PART 2 - General Terms and Conditions 2nd Revised Sheet 17 SECTION 2 - Regulations

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1 PART 2 - General Terms and Conditions 2nd Revised Sheet 17 SECTION 2 - Regulations 2. RULE NO. 2 - DESCRIPTION OF SERVICE (cont'd) J. TOLL RESTRICTION Access lines equipped with Toll Restriction will prohibit the completion of the following types of calls: Message Telecommunication Service (a.k.a Local Plus), Interexchange Toll Service including PIC, 10XXX and 950 access, 900 /1/ and 700 calls, 0-, 0+ and 0++ originating calls, collect calls and third number billed calls. /2/ Access to the toll network is not allowed and the customer agrees not to access the toll network by other available means. Toll Restriction will only be provided to the following types of service: Residence Flat Rate Service /3/, Residence Measured Rate Service /3/, Universal Lifeline Telephone Service /3/ and single line business service. Customers will continue to have access to the following types of calls: Local calls, Zone 1 and 2 (1+ local calls), 800 calls, 411 (directory assistance), 611 (repair), and 911 (emergency service). Toll Restriction will be provided where facilities and operating conditions permit. The customer with Toll Restriction will be responsible for the payment of all completed calls as set forth in Schedule Cal.P.U.C. No. A Rendering and Payment of Bills. It is the responsibility of the customer to inform the Company of any failure of the service to perform as specified herein. K. PRODUCT GROUPING The Company may refer to groups of products and/or services by distinctive, collective phrase(s). These phrases will be used when discussing the Company's product line with customers and in advertisements. (Group names may not be included in Guidebook descriptions.) /1/ California 900 and California 976 services withdrawn effective November 1, /2/ Some calls originating from locations that do not have screening capabilities may not be intercepted and denied. These calls, e.g. International calls and calls that do not go through a billing validation /3/ See Schedule Cal. P.U.C. Nos. A5.2.2 and A5.2.5 and Guidebook Part 4, Section 2.

2 PART 2 - General Terms and Conditions 1st Revised Sheet 30 SECTION 8 - Promotional Service Offerings 2. GENERAL - BUSINESS (cont'd) B. Promotional Services (cont d) Promotional offerings shall include the following: (cont d)

3 PART 2 - General Terms and Conditions 1st Revised Sheet 37 SECTION 8 - Promotional Service Offerings 2. GENERAL - BUSINESS (cont'd) B. Promotional Services (cont d) Promotional offerings shall include the following: (cont d)

4 PART 4 - Exchange Access Services 1st Revised Sheet 90 SECTION 2 - Exchange Lines and Usage 5. METRO PLAN SM SERVICE (Cont d) C. REGULATIONS 1. Limitations of Service a. Person, collect, conference, third number billed, toll stations or any other calls requiring operator handling except as specified in 3., following, are not included and will be billed at the regular toll or ZUM rate schedule applicable to the type of call. b. Metro Plan SM may not be furnished to any residence exchange service (except Remote Call Forwarding service as specified in Guidebook, Part 7, Section 4) that is interconnected, physically, acoustically or by any other means to any other line, facilities or service at the customer's premises to extend a two-point connection beyond the originating station and called station location. c. The premises of a customer is that shown in Schedule Cal.P.U.C. No. A2.1, Premises. In the event the premises is located in more than one exchange, the premises will be considered as in the exchange in which the primary service is located. d. Metro Plan SM will not be furnished in connection with multiparty (operator identified) or any business service (except Centrex Dormitory service with billing arrangement Option "C" as specified in Guidebook, Part 5, Section 1 e. Metro Plan SM is limited to one plan per one-party residence service. The Service Area subscribed to by the customer must be the Service Area in which their residence service is served from. f. The Metro Plan SM cannot be added to foreign exchange services. g. Toll restricted access lines will not be eligible for Metro Plan SM service.

5 PART 4 - Exchange Access Services 1st Revised Sheet 7 SECTION 5 - Other Exchange Access Services 1. CONCESSION SERVICE (Cont'd) A. SERVICE TO EMPLOYEES (Cont'd) 5. Rates and Charges a. Bargained-for Plans - Concession Rates for each eligible bargained-for employee or retiree apply as follows: (1) Basic Residential Access Line and Installation: Monthly Discount /1/ Installation Discount Local Toll Credits /2/ Class A Concession /4,5/ 100% 100% $20.00 Class B Concession /3/ 100% 100% NO Class C Concession /3/ 50% 50% NO Class D Concession /3/ 100% 100% NO Class E Concession NO NO NO Class F Concession /7/ NO NO NO Class G Concession /4,7/ 100% 100% Class J Concession /4,7/ 50% 50% NO Class P Concession /6/ NO NO NO Class R Concession /6/ NO NO NO (2) Line Extension Charges: Line Extension Credit All Classes of Concession (except E and F /7/ ) $ Classes E and F /7/ Plans 0.00 /1/ Includes measured rate local usage, if applicable. /2/ Maximum amount. If the usage does not exceed the credit allowance, the customer will not be given credit for the unused portion. To receive this credit, the customer must choose the Utility as its Local Toll provider. /3/ Excludes ZUM Zone 3 minutes of use. /4/ Plus a reasonable amount of ZUM Zone 3 minutes of use. /5/ When there are two or more active or retired employees with these classes of service living in the same household and sharing a single telephone line, an additional toll allowance (up to the maximum amount) shall be provided. /6/ Effective June 30, 2005, Concession Classes P & R are no longer offered to retired employees who are eligible to enroll in the Employee@home Program. /7/ Effective June 30, 2005, Concession Classes F, G, & J are no longer offered to management retirees who retired on or after January 1, 1999 with a Class A, Class B or Class C concession immediately before retirement. These retirees are eligible to enroll in the Employee@home Program.

