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TERMS OF SERVICE

Terms of Service and Acceptable Usage Policy

These Terms of Service constitute the agreement (‘Agreement’) between Carolina Digital Phone, Inc. (‘we,’ ‘us’ or ‘Carolina Digital’) and the user (‘you,’ ‘user’ or ‘Customer’) of Carolina Digital Phone’s residential, small business, communications services and any related products or services (‘Service’). This Agreement governs both the Service and any devices, such as an IP phone, Multimedia Terminal Adapter, Analog Telephone Adapter, or any other IP connection device (‘Device’ or ‘Equipment’), used in conjunction with the Service and it applies to all lines or services on each account.

BY ACTIVATING OR USING THE SERVICE, YOU REPRESENT THAT YOU ARE OF LEGAL AGE TO ENTER INTO THIS AGREEMENT AND THAT YOU HAVE READ AND UNDERSTAND FULLY THE TERMS AND CONDITIONS OF THIS AGREEMENT.

Carolina Digital Phone, Inc. is a Registered Interconnected VoIP Provider as listed with the Federal Communications Commission FCC Registration Number (FRN) is 002-13989-38, and the current FCC status is posted on the FCC website link. Our FCC Filer ID is 829591. As a provider of telecom services under the license by the FCC International calling under Section 214 we are granted the authority to provide resale service in accordance with section 63.18(e)(2) of the Commission’s rules, 47 C.F.R. § 63.18(e)(2) international calling termination. As required by the FCC Public Safety Act of 1999, 9-1-1 calls are answered at the Public Safety Answering Point (PSAP) of the governmental agency that has jurisdiction over the caller’s location. Carolina Digital Phone, an Interconnected-VoIP (Voice Over Internet Protocol) provider of services is in compliance with the Federal Communications Commission CPNI (Customer Proprietary Network Information) rules 47 C.F.R. S: 64.2009(e) and files annually CPNI Compliance Certification. The annual CPNI Compliance Certification filed with the F.C.C. is available at this link or by request. Regulatory Update: If your business makes outbound telephone solicitations, you must comply with federal do-not-call laws and regulations (47 C.F.R. 64.1200, and 16 C.F.R. 310) and any applicable state laws. For Schools and Libraries under USAC (Universal Service Administrative Company) Guidelines, our SPIN (Service Provider Identification Number) is 143036931.

1. Emergency Services – 911 Dialing: 911 Dialing is different from traditional landline-based 911 service. Most of our customers have access to either basic 911 or Enhanced 911 (E911) service. With E911 service, when you dial 911, your telephone number and registered address are simultaneously sent to the local emergency center assigned to your location, and emergency operators have access to the information they need to send help and call you back if necessary. Customers in locations where the emergency center is not equipped to receive your telephone number and address have basic 911. With basic 911, the local emergency operator answering the call will not have your call back number or your exact location, so you must be prepared to give them this information. Until you give the operator your phone number, he/she may not be able to call you back or dispatch help if the call is not completed or is not forwarded, is dropped or disconnected, or if you are unable to speak. As additional local emergency centers become capable of receiving our customers’ information, we will automatically upgrade customers from basic 911 to E911 service. Carolina Digital Phone will not give you notice of the upgrade. Certain customers do not have access to either basic 911 or E911. If you don’t have access to basic 911 or E911 your 911 call will be sent to the national emergency call center. A trained agent at the emergency call center will ask for the name, telephone number, and location of the customer calling 911, and then contact the local emergency center for such customer in order to send help. Examples of situations where 911 calls will be sent to a national emergency call center include when there is a problem validating a customer’s address, the customer is identified with an international location, or the customer is located in an area that is not covered by the landline 911 network. Emergency personnel does not receive your phone number or physical location when your 911 call is routed to the national emergency call center. You authorize us to disclose your name and address to third parties involved with providing 911 Dialing to you, including, without limitation, call routers, call centers, and local emergency centers.

1.1 Registration of Physical Location Required: For each device that you use for the Service, you must register with Carolina Digital Phone the physical location where you will be using the Service with that device. When you move the Device to another location, you must register your new location. If you do not register your new location, any call you make using the 911 Dialing feature may be sent to an emergency center near your old address. You will register your initial location of use when you subscribe to the Service. Thereafter, you may register a new location by modifying the 911 address located on your Carolina Digital Phone web account dashboard account profile page and then assigned that address to a device on the Account devices page. For purposes of the 911 Dialing feature, you may only register one location at a time for each phone line you use with the Service.

1.2 Testing Your Emergency Services – 9-1-1 Dialing: From any Carolina Digital Phone device, extension, or SIP trunk you can dial 9-3-3 and verify that the location is listed correctly in our E-911 services database. We encourage you to test this by calling 9-3-3. If you get the message that your number is not provisioned for 911 service, you should immediately call our customer service center immediately at (336) 544-4000 or 611 from your Carolina Digital Phone device.

