June 1, 1964

DL #120

Gentlemen:

We are sure you will be pleased to learn that a Service Parts Return Program to your Parts Distributor has been initiated. With this new program, the inventorying of service parts at the dealer level should be stimulated and quicker service to the customer should result.

The mechanics of this program are quite simple. Each dealer will be permitted to return to his Parts Distributor up to 5% of the OMC parts and propellers he has purchased during the last fiscal year. (October 1 to September 30). This percentage is to be applied to the dealers’ total annual purchases of OMC parts and propellers based on the dealer cost of these parts. The Parts Distributor will issue a credit only on the parts returned. No cash refund will be made.

All parts having an OMC part number and OMC propellers are eligible for return for credit. Accessories, gaskets, gasket sets, decal sets and paint cannot be returned for credit.

All parts returned to the Parts Distributor must be in new and saleable condition and must be in the original OMC package where applicable. Any parts which show evidence of rust corrosion, having been used, etc., will not be accepted by the Parts Distributor. Also, all parts returned must have an extension value of at least one dollar ($1.00). This means, for example, that three items at $.03 each could not be returned.

As of October 1st each year, your assigned Parts Distributor will notify you of the total amount of parts which you may return to him for credit. The parts which you wish to return must be packed in boxes with a packing slip enclosed, listing in numerical order the part numbers and the quantities of each part number being returned. At the same time a duplicate of the packing list must be mailed to the Parts Distributor. All parts returned to the Parts Distributor are to be shipped freight prepaid.

DL #120

Page 2

Obviously the Parts Distributor maintains the right to verify all quantities of individual parts and to return any parts not properly packed or identified or in non-saleable condition.

All parts returned will be subject to a 10% handling charge.

We strongly feel this parts return program will be of great value to all Johnson dealers in improving the stocking of service parts inventories. With adequate service parts inventories, improved and faster service can be offered your customers with a resultant increase in service profits.

Cordially,

JOHNSON MOTORS

L. W. Eppel

Service Manager

LWE:eb

P.S. For the first year, as a special consideration, you may return 5% of parts which have been purchased during the past three fiscal years. Your Parts Distributor will advise you of the amount you may return this first year. After the first year, the program as stated in the body of this letter will apply.