MCI WORLDCOM
AGREEMENT ("AGREEMENT") REGARDING
SECURITY DEPOSIT AND DISCLOSURES
1. The service contract (the "Service Agreement") between ("Customer") and
WorldCom, Inc. ("WorldCom") stipulated and agreed to an estimated
monthly service usage ("EMU") of **********. Based on the agreed EMU,
WorldCom agreed to grant a total credit limit of twice the EMU dollars
to avoid future over-limit violations and to allow Customer limited
variation from the EMU.
2. Usage limitations are assigned to each WorldCom commercial account
based on an extensive credit investigation and evaluation of each
customer's financial soundness and creditworthiness. This procedure is
made possible through credit documents sent to WorldCom's credit
department (the "Credit Department") at the time for the initial
application for service. If Customer is desirous of a credit limit in
excess of the present approved limit, Customer should submit, as son as
possible, a current financial statement, profit and loss statement,
last three years corporate tax returns and other financial information
that will assist the Credit Department in a new credit evaluation.
Please state in written form on Customer letterhead, signed by an
authorized corporate officer, the amount of credit limit increase that
Customer is requesting. Customer's request will be given priority
status upon receipt. Please direct all Deposit payments, credit limit
increase requests, and new financial information to:
WorldCom
Mail Drop 5.3-527E
0000 X. Xxxxxxxx Xxxxxx
Xxxxx, XX 00000
3. WorldCom is in receipt of deposit ("Deposit") in the amount of
**********, representing two (2) times Customer's EMU. The Deposit will
be held, as security for any and all amounts owed, now or in the
future, by Customer to WorldCom.
4. The Deposit will be held for a minimum of *** (**) months or ***
(**) billing cycles, whichever terminates later. The Company reserves
the right to apply the Deposit to satisfy delinquent invoices incurred
on Customer's account.
5. Payment terms shall be net ** days from the date of invoice. Customer's
account may not exceed the amount of the Deposit at any time. If
Customer's credit limit is exceeded at an y time during the term of the
Agreement, Customer's account must be paid down to * (*) of
the Deposit amount immediately when requested by WorldCom. Failure to
meet the above conditions of this Agreement without WorldCom's approval
will result in immediate termination of service.
6. To the extent permitted by applicable state law, WorldCom may, in its
sole discretion, request additional funds be provided to increase the
amount of the Deposit, in the event that the actual usage amount
exceeds the EMU, or if WorldCom reasonably requires under the
circumstances. WorldCom reserves the right to hold and apply Customer's
deposit if Customer does not perform according to the terms and
conditions of the Service Agreement.
*CONFIDENTIAL TREATMENT REQUESTED*
MATERIAL FILED SEPARATELY
MCI WORLDCOM
7. It is further understood that should any credits become due from
WorldCom to Customer for any billing errors, resolution of such errors
will be coordinated with Customer. However, these credits, if any, will
not affect the above agreed payment arrangement.
8. Upon receipt the Deposit will be held in an interest-bearing account
for a minimum of ** (**) months. After the ** (**) month
period, WorldCom will review Customer's financial position as well as
its WorldCom payment history. If circumstances warrant, the deposit and
all accrued interest will be refunded.
9. Interest on the funds represented by the Deposit will be paid as
required on a state by state basis, and at a rate set by each
individual state's Public Utility Commission or other applicable
governmental agency or entity. Interest is paid on a simple interest
basis using 365 days per year. Interest of **% will be paid when the
Deposit is no longer required.
10. To the extent permitted by applicable state law, funds will be held by
WorldCom's executive offices in Clinton, Mississippi. Should Customer
have any questions regarding the Deposit funds, please contact the
assigned WorldCom Account Executive or call the nearest WorldCom sales
office.
11. At WorldCom's sole and exclusive option, the Deposit may be refunded or
credited to the Customer at, or any time prior to, termination of
service. In that event, the Customer may elect to apply the Deposit to
future invoices or receive a payment of the Deposit amount. If any
balance is outstanding on the Customer's account at the time of
cancellation, WorldCom reserves the sole and exclusive right to apply
the Customer's Deposit and accumulated interest against the Customer's
unpaid balance.
*CONFIDENTIAL TREATMENT REQUESTED*
MATERIAL FILED SEPARATELY
WorldCom, Inc.
By: /s/ Xxxx Xxxxxx
-------------------
Name: Xxxx Xxxxxx
Title: Director
Date: July 19, 2000
Received, Understood and Agreed:
Customer: Inter-Call-Net Teleservices, Inc.
By: /s/ Xxxx Xxxxxxx
---------------------
Name: Xxxx Xxxxxxx
Title: COO
Date: July 19, 2000
MCI Worldcom
MCI WorldCom On-Net Service Agreement and Attachments A - G
*CONFIDENTIAL TREATMENT REQUESTED*
MATERIAL FILED SEPARATELY
