I. AGREEMENT

A. Complete Agreement

These User Terms & Conditions of service constitute the complete agreement ("Agreement") between SkyNET TeleSystems LLC ("we," "us" or "SkyNET") and the user ("you," "user" or "Customer") of SkyNET’s Residential services, Small Business services, and any related products or services ("Service"). This Agreement governs both the Service and any Devices, such as a Soft Phone IP phone, Analog Telephone Adapter, Auto Dialer, USB Phone, or any other IP connection device ("Device" or "Equipment"), used in conjunction with the Service.

B. Definitions

For purposes of the Agreement, "you" means the customer, defined as either (i) the person identified in SkyNET’s account records as responsible for payment of all charges; or (ii) any other person with actual or apparent authority to represent that person or to use the service(s).

C. Responsibility

By enrolling in, activating, using, and/or paying for the Service, you acknowledge that you have read and understood, and that you agree, to the Terms & Conditions of this Agreement, and that you represent that you are of legal age to enter this Agreement and become bound by its terms.

D. Changed Terms & Conditions

SkyNET may change the Terms & Conditions of the Agreement its related services, devices, and or prices of same from time to time. Notices will be considered given and effective on the date posted at www.skynet-tel.com. The Agreement posted supersedes all previously agreed to electronic and written Terms & Conditions of Service.

E. Contact Information

If you have questions regarding your service, billing, or anything else relating to your SkyNET experience, please visit us at our web site www.skynet-tel.com , call us @ 800-924-1828 from 9 a.m. to 6 p.m. Eastern U.S. time, or call us toll free from the number listed on your SkyNET correspondence.

II. SERVICE

A. No Qualification

Customer is not required to have good or any credit - all who apply and pay any applicable fees are accepted., Internationally, a SkyNET-acceptable Credit Card or Pay Pal account is required, or a U.S. checking, savings, ATM account, or a method from which to be debited is required.

B. Plans

SkyNET Calling Plan descriptions are offered as described and outlined on the Product and Services section of the SkyNET Web Site @ www.skynet-tel.com. Plan conditions and details are made a part hereof.

C. Term

(1) Service is offered on a month-to-month basis for a term that begins on the date that SkyNET activates your Service (Activation Date) and ends on the day before the same date in the following month. Subsequent terms of this Agreement automatically renew on a monthly basis without further action by you unless SkyNET receives written notice from you of your intention not to renew at least ten (10) days before the end of the monthly term in which the notice is given. You are purchasing the Service for full monthly terms, that is to say if you attempt to terminate Service prior to the end of a monthly term, you will be responsible for the full month'’s charges to the end of the then-current term, including without limitation unbilled charges, plus any outstanding service amounts or fees, all of which immediately become due and payable. Termination of Service or expiration of the term or does not excuse the Customer from paying all unpaid, accrued charges due in relation to the Agreement.

(2) Change of calling plans mid-month are possible, either through SkyNET’s Personal Account Manager (PAM) by logging-in online or by contacting Customer Support by phone during business hours.

(a) Changing from an Unlimited Plan to another plan will be effective on the next billing cycle. If said change is made within the first calendar year from the date Service was initiated, you will immediately be charged for the full cost of any phone device(s) you may have received (see web site for current costs).

(b) Changing from another plan to the Unlimited Plan will be effective immediately, with the monthly billing date changing to the change date and any time remaining on the old plan being forfeited. Making this change will not result in a refund of any costs you may have incurred for any Servive device(s).

D. Residential Use of Service

If you have subscribed to one of SkyNET’s Residential Services, the Service Device(s) is (are) provided to you as a residential user, for your personal, residential, non-business and non-professional use. This means that you are not using them, or are permitted to be using them, for any commercial or governmental activities, profit-making or non-profit, including but not limited to home office, business, sales, telecommuting, continuous or extensive call forwarding, autodialing, telemarketing, fax broadcast, fax or voicemail broadcasting or blasting, political polling, or any other activity that would be inconsistent with normal residential usage patterns. This also means that you are not to transfer or resell the Service to or share it with any other person for any purpose or in any manner, or make any charge for the use of the Service, without express written permission from SkyNET in advance. You agree that your use of the Service, or the use of the Service provided to you by any other person for any commercial or governmental purpose will obligate you to pay SkyNET’s higher rates for Commercial Service on account of all periods, including past periods, in which you use, or used, the Service for commercial or governmental purposes. SkyNET reserves the right to immediately terminate or modify the Service, if SkyNET determines, in its sole discretion, that Customer's Service and/or Device(s) is (are) being used for non-residential or commercial use. You agree to be liable for any user time (at a rate set for such services) and excess expenses should SkyNET, in its sole discretion, determine that you are misusing the Services.

