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3) An imm~ate delivery bonus of 5~•f' an invoice <br />total shall be paid to the VENDOR if the entire <br />purchase order is received within seven (7) days <br />of issuance of same provided the CITY requested <br />immediate delivery on the purchase order. <br />4) Hardware and software shall provide thirty (30) <br />days operation without major failure. A major <br />failure is described as any malfunction that <br />prevents "normal" operation of the system. A <br />system that has had more than one (1) major <br />failure should be replaced by the VENDOR at no <br />charge to the CITY. Each major failure resets <br />the twenty days of operation. <br />IV. PRICES OF GOODS AND SERVICES. <br />1) VENDOR agrees to sell items not listed in Exhibit <br />"A" to the CITY as follows: any complete computer <br />systems at 15~ over vendor cost, individual hard- <br />ware items, at 20~ over vendor cost, and software <br />at published dealer cost. (The vendor to make <br />profit from Distributor volume discounts). <br />2) In the event the item priced has no manufactured <br />suggested retail price (parts, build-up or add on <br />components, etc .) , the CITY and VENDOR may reach <br />a mutually agreeable price or either party may <br />seek a Third party determination of a fair price <br />via non-binding arbitration. <br />3) If there exists any substantial variation between <br />prices computed in this section and the attached <br />Exhibit "A", this section shall control. <br />4) VENDOR shall provide to the CITY, under the <br />provisions herein, products which ar•e then <br />currently available during the term of this <br />contract. <br />5) Any change (reduction or increase) in a <br />manufacturer's suggested retail price during the <br />term of this contract shall. be passed on to the <br />CITY. <br />6) VENDOR agrees to sell the CITY new computer <br />hardware or software. No used or refurbished <br />equipment will be permitted. <br />-3- <br />