Document:

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                                                                   EXHIBIT 10.89

                       LIEBHERR CONSTRUCTION EQUIPMENT CO.

                              DISTRIBUTOR AGREEMENT

THIS DISTRIBUTOR AGREEMENT is made as of this 29th day of January, 1999, between
LIEBHERR CONSTRUCTION EQUIPMENT CO. ("Liebherr"), with offices at 4100 Chestnut
Avenue, Newport News, Virginia 23607, and WESTERN TRACTION COMPANY
("Distributor"), with offices at:

1333 Atlantic Street
Union City, CA 94587

7518 Pacific Ave.
Pleasant Grove, CA 95668

2330 East Date Ave.
Fresno, CA 93706

1195 East Glendale Ave.
Sparks, NV 89431

1. APPOINTMENT

Subject to the terms of this Agreement, Liebherr hereby authorizes Distributor
to distribute, sell, lease and service, and Distributor hereby accepts such
authorization to distribute, sell, lease and service, the Liebherr machine
models listed on Exhibit A attached hereto ("Machines"), all optional devices
and attachments offered for use with the Machines and all repair parts for the
aforesaid items (all of which are hereinafter referred to collectively as the
"Products"), directly to customers located in the "Primary Area" described
below.

2. AREA OF PRIMARY RESPONSIBILITY

(a) The area of primary responsibility of Distributor is:

California: All Counties North of and including Monterey, Kings, Tulare and
lnyo.

Nevada: the Counties of Churchill, Douglas, Esmeralda, Humboldt, Lyon, Mineral,
Pershing, Storey and Washoe

(the "Primary Area").

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3. RESERVATIONS AND RESTRICTIONS ON SALES

(a) Reservations. Liebherr reserves the right to sell or lease Products to the
following:

(i) Any national, state or local government or agency, or subdivision thereof;

(ii) Any national user with multiple state operations throughout the United
States or Canada;

(iii) Purchasers, lessees or other users of used or demonstrated Products;

(iv) Any customer engaged in, or any Liebherr distributor serving customers
engaged in, the extraction of minerals or ores, excluding the quarrying of
aggregates (the "Mining Industry") or the dredging, scrap handling or
logging/forestry industries;

(v) Any entity pursuant to an order accepted by Liebherr prior to the effective
date of this Agreement; and

(vi) Any entity for export from the Primary Area.

(b) Restrictions. Distributor shall not sell or lease Products to the following
without the prior written consent of Liebherr:

(i) Any customer engaged in the Mining Industry or the dredging, scrap handling
or logging/forestry industries; or

(ii) Any entity for export from the Primary Area.

4. DISTRIBUTOR ORGANIZATION AND FACILITIES

Distributor shall, to the satisfaction of Liebherr, maintain or cause to be
maintained within the Primary Area a well-trained organization with adequate
facilities and capabilities for the stocking, selling, leasing, delivery,
installation and service of Products to purchasers, lessees and other users (the
"Customers") who are located in the Primary Area. Distributor shall use its best
efforts to achieve optimum sales and profits for Distributor and Liebherr from
the sale, lease and service of Products to Customers in the Primary Area.

5. SALES, DELIVERY AND SERVICE RESPONSIBILITIES

(a) Sales and Service in Primary Area. Distributor shall be responsible for
soliciting business from Customers and potential Customers of the Products who
operate or maintain buying offices in the Primary Area. Distributor shall be
responsible for delivery, installation and service, including warranty service,
of Products sold or leased by Distributor in the Primary Area, and for stocking
repair parts in number and type sufficient to serve adequately the needs of
Customers in the Primary Area who have purchased Products. Distributor also
shall be responsible for furnishing any warranty or repair service for Products
of Customers located within the Primary Area, whether or not such Product was
sold by Distributor, on the same terms and at the customary rates charged by
Distributor for similar service to Customers who have purchased their Product
from Distributor.

(b) Sales and Service Outside Primary Area. If the Distributor sells or leases
to a Customer located outside of the Primary Area a Product that is still
covered under the Liebherr Warranty, Distributor shall furnish or cause to be
furnished, to the satisfaction of Liebherr, the same delivery, installation and
service, including warranty service for such Product, as Distributor is
obligated to furnish for

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Products sold or leased in the primary area. If Liebherr determines in its sole
discretion that the Distributor is not furnishing the aforesaid services
satisfactorily, Distributor shall pay to Liebherr, or Liebherr shall withhold
from Distributor, a percentage of the applicable discount to defray the cost of
providing to said user the aforesaid services, which percentage shall be
specified from time to time in the service policies of Liebherr.

(c) Products Sold by Other Distributors. If a Liebherr distributor other than
Distributor sells or leases to a Customer located within the Primary Area a
Product that is still covered under the Liebherr Warranty and Liebherr shall
have determined that the selling distributor is not furnishing satisfactory
service to such Customer, Liebherr may request that Distributor furnish service,
including warranty service, with respect to such Customer's Product the same as
if it had been sold by Distributor. If Distributor accepts such request within
thirty (30) days from the date of such request, Liebherr shall pay to
Distributor an amount that Liebherr determines Distributor has earned or will
earn by reason of services that have been or will be rendered, and Distributor
shall be obligated to furnish service, including warranty service, with respect
to such Customer's Product the same as if it had been sold by Distributor.
Determinations by Liebherr as to amount to be paid to Distributor, if any, are
final.

6. SALES BY MANUFACTURER

If Liebherr sells or leases to a Customer located in the Primary Area a Product
that is still covered under the Liebherr Warranty, and requests Distributor to
furnish service, including warranty service, for such Product, Liebherr will pay
to Distributor an amount specified from time to time in the service policies of
Liebherr if Distributor agrees to furnish such service. If Distributor accepts
such payment, Distributor shall be obligated to furnish service, including
warranty service, for such Product in the same manner as if such Product were
sold by Distributor.

7. PRICES, DISCOUNTS, TERMS, POLICIES, TITLE

Prices, discounts, terms and conditions of sale, finance plans, and sales,
service and parts policies are subject to change by Liebherr without prior
notice, and shall be as specified in price lists, discount schedules, order
confirmations, and terms of sale, sales, service and parts policies issued by
Liebherr from time to time. Liebherr will endeavor to give Distributor notice of
all such changes as soon as is reasonably possible. Distributor agrees to pay
for Products in accordance with the terms specified by Liebherr. Distributor
agrees to abide by the terms and conditions of sale and the sales, service,
parts and warranty policies of Liebherr as published and amended from time to
time by Liebherr. Title to Products delivered to Distributor shall remain with
Liebherr until the full purchase price thereof has been paid.

