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Agreement Between Popular Club Plan and Long Distance Direct, Inc.
This AGREEMENT, made and entered into on this 12th day of February, 1998
by and between Popular Club Plan, a subsidiary of J. Crew Group, Inc.
(hereinafter referred to as "PCP") with its address at 00 Xxxxxxx Xxxxx,
Xxxxxxxx, Xxx Xxxxxx and Long Distance Direct, Inc., (hereinafter referred to as
"LDDI") with its principal place of business at Xxx Xxxx Xxxx Xxxxx, Xxxxx
Xxxxx, Xxx Xxxx 00000.
WITNESSETH:
WHEREAS, the parties wish to enter into an agreement whereby PCP will
market the telecommunications services provided by LDDI and referenced to below
to persons to whom PCP has access.
NOW, THEREFORE, in consideration of the promises and of the covenants
contained herein and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto mutually agree
as follows:
1. PCP will undertake to market LDDI's long distance telephone, voice
mail, paging and prepaid cellular services, and will electronically deliver
orders for services to LDDI in a mutually agreeable format. There shall be no
minimum number of customer service orders that PCP is obligated to deliver to
LDDI. Furthermore, there shall be no maximum number of customer service orders
that PCP is permitted to deliver to LDDI.
2. LDDI shall xxxx the customers introduced to it by PCP fees and rates
for services as set out below. The per minute usage rates for interstate,
inbound
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services, international telephone services and intrastate telephone services and
the commissions that LDDI must pay to PCP based on such rates are set forth in
Schedule A attached hereto and made a part hereof. The rates for voice mail,
paging and cellular services, together with the commissions payable to PCP, are
set out respectively in Schedule B, C and D attached hereto. All customers
introduced to LDDI by PCP who subscribe to LDDI's services shall in such respect
and for the purposes only of the services to be provided pursuant to the terms
of paragraph 1 hereof be deemed customers of LDDI and not of PCP, in
consideration whereof LDDI shall not market additional services to such
customers or make such customer names available to third parties without the
written consent of PCP. LDDI shall establish accounts for such customers, shall
attempt to provision all customer submitted to it by PCP for service and shall
provide services to such customers in compliance with its normal terms of
business and federal, state and local laws, rules and regulations. LDDI shall
indemnify, defend and hold harmless PCP, its successors, assigns, and related
entities from any demands, claims, liabilities or costs arising out of LDDI's
provision of services to customers and any acts or omissions related thereto.
3. A. In consideration of PCP referring customers to LDDI, LDDI shall pay
to PCP the commissions specified in Schedules A, B, C and D.
B. Within fifteen days (15) after the close of each calendar
month of the term of this Agreement and for so long as commissions are payable
to PCP under the terms of this Agreement following termination thereof, LDDI
will account for and remit to PCP the commissions earned by PCP for the
previous month. The
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commissions due to PCP shall be based on payments, net of taxes, actually
received by LDDI during such month for services provided to customers referred
to LDDI by PCP. All payments received from customers referred to LDDI by PCP
shall be allocated first to old balances outstanding and then prorata to
services billed unless otherwise agreed in writing. LDDI shall be solely
responsible for, and PCP shall not have responsibility for, any failure of
customers referred to LDDI by PCP to pay for services rendered to them by LDDI.
PCP hereby undertakes not to submit for service any customer of PCP whose
account shall have been charged off by PCP. LDDI shall have the right to
discontinue service to any customer introduced by PCP whose account with LDDI
shall have remained unpaid for more than sixty days following the due date of
the statement/invoice, and for the purposes of this Agreement any such account
shall be deemed to be a bad debt. LDDI will make reasonable efforts to collect
such debts including, but not limited to, a xxxxxxx message on the statement at
30 days following the original statement/invoice in question, a xxxxxxx notice
sent via first class mail, at least two outbound telephone call attempts during
different day or evening times to make contact with the customer to obtain a
promise to pay, and a final disconnect notice sent via first class mail. In the
event that the level of bad debt incurred by LDDI in respect of customers
introduced by PCP shall exceed seven and one half percent (7.5%) of total
monthly xxxxxxxx at the end of any three consecutive months, LDDI shall not be
obliged to provide service to additional customers submitted to it by PCP. In
such event, however, LDDI shall continue to provide service to those customers
previously introduced by PCP whose accounts are paid within sixty days following
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the date of invoice. The bad debt ratio for a particular month will be
calculated as follows: denominator: charges in such month to customers;
numerator: amount of these same charges remaining uncollected after two billing
cycles and net of amounts collected through LDDI's collection efforts and net
of any amounts which customer has reasonably demonstrated to LDDI as having
been billed in error.
C. Accompanying LDDI's monthly payments of commissions to PCP shall
be a report in electronic form detailing all activity for each customer for whom
PCP receives a commission. Such report shall fully itemize customer usage of
each type of service and its payment history. Also included with the monthly
payment will be a vintage analysis, i.e. each month's current activity billed
versus dollars collected in each subsequent month..
D. Payments of commissions shall be remitted to PCP by check
delivered to PCP at such place as is designated by PCP in writing or by wire
transfer of funds to a bank account designated by PCP and shall be deemed made
when received. Any payment of commissions not made within fifteen (15) days of
the due date shall bear interest at the rate of one and one quarter percent
(1.25%) per month from the date due until the date paid. Notwithstanding that
such interest accrues if payment is not made within the time period specified
above, PCP may hold LDDI in breach of the agreement if LDDI fails to make
payments within the time period specified above and terminate the Agreement.
Such termination shall not affect PCP's right to receive residual income as set
forth in Paragraph 3.E below or in Paragraph 6 below.
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E. All revenue payable to PCP pursuant to this Agreement shall
continue for as long as the customers referred to LDDI by PCP subscribe to the
services of LDDI or any of its affiliates or assigns. These payments shall be
due notwithstanding the termination of this Agreement for any reason.
