SAMPLE COMPANY                                        Page 1 of 4
SOP # 19-5  Revision: 0                Prepared by:             _
Effective Date:                        Approved by:             _


Title:         WARRANTY AND SERVICE POLICIES

Policy:   The company will provide a three year limited warranty
          on all products and will ensure prompt, courteous and
          responsible service for all customers.  The company
          will provide replacement parts and components for
          servicing of our equipment at reasonable costs to
          customers.

Purpose:  To describe the company's warranty coverage and service
          programs.

Scope:    This procedure applies to all products manufactured and
          sold by the company.

Definitions:

     Limited Warranty - A limited warranty is any warranty that
     does not meet the standards of a "full warranty".  For
     example, a full warranty implies:

     1.  The warrantor will fix or replace any defective product,
     including removal and reinstallation if necessary, free of
     charge.

     2.  The warranty is not limited in time (i.e., three years).

     3.  If the product cannot be repaired or has not been
     repaired after a reasonable number of efforts to repair it,
     the customer may choose between a refund or a replacement.


Procedures:

1.0  Warranty Coverage

1.1  The company provides a three (3) year parts and 90 days
     labor/shipping warranty on all products manufactured or
     private labeled by the company (See Exhibit 1 for the
     company's complete warranty).

     If a product malfunctions during the first 90 days after it
     is delivered to a customer, the company will be responsible
     for all costs associated with repairing the item including
     the cost of replacement parts, shipping charges for return
     of the item, and the cost of labor to repair the equipment
     by a company employee or a contracted third-party service
     technician.
WARRANTY AND SERVICE POLICIES                         Page 2 of 4


     After the first 90 days but within three years of purchase,
     if a product malfunctions, the company will only be
     responsible for the cost of replacement parts.  The customer
     will be responsible for any shipping charges incurred and
     the cost of labor to repair the item.

     The company will also honor other manufacturer's warranties
     for their full coverage for products sold by us as a dealer
     for that product.

1.2  Items not covered - The company will not be responsible for
     equipment malfunctions that are the result of damage from
     accidents or misuse by the customer.  The company will also
     not cover "supply" type items sold with the equipment (e.g.,
     light bulbs, filters, etc.).


2.0  Service Programs

2.1  The company will provide three programs for servicing and
     supporting the use of our products.  These programs apply to
     products both under warranty coverage and non-warranty.
     Customer Service is responsible for determining the most
     appropriate and efficient method for servicing our products
     under the individual circumstances.

     Telephone Support - The company will provide at no charge,
     toll-free telephone support service to customers for as long
     as they use their equipment.  This coverage, within reason,
     will include answering any question regarding the use,
     maintenance, service or trouble shooting of the equipment.

     Factory Service - The company will repair any equipment at
     its facility.  Warranty coverage will provided according to
     the terms of the applicable warranty.  Non-warranty repairs
     will be provided at reasonable costs for parts, labor and
     actual shipping costs.  Labor costs will be charged at a
     rate of $40.00  per hour with a quarter hour minimum.

     On-Site Service - The company has contracted with a third-
     party service company for on-site service of our products
     throughout the country.  The third-party service company can
     dispatch one of their service technicians to our customer's
     location.  For warranty coverage, the customer or service
     technician must first contact our company's Customer Service
     for approval to proceed before traveling and attempting to
     repair the equipment.  Any unauthorized service calls may
     not be reimbursed.  For non-warranty work, the customer will
     be responsible for paying the service technician directly
     for any repairs made.
WARRANTY AND SERVICE POLICIES                         Page 3 of 4


3.0  Parts Pricing

3.1  The selling price of service parts will be the lower of the
     average market price for the part or component or a standard
     150% markup on the company's cost.

     To determine the service selling price, simply take our cost
     times 2 1/2.  For example, a part which costs the company
     $10.00 would have a service price of $25.00 (10.00 X 2.5).
     This will yield the company a 60% gross margin on all
     service parts.  Prices should be rounded to the nearest 5
     cents.


3.2  Shipping and Handling - A handling charge of $5.00 will be
     added to the actual amount of freight on the customer
     billing.  For expedited shipments to be shipped within 24
     hours, a $15.00 rush charge will be assessed instead of the
     normal $5.00 handling charge.