8. ORDERS; CANCELLATION OF ORDERS

(a) Orders. All orders placed hereunder shall be in writing, or if placed by
telephone or wire, shall be promptly confirmed in writing. No order submitted to
Liebherr by Distributor shall become effective unless and until it shall be
formally accepted by written notice to Distributor from Liebherr, and

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Liebherr, in its discretion, need not accept any order. Distributor may cancel
an accepted order only with written approval of Liebherr.

(b) Cancellation. Upon termination of this Agreement by Liebherr, all orders
hereunder to Liebherr by Distributor shall be canceled, except orders previously
accepted by Liebherr for Products sold by Distributor prior to receipt of
termination. Upon termination of this Agreement by Distributor or upon automatic
termination as provided in Section 16, Liebherr may cancel such unfilled orders
hereunder as may be specified by Liebherr.

9. RETURN OF SPARE PARTS

Distributor may return spare parts for Machines in accordance with the Liebherr
Parts Policy then in effect, transportation prepaid at Distributor's expense, to
Liebherr's Newport News, Virginia, warehouse or other nearer destination
specified by Liebherr.

10. RETURN OF PRODUCTS UPON TERMINATION

Upon termination of this Agreement, Distributor may within thirty (30) days
return to Liebherr F.O.B. Newport News, Virginia, at such time and by such
common carrier as Liebherr may designate, all Products returnable under Section
9, as well as all new Machines, new optional devices and new attachments for
Machines, all in good resalable condition and not previously sold, leased or
used.

11. CREDIT FOR RETURNED PRODUCT

(a) Inspection. Each Product returned under Section 9 or 10 of this Agreement
shall be subject to inspection by Liebherr. If Liebherr shall find such Product
to have been returned in compliance with the requirements of this Agreement, it
shall be credited to Distributor (i) in accordance with the Liebherr Parts
Policy then in effect, if such returned item is a spare part for a Machine, or
(ii) for all other Products, at the price paid to Liebherr or at the current
list price less the standard discount as published by Liebherr, whichever is
less.

(b) Return. If Liebherr shall find any returned Product not to have been
returned in compliance with the requirements of this Agreement, Distributor will
be so informed and such Product will be held for a period of thirty (30) days
for disposition as Distributor may direct for its account, and thereafter may be
disposed of at Liebherr's direction.

(c) Restocking Charge. Restocking charges for returned spare parts shall be in
accordance with the Liebherr Parts Policy then in effect.

12. REPORTS OF INVENTORY; FINANCIAL STATUS

Distributor shall furnish Liebherr, at the close of each fiscal year and at such
other times and as of such dates as may be reasonably specified by Liebherr,
reports as to Products on hand and statements

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showing the financial condition and operating progress of Distributor.

13. WARRANTY BY LIEBHERR

(a) Liebherr Warranty. Distributor understands and agrees that Liebherr extends
only the warranty attached as Exhibit B hereto (the "Liebherr Warranty") to
Customers of the Products. Replacement of defective parts directly to the
Customer shall be the obligation of the Distributor. The sole and exclusive
remedy of Distributor under the Liebherr Warranty shall be (i) the repair or
replacement of, or allowance of credit for, at Liebherr's option, any product
acknowledged by Liebherr to be defective which is returned to Liebherr in
accordance with Liebherr Warranty Policy then in effect, and (ii) the allowance
of a credit for Distributor's time reasonably required, as determined by
Liebherr, to repair or replace such defective parts, in accordance with the
Liebherr Warranty Policy then in effect.

(b) No Modifications. Distributor shall not extend or otherwise modify the
Liebherr Warranty or any limitations thereof with respect to any retail
purchaser, lessee or other user. In the event Distributor extends any additional
warranty, such as enlarging the scope or period of warranty or undertaking a
warranty of fitness for any particular purpose, or any other obligation not
encompassed in the Liebherr Warranty, Distributor shall be solely responsible
therefor and shall have no recourse against Liebherr with respect thereto.
Liebherr reserves the right to alter the Liebherr Warranty from time to time and
such changes shall be effective when published in the Liebherr Warranty Policy.
Distributor agrees to deliver a copy of Liebherr's then-current Liebherr
Warranty to each Customer of Products prior to or at the time of purchase or
lease of such product by the Customer.

(c) No Implied Warranty. THE LIEBHERR WARRANTY IS THE ONLY WARRANTY APPLICABLE
TO THE PRODUCTS AND IS EXPRESSLY IN LIEU OF ANY WARRANTIES OR CONDITIONS
OTHERWISE IMPLIED BY LAW, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE REMEDIES UNDER THE
LIEBHERR WARRANTY SHALL BE THE ONLY REMEDIES AVAILABLE TO THE OWNER OF PRODUCTS
OR ANY OTHER PERSON, AND LIEBHERR DOES NOT ASSUME ANY OTHER OBLIGATION OR
RESPONSIBILITY WITH RESPECT TO THE CONDITION OF PRODUCTS, NOR AUTHORIZE ANY
OTHER PERSON TO ASSUME FOR LIEBHERR ANY OTHER OBLIGATION OR LIABILITY.

14. NO LIABILITY FOR DELAY

No liability shall attach to Liebherr for direct, indirect or consequential
damages or expenses due to loss, damage, detention or delay in delivery of
Products resulting from acts or delays beyond its control.

15. USE OF NAMES

Distributor agrees: (i) not to use the Liebherr name, including the word
"Liebherr," or any trademarks used in connection with Products, as part of the
corporate or business name of

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Distributor, or in any manner which Liebherr considers improper, misleading or
detrimental to Liebherr's interest; and (ii) to cease, upon termination of this
Agreement, all use of the trade names and trademarks of Liebherr used in
connection with Products, or any simulations thereof, including any use that may
have been authorized by Liebherr.

16. TERM AND TERMINATION

(a) Term. This Agreement shall become effective immediately on the date of
execution by Liebherr as shown below, and shall remain in effect unless and
until terminated as hereinafter provided.

(b) Voluntary Termination. Either party hereto may terminate this Agreement,
without cause, by giving thirty (30) days' written notice thereof to the other
party, which notice shall be directed to the address of such party as set forth
herein, and shall be deemed given when deposited in the United States mail,
postage prepaid.

(c) Immediate Termination. Should either party hereto, either voluntarily or
involuntarily, be the subject of receivership, reorganization, bankruptcy or
insolvency proceedings, this Agreement may be terminated immediately by the
other party for cause, without notice. In the event that Distributor becomes
overdue in making payments for Products or otherwise violates any other term of
this Agreement, Liebherr may, at its option, terminate this Agreement for cause,
without notice.

17. DISTRIBUTOR NOT AGENT

Nothing in this Agreement shall be construed as appointing Distributor an agent
or legal representative of Liebherr. Distributor is not granted any authority to
create any obligation or responsibility on behalf of Liebherr, or to bind
Liebherr in any manner whatsoever.

18. ASSIGNMENT

Distributor may not assign or transfer this Agreement or any of the rights or
obligations hereunder without the prior written consent of Liebherr. Any merger,
consolidation, transfer of assets, event or transaction resulting (by operation
of law or otherwise) in a change of ownership or control of Distributor or
Distributor's business shall be deemed to be an assignment for purposes of this
Agreement. Liebherr may assign this Agreement to any affiliate of Liebherr in
the event of a reorganization or restructuring of Liebherr's business.

19. MISCELLANEOUS

This Agreement embodies all of the agreements and understandings between the
parties hereto, and cancels and supersedes all prior agreements in existence
between the parties. No course of prior dealings between the parties and no
usage of the trade shall be relevant to supplement or explain any terms used in
this Agreement. There are no oral or collateral agreements of any kind, and no
representative of Liebherr has any authority to waive any of the provisions of
this Agreement. The

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provisions of this Agreement may not be altered, modified, waived or
supplemented except by a written instrument or consent letter executed by a duly
authorized representative of each party. No delay or failure on the part of
Liebherr to exercise any right or remedy shall operate as a waiver thereof, and
no single or partial exercise by Liebherr of any right or remedy shall preclude
other or further exercise thereof or the exercise of any other right or remedy.
The section headings appearing herein are for convenience only, and shall not be
deemed to limit or modify the terms hereof. The copy of this Agreement retained
by Liebherr shall be considered the original and shall control in case of any
variation between it and the duplicate retained by Distributor. This Agreement
shall be governed by and construed under the laws of the Commonwealth of
Virginia, without reference to the laws of any other jurisdiction. If any
provision of this Agreement or its performance shall be held to be illegal or
unenforceable, such provision shall be suspended accordingly, and all other
provisions of this Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
dates hereinafter set forth.

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                                    EXHIBIT A

                                 MACHINE MODELS

EARTHMOVING

CRAWLER EXCAVATORS: Excavators with bucket, weighing 40,000 lbs. up to and
including 252,000 lbs. (Liebherr's current models R904 through R984B).

RUBBER TIRED EXCAVATORS: Excavators with bucket, weighing from 36,000 lbs. to
48,600 lbs. (Liebherr's current models A904 through A924).

CRAWLER LOADERS: 90 hp through 219 hp (Liebherr's current models LR611 through
LR641).

CRAWLER TRACTORS: 105 hp through 234 hp (Liebherr's current models PR7I2B
through PR742B).

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                                    EXHIBIT B

                                    WARRANTY

Liebherr Construction Equipment Co.(Liebherr) and the selling Distributor
warrant their product to be free from defects in material and workmanship under
normal use and service for a period of 1 year following delivery to the original
purchaser-user, or 2000 hours of use by all persons, whichever event first
occurs.

Liebherr's and the selling Distributor's sole obligation and the exclusive
remedy under this warranty shall be the repair or replacement, at Liebherr's
option, of any warrantable part acknowledged by Liebherr to be defective when
returned to the selling Distributor of Liebherr, transportation charges prepaid,
within the warranty period. Repairs to, or replacement of, warrantable parts
found by Liebherr to be defective shall be made by Liebherr or the selling
Distributor at no charge to the customer for the labor and warranted parts
required to make such repairs or replacements.

This warranty shall not apply to normal maintenance service, including, but not
limited to, oil changes, lubrications, hydraulic and fuel systems inspections,
cleaning or adjustment, brake inspections or adjustments, nor to the replacement
of service items, including, but not limited to, filters or filter elements,
brake linings, fuses, glow plugs, or V-belts, nor to any product which has been
damaged in any accident or by fire, flood or any Act of God, abused or misused,
or altered or repaired by anyone other than an authorized Liebherr Distributor.

IN NO EVENT SHALL LIEBHERR OR THE SELLING DISTRIBUTOR BE LIABLE FOR ANY
DELAY, WORK STOPPAGE, LOSS OF USE OF EQUIPMENT, LOSS OF TIME, INCONVENIENCE,
LOSS OF PROFITS, OR ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES
RESULTING FROM OR ATTRIBUTABLE TO, DEFECTS IN LIEBHERR PRODUCTS OR SERVICES,
WHETHER RESULTING FROM NEGLIGENCE, BREACH OF THE PROMISE TO REPAIR OR REPLACE
CONTINUED HEREIN, OR OTHERWISE.

THIS WARRANTY IS THE ONLY WARRANTY APPLICABLE TO LIEBHERR PRODUCTS AND IS
EXPRESSLY IN LIEU OF ANY WARRANTIES OR CONDITIONS OTHERWISE IMPLIED BY LAW,
INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE. THE REMEDIES UNDER THIS WARRANTY SHALL BE THE ONLY
REMEDIES AVAILABLE TO THE OWNER OF LIEBHERR PRODUCTS OR ANY OTHER PERSON, AND
NEITHER LIEBHERR NOR THE SELLING DISTRIBUTOR ASSUMES ANY OTHER OBLIGATION OR
RESPONSIBILITY WITH RESPECT TO THE CONDITION OF LIEBHERR PRODUCTS, NOR
AUTHORIZES ANY OTHER PERSON TO ASSUME FOR EITHER OF THEM, ANY OTHER OBLIGATION
OR LIABILITY.

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THE SELLING DISTRIBUTOR IS NOT AUTHORIZED TO MAKE ANY MODIFICATIONS OR CHANGES
TO THIS WARRANTY OR TO OTHERWISE MODIFY, ALTER OR CHANGE LIEBHERR'S OBLIGATIONS
HEREUNDER.

Liebherr reserves the right to make changes in design or add any improvement on
its products at any time without incurring any obligation to install same on
units previously delivered.

MODEL                               PIN (Product Identification No.)
Distributor                         Customer
                                    Date

                       LIEBHERR CONSTRUCTION EQUIPMENT CO.

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                                                                   EXHIBIT 10.90

                         Distributor Agreement (Cranes)
                                      2000

Parties Involved

The parties to this Agreement are Link-Belt Construction Equipment Company,
L.P., LLLP, a Delaware limited liability limited partnership, 2651 Palumbo
Drive, Lexington, Kentucky 40509-1267 (herein the Company"), and

Name: Western Traction Company

Business Address: 1333 Atlantic Street

City: Union City  State: CA     Zip: 94587 which is a (check one):

X  corporation, incorporated in the State of California

__  division of
    a corporation incorporated in the State of

__  partnership (list all partners and, if a limited partnership, indicate which
    are the limited partners)

__  sole proprietorship (individual proprietor is (herein "Distributor").

In consideration of the mutual covenants and promises contained herein, the
parties hereby agree as follows:

I. Distributor Appointment

1.1 Subject to the terms and conditions contained herein, the Company grants to
Distributor the non-exclusive right to purchase and resell those products listed
on the attached Schedule A (herein the "Products") in the Territory. The Company
may revise the list of Products from time to time without liability to
Distributor. Nothing herein shall be construed to prohibit Distributor from
selling at any price.

1.2 The Company may discontinue the production or sale of or modify the design
or material specifications of any Product therefore without any liability or
obligation to Distributor or its customers, including, without limitation, any
obligation to modify any Product previously ordered by Distributor.

1.3 Nothing in this Agreement shall constitute Distributor an agent of the
Company. Distributor is an independent contractor and has control of the details
of the performance of its obligations hereunder. Distributor shall not impose or
create any obligation or responsibility, express or implied,

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or make any promises, representations, or warranties on behalf of the Company,
other than as provided in Section 6.1 hereof.

II. Territory

2.1 The Company designates as Distributor's Territory the geographic area
described on the attached Schedule A (herein the "Territory"). Marketing
responsibility encompasses both sales and service of the Products. The Company
may revise Distributor's Territory from time to time without the Company
incurring any liability to the Distributor. The Company may refuse to ship a
Product to a location other than the Distributor's Territory. Distributor shall
not sell for delivery or shipment or otherwise transfer any of the Products
listed on Schedule G outside the United States and Canada, and shall not sell
such Products to those who, directly or indirectly, sell for delivery or
shipment or otherwise transfer such Products outside the United States and
Canada; provided that Distributor may sell such Products to customers in the
United States and Canada who themselves use the Products outside the United
States and Canada or who transfer the Products to affiliates for use (but not
resale) by those affiliates outside the United States and Canada.

2.2 Distributor shall use its best efforts to promote, sell, and service each of
the Products in its Territory and shall maintain a staff of trained sales and
service personnel adequate to cover Distributor's Territory properly. The
Company will evaluate Distributor's performance primarily on the basis of
Distributor's sales volume and promotional effort in the Territory. The Company
may, in its sole discretion, establish reasonable sales objectives for
Distributor and may consider those objectives, among other factors, in
evaluating Distributor's performance.

2.3 At its election, the Company may from time to time directly sell or solicit
the sale of the Products to any customers or prospective customers. Direct sales
or other transactions between the Company and any customer shall not create any
liability on the part of the Company to the Distributor.

III. Distributor Facilities and Inventory

3.1 Distributor shall maintain a suitable place of business within the Territory
that is sufficient, in the Company's judgment, to display, store, and service
the Products.

3.2 Distributor shall maintain such inventory of the Products as is sufficient,
in the Company's judgment, reasonably to meet the sales potential and product
support requirements in Distributor's Territory. Distributor shall comply with
any instructions issued by the Company regarding the storage, handling, and
maintenance of the Products.

IV. Prices and Terms of Sales and Delivery

4.1 All sales of the Products to Distributor shall be governed by the Company's
written pricing and security documentation policies, credit policy, price lists,
discount schedules, and terms and conditions of sale (including, without
limitation, payment therefore by Distributor) upon acceptance

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of order. The Company may change said policies, price lists, discount schedules,
and terms and conditions at any time and, when notice of said changes has been
given, all earlier inconsistent policies, price lists, discount schedules, and
terms and conditions shall automatically be superseded from and after the
effective date stated in such notices.

4.2 The Company reserves the right, in its sole discretion, to apply special
discounting on a case by case basis to an individual product or sale within the
Distributor's assigned territory in order to promote that Distributor's
development of that territory.

4.3 Prices stated in the Company's price lists shall apply only to Products with
standard specifications. At Distributor's request, the Company at its option may
provide Distributor with price quotations on Products having special or modified
specifications.

4.4 No purchase order shall be binding on the Company until accepted in writing
by a duly authorized officer or employee of the Company. Unless otherwise agreed
in writing in specific transactions, the Company may refuse to issue a quotation
or to accept any purchase order for any reason. Any provision contained in any
purchase order issued by Distributor to the Company which is additional to, or
inconsistent or conflicting with, any provision of this Agreement, or any of the
Company's then current standard terms and conditions of sale, shall not be
binding on the Company unless the Company assents to such provision in writing.

4.5 This Agreement applies only to Distributor's outlet or branch listed on the
first page hereof and such additional outlets, if any, listed on Schedule A.
Although Distributor may now have or hereafter acquire other outlets or
branches, or change the location of any of them, nothing herein shall obligate
the Company to sell or ship the Products on orders accepted by the Company to
any location not listed herein. The Company's responsibility for shipments shall
cease upon delivery to the transportation company, and any claim for shortages,
losses or damage occurring thereafter shall be made by Distributor directly to
the transportation company. A copy of any claims against the transportation
company for shortages shall be mailed to the Company for information purposes
within five (5) days after the arrival of the shipment at destination.

4.6 In addition to punctual payment for the Products, Distributor shall pay to
the Company on demand all expenses and charges caused by Distributor for
demurrage, reshipment, rerouting, storage and other similar charges with respect
to the Products ordered by Distributor, including without limitation expenses
resulting from Distributor's failure promptly to accept delivery of or pay for
such Products.

4.7 The Company shall not be liable to Distributor for any injury, loss, damage
or expense, whether direct, indirect or consequential, resulting from or arising
out of delays in delivery resulting from fires, strikes, lockouts, delays in
manufacture, transportation or delivery of materials, embargoes, insurrections
or riots, civil or military authority, car shortages, acts of God, acts of
government or any other causes beyond its reasonable control. The time for
delivery specified in any quotation or contract shall be extended during the
continuance of such conditions and for a reasonable time thereafter.

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4.8 If shortages of the Products occur because of economic, manufacturing, or
other conditions, including shortages of materials, the Company may allocate the
Products among its distributors and other customers on any basis that, in the
Company's sole judgment, shall be fair and reasonable. The Company shall not be
liable to Distributor by virtue of such shortage or allocation.

V. Reports and Inspections

5.1 Distributor shall deliver annually to the Company on a confidential basis a
copy of such financial statements as are satisfactory in form and certification
to the Company, within ninety (90) days after the close of Distributor's fiscal
year. Additionally, but only upon the Company's written request, Distributor
shall furnish such financial information at more frequent intervals. Such
statements and information may be used by assignees and agents of the Company.

5.2 A Credit Application is to be completed and returned, when requested, as
part of a periodic review of the Distributor's account.

5.3 If requested, at least once each fiscal year, Distributor shall provide the
Company with a report of inventory of the Company Products on forms satisfactory
to the Company. At its request the Company may observe the taking of
Distributor's physical inventory.

5.4 The Company may inspect Distributor's facilities, operations, and records as
related to Distributor's performance under this Agreement during normal business
hours.

VI. Warranty and Safety

6.1 The Company warrants the Products in accordance with its Warranty attached
hereto as Schedule B, as the same may be modified by the Company from time to
time and makes no other warranty, express or implied. Distributor shall make no
other warranty with respect to the Products on behalf of the Company.

