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HomeMy WebLinkAbout16444 ORD - 08/05/1981sp;8/5/81 ;\st ,'t ., AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE INSTALLMENT PURCHASE AGREEMENTS WITH INTERNATIONAL BUSINESS MACHINES CORPORATION, INCLUDING ASSOCIATED DOCUMENTS, FOR THE INSTALLMENT PURCHASE OF WORD PROCESSING EQUIP- MENT FOR THE CITY SECRETARY'S OFFICE AND THE CITY ATTORNEY'S OFFICE WITH AVERAGE MONTHLY PAYMENTS OF $1,155 FOR THE FIRST YEAR, AND $949 PER MONTH FOR THE SECOND THROUGH FIFTH YEARS, AS MORE SPECIFICALLY SET FORTH IN THE INSTALLMENT PAYMENT AND PURCHASE AGREE- MENTS, SUBSTANTIAL COPIES OF WHICH ARE ATTACHED HERE- TO AS EXHIBITS "1" THROUGH "6" AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. • BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to execute installment purchase agreements with International Business Machines Corporation, including associated documents, for the installment purchase of word processing equipment for the City Secretary's office and the City Attorney's office with average monthly payments of $1,155 for the first year, and $949 per month for the second through fifth years as more specifically set forth in the installment payment and purchase agreements, substantial copies of which are attached hereto as Exhibits "1" through "6" and made a part hereof. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the need for executing the above agreements in order to expedite purchase of word process- ing equipment, such finding of an emergency is made and declared requiring the suspension of the Charter, rule as to consideration and voting upon ordin- ances or resolutions at three regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency measure this 5 day of August, 1981. ATTEST: C Secretary APPROVED:. DAY OF AUGUST, 1981 4 Bruce City ttorney 16144 THE CITY OF CORPUS CHRISTI, TEXAS MIGMLiwEb. SEP 271984 (A) (B) (C) (D) (E) (F) (G) (H) (I) (J (K (L C EICCCCCL C. C C C C C. C t_ Fiscal Year Fromto j l Installment Payment Agreement (State and Local Government) to -.1,17 -s j Length of Installment Payment Plan MONTHS This Installment Payment Agreement supplements and amends the Purchase Agreement, dated 19 , between INTERNATIONAL BUSINESS MACHINES CORPORATION (IBM) and the Customer with respect to the IBM machines and/or their model upgrades and features (hereinafter called machines) on that Agreement. Cash Price (Purchase Price from Purchase Agreement) ► 741'13764 I Trade -In Credit (from Purchase Agreement) • ► -- Purchase Option Credits (from Purchase Agreement) ► ---r— Cash Down Payment 1ATime of Installation 0 Effective Date of Purchase ► TY 4L Total Down Payment (B+C+D) 1. ? La/[l/ fa Unpaid Balance of Cash Price (A—E) ► 75.p O State and Local Taxes (if applicable) Date ► Amount Financed/Unpaid Balance (F+G) ► 85004V Time Price Differential — FINANCE CHARGE on Amount Financed 2 4. 5-2 !l'3 at an ANNUAL INTEREST RATE of ►I . 25 Ins ailment Payments to be made as follows: (Select One) 0 Monthly Option — First Installment Payment (Monthly Installment Payment Amount + J) $ - S9 Successive Monthly Installment Payments m /?.5-• 88 ❑ Annual Option - Fiscal Period Installment Payments 1 $ 2 sell" •3 $ 4 $ 5 $ 6 $ fY rP • 66 (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (1) EACH NOTE FIRST INSTALLMENT PAYMENT INCLUDES TAX ON TIME PRICE DIFFERENTIAL. TIME PRICE DIFFERENTIAL BEGINS TO ACCRUE 30 DAYS PRIOR TO THE FIRST INSTALLMENT rAYMENT. THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE A PART OF THIS AGREEMENT NOTICE TO BUYER 1. Under the law, you are entitled to a completely filled in exact copy of this Agreement at the time you sign. Keep It to protect your legal rights. 2. Under the law, you have the right to pay off in advance the full amount due and to obtain a partial refund of the FINANCE CHARGE based on the "Actuarial Method". 3. IBM reserves a purchase money security Interest In each of the machines listed herein. These Interests will be satisfied by payment In full. A copy of this Agreement may be filed on IBM's behalf with appropriate stale authorities at any time alter a signature by the Customer as a financing statement in order to perfect IBM's security Interest. 4. If one of the events of default described on the reverse side of this document should occur. and If IBM should then exercise its right to declare all unpaid Installments to be Immediately due and payable, yqu will have the right to a lull refund of any part of the FINANCE CHARGE as yet unaccrued at the lime of such declaration by IBM. In such a case, your refund will be computed under the "Actuarial Method-. THE BUYER ACKNOWLEDGES RECEIPT OF A TRUE COPY OF THIS AGREEMENT(THIS IS A RETAIL INSTALLMENT CONTRACT) THIS INSTALLMENT PAYMENT AGREEMENT AND THE PURCHASE AGREEMENT REFERRED TO HEREIN CONSTITUTE A SINGLE AGREEMENT AND THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE BUYER AND IBM, WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN. AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. THE BUYER ACKNOWLEDGES THAT THE BUYER HAS READ THIS AGREEMENT. UNDERSTANDS IT, AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS, AND BY BUYER'S SIGNATURE ON THIS AGREEMENT ACKNOWLEDGES THAT BUYER IS LEGALLY AUTHORIZED TO ENTER INTO THIS AGREEMENT. THE BUYER ACKNOWLEDGES RECEIPT OF A TRUE COPY HEREOF AND OF THE PURCHASE AGREEMENT REFERRED TO HEREIN. Business Machines Corporation Tax on Time Price Differential (if applicable) C,�/r/// ► Address • Total Payments (H+I+J) D. / 1 1 S2' ;9V Branch Office Address Deferred Payment Price (A+G+I) ► AI. 09 % !Y$ Ins ailment Payments to be made as follows: (Select One) 0 Monthly Option — First Installment Payment (Monthly Installment Payment Amount + J) $ - S9 Successive Monthly Installment Payments m /?.5-• 88 ❑ Annual Option - Fiscal Period Installment Payments 1 $ 2 sell" •3 $ 4 $ 5 $ 6 $ fY rP • 66 (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (1) EACH NOTE FIRST INSTALLMENT PAYMENT INCLUDES TAX ON TIME PRICE DIFFERENTIAL. TIME PRICE DIFFERENTIAL BEGINS TO ACCRUE 30 DAYS PRIOR TO THE FIRST INSTALLMENT rAYMENT. THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE A PART OF THIS AGREEMENT NOTICE TO BUYER 1. Under the law, you are entitled to a completely filled in exact copy of this Agreement at the time you sign. Keep It to protect your legal rights. 2. Under the law, you have the right to pay off in advance the full amount due and to obtain a partial refund of the FINANCE CHARGE based on the "Actuarial Method". 3. IBM reserves a purchase money security Interest In each of the machines listed herein. These Interests will be satisfied by payment In full. A copy of this Agreement may be filed on IBM's behalf with appropriate stale authorities at any time alter a signature by the Customer as a financing statement in order to perfect IBM's security Interest. 4. If one of the events of default described on the reverse side of this document should occur. and If IBM should then exercise its right to declare all unpaid Installments to be Immediately due and payable, yqu will have the right to a lull refund of any part of the FINANCE CHARGE as yet unaccrued at the lime of such declaration by IBM. In such a case, your refund will be computed under the "Actuarial Method-. THE BUYER ACKNOWLEDGES RECEIPT OF A TRUE COPY OF THIS AGREEMENT(THIS IS A RETAIL INSTALLMENT CONTRACT) THIS INSTALLMENT PAYMENT AGREEMENT AND THE PURCHASE AGREEMENT REFERRED TO HEREIN CONSTITUTE A SINGLE AGREEMENT AND THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE BUYER AND IBM, WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN. AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. THE BUYER ACKNOWLEDGES THAT THE BUYER HAS READ THIS AGREEMENT. UNDERSTANDS IT, AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS, AND BY BUYER'S SIGNATURE ON THIS AGREEMENT ACKNOWLEDGES THAT BUYER IS LEGALLY AUTHORIZED TO ENTER INTO THIS AGREEMENT. THE BUYER ACKNOWLEDGES RECEIPT OF A TRUE COPY HEREOF AND OF THE PURCHASE AGREEMENT REFERRED TO HEREIN. Business Machines Corporation Gusto .. aye C,�/r/// _ ieInternational Address Please Type or Print all Information except signature City and Stale I Zip Code Branch Office Address Br. Off. No Mark For (Attention Of) City and State Zip Code By (Customers Signature) Date By (IBM Representative's Signature) Date Signed By — (Print Name) Signed By — (P int Title) UIM 025 B6 3 (Vial l IBM BRANCH OFFICE COPY Page 1 of 2 (_ L L C ACCEPTANCE Acceptance of this Agreement by IBM is contingent upon the absence of any mathematical error or deviation from IBM's current prices Unless the Buyer is advised to the contrary within 30 days alter the signing of this Agreement, this Agreement is accepted by umf as written and is In full force and effect on the date signed by IBM. - PAYMENT - The Customer promises to pay: - - •,•C`a - s 1., , (1) the Cash Down Payment in full, and • ' (2) the Installment Payments until fully paid, all as shown on the first page of this Agreement. The Cash Down Payment will be due as follows: `"• = , ....-. - - . e (I) • for other than the purchase gilt. a. it leased or rented^machines on the Date ot:: Installation: or (2) for the purchase of installed leased or rented machines on the Effective Date of Purchaid.' The First Installment Payment will be due on the lsl.day of the second month following the Installation Date or Effective Date of Purchase" , - If Cuilomer selects the Monthly Option, successive Installment Payments will be due on the 1st day' of each month following the due dale for -the First Installment Payment. II Customer selects the Annual Option•, successive Installment Payments are due on the first day of succeeding fiscal L L L .� INSTALLMENT PAYMENT AGREEMENT � -; (State and' - .opal Government) TERMS AND CONDITIONS The, Customer having been offered the choice of purchasing al the Cash Price (less any credirfor trade-in equipment ar purchase option accruals) plus applicable State and Local taxes ar at the' Deferred Payment Price has elected to purchase at such Deferred Payment Price, The,Customer may at any time pay in advance the full amount due hereunder and the Time Price Differential will be adjusted by IBM to reflect the shorter payment period. All remittances are to be made to the IBM Branch Office Address shown on the Installment Payment Record, which will be mailed to the Customer by IBM. ASSIGNMENTS This Installment Payment Agreement is not assignable by the Customer, nor may the Customer sell, transfer, relocate. or dispose of the machines, oe any of them, without prior wntten permission of IBM. In no event may the machines be relocated outside the United States. Any attempted assignment, . or transfer by the Customer of any of the rights, duties or obligations of this -Installment Payment Agreement is void, _ - •• CUSTOMER'S COVENANTS The Customer agrees that: (a) it will not create, assume, or voluntarily suffer to exist, without giving IBM at leasf15 calendar days' prior written notice, any mortgage, pledge, encumbrance, security interest, lien, or charge of any kind upon the machines, or any of them: (b) it wilt keep the machines in good repair and operating condition, Mit will pay promptly an taxes and other charges when levied or assessed upon the machines, or their operation or use, or upon IBM in connection with this Installment Payment Agreement (exclusive of taxes.based on net Income); and (d) It will promptly satisfy all liens against the machines. The Customer further agrees to procure and maintain Bre insurance with extended coverage against toss, theft, damage to or destruction of the machines for the full insurable value thereof for the duration of this Installment Payment Agreement, the policy for such insurance being endorsed to show loss payable to IBM and assigns -as respectivelnterests may appear:Upon request a certificate - of such insurance will be furnished to IBM or assigns. Any proceeds received directly by IBM under such insurance shall be credited to the payment required from the Customer pursuant to the Section entitled ...Destruction of Machines.' ' - ^ : I • DESTRUCTION OF MACHINES= . c • 2 • . -+: - In the event that any of the machines shag be lost, stolen, irreparably damaged or destroyed or • otherwise rendered permanently unfit for use from any cause whatsoever (such occurrences being hereinafter called Casualty Occurrences) prior la the payment in lull of the Total Installment Payment Price. to the extent permitted by law the Customer shall promptly pay to IBM a sum equal to the aggregate Casualty Value of such machines: Any money so paid shall be applied, on the installment date next following receipt by IBM of such payment, to reduce Installments thereafter lalling due so , that such installments represent only the payments due for the remaining machines. - • The Casualty Value of each machine suffering a Casualty Occurrence—shah be the sum of the balances of unpaid Installment Payments and Time Price Differential unpaid at the time of such Casualty Occurrence and attributed to such machine, such -Time Price Differential being adjusted by IBM to reflect the shorter payment period.' • i - " DEFAULTS 4; Any one ormore of the following are events cif default: (a) the Customer shall fail to -pay in full any sum payable by the Customer when dug hereunder following IBM's written notice of such failure. except as provided for in the Section titled "Funding'; (b) the Customer shall fail to obtain insurance as required in this Installment Payment Agreement; (o) the Customer shag, for more than 30 days after IBM shall have demanded in writing performance or observance thereof, failed to comply with any other term of this Installment Payment Agreement; (d) any. insolvency proceedingss.of any character, voluntary or involuntary, shag be instituted by or against the Customer; or (e) the - Customer shall make en assignment for thebenefit of creditors. —.-- . -- - - - r i;ate REMEDIES If an event of default shall have occurred, IBM or assigns may, to the extent permitted by law, (a) recover the balance of amounts due hereunder; (b) enter any premises where the machines may be ' and take possession of them, or render Them unusable, and retain all prior payments as partial compensation for their use and depreciation, (c) it Customer has failed la keep the machines in good repair and operating condition, restore the machines to good` epair and operating condition at Customer's expense for actual time and materials expended by IBMat IBM's then current charges: (d) sell the machines, alter al least IS days' notice before the date of any intended public sale or the date after wfiich any private sale or other disposition of the machines is to be made, with or without the machines at the sale, at which sale IBM or assigns may purchase the machines; (e) incur attorney's fees and legal expenses in exercising any of its rights and remedies upon default which the Customer agrees to pay: and/or (U •pursue any other remedy permitted by law or in equity... Waiver of any default shall not be a waiver of any other default; all al IBM's rights hereunder are cumulative and not alternative.; , • • ; •. - r. „•_r ;i-• - FUNDING Since the Customer intends to request the appropriation of funds periodically to be paid for the • machines, if funds are not appropriated for the Customer for such Installment Payments for, any : future Fiscal Period, the Customer will not be obligated to pay the remainder of the Total Installment Payment Price due beyond the end of the then current Fiscal Period. Such event will not constitute an / ,event of default.The Customer agrees to notify IBAJ.in writing of such nonappropnation at the earliest possible time. In the event that funds are not appropriated asprov ded above and the Customer is unable to make further payments due under this Installment Payment Agreement beyond the end of the then current - Fiscal Period, IBM will, within a reasonable time after the end of such Period, enter and take the machines from the Customer's premises and will retain all sums previofisly.paid by Customer to IBM as partial compensation for machine use and depreciation; provided, however, that upon Customer request, Customer may, prior to such repossession, retain the machines during a reasonable period agreed to by IBM ala monthly charge designated by IBM, beginning on the first day following theta. Fiscal •- Fiscal Period far which payment has been made hereunder.: _ - • ANY HOLDER OF THIS CONTRACT IS SUBJECT TO ALL CLAIMS AND • -DEFENSES WHICH -THE DEBTOR COULD- ASSERT- AGAINST THE SELLER OF GOODS' OR SERVICES OBTAINED PURSUANT HERETO _OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. - LOCATION OF MACHINES ! • The machines shall remain personal properly, not become part of the freehold, and be kept at the Customer's address shown on the face of this Agreement where IBM may inspect them at any • reasonable time. -• • ' Until payment in full of the Deferred Payment Price due hereunder, the Customer may not sell, transfer, substantially modify, relocate or dispose al the machines, or any of Them, without prior written permission of IBM, nor may the machines be relocated outside the United States. GENERAL . If the unit price or trade-in credit for any machine is adjusted as provided for In the Purchase Agreement referred to herein, the payments herein agreed to be paid shall be adjusted and this Installment Payment Agreement shall be amended accordingly. The terms and conditions al this Installment Payment Agreement shall prevail notwithstanding any variance with the terms and conditions of the Purchase Agreement referred to herein.. Should this Installment Payment Agreement and/or the Purchase Agreement referred to herein be held by the courts to be invalid or unenforceable, in whole or in part, the parties agree that the machines shall be deemed to have been installed pursuant to the terms and conditions of IBM's State and Local Government Lease Plan al IBM's applicable Slate and Local Government Lease Plan 'Monthly Charges. commencing with the Date of Installation or the Effective Date of Purchase of the machines. For the period prior to such holding, IBM shall credit to the applicable Lease Plan Monthly ' Charges the amounts paid by the Customer to IBM under this Installment Payment Agreement and amounts paid by the Customer for maintenance, property taxes and insurance. Any excess credits shall be refunded to the Customer, and any deficiency shall be due to IBM; but in no event shall any • amount be due to IBM in excess of funds appropriated., • ti y Page 2 of 2 Z 140-210A-3 (7)s1H • • UIM025 32 OPD Supplement to Agreement for IBM Licensed Programs To: International Business Machines Corporation IBM Branch Office Address: Name and Address of Customer: Reference Agreement No.: Supplement No.: Branch Office No.: Customer No.: The following Licensed Program Materials are hereby made subject to the referenced Agreement for IBM Licensed Programs: Number Number Licensed Program/ Features, _,Optional Materials DesignatedTypeIa iat TypelSerial Cha gds Payment Penod Testing Period Warranted Initial Process Monthly One -Time I -1-eAa l 2 /6 S Ar. 17 3 L ,lz. `f ,Is 4 IRLIN.Azek 1 ✓ /S" r✓ S ✓ Item Number Program Services...,,Installation DesignatiSM Representative License Applies Location License Applies Est. ShipiDel Date or Elteclrveeate/o Additional License Designated Machine Location Central — Service Local Service Local Assistance Ar. 17 • [,- rr. le • ,1 1 ✓ r✓ Cl P! . -- - Acceptance o this Supplement by IBM is contingent upon (1) a satisfactory credit report on the Customer and (2) with regard to the data shown on this Supplement, the absence of any mathematical error or deviation from IBM's current prices and terms Unless advised to the contrary within 30 days after the signing of this Supplement, the Customer may consider this Supplement to have been accepted by IBM as written and be in full. force and effect as of the date signed by IBM. Program Services designated above will be provided without additional charge for a current release of the licensed program. 'Provided until discontinuance by IBM upon six months' notice. "Provided until calendar date indicated. '• •Provided for number of months indicated. The Customer acknowledges that the Customer has read the Agreement for IBM Licensed Programs together with this Supplement and agrees to be bound by their terms and conditions. Further, the Customer agrees that the Agreement and this Supplement are the complete and exclusive statement of the Agreement between the parties, which supersedes all proposals or prior agreements, oral or written, and all other communications between the parties relating to the subject matter of this Agreement and this Supplement. By By Authorized Signature Name (Typeer-Prinl) Title On On Date Authorized Signatwe Name (Type or Print) Title Dale , Please send all communications to IBM at its branch office address listed above unless notified to the contrary. W1Ml 63-O m acct IBM BRANCH OFFICE COPY Page 1 of 1 0977 Purchase Agreement pry. MACHINE DESCRIPTION Destination Chpere• Machine Quantity Destination XMPrihce Charge' ine Ouantlty Machine Price Type/Model Feature / 66-2v1#02- O2 /7Z4 -� ; it ; 376&16,9 3766100 / G34 ti oL0 D' Destination Charge ('Subject to Change) — Invoiced Separately 1 / /doloo /leapt" / 33o0 --r- 1 i i 3 ecOo 3 Gyro Sub -Total (B -D -E) s_330 l L b'�' nil �� i i 3Zopa azo 00 / St/S�,¢o/ / !St O c�S Advance Payment Received I► 38po 38 T� NET AMOUNT (F+G+H-I) z •00 sy� (ep!O `" ! I ! I 1 1 t I 1 1 I 1 I I 1 I 1 I I I I I 1 I I I I i I i 1 I I Supply K 1s: 012112 018118 ❑ Other i 1 j ! Destination Charge (.3'1311md 1. OL rra) tit ► A/-!Oo Purchase Price (Excluding applicable taxes and Destination Charges' . $ 99YS90 For The Purchase of Installed Leased or Rented Machines: Effective Date of Purchase Serial No Meter Count Oty. Casio Vi a *�"n W . A�"y ..i DESCRIPTION Include any deduction due to machine condition Serial Number Allowance (Excluding Destination Charge) Destination Charge' Br. Olt. No Ztp Cale N (Mimi. It BY (Gus aes Slgnatu Dale City M Mato BY (IBM Repsfantati..s Slgnatwal Data Signa/ By —(Print Name) Signed By +IPnnl Title) I i i 1 1 I I I 1 Destination Charge ('Subject to Change) — Invoiced Separately O. --y ❑ Trade -In --r- ❑ Purchase Option Credits I► Sub -Total (B -D -E) ! l L b'�' nil i State and Local Taxes (Including Taxes. If Applicable on Line A) Service Agreement IC and ICC 0 Service Agreement Signed ❑ SA II 0 Customer Declines........ ❑ SA III 0 Customer Accepts on Installation........ Supply Agreement 0 Supply Agreement Signed 0 Customer Declines Destination Charge (Subject to Change) (A+C) t / !St Advance Payment Received I► i I ' • NET AMOUNT (F+G+H-I) ► sy� (ep!O THE TERMS AND CONDITIONS ON THE REVERSE AND ATTACHED ARE A PART OF THIS AGREEMENT THE CUSTOMER ACKNOWLEDGES THAT THE CUSTOMER HAS READ THIS AGREEMENT UNDERSTANDS R, AND AGREES TO BE BOUND BT ITS TERMS AND CONDITIONS. FURTHER. THE CUSTOMER AGREES THAT R IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES, WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN. AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. (A) (B) International Business Machines Corporation Casio Vi a *�"n W . A�"y ..i Number of Machines Please Type or Print all Information except signature City ml slate ztP 040. Branch Onrp Marna Br. Olt. No Ztp Cale N (Mimi. It BY (Gus aes Slgnatu Dale City M Mato BY (IBM Repsfantati..s Slgnatwal Data Signa/ By —(Print Name) Signed By +IPnnl Title) cessing Equipment On (C) (D) (E) (F) (G) (H) (1) IJ) MUST BE INITIALED TO BE VALID 0 Currently on Automatic Service Plan 0 Customer Agrees to Purchase ,,aril ❑ Regular Plan ❑ Automatic Service Plan 0 Customer Declines........• TERMS AND CONDITIONS ONYATTACHMENT MACHINE Number of Machines Basic Annual Se Per Charge Per Unit Guaranteed Annual Inspection Desired Zone Charge 11 Applicable Per Unit Yes/No Charge Typal Modal Feature -i i 1 1 I 1 1 I 1 I I f ! i Service Agreement IC and ICC 0 Service Agreement Signed ❑ SA II 0 Customer Declines........ ❑ SA III 0 Customer Accepts on Installation........ Supply Agreement 0 Supply Agreement Signed 0 Customer Declines Z 140-2184-4110/801 U/M 50 IBM BRANCH OFFICE CUSTOMER Page 1 of 3 L-X,e 'a3 " PURCHASE AGREEMENT TERMS & CONDITIONS Page w ago- ew Customer agrees to purchase and International Business Machines Corporation (IBM) by its acceptance of this Agreement, agrees to sell. on the following terms and conditions, the machines shown on the first page of this Agreement Under these terms and conditions, IBM will. ll) sell machines to the Customer. and (2) provide Warranty service. and (3) as available. furnish programming and programming services. all as described herein. The Customer agrees to accept the machines. Warranty service. programming and programming services under the terms and conditions 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 used with the machines and programming. Acceptance of this Agreement by IBM is contingent upon (ii a satisfactory credit report on the Customer and (2) with regard to the dollar amounts shown on the first page of this Agreement, the absence of any mathematical error or deviation from IBM's current prices Unless the Customer is advised to the contrary within 30 days alter the signing of this Agreement. this Agreement is accepted by IBM as written and is in full force and effect from the date signed by IBM. The term "machines' as used in this Agreement refers to machines and/or their model upgrades and features unless the context requires individual reference to model upgrades and features. PAYMENT The Customer agrees to pay the Purchase Price less any applicable Trade•lo Credit as shown on the first page of this Agreement. Payment will be made as specified in the invoice. unless otherwise provided far in an installment payment agreement between IBM and the Customer. Except for the purchase of installed leased or rented machines: This Agreement must be signed by the Customer and accepted by IBM on or before the Date of Installation of the machines For the purchase of installed leased or rented machines: The prices stated herein are exclusive of any charges which are due or may become due from the Customer under any IBM lease or rental agreement relating to the machines. The Effective Date of Purchase shall be the later of the Effective Date of Purchase stated on the first page of this Agreement or the dale on which this Agreement, signed by the Customer. is received by IBM. The machines will be terminated under the applicable IBM lease or rental agreement between IBM and the Customer as of the day immediately preceding the Effective Date of Purchase In addition to the prices shown on the first page of this Agreement, the Customer agrees to pay amounts equal to any taxes resulting from this Agreement• or any activities hereunder. exclusive of taxes based en net income. Any personal property taxes assessable on the machines alter delivery to the carrier shall be borne by the Customer. except that any such taxes assessable on purchase of installed leased or rented machines on en after the Effective Date of Purchase shall be borne by the Customer. machines covered by this Agreement. such Order Certification. along with any associated Supplement to Order Certification for IBM Machines signed by the Customer, is hereby incorporated in and made a part of this Agreement. PRICE PROTECTION PERIOD For Electric Typewriters and Input Processing Equipment not yet installed. IBM may not increase the prices from the dale on which this Agreement is signed by the Customer and IBM to the originally scheduled shipping date (this period will at no lime exceed twelve months). For machines other than Electric Typewriters and Input Processing Equipment not yet installed, prices of the machines stated herein shall not be subject to any established price increase from the dale on which this Agreement is signed by the Customer and IBM unless written notice shall have been given to the Customer at least three months before the date of shipment. For purchase of installed leased or rented machines. unless protected by a valid quotation, prices are subject to change until the Elf ectwe Date of Purchase within the limits set forth in the provisions of any applicable IBM lease agreement. If IBM's established price for mix machine upon the Date of Installation shall be lower than the price for such mach ine stated in thisA 8 reement, the Customer shall have the benefit of such lower price. INSTALLATION The Customer agrees to provide a suitable installation environment with all the facilities prescribed by IBM. Machines purchased under this Agreement shall be installed as specified by IBM. Except for purchase of installed leased or rented machines. the Date of Installation for a machine being installed (except for Customer Set Up machines) will be the day (Monday through Friday) following the day that (1) the machine is installed as specified by IBM, or 12) the machine is delivered to the Customer, if the Customer fails to provide a suitable installation environment or elects to delay installation. IBM will notify the Customer of the Date of Installation. CUSTOMER SET-UP MACHINES The Customer shall be responsible for set-up of Customer Set -Up (CSU) machines. A CSU machine will be'considered to be installed on•the last day (Monday through Friday) of the CSU allowance oe rio dfor for s of the machine. ch machine e whit ch Customer's commences nprthe day (Monday through Friday) following the date A CSU feature or model conversion will be considered to be installed one month following the later of its estimated dale of shipment or its actual date of shipment from IBM. CONFIGURATION CHANGES By agreement.behveen IBM and the Customer, changes in the configuration of machines described herein may be made prior to the date of shipment. Such changes will be subject to prices and shipping schedules in effect at time of change. Additional features and model upgrades which are field installable may be ordered in writing by the Customer under this Agreement. at any time atter its acceptance by IBM. for installation in the machines. subject to IBM's prices then generally in effect. PROGRAMMING The term "programming" as used in this Agreement shall mean such programming as IBM may make generally available. from time to time, without separate charge. for machines of the types ordered by the Customer under this Agreement. IBM will furnish such programming as maybe requested by the Customer. The term "programming services' shall mean such services as IBM may generally make available without separate charge to connection with programming. IBM will determine'the progragrming services available and their duration ' " •' The terms "programming" and "programming services" do not include IBM programs and services that are available for a separate charge or which are offered under separate written agreements. LIMITED WARRANTIES Machines purchased under this Agreement maybe either newly manufactured by IBM from new and serviceable used parts which are equivalent to new in performance in these machines, on assembled by IBM from serviceable used parts. or machines which have been previously installed. IBM warrants that each machinewill be in good workingorder on the day that itis installed and that it wdl conform to IBM's official published specifications The following Warranty Period will apply to the machines: DESTINATION CHARGES All Destination Charges for each machine. model change or feature, and any rigging charges. including those charges related to any equipment being traded. in, will be paid by the Customer in accordance with IBM's then current shipping and billing practice. TITLE Except for purchase of installed leased or rented machines, title to each machine passes to the Customer on the date of shipment from IBM. or on the date this Agreement is signed by IBM, provided that such Agreement is accepted by IBM, whichever is later. For purchase of installed leased or rented machines, title to each machine passes on the Effective Dale of Purchase. SECURITY INTEREST IBM reserves a purchase money security interest in each of the machines listed herein in the amount of its Purchase Price. These interests will be satisfied by payment in full unless otherwise provided for in an IBM installment payment agreement. Acopy of this Agreement may be filed on IBM's behalf with appropriate state authorities at any time after a signature by the Customer as a financing statement in order to perfect IBM's security interest. Such fibng does not constitute acceptance of this Agreement by IBM. TRADE-IN ALLOWANCE CREDIT The Customer agrees to make available to IBM the trade-in equipment listed on the first page of this Agreement prior to or upon the Date of Installation of machines ordered hereunder. IBM may reduce the Trade -In Allowance Crediland Increase the NetAmount shown on the first page of this Agreement it any trade-in equipment, when received by IBM orRs authorized agent, is not in substantially the same condition as when inspected. The Trade -In Allowance Credit may not be reduced, other than for equipment condition, unless written notice shall have been given to the Customer at least three months before the date of shipment of the machines ordered hereunder. The Customer certifies that the Customer is the true owner and that IBM will receive the trade-in equipment free from any encumbrances. Title to the trade-in equipment and risk of loss will remain in the Customer until physical delivery Ie IBM or its authorized agent, at which bine tide will be deemed to pass. The Trade -In Allowance Credit will be issued promptly alter passage of title of the trade-in equipment to IBM and upon installation of the orPorder machines. The credit will be applied only as part PBayment of the Purchase Price of the on -order machines or against sums due or to become due to TRAADE•IN EQUIPMENT DESTINATION CHARGES All destination, packaging and rigging charges for trade-in equipment other than Electric Typewriters and Input Processing Equipment are the responsibility of the Customer. RISK OF LOSS OR DAMAGE The Customer assumes risk of loss or damage spun delivery of the machines tp the Customer, or the Effective Dole of Purchase for installed leased.,drrented machines.' SHIPMENT' (Except tar nut wand; .i insraaed Iease4.r rented machine,/ IBM agrees to schedule each machine for shipment in accordance with IBM's applicable shipment sequence and will confirm and amend. as -necessary, the Customer's schedule. Prior to shipment, IBM will make reasonable accommodation to a delay requested by the Customer. ORDER CERTIFICATION If IBM requires the signing by the Customer of an Order Certification for IBM Machines for any of the Except for the purchase of installed leased or rented machines, the Warranty Period for each machine will be 90 days commencing upon the Date of Installation of such machines. For the purchase of installed leased or rented machines. the Warranty Period for each machine will be 90 days commencing upon the date the originally ordered machine was first installed on rent or lease with the Customer. I. SERVICE AND PARTS WARRANTY IBM will provide Warranty service to keep in or restore to good working order each machine for 90 days from the Warranty commencement date at no additional charge to the Customer, exceptes set forth in the Section entitled "Exclusions. This Warranty service includes preventive maintenance based upon the specific needs of individual machines as determined by IBM and unscheduled. on-call remedial maintenance. Warranty service will also include lubrication. adjustments, and re placement of parIs deemed necessary by IBM. Parts will be furnished on an exchange basis, and the replaced parts become the property of IBM. Warranty service provided under this Agreement does not assure uninterrupted operation of the machines Commencing on the Date of Installation of an additional feature or model upgrade increment. IBM will provide a 90 day Service and Pads Warranty for such feature or model upgrade increment During the Warranty Period. engineering changes. determined applicable by IBM. will be controlled and installed by IBM on the machines. The Customer may. by providing notice subject to written confirmation by IBM, elect to have only mandatory changes, as determined by IBM. installed on the machines. IBM shall have full and free access to the machines to provide service thereon. The Customer shall promptly inform IBM of any change in the machine's location during the Warranty Period: Service outside the scope of the Warranty will be furnished at IBM's time and material rates then generally in effect. .. • _ - II.ADDITIONALWARRANTYPROVISIONS IBM further warrants that programming designated by IBM far Ise with a machine and 1orwhich programming services are available will conform to IBMs official published specifications when shipped to the Customer if properly used on such machine Thereafter. IBM wilt provide programming services, subject to the provisions slated in the Section entitled "Programming."' •, IBM does not warrant that the functions contained in the programming will operate in the combinations which may be selected for use by the Customer, or will meet the Customer's requirements. ALL PROGRAMMING FOR WHICH NO PROGRAMMING SERVICES ARE AVAILABLE IS DISTRIBUTED ON AN "AS IS" BASIS WITHOUT WARRANTY. IBM does not warrant that the operation of the machine or programming will be uninterrupted or error Tree. or that all programming errors will be corrected III. EXCLUSIONS The warranties provided by IBM under the Agreement do by failure include: continually (a) installation environment withnall facilitieseprescribed by IBMoilud g, but vide a not limited to. adequate space, electrical power. air conditioning or humidity control; (b) repair of damage or increase in service time caused by the use of the machines for other than ordinary use for which designed: j . fc) parts (duecto other than normal weae use r) or repetitivecserrvicercalls; air of damage. replacement of (d) repair of damage or increase in service time caused by: accident; disaster. which shall include, but not be limited to, Fire. flood, water, wind and lightning; transportation: neglect or misuse; alterations. which shall include. but not be limited to. any deviation from IBM's physical, mechanical or electrical machine design; attachments, which are defined as the mechanical. electrical or electronic interconnection to an IBM machine of non -IBM equipment and devices not supplied by IBM. or IBM machines. except those IBM machines which are owned by IBM. under the Service and Parts Warranty provision of an IBM purchase agreement or under an IBM service agreement; lel repair of damage or increase in service time caused by the conversion from one IBM model to another or the installation or removal of an IBM feature whenever any of the foregoing was performed by other than IBM. This exclusion shall apply only during the 90 days subsequent to the date of such machine modification: (f) additional service time and replacement parts associated with the installation by IBM of an engineering change when such additional service and parts are required due to the conversion from one IBM model to another or the installation or removal of an IBM feature whenever any of the foregoing was performed by other Than IBM: " (g) furnishing supplies las designated by IBM) or accessories. painting or refinishing the machines or furnishing material therefor. inspecting altered machines. making specification changes or perlormingservices connected with relocation of machines. or adding or removing accessories. attachments or other devices: (h) electrical work external to the machines or maintenance of accessories. alterations. attach- ments or other devices not furnished by IBM: (i) such service which is impractical for IBM to render because of alterations in. or attachments to. the machines: and (it providing Warranty service U the machine is located outside the United States. Puerto Rico. Guam or the Canal Zone. PATENT AND COPYRIGHT INDEMNITY • IBM will defend the Customer against a claim that machines or programming supplied hereunder i!lunges a U S. Patentor Copyright. or that the machinesoperation pursuant to the current unaltered Operating Instructions provided by,IBM for such machine and/or pursuant to a current release and modification level of any programming supplied by IBM infringes a U.S. patent. IBM will pay resulting costs, damages and attorneys fees finally awarded provided that: a) the Customer promptly notifies IBM in writing of the claim; and h) IBM has sole control of the defense and all related settlement negotiations. II such claim has occurred. or in IBM's opinion. is likely to occur, the Customer agrees to permit IBM. at its option and expense either to procurator the Customer the righttocontinue using the machines or programming or to replace or modify the same so that they become non infringing. If neither of the foregoing alternatives is reasonably available, the Customer agrees to return the machines or programming on written request by IBM. IBM agrees to grant the Customer a credit for returned machines as depreciated. The depreciation shall be an equal amount per year over the life of the machines as established by IBM IBM has no liability for any claim based upon the combination. operation or use of any machines or programming supplied hereunder with equipment or data not supplied by IBM. or with any program addition programming supplied if such been avoided useof another prgram whthrcapablof rformig he sameor diferent fuctInor esut.BM has no liability for any claim based'upon alteration of the machines or modification of any programming supplied hereunder. If such claim would have been avoided by the absence of such aIteration or modification. The foregoing stale the entire obligation of IBM with respect to infringement of patents and copyrights. WITH T TO PURCHASE OF INSALLED CH HAV BEEN NS ALLEDEFORMORETHAN90DAYS?THECUSTOMERAGASED ORREESTOPURCHASETHENTED MACHINES EMACHINESON AN "AS IS" BASIS WITHOUT WARRANTY. IN NO EVENT WILL IBM BE LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL DAMAGES, EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES. EXPRESS OR IMPLIED, EXCEPT AS MERCHANTABILITY Y AND FITNESS OR A PACONSUMER GOODS RT CULAR PUWHICH RSE POSE APPLHE Y FORT E PERIOD OF TS HE EXPRESS WARRANTIES. PURCHASERS OF CONSUMER PRODUCTS SHOULD NOTETHAT SOME STATES DO NOT ALLOW FOR THE EXCLUSION OF CONSEUENTIAL DAMAGESTHE LIMITATION ON THE DURATION O IMPLIED WARRANTIES SO THE ABOVE EXCLUSIONOR AND LIMITATION MAY NOT BE APPLICAB EF ALSO O HAVE OTHER RIGHTS WHICH MAY VASPECIFIC AY FROMETATE TO STATE D THE PURCHASER MAY ALL INQUIRIES CONCERNING THE ABOVE WARRANTY AND/OR IBM'S PERFORMANCE THEREUNDER SHOULD BE ADDRESSED TO IBM AT ITS BRANCH OFFICE ADDRESS SHOWN ON THE FACE OF THIS AGREEMENT. OTHER PRODUCTS AND SERVICES All maintenance and other service activities (including but not limited to activities excluded from the Warranties provided under thisAgreement and those relating to pre installation planning, inspections. relocation of machines, engineering changes and altered programming) which may be made available by IBM to the Customer at no additional charge oral IBM's then applicable time and material charges. in connection with any machines or programming supplied under this Agreement shall be subject to the terms and conditions of this Agreement unless such activities are provided under another written agreement signed by IBM and the Customer. LIMITATION OF REMEDIES IBM's entire liability and the Customers exclusive remedy shall be as follows: In all situations involving performance or non-performance of machines. model upgrades, features or programming furnished under this Agreement. the Customer's remedy's II) the adjustment or repair of the machine, model upgrade or feature, or replacement of its parts by IBM. or. al IBM's option. replacement of the machine, model upgrade or feature. or correction of programming errors. or (2) d. atter repeated efforts. IBM is unable to install the machine. model upgrade or feature or a replacement machine. model upgrade or feature in good working order. or to restore it to good working order. or to make programming operate. all as warranted, the Customer shall he entitled to recover actual damages to the limits set forth a This Section Far any other claim concerning performance or non-performance under thisurAgreementrtheCustomer shalllbeentitlede torecoveractualdamagestothelimitssetforth r in this Section. ' IBM's liability for damages to the Customer for any cause whatsoever, and regardless of the form of aclion. whether in contract or in tort including negligence. shall be limited to the greater x1525,000 or the purchase price stated herein 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 limitation of liability will nol apply to the payment of cost and damage awards referred loin the Section entitled "Patent and Copyright Indemnity, or to claims for personal injury caused solely by IBM's negligence. In no event will IBM be liable for any damages caused by the Customer's failure to perform the Customer's responsibilities, or for any lost profits or other consequential damages, even d IBM has been advised of the possibility of suchdamages, or for any claim against the Customer by any other party. except as provided in the Section entitled "Patent and Copyright Indemnity." - In addition to the machines. programming and services provided under this Agreement. IBM offers other products and services at separate charges under applicable written IBM agreements. IBM and the Customer agree that such products and services cannot be the subject of an oral agreement. The Customer and conditions ofwith a written agreement such signed by the Customer andducts or services as IBM, but only under the GENERAL This Agreement is not assignable 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. This Agreement can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Coslomer unit 01 IBM (as authonioed IBM Manager), and variance from the terms and conditions of this Agreement in any order or other written notification from the Customer. will be of no effect. The term "this Agreement' as used herein includes any future written amendment made in accordance herewith. II the Customer defaults as to any obligation to return machines or fails to pay any amounts due hereunder. IBM, in addition to any other remedies. may repossess the machines without notice and the Customer agrees to pay all costs and expenses of collection and/or repossession. including all attorneys fees incurred. up to the maximum permitted by applicable state law. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity. legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. , • . •. No action. regardless of form, arising out of this Agreement maybe brought by either party more than two years after the cause of action has arisen. or. in the case of non-payment, more than two yeast from the date of the last payment. IBM is not responsible for failure to fulfill its obligations under this Agreement due to causes beyons its control This Agreement will be governed by the laws of the State of New York. TRAVEL EXPENSE There will be no charge for travel expense associated with Warranty service or programming service under this Agreement, except travel charges in those instances where the machine location is not normally accessible by private automobile or scheduled public transportation or if the IBM Service Representative is unable to travel to the machine location. perform regular service. and then (ravel to IBM's nearest Branch Office or Point of Service within IBM's normal business hours. In such instances the Customer agrees to pay actualtravel expense plus travel and waiting time at IBM's prevailing hourly rate. MAINTENANCE SERVICE AND PARTS Following expiration of the applicable Warranty Period. IBM if requested will provide, at IBM's rales and terms then in effect, maintenance service and maintenance parts for the machines, as long as such service and parts are generally available. ENGINEERING CHANGES IBM will, upon request, furnish to the Customer, al 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 in announcedion winlh. thehe fu future will bes suitable los usM makes no e on, ee fion that n connection with. thesneering e machines es which may be CUSTOMER 2169110 - o100 z 140- 2164-4110 �.e,:Cafs ` rjiL�i���Te�i�.�'.i>Ci4tT�1l'rL�+ya SERVICE AGREEMENT I — TERMS AND CONDITIONS ACCEPTANCE Acceptance of this Agreement by IBM Is contingent upon the absence of any mathematical error and upon consistency with IBM's then current prices Unless the Customer is advised to the contrary within 30 days from the Customer's signing of this Agreement, this Agreement is accepted by IBM as written and Is in lull force and effect on the date signed by IBM. TERM This Agreement will remain in force until the Renewal Month and will then be automatically extended for annual perrod(s) until all machines have been withdrawn from service under this Agreement. For each machine there will be a Service Commencement Date which will be the day following the expiration date of the Service and Parts Warranty provision of an IBM Purchase Agreement or the Service Commencement Date as shown on the face of this Commence'menit Date up to but not including thmachine ffirst iday of the providedenewfrom Month the as showService on the face of this Agreement, or the Customers presently established Renewal Month If the Customer elects to prorate. Thereafter, Service Availability for each machine will be automatically extended for annual period(s), unless the machine Is withdrawn from service. The Customer can terminate this Agreement or withdraw any machine from this Agreement at any time with one month's prior written notice to IBM. Except as otherwise provided herein, IBM may withdraw any machine from this Agreement at any time following twelve months from the Service Commencement Date by providing the Customer with one month's prior written notice. SERVICE AVAILABILITY • - IBM will provide service availability during IBM's normal business hours while the machine is located within the United Stales, Puerto Rico, Guam or the Canal Zone. This service to keep the machine(s) in, or restore the machine(s) to, good working order includes unscheduled, on-call remedial maintenance and preventive maintenance (Inspections). Inspections may be performed during the course of the on-call remedial maintenance and are based upon the specific needs of the Individual machine as determined by IBM. Maintenance will include lubrication, adjustments and replacement of maintenance parts deemed necessary by IBM. Maintenance parts will normally be either new or equivalent to new in performance when installed In an IBM machine. If anew or equivalent to new part Is not available, and a used part Is supplied, the Customer will be so advised. Maintenance parts will be furnished on en exchange basis, and the replaced parts become the property of IBM. Service provided under this Agreement does not assure uninterrupted operation of the machine(s). The Customer may purchase a Guaranteed Annual Inspection by so Indicating on the lace of this Agreement. The charge will be the charge then generally In effect on the latter of the Commencement Dale or Renewal Month of this Agreement. If Guaranteed Annual Inspection has been purchased and IBM falls to perform such Inspection, the Customer will be given a refund of the amount paid for such Guaranteed Annual Inspection. CHARGES Tha Customer agrees to pay a Basic Annual Service Charge as indicated on the face of this Agreement Service Charges are subject to Increase by IBM effective on the Renewal Month with prior written notice by IBM to the Customer. If the Customer requests service to be performed at a time outside IBM's normal business hours, there will be no additional charge for maintenance parts; however, the service, if available, will be furnished at IBM's applicable hourly rates and terms then In effect. When the distance from the Machine's Location to IBM's nearest Branch Office or Point of Service is greater than 15 miles, the Customer agrees to pay IBM's then current Zone Charges or travel charges. Travel charges will consist of actual travel expense plus travel and waiting time at IBM's prevailing hourly rate. Travel charges will also apply If the machine location is not normally accessible by private automobile or scheduled public transportation or if the IBM Service Representative Is unable to travel to the machine location, perform regular service, and then travel to IBM's nearest Branch Off ice or Point of Service within IBM's normal business hours. Changes in machine specifications may result In an adjustment of the Service Charge. Such adjustment will become eliective upon the Installation of the specification change. AUTOMATIC SERVICE AGREEMENT PROVISION. (Optional—sea face of this Agreement) Each machine subsequently purchased, the type of which is eligible for service under this Agreement, will be automatically added to this Agreement. The Service Commencement Date will be the day following the expiration date of the Service and Pans Warranty provision of the applicable IBM Purchase Agreement. The Service Charge and Zone Charge, If any, will be the lower of charges then In effect on the last Renewal Month for service under this Agreement or the charges In effect on the Service Commencement Date for that machine. 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 upon net income. INVOICING ' The Basic Annual Service Charge and Zone Charge, If any, will be invoiced in advance. Payment will be due as specified In the Invoice. All other charges due hereunder am payable as specified In the Invoice: The Basic Annual Service Charge and Zone Charge, If any, for a partial month's service will be prorated on the basis of a 30 -day month. EXCLUSIONS Service under this Agreement does not Include' (a) repair of damage or increase In service lime caused by accident, misuse, disaster, or abuse; or by accessories, alterations, attachments or other devices not furnished by IBM; , • (b) furnishing or repairing supplies or accessories (optional features); painting; or refinishing the machines; (c) making specification changes; -• • (d) maintenance service due to the use of supplies, Including repair of damage, replacement of parts (due to other than normal wear) or repetitive service calls; (e) service of accessories, alterations, attachments, or other devices not furnished by - IBM; (fI repair of damage or increase In service time caused by failure to continually provide a suitable Installation environment with all facilities prescribed by IBM including, but notnlimited to, adequate space, electrical power, air conditioning or humidity control; (g) additional service time and, or replacement parts due to conditions set forth in the Sections "Access to Machines," "Engineering Changes — Installation and Control.' and "Non -IBM Parts." ACCESS TO MACHINES IBM shall have lull and free access to the machine(s) to provide service (hereon. If persons other than IBM representatives shall install model conversions or feature additions or shall perform service on a machine, and as a result further repair by IBM is required, such further repairs will be made at IBM's applicable time and material rales and terms then in effect. If such additional repair Is required, IBM may withdraw the machine from this Agreement upon one month's prior written notice to the Customer following any repetition of the need for additional repair of such machine caused by non -IBM service activity. ENGINEERING CHANGES—INSTALLATION AND CONTROL Engineering changes, determined applicable by IBM, will be controlled and Installed by IBM on machines covered by this Agreement. 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 so designated. IBM reserves the right to charge, at its applicable time and material ales and terns then In effect, for additional service time and replacement pads associated with the Installation by IBM of an engineering change when such additional service and pans are required due to the conversion Irom one IBM model to another or the Installation or removal of an IBM feature whenever any of the foregoing was performed by other than IBM. NON -IBM PARTS Service provided by IBM under this Agreement does not include the replacement or adjustment of parts which were not furnished for the machine by IBM, or the time spent In determining the need for replacement or adjustment of such parts, except for common hardware items such as screws, nuts, bolts, clamps and commercially available parts such as Iighlbulbs IBM will replace, Cl the Customer's request and at IBM's applicable time and . material rales and terms then In effect, maintenance parts which were not furnished for the machine by IBM (except when such part is in an alteration) when such parts are directly interchangeable with the IBM maintenance parts. When IBM determines that a machine under this Agreement contains a part, nal famished for the machine by IBM, which Is particularly significant to IBM's ability to provide maintenance service for such machine under this Agreement, IBM may withdraw the machine from this Agreement upon one month's prior written notice to the Customer, unless the Customer replaces the part with a directly interchangeable part furnished for the machine by IBM. IBM will, at the Customers request, replace such pad with a directly Interchangeable part at IBM's applicable time and material rates and terms then in effect. DISCLAIMER AND LIMITATION OF LIABILITY IBM's liability to the Customer for damages, from any cause whatsoever. and regardless of the form of action, whether In contact or In tort Including negligence, shall be limited to actual damages up to a maximum of $10,000 or Twelve months Service 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 action. The foregoing limitation of liability will not apply to claims 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 LOST PROFITS OR OTHER CONSEQUENTIAL DAMAGES EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR FOR ANY CLAIM AGAINST THE CUSTOMER BY ANY OTHER PARTY. IBM DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. SOME STATES DO NOT ALLOW LIMITATIONS OF AN IMPLIED WARRANTY OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUEN• TIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO . YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. GENERAL Subject to the terms of the following paragraph, IBM may modify the terms and conditions of this Agreement effective on the Renewal Month by providing the Customer with prior written notice. Any such modification will apply unless the Customer exercises the option to terminate this Agreement or withdraw the machines) affected by such modification. Otherwise, this Agreement can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and of IBM (an authorized IBM Manager) and variance from the terms and conditions of this Agreement In any Customer order er other written modification will be of no effect. The Customer represents that the Customer Is the owner of the machine(s) under this Arethis Agreement. or, if not the owner, has authority from the owner to Include such machine(s) greement. This Agreement Is not assignable; its rights, duties and obligations may not be assigned or transferred by the Customer without the prior written consent of IBM. Any attempt to assign or transfer any of the rights, duties or obligations of this Agreement without such consent Is void. IBM's service provided outside the scope of this Agreement will be furnished at IBM's applicable time and material rates and terms Then In effect. IBM Is not responsible for failure to render service due to causes beyond Its control (Including a claim of patent Infringement, or action thereon, that may inhibit IBM's ability to render service). Either party may withdraw any machine or all machines from this Agreement for failure of the other to comply with any of its terms and conditions. No action, regardless of form, arising out of this Agreement may be brought by either party more than two years after the cause of action has arisen, or, in the case 01 non-payment, mom than two yeam from the date of the last payment. This Agreement will be governed by the laws of the Stale of New York. . • _ • Attachment` Z 140.2184-4 (10/30( :Supply. Agree~c.nt Supply Group RIBBONS & TAPES TOTAL ANNUAL OUANTITY ORDERED MIOUANTITY ITO ANT ) SINGLE LOCATION 'y Quantity Description Reorder A 9111 al Quantity Price Per - SHIPMENT QUANTITY MONTHS OF -• ==ter ..e./ • " Ouanitly Description 40 .riM1±`,!. cti r' Reorder o SHIPMENT QUANTITY MONTHS OF AA AMP,^ OUantily Description Reorder s{. ev Bill at Quantity' Price Per a$:`>Fs rid SHIPMENT QUANTITY MONTHS OF^ SLPTZTICIA Bill at Ouantlty Price Per JUNK AvauSi Fr acq Quantity Descnpnon Reorder R Bill at Quantity Price Per SHIPMENT QUANTITY MONTH5 0 PCBRuAnv 1U. Supply Group BILL TO TOTAL ANNUAL rf�� QUANTITY U ORDERED MINIMUM SHIPMENTr1L QUANTITY TO A U SINGLE LOCATION Quantity Description _.. ema0-CYT-nuANTiYYoMONT Reorder A 3 OF. .� -- .z. Bill at Quantity Pnce Per .. - ___ -..•- + .., �• ' . '- .� ."• a•• Quantity Description Reorderq Boll at Quantity Price Per SHIPMENT. QUANTITY-MONTAS:OF`-,^. Ouanlity COIATccv Oescriptlon ' M1l.ini Yx Td!"a`rJwt aig t Reorder SHIPMENT QUANTITY iMONTMS `vtf Price 13I11 at Quantity Per MISCELLANEOUS SUPPLY ITEMS Ouantlly Description Reorder A SHIPMENT QUANTITY MON 1MS OF Bill al 0uanNly Price Per VA APRIL AUCUS c.rew.ew oda (Y VC.4•Ew Quantity Description Reorder A 0111 at Quantity Price Per +5 x�M1+r& AlIGVDT Ocrowl ucdcwwa 11 the Customer requests delivery of Supplies at quantities lower than the Minimum SRipmenl Ouantity to a Single Location as indicated, IBM will bill and the Customer agrees to pay th higher price for su h lower quantity based on IBM's app icable price list. THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE PART OF THIS AGREEMENT. THE CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AILD 009810ION5. FURTHER, THE CUSTOMER AGREES THAT IT I5 THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. International Business Machines Corporation BILL TO SHIP TO 111 Dilferent Than BIN 00) Customers Name Customer's Name Branch 011100 No. - Mark For (Attention OI) Mark For (Attention 00 • Branch:Wilco Address Address Address CITY City City . State Zip Code State Zip Code State Zip Code BY: DATE: IBM REPRESENTATIVE SIGNATURE Z 140.9088- • . U/M 50 1/90 ATTEST: BY: CUSTOMERS SIGNATURE DATE CUSTOMER REPRESENTATIVE'S NAME TITLE „Telephone Number ' DO NOT PAY UNTIL INVOICED IBM BRANCH OFFICE City Secretary APPROVED: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney .Iw..,swll. ar J n..i..nacy APPROVED: Director of Data Processing - r Z 140-90a6.0.7/88 SUPPLY AGREEMENT TERMS AND CONDITIONS ACCEPTANCE Customer agrees to purchase and International Business Machines Corporation (IBM) by its acceptance of this Agreement, agrees to sell, on the following terms and conditions, the Supplies shown on the first page of this Agreement. Acceptance of this Agreement is contingent upon (1) a satisfactory credit report on Customer, and (2) with regard to the dollar amounts stated herein, the absence of any mathematical error or deviation from IBM's standard prices. Unless the Customer is advised to the contrary within 15 days after the Customer's signing of this Agreement, this Agreement is accepted by IBM as written on the date signed by IBM. The date on which the Customer signs this Agreement, if subsequently accepted by IBM, will be the Effective Date. TITLE Title to Supplies under this Agreement will pass to Customer on the date of shipment from IBM. - SECURITY INTEREST IBM reserves a Security Interest in the Supplies listed herein or to be ordered in the future under this Agreement in the amount of their purchase price. These interests will be satisfied by payment in full. A copy of this Agreement may be filed with appropriate State authori- ties at any time alter signature by Customer as a financing statement in order to perfect IBM's Security Interest. RISK OF LOSS Customer assumes risk of loss or damage upon delivery of the Supplies to the Customer. TERM Except as othervrise provided herein, this Agreement will remain in force one year from the Effective Date and will then be automatically renewed for annual period(s) unless terminated either by the Cus- tomer on one month's written notice at any time, or by IBM on one month's written notice prior to renewal. CHARGES The price of each Supply item will be the price as indicated on the face of this Agreement and is determined by the Minimum Shipment Quantity to a Single Location and the Bill at Quantity as indicated on the face of this Agreement. If at the end of the current Agreement period the Customer has not accepted delivery of at least the Bill at Quantity, then IBM will bill and the Customer agrees to pay the difference between IBM's prices for the total annual quantity received, based on IBM's applicable price list, and the price as invoiced. If the Customer requests delivery of Supplies at quantities lower than the Minimum Shipment Quantity to a Single Location, IBM will bill and the Customer agrees to pay the higher price for such lower quantity based on IBM's applicable price list. Transportation charges within the United States (including Puerto Rico and the Canal Zone) are at IBM's expense. Terms are net 30 days from date of invoice. PRICE PROTECTION Except as stated below. all prices charged will be IBM's applicable established prices in effect on the Effective Date of this Agreement. A price quoted on the face of this Agreement for Copy Paper, Copy Offset Masters and Copy Transparancies will be firm for 30 days, after which the prices charged for such items will be the prices in effect on the date shipped from IBM. If this Agreement is automatically renewed, IBM's applicable established prices and terms and conditions in effect on the renewal date shall apply for the renewal period. If IBM's applicable established price upon the shipment date of any Supply under this Agreement shall be lower than the price for such Supply stated in this agreement, the Customer shall have the benefit of such lower price. • 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 upon net income. SUBSTITUTIONS/ADDITIONS/DELETIONS If at any time Customer forecasts purchasing an increased quantity of Supplies, IBM, at Customer's request, will terminate this Agree- ment and negotiate a new Agreement specifying the increased quantity of Supplies and the applicable price. At any time IBM may delete or substitute any Supply item listed herein. If such deletion or substitution results in Customer using a reduced amount of Supply items. IBM will not increase the applicable price for such Supply items during the then current term of the Agreement. DEFAULT If Customer defaults hereunder or if a petition in bankruptcy is filed by or against Customer: 1. IBM, in addition to other remedies, may repossess any Supplies which were previously delivered hereunder and for which payment has not been received; 2. IBM may refuse to make further shipments of Supplies; and 3. Customer agrees to pay IBM's cost and expenses of collection and/or repossession, including the maximum attorney's fee permitted by law, said fee not to exceed 25% of the amount due hereunder. LIMITED WARRANTY/REMEDY IBM warrants the Supplies to the original purchaser to be free from defects in material and workmanship at the time of delivery. Purchaser's exclusive remedy for breach of the limited warranty is repair or replacement of the defective Supplies provided that Pur- chaser returns said defective Supplies to the nearest IBM Office Products Branch Office listed in the telephone directory in the United States, Puerto Rico or the Canal Zone within one year after delivery. IBM's liability to the Customer for any cause whatsoever, and regardless of the form of action. whether in contract or in tort including negligence, shall be limited to actual damages up to an amount equal to the greater of the purchase price of the items causing the damage or $1000. Under no circumstances will IBM be liable for any lost profits, incidential or consequential damages arising out of the use of or inability to use the supplies, even if IBM has been advised of the possibility of such damages. The foregoing limitation of remedy will not apply to the payment of cost and damage awards for personal injury or damage to real property or tangible personal property caused by IBM's negligence. NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PAR- TICULAR PURPOSE WILL APPLY TO THE SUPPLIES. SOME STATES DO NOT ALLOW LIMITATIONS ON‘HOWLONG AN IMPLIED WARRANTY LASTS, OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. GENERAL Subject to the terms of the following paragraph, IBM may modify the terms and conditions of this Agreement effective on the renewal date by providing the Customer with prior written notice. Any such modification will apply unless the Customer exercises the option to terminate this Agreement or withdraw the individual Supply items affected by such modification. Otherwise, this Agree- ment can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and IBM (an authorized IBM Manager) and variance from the terms and conditions of this Agreement in any customer order or other written modification will be of no effect. Either party may terminate this Agreement for failure of the other to comply with any of its terms and condjtions. No action, regardless of form, arising out of this Agreement may be brought by either party more than two years after the cause of action has arisen, or, in the case of non payment, more than two years from the date of the last payment. This Agreement will be governed by the laws of the State of New York. • 0977 Purchase Agreement Oty MACHINE DESCRIPTION Destination Charge' Per Machine Quantity X Destination Charge' Machina Price Quantity X Machine Price Type/Model Feature 1ti5-.8(09-0 Branch Mu Address 3 ,} A y,(C �ii 4 1 // O0 �(La jo9O $,/ O;oo zip Code G 1 1 / fLK N 1 63;OO %709, co .3.7FO:o0 �gdZ 436 /02-x- Signed By— (Print Title) Z.0 A:141146-44— i I 33 ogoo 3300 / 6140 ora K:e��. A • fiO � 1 ; f[oo�3p 4.17.So0 f f oa•oo 4 t7.S�'OP 1 ( r�/4e/i4O IW "---i.� Q Destination Charge (Subject to Change) - 1 1 x'40 7,3aaO , <336 •—•—r--*• •Received 9� 1 (F+G+H-I) 320!DO $2g5?f1o0 _ / 79107 i i Oleo plo0 3 G ec7 /2O/'774.0 /14.Tj u�l/✓ 1 i zo qas zo 000 / 203 Sift 1 1 1 2000 270o .7.0 lap 27-541-00 // •�Ir%� / 7937 I i 1 1 1 1 1 I Supply K ts: 012!12 078118 ❑Other I 1 1 ! Destination Charge' tic to ange) /7140 I► s.703reme• Purchase Price (Excluding applicable taxes and Destination Charges* For The Purchase of Installed Leased or Rented Machines: Effective Date of Purchase Serial No Meter Count Qty. Q..Na , DESCRIPTIONSerWl Include any deduction due to machine condition Number Allowance (Excluding Destination Charge) Destination Charge' City and sots Charge Type/ Model 04 Cade Branch Mu Address ars 011. No I 1 t e City end state zip Code By (custom signature) 1 1 1 I Destination Charge (*Subject to Change) — Invoiced Separately By (IBM Representatives 0.gnetwa) 11. _—"* o Trade -In Signed By— (Print Title) .---;`— ❑ Purchase Option Credits fr -----1— , Sub -Total (B -D -E) IN' .2 34/o po State and Local Taxes (Including Taxes. 11 Applicable on Une A) IW "---i.� Destination Charge (Subject to Change) (A+ C) 0* /78 p0 Advance Payment •—•—r--*• •Received NET AMOUNT (F+G+H-I) J► $2g5?f1o0 THE TERMS AND CONDITIONS ON THE REVERSE AND ATTACHED ARE A PART OF THIS AGREEMENT THE CUSTOMER ACKNOWLEDGES THAT THE CUSTOMER HAS READ THIS AGREEMENT, UNDERSTANDS IT. AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER. THE CUSTOMER AGREES THAT IT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES. WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF TH10 AGREEMENT. (A) (6) International Business Machines Corporation Q..Na , ..• „ Adr4 to,,,,,..„ Guaranteed Annual Inspection Desired Please Type or Print all Information except signature City and sots Charge Type/ Model 04 Cade Branch Mu Address ars 011. No Mark�ytn tldn o0 t e City end state zip Code By (custom signature) 1 I Date By (IBM Representatives 0.gnetwa) Date Signed By-1Print Name) Signed By— (Print Title) cessing Equipment vn (C) (D) (E) (F) (G) (H) (1) (J) MUST BE INITIALED TO BE VALID ❑Currently On Automatic Service Plan ❑ Customer Agrees to Purchase....m.e. 0 Regular Plan 0 Automatic Service Plan IDCustomer Declines.... ^..I. TERMS AND CONDITIONS ONTATTACHMENT MACHINE Number oI Machines Basic Annual Service Charge Per Unit Guaranteed Annual Inspection Desired Zone Charge 11 ApplICable per Unit Yes/No Charge Type/ Model Feature I 1 I 1 1 I I Service Agreement IC and III 0 Service Agreement Signed 0 SA II 0 Customer Declines.......... c• 0 SA III 0 Customer Accepts on Inslallalion..4 r;.s . Supply Agreement 0 Supply Agreement Signed ❑Customer Declines Z 140-2164-4(10/80) U.M 50 IBM BRANCH OFFICE CUSTOMER Page 1 of 3 of PURCHASE AGREEMENT TERMS & CONDITIONS Zraa-Page1lto aq machines covered by this Agreement, such Order Certification, along with any associated Supplement to Order Certification for IBM Machines signed by the Customer, is hereby incorporated In and made a part of this Agreement. Customer agrees to purchase and International Business Machines Corporation (IBM) by its acceptance of this Agreement, agrees to sell, on the following terms and conditions, the machines shown on the first page of this Agreement.Under these terms and conditions, IBM will. (f) sell machines to the Customer, and (2) provide Warranty service, and (31 as available, furnish programming and programming services, all as described herein. The Customer agrees to accept the machines. Warranty service. programming and programming services under the terms and conditions of this Agreement. The Customer further agrees with respect to the machines and programming to accept the responsibility for (I) 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 used with the machines and programming. Acceptance of this Agreement by IBM is contingent upon (I) a satisfactory credit report on the Customer and (2) with regard to the dollar amounts shown on the first page of this Agreement, the absence of any mathematical error or deviation from IBM's current prices. Unless the Customer is advised to the contrary within 30 days after the signing of this Agreement, this Agreement is accepted by IBM as written and is in full force and effect from the date signed by IBM. The term "machines" as used in this Agreement refers to machines and/or their model upgrades and features unless the context requires individual reference to model upgrades and features. PAYMENT The Customer agrees to pay the Purchase Price less any applicable Trade -In Credit as shown on the first page of this Agreement. Payment will be made as specified in the invoice. unless otherwise provided for in an installment payment agreement between IBM and the Customer. Except for the purchase of installed leased or rented machines. This Agreement must be signed by the Customer and accepted by IBM an or before the Date of Installation of the machines For the purchase of installed leased or rented machines The prices stated herein are exclusive of any charges which are due or may become due from the Customer under any IBM lease or rental agreement relating to the machines. The Effective Date of Purchase shall be the later of the Effective Date of Purchase stated on the first page of this Agreement or the date on which this Agreement. signed by the Customer, is received by IBM The machines will be terminated under the applicable IBM lease or rental agreement between IBM and the Customer as of the day immediately preceding the ENecbve Date of Purchase In addition to the prices shown on the first page of this Agreement. the Customer agrees to pay amounts equal to any taxes resulting from this Agreement, or any actiwbes hereunder, exclusive of taxes based on net income. Any personal property taxes assessable on the machines after delivery to the carrier shall be borne by the Customer. except that any such taxes assessable on purchase of installed leased or rented machines on or after the Eltective Date of Purchase shall be borne by the Customer. DESTINATION CHARGES All Destination Charges for each machine, model change or feature. and any rigging charges, including those charges related to any equipment being traded -in, will be paid by the Customer in accordance with IBM's then current shipping and billing practice. TITLE Except for purchase of installed leased or rented machines, title to each machine passes to the Customer on the date of shipment from IBM, oron the date this Agreement is signed by IBM. provided that such Agreement is accepted by IBM, whichever is later. For purchase of installed leased or rented machines, bile to each machine passes on the Effective Dale of Purchase. SECURITY INTEREST IBM reserves a purchase money security interest in each of the machines listed herein in the amount of its Purchase Price. These interests will be satisfied by payment in full unless otherwise provided for in an IBM installment payment agreement. A copy of this Agreement maybe filed on IBM's behalf with appropriate stale authorities at any time after a signature by the Customer as a financing statement in order to perfect IBM's security interest. Such filing does not constitute acceptance of this Agreement by IBM. TRADE-IN ALLOWANCE CREDIT The Customer agrees to make available to IBM the trade-in equipment listed on the first page of this Agreement prior to or upon the Date of Installabon of machines ordered hereunder. IBM may reduce the Trade•In AllewanceCredltand increase the Net Amount shown on the first page of this Agreementif any trade-in equipment. when received by IBM arts authorized agent, is not in substantially the same condition as when inspected. The Trade -In Allowance Credit may not be reduced, other than for equipment condition. unless written notice shall have been given to the Customer at least three months before the date•ot shipment of the machines ordered hereunder. The Customer certifies that the Customer is the true owner and that IBM will receive the trade-in equipment free from any encumbrances. '+ Title la the Irade•inequipment and risk aJlass will remain in the Customer until physical delivery to IBM or its authorized agent, at which time hoe will be deemed to pass. The Trade•ln Allowance Credit wilbe issued promptly after passage of Ulle of the trade-in equipment to IBM and Upop installation of the on -order machines. The credit will be applied only as part Payment ofthe Purchase Price of the on -bider machines or against sums due or to become due to TRADE-IN EQUIPMENT DESTINATION CHARGES •, All•destination,: packaging and rigging charges for trade-in equipment other than Electric Typewriters and Input Processing Equipment are the responsibility of the Customer. RISK OF LOSS OR DAMAGE ' The Customer assumes risk of loss or damage upon delivery oElhe machines to the Customer, or the Effective Date of Purchase fop insfal(ed leased or rented machines. ' SHIPMENT - (E.capi ror the purchase of mimed (eased au rrnlyd machine,) IBM agrees to schedule each machine for shipment in accordance with IBM's applicable shipment sequence and will confirm and amend, d's necessary. the Customers schedule.' Prior to shipment, IBM will make reasonable accommodation to a delay requested by the Customer. ORDER CERTIFICATION It IBM requires the signing by the Customer of an Order Certification for IBM Machines for any of the PRICE PROTECTION PERIOD For Electric Typewriters and Input Processing Equipment not yet installed. IBM may not increase the prices from the date on which this Agreement is signed by the Customer and IBM to the originally scheduled shipping dale (this period will at no time exceed twelve months). For machines other than Electric Typewriters and Input Processing Equipment not yet installed. prices of the machines staled herein shall not be subject to any established price increase from the date on which this Agreement is signed by the Customer and IBM unless written notice shall have been given to the Customer at least three months before the date of shipment For purchase of installed leased or rented machines. unless protected by a valid quotation, prices are subject to change until the Effective Date of Purchase within the limits set forth in the provisions of any applicable IBM lease agreement. If IBM's established price far any machine upon the Date of Installation shall be lower than the price lar such machine stated in this Agreement, the Customer shall have the benefit of such lower price. INSTALLATION The Customer agrees to provide a suitable installation environment with all the lacilities prescribed by IBM. Machines purchased under this Agreement shall be installed as specified by IBM. Except for purchase of installed leased or rented machines, the Date of Installation for a machine being installed (except Ian Customer Set -Up machines) will be the day (Monday through Friday) following the day that (I) the machine is installed as specified by IBM. or (2) the machine is delivered to the Customer, if the Customer lails to provide a suitable installation environment, or elects to delay installation. IBM will notify the Customer of the Date of Installation, CUSTOMER SET-UP MACHINES The Customer shall be responsible for set-up of Customer Set -Up (CSU) machines. A CSU machine will be considered to be installed on the last day (Monday through Friday) of the CSU allowance period for such machine. which commences on the day (Monday through Friday) following the date aI receipt of the machine at the Customers premises. A CSU feature or model conversion will be considered to be installed one month following the later of its estimated date of shipment or its actual date of shipment from IBM. CONFIGURATION CHANGES By agreement between IBM and the Customer. changes in the configuration of machines described herein may be made prior to the date of shipment Such changes will be subject to prices and shipping schedules in effect at lime of change.• - Additional features and model upgrades which are field installable maybe ordered in writing by the Customer under this Agreement, at any time after its acceptance by IBM. for installation in the machines. subject to IBM's prices then generally in effect. PROGRAMMING The term "programming" as used in this Agreement shall mean such programming as IBM may make generally available, from time to time, without separate charge. for machines of the types ordered by the Customer under this Agreement. IBM will furnish such programming as maybe requestedby the Customer. The term "programming services" shall mean such services as IBM may generally make available without separate charge In connection with programming. IBM will determine the programming services available and their duration. - The terms "programming' and "programming services" do not include IBM programs arid services that are available for a separate charge or which are offered under separate written agreements. LIMITED WARRANTIES Machines purchased under this Agreement maybe either newly manufactured by IBM from _ riew and serviceable used parts which are equivalent to new in performance in these machines, or assembled by IBM from serviceable used parts. or machines which have been previously installed. IBM warrants Ihateach machinewill both good workingorder on the day that it is installed and that it will conform to IBM's official published specifications. The following Warranty Period will apply to the machines. Except for the purchase of installed leased or rented machines, the Warranty Period for each machine will be 90 days commencing upon the Date of Installation of such machines. Far the purchase of installed leased or rented machines. the Warranty Period for each machine will be 90 days commencing upon the date the originally ordered machine was first installed on rent or lease with the Customer. I. SERVICE AND PARTS WARRANTY IBM will provide Warranty service to keep in or restore to good working order each machine for 90 days from the Warranty commencement date at no additional charge to the Customer, 'except as eel forth in the Section entitled "Exclusions." This Warranty service includes preventive maintenance based upon the specific needs of individual machines as determined by IBM and unscheduled, en -call remedial maintenance Warranty service will also include lubrication, adjustments. and re• placement of parts deemed necessary by IBM Parts will be furnished on an exchange basis, and the replaced parts become the property of IBM. Warranty service provided under this Agreement does not assure uninterrupted operation of the machines. — ' . -. - '•' ' • • -. Commencing on the Date of Installation of an additional feature or model upgrade increment. IBM will provide a 90 day Service and Parts Warranty for such feature lir model upgrade increment. During the Warranty Period, engineering changes. determinedapplicable by IBM. will be controlled and installed by IBM on the machines. The Customer may. by.providing nobce subject to written confirmation by IBM, elect to have only mandatory changes. as determined by IBM, installed on the machines. - . •• ' • IBM shall have full and free access to the machines to provide service thereon. The Customer shall promptly inform IBM of any change in the machine's location during the Warranty Period. Service outside the scope of the Warranty will be furnished at IBM's lime and material rates then generally in eRect. I. ADDITIONAL WARRANTY PROVISIONS IBM further warrants that programming designated by IBM for rise with a machine and for which programming services are available will conform. to IBM's official published specifications when shipped to the Customer if properly used on such machine Thereafter. IBM will prowdeprogramming services, subject to the provisions stated in the Section entitled "Programming."• IBM does not warrant that the functions contained in the programming will operate in the combinations which may be selected for use by the Customer, or will meet the Customer's requirements 1I IBM requires the signingbythe Customer of an Order Certification for IBM Machines for any of thelrequirements. S. AU. PROGRAMMING FOR WHICH NO PROGRAMMING SERVICES ARE AVAILABLE IS DISTRIBUTED ON AN "AS IS" BASIS WITHOUT WARRANTY. IBM does not warrant that the operation of the machine or programming will be uninterrupted or error free. or that all programming errors will be corrected. III. EXCLUSIONS • The warranties provided by IBM under the Agreement do not include: (al repair of damage or increase in service time caused by failure to continually provide a suitable installation environment with at facilities prescribed by IBM including, but not limited to. adequate space, electrical power, air conditioning or humidity control; (b) repair of damage or increase in service time caused by the use of the machines for other than .ordinary use for which designed: , (c) maintenance service due to the use of supplies,. including repair of damage. replacement of , parts (due to other than normal wear) or repetitive service calls: (d) repair of damage or increase igservice time caused by: accident; disaster. which shall include. but not be limited to• fire, flood, water, wind and lightning: transportation: neglect or misuse, alterations• which shall include. but not be limited to. any deviation from IBM's physical. mechanical or electrical machine design, attachments. which are defined as the mechanical. • electrical or electronic interconnection to an IBM machine of non•IBM equipment and devices not supplied by IBM: or IBM machines, except those IBM machines which are owned by IBM. under the Service and Parts Warranty provision of an IBM purchase agreement or under an IBM service agreement: (e) repair of damage or increase in service time caused by the conversion from one IBM model to another or the installation -or removal of an IBM feature whenever any of the foregoing was performed by other than IN. This exclusion shall apply only during the 90 days subsequent to the date of such machine modification; (f) additional service time and replacement parts associated with the installation by IBM of an engineering change when such additional service and parts are required due to the conversion from one IBM model to another or the installation or removal of an IBM feature whenever any of the foregoing was performed by other than IBM; (g) furnishing snooks (as designated by IBM) or accessories. painting or refinishing the machines or furnishing material therefor. inspecting altered machines. making specification changes or performingservices connected with relocation of machines, or adding or removing accessories. attachments or other devices; (h) electrical work external to the machines or maintenance of accessories, alterations, attach menta or other devices not furnished by IBM: (i) such servicewhich is impractical lot IBM to render because of alterations in. or attachments to the machines: and ((I providing Warranty service H the machine is located outside the United States. Puerto Rico. Guam or the Canal Zone. WITH RESPECT TO PURCHASE OF INSTALLED LEASED OR RENTED MACHINES WHICH HAVE BEEN INSTALLED FOR MORE THAN 90 DAYS, THE CUSTOMER AGREES TO PURCHASE THE MACHINES ON AN "AS IS" BASIS WITHOUT WARRANTY. IN N0 EVENT WILL IBM BE LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL DAMAGES, EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, EXCEPT AS TO CONSUMER GOODS IN WHICH CASE THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE APPLY FOR THE PERIOD OF THE EXPRESS WARRANTIES. PURCHASERS OF CONSUMER PRODUCTS SHOULD NOTETHAT SOME STATES DO NOT ALLOW FOR THE EXCLUSION OF CONSEQUENTIAL DAMAGES OR THE LIMITATION ON THE DURATION OF IMPLIED WARRANTIES SO THE ABOVE EXCLUSION AND LIMITATION MAY NOT BE APPLICABLE. THIS WARRANTY GIVES THE PURCHASER SPECIFIC LEGAL RIGHTS, AND THE PURCHASER MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. ALL INQUIRIES CONCERNING THE ABOVE WARRANTY AND/OR IBM'S PERFORMANCE THEREUNDER SHOULD BE ADDRESSED TO IBM AT ITS BRANCH OFFICE ADDRESS SHOWN ON THE FACE OF THIS AGREEMENT. OTHER PRODUCTS AND SERVICES All maintenance and other service activities (including but not limited to activities excluded from the Warranties provided under this Agreement and those relating to pre installation planning, inspections. relocation of machines. engineenng changes and altered programming) which may be made available by IBM to the Customer at no additional charge or at IBM's then applicable time and material charges• in connection with any machines or programming supplied under this Agreement shall be subject to the terms and conditions of this Agreement unless such activities are provided under another written agreement signed by IBM and the Customer. In addition to the machines, programming and services provided under this Agreement. IBM otters other products and services at separate charges under applicable written IBM agreements. IBM and the Customer agree that such products and services cannot be the subject of an oral agreement. The Customer may contract with IBM for any such products or services as available. but only under the terms and conditions of a written agreement signed by the Customer and IBM. TRAVEL EXPENSE There will bens charge for travel expense associated with Warranty service or programming service under this Agreement, except travel changes in those instances where the machine location is not normally accessible by private automobile or scheduled public transportation or H the IBM Service Representative is unable to travel to the machine location. perform regular service, and Then travel to IBM's nearest Branch Office or Point of Service within IBM's normal business hours. In such instances the Customer agrees to pay actual travel expense plus travel and wailing time at IBM's prevailing hourly rate. MAINTENANCE SERVICE AND PARTS Following expiration of the applicable Warranty Period. IBM if requested will provide, at IBM's rates and terms then in effect• maintenance service and maintenance parts for the machines, as long as such service and parts are generally available ENGINEERING CHANGES IBM will. upon request, furnish to the Customer, 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 in connection with• the machines. IBM makes no representation that engineering changes which may be announced in the future will be suitable for use on. or in connection with, these machines. PATENT AND COPYRIGHT INDEMNITY IBM will defend the Customer against a claim that machines or programming supplied hereunder nfringes a U.S. Patent or Copyright, or thalthe machines operation pursuant to the current unaltered Operating Instructions provided byIBM for such machine and/or pursuant to a current release and modification level of any programming supplied by IBM infringes a U S. patent. IBM will pay resulting costs. damages and attorneys fees finally awarded provided that: a) the Customer promptly notifies IBM in writing of the claim;'and b) IBM has sole control of the defense and all related settlement negotiations. !such claim has occurred, or in IBM's opinion, is likely to occur. the Customer agrees to permit IBM. at its option and expense either to procure for the Customer the right to continue using the machines or programming or to replace or modify the same so that they become non -infringing. If neither of the foregoing alternatives is reasonably available, the Customer agrees to return the machines or programming on written request by IBM. IBM agrees to grant the Customer a credit for returned machines as depreciated. The depreciation shall bean equal amount per year over the life of the machines as established by IBM. IBM has no liability for any claim based upon the combination. operation or use of any machines or programming supplied hereunder with equipment or data not supplied by IBM. or with any program other than or in addition to programming supplied by IBM. if such claim would have been avoided by use of another program whether capable of performing the same or different function or result. IBM has no liability for any claim based 'upon alteration of the machines or modification of any programming supplied hereunder, if such claim would have been avoided by the absence of such alteration or modification. The foregoingslate the entire obligation of IBM with respectto infringement of patents and copyrights. UMITATION OF REMEDIES • ' i . .<r IBM's entire liability and the Customer's exclusive remedy shall be as follows: In all situations involving performance or non•perlormance of machines. model upgrades. features or programming furnished under this Agreement, the Customer's remedy is (1) the adjustment or repair of the machine, model upgrade or feature, or replacement of its parts by IBM. or, at IBM's option. replacement of the machine. model upgrade or feature, or correction of programming errors, or (2) if, atter repeated efforts. IBM is unable to install the machine. model upgrade or feature or a replacement machine, model upgrade or feature in good working order. or to restore it to good working order, or to make programming operate, all as warranted. the Customer shall be entitled to recover actual damages to the limits set forth in this Section. For any other claim concerning performance or non•pedormance 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 damages to the limits set forth in this Section IBM's liability Ion damages to the Customer for any cause whatsoever. and regardless of the form of action. whether in contract or in tort including negligence. shall be limited to the greater 01E25.000 or the purchase price stated herein 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 limitation of liability will not apply to the payment of cost and damage awards referred to in the Section entitled "Patent and Copyright Indemnity:or to claims for personal injury caused solely by IBM's negligence. In no event will IBM be liable for any damages caused by the Customer's failure to perform the Customer's responsibilities. or for any lost profits or other consequential damages, even if IBM has been advised of the possibility of such damages. or for any claim against the Customer by any other party. except as provided in the Section entitled "Patent and Copyright Indemnity.", GENERAL This Agreement is not assignable without the prior written consent of IBM. Any affempt to assign any of the rights, duties or obligations of this Agreement without such consent is void. This Agreement can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and of IBM (an authorized IBM Manager). and variance from the terms and conditions of this Agreement in any order or other written notification from the Customer. will be of no effect. The term "this Agreement' as used herein includes any future written amendment made in accordance herewith. • If the Customer defaults as to any obligation to return machines or fails to pay any amounts due hereunder. IBM. in addition to any other remedies. may repossess the machines without notice and the Customer agrees to pay all costs and expenses of collection and/or repossession. including all attorney's fees mourned. up to the maximum permitted by applicable state law. ' If any provision or provisions of this Agreement shall be held to be invalid. illegal or unenforceable. the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. No action, regardless of form, arising out of this Agreement maybe brought by either party more than two years alter the cause of action has arisen, or, in the case of nonpayment. more than two years from the date of the last payment. IBM is not responsible for failure to fulfill its obligations under this Agreement due to causes beyond its control This Agreement will be governed by the laws of the State of New York. Page 3 of 3 z 140-2164-4(10/60) CUSTOMER SERVICE AGREEMENT I - TERMS AND CONDITIONS ACCEPTANCE Acceptance of this Agreement by IBM is contingent upon the absence of any mathematical error and upon consistency with IBM's then current prices. Unless the Customer Is advised to the contrary within 30 days from the Customer's signing of this Agreement, this Agreement is accepted by IBM as written and is In full force and effect on the date signed by IBM TERM This Agreement wilt remain in force until the Renewal Month and will then be automatically extended for annual period(s) until all machines have been withdrawn from service under this Agreement. For each machine there will be a Service Commencement Dale which will be the day following the expiration date of the Service and Parts Warranty provision of en IBM Purchase Agreement or the Service Commencement Date as shown on the lace of this Agreement, whichever is later. Service for each machine will be provided from the Service Commencement Date up to but not Including the first day of the Renewal Month as shown on the face of this Agreement, or the Customers presently established Renewal Month if the Customer elects to prorate. Thereafter, Service Availability for each machine will be automatically extended for annual perlod(s), unless the machine Is withdrawn from service. The Customer can terminate this Agreement or withdraw any machine from this Agreement at any time with one month's prior written notice to IBM. Except as otherwise provided herein, IBM may withdraw any machine from this Agreement at any time following twelve months from the Service Commencement Date by providing the Customer with one month's prior written notice. SERVICE AVAILABILITY IBM will provide service availability during IBM's normal business hours while the machine Is located within the United States, Puerto Rico, Guam or the Canal Zone. This service to keep the machines) In, or restore the machine(s) to, good working order Includes unscheduled, on-call remedial maintenance and preventive maintenance (Inspections). Inspections may be performed during the course of the on-call remedial maintenance and are based upon the specific needs of the Individual machine as determined by IBM. Maintenance will include lubrication, adjustments and replacement of maintenance parts deemed necessary by IBM. Maintenance parts will normally be either new or equivalent to new In performance when installed 'nen IBM machine. Ila new or equivalent to new pad is not available, and a used pert is supplied, the Customer will be so advised. Maintenance pads will be furnished on an exchange basis, and the replaced pans become the property of IBM. Service provided under this Agreement does not assure uninterrupted operation of the machinels). The Customer may purchase a Guaranteed Annual Inspection by so Indicating on the face of this Agreement. The charge will be the charge then generally Melted on the latter of the Commencement Dale or Renewal Month of this Agreement. If Guaranteed Annual Inspection has been purchased and IBM fails to perform such inspection, the Customer will be given a refund of the amount paid for such Guaranteed Annual Inspection. CHARGES • The Customer agrees to pay a Basic Annual Service Charge as indicated an the face of this Agreement. Service Charges are subject to Increase by IBM effective on the Renewal Month with prior written notice by IBM to the Customer. If the Customer requests service to be performed at a time outside IBM's normal business hours, there will be no additional charge for maintenance parts; however, the service, If available, will be furnished at IBM's applicable hourly rates and terms then in effect. When the distance from the Machine's Location to IBM's nearest Branch Office or Point of Service is greater than 15 miles, the Customer agrees to pay IBM's Then current Zone Charges or travel charges. Travel charges will consist of actual travel expense plus travel and waiting time at IBM's prevailing hourly rate. Travel charges will also apply II the machine location is not normally accessible by private automobile or scheduled public transportation or if the IBM Service Representative Is unable to travel to the machine location, perform regular service. and then travel to IBM's nearest Branch Of lice or Point of Service within IBM's normal business hours. Changes In machine specifications may result In an adjustment of the Service Charge. Such adjustment will become effective upon the installation of the specification change AUTOMATIC SERVICE AGREEMENT PROVISION. (Optional—see face of this Agreement) Each machine subsequently purchased, the type of which Is eligible for service under this Agreement, will be automatically added to this Agreement. The Service Commencement Date will be the day following the expireuon date of the Service and Pads Warranty provision of the applicable IBM Purchase Agreement. - The Service Charge and Zone Charge, It any, will be the lower of charges then In effect on the last Renewal Month for service under this Agreement or the charges In effect on the Service Commencement Owe for that machine. 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 upon net income. INVOICING The Basic Annual Service Charge and Zone Charge, If any, will be Invoiced in advance. Payment will be due as specified In the Invoice. All other charges due hereunder am payable as specified In the invoice. The Basic Annual Service Charge and Zone Charge, If any, fora partial month's service will be prorated on the basis of a 30 -day month. EXCLUSIONS Service under this Agreement does not Include: - (a) repair of damage or increase In service time caused by accident, misuse, disaster, or abuse, Or by accessories. alterations, attachments Or Other devices not furnished by IBM; (b) IreumifinishisNngng orthe repmachairingines; supplies or accessories (optional features), painting, or (c) making specification changes; • • - Id) maintenance service due to the use of supplies, Including repair of damage. replacement or parts (due to other than normal wear) or repetitive service calls; (el service of accessories, alterations, attachments, or other devices not furnished by IBM; • (1) repair of damage or Increase In service time caused by failure to continually provide a suitable installation environment with all facilities prescribed by IBM Including, but not limited to, adequate space, electrical power, air conditioning or humidity control; and Tme . ""•-•— ; (g) additional service time and: or replacement parts due to conditions set forth in the Sections "Access to Machines, "Engineering Changes — Installation and Control," and "Nan -IBM Parts." ACCESS TO MACHINES IBM shall have full and free access to the machine(s) to provide service thereon. If persons other than IBM representatives shall install model conversions or feature additions or shall perform service on a machine, and as a result further repair by IBM Is required, such further repairs will be made at IBM's applicable time and material rates and terms Then in effect II such additional repair Is required, IBM may withdraw the machine from this Agreement upon one month's prior written notice to the Customer following any repetition of the need for additional repair of such machine caused by non -IBM service activity, ENGINEERING CHANGES—INSTALLATION AND CONTROL Engineering changes, determined applicable by IBM, will be controlled and Installed by IBM an machines covered by this Agreement The Customer may, by providing notice object to written confirmation by IBM, elect to have only mandatory changes, as determined by IBM, installed on machines so designated. IBM reserves the right to charge, at its applicable time and material rates and terms then in effect, for additional service lime and replacement parts associated with the Installation by IBM of an engineering change when such additional service and parts are required due to the conversion from one IBM model to another or the Installation or removal of an IBM Mature whenever any of the foregoing was performed by other than IBM. NON -IBM PARTS Service provided by IBM under this Agreement does not include the replacement or adjustment of pads which were not furnished for the machine by IBM, or the time spent In determining the need for replacement or adjustment of such pads, except for common hardware items such as screws, nuts, bolts, clamps and commercially available parts such as lightbulbs. IBM will replace, at the Customer's request and at IBM's applicable time and material rates and terms then in effect, maintenance pads which were not furnished for the machine by IBM (except when such part Is In an alteration) when such pads am directly interchangeable with the IBM maintenance pads. When IBM determines that a machine under this Agreement contains a pad, not furnished for the machine by IBM, which is particularly significant to IBM's ability to provide maintenance service for such machine under this Agreement, IBM may withdraw the machine from this Agreement upon one month's prior written notice to the Customer, . unless the Customer replaces the part with a directly Interchangeable pan furnished for the machine by IBM. IBM will, at the Customers request, replace such part with a directly Interchangeable part at IBM's applicable time and material rales and terms then In effect. DISCLAIMER AND LIMITATION OF LIABILITY IBM's liability to the Customer for damages, from any cause whatsoever, and regardless of the form of action, whether In contract or In tort Including negligence, shall be limited to actual damages up to a maximum of 510,000 or twelve months Service 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 action. The foregoing limitation of liability will not apply to claims for personal Injury or damage to mal property or tangible personal property caused by IBM's negligence. IN NO EVENT WILL IBM BE LIABLE FOR LOST PROFITS OR OTHER CONSEQUENTIAL DAMAGES EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR FOR ANY CLAIM AGAINST THE CUSTOMER BY ANY OTHER PARTY, . . . IBM DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. SOME STATES 00 NOT ALLOW LIMITATIONS OF AN IMPLIED WARRANTY OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUEN- TIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. GENERAL Subject to the terms of the following paragraph, IBM may modify the terms and conditions of this Agreement effective on the Renewal Month by providing the Customer with prior written notice. Any such modification will apply unless the Customer exercises the option to terminate this Agreement or withdraw the machines) affected by such modification. Otherwise, this Agreement can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and of IBM (an authorized IBM Manager) and variance from the terms and conditions of this Agreement In any Customer order or other written modification will be of no effect. The Customer represents that the Customer is the owner of the machines) under this Agreement, or, If not the owner, has authority from the owner to include such machine(s) under this Agreement. This Agreement Is not assignable; Its rights, duties and obligations may not be assigned or transferred by the Customer without the prior written consent of IBM. Any attempt to assign or transfer any of the rights, duties or obligations of this Agreement without such consent Is void. IBM's service provided outside the scope of this Agreement will be lumished at IBM's applicable time and material rates and terms then In effect. IBM Is eel responsible for failure to render service due to causes beyond Its control (including a claim of patent Infringement, or action thereon, that may Inhibit IBM's ability to render service). Either party may withdraw any machine or all machines from this Agreement for failure of the other to comply with any of Its terms and conditions. No action, regardless of form, arising out of this Agreement may be brought by either pony more than two years after the cause of action has arisen, or, In the case of non-payment, more than two years from the date of the last payment. This Agreement will be governed by the laws of the State of New York. .. Attachment Z 140.2164-4(10/80) :Supply: Agref nt Supply Group RIBBONS & TAPES TOTAL ANNUAL r? ORITY DERED 1'Y7 MINIMUM SHIPMENT OUANTITY TO A SINGLE LOCATION trantity Description Reorder A BIII at Quantity Price Per Asou SR IPM NTT GUINTITY MONTHS OP s•n- •k c.y Ouantity Description Reorder A Bill at Quantity Price Per TITV-MONTHS OF 10..01 Quantity Description !ESP..; a yFx AL :p!i oc KKKKK OCC RRR Reorder Bill at Quantity Price Per SHIPMENT QUANTITY MONTHS OF li ia.ai nOvem Quantity Description Reorder B Bill at Quantity Price Per SHIPMENT OUANTITY MONTHS OF rT :t^u, i:. Tzar [ , ti -%+y•+ (Tor•• -fa k: .J 0re nV Supply Group BILL TO SHIP TO (II Oillerent Than Bill To) TOTAL ANNUAL fai QUANTITY IY) ORDERED MINIMUM SHIPMENT() QUANTITY TO A U SINGLE LOCATION Quantity Descnpuon ..-`...— T niiANTmTY M NTAS•OF-n-s Reorder A s.c4. . Bill at Quantity Price Per AY- Quantity Description Reorder A Bill at Quantity r.. ..r r.+... ,.•+.... u+:.5,H...a H, ..-SHIPMENT-OUANTITY MONTHS OP -A.. .• L�"stFk a Quantity Occultation 'Reorder a JU ;t , =1Tk.^_. Price Per se.T[ra[i< Bill at Quantity Price Per ENT-OUANTITY MONT •+ MISCELLANEOUS SUPPLY ITEMS OJantity Description Reorder BIII at Quantity Price Per SHIPMENT QUANTITY MONTHS OF .111 P•,a� a Ouantity Descnpuon Reorder A Bill at Quantity Price Per Cu -v SHIPMENT QUANTITY MONTH 0. XriA AV 11.1 RRRRR �'T'r`a�yF�•�Y It the Customer requests delivery of Supplies at quantities lower than the Minimum Shipment Quantity to a Single Location as indicated, IBM will bill and the Customer agrees to pay the higher price for su h lower quantity based on IBM'S applicable price list. . THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE PART OF THIS AGREEMENT. THE CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT. UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONC:TIONS FURTHER, THE CUSTOMER AGREES THAT IT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. International Business Machines Corporation BILL TO SHIP TO (II Oillerent Than Bill To) Custom"" Nam' Customer's Name Branch Office No. Mark For (Attention Of) Mark For (Attention OI) Branch 011)de Address Address Address City City City State Zip Code State Zip Code State Zip Code BY: BM REPRESENTATIVE SIGNATURE DATE: Z 140.9088-0 BY: CUSTOMERS SIGNATURE DATE -- CUSTOMER REPRESENTATIVE'S NAME TITLE UWM 50 1/80 DO NOT PAY UNTIL INVOICED IBM BRANCH OFFICE ATTEST: City Secretary APPROVED: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney• Assistant 'City Attorney APPROVED: Telephone Number Director of Data Processing 2 140-9086-0-1/80 SUPPLY AGREEMENT TERMS AND CONDITIONS SUBSTITUTIONS/ADDITIONS/DELETIONS If at any time Customer forecasts purchasing an increased quantity of Supplies, IBM, at Customer's request, will terminate this Agree- ment and negotiate a new Agreement specifying the increased quantity of Supplies and the applicable price. At any time IBM may delete or substitute any Supply item listed herein. If such deletion or substitution results in Customer using a reduced amount of Supply items, IBM will not increase the applicable price for such Supply items during the then current term of the Agreement. DEFAULT If Customer defaults hereunder or if a petition in bankruptcy is filed by or against Customer: 1. IBM, in addition to other remedies, may repossess any Supplies which were previously delivered hereunder and for which payment has not been received: 2. IBM may refuse to make further shipments of Supplies; and 3. Customer agrees to pay IBM's cost and expenses of collection and/or repossession, including the maximum attorney's fee permitted by law, said fee not to exceed 25% of the amount due hereunder. LIMITED WARRANTY/REMEDY IBM warrants the Supplies to the original purchaser to be free from defects in material and workmanship at the time of delivery. Purchaser's exclusive remedy for breach of the limited warranty is repair or replacement of the defective Supplies provided that Pur- chaser returns said detective Supplies to the nearest IBM Office Products Branch Office listed in the telephone directory in the United States, Puerto Rico or the Canal Zone within one year after delivery. IBM's liability to the Customer for any cause whatsoever, and regardless of the form of action, whether in contract or in tort including negligence, shall be limited to actual damages up to an amount equal to the greater of the purchase price of the items causing the damage or $1000. Under no circumstances will IBM be liable for any lost profits, incidential or consequential damages arising out of the use of or inability to use the supplies, even if IBM has been advised of the possibility of such damages. The foregoing limitation of remedy will not apply to the payment of cost and damage awards for personal injury or damage to real property or tangible personal property caused by IBM's negligence. NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PAR- TICULAR PURPOSE WILL APPLY TO THE SUPPLIES. SOME STATES DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. GENERAL Subject to the terms of the following paragraph, IBM may modify the terms and conditions of this Agreement effective on the renewal date by providing the Customer with prior written notice. - Any such modification will apply unless the Customer exercises the option to terminate this Agreement or withdraw the individual Supply items affected by such modification. Otherwise, this Agree- ment can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and IBM (an authorized IBM Manager) and variance from the terms and conditions of this Agreement in any customer order or other written modification will be of no effect. Either party may terminate this Agreement for failure of the other to comply with any of its terms and conditions. No action, regardless of form, arising out of this Agreement may be brought by either party more than two years after the cause of action has arisen, or, in the case of non payment, more than two years from the date of the last payment. This Agreement will be governed by the laws of the State of New York. ACCEPTANCE Customer agrees to purchase and International Business Machines Corporation (IBM) by its acceptance of this Agreement, agrees to sell, on the following terms and conditions, the Supplies shown on the first page of this Agreement. Acceptance of this Agreement is contingent upon (1) a satisfactory credit report on Customer, and (2) with regard to the dollar amounts stated herein. the absence of any mathematical error or deviation from IBM's standard prices. Unless the Customer is advised to the contrary within 15 days after the Customer's signing of this Agreement, this Agreement is accepted by IBM as written on the date signed by IBM. The date on which the Customer signs this Agreement, if subsequently accepted by IBM, will be the Effective Date. TITLE Title to Supplies under this Agreement will pass to Customer on the date of shipment from IBM. SECURITY INTEREST IBM reserves a Security Interest in the Supplies listed herein or to be ordered in the future under this Agreement in the amount of their purchase price. These interests will be satisfied by payment in full. A copy of this Agreement may be filed with appropriate State authori- ties at any time after signature by Customer as a financing statement in order to perfect IBM's Security Interest. RISK OF LOSS - Customer assumes risk of loss or damage upon delivery of the Supplies to the Customer. TERM Except as otherwise provided herein, this Agreement will remain in force one year from the Effective Date and will then be automatically renewed for annual period(s) unless terminated either by the Cus- tomer on one month's written notice at any time, or by IBM on one month's written notice prior to renewal. CHARGES The price of each Supply item will be the price as indicated on the face of this Agreement and is determined by the Minimum Shipment Quantity to a Single Location and the Bill at Quantity as indicated on the face of this Agreement. If at the end of the current Agreement period the Customer has not accepted delivery of at least the Bill at Quantity, then IBM will bill and the Customer agrees to pay the difference between IBM's prices for the total annual quantity received, based on IBM's applicable price list, and the price as invoiced. If the Customer requests delivery of Supplies at quantities lower than the Minimum Shipment Quantity to a Single Location, IBM will bill and the Customer agrees to pay the higher price for such lower quantity based on IBM's applicable price list. Transportation charges within the United States (including Puerto Rico and the Canal Zone) are at IBM's expense. Terms are net 30 days from date of invoice. PRICE PROTECTION Except as stated below, all prices charged will be IBM's applicable established prices in effect on the Effective Date of this Agreement. A price quoted on the face of this Agreement for Copy Paper, Copy Offset Masters and Copy Transparancies will be firm for 30 days, after which the prices charged for such items will be the prices in effect on the date shipped from IBM. If this Agreement is automatically renewed, IBM's applicable established prices and terms and conditions in effect on the renewal date shall apply for the renewal period. If IBM's applicable established price upon the shipment date of any Supply under this Agreement shall be lower than the price for such Supply stated in this agreement, the Customer shall have the benefit of such lower price. 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 upon net income. 0977 Purchase Agreement Qty. MACHINE DESCRIPTION Destination Charge' Per Machine Quantity X Destination Charge' Machine Price cnr and stag Quantity X Machine Priya Type/Model Feature / n? s a z I Iz i ysa U Trade -In ► ys��� ❑ Purchase Option Credits ll► I I Sub -Total (B -D -E) j► I 1 II II t I I NET AMOUNT (F+G+H-I) 11.T� / $ 'b 10p Service Agreement Ii: and III 0 Service Agreement Signed ❑ SA II 0 Customer Declines...a...... .. ❑ SA IQ ❑ Customer Accepts oninstallation ........ t Supply Agreement 0 Supply Agreement Signed ❑ Customer Declines . 11 I 1 1• I 1 I I I I i I 1 1 I i 1 1 I 1 I 1 I I 1 I I II I I I I I I I I I I I I I I I I Supply K ts: 012112 018118 ['Otheri Destination Charge ('Subject to Change) ► 1 Purchase Price (Excluding applicable taxes and Destination Charges' ► $ g."71);OP For The Purchase of Installed Leased or Rented Machines: Effective Date of Purchase Serial No Meter Count Equipment CHy. DESCRIPTION Include any deduction c:e to machine condition Serial Number Allowance (Excluding Destination Charge) Destination Charge' Please Type or Print all Information except signature cnr and stag Charge Zip toes i 1 Sr. 011 No. Mark n 011 t . I Destination Charge (*Subject to Change) — Invoiced Separately IP'1 By ICusldner !palate/ U Trade -In ► 1 ❑ Purchase Option Credits ll► I I Sub -Total (B -D -E) j► I State and Local Taxes (Including Taxes. II Applicable on Line A) ► t Destination Charge (Subject to Change) (A + C) ► t Advance Payment Received ► I NET AMOUNT (F+G+H-I) 11.T� / $ 'b 10p THE TERMS AND CONDITIONS ON THE REVERSE AND ATTACHED ARE A PART OF THIS AGREEMENT THE CUSTOMER ACKNOWLEDGES THAT THE CUSTOMER HAS READ THIS AGREEMENT. UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, THE CUSTOMER AGREES THAT IT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES, WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. International Business Machines Corporation �(jf( G42i ez.„:„..4.• add ess Guaranteed Annual inspection Desired Please Type or Print all Information except signature cnr and stag Charge Zip toes Brand. Officeedam• Sr. 011 No. Mark n 011 t i City and Stat. Zip Code By ICusldner !palate/ Cale By Dau aegawnlatlwe Signature) Date Signed Cy— (Pnnt Name/ 1 Signed By ...Want Tolle) no Equipment Ord (A) (B) MUST BE INITIALED TO BE VALID ID Currently on Automatic Service Plan ['Customer Agrees to Purchase.... ...• 0 Regular Plan 0 Automatic Service Plan 0 Customer Declines........ TERMS AND CONDITIONS ONATTACHMENT1 • r MACHINE Number of Machines Basic Annual Service Charge Per Unit Guaranteed Annual inspection Desired Zone Charge if Applicable Per Unit YeslNo Charge Typal Model Feature i lI 1 I I I I Service Agreement Ii: and III 0 Service Agreement Signed ❑ SA II 0 Customer Declines...a...... .. ❑ SA IQ ❑ Customer Accepts oninstallation ........ t Supply Agreement 0 Supply Agreement Signed ❑ Customer Declines 1a0-216a-a (10/801 unit s0 IBM BRANCH OFFICE CUSTOMER Page 1 of 3 (C) (D) (E) (F) (G) (H) (I) (J) PURCHASE AGREEMENT TERMS & CONDITIONSPage 2 o too -2164-1(10:80,, machines covered by this Agreement, such Order Certification. along with any associate( Supplement to Order Certification for IBM Machines signed by the Customer, is hereby incorporate( n and made a part of this Agreement. , Customer agrees to purchase and International Business Machines Corporation (IBM) by its acceptance of this Agreement, agrees to sell, on the following terms and conditions, the machines shown on the first page of this Agreement Under these terms and conditions, IBM will, (I) sell machines to the Customer. and (2) provide Warranty service, and (3) as available, furnish programming and programming services, all as described herein. The Customer agrees to accept the machines, Warranty service. programming and programming services under the terms and conditions of this Agreement The Customer further agrees with respect to the machines and programming to accept the responsibility for 111 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 used with the machines and programming Acceptance of this Agreement by IBM is contingent upon (1) a satisfactory credit report on the Customer and (21 with regard to the dollar amounts shown on the first page of this Agreement, the absence of any mathematical error or deviation from IBM's current prices. Unless the Customer is advised to the contrary within 30 days after the signing of this Agreement, this Agreement is accepted by IBM as written and is in full force and effect from the date signed by IBM. The term "machines" as used in this Agreement refers to machines and/or their model upgrades and features unless the context requires individual reference to model upgrades and features. PAYMENT The Customer agrees to pay the Purchase Price less any applicable Trade -In Credit as shown on the first page of this Agreement. Payment will be made as specified in the invoice. unless otherwise provided for in an installment payment agreement between IBM and the Customer. Except for the purchase of installed leased or rented machines' This Agreement must be signed by the Customer and accepted by IBM on or before the Date of Installation of the machines For the purchase of installed leased or rented machines: The prices stated herein are exclusive of any charges which are due or may become due from the Customer under any IBM lease or rental agreement relating to the machines. The Effective Date of Purchase shall be the later of the Effective Date of Purchase stated on the first page of this Agreement or the date on which this Agreement, signed by the Customer, is received by IBM. The machines will be terminated under the applicable IBM lease or rental agreement between IBM and the Customer as of the day immediately preceding the Effective Date of Purchase. In addition to the prices shown on the first page of 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 net income. Any personal properly taxes assessable on the machines after delivery to the carrier shall be borne by the Customer, except that any such taxes assessable on purchase of installed leased or rented machines on or after the Effective Date of Purchase shall be borne by the Customer. DESTINATION CHARGES All Destination Charges for each machine, model change or feature, and any rigging charges, including those charges related to any equipment being traded -in, will be paid by the Customer in accordance with IBM's then current shipping and billing prachce. TITLE Except for purchase at installed leased or rented machines, bile to each machine passes to the Customer on the date of shipment from IBM. or on the date this Agreement is signed by IBM. provided, that such Agreement is accepted by IBM, whichever is later. For purchase of installed leased or rented machines, title to each machine passes on the Effective Date of Purchase. SECURITY INTEREST IBM reserves a purchase money security interest in each of the machines listed herein in the amount of its Purchase Price. 'These interests will be satisfied by payment in full unless otherwise provided for in an IBM installment payment agreement. A copy of this Agreement maybe filed on IBM s behalf with appropriate state authorities at any lime after a signature by the Customer as a financing statement in order to perfect IBM's security interest. Such filing does not constitute acceptance of this Agreement by IBM. TRADE-IN ALLOWANCE CREDIT The Customer agrees to make available to IBM the trade-in equipment listed on the first page of this Agreement prior to or upon the Date of Installation of machines ordered hereunder. IBM may reduce the Trade -In Allowance Credit and increase the Net Amount shown on thefirst page of thisAgreement if any trade-in equipment. when received by IBM or its authorized agent, is not in substantially the same condrhon as when inspected. The Trade -In Allowance Credit may not be reduced, other than for equipment condition, unless written notice shall have been given to the Customer at least three months before the date of shipment of the machines ordered hereunder. The Customer certifies that the Customer is the true owner and that IBM will receive the trade-in equipment free from any encumbrances. Title to the trade-in equipment and risk of loss will remain in the Customer until physical delivery to IBM or its authorized agent. at which time title will be deemed to pass. The Trade -In Allowance Credit will be issuedrom tly after passage of title of the trade-in equipment to IBM and upon installation of the on -order machines. The credit will be applied only as part anent of the Purchase Price of the on -order machines or against sums due or to become due to TRADE-IN EQUIPMENT DESTINATION CHARGES All destination, packaging and rigging charges for trade-in equipment other than Electric Typewriters and Input Processing Equipment are the responsibility of the Customer. RISK OF LOSS OR DAMAGE The Customer assumes risk of loss or damage upon delivery of the machines to the Customer, or the Effective Date of Purchase for installed leased or rented machines. SHIPMENT (Except los the purchase W installed leased or rented machine') IBM agrees to schedule each machine for shipment in accordance with IBM's applicable shipment sequence and will confirm and amend, as necessary, the Customer's schedule: Prior to shipment. IBM will make reasonable accommedahon to a delay requested by the Customer. - ORDER CERTIFICATION If IBM requires the signing by the Customer of as Order Certification for IBM Machines for any of the PRICE PROTECTION PERIOD For Electric Typewriters and Input Processing Equipment not yet installed. IBM may not increase the prices from the date on which this Agreement is signed by the Customer and IBM to the originally scheduled shipping date (this period will at no lime exceed twelve months). For machines other than Electric Typewriters and Input Processing Equipment not yet installed, prices of the machines stated herein shall not be subject to any established price increase from the dale on which this Agreement is signed by the Customer and IBM unless written notice shall have been given to the Customer at least three months before the date of shipment. For purchase of installed leased or rented machines, unless protected by a valid quotation, prices are subject to change until the Effective Dale of Purchase within the limits set forth in the provisions of any applicable IBM lease agreement If IBM s established price for any machine upon the Date of Installation shall be lower than the price for such machine stated in this Agreement. the Customer shall have the benefit of such lnwrr price. INSTALLATION The Customer agrees to provide a suitable installation environment with all the facilities prescribed by IBM. Machines purchased under this Agreement shall be installed as specified by IBM. Except for purchase of installed leased or rented machines. the Date of Installation for a machine being installed (except for Customer Set•Up machines) will be the day (Monday through Friday) following the day that (1) the machine is installed as specified by IBM, or (2) the machine is delivered to the Customer, if the Customer fails to provide a suitable installation environment, or elects to delay installation. IBM will notify the Customer of the Date of Installation. CUSTOMER SET-UP MACHINES The Customer shall he responsible for set up of Customer Set -Up (CSU) machines. A CSU machine will be considered to be installed on the last day (Monday through Friday) of the CSU allowance period forsuch machine, which commences on the day (Monday through riday) following the date of receipt of the machine at the Customer's premises. A CSU feature or model conversion will be considered to be installed one month following the later of its estimated date of shipment or its actual date of shipment from IBM. CONFIGURATION CHANGES '" By agreement between IBM and the Customer, changes in the configuration of machines described herein may be made prior to the date of shipment. Such changes will be subject to prices and shipping schedules in effect al time of change. Additional features and model upgrades which are field installable may be ordered in writing by the Customer under this Agreement, at any time after its acceptance by IBM, for installation in the machines, subject la IBM's prices then generally in effect. PROGRAMMING The term "programming" as used in this Agreement shall mean such programming as IBM may make generally available, from time to time, without separate charge, for machines of the types ordered by the Customer under this Agreement IBM will furnish such programming as maybe requested by the Customer. The term "programming services" shall mean such services as IBM may generally make available without separate charge in connection with programming IBM will determine the programming services available and their duration. The terms "programming' and "programming services" do not include IBM programs and services that are available for a separate charge or which are offered under separate written agreements. LIMITED WARRANTIES Machines purchased under this Agreement maybe either newly manufactured by IBM from new and serviceable used parts which are equivalent to new in performance in these machines. or assembled by IBM from serviceable used parts. or machines which have been previously installed. I8M 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 published specifications. the following Warranty Period will apply to the machines: Except for the purchase of installed leased or rented machines. the Warranty Period for each machine will be 9D days commencing upon the Date of Installation of such machines. For the purchase of installed leased or rented machines, the Warranty Period for each machine will be 90 days commencing upon the date the originally ordered machine was first installed on rentor lease with the Customer. I. SERVICE AND PARTS WARRANTY IBM will provide Warranty service to keep in or restore to good waking order each machine for 90 days from the Warranty commencement dale at na additional charge to the Customer. except as set forth in the Section entitled "Exclusions " This Warranty service includes preventive maintenance based upon the specific needs of individual machines as determined by IBM and unscheduled, on-call remedial maintenance. Warranty service will also include lubrication, adjustments, and re- placement of parts deemed necessary by IBM. Parts will be furnished on an exchange basis. and the replaced parts become the property of 18M. Warranty service provided under this Agreement does not assure uninterrupted operation of the machines. Commencing on the Date of Installation of an additional feature or model upgrade increment, IBM will provide a 90 day Service and Parts Warranty for such feature or model upgrade increment. During the Warranty Period, engineering changes. determined applicable by IBM. will be controlled and installed by IBM on the machines. The Customer may, by providing notice subject to written confirmation by IBM, elect to have only mandatory changes, as determined by IBM, installed on the machines IBM shall have full and free access to the machines to provide service thereon. The Customer shall promptly inform IBM of any change in the machines location during the Warranty Period. Service outside the scope of the Warranty will be furnished at IBM's time and material rates then generally in effect. II. ADDITIONAL WARRANTY PROVISIONS IBM further warrants that programming designated by IBM for use with a machine and for which programming services are available will conform to IBM's official published specifications when shipped to theCustomer if properly used on such machine: Thereafter. IBM will provide programming services, subject to the prowsions stated in the Section entitled "Programming." • - - IBM does not warrant that the functions contained in the programming will operate in the combinations which may be selected for use by the Customer, or will meet the Customer's requirements. ALL PROGRAMMING FOR WHICH NO PROGRAMMING SERVICES ARE AVAILABLE IS DISTRIBUTED ON AN "AS IS" BASIS WITHOUT WARRANTY. IBM does nol warrant that the operation of the machine of programming will be uninterrupted or error free. or that all programming errors will be corrected. III. EXCLUSIONS The warranties provided by IBM under the Agreement do not include: (a) repair of damage or increase in service time caused by failure to continually provide a suitable installation environment with all facilities prescribed by IBM including. but not limited to. adequate space. electrical power, air conditioning or humidity control. (b) repair of damage or increase in service time caused by the use of the machines for other than ordinary use Ior which designed; (c) maintenance service due to the use of supplies, including repair oI damage, replacement of parts (due to other than normal wear) or repetitive service calls: (d) repair of damage or increase in service lime caused by: accident: disaster. which shall include, but not be limited to. the. hood. wafer. wind and lightning: transportation, neglect or misuse: alterations. which shall include. but not be limited to. any deviation Irom IBM's physical. mechanical or electrical machine design; attachments. which are defined as the mechanical. electrical or electronic interconnection to an IBM machine of non.IBM equipment and devices not supplied by IBM: or IBM machines. except those IBM machines which are owned by IBM. under the Service and Parts Warranty provision of an IBM purchase agreement or under an IBM service agreement; le) repair of damage or increase in service time caused by the conversion from one IBM model to another or the installation or removal of an IBM feature whenever any of the foregoing was performed by other Than IBM. This exclusion shall apply only during the 90 days subsequent to the dale o1 such machine modification; (I) additional service time and replacement parts associated with the installation by IBM of an engineering change when such additional service and parts are required due to the conversion from one IBM model to another or the installation or removal of an IBM feature whenever any of the foregoing was performed by other than IBM: (g) furnishing supplies (as designated by IBM) or accessories. painting or refinishing the machines or furnishing material therefor. inspecting altered machines, making specification changes or performing services connecledwdh relocation of machines. or adding or removing accessories, •- attachments or other devices; " - - - (h) electrical work external to the machines or maintenance of accessories. alterations, attach. mems or other devices not furnished by IBM: (i) such service which is impractical for IBM to render because of alterations in, or attachments to. the machines; and (1) providing Warranty service H the machine is located outside the United States. Puerto Rico. Guam or the Canal Zone. WITH RESPECT TO PURCHASE OF INSTALLED LEASED OR RENTED MACHINES WHICH HAVE BEEN INSTALLED FOR MORE THAN 90 DAYS, THE CUSTOMER AGREES TO PURCHASE THE MACHINES ON AN "AS IS" BASIS WITHOUT WARRANTY. IN NO EVENT WIILIBM BE LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL DAMAGES, EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, EXCEPT AS :TO CONSUMER GOODS IN WHICH CASE THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE APPLY FOR THE PERIOD OF THE EXPRESS WARRANTIES. PURCHASERS OF CONSUMER PRODUCTS SHOULD NOTETHAT SOME STATES DO NOT ALLOW FOR THE EXCLUSION OF CONSEQUENTIAL DAMAGES OR THE LIMITATION ON THE DURATION OF IMPLIED WARRANTIES SO THE ABOVE EXCLUSION AND LIMITATION MAY NOT BE APPLICABLE. THIS WARRANTY GIVES THE PURCHASER SPECIFIC LEGAL RIGHTS, AND THE PURCHASER MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. ALL INQUIRIES CONCERNING THEABOVE WARRANTY AND/OR IBM'S PERFORMANCE THEREUNDER SHOULD BE ADDRESSED TO IBM AT ITS BRANCH OFFICE ADDRESS SHOWN ON THE FACE OF THIS AGREEMENT. OTHER PRODUCTS AND SERVICES All maintenance and other service activities (including but not limited to activities excluded from the Warranties provided under this Agreement and those relating to pre•inslallation planning, inspections, relocation of machines. engineering changes and altered programming) which may be made available by IBM to the Customer al no additional charge oral IBM's Then applicable time and material charges, m connection with any machines or programming supplied under this Agreement shall be subject to the terms and conditions of This Agreement unless such activities are provided under another written agreement signed by IBM and the Customer. In addition to the machines. programming and services provided under this Agreement, IBM otters other products and services at separate charges under applicable written IBM agreements. IBM and the Customer agree that such products and services cannot be the subject of an oral agreement. The Customer may contract with IBM for any such products or services as available. but only under the terms and conditions of a written agreement signed by the Customer and IBM. TRAVEL EXPENSE There will be no charge for travel expense associated with Warranty service or programming service under this Agreement. except travel charges in those instances where the machine location is not normally accessible by private automobile or scheduled public transportation or if the IBM Service Representative is unable to (ravel to the machine location. perform regular service, and then travel to IBM's nearest Branch Office or Point alService within IBM's normal business hours. In such instances the Customer agreesto pay actual travel expense plus travel and waiting time at IBMs prevailing hourly rate. MAINTENANCE SERVICE AND PARTS Following expiration of the applicable Warranty Period. IBM d requested will provide. at IBM's rates and terms then in elect. maintenance service and maintenance parts for the machines. as long as such service and parts are generally available. ENGINEERING CHANGES IBM will, upon request. furnish to the Customer, 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 in connection with. the machines IBM makes no representation that engineering changes which may be announced in the future will be suitable for use on. or in connection with, these machines. PATENT AND COPYRIGHT INDEMNITY IBM will defend the Customer against a claim that machines or programming supplied hereunder infringes a U.S. Patentor Copyright. or that the machinesoperation pursuant to the current unaltered Operating Instructions provided by IBM for such machine and/or pursuant to a current release and modification level of any programming supplied by IBM infringes a U.S. patent. IBM will pay resulting costs, damages and attorneys lees finally awarded provided that: a) the Customer promptly notifies IBM in writing of the claim; and bI IBM has sole control of the defense and all related settlement negotiations. II such claim has occurred. or in IBM's opinion, is likely to occur, the Customer agrees to permit IBM, at its option and expense either to procure for the Customer the right to continue using the machines or programming or to replace or modify the same so that they become noninlringing. If neither of the foregoing alternatives is reasonably available, the Customer agrees to return the machines of programming on written request by IBM. IBM agrees to grant the Customer a credit for returned machines as depreciated. The depreciation shall he an equal amount per year over the life of the machines as established by IBM. IBM has no liability for any claim based upon the combination. operation or use of any machines or programming supplied hereunder with equipment or data not supplied by IBM. or with any program other than or in addition to programming supplied by IBM, i1 such claim would have been avoided by use of another program whether capable of performing the same or different function or result. IBM has no liability for any claim based •upon alteration of the machines or modification of any programming supplied hereunder, if such claim would have been avoided by the absence of such alteration or modification. Theloregoing stale the entire obligation of IBM with respect to infringement of patents and copyrights. LIMITATION OF REMEDIES IBM's entire liability and the Customer's exclusive remedy shah be as follows:: In all situations involving performance or nonperformance of machines, model upgrades, features or programming furnished under this Agreement, the Customer's remedy is (1) the adjustment or repair of the machine, model upgrade or feature. or replacement of its parts by IBM. or, at IBM's option, replacement of the machine. model upgrade or feature, or correction of programming errors. 0r (2) 0, after repeated efforts. IBM is unable to install the machine, model upgrade or feature ora replacement machine. model upgrade or leaturein good working order, or to restore rt to good working order, or to make programming operate. atlas warranted. the Customer shall beenlilled to recover actual damages to the limits setforlh 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 damages to the limits set forth m this Section. IBM's liability for damages to the Customer for any cause whatsoever, and regardless of the form of action, whether in contractor in tort including negligence. shall be limited to the greater of $25,000 or the purchase price stated herein 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 limitation of liability will Dot apply to the payment of cost and damage awards referred to in the Section entitled "Patent and Copyright Indemnity." or to claims ler personal injury caused solely by IOM's negligence. In no event will IBM be liable for any damages caused by the Customers failure 10 perform the Customers responsibilities. or for any lost profits or other consequential damages. even if IBM has been advised of the possibility of such damages, or for any claim against the Customer by any other party. except as provided in the Section entitled "Paten) and Copyright Indemnity. GENERAL This Agreement is not assignable 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. This Agreementcan only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and of IBM (an authorized IBM Manager). and variance from the terms and conditions of this Agreement m any order or other written notification from the Customer, will be of no effect. The term "this Agreement as used herein includes any future written amendment made in accordance herewith. If the Customer delauls as to any obligation to return machines or fails to pay any amounts due hereunder, IBM, in addition to any other remedies. may repossess the machines without notice and the Customer agrees to pay all costs and expenses of collection and/or repossession, including all attorneys fees incurred, up to the maximum permitted by applicable state law Many provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity. legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. No action, regardless of form, arising out of this Agreement may be brought by either party more than Iwo years after the cause of action has arisen, or. In the case of nonpayment. more than two years from the date of the last payment. IBM is not responsible for failure to fulfill its obligations under This Agreement due to causes beyond its control. This Agreement will be governed by the laws of the State of New York. Page 3 of 3 Z 040-2164-4100/801 CUSTOMER SERVICE AGREEMENT I - TERMS AND CONDITIONS . ACCEPTANCE Acceptance of this Agreement by IBM Is contingent upon the absence 01 any mathematical error and upon consistency with IBM's then current prices. Unless the Customer is advised to the contrary within 30 days from the Customer's signing of this Agreement, this Agreement Is accepted by IBM as written and Is In full force and effect on the date signed by IBM. TERM This Agreement will remain in force until the Renewal Month and 1n011 then be automatically extended ler annual period(s) until all machines have been withdrawn from service under this Agreement. For each machine there will be a Service Commencement Date which will be the day following the expiration date of the Service and Parts Warranty provision of an IBM Purchase Agreement or the Service Commencement Date as shown on the face of this Agreement, whichever is later. Service for each machine will be provided from the Service Commencement Date up to but not Including the first day of the Renewal Month as shown on the face of this Agreement, or the Customer's presently established Renewal Month If the Customer elects to prorate. Thereafter, Service Availability for each machine will be automatically extended for annual perlod(s), unless the machine is withdrawn from service. The Customer can terminate this Agreement or withdraw any machine from this Agreement at any time with one month's prior written notice to IBM. Except as otherwise provided herein, IBM may withdraw any machine from this Agreement al any time following twelve months from the Service Commencement Dale by providing the Customer with one month's prior written notice. SERVICE AVAILABILITY IBM will provide,service availability during IBM's normal business hours while the machine Is located within the United States, Puerto Rico, Guam or the Canal Zone. This service to keep the machines) in, or restore the machine(s) to, good working order includes unscheduled, on-call remedial maintenance and preventive maintenance (Inspections). Inspections may be performed during the course of the on-call remedial maintenance and are based upon the specific needs of the individual machine as determined by IBM. Maintenance will include lubrication, adjustments and replacement of maintenance parts deemed necessary by IBM. Maintenance parts will normally be either new or equivalent to new In performance when installed in an IBM machine. If a new or equivalent to new part is not available, and a used pad Is supplied, the Cuslamer will be so advised. Maintenance parts will be furnished on an exchange basis, and the replaced parts become the property of IBM. Service provided under this Agreement does not assure uninterrupted operation of the machine(s). The Customer may purchase a Guaranteed Annual Inspection by so Indicating on the lace of this Agreement The charge will be the charge then generally In effect on the latter of the Commencement Dale or Renewal Month of this Agreement. 11 Guaranteed Annual Inspection has been purchased and IBM fails to perform such inspection, the Customer will be given a refund of the amount paid for such Guaranteed Annual Inspection. CHARGES The Customer agrees to paya Basic Annual Service Charge as indicated on the face of this Agreement. Service Charges are subject to increase by IBM effective on the Renewal Month cairn prior written notice by IBM to the Customer. 11 the Customer requests service to be performed at a time outside IBM's normal business hours, there will be no additional charge for maintenance parts; however, the service, II available, will be furnished at IBM's applicable hourly rates and terms then In effect. When the distance from the Machine's Location to IBM's nearest Branch Office or Point of Service Is greater than 15 miles, the Customer agrees to pay IBM's then current Zone Charges or travel charges. Travel charges will consist of actual travel expense plus travel and waiting time at IBM's prevailing hourly rale. Travel charges will also apply it the machine location is not normally accessible by private automobile or scheduled public transportation or If the IBM Service Representative is unable to travel to the machine location, perform regular service, and then travel to IBM's nearest Branch Office or Point of Service within IBM's normal business hours. Changes In machine specdications may result In an adjustment of the Service Charge. Such adjustment will become effective upon the Installation of the specification change. AUTOMATIC SERVICE AGREEMENT PROVISION. (Optional—see lace of this Agreement) Each machine subsequently purchased, the type of which Is eligible for service under this Agreement,- will be automatically added to this Agreement. The Service Commencement Date will be the day following the expiration date of the Service and Parts Warranty provision of the applicable IBM Purchase Agreement The Service Charge and Zone Charge, If any, will be the lower of charges then In effect an the last Renewal Month for service under this Agreement or the charges In effect on the Service Commencement Date for that machine. 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 upon net Income. INVOICING The Basic Annual Service Charge and Zone Charge, If any, will be Invoiced In advance. Payment will be due as specified In the Invoice. All other charges due hereunder are payable as specified In the Invoice. The Basic Annual Service Charge and Zone Charge, if any, for a partial month's service will be prorated on the basis of a 30 -day month. EXCLUSIONS Service under this Agreement does not Include: (a) repair of damage or Increase In service time caused by accident, misuse, disaster, or abuse: or by accessories, alterations, attachments or other devices not furnished by IBM. (b) lumishrng or repairing supplies or accessories (optional features); painting; or refinishing the machines; (c) making specification changes; • (d) maintenance service due to the use of supplies, Including repair of damage, replacement of parts (due to other Than normal wear) or repetitive service calls; (e) service of accessories, alterations, attachments, or other devices not furnished by IBM; - ((1 repair of damage or Increase In service time caused by /allure to continually provide suitable Installation environment with all facilities prescribed by IBM Including, but not limited to, adequate space, electrical power, air conditioning or humidity control; and (g) additional service time and/or replacement parts due to conditions set forth in the Sections "Access to Machines, ""Engineering Changes — Installation and Control," and "Non -IBM Parts." ACCESS TO MACHINES IBM shall have full and free access to the machine(s) t0 provide service thereon. If persons other than IBM representatives shall install model conversions or feature additions or shall perform service an a machine, and as a result further repair by IBM is required, such further repairs will be made at IBM's applicable time and material rates and terms then In el feet. II such additional repair Is required, IBM may withdraw the machine from this Agreement upon one month's prior written notice to the Customer following any repetition of the need lar additional repair of such machine caused by non -IBM service activity. ENGINEERING CHANGES—INSTALLATION AND CONTROL Engineering changes, determined applicable by IBM, will be controlled and Installed by IBM on machines covered by this Agreement. The Customer may, by providing notice subject to written confirmation by IBM, 0n1 to have only mandatory changes, as determined by IBM, installed on machines so designated. IBM reserves the right to charge, at its applicable time and material rates and terms Then In effect, for additional service lime and replacement parts associated with the installation by IBM of an engineering change when such additional service and parts are required due to the conversion from one IBM model to another or the Installation or removal of an IBM feature whenever any of the foregoing was performed by other than IBM. NON•IBM PARTS Service provided by IBM under this Agreement does not Include the replacement or addetermining tustment ofhe need arts hich were not for replacement orad adjued for se tment ntio such achine by its, a the filar comm In j peas, except for common hardware Items such ll eplace, nuts. sbass,clamps and t andcommercially s applabaparts such asm Ierial r bs.fes IBM wills then i eat tre Cush/ na ce part andatwAr'sapplicabletime and material rates and terms then In effect, maintenance pads which were not lumished for the machine by IBM (except when such part Is In an alteration) when such parts are directly Interchangeable with the IBM maintenance parts. When IBM determines that a machine under this Agreement contains a part, not furnished for the machine by IBM, which is particularly significant to IBM's ability to provide maintenance service for such machine under this Agreement, IBM may withdraw the machine from this Agreement upon one month's prior written notice to the Customer, unless the Customer replaces the part with a directly Interchangeable part furnished for the machine by IBM. IBM will, at the Customers request, replace such part with a directly interchangeable part at IBM's applicable time and material rates and terns then In effect. DISCLAIMER AND LIMITATION OF LIABILITY IBM's liability to the Customer for damages, from any cause whatsoever, and regardless of the form of action, whether In contract or in tort Including negligence, shalt be limited to actual damages up to a maximum of 010,000 or Twelve months Service 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 action. The foregoing limitation of liability will not apply to claims 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 LOST PROFITS OR OTHER CONSEQUENTIAL DAMAGES EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES 011 FOR ANY CLAIM AGAINST THE CUSTOMER BY ANY OTHER PARTY. IBM DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. SOME STATES DO NOT ALLOW LIMITATIONS OF AN IMPLIED WARRANTY OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUEN- TIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO, HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. GENERAL Subject to the terms of the following paragraph, IBM may modify the terms and conditions of this Agreement effective on the Renewal Month by providing the Customer with prior written notice Any such modification win apply unless the Customer exercises the option to terminate this Agreement or withdraw the machine(s) al reeled by such modification. Otherwise, this Agreement can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and of IBM (an authorized IBM Manager) and variance from the terms and conditions of this Agreement In any Customer order or omit written modification will be of no effect. The Customer represents that the Customer Is the owner of the machine(s) under this Agreement, or, If not the owner, has authority from the owner to include such machine(s) under this Agreement. This Agreement is not assignable, Its rights, duties and obligations may not be assigned or transferred by the Customer without the prior writln consent of IBM. Any attempt to assign or Transfer any of the rights, duties or obligations of this Agreement without such consent Is void. IBM's service provided outside the scope o1 this Agreement will be lumished a1 IBM's applicable time and material rates and terms Then In effect. IBM is 1101 responsible for failure to render service due to causes beyond Its control (including a claim of patent infringement, or action thereon, that may inhibit IBM's ability to render service). Either party may withdraw any machine or all machines from this Agreement for (allure of the other to comply with any of Its terms and conditions. No action. regardless of form, arising out of This Agreement may be br0001 by either party more than two yeas at ter the cause of anion has arisen, or, in the case of non•paymenl, more than two years from the date of the last payment. This Agreement will be governed by the laws of the Stale of New York. Attachment Z 140-2184-4(10/80) • Su•pply Agre nt Supply Group RIBBONS & TAPES TOTAL ANNUAL() QUANTITY ORDERED MINIMUM SHIPMENT QUANTITY TO A SINGLE LOCATION Qaanmy Description Reorder 0 Bill at Quantity Price Per ., • SHIPMENT QUANT TY MONTHS OP - e a.:feLy • nMi•.s[w sl ei Quantity Description Reorder A BIII at OuanlIly Price Per sHIPM ENT QUANTITY MONTHS OF -. EDIATCY U•R• FEBRUARY 'W IL DEc Quantity Description Reorder A Bill at Quantity Price Per . SHIPMENT QUANTITY MONTHS OF RAG y2 T. N•t'C by JULY se.r!maa cite DACE. Quantity Description Reorder A Bill at Quantity Pnee Per SHIPMENT QUANTITY MONTHS OF 4. - ,• RC OCTOBER Supply Group MISCELLANEOUS SUPPLY ITEMS TOTAL ANNUAL QUANTITY ORDERED MINIMUM SHIPMENT QUANTITY TO A SINGLE LOCATION Quantity Description Reorder!! &II at Quantity Price Per e-eo[CMrur • y. .4,1"9144 , Sg����'ee���sag Quantity Descnption Reorder It Bill at Quantity Price Per PA TOtte 2 Tot [.ru.eai. i !T:'X'e14 o�me[e x.' SC'� :TS7>•Lracrz Quantity Description Reorder 1/ Bill at Quantity Price Per ',SHIPMENT QUANTITY MONTHS OF ICORDARy- Cu JANUARYa SEP. BE C• o,w Quantity Description Reorder A Bill at Quantity Price Per rA ,•� _s.•. z - +r ',SHIPMENT OUANTITY'MONTHS OF e•aT[Lr AR pirt AUCuST CCCC MORA Eva [cl..a[e II the Customer requests delivery of Supplies at quantities lower than the Minimum Shipment Quantity to a Single Location as indicated, IBM will bill and the Customer agrees to pay the higher price 101 Such lower quantity based on IBM's applicable price list. THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE PART OF THIS AGREEMENT. THE CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO RE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, THE CUSTOMER AGREES THAT IT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS. ORAL DR WRITTEN. AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. International Business Machines Corporation MISCELLANEOUS SUPPLY ITEMS SHIP TO (l1 Different Than Bill Tot Customers Name Quantity Description Reorder A Bill at Quantity Price Per JANUARYa SEP. BE C• o,w Quantity Description Reorder A Bill at Quantity Price Per rA ,•� _s.•. z - +r ',SHIPMENT OUANTITY'MONTHS OF e•aT[Lr AR pirt AUCuST CCCC MORA Eva [cl..a[e II the Customer requests delivery of Supplies at quantities lower than the Minimum Shipment Quantity to a Single Location as indicated, IBM will bill and the Customer agrees to pay the higher price 101 Such lower quantity based on IBM's applicable price list. THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE PART OF THIS AGREEMENT. THE CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO RE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, THE CUSTOMER AGREES THAT IT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS. ORAL DR WRITTEN. AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. International Business Machines Corporation BILL TO SHIP TO (l1 Different Than Bill Tot Customers Name Customer! Name Branch OM. No. Mark For (Attention Oft Mark For (Attention 01) Branch 01100 Address Address Address Cly City City State Zip Code State Zip Code Slate Zip Cale BY: IBM REPRESENTATIVE SIGNATURE DATE: 2 140.9080.0 U/M 50 1/80 ATTEST: BY: CUSTOMER'S SIGNATURE OATEN. CUSTOMER REPRESENTATIVE'S NAME TITLE DO NOT PAY UNTIL INVOICED IBM BRANCH OFFICE City Secretary APPROVED: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney APPROVED: Telephone Number Director of Data Processing Z 140.9086-0-1180 SUPPLY AGREEMENT TERMS AND CONDITIONS SUBSTITUTIONS/ADDITIONS/DELETIONS If at any time Customer forecasts purchasing an increased quantity of Supplies, IBM, at Customer's request, will terminate this Agree- ment and negotiate a new Agreement specifying the increased quantity of Supplies and the applicable price. At any time IBM may delete or substitute any Supply item listed herein. If such deletion or substitution results in Customer using a reduced amount of Supply items, IBM will not increase the applicable price for such Supply items during the then current term of the Agreement. DEFAULT If Customer defaults hereunder or if a petition in bankruptcy is filed by or against Customer: 1. IBM, in addition to other remedies. may repossess any Supplies which were previously delivered hereunder and for which payment has not been received; 2. IBM may refuse to make further shipments of Supplies; and 3. Customer agrees to pay IBM's cost and expenses of collection and/or repossession, including the maximum attorney's fee permitted by law, said fee not to exceed 25% of the amount due hereunder. - LIMITED WARRANTY/REMEDY IBM warrants the Supplies to the original purchaser to be free from defects in material and workmanship at the time of delivery. Purchaser's exclusive remedy for breach of the limited warranty is repair or replacement of the defective Supplies provided that Pur- chaser returns said defective Supplies to the nearest IBM Office Products Branch Office listed in the telephone directory in the United States, Puerto Rico or the Canal Zone within one year after delivery. IBM's liability to the Customer for any cause whatsoever, and regardless of the form of action, whether in contract or in tort including negligence, shall be limited to actual damages up to an amount equal to the greater of the purchase price of the items causing the damage or 51000. Under no circumstances will IBM be liable for any lost profits, incidential or consequential damages arising out of the use of or inability to use the supplies, even if IBM has been advised of the possibility of such damages. The foregoing limitation of remedy will not apply to the payment of cost and damage awards for personal injury or damage to real property or tangible personal property caused by IBM's negligence. NO OTHER WARRANTIES, EXPRESS OR IMPLIED. INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PAR- TICULAR PURPOSE WILL APPLY TO THE SUPPLIES. SOME STATES DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, OR THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH MAY VARY FROM STATE TO STATE. GENERAL Subject to the terms of the following paragraph, IBM may modify the terms and conditions of this Agreement effective on the renewal date by providing the Customer with prior written notice. Any such modification will apply unless the Customer exercises the option to terminate this Agreement or withdraw the individual Supply items affected by such modification. Otherwise, this Agree- ment can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of the Customer and IBM (an authorized IBM Manager) and variance from the terms and conditions of this Agreement in any customer order or other written modification will be of no effect. Either party may terminate this Agreement for failure of the other to comply with any of its terms and conditions. No action, regardless of form, arising out of this Agreement may be brought by either party more than two years after the cause of action has arisen, or, in the case of non payment, more than two years from , the date of the last payment. This Agreement will be governed by the laws of the State of New York. ACCEPTANCE Customer agrees to purchase and International Business Machines Corporation (IBM) by its acceptance of this Agreement, agrees to sell, on the following terms and conditions, the Supplies shown on the first page of this Agreement. Acceptance of this Agreement is contingent upon (1) a satisfactory credit report on Customer, and (2) with regard to the dollar amounts stated herein, the absence of any mathematical error or deviation from IBM's standard prices. Unless the Customer is advised to the contrary within 15 days after the Customer's signing of this Agreement, this Agreement is accepted by IBM as written on the date signed by IBM. The date on which the Customer signs this Agreement, if subsequently accepted by IBM. will be the Effective Date. TITLE Title to Supplies under this Agreement will pass to Customer on the date of shipment from IBM. SECURITY INTEREST IBM reserves a Security Interest in the Supplies listed herein or to be ordered in the future under this Agreement in the amount of their purchase price. These interests will be satisfied by payment in full. A copy of this Agreement may be filed with appropriate State authori- ties at any time after signature by Customer as a financing statement in order to perfect IBM's Security Interest. RISK OF LOSS Customer assumes risk of loss or damage upon delivery of the Supplies to the Customer. - • TERM Except as otherwise provided herein, this Agreement will remain in force one year from the Effective Date and will then be automatically renewed for annual period(s) unless terminated either by the Cus- tomer on one month's written notice at any time, or by IBM on one month's written notice prior to renewal. CHARGES The price of each Supply item will be the price as indicated on the face of this Agreement and is determined by the Minimum Shipment Quantity to a Single Location and the Bill at Quantity as indicated on the face of this Agreement. If at the end of the current Agreement period the Customer has not accepted delivery of at least the Bill at Quantity, then IBM will bill and the Customer agrees to pay the difference between IBM's prices for the total annual quantity received, based on IBM's applicable price list, and the price as invoiced. If the Customer requests delivery of Supplies at quantities lower than the Minimum Shipment Quantity to a Single Location, IBM will bill and the Customer agrees to pay the higher price for such lower quantity based on IBM's applicable price list. Transportation charges within the United States (including Puerto Rico'and the Canal Zone) are at IBM's expense. Terms are net 30 days from date of invoice. PRICE PROTECTION Except as stated below. all prices charged will be IBM's applicable established prices in effect on the Effective Date of this Agreement. A price quoted on the face of this Agreement for Copy Paper, Copy Offset Masters and Copy Transparencies will be firm for 30 days, after which the prices charged for such items will be the prices in effect on the date shipped from IBM. If this Agreement is automatically renewed, IBM's applicable established prices and terms and conditions in effect on the renewal date shall apply for the renewal period. If IBM's applicable established price upon the shipment date of any Supply under this Agreement shall be lower than the price for such Supply stated in this agreement, the Customer shall have the benefit of such lower price. 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 upon net income. ) 18147 (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) _) _) ) _) ) _) ) ) ,) ) ) ) ) Installment Payment Agreement (State and Local Government) Fiscal Year From H (to 1'kIy 3 1 Length of Installment Payment Plan_ _ ONTHS This Installment Payment Agreement supplements and amends the Purchase Agreement, dated 19 , between INTERNATIONAL BUSINESS MACHINES CORPORATION (IBM) and the Customer with respect to the IBM machines and/or their model upgrades and features (hereinafter called machines) on that Agreement. Cash Price (Purchase Price from Purchase Agreement) ► 070 3t`lplt9P Trade -In Credit (from Purchase Agreement) ► / ""i^' Purchase Option Credits (f om Purchase Agreement) P. Deferred Payment Price Cash Down Payment Time of Installation ❑ Effective Date of Purchase ► pIyloo Total Down Payment (B+C+D) ... / 903`f 04 J -4 ;qfi Unpaid Balance of Cash Price (A—E) '"/ State and Local Taxes (if applicable) Signed By — (Print Name) ► Amount Financed/Unpaid Balance (F+G) ► /7/ 340,6 1e(O Time Price Differential — FINANCE CHARGE on Amount Financed P. S 7) 2.;/7 at an ANNUAL INTEREST RATE of Tax on Time Price Differential (if applicable) Cus ; r (Buyers) a�re"f��r1l/uvav ` I ► Address Total Payments (H+I+J) ► i y 0J$'1/7 Deferred Payment Price (A+G+1) ►.) L/.1j LI(7 A) B) C) D) E) F) G) H) (I) (J) (K) (L) Ins ailment Payments to be made as follows: (Select One) Monthly Option — First Installment Payment (Monthly Installment Payment Amount+ J) $ 9'049. 9'7 — .5-9 Successive Monthly Installment Payments @ ybD. 30 0 Annual Option Fiscal Period Installment Payments 1 $ 2 $ 3 4 5 6 EACH NOTE FIRST INSTALLMENT PAYMENT INCLUDES TAX ON TIME PRICE DIFFERENTIAL. TIME PRICE DIFFERENTIAL BEGINS TO ACCRUE 30 DAYS PRIOR TO THE FIRST INSTALLMENT PAYMENT. THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE A PART OF THIS AGREEMENT NOTICE TO BUYER 1. Under the law, you are entitled to a completely filled In exact copy of this Agreement at the time you sign. Keep It to protect your legal rights. 2. Under the law. you have the right to pay oft In advance the full amount due and to obtain a pamal refund of the FINANCE CHARGE based on the "Actuarial Melhod". 3. IBM reserves a purchase money security Interest In each of the machines listed herein. These Interests wilt be salished by payment In lull. A copy of this Agreement may be filed on IBM's behalf with appropriate stale authorities at any time alter a signature by the Customer as a financing statement in order to perfect IBM's secunty Interest. 4. II one of the events of default described on the reverse side of this document should occur, and II IBM should then exercise Its nght to declare all unpaid installments to he Immediately due and payable, you will have the right to a lull refund of any part of the FINANCE CHARGE as yet unaccrued at the tune of such declaration by IBM. In such a rase, your refund will be computed under the "Actuarial Method". THE BUYER ACKNOWLEDGES RECEIPT OF A TRUE COPY OF THIS AGREEMENT(1HIS IS A RETAIL INSTALLMENT CONTRACT) THIS INSTALLMENT PAYMENT AGREEMENT AND THE PURCHASE AGREEMENT REFERRED TO HEREIN CONSTITUTE A SINGLE AGREEMENT AND THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE BUYER AND IBM, WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. THE BUYER ACKNOWLEDGES THAT THE BUYER HAS READ THIS AGREEMENT, UNDERSTANDS IT, AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS, AND BY BUYER'S SIGNATURE ON THIS AGREEMENT ACKNOWLEDGES THAT BUYER IS LEGALLY AUTHORIZED TO ENTER INTO THIS AGREEMENT. THE BUYER ACKNOWLEDGES RECEIPT OF A TRUE COPY HEREOF AND OF THE PURCHASE AGREEMENT REFERRED TO HEREIN. International Business Machines Corporation Cus ; r (Buyers) a�re"f��r1l/uvav ` I Address Please Tempe or Print all information except signature City and State Zip Code Branch Office Address Br. Off. No Mark,For (Atlemic OI) c City and State Zip Code 69' (Cus ars Slgnaturt Date ' By (IBM Representatives Signature) Date Signed By — (Print Name) Signed By — (P Int Title) 6,1170'6-3,7611 IBM BRANCH OFFICE COPY Page 1 of 2 ACCEPTANCE - • , „ I - . . Acceptance of this Agreement by lam is contingent upon the absence of an; mathematical error or ' deviation from IBM's current prices. Unless the Buyer is advised to the contrary within 30 days alter the signing of this Agreement, this Agreement is accepted by IBM as written and iain full force and effect on the date signed by IBM. ..-: • PAYMENT The Customer promises to pay: • (1) the Cash Down Payment ' (2) the Installment Payments until fully paid, all as shown on thefirstPage of this Agreement. The Cash Ea Payment will be due as follows: (1/ • for other than the purchase, of installed leased, or rented machines the Date yf Installation; or ." ' (2) teethe purchase olinstalled-leasedor rented ma -chines on the EffecliciDeta of Purchase. The First Installment Paymen( wig be due on the 1st day of the second month following the Installation Dale or Effective Date of Purchase.' If Customer leleets the Monthly Option, -successive installment Payments will be due on the 1st "day of each month following the due dale for the First Installment Payment. If Customer selects the , Annual. Option, successive Installment Payments are due on the first day of succeeding fiscal The Customer having been offered the choice of purchasing at -the Cash Price (less any credit for' Radar° equipment or purchase option accruals) plus applicable State and Local taxes or -at the Deferred Payment Price has elected to purchase al such Deferred Payment Price: • The Catornei.reay at -any -time gray rr advanCe the full amount due hereunder and the Time Price Differential will ho adjusted by IBM to reflect the shoder payment period. , An remittances are to be made to the IBM Branch Office Address shown -on the Instagment Payment Retard, which will be mailed laths Customer by IBM. ASSIGNMENTS - - - . . This Installment Payment Agreement is not assignable by the Customer, nor may the Customer sell, transfer, relocate, or dispose of the machines, or any of them, without prior written permission of IBM. In no event may the machines be relocated outside the United States. Any attempted assignment or transfer by the Customer of any of the rights, duties or obligations of this Installment Payment Agreement is void. . . • , , . • CUSTOMER'S COVENANTS The Customer agrees that. (alit will not create, assume. or voluntarily suffer to exist, without giving IBM at least 15 calendar days' prior written notice, any mortgage, pledge, encumbrance, security interest, hen, -or charge of any kind upon the 'machines, or any of them; (b) it will keep the machines in good repairand o perating condition; (c)it will pay promptly all taxes and other charges when levied or assessed won the machines, or their operation or use, or upon IBM In connection with this Installment Payment Agreement (exclusive of lasso based on net income); and (d)'d will promptly satisfy at liens against the machines. The Customer further agrees to procure and maintain fire insurance with extended coverage against loss, theft, damage to or destruction of the machines for the full insurable value thereof for the duration of this Installment Payment Agreement. the policy for such insurance being endorsed to - show loss Payable to IBM and assigns as respective interests may appear. Upon request a certificate ' e Customer pursuant to the Section h of such insurance will be furnished to IBM or assigns. Any proceeds,received directly by IBM under such insurance shall be credited to the payment required from t entitled -Destrectioo of Machines.", -, • - DESTRUCTION OF MACHINES 1.1 In the marl that any of the machines shall be rost, stolen, irreparably damaged or destroyed or otherwise rendered permanently unfit 'for use from any cause whatsoever (such occurrences being . hereinafter called Casualty Occurrences) prior to the payment in full of the Total Installment Payment Price, to the extent permitted by law the Customer shall promptly pay to IBM a sum equal to the aggregate Casualty Value at such machines. Any money so paid shall be appliedyon'the inItallment, - dale next following receipt by IBM of such payment. to reduce installments thereafter falling due so that such installments represent only the payments due for the remaining machines., The Gunny Value Bleach machine suffering a Casualty Occurrence shall be the serried the balances of unpaid Installment Payments and Time Price Differential unpaid at• the time of such Casually • Occurrence and attributed to such machine, such Time Price Deferential being adjusted by IBM to reflect the shorter payment period:," .ui - DEFAULTS .• Any one or more of the loliowIng are events of default. (a) the Customer shall fail to pay in full any- - • sum payable by the Customer when 'due hereunder following IBM's written notice of such failure. except,as mended for in the Section titled "Funding"; (b) the Customer shall fad to oblairfinsurance as required in this Installment Payment Agreement; ho) The Customer shall.lor more than 30 days' " after IBM shall have demanded in writing performance or observance thereol,lailed to comply with any other term of this Installment Payment Agreement; (d) any insolvency proceedings of any character, voluntary or involuntary, -shall be instituted by or against the Customer; or (e) the _Customer shall make an assignment for the benefit of creditors. . . - -`•-•• .". ' ' • REMEDIES If an event of default shall have occurred, IBM or assigns may, to the extent permitted by law: (a) recover the balance of amounts due hereunder; (b) enter any premises where the machines may be and take possession at, them, or render them unusable, and retain all prior payments as partial - compensation for their use and depreciation: (c) if Customer has failed to keep the machines in good repay and operating condition, restore the machines to good repair and operating condition at Customer's expense for actual time and materials expended by IBM al IBM's then current charges; (d) sell the machines, after at least 15 days' notice before the dale of any Intended public sale or the date afte(which any pridale Tale or other disposition of the machines is to be made, with or without the machines at the sale, at which sate IBM or assigns may purchase the machines; (e) incur attorney's fees and legal expenses in exercising any of its rights and remedies upon default which the Customer agrees,to.pay; and/9r (f) pursue any other remedy permitted by law or in equity. _1. _ Waiver of any default shall not be a waiver of any otheedefatilt; all of 'IBM's 'rights hereukder are -cumulative endnot ahernative FUN • -,saf . . ' Since the Customer intends to request the appropriation of funds periodically lo be paid for the • machines. Al fundir are not appropriated for the Customer for such Installment payments for any fuldre Fiscal Period:Me Customer will not be obligated to pay the remainder of the Total Installment Payment Price due beyond the end of the then current Fiscal Period. Such event will not constitutean !event of default The Customer agrees to notify IBM in writing of such nonappropliation al the earliest possible time. „ ir a in the event that funds are nof appropriated as provided atiove and the Customer Is nlie further payments due Under this Installment Payment Agreenient beyond the end of the then current Fiscal Period, IBM will, within a reasonable time after the end of such Period-, enterand take the machines from the Customer's premises and will retain all sums previously.paid by Customer to IBM , as partial compensation for machine use and depreciation; provided, however, that opon.Customer's request, Customer may, prior,to such repossessiometain the machines during a reasonable period agreed to by IBM ala monthly charge designated by IBM, beginning on the first day following the last Fiscal Period for which payment has been made hereunder.:! 2 „,'-‘ • ANYHOLDER OF THIS CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH .THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES_ OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY,THE DEBTOR 'HEREUNDER. 3 LOCATION OF MACHINES /-The machines shall remain Immortal property, not become part of the freehold, and be kept at the •r Customer's address shown on the face of this Agreement where IBM may inspect them at' any reasonable time. na ". Until payment in lull of the Deferred Payment Price due hereunder, the Customer may not sell, transfer, substantially modify, relocate or dispose -of the machines, or any of them, without prior written permission of IBM, noumay the machines be relocated outside the United Stales. , GENERAL_ , If the unit price" otrade-in Credit for any machine Is adjusted as provided for in the Purchase Agreement referred to herein, the payments herein agreed to be paid shall be adjusted and this Installment Payment Agreement shall be amended accordingly. ' " ' • • The terms and conditions of this Installment Payment Agreement shall prevail notwithstanding any 'variance with the terms and conditions of the Purchase Agreement referred to herein. Should this Installment Payment Agreement and/or the Purchase Agreement referred hi herein be held by the courts to be invalid or unenforceable, In whole or in part, the parties agree that the machines shall be deemed to have been Installed pursuant to the terms and conditions vi IBM's State and Local Government Lease.Plan at IBM's applicable Slate and Local Government Lease Plan Monthly Charges, commencing with -the Sale of Installation or the Effective Date of Purchase of the -,machines,Por the period prior to such holding. IBM shall credit to the applicable Lease Plan Monthly Charges the amounts paid by the Customer to IBM under this Installment Payment Agreement and amounts paid by the Customer for maintenance, properly taxes and insurance. Any excess credits %hall be refunded to the Customer, and any deficiency shall be due to IBM; but in do event shall any amount be due to IBM in excess of funds ePpropriated. • ' - - . • . . • r -• •" s • - - :1. ., • .• • ,.' - • Page 2 of 2 - Z 140-2II36-3 (7/8I - 01M025 Corpus Christi, TeK,as day of , 1981 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we,-therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it iS introduced, or at the present meeting of the City Council. Respectfully, Council Members Respectfully, MA THE CI Y OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the foll;wing vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky 16444