6 PART 6 - Central Office Services 1st Revised Sheet 91 SECTION 4 - Voice Mail Services 4 OTHER VOICE BASED INFORMATION SERVICES C. RATES NON-RECURRING MONTHLY CHARGE RATE 1. Pacific Bell Assistant /1,2/ (PBA) a. Standard $19.95 $39.95 b. Advanced c. Change Order - per order NO /1/ When using the PBA service, IntraLATA toll calls and applicable charges associated in the use of this service are provided by the Company. These intralata toll calls and charges will be billed separately by the Company. InterLATA services will be provided by an IEC selected by the customer. The IEC will determine how interlata call charges will be billed. For example, when utilizing paging, conferencing, call blast, call a contact, place a call and follow me features and it results in an intralata toll or interlata call, charges will be billed by the Company or the IEC carrier, respectively, as described above. For outbound calls from PBA, the rating of local calls will be different for the standalone versus the call forwarded version. For the stand alone service, calls will be rated from the Switch where the DID number resides. For the forwarded version, calls will be rated from the Switch where the customer s business line resides. Local calls placed by the customer from within the PBA service are included in the monthly charge for PBA. Calls other than local (i.e., intralata toll or interlata call) will be billed to the customer as described above. Usage charges will be incurred when accessing this service or forwarding to this service using a Company business service and are billed depending on which Company Business Service the customer has (business line usage rate or flat rate plus for business service). Usage minutes will apply to calls which are: 1. forwarded to the customer s mailbox (e.g., when callers leave a message); 2. transferred out of the customer s mailbox to an attendant; or 3. made from the customer s business to access PBA and throughout the duration of time within this service. /2/ This service is grandfathered effective November 8, 2000.

7 PART 6 - Central Office Services 2nd Revised Sheet 52 SECTION 7 - Digital Transport Services 2. ACCESS ADVANTAGE PLUS (cont d) H. ACCESS ADVANTAGE PLUS PACKAGES /1/ (cont d) 2. REGULATIONS (cont d) g. Person to person, collect, conference, third number billed toll station, or any other calls requiring operator handling are not included and will be billed at the applicable message toll rates. Only California Direct Dialed IntraLATA calls originating and terminating within the Company s Service Area are included. h. Three months prior to the end of the term, a letter will automatically be generated to alert the customer they are nearing the end of their term. At that time, the customer must select an option of either rolling over to another term of the same length or choose the alternate term. If the customer takes no action the current term will be automatically renewed for the same length. Customers will have a 60-day grace period after the new term begins to cancel the new term without incurring any penalties. i. If the customer elects to renew their term, the customer will receive a Loyalty Bonus credit after 60 days after the end of the grace period as set forth in B.8. preceding. j. At the expiration of the current term if the customer elects to renew their 24 month term or migrate from a 36 month term to a 24 month term they will receive a Loyalty Bonus credit of $500. Customers who renew their 36 month term or migrate from a 24 month term to a 36 month term will receive a Loyalty Bonus credit of $1,000. Renewal will be at the current tariffed rate. k. If the tariffed rates for Access Advantage Plus Packages or the Access Advantage Plus Packages options and connecting services decrease during the term, the customer will automatically receive the lower tariffed rate. If the rates increase, the current rates will be grandfathered for the duration of the term. l. Installation charges may be waived if an Access Advantage Plus Packages customer moves from one location to another location. In order to receive the waiver of installation charges, the customer must commit to a new 36 month term at the current rate. The new 36 month term starts when the service order for the change of address is completed. If the customer does not commit to a new 36 month term, they may elect to pay installation charges for their move and maintain the Access Advantage Plus Packages service for the remainder of the initial term. The customer must remain a retail customer of the Company and the new location must be within the Company s serving area where Access Advantage Plus Packages is technologically available. /1/ Effective October 11, 2013, customers may not establish new Access Advantage Plus Packages service, and existing term plans may not be renewed or extended.

8 PART 6 - Central Office Services 2nd Revised Sheet 54 SECTION 7 - Digital Transport Services 2. ACCESS ADVANTAGE PLUS (cont d) H. ACCESS ADVANTAGE PLUS PACKAGES /1/ (cont d) 3. EARLY TERMINATION FEE For term pricing plans discontinued prior to the end of their payment plan period, a Termination Fee will apply as follows: a. The term commitment remains in force when the account(s) are moved, superseded, billing name changed, or billing number(s) change. The new customer must agree to maintain the remainder of the current term or the outgoing customer will be charged the early termination fee. b. Customers may not switch to another Value Promise term calling plan or G.O.96-A Contract. If a customer chooses to switch to a different plan they will be subject to the early termination fee. c. With Access Advantage Plus Packages Usage Plan 1 the customers are required to bill a combined average of at least 1,000 MOU of IntraLATA Toll and/or Custom 8 minutes per month over the most recent three months to remain on the Access Advantage Plus Packages Plan. If the customer bills less then the required 1,000 MOU per month as stated above, the plan will be terminated and early termination fees will apply. d. With Access Advantage Plus Packages Usage Plan 2 the customer will be billed a minimum of $80.00 per month for IntraLATA Toll and/or Custom 8. This minimum charge is in lieu of the required level of MOU per month specified in 3. preceding for Usage Plan 1. e. If the customer receives a Loyalty Bonus and terminates their service prior to the end of the subsequent term commitment, they will be billed the full amount of the Loyalty Bonus received associated with the current term. f. Reserved /1/ Effective October 11, 2013, customers may not establish new Access Advantage Plus Packages service, and existing term plans may not be renewed or extended.

