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1/7 K --- - ---- - - - -- ---- Customer Agreement - - --- - - - --- ----- ---'- Part 3 - Machines 3.1 Title .-. When we accept your order, we agree to sell you the Machine described in a Transaction Document. We transfer title to you or, if you choose, your lessor when we ship the Machine, However, we reserve a purchase money security interest in the Machine until we receive the amounts due. For a feature, conversion, or Üpgrade involving the removal of parts which become our property, we reserve the security interest until we receive the amounts due and the removed parts. You agree to sign an appropriate document to permit us to perfect our purchase money security interest. 3.2 Risk of Loss We bear the risk of loss for the Machine through its Date of Installation. Thereafter, you assume .the risk. 3.3 Production Status Each Machine is manufactured from new part~, or new and serviceable used parts (which perform like new parts), In some cases, the Machine may not be new and may have been previously installed. Regardless of the Machine's production st~tus, our warranty terms apply. 3.4 Installation For the Machine to function properly, it must be installed in a suitable physical environment. You agree to provide an environment meeting our specified requirements for the Machine. We design our standard installation procedures to ensure that each Machine we install is in good working order and meets its Specifications. We will successfully complete these procedures before we consider the Machine installed. , You are responsible for setting up a Customer-set-up Machine (we provide instructions to enable you to do so) and for the installation of a non-IBM Machine. Machine Features, Conversions, and Upgrades We sell features, conversions, and upgrades for installation only on designated, serial-numbered Machines. You represent that you have the permission of the owner (if you are not the owner of the Machine) and any lien holders to 1) install features, conversions, and upgrades and 2) transfer removed parts to us. Some of these transactions (called "Net-Priced" transactions) include associated replacement parts. We provide these parts on an exchange basis. All removed parts in a Net-Priced transaction become our property. For a Net-Priced transaction, you agree to allow us to install it within 30 days of its delivery and to recover the removed parts. Otherwise, we may terminate the transaction and you must return the feature, conversion, or upgrade to us at your expense. 2125-4575-01 3/93 [MKOO2) Page 12 of 23