On 16 March, SPI signed a contract with Sharone Company for a total $4 million. Sharone was building a new addition to its manufacturing facility and has decided to install solar panels to reduce its annual operating electricity costs. The contract price includes the CSP-2 solar panels, installation, a two-year warranty and a five-year maintenance agreement that starts as soon as installation is completed. Separate selling prices for the panels and installation and a one-year maintenance contract are $3,200,000 for the panels and installation and $300,000 each year for the maintenance contract. Generally, the panels can be installed within four months of the date the contract is signed. A nonrefundable deposit of 10% of the contract is due on the signing of the contract. Another 75% is due on delivery and installation. The remaining 15% is due six months or later after the installation date when all deficiencies have been resolved. Delivery and installation was completed on 31 August 2009. The warranty is for assurance that the product will work within its specifications. SPI estimates that based on past experience, warranty costs will be approximately $150,000 on this size of contract. The company has already recognized $3.3 million in revenue related to this contract in 2000