9 PART 6 - Central Office Services 2nd Revised Sheet 56 SECTION 7 - Digital Transport Services 2. ACCESS ADVANTAGE PLUS (cont d) H. ACCESS ADVANTAGE PLUS PACKAGES /1/ (cont d) 4. ACCESS ADVANTAGE PLUS PACKAGES USAGE PLAN Basic Description The Access Advantage Plus Packages Usage Plan consists of Local, ZUM Zone 3, IntraLATA Toll and Custom 8 usage. a. Local usage will be timed in full minute increments. ZUM Zone 3 and IntraLATA Toll usage will be timed in 1 second increments with a minimum of 18 seconds per message. Custom 8 usage will be billed in 1/1,000 of an hour increments. b. Customers who bill over 7,000 MOU monthly including at least 1,000 MOU of combined IntraLATA Toll, and/or Custom 8 will receive a per minute credit for a maximum of 500 minutes depending on actual use. Credit will be applied in arrears. c. If, in any month, the customer s usage exceeds 1,000 MOU of IntraLATA Toll, an additional 15% discount off the Guidebook rate will be automatically applied on that month s bill. d. If, in any month, the customer s usage exceeds 1,000 MOU of Custom 8, an additional 15% discount off the Guidebook rate will be automatically applied on that month s bill. e. If a customer has more lines or trunks than are included in their Access Advantage Plus Packages option (up to 24 channels) on the same Access Advantage Plus Transport, their usage may also be counted towards the 7,000 MOU threshold, as well as the 1,000 MOU threshold as described in 2. preceding. f. Access Advantage Plus Packages Usage cannot be included in any other the Company calling plan or G.O.96-A contract and other the Company calling plans cannot be included as part of the Access Advantage Plus Packages options. /1/ Effective October 11, 2013, customers may not establish new Access Advantage Plus Packages service, and existing term plans may not be renewed or extended.

10 PART 6 - Central Office Services 2nd Revised Sheet 60 SECTION 7 - Digital Transport Services 2. ACCESS ADVANTAGE PLUS (cont d) H. ACCESS ADVANTAGE PLUS PACKAGES /7/ (cont d) 5. RATES AND CHARGES (cont d) Non-Recurring Monthly Charge Rate Access Advantage Plus Packages Usage Plan 1 (minimum charge) NO NO Access Advantage Plus Packages Usage Plan 2 (minimum charge) NO $80.00 ACCESS ADVANTAGE PLUS PACKAGES USAGE PLANS /5/ Threshold MOU Local ZUM Zone 3 Threshold MOU IntraLATA Toll Threshold MOU Custom $0.014 $ $ $0.062 >7000 $0.014 $0.034 > % Discount > % Discount Add On Menu Lines and Features that can be added to options listed above. Non-Recurring Charge Monthly Rate AA+ Individual/Multi-Line Business Line /2/ RR /3/ RR /3/ AA+ Centrex Line /2, 6/ RR /3/ RR /3/ AA+ PBX Trunk /2, 4/ RR /3/ RR /3/ AA+ DID Trunks /2/ RR /3/ RR /3/ Centrex Classic Feature Package /1/ RR /3/ RR /3/ Hunting /1/ RR /3/ RR /3/ Custom 8 number on a business line termination /1/ RR /3/ RR /3/ Caller ID /1/ RR /3/ RR /3/ Voice Grade Service (VG 32,33 & 36) /1/ RR /3/ RR /3/ ADN /1/ RR /3/ RR /3/ /1/ See Guidebook, Part 4, Section 1 and Part 6 Section 9, and Schedule Cal.P.U.C. No T. /2/ See Guidebook Part 6, Section 7. /3/ Rates and charges for add-on lines and feature are set forth in Guidebook Part 4 Section 1, Part 6 Section 7, Part 6 Section 9 and Schedule Cal.P.U.C. No. 175-T. /4/ In-Only, Out-Only, or 2-Way Trunks. /5/ Monthly credits for Bonus minutes will be awarded if in any month a customer bills 7,000 MOU and a minimum of 1,000 of these are intralata toll, or Custom 8, credits will be awarded for any MOU between 7,000 and 7,499 at a weighted average rate of $0.021 per minute. /6/ Centrex System Establishment Charges still apply. /7/ Effective October 11, 2013, customers may not establish new Access Advantage Plus Packages service, and existing term plans may not be renewed or extended.

