ARBITRATION PROGRAM RULES FOR ESE CARBON COMPANY LIMITED WARRANTY DISPUTES

1. DEFINITIONS:

The following key terms are defined as they are applicable to the ESE Carbon Company (“ESE Carbon”) Limited Warranty Disputes as administered by NCDS.

"Arbitration" shall mean the process under which an impartial person or panel decides disputes between Consumers and ESE Carbon from the terms and provisions of the ESE Carbon Company Limited Warranty.

"Arbitrator" shall mean a neutral, independent, third party arbitrator appointed by NCDS.

"Claim" is a request for money, reimbursement, or warranty coverage under the terms of the ESE Carbon Company Limited Warranty.

"Consumer" refers to the current owner or lessee of a vehicle for which they purchased ESE Carbon wheels.

“Eligible Coverage” as per the ESE Carbon Company Limited Warranty means that ESE Carbon will replace a defective wheel at no charge with a new wheel of the same size and type. The vehicle in question must be the original vehicle for which the wheels were purchased and installed.

"Exclusions to the Warranty” refers to:

• Any defect, malfunction or failure caused by damage in transit, off road use, excessive loads, or by abuse, misuse, accident, potholes, bends, curb rash or negligence.
• Any costs or damages related to transportation to or from ESE Carbon or its authorized dealer/distributor for any warranty service, loss of time, loss of use, towing charges, bus fare, car rental or any other incremental damages.
• Cost to repair or replace other property which is damaged when a wheel is deemed defective.
• Wheels that have been altered or repaired.
• Wheel corrosion or cosmetic flaws occurring after purchase due to chemicals, caustic cleaning agents, climate conditions, car wash damage or neglect.
• Any costs related to mounting and/or balancing.
• Any damage to wheels or vehicle resulting from mounting equipment or incorrect installation, including installation with incorrect tire size or improper torquing of lug nuts or improper fitment. It is the owner’s (and owner’s authorized agent’s) sole responsibility to torque lug nuts to the recommended specifications outlined in the owner’s documentation. ESE Carbon further recommends regular, periodic checking/adjustment of lug nut torque to ensure safety.

"NCDS" shall mean the National Center for Dispute Settlement, LLC, a neutral independent administrative agency that administers certain aspects of the ESE Carbon Company Limited Warranty disputes.

"Program Rules" shall mean these Arbitration Program Rules for ESE Carbon Company Limited Warranty Disputes.

"Proof of Eligible Purchase" shall refer to the original or a copy of any document(s) generated at or around the time of the purchase of the ESE Carbon wheels, along with a copy of the current vehicle registration.

2. SCOPE OF NCDS’ AUTHORITY:

A Claim is eligible under these Program Rules, if the Claim is filed by, or on behalf of, a Consumer within the ESE Carbon Company Limited Warranty coverage period stated below:

Except as otherwise stated in the ESE Carbon Company Limited Warranty, the Limited Warranty on materials and workmanship remains in effect for a period of sixty (60) months from the original date of purchase. The Limited Warranty on the finish/coating of the wheel remains in effect for a period of twenty four (24) months from the date of original purchase.

3. INITIATION OF CLAIM BY NCDS:

Upon receipt of the Claim from the Consumer, NCDS shall forward an acknowledgement Letter to all parties, along with copies of all documentation filed by the Consumer. NCDS shall open a Claim only if it includes the issues that fall within the terms and conditions of the ESE Carbon Company Limited Warranty and the document submission provisions listed on the Claim form and herein.

The remedy is limited to the replacement of a defective wheel at no charge with a new wheel of the same size and type.

Remedies not specified in the ESE Carbon Company Limited Warranty and these Program Rules, such as general monetary damages, punitive damages, allegations of fraud, or claims for personal injury or mental anguish, shall not be arbitrated and are excluded from the program.

4. SELECTION OF THE ARBITRATOR:

NCDS maintains a pool of qualified Arbitrators who are interested in the fair and expeditious resolution of consumer disputes. The NCDS pool of Arbitrators have been continuously trained by NCDS and are not specifically required to have technical and/or legal expertise.

