Terms and Conditions

The Terms and Conditions in the following sections comprise our Company's (hereafter referred to as “Company”) User Agreement (hereafter referred to as “Agreement") and govern the use of our intra-state, inter-state and international long distance services. This Agreement governs the relationship between the Customer and our Companywhile using our services. This Agreement explains our respective legal rights concerning the relationship, including:

• Starting and stopping service
• Credit (Usage) Limits
• Billing Information
• Privacy and confidentiality
• Limitations of liability
• Resolution of disputes

BY OPENING AN ACCOUNT WITH US, A CUSTOMER AGREES THAT THEY HAVE READ AND AGREE WITH THESE TERMS AND CONDITIONS. THE CUSTOMER ALSO CONSENTS TO RECEIVE EMAIL FROM US REGARDING ANY AND ALL of our Company's SERVICE RELATED ISSUES. THESE TERMS AND CONDITIONS ARE LEGALLY BINDING ON THE COMPNAY AND THE CUSTOMER.

IF YOU DO NOT AGREE WITH ANY PART OF THE AGREEMENT, DO NOT ACCESS OR OTHERWISE USE OUR SERVICES.

FOR THE CUSTOMER’S FUTURE REFERENCE, AN UP-TO-DATE COPY OF THIS AGREEMENT IS ACCESSIBLE ON EACH OF OUR INDIVIDUAL SERVICE’S WEB SITE UNDER THE LINK “TERMS AND CONDITIONS”.

Section 1 – General Service Description

Company's basic service is a telephone call through oursystem. The call is set up from a Customer’s telephone to a number dialed by the Customer. The Customer accesses our services by dialing domestic or international numbers from their individual telephone number. The Customer can also access our services by dialing a toll free access number. Once the Customer is connected to the our system, and successfully identified as an authorized user, they can then make telephone calls through the our system. The Customer can also access other enhanced features while in the system.

The Customer is provided “on-line” billing information on a Company web site including call detail and billing/payment information. We may send a courtesy “Email” notification informing the customer of the availability of their invoice at the end of their billing cycle. However it is the Customer’s resposibility to know their billing cycle and check online for invoice activity. The Customer can pay for the services used in a variety of ways, discussed in more detail in the “Billing” Section.

Section 2 – Starting or Stopping Service(s)

In order to use our Service(s) a Customer must apply to open an account. This can be accomplished over an Internet link, by Email, by telephone contact, in writing by mail, or in person. Specific application procedures are posted on the Company's website pages. All accounts and or purchases are subject to credit approval before or after activation.

We utilize Equifax, an outside vendor, to retrieve a “Telco98” score to predict the likelihood of an applicant or established customer becoming a serious credit risk. The database is built using actual local and long distance telecommunications nationwide performance data. Equifax combines this data with information from the Equifax credit-reporting database and provides us with a numeric score that provides an intuitive probability of payment ranking for new and existing service accounts.

California customers may be required to provide us with a PIN number to obtain the credit score. For consumers that reside in the state of Vermont, the online order will serve as proper consent to obtain information necessary.

We understand the sensitive and private nature of this issue, and assure you that we will only use this number to verify your credit score for telephony services. Please know that by retrieving this score it may show up on your credit report as an official inquiry. In addition, we will hold this information in strict confidentiality and will in no instance release this information to any other third party.

A Customer may stop or cancel our service(s) in the same manner described above.

Prepaid calling card purchases are final and non-refundable. Prepaid calling cards expire one year after date of purchase. For complete details, please refer to the individual calling card service website. We do not provide call detail or monthly invoices for prepaid calling cards.

1+ orders must go through the electronic process completely. Customers cannot self-PIC to any of the our 1+ services without completing the electronic process and/or being notified by the Company.

According to FCC regulations, all 1+-account carrier changes must be “verified” by the end user before the provisioning process can begin. Verification requires one of the following for each account and/or line of service: “esignature” by way of the Customer’s IP address, “third party voice verification”, or “written letter of authorization” (LOA).

If a customer submits an order and verifies their request to switch to a our 1+ service, the local telephone company may release all numbers under that billing telephone number to be switched. We are not responsible for actions taken/made by customers local telephone company.

