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2.9

Warranty

2.9.1.

The Manufacturer warrants that the Forklift trucks and each component thereof will be free from all defects in design, materials, equipment, and workmanship, for a period of twelve(12) months or 2,000 operating hours from the Acceptance Date by ASPA (whichever occurs first). The warranty period will be extended by the remaining unused period for any replacement occurring during the warranty period. In the event that any part of the Forklift trucks or their components appears to be defective in design, manufacture, materials, equipment, fabrication, or workmanship within the period of warranty, ASPA will immediately notify the

Manufacturer

in

writing

or

by

telefax

of

the

alleged

defect

or

failure.

The

Manufacturer will thereupon promptly correct any defect or failure ASPA, or will authorize ASPA to make, for the Manufacturer's repairs or replacements as may be necessary to correct the defect

without cost to account, such of failure. No

allowance will be made for unless and until ASPA has

any repairs or replacements made by given the Manufacturer notice of the

ASPA, or others, alleged defect or

failure prior to the commencement of such repairs or replacements. the defect is such as to interfere with ASPA's operation and use of trucks, ASPA may, after notification, proceed forthwith to repair the expense of the Manufacturer.

However, if the Forklift same at the

      • 2.9.2.

        During the warranty period all service truck fees/costs shall be for the account of the Manufacturer. There shall be no cost to ASPA for service truck/personnel mobilization expenses to get the service truck/personnel to ASPA site for warranty service during the warranty period.

      • 2.9.3.

        In the event later inspection demonstrates that such defect or failure was not due to the Manufacturer's design, or to any work performed, or to any materials or equipment furnished, pursuant to this contract, the costs of such repairs, or replacements, whether made by the Manufacturer or others, will be for ASPA's account, and ASPA will further reimburse the Manufacturer substantiated necessary costs incurred by the Manufacturer in making its inspection.

2.10

Bonds

The Manufacturer will, within ten (10) days following the execution of this Agreement, deliver to ASPA Performance and Maintenance Bonds in the form shown in Appendix A and B hereof, guaranteeing:

      • 2.10.1.

        Letter of Credit in the form of Appendix A (or ASPA approved Performance Bond) in an amount equal to 40% of the Contract Price guaranteeing Manufacturer’s performance to the terms of this agreement until the Final Acceptance Date of the Forklift trucks by ASPA.

      • 2.10.2.

        Maintenance of Warranty in the form of Appendix B against defects in materials and workmanship in an amount equal to 10% of the Contract Price for twelve (12)

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