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HomeMy WebLinkAbout122A-86 RESOLUTIONRESOLUTION NO. 122A-86 I� , A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE PURCHASE AGREEMENT WITH IBM FOR A COMPUTER SYSTEM. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute a lease purchase agreement with IBM for a computer system. A copy of the agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 5 day of December APPROVED Aidtick 1 1986. 1 Lir ��lllh�ll�lll�',,,,, January 5, 1987 Mr. Scott Linebaugh Administrative Services Director CITY OF FAYEPPEVILLE 113 W. Mountain Street Fayetteville, AR 72701 Dear Mr. Linebaugh: Per our conversation, I have enclosed LEASEMARK's 1986 Annual Report. As discussed, we world like the opportunity to provide financing for the City of Fayetteville. Since LEASEMARK provides lease purchase programs for all capital equipment acquisitions, we can offer a variety of payment plans for political subdivisions. These payment plans can be monthly, semi-annually, quarterly, or annually with payments being made in advance or in arrears. LEASEMARK also provides a means of acquiring within your budgeting constraints, as no down payment or pre -paid rentals are required. I have also enclosed our Municipal EZ -Lease for your review. This would be used for transactions of $25,000 and under. This docimient would eliminate the need for an Opinion of Counsel and an Amortization Schedule, which is required. on equipment over $25,000, in conjunction with our Lease With Option to Purchase Document. If, in fact, you have a bidder's list, please add our name or send us an application. Please feel free to give us a call for additional infoxmation, or should we be able to offer a lease quote as a comparison to a cash outlay on your next capital equipment purchase. Thank you for your time. Sincerely, LEASEMARK, INC. x`7'1 Jeri McWard Municipal Specialist JM/m1 Enclosure 1 4 CI VI /�_�__:_� 1'f _..L._._.. �_......_--- ���:__:_ CooC 1 ,0,/1\ coOnnnn ;:LGQOGI I !Q! 11 1604 COLONIAL PARKWAY P,O. BOX 60078-0925 PALATINE. ILLINOIS 60078 312/358-9300 1 — --CCJJ V n -- GOVERNMENTAL LEASE WITH OPTION TO PURCHASE NAME AND ADDRESS OF LESSEE CITY OF FAYETTEVILLE 113 W. Mountain Fayetteville, AR 72701 Address for billing it different than for Lessee: LEASE NUMBER QUANTITY EXHIBIT A —DESCRIPTION OF LEASED EQUIPMENT (Include Name and Address of Vendor) (See Attached Exhibit A for Equipment Description) Location of Equipment Fayetteville, 113 W. Mountain, Fayetteville, AR 72701 and Police Station 113 W. tlountain AP •77•7f1 LEASEMARK, INC. (Lessor) hereby rents and leases to Lessee with the option to purchase and Lessee hereby rents and leases from Lessor, upon the terms and ' conditions contained herein. the property set forth above. LEASE TERM. This Lease shall be effective as of the date of execution. The term of this Lease for the purposes of lease payments shall commence as of the date of execution by the Lessee of the Receipt Certificate, Exhibit C. and shall continue until the end of the Lessee's then fiscal period with lease payments to be made by Lessee as set forth on Exhibit Battached hereto and made a part hereof. The Lease shall be automatically renewed on a year to year basis for the additional annual or biannual fiscal periods plus a concluding tractional fiscal period needed to complete the anticipated total Lease Term as set forth on Exhibit B. Lessee shall pay 60 lease payments in the amount of $ •.11311.02 , A portion of each lease payment is paid as and represents payment of interest and Exhibit B sets forth the interest component of each lease payment. All lease payments shall be made payable to the Lessor al the address designated by Lessor on its invoice. The Lease Term shall terminate when all payments, including the option lo purchase payment, as provided in Exhibit B. have been paid. Lessee shall have the right to exercise its option to purchase the Leased Equipment upon payment of an amount equal to the option to purchase payment as of such date as set forth on Exhibit B. and upon the giving of notice to Lessor of such intention o1 Lessee at least thirty (30) days prior t0 the date upon which such right will be exercised. After all lease payments have been made pursuant to Exhibit B. Lessor shall transfer title to the Leased Equipment to Lessee for the consideration of One Dollar (51.00). Notwithstanding any dispute between Lessee and Vendor or Lessor, Lessee shall make all payments when due and shall not withhold any payments or portions thereof pending sinal resolution of such dispute. Lessee hereby convenants it will not assert any right of setoff or counterclaim against its obligation to make the payments provided for in Exhibit Band that it will take such action as is necessary under the laws applicable to Lessee to budget for. seek appropriation for. and include and maintain funds sufficient and available to discharge its obligations to meet all payments due during the Lease Term pursuant to provisions of this Lease. ASSIGNABILITY. Lessor may assign its right and interest in and to the lease payments and Leased Equipment without notice to Lessee. Such assignee shall have full benefit 01 all the convenants made by Lessee and all rights and remedies of Lessor contained herein. Lessee shall not have the right to assign its rights. duties and obligations under this Lease either in part or in whole without prior written consent of Lessor or its assignee. BILLING INSTRUCTIONS. Lessee requests that Lessor send its invoice for payment to the above address within days prior to the due date of payment. COVENANTS OF LESSEE. Lessee represents. covenants and warrants that it is a public body corporate and politic and is authorized by the constitution and laws of the State of Arkansas to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. Lessee has been duly authorized to execute and deliver this Lease and agrees that it will do or cause to be done all things necessary to preserve and keep its existence in full lorce and effect. Lessee further represents. covenants and warrants that all procedures have been met so that this Lease. i5 enforceable and Lessee has complied with all bidding requirements if required. SECURITY AGREEMENT. To secure the payment of the foregoing lease payments. and any and all liabilities. direct. indirect. absolute, contingent. due or to become due now existing or hereafter arising of the Lessee to the Lessor, the undersigned Lessee grants to the Lessor as the Secured Party a security interest in and to a1101 the property included in Description Of Leased Equipment above, together with all additions. attachments, accessions, substitutions and proceeds with respect thereto and Leased Equipment hereafter acquired to be maintained at the address of the Lessee. Lessee agrees. if requested by Lessor or its assignee, to execute and deliver to Lessor or its assignee financing statements or other similar instruments furnished by Lessor or its assignee. MISCELLANEOUS. The waiver by Lessor of Lessee's breach of any term. covenant or condition hereof shall not be a waiver of any subsequent breach of the same or .Any other term. covenant or condition. This Lease, together with Exhibits hereto, constitutes the entire agreement between the parries and shall not be modified. amended, altered, or changed except in writing. This lease shall be governed by the laws of the State of Arkansas and any provision of this Lease 'found to be prohibited by law shall be ineffective to the extent Of such prohibition without invalidating the remainder of This Lease. Lessee shall cause to be executed an opinion of its'counsel in the form as set forth below. • THE ADDITIONAL PROVISIONS ON THE REVERSE SIDE HEREOF WHICH HAVE BEEN READ BY LESSEE ARE 'INCLUDED IN AND,pMADE A PART HEREEO.F.. • IN WITNESS WHERCOF. Lessee has caused this Lease to be executed by its duly authorized officer this Z1 day 01 Mt/RCM19�J Witness or Attesl> __//7 rTTV CIF FAVRTTFVTT.T.r By l _ By Tha/tA..ttrJ 1lLa.9- i— (II ailest 1.) Printed Name. Title MARt`LVld SOHNSO}) MA'DIZ Attest: ACCEPTED 19 LEASEMARK, INC. I By , r J By Secretary President // OPIpfUUON OF COUNSEL. As Counsel for Lessee. I acknowledge that I have reviewed this Lease With Option to Purchase. the extract of any enabling minutes. and all nece(Sary proceedings taken by the Lessee to authorize and execute this Lease With Option to Purchase, and therefore, I am of the the opinion: (a) The Lessee is a duly constituted public corporation and political subdivision of the State referred to above. and (LA This Lease With Option to Purchase has been duly authorized. executed and delivered by an authorizedxeresenlative of the Lessee and is enforceable against the Lessee in accordance with its terms and conditions. and / (c1 This 1 pato With llntinn in Pi'rnhaea ie a lana) valid andhintlinn nhlinatinn n1 the 1 ocean - „' I rig NONAPPROPRIATION. It is Lessee's Intent to pay lease payments for the full tweeter as scheduled on Exhibit B and to take title to the Leased Equipment after the final payment and In thle regard lessee represents that the use of the Leased Equipment is essential to Its operations and that the functions performed by the leased Equipment could not and will not be transferred to other equipment. However, lithe leasee Is not allotted funds for any sucoeselveliscal period to continue the leasing of the Leased Equipment and It has no funds for such leasing from other sources. Lanes may terminate this lean at the end of the Then current fiscal period.and lessee shall not, in this sole event, be obligated t0 make any payments beyond the end of the then current fiscal period. Lessor shall have all the rights end remedies 10 lake possession of the Leased Equipment. 11 the provisions of the previous paragraph are utilized by Leasee. Lasses agree. not to purchase, Nue or rent equipment performing functions similar to those performed by ml Leased Equipment. and agrees not to permit functions slmllartothose perlormed through the useof the Leased Equipment to be performed by itsown employees or by any agency or entity affiliated with or hired by Leasee lore perlod of two were; provided. however. That these raalricVona shall not be applicable In the event the Leased Equipment shall be sold by Leumand lessesalWl pay to Lessor anamountsqualto (0 thethenappllcable option to purchase payment, (II) less the net amount received by Lessor or its Assignee from the We of the Leased Equipment Should the net amount received from such sale exceed the then applicable option to purchase payment. Lessor will refund such eaten amount to Levee. CAPE MW USE OF EQUIPMENT Leasee. at Its awn cost and expanse, shall maintain the Leased Equipment In good operating condition. repair and appearance. end protect same from deterioration other than normal wear and tear; shall use the leased Equipment In the regular.course of its bualneu only, within Its normal capacity, without abuse. and in a manner contemplated by the manufacturer thereof; shall not make modification. alterations or additions to the Leased Equipment (other than normal operating accessories or controls) without the written consent of Lessor, which shall not be unreasonably withheld; shall not so affix the Leased Equipment to realty so as to change its nature to real property, and agrees That the Leseed Equipment shall remain personal property at all times regardless of Mw attached or Installed; shall keep the Leased Equipment on the premises where delivered, and shall not remove the Leased Equipment without the written consent of Lessor, which shall not be unreasonably withheld. All modifications, repairs. alterations, additions, replacements, substitutions, operating accessoriesand controls shall accrue to the Leased Equipment and become the property of the Lessor. Lessor shall have the right during normal hours, to enter upon the premises where the leased Equipment is located in order to inspect, observe or otherwise protect Lessor's Interest, and Lessee shall cooperate in affording Lessor theopportunityto do same. For the purposeof e nuring Lessor that Lassoes equipment will be properly serviced. Levee agrees to cause the Leased Equipment to be maintained pursuant to the manuleclurer's standard preventive maintenance contract end/or recommendation. Lessee agrees that Lessor shall not be responsible for any loss or damage whatsoever to the Leased Equipment. nor shall Lessor be responsible for latent defects, wear and fear or gradual deterioration or lossof service or use of the Leased Equipment or any part thereat. Lessor shall not be liable to looses or anyone else for any liability, claim, Ion, damage or expense of any kind or nature caused directly or indirectly by the Inadequacy of the Leased Equipment or any item supplied by the vendor or any other party, any interruption of use or bas of service or use or performance of any equipment, any doss of business or Other consequence or damage. whether or not resulting from any of the foregoing. NET LEASE. Lessee intends the lease payments In this Lease 10 be net to the Lessor. Lessee shall comply with all laws and shall pay all faxes. if any. including but not limited to sales and use taxes, excise taxes, personal properly taxes and assessments. and penalties, licenses. registration fees, height and transportation charges. permits and any similarcharges imposed on the ownership. possession, or useof the Leased Equipment during the term of this Lease. Lessee shall obtain necessarygas, water, steam, electricity. light, heat or power. telephone or other utility service used on or in connection with the Leased Equipment and shall pay all charges including Installation. for suds services during the Lease Term. Lessee shall pay to totem all costs and expenses 16UlIYdOt'§7§1Ld"rNM7Llelh(as hereinafter defined. storage, caretaking and repossession expenses in connection with the enforcement of Lessor'srights under this Lean. Incase any charges, costs, taxes or expenses required l0 be paid by the Lessee under this Lease shall remain unpaid after the due dale thereol, the lessor shall have the right but shall not be obligated to pay the same and to charge such payments with interest at the highest legal rete from the date of said payment, as additional lease payments. to be paid with the next lease payment. INDEMNITY. Lessee shall and does hereby indemnify end save Lessor harmless from any and all liability arising out of the ownership. selection. possession. leasing, renting, operation. control. use. maintenance, delivery and/or velum of the Leased Equipment. including but not limited 1o. injuries causing personal injury, property damage and/or death but shall be credited with any amounts received by the Lessor with respect (hereto from liability insurance secured by Lesne. That said indemnification shall include all costs and expense&TdtKINKINYOimYyMXONncurred by Lessor in connection with any suits or actions resulting Irom any such liability. ?A LIENS. Lessee shall not directly or Indirectly create. incur. assume or suffer to exist any mortgage, pledge, Tien, charge, encumbrance or claim on or with respect to the Leased Equipment, except with respect to the respective rights of Lessor and Leasee as herein provided. Lesseeshall promptly. at its own expense, take such actions as may be necessary to duly discharge any such mortgage, pledge. Tien. charge, encumbrance or claim not excepted above if the same shall arise at any time. DISCLAIMER OF WARRANTIES. LESSOR MAKES NO WARRANTY OR REPRESENTATION. EITHER EXPRESS OR IMPLIED. AS TO THE VALUE. DESIGN. CONDITION. MERCHANTABILITY. FITNESS FOR PARTICULAR PURPOSE OR FITNESS FOR USE OF ANY OF THE LEASED EQUIPMENT OR AS TO ITS TITLE THERETO OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED EOUIPMENT. Lessor hereby assigns to Lessee for and during the Lease Term all manufacturer's warranties or guaranties, express or implied, Issued on or applicable to the Leased Equipment and Lessor authorizes Leasee to obtain the customary services furnished in connection with such warranties or guaranties al Lessee's expense. Lessee acknowledges that the Leased Equipment has been purchased by Lessor in accordance with Lessee's specifications and from a vendor selected by Leasee; that Lessor is nota manufacturer 01 Or dealer of such Leased Equipment and takes no part in or responsibility for the Installation of the Leased Equipment, end that Lessor has made no representation or warranty and assumes no obligation with respect to the merchantability, condition. quality or fitness of the leased Equipment or the enforcement of the manufacturer's warranties or guaranties. ENJOYMENT OF LEASED EQUIPMENT. Lessor hereby covenants to provide lessee during the Lease Term with quiet use and enjoyment of the Leased Equipment, without