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<br /> CONTRACT NO. <br /> TERMS AND CONDITIONS FOR SYSTEM SUPPORT SERVICES <br /> BETWEEN CITY OF SAN MARCOS, TEXAS <br /> & ITRON, INC. <br /> 1. TERM OF AGREEMENT <br /> This Agreement shall be effective from the date accepted by ITRON <br /> and shall remain in force for at least one year after the <br /> warranty expiration date on the initial Equipment delivered to <br /> the Customer (the "anniversary date"). The Agreement may be <br /> terminated by either party upon ninety (90) days prior written <br /> notice. If written notice is not received from the Customer <br /> ninety (90) days prior to the initial anniversary date or any <br /> subsequent anniversary date, the terms and conditions of this <br /> Agreement shall be automatically extended for an additional <br /> twelve (12) month period. Except as otherwise provided herein, <br /> ITRON may withdraw individual items of Equipment or Licensed <br /> Software from this Agreement at the end of the first year after <br /> Maintenance Service for each such item has commenced, or <br /> thereafter, upon ninety (90) days prior written notice to the <br /> Customer. When an item is withdrawn from the Agreement, the <br /> Customer will receive credit for any charges already paid for <br /> service beyond the date of withdrawal. <br /> 2. MAINTENANCE SERVICE <br /> ITRON will provide service to keep the Equipment and Licensed <br /> Software in good working order in accordance with Itron's current <br /> Total System Support Package. Service shall include labor, <br /> parts, tools, and test equipment necessary for the maintenance of <br /> the items (listed on Schedule A) being serviced. New or <br /> equivalent to new standard parts will be used in effecting <br /> repairs. Parts will be provided bn an exchange basis and <br /> replaced parts will become the property of ITRON. <br /> 3. QUARTERLY CHARGES <br /> Support Service for Equipment and Licensed Software shall <br /> commence upon the expiration of the warranty period for said <br /> items. The quarterly charge for the current quarter, as defined <br /> in Schedule A, is due and payable on the first day of that <br /> quarter. ITRON may not change the quarterly charge prior to the <br /> initial anniversary date, and thereafter only upon written notice <br /> at least ninety (90) days prior to any subsequent anniversary <br /> date. Any adjusted,rate may not exceed ITRON's published rates <br /> for commercial users in effect on the adjustment date. Any such <br /> adjusted rates will become effective on the date specified in the <br /> notice unless the Customer exercises the option to withdraw the <br /> affected item from this Agreement. <br /> 1 <br />