FOURTH Amendment to
the Agreement for Billing and Collection Services
BETWEEN SBC LONG DISTANCE AND PACIFIC BELL
This Fourth Amendment to the Agreement for the Billing and Collection Services is date 8/13 , 2003 and is by and among Southwestern Bell Communications Services, Inc. d/b/a SBC LONG DISTANCE ("SBCLD"), PACIFIC BELL TELEPHONE COMPANY d/b/a SBC CALIFORNIA ("SBC CALIFORNIA"), and MICHIGAN BELL TELEPHONE COMPANY d/b/a SBC MICHIGAN ("SBC MICHIGAN").
WHEREAS, SBCLD and SBC CALIFORNIA entered into that certain Agreement for Billing and Collection Services on or about December 18, 2002 (as heretofore amended or otherwise modified, the "Agreement"); and
WHEREAS, SBCLD wishes to amend the Agreement to include SBC MICHIGAN in provisioning of the Billing and Collection Services;
NOW THEREFORE, the parties hereby amend the Agreement as follows:
1. Effective September 26, 2003, the Agreement will include the provision of Billing and Collection Services to the areas served by SBC MICHIGAN. The following changes to the Agreement shall apply only to SBC MICHIGAN, but shall remain unchanged for SBC CALIFORNIA.
2. Exhibit A (Price Schedules) is revised to include pricing for SBC MICHIGAN (Exhibit A for SBC Michigan is attached).
3. Exhibit B (Financial Settlements), Section 4, of the Agreement is revised as follows (Exhibit B, Section 4 is attached).
a) 4.1.1 - Formula for calculation of the Net Purchase/Collected Amount Due Customer is revised for clarification as follows:
§ "Surcharges" is deleted between the words, "Taxes" and "AOC-generated"
§ "Duplicates, Unbillables, and Rebills" is deleted immediately following "+/- Recoursed Adjustments"
§ "- Unbillables" and "= Adjusted Revenues" is added between "+/- Recoursed Adjustments" and "- Anticipated Uncollectibles"
§ "(Uncollectible Factor x Adjusted Revenue" is added immediately following "Anticipated Uncollectibles"
§ "/Uncollectibles and other Miscellaneous items" is added immediately following "+/- Reserve for Recoursed Adjustments"
§ "- Gross Receipts Tax (if applicable)" between "+/- Reserve for Recoursed Adjustments"
§ "= Net Purchased/Collected Amount Due Customer" is deleted.
b) 4.1.1.C - All references to "Duplicates" and "Rebills" are deleted.
c) 4.1.1.D - "and unbillables" is added to the third paragraph between the words “adjustments” and “by”.
d) 4.1.1.D.1 - Paragraph is revised to include the initial period's uncollectible factor and reads, "Customer's initial Uncollectible Factor will be set a 8.6%".
e) 4.1.1.D.3 (b) - The paragraph is deleted.
f) 4.1.2 - The following has been deleted from the second paragraph, "and will pay any net amounts owed to Customer. If the "Net Due" is negative, amounts are to paid within twenty (20) calendar days from the Customer's receipt of the Purchase of Accounts Receivable Statement Date, interest will be charged at the rate described in Paragraph 4.1.7."
g) 4.1.2.B – The second and third paragraphs are deleted.
h) 4.1.6 - The paragraph is deleted.
4. Exhibit D (Thresholds), Section 1.0, is revised to include applicable complaint thresholds for SBC MICHIGAN and SBC CALIFORNIA.
5. Exhibit G (Miscellaneous Services) is adding Section 6 "Service Order Activity Report / Account Marking".
6. All other terms of the Agreement remain unchanged for SBC MICHIGAN.
IN WITNESS WHEREAS, the parties have caused this Fourth Amendment to be executed by their duly authorized representatives.
SOUTHWESTERN BELL COMMUNICATIONS SERVICES, INC. d/b/a SBC LONG DISTANCE / PACIFIC BELL TELEPHONE COMPANY d/b/a SBC CALIFORNIA and MICHIGAN BELL TELEPHONE COMPANY d/b/a SBC MICHIGANName: / Joe Carrisalez / Name: / James Walsh
Title: / Executive Director / Title: / Director
Signature: / Signature:
Date: / 8/13/03 / Date: / 8/7/03
Exhibit A – SBC Midwest Region 5-STATE
SBC MIDWEST REGION 5-STATE Pricing:
Bill Rendering – Invoice Ready / $0.52 per bill rendered
Message Processing – Invoice Ready
Per line includes each line on the entire invoice beginning with the first line of text that appears after Customer's first head and continues through the last line of print Customer places on the bill. Blank lines between lines of text are included in the count. It does not include the disclaimer notice (i.e., the statement indicating there is no connection between SBC Telco and Customer), nor does it include any continuation header used to continue a bill section to a new page. Logo and contact information are not included in the line count. / $.0125 per line
Bill Inquiry – Invoice Ready / · $0.31 per Invoice rendered (charge will be combined with the Bill Rendering charge)
SBC Telco will perform, as required, periodic studies to determine an average percent of time utilized by SBC Telco personnel and the average number of inquiry calls per bills rendered in the support of SBCLD inquiry services. SBC Telco may change the rate for Inquiry Services upon sixty (60) days written notice.