1.3 Service Outages: (a) Service Outages Due to Power Failure or Disruption. 911 Dialing does not function in the event of a power failure or disruption. If there is an interruption in the power supply, the Service, including 911 Dialing, will not function until power is restored. Following a power failure or disruption, you may need to reset or reconfigure the Device prior to utilizing the Service, including 911 Dialing. (b) Service Outages Due to Internet Outage or Suspension or Termination of Broadband Service or ISP Service. Service outages or suspensions or terminations of service by your broadband provider or ISP will prevent a(c) Service Outage Due to the Termination of your Carolina Digital Phone Account.ll Service, including 911 Dialing, from functioning. Service outages due to termination of your account will prevent all services, including 911 Dialing, from functioning. (d) Service Outages Due to ISP or Broadband Provider Blocking of Ports or Other Acts. Your ISP or broadband provider or other third parties may intentionally or inadvertently block the ports over which the Service is provided or otherwise impede the usage of the Service. In that event, provided that you alert us to this situation, we will attempt to work with you to resolve the issue. During the period that the ports are being blocked or your Service is impeded, and unless and until the blocking or impediment is removed or the blocking or impediment is otherwise resolved, your Service, including the 911 Dialing feature, may not function. You acknowledge that Carolina Digital is not responsible for the blocking of ports by your ISP or broadband provider or any other impediment to your usage of the Service, and any loss of service, including 911 Dialing, which may result. In the event you lose service as a result of blocking of ports or any other impediment to your usage of the Service, you will continue to be responsible for payment of the Service charges unless and until you terminate the Service in accordance with this Agreement. (e) Other Service Outages. If there is a Service outage for any reason, such outage will prevent all services, including 911 Dialing, from functioning. Such outages may occur for a variety of reasons, including, but not limited to, those reasons described elsewhere in this Agreement.

1.4 Re-Activation Required if You Change Your Number or Add or Port New Numbers: 911 Dialing does not function if you change your phone number or if you add or port new phone numbers to your account, unless and until you successfully register your location of use for each changed, newly added or newly ported phone number.

1.5 Network Congestion; Reduced Speed for Routing or Answering 911 Dialing Calls: There may be a greater possibility of network congestion and/or reduced speed in the routing of a 911 Dialing call made utilizing the Service as compared to traditional 911 dialing over traditional public telephone networks.

1.6 Disclaimer of Liability and Indemnification: We do not have any control over whether, or the manner in which, calls using our 911 Dialing service are answered or addressed by any local emergency response center. We disclaim all responsibility for the conduct of local emergency response centers and the national emergency calling center. We rely on third parties to assist us in routing 911 Dialing calls to local emergency response centers and to a national emergency calling center. We disclaim any and all liability or responsibility in the event such third-party data used to route calls is incorrect or yields an erroneous result. Neither Carolina Digital Phone nor its officers or employees may be held liable for any claim, damage, or loss, and you hereby waive any and all such claims or causes of action, arising from or relating to our 911 Dialing service unless such claims or causes of action arising from our gross negligence, recklessness or willful misconduct. You shall defend, indemnify, and hold harmless Carolina Digital Phone, its officers, directors, employees, affiliates, and agents, and any other service provider who furnishes services to you in connection with the Service, from any and all claims, losses, damages, fines, penalties, costs and expenses (including, without limitation, attorneys fees) by, or on behalf of, you or any third party relating to the absence, failure or outage of the Service, including 911 Dialing, incorrectly routed 911 Dialing calls, and/or the inability of any user of the Service to be able to use 911 Dialing or access emergency service personnel.

1.7 Alternate 911 Arrangements: If you are not comfortable with the limitations of the 911 Dialing service, you should consider having an alternate means of accessing traditional 911 or E911 services or terminating the Service.

2. SERVICE

2.1 (a) Monthly Term: Unless otherwise stated by a Term Service Agreement, Service is offered on a monthly basis for a term that begins on the first day of the month and ends on the last day of the month. On the date that Carolina Digital Phone activates your Service, you will be charged a pro-rated fee from your activation date until the first day of the following month, when you will be charged for the next month’s term. Subsequent terms of this Agreement automatically renew on a monthly basis unless you give us written notice of non-renewal at least ten (10) days before the end of the monthly term in which the notice is given. Notwithstanding the foregoing and consistent with the remainder of the terms contained herein, all business accounts including, but not limited to hosted PBX, SIP Trunk Services require that you give, written notice via US Mail, postage prepaid, at least thirty (30) days before of intent to terminate services. You are purchasing the Service for full monthly terms, meaning that if you attempt to terminate Service prior to the end of a monthly term, you will be responsible for the full month’s charges to the end of the then-current term, including, without limitation, unbilled charges, plus any termination fees, if applicable, all of which will immediately become due and payable. You will also be responsible for the next full month’s charges in the event that you do not provide the requisite notice of termination prior to the expiration of the then-current term. Expiration of the term or termination of Service will not excuse you from paying all accrued and unpaid charges due under this Agreement.