sun. trouble or hindrance Irom Lessor except as expressly set forth In this Lease. Any assignee of Lessor shall not interfere with such quiet use and enjoyment during the Lease Term so long as Lessee is not in default pursuant to this Lease. EVENTS OF DEFAULT AND REMEDIES. Lessee shall be deemed to be in default hereunder upon thehappening of any of the following events of default: (a) Lessee shall tail to make any lease payment. or to pay easy other payments required to be paid hereunder, or (b) Lessee shall fall to keep any such other term, covenant or condition contained herein. Upon the occurrence of an event of default as specified above. and Lessee shall fail to remedy such event of default with all reasonable dispatch, within e period o1 J0 days. then Lessor or its assigns shall hare the right, at its option without any further demand or notice. to pursue any one or more of me following remedies: (a) By written notice to Lessee, declare an amount equal to all payments due during the Lease Term 10 be Immediately due and payable to theextent permitted by State law as liquidated damages and not as a penalty. whereupon the same shall become immediately due and payable: (b) Re-enter and take possesiidn of the Leased Equipment enfordrrg the Lease or terminating the Lease, and repossess the Leased Equipment and sell or lease the Leased Equipment or sublease it for the account 01. Lessee. holding Lessee liable for all payments up to the effective date or such selling, leasing Or subleasing and for the difference in the purchneprice, rental and other amounts paid by the purchaser, lessee or sublessee pursuant to such sale. lease or sublease and the amounts payable by Lessee hereunder; and (c) take whatever action• e t law or in equity may appear necessary or -desirable to collect the payments then due and thereafter to become due or to enforce performance and observance of any obligation. agreement or covenant of Lessee under this Lease. t t . ( I, INSURANCE. At its own expense Lessee shall.cause casualty insurance to be carried and maintained with respect to the Leased Equipment and shall carry dli7C X110NXY(aNil WMIXIS INLWORLOAR00A9(auffident to protect the lull value of the Leased Equipment and to protect Lessor from liability M all events. All insurance - proceeds from casualty losses shall be payable solely to Lessee, subject to the terms of This Lease. On acceptance of the Leased Equipment. Lessee shall have . purchased a casualty insurance policy on the Leased Equipment. a copy of which may be furnished IM Lessor. Lessee shall carry Workmen's Compensation insurance covering all employees working on. in, near Or about the Leased Equipment and shall require any other person or entity working on. in, neer or.about the Leased Equipment to carrysucb coverage, and will furnish to Lessor certificates evidencing such coverage throughout the Lease Term. " TITLE TO LEADED EQUIPMENT. Title to the Leseod Ggi3ipmmt end any end all additions. repairs, replacements or modifications thereto shall be in lheesme el Loesewi}" as nominee Mr the benefit el itseeeignea. Lessor shall hold euoh title and every lira or other similardecumonlaryovidonoeof Myna/MipshedI carry the/oko*ing4egeae: g� "This equipment is aimed by Loasemark, Ina. as nominee ler to benefit al He assignee and this equipment may not be sold, transferred Or emeumberod Lassoo shell have see right, title or internal in the Leased Equipment or any additions, repairs, replegomante or modifications thvoto except es aircrew/ sin forth is Mis-Leese.Title shall pass to Lessee upon Acceptance by Lessor of signed Certificate ofpp tit NOTICES. All notices to be given under this Lease shall be made in writing and mailed to theotherpary at its address set forth herein or et such address as the party may provide in writing hoes time to time. Any such notice shall be deemed t0 have been received len days subsequent to -mailing. 'DAMAGE OR DESTRUCTION OF LEASED EQUIPMENT. In the event the Leased Equipment is partially damaged or destroyed, Lessee will promptly repair and restore the Leased Equipment to working order for the purpose intended. Lessee shall not beentnled to any reimbursement for any such damage or destruction from Lessor. nor shall Lessee be entitled tO any diminution of the amounts payable by it pursuant to This Lease. In the event the Leased Equipment is totally damaged or destroyed. Lessee may promptly repair and restore the Leased Equipment pursuant 10 provisions of the immediately Drecedino oaraoraoh. In the alternative. Lessee shall have the option to terminate this Lease upon payment of all of the Lease Payments due during me men IBM Hardware - 1st system Qty and test system 36 D2K terminals magnetic tape dr. band printer dot band printers dot matrix printers page printer EIA's system support station pass-thru tape support RPG 11 utilities development sup utility Query 36 displaywrite language diet computer assisted training 5710 pop 5799 enhanced emulation 5875 1 1 F T i 1 of two sv Machine / 5360 3196 8809 5262 4234 4224 3812 5727 5727 6102 5727 5727 5727 5727 5727 5727 eight x al for 1st system Hardware - 2nd of two system D2K terminals display color magnetic rape drive printer pc support system support station pass-thru tape support RPG II utilities development sup utility query 36 displaywrite language dict eight 1 EXHIBIT A EQUIPMENT DESCRIPTION stens Warranty 90 days 3 years 90 days 90 days 90 days 90 days 90 days Discounted Price S 75,692.00 12,732.00 11,660.00 11,880.00 15,488.00 18,480.00 8,122.00 3,000.00 4,312.00 0.00 0.00 704.00 510.00 850.00 807.00 1,760.00 105.00 990.00 500.00 9,217.00 5176.809.00 906.00 7,122.36 ems (Police Station) 5360 3196 3179 8809 4224 5727 5727 6102 5727 5727 5727 572% 5727 5727 90 days 3 years 90 days 5184,837.36 $ 72,717.00 - 10.610.00 5,337.00 11,660.00 3,696.00 658.00 4,312.00 0.00 0.00 .704.00 510.00 850.00 807.00 1,760.00 105.00 5113.726.00 416.00 4,599.04 T tal for 2nd system 5118,741.04 8 th Systems 5303.578.40 C fief's software Police/Fire/larking tickets Training and installation Cameo soft -are - Includes: -Accounting. purchase order, accounts receivable, payroll. investments. fixed assets. construction n progress, utility billing, personnel. inventory, vehicle and equipment. municipal court and scheduling -Maintenance file -Training and modifications Miscellaneous hardware 15 personal computers ARC XT 2 B. modems 4 C. remote -5250 emulation boards 3 Epson LQ 1000 tractor feed printers 4 IBM Ouietwriter II letter feed printers 8 UDS 9600 Baud modems Telephone connections and work Miscellaneous software. etc. 1 each 3196 ANC XT computer 6 each ports for IBM 30 Miscellaneous software packages to be purchased in the future 5 71,981.60 5.200.00 5 70,510.00 7,076.00 40,060.00 5 31,171.26 1,590.00 3,357.00 2,541.00 7,534.00 14;960.00 4,100.00 1,096.00 CITY OF FAYETTEVILLE hejQ t i pu 99441-11-0-%t 1,100.00 0 ^,,TITLE mNYD2 5.1.74.74 ccrr nnn nn DATE flq'Jaf a71 /yn/ EXHIBIT 8 SCHEDULE OF RENTAL PAYMENTS LESSEE: CITY OF FAYETfEVILLE DATE OF LEASE: NUMBER AND FREQUENCY OF PAYMENTS: 60 Monthly Payments , 19 Revised amortization Rental Payment Schedule schedule to be sent reflecting no prepayment Payment Payment Earned Principal Option T19enaltX,y,� Number Amount - Interest Reduction Purchase ,r1 i 11.377.02 2,428.83 8,882.19 592,767.61 Monthly payments will 11.31].02 2,392.97 8,918.05 583,849.76 remain the same. 1 11,:111.02 2,356.97 8,954.05 574,895.72 . 4 11.311.02 2,320.83 8,990.19 565,905.52 13,311.02 2,284.53 9,026.49 556,879.03 11,113.02 2,248.09 9,062.93 _ 547,816.11 13,311.02 t 2,211.51 9,099.51 538,716.59 e 11,311.02 2,174.77 9,136.25 529,580.35 9 .11,311.02 2,137.89 9,173.13 520,407.22 10 11,.311.02 2,100.86 9,210.16 511,197.05 11 13,311.02 2,063.68 9,247.34 501,949.71 .. 17. 11,311.02 2,026.35 9,284.67 492,665.04 11 13,113.02 1,988.86 9,322.16 483,342.88 i4 . 11,111.02 1,951.23 9,359.79 473,983.09 3S 11,313.02 1,913.45 9,397.57 464,585.52 16 11,111.02 - - 1,875.51 9,435.51 455,150.01 17 11,311.02 1,837.42 9,473,60 445,676.40 V. 11,111.02 1,799.17 9,511.85 436,164.56 174 11.33.02 1,760.77 9,550.25 426,614.31 20 71,311.02 1,722.22 9,588.80 417,025.51 21 11.31.7.02 1,683.51 9,627.51 407,398.00 22 13.111.02 1,644.65 9,666.37 397,731.63 23 13.313.02 1,605.62 9,705,40 386,026 23 24 11,311.02 1,566.44 9,744.58 378,281.65 25 11.311.02 1,527.10 9,783.92 368,497.74 2. 13,371.02 1,487.61 9,823.41 358,674.32 27 11,311.02 1,447.95 9,863.07 348,811.26 26 11.511.02 1,408.13 9,902.89 338,908.37 29 11,511.02 1,368.16 9,942.86 328,965.50 30 31.311.02 1,328.02 9,983.00 318,982.50 31 11.313.02 1,287.72 10,023.30 308,959.20 12 11.511 02 1,247.25 10,063.77 298,895.43 13 11.511.02 1,206.63 10,104.39 288,791.04 34 11.311.02 1,165.83 10,145.19 278,645.85 35 73,311.02 1,124.88 10,186.14 268,459.71 36 11.511.02 1,083.76 10,227.26 258,232.45 17 11,113.02 1,042.47 10,268.55 247,963.90 16 11,111.02 1,001.02 10,310.00 237,653.90 39 71.111.02 959.40 10,351.62 227,302.28 4* 11,311.02 917.61 10,393.41 216,908.86 43 13,513.02 875.65 10,435.37 206,473.49 42 . 11.111.02 - 833.52 10,477.50 195,996.00 41 11.133.02 791.23 10,519.79 185,476.20 44 11,311.02 748.76 10,562.26 174,913.94 4S 11,311.02 706.12 10,604.90 164,309.04 46 11,311.02 663.31 10,647.71 153,661.33 --<.17, it 111 02 - 620,32 10,690_70 142,970.63 46 11,311.02 577.17 10,733.85 132,236.78 49 11,371.02 533.83 10,777.19 121,459.59 50 11,311.02 490.33 - 10,820.69 110 638 90 Sl 11,311.02 446.64 10,864.38 99,774.52 52 11,311.02 _ 402.78 10,908.24 88,866.28 51 11,171.02 358.75 10,952.27 77,914.01 .54 11,311.02 314.53 10,996.49 - 66,917.53 SS 71,571.02 270.14 11,040.88 - 55,876.65 Si. 71.511.02 225.57 11,085.45 44,791.20 r7 .11.517.02 160.8213,130.20 33,661.00 `•6 11,311.02 135.89 11,175.13 22,485.87 `•4 11,311.02 90.77 - 11,220.25 11,265.62 40 11,31/.02 45.40 11,265.62 1.00 7 .t UNIFORM COMMERCIAL CODE—FINANCING STATEMENT—FORM UCC -1 INSTRUCTIONS REORDER FROM MODERN LAW FORMS CHICAGO (312) 640-1688 1. PLEASE TYPE this form. Fold only along perforation for mailing. « ._ 2. Remove Secured Party and Debtor copies and send other 3 copies with interleaved carbon paper to the filing officer. Enclose filing fee .. .. 3. When filing is to be with more than one office, Form 2 may be placed over this set to avoid double typing. 4. Iflhe space provided for any item(s)on the fore is inadequate the item(s) should be continued on additional sheets, preferably 5'x 8 or8"x10. Only one copy of such additional sheets need be presented to the filing officer with a set of three copies of the financing statement. Long schedules of collateral, indentures, etc., may be on any size paper that is convenient for the secured party. 5. Ifcollateral is crops or goods which are or are to become fixtures, describe generally the real estate and give name of record owner. 6. When a copy of the security agreement is used as a financing statement, it is requested that it be accompanied by a completed but unsigned set of these forms, without extra fee. 7. Attie time of original fling. filing officer shoudreturn third copy as an acknowledgement. At a later time, secured party may date and sign Termination Legend and use third copy as aTnminalion Statement. This STATEMENT is presented to a filing°Meer for Ming pursuant to the Uniform Commercial Code. 1 Debtor(s) (fast Name First) and address(m) CITY OF FAYETTEVILLE 113 W. Mountain Fayetteville, AR 72701 2 Secured Party(les) andaddress(es) LEASEMARK, INC. 1604 Colonial Parkway Inverness, IL 60067 4 TMs financing statement covers the following types (or items) of property: (See Attached for Equipment Description) 6 Complete only when filing with Judge of Probate: The initial indebtedness secured by the financing statement is $ 3 Maturity date (if any) For Filing Officer (Date, lime, Number, and Filing Orate) 5 ASSIGNEE OF SECURED PARTY Check 01fcovered: 0 Proceedso&Collateral are also covered 0 Products of Collateral are also covered No. of additional Sheets presented: mid with: CITY OF FAYETTEVILLE • • t ff SignaturOtot Debtor(s) - -. (STANDARD) . (1) FILING OFFICER COPY—ALPHABETICAL By: V' ` Signature of Secured Party • EXHIBIT A ....is}'`' -"Atte' fr.-.Y. Fw; k; iesY. .14 mala^I's- 2 Lli Q .r,:epw?;,t^ ,1St:.,r. ,r... EQUIPMENT DESCRIPTION• y41;7e it- iia ;.. .,ty m�!Z -u e.:. Iw R,i.^tie: ih u.,,i - t.0 'e. kTc.e:, CJ..b,..i F•, Y`.^_ f ... ..... ,,. IBM Hardware - 1st system of. two systems • Qty and test •" 1 system 36 02K -.12 terminals 1.magnetie tape dr. - --61 band printer 2 dot hand printers dot matrix printers page printer EIA's system support station pass-thru tape support RPG II ...I ``y'I"Query 36 �'"1 di splaywrite nomm, tent - 0''i'language dict 'computer ' assisted tray ning 5710 pop 5799 1 enhanced emulation 5875 utilities 'development' sup 'utility. Machine w Warranty Discounted Price 5360 ,. 90 days ,., S 75,692.00 . 3196 3 years 12,732.00 8809 90 days,;,-. _„_11,660.00 5262 90 days 4234 90 days 4224 _ .90 days 3812 90 days - 5727 5727 6102 5727 ._5727 .5727 5727 -_5727,nc I F T 1 eight x tal for 1st system M Hardware - 2nd of two systems Police Station) system D2K 1 terminals display color magnetic tape drive printer: pc support system support station pass-thru tape support RPC II utilities' development, sup utility. query 36 - displavwrite language dict ..Freight -..._._.... -.. Tax 5360 90 days 3196 - 3 years 3179 8809 90 days •4224 5727 5727 6102 5727 5727 5727 572 57: 5727 .Total for 2nd6. system'creact[ .. .t • Both Systems Chief's software - PoliceiFire,Parking tickets Training and installation. - . 11,880.00 15,488.00 18,480.00 8,122.00 3,000.00 4,312.00 0.00 - 0.00 704.00 ;._,510.00-, -ex 850.00." 807.00 y 1,-760.00 ;:va., :ticde:v.,..r cc b is .ni 990.00 500.00 9,217,00 3176,809.00 906.00 7,122.36 $184.,837.36 $ 72,717.00 10,610.00 5,337.00 11,660.00 3,696.00 658.00 4,312.00 0.00 0.00 704.00 510.00 850.00- 807.00 1,760.00 105.00 5113,726:00- 416.00 4,599.04 $118,741.04 3303.578.40 —$ 71,981.60 'alien -software' " " • -In cl oats:• -Accounting,' purchase order„ accounts receivable,. payroll; investments. fixed.assets, -construction-, n proggress, utility billing, personnel, inventory, vehicle and equipment. municipal i}.:.-_: courtiand sch ed ulin8'�� .. _.,,_.. -. . -Maintenance file -Training.-and modifications - - Miscellaneous hardware -- - IS.pers9nal_cPa.pucers ARC -IT 5. _:fir rYrfiit • 4 C. remote -5250 emulation boards 3 Epson LQ 1000 tractor feed printers -2.'--4-IBM'Quibtwriter"II letter feed printers 4 U05 9600 Baud modems Telephone connections and work - Miscellaneous software. etc. 1 eacn 3196 ARC XT computer 6 each ports.for Miscellaneous soil Qare packages.to be purchased in the future 70,510:'00' 7,096.00 40,060.00 • 31,171.26 1,590.00 3,357.00 2,541:00 7,531.00 14;960.00 4,100.00 1,096.00 .3,100.00,_ 5.124.74 5573-nnn. no CITY OF FAYETTEVILLE mil ABY \TITLE mAYOR- litay -UNIFORM COMMERCIAL CODE—FINANCING STATEMENT—FORM UCC -1 INSTRUCTIONS I. PLEASE TYPE this form. Fold only along perforation for mailing. 2. Remove Secured Party and Debtor copies andsend other 3 copies with interleaved carbon paper to the filing officer. Enclose filing fee 3. When filing is to be with more than one office. Form 2rnay he placed over this set to avoid double typing. 4. If the space provided for any item(s) on the form is inadequate the item(s) should be continued on additional sheets. preferably 5' X 8 or 8' x 10. Only one copy of such additional sheets need be presented to the filing officer with a set of three copies of the financing statement. Long schedules of collateral. indentures, etc., may be of any size paper that is convenient for the secured party. 5. If collateral is crops or goods which are or are to become fixtures, desaibe generally the real estate and give name of record owner. 