One Time Set-Up Charge - Invoice Ready
Payment is non-refundable and is payable prior to implementation and upon return of the Billing and Collections Implementation Form. / $120,000 (for all 5 SBC Telco states; per CIC)
Customer Initiated Adjustments
· Via EC/IC Memo / · $9.00 per adjustment session
SBC Telco Initiated Adjustments
· Adjustment issued by SBC Telco representative per End User's request / · $9.00 per adjustment session (does not apply if Inquiry Service is ordered)
Monthly Minimum Payment
The Monthly Minimum will be the minimum charge by the SBC Telco for Billing and Collections covered by the combined charges of Bill Rendering and Message Processing in a billed month. The Monthly Minimum will become effective in the first month in which SBC Telco is ready to accept messages. / $3,000 per month, per state (per CIC)
SBC MIDWEST REGION 5-STATE Pricing:
Time and Cost (Development Charges)
The number of hours will be established from a Time and Cost estimate provided by the SBC Telco resulting from review of the program request. / $168 per hour
Emergency Text File Update / $1000.00 per file
Establish the Sub-CIC billing framework (cost includes any of the sub-CICs in the initial set-up) / Time and Cost
Add or changes to Sub-CIC (after establishment of sub-CIC framework) / $600 per request (each request can include up to 50 additions and/or changes; charge is not per state; each request will update all 5 SBC Telco states, if applicable.)
Sub-CIC table print / $50 per request
Administrative Fee
An Administrative Fee applies to every End User complaint received by SBC Telco regarding unauthorized messages, regardless of whether the complaint is ultimately sustained. This charge covers the cost of handling the complaint. / $75.00 per complaint received
Service Order Activity Report (Account Marking) / · $.0006 per record written
Gift Checks
Gift checks are defined as any check written on behalf of Customer and used by an End User for full or partial payment of the SBC Telco bill. / $.25 per gift check processed
Contract Assignment / $250
SBC MIDWEST REGION 5-STATE Pricing:
Standard Work Request Charges
Certain work requests that are of a general nature can be quoted since the programming required to accomplish these requests are of a predictable nature. The categories of common requests are listed below. Rates could differ if request is modifying a standard work request. In addition, the rates below are intended for Customers who utilize Message Ready Billing. Pricing for Invoice Ready Billing may vary.
Change corporate name on end user bill / $1,500 per state (*) (per CIC)
Add, change or eliminate corporate logo on end user bill / $1,500 per state (*) (per CIC)
Change corporate name and logo on end user bill / $3,000 per state (*) (per CIC)
Change toll free inquiry number on end user bill / $1,000 per state (*) (per CIC)
Change corporate name, logo and toll free inquiry number on end user bill / $3,000 per state (*) (per CIC)
Change corporate name and toll free inquiry number on end user bill / $2,500 per state (*) (per CIC)
Connect:Direct via a Dedicated Line
· Convert to Connect Direct (non-recurring system set-up charge)
· Recurring monthly usage charge
· Application set-up charge / · $5,000 per request/per CIC (one request can include 1 to 5 SBC Telco states)
· $ 300 per state (per CIC)
· */**
Reports in tape format
· Recurring monthly charge per tape
· Set-up charge / · $26 per state (per CIC)
· Time and Cost
Reports in both tape and paper format (NOTE: The tape option is no longer available to new B&C customers.)
· Recurring monthly charge per tape/per paper report
· Set-up charge / · $46 per state (per CIC)
· Time and Cost
SBC MIDWEST REGION 5-STATE Pricing:
Clerical Staff Utilization (*)
* Premium per hour rate is two times the rate listed. / $ 60 per hour
Bill Copies / · 1 - 5 bills: $60
· 6 - 10 bills: $120
· 11 - 15 bills: $180
· 16 - 20 bills : $240
· over 20 bills: To be negotiated
Report Regeneration Charge (This charge will be charged on all requests received by SBC Telco to reproduce reports that have already been provided to the Customer. SBC Telco cannot guarantee that reports over 90 days old will be available. If the data used to create the report can be obtained, every effort will be made to regenerate reports upon request. However, please note that it could take up to 30 days to complete the request depending on the number of reports requested and the age of the report. NOTE: If the request is for a duplicate paper report, and if the report is available, a minimum of one-hour Clerical Staff Utilization charge will be assessed.) / $1,000 per report
Postage Escalation Factor
The Customer agrees to pay 40 percent of any postal increase in the first class postage rate that becomes effective during the term of this Agreement. Such increases will be
included in the Bill Rendering charge.