4. LDDI will bear all costs of the provision of services to customers
referred by PCP including but not limited to billing, customer services via
dedicated toll-free telephone number, and technical support. PCP shall have no
responsibility for billing customers, providing service to customers or
technical support. LDDI shall indemnify and defend PCP from any and all claims
on liability arising out of LDDI's provision of service. LDDI will be
responsible for paying any compensation to Affinity Marketing and will hold PCP
harmless from any claims for compensation from Affinity Marketing provided that
(i) PCP shall within ten business days of notification of any actual or
potential claim notify LDDI in writing of any such actual or potential claim and
immediately furnish to LDDI copies of all pertinent papers received by PCP
regarding any claim or action against or loss by PCP that may reasonably be
expected to involve indemnification under this paragraph (ii) LDDI shall have
the right to review any and all claims or actions as they arise out of this
Agreement and direct, control, or assist the actions of PCP in settling or
defending any claim or action that may involve indemnification under this
paragraph. In the event that PCP fails either to notify LDDI of any claim or
action in accordance with the terms of this paragraph or to permit LDDI to
conduct any such action in the manner set forth above, LDDI shall have the right
to terminate this Agreement and shall not be liable for any indemnification
under this paragraph.
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5. It is acknowledged that the rates for service charged to customers
under Schedule A, and the commissions thereon payable to PCP, are based on rates
for interstate traffic currently payable by LDDI to MCI Telecommunications
Corporation ("MCI") of $0.086 for peak traffic and $0.076 for off-peak traffic
(as such terms are defined in MCI's tariffs filed with the Federal
Communications Commission) ("the current rates"). If during the term of this
Agreement LDDI shall negotiate and obtain from MCI lower rates than the current
rates, LDDI shall forthwith so notify PCP. In respect of the first ten percent
(10%) of such rate reduction, the benefit thereof shall accrue to LDDI. In
respect of all rate reductions in excess of ten percent of the current rates,
LDDI and PCP shall together first determine whether all, part or none of such
rate reduction shall be passed on to customers introduced to LDDI under this
Agreement ("the PCP customers") in the form of lower rates for service. In the
case that PCP and LDDI agree to pass on all or part of the reduction above 10%
to customers, the amount remaining after lowering the cost to customers will be
distributed between PCP and LDDI as follows: (i) PCP's compensation will be
adjusted to an amount per transaction as compared with the percentage under the
current pricing so that the revenue retained by PCP after amounts passed on to
its Club Secretaries in the form of free shopping credits does not decline as
rates are reduced (ii) the amount remaining after the adjustment needed to give
effect to (i) above shall accrue for the benefit of LDDI and PCP equally (iii)
PCP's entitlement hereby shall be calculated monthly and deemed to be additional
commission payable to PCP in accordance with the terms of paragraph 3 above. In
the case that PCP and LDDI do not agree to pass on any reduction to customers,
the amount of the price reduction above 10% shall accrue for
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the benefit of LDDI and PCP equally. PCP's entitlement thereby shall be
calculated monthly and deemed to be additional commission payable to PCP in
accordance with the terms of paragraph 3 above.
6. The term of this Agreement shall be for an initial period of two (2)
years from the date hereof.
7. Termination for cause: A. This Agreement may be terminated by either
party, upon written notice to the other, in the event of fraud or any other
uncured breach of the terms of this Agreement by the other party. B. Each party
agrees to give written notice to the other of any alleged defaults or breaches
of this Agreement by such other party and of any notices of defaults, suits,
actions or governmental proceedings relating to such other party's performance
under this Agreement. The party to which such written notice is given shall have
thirty (30) days to cure such default or breach ("the Cure Period"). If the
default or breach is not cured to the reasonable satisfaction of the notifying
party within the Cure Period, such party may terminate this Agreement forthwith
by giving written notice in accordance with A above, which notice shall be
effective upon receipt. C. The obligations of each party under this Agreement
shall survive the receipt of notice of termination as provided herein.
8. Following the termination of the Agreement for whatever reason PCP will
not for a period of twenty-four (24) months solicit the accounts of customers
introduced to LDDI for the purpose of providing them directly or indirectly with
other long distance telephone or voice mail services provided that commission on
all continuing xxxxxxxx to such customers is paid to PCP in accordance with the
provisions of paragraph 3 above. However, this provision shall not prohibit
PCP's
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solicitation of customers other than those customers previously introduced by
PCP to LDDI and currently served by LDDI at time of termination. Nothing in this
paragraph shall be construed to limit LDDI's obligation to pay the residual
income referred to above.
9. PCP may supply inserts to LDDI to be placed into LDDI's telephone
service bills sent to customers by LDDI each month. LDDI shall place such
inserts in its bills, provided that PCP shall be responsible for the costs of
providing such inserts to LDDI and shipping them to LDDI. LDDI agrees to print
marketing messages from PCP on the telephone service bills submitted by LDDI to
its customers. In the event that LDDI is charged a stuffing fee by the billing
company that it employs for inserts provided to it by PCP, LDDI may charge PCP
for such stuffing fee at cost. PCP acknowledges that the stuffing fee currently
charged by its billing company is at the rate of $0.07 per sheet inserted. LDDI
agrees to print marketing messages and written inserts from PCP not exceeding
six (6) lines in length on the telephone service bills submitted by LDDI to PCP
customers at no cost to PCP.
10. LDDI shall provide PCP with a script to market LDDI's services to
potential customers. LDDI shall make sure such script is in compliance with all
Federal, State, and Local laws, rules and regulation. PCP reserves the right to
approve or disapprove any such scripts. LDDI and PCP will arrange for their
respective customer service departments to undergo cross-training in respect of
the LDDI services to be marketed by PCP. LDDI will review any and all marketing
materials related to the provision of service pursuant to this Agreement with
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specific reference to compliance with applicable Federal and State laws and
local laws, rules and regulations if so requested by PCP.
