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Comm. System Agmt "Removed"COMMUNICATIONS SYSTEM AGREEMENT Section 5 A. By executing this Agreement, Customer authorizes Motorola to proceed with the manufacture, assembly, integration, delivery, installation, and testing of the Communications System after the parties' mutual acceptance of the Detailed Design Review. No further notice to proceed, purchase order, authorization, resolution, or any other action will be required. PAYMENT SCHEDULE The total contract price is $4,850,000.00 ("Contract Price"). Except for the first payment, which is due when Customer executes this Agreement, Customer agrees to make payments to Motorola for work performed in accordance with this Agreement, within forty -five (45) days after the date of invoices that will be submitted by Motorola according to the following payment schedule: · 5% of the contract value due upon contract execution; · 10% of the contract value due upon mutual acceptance of Detailed Design Review; · 35% of the contract value for preparation of the sites (to be paid out in proportion to the work done on at each site) for the sites as follows: Fire Station 2 or alternate 9% 75th Street or alternate 9% 41st site 8% Rebecca Towers 3% Old City Hall 3% New City Hall 3% 10% of the contract value due upon FNE shipment; 25% of the contract value due upon installation of all sites (to be paid out proportionately on a per site basis) for the sites as follows: Fire Station 2 or alternate 7% 75th Street or alternate 6% 41st site 6% Rebecca Towers 2% Old City Hall 2% New City Hall 2% 5% of the contract value due upon Ssystem cutover; 10% of the contract value due upon at Final Project Acceptance. Final Project Acceptance includes removal of all existing Equipment and resolution of punch list items. The Customer is tax-exempt and will not pay or be charged freight costs. Motorola's invoice(s) shall include a breakdown of the components of the work performed and the portion of work completed and the amount due, together with such supporting evidence as may be reasonably required by Customer. Customer may withhold final payment or any progress payment to such extent as may be necessary on account of defective work not remedied by Motorola. IMotorola File No. 02-19333NAS Page 4 of 14 (Rev. 4/24/03) I