E. Business Use of Service

If you have subscribed to SkyNET’s Business Services, the Service and Device(s) is (are) provided to you as a small to medium business user. This means that you are not to transfer or resell the service to or share it with any other person for any purpose or in any manner. You agree that the Business Service does not confer the right to use, nor should you be using, the service or Device(s) for auto-dialing, continuous or extensive call forwarding, telemarketing, fax or voicemail broadcasting or blasting, political polling, or any other activity that would be inconsistent with normal small to medium business usage patterns. SkyNET reserves the right to immediately terminate, modify or upgrade the Service, if SkyNET determines, in its sole discretion, that Customer's Service and Device(s) is (are) being used for any of the above. You agree to be liable for any user time (at a rate set for such services) and excess expenses should SkyNET, in its sole discretion, determine that you are misusing the Services.

F. Lawful Use of Service

You agree to use the Service and Device(s) only for lawful purposes. This means that you agree not to use them for transmitting or receiving any communication or material of any kind when in SkyNET’s sole judgment the transmission, receipt or possession of such communication or material (i) would constitute a criminal offense, give rise to a civil liability, or otherwise violate any applicable local, state, national or international law or (ii) encourages conduct that would constitute a criminal offense, give rise to a civil liability, or otherwise violate any applicable local, state, national or international law. SkyNET reserves the right to terminate your Service immediately and without advance notice if SkyNET, in its sole discretion, believes that you have violated the above restrictions, leaving you responsible for the full month's charges to the end of the current term, including without limitation unbilled charges, all of which immediately become due and payable and may, at SkyNET’s discretion, be immediately charged to you. You are liable for any and all use of the Service and Device(s) by yourself and by any person making use of the Service and Device(s) provided to you and agree to indemnify and hold harmless SkyNET against any and all liability for any such use. If SkyNET, in its sole discretion, believes that you have violated the above restrictions, SkyNET may forward the objectionable material, as well as your communications with SkyNET and your personally identifiable information to the appropriate authorities for investigation and prosecution and you hereby consent to such forwarding.

G. Theft of Service

You agree to notify SkyNET immediately, in writing, by electronic mail or by calling the SkyNET customer support line from your SkyNET registered phone number, if you become aware at any time that your Service and/or Device(s) is being or has been stolen or used fraudulently. When you call or write, you must provide your account number and a detailed description of the circumstances of the fraudulent use of Service and/or Device(s). Failure to do so in a timely manner may result in the termination of your Service and additional charges to you. You must keep your account information private so that it cannot be used by someone else to use the SkyNET network, failure to do so will result in your liability for all fraudulent use of the Service. SkyNET will not issue credit for invoiced charges for fraudulent use, or the lack of your inspection and monitoring of automatic monthly payments by your financial institution to SkyNET or resulting from your negligent or willful acts or those of an authorized user of your Service and/or Device(s).

H. Copyright / Trademark

The Service, Devices, and any firmware or software used to provide the Service or provided to Customer in conjunction with providing the Service, and all Services, information, documents and materials on SkyNET’s website are protected by trademark, service mark, copyright or other intellectual property laws and international treaty provisions. All websites, corporate names, service marks, trademarks, trade names, logos and domain names (collectively "marks") of SkyNET, or SkyNET’s vendors, are and shall remain the exclusive property of SkyNET and/or its vendors, and nothing in this Agreement shall grant you the right to license or to use such marks. You acknowledge that you are not given any license to use the Device, firmware or software used to provide the Service or provided to the Customer in conjunction with providing the Service, other than a nontransferable, revocable license to use such firmware or software (without making any modification thereto) strictly in accordance with the terms and conditions of this Agreement.

I. Service Distinctions

You acknowledge and understand that the Service is not a telecommunications service, rather this is either a dial-around service (if used as such) or a unique service that we provide on a best effort basis. If used as a dial-around service, you must already have or have access to some other phone in order to use the SkyNET Service. If used with a broadband Device(s), important distinctions (some, but not necessarily all, of which are described in this Agreement) exist between telecommunication service and the Service offerings provided by SkyNET. The Service is subject to different regulatory treatment than telephone service. This treatment may limit or otherwise affect your rights of redress before Federal, State or Provincial telecommunications regulatory agencies.

J. Access To or Loss of Service / Interruption of Service

The Dial-Around Service does not function without your access to a working telephone, provided by others, with dial tone. Your failure to access a working telephone to use your SkyNET service with will not affect your responsibility to pay for your SkyNET service. SkyNET’s network, or its access lines, may be out temporarily from time to time for a variety of reasons beyond SkyNET’s control including acts of God, extended loss of power, loss of bandwidth service, equipment failure, or other causes beyond SkyNET’s control. Provided said interruptions are temporary or intermittent, the status of and payment for your Service will not be altered or adjusted.

The Broadband Service does not function without your access to your own privately-acquired broadband (high-speed) internet connection, powered by your own power source. Your failure to access a working broadband connection with its own power source to use your SkyNET Service with will not affect your responsibility to pay for your SkyNET Service. SkyNET’s network, or its access lines, may be out temporarily from time to time for a variety of reasons beyond SkyNET’s control including acts of God, extended loss of power, loss of bandwidth service, equipment failure, or other causes beyond SkyNET’s control. Provided said interruptions are temporary or intermittent, the status of and payment for your Service will not be altered or adjusted.

K. Use of Service / Origination of All Calls

(1) All use of SkyNET’s Service must originate

(a) from a phone that can connect to SkyNET’s network from one of the SkyNET-provided access numbers,

(b) from your phone connected to a Device or Devices we provide you that accesses SkyNET’s network through your broadband internet connection,

(c) or from your computer using software (SkyPHONE softphone) we provide you that accesses SkyNET’s network through your broadband internet connection,

(2) Rates are based on calls originating as stated. International calls, not made in conjunction with any SkyNET plan allowing for such calls, are billed additionally in sixty second increments and at International rates as posted on the SkyNET web site; rates are subject to change at any time beyond what may be posted on the web site.

L. Notice of Rate, Calling Plans, Software or Hardware Devices, or User Terms & Conditions Changes

SkyNET may change the rates, calling plans, software or hardware Devices, or user Terms & Conditions for the Services from time to time. We may decrease prices without providing advance notice. Changes to any other rates, calling plans, or user Terms & Conditions in the Agreement will be published at www.skynet-tel.com and will be incorporated by reference into this Agreement. Changes of use or brand of software or hardware Devices, used and/or delivered to you for use in conjunction of your Service, may be made at any time without notice.

M. Rounding Policy

For billing purposes, the length of each metered call is rounded as described in each Calling Plan. If the computed charge for a call includes a fraction of a cent, the fraction is rounded up to the nearest whole cent. If the computed charges for taxes and surcharges include a fraction of a cent, the fraction is rounded up to the nearest whole cent.

N. Service Outage Due to Suspension of Your Account

You acknowledge and understand that service outages due to suspension of your account as a result of billing issues will prevent ALL Service access. If your account is suspended as a result of a billing issue, and it is determined in SkyNET’s sole discretion the issue and suspension was a direct result of your actions and or lack of actions for any reason, you will be responsible for the normal monthly charges incurred between the time of said suspension of service and reactivation of service, including any re-connect fees to reactivate your service. The current reconnect fee is $19.99.

O. Other Service Outages

You acknowledge and understand that if there is a service outage for ANY reason, such outage may occur for a variety of reasons, including, but not limited to those reasons described elsewhere in this Agreement.

P. Timing of Calls

Generally, timing of metered calls begins when the called party or an automated answering device (such as an answering machine or a facsimile machine) answers the call, and ends when one of the parties disconnects from the call. However, some foreign carriers (with whom SkyNET must interconnect in order to terminate calls to foreign countries) designate a call as "answered" when the called party's line rings or after a certain number of rings, and will charge SkyNET for a completed call. In these situations, SkyNET will charge for the call as if it were answered by the called party.

Q. International Services

(1) Foreign Carrier Restrictions. Foreign carriers or regulatory agencies may impose, upon the portion of the end-to-end international service or facilities they provide, certain limitations or restrictions that may limit your ability to use the SkyNET Services or Devices. You must conform to any limitations or restrictions imposed by the foreign carriers or agencies.

(2) Foreign Carrier Acts or Omissions.

(a) When other U.S. or foreign carriers and foreign telecommunications administrations use facilities to establish connections to points not reached by SkyNET’s network, SkyNET is not liable for acts or omissions of other carriers or foreign telecommunications administrations.

(b) International calls are priced on the basis of the country and city codes dialed by you. When the facilities of other U.S. or foreign carriers are used in establishing connections to points not reached by SkyNET’s network, SkyNET is not liable for refunds or damages if those calls do not terminate in the country, city or area codes associated with the called number.

R. Third Party Products

Electronic Devices, such as phone adapter boxes, auto-dialers, USB phones, SkyPHONE softphone software, and any other like hardware or software, are utilized and distributed to you in an as-is condition, unless otherwise specified. The SkyNET ATM debit card and the SkyNET Advantage MasterCard Card are produced and supported by third party vendors of SkyNET. These products, Devices, and software are governed by their own specific terms and conditions. You agree that you will adhere to these terms and conditions of use for these products, and will hold SkyNET harmless from all claims that may arise from their use. SkyNET electronic Devices are manufactured to be used with electricity of the same voltage as is available in the United States. Use of these Devices must be used with proper voltage regulators if these same voltage requirements are not available. Failure to do so will result in the full cost of these Devices being charged to you.

S. Promotions

(1) From time to time SkyNET may offer customer incentives and special promotions. See promotional materials for program specifics on limited time offerings.

(2) $5 Referral Credit. Subscribing customers will receive a $5 service credit applied to a SkyNET service plan for each referral that becomes a SkyNET customer. This credit is applied after referred customers’ 3rd billing cycle and on the condition that the referring account is current the 3rd month after the referred customer pays.

(3) New broadband subscribers will be given a complimentary month’s use of the SkyNET SkyPHONE softphone service (which requires a download of soft phone software) which can be used to make broadband calls immediately upon sign-up. You will be emailed download instructions upon sign-up completion.

T. Faxes

Sending faxes using the SkyNET Dial-Around Service will work as usual, limited by the performance of your fax machine, your phone line used to connect to SkyNET’s network, or the fax recipient’s lines and equipment. However, you hereby acknowledge that sending faxes using the broadband connection to SkyNET’s network is not the best solution for your faxing needs. Current technology for sending faxes over VoIP has not advanced to the degree to provide for 100% reliable results.

III. DIALING 911 EMERGENCY SERVICES

A. Distinction of Service use

SkyNET understands that you may use the Service in a variety of ways, to include exclusive or non-exclusive use of the Dial-Around access, the broadband analogue phone adapter, the SkyPHONE softphone, or any combination of these. In all cases, 911 Emergency Dialing, whether or not accessed through this Service, is your responsibility to understand how response may be affected by your using this Service.

B. Non-Availability of Traditional 911 or E911 Dialing Service.

The SkyNET Service does not support traditional 911 or E911 access to emergency services in all locations. Where we do not offer traditional 911 or E911 access, we offer a feature known as "911 Dialing" which is a limited emergency calling service available only on SkyNET-certified Devices or Equipment. THE 911 DIALING FEATURE CANNOT BE USED IN CONJUNCTION WITH A SKYNET SOFTPHONE OR VIRTUAL NUMBERS. Our 911 Dialing feature is not automatic; you must separately take affirmative steps, as described in this Agreement, on our website, and through emails sent you upon sign-up of your account with us, to register the address where you will use the Services in order to activate the 911 Dialing feature. You must do this for each SkyNET phone number that you obtain or port to us. The 911 Dialing feature of the Service is different in a number of important ways from traditional 911 or E911 service as described on our website page for 911 Dialing under "Features," and below. You shall inform any household residents, guests and other third persons who may be present at the physical location where you utilize the Service of (i) the non-availability of traditional 911 or E911, and (ii) the important differences in and limitations of the SkyNET 911 Dialing feature as compared with traditional 911 or E911 dialing. The documentation that accompanies each Device that you purchase should include a sticker concerning the potential non-availability of traditional 911 or E911 dialing (the "911 Sticker"). It is your responsibility, in accordance with the instructions that accompany each Device, to place the 911 Sticker on or near each Device that you use with the Service. If you did not receive a 911 Sticker with your Device, or you require additional 911 Stickers, please contact our customer support at 1-866-5-SKYNET (866-575-9638).

C. Registration of Physical Location Required.

For each phone number that you use for the Service, you must register with SkyNET the physical location where you will be using the Service with that phone number. When you move the Device to another location, you must register your new location. If you do not register your new location, any call you make using the 911 Dialing feature may be sent to an emergency center near your old address. You will register your initial location of use when you subscribe to the Service. Thereafter, you may register a new location by following the instructions from the "911" registration link on your SkyNET Personal Account Manager (PAM) page. For purposes of the 911 Dialing feature, you may only register one location at a time for each phone line you use with the Service.

D. Confirmation of Activation Required.

Your 911 Dialing feature will not be activated for any phone line that you are using with the Service, unless and until you receive an email from us confirming that the 911 Dialing feature has been activated for that phone line.

E. How Emergency Personnel are contacted.

We contract with a third party to use the address of your registered location to determine the nearest emergency response center and then forward your call to a general number at that center. When the center receives your call, the operator will not have your address and may not have your phone number. You must therefore provide your address and phone number in order to get help. Some local emergency response centers may decide not to have their general numbers answered by live operators 24 hours a day. If we learn that this is the case, we will send your call instead to a national emergency calling center and a trained agent will contact an emergency center near you to dispatch help. You hereby authorize us to disclose your name and address to third-party service providers, including, without limitation, call routers, call centers and public service answering points, for the purpose of dispatching emergency services personnel to your registered location.

F. Use of Service and Device(s) by Customers Outside the United States.

If you use the Service or the Device(s) outside of the United States, you will be solely responsible for any violations of local laws and regulations resulting from such use. We reserve the right to terminate your Service immediately if we determine, in our sole and absolute discretion, that you have used the Service or the Device(s) outside of the United States in any manner that is detrimental to SkyNET, its customers, distributors or vendors.

G. Tampering with a Device or Service.

You shall not change the electronic serial number or equipment identifier of any Device or to perform a factory reset of any Device without our prior written consent. We reserve the right to terminate your Service if we believe, in our sole and absolute discretion, that you have tampered with the Device. In the event of such termination, you will remain responsible for the full month's charges to the end of the current term, including, without limitation, unbilled charges, plus a termination fee, if applicable, all of which will immediately become due and payable. You shall not attempt to hack or otherwise disrupt the Service or make any use of the Service that is inconsistent with its intended purpose.

H. Service Outages.

(1) Service Outages Due to Power Failure or Disruption. 911 Dialing does not function in the event of a power failure or disruption. If there is an interruption in the power supply, the Service, including 911 Dialing, will not function until power is restored. Following a power failure or disruption, you may need to reset or reconfigure the Device prior to utilizing the Service, including 911 Dialing.

(2) Service Outages Due to Internet Outage or Suspension or Termination of Broadband Service or ISP Service. Service outages or suspensions or terminations of service by your broadband provider or ISP will prevent all Service, including 911 Dialing, from functioning. Following a service outage or disruption, you may need to reset or reconfigure the Device prior to utilizing the Service, including 911 Dialing. Consult with our web site’s FAQ page for this simple operation.

(3) Service Outage Due to Suspension or Termination of Your SkyNET Account. Service outages due to suspension or termination of your account will prevent all Service, including 911 Dialing, from functioning.

(4) Service Outages Due to ISP or Broadband Provider Blocking of Ports or Other Acts. Your ISP or broadband provider or other third party may intentionally or inadvertently block the ports over which the Service is provided or otherwise impede the usage of the Service. In that event, provided that you alert us to this situation, we will attempt to work with you to resolve the issue. During the period that the ports are being blocked or your Service is impeded, and unless and until the blocking or impediment is removed or the blocking or impediment is otherwise resolved, your Service, including the 911 Dialing feature, may not function. You acknowledge that SkyNET is not responsible for the blocking of ports by your ISP or broadband provider or any other impediment to your usage of the Service, and any loss of service, including 911 Dialing, that may result. In the event you lose service as a result of blocking of ports or any other impediment to your usage of the Service, you will continue to be responsible for payment of the Service charges unless and until you terminate the Service in accordance with this Agreement.

(5) Other Service Outages. If there is a Service outage for any reason, such outage will prevent all Service, including 911 Dialing, from functioning. Such outages may occur for a variety of reasons, including, but not limited to, those reasons described elsewhere in this Agreement.

I. Re-Activation Required if You Change Your Number or Add or Port New Numbers.

911 Dialing does not function if you change your phone number or if you add or port new phone numbers to your account, unless and until you successfully register your location of use for each changed, newly added or newly ported phone number.

J. Network Congestion; Reduced Speed for Routing or Answering 911 Dialing Calls.

There may be a greater possibility of network congestion and/or reduced speed in the routing of a 911 Dialing call made utilizing the Service as compared to traditional 911 dialing over traditional public telephone networks.