2.1 (b) Other Term Commitments: Certain services of Carolina Digital Phone are subject to term agreements different than the terms specified in Section 2.1(a). In the event of any inconsistency, the terms and conditions and/or Master Service Agreement of the individual product shall supersede the terms contained herein. Furthermore, If you accept an equipment upgrade or other promotion, such as a free month of service, a rebate, or other incentives, there may be a term commitment associated with the benefit you accepted. Your term begins the date you activate the new equipment or accept the promotion and ends on the last day of the commitment period. The commitment period will be disclosed as part of the promotion. If you terminate service prior to the end of the commitment period, you agree to pay Carolina Digital a recovery fee for the promotion and/or promotion you accepted. Recovery fees are cumulative and in addition to any other charges or fees, you may owe Carolina Digital Phone and any fees or charges Carolina Digital Phone requires upon the termination of service, such as those described in §3.4. Each recovery fee is an amount equal to the difference between the price you paid and the regular price of the good or service at the time you accepted the equipment or promotion.

2.2 Residential Use of Service and Device: If you subscribe to Carolina Digital Phone Residential services, the Service and the Device are provided to you solely for residential use. You shall not resell or transfer the Service or the Device to another party without our prior written consent. You are prohibited from using the Service or the Device for auto-dialing, continuous or extensive call forwarding, telemarketing (including, without limitation, charitable or political solicitation or polling), fax, or voicemail broadcasting, or fax or voicemail blasting. We reserve the right to immediately terminate or modify your Service if we determine, in our sole and absolute discretion, that your use of the Service or the Device is, or at any time was, inconsistent with normal residential usage patterns. In addition, you will be required to pay our higher rates for commercial service for all periods in which your use of the Service or the Device was inconsistent with normal residential use.

2.3 Small Business, Schools, and Libraries Use of Service and Device: If you subscribe to Carolina Digital Phone Hosted PBX, SIP Trunking Services, or other Carolina Digital Phone Business services the Service and Device are provided to you as a user. You shall not resell or transfer the Service or the Device to another party without our prior written consent. You are prohibited from using the Service or the Device for auto-dialing, continuous or extensive call forwarding, telemarketing (including, without limitation, charitable or political solicitation or polling), fax or voicemail broadcasting, or fax or voicemail blasting, including any traffic that would violate the Telephone Consumer Protection Act (“TCPA”). We reserve the right to immediately terminate or modify your Service if we determine, in our sole and absolute discretion, that you have at any time using the Service or the Device for any of the aforementioned or similar activities. Carolina Digital Phone Services are intended to be used for conversational call traffic as further defined in Section 2.7.

2.4 Bundled Services: Carolina Digital Phone services include a software license fee and then additional calling packages, outbound, inbound, or a combination of both. Carolina Digital Phone Services are not sold dependent upon access to the legacy PSTN and may be ordered in any combination thereof.

2.5 Prohibited Uses and Call Traffic Requirements:

a) Unlawful. You shall use the Service and the Device only for lawful purposes. We reserve the right to immediately terminate your Service without notice, if, in our sole and absolute discretion, we determine that you have used the Service or the Device for an unlawful purpose. In the event of such termination, you will be responsible for the full month’s charges to the end of the current term, including, without limitation, unbilled charges, plus a termination fee, if applicable, all of which will become immediately due and payable upon termination of your Service. If we believe that you have used the Service or the Device for an unlawful purpose, we may forward the relevant communication and other information, including your identity, to the appropriate authorities for investigation and prosecution. You hereby consent to our forwarding of any such communications and information to these authorities. In addition, Carolina Digital Phone will provide information in response to law enforcement requests, lawful governmental requests, subpoenas, and court orders, to protect its rights and property and in the case where failure to disclose the information may lead to imminent harm to the customer or others.

(b) Inappropriate Conduct. You shall not use the Service or the Device in any way that is threatening, abusive, harassing, defamatory, libelous, deceptive, fraudulent, invasive of another’s privacy or any similar behavior. We reserve the right to immediately terminate your Service without notice, if, in our sole and absolute discretion, we determine that you have used the Service or the Device in any of the aforementioned ways. In the event of such termination, you will be responsible for the full month’s charges to the end of the current term, including, without limitation, unbilled charges, plus a termination fee, if applicable, all of which will become immediately due and payable upon termination of your Service. If we believe that you have used the Service or the Device in any of the aforementioned ways, we may forward the relevant communication and other information, including your identity, to the appropriate authorities for investigation and prosecution. You hereby consent to our forwarding of any such communications and information to these authorities. In addition, Carolina Digital Phone will provide information in response to law enforcement requests, subpoenas, and court orders, to protect its rights and property and in the case where failure to disclose the information may lead to imminent harm to the customer or others. Furthermore, Carolina Digital Phone reserves all of its rights at law and equity to proceed against anyone who uses the Services illegally or improperly.