6. When a copy of the security agreement is used as a financing statement. it is requested that it be accompanied by acompleted but unsigned set of these forms, without extra fee. 7. At the time of original filing. fling officer shoed return thud copy as an acknowledgement. Ata Tater time. secured party may date and sign Temiination Legend and use third copy as a Temtinatia Statement. REORDER FROM MODERN LAW FORMS CHICAGO (312) 640-1688 ThisSTATEMENT Is presented to a filingofficer for filing pursuant to the Uniform Commercial Code. 1 Debtors) (Last Name First) and addresses) CITY OF FAYETTEVILLE-, Police Department 113 W. Mountain Fayetteville, AR 72701 2 Secured Party(ies) andaddress(as) LEASEMARK, INC. 1604 Colonial Parkway Inverness, IL 60067 4 This financing statement covers the following types (or items) of property: (.See Attached for Equipment Description) 6 Complete only when filing with Judge of Probate: The initial indebtedness secured by the financing statement is Check Ox If covered: ❑ Proceeds ofCollateral are also covered 0 Products of Collateral are also covered Flied with: CITY OF FAYETTEVILLE ff 9 ignalur )ofDebtor(s) (STANDARD) (1) FILING OFFICER COPY—ALPHABETICAL By: 3 Maturity date (if any) For Filing Officer (Date, Time, Number, and Filing Office) 5 ASSIGNEE OF SECURED PARTY No. of additional Sheds presented: • Signature of Secured Party IBM Hardware - 1st system of two systems 1 1 F T T 1 1 F T Qty and lest system 36 D2K .. terminals magnetic tape dr. band printer dot band printers dot matrix printers page printer EIA's system support station pass-thru tape support RPG II utilities development sup utility Query 36 di splaywri to language dict computer assisted training pop enhanced emulation Machine a 5360 3196 8809 5262 4234 4224 3812 eight tal for 1st system 5727 5727 6102 5727 5727 5727 5727 5727 5727 5710 5799 5875 EXHIBIT A EQUIPPIENT DESCRIPTION Warranty 90 days. 3 years 90 days 90 days 90 days 90 days 90 days Discounted Price 5.75,692.00 12,732.00 11,660.00 11,880.00 15,488.00 18,480.00 8,122.00 3,000.00 4,312.00 0.00 0.00 704.00 510.00 850.00 807.00 1:760.00. 105.00 990.00 500.00 9.217.00 $176,809.00 906.00 7,122.36 M Hardware - 2nd of two systems (Police Station) system D2K terminals display color magnetic tape drive printer pc support system support station pass-thru tape support RPG II utilities development sup utility query 36 displaywrite language diet eight x T tal for 2nd system B th Systems C 5360 90 days 3196 3 years 3179 8809 90 days 4224 5727 5727 6102 5727 5727 5727 5727 572- 5727 ief's software Police/Fire/Parking tickets Training and installation Cameo S0ttW3re Includes: -Accounting, purchase order. accounts receivable. payroll, investments, fixed assets. construction in progress, utility billing, personnel. inventory. vehicle and equipment. municipal court and scheduling -Maintenance file -Training and modifications Miscellaneous hardware 15 personal computers ARC KT 2 B. modems 4 C. remote -5250 emulation boards 3 Epson LQ 1000 tractor feed printers 4 IBM Ouietwriter II letter feed printers 8 U0S 9600 Baud modems Telephone connections and work Miscellaneous software. ere. 1 eacn 3196 ARC XT computer 6 each ports for IBM 36 Miscellaneous software packages to be purchased in the future • $184,837.36 $ 72,717.00 - 10,610,00 5,337.00 11,660.00 3,696.00 658.00 4,312.00 0.00 0.00 • 704.00 510.00 850.00 807.00 1,760.00 105.00 $113,726.00 416.00 4,599.04 $118,741.04 $303,578.40 $ 71.981.60 5.200.00 $ 70,510.00 7.096.00 40,060.00 $ 31,171.26 1,590.00 3.557.00 2,541.00 7,534.00 14;960.00 4,100.00 1.096.00 3.100.00 5.124.74 CC]t nnn n0 CITY OF FAYETTEVILLE 94.4,4 TITLE h'IAwf a Al 12-2901 - OFFICERS AND PUBLIC EMPLOYEES 338 circumstance is.held invalid. such invalidity shall not affect other provisions or applications of the Act without the invalid provision or application, and to this end the provisions of this Act are declared to be severable." Emergency. Section 10 of Acts 1967, No. 93, read: "It is hereby found and determined by the General Assembly that the proper functioning of a democratic society is dependent upon the public being informed at all times with respect to the operations of government. and public officials shall at all times be held accountable for their public actions and conduct; that this State does not now have a law requiring that all public records be open to the public. except in those instances where otherwise specifically provided by law; that many agencies are now holding executive or closed sessions which is contrary to the spirit of the public business being transacted in open public meetings, and that the immediate passage of this Act is necessary to correct said situations and to secure to the public their proper right of access to public records and meetings of public agencies, boards and commissions. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval." Approved February 14, 1967. NOTES TO DECISIONS Construction. . The penal nature of this section does not make the entire Freedom of Information Act penal so as to require it to be strictly con- strued. Laman v. McCord. 245 Ark. 401. 432 S W 247531196n CHAPTER 29 TORTS BY AGENTS AND EMPLOYEES SECTION. 12-2901. State subdivisions immune from tort liability. 12-2902. Procedure for settling tort claims against subdivision. SECTION. 12-2903. Subdivisions required to carry liability insurance on motor vehicles. 12-2901. State subdivisions immune from tort liability. — It is hereby declared to be the public policy of the State of Arkansas that all counties, municipal corporations, school districts, special improvement districts, and all other political subdivisions of the State shall be immune from liability for damages, acid no tort action shall lie against any such political subdivision, on account of the acts of their agents and employees. [Acts 1969, No. 165, § 1, p. 455.] Cited: Williams v. Jefferson Hosp. Ass'n. 246 Ark. 1231, 442 S.W.2d 243119691; Reeme v. Natural Gas Imp. Dist. No. 2. 247 Ark. 983. 448 S.W.2d 647 (1970); Wawak v. Stewart. 247 ANALYSIS -I Action for deceit. Attorney's fees. Constitutionality. Road defects. Ark. 1093, 449 S.W.2d 922 (1970); Lassiter v. State Farm Mut. Auto. Ins. Co.. 371 F. Supp. 1221 I E.D. Ark. 19741. NOTES TO DECISIONS Action for Deceit. An action against a city by a landowner who alleged that his execution of a deed granting the city an easement across his property for the installation of sewer lines wus induced by deliberate fraud and was a cause of action for deceit which would be precluded by this section. Harrington v. City of Greenbrier, 262 Ark. 773, 561 S.W.2d 302 11978). Attorney's Fees. A municipality cannot be made liable for plaintiff's attorney's fees in an action seeking to establish right to otlice of alderman. May v. Edwards. 258 Ark. 871, 529 S.W.2d 647 11975i. 111ICIIIdU Vlla1 1;11.1011Mika IVIOM111IIVai %.•WpVIaaVll Composite Signature Agreement Name and Address of Customer. Agreement No.: City of Fayetteville 113 K. Mountain Street Fayetteville, AR 72701 IBM,Branch Office Address: -401 N. Capitol Little Rock, AR 72201 IBM Branch Office No.: Customer No.: MIll1V11M1, /VOW I UIM1 1 JULI ST2/MK6 3016200( Enterprise 0 ) International Business Machines Corporation (IBM) and the Customer agree that IBM will provide and the Customer will accept the products and services ordered by the Customer in accordance with the terms and conditions stated in the applicable Agreements, designated below by the Customer's initials, which the Customer agrees to include here- in. The included Agreements are attached hereto and are incorporated in this Agreement. This Composite Signature Agreement, when signed by IBM and the Customer, has the same effect as signing each of the Agreements designated by the Customer's initials, and is effective .upon acceptance by IBM. Initials• Title of Agreement 0A/ t --- — IBM,F,ormNumber All of the following, unless selectively designated by initialing below for individual documents - Agreement for Purchase of IBM Machines IBM Maintenance Agreement Agreement for IBM Licensed Programs Agreement for Lease or Rental of IBM Machines Agreement for IBM Hourly Machine Service Z120-2892-02 Z125-3275-01 Z125-3358-00( Z125-3320-01 Z120-2826-00 a re THE CUSTOMER ACKNOWLEDGES THAT THE CUSTOMER HAS READ EACH OF THE AGREEMENTS DESIG- NATED BY THE CUSTOMER'S INITIALS, UNDERSTANDS THEM, AND AGREES TO BE BOUND BY THEIR TERMS AND CONDITIONS. Accepted by: International Business Machines Corporation i f I By Authodzed Signature CS et."" By/ \� GitThe .Payst.t. Authorized f5ignature Name (Type or Print) Date Name (Type or Print) PRESS FIRMLY WITH BALL POINT PEN ON A HARD SURFACE FOR MAXIMUM LEGIBILITY. 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J03 Jaw0lsnp 0111 of suo!sle/woo!apow pue same' pas (e 'Jawoisnp 011101luawdmba mel-uou pue sauossao0e's}uawa!a eu!y0ew'sauppew 1109 (3 II!m We •wawdtnbe wep-uou p910010s;o JO seuos . -9903210 swewepa eu!y32w'suppleA0oo 'wow 'swnleel'sau!y02w wep }o ivawaaJ6y spy Japun 0901401 nd ayi Jo; mat Aq paldeome JapJo Je • • •-woisnp Aue of Aldde ppm suompuo3 pue stwa16u!mopo; 81113241 aw6e Jawoisnp 0141 pue (wet) uop81od)op seu!y02W ssau!sng 12004804841 (Zo-Zen-OZ LZ) represents that the Customer is the owner of the machine on which - any featOre or model conversion will be installed or, if not the owner, has the authority from the owner to order the feature or model conversion and to have it installed on the owners machine. Installation by IBM , IBM will install machines, features and model conversions which are not specified by IBM as Customer Set -Up. - The Date of Installation for a machine will be the day (Monday through Friday) following the day that 1) the machine is installed under this Agreement or under the applicable IBM lease or rental agreement, or 2) an on -order machine is available for delivery or is delivered to the Customer and the Customer fails to provide a suit- able installation environment or delays installation. The Date of Installation for a feature or model conversion will be the day (Monday through Friday) following the day that the feature o model conversion is installed under this Agreement or under the applicable IBM lease or rental agreement, except as otherwise pro- v'ded in this subsection. The installation of certain features and model conversions in- volves the removal of parts which become the property of IBM. Such features and model conversions will be specified in the Supple- ment. The Customer will provide IBM access to the machine to com- mence installing each such feature or model conversion as soon as possible after its shipment from IBM but in no event more than one month following the later of its Estimated Shipment Date or ac- tual date of shipment, unless a shorter period is specified in the Supplement. In the event the Customer fails to provide IBM such ac- cess to the machine within the specified period, the Customer shall return the feature or model conversion to IBM with shipping charges prepaid, unless otherwise agreed to by IBM. If the Customer delays installation of a feature or model conver- sion (other than one which involves the removal of parts which be- come the property of IBM) more than one month from the later of its Estimated Shipment Date oractual date of shipment from IBM, its Date of Installation will be considered to be the day (Monday through Friday) one month following such later date of shipment. IBM will notify the Customer of the Date of Installation of each on -order machine, feature or model conversion. Customer Set -Up Each machine, feature or model conversion specified by IBM as Customer Set -Up (CSU) and all machine elements and acces- sories will be set up by the Customer in accordance with the in- structions furnished by rem. The Date of Installation will be the day (Monday through Friday) following the day the machine, feature, model conversion, machine element or accessory is considered to be installed under this Agreement or under the applicable IBM lease or rental agree- ment. An on -order CSU machine will be considered to be installed on the last day of the CSU allowance period for such machine. The CSU allowance period, which does not include Saturdays or Sun- days, commences on the day (Monday through Friday) following the date of receipt of the machine at the Customer's premises. However, when a CSU machine is delivered in conjunction with, and for attachment to, a non -CSU machine delivered from IBM, such CSU machine will be considered to be installed as deter- mined in this paragraph or on the date such non -CSU machine is installed, whichever is later. The number of CSU Allowance Days for each CSU machine is specified in the Supplement. An on -order- CSU feature or model conversion, machine ele- ment or accessory will be considered to be installed one month fol- lowing the later of its Estimated Shipment Date or its actual date of shipment from IBM. PURCHASE OF INSTALLED MACHINES The Purchase Price stated in the Supplement is exclusive of any charges which are due or may become due under the applicable IBM lease or rental agreement. The Effective Date of Purchase for installed Machines shall be the later of the first day of the Quotation Month or the day on which the payment required under the Section entitled Prices and Payment" of. this Agreement is received by IBM at its IBM Branch Office or Remit to Address shown in the Supple- ment, provided such receipt is not later than the last day of the Quotation Month. The Machines will be terminated under the appli- cable IBM lease or rental agreement as of the day immediately pre- ceding the Effective Date of Purchase. Machines purchased under this Agreement will be 1) newly manufactured by or for IBM from new and serviceable used parts which are equivalent to new in performance in these Machines, 2) assembled by or for IBM from serviceable used parts, 3) Machines which have been previously installed, or 4) Machines which are presently installed with the Customer. IBM warrants that on the Date of Installation each on -order Machine will be in good working order and will conform to IBM'S offi- cial published specificationsMich are available upon request. The Warranty Period for each Machine, specified in the Supple= ment, commences on its Date of Installation as defined in the Sec- tion entitled "Installation." INSTALLED MACHINES PURCHASED AFTER THEIR WAR- RANTY PERIOD HAS EXPIRED ARE SOLD ON AN "AS 1S" BASIS. Service and Parts Warranty Commencing on the Date of Installation of each on -order machine, model upgrade and feature addition, or on the Effective Date of Purchase of each installed machine, model upgrade and feature addition, and continuing for the duration or remainder, if any, of the Warranty Period, IBM agrees to provide the availability of warranty service at no additional charge except as set forth in this Section or in the subsection entitled "Travel Expense " Warranty service will be provided, as required, by repairing the machine, model upgrade or feature addition or exchanging the machine or machine element under one of the Types of Service described in the subsection entitled 'Types of Service." The specific Type of Service for each Machine during its Warranty Period will be specified in the Supplement. For certain Machines, warranty op- tions that provide altemative methods of obtaining warranty ser- vice under another Type of Service are available under an IBM maintenance agreement. IBM shall have full, free and safe access to the Machines to pro- vide IBM On -Site Repair and IBM On -Site Exchange Types of Ser- vice thereon. The Customer shall promptly inform IBM of any change in a Machine's location during the Warranty Period The Customer is responsible to initially determine that the machine or machine element requires warranty service Before re- questing such service, the Customer agrees to follow the problem determination, problem analysis and service request procedures provided by IBM. The Customer is responsible for removing, controlling and re- placing or reloading funds contained in the Machines. IBM will ser- vice Machines containing funds only whenthe cash container can- not be opened prior to repair by IBM, n which case the Customer will remove the funds as soon as the container is or can be opened. The term 'tailing machine" refers to a machine or machine ele- ment requiring warranty service as initially determined by the Cus- tomer and, as applicable, verified by IBM. The term "exchange machine" refers to a machine or machine element provided by IBM to the Customer under an Exchange Type of Service. Repair Types of Service to keep the machines, model upgrades and feature additions in, or restore them to, good working order will include remedial maintenance and may include preventive mainte- nance based on their specific needs as determ ned by IBM. Repair Types of Service may also include lubrication, adjustments and re- placement of parts, all as deemed necessary by IBM. Parts, which may be used parts, will be installed by IBM on an exchange basis, and the replaced parts become the property of IBM. Under a Repair Type of Service when the Customer presents a failing machine to IBM, IBM reserves the right to venfy that warranty service is required for such machine. If so verified IBM will provide warranty service for such machine. The Customer Is responsible to remove, or implement other safeguards to protect, all program- ming, programs, data and removable storage media before a fail- ing machine is to be repaired Under an an Exchange Type of Service, when the Customer presents a failing machine to IBM, it becomes the property of IBM at the time of exchange. An exchange machine may not be new, but will be in good working order, and becomes the Customer's prop- erty at the time of exchange. IBM reserves the right to verify that warranty service is required for a failing machine and that it is otherwise acceptable for exchange, as provided for in this para- graph, prior to providing an exchange machine. The Customer is responsible to remove all programming, programs, data and re- movable storage media, and all non -IBM parts, options, alterations and attachments before a failing machine is presented for ex- .han,.e Tha r.,iota-try-stir arse. 