11 PART 7 - Central Office Optional Features 2nd Revised Sheet 11 SECTION 5 - Other Central Office Optional Features 4. LOCAL USAGE OPTIONAL CALLING PLANS FOR BUSINESS (cont d) C. REGULATIONS 1. Person, collect, conference, third number billed, toll stations or any other calls requiring operator handling except as specified in 15.b, following, are not included and will be billed at the regular toll or ZUM rate schedule applicable to the type of call. 2. These rates are applicable to the Local Usage Optional Calling plans only and do not apply to any other Company offered plans. 3. Local Usage Optional Calling plans are only available on BTNs billed to the customer of record. 4. Local Usage Optional Calling plans are not available on Basic 8, Easy 8, or Private Line Services. 5. Customers subscribing to another Optional Calling Plan that includes any Zone 1, 2 or 3 exchanges are ineligible for a Local Usage Optional Calling Plan. 6. Local Usage Optional Calling Plans may not be furnished to any individual business access line measured rate service (except Remote Call Forwarding Service as specified in Guidebook, Part 7, Section 4 that is interconnected, physically, acoustically or by any other means to any other line, facilities or service at the customer s premises to extend a two-point connection beyond the originating station and called station location. 7. The premises of a customer is that shown in Schedule Cal.P.U.C. No. A2.1, Premises. In the event the premises is located in more than one exchange, the premises will be considered as in the exchange in which the primary service is located. 8. Local Usage Optional Calling Plans will not be furnished in connection with multiparty (operator identified) service.

12 PART 7 - Central Office Optional Features Original Sheet 20 SECTION 5 - Other Central Office Optional Features 5. UNLIMITED LOCAL CALLING PLAN (Cont d) C. REGULATIONS 1. Limitations of Service a. Person, collect, conference, third number billed, toll stations or any other calls requiring operator handling except as specified in C.2.b.(3), following, are not included and will be billed at the regular toll or ZUM rate schedule applicable to the type of call. b. Unlimited Local Calling Plan may not be furnished to any business exchange service (except Remote Call Forwarding service as specified in Guidebook, Part 7, Section 4 that is interconnected, physically, acoustically or by any other means to any other line, facilities or service at the customer s premises to extend a two-point connection beyond the origination station and called station location. c. The premises of a customer is that shown in Schedule Cal.P.U.C. No. A2.1, Premises. In the event the premises is located in more than one exchange, the premises will be considered as in the exchange in which the primary service is located. d. Unlimited Local Calling Plan will not be furnished in connection with multi-party (operator identified) or any business service (except Centrex Dormitory service with billing arrangement Option C as specified in Guidebook, Part 8, Section 10. e. Customers must verbally commit to a minimum 12-month term commitment to purchase. f. In the event of early termination, customers will be charged an Early Termination Fee equal to 50% of the Monthly Recurring Charge (MRC) times the months remaining in the 12-month term. The per line MRC amount will be calculated based on the original number of lines on the BTN at the time the plan was initially ordered. g. If a customer exceeds their 12-month verbal commitment, the Unlimited Local Calling Plan will revert to a month-to-month agreement, and no Early Termination Fee will henceforth apply. h. Unlimited Local Calling Plan is only available on BTNs billed to the customer of record. i. The Unlimited Local Calling Plan cannot be added to foreign exchange services. (*) Also known as Local Toll.

13 PART 8 - Miscellaneous Services 2nd Revised Sheet 63 SECTION 2 - Call Restriction Services 4. LOCAL SERVICE OPTIONS (cont'd) C. TOLL BLOCKING 2 1. Description Toll Blocking will prohibit the completion of billable toll calls. Customers will continue to be able to complete the following types of calls: 411 (directory assistance), 611 (repair), 911 (emergency service) and 800 calls. Attempts to complete billable calls will be blocked. Customers subscribing to Toll Blocking will have the option of placing toll calls using the IEC s calling card, if calls are placed from lines that are not equipped with Toll Blocking. Customers subscribing to Toll Blocking will also have the option of accepting or rejecting collect and third number billed calls Regulations a. Toll Blocking is only available to customers with the following types of service: Residence Flat Rate Service, Residence Measured Rate Service, California LifeLine and single line business service. b. Toll Blocking will prohibit the completion of the following types of calls: Message Telecommunications Service (a.k.a. Local Plus), Interexchange Toll Service (including PIC), 10XXX, 950 access, 900, 700 service, 0-, 0+, 0++ originating calls, collect calls, and third number billed calls 1. c. Customers subscribing to Toll Blocking will continue to be able to complete the following types of calls: local calls (Zone 1 and 2), and 800 calls. Customers will continue to have access to 411, 611 and 911. d. Customer subscribing to Toll Blocking will be responsible for the payment of all completed calls as set forth in Schedule Cal.P.U.C. No. A e. Toll Blocking will be provided where facilities and operating conditions permit. /1/ Some calls originating from locations that do not have screening capabilities may not be intercepted and denied. These calls, e.g. International calls and calls that do not go through a billing validation data base will be billed to the customer if completed. /2/ Toll Blocking will not be available (implemented) until December 4,

14 PART 9 - Message Toll Services 1st Revised Sheet 1 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ A. GENERAL 1. Description A toll telephone message is a completed call or telephonic communication between two exchange stations located in different local service areas, between toll stations or between a toll station and an exchange station to which rates are applicable in accordance with the provisions of this Guidebook. 2. Regulations a. The toll service charges specified in this Guidebook are in payment for all service furnished between the calling and the called stations. b. Toll service is classified and rated as either: /2/ Dial station c. Regulations applicable to Sections A. thru D. following. Use of Service for Unlawful Purposes Operator station Operator person Legal requirements for refusal or discontinuance of service are set forth in Guidebook, Part 2, Section 2. d. The designated commercial credit cards, authorized by contract for use, are as follows: American Express (AE), Master Card, VISA, Carte Blanche and Diner's Club, JCB (Japanese Credit Bureau). /1/ Also known as Local Toll. /2/ Also see Guidebook, Part 11, Section 1.

