WORLDCOM NETWORK SERVICES, INC.
TRANSCEND TM SWITCHED SERVICES
RATE AND DISCOUNT SCHEDULE
This Rate and Discount Schedule is made by and between WorldCom Network
Services, Inc. ("WorldCom") and GENX LLC/DBA: PREFERRED DISCOUNT
("Customer") and is a part of their Telecommunications Services Agreement
for Switched Services. Capitalized terms not defined herein shall have the
meaning ascribed to them in the TSA, the PET or the Service Schedule. NOTE:
ANY MODIFICATIONS, ADDITIONS OR DELETIONS FROM THIS RATE AND DISCOUNT
SCHEDULE WILL NOT BE EFFECTIVE UNLESS SPECIFICALLY SET FORTH IN THE PET.
1. RATES
Rates for Switched Services hereunder will be generally comprised of
the following charges, if applicable: (i) local exchange company ("LEC")
charges (including without limitation, access charges, egress charges, SMS
800 queries etc.), (ii) Domestic Transport Charges (i.e., transport within
the continental United States), (iii) Extended Location Transport Charges,
(iv) International Transport Charges, (v) Canada and Mexico Transport
Charges, and (vi) surcharges (e.g., directory assistance) as such charges
are further defined herein.
(A)
DOMESTIC TRANSPORT CHARGES.
(i) Domestic Transport Charges"are based on the location (i.e.,
Tier A, Tier B or
Tier C) of the originating and terminating local access transport areas
("LATAs")
or the applicable state (excluding TRAVEL CARD Service). A
list of the LATAs
comprising Tier A, Tier B and Tier C LATAs is shown on
Schedule "1" attached
hereto and incorporated herein by reference which Schedule 1"
may be amended
from time to time by WorldCom. The Domestic TrRnsport Charge
will be based
upon the number of originating seconds, and will be assessed
on (i) all completed
or answered calls, and (ii) all incomplete' transport
billable calls. The Transport
Charge for each Tier (the "Tier Charge") relative to each
Service is shown below:
(ii) The Tier Charges for Carrier TERMINATION Service calls
(regardless of jurisdiction or time of day)
within the continental United States or from the continental
United States to an Extended Location
or International location are shown below. The Domestic
Transport Charge will be comprised of the
applicable Tier Charge based on the Tier to which the call is
terminated. With respect to TERMINATION
Service calls to Alaska, Hawaii, Puerto Rico and the United
States Virgin Islands (hereinafter an
"Extended Location"), or to an International location
(including Canada and Mexico), the Domestic
Transport Charge will be comprised of the applicable
terminating Tier Charge which will be deemed to be
Tier A.
Tier A $0.0230
Tier B $0.0270
Tier C $0.0300
(ii The Tier Charges for Carrier TOLL FREE ORIGINATION Service
calls (regardless of jurisdiction or time of day) within the
continental United States are shown below. The Domestic
Transport Charge will be comprised of the applicable Tier
Charge based on the Tier from which the call is originated.
With respect to TOLL FREE ORIGINATION Service calls from an
Extended Location or from Canada, the Domestic Transport
Charge will be comprised of the applicable originating Tier
Charge which will be deemed to be Tier A.
Tier A $0.0230
Tier B $0.0270
Tier C $0.0300
(iv) The Tier Charges for Interstate SWITCHED ACCESS Service and DEDICATED
ACCESS Service calls within the continental United
States are shown below. With
respect to SWITCHED ACCESS Service and DEDICATED ACCESS
Service calls
within the continental United States, the Domestic
Transport Charge will be
comprised of an originating Tier Charge and a
terminating Tier Charge.
Tier A Tier B Tier C
Tier A $0.0300 $0.0325 $0.0350
Tier B $0.0325 $0.0350 $0.0375
Tier C $0.0350 $0.0375 $0.0400
With respect to SWITCHED ACCESS calls and DEDICATED
ACCESS calls to an
Extended Location, or to an International location
(including Canada and Mexico), the Domestic
Transport Charge will be comprised of the applicable
originating Tier Charge and the terminating Tier
Charge which will be deemed to be Tier A. With respect
to Toll Free calls (and 1+ calls from
Hawaii only) from an Extended Location, the Domestic
Transport Charge will be comprised of the
originating Tier Charge which will be deemed to be Tier
A and the applicable terminating Tier Charge.
