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<br />of Maintenance Service and must be the sam 'lsecutive hours
<br />each day. The Optional Period on Saturday 01 .day must bethe
<br />same consecutive hours on all Saturdays or Sundays. The
<br />Customer may select or change Optional Periods of Maintenance
<br />Service upon 15 days' written notice to IBM.
<br />
<br />ENGINEERING CHANGES
<br />Engineering changes, determined applicable by IBM, will be
<br />controlled and installed by IBM. The Customer may, by providing
<br />notice subject to written confirmation by IBM, elect to have only
<br />mandatory changes, as determined by IBM, installed on Machines
<br />so designated.
<br />
<br />CHARGES
<br />The Customer agrees to pay maintenance charges, com-
<br />mencing on the Effective Date, consisting of 1) a Minimum
<br />Maintenance Charge, and 2) Additional Maintenance Charges, It
<br />applicable. Additional Maintenance Charges will be for a) Op-
<br />tional Periods of Maintenance Service selected by the Customer,
<br />based on the Machine Group and determined by multiplying the
<br />Minimum Maintenance Charge for the Machine by the applicable
<br />Percentages for the Optional Periods of Maintenance Service
<br />shown in the Supplement, and/or b) the amount of processing
<br />performed by Usage Plan Machines, as measured by an IBM
<br />meter, multiplied by the Additional Maintenance Charge Rate(s)
<br />shown in the Supplement.
<br />The Customer agrees to promptly submit to IBM the meter
<br />reading for each Usage Plan Machine as of the close of the last
<br />work day of the period to which the Minimum Maintenance
<br />Charge applies. The Customer agrees not to interfere with the
<br />proper operation of the meter.
<br />There will be no additional charge for travel expense associated
<br />with maintenance service provided during the Periods of Main-
<br />tenance Service, except that actual travel expense will be charged
<br />when the site at which the machine is located is 1) within the
<br />contiguous States and is normally inaccessible by both private
<br />automobile and scheduled public transportation, or 2) outside the
<br />contiguous States and is normally inaccessible by private auto-
<br />mobile.
<br />The Customer agrees to pay for maintenance service, including
<br />travel and waiting time, provided by IBM outside the Periods of
<br />Maintenance Service at IBM's then applicable hourly service rates
<br />and minimum charges, and travel expense; however, there will be
<br />no additional charge for maintenance parts.
<br />Changes in a Machine's specifications may result in adjust-
<br />ments to the maintenance charges.
<br />Minimum and Additional Maintenance Charges an::! subject to
<br />change by IBM upon tllree months' written notice to thE:::! Customer
<br />and will become effective on the date specified in the notice unless
<br />the Customer withdraws the affected Machine from ttlis t~gree-
<br />ment as provided in the Section entitled "W!thdrawal/Termina-
<br />tion," except that Charges invoiced quarterly or annually are
<br />subject to change by IBM upon commencement of service and on
<br />the first day of each quarterly or annual invoice period, upon three
<br />months' written notice to the Customer. IBM's hourly service rates
<br />and minimum charges are subject to change hy IBM without
<br />notice.
<br />
<br />SERVICES FOR ADDITIONAL CHARGE
<br />The services, including travel and waiting time, described in this
<br />Section, if available, will be provided by IBM under tlli;; Agreement
<br />at IBM's then applicable hourly service rates and minimum
<br />charges, parts and material prices and travel expense, unless such
<br />services are provided under another written agreement signed by
<br />the Customer and IBM. The following services are not considered
<br />maintenance service as described in the Section entltled "Main.