'ha. all en ink ae,.." nnt .e,n...,nA..,m -GJ• OOVI my./ u!! I!V a Illdlld u! nlleJdudu uayl Saipu Ie!J21EU1 pue sped (!! 8UJq 6u!4!em pue l8Aep 6wpnpu!'ewq am/wasp); sa6Je40 wnw!u!w pue sale) aowes Apnoq apemen ,ipeieua6 ;pip (! s,wel le lueweei6y s!y3 Japun 'pouad A3ue1JBM algeogdde 0144 6uunp 'we! 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'P919418 'pane; -Op S! y3114M e6Uey3xe 101 aUlU3EW 61111912 W111 011wica ¢! lnu wen in service time caused by— a) ,failure to continually provide a suitable environment pre - %scribed by IBM including adequate space, electrical power, air conditioning and humidity control; b) neglect; misuse, including use of the Machines for purposes other than for which designed; c) accident; disaster, including water, wind and lightning; trans- portation; vandalism or burglary; d) alterations, including any deviation from IBM's Machine de- sign; e) attachments, including any interconnection to the Machine of non -IBM products or devices not under an IBM maintenance agreement; f) IBM Machines, other Machines or accessories, except those IBM Machines, other Machines or accessories that are owned by IBM, under warranty from IBM, or under an IBM maintenance agreement; g) model conversions, including upgrades and downgrades between models and machine types, or installation or re- moval of an IBM feature whenever any of these activities was performed by other than IBM, except that this subsection (g) will apply only during the first three-month period sub- sequent to such machine modification; and/or h) maintenance or repair of the Machine performed by other than IBM; 2) Repair of Machine damage, replacement of maintenance parts (due to other than normal wear) or repetitive service calls caused by the use of, inadequate use of, or failure to use, supplies' 3) Service for accessories other than as provided in the subsec- tion entitled "Additional Provisions for Machine Elements and Accessories"; 4) Inspection of Machines, including, but not limited to, inspection of altered Machines, damaged Machines and certain other cus- tomer -requested inspections; 5) Replacement or addition of maintenance parts and increase in service time, associated with the installation by IBM of an en- gineering change, required due to model conversions, includ- ing upgrades and downgrades between models and machine types, or installation or removal of an IBM feature whenever any of these activities was performed by other than lBM; 6) Rearrangement or relocation of Machines and provision of nec- essary materials; and 7) Replacement of a part not fumished for the Machine by IBM with a directly interchangeable IBM maintenance part, and any in- crease in service time associated with such activity except that IBM will not replace any part which is included in an alteration. Other Warranty Provisions and Exclusions The warranties under this Agreement are in lieu of any conflict- ing statement of limited warranty included with a Machine ship- ment, except that, for Machines which are subject to Federal or State consumer warranty laws, the statement of limited warranty included with a Machine shipment applies. The warranties under this Agreement do not include 1) fumish- ing supplies, painting or refinishing the Machines or furnishing ma- terial therefor, 2) electrical work extemal to the Machines, 3) instal- lation, maintenance or removal of alterations or attachments to the Machines, and 4) any service which is impractical tor IBM to render because of alterations in, or attachments to, the Machines. IBM does not warrant that the operation of the Machines or pro- gramming will be uninterrupted or error free or that all program- ming errors will be corrected. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MER- CHANTABILITY AND FITNESS FOR A PARTICULAR PUR- POSE. OTHER PRODUCTS AND SERVICES Following the Warranty Period, IBM will provide, upon request and at IBM'S charges and terms then generally in effect, mainte- nance service and maintenance parts for the Machines and pro- gramming services for programming as long as such services and parts are generally available. Unless such services and parts are provided under another written agreement between the Customer and IBM, they shall be subject to the applicable terms and condi- contract with IBM for such other products and services as available, but only under a written agreement between the parties. ENGINEERING CHANGES IBM will furnish, upon request, and at IBM's prices then generally in effect, such engineering changes as IBM shall have available for sale and which may be suitable for use on or with the Machines. Any replaced parts become the property of IBM. IBM makes no rep- resentation that engineering changes announced in the future will be suitable for use on or with the Machines. PATENTS AND COPYRIGHTS IBM will, at its expense, defend the Customer against any claim that any Machines or programming supplied hereunder infringe a patent or copyright in the United States or Puerto Rico, and will pay all costs, damages and attomey's fees that a court finally awards as a result of such claim. To quality for such defense and payment, the Customer must: 1) give IBM prompt written notice of any such claim; and 2) allow IBM to control and fully cooperate with IBM in, the defense and all related settlement negotiations. IBM's obligation under this Section is conditioned on the Cus- tomer's agreement that if the operation of the Machines or pro- gramming become, or in IBM's opinion are likely to become, the subject of such a claim, the Customer will permit IBM, at its option and expense, either to procure the right for the Customer to con- tinue using the Machines or programming or to replace or modify them so that they become noninfringing; however, if neither of the foregoing altematives is available on terms which are reasonable in IBM'S judgment, the Customer will retum the Machines or pro- gramming upon written request by IBM. IBM agrees to grant the Customer a credit for returned Machines as depreciated. The de- preciation shall be an equal amount per year over the life of the Machines as established by IBM. IBM shall have no obligation with respect to any such claim based upon the Customer's modification of the Machines or pro- gramming or their combination, operation or use with apparatus, data or programs not fumished by IBM. This Section states IBM'S entire obligation to the Customer re- garding infringement or the like. LIMITATION OF REMEDIES IBM's entire liability and the Customer's exclusive remedy are set forth in this Section. In all situations involving performance or nonperformance of Machines or programming furnished under this Agreement, the Customer's remedy is 1) the adjustment or repair of the Machine or replacement of its parts by IBM, or, at IBM's option, replacement of the Machine or correction of programming errors, or 2) if, after re- peated efforts, IBM is unable to install the Machine or a replacement Machine in good working order, or to restore it to good working order, or to make programming operate, all as warranted, the Cus- tomer shall be entitled to recover actual damages to the limits set forth in this Section. For any other claim conceming performance or nonperformance by IBM pursuant to, or in any other way related to the subject matter of, this Agreement or any order under this Agreement, the Customer shall be entitled to recover actual dam- ages to the limits set forth in this Section. IBM's liability for damages to the Custome- r for any cause what- soever, except as otherwise stated in this Section, and regardless of the form of action, whether in contract or in tort including negli- gence, shall be limited to the greater of $100,000 or the Purchase Price stated in the applicable Supplement for the specific Machines that caused the damages or that are the subject matter of, or are directly related to, the cause of action. The foregoing limi- tation of liability will not apply to the payment of costs, damages and attomey's fees referred to in the Section entitled "Patents and Copyrights," or to claims by the Customer for personal injury or damage to real property or tangible personal property caused by IBM's negligence. 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The tern "exChange machine" refers to an IBM machine, in- cluding its IBM and selected non -IBM features, a machine element or a selected nor'IBM machine provided by ISM to the Customer under an Exchange Type of Service. Repair 'Types of Service to keep the Machines in, or restore them to, good working order will include remedial maintenance and may include preventive maintenance based on their specific needs as determined by IBM. Repair Types of Service may also in- clude lubrication, adjustments and replacement of maintenance parts; all as deemed necessary by IBM. Maintenance parts, which may be used parts, will be installed by IBM on an exchange basis, and the replaced parts become the property of IBM. Under a Repair Type of Service, when the Customer presents a failing machine to IBM, IBM reserves the right to verify thatmainte- nance service is required for such machine. If so verified, IBM will provide maintenance service for such machine. The Customer is responsible to remove, or implement other safeguards to protect, all programming, programs, data and removable storage media before a failing machine is to be repaired Under an Exchange Type of Service, when the Customer pre- - sents a failing machine to IBM, it becomes the property of IBM at the time of exchange. An exchange machine may not be new, but will be in good working order, and becomes the Customers property at the time of exchange. IBM reserves the right to verify that maintenance service is required for the failing machine and that it is otherwise acceptable for exchange, as provided for in this para- graph, prior to providing.an exchange machine. The Customer is responsible to remove all programming, programs, data and re- movable storage media, and all non -IBM parts, options, alterations and attachments before a failing machine is presented for ex- change. The Customer agrees that all such items not removed will be deemed to have been discarded by the Customer. The Custom- er will not present to IBM a failing machine for exchange which is defaced; altered, in need of repair not included in maintenance ser- vice or damaged beyond repair. However, if upon inspection IBM determines that it has received in exchange a failing machine in such condition, the exchange will be nullified and each party will return to the other the machine or machine element in its posses- sion. The Customer represents end warrants that at the time a fail- ing machine is presented to IBM under an Exchange Type of Ser- vice, and thereby becomes IBM's property, it will be free of any out- standing liens, security interests or other encumbrances held by any third party. Warranty Option For certain IBM Machines, Warranty Options are available which permit the Customer to select an alternative method of receiving any required warranty service in lieu of the method provided under the IBM warranty, and the Warranty Option selected will also in- clude maintenance service following the Warranty Period 0 such Warranty Period is less than one year. Such methods are de- scribed in the subsection entitled "Types of Service" and specified in the Supplement. In this Agreement service under Warranty Op- tion -will be referred to as "maintenance service'; however, any provisions of the Agreement for Purchase of IBM Machines or of an IBM warranty statement, if applicable, which are more favorable to the Customer than the provisions hereunder, remain in effect. A Warranty Option, if available, for an IBM Machine may be selected by the Customer at any time before the Machine's Warranty Period expires and begins on the Effective Date specified'in the Supple- ment. For an IBM Machine with a Warranty Period of one year or less, a selected Warranty Option expires one year from the date such Machine's Warranty Period began. For an ISM Machine with a Warranty Period greater than one year, a selected Warranty Op- tion expires at the end of such Machine's Warranty Period, Maintenance service for an ISM Machine following a Warranty Option will be provided under the same Type of Service selected for such Warranty Option at IaM's then current maintenance charges. , Types of Service • The Types of Service available for each machine will be deter- mined by IBM. The Customer will select one of the available Types of Service for each machine and this selection will be shown in the Supplement. The Customer may subsequently' select another available Type of Service upon 15 days' notice to IBM. IBMOnSite Repair (10R) IBM will provide maintenance service for the failing machine 'thn (N„clmmet: a Inrntinn IBM will 1) deliver the exchange machine to the Customer's location, 2) disconnect the failing machine, 3) connect the ex- change machine, 4) verity its operation, and 5) remove the fail- ing machine from the Customer's location. Customer On -Site Exchange (COE) • IBM will have an exchange machine delivered to the Custom- er's location. The Customer will 1) disconnect the failing machine and prepare it for shipment to IBM, 2) connect the ex- change machine, and 3) verify its operation. The Customer will follow IBM's instructions regarding the shipment of the failing machine to IBM. Such shipment will be at IBM'S expense. Customer Carry -In Exchange (CCE) The Customer will 1) deliver the failing machine to an IBM Service/Exchange Center or other IBM designated location, 2) pick up the exchange machine and take it to the Customer's lo- cation, 3) connect it, and 4) verify its operation. In lieu of such delivery and pickup, the Customer may ship the failing machine, prepaid, in the original shipping container or equivalent, to an IBM Service/Exchange Center designated to receive such a shipment. Following receipt of the failing machine, IBM will ship the exchange machine to the Customer's location, prepaid, within the United States or Puerto Rico. CustomerCarry-In Repair (CCR) The Customer will 1) deliver the failing machine to an IBM Service/Exchange Center or other IBM designated location, 2) following any necessary repairs, pick up the machine or machine element and take it to the Customer's location 3) con- nect it, and 4) verify its operation In lieu of such delivery and pickup, the Customer may ship the failing machine, prepaid, in the original shipping container or equivalent, to an IBM Service/Exchange Center designated to receive such a sh'pment. Following any necessary repairs, IBM will ship the machine or machine element to the Customer's location, prepaid, within the United States or Puerto Rico. Risk ofLoss orDamage ' • The, Customer agrees that the Customer is responsible for risk of .loss, of, or damage to, Machines during the period such Machines are in transit to and from IBM, except for loss or damage caused by IBM'S negligence. However, IBM is responsible for risk of loss of or damage to, 1) Machines owned by IBM and/or 2) Machines owned by other than IBM while in possession of IBM or in transit from IBM by an IBM -selected carrier whose charges were pre- paid byIBM. Periods of Maintenance Service The Base Period of Maintenance Service ler IBM On -Site Repair and IBM On -Site Exchange Types df Service is from 7 a.m. to 6 p.m., Monday through Friday unless otherwise designated by IBM in the Supplement. For certain machine types designated by IBM, the Customer may select Optional Periods of Maintenance Service shown in the Supplement. The Optional Period of Maintenance Service for Monday through Friday must include the Base Period of Maintenance Service and must be the Same consecutive hours each day. The Optional Period of Maintenance Service on Satur- day or Sunday must be the same consecutive hours on all Satur- days or Sundays, respectively. Subsequent to the date the machinebecomes subject to this Agreement, the Customer may select or change Optional Periods of Maintenance Service to be effective upon 15 days' -notice to IBM. The Period of Maintenance Service for Customer On -Site Ex- change, Customer Carry -In Exchange and Customer Carry -In Re- pair Types of Service is the normal business hours of the applica- ble IBM Service/Exchange Center. ENGINEERING CHANGES Engineering changes for Machines determined applicable by IBM, will be controlled and installed, as specified by IBM, under this or another applicable ISM agreement. However, the Customer may, by providing notice subject to written confirmation by IBM, elect to have only mandatory changes, as determined by IBM, installed on Machines. CHARGES• The Customer agrees to pay maintenance charges for each Machine consisting of 1) a Minimum Maintenance Charge or Mini- mum Warranty Option Charge and 2) Additional Maintenance :senddns'asn 04 amps] Jo 'jo esn aienbepeu! 