(v)The Tier Charges for Intrastate SWITCHED ACCESS Service
and DEDICATED ACCESS Service calls
are shown below.
STATES TIER CHARGE
California, California (Intra-LATA), Florida $0.0250
New York, Texas
Alabama, Arizona, Arkansas, Colorado $0.0350
Connecticut, Idaho, Indiana, Iowa, Kansas,
Louisiana, Maine, Massachusetts,
Minnesota, Missouri, Montana, Nebraska
New Jersey, New Mexico, North Carolina,
North Dakota, Oregon, Rhode Island,
Tennessee, Utah, Vermont, Washington,
West Virginia
(vi) With respect to Directory Assistance calls from the continental United
States to
Canada, the Domestic Transport Charge will be comprised of the applicable
originating Tier Charge and the terminating Tier Charge which will be
deemed to
be Tier A.
(B) EXTENDED LOCATION TRANSPORT CHARGES.
(i) With respect to 1+ calls terminating to an Extended Location,
the following
"Extended Location Transport Charges" will apply
in addition to. any applicable
Domestic Transport Charge as described in
Subsection 1.(A) above. [Note: Egress
Charges associated with calls to an Extended
Location are included in the
Extended Location Transport Charges.
Extended Location Extended Location Transport Charge
Alaska $0.1300
Hawaii $0.1200
Puerto Rico $0.1300
US Virgin Islands $0,1300
(ii) With respect to Toll Free calls (and 1+ calls from Hawaii only)
originating from an
Extended Location, the following Extended Location
Transport Charges will apply
in addition to any applicable Domestic Transport Charge
as described in
Subsection I.(A) above. [Note: Access Charges associated
with calls from an
Extended Location are included in the Extended Location
Transport Charges.]
[NOT SUBJECT TO DISCOUNT]
Extended Location Extended Location Transport Charge
Alaska $0.1600
Hawaii $0.0840
Puerto Rico $0.1100
US Virgin Islands $0.1400
(c) CANADA AND MEXICO TRANSPORT CHARGES [NOT SUBJECT TO DISCOUNT].
(i) With respect to 1+ calls terminating to Canada and Mexico (including
directory
assistance calls to Canada), the
following "Canada and Mexico Transport
Charges" will apply in addition to
any applicable Domestic Transport Charge as
described in Subsection I.(A) above.
[Note: Egress Charges associated with calls
to Canada and Mexico calls are
included in the Canada and Mexico Transport
Charge.)
Location
Canada
Mexico (Band 1 and 2)
Mexico (Bands 3, 4 and 5)
Mexico (Bands 6, 7 and 8)
Canada and Mexico
Transport Charge
$0.0597
$0.1600
$0.2200
$0.3700
(ii) With respect to Toll Free calls originating from Canada, the
following Canada
Transport Charges will apply in addition to any
applicable Domestic Transport
Charge as described in Subsection 1.(A) above. [Note: Access Charges
associated with calls from Canada, are included in the Canada Transport
Charge.]
Location
Canada
Canada
Transport Charge
$0.1850
(D) INTERNATIONAL TRANSPORT CHARGES [NOT SUBJECT TO DISCOUNT].
Commencing with the Effective Date described in Section
1 of the PET, with respect to calls
terminating to an International location, the
"International Transport Charges" will be deemed to correspond
with the level of applicable charges shown on Schedule
"2" attached hereto and incorporated herein by
reference based on Customers Commitment described in the
PET (rounded down to the nearest
International Revenue Level) which International
Transport Charge will apply in addition to any
applicable Domestic Transport Charge as described in
Subsection I.(A) above. [Note: Egress charges
associated with calls to International Locations are
included in the International Transport Charges.]
(E) lEC CHARGES.
