Jefferson Government and Commercial Products Warranty

JEFFERSON LIMITED WARRANTY

(Multiple Period Government and Commercial)

1. Jefferson Yachts, Inc., hereinafter "Jefferson", warrants to the first use purchaser, hereinafter "Owner", all boats and parts, except for engines and except for other parts which are covered under a separate manufacturers' warranty, to be free from defects in material and workmanship during the warranty period as set forth below.

2. The duration of Jefferson's warranty on each new Jefferson boat and the parts thereof, except those excluded under Paragraph one (1), or limited as set forth below, shall be for the following period; one (1) year from the date of delivery to Owner

3. Commercial and Government Products will be warranted for a period of one year from date of delivery. However any damage resulting from the following will not be covered: abuse, misuse, accidents, improper storage, lack of reasonable and proper maintenance, overloading or overpowering, and any modification or alteration of the hull is not covered. Any damage resulting from war, police or fire action, or armed conflict is not covered. This warranty is not transferable from the original owner. Specifically, excluded from this warranty are gelcoat issues such as fading, color shifting, chalking, blistering, cracking, crazing and stress lines.

4. Jefferson Yachts warrants to the original purchaser (non-transferrable) that each Marlago Five-O hull manufactured will be free from structural defects due to substandard material or workmanship, under conditions of reasonable commercial or government service, for a period of ten years from the date of manufacture. The following stipulations apply to this warranty:

  a. The hull warranty is offered on a pro-rata basis. Available reimbursement will be reduced each month by a percentage, which will be the number of months from date of manufacture divided by 120. As an example, if the repair occurs 60 months after date of manufacture (60 div 120 = 0.5), 50% of the pro-rate warranty has expired. Jefferson will pay 50% of the authorized warranty repair or replacement cost.

  b. All warranty repairs must be authorized in advance by Jefferson. Any structural defects will be repaired at a service agent chosen by Jefferson or at the Jefferson repair facility in Jeffersonville, Indiana.

  c. Expenses for towing, hauling out, transportation to and from the Jefferson service agent, or to and from the Jefferson repair facility in Jeffersonville, Indiana are the responsibility of the boat owner.

5. Jefferson invites, encourages and expects each prospective purchaser to inspect the boat and parts prior to purchase, with any expert assistance the prospective purchaser deems helpful, in order to ensure complete satisfaction with the boat and parts prior to purchase.

6. This warranty does not apply to normal wear and tear affecting boats and parts or to any defect arising out of lack of proper care or maintenance as recommended by the owner's manual. This warranty does not cover (a) used boats, (b) paints, varnishes, gel coats, or chrome plated, anodized, or aluminum finishes, (c) windshield and window glass breakage or leakage, (d) accessories not manufactured by Jefferson that are installed by the dealer or factory installed equipment that was supplied by the dealer or Owner, (e) racing boats or engines, (f) published or otherwise announced catalog speeds, fuel consumption, or range (because those calculations are obtained under variable conditions), (g) fiberglass blistering attributable, in the opinion of Jefferson, to water penetration of the fiberglass (osmotic blistering)except as outlined in paragraph number 7.

7. Five-Year limited hull blister warranty: Jefferson will warrant to the original purchaser (non-transferrable), the underwater gelcoated surfaces of the hull against laminate blisters which occur as a result of defects in materials or workmanship within five (5) years of the date of delivery, provided that the original factory gelcoat surface has not been altered. Alterations would include but is not limited to damage repair, excessive sanding, scraping, sandblasting, or from improper surface preparation for application of a marine barrier coat or bottom paint, any of which will void the warranty. A marine barrier coat must be properly applied to hull bottom if boat is to be moored in water for periods in excess of sixty (60) days. Marine barrier coating is required if boat is to be bottom painted. Jefferson Yachts shall repair or cause to be repaired any covered laminate blisters, the cost of which shall be based upon customary and reasonable charges, and subject to Jefferson's prior approval, and the following prorated schedule of costs to be covered by Jefferson: Less than two (2) years from delivery date – 100%, Two (2) to three (3) years from delivery date – 75%, Three (3) to four (4) years from delivery date – 50%, Four (4) to five (5) years from delivery date – 25%. Reimbursement shall be limited to one repair, not to exceed Eighty ($80.00) dollars per foot of boat length prior to proration. Jefferson's' prior authorization for the method and cost of repair must be obtained before repairs are commenced.

