/ BLANKET ADD-ON
PURCHASE AGREEMENT
8225 A Cloverleaf Drive, Millersville, MD21108
Balto. 410-850-4848 / Fax 410-850-0001 / Wash. 301-621-1213
SHIP TO: / BILL TO:
EFFECTIVE DATES:
______through 12/31/05
Part # / Qty / Description / Unit Price / Total Amount
ALL REQUESTS FOR SERVICE OR MAC WORK UNDER THIS
AGREEMENT MUST BE SENT VIA E-MAIL TO

WITH “Per Blanket Add-On Purchase Agreement” IN SUBJECT LINE
OR
The following listed individuals are authorized to telephone / FAX in
a Service Request:
Thank you.
INSTALLATION AND PROGRAMMING WILL BE BILLED AT T&M
RATES: $95.00 1st HALF HOUR - $25.00 PER 15 MINUTE INCREMENT
TAXES
TOTAL

PAYMENT TERMS

Customer shall be assessed a one time Processing Fee of Five Percent (5%) for any late Payments per the terms of the above schedule.
Payments received by Chesapeake that are over Thirty (30) days late shall be charged an additional Finance Charge of One & one-half
percent (1.5%) per month, compounded daily, plus reasonable legal fees ($250.00 minimum) on accounts referred for collection.
VERIZON ISSUES: CTS will make every effort to ensure that your Verizon order will be completed on time and as
Requested, however, we cannot guarantee Verizon’s timely delivery and proper operation of services ordered.
* ANY ADDITIONAL/UNFORESEEN CABLING/LABOR WILL BE BILLED AT TIME AND MATERIAL RATES.
This agreement is subject to the terms and conditions of the Master Agreement, to which this document is an integral part.
/S/ Bob Jacobs, General Mgr. ______
Chesapeake Authorized Signature Customer Authorized Signature (Date)

TERMS AND CONDITIONS

  1. Customer shall buy and Chesapeake shall sell, deliver and install the equipment and software described in the above ANNEX A. Chesapeake shall grant Customer a limited software license for any software embodied in or associated with the equipment (hardware). Together, the equipment and software shall constitute the “System”.
  1. Customer is granted a non-exclusive, limited license to use the software only in conjunction with the purchase hardware. Software is defined as computer programs contained on a computer storage device, including but not limited to tape, floppy disk, and disk drive that operate, maintain, diagnose or document the hardware.

Customer hereby warrants and agrees that they shall treat any and all software under this Agreement as the Exclusive property and a proprietary TRADE SECRET of Chesapeake or their suppliers, if appropriate, and that they shall use the software only in conjunction with the purchased hardware. Customer further warrants and agrees that they shall not modify or duplicate any software (Except per documented back-up procedures) in whole or part. In the event that Customer assigns this software license to any successor in interest, Customer agrees that the successor in interest to the hardware shall execute documents assenting to these conditions of the software license to any successor in interest to the hardware shall execute documents assenting to these conditions of the software license.

  1. Title to the goods sold hereunder shall not pass to Purchaser until payment in full is made. Seller also retains a security interest in all goods sold to secure all of Purchaser’s obligations to Seller. The Security Interest is a first and prior purchase money security interest on all goods sold hereunder, and any security interest thereon securing other indebtedness now or hereafter owing by Purchaser to any other person is subordinate hereto. In the event of a default in payment, Purchaser grants to Seller the right to enter the premises and retrieve or disable the goods, and Seller shall have and may exercise any or all of the rights on default possessed by a secured party under the Maryland Uniform Commercial Code - Secured Transactions Title. Purchaser shall pay all costs and expenses incurred in enforcing Seller’s remedies hereunder, including all attorney’s fees incurred by Seller and all advances made by Seller to protect the security interest hereunder, including advances made for or on account of levies, insurance, repairs, taxes, and for maintenance or recovery of collateral. Seller may record this contract as a financing statement, but recording shall not be necessary to perfect this purchase money security interest.

Interest shall accrue on all monies owed by Purchaser to Seller at the rate of 1.5% per month from the delivery date. In the event of any default in payment when due purchaser shall pay Seller’s reasonable attorneys fees whether or not suit is filed, together with all cost of collection.

  1. Customer shall be responsible for any and all fees incurred by Chesapeake for obtaining any necessary building, electrical or other permits required to complete the system installation.
  1. Customer will be responsible for any charges related to cabling from the Customer site’s point of entry to the site (as defined by the local telephone company) to the System location.
  1. Risk of loss to the System, or any part thereof, shall pass to the Customer upon delivery to the Customer’s Installation site.
  1. Chesapeake shall conduct “End-User” Training for Customer’s employees at the time of Cutover. Training shall include classroom (provided at Installation Site) and hands-on training with the equipment, as appropriate. Chesapeake shall design and conduct training sessions that ensure that Customer’s employees can operate the System and use the features and benefits of the System in a good and competent manner. Chesapeake shall make program changes for 15 days from date of install, free of charge. Any program changes after the fifteen-day period will be billable.
  1. Chesapeake Telephone Systems, Inc. is not responsible for cost of any circuit orders from Verizon, or AT&T or any other common carriers, nor the delivery or operation of said circuits. All time spent by CTS technicians waiting for the delivery or activation of said circuits will be billed at CTS’ published labor rates.

9. If a certifiedcomplete network assessment providing all WAN or LAN performance levels and/or specificationsis not completedand furnished by the customer to CTS prior to installation,then Customer releases CTSand agrees to hold CTS harmless from any liability or claims oradjustments or setoffsfor the functionality of the WAN or LAN after installation of the Voice Over IP (VoIP) system.CTS is not responsible for performance problems caused byinadequacies in Customer's WAN or LAN hardware or software.

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ACCEPTED BY