15 PART 9 - Message Toll Services 1st Revised Sheet 6 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (5) Dial Station Service Dial station rates apply to: Sent-Paid messages dialed and completed by the customer from a residence, business or customer-owned pay (COPT) telephone without the assistance of a Company operator. Sent-Paid messages placed with the assistance of an operator where: - Dial completion facilities are not available. - Equipment or circuit conditions cause unsuccessful dial attempts. - The customers identify themselves as being handicapped and unable to dial. - The Company operator must identify the calling number where automatic recording equipment is not available. - The Company operator reestablishes the connection after a service failure on a customer dialed call. - The California Relay Service communication assistant completes a call between a TDD and a non-tdd telephone. - The customers are identified as being visually or physically impaired (mobility impaired) and they use a Company operator to make a local call (except COPT). /1/ Also known as Local Toll

16 PART 9 - Message Toll Services 1st Revised Sheet 7 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (6) Collection of Charges Charges (including messenger charges) for all classes of telephone calls are billed against or collected from the calling telephone number. However, upon request, calls between points within a LATA may be placed on a non sent-paid basis and toll charges may be: - Billed against or collected from the called telephone number, except a COPT telephone number (i.e., charges may be reversed) if the charges are accepted at the called station. - Billed against or collected from a third telephone number or account, except a COPT telephone number anywhere in the United States or Canada where such billing is accepted at the third telephone. - Exception - California Relay Service calls may only be billed to a third number within California. - Billed against another telephone company (credit) calling card account when the party requesting such billing is authorized to use such (credit) calling card. - Exception - California Relay Service calls may only be billed to a calling card issued within California. /1/ Also known as Local Toll.

17 PART 9 - Message Toll Services 1st Revised Sheet 8 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (7) Time of Day and Day of Week The rate applicable is determined by the day and time (standard or daylight savings) at the rate center of the calling station when the connection is established. (8) Initial Period and Additional Minutes and Rounding Rates are quoted in terms of initial period and additional minutes. Initial Period: - Dial Station, Operator Station, Person Service, and California Relay Service. - Initial period rates shown in (10) following, are for connections of one minute or any fraction thereof. Additional Minutes All additional minute rates shown in (10) following, are for each additional minute or any fraction thereof that the connection continues beyond the initial period. rounding calls are rated using one of the following schedules /2/. each call will be billed a one minute minimum. after the initial one minute minimum, calls will be billed in one minute increments. each fractional call is rounded to nearest cent. calls are rated using one of the following schedules /3/. each call will be billed an 18 second minimum. after the initial 18 second minimum, calls will be billed in six second increments. each fractional call is rounded to nearest cent. /1/ Also known as Local Toll. /2/ Rounding applies to all plans following except business Advantage /3/ Rounding applies to business Advantage 1000.

18 PART 9 - Message Toll Services 2nd Revised Sheet 9 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (9) Timing of Messages - Chargeable Time - Chargeable time for calls placed on a Dial, Operator, or California Relay Service basis begins when connection is established between the calling station and the called station or private branch exchange switchboard or Radio telephone Utility system. - Chargeable time for calls placed on an operator basis begins when connection is established between the person calling and the particular person called, another party acceptable to the person calling or the private branch exchange extension station called or mobile unit reached through a Radiotelephone Utility. - Chargeable time for all messages ends when the calling station "hangs up" thereby releasing the network connection. If the called station "hangs up" but the calling station does not, chargeable time ends when the network connection is released either by automatic timing equipment in the telephone network or by the Company operator. /1/ Also known as Local Toll

19 PART 9 - Message Toll Services 2nd Revised Sheet 10 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (10) Timing of Messages - Chargeable Time - Chargeable time for calls placed on a Dial, Operator, or California Relay Service basis begins when connection is established between the calling station and the called station or private branch exchange switchboard or Radio telephone Company system. - Chargeable time for calls placed on an operator basis begins when connection is established between the person calling and the particular person called, another party acceptable to the person calling or the private branch exchange extension station called or mobile unit reached through a Radio telephone Company. - Chargeable time for all messages ends when the calling station "hangs up" thereby releasing the network connection. If the called station "hangs up" but the calling station does not, chargeable time ends when the network connection is released either by automatic timing equipment in the telephone network or by the Company operator. /1/ Also known as Local Toll.

20 PART 9 - Message Toll Services 1st Revised Sheet 11 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /3/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (11) Mileages and Corresponding Rates for Different Classes of Service /1,2/ /1/ In addition to the MTS* schedule preceding, the following Pay Phone Use Charge applies to each intralata non-sent paid message made over a pay telephone: calling card, bill to third party, and collect Payphone Use Charge $.30 /2/ In addition to the MTS schedule preceding and the Station Operator Handled, Person Operator Handled service charges and Pay Station service Charge listed in Guidebook, Part 9 and Part 11, The payphone service provider in a prison or correctional institution may impose an Inmate Station Service Charge. This deregulated charge is applicable to Station Operator or Person Operator Handled IntraLATA collect calls from a prison or correctional facility and, as required by the Commission, will not exceed $1.70 per call. /3/ Also known as Local Toll.

