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invoice evidencing work performed, subject to City accounting procedures. c. Payment need not be made for work that fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above for a two (2) year term, unless terminated earlier in accordance with Section 16, below. 4. GENERAL TERMS AND CONDITIONS FOR MATERIALS AND EQUIPMENT a, Delivery: All goods shall be shipped F.O.B. destination designated by the City in writing. Contractor assumes full responsibility for packing, crafting, marking, transportation and liability for loss and/or damage. 2. All shipping and transportation charges to be prepaid by Contractor b. Late Delivery Assessment: The Contractor agrees to pay lake -delivery assessment for any delay in delivery (except those beyond its reasonable control) beyond the date agreed to in writing in an amount equal to the expenses incurred by the City due to the delay, including but not limited to expenses such as rental of like equipment to fulfill the need while awaiting late delivery, added cost of manpower or other resources or other costs as can be shown to have resulted from delaying receipt of the ordered goods or services. The penalty will be deducted from the amount due to the Contractor. C. Inspection: City shall be under no obligation to unpack or inspect the products and/or services. The Contractor shall be responsible for the consequences of negligent manufacture and packing, and for the consequences of negligent handling prior to point where City assumes ownership, The expense of subsequent tests due to failure of goods first offered will be charged against the Contractor. d. General Guarantee: The Contractor guarantees that (1) Contractor owns all rights, title and interest in the products and services and has the legal authority to sell, license or otherwise transfer the right to use to the City; (2) the products and services are free from defects in material and workmanship for a minimum period of one (1) year from the date of acceptance by the City, unless otherwise stated as part of the invoice; and (3) Contractor shall repair or replace all such defective goods F.O.B. destination. e. Default: In the event of default by the Contractor of any of the conditions of this section, the Contractor agrees that the City may procure the materials, equipment, or services contemplated by this Agreement from another source and may deduct #19793v4 Pagc 2 of l l