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<br />BETWEEN THE PARTIES, EXCEPT AS PROVIDEO IN THE <br />SECTION ENTITLED "IBM EOUCATION COURSES:' SUPER- <br />SEOING ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL <br /> <br />OR WRITTEN, AND ALL OTHER COMMUI'IIOAi'IONS BE- <br />TWEEN THE PARTIES RELATING TO THE SUBJECT MATTER <br />OF THIS AGREEMENT, . <br /> <br />Agreement for Lease or Rental of IBM Machines <br />(Z125-3320-00) <br /> <br />International Business Machines Corporation (IBM) and the Customer agree that the following terms and conditions will apply to any <br />Customer order for lease or rental of IBM machines that is accepted by IBM under this Agreement. Under these terms and conditions, <br />IBM will 1) lease or rent machines to the Customer, 2) provide maintenance service for machines and 3) as available, furnish <br />programming and programming services. all as described herein. The Customer agrees to accept the machines. maintenance service, <br />programming and programming services under the termS and conditions of this Agreement. The Customer further agrees with respect <br />to the machines and programming to accept the responsibility for 1) their selection to achieve the Customer's intended results, 2) their <br />use and 3) the results obtained therefrom. The Customer also has the responsibility for the selection and use of. and results obtained <br />from, any other equipment. programs or services u~~cd with the machines and programming <br />The term "machlnes" as used in tIllS Agreempnt refers to rT18chlfles and/or their model conversions and features unless the context <br />requires individual reference. <br />Specific machines, model conversions and fcature~i become suhject to this Agreement when either a written order to lease or a written <br />order to rent is signed by the Customer and accepted by IBM, For cacll order to lease a machine. IBM will provide the Customer a <br />Supplement to this Agreement (Supplement) confirming the specific terms applicable to the machine. Installation of the machine or <br />f1ayment of the first invoice for Monthly l.c(lse Ch8.rges, wtlich8ver first occurs following receipt of the Supplement, will constitute the <br />Customer's acceptance of such specific terms <br /> <br />INSTALLATION <br />The Customer agr(~es to provide a suitable environment for the <br />machines as specifipd by IBM and, except as otherwise specified <br />by IBM, to furnish (III labor required for unpacking and placinu <br />each machine in the desired lo(;ation. Each machine will be <br />Installed as specified by IBM <br />Installation By IBM <br />IBM will install machines which are not identified by IBM as <br />Customer Set-Up. IBM will install fr:.atures and model conversions <br />on the serial-numbered machine for w~lich thE~y a,re ordered <br />The first day of charqe for such machine, feature or modei <br />conversion will be the day (Monday through Friday) following the <br />day the machine, fea1ure or model conversion is inst,ll!ed by IBM <br />Customer Set-Up <br />Each machine, feature and model conversion identified by IBM <br />as Customer Set-Up (CSU) will be set up bV Hl€ Customer In <br />accordance with the instructions furnistled by IBM. <br />A CSU machine will be considered to be installed on the last day <br />(Monday through Friday) of tile CSU allowance period specified <br />by IBM for such machine. The CSU allowance period commences <br />on the day (Monday through Friday) following the date of receipt <br />of the machine at the Customer's premises. However, when a CSU <br />machin8 is delivered in conjunction with, and for attad1fTlent to. a <br />non-CSU machine delivered frorn IBM, such CSU m.Jchinewill be <br />considered to be installed on lhe later of 1) the installation date of <br />such non-CSU machine or 2) the installation date of the CSU <br />machine as determined above. <br />A CSU ferllure or model conversion will be cotlsidmcrl to h(~ in- <br />stalled Ofl(:~ montll followlnq the lilter 01 its ('stlrllatl'd (1C1k 01 <br />shipment or its actual date of shipment from IHM CSU leatures <br />and model conversions will be installed on ttle serial--numbered <br />machine for which they are ordered. <br />The first day of char'ge for such machine, feature or model <br />conversion will be the day (Monday through Friday) following the <br />day the machine, feature or model conversion is considered to be <br />installed. <br />CONTRACT PERIOD <br />IBM will determine the Lease or Rental Contract Period or <br />Periods for which each machine is eligible. The Customer may <br />select the Lease or Rental Contract Period for each machine from <br />the alternatives available. <br />Lease Contract Period <br />A Lease Contract Period has a Commencement Date, a Base <br />Term and an Expiration Date each of which will be specified in the <br />Supplement. <br />The Commencement Date for an eligible machine being <br />installed will be the day (Monday through Fllday) following the <br />day that the machine is installed, as specified in the Section <br />entitled "Installation," provided the written order to lease the <br />machine is received by IBM on or before such Commencement <br />Date. <br /> <br />The Commencement Date for an eligible machine already <br />installed under a Rental Contract Period will be the day the written <br />order to lease the machine is received by IBM. The Commence- <br />ment Date of a new Lease Contract Period 'for a machine already <br />inst8.lled under a Lease Contract Period or Extension will be the <br />day immediately following the Expiration Date of such Lease <br />Contract Period or Extension, provided that the written order for a <br />new Lease Contract Period for the machine is received by IBM on <br />or before such Commencement Date. <br />The Expiration Date of a Lease Contract Period IS determined <br />initially by adding the Base Term to the Commencement Date, <br />and thereafter may be adjusted as described in the Section <br />entitled ;'Machine Modifications." <br />A Least~ Contract Penod may be extended as described in the <br />Section entitled "Lease Contract Period Extension." <br /> <br />Rental Contract Period <br />A Rental Contract Penod has a Commencement Date and is of <br />indefinite duration <br />The Commencement Date tor an eligible machine being <br />installed will be fhe day (Monday through Friday) following the <br />day that the machine is installed, as specified in the Section <br />entitled "Installation..' <br />The Commencement Date for an eligible machine already <br />insfalled will be the day following the Expiration Date of its Lease <br />Contract Period or Extension. <br /> <br />CHARGES <br />The Customer agrees to pay all charges as described in this <br />Section. IBM reserves the riqht to offer machines for lease or <br />rental on longer than a rnonttlly charge b<1sis and, if so, this <br />Section would be construed accordingly. <br />IBM will determine the Monthly Lease Charge or Monthly <br />Rental Charge applicable to the Lease or Rental Contract Period <br />or Periods for which each machine is eligible. In addition, IBM will <br />specify the Plan Offering for each machine as: <br />Plan A: Each Plan A machine which is Installed under a Rent- <br />al Contract Period is subject to an Additional Use Charge for <br />billable time in excess of 176 hours in any calendar month, IS <br />measured by an IBM meter, at an hourly rate which is equal to <br />1/176th of the Monthly Rental Charge multiplied by IBM's <br />applicable Additional Use Charge Percent then generally in <br />effect. There is no Additional Use Charge for a Plan A machine <br />which is installed under a Lease Contract Period or Extension. <br />Plan B: For each Plan B machine, the Monthly Lease Charge <br />or Monthly Rental Charge provides the Customer with <br />unlimited use in any calendar month <br />Plan C: Each Plan C machine is subject to a Monthly Use <br />Charge which is determined by multiplying the amount of pro- <br />cessing performed by the machine, as measured by an !8M <br />meter. by IBM's applicable Monthly Use Charge Rat~s) then <br />generally in effect. <br />Plan 0: For each Plan 0 machine, model upgrade and feature, <br />there will be an Initial Period of Maintenance Service, as <br /> <br />Page 12 of 17 <br /> <br />-"-. <br />