Airframe and Engine Warranty

a) Engine Warranty by Honeywell (AlliedSignal) Aerospace Propulsion Engines

1) Warranty applicable to the engine conversion program are as follows:

a) Overhauled/Modified -10 engines will be sold subject to Honeywell (AlliedSignal)'s standard Commercial Warranty for Executive/Corporate Operators of Propulsion Engine for Overhauled Equipment, as set forth in Exhibit "B" attached to this agreement and incorporated herein by reference, as from time to time amended by Honeywell (AlliedSignal). In addition to the warranty set forth in Exhibit "B", the -10 turbine module will be covered for twenty-four (24) months, instead of twelve (12) months, from the date of initial operation in an aircraft, for engines modified under the "-5 engine" to -10T engine" program.

b) Continued Time Repaired/Modified engines. Honeywell (AlliedSignal) will warrant the power section and gear box against defects in materials and workmanship for a period of one (1) year from date of installation in an aircraft. Honeywell (AlliedSignal) will warrant all line replacement units against defects in workmanship only, for a period of thirty (30) days from the date on installation of the continued time modified "-10 engines" in an aircraft. The details of Honeywell (AlliedSignal) warranty with respect to continued time modified engines are set forth in Exhibit "B" attached to this agreement and incorporated herein by reference. Engines modified under this option will retain their time since new or overhaul from before the conversion, but will have a new continued time inspection interval option as elected by the operator from the options identified in section "B" on a previous page. In addition, the -10 turbine module will be covered for twenty-four (24) months, instead of twelve (12) months, from the date of initial operation in an aircraft, for engines modified under the "-5 engine" to "-10 engine" program.

2) Exhibit "B" Commercial Warranty for Executive/Corporate Operators of Propulsion Engines

Honeywell (AlliedSignal) Engines warrants that repaired equipment will at time of delivery be free from defects in material and workmanship, with respect to replaced parts and repair services. Honeywell (AlliedSignal) warrants that overhauled equipment will at time of delivery be free from defects in material and workmanship. Warranty shall run to the original purchaser, its successors, assigns and customers when they are the owner. This warranty shall expire twenty-four (24) months from the date of shipment of the equipment by Honeywell (AlliedSignal) or twelve (12) months from the date of initial operation in an aircraft, whichever first occurs. Thermal distress attributed to fuel nozzle damage is limited to the first Honeywell (AlliedSignal) recommended inspection interval of the fuel nozzles after overhaul.

b) Airframe Parts Warranty by Twin Commander Aircraft Corporation

Unless otherwise stated, all new aircraft parts are covered by a limited warranty for a period of six months after installation on an aircraft, or a total of 12 months from the date of sale of such part(s) to a factory authorized Service Center, whichever time period elapses first Overhauled/serviceable parts are Warranted for 90 days after the date of sale of such part(s) to a factory authorized Service Center. However, if the overhauled/serviceable part is replacing a part which has failed under warranty, then such part(s) will be warranted only for the balance of the time remaining on the original part(s) warranty. Twin Commander Aircraft Corporation reserves the right to repair or replace, and the use of overhauled/serviceable units to support parts which fail under warranty. Upon verification of warranty by Twin Commander, a credit will be issued to the Service Center with the warranty problem. If a returned part is not covered by warranty, the applicable Service Center remains liable for payment of the replacement part invoiced amount, plus vendor repair charges for the non-warranted unit(s). Requests for written warranty returns must be accompanied by a statement of warranty claim, model and serial number of aircraft, and a copy of logbook entry. Any other detailed information available concerning the warranty claim is appreciated. All parts ordered by a factory authorized Service Center, from Twin Commander Aircraft Corporation, and which parts are not identified as for warranty replacement at time of order, will be treated as new parts sales, and will not be subject to warranty credit.

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