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=:E::::::E';' == ISG HARDWARE TERMS AND CONDITIONS

INTRODUCTION
The Hardware Terms and Conditions list includes standard machine types currently marketed by NAD and NMD. The list should be used in
conjunction with the Hardware Price List. Only terms and conditions presently marketed are included.

ORGANIZATION
The list is presented in machine type sequence. A single line entry contains all information for a machine type unless terms and conditions vary
between models. Footnotes are kept to a minimum and, when practical, a single footnote reference is used for each data field. As example, all
footnotes related to Lease Base Term can be found in a single footnote. Footnotes are identified by a lower case alphabetic character, such as (b).
Some codes are used in data fields to indicate specific details. As example, a hyphen is used to indicate that a data field does not apply. Other
fixed codes will be explained in the legend below.

LEGEND FOR HARDWARE TERMS AND CONDITIONS LIST
Column Heading Explanation
MACH TYPE The machine type assigned to each hardware product. This field will also contain model codes when terms and conditions
vary within a machine type. When a field does not apply to a machine type, a hyphen(s) will be shown. This helps to
prevent omissions and improves the readability of each line of information. When multiple lines apply to a machine type all
unchanged data will be repeated to ensure complete information.
PCU A machine type that is a Processor Complex Unit (PCU) will have an asterisk in this field. These machines require a
three-month notice of discontinuance.
R/L PO The type of Plan offering will be reflected or an indication that the machine type is "purchase only". The codes found in this
column are:
A Plan Offering A
B Plan Offering B
C Plan Offering C - See Hardware Prices for applicable Monthly Use Charge Rates (MUCR) for lease/rental
machines and Additional Maintenance Charge Rates (AMCR) for purchased machines under IBM
Maintenance Agreement.
D Plan Offering D - See Hardware Prices for Additional Monthly Maintenance Charge Rates (AMMCR) which
apply if the customer elects Optional Periods of Maintenance Service following expiration of the Initial Period
of Maintenance Service for lease, rental or Pilot Test Plan machines. NOTE: All plan offering D machine
types, serviced on site, have an Initial Period of Maintenance Service of 3 months.
U Usage Plan - See Hardware Prices for Usage Charges applicable to lease/ rental machines and to purchased
. machines under IBM Maintenance Agreement II.
N Non-Usage Plan
PO Purchase Only
All machine types covered by the IBM Maintenance Agreement are considered as Machine Group A. Maintenance charge
may vary with optional period selected. See Maintenance Agreement for specifics. Optional periods do not apply to Plan C
machine types.
AUC The Additional Use Charge (AUC) percent for Plan Offering A machines will be shown in this column. The rate will be 10 or
30 percent.
AC The additional charge percent for rental features added to a Plan Offering A lease machine will be in this column. The rate
will be 5,10, or 15.
MTR An asterisk in this column will indicate that the machine type is metered in some way - details on the type of metering can
be found in the text of the machine write-up in the Sales Manual.
BASE The length of the base term available under lease plan will be shown in this column. The term will be expressed in months
TERM and may reflect two base terms such as: 12/24. If more than two base terms are available for a machine type, a referral to a
footnote will be indicated. All lease machines have an upper limit percent. The upper limit percent is 5 % per year except for
copiers. The upper limit percent for copiers is 0 % in the first year and 5 % in subsequent years.
TERM The termination percent and number of months applicable to a lease term will be shown. Referral to a footnote may be
%/MO necessary, if multiple base terms apply.
PUR OPT The current percent of rental/lease charges that can be applied to a purchase option transaction. Certain machines, when
installed under rental, only accrue for a specified number of months. Some machines accrue toward purchase option at a
fixed dollar rate per month. These exceptions will be contained in footnote C.
WARRANTY The warranty category applicable to each machine type will be shown. The category codes used are:
# 5 year warranty
A 1 year warranty
B 3 months warranty
An asterisk beside the B indicates that warranty service is provided during IBM's normal business hours only. (8:00
am to 5:30 pm)
CSU If a machine type is designated as Customer Set-Up (CSU), the number of days allowed or "yes" will be displayed.
Features for these machine types mayor may not be designated as Customer Set-Up when field installed. Refer to the
feature description in Sales Manual Volumes 2, 4 and 5 for' further details. If a feature is designated as CSU, the CSU
allowance provided in the Agreement for Purchase of IBM machines is one month following the later of the scheduled or
actual ship date.
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