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EXCLUSIONS IBM will not provide the following services under this Agreement: 1) furnishing supplies, painting or refinishing the Machines or furnishing materials therefor; 2) electrical work extemal to the Machines; 3) installation, maintenance or removal of alterations or attach- ' mentstotheMachines;and 4) any service which is impractical for IBM to render because of alterations in, or attachments to, the Machines. INVOICING Minimum Maintenance Charges and Additional Maintenance Charges for Optional Periods of Maintenance Service will be in- voiced in. advance for the applicable invoice period for each machine shown in the Supplement. -The Additional Maintenance Charge or Estimated Additional Maintenance Charge for the amount of processing for Usage Plan Machines will be invoiced fol- lowing the period to which it applies. All other charges or credits will be invo'ced when or after they are incurred or earned. Monthly charges, when prorated, will be prorated on the basis of a 30 -day month. PAYMENT Payment of maintenance charges will be made within 30 days after the date of the invoice. All other charges hereunder are pay- able as specked in the invoice. The Customer will be entitled to a partial credit for maintenance charges so paid upon the with- drawal of Machines or termination of this Agreement, as set forth in the Section entitled "Wittidrawal/Termination," prior to the expi- ration of the invoice period for which the payment applies. W ITH D R A W A L/TE R M I N ATI O N The Customer may withdraw a Machine from this Agreement upon one month's written notice to IBM a) after the Machine has been under this Agreement for at least six months, b) after the Machine has been under this Agreement for at least one month and it has been removed from the Customer's location, or c) on the effective date of the notice of an increase in maintenance charges for the Machine. IBM may withdraw a Machine from thisAgreement: a) upon three months' written notice to the Customer, one year or more after maintenance service for such Machine has commenced, but not prior to the end of the period for which IBM has, prior to the date of such notice, submitted an invoice to the Customer for the Minimum Maintenance Charge for such Machine; or b) upon one month's written notice to the Customer, following any repetition of the need for additional repair of such Machine due to causes described in items (1) (b) or (1) (h) of the Section entitled "Services for Additional Charge." Either the Customer or IBM may withdraw Machines or terminate this Agreement at any time, by written notice, for failure of the other party to comply with any of its terms and conditions. This Agreement may be terminated by either party upon one month's written notice following withdrawal of all Machines and ful- fillment of all obligations hereunder. LIMITATION OF REMEDY AND DISCLAIMER OF WARRANTY IBM's entire liability and the Customer's exclusive remedy for damages from any cause whatsoever, and regardless of the form oe imiteu to aurua uaruaye5 up to HIV yrt/dAVI VI gal uvu ul till amount equal to 12 months' maintenance charges for the specific Machines under this Agreement that caused the damages or that are the subject matter of, or are directly related to, the cause of ac- tion. Such maintenance charges will be those in effect for the spe- cific Machines when the cause of action arose. The foregoing limi- tation of liability will not apply to claims by the Customer for per- sonal injury or damage to real property or tangible personal prop- erty caused by IBM's negligence. In no event will IBM be I able for any lost profits, lost savings, inci- dental damages or other consequential damages, even if IBM has been advised of the possibility of such damages, nor will IBM be li- able for loss of funds contained in, dispensed by or associated with, any Machine under this Agreement. IBM will not be liable for any claim by the Customer based on any third party claim. THIS IS A SERVICE AGREEMENT. THERE ARE NO IBM WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MER- CHANTABILITY AND FITNESS FOR •A PARTICULAR PUR- POSE. • SERVICES FOR OTHER MACHINES If requested by the Customer, and agreed to by IBM, IBM will pro- vide maintenance service and/or other services (services), if avail- able, for other machines for which IBM maintenance service is gen- erally available and for so long as such maintenance service is available (unless such services are the subject of another written IBM agreement). If such services are performed by IBM on an hourly service basis, they will be provided at IBM's a) then generally avail- able hourly service rates and minimum charges for service time, including travel and waiting time, b) parts and material prices then generally in effect, and c) charges for travel and shipping expense, all as applicable. Such services shall be subject to the applicable terms and conditions of this Agreement, including, but not limited to, this Section and the Sections entitled "Services for Additional Charge" and "Limitation of Remedy and Disclaimer of Warranty " and such services shall also be subject to other terms and condi- tions included in any IBM supplied documents fumished in conjunc- tion with the services provided. However, if such a document con- tains a statement of the dollar value of IBM's limitation of remedy such dollar value shall apply. GENERAL This Agreement is not assignable by the Customer without the prior written consent of IBM. Any attempt to assign any of the rights, duties or obligations of this Agreement without such consent is void. Maintenance service or services for additional charge do not as- - sure that the operation of the Machines will be uninterrupted or error free and IBM is not responsible for failure to fulfill its obliga- tions under the Agreement due to causes beyond its control The Customer represents that the Customer is either the owner of each Machine under this Agreement or authorized by the owner to include such Machine under this Agreement. = All features and model upgrades that are 1) eligible for mainte- nance service under this Agreement, 2) installed on a machine under this Agreement, and 3) not under IBM warranty or another manufacturer s warranty must be under this Agreement with the same Type of Service and, if applicable, the same Optional Periods of Maintenance Service as the machine on which they are installed. IBM services described herein may be rendered by the use of IBM -selected independentcontractors. IBM may, upon three months' written notice to the Customer, modify the terms and conditions of this Agreement. However, if such modification is unfavorable to the Customer for an affected Machine, its effective date will be delayed for such Machine until the expiration of the period for which IBM has submitted an invoice to the Customer or six months after such Machine became subject to this Agreement, whichever is later. Otherwise, this Agreement can only be modified by a written agreement duly signed by per- sons authorized to sign agreements on behalf of the Customer and of IBM. Any variance from the terms and conditions of this Agree- ment in any order or other written notification from the Customer will be of no effect. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enfor- ceability of the remaining provisions shall not in any way be af- fected or impaired thereby. .. r..., . ,,. aseq ejep Lions u! pau!eluoo elep Aue uosfad fegjo Aue 03 algel!ene 6u!>fewjo-esddfnd ayl foj 'joeiayl lied fo 'aseq elep Lions ;o wfoj Aue of sseooe. ;o fauuew Aue Uwfed fo a>lew iou (legs iewolsnayj,; sleualeli�l wef6md pesuaoq jo AlunoaS pue uo!3Oalofd„ papgue uo!loas Sql U! 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". sweJ6oad pasuaall WO! O! luaweei6y • '' dO3H3H U31LVW 133P8nS 3H1 O1 ONIIV13H S311HVd 3H1 N33M138 SNO11VOINnvwOO H3HIO liV ONV 'N3111HM HO IVHO 'SIN] W33HOV HOIHd HO SIVSOdOHd liV ON1O3SH3dnS S3I1HVd 3H1 N33M138 1N3W33HJV 3Hl 4O IN3W31VIS 3AISnioX3 ONV 3131dWO3 3H1 38.E IIIM '318VOIld -dV 41 '1N3W31V1S AINVHHVM W81 NV HO S3NIHOVW W81 dO 3SVHOHnd HOd 1N3W338OV 3H1 ONV '3Hnlnd. 3H1 NI 3AII33dd3 3SOHI $NIOfiONI 'SIN3W3lddns ONV SIN3WON3WV WWI 3ISVOIIddV Sl1 aNV 1N3W I SNO111ONOO ONV SWH31 S1.1 A8 ONnO8 39 O1 S33HOV ONV '11 SONV1StI3ONn IN3W33HOV SIH1 GV3H SVH H3WOISnO 3H1 1VH1 S3OO31MONNOV H3WOlSnO 3H1 MON jo 03e39 014310 smel eqi Aq peweno6 eq lI!m luawaaf6y s!yoA l •r. ..- .anp seM luawAed isel ay; elep eq; wof; sJBOA 0M3 ueyl afow 'luawAed -uou 101 uol3ae ue 40 OSBO 014; u! 'JO uasue 8914 uog3e 3o esneo 0143 104le S1eeA 0Ml uegj Blow nei fO fowolsnn eulfoume Aa iu6noia an aumor¢ea in mis Hgreement... TUe'Customer shaft not reverse assemble or reverse compile •the licensed programs in whole or in part. Temporary License Transfer The Customer is authorized to transfer the license to and use the licensed program materials on: 1) a backup machine when the designated machine or an associated unit required for use of the licensed program is temporarily inoperable until operable status is restored and processing on the backup machine is completed; or 2) another machine for assembly or compilation of the li- censed program materials if the designated machine and its associated units do not provide the configuration required for assembly or compilation. . Installation License When IBM specifies "Installation License Applies" the Cus- tomer is also authorized to use the licensed program materials on any other machine in the same installation as •the designated machine. For purposes of this Agreement, "same installation" shall mean a single room or contiguous rooms unless otherwise agreed to in writing by IBM. Location License When IBM specifies "Location License Applies" the Customer is also authorized to use the licensed program materials on any other machine in the same location as the designated machine. For purposes of this Agreement, "same location" shall mean a single physical Customer location designated bya single mailing address and contained within a single building unless otherwise agreed to in writing by IBM. Change in Designated Machine The Customer may notify IBM of the Customer's intention to change the designation of the machine on which licensed program materials are to be used. The change of designation will be effective upon the date set forth in the form entitled "Confirma- tion of Change in Designated Machine" furnished to.the Cus- tomer by IBM. r .. Additional Licenses Each additional licensefor for licensed program materials already licensed by the Customer under this Agreement must be ordered as described herein. For additional licenses, in lieu of distribution from IBM, the Customer may elect to copy those licensed program materials previously distributed to that Customer by IBM in machine readable form. The Customer may make such copy upon receipt of a Supplement issued by IBM which designates the Effective Date for Additional License requested by the Customer. The testing period, if any, for such additional license will commence on the Effective Date for Additional License. Permission to copy granted in this subsection does not apply to licensed program materials provided by IBM in printed form. For certain licensed programs, IBM may offer the Distributed Systems License Option (DSLO) under which licenses in addition to the initial license (Basic License) may be obtained for a DSLO charge. When ordering additional licenses for such a licensed program, the Customer must designate whether an additional Basic or DSLO License is requested. For each OSLO License, the Customer will: 1) copy those licensed program materials previously dis- tributed in machine readable form to the Customer by IBM under the Basic License and use such copies on the machine designated in the Supplement; . 2) provide problem documentation to IBM through the loca- tion of the Basic License; 3) at IBM's request, recreate any problems at the location of the Basic License, if Local Service or Local Assistance as specified by IBM is available for the Basic License: and 4) distribute to, install and test on the DSLO designated machine any new release, correction or bypass provided by IBM to the Basic License designated machine. Program services and the warranty, if any, for the licensed program will be provided for DSLO Licenses only through the Basic License location and there will be no testing period for the DSLO Licenses. or alsconnnuance or a Cask License snaii oe no➢cE tinuance of all DSLO licenses for that Basic License. CHARGES The charges applicable to each licensed program will be specified by IBM and will consist of a,one-time charge, an upgrade charge, periodic charges, and any initial charge and/or any process charge. Periodic charges, which may be monthly, quarterly, semi annual or annual, will continue until the licensed program is discontinued. However, for certain licensed programs, IBM may specify a consecutive number of payments after which further periodic charges will be waived. , Forcertain licensed programs, IBM may designate one or more replacement licensed programs. When a licensed program is discontinued and replaced by the Customer with an IBM desig- nated replacement licensed program an upgrade charge as specified by IBM will apply. , Licensed optional materials. may be subject to a charge as specified by IBM. Any additional charges for program services for licensed programs will be at IBM's then applicable hourly service rates and minimum charges and such services will be provided under the terms and conditions of this Agreement unless provided under separate written agreement signed by the Customer and IBM. Commencement and Invoicing of Charges Periodic charges will commence on the day, Monday through Friday, following the end of the testing period, or 10 days after shipment of the licensed program by IBM if there is no testing period, except as set forth below in this subsection. Monthly charges for a partial month's use will be prorated based on a thirty -day month. Other periodic charges will not be prorated and are not refundable in whole or in part. Periodic charges will be invoiced in advance. Unless otherwise specified by IBM, one-time charges, initial charges, upgrade charges and licensed optional materials charges will be due on the day, Mondoay through Friday, following the end of the testing period, or 10 days after shipment of the licensed program materials by IBM if there is no testing period or if such period has expired, except as set forth below in this subsection. For additional licenses for which the Customer has made copies pursuant to the subsection entitled "Additional Licenses" and for which there is no testing period, periodic charges will commence and other charges will be due upon the Effective Date for Additional License designated in the Supplement. Process charges will be due upon receipt by the Customer of the licensed program materials to which such charges apply and are not refundable even if the Customer discontinues the licensed program prior to or during the testing period. Payment will be made as stated in the invoice. Applicable Taxes In addition to the charges due under this Agreement, the Customer agrees to pay amounts equal to any taxes resulting from this Agreement, or any activities hereunder, exclusive of taxes based on IBM's net income. Price Changes Periodic charges are subject to change by IBM upon three months' written notice to the Customer. Any changes in periodic charges become effective on the first day of the Period which commences on or after the effective date specified in the notice. Initial charges, one-time charges, process or upgrade charges, and charges for licensed optional materials are subject to change without prior notice except that such charges shall not be increased if, prior to the date of the notice, 1) the licensed program materials had been shipped by IBM, or 2) the Customer had copied licensed program materials pursuant to the subsec- tion entitled "Additional Licenses." In addition, if the Customer's written order was received by IBM prior to the announcement of such increase in charges, such charges shall not be increased if, within one month after the date of notice, shipment of the licensed program materials occurs or the Customer copies licensed program materials pursuant to the subsection entitled "Additional Licenses." 