BellSouth Telecommunications, Inc.
Equipment Maintenance Plan
Terms and Conditions

Please read these terms and conditions carefully and retain them for your records.

The terms and conditions set forth herein constitute an agreement between BellSouth Telecommunications, Inc. (BellSouth) and you (Subscriber), as the subscriber to the Equipment Maintenance Plan (Plan) for the services described herein. Your payment of charges for the Plan acts as your acknowledgment of and agreement to these terms and conditions. BellSouth provides to you the optional Equipment Maintenance Plan subject to the following terms:

1. Repair or Replacement of Sets. Under the Equipment Maintenance Plan, in the event of equipment malfunction or failure of operation as a result of normal use and/or power surges, BellSouth will repair or replace one-line or two-line telephone sets that are compatible with a BellSouth analog residential telephone line and/or Caller ID display units owned by the Subscriber and registered with BellSouth. In the event that, in BellSouth's sole discretion, a set is beyond repair, or if the cost of repair would exceed the retail value of a replacement set, it will be replaced with a set comparable in kind and quality. BellSouth makes no representation or warranty that any replacement set will be identical or substantially identical to the set submitted for repair or replacement. Such replacement will be a new set or a pre-owned, refurbished set in BellSouth's sole discretion. Repaired or replaced sets are warranted by BellSouth for 90 days and will be registered automatically as one of the sets to be covered under this Plan. During such 90-day period, any additional repair to or replacement of such sets will not be charged against the Subscriber's annual claims limitation described in paragraph 2 below. BellSouth has the right to receive the benefit of any full or partial manufacturer's warranty or other ancillary coverage remaining on any set covered under this Plan.
   
   
2. Annual Value Limitation on Claims. Under the Plan, you are limited to repairs and/or replacements equal to $400 in total retail value for claims processed in any twelve-month period, commencing with the date upon which you first subscribed to the Plan. The retail value of any set replacement hereunder shall be equal to the market retail value of the replacement set, as determined by BellSouth. The retail value of any set repaired hereunder shall be equal to the market retail value of parts and labor charges for repairing the set, as determined in BellSouth's sole discretion, provided that the retail value for any repair shall not exceed the total retail value of a comparable replacement set. BellSouth will provide such values on a per repair/replacement basis upon completion of each repair or replacement under this Plan.
   
   
3. Payment. You agree to pay monthly charges for this Plan as such charges may appear on your BellSouth telephone bill, and there will be no additional charge for repairing or replacing the registered sets. The monthly rate for the Plan was provided to you at the time you subscribed to the Plan. You may contact your BellSouth representative for the current applicable rate for the Plan. Because this Plan is optional, non-payment of charges for this Plan will not cause termination or denial of your regular telephone service. Non-payment will, however, result in cancellation of the Plan and application of a late payment charge on any delinquent charges for the Plan at the rate imposed by BellSouth for other BellSouth charges as set forth in applicable tariffs.
   
   
4. Exclusions from Coverage. This Plan does not cover the following:
   
   
   1. Problems caused by abuse, misuse, improper installation, water damage or customer negligence;
   2. Pre-existing conditions at the time of your subscription to the Plan;
   3. Acts of God, including but not limited to floods, fires, and the like, except that damage due to power surge is covered under this Plan;
   4. Problems resulting from a Manufacturing Defect, which is defined as a malfunction or limitation of functionality that is a result of the original manufacturer's design plan or manufacturing process (the existence of a Design Defect shall be determined solely by BellSouth);
   5. Failure, inoperability, or disruption of any telephone, phone function or service, or Caller ID function, caused directly or indirectly by design, planning, programming or engineering compatibility with the year 1999 or year 2000 and beyond;
   6. Decorative telephone sets (e.g., football phones);
   7. Telephone accessories, such as headsets, cords, equipment designed to be used by the physically or hearing impaired, and the like;
   8. Routine maintenance and consumable items, such as batteries;
   9. Rotary telephones;
   10. Telephones with 3 or more lines or PBX/Key systems; and
   11. Answering machines, telephones with integrated answering machines, and other non-telephone equipment (other than Caller ID display units).
   
   
   
5. Coverage Under the Plan. This Plan is available only to end user subscribers of BellSouth residential telephone service and is offered on a per household or residence address basis. The Plan will become effective and billing will commence upon Subscriber's subscription to the Plan; provided, however, that no claims will be accepted within the first thirty- (30) days following such subscription. In the event the Subscriber transfers its BellSouth landline telephone service to another location within BellSouth's territory, there will be no lapse in coverage. Charges for the Plan are billed one month in advance.
   