(i) "LEC Charges" include Access Charges (as defined herein), Egress
Charges (as
defined herein), SMS 800 queries, and presubscribed
interexchange carrier
charges ("PICC Charge") assessed by a local exchange carrier
("LEC") relating
to Customer's traffic but only if WorldCom is directly billed
by the LEC for such
PICC Charge. "Access Charges" and "Egress Charges" are per
minute costs
determined by WorldCom between the applicable WorldCorn point
of presence
and the terminating or originating point, and rated at the
applicable end office
(NPA-NXX) level using switched tandem access or direct end
office trunking rates
and charges (excluding TRAVEL CARD Service). WorldCorn may also
charge
Customer for other charges it is assessed by any LEC or the SMS
800 database
administrator for 800 number service (e.g., National Exchange
Carrier Association
(NECK) charges, etc.). Directory Assistance calls will only be
assessed the
applicable Access Charge. Customer will also pay WorldCom a
five percent (5%)
administrative charge (the "Administrative Fee") which is
assessed on the total
of Customer's monthly LEC Charges. The NPA-NXX is generally
identified by the
end user's automated number identification ("ANI"); provided,
however, in the
event there is not an identified originating ANI, the NPA-NXX
will be assigned
based on WorldCom's originating trunk group. The terminating
NPA-NXX will be
identified by the dialed number; provided, however, in the
event there is not an
identified dialed number, the NPA-NXX will be assigned based
on WorldCom's
terminating trunk group.
(ii) The per minute rates utilized by WorldCom in
determining the applicable Access
Charges and Egress Charges are described in the LEC's
applicable tariffs, are
based on WorldCom's determination of end user ownership
and type, and are
exclusive of any discounts based on minute or term
commitments. The Access
Charges and Egress Charges as determined by WorldCom
are set forth in the
"LEC Tariff Database". The LEC Tariff Database will be
updated periodically to
take into account any tariff changes by the various LECs
("Tariff Changes").
Tariff Changes received by WorldCom on or before the
fifteenth (15th) day of a
month and effective as of the first day of the following
month or thereafter, will be
incorporated into the LEC Tariff Database by the first
day of the month following
WorldCom's receipt thereof or the date such Tariff Changes are effective,
whichever is later.
(iii) The Access Charges and Egress Charges may include, without
limitation, the
components and elements described below; provided,
however, the terminology
with respect to these components and elements may vary
among LECs. The
Access Charges and Egress Charges will be calculated
taking into effect whether
the call is interstate, intrastate or intraLATA, the
direction of the call (i.e., whether
originating or terminating), whether the call is
premium or nonpremium (if
applicable), the mileage, the meet point (if
applicable) and the call type (i.e., 1+ or
800). WorldCom may also apply any other rating
elements which are assessed by
the LECs or third parties (e.g., regulatory fee
assessments, standard or non
standard LEC access components) whether such charges
are based per access
line, per business line, per market share, per call,
etc. (e.g., the Arkansas Carrier
Common Line charge which is assessed by a regulatory
body and allocated to the
LECs). With respect to those LECs utilizing a "time of
day" differential (i.e.,
Day/Nonday, Day/Evening/Night, etc.), WorldCom will
only use the "Day" rate
provided by the LECs.
Component Elements
Carrier Common Line Obligating
Terminating
End Office Local Switching
Equal Access Recovery
Local Transport Termination
Tandem Switching
Facility
Interconnection
Entrance Facility DS-3 (month-to-month electrical)
Multiplexer (3/1 month-to-month)
(iv) The Access Charges and Egress Charges are generally applied on a per
minute
basis except for (i) the Local Transport Facility
charge which is based on minutes
and mileage, and (ii) the Entrance Facility rate and
Multiplexer rate which are flat
monthly rates which are converted by WorldCom to a cost
per minute basis by
dividing the applicable DS-3 flat rate or the
multiplexer rate as found in the
applicable LEC tariff by 6,160,000. WorldCom reserves
the right to convert any
other flat rates assessed by the LECs into per minute
charges.
Example: Assume the applicable LEC tariffed rate (i)
for entrance facility charges is $2,350 per DS-3,
and (ii) for muxing is $500 per 3/1 mux. The Entrance
Facility rate will be $.00038149 [$2,350/6,160,000]
and the Multiplexer rate will be $.00008117
[$500/6,160,000].
(v) Access Charges will commence when the call is
originated and will end when the call is
disconnected. Customer will be assessed Access Charges
even if a call is not completed. Egress
Charges will commence when the call is answered and
will end when the call is disconnected. Access
Charges and Egress Charges will not apply with respect
to dedicated access originations or
terminations, respectively.