8. Jefferson's obligations under this warranty are limited to repairing or replacing covered components or parts that have failed within warranty period set forth in Paragraph two (2), three (3), or four (4) above because of defects in materials or workmanship. Jefferson shall be the sole judge as to whether the covered components or parts involved have failed within the warranty period because of defects in materials or workmanship. This decision as to whether to repair or replace covered components or parts that have become defective within the warranty period shall be at Jefferson's sole discretion. Jefferson may require that covered components or parts be returned to a factory authorized service center, at Owner's sole expense, in order to examine the boat or parts to determine warranty coverage.

9. Jefferson will not be responsible for boats or parts that have been damaged or have become defective because of abuse or neglect on the part of someone or some entity other than Jefferson, nor will Jefferson be responsible for faulty installation or workmanship of personnel not directly employed by Jefferson.

10. Jefferson reserves the right to change the specifications of boats and parts without obligation to incorporate such changes in boats and parts manufactured previous to said changes and without obligation to notify Owners of boats and parts manufactured previous to said changes.

11. If a boat or parts should become defective within the warranty period, prior written approval by an authorized representative of Jefferson shall be required before any boat or parts are replaced or any defect corrected by a service representative. If such prior written approval is not obtained before repair or replacement, Jefferson shall not be liable for the expense of the repair or replacement. The Owner must contact an authorized Jefferson dealer, preferably the dealer from whom the boat was purchased, in order to obtain warranty service.

12. In order to obtain the written approval referred to in Paragraph 11, Owner shall forward to an authorized Jefferson dealer, preferably the dealer from whom the boat was purchased, the following information: (a) Owner's name and address; (b) boat serial number; (c) description of the defect; (d) date boat was actually placed in service; and (e) accumulated hours or days of service. Warranty claims for defects in engines or parts carrying a separate manufacturer's warranty shall be made directly by Owner to the manufacturer of the engine or part and the following information shall be forwarded to the engine or part manufacturer: (a) Owner's name and address; (b) engine or part serial number; (c) date of purchase; (d) dealer from whom boat purchased; (e) description of defect; and (f) accumulated hours on engine or part. Failure to provide Jefferson a completed warranty registration and acknowledgement of receipt of owner's manual within 30 days of delivery of the boat shall void any warranty contained herein.

13. Reimbursement for labor expense incurred by the dealer under this warranty shall be based upon a rate and schedule set by Jefferson. Reimbursement of labor expense incurred by the dealer under this warranty shall be made through the selling dealer except where impracticable because of distance.

14. Dealers are not agents of Jefferson. No dealer is authorized by Jefferson to assume for Jefferson any liability under this warranty for boats or parts replaced or repaired. The sole mode of authorization for the repair or replacement of boats or parts under this warranty is set forth in Paragraph 11 above.

15. JEFFERSON MAKES NO WARRANTY OF ANY TYPE WHATSOEVER TO ANY PERSON OTHER THAN OWNER AND ONLY AS SPECIFICALLY SET FORTH HEREIN. JEFFERSON SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES INCLUDING, BUT NOT LIMITED TO, AND IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE. JEFFERSON SHALL NOT BE RESPONSIBLE, AND HEREBY DISCLAIMS ANY LIABILITY FOR, ANY AND ALL CONSEQUENTIAL, INCIDENTAL, AND ECONOMIC DAMAGES, DAMAGES TO PROPERTY, DAMAGES FOR LOSS OF USE, LOSS OF TIME, LOSS OF PROFITS, LOSS OF INCOME AND ANY AND ALL OTHER DAMAGES OF ANY SORT WHATSOEVER.

16. Some states do not allow limitations on implied warranties and/or do not allow the exclusion of limitation of incidental and/or consequential damages, so the limitation set forth in Paragraph 15 above may or may not apply to you. This warranty gives you specific legal rights; you may also have other rights which vary from state to state.

17. This warranty is not transferable and shall be enforced according to the laws of the State of Indiana. Any claim, lawsuit, or civil action brought to enforce this Limited Warranty must be brought in the Clark Circuit Court in Jeffersonville, Indiana.

18. Address of the manufacturer and warrantor: