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<br />C. inform IBM of changes in a Machine's location.
<br />
<br />Replacements
<br />When Service involves the exchange of a Machine or part, the item IBM replaces becomes its property and the re-
<br />placement becomes yours, You represent that all removed items are genuine and unaltered. The replacement may
<br />not be new, but will be in good working order and at least functionally equivalent to the item replaced. The replacement
<br />assumes the warranty or maintenance Service status of the replaced item. Before IBM exchanges a Machine or part,
<br />you agree to remove all features, parts, options, alterations, and attachments not under IBM's service. You also agree
<br />to ensure that the item is free of any legal obligations or restrictions that prevent its exchange,
<br />
<br />Some parts of IBM Machines are designated as Customer Replaceable Units (called, "CRUs"), e.g., keyboards, mem-
<br />ory, or hard disk drives, IBM provides CRUs to you for replacement by you. You must return all defective CRUs to IBM
<br />within 30 days of your receipt of the replacement CRU, You are responsible for downloading designated Machine
<br />Code and L1C updates from an IBM Internet Web site or from other electronic media, and following the instructions that
<br />IBM provides.
<br />
<br />Items Not Covered
<br />Repair and exchange Services do not cover:
<br />1. accessories, supply items, and certain parts, such as batteries, frames, and covers;
<br />2. Machines damaged by misuse, accident, modification, unsuitable physical or operating environment, or improper
<br />maintenance by you;
<br />3, Machines with removed or altered Machine or parts identification labels;
<br />4, failures caused by a product for which IBM is not responsible;
<br />5. service of Machine alterations; or
<br />6, Service of a Machine on which you are using capacity or capability, other than that authorized by IBM in writing,
<br />
<br />Warranty Service Upgrade
<br />For certain Machines, you may select a Service upgrade from the standard type of warranty Service for the Machine.
<br />IBM charges for the Service upgrade during the warranty period.
<br />
<br />You may not terminate the Service upgrade or transfer it to another Machine during the warranty period, When the
<br />warranty period ends, the Machine will convert to maintenance Service at the same type of Service you selected for
<br />warranty Service upgrade.
<br />
<br />5.4 Maintenance Coverage
<br />Whenever you order maintenance Service for Machines, IBM will inform you of the date on which maintenance Service
<br />will begin, IBM may inspect the Machine within one month following that date, If the Machine is not in an acceptable
<br />condition for service, you may have IBM restore it for a charge. Alternatively, you may withdraw your request for main-
<br />tenance Service, However, you will be charged for any maintenance Service which IBM has performed at your re-
<br />quest
<br />
<br />5.5 Automatic Service Renewal
<br />Renewable Services renew automatically for a same length contract period unless either of us provides written notifica-
<br />tion (at least one month prior to the end of the current contract period) to the other of its decision not to renew,
<br />
<br />5.6 Termination and Withdrawal of a Service
<br />Either of us may terminate a Service if the other does not meet its obligations concerning the Service.
<br />
<br />You may terminate a Service, on notice to IBM provided you have met all minimum requirements and paid any adjust-
<br />ment charges specified in the applicable Attachments and Transaction Documents, For a maintenance Service, you
<br />may terminate without adjustment charge provided any of the following circumstances occur:
<br />1, you permanently remove the eligible Product, for which the Service is provided, from productive use within your
<br />Enterprise;
<br />2. the eligible location, for which the Service is provided, is no longer controlled by you (for example, because of sale
<br />or closing of the facility); or
<br />3, the Machine has been under maintenance Service for at least six months and you give IBM one month's written
<br />notice prior to terminating the maintenance Service.
<br />
<br />You agree to pay IBM for 1) all Services IBM provides and any Products and Materials IBM delivers through Service
<br />termination, 2) all expenses IBM incurs through Service termination, and 3) any charges IBM incurs in terminating the
<br />Service.
<br />
<br />IBM may withdraw a Service or support for an eligible Product on three months' written notice to you, If IBM withdraws
<br />a Service for which you have prepaid and IBM has not yet fully provided it to you, IBM will give you a prorated refund.
<br />
<br />Any terms which by their nature extend beyond termination or withdrawal remain in effect until fulfilled and apply to re-
<br />spective successors and assignees,
<br />
<br />4575-07 (EU) (MK076) Page 10 of 10
<br />City of Sunny Isles Beach, Florida IBM Customer Agreement 07-2006.doc
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<br />SIB
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