11. LDDI shall be responsible for monitoring all telephone usage for
customers referred to it pursuant to this Agreement. PCP makes no
representations with respect to the willingness or ability to pay for telephone
usage of customers referred to LDDI, but shall not knowingly market LDDI's
services to any customers who have accounts which have been charged off by PCP.
12. Both during the term of this Agreement and following termination of
the agreement for whatever reason, LDDI will not market to customers referred by
PCP any non-long distance services other than those contemplated under this
Agreement without the express written consent of PCP.
13. It is hereby agreed that PCP shall have the right upon five business
days' notice and during regular business hours to audit at its own expense all
aspects of LDDI's activities relating to the performance of its obligations
hereunder including, without limitation, the handling of all revenue generated
from customers introduced to LDDI by PCP.
14. The terms of this contract and the information exchanged between the
parties in the normal course of business shall be strictly confidential and
neither LDDI nor PCP shall, save as required by law or statute, communicate any
details of, or in any way divulge, any information to any third party without
the prior written consent of the other party. Neither LDDI or PCP shall, during
the term of this Agreement or at any time thereafter, communicate, divulge or
use for the benefit of itself or any other person, partnership, association,
corporation or entity any
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confidential information, knowledge or know-how concerning the operation,
products, service, policies, procedures or customers related to LDDI or PCP.
15. This Agreement shall be binding on the parties and their respective
successors and assigns but neither party shall have the power to assign any of
its rights and obligations under the Agreement (except for assignments to the
parent corporation of such party or to any subsidiary or affiliate of such
parent) without the prior written consent of the other party which shall not be
unreasonably withheld.
16. This Agreement contains the entire agreement between LDDI and PCP,
supersedes any and all prior and/or contemporaneous agreements, representations,
and understandings of the parties, whether written or oral relating to the
subject matter hereof.
17. If any provision or term of this Agreement or its application to any
entity or circumstance shall be held by a court of competent jurisdiction to be
invalid or unenforceable, the remainder of this Agreement shall not be affected,
and each provision of this Agreement shall be enforced to the fullest extent
permitted by law. The parties expressly acknowledge and represent that they have
had a full and fair opportunity to retain independent counsel and are not
relying upon the advice of professional persons, or firms retained by the other
party. Furthermore, the parties acknowledge and agree that this agreement shall
not be construed against the drafter as each party has had a full and fair
opportunity to contribute to the drafting of this Agreement.
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18. No failure to exercise, and no delay in exercising any right, power or
privilege hereunder shall operate as a waiver thereof. No waiver of any breach
of any provisions shall be deemed to be a waiver of any preceding or succeeding
breach of the same or any other provision. No extension of time or performances
of any obligations or other acts hereunder shall be deemed to be an extension of
time for performance of any other obligation or any other act hereunder.
19. The parties to this Agreement understand and agree that this Agreement
may not be altered, amended, modified or otherwise changed in any respect or
particular whatsoever except by a writing duly executed by the parties and/or
their duly authorized representatives.
20. This Agreement shall not become binding upon the parties hereto until
it has been signed by the duly authorized officers of both parties. This
Agreement may be signed in counterpart.
21. The term of this Agreement shall be automatically extended for
successive one year periods unless one party shall give notice to the other at
least ninety (90) days prior to then current expiration date of the term of its
intention not to extend the term.
/s/ [Illegible] /s/ [Illegible] 2/13/98
----------------------------------- ------------------------------------
Long Distance Direct Holdings, Inc. Popular Club Plan, Inc.
SVP - Marketing
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SCHEDULE A.1
TELECOMMUNICATIONS SERVICES, RATES AND FEES
1. Usage Rates. LDDI shall charge customers introduced by PCP the following
rates for all usage and in respect thereof PCP shall be entitled to
receive as a commission the percentage on such rates (GP%) shown against
each such rate. In the period from April, 1998 through March, 1999 all
percentages referred to hereunder shall be increased by one percentage
point.
a. Switched 1 + and 800:
(1) Interstate: Interstate usage shall be charged at the following
rates:
Residential outbound: $0.109 per minute (GP% = 20%)
Residential inbound: $0.129 per minute (GP% = 20%)
(2) Intrastate outbound: Intrastate outbound usage shall be
charged based on the rates set out in Schedule A.1(a)
(3) Intrastate inbound: Intrastate inbound usage shall be charged
based on the rates set out in Schedule A.1(b)
(4) International: International usage shall be charged based on
the rates set out in Schedule A.1(c)
(5) Off-Shore (Alaska, US Virgin Islands and Puerto Rico):
$0.25 per minute (GP% = 20%).
(6) Domestic Directory Assistance: $0.95 per call (GP% = 20%)
(b) Calling Card
(1) Interstate: $0.08 plus the applicable interstate switched rate
as determined pursuant to the terms set forth in Section
1.a.(1) of this Exhibit 1.1 (GP% = 20%), plus a per call
charge of $0.25 (GP on per call charge = 20%).
(2) Intrastate: $0.08 per minute plus the applicable intrastate
switched rate as determined pursuant to the terms set forth in
Section 1.a.(2) of this Exhibit 1.1, plus a per call
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charge of $0.25 (GP% on rates as per relevant Schedule; GP% on
per call charge = 20%).
(3) International: $0.08 plus the international switched rates as
determined pursuant to the terms set forth in Section 1.a.(4)
of this Exhibit 1.1, plus a per call charge of $1.50 (GP% on
rates as per relevant Schedule; GP% on per call charge = 20%).
(4) Off-Shore (Alaska, US Virgin Islands and Puerto Rico): $0.35
per minute (GP% = 20%) plus a per call charge of $0.35 (GP% on
rates as per relevant Schedule; GP% on per call charge = 20%).
(5) Directory Assistance: $0.95 per call (GP% = 20%)%) plus a per
call charge of $0.25 (GP% on charge and on per call charge =
20%).
c. Connection Card - Special Feature Rates
*0 = Operator Services
$0.95 = Directory Assistance (domestic) inc. Puerto Rico and
U.S.V.I.