<br />tenance Service":
<br />1) Repair of Machine damage, replacement of maintenance
<br />parts or increase in service time caused by-
<br />a) failure to continually provide a suitable environment pre-
<br />scribed by IBM including adequate space, electrical
<br />power, air conditioning and humidity control;
<br />b) neglect; misuse, including use of the Machines for pur-
<br />poses other than for which designed;
<br />c) accident; disaster, including water, wind and lightning;
<br />transportation; vandalism or burglary of Machines de-
<br />signed to contain funds;
<br />d) alterations, including any deviation from IBM's Machine
<br />design;
<br />e) attachments, including any interconrwction to the Mach-
<br />ine of non-IBM equipment and devices not supplied
<br />by IBM;
<br />f) IBM Machines, except those IBM Machines which are
<br />
<br />owned b.. i....'" I '''!r warranty from IBM" or under an
<br />IBM main\.'-:lanc .-eement; and
<br />g) conversion from 0118 IBM model to another or the instal-
<br />iation or removal of an IBM feature whenever any ofthese
<br />activities was performed by other than IBM except that
<br />this subsection (g) will apply only during the first three
<br />months of service under this Agreement subsequent to
<br />the date of such Machine modificiation;
<br />2) Repair of Machine damage, replacement of maintenance
<br />parts (due to other than normal wear) or repetitive service
<br />calls caused by the use of supplies;
<br />3) Service for accessories;
<br />4) Inspection of altered Machines;
<br />5) Replacement or addition of parts and increase in service
<br />time associated with the installation by IBM of an engi-
<br />neering change when such parts and service are required
<br />due to the conversion from one IBM model to another or the
<br />installation or removal of an IBM feature whenever any of
<br />these activities was performed by other than IBM;
<br />6) Rearrangement or relocation of Machines and provision of
<br />necessary materials;
<br />7) Replacement of a part not furnished for the Machine by IBM
<br />(except when such parl is in an alteration) with a directly
<br />interchangeable IBM maintenance part. and any increase in
<br />service time associated with such activity; and
<br />8) Repair of a Machine caused by non-IBM representatives per-
<br />forming maintenance or repair of such Machine.
<br />
<br />EXCLUSIONS
<br />Services provided by IBM under this Agreement do not include
<br />1) furnishing supplies, painting or refinishing the Machines 0
<br />furnishing material therefor, 2) electrical work external to the
<br />Machines or installation, maintenance or removal of alterations,
<br />attachments or other devices not furnished by IBM and 3) such
<br />service which is impractical for IBM to render because of
<br />alterations in, or attachments to, the Machines.
<br />
<br />TAXES
<br />In addition to the charges due under this Agreement, the
<br />Customer agrees to pay amounts equal to any taxes resulting
<br />from this Agreement, or any activities hereunder, except for taxes
<br />based upon IBM's net income.
<br />
<br />INVOICING
<br />The Minimum Maintenance Charge and the Additional Main-
<br />tenance Charge for Optional Periods will be invoiced in advance,
<br />monthly, quarterly or annually as shown in the Supplement.
<br />Monthly charges will be invoiced as of the first of each month and
<br />will be prorated on the basis of a 3D-day month. The Additional
<br />Maintenance Charge for usage will be invoiced following the
<br />period in which it is incurred. All other charges will be invoiced
<br />when or after they are incurred.
<br />
<br />PAYMENT
<br />The Cu.stomer will remit payment to IBM within 30 days after the
<br />date of invoice. The Customer will receive a partial credit of
<br />rnaintanance charges invoiced upon the withdrawal of Machines
<br />or termination of this Agreement prior to the expiration of the
<br />period for which the invoice applies.
<br />
<br />WITHDRAWALlTERMINA TION
<br />The Customer may withdraw a Machine from this Agreement
<br />IJpon one month's written notice to IBM a) after the Machine has
<br />been under tt1is Agreement for at least six months, b) after the
<br />Machine has been under this Agreement for at least one month.
<br />provided it has been removed from the Customer's location or c)
<br />on the effective date of an increase in the Minimum Maintenance
<br />Charge or Additional Maintenance Charges. ~
<br />IBM may withdraw a Machine from this Agreement upon three
<br />months' written notice to the Customer one year or more after
<br />maintenance service for each such Machine has commenced, but
<br />not prior to the end of the period for which I BM has submitted an
<br />invoice to the Customer for service under this Agreementforsuch
<br />Machines.
<br />IBM may withdraw a Machine from this Agreement upon one
<br />month's written notice to the Customer following any repetition of
<br />the need for additional repair of such Machine caused by non-IBM
<br />maintenance activity, as described in item (8) of the Section
<br />entitled "Services for Additional Charge:'
<br />Either party may withdraw Machines or terminate this Agree-
<br />ment at any time by written notice fortailure 01 the other to comply
<br />with any of its terms and conditions.
<br />This Agreement may be terminated by either party, upon one
<br />month's written notice, following withdrawal of all Machines and
<br />fulfillment of all obligations hereunder.
<br />
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