1+ service cancellation, including toll free service, can take up to 45 days to completely process after Customer’s request has been received by our company. The local exchange carrier and/or one of our underlying long distance carriers can delay providing us with the customer’s call data for more than one billing cycle. This means that we can receive and bill customers for 1+ calls up to 45 days after cancellation request has been received.

Our Company reserves the right to disconnect service for the following reasons:

• Non-payment
• Refusal to pay invoiced amounts
• Customer refuses to agree with terms and conditions of the service
• Accounts remaining unpaid after 60 days may be referred to an outside collection agency. It is the customer’s sole responsibility to contact us to reinstate service after they have paid balance on an account that had service disconnected for non-payment.

Section 3 – Customer Responsibilities

By placing an order for our service(s) the Customer agrees:

that the individual opening an account is 18 years of age or older

that the information provided to us in the application process is correct

that the Customer will safeguard Personal Access Code information and agrees to notify us immediately when it is lost or stolen

that our Company assumes the Customer has sole and full responsibility for any access to our system using the Personal Access Code or ANI information from their assigned phone number. Customer is liable for all usage until our Company has received written notice of unauthorized access or cancellation of account.

that the individual opening the account is the authorized person to make changes or add service to phone number(s) provided to us

Section 4 – Billing Information

Our Company accepts the following methods of payment when opening an account:

Credit Card When we are provided a credit card by the Customer to open an account, the card will be charged automatically each month and when user limits are reached. Credit cards can also be used to prepayfor service or to pay for a deposit.

Wire transfer customer can remit monthly payment via wire transfer (upon credit approval) or prepay for services by sending a wire transfer.

Check Deposit customer can remit deposit by check to establish credit and/or to open an account. Balances are not deducted from deposit on file. Deposits are kept on file for a minimum of 6 six billing periods. If positive credit history is established after 6 consecutive billing periods, deposit can be returned to customer as it was received. Funds must be received before check deposits are posted to an account.

Billed account customer can choose to provide us with their SSN to open an account and be billed monthly. By providing their individual SSN, or business federal tax id to our Company, Customer authorizes us to perform a credit check.

If a customer provides a deposit as a requirement for a billed account it will be kept on file for a minimum of 6 six billing periods. If positive credit history is established after 6 consecutive billing periods, deposit can be returned to customer as it was received. Funds need to be received before check deposits are posted to an account.

If a customer provides a credit card as a requirement for a billed account it will be kept on file to charge automatically each month. If positive credit history is established after 6 consecutive billing periods, customer can request to have credit card option removed from automatic payment.

We bill for completed switched calls in 6-second increments, with a one-minute minimum. 1+ calls are billed in 6-second increments with a minimum of 6 seconds or 18 seconds depending on the service. 1+ international calls are billed in 6 second increments with a minimum of 30 or 60 seconds depending on the service. Call charges that compute to less than one cent will be rounded up to the nearest cent at the end of each call. Toll free calls are billed in the same manner as 1+ calls for that service.

1+ call data is collected from our underlying carrier(s). Data can take anywhere from 3-10 business days to be sent to us. At times, this can cause data to be delayed past the billing cutoff date and the call charges will be included on future invoices.

A Federal Communications Commission (FCC) authorized “Payphone surcharge” of 79 cents is applied to all calls originating from a payphone in the United States.

For security purposes, all calling card, conference calling, and dialaround accounts are required to have a credit limit for each individual line. This limit should be set by the Customer at the estimated amount of usage the Customer expects in one billing period to avoid multiple charges to their credit card during the billing period. 1+ customer should set their limit accordingly to avoid unusual activity notification emails.

Each time a Credit Card billed Customer’s individual line balance owed reaches 90% of the Usage Limit, the credit card assigned to thataccount is automatically charged. Charges are processed in batches several times a day. The Customer is sent an email notification when this charge is to occur. This excludes 1+ usage.

If the Customer’s balance owed exceeds the credit limit before we charge the card, the account will be temporarily deactivated restricting use until payment is posted to the account successfully. 1+ service is not interrupted.

The account is automatically reactivated when the charge is posted reinstating service. When a payment is posted to the account, we will send an email notifying the Customer of the payment amount credited to the account.

Credit Card accounts are also charged automatically at the end of the billing period.