$1.00 = Directory Assistance in Canada
$6.94 = International Directory Assistance List A
$7.94 = International Directory Assistance List B
$0.75 = Direct Connect/Station-to-Station
$3.50 = Direct Connect/Station-to-Station
** International List A Includes Bermuda, country code 809 and the
following countries:
Australia
Austria
Finland
France
Germany
00
00
Xxxxxx
Xxx Xxxxxxx
Xxxxxxxxxxx
Xxxxx
Switzerland
United Kingdom
** International List B includes all other international countries
*1 = Voice News Network:
$0.29/minute
*2 = Conference Calling:
$2.50 set up fee (per participant, other than customer)
Usage rates per bridgeport:
Weekday Weekend
------- -------
Domestic calls: $0.45 $0.25
Calls to Canada: $0.85 $0.65
Calls to Mexico $0.90 $0.70
Calls to Int'l locations (except Canada and Mexico)
The rate period and rates specified in Sections C-3.072 and C-3.073,
respectively, will apply (Tariff FCC No. 1).
Weekday is defined as Mon 12:00 a.m. CST to Fri 11:59 p.m. CST
Weekend is defined as 12:00 a.m. CST Saturday through 11:59 p.m. CST
Sunday.
*4 =Message Store & Forward
MESSAGE TYPE FEATURE ORIG TERM RATE P/MIN
------------ ------- ---- ---- ----------
Message to 50 US States *41 Domestic Domestic $ 1.75
Zone 1 & 2 Domestic $ 5.50
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Message to Can/PR/USVI *42 Domestic Zone 1 $ 2.00
Zone 1 & 2 Domestic $ 5.50
Message to Int'l/Mexico *43 Domestic Zone 2 $ 5.00
Zone 1 & 2 Domestic $ 8.50
Broadcast-Up to 5 *44 Domestic Domestic $ 7.00
Zone 1 & 2 Domestic $ 7.50
Broadcast-Up to 10 *45 Domestic Domestic $13.00
Zone 1 & 2 Domestic $25.00
Broadcast-Up to 20 *46 Domestic Domestic $23.00
Zone 1 & 2 Domestic $50.00
Message Status *47 Domestic N/A NO CHGE
Xxxx 0 & 0 X/X XX XXXX
XXX: Domestic = 50 US States
Zone 1 = Canada, PR, USVI
Zone 2 = All international locations + Mexico
*9 = Speed dialing:
No charge
GP% on all above = 20%
2. Miscellaneous Charges: All other direct charges not otherwise listed
herein imposed by an underlying carrier, LEC or other third party as a
result of the activity under this Agreement, including, but not limited
to, fines and PIC dispute charges, shall be billed directly to PCP Where
such fines or PIC dispute charges are (i) not recovered from the customer
and (ii) incurred as a result of negligence or wilful default on the part
of PCP. PCP shall not be responsible for access charges and transport fees
incurred by LDDI.
THIS EXHIBIT MAY BE AMENDED FROM TIME TO TIME TO REFLECT RATE
CHANGES AND ADDITIONAL SERVICES IN ACCORDANCE WITH SECTION 19 OF
THIS AGREEMENT.
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LDDI/PCP INTRASTATE RATES
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OUTBOUND
---------------------------
PCP CUSTOMER GP% SCHEDULE A.1(a)
----------------------------------------
----------------------------------------
ALA 0.0952 0.1190 20.00
----------------------------------------
ARIZ 0.1512 0.1890 20.00
----------------------------------------
ARK 0.1512 0.1890 20.00
----------------------------------------
CA 0.0712 0.0890 20.00
----------------------------------------
COL 0.1912 0.2390 20.00
----------------------------------------
CONN 0.1032 0.1290 20.00
----------------------------------------
DEL 0.0872 0.1090 20.00
----------------------------------------
FLA 0.1432 0.1790 20.00
----------------------------------------
GA 0.0952 0.1190 20.00
----------------------------------------
HAWAII 0.2000 0.2500 20.00
----------------------------------------
IDAHO 0.1912 0.2390 20.00
----------------------------------------
IL 0.0952 0.1190 20.00
----------------------------------------
IND 0.1112 0.1390 20.00
----------------------------------------
IOWA 0.1672 0.2090 20.00
----------------------------------------
KAN 0.1992 0.2490 20.00
----------------------------------------
KENT 0.1672 0.2090 20.00
----------------------------------------
LA 0.1192 0.1490 20.00
----------------------------------------
ME 0.3992 0.4990 20.00
----------------------------------------
MD 0.1272 0.1590 20.00
----------------------------------------
MA 0.1032 0.1290 20.00
----------------------------------------
MICH 0.1192 0.1490 20.00
----------------------------------------
MINN 0.1592 0.1990 20.00
----------------------------------------
MISS 0.1352 0.1690 20.00
----------------------------------------
MO 0.2152 0.2690 20.00
----------------------------------------
MONT 0.1672 0.2090 20.00
----------------------------------------
NEB 0.2232 0.2790 20.00
----------------------------------------
NEV 0.1032 0.1290 20.00
----------------------------------------
NH 0.1672 0.2090 20.00
----------------------------------------
NJ 0.1192 0.1490 20.00
----------------------------------------
NM 0.1912 0.2390 20.00
----------------------------------------