12
Exhibit B
Ameritech
Section 4 - Applicable for:
· Ameritech
44
Exhibit B
Ameritech
(Section 4.0 is applicable only to Ameritech only)
4.0 SETTLEMENT TERMS
4.1 Net Purchased/Collected Amount Due Customer
4.1.1 Formula for Calculation of the Net Purchase/Collected Amount Due Customer
The Ameritech Operating Company (AOC) will use the following formula for the calculation of the Net Purchase/Collected Amount Due Customer for the Purchase/Collection of Accounts Receivable:
Total Revenue Accepted
+ Total Billed Taxes (AOC-generated)
+/- Recoursed Adjustments
- Unbillables
= Adjusted Revenues
- Anticipated Uncollectibles (Uncollectible Factor x Adjusted Revenue
+/- Uncollectible Settlement True-Up
+/- Reserve for Recoursed Adjustments/Uncollectibles and other Miscellaneous items
= Net Purchased/Collected Amount Due Customer
A. Total Revenue Accepted
Customer will provide data sets or transmissions to the AOC on a prearranged schedule. The AOC edits the data sets for untimely messages. The AOC also edits to assure the data sets balance to totals predetermined by Customer and supplied in the data set trailer records.
If there are no edit errors found in the pack header or trailer records, individual message records are edited for acceptability. The AOC purchases all the message records in the pack that are determined to be acceptable.
The revenue on the Purchase/Collection of Accounts Receivable Statement(s) will include all revenues accepted from the transmissions for a specific journal month.
The revenue on the Purchase/Collection of Accounts Receivable Statement(s) will include all revenues accepted from the transmissions for a specific journal month.
B. Total Billed Taxes/Surcharges (AOC-generated)
Billed Taxes include all AOC-generated Federal, State, and Local taxes and additional charges due to taxes that have been billed to the End User. Surcharge amounts include all amounts billed to the End User as directed by Customer.
C. Recoursed Adjustments and Unbillables
1. Recoursed Adjustments
Recoursed Adjustments are amounts that the AOC removes from end user balances and charges back to the Customer via a deduction on the Purchase/Collection of Accounts Receivable Statement. They may be initiated by the Customer or by the end user and include, but are not limited to, adjustments made to end user bills to correct the charges on current or prior bills; lawfully billed amounts removed from end user balances at the direction of the Customer; and disputed billed amounts removed from end user balances.
2. Unbillables
Unbillables are messages or invoices which remain unidentified after standard AOC investigation (e.g. messages from a billing telephone number where no account can be found), messages with invalid data which are detected after successful processing of the transmission and which fail standard AOC correction procedures (e.g. invalid NPA NXX RAO combination) or third number and/or collect messages received for billing on an account which includes a "toll billing exception" indicator.
D. Uncollectible Bad Debt Allowance (for Bad Debt on Accounts Which Have Received Final Bills)
The AOC will subtract on the Purchase/Collection of Accounts Receivable Statement an amount for Anticipated Uncollectibles. Anticipated Uncollectibles are estimated amounts representing the portion of the Total Revenue Accepted, plus or minus Taxes and Surcharges, Recoursed Adjustments and Unbillables - which the AOC expects, will ultimately become Realized Uncollectibles.
Realized Uncollectibles are amounts lawfully billed to End Users by the AOC, which, after standard intervals and application of standard collection procedures, the AOC determines to be impracticable of collection and which are added to the AOC's Realized Uncollectible Accounts and identified with Customer.
The AOC will determine the amounts for Anticipated Uncollectibles by multiplying the Total Revenue Accepted, plus or minus adjustments and unbillables, by the Uncollectible Factor, rounded to the nearest 1/100,000th. The Uncollectible Factor will be determined as described in subsections 1 to 3 as follows:
1. Uncollectible Factor Initial Period (New Billing and Collection Customer only)
At the time a new Customer orders Billing and Collection Services, the AOC will determine the Customer's Uncollectible Factor for the Initial Period. The Initial Period shall be the first nine months for which the Customer is provided Billing and Collection Services if the ninth month is the last month in a calendar quarter (i.e., March, June, September, or December). If the ninth month is the first or second month in a calendar quarter, then the Initial Period shall be the first eight or ten months for which the Customer orders such service.