Warranty Compensation

Compensation to an authorized Custom Equipment, Inc. distributor will be made as follows:

1. Warranty Labor Compensation

     Custom Equipment will pay the Dealer based upon a valid and legitimate Shop Work Order at the current      authorized labor rate per hour to repair or replace any defective parts using standard factory time      allowances.

2. Warranty Repair Part Compensation

     At Custom Equipment, Inc.'s option; we will issue credit to the dealer for the net cost of any warranty      repair part consumed for a warranty-covered repair. Custom Equipment reserves the right to reimburse      the distributor utilizing a used or reconditioned/rebuilt part as the method of part value reimbursement. In      special cases, local procurement of repair parts may be authorized. (approval prior to purchase is      required). When new, used, or reconditioned/rebuilt parts are used for a warranty repair and installed      onto a unit with remaining warranty, those parts will be subject to the machine's remaining warranty time      period. Under no circumstance will installing new, used, or reconditioned repair partsextend the machine's      original warranty time period.

3. Travel Time Compensation

     A maximum of two (2) hours for 'Travel Time', compensated at the current authorized, traveltime rate      will be allowed for repairs that occur away from the Dealer Service Facility.