In order to provide a better service to our customers and to expedite the warranty process for parts, we have outlined the procedure below for sending parts for warranty analysis due to manufacturing defects. Please find our warranty procedure below:

1º) Get in touch with the warranty department:

The customer must contact the company immediately upon receiving the products, providing the information described below:

- Distributor's name;

- City/State;

- Quantity of defective parts;

- Defect observed in each item;

- Photo where the defect of each part can be identified;

- Purchase invoice number for each item;

- Upon receiving the goods via carrier, was the damage noted on the back of the bill of lading?

- Did the external packaging show any visible signs of damage?

- Were the packages photographed?

2º) Authorization for shipping the parts:

The person in charge of the warranty department will send an email to the requester (distributor) authorizing the shipment of the parts. If the shipment is not authorized, the parts should not be sent, and the reason for the refusal will be provided at this time.

3º) Shipping the parts for analysis:

After receiving the authorization, the customer must send the parts to Gauer for analysis, along with the invoice filled out correctly according to the instructions below:

- CFOP: 5949 (state of RS) and 6949 (other states);

- CFOP Description: Shipment for warranty analysis with return;

- Value of the Products: Issue the invoice with the correct value of the products as paid on the purchase invoice;

- Include the Gauer part code on the invoice (in the product description);

- NOTE: Taxes should not be highlighted on the invoice;

- Shipping: The distributor must send the parts for warranty analysis with prepaid shipping;

The following must go with the goods:

- Authorization email from GAUER (hard copy);

- Sales invoice from GAUER highlighting the shipped item (hard copy);

- Photo and information about the defect identified for each shipped item (hard copy);

NOTE:

Should the total value of defective products not exceed R$ 150.00, we request that the customer list the defective goods and deliver them to our regional representative (during a potential visit). The representative may list the products for exchange in the customer's purchase order, noting "ITEMS FOR EXCHANGE" in the order. Gauer will send the parts with the customer's next order, or the representative will deliver them in person. However, this type of procedure should only be carried out with prior formal authorization from GAUER.

4º) Warranty response: (parts already sent to GAUER for analysis)

After the parts have been analyzed by GAUER's technician in charge, the customer will receive an email from the company as follows:

- Valid Warranty: This is characterized when products or parts exhibit failures or changes in their functions SOLELY due to material defects or manufacturing defects, provided that these products or parts are within the warranty period.

The customer will receive a report stating that the warranty is VALID and that GAUER will send the replacement parts within 30 days, with CIF shipping.

- Invalid Warranty: The customer will receive a report stating that the warranty is INVALID, along with the reasons for the warranty rejection, and the part will be marked with a 'VOID WARRANTY' label. The parts deemed invalid will be returned to the customer with FOB shipping. If the customer provides formal authorization, GAUER may scrap them...

BE AWARE!

We reserve the right to deny the warranty when:

- The products were sold to the customer more than 90 days ago;

- No defect was reported on the bill of lading when the invoice was delivered;

- Defect reported more than 7 days after receiving and signing the bill of lading;

- The defects in the parts were caused by misuse, dropping, etc;

- Parts deteriorated or tampered with by the customer;

- Parts do not exhibit manufacturing defects;

- Parts are not manufactured by GAUER;

- Parts with labels written with permanent markers or pens;

- Items broken after being delivered to the customer;

- Items were sent to GAUER without authorization from the warranty department;

- Items sent to GAUER with FOB shipping;

- This procedure is not followed;

We have observed that a large number of the parts received for warranty analysis:

- Have errors in filling out the invoice;

- Include incorrectly issued codes (the GAUER code must be listed on the invoice);

- Have incorrect prices listed;

- Contain physically sent parts that do not match the invoice, diverging in quantity and model;

- Are products not manufactured by GAUER;

- Include parts sent with FOB shipping, without GAUER’s authorization;

- Invoice issued with missing or incorrect product information (only the part description, only the customer code), making it impossible to identify which product was sent;

In order to avoid the occurrence of the issues above, we request that the invoice be issued as per item 3 and that the steps in this procedure be properly executed. Failing to comply with any of the above items will result in the warranty being deemed invalid.

Order receiving

We request that the customer inspect the packaging and seals upon receiving orders.

If they are found to be damaged or opened, please notify GAUER immediately, as we will not accept returns afterwards.

The customer should check all the parts listed on the invoice. In the case of breakages, missing items, or damages/malfunctions, the customer should report the occurrence on the carrier's bill of lading. GAUER will then take measures to ensure that this problem does not occur again.

This procedure takes effect from this date.

CAXIAS DO SUL, RS, 25/01/2016