NY 0.1512 0.1890 20.00
----------------------------------------
NC 0.1752 0.2190 20.00
----------------------------------------
ND 0.1992 0.2490 20.00
----------------------------------------
OH 0.1032 0.1290 20.00
----------------------------------------
OK 0.1352 0.1690 20.00
----------------------------------------
ORE 0.1272 0.1590 20.00
----------------------------------------
PA 0.1432 0.1790 20.00
----------------------------------------
RI 0.1592 0.1990 20.00
----------------------------------------
SC 0.1512 0.1890 20.00
----------------------------------------
SD 0.2152 0.2690 20.00
----------------------------------------
TENN 0.1672 0.2090 20.00
----------------------------------------
TX 0.1752 0.2190 20.00
----------------------------------------
UTAH 0.1352 0.1690 20.00
----------------------------------------
VT 0.1752 0.2190 20.00
----------------------------------------
VA 0.1592 0.1990 20.00
----------------------------------------
WASH 0.1672 0.2090 20.00
----------------------------------------
WV 0.1672 0.2090 20.00
----------------------------------------
WIS 0.1272 0.1590 20.00
----------------------------------------
WY 0.1832 0.2290 20.00
----------------------------------------
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-------------------------------------------
INTRASTATE
-------------------------------------------
INBOUND INBOUND
-------------------------------------------
LDDI PCP GP% CUSTOMER GP% SCHEDULE A.1(b)
--------------------------------------------------------
--------------------------------------------------------
ALA 0.0876 0.1112 16.98 0.1390 20.00
--------------------------------------------------------
ARIZ 0.1359 0.1752 17.94 0.2190 20.00
--------------------------------------------------------
ARK 0.1172 0.1512 17.99 0.1890 20.00
--------------------------------------------------------
CA 0.0625 0.0792 16.89 0.0990 20.00
--------------------------------------------------------
COL 0.1720 0.2152 16.08 0.2690 20.00
--------------------------------------------------------
CONN 0.0952 0.1192 16.11 0.1490 20.00
--------------------------------------------------------
DEL 0.0624 0.0792 16.97 0.0990 20.00
--------------------------------------------------------
FLA 0.1304 0.1592 14.47 0.1990 20.00
--------------------------------------------------------
GA 0.0808 0.1032 17.36 0.1290 20.00
--------------------------------------------------------
HAWAII 0.1675 0.2072 15.32 0.2590 20.00
--------------------------------------------------------
IDAHO 0.1665 0.2072 15.72 0.2590 20.00
--------------------------------------------------------
IL 0.0816 0.1032 16.74 0.1290 20.00
--------------------------------------------------------
IND 0.0980 0.1192 14.23 0.1490 20.00
--------------------------------------------------------
IOWA 0.1508 0.1912 16.90 0.2390 20.00
--------------------------------------------------------
KAN 0.1820 0.2312 17.02 0.2890 20.00
--------------------------------------------------------
KENT 0.1520 0.1912 16.40 0.2390 20.00
--------------------------------------------------------
LA 0.0864 0.1112 17.84 0.1390 20.00
--------------------------------------------------------
ME 0.4040 0.4792 12.55 0.5990 20.00
--------------------------------------------------------
MD 0.1098 0.1352 15.15 0.1690 20.00
--------------------------------------------------------
MA 0.0832 0.1032 15.50 0.1290 20.00
--------------------------------------------------------
MICH 0.0932 0.1192 17.45 0.1490 20.00
--------------------------------------------------------
MINN 0.1388 0.1752 16.62 0.2190 20.00
--------------------------------------------------------
MISS 0.0976 0.1192 14.50 0.1490 20.00
--------------------------------------------------------
MO 0.1940 0.2392 15.12 0.2990 20.00
--------------------------------------------------------
MONT 0.1420 0.1752 15.16 0.2190 20.00
--------------------------------------------------------
NEB 0.2068 0.2552 15.17 0.3190 20.00
--------------------------------------------------------
NEV 0.0776 0.0952 14.79 0.1190 20.00
--------------------------------------------------------
NH 0.1512 0.1912 16.74 0.2390 20.00
--------------------------------------------------------
NJ 0.0995 0.1272 17.41 0.1590 20.00
--------------------------------------------------------
NM 0.1704 0.2152 16.65 0.2690 20.00
--------------------------------------------------------
NY 0.1350 0.1672 15.39 0.2090 20.00
--------------------------------------------------------
NC 0.1556 0.1992 17.51 0.2490 20.00
--------------------------------------------------------
ND 0.1804 0.2232 15.34 0.2790 20.00
--------------------------------------------------------
OH 0.0952 0.1192 16.11 0.1490 20.00
--------------------------------------------------------
OK 0.1300 0.1592 14.67 0.1990 20.00
