<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 10-QSB
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QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1996
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Commission File Number 1-31070
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Derma Sciences, Inc.
(Exact name of small business issuer as specified in its Charter)
Pennsylvania 23-2328753
(State or other jurisdiction (IRS employer
of Incorporation) identification number)
121 West Grace Street
Old Forge, PA 18518
(717) 457-1232
(Address including zip code and telephone
number, of principal executive offices)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes|X| No| |
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.
Date: June 30, 1996 Class: Common Stock, par value $.01 per share
Shares Outstanding: 4,054,233
<PAGE>
DERMA SCIENCES, INC.
FORM 10-QSB
INDEX
Description Page
Part I - Financial Information
Item 1. Condensed Financial Statements
Balance Sheet - June 30, 1996........................................ 2
Statements of Income - Three months ended June 30, 1995
and June 30, 1996................................................. 3
Statements of Income - Six months ended June 30, 1995
and June 30, 1996................................................. 4
Statements of Cash Flows - Six months ended June 30, 1995
and June 30, 1996................................................. 5
Notes to Condensed Financial Statements.............................. 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations....................................... 7
Part II - Other Information
Item 1. Legal Proceedings............................................... 11
Item 6. Exhibits and Reports on Form 8-K................................ 11
<PAGE>
DERMA SCIENCES, INC.
BALANCE SHEET
June 30, 1996
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 36,206
Short-term investments 2,402,424
Accounts receivable 1,333,001
Inventory 993,991
Other current assets 214,052
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Total Current Assets 4,979,674
PROPERTY AND EQUIPMENT, net 202,208
OTHER ASSETS 861,581
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TOTAL ASSETS $ 6,043,463
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Demand note payable $ 800,000
Accounts payable 515,425
Other current liabilities 304,058
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Total Current Liabilities 1,619,483
DEFERRED TAXES (8,545)
NOTES PAYABLE 190,000
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value, authorized 15,000,000 shares,
issued and outstanding 4,054,233 shares 40,542
Additional paid-in capital 4,584,719
Retained deficit (382,736)
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Total Shareholders' Equity 4,242,525
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Total Liabilities and Shareholders' Equity $ 6,043,463
================
See accompanying notes.
<PAGE>
DERMA SCIENCES, INC.
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
June 30,
-------------------------------
1995 1996
--------------- --------------
NET SALES $ 1,153,350 $ 1,453,223
COST OF SALES 261,916 225,356
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GROSS PROFIT 891,434 1,227,867
OPERATING EXPENSES:
Product development 167,647 197,710
Selling, general and administrative 821,607 966,968
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Total Operating Expenses 989,254 1,164,678
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(LOSS) INCOME FROM OPERATIONS (97,820) 63,189
OTHER INCOME (EXPENSE):
Interest income 83,648 37,378
Interest expense (14,676) (16,065)
Deferred merger & acquisition costs (294,268) 0
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Total Other (Expense) Income (225,296) 21,313
(LOSS) INCOME BEFORE INCOME TAXES: (323,116) 84,502
Income taxes (61,305) (30,429)
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NET (LOSS) INCOME $ (261,811) $ 114,931
=============== ==============
NET (LOSS) INCOME PER COMMON SHARE ($0.06) $0.03
=============== ==============
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 4,054,233 4,054,233
=============== ==============
See accompanying notes.
<PAGE>
DERMA SCIENCES, INC.
STATEMENTS OF INCOME
(Unaudited)
Six Months Ended
June 30,
------------------------------------
1995 1996
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NET SALES $ 2,702,764 $ 2,496,398
COST OF SALES 610,410 485,217
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GROSS PROFIT 2,092,354 2,011,181
OPERATING EXPENSES:
Product development 332,071 402,286
Selling, general and administrative 1,792,983 1,866,786
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Total Operating Expenses 2,125,054 2,269,072
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LOSS FROM OPERATIONS (32,700) (257,891)
OTHER INCOME (EXPENSE):
Interest income 107,196 78,829
Interest expense (27,856) (30,547)
Deferred merger & acquisition costs (294,268) 0
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Total Other (Expense) Income (214,928) 48,282
LOSS BEFORE INCOME TAXES: (247,628) (209,609)
Income taxes (22,594) (55,217)
------------------ -----------------
NET LOSS $ (225,034) $ (154,392)
================== =================
NET LOSS PER COMMON SHARE $ (0.06) ($0.04)
================== =================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 4,054,233 4,054,233
================== =================
See accompanying notes.