At the time of activation of an account using a credit card the card is authorized. Authorization amounts vary depending on the service. Anauthorization is also performed automatically when a customer adds lines of service to an existing account, when a new credit card is provided for paymentand at time of account reactivation. Customers using debit cards and not credit cards must understand that authorizations may put a temporary hold on funds.Our Company is neither responsible for the release of these funds nor any charges incurred by the customer’s financial institution due to authorizations.

NOTE: IF YOU CHOOSE THE CREDIT CARD BILLING OPTION FOR YOUR ACCOUNT! BY PROVIDING THE CREDIT CARD INFORMATION TO US YOU AGREE THAT WE MAY CHARGE THE CREDIT CARD NUMBER PROVIDED FOR BALANCES DUE.

Your bill includes up to a 3.5% (percent) per month Carrier Cost Recovery Fee. This fee was formerly named the Regulatory Assessment Fee. It helps us recover those costs associated with providing state-to-state and international long distance service, including state-to-state and international connection charges, property taxes, and the expenses of regulatory proceedings and compliance. This fee applies for each month in which you have any state-to-state and/or international charges on your bill. This fee is not a tax or charge required by the government. It is however a standard industry fee used by most service prividers. We have tried to keep the fee nominal and in fact our CCRF is low. Please note,if you do not agree to this CCRF - please do not signup for service.

Should we be unable to charge your purchases to this account (because your credit card account expires, reaches the credit limit, or is otherwise denied by the credit card processing company) we reserve the right to terminate your service immediately and/or bill you directly for the amount owed. Accounts remaining unpaid after 60 days may be referred to an outside collection agency. It is the customer’s sole responsibility to contact us to reinstate service after they have paid balance on an account that had service disconnected for non-payment.

Customer invoices are provided on a monthly basis. The Customer is sent an email notification when the monthly invoice is ready. The Customer can access their invoice on-line on the service’s web site.

If a Customer requests that a paper Call Detail Report be mailed to them, there is a monthly invoice charge of $2.99 for each account regardless of usage. If an account is 60+ days past due a MANDATORY paper invoice will be mailed and the $2.99 fee in addition to the 1.5% late charge will applied towards the account.

The Customer must contact Customer Service to set up paper billing if it was not done at time of sign up.

Taxes due are calculated based on the total monthly usage. The number and amount of taxes charged can vary widely by the state from which the service originates.

For Customers in the United States the minimum taxes charged are described below.

As an interstate carrier, our company is required by the FCC to charge taxes. We do not profit from these collections.

Universal Service Fund (USF) is charged to all telecommunications customers. This is computed as a percentage of the monthly call charges. For more information please visit web site www.universalservice.org or you can call (973-560-4400). Universal Service Fund Taxes are collected and passed on to the Universal Service Administration ( Part of the FCC ).

Other carriers may present this information in different ways and may or may not include it in their pricing. But they apply to all carriers.

Section 5 – Rates and Charges

Rates charged and descriptions used are based on the underlying carrier used to terminate call(s). If Customer feels that there is a discrepancy, the Customer must contact Customer Service in writing or call toll free at 1-877-608-3769, with details for further research. Rates published remain in full effect until we update the on-line published rates.

Toll free rates can vary based on the origination of the call and terminating phone number.

Rates for calls terminating to an international mobile number can be MUCH higher in some countries compared to the land line rate for the same country.

Rates to and from Alaska and Hawaii for all services provided are higher than lower contiguous US48. 1+ service is not available from Alaska, US Virgin Islands, Hawaii and the state of Tennessee.

Current rates for our services are always available on each service’s website. When requested, we will provide the Customer a paper copy of the price list information for the service(s) they are interested in. The Customer must contact Customer Service in writing or call toll free at 1-877-608-3769. The information will be mailed free of charge.

To maximize call quality, while providing the best price, we sometimes must change our underlying domestic and international carriers. Substantial changes in costs of our new routes will result in changes to the rates to selected destinations. Our Rates are subject to change without notice. The Customer should check their account online for the most current rates. Our policy is to avoid rate changes and will only make them if absolutely necessary.

Additional Fees/ Charges

• 79-cent Payphone surcharge
• Late Payment charge: 1.5% of balance due
• Un-collectible Check Charge/NSF: $30.00
• Service re-connection fee: $25.00
• Credit Card Charge Back $25.00
• $1.50 monthly toll free fee may be charged for each toll free number added to a 1+ account.
• $2.99 monthly invoice fee will apply for all accounts with that request a paper invoice regarless of usage. If an account is 60+ days past due a MANDATORY paper invoice will be mailed and the $2.99 fee in addition to the 1.5% late charge will applied towards the account

Section 6 – Miscellaneous Information

sGen specifically reserves the right to NOT charge customer surcharges or minimum charges listed above.

sGen reserves the right to charge LESS than its published rates.