--------------------------------------------------------
ORE 0.1152 0.1432 15.64 0.1790 20.00
--------------------------------------------------------
PA 0.1269 0.1592 16.24 0.1990 20.00
--------------------------------------------------------
RI 0.1532 0.1912 15.90 0.2390 20.00
--------------------------------------------------------
SC 0.1320 0.1672 16.84 0.2090 20.00
--------------------------------------------------------
SD 0.1880 0.2312 14.95 0.2890 20.00
--------------------------------------------------------
TENN 0.1476 0.1832 15.55 0.2290 20.00
--------------------------------------------------------
TX 0.1615 0.1992 15.13 0.2490 20.00
--------------------------------------------------------
UTAH 0.1136 0.1432 16.54 0.1790 20.00
--------------------------------------------------------
VT 0.1588 0.1992 16.22 0.2490 20.00
--------------------------------------------------------
VA 0.1520 0.1912 16.40 0.2390 20.00
--------------------------------------------------------
WASH 0.1496 0.1912 17.41 0.2390 20.00
--------------------------------------------------------
WV 0.1120 0.1432 17.43 0.1790 20.00
--------------------------------------------------------
WIS 0.0916 0.1112 14.10 0.1390 20.00
--------------------------------------------------------
WY 0.1392 0.1752 16.44 0.2190 20.00
--------------------------------------------------------
18
---------------------------
LDDI/PCP INTRASTATE RATES
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INBOUND
---------------------------
PCP CUSTOMER GP% SCHEDULE A.1(b)
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-----------------------------------------
ALA 0.1112 0.1390 20.00
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ARIZ 0.1752 0.2190 20.00
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ARK 0.1512 0.1890 20.00
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CA 0.0792 0.0990 20.00
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COL 0.2152 0.2690 20.00
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CONN 0.1192 0.1490 20.00
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DEL 0.0792 0.0990 20.00
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FLA 0.1592 0.1990 20.00
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GA 0.1032 0.1290 20.00
-----------------------------------------
HAWAII 0.2072 0.2590 20.00
-----------------------------------------
IDAHO 0.2072 0.2590 20.00
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IL 0.1032 0.1290 20.00
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IND 0.1192 0.1490 20.00
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IOWA 0.1912 0.2390 20.00
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KAN 0.2312 0.2890 20.00
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KENT 0.1912 0.2390 20.00
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LA 0.1112 0.1390 20.00
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ME 0.4792 0.5990 20.00
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MD 0.1352 0.1690 20.00
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MA 0.1032 0.1290 20.00
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MICH 0.1192 0.1490 20.00
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MINN 0.1752 0.2190 20.00
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MISS 0.1192 0.1490 20.00
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MO 0.2392 0.2990 20.00
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MONT 0.1752 0.2190 20.00
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NEB 0.2552 0.3190 20.00
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NEV 0.0952 0.1190 20.00
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NH 0.1912 0.2390 20.00
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NJ 0.1272 0.1590 20.00
-----------------------------------------
NM 0.2152 0.2690 20.00
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NY 0.1672 0.2090 20.00
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NC 0.1992 0.2490 20.00
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ND 0.2232 0.2790 20.00
-----------------------------------------
OH 0.1192 0.1490 20.00
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OK 0.1592 0.1990 20.00
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ORE 0.1432 0.1790 20.00
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PA 0.1592 0.1990 20.00
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RI 0.1912 0.2390 20.00
-----------------------------------------
SC 0.1672 0.2090 20.00
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SD 0.2312 0.2890 20.00
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TENN 0.1832 0.2290 20.00
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TX 0.1992 0.2490 20.00
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UTAH 0.1432 0.1790 20.00
