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<br />NEC <br /> <br />Customer may, upon payment to NEC of an appropriate deposit, assign its rights to purchase under this Agreement to a third <br />party lease financing organization ("Lessor") on terms and with documentation which are acceptable to NEC. Any such lease <br />documentation shall include the agreement of either Customer or Lessor to make progress payments to NEC according to the <br />above payment schedule prior to the Lessor's purchase of the System. NEC will credit the deposit and the progress <br />payments against the System price paid by Lessor. <br /> <br />All payments shall be due upon performance as detailed above. All payments will be subject to a late payment service <br />charge of 1.5% per month on payments in arrears for more than ten (10) days from performance as detailed above, or the <br />maximum amount permitted by applicable law (whichever is less). <br /> <br />4. <br /> <br />CHANGES <br /> <br />Prior to Cutover of the System, Customer may make additions, deletions, and other changes to the System specified in this <br />Agreement, if such change(s) are agreed upon in a written change order by an authorized representative of Customer and an <br />authorized officer of NEC. Any such change to the System may necessitate revisions in completion dates, the System Price, <br />or unit prices stated in this Agreement, which revisions shall be specified in the change order. In case of deletions, NEC may <br />charge Customer a restocking fee, as applicable. <br /> <br />5. <br /> <br />SCHEDULING <br /> <br />The Cutover Date is the date the switching equipment is connected to the public telephone network, activated and providing <br />basic telephone service to place and receive telephone calls, substantially in accordance with manufacturer's published <br />specifications. Omissions or variances in switching equipment performance which do not materially impair the basic <br />telephone service of the switching equipment shall not affect the Cutover Date. The anticipated Cutover Date is <br />,19 98 <br /> <br />6. <br /> <br />ACCEPTANCE <br /> <br />The System shall be "accepted" for purposes of this Agreement, as of the thirtieth (30th) day after System Cutover, unless <br />Customer gives NEC written notice prior to the Acceptance Date detailing how the System does not conform to Section 5 <br />hereof. <br /> <br />7. <br /> <br />CUSTOMER'S OBLIGATIONS PRIOR TO INSTALLATION <br /> <br />(a) <br /> <br />Customer shall supply, at its sole cost and expense, an environment for the System meeting the Installation Specifications set <br />forth in Schedule B attached hereto and made part hereof, together with all supplemental equipment, cable access and <br />concealment, and electrical and telecommunications connections necessary for installation of the System. NEC will not install <br />the System until Customer's preparations are complete. Customer agrees to notify NEC within one (1) week of the scheduled <br />work commencement date if it is unable to prepare the Premises by the scheduled date of delivery. Further, Customer shall <br />notify NEC at least one (1) week prior to commencement of cabling as to the existence of any unusual or unsafe conditions <br />on or around the Premises including but not limited to structural peculiarities of the Premises or the presence of asbestos or <br />other hazardous materials. Existence of any such unusual conditions shall be ground for NEC to increase the System price, <br />or in the alternative, to terminate this Agreement and exercise any of the remedies under Section 14 hereof. In addition, if <br />NEC discovers any such unusual conditions after commencement of work without having received prior notification from <br />Customer, then Customer shall indemnify and hold harmless NEC, its employees, its agents, and subcontractors against any <br />costs necessitated by or damages directly or indirectly attributable to such unusual conditions. <br /> <br />Page 2 of 7 <br /> <br />I <br /> <br />ì <br />