All rates are subject to change because of changes in operating costs.

All calls carried by Company are subject to terms and conditions of its Federal and State tariffs.

Company cannot guarantee or control when the process of transferring inter-exchange service will be completed. Length of time required to change carriers will vary depending on the Customer’s current local exchange carrier and inter-exchange carrier processes.

Company will not reimburse nor credit Customer for charges incurred or assessed by their local telephone company or any other company including switching costs and fees.

It is the Customer’s responsibility to inform their previous 1+ carrier after changing to our 1+ service. We are not responsible for any fees assessed by their previous carrier when the Customer does not provide the notification.

The Customer cannot “self PIC” to sGen.

Section 7 - Limitation of Liability

Our Company is not liable for any act, omission, interruption, or delay of services provided by our underlying carriers. We are not liable for any interruption of its service due to acts of God, war or military operations, fire, flood, civil disorder, national or local emergency, or other causes beyond our company's control.

Our Company's Service is provided in addition to customer's local phone service. In the event of a Company system failure the Customer will still have access to local service, including emergency numbers such as 911. Inter-exchange service through another carrier is available by dialing another Carrier Identification Code (CIC) before the called number. See your local telephone book for information on the CIC numbers available. Our Company will not beresponsible for any incidental, punitive, consequential damages (lost profits),economic loss or injuries to person or property, or any other claims for damages because of lack of access to our system. We will not be liable for indirect, consequential or incidental damages, including but not limited to lost profits and lost savings, arising out of, resulting from, or in any way related to the services and facilities furnished by us. Except as stated in this Section, the Company shall have no liability for damages of any kind arising out of or related to events, acts, rights, or privileges contemplated in this Agreement. This Agreement does not limit the liability of the Company for willful misconduct.

Section 8 – Privacy of Communications.

Federal and State regulations provide for the privacy of Customer communications. Our Company is committed to following all regulations and to safeguard Customer communications and information.

Section 9 – Resolution of disputes

We are committed to working with the Customer and will do all that is reasonable to resolve disputes without outside assistance. If a settlement cannot be reached directly with the Customer, Customer agrees that the dispute(s), except those that fall within the jurisdiction of a state or federal regulatory body, shall be exclusively resolved by binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association with arbitration to occur in San Luis Obispo, California. The Parties agree that their disputes will be resolved individually and shall not be resolved on a consolidated or class basis. The Arbitrator must make his award under the terms and conditions of this Agreement. The Arbitrator may not award consequential or punitive damages.

Section 10 – Applicable Law

This Agreement, to the extent not covered by applicable state and federal laws, regulations and tariffs, shall be governed under the laws of the State of California. The Parties further agree that to the fullest extent permitted under this Agreement, San Luis Obispo, California will be the exclusive forum for any claim, dispute or other difference (collectively, the "disputes") that may arise between them and that the Parties are subject to jurisdiction in San Luis Obispo, California.

Section 11 – Definition of Terms

“1 Plus” or “1+” is a term used throughout this Agreement to mean direct dialed long distance calls from the end users registered phone number or in reference to the service itself. This service is accessed from the Customer’s telephone by dialing 1 plus the destination telephone number’s area code and telephone number.

ANI (Automatic Number Identification) Identification of the calling telephone number initially provided by the local exchange carrier and forwarded for billing purposes to the succeeding carriers when processing a telephone call.

Company Used throughout this Agreement to mean our Company, a California corporation.

Calling Card A billing convenience whereby the originating caller may pre-pay or bill the charges for a call to an approved calling card.

Channel This term denotes the communications path established between sGen and other operating centers and points of communication via satellite, microwave, wire, coax or fiber optic cable that is used for the transmission and reception of communication signals.

Company Whenever used in this Agreement denotes sGen unless otherwise specified or clearly indicated by the context.

Completed Calls A customer originated call that is answered at the distant end as evidenced by hardware answer supervision relayed to us by the destination telephone company. Calls answered by Voicemail systems, answering machines, and Cell phones are completed calls. Customers are liablefor payment for completed calls.