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VT 0.1992 0.2490 20.00
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VA 0.1912 0.2390 20.00
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WASH 0.1912 0.2390 20.00
-----------------------------------------
WV 0.1432 0.1790 20.00
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WIS 0.1112 0.1390 20.00
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WY 0.1752 0.2190 20.00
-----------------------------------------
19
LDDI/PCP RATES
INTERNATIONAL TRAFFIC - SWITCHED SCHEDULE A.1(C)
PCP GP % CUSTOMER
AFGHANISTAN 2.4400 20.00 3.05
ALBANIA 2.6400 20.00 3.30
ALGERIA 1.5200 20.00 1.90
AMERICAN SAMOA 1.7280 20.00 2.16
ANDORRA 0.7600 20.00 0.95
ANGOLA 2.2960 20.00 2.87
ANGUILLA 0.8560 20.00 1.07
ANTARCTICA - XXXXX 3.4000 20.00 4.25
ANTARCTICA - XXXXX 2.8720 20.00 3.59
ANTIGUA 0.8240 20.00 1.03
ARGENTINA 0.8400 20.00 1.05
ARMENIA 2.0000 20.00 2.50
ARUBA 0.9280 20.00 1.16
ASCENSION ISLANDS 1.9200 20.00 2.40
AUSTRALIA 0.2800 20.00 0.35
AUSTRIA 0.7840 20.00 0.98
AZERBAIJAN 2.0000 20.00 2.50
BAHAMAS 0.5040 20.00 0.63
BAHRAIN 1.4320 20.00 1.79
BANGLADESH 2.0720 20.00 2.59
BARBADOS 0.9280 20.00 1.16
BELARUS 2.0000 20.00 2.50
BELGIUM 0.4160 20.00 0.52
BELIZE 1.3600 20.00 1.70
BENIN 1.4960 20.00 1.87
BERMUDA 0.6400 20.00 0.80
BHUTAN 3.1680 20.00 3.96
XXXXXXX 0.0000 00.00 0.00
XXXXXX & XXXXXXXXXXX 1.3600 20.00 1.70
BOTSWANA 1.5600 20.00 1.95
BRAZIL 0.7200 20.00 0.90
BRITISH VIRGIN ISLANDS 0.8560 20.00 1.07
BRUNEI 1.8640 20.00 2.33
BULGARIA 1.4000 20.00 1.75
BURKINA FASO 2.0800 20.00 2.60
BURMA/MYANMAR 2.6960 20.00 3.37
BURUNDI 2.7360 20.00 3.42
CAMBODIA 2.2240 20.00 2.78
CAMEROON 1.4320 20.00 1.79
CANADA 0.2000 20.00 0.25
CAPE VERDE IS. 1.7920 20.00 2.24
CAYMAN IS. 0.8400 20.00 1.05
CENTRAL AFRICAN REP. 3.3600 20.00 4.20
00
XXXX XXXXXXXX 3.4800 20.00 4.35
CHILE 0.9280 20.00 1.16
CHINA 1.1600 20.00 1.45
CHRISTMAS ISLAND 2.8720 20.00 3.59
COCOS-XXXXXXX ISLAND 1.7520 20.00 2.19
COLOMBIA 1.0000 20.00 1.25
CONGO 2.2800 20.00 2.85
XXXX ISLANDS 3.5200 20.00 4.40
COSTA RICA 0.8560 20.00 1.07
COTE D'IVOIRE 2.1200 20.00 2.65
CROATIA 1.2160 20.00 1.52
CUBA 2.3600 20.00 2.95
CYPRUS 1.2160 20.00 1.52
CZECH REPUBLIC 1.1440 20.00 1.43
DENMARK 0.4080 20.00 0.51
XXXXX XXXXXX 2.6480 20.00 3.31
DJIBOUTI. 2.2000 20.00 2.75
DOMINICA 1.0000 20.00 1.25
XXXXXXXXX XXXXXXXX 0.0000 00.00 0.00
XXXXXXX 0.9280 20.00 1.16
EGYPT 1.0800 20.00 1.35
EL SALVADOR 0.9280 20.00 1.16
EQUATORIAL GUINEA 3.5280 20.00 4.41
ERITREA 2.3360 20.00 2.92
ESTONIA 2.0000 20.00 2.50
ETHIOPIA 1.8160 20.00 2.27
FAEROE ISLANDS 1.3600 20.00 1.70
FALKLAND ISLANDS 2.8320 20.00 3.54
FIJI 2.1520 20.00 2.69
FINLAND 0.7120 20.00 0.89
FRANCE 0.2560 20.00 0.32
FRENCH ANTILLES 1.2000 20.00 1.50
FRENCH GUINEA 1.4800 20.00 1.85
FRENCH POLYNESIA 2.0400 20.00 2.55
GABON REPUBLIC 1.7200 20.00 2.15
GAMBIA 1.3600 20.00 1.70
GEORGIA, REPUBLIC OF 2.0000 20.00 2.50
GERMANY 0.2560 20.00 0.32
GHANA 1.0800 20.00 1.35
GIBRALTAR 1.4320 20.00 1.79
XXXXXXX ISLAND 1.8640 20.00 2.33
GREECE 0.7200 20.00 0.90
GREENLAND 1.4000 20.00 1.75
GRENADA 1.1440 20.00 1.43
GUADALOUPE 1.0160 20.00 1.27
GUAM 1.1440 20.00 1.43
GUATEMALA 0.8640 20.00 1.08
GUINEA 2.1600 20.00 2.70
GUINEA BISSAU 3.0800 20.00 3.85
21
GUYANA 1.7920 20.00 2.24
HAITI 0.9280 20.00 1.16
HONDURAS 0.9280 20.00 1.16
HONG KONG 0.5920 20.00 0.74
HUNGARY 1.0000 20.00 1.25
ICELAND 0.9280 20.00 1.16
INDIA 1.0800 20.00 1.35
INDONESIA 1.5760 20.00 1.97
INMARSAT ATLANTIC OCEAN 11.9040 20.00 14.88
INMARSAT INDIAN OCEAN 11.9040 20.00 14.88
INMARSAT PACIFIC OCEAN 11.9200 20.00 14.90
INMARSAT WEST ATLANTIC 11.9040 20.00 14.88
IRAN 1.8640 20.00 2.33
IRAQ 1.6480 20.00 2.06
IRELAND 0.7920 20.00 0.99
ISRAEL 0.7760 20.00 0.97
ITALY 0.4000 20.00 0.50
IVORY COAST 1.5120 20.00 1.89
JAMAICA 0.8560 20.00 1.07
JAPAN 0.4400 20.00 0.55
JORDAN 1.4320 20.00 1.79
KAZAKHSTAN 2.0000 20.00 2.50
KENYA 1.4320 20.00 1.79
KIRIBATI 3.3600 20.00 4.20
KUWAIT 1.2880 20.00 1.61
KYRGYZSTAN 2.0000 20.00 2.50
LAOS 3.9600 20.00 4.95
LATVIA 1.9360 20.00 2.42
LEBANON 1.5760 20.00 1.97
LESOTHO 1.5760 20.00 1.97
LIBERIA 1.5120 20.00 1.89
LIBYA 2.0880 20.00 2.61
LIECHSTENSTEIN 0.7840 20.00 0.98
LITHUANIA 2.0000 20.00 2.50
LUXEMBOURG 0.8560 20.00 1.07
MACAO 1.8800 20.00 2.35
MACEDONIA, REPUBLIC OF 1.6240 20.00 2.03
MADAGASCAR 3.7200 20.00 4.65
MALAWI 1.5040 20.00 1.88
MALAYSIA 1.4320 20.00 1.79
MALDIVES 3.0000 20.00 3.75
MALI 2.1520 20.00 2.69
MALTA 1.5760 20.00 1.97
XXXXXXXX ISLANDS 1.9200 20.00 2.40
MAURETANIA 2.5200 20.00 3.15
MAURITIUS 2.3840 20.00 2.98
MAYOTTE ISLANDS 3.1440 20.00 3.93
MICRONESIA 2.1520 20.00 2.69
XXXXXXX 0.0000 20.00 2.50
22
MONACO 0.6800 20.00 0.85
MONGOLIA 3.8000 20.00 4.75
MONTSERRAT 1.0720 20.00 1.34
MOROCCO 1.2800 20.00 1.60
MOZAMBIQUE 2.0720 20.00 2.59
MYANMAR 3.2320 20.00 4.04
