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NEC Exhibit Hr'," NEC Business Communication Systems (West).lnc, MAINTENANCE AGREEMENT CUSTOMER NO. PP584500 SYSTEM TYPE NEAX2400 AGREEMENT between NEC BUSINESS COMMUNICATION SYSTEMS (WEST), INe. ("NEC") and CITY OF REDWOOD ("Customer") having offices at 1400 Broadwav. Redwood. California 94063 and premises at THE SAME LOCATION (the "Premises"). 1. SERVICE. NEC ahrrees to service the telephone system located on the Premises (the "System") according to the tenns and conditions set forth herein. 2. PRICE. Customer agrees to pay NEC $2.305.00 per month for maintenance as specified below: (X) Parts and Labor ( ) Labor Only Customer will be invoiced in advance on a quarterly basis. If new or additional equipment is added to the system, a new monthly charge consistent with NEC's then current rate will be computed to take into account the increased cost of servicing and maintaining the equipment added to the System. 3. INITIAL TERM. This agreement shall commence on Januarv 1. 1991 and be effective through June 30. 1221. . 4. RENEWAL. This agreement shall be renewed from year to year, unless cancelled by either party, in writing, at least sixty (60) days prior to the expiration of the initial or any renewal tenn. When so renewed, the payment and any further charges pursuant thereto will be at NEC's then current rate. 5. CANCELLATION. Notwithstanding the tenn of renewal, at any time, upon sixty (60) days' written notice, either party with or without cause, may cancel this Agreement. Upon the sixty-f1fSt (61) day after notice, eacti'party's obligation to the other shall be deemed discharged. 6. MAINTENANCE. Subject to the conditions hereof, NEC shall, without additional charge to the customer, furnish all necessary service to maintain the System covered hereby in good working condition and repair. NEC shall provide regular service, on the average, within twenty-four (24) hours of receipt of notice from Customer requesting service. Nonnal maintenance work shall be perfonned during NEe's nonnal working hours which are 8:00 AM to 5:00 PM, Monday through Friday, except holidays. Emergency service, however, will be rendered, on the average, within four (4) hours of Customer's request being received by NEC. For the purposes hereof, emergency service is deemed as that necessitated by a major failure of the system to operate as required. Maintenance service will be rendered as provided above unless prevented by causes beyond NEe's reasonable control. Although NEC will respond to any service request as required above, it is understood that this Agreement does not cover damages to or failure of the System caused by other than wear and tear resulting from normal usage, including, but not limited to misusage, negligence, accident, theft, or unexplained loss, abuse, connection to direct current, rITe, flood, wind or acts of God or the public enemy. With the exception of accounts converting to maintenance from warranty, problems existing prior to the inception of the initial tenn will not be covered by this Agreement. Repairs necessitated by any of the above excepted causes shall be made by NEC, and the reasonable cost of labor and materials shall be paid to NEC by Customer. Diagnosis and repair labor for battery back up systems is included in this agreement but customer will be charged for replacement batteries, less any prorated credit extended by the battery manufacturer reflecting any remaining warranty months. 1411 West 190th Street, Suite 800, Gardena, California 96248 (213) 523-3400 Tlr