Credit Limit The maximum amount (in US dollars) established for each Customer’s account which, when exceeded, results in restriction or denial of our services to the Customer.

Customer A person, firm, partnership, corporation or other legal entity which: arranges for us to provide, discontinue or rearrange telecommunications services on behalf of Customer(s); uses our telecommunications services; and is responsible for payment of charges, all under the provisions and terms of this Agreement. Individual Customers must be at least 18 years of age.

Customer Provided Equipment The Customer owned telephone instrument consisting of a transmitter, receiver, and associated apparatus that enables sending and/or receiving of telephone messages. This equipment includes facsimile and data transmission equipment designed for use on voice telephone circuits.

Customer Service department is responsible for assisting Customers using our service. Customer Service can be contacted by any of the following:

Phone: 1-877-608-3769

Destination Leg For billing purposes, that part of a Customer’s call that is set up between our switch location and the destination phone number dialed by the Customer.

“esignature” The Internet Protocol (IP) address that is recorded when a Customer’s signs up for our service(s) over the Internet. In some states this is acceptable a “verification” that the Customer placed an order.

Exchange A geographical area comprised of a group of telephone customers served by a specific telephone company.

Letter of Authorization (LOA) A written authorization provided by the customer which authorizes a carrier to change the Customer’s interexchange carrier.

Local Exchange Carrier The local or regional telephone company that owns and operates telephone lines to a customer location.

Local Service Calls placed within a 12-mile radius of your home.

Local Toll Service direct dialed calls placed outside a 12-mile radius of your home. Coverage may vary and should be confirmed with local telephone company. Also referred to as “IntraLata toll” and “Local Long Distance”.

Long Distance Call Any phone number that requires a 1 plus an area code and phone number to be dialed in order to complete the call.

Origination Leg For billing purposes, that part of a Customer’s call set up between the Customer location and Company's switch location.

Personal Access Code (PAC) A pre-defined series of numbers that can be dialed by the Customer, or authorized user, upon access to our system. The numbers are used to identify the caller and validate the caller’s authorization to use selected services provided. A unique, confidential code assigned to individual Customers.v

PIC (Primary Inter-exchange Carrier) Carrier selected by customer to handle their inter-exchange calls.

PIC Freeze A designation by a customer that prohibits a change of their inter-exchange carrier without a release of the PIC Freeze by the customer.

PIC Charge A charge applied to the customer’s bill by the Local Exchange Carrier (LEC) for a change of the customer’s selected inter-exchange carrier.

PIC Code An alphanumeric code that identifies inter-exchange carriers.

PUC “Public Utilities Commission”. Generic term applied to the department in a state government that is responsible for regulating telephone services within that state.

Service(s) Includes Intra-state, Inter-state, and International calling services and associated features, such as calling cards and conference calls, provided by Company to Customer.

“Slamming” A term applied to the unauthorized change of a Customer’s PIC carrier. The Customer has the right to select their carrier for Intra-state, Inter-state, and International calling services and associated features, such as calling cards and conference calls. When Company is informed bya Customer of a “Slam”, Compnay shall direct that Customer either to the state PUC or, where the state PUC has not opted to administer the FCC's rules, to the FCC's Consumers Information Bureau, for resolution of the complaint. Contact Customer Service for information on how to reach these agencies.

Subscribe See Customer definition above.

Third Party Verification Current PIC-change rules require that no Customer's selected carrier can be changed without first obtaining: 1) authorization from the Customer; and 2) “verification” that follows the requirements contained in the FCC's rules. Where required, Company uses an Independent Third Party Verification ("TPV") vendor to verify changes. The independent third party vendor obtains the Customer's authorization to submit the PIC-change order that confirms and includes appropriate verification data (e.g., the Customer's date of birth or social security number). Some states allow verification of a customer’s order by recording the IP address (“esignature”) used to place an order for our services.

Timing of Calls The chargeable time for services begins when our call progress equipment detects that the called party has answered and ends when our call progress equipment detects that either partyhas disconnected.

Universal Service Fund (USF) For more information please visit web site www.universalservice.org

Usage Limit (Same as Credit Limit above) The maximum amount (in US dollars) established for each Customer’s account which, when exceeded, results in restriction or denial of services to the Customer.