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11.8. EXCEPTIONS AND ADDITIONS TO WARRANTY. Warranties will not apply to the following items: <br /> • scheduled maintenance items <br /> • normal wear-out items, such as brake linings,filters, belts, and wiper blades <br /> ■ items furnished by Participant <br /> Should Participant require the use of a specific product and has rejected Contractor's request for <br /> an alternate product, then the standard supplier warranty for that product will be the only <br /> warranty provided to Participant.This product will not be eligible under"Fleet Defects," below. <br /> 11.9. PASS-THROUGH/SUPERIOR WARRANTY. If any vendor to the Contractor offers,at no additional cost,a <br /> warranty on a component that is longer or more comprehensive than the required warranties on <br /> this Contract, Contractor shall inform Participant of the additional warranty and pass it through <br /> to Participant at no additional cost. <br /> Contractor shall state in writing that Participant's warranty reimbursements will not be impacted. <br /> Contractor also shall state in writing any exceptions and reimbursement including all costs <br /> incurred in transport of vehicles and/or components. At any time during the warranty period, <br /> Contractor may request approval from Participant to assign its warranty obligations to others, <br /> but only on a case-by-case basis approved in writing by Participant. Otherwise, Contractor shall <br /> be solely responsible for the administration of the warranty as specified. Warranty <br /> administration by others does not eliminate the warranty liability and responsibility of <br /> Contractor. <br /> 11.10. FLEET DEFECTS. "Fleet Defect" means cumulative failures of twenty five (25%)percent of the same <br /> components in the same or similar application in a minimum fleet size of twelve (12) or more <br /> buses where such items are covered by warranty.A Fleet Defect applies only to the base warranty <br /> period in for Complete Bus, Propulsion System, and Subsystems Warranty. When a Fleet Defect <br /> is declared,the remaining warranty period on that item/component is suspended.The warranty <br /> period does not resume until the Fleet Defect is corrected. <br /> For the purpose of Fleet Defects, each order shall be treated as a separate bus fleet. In addition, <br /> if there is a change in a major component within the order,the buses containing the new major <br /> component will become a separate bus fleet for the purposes of determining Fleet Defects. <br /> Contractor shall correct a Fleet Defect under the warranty provisions defined in Section 13 Repair <br /> Procedure. After correcting the Fleet Defect, Participant and Contractor shall mutually agree to <br /> and Contractor shall promptly undertake and complete a work program reasonably designed to <br /> prevent the occurrence of the same Fleet Defect in all other buses and spare parts purchased <br /> under the order. Where the specific Fleet Defect is solely attributed to particular identifiable <br /> parts, the work program will include redesign and/or replacement of only the defectively <br /> designed and/or manufactured parts. In all other cases,the work program will include inspection <br /> and/or correction of all the buses in the fleet via a mutually agreed-to arrangement. Contractor <br /> shall update,as necessary,technical support information (parts,service and operator's manuals) <br /> due to changes resulting from warranty repairs. Participant may immediately declare a defect in <br /> design resulting in a safety hazard to be a Fleet Defect.Contractor shall be responsible to furnish, <br /> install and replace all defective units. <br /> The Fleet Defect warranty provisions do not apply to Participant-supplied items, such as radios, <br /> fare collection equipment, communication systems, and tires. In addition, Fleet Defects do not <br /> apply to interior and exterior finishes, hoses, fittings, and fabric. <br /> MASTER CONTRACT NO.06719-01 <br /> PAGE 20 <br />