K. Possible Lack of Automatic Number Identification.

It may or may not be possible for the local emergency personnel to automatically obtain your phone number when you use 911 Dialing. Our system is configured to send the automatic number identification information; however, one or more telephone companies, not us, route the traffic to the emergency response center and that center may not be capable of receiving and passing on that information. As a result, the operator who answers your 911 Dialing call may not be able to automatically obtain your phone number and call you back if the call is not completed or is not forwarded, is dropped or disconnected, if you are unable to speak to tell the operator your phone number, or if the Service is not operational for any reason.

L. No Automated Location Identification.

In most service areas, it is not possible at this time to transmit to the local emergency response center the address that you registered for 911 Dialing. You will need to state the nature of your emergency promptly and clearly, including your location (and possibly your telephone number), as the operator will not have this information. Emergency personnel will not be able to find your location if the call is not completed or is not forwarded, is dropped or disconnected, if you are unable to speak to tell the operator your location, or if the Service is not operational for any reason.

M. Disclaimer of Liability and Indemnification.

SkyNET does not have any control over whether, or the manner in which, calls using our 911 Dialing service are answered or addressed by any local emergency response center. We disclaim all responsibility for the conduct of local emergency response centers and the national emergency calling center. We rely on third parties to assist us in routing 911 Dialing calls to local emergency response centers and to a national emergency calling center. We disclaim any and all liability or responsibility in the event such third party data used to route calls is incorrect or yields an erroneous result. Neither SkyNET nor its officers or employees may be held liable for any claim, damage, or loss, and you hereby waive any and all such claims or causes of action, arising from or relating to our 911 Dialing service unless such claims or causes of action arose from our gross negligence, recklessness or willful misconduct. You shall defend, indemnify, and hold harmless SkyNET, its officers, directors, employees, affiliates, distributors, agents, and any other service provider who furnishes services to you in connection the Service, from any and all claims, losses, damages, fines, penalties, costs and expenses (including, without limitation, attorneys fees) by, or on behalf of, you or any third party relating to the absence, failure or outage of the Service, including 911 Dialing, incorrectly routed 911 Dialing calls, and/or the inability of any user of the Service to be able to use 911 Dialing or access emergency service personnel.

N. Alternate 911 Arrangements.

If you are not comfortable with the limitations of the 911 Dialing service, you should consider having an alternate means of accessing traditional 911 or E911 services or terminating the Service.

IV. CHARGES, TAXES, TERMINATION

A. Money Back Guarantee; Limitations and Conditions.

(1) Residential and Small Business Customers. We offer a 30-day money back guarantee from the date of activation of your Service. The money back guarantee applies only to the first-ordered line per account, not to additional or secondary lines. We will refund the activation fee, the monthly charge for the first month of Service (unless this first month of service was offered free as a promotion), and the termination fee provided that:

(a) you have not exceeded 250 minutes of usage;

(b) you cancel your Service within the applicable period;

(d) the Device(s) is (are) returned in the original packaging with the UPC or bar code intact and is accompanied by all components, accessories, parts, manuals, registration cards and other documentation; and

(e) prior to returning the Device to us, you obtain a valid Return Merchandise Authorization (RMA) number from our customer support department, which can be reached at customersupport@skynet-tel.com or 866-5-SKYNET (866-575-9638), internationally 800-924-1828.

(2) Applicable taxes cannot be refunded. You will be responsible for any charges for international usage, payphone calls to SkyNET toll free numbers and directory assistance. (3) We reserve the right to terminate or revoke this money back guarantee at any time, without prior notice.

B. Excess Use

Excess minutes will be charged in addition to regular monthly calling plan amount and will be billed as follows: if under $25.00 within the monthly billing cycle, they will be billed at time of next account debit (charge) for service; upon the accumulation of $25.00 before the end of the monthly billing cycle, the selected payment method will be charged immediately, and each additional time immediately upon the accumulation of another $25.00. Customers may avoid possible service suspension by recharging their account as set forth in these Terms &Conditions.

C. Non-SkyNET Charges for Calls

(1) Payphone Charges

If you make use of SkyNET’s travel card via a PIN, or any other toll-free service that may be offered by SkyNET in the future, from any pay phone, you acknowledge and agree that SkyNET is entitled to recover from you any charges imposed on SkyNET by payphone owners or operators, either directly or indirectly through SkyNET’s suppliers in connection with toll free calls made to your number, or any charges imposed on SkyNET by its suppliers to recover such costs, in addition to the SkyNET charges for making this call. SkyNET may recover these amounts by means of a per-call charge, rounded up to the next cent, or in such other fashion as SkyNET deems appropriate for the recovery of these costs. Currently this cost is $0.60 per call.