(F) TRANSCENDENT TM MANAGER.
WorldCom agrees to provide Customer, at no cost to
Customer, a windows-based software
program entitled "TranscendTm Manager" which will allow
the Customer to "query" the LEC Tariff
Database described in Subpart (ii) above.
(G) DIRECTORY ASSISTANCE SURCHARGE:
I Directory assistance calls in the continental United
States will be assessed a surcharge of $0.4300 in
addition to any applicable Domestic Transport Charge as
described in Subsection I.(A) above. Directory
assistance calls to Canada will be assessed a surcharge
of $0.6000 in addition to any applicable
Domestic Transport Charge as described in Subsection
I.(A) above and the Canada Transport Charge as
described in Subsection I.(C) above.
(H) TRAVEL CARD SERVICE RATES:
JURISDICTION RATE PER MINUTE
BASIC INTERSTATE
Within the contiguous United States $0.1200 Day/Nonday
BASIC INTERSTATE Extended
* 48 contiguous United States to Alaska, Hawaii $0.1450 Day/Nonday
Puerto Rico and the United States Virgin Islands
*Hawaii to 48 contiguous United States $0.1550 Day$0.1470 Nonday
*Alaska to 48 contiguous United States $0.2728 Day$0.2651 Nonday
*Puerto Rico to contiguous United States $0.1830 Day$0.1783 Nonday
BASIC INTERNATIONAL*
48 contiguous United States to Internationallocations
SEE Schedule 4* (SWITCHED
(excluding Canada and Mexico)
ACCESS Service Rates)
* 48 contiguous United States to Canada
$0.1300 Day/Nonday
* 48 contiguous United States to Mexico
SEE Schedule 5 (SWITCHED
ACCESS Service Rates)
* Canada to 48 contiguous United States
$0.2450 Day/Nonday
ENHANCED SEE Schedule 6
* Based on Customer's Minimum Revenue Commitment
described in Section 2 of the PET rounded down to the
nearest level.
TRAVEL CARD Service Discount Schedule(a):
SERVICE TERM(b)
Monthly Revenue MTM 1-YR 2-YR 3-YR
$ 0-$ 49,999 0.0% 0.5% 1.0% 1.5%
$ 50,000 - $ 99,999 1.0% 1.5% 2.0% 3.0%
$100,000 - $249,999 1.5% 2.0% 2.5% 4.0%
$250,000 - $499,999 2.0% 2.5% 3.0% 5.0%
$500,000 - $749,999 3.5% 4.0% 6.0% 8.0%
S750,000 - $999,999 4.5% 5.5% 8.0% 10.0%
$1,000,000+ 5.5% 7.0% 10.0% 12.0%
(a) If Customer's Minimum Commitment as
described in Section 2 of the PET is
at least S50,000, all of the
percentages shown in the TRAVEL CARD Service
Discount Schedule above will be
increased by the following amounts based
on Customers Minimum Commitment.
If Customers Minimum Revenue
Commitment is at least
$ 50,000
$ 100,000
$ 250,000
$ 500,000
$ 750,000
$1,000,000
The applicable percentages
will be increased by
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
(b) For purposes of this Section (H), the
applicable Discount column is based on the
number of months contained in the Service Term
divided by 12. If the number of months is less
than 12, the month-to-month (MTM) Discounts
shall apply. If the product of the division is
equal to or greater than 1 but less than 2, the
1-Year Discounts apply; if the product of the
division is equal to or greater than 2 but less
than 3, the 2-Year Discounts apply; and, if the
product of the division is equal to or greater
than 3, the 3-Year Discounts apply.
