Effective 11-9-99, Teledyne Mattituck Services, Inc. hereinafter "TMS") makes the following warranty to its customer, subject to the limitations, conditions and exclusions set forth below forth below.

WARRANTY COVERAGE - For a period of one (1) year after date of delivery to customer, or 480 hours of operation, whichever occurs first, TMS shall repair or replace, at its option, any aircraft engine, aircraft accessory, or part which is found to be defective, to TMS's satisfaction, within said warranty, period.

For engine warranty after one (l) year from the date of delivery to customer and prior to the expiration of the original manufacturers recommended time between overhaul. ("TBO"), the cost of repair or replacement (including the cost of parts and labor), at TMS's option, shall be prorated in the following manner. The customer shall pay the net price for a newly remanufactured engine equal to the current list price for the engine divided by the applicable TBO, and multiplied by the number of hours on the repaired or replaced engine (which shall be deemed the greater of the actual logbook hours, recorded tachometer hours or hours or time at forty (40) hours per month from the date of delivery.) Reasonable labor costs associated with the repair of a warranteed engine shall be prorated in the same manner on the basis of a flat rate schedule established by TMS.

After the initial one (1) year from date of delivery or 480 hours, of operation, TMS will not assume any responsibility for the repair or replacement of engine accessories, e.g. magneto, starter, alternator, ignition harness, turbocharger:

Replacement parts supplied for warranteed engine still covered by manufacturer's warranty are supplied on an exchange basis. TMS will pursue warranty claims with the manufacturer on the owner's behalf. Any allowance by the manufacturer will be credited to the operator's account.

A troubleshooting allowance of up to 15% of the repair cost will be allowed at the discretion of TMS. The repair or replacement of any part under the foregoing warranty shall not extend the periods or warranty coverage set forth above. TMS reserves the right, to change the price or specifications of any engine or part at any lime.

CONDITIONS AND PROCEDURE FOR OBTAINING WARRANTY WORK - The foregoing warranty shall be effective only if the engine or component to be serviced is returned to TMS's facility at customer's expense, together with particulars in writing of the nature of the defect. The customer or TMS's representative should contact TMS for verification and authorization of warranty prior to return and/or repair. Written authorization must be obtained from TMS before repairs covered by warranty can be performed other than by TMS. In no event shall allowable labor costs exceed local published shop rates. The foregoing warranty shall apply if and only if the engine has been properly installed and maintained in accordance with current approved standards of the FAA and current recommendations of the manufacturer as specified in applicable factory manuals and service bulletins. The performance of recommended inspections and maintenance must be documented by logbook entries, which must accompany any engine returned for warranty work. Defects must be discovered within the warranty period and TMS must be given prompt notice thereof in writing, within ten (10) days after discovery.

LIMITATIONS, EXCLUSIONS, AND DISCLOSURES- TMS shall not assume freight charges, transportation or delivery expenses, costs or airframe repairs all of which are excluded under this warranty. TMS does not warranty parts, materials or services supplied which am covered by manufacturer's warranty. This warranty shall not apply to any engine which has been subject to misuse, neglect, accident or damage from the elements, or which has been installed, repaired or maintained or altered in any manner which, in the judgment of TMS, has had an adverse effect on the engine or part. This warranty shall not apply to any engine, which has been operated under conditions, which exceed the manufacturer's recommendations. This warranty shall not apply to any engine that has been repaired or altered, in any manner other than, TMS, or its representative.

THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED ARISING BY OPERATION OF LAW OR OTHERWISE, INCLUDING WITHOUT LIMITATION THE WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE THAT WARRANTIES ARE HEREBY EXCLUDED. TMS liability hereunder shall be limited to the repair or replacement of any engine or part found to be defective within the applicable warranty period as set forth above. IN NO EVENT SHALL TMS BE LIABLE FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES OR ECONOMIC LOSS OF ANY NATURE WHETHER ARISING IN CONTRACT OR TORT INCLUDING STRICT LIABILITY IN TORT OR NEGLIGENCE ON THE PART OF TMS. The foregoing limitations and exclusions with respect to implied warranties and the exclusion of incidental or consequential damages may not apply in those states, which prohibit such limitation or exclusions. This warranty gives customer specific legal rights, and the customer may have other rights which vary from state to state.