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<br />described in this Section, during whictl IBM will provide, at no
<br />additional charge, the availability of rTl"'l1tenance service 24
<br />hours per day, seven days per week c nlimited use of the
<br />machine in any calendar month. Thereb.. _t, the Monthly Lease
<br />Char\ll! 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. (Base 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 Addition31
<br />Monthly Maintenance Charge Rate for the machine by the
<br />applicable Percentages for the Optional Periods of
<br />Maintenance Service shown in the Exhibit. Additional Monthly
<br />Maintenance Charges will commence upon the expiration of
<br />thetnitia! Period of Maintenance Service or on the effective date
<br />of the Opllonal Periods of Maintenance Service, whichever is
<br />later. The Initial Period of Maintenance Service COll1ll1ences on
<br />the day (Monday through Friday) following the day thilt the Pion
<br />D machine IS installed. as specified in tl1e Section entitled
<br />"Installation," and has a duration as established in writing by
<br />IBM. 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, wllere 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 lilst WOI k
<br />(jay of each calendar month. The Customer agrees not to intcl fere
<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 Dale designated in the Supple-
<br />ment. and thereafter with each Anniversary Date, Ihere will be a
<br />maximum Monthly Lease Charge (Upper Limit) for that year. The
<br />Upper Umit 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 tile 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 Limit forthe 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 alter .111110Uncc-
<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 CustorTler's written order
<br />fo' 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_ SlIch
<br />increased Montllly Lease Ch,Hge will be the lowest of 1) 111(~
<br />Monthly Rental Charge generally in effect for such maclline on the
<br />effective date specified in the notice. 2) the Monthly Lease Charge
<br />generally in effect for such machine on the effective ditte specified
<br />in the notice for Customers commencing a new Lease Contrilct
<br />Period with the same Base Term or 3) the Upper limit in effect for
<br />Hlat year, and, to the extent ttlat any increase cxcncds 1Iw
<br />applicable Upper Limit. tile excess will iJutol11;-ltically bc~ (]Ih~ctlvc
<br />on ensuing Anniversary Dates.
<br />Z12$-1029-01
<br />
<br />The Upper Limit Percent specified in the Supplement will not be
<br />increased during the I ("'se Contract Penod.
<br />The MonHlly Lease ge for a model upgrade or feature addi-
<br />tion may be increasl-,. !>y IBM In the same manner and in
<br />accordance with the same Upper Limit calculations as for ma-
<br />chines ;md pursuJnt to the provisions set forth in the Section
<br />entitled "Mi1chine Modifications."
<br />The Monttlly Use Ch,Hgc Rate(s) for each Plan C machine may
<br />be increased by IBM in the same manner and in accordance with
<br />the same Upper Limit calculations as Monthly Lease Charges
<br />IBM mAy IIlcrcasf' the Additional Monthly Maintenance Charge
<br />Rilte or the PerCCnlilrleS for Optional Periods of Maintenance
<br />Service, 01' 113M m,lY ch<lng(~ ttw Machine Group designation or
<br />H1C Optional Periods of Milirltenance Service, at any time upon
<br />three months' prior written notice to the Customer. Upon 15 days'
<br />prior written 11011(:(: to IflM. HlC Customer may discontinue any
<br />Optionnl PC:I iods of Milintc:ni"lncc Service ,dleeted by such notice
<br />on the cff(~ctivc datc of the increilsc or ch,Hlge. OtherWise, the new
<br />Rate, Perccntages, M;l(;tllm~ Grollp d(~sign(1tion and Optional
<br />PC:I"ioos of Milirlt(,I\;lll(:(~ ~;(~rvl(;() wllll.lc;cor1lc effective ,IS specified
<br />Except ilS I_-.lrovid(;c! In ttlis Section and III the Section entitled
<br />"'Lease COlltract Period Extension," alllncr8ases in Hle Monthly
<br />Lnasr: Ch;nqr;, MOllt1i1y Use CtliH\W niltc;(~;) iHlcJ LJpp(!r Limit Per-
<br />cc:nt will [)(:COIlH: cffL~ctlvc or) !tIC dnlc ~;pnclflud in 11"1(: notice of
<br />slIcll illcl(;a~;('
<br />
<br />Increases in Rental Contract Period Monthly Charges
<br />
<br />For il machine under a f1mltal Contract Period, IBM may In-
<br />crease tile Monthly Rental Charge. Additional Use Charge Rate 01
<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 P8rcentages for Optional Periods of Maintenance
<br />Service, or IBM may change the Machine Group designation or
<br />tile 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 Penod.s of. Maintenance Service affected by such notice
<br />on the effectivc date of the incrc,"!e or change. Otherwise, the new
<br />Rate. Pr;rccl1tilqP~,. Machine Cru\Jp dr:~;iqn<ltion (lnd Optior1i11
<br />Pr:rlods of Millntell,ll1cC Service will heconlC effective as ~;p0cifif;d
<br />
<br />Hourly Service Charges
<br />
<br />IBM'::> 110lJlly service lilIes ;JlHllllillilTlllJIl ch<lrgt:s af(: subject If)
<br />change by IBM withc)ljt Ilotice.