2.6 Use of Service and Device by Customers Outside the United States: Although we encourage you to use the Service to place calls to foreign countries from within the United States, we do not presently offer or support the Service in any countries other than the United States. If you use the Service or the Device outside of the United States, you will be solely responsible for any violations of local laws and regulations resulting from such use. We reserve the right to terminate your Service immediately if we determine, in our sole and absolute discretion, that you have used the Service or the Device outside of the United States.

2.7 Traffic Requirements: Carolina Digital Phone Services are intended to be used for conversational call traffic, we do not allow robocalling under the Standard Service Plan. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message, as if from a robot. Robocalls are often associated with political and telemarketing phone campaigns, but can also be used for public service or emergency announcements. Some robocalls use personalized audio messages to simulate an actual personal phone call. Our service is intended to be used for conversational call traffic which means:

(a) Customer’s Answer Seizure Ratio (ASR) in any 24 hour period must be above 60.0%; (b) The Average Length of Call (ALOC) must be above 60.0 seconds in duration; (c) 90% of total calls must be above 6 seconds in duration; and (d) For Toll-Free origination Service, 90% of all incoming calls must be accepted by Customer’s switch.

In the event any of the requirements in this Section are not met, Carolina Digital Phone may, in addition to any other remedies available hereunder charge the customer (retroactively and in the future) a surcharge of $0.01 per call attempt for conversational termination Services and $0.05 per call for Toll-Free origination services, which shall be in addition to all other fees and charges billed to Customer for its consumption of the Service. If you are a call center with a large volume of calls that do not meet these requirements or make robocalls, please make an inquiry about a different service plan for your origination and termination of local and toll-free calls.

2.8 Copyright; Trademark; Unauthorized Usage of Device; Firmware or Software:

(a) Copyright; Trademark. The Service and Device and any firmware or software used to provide the Service or provided to you in conjunction with providing the Service, or embedded in the Device, and all Services, information, documents, and materials on our websites are protected by trademark, copyright or other intellectual property laws and international treaty provisions. All of our websites, corporate names, service marks, trademarks, trade names, logos, and domain names (collectively ‘marks’) are and will at all times remain our exclusive property. Nothing in this Agreement grants you the right or license to use any of our marks.

(b) Unauthorized Usage of Device; Firmware or Software. You have not been granted any license to use the firmware or software used to provide the Service or provided to you in conjunction with providing the Service, or embedded in the Device, other than a nontransferable, revocable license to use such firmware or software in object code form (without making any modification thereto) strictly in accordance with the terms and conditions of this Agreement. You expressly agree that the Device is exclusively for use in connection with the Service and that we will not provide any passwords, codes or other information or assistance that would enable you to use the Device for any other purpose. We reserve the right to prohibit the use of any interface device that we have not provided to you. You hereby represent and warrant that you possess all required rights, including software and/or firmware licenses, to use any interface device that we have not provided to you. In addition, you shall indemnify and hold us harmless against any and all liability arising out of your use of such interface device with the Service. You shall not reverse compile, disassemble or reverse engineer or otherwise attempt to derive the source code from the binary code of the firmware or software.

2.9 Tampering with the Device or Service: You shall not change the electronic serial number or equipment identifier of the Device or perform a factory reset of the Device without our prior written consent. We reserve the right to terminate your Service if we believe, in our sole and absolute discretion, that you have tampered with the Device. In the event of such termination, you will remain responsible for the full month’s charges to the end of the current term, including, without limitation, unbilled charges, plus a termination fee, if applicable, all of which will immediately become due and payable. You shall not attempt to hack or otherwise disrupt the Service or make any use of the Service that is inconsistent with its intended purpose.

2.10 Theft of Service: You shall not use the Service in a manner calculated to avoid Carolina Digital Phone policies and procedures. You shall not obtain or use the Services in an improper manner. You shall notify us immediately, in writing or by calling our customer support line, if the Device is stolen or if you become aware at any time that your Service is being stolen, fraudulently used, or otherwise being used in an unauthorized manner. When you call or write, you must provide your account number and a detailed description of the circumstances of the Device theft, fraudulent use, or unauthorized use of Service. Failure to do so in a timely manner may result in the termination of your Service and additional charges to you. Until such time as we receive notice of the theft, fraudulent use, or unauthorized use, you will be liable for all use of the Service using a Device stolen from you and any and all stolen, fraudulent or unauthorized use of the Service. Carolina Digital Phone reserves all of its rights at law and equity to proceed against anyone who uses the Services illegally or improperly.

2.11 Returns: Carolina Digital Phone does not offer any returns on its services. All monthly service fees are deemed fully earned at the time they are collected and no refund, pro-rated or otherwise is given. All equipment and other ancillary services purchased from Carolina Digital Phone is subject to the Manufacturer’s standard warranty and no refunds are given.

