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r_�C E C 1 S 1982 • i lf•l..l� • ' LAIN DEFINITIONS 1. Upgrade. An upgrade is an enhance- ment to an installed system involving a major equipment or software addition or substitution. I Addition. An addition is the provision of additional or supplementary equip- ment to an installed system, not classified as an upgrade. 3 Payment Ped od. The payment period is the term selected by the customer, from those offered by the Company, during which a product or service is to be provided by -the Company at speci- fied rates. UPGRADES 1_ The Company will determine, by the application of standard rules, whether a requested service modification con- stitutes an upgrade or an addition, and whether the modification is permissible. 2- An upgrade (if permissible) may be requested at any time prior to expira- tion of the payment period in effect at the time of the requested upgrade. 3. An upgrade results in termination of the previously installed service, and applicable termination charges (if any) must be paid by the customer for any equipment removed to effect the upgrade. 4. The customer must enter into a new agreement with the Company covering both the newly installed equipment and any equipment remaining from the original system. 5. The terms and conditions of the new agreement (including available payment periods and the rates and charges) will be those then currently offered by the Company, except that the new agreement must have a pay- ment period longer than one month. The customer will not be required to pay installation charges on any equip- ment remaining from the original system. ADDITIONS 1. The Company will determine, by the application of standard rules, whether a requested -service modification consti- tutes an upgrade or an addition, and whether the modification is permissible. 2. Equipment can be added to an existing system at the customer's option. The Company's then current rates and charges will apply to the addition(s). 3. If at least thirty (30) days remain in the existing system's payment period, the customer may elect to include the addition(s) on the existing agreement to pay for the additions) over the remainder of the existing system's payment period. The Company's then current rates and charges for the addition(s) for that payment period will he imposed: if the Company does not then offer that payment period for the addition(s), the rates and charges for the addition(s) will be those for the longest available payment period that is shorter than the existing system's payment period. 4. If less than thirty (30) days remain in she existing ,system's payment period, the addition(s) must be placed on the one-month payment period at the then current rates and charges for that payment period. S. Alternatively; a customer may select, from those then made available by the Company, a payment period equal to or shorter than the time remaining in the existing system's payment period. If the payment period selected for the addition(s) is shorter than the existing system's payment period, the customer must, upon expiration of that shorter. payment period, either have the addition(s) removed or select a new payment period, in accordance with paragraphs 3, 4 and 5 herein. 6. Except in the case of the one-month payment period, termination charges will apply in the event of disconnection of an addition prior to expiration of its selected payment period. D. REMOVALS Removal of equipment that is not unique or identifiable by a code, where two or more units of the same type are on the customer's premises, will be subject to the folldwing rules: 1. The specific unit(s) no longer desired by the customer will be removed. 2. Termination charges will apply as though the unit(s) with the lowest termination charge had been removed, regardless of which units are actually removed. X, CHANGES IN PAYMENT PERIOD 1. Subsequent to the establishment of service for an item of equipment or a system, a customer may request that the existing payment period be replaced by any other payment period then offered by the Company for the item or system for which the request is made. The Company's then current rates for the payment period selected will apply. 2. No credit will be given for payments made during the original payment period, but nonrecurring charges will not be reapplied. 3. Termination charges for the original payment period will apply if the new payment period is shorter than the remainder of the original payment period. 4. In the case of a payment period change for an item of equipment, the new payment period must be shorter than the time remaining in the payment period for the system as a whole. F. DEFERRED PAYMENT OPTION 1. Customers who select a payment period longer than one (1) month may pay nonrecurring charges plus interest in monthly installments over the length of the selected payment period or over a shorter period specified in 12 -month multiples. This option is subject to Company approval. 2. The charges eligible to be deferred are: (a) Installation (b) Service Establishment (c) Feature Package Installations (excluding subsequent activity) (1) Activation (2) Information/Translation . . BUK F�4i�c 41.73 (d) System Feature (1) Activation (2) Design 3. The, I minimum amount deferrable is $3,000.00. Interest on deferred amounts will be calculated at the rate set forth in the Deferred Payment Agreement exe- cuted by the customer at the time of service provision and will be included in the monthly installments. 4. The interest rate to be charged on de- ferred payments will be revised periodi- cally by the Company. If, in the judgment of the Company, the maxi- mum interest rate allowed by law is insufficient to cover the costs of pro- viding the deferred payment option, the Company will suspend the availa- bility of this option until such time as the costs of providing it can be recovered through the application of a lawful interest rate. Suspension or revision of the deferred payment option will not affect customers who have executed a Deferred Payment Agree- ment prior to the effective date of such suspension or revision. S. All remaining installments (less a credit for unearned interest) must be paid in full upon the Company's demand when the customer: (a) Upgrades the system for which the charges were deferred; (b) Selects a payment period with an expiration date prior to the expira- tion date of the deferral period; (c) Terminates the system prior to expiration of the deferral period; or (d) Fails to pay a monthly installment within thirty (30) days of its due date. 6. A customer may prepay not less than the total outstanding deferred charges at any time during the selected deferral period. In such cases, the customer will be given a credit for the amount of any unearned interest. G. PREPAYMENT 1. At any time, a customer may prepay the total outstanding recurring charges to become due under the customer's Agreement with the Company. Prepay- ment of less than the total outstanding is not permitted. 2. For prepayment of-six�46) months or more, the amount due will be reduced by an amount equal to the total of the recurring charges multiplied by the product of the number of months pre- paid and 0.00375: (total charges) [(months prepaid) (0.00375)] reduction. 3. Customers who change the length of a prepaid payment period will be credited any unused portion of the prepayment, subject to applicable termination charges, if any, as specified in para- graph E.3., above. 4. Customers who terminate service prior to the expiration of a prepaid payment period will have termination charges deducted from the unused portion of the prepayment; any balance will be credited to the customas.