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<br />described in this Section, during which will provide, at no
<br />additional charge, the availability of m<... cnance service 24
<br />hours .>Jer day, seven days per week and unlimited use of the
<br />machine in any calendar month. Thereafter, the Monthly Lease
<br />Charge or Monthly Rental Charge provides the Customer with
<br />the availability of maintenance service during the period from 7
<br />a.m. to 6 p.m., Monday through Friday, (8ase Period of Main-
<br />tenance Service) and unlimited use of the machine in any
<br />calendar month.
<br />The Customer may select Optional Periods of Maintenance
<br />Service as designated by IBM in the IBM Plan 0 Optional
<br />Periods of Maintenance Service Exhibit (Exhibit). The Custo-
<br />mer may select or change Optional Periods of Maintenance Ser-
<br />vice upon 15 days' prior written notice to IBM.
<br />Optional Periods of Maintenance Service are subject to an
<br />Additional Monthly Maintenance Charge based on the Ma-
<br />chine Group and determined by multiplying the Additional
<br />Monthly Maintenance Charge Rate for the machine by the
<br />applicable Percentages for the Optional Periods of
<br />MaiRtenance Service shown in the Exhibit. Additional Monthly
<br />Maintenance Charges will commence upon the expiration of
<br />the Initial Period of Maintenance Service or on the effective date
<br />of the Optional Periods of Maintenance Service, whichever is
<br />later. The Initial Period of Maintenance Service commences on
<br />the day (Monday through Friday) following the day that the Plan
<br />o machine is installed, as specified in the Section entitled
<br />"Installation," and has a duration as established in writing by
<br />18M. If the Initial Period of Maintenance Service expires on a
<br />Friday or Saturday, it will be extended by two days or one day,
<br />respectively, so that the last day of such Initial Period of
<br />Maintenance Service will be on a Sunday.
<br />If the Customer requests maintenance service for a Plan 0
<br />machine to be performed at a time outside the Periods of
<br />Maintenance Service, the service will be provided for additional
<br />charge as described in the Section entitled "Maintenance
<br />Service. "
<br />Monthly charges for each machine will begin on the Com-
<br />mencement Date of its Lease Contract Period or Extension or
<br />Rental Contract Period, unless otherwise specified in this Section.
<br />Meter Readings
<br />IBM will install and maintain its meters for Plan A and Plan C
<br />machines. For each Plan A machine, where required, and for each
<br />Plan C machine, the Customer agrees to furnish a monthly report
<br />to IBM showing the meter reading as of the close of the last work
<br />day of each calendar month. The Customer agrees not to interfere
<br />with the proper operation of the meters.
<br />Increases in Lease Contract Period Monthly Charges
<br />For each year of a Lease Contract Period for a machine, begin-
<br />ning with the Commencement Date designated in the Supple-
<br />ment, and thereafter with each Anniversary Date, there will be a
<br />maximum Monthly Lease Charge (Upper Limit) for that year. The
<br />Upper Limit for the first year of the Lease Contract Period is
<br />calculated by increasing the initial Monthly Lease Charge in effect
<br />for a machine on the Commencement Date specified in the Sup-
<br />plement by an amount which is derived by multiplying the initial
<br />Monthly Lease Charge by the Upper limit Percent specified in the
<br />Supplement. The Upper Limit for each succeeding year is
<br />calculated by increasing the Upper Limitforthe preceding year by
<br />an amount which is derived by multiplying the initial Monthly
<br />Lease Charge by the Upper Limit Percent specified in the Supple-
<br />ment. For these calculations, when a machine becomes subject to
<br />the provisions of a Lease Contract Period on or after announce-
<br />ment, but before the effective date, of an increase in the Monthly
<br />Lease Charge, such increased Charge will be used as the initial
<br />Monthly Lease Charge.
<br />For a machine not yet installed, if the Customer's written order
<br />for a machine has been received by IBM, IBM may not increase the
<br />Monthly Lease Charge or Upper Limit Percent unless written
<br />notice shall have been given to the Customer at least three months
<br />before the date of shipment. In the event of such increase, the
<br />Customer may elect to void the order for the affected machine
<br />within one month of notification of such increase by IBM.
<br />For a machine which is installed, IBM may increase the Monthly
<br />Lease Charge upon three months' prior written notice. Such
<br />increased Monthly Lease Charge will be the lowest of 1) the
<br />Monthly Rental Charge generally in effect for such machine on the
<br />effective date specified in the notice, 2) the Monthly Lease Charge
<br />generally in effect for such machine on the effective date specified
<br />in the notice for Customers commencing a new Lease Contract
<br />Period witll the same Base Term or 3) the Upper Limit in effect for
<br />that year, and, to the extent that any increase exceeds the
<br />applicable Upper Limit, the excess will a\' ;-natically be effective
<br />on ensuing Anniversary Dates.