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When a subsequent release of a licensed program which has the same program number becomes available, IBM may discon- tinue program services for any or all prior releases by notice effective on the date stated therein. For any licensed program, IBM shall have the rig ht to charge for any of the foregoing program services to the extent they are not specified as provided without additional charge. Other types of program services may be specified by IBM. IBM shall also have the right to charge for any additional effort which results from providing program services for an altered licensed program or for a release which is not current. IBM does not guarantee service results or represent or warrant that all errors or program defects will be corrected. PERMISSION TO MODIFY 1 ' The Customer may modify any licensed program materials in machine readable form and/or merge such materials into other program material to form an updated work for the Customer's own use; provided that, upon discontinuance of the licensed program, the licensed program materials will be completely removed,from the updated work and dealt with under this Agreement as if permission to modify or merge had never been granted. Any portion of the licensed program materials included in such an updated work will continue to be subject to all terms of this Agreement. . ' PROTECTION AND SECURITY OF LICENSED PROGRAM MATERIALS: The Customer will take appropriate action, by instruction, agreement or otherwise, with any persons permitted access to licensed program materials so as to enable the Customer to satisfy the Customer's obligation under this Agreement. All copies of licensed program materials provided by IBM or made by the Customer including translations or compilations or partial copies within modifications, derivative works, and updated works are the property of IBM and may not be distributed by the Customer to any other persons, including other licensees of the licensed program, without IBM's prior written consent. The Customer will reproduce and includethe copyright notice on any such copies made by the Customer in accordance with the copyright instructions provided by IBM. The Customerwill maintain records of the numberand location of all copies of licensed program materials and will notify IBM in writing if the original or any copy of the licensed program materials will by kept atan n installation (or location, when IBM has specified "Location License Applies") other than that of the machine designated in the applicable Supplement. The Customer will insure, prior to disposing of any media, that any licensed program materials contained thereon have been erased or otherwise destroyed. The Customer will not provide or otherwise make available any licensed program materials in any form without IBM's prior written consent'except to Customer employees or IBM em- ployees, or to other persons during the period such other persons are on the Customer's premises, for purposes specifically related to the Customer's authorized.use of the licensed program. LICENSED PROGRAM SPECIFICATIONS For each licensed program which is warranted, IBM will publish, at the time that licensed program becomes generally available, a document entitled "Licensed Program Specifica- tions." Such Licensed Program Specifications maybe updated by IBM from time to time and such updates may constitute a change in specifications. WARRANTY. Each licensed program which is specified in the Supplement as warranted will conform, when shipped to the Customer, to the Licensed ProgramSpecifications which are in effect for that licensed program at that time, provided the licensed program is properly used in a Specified Operating Environment. If the Customer believes there is a defect in a licensed program such that it does not meet its Licensed Program Specifications, the Customer must notify IBM while.program services are available for the program. IBM does not warrant that the functions rnntninod in a lirones d nrnnrnm will moot tho fl , ctnmor'c beleuwu w, use uy l lu %aubtuuIeI, ul film l,c VIJOIOINIl VI u,c licensed program will be uninterrupted or error free or that all program defects will be corrected. All other licensed programs will be distributed on an "As Is" basis without warranty of any kind either express or implied. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MER- CHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. SPECIFIED OPERATING ENVIRONMENT Each licensed program is designed to operate on one or more IBM machine types and, in most instances, in conjunction with other IBM equipment and programs. The Licensed Program Specifications for each warranted licensed program will state the environment in. which the licensed program is designed to operate: For licensed programs distributed on an As Is" basis, the -Specified Operating Environment will be stated in a notice of availability of the licensed program. -, • - . Program services for a licensed program used in other than a Specified Operating Envi ronment are su bject to lim itations occa- sioned by=the differences. between_ the Specified Operating Environment and the Customer's operating environment and by the extent of the local IBM representative's knowledge of the Customer's -equipment and programs. Such program services will be subject to the following conditions: . 1) When performing Local Service or Local Assistance, IBM's obligation is limited to having the local IBM representative apply a reasonable effort to provide program services as described in the applicable portion of the section entitled "Program Services." Furthermore, the local IBM represen- tative will only be expected to operate a machine desig- nated in the Supplement if it was marketed or manufactured by IBM. IBM will have the right to charge for any additional effort required to perform these program services. 2) Central Service will only respond to defects which will occur when Central Service operates the licensed program in a Specified Operating Environment. RETURN OR DESTRUCTION OF.LICENSED PROGRAM MATERIALS Within one month after the date of discontinuance of any license granted hereunder, unless the requirement is waived by IBM, the Customer will furnish to IBM a completed form entitled "IBM Licensed Program Certificate of Return or Destruction" certifying that through the Customer's besteffort, and to the best of the Customer's'knowledge, the original and all copies of the licensed program materials received from IBM or made in connection with such license have been returned to IBM or destroyed. This requirement will apply to all copies in any form including translations or compilations or partial copies within modifications, derivative works, and updated works, whether partial or complete, and whether or not modified or merged into other program materials as authorized herein. However, upon prior written authorization from IBM, the Customer may retain a copy for archival purposes only. - The requirement to return or destroy will apply to a licensed data base; it will notapplyto individual pieces of data obtained by the Customer from such data base and which constitute a minor portion of such data base. -" When the customer has licensed a new version of a licensed program, which carries a different program number, and discon- tinues the prior version, the Customer may retain the prior version of the licensed program for a period not to exceed three months following its date of discontinuance, to be used only if a defect in the new version prevents its use. During this period, the Customer will pay only the applicable charges for the new version of the licensed program. Within one month following this three-month period, unless the requirement is waived by IBM, the Customer will furnish IBM a completed form entitled "IBM Licensed Program Certificate of Return or Destruction' for the prior version as set forth above. . PATENTS AND COPYRIGHTS IBM will, at its expense, defend the Customer against any claim that licensed program materials supplied hereunder infringe a patent or copyright in the United States. or,Puerto Rico and, subject to the limitation of liability'set forth in the section entitled "Limitation of Remedies," IBM will pay all costs; damages and aknrncv'efadethata eniirtfinally awardcasn resultntsuch claim. u •I•. .u. • I.•.. . /r II P r 1 I, {• H 2 ). t P • \ j u 4 Vut h, r ..4. 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International Business Machines Corporation (IBM) and the Customer agree that the following terms and conditions will apply to any Custom- er order accepter} by IBM for the lease or rental under this Agreement of IBM machines, features, model conversions or machine elements. Under these terms and conditions, IBM will 1) lease or rent machines, features, model conversions or machine elements to the Customer, 2) provide maintenance service, and 3) furnish, as available, programming and programming services. The term "Machines" refers to IBM machines and/ortheir features, model conversions and machine elements unless the context requires individual reference. The term "features" refers to feature additions and removals. The term "model conversions" refers to upgrades and downgrades between models and between machine types. The term "programming" refers to such programming as IBM may make gener- ally available, without separate charge, to the Customer. The term "programming service" refers to such service as IBM may make generally available, without separate charge, in connection with programming. IBM will furnish such programming, as requested by the Customer, and will determine the programming services available and their duration. The Customer agrees to accept Machines, maintenance service, programming and programming services under the terms and condi- tions of this Agreement. The Customer further agrees, with respect to the Machines and programming, to accept the responsibility for 1) their selection to achieve the Customer's intended results, 2) their use, and 3) the results obtained therefrom. The Customer also has the responsibility for the selection and use of, and results obtained from, any other equipment, programs or services, acquired outside this Agreement, used with the Machines and programming. Individual Machines become subject to this Agreement when the Customer's written order for their lease or rental is accepted by IBM, or when the Customer's order for their lease or rental under another ordering procedure designated by IBM is accepted by IBM. IBM will accept an order by providing to the Customer a Supplement to this Agreement or other documentation designated by IBM (hereinafter re- ferred to as "Supplement") confirming the specific terms applicable to the Machine. Installation of the Machine, as defined in the Section entitled "Installation," or payment of the first invoice for Monthly Lease Charges or Monthly Rental Charges, whichever first occurs following the Customers receipt of the Supplement, will constitute the Customer's acceptance of the Supplement. SHIPMENT IBM will confirm, and amend as necessary, the Estimated Ship- ment Date of each Machine. Prior to shipment, IBM will make reasonable accommodation to a Customer requested delay, and, if agreed to by IBM and the Customer, changes may be made in the configuration of Machines. INSTALLATION Each Machine will be installed as specified by IBM. A Machine Will be 1) installed by IBM or 2) setup by the Customer if such Machine is specified in the Supplement as "Customer Set -Up." The Customer agrees to provide a suitable environment for the Machines as specified by IBM, and, except as otherwise specified by IBM, to furnish all labor required for unpacking and placing each Machine in the desired location. Features and model conversions will be installed on the serial - numbered machine under this Agreement for which they are or- dered. Installation by IBM IBM will install machines, features and model conversions which are not specified by IBM as Customer Set -Up. The Date of Installation for such machine, feature or model con- version will be the day (Monday through Friday) following the day such machine, featureor model conversion,is installed by IBM. Customer Set -Up Each machine, feature or model conversion specified by IBM as Customer Set -Up (CSU) will be set up by the Customer in accor- dance with the instructions furnished by IBM. The Date of Installation for such machine, feature or model con- version will be the day (Monday through Friday) following the day such machine, feature or model conversion is considered to be in- stalled. - A CSU machine will be considered to be installed on the lastday of the CSU allowance period for such machine. The CSU allow- ance period, which does not include Saturdays or Sundays, com- mences on -the day (Monday through Friday) following the date of receipt'of the machine at the Customer's premises. However, when a CSU machine is delivered in conjunction with, and for at- tachment to; a non-CSU machine delivered from IBM, such CSU machine will be considered to be installed as determined in this paragraph or on the date such non-CSU machine is installed, whichever is later. The number of CSU Allowance Days for each CSU machine is specified in the Supplement. A CSU feature or model conversion will be considered lobe in- stalled one month following the later of its Estimated Shipment Date or its actual date of shipment from IBM. CONTRACT PERIOD IBM will determine the Lease or Rental Contract Period or Periods for which each Machine is eligible. The Customer may select the Lease or Rental Contract Period for each Machine from the alternatives available. Lease Contract Period A Lease Contract Period has a Commencement Date, a Base Term and an Expiration Date, each of which will be specified in the Supplement. The Lease Contract Period Commencement Date for an eligible Machine being installed will be its Date of Installation provided the order to lease the Machine is received by IBM on or before such Date of Installation.. The Lease Contract Period Commencement Date for an eligible Machine installed under a Rental Contract Period will be the day the order to lease the Machine is received by IBM. The Commence- ment Date of a Lease Contract Period for a Machine installed under a Lease Contract Period or Extension will be the day im- mediately following the Expiration Date of such Lease Contract Period or Extension, provided the order for such Lease Contract Period is received by IBM on or before such Commencement Date. The Lease Contract Period Expiration Date is determined in- itially by adding the Base Term to the Commencement Date, and thereafter may be adjusted as described in the Section entitled "Machine Modifications." A Lease Contract Period may be extended as described in the Section entitled "Lease Contract Period Extension" (Extension). Rental Contract Period A Rental Contract Period has a Commencement Date and is of indefinite duration. The Rental Contract Period Commencement Date for an eligible Machine being installed will be its Date of Installation provided the order to rent the Machine is received by IBM on or before such Date of Installation. The Rental Contract Period Commencement Date for an eligible Machine installed under a Lease Contract Period or Extension will be the day following the Expiration Date of such Lease Contract Period or Extension. CHARGES The Customer agrees to pay all charges as described in this Section. For such charges, the Customer is entitled to use of Machines, as described in this Section, and the availability of Maintenance Service, as described in this Section and in the Sec- tion entitled "Maintenance Service." IBM reserves the right to offer Machines for lease or rental on longer than a monthly charge basis and, if so, this Section and the Section entitled "Invoicing and Pay- ment"shall be construed accordingly. > IBM will determine the Plan Offering for each Machine and the Monthly Lease Charge or Monthly Rental Charge applicable to the Lease or Rental Contract Period or Periods for which each Machine is eligible. Monthly charges for each Machine will begin on the Commencement Date of its Lease Contract Period or Rent- al Contract Period, unless otherwise specified inthis Section. IBM will specify the Type of Service, as described in the Section entitled "Maintenance Service," and the Period of Maintenance Service included in the Monthly Lease Charge or Monthly Rental Charge. 