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~¡,ed in this Section, during which IBM will provide, at no The Upper Limit Percent specified in the Supplement wi)) not be .sdditional charge, the availability of maintenance service 24 increased during the Lease Contract Period. /lours per day. seven days per week and unlimited use of the The Monthly Lease Charge for a model upgrade or feature addi- machine in any calendar month. Thereafter, the Monthly Lease tion may be increased by IBM in the same manner and in Charge or Monthly Rental Charge provides the Customer with accordance with the same Upper Limit calculations as for ma- the availability of maintenance service during the period from 7 chines and pursuant to the provisions set forth in the Section a.m. to 6 p.m,. Monday through Friday, (Base Period of Main- entitled "Machine Modifications." tenance Service) and unlimited use of the machine in any The Monthly Use Charge Rate(s) for each Plan C machine may calendar month. be increased by IBM in the same manner and in accordance with The Customer may select Optional Periods of Maintenance the same Upper Limit calculations as Monthly Lease Charges. Service as designated b~ IBM in the IBM Plan D Optional IBM may increase the Additional Monthly Maintenance Charge Periods of Maintenance ervice Exhibit (Exhibit). The Custo- Rate or the Percentages for Optional Periods of Maintenance mer may select or change Optional Periods of Mai ntenance Ser- Service, or IBM may change the Machine Group designation or vice upon 15 days' prior written notice to IBM. the Optional Periods of Maintenance Service, at any time upon Optional Periods of Maintenance Service are subject to an three months' prior written notice to the Customer. Upon 15 days' Additional Monthly Maintenance Charge based on the Ma- prior written notice to IBM, the Customer may discontinue any chine Group and determined by multiplying the Additional Optional Periods of Maintenance Service affected by such notice Monthly Maintenance Charge Rate for the machine by the on the effective date of the increase or change. Otherwise, the new applicable Percentages for the Optional Periods of Rate, Percentages, Machine Group designation and Optional Maintenance Service shown in the Exhibit. Additional Monthly Periods of Maintenance Service will become effective as c;¡pecified Maintenance Charges will commence upon the expiration of Except as provided in this Section and in the Section entitled the I nitial Period of Maintenance Service or on the effective date Lease Contract Period Extension," all increases in the Month)y of the Optional Periods of Maintenance Service, whichever is Lease Charge, Monthly Use Charge Rate(s) and Upper Limit Per- later. The Initial Period of Maintenance Service commences on cent will become effective on the date specified in the notice of the day (Monday through Friday) followi ng the day that the Plan such increase. D machine is installed, as specified in the Section entitled Increases in Rental Contract Period Monthly Charges "Installation," and has a duration as established in writing by IBM. If the Initial Period of Maintenance Service expires on a For a machine under a Rental Contract Period, IBM may In- Friday or Saturday, it will be extended by two days or one day. crease the Monthly Rental Charge. Additional Use Charge Rateor respectively, so that the last day of such Initial Period of Monthly Use Charge Rate(s) upon three months' prior written Maintenance Service will be on a Sunday. notice. The Customer may discontinue any machine included in If the Customer requests maintenance service for a Plan D such notice on the effective date of the increase upon one month's machine to be performed at a time outside the Periods of prior written notice. Otherwise, the new Charge and Rates will Maintenance Service, the service will be provided for additional become effective as specified. charge as described in the Section entitled "Maintenance IBM may increase the Additional Monthly Maintenance Charge Service." Rate or the Percentages for Optional Periods of Maintenance Monthly charges for each machine will begin on the Com- Service, or IBM may cnange the Machine Group designation or mencement Date of its Lease Contract Period or Extension or the Optional Periods of Maintenance Service. at any time upon Rental Contract Period, unless otherwise specified in this Section three months' prior written notice to the Customer. Upon 15 days' Meter Readings prior written notice to IBM. the Customer may discontinue any Optional Periods of Maintenance Service affected by such notice IBM will install and maintain its meters for Plan A and Plan C on tr¡e effective date of the I ncreae or change. Otherwise, the new machines. For