<br />tl~S-902t-O'
<br />
<br />1=';19"" I;;: ,)1 II
<br />
<br />The Upper Limit Pen ,pecified in the Supplement will not be
<br />increased during the Lt.. .: Contract Period.
<br />The Monthly Lease Charge for a model upgrade orfeature addi-
<br />tion may be increased by IBM in the same manner and in
<br />accordance with the same Upper Limit calculations as for ma-
<br />chines and pursuant to the provisions set forth in the Section
<br />entitled "Machine Modifications."
<br />The Monthly Use Charge Rate(s) for each Plan C machine may
<br />be increased by IBM in the same manner nnd in accordance With
<br />the same Upper Limit calculations as Monthly Lease Charges.
<br />IBM may increase the Additional Monthly Maintenance Charge
<br />Rate or the pprcentages for Optional Periods of Maintenance
<br />Service, or IBM rnay change the Machine Group designation or
<br />the Optional Periods of Maintenance Service. at any time upon
<br />three months' prior written notice to the Customer. Upon 15 days'
<br />prior written notice to IBM, the Customer may discontinue any
<br />Optional Periods of Maintenance Service affected by such notice
<br />on the effective date of the Increase or change. Otherwise, the new
<br />Rate, Percentages, Machine Group designation and Optional
<br />Periods of Maintenance Service will become effective as specified.
<br />Except as provided in this Section and in the Section entitled
<br />"Lease Contract Period Extension," all increases in the Monthly
<br />Lease Charge. Monthly Use Charge Rate(s) and Upper limit Per-
<br />cent Will become effective on the date specified in the notice of
<br />such increase.
<br />
<br />Increases in Rental Contract Period Monthly Charges
<br />
<br />For a machine under a Rental Contract Period, IBM may in-
<br />crease the Monthly Rental Charge, Additional Use Charge Rate or
<br />Monthly Use Charge Rate(s) upon three months' prior written
<br />notice. The Customer may discontinue any machine included in
<br />such notice on the effective date of the increase upon one month's
<br />prior written notice. Otherwise, the new Charge and Rates will
<br />become effective as specified.
<br />IBM may increase the Additional Monthly Maintenance Charge
<br />Rate or the Percentages for Optional Periods of Maintenance
<br />Service, or IBM may change the Machine Group designation or
<br />the Optional Periods of Maintenance Service, at any time upon
<br />three months' prior written notice to the Customer. Upon 15 days'
<br />prior written notice'to IBM, the Customer may discontinue any
<br />Optional Periods of Maintenance Service affected by such notice
<br />on the effective date of the increae or change. Otherwise. the new
<br />Rate. Percent;:!ges, Machine Group designation and Optional
<br />Periods of Maintenance Service will become effective as specified
<br />
<br />Hourly Service Charges
<br />IBM's hourly service rates and minimum charges are subject to
<br />change by IBM without notice.
<br />
<br />Destination Charges
<br />All destination charges for each machine, model conversion or
<br />feature, both from and to designated IBM locations, and any
<br />rigging charges will be paid by the Customer in accordance with
<br />18M's then current shipping and billing practices. The cost of
<br />labor for crating and uncrating is a Customer expense except
<br />when performed at an IBM location.
<br />
<br />Applicable Taxes
<br />In addition to the charges due under this Agreement, the Custo-
<br />mer agrees to pay amounts equal to any taxes resulting from this
<br />Agreement, or any activities hereunder, exclusive of property
<br />taxes and taxes based on IBM's net income.
<br />
<br />LEASE CONTRACT PERIOD EXTENSION
<br />Unless otherwise specified in the Supplement, the Customer
<br />may extend a Lease Contract Period for a machine any number of
<br />times for one year and one time for a period of less than one year.
<br />The Commencement Date of an Extension will be the day follow-
<br />ing the Expiration Date of the Lease Contract Period or Extension
<br />then in effect
<br />The charges and terms and conditions for the ensuing
<br />Extension may be changed by 18M, but will not be changed by
<br />IBM from the date three months pnorto the Commencement Date
<br />of such Extension through its Expiration Date, except as de-
<br />scribed in thiS Sectiorl and except thaI il such Expiration Dale is
<br />adjusted as deSCribed in the Section entitled "Machine Modifica-
<br />tions," the charges during the adjustment period may be
<br />Increased by IBM in accordance with the Upper Limit provisions
<br />described in the Sections entitled "Increases In Lease Contract
<br />Period Monthly Charges" and "Purchase Option" Prior to the
<br />Expiri'ltion Date of a Lease Contract Period or one-year Extension,
<br />IBM will provide the Customer with written notice of all such
<br />charges and terms and conditions for the ensuing Extension
<br />During the Extension there will be an Upper Limit. The Upper
<br />Limit for the Extension IS calculated by increasing the initial
<br />Monthly Lease Charge in effect for a machine on the Commence-
<br />
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