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'e3!NO9 a3ueUa;ule11 40 SP0uad leuo!ldO;o A4!!lge!lene a4l PUB 031A109 4o sedA j e6uey3x3 a1!g-uO W9I pug JIBdeb e4!S-UO W91 101 aawag e3u8ua4ui8W 10 pouad 0yj_Ja)u03 a6uey0x3/90!4Ja9 1191 elge3gdde 014446 smog ssau Following the Igst day of each Averaging Period for,each machine subject to the Average Usage Plan, IBM will calculate the Monthly Use Charges for that Averaging Period based on the actual volume of usage in that Averaging Period as mea- sured,by an IBM meter. If such Monthly Use Charges exceed the Estimated Monthly Use Charges, the Customer agrees to pay such excess to IBM following the last day of such Averaging Period. If the Estimated Monthly Use Charges exceed such Monthly Use Charges, IBM will credit the Customer for such ex- cess following the last day of such Averaging Period. Increases in Lease Contract Period Monthly Charges — Plan B, C and D Machines For each year of a Lease Contract Period for a Plan B, C or D machine, beginning with the Commencement Date specified in the Supplement, and thereafter with each Anniversary Date, there will be a maximum Monthly Lease Charge (Upper Limit) for that year. The Upper Limit for the first year of the Lease Contract Period is calculated by increasing the initial Monthly Lease Charge in effect for a machine on the Commencement Date by an amount which is derived by multiplying the initial Monthly Lease Charge by the Upper Limit Percent specified in the Supplement. The Upper Limit for each succeeding year is calculated by increasing the Upper Limit forthe preceding year by an amount which is derived by multi- plying the initial Monthly Lease Charge by the Upper Limit Percent. For these calculations, when a machine becomes subject to the provisions of a Lease Contract Period on or after announcement, but before the effective date, of an increase in the Monthly Lease Charge and/or Upper Limit Percent, such increased Charge and/or Percent will be used as the initial Monthly Lease Charge and/or Upper Limit Percent. For a machine not yet installed, if the Customer's written order for the machine has been received by IBM, IBM may not increase the Monthly Lease Charge or Upper Limit Percent applicable to the machine's Lease Contract Period unless written notice shall have been given to the Customer at least three months before the date of shipment. In the event of such increase, the Customer may elect to void the order for the affected machine within one month of notifi- cation of such increase by IBM; otherwise, such increased Charge shall apply on its effective date and such increased Charge and/or Percent shall be the initial Monthly Lease Charge and/or Upper Limit Percent for purposes of determining the Upper Limits during the Lease Contract Period. For a machine which is installed, IBM may increase the Monthly Lease Charge upon three months' prior written notice. Such in- creased Monthly Lease Charge will be the lowest of 1) the Monthly Rental Charge generally in effect for such machine on the effective date specified in the notice, 2) the Monthly Lease Charge generally in effect for such machine on the effective date specified in the notice for customers commencing a new Lease Contract Period with the same Base Term, or 3) the Upper Limit in effect for that year, and, to the extent that any increase exceeds the applicable Upper Limit, the excess will automatically be effective on ensuing Anniversary Dates. For these purposes, a "new Lease Contract Period with the same Base Term" shall mean only such a Period Which IBM makes available for such a machine on its Date of Instal- lation. The Upper Limit Percent specified in the Supplement will not be increased during the Lease Contract Period. The Monthly Lease Charge for a model upgrade or feature addi- tion may be increased by IBM in the same manner and in accord- ance with the same Upper Limit calculations as for machines and pursuant to the provisions set forth in the Section entitled "Machine Modifications." The Monthly Use Charge Rate(s) for each Plan C machine may be increased by IBM in the same manner and in accordance with the same Upper Limit calculations as Monthly Lease Charges. For a Plan D Machine, IBM may increase the Additional Monthly Maintenance Charge Rate or the Percents for Optional Periods of Maintenance Service or IBM may change the Machine Group desig- nation or the Optional Periods of Maintenance Service upon three months' prior written notice to the Customer. Upon 15 days' prior written notice to IBM, the Customer may discontinue any Optional Periods of Maintenance Service affected by such notice on the ef- fective date of the increase or change. Otherwise, the new Rate, Percents, Machine Group designation and Optional Periods of Maintenance Servicewill become effective as specified. Except as provided in this subsection and in the Section entitled "Lease Contract Period Extension," all increases in the Monthly UClll Will ueuu such increase. Increases in Lease Contract Period Monthly Charges - Plan E Machines For each year of a Lease Contract Period for a Plan E machine, beginning with the Commencement Date specified in the Supple- ment, and thereafter with each Anniversary Date, there will be a maximum Total Monthly Charge (Upper Limit) during that year at any given volume. The Total Monthly Charge at any given volume will be the Monthly Lease Charge plus the Monthly Use Charge for that volume of usage. The Upper Limit for the first year of the Lease Contract Period is calculated by increasing the initial Total Monthly Charge, as defined in this paragraph, in effect for a machine on the Commencement Date by an amount which is derived by multiply- ing such initial Total Monthly Charge by the applicable Upper Limit Percent. For these purposes, the initial Total Monthly Charge shall mean the Total Monthly Charge derived as of the Commencement Date using the volume of usage applicable to the month for which the Upper Limit is being calculated. The Upper Limit for each suc- ceeding year is calculated by increasing the Upper Limit for the preceding year by an amount which is derived by multiplying the in- itial Total Monthly Charge, as defined in this paragraph, by the ap- plicable Upper Limit Percent. For these calculations, when a machine becomes subject to the provisions of a Lease Contract Period on or after announcement, but before the effective date, of a change in any of the factors resulting in an increase in the Total Monthly Charge at any given volume and/or the Upper Limit Per- cent, such increased Charge and/or Percent will be used as the in- itial Total Monthly Charge and/or Upper Limit Percent. Subject to the provisions of this Section and the Section entitled "Lease Contract Period Extension," the Total Monthly Charge for any given volume may be increased by IBM by changing the Monthly Lease Charge, the Maximum Monthly Charge, if any, the Monthly Use Charge Rate(s) and the volume of usage applicable to such Rate(s). For a machine not yet installed, if the Customer's written order for the machine has been received by IBM, IBM may not increase the Total Monthly Charge for any given volume or the Upper Limit Per- cent applicable to the machine's Lease Contract Period unless written notice shall have been given to the Customer at least three months before the date of shipment. In the event of such increase, the Customer may elect to void the order for the affected machine within one month of notification of such increase by IBM; otherwise, such increased Charge shall apply on its effective date and such increased Charge and/or Percent shall be the initial Total Monthly Charge and/or Upper Limit Percent for purposes of determining Upper Limits during the Lease Contract Period.. For a machine which is installed, IBM may increase the Total Monthly Charge for any given volume upon three months' prior written notice. Such increased Total Monthly Charge for any given volume will be the lowest of 1) the Total Monthly Charge at thatvol- ume generally in effect for such machine if the machine were sub- ject to a Rental Contract Period on the effective date specified in the notice, 2) the Total Monthly Charge at that volume generally in effect for such machine on the effective date specified in the notice for customers commencing a new Lease Contract Period with the same Base Term, or 3) the Upper Limit in effect for that year at that volume, and, to the extent that any increase exceeds the applica- ble Upper Limit, the excess will automatically be effective on ensu- ing Anniversary Dates. For these purposes, a "new Lease Contract Period with the same Base Term" shall mean only such a Period which IBM makes available for such a machine on its Date of Instal- lation. The Upper Limit Percent specified in the Supplement will not be increased during the Lease Contract Period. The Total Monthly Charge for a model upgrade or feature addi- tion may be increased by IBM in the same manner and in accord- ance with the same Upper Limit calculations as for machines and pursuant to the provisions set forth in the Section entitled "Machine Modifications." Except as provided in this subsection and in the Section entitled "Lease Contract Period Extension," all changes affecting the Total Monthly Charge and Upper Limit Percent will become effective on the date specified in the notice of such change. Increases In Rental Contract Period Monthly Charges For a Machine under a Rental Contract Period, IBM may increase the Monthly Rental. 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JO'OOIAJa9 OOUOUaluleIAJ ;o spouad leuogdo 10; s)uOOJGd 0114 JO Glea a6Jeg0 eoueuejuieyy A!43uoyy !euo!1!ppy agl aseajaw Aew Wgl 'aulNOBIN 0 ueld a Jod peipoeds 910P 041 UO OAIIO949 owooeq !l!m sawnloA pue 50128 '861840 mau 044'OSWAJOWIO'ebuego 0144 JO Gl8p OA!1Oaya 0141 UO aogou 140n5 u! papnl3ul ouigOeyy Aue enuquo0s!p '0o!lOu uapum Joud s,43uow auo uodn 'Aew Jawolsn3 841 oo!lou uapum Joud ,sgluow 00141 uodn e6Jeg3 Ielu08 Algiuoyy 0144 ui papnpu! 'Aue;!"a6esn jo own -10A 0141 OSBOJOa0 JO (S)alel-I a6Jeun1 an Aum]MA; in in, oinnn,vl a Lease L oniraci renoq or txienslon Will ue Insianeo at Irsn S Monthly Rental Charge then generally in effect. For a model upgrade or feature addition to a Plan C machine, IBM's appli- cable Monthly Use Charge Rate(s) then generally in effect will apply. The Expiration Date of the Lease Contract Period of Extension forthe machine will not be adjusted. Each model upgrade or feature addition to a machine installed under a Rental Contract Period may only be placed under a Rental Contract Period and will be installed at IBM's applicable Monthly Rental Charge and Monthly Use Charge Rate(s), if any, then gen- erally in effect. After the Initial Period of Maintenance Service for a model up- grade or feature addition to a Plan D machine for which the Cus- tomer has elected Optional Period(s) of Maintenance Service, such model upgrade or feature addition will be under the same Op• tional Period(s) of Maintenance Service as the machine. The Commencement Date for a model upgrade or feature addi- tion will be its Date of Installation. Model Downgrades and Feature Discontinuances A model downgrade is defined as a model conversion which re- sults in a decrease in the Monthly Lease Charge or Monthly Rental Charge. The downgrade of.a model or discontinuance of a feature prior to the Expiration Date of its Lease Contract Period or Extension will be subject to the provisions of the Section entitled "Termination Charges." The downgrade of a model or discontinuance of a frature install- ed under a Rental Contract Period will not result in a Termination Charge. DISCONTINUANCE NOTICE Subject to the Sections or subsections entitled "Increases in Rental Contract Period Monthly Charges," "Lease Contract Period Extension," "Limitation of Remedies" and "Termination Charges," the Customer may, at any time after installation, discontinue a pro- cessorcomplex unit upon three months' prior written notice, or dis- continue any other machine or field removable feature or have IBM effect a field removable model downgrade upon one month's prior written notice. TERMINATION CHARGES The Customer will pay IBM as aTermination Charge, upon termi- nation of a Lease Contract Period or one-year Extension, for any Plan B, C, 0 or E machine discontinuance or a model downgrade to a Plan B, C or D machine, prior to the Expiration Date of such Lease Contract Period or Extension, the lesser of: a) the.Terinination Charge Percent specified in the Supple- ment multiplied by the Remaining Contract Value; or b) the applicable Termination Charge Months specified in the Supplement multiplied by the applicable Monthly Lease Charge Value as of the date of termination. The Remaining Contract Value of a machine or model down- grade is determined by multiplying its applicable Monthly Lease Charge Value as of the date of termination by the number of months remaining in its. Lease Contract Period or Extension. The Monthly Lease Charge of any feature which is on any machine and any model increment which is on a Plan E machine at any time within three months prior to the date of termination of the Lease Contract Period or Extension for such machine will be included in the Monthly Lease Charge Value of such machine. Otherwise; the discontinuance of a feature from a Plan B, C, D or E machine or a model downgrade to a Plan E machine will not result in a Termina- tion Charge. Return of a machine to IBM upon the Customer's request during a Lease Contract Period or Extension for any reason, including machine replacement for model conversion or feature changes which are not field installable, or discontinuance of a machine by IBM due to the Customer's failure to comply with any of the terms and conditions of this Agreement shall be a termination for pur- poses of this Section. However, Termination Charges are not ap- plicable when the Customer replaces a machine which is an IBM Copier Product installed under a Lease Contract Period or Exten- sion with another IBM Copier Product provided all of the following conditions are met: 1) the replacement machine has a higher Ranking Number than the discontinued machine as reflected in the Copier Product Termination Charge -.Ranking Table (Ranking Tablet shown in the Suoolement: and iocauon wimm one monm poor to me oats or oiscununuariut of the machine to be discontinued; and 3) the replacement machine is acquired by the Customer di- rectly from IBM and is purchased by the Customer or by another party for use by the Customer, or, if available, the re- placement machine is installed for a new Lease Contract Period with a Base Term not less than the Base Term of the discontinued machine. The purchase of a Machine under the provisions of the Section entitled "Purchase Option" will not result in a Termination Charge.. For a machine not yet installed, if the Customer's order for the machine has been received by IBM, IBM may not increase the Termi- nation Charge Percent or the Termination Charge Months applica- ble to its Lease Contract Period or change the Ranking Table appli- cable to its Lease Contract Period to the detriment of the Customer unless written notice shall have been given to the Customer at least three months before the date of shipment. For a machine which is installed, IBM may not increase such Percent or Months or change such Ranking Table to the detriment of the Customer dur- ing the Lease Contract Period. PURCHASE OPTION The Customer may elect to purchase a machine installed under a Lease Contract Period or Extension by placing an order with IBM for its purchase in accordance with the provisions of the Agree- ment for Purchase of IBM Machines, provided all payments due for the machine under this Agreement are current. Upon request from the Customer, IBM will quote a net purchase option price for such machine, including its model upgrades and features, as of a specif- ic month that is not more than three months from the date of the re- quest; however, such quote is subject to change by to and includ- ing the Effective Date of Purchase. The net purchase option price, as calculated for each machine, will be the lower of 1) the Purchase Price stated in the Supplement for the machine, including its model upgrades and features, as modified in accordance with this Section, less any applicable pur- chase option credits notto exceed an amount determined by multi- plying such modified Purchase Price by the Maximum Purchase Accrual Percent; or 2) IBM's then generally available single unit pur- chase price for the machine, including its model upgrades and fea- tures, less any applicable purchase option credits notto exceed an amount determined by multiplying such purchase price by the Maximum Purchase Accrual Percent. The term "IBM's then gener- ally available single unit purchase price" does not include prices for sales of machines under terms and conditions other than those in this Agreement and In the Agreement for Purchase of IBM Machines exclusive of any of its Amendments. The Maximum Pur- chase Accrual Percent will be specified in the Supplement. The purchase option credits, except for those machines for which IBM specifies in the Supplement a Monthly Purchase Option Amount, are determined by multiplying: a) the applicable Monthly Lease Charges paid under this Agreement by the Purchase Option Percent specified in the applicable Supplement; and b) the applicable charges, if any, paid under other IBM agree- ments by the purchase option percents applicable under those agreements. Eligible monthly charges do not include Monthly Use Charges or Additional Monthly Maintenance Charges. For those machines for which tBM specifies in the Supplement a Monthly Purchase Option Amount, the purchase option credits are the sum of: a) the accumulated total of the then current Monthly Purchase Option Amount for each eligible month the machine is install- ed under this Agreement; and b) the applicable purchase option credits, if any, accrued under otherIBM agreements. For purposes of purchase option calculations, the period which is eligible for the accrual of purchase option credits is the period during which the machine has been continuously installed. When a machine ceases to be installed under this Agreement, all purchase option credits accrued hereunder with regard to that machine shall expire. Purchase option credits accrue individually for each machine, model upgrade and feature. Purchase option credits are not trans- ferable to other customers or between machines, or, unless other- wise provided by IBM, among a machine, its model upgrades and its features. 