(2) Charges for Directory Calls

SkyNET will charge $1.25 for each call made to SkyNET for directory assistance (411), plus any add on charges assessed SkyNET for this service accessed outside SkyNET’s network.

D. Surcharges

In addition to surcharges that may be found in the applicable Calling Plan, SkyNET may adjust its rates and charges or impose additional rates and charges to recover amounts it is required or permitted by governmental or quasi-governmental authorities to collect from others or pay to others in support of statutory or regulatory funds or programs ("Governmental Charges").

E. Taxes

(1) All taxes, tax-like charges, and tax-related surcharges are referred to collectively as "Tax(es)." SkyNET may elect to impose and collect such Taxes, unless otherwise constrained by court order or direction.

(2) You agree to pay all Taxes imposed. If SkyNET has collected Taxes and a challenged Tax is found to have been invalid and unenforceable, SkyNET, in its sole discretion, will either reduce service rates for a fixed period of time in the future in order to flow-through to customers an amount equivalent to the amounts collected, or it will credit or refund such amounts to affected customers (less its reasonable administrative costs), if the amounts collected were retained by SkyNET or if they were delivered to the jurisdiction and returned to SkyNET, or it will negotiate an arrangement with the jurisdiction to provide a future benefit for customers in that jurisdiction.

F. Termination Fee

You will be charged a termination fee of $39.99 per voice line if your Service is terminated for any reason during the first twelve months following the activation of your Service.

G. Number Portability or Transfer on Service Termination

(1) Phone numbers assigned to you by SkyNET, for use with your SkyNET Service, are the property of SkyNET, and are assigned only for as long as you continue your account, remain in good standing, and keep your payments current. You acknowledge that these assigned phone numbers are not portable or transferable. Upon termination of the Service, SkyNET may, at its sole discretion, release a telephone number that was assigned by SkyNET and used in connection with your Service provisioned by SkyNET to any telephone you own or lease. Release, if so granted, will be conditional on your SkyNET account being completely current, including payment for all charges and fees; and that you request the transfer at least ten (10) days prior to terminating your account.

(2) Phone numbers ported to SkyNET that were previously owned by you remain your property as long as your account remains in good standing. Upon any termination of Service, you may request the number be ported to another carrier and SkyNET will not unreasonably deny such request, provided that

(a) all outstanding business with SkyNET is settled to SkyNET’s satisfaction prior to the number being released,

(b) you request transfer prior to the termination of your account,

(d) and that such new service provider is able to accept such number.

H. Return of Device(s) (May Not Apply to Larger Business Customers that Purchased Device(s))

(1) You may return the Device(s) to us within fourteen (14) days of the termination of Service to receive a credit for the $39.99

termination fee (See Section IV F) provided that:

(a) the Service is terminated within the first thirty (30) days following the activation of the Service;

(b) the Device(s) is (are) in original condition, reasonable wear and tear excluded;

(d) prior to returning the Device(s) to us, you obtain a valid Return Merchandise Authorization number (RMA) from our customer support department, which can be reached at customersupport@slkynet-tel.com or 1-866-5-SKYNET; and

(e) you pay all costs of shipping the Device(s) back to us.

(2) If you disconnect multiple lines, we will issue you a credit for all termination fees upon receipt of all Devices in accordance with the requirements set forth above.

(3) If you receive cartons or Devices that are visibly damaged, you must note the damage on the carrier's freight bill or receipt and keep a copy. In such event, you must keep the original carton, all packing materials and parts intact in the same condition in which they were received from the carrier and contact our customer support department immediately at customersupport@slkynet-tel.com or 1-866-5-SKYNET.

V. CANCELLATION OF SERVICE

A. By the Customer

(1) If you cancel your Service with SkyNET, you will not be able to use the Service.

(2) Cancellation may take up to two business days.

(3) Such cancellation will become effective immediately, but will not cancel any Customer obligation to pay for service for the current month’s charges.

(4) There will be no credits for past months of service.

(5) Cancellation will result in loss of unused minutes for all Calling Plans. Cancellation of Unlimited Access and 1 ¢ Plans will result in no further billing of account other than past and current billing.

(6) In the event a special incentive promotion was offered by SkyNET and accepted by client consisting of minimum subscription duration, client will be required to complete the stated subscription duration or forfeit and be charged the full retail value of any and all promotional items related to the promotion.