21 PART 9 - Message Toll Services 1st Revised Sheet 13 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /2/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (11) Mileages and Corresponding Rates for Different Classes of Service (Res) (cont'd) ii. Reserved /1/ Also known as Local Toll.

22 PART 9 - Message Toll Services 1st Revised Sheet 14 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (11) Mileages and Corresponding Rates for Different Classes of Service (Res) (cont'd) iii. Reserved /1/ Also known as Local Toll.

23 PART 9 - Message Toll Services 1st Revised Sheet 16 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE 2 (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (11) Mileages and Corresponding Rates for Different Classes of Service (Res) (cont'd) iv. Operator Handled Schedule - Residence (cont'd) - Operator Assistance Service Charges (see Guidebook, Part 11, Section 1) and the Pay Phone Use Charge (see Guidebook, Part 9, Section 1) are applicable per message. /1/ Also known as Local Toll.

24 PART 9 - Message Toll Services 1st Revised Sheet 18 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (12) Mileages and Corresponding Rates for Different Classes of Service (Bus) (cont'd) i. Business Schedule (cont d) - Station or Person Operator Handled service charge and Pay Station service charge listed in Guidebook Part 11, Section 1. The payphone service provider in a PRISON or correctional institution may impose an Inmate Station Service Charge. This deregulated charge is applicable to Station or Person Operator handled IntraLATA collect calls from a prison or correctional facility and, as required by Commission, will not exceed $1.70 per call. /1/ Also known as Local Toll.

25 PART 9 - Message Toll Services 1st Revised Sheet 19 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATION SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (12) Mileages and Corresponding Rates for Different Classes of Service (Bus) (cont'd) ii. Reserved /1/ Also known as Local Toll.

26 PART 9 - Message Toll Services 1st Revised Sheet 20 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATIONS SERVICE /1/ (cont'd) A GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (12) Mileages and Corresponding Rates for Different Classes of Service (Bus) (cont d) ii. Reserved (Cont d) /1/ Also known as Local Toll.

27 PART 9 - Message Toll Services 1st Revised Sheet 22 SECTION 1 - Message Telecommunications Services and Rate Schedules 1. TWO-POINT MESSAGE TELECOMMUNICATIONS SERVICE /1/ (cont'd) A. GENERAL (cont'd) 4. Rates and Charges (cont'd) a. Method of Applying Rates (cont'd) (12) Mileages and Corresponding Rates for Different Classes of Service (Bus) (cont d) iii. OPERATOR HANDLED SCHEDULE BUSINESS (cont d) /1/ Also known as Local Toll

28 PART 9 - Message Toll Services 1st Revised Sheet 7 SECTION 3 - Optional Calling Plans 1. COMPLETELINK 2.0 (Business) (cont d) D. ELIGIBLE SERVICES Eligible services will receive discounts based on the achievement of the customer s specific MARC and term commitment. Eligible Services Applicable Guidebook Reference Business Measured Rate Guidebook Part 2, Section 1 Service Custom 8 Toll-Free Guidebook, Part 10, Section 1

29 PART 9 - Message Toll Services 2nd Revised Sheet 18 SECTION 3 - Optional Calling Plans 2. COMPLETELINK /1/ (Business) A. DESCRIPTION CompleteLink is a feature and usage volume discount plan that provides business customers with monthly discounts on selected eligible business services as described in Guidebook, Part 7, Section 5 based on the customer s contributory services whose revenue is counted towards the achievement of a Minimum Annual Revenue Commitment (MARC) and term length. CompleteLink also provides a discounted rate on all local usage, local toll, Custom 8, and ZUM 3 calls based on the MARC and term agreement length, as well as product level discounts on specific non-eligible services as set forth in the following Sections. B. REGULATIONS 1. CompleteLink is available only for selected business service where the Company also provides local service, including but not limited to, basic business lines, Centrex and Coin and Coinless service as described elsewhere in this Guidebook. 2. A customer may subscribe to only one CompleteLink plan at a time. 3. CompleteLink is limited to a maximum of 250 statewide Billing Telephone Numbers (BTNs) billed to the customer of record. 4. CompleteLink discounts are not available on eligible business services with existing term discount plans or with any other discount toll optional calling plan. Customers may change from an existing optional calling plan (e.g., Value Promise Plus, Advantage 5, 10, or 25, or Flat Rate Pro) to CompleteLink without being assessed early termination charges for discontinuing those plans. 5. CompleteLink is offered under a one-year, two-year, three-year, or five-year term. Customers must also select one of the offered MARC levels. A customer may increase the MARC level at any time, without assessment of early termination charges. To increase a MARC, customer must also commit to a new term. A decrease of the MARC level during the term is deemed to be a termination of the service and early termination charges as described in D. following are applicable. /1/ Frozen/Grandfathered CompleteLink effective December 15, See Guidebook, Part 2, Section 2.

