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3. Payment <br />Customer shall be billed upon shipment for any Products sold and upon <br />completion for services performed, except that CommSys, at its discretion, may <br />require monthly progress payments for activities or tasks requiring more than <br />thirty (30) days to complete. Payments shall be made as stipulated without any <br />deductions, including, but not limited to, deductions for any alleged damages or <br />claims arising under this Agreement or any other agreement. Payment terms are <br />net thirty (30) days from date of invoice. Payments not received within thirty (30) <br />days of date of invoice shall be subject to a late payment charge of one and one- <br />half percent (1 1/2% or 18% annually) or the maximum rate allowed by law, <br />whichever is lower, and/or CommSys may suspend performance of services <br />without liability to Customer until payment of any overdue amount is made in full, <br />including any interest charges. CommSys reserves the right to demand different <br />payment terms if CommSys determines that circumstances warrant such <br />measures. Customer shall be liable to CommSys for all expenses relating to the <br />collection of past due amounts: Customer agrees to pay all applicable sales <br />taxes that may arise as a result of the pertormance of any services by CommSys <br />4. Limited Warranty <br />For a period of sixty (60) days from provision of the Products or services, <br />CommSys warrants to Customer that Products and services provided will be <br />performed in a workmanlike manner in accordance with applicable commercial <br />standards. <br />Customer understands that warranty covers the performance of the product and <br />not the services associated assisting the Customer in use of the product. Those <br />services, as well as updates and changes to the software, are available to the <br />Customer via a support and maintenance agreement attached as Exhibit C. <br />The foregoing warranties shall apply provided that (a) any software or other <br />materials developed by CommSys have not been modified, unless authorized by <br />CommSys in writing; (b) there has been no change in the computer equipment <br />on which CommSys installed any software, unless authorized by CommSys in <br />writing; (c) the computer equipment has sufficient capacity, is in good operating <br />order, and is installed in a suitable operating environment; (d) the nonconformity <br />was not caused by Customer or its agents or other third party; (e) Customer <br />promptly notifies CommSys of the nonconformity after discovery, and (f) all fees <br />due to CommSys have been paid. CommSys makes no warranty or guaranty <br />with respect to any third-party equipment, hardware, or software beyond that <br />offered by such third party. <br />©Copyright 2006 CommSys Incorporated Page 2 <br />Proprietary & Confidential Information <br />