NCDS will select an Arbitrator from its active Arbitrator pool in a manner designed to avoid any conflict of interest, and to provide the parties with an Arbitrator to render a written decision on the dispute. If a financial, competitive, professional, family and/or other social relationship exists with any party, even if the Arbitrator believes the relationship is inconsequential so as to have no effect on the decision, the disclosure shall be made to the parties by the Arbitrator. In such disclosure instance, either party may decide whether the Arbitrator may continue to serve on the case.

5. COMMUNICATION WITH THE ARBITRATOR:

Neither party shall communicate with the Arbitrator about the dispute. All communication for the Arbitrator shall be sent through NCDS. A violation of this Program Rule shall compromise the impartiality of the arbitration process and may result in the Arbitrator being reassigned and/or the case being discontinued.

6. REPRESENTATION:

A Consumer may present his or her own case or have someone represent the Consumer at the Consumer’s own expense, including legal counsel. If a Consumer is going to be represented by legal counsel, written notice of such representation shall be provided to NCDS within five (5) days of the hearing date or, in the event of a document only hearing, by the final document submission deadline set by the Arbitrator and/or NCDS.

7. HEARING TYPE SELECTED BY THE CONSUMER

Upon filing their Claim, the Consumer shall select between an oral, single arbitrator teleconference hearing or a documents-only, three (3) arbitrator panel hearing process. With the oral teleconference hearing, the parties will be entitled to verbally present their position to the Arbitrator via a teleconference session. With the documents-only process, the parties will submit written evidence as further described in Program Rule 8 below.

8. DOCUMENTS ONLY HEARING - FINAL DOCUMENT SUBMISSION DEADLINE NOTICE:

In the event the Consumer selects a documents-only process, the Arbitrator will issue a decision based solely upon written information that the parties have provided. NCDS will set a date (usually within fourteen (14) days after the case is opened), within which the parties must submit written positions, documentation, and any other written evidence (including, without limitation, Proof of Purchase and Current Vehicle Registration). Notice of the document submission deadline will be sent to the parties at least five (5) days in advance by NCDS.

9. CLAIM RECORDS MAINTAINED BY NCDS:

NCDS will maintain basic file information such as the party's names and documents presented as evidence. Copies of these materials and other official arbitration letters and/or forms can be provided upon written request. A reasonable copying fee may be charged.

10. SETTLEMENT:

If the parties voluntarily decide to settle the dispute prior to the Arbitrator’s decision being rendered, the settlement will end the dispute and no decision will be issued. Written notice of the settlement from the Consumer shall be provided to NCDS in writing so that the file can be closed. The arbitration case will proceed until written notice of the settlement from the Consumer has been received.

11. TIME FOR DECISION:

NCDS shall make every effort to obtain the decision from the Arbitrator within two (2) days of the final document submission deadline or the teleconference hearing date. In any event, all decisions will be submitted within ten (10) days of the hearing date, or by day forty (40) of the process, whichever occurs first

12. THE DECISION:

When the decision is reached in the case, all parties will receive the Arbitrator's written decision via email and/or mail. The decision will not be provided to either party over the phone.