2.12 Number Transfer on Service Termination: Upon the termination of your Service, we may, in our sole and absolute discretion, release to your new service provider the telephone number that you ported (transferred or moved over) to us from your previous service provider and used in connection with your Service if:

Such release may come from a third-party holding a Letter of Authorization (LOA) and your telephone number(s) being transferred or ported to another carrier will not be unreasonably refused. In the event that the Carolina Digital Phone has released the number and the former Customer still requires assistance, Carolina Digital Phone will assess a $350 consulting fee for each number ported that requires assistance. Otherwise, technical support should not be needed to transfer or port the telephone number(s). Carolina Digital may charge a Port Out Service fee of $10 per telephone number and the Customer agrees to pay this fee and any Early Termination Fees.

2.13 Service Distinctions: The Service is not a telecommunications service and we provide it on a best efforts basis. Circumstances beyond our control may affect the Service, such as power outages, fluctuations on the internet, and your underlying broadband service. Other Circumstances may affect Service, such as maintenance. Carolina Digital Phone will act in good faith to minimize disruptions to your use of and access to Service. Important distinctions exist between telecommunications services and the Service offering that we provide. The Service is subject to different regulatory treatment than the telecommunications services. This treatment may limit or otherwise affect your rights of redress before regulatory agencies.

2.14 Ownership and Risk of Loss: You will own the Device and bear all risk of loss of, theft of, casualty to, or damage to the Device, from the time it is shipped to you until the time (if any) when it is returned to us in accordance with this Agreement.

2.15 No 0+ or Operator Assisted Calling; May Not Support x11 Calling: The Service does not support 0+ or operator assisted calling (including, without limitation, collect calls, third party billing calls, 900 or calling card calls). The Service may not support 311, 511, and/or other x11 (other than certain specified dialing such as 911 and 411, which are provided for elsewhere in this Agreement) services in one or more (or all) service areas.

2.16 No Directory Listing: The phone numbers you obtain from us will not be listed in any telephone directories. Phone numbers transferred from your local phone company may, however, be listed. As a result, someone with your phone number may not be able to utilize a reverse directory to look up your address.

2.17 Incompatibility With Other Services:

(a) Home Security Systems. The Service may not be compatible with home security systems. You may be required to maintain a telephone connection through your local exchange carrier in order to use any alarm monitoring functions for any security system installed in your home or business. You are responsible for contacting the alarm monitoring company to test the compatibility of any alarm monitoring or security system with the Service.

(b) Certain Broadband and Cable Modem Services. You acknowledge that the Service presently is not compatible with AOL cable broadband service and there may be other services with which the Service may be determined to be incompatible. You further acknowledge that some providers of broadband service may provide modems that prevent the transmission of communications using the Service. We do not warrant that the Services will be compatible with all broadband services and expressly disclaim any express or implied warranties regarding the compatibility of the Service with any particular broadband service.

2.18 Single Number Complaint: In the event that you experience a single number complaint or a single end-user complaint and such complaint is referred to Carolina Digital Phone, Carolina Digital Phone will perform reasonable efforts to isolate the problem. Carolina Digital Phone by practice and policy will not perform any alternate routing of egress trunks based upon a single number or single end-user complaint. However, Carolina Digital Phone will attempt to correlate the problem across multiple customers in order to perform any necessary corrective actions. If Carolina Digital Phone determines that a trouble ticket is related to a single number or single end-user, Carolina Digital Phone will change the status of the trouble ticket to “resolved” and pursue closure of the trouble ticket.

3. CHARGES; PAYMENTS; TAXES; TERMINATION

3.1 Billing: When the service is activated, you must provide us with a valid email address and a credit card number from a card issuer that we accept unless other payment terms have been agreed upon by Carolina Digital. We reserve the right to stop accepting credit cards from one or more issuers. If your credit card expires, you close your account, your billing address changes, or your credit card is canceled and replaced on account of loss or theft, you must advise us at once. We will bill all charges, applicable taxes, and surcharges monthly in advance (except for usage-based charges, which will be billed monthly in arrears, and any other charges which we decide to bill in arrears) to your credit or debit card, including but not limited to: activation fees; monthly Service fees; usage charges; international usage charges; advanced feature charges; premium services/Add-Ons, equipment purchases; regulatory recovery fee; Emergency 911 Cost Recovery, taxes; 911 fees, termination fees; and shipping and handling charges.

The amount of such fees and charges shall be published on our website and may change from time to time. Notification of monthly invoices will be sent to you via your email address on file with us. We reserve the right to bill at more frequent intervals if the amount you owe to us at any time exceeds $50. Any usage charges will be billed in increments that are rounded up to the nearest full minute except as otherwise set forth in the rate schedules found on our website.