<PAGE>
DERMA SCIENCES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
-----------------------
1995 1996
----------- -----------
OPERATING ACTIVITIES:
Net Loss $ (225,034) $ (154,392)
Adjustments to Reconcile Net Loss to Net Cash
Provided by (Used in) Operating Activities:
Depreciation and amortization 17,936 24,638
Provision for bad debts
Changes in operating assets and liabilities:
Accounts receivable 347,784 13,012
Inventory (320,698) 75,694
Other current assets (127,989) 17,310
Other assets 33,288 4,431
Accounts payable 230,999 133,792
Accrued expenses 0 (36,964)
Income taxes payable 0 (66,290)
Other current liabilities (79,317) 0
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Net Cash (Used in) Provided by Operating Activities (123,031) 11,231
INVESTING ACTIVITIES:
Deferred merger & acquisition costs 294,268 0
Acquisition of Morgan Paris 0 (364,130)
Increase in short-term investments (12,198) (22,949)
Purchases of property and equipment (36,748) (48,642)
Increase in patents and trademarks (17,764) (24,830)
Proceeds from sale of fixed assets 10,000 0
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Net Cash Provided by (Used in) Investing Activities 237,558 (460,551)
FINANCING ACTIVITIES:
Net change in revolving line of credit (30,000) 100,000
Principal payments on long-term debt and capitalized
lease obligations (5,419) (247)
Note Payable for Acquisition 0 190,000
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Net Cash (Used in) Provided by Financing Activities (35,419) 289,753
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS 79,108 (159,567)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 8,693 195,773
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CASH & CASH EQUIVALENTS AT END OF PERIOD $ 87,801 $ 36,206
============ ==========
See accompanying notes.
<PAGE>
Note 1 - Basis of Presentation
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six-month period ended June 30, 1996,
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1996. For further information, refer to the financial
statements and footnotes thereto for the year ended December 31, 1995, included
in Form 10-KSB filed with the Securities and Exchange Commission on March 29,
1996.
Note 2 - Officers Note Receivable
Various officers of the Company received draws against incentive
compensation during 1994 totaling approximately $296,156. The Compensation
Committee of the Board of Directors subsequently determined that no incentive
compensation was payable relative to 1994. Accordingly, the officers executed
promissory notes requiring repayment of the incentive compensation over a period
of ten years with interest of 8.01% per annum. In 1995, the Compensation
Committee approved forgiveness of one officer's promissory note in the amount of
$34,292 as part of the officer's severance package.
Note 3 - Morgan Paris Acquisition
During May 1996, the Company acquired the contract rights under the Morgan
Paris Master Distributorship Agreement for $350,000. The Company paid $160,000
at the date of closing. The remaining purchase price will be paid in two equal
installments of $95,000 on or before December 31, 1997 and 1998, respectively.
The cost of the acquisition has been capitalized and is being amortized
over the remaining thirty-month term of the master distributorship agreement.
<PAGE>
DERMA SCIENCES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Quarter Ended June 30, 1996 Compared to Quarter Ended June 30, 1995
Results of Operations
Net Sales and Gross Profit
Net sales for the second quarter, 1996 increased $299,873, or 26%, to
$1,453,223 from $1,153,350 in the second quarter, 1995. The increase in net
sales is attributable to sales of Dermagran Ointment more than doubling as
compared to the second quarter, 1995.
Net sales of Dermagran Ointment increased $566,331, or 105%, to $1,104,055
in the second quarter, 1996 from $537,724 in the second quarter, 1995. Net sales
of Dermagran Spray increased $20,962, or 30%, to $90,976 in the second quarter,
1996 from $70,014 in the second quarter, 1995. Net sales of Dermagran
Hydrophilic Wound Dressing decreased $130,072, or 38%, to $211,337 in the second
quarter, 1996 from $341,409 in the second quarter, 1995. The decrease in net
sales of Dermagran Hydrophilic Wound Dressing is primarily a result of the
restructuring of Medicare reimbursement relative to various sizes of this
product used for certain purposes. A secondary factor in this decrease is the
lowering of prices for this type of dressing by the Company's competition. Net
sales of Dermagran Zinc-Saline Wet Dressing remained constant while sales of
Dermagran Wet Dressing (Saline) decreased $54,546, or 94%, to $3,488 in the
second quarter, 1996 from $58,034 in the second quarter, 1995. The decrease in
Dermagran Wet Dressing (Saline) sales is attributable to the loss of Medicare
reimbursement for this dressing.
