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<br />)f Maintenance Selvice and must be the same consecutive hours <br />'iiich day. The Optional Period on Saturday or day must bethe <br />,;:,me consecutive hours on all Saturday~ Sundays. The <br />::ustomer rllfiY select or change Optional Periods of Maintenance <br />Jervice upon 15 days' written notice to IBM. <br /> <br />'i!GINEERING CHANGES <br />Engineering changes, determined applicable by IBM, will be <br />;ontrolled and installed by IBM. The Customer may, by providing <br />lotice subject to written confirmation by IBM, elect to have only <br />llandatory changes, as determined by IBM, installed on Machines <br />c designated. <br /> <br />;HARGES <br />Ttle Customer agrees to pay maintenance charges, com- <br />nancing on the Effective Date, consisting of 1} a Minimum <br />/i~ 'ntenance Charge, and 2) Additional Maintenance Charges, If <br />lpplicable. Additional Maintenance Charges will be for a) Op- <br />ianal Periods of Maintenance Service selected by the Customer, <br />"iased on the Machine Group and determined by multiplying the <br />-flinimum'Maintenance Charge tor the Machine by the applicable <br />-)ercentages for the Optional Periods of Maintenance Service <br />~rlOwn in the Supplement. and/or b) the amount of processing <br />Jorformed by Usage Plan Machines, as measured by an IBM <br />neter multiplied by the Addilional Maintenance Charge Rate(s) <br />;hown in the Supplement. <br />The Customer agrees to promptly submit to IBM the meter <br />"eading for each Usage Plan Machine as of the close of the last <br />"vork day of the period to which the Minimum Mi1intenance <br />r:::'harge 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 ttlat 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 />(ravel and waiting time, provided by IBM outside the Periods of <br />i\~ajntenance Service at IBM's then applicable hourly service rates <br />Jnd 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 are subject to <br />change by IBM upon three months' written notice to the Customer <br />and will become effective on the date specified in tile notice unless <br />the Customer withdraws the affected Machine from this Agree" <br />rnent as provided in the Section entitled "Withdrawal/Termina- <br />tion," except that Charges invoiced quarterly or annua!ly 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 iJrc subject to change hy IBM without <br />notice. <br /> <br />SERVICES FOR ADDITIONAL CHARGE <br />The services, including travel and waiting time, described in ttlis <br />Section, if available, will be provided by 113M under thi~ ^gruumcflt <br />at IBM's then applicable hourly service rates and minimum <br />charges, parts and materilll prices Clnd travel expcnsD, t1nlc~"s 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 entitled "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 M.1ch,. <br />ine of 0()"..1BM equipment and devices not supplied <br />by IE!~; . <br />f) IBM %11lc~fnes, except those 10M Machines which arc <br /> <br />owned b. i\l\, under warranty from IBM" or under an <br />IBM main\.':ilanCf' "'reement; and <br />g) conversion from IBM model to another or the instal- <br />lation or removal VI dn IBM feature whenever any of these <br />activities was performed by other than IBM except that <br />this subsection (9) 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 01 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 18M; <br />6) Remrangement or relocation of Machines and provision of <br />necessary materials: <br />7) Replacement of a pan not furnished for the Machine by IBM <br />(except when such part is in an alteration) with a directly <br />interchangeable IBM maintemmce part, and any increase in <br />service time associat(;d 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 />Servi~o~ provided. by 18~ l!nder this ~9re~ment do not includo <br />1) furnlshmg 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'nef 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 30-day month. The Additional <br />Maintenance Charge for usage will be invoiced following the <br />pl:~riod in which it is incurred. All other charges will be invoiced <br />when or after they are incurred. <br /> <br />PAYMENT <br />The CU1tomer will remit payment to IBM within 30 days after the <br />date of invoice. The Customer will receive a partial credit of <br />maintenance 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 />WITHDRA WAL/TERMINA TION <br />The Customer may withdraw a Mac~ine from this Agreement <br />upon one month's written notice to IBM <I) after the Machine has <br />been under tllis Agreement for at least six months, b} after the <br />Machine has been under this Agr0ement 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 tt1C Customer one year or more after <br />maintenance service for each sLich Machine has commenced, but <br />not prior to the end of the period for which IBM has submitted an <br />invoice to tile 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-18M <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 for failure of the otherto comply <br />with any of its terms and conditions. <br />This Agreement may be terminnted by either party, upon one <br />month's written notice, following withdrawal of all Macrijrles and <br />fulfillment of all obligations hereunder. <br /> <br />Page 6 of 17 <br /> <br />c <br />