6.2 Distributor represents that it is familiar with the Products, including (if
applicable to the Products covered herein) their safety features and safe
functional application, and that it is familiar with the requirements of the
safety codes and laws of the provinces in Distributor's Territory. Distributor
shall notify the Company promptly of any changes in such codes and laws which
become known to it and which would require changes in the safety features or
devices of the Products and shall not knowingly solicit orders for any Product
which would not comply with such codes and laws in the Distributor's Territory.

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VII. Advertising and Promotion

7.1 The Company may, in its sole discretion, directly advertise and promote the
Products. To assist Distributor in promoting sales, the Company may furnish such
promotional literature and other advertising aids as the Company deems
necessary. Such material shall remain the property of the Company.

7.2 In order that the Company may protect all trademarks, trade names, corporate
slogans, goodwill and product designations that the Company owns or uses
pursuant to license, Distributor shall not use any such marks, names, slogans,
or designations in any advertising copy, promotional material, signs, exhibits
or other written or printed material except in a form specifically approved in
writing by the Company.

7.3 The Products shall be resold by Distributor in Distributor's name, but shall
be advertised by Distributor as being furnished by the Company.

VIII. Training

8.1 From time to time the Company may, at its sole discretion, offer training in
the selling and servicing of the Products, which training shall be available to
Distributor's personnel at such locations as the Company may specify. If such
training is necessary in order for Distributor to fulfill its sales and service
obligations, Distributor's personnel shall participate in said training.
Distributor shall bear that portion of the expenses of its personnel in
attending such training as is deemed appropriate by the Company. The payment of
such training costs and microfiche maintenance costs shall not be considered as,
nor constitute a "Franchise Fee" as that term is used in any Franchise
Protection Act enacted by any province. This Agreement is not to be construed as
a Franchise Agreement.

IX. Taxes and Insurance

9.1 Distributor shall pay all license fees, sales, use, service use, occupation,
retailer's occupation, service occupation, personal property, and excise taxes
and any other fees, assessments, or taxes which may be assessed or levied by any
national, federal, provincial or local government and any departments and
subdivisions thereof, as a result of the performance of this Agreement or
against any of the Products ordered by the Distributor.

9.2 At its own expense, Distributor shall purchase from and maintain policies of
liability insurance and property damage insurance with insurance companies
satisfactory to the Company as follows:

                                       5
<PAGE>   6
(a) Comprehensive General Liability and Products Liability, covering
Distributor, its employees, and agents, in minimum coverage amount of
$1,500,000.00 combined single limit for personal injury and property damage; and

(b) All Risks of Physical Loss or Damage to the Products under Distributor's
direct or indirect control, with the Company named as a payee as its interest
may appear. Coverage shall be in an amount sufficient to prevent the Company
from sustaining any loss of amounts due or to become due to the Company on
Distributor's inventory and equipment.
Such policies shall not be cancelable prior to ten (10) days written notice to
the Company. Distributor shall furnish the Company with satisfactory evidence of
such policies of insurance prior to the effective date of this Agreement.

X. Patents, Trademarks, Confidential Information and Product Modification

10.1 Distributor shall not use any trademark or trade names, whether or not
registered, now or hereafter owned or used pursuant to license by the Company or
any mark or name similar thereto except in the manner and to the extend that the
Company may specifically consent in writing, except that Distributor may refer
to the Products by the trademarks which the Company uses in connection
therewith. Such trademarks may be changed at the sole discretion of the Company.
Distributor is permitted only to use such trademarks or trade names in
connection with its performance under this agreement and, despite such use,
Distributor shall not acquire any rights or interest thereto.

10.2 Distributor shall not remove from the Products any identifying marks placed
thereon by the Company and shall not add any identifying marks without the prior
written approval of the Company.

10.3 Distributor shall not alter, modify or add attachments to any Product that
do not meet the Company's specifications, without the written consent of the
Company. In no event shall Distributor alter or modify any Product purchased
hereunder, or the trademarks or trade names used in connection therewith by the
Company, in such a manner as will in any way infringe, impair or lessen the
validity of the patents, trademarks or trade names under which the Products are
made or sold, or as will cause the Products to infringe the patents, trademarks,
or trade names of any third party.

10.4 As to any alteration, modification or attachment to the Products which is
approved by the Company, the Company shall have a perpetual non-exclusive
royalty-free right to make, have made, use, sell, and lease goods embodying any
improvements to the Products, including attachments to and components thereof,
made or acquired by Distributor.

10.5 Without limiting the generality of Distributor's obligations under Section
11.5 hereof, if Distributor alters, modifies, or adds attachments to any
Products that do not meet the Company's specifications, and/or uses trademarks
or trade names in connection therewith other than those adopted and used by the
Company, Distributor will indemnify the Company and hold the Company completely
harmless from and against any patent infringement, unfair competition or
products liability claims brought against the Company by any third party on
account of such activities.

                                       6
<PAGE>   7
10.6 In the course of the performance of this Agreement, the Company may furnish
Distributor with technical information, manuals relating to the Products, list
of customers, information regarding the Company's methods of doing business and
other confidential business information and trade secrets. Both during and after
the term of this Agreement, Distributor shall not disclose such confidential
business information and trade secrets to any person other than its employees
and shall keep it in strict confidence and not use it for any purpose other than
Distributor's performance under this Agreement.

XI. Remedies and Indemnity

11.1 Except for any indebtedness of Distributor or security related thereto, any
action by the Company or Distributor pertaining to this Agreement must be
instituted within one year after the accrual of the claim upon which such action
is based.

11.2 Failure of either party at any time to require performance of any
provisions hereof shall not affect its right to require full performance thereof
at any time thereafter. The waiver by either party of a breach of any such
provision shall not constitute a waiver of any subsequent breach thereof or
nullify the effect of such provision.

11.3 In the event that Distributor is in default with respect to any of the
terms or conditions of or referred to in this Agreement, for seven (7) days
after receipt of written notice from the Company, the Company may, without
incurring liability to Distributor or its customers and without prejudice to any
other remedy of the Company, defer further shipments of the Products to
Distributor (whether or not the Company has accepted purchase orders from
Distributor with respect to unshipped Products) until such default is remedied.
The rights and remedies granted the Company herein are in addition to and not
exclusive of any other rights or remedies under any other agreement or any law.
The exercise by the Company of any of its rights hereunder or otherwise shall
not constitute an election of remedies or a waiver of any other right or remedy.

11.4 Distributor shall pay interest on all amounts due the Company which are in
default, as may be provided in the Company's then current terms and conditions
of sale to Distributor. The Company may apply any outstanding amount due to
Distributor against indebtedness owed by Distributor to the Company, whether due
or to become due.

