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<br /> ment Date of such Extension by an amount which IS derived by Add"'onal Use Chacge. Fa, a model "P9'" ~
<br /> multiplying such initial Monthly Lease Charge by the Upper Limit addition to a Plan C machine, IBM's apPlica~\or ,
<br /> Percent specified in the Supplement, unless such Upper limit Use Charge Rate(s) then generally in effect will ~pM\ .
<br /> Percent is modified by written notice for the ensuing Extension, in Expiration Date of the Lease Contract Period or E~¿' ì
<br /> which event such modified Upper Limit Percent will apply. will not be adjusted. 1'1810,",
<br /> For a machine which is installed under an Extension, IBM may Each model upgrade or feature addition to a machine installed
<br /> increase the Monthly Lease Charge upon three months' prior under a Rental Contract Period may only be placed under a Rental
<br /> written notice. Such increased Monthly Lease Charge will be the Contract Period and will be installed at IBM's Monthly Rental
<br /> lowest of 1) the Monthly Rental Charge generally in effect for such Charge, and Additional Use Charge Rate or Monthly Use Charge
<br /> machine on the effective date specified in the notice, 2) the Rate(s), as applicable, then generally in effect.
<br /> Monthly Lease Charge generally in effect for such machine on the A model upgrade or feature addition to a Plan D machine for
<br /> effective date specified in the notice for Customers commencing a which the Customer has elected Optional Periods of MaintenancE
<br /> new Lease Contract Period with the same Base Term or 3) the Service will be installed at IBM's applicable Additional Monthl~
<br /> Upper Limit in effect for the Extension. Maintenance Charges, as provided In this Agreement. based or
<br /> The Monthly Lease Charge for a model upgrade or feature addi- the Additional Monthly Maintenance Charge Rate, if any, ther,
<br /> tion may be increased by IBM in the same manner and in generally In effect for new orders.
<br /> accordance with the same Upper Limit calculations as for ma- The Commencement Date for a model upgrade or feature addi-
<br /> chines and pursuant to the provisions set forth in the Section tion will be the day (Monday through Friday) following the day
<br /> entitled "Machine Modifications." that the model upgrade or feature addition is installed, as specified
<br /> The Monthly Use Charge Rate(s) for each Plan C machine may in the Section entitled "Installation," provided IBM has received
<br /> be increased by IBM in the same manner and in accordance with the written order specifying lease or rental of the model upgrade
<br /> the same Upper Limit calculations as Monthly Lease Charges. or feature addition by such Date.
<br /> IBM may increase the Additional Monthly Maintenance Charge Model Downgrades and Feature Discontinuances
<br /> Rate or the Percentages for Optional Periods of Mal ntenance Ser-
<br /> vice, or IBM may change the Machine Group designation or the A model downgrade is defined as a model conversion which
<br /> Optional Periods of Maintenance Service. at any time upon three results in a decrease in the Monthly Lease Charge or Monthly
<br /> months' prior written notice to the Customer. Upon 15 days' prior Rental Charge.
<br /> written notice to IBM, the Customer may discontinue any Op- The downgrade of a model or discontinuance of a feature prior
<br /> tional Periods of Maintenance Service affected by such notice on to the ExpiratIOn Date of its Lease Contract Period or Extension
<br /> the effective date of the increase or change. Otherwise, the new will be subject to the provisions of the Section entitled, "Term i-
<br /> Rate, Percentages, Machine Group designation and Optional nation Charges."