You may be subject to various Taxes, fees, surcharges, and other charges that vary based on the products you purchase and your service location. Taxes, Governmental Surcharges, and Fees include sales, excise, other taxes, and government surcharges that Carolina Digital Phone Inc is required by law to collect from customers on behalf of local, state, and the federal government. These taxes, surcharges, and fees may change from time to time without notice. Carolina Digital Phone Inc Surcharges and Other Charges and Credits are costs the law allows Carolina Digital Phone Inc to pass on to its customers as a surcharge.

Standard Service fees are defined as follows:

3.2 Billing Disputes: You must notify us in writing within seven days after receiving your credit or debit card statement if you dispute any Carolina Digital Phone charges on that statement or you will be deemed to have waived any right to contest such charges. All notices of disputed charges should be sent to Carolina Digital Phone, 301 S Elm Street, Suite 627, Greensboro, NC 27401.

3.3 Payment and Collection:

(a) Payment. We accept payment by credit card for Services. Payment by other methods must be approved prior to service activation. Your subscription to the Service authorizes us to charge your credit or debit card. This authorization will remain valid until 30 days after we receive written notice, via US Mail, from you terminating our authority to charge your credit card, whereupon we will charge your credit card for the termination fee, if applicable, and any other outstanding charges and terminate your Service. We may terminate your Service at any time in our sole and absolute discretion if any charge to your credit or debit card is declined or reversed, your credit or debit card expires and you have not provided us with a valid replacement credit or debit card or in case of any other non-payment of account charges.

(b) Collection. If your Service is terminated, you will remain fully liable to us for all charges pursuant to this Agreement and any and all costs we incur to collect such amounts, including, without limitation, collection costs and attorney’s fees.

(c) Notices. You understand that it is difficult for Carolina Digital Phone to distinguish between credit and debit cards. You agree to waive your rights under Regulation E to receive ten days’ advance notice from Carolina Digital Phone regarding the amount that Carolina Digital Phone will debit from your account. Carolina Digital Phone may send you messages about your billing from time to time, but Carolina Digital Phone is not obligated to do so. Carolina Digital Phone may change or cease its messages at any time without notice to you.

3.4 Termination; Discontinuance of Service: We reserve the right to suspend or discontinue the Service generally, or to terminate your Service, at any time in our sole and absolute discretion. If we discontinue the Service generally or terminate your Service without a stated reason, you will only be responsible for charges accrued through the date of termination, including a pro-rated portion of the final month’s charges. If your Service is terminated on account of your breach of any provision of this Agreement, you will be responsible for the full month’s charges to the end of the current term, including, without limitation, unbilled charges, plus the termination fee, if applicable, all of which will immediately become due and payable.

3.5 Taxes: You are responsible for all applicable federal, state, provincial, municipal, local, or other governmental sales, use, excise, value-added, personal property, public utility, or other taxes, fees, or charges now in force or enacted in the future, that arise from or as a result of your subscription or use or payment for the Service or a Device. Such amounts are in addition to payment for the Service or Devices and will be billed monthly as set forth in this Agreement. If you are exempt from payment of such taxes, you must provide us with an original certificate that satisfies applicable legal requirements attesting to tax-exempt status. Tax exemption will only apply from and after the date, we receive such a certificate.

3.6 Termination Fee: You may be charged a termination fee of $50.00 per residential voice line if your Service is terminated for any reason. Business customers may be charged a termination fee of $100.00 per device unless their service is canceled prior to the expiration of any contract term or other commitment, in which case the customer will be charged the multiple of the remaining months remaining in the contract terms times the monthly recurring charges set forth in such commitment, such charges to be fully due and payable upon notice of termination. You will not be refunded any portion of your monthly or yearly fees. If you are on a month-to-month business plan, you will not be charged a termination fee. Under the month-to-month Service plan services is offered on a monthly basis for a term that begins on the first day of the month and ends on the last day of the month. On the date that Carolina Digital Phone activates your Service, you will be charged a prorated fee from your activation date until the first day of the following month, when you will be charged for the next month’s term. Subsequent terms of this Agreement automatically renew on a monthly basis unless you give us written notice of non-renewal at least ten (10) days before the end of the monthly term in which the notice is given. Notwithstanding the foregoing and consistent with the remainder of the terms contained herein, all business accounts including, but not limited to hosted PBX, SIP Trunk Services require that you give, written notice via US Mail, postage prepaid, at least thirty (30) days before the end of the monthly term in which the notice is given. You are purchasing the Service for full monthly terms, meaning that if you attempt to terminate Service prior to the end of a monthly term, you will be responsible for the full month’s charges to the end of the then-current term, including, without limitation, unbilled charges, plus a termination fee, if applicable, all of which will immediately become due and payable. You will also be responsible for the next full month’s charges in the event that you do not provide the requisite notice of termination prior to the expiration of the then-current term. Expiration of the term or termination of Service will not excuse you from paying all accrued and unpaid charges due under this Agreement.