30 PART 9 - Message Toll Services 2nd Revised Sheet 29 SECTION 3 - Optional Calling Plans 2. COMPLETELINK /1/ (Business) (cont'd) E. RATES AND CHARGES (cont'd) MARC Max. Annual Disc. Local Toll and Custom 8 Rate Structure Retention Rates Save Rates Win Back Rates 1 Year 2 Year 3 Year 5 Year 1 Year 2 Year 3 Year 5 Year 1 Year 2 Year 3 Year 5 Year $700 - $1,199 $350 $ $ $ $ $ $ $ $ $ $ $ $ $1,200 - $2,999 $700 $ $ $ $ $ $ $ $ $ $ $ $ $3,000 - $6,999 $1,000 $ $ $ $ $ $ $ $ $ $ $ $ $7,000 - $11,999 $1,500 $ $ $ $ $ $ $ $ $ $ $ $ $12,000 - $17,999 $2,500 $ $ $ $ $ $ $ $ $ $ $ $ $18,000 - $24,999 $2,500 $ $ $ $ $ $ $ $ $ $ $ $ $25,000 - $34,999 $3,500 $ $ $ $ $ $ $ $ $ $ $ $ $35,000 - $49,999 $5,250 $ $ $ $ $ $ $ $ $ $ $ $ $50,000 - $74,999 $8,250 $ $ $ $ $ $ $ $ $ $ $ $ $75,000 - $99,999 $11,500 $ $ $ $ $ $ $ $ $ $ $ $ $100,000 - $124,999 $24,000 $ $ $ $ $ $ $ $ $ $ $ $ $125,000 - $149,000 $24,000 $ $ $ $ $ $ $ $ $ $ $ $ $150,000 - $199,999 $36,000 $ $ $ $ $ $ $ $ $ $ $ $ $200,000 + $36,000 $ $ $ $ $ $ $ $ $ $ $ $ MARC Max. Annual Disc. Retention Rates Local Usage-Rate Structure Save Rates Win Back Rates 1 Year 2 Year 3 Year 5 Year 1 Year 2 Year 3 Year 5 Year 1 Year 2 Year 3 Year 5 Year $700 - $1,199 $350 $ $ $ $ $ $ $ $ $ $ $ $ $1,200 - $2,999 $700 $ $ $ $ $ $ $ $ $ $ $ $ $3,000 - $6,999 $1,000 $ $ $ $ $ $ $ $ $ $ $ $ $7,000 - $11,999 $1,500 $ $ $ $ $ $ $ $ $ $ $ $ $12,000 - $17,999 $2,500 $ $ $ $ $ $ $ $ $ $ $ $ $18,000 - $24,999 $2,500 $ $ $ $ $ $ $ $ $ $ $ $ $25,000 - $34,999 $3,500 $ $ $ $ $ $ $ $ $ $ $ $ $35,000 - $49,999 $5,250 $ $ $ $ $ $ $ $ $ $ $ $ $50,000 - $74,999 $8,250 $ $ $ $ $ $ $ $ $ $ $ $ $75,000 - $99,999 $11,500 $ $ $ $ $ $ $ $ $ $ $ $ $100,000 - $124,999 $24,000 $ $ $ $ $ $ $ $ $ $ $ $ $125,000 - $149,000 $24,000 $ $ $ $ $ $ $ $ $ $ $ $ $150,000 - $199,999 $36,000 $ $ $ $ $ $ $ $ $ $ $ $ $200,000 + $36,000 $ $ $ $ $ $ $ $ $ $ $ $ /1/ Frozen/Grandfathered CompleteLink effective December 15, See Guidebook, Part 4, Section 2

31 PART 9 - Message Toll Services 1st Revised Sheet 50 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) A. APPLICABILITY Applicable to all Message Telecommunications Service Value Promise SM plans furnished or made available by the Company over facilities wholly within a Service Area. B. TERRITORY Between two points wholly within a Service Area where the respective rate centers of such points are also located wholly within said Service Area as defined in the Guidebook. C. DESCRIPTION 1. Customers may for the indicated nonrecurring and monthly rates shown in E. following receive a discount on all intralata directly dialed message toll charges without operator assistance. The discount rate is dependent on the total amount of monthly directly dialed message toll usage as billed. 2. Reserved 3. Advantage 50 allows customers to select either Option 1 and receive a percent discount on Billed Usage or Option 2 and pay an hourly rate for Usage Hours on directly dialed calls and receive a percent discount on volumes on direct dialed usage during a billing months has shown in E.1. following. 4. Advantage 1000 allows customers to select either Option 1A or Option 1B and receive a percent discount on Billed Usage or Option 2A or Option 2B and pay an hourly rate for Usage Hours on directly dialed calls and receive a percent discount on volumes of direct dialed usage during a billing month as shown in E.2. following. 5. Customers subscribing to Advantage 1000 Option 1A, 1B or Option 2A, 2B may receive additional discounts on intralata usage by subscribing to Advantage Term Discounts as shown in E.2. following.

32 PART 9 - Message Toll Services 1st Revised Sheet 51 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE Business (cont'd) D. REGULATIONS 1. Value Promise SM plans contained herein, are not available on residence exchange lines or on Centrex dormitory lines. 2. The discounted rates are provided to the Company s customer only and shall not be used for any purpose for which a payment or other compensation shall be received by the customer from any other person, firm or corporation for such use. 3. Person, collect, conference, third number billed toll station, or any other calls requiring operator handling are not included and will be billed at the regular message toll rates applicable. Only California intralata calls are included. 4. These discounts are applicable to the Value Promise SM plans only and do not apply to any other Company offered plans. 5. A customer may only subscribe to one Value Promise SM plan per billing account. The discounts contained herein shall only be applied to the billed telephone number. 6. Zones 1, 2, and 3 calls Guidebook, Part 4, Section 2 do not apply to the Value Promise SM plans. 7. One month minimum billing as set forth in Guidebook, Part 6, Section 4 is required when subscribing to any Value Promise SM plans. 8. Value Promise SM plans are not available on Private Line Service or 800/Custom 8 Services. 9. Customers with mechanized summary billing cannot subscribe to the Value Promise SM plans for any primary control account; however, individual billing accounts may subscribe to the Value Promise SM plans service offering.

