SECTION I CONDITIONS OF RESIDENTIAL SERVICE THE AGREEMENT BY ENROLLING IN, USING, OR PAYING FOR THE SERVICES, YOU (“CUSTOMER” OR “SUBSCRIBER”) AGREE TO THE PRICES, CHARGES, TERMS AND CONDITIONS IN THIS AGREEMENT. HOWEVER, IF YOU DO NOT AGREE TO THESE PRICES, CHARGES, TERMS AND CONDITIONS, DO NOT USE THE SERVICES, AND CANCEL THEM IMMEDIATELY BY CALLING CREDO, AT 800/788-0898, FOR FURTHER DIRECTIONS. These Terms, Conditions, and Common Rates (“Terms and Conditions”) contain the descriptions, conditions of service, and common rates applicable to interstate and international telecommunications services and the descriptions and conditions of service applicable to intrastate services provided by Working Assets Funding Services, Inc. dba Credo Long Distance, (“CREDO”, “Working Assets” or “Working Assets dba Credo” “Carrier” or “Company” or “we” or “us”) with principal offices at 101 Market Street, Suite 700, San Francisco, CA 94105. (Terms, conditions, and intrastate rates for Arizona, Connecticut, Hawaii, Maryland, Massachusetts, Nebraska, New Hampshire, New Mexico, Oklahoma, Rhode Island, South Carolina and West Virginia are governed by state-mandated tariffs, copies of which may be received by calling 800/788-0898.) These Terms and Conditions, together with the Calling Plan to which you subscribe and any service and/or rate information we send you upon enrollment in a Calling Plan, constitute the Agreement between you and CREDO (“Agreement”). A copy of these Terms and Conditions and specific Calling Plan rate information may be obtained by calling 800/788-0898. When authorized by the Subscriber, the Carrier may act as the Subscriber’s agent for ordering connection of a Subscriber’s location to the networks of the underlying carriers who carry the Carrier’s long distance traffic. The Subscriber shall be responsible for all charges due for such service arrangement. In some instances the Company may credit the amount of these charges to the Subscriber’s CREDO bill. DEFINITIONS The definitions below apply unless they differ with specific Calling Plan information. In that instance, the definitions in the Calling Plan information prevail over the definitions listed below: Day: From 8:00 a.m. up to, but not including, 5:00 p.m. local time on Monday through Friday, excluding Carrier-specified holidays. Direct-dial(ed): describes a call dialed from a telephone number, whose long distance and/or local toll is presubscribed to Working Assets dba CREDO, without operator or automated assistance and not charged to a calling card. Evening: From 5:00 p.m. up to, but not including, 11:00 p.m. local time on Sunday through Friday, and for 24 hours on Carrier-specified holidays unless a lower rate would normally apply. Night/Weekend: From 11:00 p.m. up to, but not including, 8:00 a.m. local time, Sunday through Friday, any time on Saturday, any time on Sunday except for the period beginning at 5:00 p.m. up to, but not including, 11:00 p.m. Holidays: All Carrier-specified holidays: New Year’s Day,† Martin Luther King Day,* Presidents’ Day,* Memorial Day,† Independence Day, Labor Day, Columbus Day, Veterans Day,† Thanksgiving Day, and Christmas Day.† * Applies to Federally observed day only. † When this holiday falls on a Sunday, the Holiday calling rate applies to calls placed on the following Monday. When this holiday falls on a Saturday, the Holiday calling rate applies to calls placed on the preceding Friday. Local Access Transport Area (LATA): A geographical area established by the U.S. District Court for the District of Columbia in Civil Action No. 17-49, within which a local exchange company provides communications services. LEC: Local Exchange Carrier 1 Local Toll: Calls to destinations outside the Subscriber’s local calling area but within the LATA in which the call originates. Long Distance: Calls to destinations outside the LATA in which the Subscriber originates the call. Presubscribed Carrier: That carrier to whom the Subscriber’s local toll and/or long distance calls are automatically routed by the LEC. Residential Service: Service provided by the Company as the Presubscribed Carrier for local toll and/or long distance. CREDO reserves the right to determine whether a customer’s service qualifies as residential service. Also, determination of residential use is at the sole discretion of CREDO. Subscriber, Member or Customer: The person, firm, company or corporation, or other entity, having a communication requirement of its own, which contracts for service under the Agreement and is responsible for the payment of charges incurred by use of the service via the telephone number for which the Subscriber has chosen Working Assets dba CREDO as the Presubscribed Carrier for local toll and/or long distance calls. DESCRIPTION OF SERVICES Message Telecommunications Service (MTS): MTS is per-call interstate and international services available for use by Subscriber 24 hours a day, seven days a week. Measurement of both mileage-based usage and all flat-rated usage is done in minutes, and all fractional minutes are rounded up to the