11.5 As to acts or omissions of Distributor, its employees and agents,
Distributor shall indemnify and hold the Company harmless from and against any
and all claims, losses, obligations, liabilities, costs, and expenses (including
without limitation legal and other fees) arising from such acts or omissions,
including without limitations any such claims, losses, obligations, liabilities,
costs and expenses arising out of any breach of or failure to perform any of
Distributor's representations, warranties, covenants and agreements herein, or
arising out of claims of negligence or strict liability of the Distributor or
Product defects caused by Distributor.

                                       7
<PAGE>   8

11.6 As to acts or omissions of the Company, its employees and agents, the
Company shall indemnify and hold the Distributor harmless from and against any
and all claims, losses, obligations, liabilities, costs and expenses (including
without limitation legal and other fees) arising from such acts or omissions, or
arising out of claims of negligence or strict liability of the Company or
Product defects caused by the Company.

XII. Term and Termination

12.1 This Agreement shall become effective on the date of its signature by the
Company for a term expiring at 11:59 p.m. on the expiration date set forth on
the signature page hereof, unless sooner terminated as hereafter provided.

12.2 This Agreement may be terminated at any time by the mutual consent of the
parties.

12.3 This Agreement shall automatically terminate upon the happening of any of
the following:

(a) The expiration of the term hereof.

(b) The discovery of an untrue statement of a material fact, or omission to
state a material fact necessary to make the statements contained therein not
misleading, in any written information or statement furnished by Distributor to
the Company in connection with Distributor's application for appointment as the
Company's distributor or the negotiation or performance of this Agreement.

(c) The death, incapacity, removal or withdrawal from the management of
Distributor of any principal owner/operator or the voluntary or involuntary
transfer of any substantial ownership interest in Distributor.

(d) The conviction of Distributor or of any principal owner/operator of any
crime which, in the opinion of the Company, may adversely affect the goodwill of
Distributor or the Company or the operation of the business to be carried on by
Distributor pursuant to this Agreement.

12.4 This Agreement also may be terminated upon the happening of any of the
following:

(a) A change in the management, operation, personnel, or credit standing of
Distributor or the Company which the other party, in its sole discretion, deems
adverse to its interest.

(b) Breach of or failure to perform any of the obligations hereunder or referred
to herein by either party, including but not limited to Distributor's failure to
develop the sales and services of the Company's Products in the Territory to the
Company's expectation, maintain a proper inventory, or to conduct its business
in accordance with any requirements set forth herein to be performed by
Distributor, or Distributor's export of Products or sale for export in violation
of the requirements of this Agreement.

                                       8
<PAGE>   9

12.5 Method of Termination:

(a) If termination is instituted under the provisions of Section 12.3(b), (c) or
(d) above, a registered or certified letter or telegram confirmed by letter,
will constitute sufficient notice that the Agreement is terminated immediately
on the date of notice.

(b) If termination is instituted under the provisions of Section 12.4 hereof,
the following steps will be taken:

(i) The party wishing to terminate shall notify the other party in writing
stating the reasons for dissatisfaction. A thirty-day period shall be given the
other party to answer and discuss the areas of difference. If the parties do not
resolve their differences within the thirty-day period, the agreement will
terminate 30 days thereafter.

(ii) Nothing in the foregoing is meant to prevent the parties at any time by
mutual consent from terminating the agreement without going through the
prescribed steps and waiting period.

(c) If the Agreement is not renewed under the provisions of Section 12.3(a)
above, a registered or certified letter, or telegram confirmed by letter, shall
be sent no less than sixty (60) days prior to the expiration of the Agreement by
the party that intends not to renew the Agreement.

12.6 Nothing contained herein shall be deemed to create any express or implied
obligation on either party to renew or extend this Agreement or, if Distributor
is continued as the Company's distributor, to create any right to continue such
relationship on the same terms and conditions contained herein. Each party, in
its sole discretion, may determine, for any reason whatsoever, not to renew or
extend this Agreement or to continue such relationship on the terms and
conditions contained herein. The Company may, in its sole discretion, continue
to deal with the Distributor after the termination date of this Agreement. Such
continued dealing, without the execution of a new Agreement, will not create any
obligation to extend or renew this Agreement. Such continued dealings shall be
terminable at the will of either party.

XIII. Effect of Termination

13.1 Neither party, by reason of the termination or nonrenewal of this
Agreement, shall be liable to the other for compensation, reimbursement, or
damages because of the loss of anticipated sales or prospective profits or
because of expenditures, investments, leases, property improvements or other
matters related to the business or goodwill of the parties.

13.2 All sums owed by either party to the other shall become due and payable
immediately upon termination. Either party, at its option, may offset any sums
due or to become due to it against any sums owed by it.

13.3 Upon termination of this Agreement, Distributor shall immediately
discontinue use of any and all trademarks and trade names owned or used pursuant
to license by the Company, including without limitation use in Distributor's
letterheads, advertising, and name. Distributor shall not thereafter use

                                       9
<PAGE>   10

any such mark or name or any mark or name tending to give the impression that
any relation between the Company and Distributor still exists, and Distributor
shall immediately deliver to such address as the Company specifies all technical
information, price lists, catalogs, drawings, designs, engineering photographs,
samples, literature, sales aids, customer lists and other confidential business
information and trade secrets of the Company in Distributor's possession.

13.4 Upon termination, the Company shall be relieved of any obligation to accept
any new orders or make further releases on existing blanket orders, and may at
its option cancel all of Distributor's unshipped orders for the Products,
irrespective of previous acceptance by the Company, except those which are
proved to the Company's satisfaction to have been sold by Distributor to
customers prior to giving of notice of termination or those as to which
Distributor has posted bid bonds prior to such notice. The Company shall have no
obligation or liability to Distributor or its prospective customers in
connection with any such cancellations. If the Company accepts such an order for
Products which ordinarily require delivery and service by Distributor and for
which distributor is separately compensated by the Company, the latter at its
option may make other arrangements for such delivery and service and, if so,
will reduce the normal discount by that portion as may be specifically provided
for such delivery and service. Upon termination by Distributor, if Distributor
also seeks to cancel unshipped orders in process, Distributor shall pay the
normal cancellation charge which may be set forth in the sales documents
relating to such orders.

13.5 The Company's acceptance of any order by Distributor for the Products after
the termination of this Agreement shall not be construed as a renewal or
extension of this Agreement, nor as a waiver of termination, but in the absence
of a new written agreement executed by the Company, all such transactions shall
be governed by the terms and provisions of this Agreement.

13.6 Upon termination, the disposition of the Products purchased by Distributor
from the Company and in Distributor's possession, shall be governed by the
Company's then current written policy relating to returned Products. A copy of
the Company's now current policy, marked Schedule C, is attached hereto for
informational purposes only.

