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All equipment is shipped F.O.B. Destination. <br />7. Installation: <br />All equipment will be installed and adjusted by the customer in accordance with the instructions supplied. <br />8. Warranty Terms, Conditions and Exclusions: <br />a. FATS wazrants that the products will be in good working order in accordance with FATS' standard specifications, <br />subject to the exclusions set forth below. Warranty begins when title passes to the Customer. The Warranty <br />period is one (1) year for training systems and laser inserts, and three (3) months for system controlled fireazms <br />and other training devices. The Warranty period may be extended by the purchase of a maintenance contract, as <br />described herein. During the Warranty period, FATS will repair or replace, at its option, any product which is <br />defective in material or workmanship, without charge to the Customer, subject to the terms and conditions of the <br />Maintenance Procedure set forth below. <br />b. As a condition of Warranty, the Customer will advise FATS promptly of the change of location of any product. <br />c. If the Customer modifies any product during the Warranty period, and such modification interferes with or raises <br />the cost of maintenance, creates a safety hazazd, or may result in a product malfunction, FATS is entitled <br />immediately to terminate the Wazranty. Alternatively, FATS may agree to removal of such a modification and <br />continue the Warranty, provided the Customer pays the extra costs incurred by FATS arising from the <br />unauthorized modification. <br />d. Maintenance and repairs shall not be provided under Warranty, and are excluded, when damage, malfunction, or <br />service failure is caused by: <br />(1) Customer fails to follow FATS' installation, operation, or maintenance instructions; <br />(2) Customer undertakes repair, modification, or makes attachments to a product of any other device or <br />equipment; <br />(3) Customer's abuse, misuse, or negligence; or <br />(4) Power failures or surges, lightning, fire, flood, pest damage, accident, actions of third pazties, and any other <br />event outside FATS' reasonable control. <br />e. Except as specifically provided for herein, FATS, including its maintenance subcontractors, makes no additional <br />warranty, and conspicuously states: EXCEPT FOR THE SPECIFIC WARRANTY STATED HEREIN, <br />FATS MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, AND SPECIFICALLY <br />DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A <br />PARTICULAR PURPOSE. <br />9. Extended Warranty/Service Contract Terms, Conditions, and Procedure: <br />a. Extended warranty maintenance contracts may be purchased for the equipment either as part of this Agreement at <br />the time of purchase, or by a written agreement with FATS concluded within four months after the date of <br />delivery. A maintenance contract will extend the Warranty period by the sum of the Warranty plus the amount of <br />time specified on the maintenance contract. <br />b. System extended warranty or maintenance contracts can be purchased for: <br />(1) Twelve (12) months at 3 700.00 (without certified operators). <br />Twelve (12) months at 2 220.00 (with certified operators). <br />(2) Twenty-four (24) months at 5 300.00 (without certified operators). <br />Twenty-four (24) months at 3 180.00 (with certified operators). <br />(3) Thirty-six (36) months at 6 300.00 (without certified operators). <br />Thirty-six (36) months at 3 820.00 (with certified operators). <br />c. The following terms and conditions apply to repair and maintenance service: <br />(1) The hours during which maintenance support is normally provided by FATS ("coverage period") aze <br />between the hours of 8:30 a.m. and 5:30 p.m., Eastern Time, Monday through Friday, excluding holidays. <br />When authorized by the agreement, regional representatives and West Coast Service are accessible outside <br />of these coverage times for necessazy onsite or emergency service. <br />(2) FATS will begin remote diagnosis within three (3) coverage period-hours after notice of the trouble report <br />for a malfunction which degrades or stops system operation. <br />d. The following maintenance procedures apply under Warranty and Extended Service Plan: <br />(]) The Customer will call FATS during the coverage period. FATS will diagnose the malfunction from the <br />trouble report and telephone conversation(s), and advise the customer which component is most likely the <br />cause. <br />(2) FATS and the customer will determine the shipping carrier and timeliness requirements for a replacement <br />component, and FATS will pay shipping costs to the customer. <br />(3) When the customer receives the replacement component, the customer will telephone FATS during the <br />Initialed- <br />Initialed ~ Rev. 6/ 10/ 96 <br />