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Aew 1101'Pallelsu's! y0!ym au!yOew a Jod -luawdlys;o 0188 0141 eJo;oq syluow gait yl lseal le Jawolsn0 9(44 01 UeA16 uaaq eAey 118145 aollou ueu!Jm ssalun pouad 108Jlu0O asee-I sl! of elgeopdde slueDJod 4ons eseaJoep Jo a0ud yons aseaJOu! IOU Aew we1'luawalddns 041 U! pe!;!Oads IuaoJad Iennooy asegoJnd wnwixeyy Jo lue3jed uop Ter. will be nq additional charge for travel expense associated with maintenance service 1) for a Plan B or C Machine or 2) for a Plan D or E Machine during the Base and/or selected Optional Period(s) of Maintenance Service except when the site at which such plan B, C, D or E Machine is located is inaccessible to the IBM service representative by both private automobile and scheduled public transportation. In such case, the Customer will be charged for all travel expenses and, in addition, for any travel and waiting timewhich occuroutside such Period(s) of Maintenance Service. SERVICES FOR ADDITIONAL CHARGE The services for additional charge described in this Section are not maintenance services as described in the Section entitled "Maintenance Service." Such services, if available, will be pro- vided by IBM at IBM's i) then generally available hourly service rates and minimum charges for service time, including travel and waiting time, ii) parts and material prices then generally in effect, and iii) charges for travel and shipping expenses, all as applicable. The Customer agrees to pay all such charges for service to, or repair of damage to, a Machine caused by 1) use of the Machine for purposes other than for which designed, 2) alterations and attach- ments, and 3) vandalism or burglary. The Customer also agrees to pay all charges for 1) service for accessories and 2) repair of Machine damage, replacement of maintenance parts (due to other than normal wear) or repetitive service calls caused by the use of, inadequate use of, or failure to use, supplies. In the event that a Machine is damaged beyond repair as a resultof causesdescribed in this paragraph, the Customer agrees to pay for the loss resulting from such damage. All services (including, but not limited to, services relating to pre - installation planning, inspections, rearrangement or relocation of Machines, engineering changes and altered programming) which may be made available by IBM to the Customer, with or without sep- arate charge, in connection with any Machines or programming supplied under this Agreement shall be subject to the terms and conditions of.this Agreement unless such services are provided under another written agreement between the parties. OTHER PRODUCTS AND SERVICES IBM offers other products and services at separate charges under applicable written agreements. The Customer may contract with IBM for such other products or services, as available, but only under a written agreement between the parties. ' RISK OF LOSS OR DAMAGE During the period a Machine is in transit or in the possession of the Customer, IBM and its insurers, if any, relieve the Customer of responsibility for all risk of loss of, or damage to, the Machine ex- cept for loss or damage 1) caused by nuclear reaction, nuclear radiation or radioactive contamination for which the Customer is legally liable, and 2) as setforth inthe Section entitled "Services for Additional Charge." INVOICING AND PAYMENT Monthly Lease Charges, Monthly Rental Charges and Addi- tional Monthly Maintenance Charges will be invoiced in advance as of the first of each month. Monthly Use Charges and Estimated Monthly Use Charges will be invoiced in the month following the month to which they apply. All other charges or credits will be in- voiced when or after they are incurred or earned. If a Machine is in- stalled or an Optional Period of Maintenance Service is in effect for part of a calendar month, monthly charges will be prorated on the basis of a 30 -day month. Payment of monthly charges will be made within 30 days after the date of invoice. All other charges hereunder are payable as specified in the invoice. WARRANTIES IBM warrants that each Machine will be in good working order on the day that it is installed and that it will conform to IBM's official pub- lished specifications which are available upon request. Thereafter, IBM will provide maintenance service and services for additional charge for the Machine, subject to the provisions stated in the Sec- tions entitled "Maintenance Service," "Services for Additional Charge" and "Risk of Loss or Damage." IBM further warrants that, when shipped to the Customer, pro- gramming properly used on an IBM machine of a type designated by tau fnr ouch mmnramminn and for which oroorammina services are wnicn are aval axle upon request. I nereaner, Inm Will prowue pro- gramming service for such programming for the duration of the availability of such service as determined by IBM. IBM does not warrant that the functions contained in pro- gramming will operate in the combinations which may be selected for use by the Customer or will meet the Customer's requirements. ALL OTHER PROGRAMMING IS DISTRIBUTED ON AN "AS IS" BASIS. IBM does not warrant that the operation of the Machines or pro- gramming will be uninterrupted or error free or that all pro- gramming errors will be corrected. . THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MER- CHANTABILITY AND FITNESS FOR A PARTICULAR PUR- POSE. PATENTS AND COPYRIGHTS IBM will, at its expense, defend the Customer against any claim that any Machines or programming supplied hereunder infringe a patent or copyright in the United States or Puerto Rico, and will pay all costs, damages and attorney's fees that a court finally awards as a result of such claim. To qualify for such defense and payment, the Customer must: 1) give IBM prompt written notice of anysuch claim; and 2) allow IBM to control, and fully cooperate with IBM in, the de- fense and all related settlement negotiations. IBM's obligation under this Section is conditioned on the Cus- tomer's agreement that if the operation of the Machines or pro- gramming become, or in IBM's opinion are likely to become, the subject of such a claim, the Customer will permit IBM, at its option and expense, either to procure the right for the Customer to con- tinue using the Machines or programming or to replace or modify them so that they become noninfringing; however, if neither of the foregoing alternatives is available on terms which are reasonable in IBM's judgment, the Customer will return the Machines or pro- gramming on written request by IBM. Termination Charges will not apply for such returned Machines, and the Customer will pay only those charges which were payable priorto the date of such return. IBM shall have no obligation with respect to any such claim based upon the Customers modification of the Machines or pro- gramming or their combination, operation or use with apparatus, data or programs not furnished by IBM. V This Section states IBM's entire obligation to the Customer re- gardinginfringementorthelike. - LIMITATION OF REMEDIES IBM's entire liability and the Customer's exclusive remedy is set forth in this Section. In all situations involving performance or nonperformance of Machines or programming furnished under this Agreement, the Customer's remedy is 1) the adjustment or repair of the Machine or replacement of its parts by IBM, or, at IBM's option, replacement of the Machine or correction of programming errors, or 2) if, after re- peated efforts, IBM is unable to install the Machine or a replacement Machine in good working order, or to restore it to good working order, or to make programming operate, all as warranted, the Cus- tomer shall be entitled to recover actual damages to the limits set forth in this Section. For any other claim concerning performance or nonperformance by IBM pursuant to, or in any other way related to the subject matter of, this Agreement or any order under this Agreement, the Customer shall be entitled to recover actual dam- ages to the limits set forth in this Section. IBM's liability for damages to the Customer for any cause what- soever, except as otherwise stated in this Section, and regardless of the form of action, whether in contract or in tort including negli- gence, shall be limited•to the greater of $100,000 or 12 months' lease or rental charges for the specific Machines that caused the damages or that are the subject matter of, or are directly related to, the cause of action. Such charges shall be those in effect for the specific Machines when the cause of action arose. The foregoing limitation of liability will not apply to the payment of costs, damages and attorney's fees referred to in the Section entitled "Patents and Copyrights," or to claims by the Customer for personal injury or damage to real property or tangible personal property caused by IBM's negligence. In no event will IBM be liable for any damages caused by the Cus- tomer's failure to perform the Customers responsibilities, or for any lost profits, lost savings, incidental damages or other conse- ouential damages. even if IBM has been advised of the possibility of pel n pegds ale seuugoew eql uaym seu!goew 0111 JO uogeJedo eq; 'seuigaew 0141 ql!m uoga0uuoo u! pasn 6u!wwelbad Ile ;o Aoenb -ape pue AOainooe 0143 Jo; elglsuodsei Alalos s! 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Prbgrams furnished by IBM are pro- vided forthe Customer's use at the IBM Facility. The Customer agrees not to copy any such programs for use outside of the IBM Facility or remove any such programs from IBM's premises. IBM MAKES NO WARRANTIES EXPRESS OR IMPLIED, IN- CLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IBM will not be liable for lost profits, for any claim against the Customer by any other party, or for consequential damages even if IBM has been advised of the possibility of such damages. IBM shall not be liable for failure to make Hourly IBM Machine Service available due to causes beyond IBM's control. No action, regardless of form, arising out of the transactions under this Agreement, may be brought by either party more than date of last payment. - The terms of this Agreement may be modified by IBM upon three months' written notice to the Customer. The Customer may exercise the Customer's right to terminate; otherwise, such modification shall become effective. This Agreement shall be governed by the laws of the State of New York and constitutes the entire agreement between the Customer and IBM with respect to Hourly IBM Machine Service. The foregoing terms and conditions shall prevail notwithstand- ing the terms of any order submitted by the Customer with respect to Hourly IBM Machine Service. THE CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, UNDERSTANDS IT AND AGREES TO ALL TERMS AND CONDITIONS STATED HEREIN. State and Local Government Price Protection Amendment to b5 r-. O 50 PC I Agreement for Purchase of IBM Machines PC I Agreement for IBM Licensed Programs pC I IBM Maintenance Agreement I I Agreement for LocalLicensed Program Support for IBM Licensed Programs IX I Agreement for Lease or Rental of IBM Machines I I Agreement for Local Program Support for System Control Programming on IBM Machines Name and Addressof Customer: Customer No.: Branch Office Address: Branch Office No.: ST2 /MK6 City of Fayetteville 3016200 401 W. Capitol 113 W. Mountain St. Little Rock, AR 72201 Fayetteville, AR 72701 International Business Machines Corporation (IBM) and the Customer agree that the above indicated Agreements are amended as follows Agreement for Purchase of IBM Machines The following provision is added after the first sentence of the first paragraph in the Section entitled "Price Protection Period": "However, prices of the Machines stated in the applicable Supplement signed by the Customer and IBM will not be subject to any price increase up to and including the mutually agreed to Estimated Date(s) of Shipment indicated in such Supplement. IBM Maintenance Agreement The following provision is added after the first sentence of the last paragraph of the Section entitled "Charges": "However, no increase in the Minimum Monthly Maintenance Charge or change in the Periods of Maintenance Service Availability, Machine Groups and percentages by which the Additional Monthly Maintenance Charge is determined, and no increase in the Annual Maintenance Charge, Basic Monthly Maintenance Charge and the Additional Monthly Maintenance Charge Rate will become effective during the Customer's twelve-month fiscal year in which such notice is given." Agreement for Lease or Rental of IBM Machines The following provision is added after the first sentence of the seventh paragraph in the Section entitled "Increases in Lease Contract Period Monthly Charges": "However, no increase in the Monthly Lease Charge, Monthly Use Charge Rate, Additional Monthly Maintenance Charge and Upper Limit Percent will become effective during the Customer's twelve-month fiscal year in which such notice is given." The following provision is added after the third sentence in the Section entitled "Increases in Rental Contract Period Monthly Charges": "However, no increase in the Monthly Rental Charge, Additional Use Charge Rate, Additional Monthly Maintenance Charge and Monthly Use Charge Rate will become effective during the Customer's twelve-month fiscal year in which such notice is given." Agreement for IBM Licensed Programs The following provision is added after the first sentence of the first paragraph of the Section entitled "Price Changes": "However, no increase in monthly charges will become effective during the Customer's twelve-month fiscal year in which such notice is given." Agreement for Local Licensed Program Support for IBM Licensed Programs The following provision is added after the second sentence of the first paragraph of the Section entitled 'Charges": "However, no increase in monthly charges will become effective during the Customer's twelve-month fiscal year in which such notice is given." Agreement for Local Program Support for System Control Programming on IBM Machines The following provision is added after the second sentence of the first paragraph of the Section entitled "Charges": ''However, no increase in monthly charges will become effective during the Customer's twelve-month fiscal year in which such notice is given. FISCAL YEAR The Customer's fiscal year is from ( 01 01 ) to ( 12 31 Month Day Month Day GENERAL The purchase terms of this Amendment may he modified by IBM upon written notice to the Customer, however such modifications will not apply to Supplements signed by the Customer and IBM prior to the date of notice. The fiscal terms of this Amendment may be modified by IBM at the end of the Customer's fiscal year upon three months' prior written notice to the Customer. Re€eivfdby IBM at Branch 0(Gcc Neme/Numhar By' — /�! --- a /�/'c Signature --- Manager's Signature Manager's Name (Type or Print) Date cepted by: nternationnalal BBusi s achines Corporation {--------------- Authorized Signmore Name (Type or Print) 330 City of Fa etteville -- — -- — -- -- ----- r By -- ---- --- --- — ------ ----------- mho''. Sign tore ---- Name (Type or Print)