XIV. Application and Construction of Agreement

14.1 This Agreement is binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, executors, legal representatives,
successors and assigns, except that Distributor shall not assign this Agreement,
or any interest herein including rights and duties of performance, without the
written consent of the Company. No assignment made without the Company's consent
shall relieve Distributor from any of its obligations under this Agreement.

14.2 This Agreement shall not be binding upon the Company until signed for the
Company by its duly authorized officer or employee. No agent or representative
of the Company has any authority to vary the terms and conditions contained
herein or to make any representation, statement, warranty, or agreement not
expressed herein.

                                       10
<PAGE>   11

14.3 Laws of the Commonwealth of Kentucky shall govern the construction of this
Agreement and the rights, remedies and duties of the parties hereto. In the
event of any litigation arising out of this Agreement or the transactions
contemplated thereby, the parties agree that any action or suit shall be brought
in a court of record in the County of Fayette, Commonwealth of Kentucky, or in
the United States District Court of the Eastern District of Kentucky, and the
parties hereby consent to the venue and jurisdiction of such courts.

14.4 Except for changes by the Company permitted under the Agreement, including
changes in the various Schedules attached hereto or in the price, discount
schedules, design, terms of sale, or specifications of the Products, no
amendment or modification of this Agreement or any portion thereof shall be
valid unless executed in writing by both parties. Any written amendment or
modification which is executed by both parties shall be binding upon them
notwithstanding any lack of consideration.

14.5 All understandings and agreements, written or oral, heretofore had or made
between the parties with respect to any of the subject matters herein, are
merged into this Agreement which alone fully and completely expresses their
agreement.

14.6 The descriptive headings in the Agreement are inserted for convenience only
and do not constitute a part of this Agreement.

XV.  Notice

15.1 Any notice required or permitted herein shall be in writing and shall be
hand delivered or mailed, postage fully prepaid, properly addressed to the party
to be notified at the address shown above or the last know address given by such
party to the other. Any such notice shall be considered to have been given when
hand delivered or on the second business day after it has been deposited in the
mails in the manner herein provided.

XVI. Distributor Service Obligations

16.1 Some of the products furnished by the Company are of such nature, size,
and/or complexity that sales and goodwill depend upon prompt and competent (a)
delivery, installation, and start-up field services, (b) in-warranty services,
and (c) post-warranty services, of a type or extent which may not be required by
other of the Company's products. If the Products covered by this Agreement are
of the former type, then the parties hereto further agree that the nature and
extent of such services, and the means of compensating Distributor therefore,
are set forth in the attached Schedule D, as it may hereafter be amended by the
Company from time to time.

XVII.  Schedules

17.1 The following Schedules are attached hereto and made a part hereof, subject
to the right of the Company unilaterally to amend them from time to time:

                                       11
<PAGE>   12

SCHEDULE A        ADDITIONAL DISTRIBUTOR LOCATIONS COVERED BY THIS AGREEMENT
                  PRODUCTS AND DISCOUNTS
                  TERRITORY

SCHEDULE B        MACHINE WARRANTY AND LIMITATION OF LIABILITY

SCHEDULE C        RETURN OF PRODUCTS

SCHEDULE D        DISTRIBUTOR MACHINE DELIVERY SERVICE AND WARRANTY SERVICE

SCHEDULE E        PRICES AND TERMS

SCHEDULE F        MACHINE CANCELLATION POLICY

SCHEDULE G        MACHINE EXPORT RESTRICTION

                                       12
<PAGE>   13
IN WITNESS WHEREOF the parties have executed this Agreement including attached
Schedules intending to be bound thereby:

                                       13
<PAGE>   14
                                   SCHEDULE A

I. ADDITIONAL DISTRIBUTOR LOCATIONS COVERED BY THIS AGREEMENT:

Fresno, California
Pleasant Grove, California
Sparks, Nevada

II. PRODUCTS AND DISCOUNTS: Subject to the Company's unilateral right to amend,
add to, delete from, and otherwise alter this Schedule in the future, the
products covered by this agreement and the discounts from the suggested list
prices applicable to items purchased are as follows:

<TABLE>
<CAPTION>
PRODUCTS                                                               DISCOUNTS
<S>                                                                    <C>
1. Hydraulic Truck Cranes                                                 20%
Hydraulic Rough Terrain Cranes                                            20%
Hydraulic All-Terrain Cranes                                              20%
Lattice Boom Crawler Cranes                                               20%
Lattice Boom Truck Cranes                                                 20%

2. Parts: Repair parts for all above products, all prior production
versions of the same and all obsolete products of the same type
in the Distributor's "Territory".                                       Varies
</TABLE>

In all cases, the selling Distributor shall be responsible for delivery and
service of the machine unless the Company, at its sole discretion, determines
otherwise. If, at the discretion of the Company, it is determined that the
selling Distributor shall not deliver and service the machine, the Company will
make arrangements to have this service performed. In this event, the Company
will withhold, at the time of invoicing a percentage in accordance with the
Service Policy and Procedure Manual.

III. TERRITORY:

In the state of California, all counties north of and including Monterey, Kings,
Tulare and Inyo. The entire state of Nevada except Lincoln and Clark counties
and except the south half of Nye County.

                                       14
<PAGE>   15
                                   SCHEDULE B

MACHINE WARRANTY AND LIMITATION OF LIABILITY

The products furnished by the Company, exclusive of used or rebuilt machinery or
equipment, are subject to the following warranty:

(A) Warranty.

All of the Company's products are of high quality and are manufactured in
conformity with the best commercial practices in the various lines. The Company
warrants all hydraulic cranes and lattice boom cranes furnished by it to be free
from defects in material and manufacture at the time of shipment for twelve (12)
months from date of shipment or 1500 hours of operation, whichever shall occur
first. The Company will furnish without charge, F.O.B. point of shipment,
replacements for such parts as the Company finds to have been defective at the
time of shipment, or at the Company's option, will make or authorize repairs to
such parts, provided that, upon request, such parts are returned, transportation
prepaid, to the point of shipment.

This warranty shall not apply to any product which has been subjected to misuse;
misapplication; neglect (including, but not limited to, improper maintenance);
accident; or improper installation, modification (including, but not limited to,
use of unauthorized parts or attachments), adjustment, or repair. Engines,
motors, and accessories furnished with the Company's products, but which are not
manufactured by the Company or any affiliated companies, are not warranted by
the Company but are sold only with the express warranty, if any, of the
manufacturers thereof. THE FOREGOING IS IN LIEU OF ALL OTHER WARRANTIES, WHETHER
EXPRESS OR IMPLIED (INCLUDING THOSE OF MERCHANTABILITY AND FITNESS OF ANY
PRODUCT FOR A PARTICULAR PURPOSE), AND OF ANY OTHER OBLIGATION OR LIABILITY ON
THE PART OF THE COMPANY.

