, governor assembly, vacuum modulator, valve body, stator and stator shaft, bushings, pressure regulator valve and bearings. DCT (Dual Clutch Transmission): Dual-clutch assembly. Manual: gears, shafts, bearings, bushings, counter shaft, synchronizers. synchronizer sleeves, detent balls, thrust washers, shift forks, levers, collars and springs. (Note: no coverage is afforded for clutch assembly: pressure plate; slave cylinder; flywheel; throw-out bearing; warn synchronizers or cables.)
7. Hybrid/Electric Vehicle: Hybrid Control Unit(s) including inverter; stator and rotor; battery sensors; cooling fan; cooling duct(s); high voltage harness and junction box; electric drive motor(s); drive battery pack. (The drive battery pack has suffered a Mechanical Breakdown only if it retains less than 70% of its original charge-holding capacity. To determine if a Mechanical Breakdown of the drive battery pack exists, the CarBahn will require Your Vehicle to undergo an extended charge capacity test as prescribed by the manufacturer of Your Vehicle. If the drive battery pack does not qualify as a Mechanical Breakdown under the terms of this Protection Plan, the cost incurred for disassembly and/or diagnostic charge will be Your responsibility and expense. The drive battery pack may be repaired replaced with a rebuilt unit, replaced with an aftermarket unit, or replaced with a new unit at the sole discretion of the CarBahn.)
8. Turbo/Supercharger: All internal parts; housing is covered if damaged by the Mechanical Breakdown of an internally lubricated moving part.
9. Transfer Case (AWD): All internal parts; transfer case is covered if damaged by Mechanical Breakdown of an internally lubricated moving part.
10. Drive Axle(s): All internal parts; “U” Joints; propeller shafts Drive shafts; CV/Tripod joints, differential case is covered if damaged by the Mechanical Breakdown of an internally lubricated moving part.
11. Seals and Gaskets: seals and gaskets are covered for the above listed assemblies for the 4 years, 50K miles (80k KM) from the in-service date (Seepage and/or sweating of seals or gaskets are not covered, unless causing one of the assemblies stated above to operate below standards.)
12. Modifications: Coverage is provided to CarBahn components only.

III - Protection Plan Exclusions:

This Protection Plan does not cover:

1. Business Use Vehicle or Commercial Use Vehicles.
2. A part that is not part of the engine and power train.
3. Freight charges, shipping charges, core charges, storage charges, environmental fees, waste fees, shop supplies and hazardous waste removal.
4. Roadside assistance or towing charges.
5. Software updates.
6. Damage due to accidents.
7. Mixing and matching other company’s high-performance components with CarBahns.
8. Improper installation of components
9. Using components that do not meet OEM or CarBahn standards.
10. Manual Clutch.
11. Driver error including but not limited to over revving of engine or miss shifting.
12. If Your Vehicle’s odometer has stopped working, been changed, or altered.
13. Injectors, coils after 4 year, 50K mileage or (80k KM) from in service date as these are normal maintenance items.
14. Oil leaks after 4 year, 50K mileage or (80k KM) from in service date as these are normal maintenance items.
15. Turbochargers after the original 4 year, 50K mileage or (80k KM) from in service date as these are normal maintenance items.
16. Hybrid batteries after the original 4 year, 50K mileage or (80k KM) from in service date as these are normal maintenance items.
17. Routine maintenance including but not limited to suspension alignments, engine tune-ups, lubricants*, fluids*, air conditioning refrigerant*, hoses* and belts.
18. Adjustments, or to damage caused by:
19. neglect, lack of (or improper) maintenance, accidents, missing/absence of parts or parts that have been removed from the Vehicle;
20. Incorrect fuel for the given stage of the vehicle, eg. Inadequate ethanol mix on an e40 engine calibration, or a gasoline octane less than required for the stage of tune of the vehicle, as to be audited by CarBahn on failed vehicle.
21. The gradual reduction of operating performance caused by normal wear and tear when the wear on the component does not exceed factory field tolerances; any repairs caused by product vibration or loose fasteners.
22. Loss or damage caused by riots, fire, theft, vandalism, explosion, lightning, earthquake, storms, hail, volcano eruption, water or flood, misuse, abuse, civil disorder, war, or other acts of nature or which are outside the reasonable control of CarBahn.
23. Any decrease in market value of the Vehicle as a result of a Mechanical
24. Any cost, expenses or equipment required to comply with law and/or regulations imposed or set forth by any governmental agencies.
25. Any internal or external damage due to freezing, rust, corrosion, electrolysis, salt or any other environmental conditions or inadequate or improper storage/layup.
26. ANY MECHANICAL BREAKDOWN THAT EXISTS AT THE TIME OF THE RETAIL SALE OF THIS PROTECTION PLAN.
27. Any loss resulting from inadequate amounts of coolant, lubricant or fluids or damage resulting from overheating or freezing.
28. Any further damage resulting from continuing to operate the vehicle after it has had a failure including but not limited to overheating, low oil pressure or other warnings.
29. Any loss caused by improper or contaminated fuels or other fluids.
30. Fuel system damage from E85 use.
31. Manufacture recalls or campaigns.
32. Any vehicle used for emergency purposes or used for competitive driving, racing or contest of speed or is principally for off-road use.
33. Any vehicle not using publicly maintained roads.

