TranSystems Corporation - LGM Construction

segregated so as to give adequate notice to all third parties of
FedEx’s title to the Materials; and
(vii) The aggregate cost of Materials stored at any one time, whether at
the Site or elsewhere, will not exceed One Hundred Thousand
Dollars ($100,000) without FedEx’s express written consent.
Section 4.05. Contractor's Representations Regarding Applications for Payment.
Contractor must sign each Application for Payment. Each Application for Payment will
constitute Contractor's representation that the Work has progressed to the level for which
payment is requested, that Contractor has properly performed the Work in accordance with all
requirements of this Agreement, and that Contractor knows of no reason why payment should not
be made as requested. Contractor’s submission of an Application for Payment in connection
with its performance of the Work will constitute an affirmative representation that all Work for
which Contractor has received payments from FedEx is free and clear of liens, claims, security
interests or other encumbrances in favor of Contractor or any other person or entity whatsoever.
If FedEx learns that any of Contractor’s representations, as set forth in this Section 4.05, are
wholly or partially inaccurate, FedEx may withhold payment of sums then or in the future
otherwise due to Contractor until Contractor corrects the inaccuracy and the circumstances giving
rise to the inaccuracy to FedEx's reasonable satisfaction.
Section 4.06. FedEx's Review Of Applications for Payment.
FedEx has the right to
review all Applications for Payment and to examine the Work at the Site or elsewhere to
determine whether the quantity and quality of the Work are as represented in the Application for
Payment and satisfy all requirements of the Contract Documents.
Section 4.07. Title Passes Upon Payment.
Contractor warrants that, upon payment of
each of its Application for Payment, title to all Work covered by the Application for Payment
will immediately pass to FedEx.
Section 4.08. Use of Payments.
Contractor shall use all sums paid to it in accordance
with the terms of this Agreement for the performance of the Work. Contractor shall apply each
progress payment it receives from FedEx to the payment of Subcontractors in accordance with
the Subcontractor Payment Schedule that Contractor included with the Application for Payment
that formed the basis for FedEx making that progress payment. At FedEx's request, Contractor
shall furnish satisfactory proof as to the disposition of any monies FedEx pays to Contractor, but
FedEx has no obligation to see to the proper disposition or application of monies FedEx pays to
Contractor.
Section 4.09. Payment Not a Waiver
. Neither the approval or making of any payment to
Contractor nor the partial or entire use or occupancy of the Work by FedEx constitutes an
acceptance of any portion of the Work.
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