next minute unless the specific text describing the service/Calling Plan states otherwise. Directory Assistance (DA): DA allows Customers to dial the area code plus 555-1212 to obtain phone numbers for end users who have their phone number publicly listed in that area code. Customers can receive up to two numbers per request to DA. Directory Assistance charges apply whether or not DA furnishes the requested telephone number(s), e.g., the requested telephone number is unlisted, non-published or no record can be found. Requests for information other than telephone numbers will be charged for as requests for telephone numbers. WHEN MORE THAN ONE LISTING IS DESIRED, THE CUSTOMER MUST STATE THAT TWO LISTINGS ARE DESIRED AT THE BEGINNING OF THE CALL WHETHER SPEAKING WITH A LIVE OPERATOR OR RESPONDING TO A RECORDED MESSAGE. Operator Services: Operator Services are Collect Person, Collect Station, Person-to-Person, Station-to-Station, Third Party Number Billed Person-to-Person, Third Party Number Billed Station-to-Station, Operator Assisted/Directory Assistance Call Completion, National Directory Assistance (NDA) Service, Problem Assisted Call, Busy Line Verification, Emergency Interruption, and Operator Assisted International Dialing. Operator Services are provided by Verizon. Information about, and rates and charges for, Operator Services are available directly from Verizon at http://www.verizonenterprise.com/external/service_guide/reg/r_mbs1_onnet_operator_assisted. htm for interstate rates and http://www.verizonenterprise.com/external/service_guide/reg/is_ld_vs_operator_assisted.htmfor intrastate rates. LIMITATIONS The Carrier neither owns nor operates any long distance facilities but rather resells services provided by other long distance carriers. Service is offered subject to the availability of the underlying carriers’ facilities and the provisions of these Terms and Conditions. The Carrier reserves the right to discontinue or limit the use of service necessitated by conditions beyond its control, or when the service is being used in violation of the law or the provisions of these Terms and Conditions. No service provided under these Terms and Conditions may be transferred or assigned by the Subscriber, except with the express written consent of the Carrier. Such transfer or assignment shall apply only where there is no interruption of the use of service. Transferees or assigns shall be subject to these Terms and Conditions. The Carrier reserves the right to block traffic to or from certain, countries, cities or exchanges, or to disallow the use of certain Customer authorization codes, when such action is necessary to 2 prevent the unlawful use of its service. Service will be restored as soon as it can be provided without undue risk, and, upon request by the affected Customer, a new authorization code will be assigned. Carrier may control fraud by refusing to accept calling card, collect calling and/or third number calls that are determined to be invalid by the Carrier or by the underlying carrier. The Carrier can assign all or part of its rights or duties under this Agreement without notifying you. If the Carrier does assign its rights or duties, it has no further obligations to you. THE COMPANY WILL NOT BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES FOR ANY CAUSE OF ACTION FOR NEGLIGENCE, WHETHER IN CONTRACT OR TORT. CONSEQUENTIAL, INCIDENTAL, AND INDIRECT DAMAGES INCLUDE, BUT ARE NOT LIMITED TO, LOST PROFITS, LOST REVENUES, AND LOSS OF BUSINESS OPPORTUNITY, WHETHER OR NOT THE OTHER PARTY WAS AWARE OR SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF THESE DAMAGES. LIABILITIES OF THE CARRIER The liability of the Carrier for damages arising out of mistakes, omissions, interruptions, delays or errors or defects in the transmission occurring in the course of furnishing service, channels or other facilities and not caused by the negligence of the Subscriber, commences when you enter into the Agreement with the Company for service, and in no event exceeds an amount equivalent to the charge(s) the Carrier would assess to the Subscriber for the period of service during which such mistakes, omissions, interruptions, delays or errors or defects in transmission occur. For the purpose of computing such amount, a month is considered to have 30 days. When the facilities of other carriers are used in establishing connections to points not reached by the Carrier’s contracted underlying carriers’ facilities, the Carrier is not liable for any act or omission of the other carrier or carriers. The Carrier will make no refund on overpayments by a Subscriber unless the claim for such overpayment together with proper evidence is submitted within two (2) years from the date of alleged overpayment. In calculating refunds, volume discounts will be adjusted based on total usage after all credits or adjustments have been applied. The company will make reasonable efforts to cure any material failure to provide services caused solely by defects in the Company’s and/or its underlying carriers’ hardware, software or systems.