ONE YEAR LIMITED WARRANTY

1. Mid-America Car, Inc.—Locomotive (“MAC”) warrants a) that all work performed by MAC hereunder shall be done in a workmanlike manner; b) that all material provided by MAC shall be free from defects; and c) that the work shall conform to any drawings, specifications and descriptions furnished or specified by Purchaser. MAC assigns to Purchaser any manufacturer’s or supplier’s warranties as to goods sold hereunder. This Warranty shall extend for a period of one (1) year from the shipment date.

2. MAC’s obligation under this Warranty shall be to correct a defect in workmanship or a deviation from specifications (the “Defect”) that is disclosed to MAC’s satisfaction. The Defect shall be corrected by repair or replacement at MAC’s option, and such correction shall fulfill MAC’s obligation under this Warranty. It is understood that MAC shall not be responsible for any special, indirect, incidental or consequential damages or any other damages resulting from a Defect and that MAC will not be responsible for failures due to O.E.M. or other equipment recalls.

3. All warranties, expressed or implied, including but not limited to the warranties of merchantability or fitness for a particular purpose, except the expressed warranties set forth above, are hereby disclaimed. MAC neither assumes nor authorizes any person to assume responsibility for any other or different liability in connection with the work or material used, and there are no oral agreements or other warranties collateral to or affecting this agreement.

4. Purchaser shall give written notice to MAC of any defect covered by this Warranty within thirty (30) days after discovery. Warranty tags may be obtained by writing or calling Mid-America Car, Inc. MAC shall, within a reasonable time after receipt of such notice from Purchaser, repair or replace, as appropriate, any item which is determined to be defective in material or workmanship during the period of the Warranty. Purchaser will return any defective unit or component to MAC at MAC’s shop where work was performed, freight prepaid, and after completion of any required repair or replacement, MAC shall redeliver such unit or component to Purchaser, freight collect.

5. This is a limited warranty. Alteration, removal of parts, disassembly, abuse, improper use, or attempted repair without authorization voids this limited warranty.