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<br />agreement, or 2) an on-order machine I' dvailable for delivery ?r <br />delivellld to the Customer and the Customer falls to provide a SUit- <br />able installation environment or delays installation. <br />The Date of Installation for a feature or model conversion will be <br />the day (Monday through Friday) following the day that the feature <br />or model conversion is installed under this Agreement or under the <br />applicable IBM lease or rental agreement. <br />The installation of some features and model conversions invol- <br />ves the removal of parts which become the property of IBM. IBM will <br />specify in the Supplement if removed parts become the property <br />of IBM. The Customer will provide IBM access to the machine to com- <br />mence installing each such feature or model conversion as soon <br />as possible after its shipment from IBM but in no event more than <br />one month following the later of its Estimated Shipment Date or ac- <br />tual date of shipment, unless a shorter period is specified in the <br />Supplement In the event of failure by the Customer to provide IBM <br />access to the machine within the specified period, the Customer <br />shatl return the feature or model conversion to IBM with shipping <br />charges prepaid, unless otherwise agreed to by IBM. <br />It the Customer delays instailation of a feature or model conver- <br />sion (other than one which involves the removal of parts which be- <br />come the property of IBM) more than one month trom the later of <br />its Estimated Shipment Date or actual date of shipment from IBM, <br />its Date of Installation will be considered to be the day (Monday <br />through Friday) one month following such date of shipment <br />IBM will notify the Customer of the Date of Installation of each <br />on-order machine, feature or model conversion. <br /> <br />Customer Set-Up <br /> <br />Each machine, feature or model conversion identified by IBM as <br />Customer Set-Up (CSU), and all machine elements and acces- <br />sories, will be set up by the Customer in accordance with the in- <br />structions furnished by IBM. <br />The Date of Installation will be the day (Monday through Friday) <br />following the day the machine, feature, model conversion, <br />machine element or accessory is considered to be installed under <br />this Agreement or under the applicable IBM lease or rental agree- <br />ment. <br />An on-order CSU machine will be considered to be installed on <br />the last day of the CSU allowance period specified by IBM for such <br />machine. The CSU allowance penod, which does not Include <br />Saturdays or Sundays, commences on the day (Monday through <br />Friday) following the date of receipt of the machine at the Custom- <br />er's premises. However, when a CSU machine IS delivered In con- <br />junction with, and for attachment to, a non-CSU machine delivered <br />from IBM, such CSU machine will be considered to be installed as <br />determined in this paragraph or on the date such non-CSU <br />machine is installed, whichever is later. <br />An on-order CSU feature or model conversion, machine ele- <br />ment or accessory will be considered to be installed one month fol. <br />lowing the later of its Estimated Shipment Date or its actual date <br />of shipment from IBM. <br /> <br />PURCHASE OF INSTALLED MACHINES <br /> <br />The Purchase Price stated in the Suppiement is exclusive of any <br />charges which are due or may become due under the applicable <br />IBM lease or rental agreement. The Effective Date of Purchase for <br />installed Machines shall be the later of the first day of the Quotation <br />Month or the day on which tile payment required under the Section <br />entitied "Prices and Payment" is received by IBM at its IBM Branch <br />Office or Remit to Address shown in the Supplement, provided <br />such receipt is not later than the last day of the Quotation Month. <br />The Machines will be terminated under the applicable IBM lease or <br />rental agreement as of the day immediately preceding the Effec- <br />tive Date of Purchase. <br /> <br />WARRANTIES <br /> <br />Machines purchased under this Agreement will be 1) newly <br />manufactured by or for IBM from new and serviceable used parts <br />which are equivalent to new in performance in these Machine~, 2) <br />assembled by or for IBM from serviceable used parts, 3) Machines <br />which have been previously installed, or 4) Machines which are <br />presently installed with the Customer. <br />IBM warrants that on the Date of Installation each on-order <br />Machine will be in good working order and will conform to IBM'S offi- <br />cial published specifications which are available upon request. <br />The Warranty Period for each Machine. specified in the Supple. <br />ment, commences on its Date of Installation