(B) Limitation of Liability.

IT IS EXPRESSLY UNDERSTOOD THAT THE COMPANY'S LIABILITY FOR ITS PRODUCTS,
WHETHER DUE TO BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE,
IS LIMITED TO THE FURNISHING OF SUCH REPLACEMENT PARTS, AND THE COMPANY WILL NOT
BE LIABLE FOR ANY OTHER INJURY, LOSS, DAMAGE, OR EXPENSE, WHETHER DIRECT OR
CONSEQUENTIAL, INCLUDING BUT NOT LIMITED TO LOSS OF USE, INCOME, PROFIT, OR
PRODUCTION, OR INCREASED COST OF OPERATION, OR SPOILAGE OF OR DAMAGE TO
MATERIAL, ARISING IN CONNECTION WITH THE SALE, INSTALLATION, USE OF, INABILITY
TO USE, OR THE REPAIR OR REPLACEMENT OF, THE COMPANY'S PRODUCTS.

The Company reserves the right to make alterations or modifications in their
equipment at any time, which, in their opinion, may improve the performance and
efficiency of the Product. They shall not be obliged to make such alterations or
modifications to Products already in service.

                                       15
<PAGE>   16
Any operation beyond rated capacity expressly prohibited in the operating
instructions or safety manual furnished with the machine, or any adjustment, or
assembly procedures not recommended or authorized in the operating or service
instructions shall void such warranty.

                                   SCHEDULE C

RETURN OF PRODUCTS

New, unused machines of standard manufacture purchased by the Distributor from
the Company, may be repurchased at the sole discretion of the Company. Further,
the Company may, in its sole discretion, elect to accept a return of such
machine for credit. All such returns or repurchases shall require the prior
written approval of the Company. In addition, the following terms and conditions
shall apply to a return or repurchase of parts.

(A) In the event of termination of the Agreement under any of the provisions of
Article XII, the Company agrees, subject to the above, to purchase from the
Distributor such parts in the Distributor's stock which the Distributor
previously has purchased from the Company. Also subject to the above, if the
return of such parts is made while this Agreement remains in effect, such return
shall be for credit to be applied on future purchases. The purchase price or
credit shall be made in accordance with the Parts Policy and Procedure Manual.

(B) All repurchased or returned parts must be in accordance with the Parts
Policy and Procedure Manual.

(C) If the returned or repurchased parts require reconditioning, the cost of
such reconditioning will be deducted from the price paid or credit issued.

(D) All returned or repurchased parts must be shipped and delivered by
Distributor F.O.B. to the site specified by the Company.

(E) If requested by the Company, the Distributor shall furnish the invoice or
order number on which parts were originally purchased.

                                       16
<PAGE>   17
                                   SCHEDULE D

DISTRIBUTOR MACHINE DELIVERY SERVICE AND WARRANTY SERVICE

The company and distributor recognize that the products are of such a
specialized technical character that sales thereof and customer goodwill depend
upon follow-up services by trained parts and service personnel. This applies to
all sales of products by Distributor irrespective of place of delivery or use of
the products. Accordingly, Distributor agrees as follows:

(1) In all cases the selling Distributor will provide adequate delivery service
and warranty service on all products unless the Company in its sole discretion
determines otherwise. In the later event, the Company will arrange for these
services to be performed and a percentage in accordance with the Service Policy
and Procedure Manual will be withheld at time of invoicing. "Delivery service
and warranty service" includes but is not limited to performing all service
necessary at the time of delivery of products to Distributor's customers, and
servicing all warranty claims on products sold by Distributor. A Pre-Delivery
Inspection Report (Product Evaluation), Delivery Report, follow-up inspection at
approximately six (6) months or 1000 hours of operation and a final inspection
at twelve (12) months or 1500 hours of operation are required.

(2) When the Company requests Distributor to perform within Distributor's
Territory delivery service and/or warranty service on a product not sold by
Distributor, Distributor will do so.

(3) The Company will reimburse the Distributor for warranty labor and costs as
specified in the Company's Service Policy and Procedure Manual.

(4) The Distributor shall promptly furnish all reports required with regard to
deliveries, service and warranties.

(5) If Distributor fails to perform the obligations required of it in this
Schedule D, the Company, in its sole discretion, may perform, or cause to be
performed, such obligations.

(6) In all cases where the machine is for delivery outside the contiguous United
States and Canada, a percentage in accordance with the Service Policy and
Procedure Manual will be withheld (with the exception of delivery within the
selling Distributor's Territory) and the Company will arrange for delivery and
service to be performed.

(7) The Distributor accepts the responsibility of providing machine campaign
support on all units located within its Territory, whether sold under this
Agreement or otherwise.

                                       17
<PAGE>   18
                                   SCHEDULE E

                                PRICES AND TERMS

(A) Machines. Prices to the Distributor for machines shall be determined from
(1) the Company's suggested price lists (as changed by the Company from time to
time) in effect at the time of order; or billing F.O.B. point of shipment,
prepared for domestic shipment, less (2) the applicable discounts that may be in
effect at time of order.

(B) Terms - Machines. Terms of payment for machines are net thirty (30) days.

(C) Parts. Prices to the Distributor for parts shall be the net price determined
from the Company's published parts price lists, as changed by the Company from
time to time, in effect at the time and place of order. Such lists, and the
schedule and conditions accompanying them, shall be considered a part of this
agreement.

(D) Terms - Parts. Terms of payment for parts are net 30 days from date of
invoice.

(E) Distributor shall be entitled to no discount for parts furnished warranty
adjustments

                                       18
<PAGE>   19
                                   SCHEDULE F

                           MACHINE CANCELLATION POLICY

The following constitutes the Company's policy regarding cancellation of orders
for machines manufactured or offered by it.

All machine orders placed with the Company are accepted as firm orders.

Order acceptance occurs when the sales order is issued by the Company confirming
to the Distributor entry of the order, sales order number, a price and a
shipping date.

Orders for machines which are special in nature, which require special
engineering and include nonstandard items are non-cancelable at the time of
order acceptance and will be so noted on our sales order acknowledgment.

In the case of all other machines offered for sale by the Company, cancellation
will be accepted if the Company is notified by the 15th day of the month two
months prior to the month of scheduled shipment. For example, for machines
scheduled for shipment in September, the Company must be notified no later than
July 15th. In the absence of notification in accordance with the above schedule,
machines on order will be shipped and invoiced to the ordering Distributor
during the month originally scheduled.

                                       19
<PAGE>   20
                                   SCHEDULE G

                           MACHINE EXPORT RESTRICTION

The following Products have export restrictions as outlined in "II Territory"
paragraph 2.1:

LS-138H11         HC-238H
LS-208H11         HC-248H
LS-218H           HC-278H
LS-238H
LS-248H11
LS278H

                                       20

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