(7) Payment will be due in full on premature cancellation by the customer.

(8) CUSTOMER NOTICE OF CANCELLATION - You may cancel this transaction without penalty or obligation within three (3) business days (Alaska residents five (5) days, non-U.S. residents, 10-days) from the date of placing this Retail Order. If you cancel, you must return to SkyNET, in its original condition and packaging as when received, any items, Devices, software, or cards delivered to you under this contract or sale. If you fail to return the items, Devices, software, or cards by U.S. mail to SkyNET, or if you agree to return the items or cards to SkyNET and fail to do so, then you remain liable for performance of all obligations under this contract. To cancel this transaction, mail or deliver a signed and dated copy of your cancellation notice or any other written notice, or send an electronic mail (e-mail) to customersupport@skynet-tel.com , or a telegram not later than midnight three (3) or other applicable business days after the date of purchase to

       SkyNET TeleSystems
       Attn: Customer Support
       PO Box 6888

Spring Hill, Florida 34611

800-924-1828

B. By SkyNET

(1) SkyNET reserves the right to discontinue furnishing Services, cancel your account, and/or block your access to SkyNET’s network, without incurring any liability, immediately and without notice if SkyNET deems that such action is necessary to prevent or to protect against fraud or to otherwise protect SkyNET's personnel, agents, distributors, vendors, facilities, or services. Without limitation, SkyNET may take such actions if:

(a) You refuse to furnish information or furnish false information that (i) is essential for billing; your past or current use of common carrier communications service, or your planned use of such service;

(b) You indicate that you will not comply with a request for security for the payment for Services;

(c) Your Service usage charges exceed established parameters based on your history of usage, which may indicate a likelihood of non-payment or possible fraud;

(d) You have been given written notice by SkyNET of any past due amount (which remains unpaid, in whole or in part) for any of SkyNET's or an affiliated carrier's Service to which you either subscribe or had subscribed or used;

(e) You either refuse to pay when billed for Service or indicate to SkyNET or an entity billing on SkyNET's behalf that you do not intend to pay for Service used by you;

(f) You use, or attempt to use, service with the intent to avoid the payment, either in whole or in part, of the charges for the Service by (i) using or attempting to use Service by rearranging, tampering with, or making connections to Service in an unauthorized manner; or (ii) using tricks, schemes, false or invalid numbers, false credit devices, or other fraudulent means or devices;

(g) You act, or fail to act, in a manner that hinders or frustrates any investigation by SkyNET or others having legal authority to investigate your legal obligations;

(h) Your telephone equipment fails to pass back to SkyNET the appropriate signal to start and stop billing for a call;

(i) You were previously provided with notice of breach of contract, took corrective action, but thereafter engage in the same breach activity; or

(j) You act in a manner that is threatening, obscene, harassing, or abusive to SkyNET personnel.

(k) You act in violation of section or sections herein.

(2) SkyNET reserves the right to discontinue furnishing Services, cancel your account, and/or block your access to SkyNET network, without incurring any liability, immediately upon written notice to you if:

(a) Any invoice charges remain outstanding and owed by you after invoice notifying you of the charges; or

(b) You fail to comply with a request by SkyNET for security for the payment for Services and/or Devices.

(3) The discontinuance of Service(s) by SkyNET pursuant to these provisions does not relieve you of any obligation to pay SkyNET for charges due and owing for Service(s) and/or Devices furnished up to the time of discontinuance. SkyNET may charge you a $39.99 Disconnect Fee if your service is canceled pursuant herein.

VI. PAYMENT OBLIGATIONS

A. Method of Payment

You must provide SkyNET with a valid method of payment when the Service is activated. If this method is a credit card, ACH, E-Check, ATM card, Pay Pal, private Local Exchange Carrier phone bill, or any cash-equivalent instrument, and the instrument expires, you close your instrument-account, your billing address changes, or the instrument is cancelled and replaced because of loss or theft, you must advise SkyNET immediately.

B. Invoiced Charges

SkyNET will invoice all recurring charges on a monthly basis, in advance, to your cash equivalent instrument, or to your local phone bill (if applicable), including but not limited to: activation fees and monthly Service fees, advanced feature charges, equipment purchases and shipping and handling charges. Any charges not included in your calling plan and any additional usage charges are billed after each billing period. If SkyNET changes its rates, recurring monthly charges affected by such change will be assessed at the new rate for the full billing period during which the new recurring charge rate became effective.

C. Liab