3.7 Payphone Charges: If you use our ‘Toll-Free Plus’ feature or any toll-free feature that we offer in the future, we will be entitled to recover from you any charges imposed on us either directly or indirectly in connection with toll-free calls made to your number. We may recover these amounts by means of a per-call charge, rounded up to the next cent, or in such other fashion as we deem appropriate for the recovery of these costs.

4. LIMITATION OF LIABILITY; INDEMNIFICATION; WARRANTIES

4.1 Limitation of Liability: We will not be liable for any delay or failure to provide the Service, including 911 Dialing, at any time or from time to time, or any interruption or degradation of voice quality that is caused by any of the following:

4.2 Disclaimer of Liability for Damages: IN NO EVENT WILL CAROLINA DIGITAL PHONE, ITS OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES OR AGENTS OR ANY OTHER SERVICE PROVIDER WHO FURNISHES SERVICES TO YOU IN CONNECTION THE SERVICE BE LIABLE FOR ANY DIRECT, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR FOR ANY OTHER DAMAGES, INCLUDING BUT NOT LIMITED TO PERSONAL INJURY, WRONGFUL DEATH, PROPERTY DAMAGE, LOSS OF DATA, LOSS OF REVENUE OR PROFITS, OR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE OR INABILITY TO USE THE SERVICE, INCLUDING INABILITY TO ACCESS EMERGENCY SERVICE PERSONNEL THROUGH THE 911 DIALING SERVICE OR TO OBTAIN EMERGENCY HELP. THE LIMITATIONS SET FORTH HEREIN APPLY TO CLAIMS FOUNDED IN BREACH OF CONTRACT, BREACH OF WARRANTY, PRODUCT LIABILITY, TORT, AND ANY AND ALL OTHER THEORIES OF LIABILITY AND APPLY WHETHER OR NOT WE WERE INFORMED OF THE LIKELIHOOD OF ANY PARTICULAR TYPE OF DAMAGES.

4.3 Indemnification and Survival:

(a) Indemnification. You shall defend, indemnify, and hold harmless Carolina Digital Phone, its officers, directors, and employees who furnish services to you in connection with the Service, from any and all claims, losses, damages, fines, penalties, costs and expenses (including, without limitation, reasonable attorneys fees) by, or on behalf of, any third party or user of the Service, relating your gross negligence or willful misconduct in using the Services, including, without limitation, 911 Dialing, or the Device.

(b) Survival. The provisions of this Agreement that by their sense and context are intended to survive the termination or expiration of this Agreement shall survive.

4.4 No Warranties on Service: WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS OF THE SERVICE OR DEVICE FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR ANY WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE OR ANY WARRANTY THAT THE SERVICE WILL MEET CUSTOMER’S REQUIREMENTS. WITHOUT LIMITING THE FOREGOING, WE DO NOT WARRANT THAT THE SERVICE OR DEVICE WILL BE WITHOUT FAILURE, DELAY, INTERRUPTION, ERROR, DEGRADATION OF VOICE QUALITY, OR LOSS OF CONTENT, DATA OR INFORMATION. NEITHER CAROLINA DIGITAL PHONE NOR ITS OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES OR AGENTS, OR ANY OTHER SERVICE PROVIDER OR VENDOR WHO FURNISHES SERVICES DEVICES, OR PRODUCTS TO CUSTOMERS IN CONNECTION WITH THE SERVICE, WILL BE LIABLE FOR UNAUTHORIZED ACCESS TO OUR OR YOUR TRANSMISSION FACILITIES OR PREMISES EQUIPMENT OR FOR UNAUTHORIZED ACCESS TO, OR ALTERATION, THEFT OR DESTRUCTION OF, CUSTOMER’S DATA FILES, PROGRAMS, PROCEDURES OR INFORMATION THROUGH ACCIDENT, FRAUDULENT MEANS OR DEVICES OR ANY OTHER METHOD, REGARDLESS OF WHETHER SUCH DAMAGE OCCURS AS A RESULT OF CAROLINA DIGITAL PHONE’S NEGLIGENCE. STATEMENTS AND DESCRIPTIONS CONCERNING THE SERVICE OR DEVICE, IF ANY, BY CAROLINA DIGITAL PHONE OR CAROLINA DIGITAL PHONE’S AGENTS OR INSTALLERS ARE INFORMATIONAL AND ARE NOT GIVEN AS A WARRANTY OF ANY KIND.

4.5 Device Warranties.

(a) Limited Warranty. Except as set forth herein, if you received a Device from us and the Device included a limited warranty at the time of receipt, you must refer to the separate limited warranty document provided with the Device for information on the limitation and disclaimer of certain warranties. Remedies for breach of any such warranties will be limited to those expressly set forth in such documentation.

(b) NO WARRANTY. IF A LIMITED WARRANTY DID NOT COME WITH YOUR DEVICE, YOU ARE ACCEPTING THE DEVICE ‘AS IS’. YOUR DEVICE IS NOT ELIGIBLE FOR REPLACEMENT, REPAIR, OR REFUND AFTER THE TRIAL PERIOD.