33 PART 9 - Message Toll Services 1st Revised Sheet 55 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont d) 1. Advantage 50 (cont d) Illustrative Only a. Option 1 a. $ = Applicable total message toll b. 30% discount = $90.00 c. 35% discount = $ d. Total amount discounted = $ Option 2 a hours x $5.45 per hour of usage = $ applicable total message toll usage b. 30% discount = $ c. 35% discount = $ d. Total discounted amount = $ Installation Monthly Charge Rate USOC) Advantage 50 Option 1 NO $7.12 BPLP1 Advantage 50 Option 2 NO 7.12 BPLH1

34 PART 9 - Message Toll Services 1st Revised Sheet 56 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont d) 1. Advantage 50 (cont d) Illustrative Only a. Option 1 a. $ = Applicable total message toll b. 30% discount = $90.00 c. 35% discount = $ d. Total amount discounted = $ Option 2 a hours x $5.45 per hour of usage = $ applicable total message toll usage b. 30% discount = $ c. 35% discount = $ d. Total discounted amount = $ Installation Monthly Charge Rate USOC Advantage 50 Option 1 NO $7.12 BPLP1 Advantage 50 Option 2 NO 7.12 BPLH1

35 PART 9 - Message Toll Services 1st Revised Sheet 59 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 1. Advantage 50 (cont'd) c. Method of Apply Rates: (cont'd) (2) Reserved

36 PART 9 - Message Toll Services 1st Revised Sheet 60 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 1. Advantage 50 (cont'd) c. Method of Apply Rates: (cont'd) (2) Reserved (cont'd)

37 PART 9 - Message Toll Services 1st Revised Sheet 61 SECTION 3 - Optional Calling Plans 5 ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 2. Advantage 1000 a. Option 1A Billed Usage Discount Rate (1) $ $ % (2) $ $ % (3) $ % b. Option 2A Hourly Rate Billed Hourly Usage Discount Rate $5.45 per hour of (1) $ $ % usage (2) $ $ % (3) $ % c. Option 1B Billed Usage Discount Rate (1) $ $ % (2) $ $ % (3) $ % d. Option 2B Hourly Rate Billed Hourly Usage Discount Rate $5.45 per hour of (1) $ $ % usage (2) $ $ % (3) $ % Illustrative Only Option 1A, 1B, 2A and 2B a. $7, or 1,304.4 hours = Applicable total message toll usage billed. b. 30% discount = $ c. 40% discount = $ d. 50% discount = $ e. Total discounted amount = $

38 PART 9 - Message Toll Services 1st Revised Sheet 65 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 2. Advantage 1000 (cont'd) c. Method of Applying Rates (cont'd) (2) Reserved

39 PART 9 - Message Toll Services 1st Revised Sheet 66 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 2. Advantage 1000 (cont'd) c. Method of Applying Rates (cont'd) (2) Reserved (cont'd)

40 PART 9 - Message Toll Services 1st Revised Sheet 69 SECTION 3 - Optional Calling Plans 5 ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 2. Advantage 1000 (cont'd) c. Method of Applying Rates: (cont'd) (4) Reserved

41 PART 9 - Message Toll Services 1st Revised Sheet 70 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 2. Advantage 1000 (cont'd) c. Method of Applying Rates: (cont'd) (4) Reserved (cont'd)

42 PART 9 - Message Toll Services 1st Revised Sheet 71 SECTION 3 - Optional Calling Plans 5. ADVANTAGE 50 AND ADVANTAGE 1000 (Business) (cont'd) E. RATES AND CHARGES (cont'd) 2. Advantage 1000 (cont'd) c. Method of Applying Rates: (cont'd) (5) Advantage 1000 Term Discount (Term Discount) Term Discounts allow Advantage 1000 customers to subscribe to a discount plan which includes: - a discount on direct dialed toll charges for a fixed term in 12 month, 24 month or 36 month increments. (a) (b) (c) The customer must sign a Term Discount Agreement Form No. UE0049 contained in Guidebook, Part 2, Section 2 The monthly discounts will be in effect the following bill round after the agreement is executed, signed and received. Customers subscribing to multiple Term Discounts must sign an agreement for each plan. Each customer location must qualify for and subscribe to Advantage 1000 to qualify for Term Discount. (d) Customers must commit to one of the three monthly usage commitment options listed in K. following. (e) (f) (g) Selection of one of the net monthly usage commitment options creates a corresponding minimum monthly billed usage commitment. Customer must average monthly usage requirement over a 12-month period. Changes to the length of the Term Discount prior to the expiration of the customer's initial agreement are permitted, provided: - the customer's initial term agreement must be terminated and a new agreement entered into. - the new term agreement must be equal to a greater period or equal to the same, greater or the longest period allowable under another applicable Guidebook, than initially selected.