PREVENTATIVE MAINTENANCE CONTRACT

1. SPECIFICATIONS

   This contract is to provide preventative maintenance on NISSHINBO equipment not covered by standard or extended warranty.

   Preventative maintenance means the action of checking the machine components in a general manner while the machine is in production.  This preventative maintenance may include the use of measuring equipment, which may require the machine to be stopped for a short period of time.

   This preventative maintenance is applicable to any NISSHINBO equipment.

2. FREQUENCY AND LENGTH OF CONTRACT

   This contract is valid for a period of twelve (12) months starting with the first preventative maintenance visit.

   The frequency of visits is defined as follows:

   _______________ visit (s) per _______________.

3. COST OF PREVENTATIVE MAINTENANCE CONTRACT

   The amount of _______________, _______________ dollars is agreed to cover the full length of this preventative maintenance contract.

   Payment shall be made prior to the first visit.

   Included in the above amount:
   -  4 hours of labor on site.
   -  10% discount on parts ordered during visit.
   -  30% discount on labor exceeding schedule time.

4. SCHEDULE

   The visit schedule may be defined during the completion of this contract.  The customer is free to move the date of a visit if such date is not suitable for a visit.  However, the customer should advise NISSHINBO at least 1 week before the scheduled visit.   NISSHINBO will contract the customer at least 1 week prior to the visit date to confirm the schedule.

   In case of emergency, which may occur at NISSHINBO, the scheduled visit may have to be moved to a different date than scheduled.  In this case, NISSHINBO will advise the customer at the earliest possible time to reschedule a new visit date.

5. SCHEDULE DURING VISIT

   A preventative visit is scheduled for a period of four (4) hours during which, the service representative will perform various preventative maintenance functions as stated on the maintenance schedule.

6. SPARE PARTS

   If during the visit, spare parts are required to repair the equipment, and after acceptance by the customer, the parts will be sold to the customer at a 10% discount from stated price list.

7. CONTINUATION OF A VISIT AT EXPIRATION OF THE SCHEDULE

   At the end of the preventative maintenance visit, the service representative will advise the customer that the time allowed for the preventative maintenance has expired.

   If more work needs to be done and after acceptance by the customer, the service technician will continue to work on the equipment.

   From the expiration of the preventative maintenance visit until completion of any work done to the equipment the customer will be invoiced at a 30% discount from the standard labor charge.

8. REPORT AND REMARK

   At the end of the preventative maintenance visit or service call, the service technician will produce a service report indicating the areas requiring work.  The customer may place an order for additional parts by issuing a purchase order.  Such an order will receive a 10% discount if ordered at the end of the preventative maintenance visit.   Parts ordered later will be at normal list prices.

9. CANCELLATION

   Both NISSHINBO and the customer must agree upon cancellation of the contract.  The residual amount generated by the cancellation of this contract will be applied as credit for the purchase of spare parts or the execution of service calls.  This credit can not be used to purchase discounted parts.

10. CONTROLS AND MEASUREMENTS EXECUTED DURING THE VISIT
    
    
    • Visual inspection for any broken parts.
    • Check oil level and oil cleanliness
    • Check air pressure and filter
    • Check all belts for pressure and weariness
    • Check work clamps including jaws
    • Check all safety devices
    • Visual inspection of all oil fittings
    • Visual inspection of all pneumatic fittings
    • Mechanical check of lead screws and guide bars
    • Inspect turret bushings and die bases
    • Clean CNC air filters
    • Visual inspection of electronic components
    • Check hydraulic system for correct pressure and performance
    • General maintenance and operator awareness.

11. GENERAL

    This contract shall be the only valid binding document between _______________ and NISSHINBO and shall govern the terms and conditions of this contract.

12. SIGNATURES

    For:   _______________

    Signature of authorized personnel:  _______________

    For:  NISSHINBO

    Signature of officer:  _______________

    This contract will be validated by the first visit executed the _______________ of ______________, _________ and terminated the _______________ of _______________, ________ by the last visit.