each Plan A machine. where required. and foreach Rate. Percentages. Machine Group designation and OptIOnal Plan C machine, the Customer agrees to furnish a monthly report Periods of Maintenance Service will become effective as specified. to I BM showing the meter reading as of the close of the last work Hourly Service Charges day of each calendar month The Customer agrees not to interfere with the proper operation of the meters, IBM's hourly service rates and minimum charges are subject to Increases in Lease Contract Period Monthly Charges change by IBM without notice For each year of a Lease Contract Period for a machine. begm- Destination Charges ning with the Commencement Date designated in the Suppie- All destination charges for each machine, model conversion or ment. and thereafter with each Anniversary Date, there will be a feature. both from and to designated IBM locations, and any maximum Monthly Lease Charge (Upper Limit) for that year. The rlggl1g charges will oe paid by the Customer if" accordance with Upper Limit for the first year of the Lease Contract Period IS IBM s In en current shipping and billing practices. The cost of calculated by increasing the initial Monthly Lease Charge in effect labor for crating and ~mcratlng is a Customer expense except for a machine on the Commencement Date specified in the Sup- when performed at an IBM location plement by an amount which is derived by multiplying the initial Applicable Taxes Monthly Lease Charge by the Upper Limit Percent specified in the In addition to the charges due under this Agreement. the Custo- Supplement. The Upper Limit for each succeeding year IS mer agrees to pay amounts equal to any taxes resulting from this calculated by increasing the Upper Limit for the preceding year by Agreement. or any activities hereunder. exclusive of property an amount which is derived by multiplying the Initial Monthly taxes and taxes based on IBM's net income. Lease Charge by the Upper Limit Percent specified in the Supple- ment. For these calculations, when a machine becomes subject to LEASE CONTRACT PERIOD EXTENSION the provisions of a Lease Contract Period on or after announce- Unless otherwise specified in the Supplement. the Customer ment. but before the effective date. of an increase in the Monthly may extend a Lease Contract Period for a machine any number of Lease Charge. such increased Charge will be used as the initial times for one year and one time for a period of less than one year. Monthly Lease Charge. The Commencement Date of an Extension will be the day follow- For a machine not yet installed, if the Customer's written order mg the Expiration Date of the Lease Contract Period or Extension for a machine has been received by IBM. IBM may not increase the then In effect. Monthly Lease Charge or Upper Limit Percent unless written The charges and terms and cond Itions for the ensuing notice shall have been given tothe Customer at least three months Extension may be changed by IBM, but will not be changed by before the date of shipment. In the event of such increase, the IBM from the date three months prior to the Commencement Date Customer may elect to void the order for the affected machine of such Extension through its Expiration Date, except as de- within one month of notification of such increase by IBM. scribed in this Section and except that if such Expiration Date is For a machine which is installed, IBM may increase the Monthly adjusted as described in the Section entitled "Machine Modífíca- Lease Charge upon three months' prior written notice. Such tions," the charges during the adjustment period may be increased Monthly Lease Charge will be the lowest of 1) the increased by IBM in accordance with the Upper Limit provisions Monthly Rental Charge generally in effect for such machine on the described in the Sections entitled "Increases in Lease Contract effective date specified in the notice. 2) the Monthly Lease Charge Period Monthly Charges" and "Purchase Option" Prior to the generally in effect for such machine on the effective date specified Expiration Date of a Lease Contract Period or one-year Extension, in the notice for Customers commencing a new Lease Contract IBM will provide the Customer with written notice of all such Period with the same Base Term or 3) the Upper Limit in effect for charges and terms and conditions for the ensuing Extension. that year. and, to the extent that any increase exceeds the During the Extension there will be an Upper Limit. The Upper applicable Upper Limit, the excess will automatically be effective Limit for the Extension is calculated by increasing the initial on ensuing Anniversary Dates. Monthly Lease Charge in effect for a machine on the Commence- Z125-9O29-00 Page 13 of 17