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Distributor Warranty Policy

GROUND FORCE will allow warranty claims for repairs on GROUND FORCE manufactured equipment per the terms laid out in this warranty policy. All claims must follow the rules set forth in this policy; GROUND FORCE will recognize no other payment schedule. Proper procedure, including paper work, must be followed for warranty to be considered. The following warranty schedule will be applicable:

• Labor will be paid at 80% of the Distributor’s prevailing in-shop service charge at the time the repair is performed.

• Normally only straight time labor, based on an 8-hour/day schedule, will be paid. Overtime labor will be paid on labor over 8 hours worked on any day on GROUND FORCE equipment ONLY. For example, if the mechanic works for a number of hours on other equipment and his hours move into overtime pay when he is working on GROUND FORCE equipment, only straight time labor will be paid until he has worked for 8 hours on the GROUND FORCE equipment, irrespective of how many hours he has been at the jobsite. For any exceptions for warranty payment to be made on overtime labor claims, pre-approval must be obtained from the GROUND FORCE Customer Service Department, otherwise all labor hours submitted for payment will be paid at straight time.

• A warranty job number must be assigned by GROUND FORCE and referred to in any billing.

• All warranty labor hours are subject to review by GROUND FORCE’S Customer Service Department for validity. Excess labor hours charged due to Distributor’s mechanics’ inexperience and training on the servicing of GROUND FORCE equipment is not covered under warranty.

• All warranty work which may entail major repair of GROUND FORCE equipment is subject to being performed by GROUND FORCE technicians dispatched from GROUND FORCE’S plant rather than by Distributor’s mechanics. The decision whether to have GROUND FORCE technicians perform said repair work is solely at the discretion of GROUND FORCE. Major repair work performed by Distributor without pre-approval from GROUND FORCE is subject to claim denial.

• GROUND FORCE will not pay travel expenses for Distributor mechanics’ mileage if Distributor mechanics are scheduled to perform work at the client’s site on a regular basis as part of a pre-existing support contract with the mine site. If mileage is claimed as part of the warranty claim, payment for that travel mileage will be at the same rate GROUND FORCE charges in its field service schedule, which is $.75/mile for pickup truck calls, $1.00/mile for service trucks. This value includes labor cost for the mechanic and all vehicle expenses.

• Warranty expenses incurred because of the failure of a component part used by GROUND FORCE in the manufacture of equipment GROUND FORCE builds is subject to coverage under the warranty of the component manufacturer, both in regards to the cost of the part and to the labor cost for replacing it. Mileage likewise is covered by the component manufacturers’ warranty. GROUND FORCE only uses the highest quality components, and is not liable for component failure costs, other than to provide an identical replacement part. GROUND FORCE will submit parts returned to GROUND FORCE for warranty consideration to the component manufacturer; credit will be issued for the part if deemed payable by the component manufacturer (parts are billed for when shipped as per GROUND FORCE’S Parts Warranty Policy).

• Warranty claims must be made in writing, utilizing the proper forms provided to the Distributor by GROUND FORCE. A detailed labor report will be required for warranty labor consideration.

• Warranty claims will be paid based on whether a component manufacturer is involved in the claim. If parts are sent in forevaluation, the resulting claim will be paid upon resolve of the part failure issue with the component manufacturer. Claims arising due to failure of GROUND FORCE workmanship will be paid within 30 days from receipt of the warranty claim documentation at GROUND FORCE if allowed.

• GROUND FORCE will pay reasonable per-diem expenses for Distributor technicians working on GROUND FORCE equipment when away from the Distributor’s shop. These expenses will only be paid on work more than a day in duration of time spent working on exclusively GROUND FORCE equipment. Meal expenses are as allowable under IRS tax code, and reasonable (Super 8, Best Western) motels are allowed.

This warranty policy supersedes any prior policy or understanding relating to warranty on GROUND FORCE manufactured equipment, expressed or implied.