11. DISCOUNTS
(A) For purposes of this Agreement, Customer's
"Monthly Revenue" will be
comprised of Customers gross
(i.e., prior to the application of any discounts)
(i) Transport Charges (i.e.,Domestic,
Extended, Canada, Mexico and International);
(ii) LEC Charges plus the Administrative
Fee described in Subsection 1.(E)(i) above;
(iii) Directory Assistance surcharges
described in Subsection l.(G) above;
(iv) TRAVEL CARD Service charges
described in Subsection L(H) above;
(v) Customer's measured usage charges for
International Toll Free Service (ITFS)
and Universal International Free
Phone Number Service (UIFN) from WorldCom;
(vi) three. (3) times Customer's first
$300,000 of monthly recurring private line
interexchange service charges
(including both domestic and
international) from WorldCom, two
(2) times Customer's second $300,000 of
monthly recurring private line
interexchange service charges (including both
domestic and international) from
WorldCom, and Customer's monthly recurring
private line interexchange service
charges (including both domestic and
international) from WorldCom in
excess of $600,000; and, (iv) Monthly Port
Charges, Monthly CIR Charges and
Monthly NNI Charges, if any, as are
specifically described in an
agreement for FrameRelay Services between
WorldCom and Customer. Customer's
Monthly Revenue will not
include any pro rata charges,
ancillary or special feature charges, such as,
Authorizationcodes or CDR Tapes, or
any other charges other than those
identified by the relevant WorldCom
invoice as monthly recurring private line
interexchange service charges or
the switched service charges specifically
mentioned in this Subsection (A).
(B) Commencing with the Effective Date and
continuing through the end of the
Service Term (including any
applicable extensions thereto), Customer's discount
percentage (the "Discount") will be
determined by the applicable Discount
Schedules shown in Subsections (C)
and (D) below taking into account any
increase as described in
Subsection (E) below. Throughout the Service Term,
Customer will automatically receive
the next higher (or lower) Discount when
Customer's eligible Monthly Revenue
reaches the next level (or falls below a level
which in no event shall be less
than Customer's Minimum Revenue
Commitment, if any, described in
the PET). Customer will receive the
percentage shown in the applicable
Discount Schedule associated with
Customer's Minimum Revenue
Commitment commencing with the Effective
Date regardless of Customer's
actual Monthly Revenue.
(C) DISCOUNT SCHEDULE - (i) TERMINATION
Service,
(ii) TOLL FREE ORIGINATION Service, and
(iii) SWITCHED ACCESS
Service and DEDICATED ACCESS
Service to Extended Locations.
SERVICE TERM(a)
Monthly Revenue MTM 1-YR 2-YR 3-YR
$ 0-$ 49,999 0.0% 1.0% 2.0% 3.0%
$ 50,000 - $ 99,999 2.0% 3.0% 4.0% 5.0%
$100,000 - $249,999 3.0% 5.0% 7.0% 9.0%
$250,000 - $499,999 4.0% 7.0% 10.0% 13.0%
$500,000 - $749,999 6.0% 10.0% 13.0% 17.0%
$750,000 - $999,999 8.0% 12.0% 16.0% 21.0%
$1,000,000+ 10.0% 15.0% 20.0% 25.0%
(a) For purposes of this Subsection (C), the
applicable Discount column is
based on the number of months contained in
the Service Term divided by 12.
If the number of months is less than 12,
the month-to-month (MTM) Discounts
shall apply. If the product of the
division is equal to or greater than 1 but less
than 2, the 1 -Year Discounts apply; if
the product of the division is equal to or
greater than 2 but less than 3, the 2-Year
Discounts apply; and, if the product of the
division is equal to or greater than 3,
the 3-Year Discounts apply.
(D) DISCOUNT- SCHEDULE -__SWIT - CHED ACCESS
Service (1+ and Toll Free) and
DEDICATED ACCESS Service (1+ and Toll Free)
within the continental United
States.
SERVICE TERM(a)
Monthly Revenue MTM 1-YR 2-YR 3-YR
$ 0-$ 49,999 0.0% 1.0% 2.0% 4.0%
$ 50,000 - $ 99,999 2.0% 3.0% 4.0% 8.0%
$100,000 - $249,999 4.0% 6.0% 8.0% 12.0%
$250,000 - $499,999 6.0% 8.0% 12.0% 16.0%
$500,000 - $749,999 10.0% 12.0% 16.0% 20.0%
$750,000 - $999,999 13.0% 16.0% 20.0% 24.0%
$1,000,000+ 16.0% 20.0% 24.0% 29.0%
(a) For purposes of this Subsection (D), the
applicable Discount column is based
on the number of months contained in the
Service Term divided by 12. If
the number of months is less than 12, the
month-to-month (MTM) Discounts
shall apply. If the product of the
division is equal to or greater than 1 but less
than 2, the 1 -Year Discounts apply; if
the product of the division is equal to
or greater than 2 but less than 3, the
2-Year Discounts apply; and, if the product of
the division is equal to or greater than
3, the 3-Year Discounts apply.
