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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 /> <br />4 . CORFIGURA~ION CBAlIGES <br /> <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 /> <br />5. ~INA~IOIf/eAIfCELLA~IOIf <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 during the term of 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 /> <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 term;i..nates 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 /> <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 /> <br />6 . GEBERAL <br /> <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 /> <br />-2- <br />