(c) DISCLAIMER. OTHER THAN WARRANTIES AS TO THE DEVICE EXPRESSLY SET FORTH IN THE DOCUMENTATION PROVIDED WITH THE DEVICE AND THE RETAIL CUSTOMER LIMITED WARRANTY EXPRESSLY SET FORTH HEREIN, WE MAKE NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIM ANY WARRANTY OF MERCHANTABILITY, FITNESS OF THE DEVICE FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR ANY WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE OR ANY WARRANTY THAT THE DEVICE OR ANY FIRMWARE OR SOFTWARE IS ‘ERROR FREE’ OR WILL MEET CUSTOMER’S REQUIREMENTS. THE FOREGOING WILL NOT BE DEEMED TO LIMIT ANY DISCLAIMER OR LIMITATION OF WARRANTY SET FORTH IN THE DOCUMENTATION PROVIDED WITH THE DEVICE. DEVICE WARRANTIES DO NOT APPLY TO BUSINESS PLUS CUSTOMERS.

4.6 No Third-Party Beneficiaries: No provision of this Agreement provides any person or entity not a party to this Agreement with any remedy, claim, liability, reimbursement, or cause of action or creates any other third party beneficiary rights.

4.7 Content: You will be liable for any and all liability that may arise out of the content transmitted by you or to any person, whether authorized or unauthorized, using your Service or Device (each such person, a ‘User’). You shall assure that your and your User’s use of the Service and content comply at all times with all applicable laws, regulations, and written and electronic instructions for use. We reserve the right to terminate or suspend your Services and remove your or your Users’ content from the Service, if we determine, in our sole and absolute discretion, that such use or content does not conform with the requirements set forth in this Agreement or interferes with our ability to provide Services to you or others. Our action or inaction under this Section will not constitute any review or approval of your or the User’s use or content.

5. MISCELLANEOUS

5.1 Governing Law: The Agreement and the relationship between you and us are governed by the laws of the State of North Carolina without regard to its conflict of law provisions. To the extent court action is initiated to enforce an arbitration award or for any other reason consistent with Section 5.2, you shall submit to the personal and exclusive jurisdiction of the courts located within Guilford County, North Carolina, and waive any objection as to venue or inconvenient forum.

5.2 Mandatory Arbitration and No Jury Trial: Any dispute or claim between you, any member of your household, or any guest or employee of you and us arising out of or relating to the Service or Device will be resolved by arbitration before a single arbitrator administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, except collection on accounts, which may solely be brought in the District Court of Guilford County, North Carolina. The arbitration will take place in Greensboro, North Carolina. The arbitrator’s decision will follow the plain meaning of the relevant documents and will be final and binding. Without limiting the foregoing, the parties agree that no arbitrator has the authority to (i) award relief in excess of what this Agreement provides; or (ii) award punitive or exemplary damages. Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. All claims shall be arbitrated individually. You shall not bring, or join any class action of any kind in court or in arbitration or seek to consolidate or bring previously consolidated claims in arbitration. THIS ARBITRATION PROVISION CONSTITUTES A WAIVER OF ANY RIGHT TO A JURY TRIAL AND AN AGREEMENT TO BE SUBJECT TO JURISDICTION IN, AND CONDUCT ARBITRAL PROCEEDINGS IN NORTH CAROLINA.

5.3 No Waiver of Rights: Our failure to exercise or enforce any right or provision of this Agreement will not constitute a waiver of such right or provision.

5.4 Entire Agreement: This Agreement, including any future modifications as may occur within the terms of the Agreement, and the rates for Services found on our website constitute the entire agreement between you and Carolina Digital Phone and govern the use of the Service by you, members of your household, guests, and employees. This Agreement supersedes any prior agreements between you and Carolina Digital Phone and any and all prior or contemporaneous statements, understandings, writings, commitments, or representations concerning its subject matter.

5.5 Severability: If any part of this Agreement is legally declared invalid or unenforceable, all other parts of this Agreement will remain valid and enforceable. Such invalidity or non-enforceability will not invalidate or render unenforceable any other portion of this Agreement.

6. Changes to The Agreement: If required by the Federal Communications Commission or other government authority we may change the terms and conditions of this Agreement. Notices may not be sent and are posted on this website. Such changes will become binding on you on the date they are posted to our website and no further notice by us is required upon your continued use of the Service. The Agreement as and when posted supersedes all previously agreed to oral, electronic, and written terms of service, including, without limitation, any terms included with the packaging of the Device, and also supersedes any written terms provided to Customers in connection with retail distribution, including, without limitation, any written terms enclosed within the packaging of the Device.

7. Privacy: Carolina Digital Phone Service utilizes, in whole or in part, the public Internet and third-party networks to transmit voice and other communications. Carolina Digital Phone is not liable for any lack of privacy that may be experienced with regard to the Service. Please refer to our Privacy Policy at https://carolinadigitalphone.com/ for additional information.