(E) If Customer's Minimum Commitment (as described
in the PET) is at least the
amount shown in the Schedule below, all of the
respective percentages in the
applicable Discount
Schedules (depending on the Service Term
selected by Customer) will be increased
by the respective amounts shown below. Customer
will receive the percentage
shown in the Discount Schedule associated with
Customer's Minimum Commitment
and Service Term commencing with the Effective
Date regardless of Customer's
actual Monthly Revenue Level.
EXAMPLE: Assume Customers Minimum Commitment is
$750,000 and the
Service Term is thirty-six (36) months.
Commencing with the Effective
Date and continuing through the end of the
Service Term (including any applicable
extensions thereto), Customer's applicable
Discount percentage (i) for the Services
described in Subsection (C) above will be 25%
(21% + 4%) if Customers actual
Monthly Revenue is between $750,000 and
$999,999, inclusive; and 29%
(25% + 4%) if Customer's actual Monthly Revenue
is equal to or greater than
$1,000,000, and (ii) for the Services described
in Subsection (D) above will be 29%
(24% + 5%) if Customer's actual Monthly Revenue
is between $750,000 and
$999,999, inclusive; and 35% (29% + 6%) if
Customers actual Monthly Revenue is
equal to or greater than $1,000,000.
(1) -DISCOUNT SCHEDULE - (i) TERMINATION Service,
(ii) TOLL FREE
ORIGINATION Service, and (iii) SWITCHED ACCESS
Service and DEDICATED
ACCESS Service to Extended Locations only.
If Customers Minimum
Commitment is at least
$ 50,000
$ 100,000
$ 250,000
$ 500,000
$ 750,000
$1,000,000
The applicable percentages
will be increased by
0.5%
1.0%
2.0%
3.0%
4.0%
5.0%
(2) DISCOUNT SCHEDULE - SWITCHED ACCESS Service (1+
and Toll Free) and
DEDICATED ACCESS Service (1+ and Toll Free).
If Customer's Minimum
Commitment is at least
$ 50,000
$ 100,000
$ 250,000
$ 500,000
$ 750,000
$1,000,000
The applicable percentages
will be increased by
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Ill. APPLICATION OF DISCOUNTS
(A) The Discount will only be applied to Customer's
Domestic Transport Charges as
described in Subsection 1.(A) above and
Customer's Extended Transport
Charges to Extended Locations
unless otherwise noted herein.
(B) During the Service Term, accumulated credits
derived from the applicable
Discount will beapplied in arrears
commencing with the first day of the
month following the Effective
Date, that is, the Discount will be applied to
Customer's measured usage charges
for the preceding month (the
"Discount Period"). The initial
Discount Period shall include any
partial calendar month following
Start of Service, or such other
time basis as may be mutually
determined by the parties.
(C) Each Discount will result in the
application of a credit obtained during the
Discount Period to the WorldCom
invoice to Customer relevant to the
billed measured Switched Service
for the calendar month next following the
completion of each Discount
Period, provided Customer has paid undisputed
charges (including any late fees,
if applicable) for that month and has not
otherwise been subject to a
Suspension Notice in accordance with the
TSA. Failure of Customer to
comply with the foregoing provision shall
entitle WorldCom to withhold any
credit due Customer for the Discount Period
in question until such charges
(including late fees) have been paid in full.
IN WITNESS WHEREOF, Customer has
initialed this TRANSCEND
TM SWITCHED SERVICES Rate and
Discount Schedule on the date first
written above.
GENEX, LLC/DBA: PREFERRED DISCOUNT PLAN
Customer's initials -
ATTACHMENTS:
Shedule 1 TIER A, TIER B and TIER C LATAs
Schedule 2 International Transport Charges
Schedule 3 Intrastate TRAVEL CARD Service Rates
Schedule 4 TRAVEL CARD Service International Rates
Schedule 5 TRAVEL CARD Service - Mexico Rate
Schedule 6 ENHANCED TRAVEL CARD Service Rates