IV - Your responsibilities and how to make a claim

1. Maintenance Requirements: To keep Your Protection Plan in force during its term, You must maintain the Vehicle in accordance with published manufacturer maintenance requirements. If You fail to follow published manufacturer maintenance requirements, you may be denied coverage. Before any repair is authorized, We may require You to furnish Us with proof that You have properly maintained the Vehicle as required. You are responsible for retaining the receipts identifying the Vehicle, showing dates, mileage, service performed, year, make, model and vehicle identification number and providing them to Us in the event of a claim. Failure to show proof of servicing may result in the denial of coverage. MAINTENANCE

COSTS ARE YOUR RESPONSIBILITY.

1. In the event of Mechanical Breakdown of the Vehicle, any operation of the Vehicle that results in further damage related to the original Mechanical Breakdown will be considered the Protection Plan Holder’s failure to protect the Vehicle and will not be covered under this Protection Plan. You are responsible for making sure all warning lights and gauges are functioning before driving Your Vehicle (if applicable). You are required to safely stop the Vehicle and shut down the engine immediately when either of these lights/gauges indicate a problem. Take all reasonable precautions to protect the Vehicle from further damage in order to prevent additional costs or repairs. Your failure to do so will cause the additional cost to be paid by You and/or it may result in the complete denial of the claim.
2. What to do in the event of a Mechanical Breakdown and how to make a claim:
3. You should use all reasonable means and precautions to protect Your Vehicle from further damage. This may require that You stop the Vehicle, turn off the engine and have it towed. This Protection Plan will not cover damage caused by not securing a timely repair of the failed component;
4. Return the Vehicle, at your cost and risk of loss, to an authorized CarBahn Dealer of Your choice in the United States or Canada during normal service department hours.
5. Provide the repair facility with a copy of your Protection Plan;
6. Prior to starting repairs, You or the repair facility must call the CarBahn Warranty department at (866) 558-4314 to verify coverage and obtain a Claim Authorization. The amount authorized is the maximum that will be paid. Any additional amounts need prior approval;
7. Provide complete cooperation and investigation of any Mechanical Breakdown;
8. In some cases, You may be required to authorize the repair facility to inspect or tear down Your vehicle to determine the cause and cost of the repair. You will be responsible for these charges if the repair is not covered by this Protection Plan. CarBahn reserves the right to require an inspection of Your Vehicle prior to any repair being performed. CarBahn reserves the right to move Your covered Vehicle to another repair facility;
9. Provide proof of maintenance upon request;
10. After CarBahn has been contacted, we will review the repair facility components that will be covered by this Protection Plan.
11. When You pick up Your Vehicle, review the repair order with the service manager;
12. You or the repair facility must provide CarBahn with the repair showing details of PARTS AND LABOR TO PERFORM THE REPAIR.
13. CarBahn will reimburse the repair facility or You after receipt of the repair order, in accordance with the provisions of the Protection Plan, for authorized Repair Costs performed on Your Vehicle, less any applicable deductible.
14. Repair Costs: CarBahn will only pay OEM repair times and OEM suggested retail parts prices. CarBahn Protection plan does not cover matrix or padded pricing.

V - Our Right to Recover Payment

If We make any payments under this Protection Plan, You agree that We hold all rights to recover of those payments against anyone, due to, but not limited to a safety recall campaign, any repair required by any court, regulatory agency, to create or settlement and You agree to do nothing to harm those rights. If We pay for repairs under this Protection Plan and You are repaid for the same repairs by someone else, You agree for Your payment to become our property up to the amount that We paid for repairs.

VI – BINDING ARBITRATION

Any dispute, claim, or controversy arising out of or relating to this Protection Plan—including the validity, enforceability, interpretation, performance, or breach thereof—shall be resolved exclusively by final and binding arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules, and governed by the Federal Arbitration Act (FAA). The arbitration shall be conducted by a single neutral arbitrator in Denver, Colorado.

Exceptions to Arbitration:
Notwithstanding the above, the following matters are not subject to arbitration and may be brought in an appropriate court of law:

• Claims filed in small claims court that are within the court’s jurisdictional limits;
• Claims alleging fraud, intentional misrepresentation, or willful misconduct;
• Any claim for injunctive or equitable relief.

Waiver of Jury Trial and Class Actions:
By agreeing to this arbitration clause, both You and CarBahn waive the right to a trial by jury or to participate in any class action, class arbitration, or representative proceeding. Arbitration will be conducted on an individual basis only.