NAMIBIA 1.5840 20.00 1.98
NAURU ISLANDS 3.8800 20.00 4.85
NEPAL 2.2000 20.00 2.75
NETHERLANDS 0.3040 20.00 0.38
NETHERLANDS ANTILLES 0.5440 20.00 0.68
NEVIS 1.0000 20.00 1.25
NEW CALEDONIA 1.7200 20.00 2.15
NEW ZEALAND 1.0720 20.00 1.34
NICARAGUA 1.3600 20.00 1.70
NIGER REPUBLIC 2.1200 20.00 2.65
NIGERIA 1.4320 20.00 1.79
NIUE 3.4880 20.00 4.36
NORFOLK ISLANDS 3.1360 20.00 3.92
NORTH KOREA 3.8800 20.00 4.85
NORWAY 0.8560 20.00 1.07
OMAN 2.0080 20.00 2.51
PAKISTAN 1.6480 20.00 2.06
PALAU 2.4640 20.00 3.08
PANAMA 0.8560 20.00 1.07
PAPUA NEW GUINEA 1.7040 20.00 2.13
PARAGUAY 1.5040 20.00 1.88
PERU 0.9280 20.00 1.16
PHILIPPINES 0.7840 20.00 0.98
POLAND 0.5600 20.00 0.70
PORTUGAL 0.9280 20.00 1.16
QATAR 1.3760 20.00 1.72
REUNION ISLANDS 2.1520 20.00 2.69
ROMANIA 1.8640 20.00 2.33
RUSSIA 1.1600 20.00 1.45
RWANDA 2.2000 20.00 2.75
SAIPAN 2.0320 20.00 2.54
SAN MARINO 1.0160 20.00 1.27
SAO TOME 2.1520 20.00 2.69
SAUDI ARABIA 1.2000 20.00 1.50
SENEGAL REPUBLIC 1.7840 20.00 2.23
SEYCHELLES ISLANDS 2.6080 20.00 3.26
SIERRA LEONE 2.1520 20.00 2.69
SINGAPORE 0.5280 20.00 0.66
XXXXXXXX 0.0000 00.00 0.00
XXXXXXXX, XXXXXXXX OF 1.5600 20.00 1.95
SOLOMON ISLANDS 2.6880 20.00 3.36
SOMALIA 4.9520 20.00 6.19
SOUTH AFRICA 0.6400 20.00 0.80
00
XXXXX XXXXX 0.0000 00.00 0.00
XXX XXXXX 1.6480 20.00 2.06
ST. HELENA 2.6560 20.00 3.32
ST. KITTS 0.9280 20.00 1.16
ST. LUCIA 0.9280 20.00 1.16
ST. PIETRE & MIQUELON 0.8720 20.00 1.09
ST. XXXXXXX & GRENADINES 0.8640 20.00 1.08
SUDAN 2.9440 20.00 3.68
SURINAM 1.7920 20.00 2.24
SWAZILAND 1.5120 20.00 1.89
SWEDEN 0.2320 20.00 0.29
SWITZERLAND 0.2880 20.00 0.36
SYRIA 1.9360 20.00 2.42
TADZHIKISTAN 2.0000 20.00 2.50
TAIWAN 0.6320 20.00 0.79
TANZANIA 1.6480 20.00 2.06
THAILAND 1.5040 20.00 1.86
TOGO 1.7920 20.00 2.24
TONGA ISLANDS 2.2560 20.00 2.82
TRINIDAD AND TOBAGO 0.8880 20.00 1.11
TUNISIA 1.2400 20.00 1.55
TURKEY 1.2160 20.00 1.52
TURKMENISTAN 2.0000 20.00 2.50
TURKS & CAICOS ISLANDS 0.9280 20.00 1.16
TUVALU 4.1200 20.00 5.15
UGANDA 1.7200 20.00 2.15
UKRAINE 1.6560 20.00 2.07
UNITED ARAB EMIRATES 1.2720 20.00 1.59
UNITED KINGDOM 0.1840 20.00 0.23
URUGUAY 1.1440 20.00 1.43
UZBEKISTAN 2.0000 20.00 2.50
VANUATU 3.1040 20.00 3.88
VATICAN CITY 1.0000 20.00 1.25
VENEZUELA 0.6400 20.00 0.80
VIETNAM 1.6480 20.00 2.06
WALLIS & FUTUNA ISLANDS 2.6160 20.00 3.27
WESTERN SAMOA 1.8640 20.00 2.33
YEMEN ARAB REPUBLIC 1.2880 20.00 1.61
YUGOSLAVIA, REPUBLIC OF 1.5040 20.00 1.88
ZAIRE 1.3760 20.00 1.72
ZAMBIA 1.4320 20.00 1.79
ZIMBABWE 1.3600 20.00 1.70
ZANZIBAR 1.5760 20.00 1.97
Average GP % (unweighted) 20.00
24
PCP GP% CUSTOMER
Mexico Switched to Switched
---------------------------
1 0.2800 20.00 0.35
2 0.3280 20.00 0.41
3 0.4160 20.00 0.52
4 0.5200 20.00 0.65
5 0.5920 20.00 0.74
6 0.7600 20.00 0.95
7 0.9200 20.00 1.15
8 0.9920 20.00 1.24
Average GP% (unweighted) 20.00
Those ranges reflect the distance from the Mexican border to the destination in
Mexico.
25
SCHEDULE A.2
SUPPORT SERVICES
1. Provisioning. Upon the receipt of complete and accurate information from PCP,
LDDI shall take the necessary steps to provision a customer on to LDDI's
service. Orders rejected by the LEC require substantial manual intervention and
work. LDDI will make a reasonable attempt to resolve the rejected order to
provision the requested services.
2. Billing. At its own expense, LDDI shall directly xxxx the customers by
printing, stuffing, sorting and mailing the invoices to the customers. Customer
invoices shall include PCP's logo and a statement that the service is provided
by LDDI.
3. Calling Card Fulfilment: Provider shall provide two (2) calling cards to each
customer at no charge to PCP, if so requested by PCP.
4. Customer Service. LDDI shall provide direct customer service to the customers
through an inbound 800/888 number unique to PCP. LDDI will answer this customer
service number with a mutually agreed upon script which is branded with PCP's
name or a message identifying PCP's role herein. PCP shall promptly provide LDDI
with any customer information requested by LDDI that is necessary to answer
customer inquiries relating to LDDI services. LDDI's Customer Service
Representatives ("CSRs") shall have the authority to issue credit to customers.
CSRs shall also have the authority to make changes, additions and deletions to
customer accounts and to terminate customer accounts.
6. Miscellaneous: In the event that PCP requests that LDDI provide a service not
specifically described herein, LDDI shall charge a fee for such services to be
determined on a case-by-case basis.
16
26
THIS EXHIBIT MAY BE AMENDED FROM TIME TO TIME TO REFLECT RATE CHANGES AND
ADDITIONAL SERVICES IN ACCORDANCE WITH SECTION 19 OF THIS AGREEMENT.
SCHEDULE B
RATES TO BE AGREED BY ADDENDUM
17
27
SCHEDULE C
RATES TO BE AGREED BY ADDENDUM
18
28
SCHEDULE D
RATES TO BE AGREED BY ADDENDUM
19
