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117£ I 1.6 Invoicing, Payment, and Taxes . We invoice: 1, recurring charges (other than usage charges) for a Program and for Maintenance Services in advance for the applicable invoice period; 2. Project Suppbrt Services charges monthly as the work progresses (unless spe~ified -. otherwise in the Statement of Work). Invoices include, as applicable, actual hours expended, and actual travel and living expenses; 3. usage charges following the period in which you incur them; and 4. all other charges when or after you incur them, -- For a Product with a one-time charge, payment is due on its Date of Installation. Recurring charges for a Product begin on its Date of Installation. Amounts due are payable as we specify in the invoice. You agree to pay accordingly. You also agree to pay amounts equal to any applicable taxes resulting from any transaction under this Agreement. This does not include taxes based on our net income. You are responsible for personal property taxes for each Product from the date we ship it to you. 1.7 Additional Charges Depending on the particular Product, Service, or circumstances, additional charges may apply. We charge extra if, for example, 1) we are required to use other than private automobile or scheduled public transportation ~o provide Maintenance Services to you or 2) we respond to your request for service of a Machine outside its standard service period. We will notify you in advance if these charges apply. . 1.8 Types of Service for Machines We provide certain types of service for a Machine to keep it in, or restore it to, good working order. The following terms apply to warranty service, Maintenance Services, and other applicable Services. Depending on the Machine, the service may be 1) a "Repair" service at your location (called "On-site") or at one of our service locations (called "Carry-in") or 2) an "Exchange" service, either On-site or Carry-in. We will inform you of the available types of service for a Machine. You may select the type of service from thos'e available for the Machine. We require that a Machine and its features have the same type of service. Under warranty and Maintenance Services, we offer On-site types of service 24 hours a day, seven days a week. For certain Machines, however, this service period may vary. Carry-in types of service are available during the normal business hours of our service locations. Under Carry-in service, you may deliver the failing Machine, or ship it (prepaid, unless we specify otherwise, and suitably packaged), to a location we designate. After we have repaired or exchanged the Machine, we will return it to you at our expense. Under On-site Exchange service, depending on the nature of the failure, we may repair the failing Machine at your site instead of exchanging it. When a type of service involves the exchange of a Machine or part, the item we replace becomes our property and the replacement becomes yours. The replacement may not be new, but will be in good working order and at least functionally equivalent to the item replaced. We are responsible for loss of, or damage to, your Machine while it is 1) in our possession or ' 2) in transit in those cases where we are responsible for the transportation charges. Z125-4575-01 3/93 (MKOD2) Page 6 of 23