Arbitrator Authority and Remedies:
The arbitrator shall have the exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, or formation of this arbitration agreement. The arbitrator may award any relief available under applicable law, including compensatory, statutory, and punitive damages, as well as reasonable attorneys’ fees and costs when authorized by law.

If any part of this arbitration clause is found to be unenforceable, the remainder shall remain in full force and effect.

VII - General provisions

1. Territorial limits. This Protection Plan will cover the Vehicle only when it is in the United States or Canada.
2. Changes: no changes may be made to this Protection Plan. None of OUR representatives have the authority to change or waive any provisions to this Protection Plan.
3. Representations: By acceptance of this Protection Plan, you agree that statements in this Protection Plan made by You are Your representations and agreements and that this Protection Plan is issued in reliance upon the truth of those statements.
4. Conformality to Statute; This Protection Plan will be governed and construed in accordance with the laws of the state of Colorado and any dispute or litigation by either party arising out of the terms of the Protection Plan will be determined by arbitration in Denver, Colorado pursuant to Section VI above.
5. Entire agreement: This Protection Plan is the entire understanding between You and Us and there are no warranties, representations or agreements that are not expressly set forth herein.
6. Delays: This Protection Plan does not guarantee days or time of service. We are not liable for any damages whatsoever arising out of delays.
7. Limit of liability: TO THE FULLEST EXTENT PERMITTED BY LAW, REGARDLESS OF THE FORM OF THE CLAIM OR CAUSE OF ACTION (WHETHER BASED IN CONTRACT, NEGLIGENCE, STRICT LIABILITY, OTHER TORT OR OTHERWISE), IN NO EVENT SHALL OUR LIABILITY TO YOU UNDER THIS LIMITED WARRANTY OR OTHERWISE (A) INCLUDE ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS OR REVENUES, DAMAGES ARISING OUT OF LOSS OF USE OR OTHER BUSINESS INTERRUPTION DAMAGES, OR (B) EXCEED THE price You paid for the Vehicle. EXCEPT AS EXPRESSLY SET FORTH IN THIS LIMITED WARRANTY, WE MAKE NO WARRANTY WHATSOEVER WITH RESPECT TO THE VEHICLE, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OR TRADE OR OTHERWISE. YOU ACKNOWLEDGE THAT YOU HAVE NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY US, OR ANY OTHER PERSON ON OUR BEHALF, EXCEPT AS EXPRESSLY PROVIDED IN THIS LIMITED WARRANTY.  THE REMEDY DESCRIBED HEREIN IS YOUR SOLE AND EXCLUSIVE REMEDY AND OUR ENTIRE LIABILITY FOR ANY MECHANICAL BREAKDOWN.
8. This Protection Plan expires when the Term of Coverage in years or in miles has been reached, whichever occurs first.

VIII - CarBahn Authorized Dealer Guidelines for Handling Claims

Follow these steps when handling a claim:

1. Advise Protection Plan Holder that evaluation of a failure does not mean that the repair is covered under this Protection Plan. All covered repairs must be approved by CarBahn prior repair.
2. Have Protection Plan Holder authorize inspection/tear down of the Vehicle to determine cause of failure and cost to repair. Save all components, including fluids and filters, should CarBahn require outside inspection. Notify Protection Plan Holder that the cost of tear down will not be paid if it is determined that the failure is not covered under this Protection Plan.
3. Contact CarBahn’s warranty Department at (866) 558-4314 To obtain authorization to proceed with the claim. Be prepared with the following information when placing the call:
   1. Customers Name, Best Contact Phone Number, and Email Address
   2. Cause of failure and recommended correction,
   3. Cost of repair(s).
4. CarBahn will verify coverage and do one of the following:
5. Approve claim - if approved, the authorization in an email after receipt of written estimate. The authorized amount is the maximum that will be paid. Additional amounts must receive prior approval. Estimate must have itemized labor and parts. CarBahn only pays for OEM recommended repair times and OEM retail parts prices.
6. Require Additional Evaluation, Inspection or Tear Down - CarBahn may require an inspection prior to repair being completed. If a tear down is required to determine cause of failure, Protection Plan Holder must authorize same.
7. If an inspection is required, CarBahn will arrange for the inspection. Repair facility should save all components requiring inspection, including fluids and filters. If inspection is not made within forty-eight (48) hours, contact CarBahn.
8. Review the CarBahn's findings with the Protection Plan Holder as well as what will be covered by this Protection Plan and what portion of the repairs, if any, will not be covered.
9. Obtain Protection Plan Holder’s authorization to complete repairs. All repairs must have a customer's signature to qualify for payment.
10. Submit the repair order(s) that must include the Protection Plan number and authorized amount to CarBahn within forty-five (45) days to the following address: Carbahn Motorsports LLC, 8100 Southpark Way, Littleton, Colorado 80120.