   
6. Cancellation. This Plan is provided on a month-to-month basis and can be canceled by the Subscriber upon notice to BellSouth. BellSouth will refund to the Subscriber the unearned portion of the monthly rate for the Plan that the Subscriber may have paid prior to such cancellation. BellSouth shall not cancel the Plan during any thirty- (30) day term except for the Subscriber's fraud, material misrepresentation, or failure to pay consideration due. Any such cancellation by BellSouth shall be in writing and shall conform to applicable state law. Notwithstanding the foregoing, BellSouth may elect not to renew the Plan upon 30 days written notice to the Subscriber. Upon any termination or cancellation, coverage under the Plan will continue for thirty days following the date of cancellation.
   
   
7. Registration. The Subscriber will be responsible for completing the Plan registration form to register the Subscriber's telephone sets and/or Caller ID display units that are to be covered under this Plan and returning the form to the designated reply address. Failure to complete and return the registration form may result in a delay in coverage, as coverage will be provided only on the Subscriber's registered sets. Changes and/or updates to the subscriber's coverage registration form can be made by submission of a replacement registration form at any time either by mail or through the Internet. The Subscriber may call the BellSouth business office to obtain additional registration forms or to obtain the appropriate Internet address.
   
   
8. Claims Process. In the event one or more of the registered sets malfunctions, the Subscriber may file a claim either via the Internet at the address specified on the registration form or by calling a BellSouth service representative. Subscriber will receive an authorization code and will be informed of the closest distribution channel which will accept a drop off of Subscriber's set for repair or replacement. The repaired or replacement set will be available for pick up within ten (10) business days at the same drop off location; provided, however, that the Subscriber's failure to register the set prior to reporting a claim under the Plan may result in a delay in the return of the set. Sets submitted to BellSouth through the distribution channel drop off location are not eligible for return to Subscriber by mail. Subscriber may opt to mail a defective set to be repaired to the address provided on the registration form. In the event Subscriber chooses to mail the set, Subscriber will be responsible for postage and insurance, if any (should the Subscriber choose to insure the set), and for any charges incurred in sending the package by certified mail. BellSouth assumes no responsibility for any items not received by mail. All sets forwarded to BellSouth by mail will be returned by mail. Return postage will be paid by BellSouth.
   
   
9. Changes to the Plan. BellSouth may change the monthly charge for the Plan, the administration of the Plan or these terms and conditions from time to time upon thirty- (30) days written notice to the Subscriber. Such notice may be provided in a bill insert, as a message printed on the BellSouth bill, in a separate mailing, or by any other reasonable method at BellSouth's discretion. If the Subscriber does not accept the modified charges or terms of the Agreement, or the modified administration of the Plan, the Subscriber may cancel the Plan in accordance with these terms and conditions.
   
   
10. LIMITATION OF LIABILITY. BellSouth's liability for any negligence, error, mistake, or omission regarding the Plan or repair or replacement of sets under the Plan is limited to a correction of any such error, mistake or omission. If such a correction is not possible, BellSouth's liability will be limited to charges paid to BellSouth pursuant to the Plan. Any refund must be requested by the Subscriber. BELLSOUTH WILL IN NO EVENT BE LIABLE FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR CONNECTED TO THE PROVISION OF THE PLAN OR REPAIR OR REPLACEMENT OF SETS UNDER THE PLAN AND CAUSED BY NEGLIGENCE, ERROR, MISTAKE OR OMISSION ON THE PART OF BELLSOUTH OR ITS EMPLOYEES, AGENTS OR SUBCONTRACTORS.
    
    
11. Force Majeure. BellSouth shall not be held responsible for any delay or failure in performance of any part of this Agreement to the extent that such delay or failure is caused by fire, flood, explosion, war, strike, embargo, government requirement, regulatory agency requirement, civil or military authority, act of God, or other similar causes beyond BellSouth's control ("condition"). If any such condition occurs, BellSouth may elect to terminate this Agreement and the Plan immediately without notice.
    
    
12. Abuse of the Plan. This Plan is for the Subscriber's use only and may not be assigned. Telephone sets or Caller ID display units owned by anyone other than the Subscriber may not be registered under the Plan. Any abuse of the Plan by the Subscriber, including but not limited to seeking repair or replacement of a set not belonging to Subscriber, may result in termination of the Plan upon notice.
    
    
13. Non-waiver. BellSouth's failure in any circumstance to require strict adherence to any term or condition set forth herein shall not be deemed a waiver by BellSouth of any such term or condition under any other circumstance or of any other term or condition set forth herein.
    
    
14. Insurance. BellSouth is insured for its performance under this Plan through a contractual liability policy issued by The American Modern Insurance Company (AMIC), 7000 Midland Boulevard, Amelia, Ohio 45102. A copy of such policy is available at BellSouth's principal office, 675 West Peachtree Street, NE, Atlanta, GA 30375, and may be viewed by the Subscriber upon request. The Subscriber may contact AMIC directly at (513) 943-7200 to make a claim regarding (1) any properly submitted and authorized claim not paid by BellSouth within sixty (60) days, or (2) any failure of BellSouth to refund any consideration due to the Subscriber within sixty (60) days of the date due.