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SERVICE AGREEMENT APPENDIX A. Definitions L Upgrade. An upgrade is an enhancement to an in- stalled system involving a major common equipment and/or software substitution. 2. Addition. An addition is the provision of addi- tional or supplementary equipment or software to an installed system, not classified as an upgrade. 3. ' Service Period. The service period is the term selec- ted by Customer, from those offered by ABI, during which a product or service is to be provided by ABI at specified charges. B. ClassiJtcation ABI will determine whether an approved service modification constitutes an upgrade or an addition. C. Upgrades 1. An upgrade may be requested at any time prior to expiration of the service period. 2. An upgrade results in termination of the previously installed service, and applicable termination charges (if any) must be paid by Customer for any equipment removed to effect the upgrade. 3. Customer must enter into a new agreement with ABI covering both the newly installed equipment and any common equipment remaining from the original system. 4. The terms and conditions of the new agreement (in- cluding available service periods and charges) will be those then currently offered by ABI, except that the new agreement must have a service period longer than one (1) month. Customer will not be required to pay installation charges on any equipment remaining from the original system. D. Additions 1. Equipment can be added to an existing system at Customer's option. ABI's then current charges will apply to the addition(s). 2. If at least thirty (30) days remain in the existing sys- tem's service period, Customer may elect to include the addition(s) on the existing agreement and to pay for the addition(s) over the remainder of the existing system's service period. ABI's then current charges for the addition(s) for that service period will be im- posed; if ABI does not then offer that service period for the addition(s), the charges for the addition(s) will be those for the longest available service period that is shorter than the existing system's service period. 3. If less than thirty (30) days remain in the existing system's service period, the addition(s) must be placed on the one (1) month service period at the then current rates and charges for that service period. 4. Alternatively, Customer may select, from those then made available by ABI, a service period equal to or shorter than the time remaining in the existing sys- tem's service period. If the payment period selected for the addition(s) is shorter than the existing sys- tem's service period, Customer must, upon expira- tion of that shorter service period, either have the addition(s) removed or select a new service period, in accordance with paragraphs 2, 3 and 4 herein. 5. Termination charges will apply in the event of dis- continuance of an addition prior to expiration of its selected service period. E. Changes in Service Period I. Subsequent to the establishment of service for an item of equipment or a system, Customer may re- quest that the existing service period be replaced by any other service period then offered by ABI for the item or system for which the request is made. ABI's then current charges for the service period selected will apply. 2. No credit will be given for payments made during the original service period, but one-time charges will not be reapplied. 3. Termination charges for the original service period will apply if the new service period is shorter than the remainder of the original service period. 4. In the case of a service period change for an item of equipment, the new service period must be shorter than the time remaining in the service period for the system as a whole. F Lump Sum Payment I. At any time, Customer may prepay the total out- standing monthly charges to become due under Cus. tomer's Agreement with ABI. Payment of less than the total outstanding is not permitted. 2. For prepayment of six (6) or more monthly pay- ments, the amount clue will be reduced by an amount equal to the total of the monthly charges remaining multiplied by the product of the number of months prepaid and a factor based on then current ABI dis- count procedures. 3. Customers who change the length of a prepaid ser- vice period will be credited any unused portion of the prepayment, subject to applicable termination charges, if any, as specified in paragraph E.3, above. 4. Customers who terminate service prior to the expira- tion of a prepaid service period will have termination charges deducted from the unused portion of the prepayment; any balance will be credited to Customer.