1. Scope of Decision: The decision shall be nonbinding. In the event the Consumer accepts an Arbitrator’s decision in the Consumer’s favor, ESE Carbon agrees to be bound by the decision. The decision shall be based on a fair and reasoned decision of the Arbitrator within the scope of the ESE Carbon Company Limited Warranty terms and provisions (as incorporated herein) and the Program Rules (as defined herein). If the Arbitrator determines that a Consumer is entitled to the remedy requested pursuant to the terms and provisions of the ESE Carbon Company Limited Warranty (as incorporated herein) and the Program Rules (as defined herein), then the decision shall require that ESE Carbon shall comply with the terms of the decision within thirty (30) days.
2. Within ten (10) days after the thirty (30) day compliance period, NCDS will contact the Consumer to verify whether the decision has been performed if the decision was favorable to the Consumer and accepted by the Consumer.
3. Clarifying the Decision: A party may request that the Arbitrator clarify a decision if that party does not understand what action is required of the decision, or if that party and the other party disagree about what action is required by the decision. The parties may not, however, ask that the Arbitrator clarify the reasons for the decision. A request for clarification will not be accepted or processed by NCDS if it attempts only to challenge the conclusions of the Arbitrator or provide new evidence and/or reargue the case. A request for clarification must be in writing and received by NCDS before the thirty (30) day compliance period expires. An appropriate request for clarification of the decision will be sent to the other party for response. NCDS will send the clarification request, and any response, to the Arbitrator, who may either clarify the decision or let the decision stand as originally written. A request for clarification shall suspend the thirty (30) day compliance period until such time as the clarification issue raised has been resolved.
4. Correcting the Decision or Reasons for Decision: A party may request correction of the decision or reasons for the decision only if the decision or reasons contain a mistake of fact, a miscalculation of figures, or exceeds the Arbitrator's authority, as defined herein. A mistake of fact is not a conclusion of the Arbitrator with which a party disagrees; it is a true error in an objective fact such as a misstatement of a date, time, location, or name which is justified to be corrected. A miscalculation of figures is not merely a dollar amount that a party disagrees with; rather, it is an arithmetic error that can be corrected. The request for correction of the decision must be in writing and received by NCDS before the thirty (30) day compliance period expires. If a party’s written request for correction of the decision is an appropriate request for correction, it will be handled in the same manner as a clarification request stated above. NCDS reserves the right to correct obvious mathematical errors in the decision and/or an obvious misstatement of a date, time, location, or name.
5. Decision is Impossible to Perform Timely: If any party believes that the Arbitrator's decision cannot be performed within the established thirty (30) day time limit, or at all, that party should immediately notify NCDS in writing and provide sufficient evidence as to the reason for the untimely performance. NCDS will process the notice in the same manner as a clarification request. If ESE Carbon exceeds the thirty (30) day compliance period, the Consumer should immediately contact NCDS in writing. NCDS will then contact ESE Carbon and determine the reason for noncompliance.
6. Post-Decision Settlement: If the parties agree on a settlement that differs from the Arbitrator's decision, a copy of the post decision settlement agreement should be provided to NCDS to modify and/or supersede the previously issued Arbitrator's decision.

13. CONFIDENTIALITY OF RECORDS:

It is the policy of NCDS that all records of the arbitration process are confidential. NCDS and/or the Arbitrator shall not release the results of an individual case to any person and/or group that is not a party to the case unless all parties agree in writing, or unless such release of documents and/or information is required by state law and/or regulation or required by further judicial or governmental proceedings.

14. EXCLUSION OF LIABILITY IN LEGAL PROCEEDINGS:

In proceeding with the arbitration process, the parties agree that the Arbitrator cannot be subpoenaed by either party in any subsequent legal proceeding. Neither NCDS, its officers, directors and/or employees, nor any Arbitrator appointed to serve under the Program Rules, is a necessary party in any judicial proceedings respecting the arbitration; and neither NCDS, its officers, directors and/or employees, nor any Arbitrator appointed to serve under the Program Rules, shall be liable to any party or entity for any act or omission.

15. INTERPRETATION OF RULES:

Except where the Program Rules specifically state otherwise, the Arbitrator shall interpret and apply these Program Rules insofar as they relate to any member of the Arbitrator's powers and duties. All other rules shall be interpreted and applied by NCDS. NCDS reserves the right, consistent with applicable state and/or federal law and the terms and provisions of the ESE Carbon Company Limited Warranty, to make a final administrative decision on procedural questions, the scope of the issues to be arbitrated, a Consumer’s Claim eligibility for arbitration, and any other questions concerning the application and interpretation of these Program Rules. NCDS reserves the right to discontinue and/or decline administration of an arbitration for any case due to a conflict with the ESE Carbon Company Limited Warranty, any state and/or federal law or regulation, or due to the behavior of a party.