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<br /> converted from warranty or reconfigured equipment, City of San Marcos <br /> will be granted a twenty percent (20%) discount off the applicable <br /> Basis Monthly Charge (BMC), providing the City of San Marcos is in full <br /> compliance with the terms and conditions of this Addendum and the <br /> Agreement. <br /> 4. CORFIGDRA"rIOH CHAHGES <br /> Should City of San Marcos reconfigure the System(s) during the <br /> Term of this addendum, the BMC will be adjusted accordingly and the BMC <br /> will be fixed at the adjusted BMC rate for the remaining Term of this <br /> Addendum, excluding further changes to the configuration. NOTE: <br /> EQUIPMENT ADDED TO THE AGREEMENT OR ADDITIONAL UNITS OF TYPES OF <br /> EQUIPMENT ALREADY A PART OF A SYSTEM WILL BE CHARGED FOR AT THE <br /> PREVAILING MAINTENANCE PRICES IN EFFECT WHEN SUCH ADDITIONS ARE <br /> ORDERED. <br /> 5. TERKIRA"rIOH ICAH~.T.A~IOH <br /> <br /> A. In consideration of DGC granting City of San Marcos the long <br /> term discount and pricing structure, the parties agree that, during the <br /> first twelve (12) months of the Agreement, if this Addendum is <br /> terminated or canceled by City of San Marcos upon sixty days (60) prior <br /> written notice to DGC or if City of San Marcos does not comply with the <br /> Program Requirements under the Agreement, City of San Marcos shall be <br /> assessed a total of three (3) months of the TMC which shall be regarded <br /> as liquidated damages and not a penalty. This amount shall be computed <br /> based on the highest previous TMC assessed over the past twelve (12) <br /> months to City of San Marcos dur ing the term 0 f this the Agreement <br /> prior to DGC's receipt of City of San Marcos's notice of cancellation. <br /> All amounts under this paragraph are due and payable to DGC immediately <br /> upon invoice. <br /> B. In consideration of DGC granting City of San Marcos this <br /> Option, the parties agree that, during years two (2) and three (3) of <br /> the term, if City of San Marcos terminates or cancels this Addendum <br /> and/or the Agreement, in whole or in part, for any reason, City of San <br /> Marcos shall provide DGC Ninety (90) days prior written notice of such <br /> termination or cancellation. <br /> C. It is expressly understood and agreed by the parties hereto <br /> that the City of San Marcos' obligations under the Agreement are <br /> payable only and solely from funds available for the purpose of the <br /> Agreement. If adequate funds are not available to make payments under <br /> the Agreement, the City of San Marcos shall notify DGC within sixty <br /> (60) days after such fact is determined. The City of San Marcos shall <br /> terminate the Agreement and will not be liable for failure to make <br /> payments to DGC under this Agreement thereafter. <br /> 6. GENERAL <br /> This Addendum is subject to written acceptance by an authorized <br /> DGC representative. Upon DGC's acceptance of this Addendum, the <br /> parties agree that the terms and conditions of this Addendum, along <br /> -2- <br />