as defined in the Sec- <br />tion entitled "Installation." <br /> <br />INSTALLED MAo.;HINES PURCHASED AFTER THEIR <br />WARRANTY PERIOD HAS EXPIRED ARE SOLD ON AN "AS <br />IS" BASIS. <br /> <br />Service and Parts Warranty <br /> <br />Commencing on the Date of Instaliation of each on-order <br />machine, model upgrade and feature addition, or on the Effective <br />Date of Purchase of each installed machine. model upgrade and <br />feature addition, and continuing for the duration or remainder, if <br />any. of the Warranty Period, IBM agrees to provide the availability of <br />warranty service, at no additional charge except as set forth in thiS <br />Section or in the Section entitled "Travel Expense," to keep the <br />machines, model upgrades and feature additions in, or restore <br />them to. good working order. This warranty service includes pre- <br />ventive maintenance based upon the speCIfic needs of indIVIdual <br />machines, model upgrades and feature additions as determin.ed <br />by IBM and on-call remedial maintenance. Such warranty service <br />will include lubrication, adjustments and replacement of parts <br />deemed necessary by IBM. Parts, which may be used parts, will be <br />furnished on an exchange basis, and the replaced parts become <br />the property of IBM. . <br />Warranty service will be available at no additional charge dUring <br />the hours specified in the Supplement. Outside such ,hours, war- <br />ranty service, if requested by the Customer and proVided by IBM, <br />will be subject to charge for travel expense plus travel, wailing and <br />service time at IBM'S then applicable hourly servIce rates and mini- <br />mum charges; however, there will be no additional charge for <br />parts. . . <br />Warranty service under thiS. Agreement does ':lot as~ure uninter- <br />rupted operation of the Machines. IBM may, at ItS option, store on <br />the Customer's premises maintenance equipment and/or parts <br />that IBM deems necessary to fulfill this warranty. <br />During the Warranty Period, engineering changes determined <br />applicable by IBM will be controlled ar:'d. instal!ed by .IBM on t~e <br />Machines. The Customer may, by providing notice subject to Writ- <br />ten confirmation by IBM, elect to have only mandatory changes, as <br />determined by IBM, installed on the Machines. <br />IBM shall have full, free and safe access to the Machines to pro- <br />vide service thereon. The Customer shall promptly inform IBM of <br />any change in the Machines' location during the Warranty Period. <br />If the Warranty Period expires on a Friday or Saturday, it will be <br />extended so that the last day of such Warranty Period will be on the <br />following Sunday. <br /> <br />Programming <br /> <br />IBM warrants that, when shipped to the Customer, programming <br />designated by IBM for use with a Machine and for which pro~ram- <br />ming services are available will conform to IBM'S offiCial published <br />specifications which are available upon request. <br />IBM does not warrant that functions contained in programming <br />wiil operate in the combinations which may be selected for use by <br />the Customer or will meet the Customer's requirements. <br />ALL OTHER PROGRAMMING IS DISTRIBUTED ON AN "AS <br />IS" BASIS. <br /> <br />Additional Provisions for <br />Features and Model Conversions <br /> <br />IBM's warranty for each feature addition or model upgrade re- <br />quires that the machine on which it is installed is atthe then cur- <br />rent engineering-change level, IS the speCifiC senal-n.~mbered <br />machine for which it was ordered and has been modIfied only <br />with changes obtained from IBM specifically for that s~rial-num- <br />bered machine. If these conditions are not met, IBM Will attempt <br />to install non-CSU feature additions and model upgrades on the <br />machine, and, if such attempt results in an inc~rrectly funct~oning <br />machine, upon Customer request and at IBM S then apphca~le <br />hourly service rates and minimum charges, parts and matenal <br />prices and travel expense, IBM will remove the features and/or <br />model upgrades and restore the machine to its prior condition. If <br />such features and model upgrades did not involve the removal of <br />parts which became the property of IBM, such features and model <br />upgrades remain the property of the Customer. It such features <br />and model upgrades involved the removal of parts which be- <br />came the property of IBM, such features and model upgrades be- <br />come the property of IBM and the restored parts become the <br />property of the Customer. <br />For a feature removal, model downgrade or reinstallation of a <br />previously purchased feature or mod.e.l conversio,:, a three- <br />month parts warranty will apply to additional parts, If any, sup- <br />plied by IBM. <br /> <br />Page 3_~f17 <br />