<br />
<br />Destination Charges
<br />All destination ch;WW~ for each machine, model conversion or
<br />fC;-Iture. both from ;-Inri to dcsiqniltcd IBM 10cJtions, and (lny
<br />rigging ch(]rges will be p<lid by the Customer in accordance With
<br />IBM's then current shipping Clnd billing practices. The cost of
<br />labor for cmtlng and uncrating is a ClJstomer expense except
<br />when pr~dDlrned ill ;m InM IOGlliol1
<br />
<br />Applicable Taxes
<br />In addition to the cflill'ges due under this Agreement, the Custo-
<br />mer agrees to pay amounts cqlJallo any taxes resulting trom this
<br />Agreement. or 8ny actiVities hereunder, exclUSive ot property
<br />taxes and taxes based on IBM's net income
<br />
<br />LEASE CONTRACT PERIOO EXTENSION
<br />LJnles~; otllcrwise sp()cifi(~d ill tl1(~ Sllpplernent, the Customer
<br />may extend a Lease Contmct PCI'iod for (] machine any number 01
<br />times 1m OnE~ year and one time for a period of less than one year
<br />The Commencement Di1te of an Extension will be the day follow-
<br />ing the Expimtion Date of tht~ Lease Contrflct Period or Extension
<br />ttlen in effect.
<br />The charges and terms Jnd conditions for the ensu1I1g
<br />Extension may be ch<1nged by IBM, but will not be changed by
<br />IBM from the elate three months prior to the Commencement Date
<br />of such Extp.nsion Ihrollqh its Expiralion Date, except as de-
<br />SCribed in ttlis Section and exu:pt th(]t if such Expiration Dilte is
<br />.1djlJstecl as desCl"lhcd III the Section entitled "MC1.chine Modifica-
<br />tions," till' r;1l<1rqi:s dlll'inq trH: ,ldjll:-;tmnnt prriod may be
<br />IIlCI(~<l:;(~d IlY lHM III ;1lC!JI(1;]I\(:(: wilil 1111' Upper I 1m II prr;w;lorri
<br />dnsclibeu III tile S(~c:tl()I)S (~!ltltlC'd "lllcr"l)(\Ses 1r1 L(;<Ise Contract
<br />Period MOI1Hily CI1;1I-qi:S" and "Purch<1se Option." Prior to the
<br />Expiration Dale of a L(~<l~-;p Contr:lct P(~riod or oll(~'.yei1r Extension,
<br />IBM will prOVide tile ellstOlller with written notice of all SUCll
<br />chargns ilnd tr:rnl~:; ,lnd conditions for ttle ensuing Exten:~ion.
<br />DlIrill~lllH' fxh'IlS1011 ttl(~rc~ Will tX~;-1Il Upper Lirnil Tile Upper
<br />LlIl1lt 101 \Ill: LX\CI1:;iull I~; c;ilcuLi\ed IJY iIlU(:;]~;lll1J ttw initial
<br />Monthly Lcase Ch(H~W in effect for a /T1Clchlne on the Commence-
<br />
<br />P;lU>J 13 of 17
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