<br /> Periods of Maintenance Service will become effective as specified. The downgrade of a model or discontinuance of a feature in-
<br /> The one-year Extension Period for each machine will com- stalled under a Rental Contract Period will not result in a Termina-
<br /> mence automatically unless the Customer notifies IBM In wnting tlon Charge
<br /> on or before the Expiration Date of the Lease Contract Period or DISCONTINUANCE NOTICE
<br /> current one-year Extension that the Customer elects one of the Subject to the Sections entitled "Increases in Rental Contract
<br /> following choices, as available Penod Monthly Charges," "Lease Contract Period Extension,"
<br /> a) to extend for a period of less than one year at the end of "limitation of Remedies" and "Termination Charges," the Custo-
<br /> which time the machine will be placed under a Rental Con- mer may at any time after installation, discontinue a processor
<br /> .. tract Period. If available. unless otherwise agreed: complex Unit upon three months' prior written notice, or discon-
<br /> b) to commence a new Lease Contract Period, tlnue any other machine or any field removable feature or request
<br /> c) to place the machine under a Rental Contract Period, or a field removable model downgrade upon one month's prior
<br /> d) to purchase the machine. written notice
<br /> In addition, the Customer may discontinue a machine or feature
<br /> or request a model downgrade effective on the EXpiration Date of TERMINATION CHARGES
<br /> a Lease Contract Period or Extension upon one month's prior The Customer will pay IBM as a Termination Charge, upon
<br /> written notice, termination of a Lease Contract Period or one-year Extension, for
<br /> MACHINE MODIFICATIONS a machine discontinuance or model downgrade prior to the
<br /> Expiration Date of such Lease Contract Period or Extension, the
<br /> Upon the Customer's written request. IBM will make field lesser of
<br /> installable model conversions or feature changes to a machine a) The Termination Charge Percent specified In the Supple-
<br /> installed under this Agreement. ment multiplied by the Remaining Contract Value: or
<br /> Model Upgrades and Feature Additions b) the Termination Charge Months specified in the Supplement
<br /> A model upgrade is defined as a model conversion which results multiplied by the applicable Monthly Lease Charge Value as
<br /> of the date of termination
<br /> in an increase In the Monthly Lease Charge or Monthly Rental The Remaining Contract Value of a machine or model down-
<br /> Charge. grade IS determined by multiplYing its applicable Monthly Lease
<br /> Each model upgrade or feature addition to a machine installed Charge Value as of the date of termination by the number of
<br /> under a Lease Contract Period or Extension may be placed either months remaining In its Lease Contract Period or Extension. The
<br /> under that Lease Contract Period or Extension or, if available,
<br /> under a Rental Contract Period. discontinuance of a feature will not result in a Termination
<br /> a) If placed under that Lease Contract Period or Extension, the Charge. except that the Monthly Lease Charge of any feature
<br /> model upgrade or feature addition will be installed at IBM's which is on a machine at any time within three months prior to the
<br /> date of termination of the Lease Contract Period or Extension for
<br /> applicable Monthly Lease Charge and Monthly Use Charge such machine will be included in the Monthly Lease Charge Value
<br /> Rate(s), it any, then generally in effect for new orders for of such machine.
<br /> such model upgrade or feature having the same Base Term For a machine not yet installed, if the Customer's written order
<br /> as the installed machine, When a model upgrade is installed for the machine has been received by IBM. IBM may not increase
<br /> under that Lease Contract Period or Extension, such Lease the Termination Charge Percent or the Termination Charge
<br /> Contract Period or Extension will be lengthened to provide a Months unless written notice shall have been given to the
<br /> common Expiration Date for the machine and the model up- Customer at least three months before the date of shipment. For a
<br /> trade. When a feature addition is installed under that Lease machine which is installed, IBM may not increase such Percent or
<br /> ontract Period or Extension, such Lease Contract Period
<br /> or Extension will not be lengthened. Months during a Lease Contract Period,
<br /> Return of a machineto IBM upon the Customer's request during
<br /> The model upgrade or feature addition will assume the a Lease Contract Period or Extension for any reason, including
<br /> same Anniversary Date (but not the same Commencement machine replacement for model conversion or feature changes
<br /> Date) and Upper Limit Percent as the installed machine for which are not field installable, or due to the Customer's failure to
<br /> purposes of determining future increases in the Monthly comply with any of the terms and conditions of this Agreement.
<br /> Lease Charge and any applicable Monthly Use Charge shall be a termination for purposes of this Section.
<br /> Rate(s). The purchase of a machine under the provisions of the Section
<br /> b) If placed under a Rental Contract Period, the model upgrade entitled "Purchase Option" will not result in a Termination Charge.
<br /> or feature addition to a machine which is under a Lease
<br /> Contract Period or Extension will be installed at IBM's PURCHASE OPTION
<br /> Monthly Rental Charge then generally in effect. For a model The Customer may elect to purchase a machine installed under
<br /> upgrade or feature addition to a Plan A machine, an addi- a Lease Contract Period or Extension by executing a Supplement
<br /> tional charge, as specified by IBM, will apply in lieu of any to Agreement for Purchase of IBM Machines. Upon request from
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