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<br />SECTION 2
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<br />~k' ..'"~ IS The Customer may, at any time, pay in advance the full
<br />.,êThe Customer agrees to pay the Cash Down Payment, a~ount due hereunder and the Finance Charge ~itl be
<br />;~any. (a) upon the Date of Installation of the Machines or adjusted þy JBM to reflect the shorter payment penod..
<br />I) with respect to installed Machines, on the Effective All rem.lttances a:e to be made to ~he IBM Branch Office
<br />ate of Purchase, and agrees to pay the Total Amount of address listed herein unless otherwise requested by IBM.
<br />3maining Payments in consecutive Periodic Payments,
<br />including Finance Charge, for the Fiscal Periods as set forth Assignments
<br />below in either Payment Plan I or Payment Plan II. This Installment Payment Agreement is not assignable by
<br />the Customer, nor may the Customer sell, transfer, sub-
<br />PAYMENT PLAN I stantially modify, relocate or dispose of any or all of the
<br />Periodic Payment Finance Charge Machines without prior written permission of IBM. In no
<br />Fiscal (Annual) (Included in event may the Machines be relocated outside the United
<br />Period (Biennial) Payment) States. Any attempted assignment or transfer by the
<br />Customer of any of the rights, duties or obligations of this
<br />1 Installment Payment Agreement is void.
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<br />2 Customer's Covenants
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<br />The Customer covenants and agrees that (a) it will not
<br />3 create, assume, or voluntarily suffer to exist, without giving
<br />IBM at least 15 calendar days' prior written notice, any
<br />4 mortgage, pledge, encumbrance, security interest, lien or
<br />charge of any kind upon any or all ofthe Machines; (b) it will
<br />5 keep the Machines in good repair and operating condition;
<br />(c) it willl?romptly pay all taxes, interest and other charges
<br />when levied or assessed upon the Machines or their
<br />6 operation or use, or upon IBM, exclusive of taxes based on
<br />IBM's net income, in connection with this Installment
<br />PAYMENT PLAN II Payment Agreement; (d) it will promptly satisfy all liens
<br />, against the Machines; and (e) there are no mortgages,
<br />, , Total Finance pledges, encumbrances, security interests, liens or charges
<br />Periodic Payment Charge for of any kind by any party other than IBM or assigns UPon th
<br />(Total of Monthly Fiscal Penod ' .' . e
<br />seal Payments for Monthly (Included in machines on which f~atur~s, m~del upgrade~, machl~e
<br />3riod Fiscal Period) Payment Payments) elements or accessories Will be Installed subject to this
<br />. Installment Payment Agreement.
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<br />1
<br />Insuf8nce
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<br />2 The Customer further agrees to procure and maintain fire
<br />insurance with extended coverage against loss, theft,
<br />damage to or destruction of the Machines for the full
<br />3 insurable value thereof for the duration of this Installment
<br />Payment Agreement, the poJicy for such insurance being
<br />4 endorsed to show loss payable to IBM and assigns as
<br />respective interests may appear. Upon request, a certificate
<br />'5 of such insurance will be furnished to I BM or assigns. Any
<br />proceeds received directly by IBM under such insurance
<br />6 shall be credited to the payment required from the Custo-
<br />mer pursuant to the Section entitled "Casualty Occur-
<br />rences."
<br />The Periodic Payment for Period 1, which includes the
<br />Tax on Finance Charge, if applicable, is due on the first
<br />business day of the month following the Date of Installation Casualty Occurrences
<br />or the Effective Date of Purchase, and the Periodic Pay- A Casualty Occurrence shall be deemed to exist if any of
<br />ments for Periods 2 through are due on the first the Machines shall be lost. stolen, irreparably damaged or
<br />business day of each succeeding Fiscal Period. If Payment destroyed or otherwise rendered permanently unfit for use
<br />Plan I has been chosen, payments must be made in full on from any cause whatsoever prior to the payment in full of
<br />the due dates. If Payment Plan II has been chosen, the Total Time Sale Price. To the extent permitted by law,
<br />payments must be made in equal consecutive monthly the Customer shall promptly pay to IBM a sum equal to the
<br />installments. except that the first installment will include the aggregate Casualty Value of such Machines.
<br />Tax on Finance Charge, if applicable, beginning on the due The Casualty Value of each Machine suffering a Casualty
<br />'ates and continuing on the corresponding day of each Occurrence shall be the sum of the unpaid balances of the
<br />10nth of each Fiscal Period until fully paid. Payments State and Local Taxes, Unpaid Balance of Cash Price and
<br />¡clude Finance Charge in the appropriate amount in- Finance Charge at the time of such Casualty Occurrence
<br />uicated above. and attributable to such Machine. The Finance Charge shall
<br />The Customer having been offered the choice of pur- be adjusted by IBM to reflect the shorter payment period.
<br />chasing at the foregoing Cash Price (plus applicable State Any money so paid shall be applied by IBM to reduce
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