Cost of sales, expressed as a percentage of net sales, decreased from 23%
in the second quarter, 1995 to 16% in the second quarter, 1996. Aggregate cost
of sales decreased $36,560, or 14%, to $225,356 in the second quarter, 1996 from
$261,916 in the second quarter, 1995. These decreases resulted from shifts in
the product mix toward relatively higher margin products.
Gross profit, expressed as a percentage of net sales, increased from 77% in
the second quarter, 1995 to 85% in the second quarter, 1996. Aggregate gross
profit increased $336,433, or 38%, to $1,227,867 in the second quarter, 1996
from $891,434 in the second quarter, 1995.
<PAGE>
Operating Expenses
Operating expenses increased $175,424, or 18%, from $989,254 in the second
quarter, 1995 to $1,164,678 in the second quarter, 1996. Product development
expense for the second quarter, 1996 increased $30,063, or 18%, to $197,710 from
$167,647 in the second quarter, 1995. The increase in product development
expense is primarily attributable to the hiring of a Director of Research and
Medical Communications and other additional product development staff.
Selling, general and administrative expense for the second quarter, 1996
decreased as a percentage of net sales to 67% from 71% in the second quarter,
1995 and increased $145,361, or 18%, to $966,968 in the second quarter, 1996
from $821,607 in the second quarter, 1995. The aggregate increase is primarily
attributable to increases in sales and marketing expense, commissions expense
and salaries and wages expense.
Sales and marketing expense for the second quarter, 1996 expressed as a
percentage of sales increased to 19% from 12% in the second quarter, 1995.
Aggregate sales and marketing expense increased $138,549, or 100%, to $277,372
for the second quarter, 1996 from $138,823 for the second quarter, 1995. This
increase is primarily attributable to the introduction of the Company's disease
management program, implementation of a telemarketing program and increased
advertising and product promotional expenses. Commissions expense for the second
quarter, 1996 expressed as a percentage of sales increased to 15% from 13% in
the second quarter, 1995. Aggregate commissions expense increased $62,380, or
40%, to $216,943 for the second quarter, 1996 from $154,563 for the second
quarter, 1995. This increase is primarily attributable to higher net sales of
Dermagran Ointment and Dermagran Spray which generate higher sales commissions.
Salaries and wages expense for the second quarter, 1996, expressed as a
percentage of sales, increased to 16% from 13% in the second quarter, 1995.
Aggregate salaries and wages expense increased $60,242, or 41%, to $234,236 for
the second quarter, 1996 from $145,391 for the second quarter, 1995. This
increase is primarily attributable to the hiring of additional personnel and
raises in salaries for existing personnel.
Income from Operations
The Company had income from operations for the second quarter, 1996 in the
amount of $63,189, or $.02 per share, compared to a loss from operations of
$97,820 for the second quarter, 1995. This quarter's income from operations is
primarily attributable to the increase in net sales.
Net Income
The Company had net income of $114,931, or $.03 per share, for the second
quarter, 1996 compared to a net loss of $261,811, or $.06 per share, for the
second quarter, 1995. This quarter's income is primarily attributable to the
increase in net sales.
<PAGE>
Six Months Ended June 30, 1996 Compared to Six Months Ended June 30, 1995
Results of Operations
Net Sales and Gross Profit
Net sales for the six months ended 1996 decreased $206,366, or 8%, to
$2,496,398 from $2,702,764 in the six months ended 1995. The decrease in net
sales is primarily attributable to lower sales during the first quarter, 1996.
Net sales of Dermagran Ointment increased $172,641, or 11%, to $1,699,501
in the six months ended 1996 from $1,526,860 in the six months ended 1995. Net
sales of Dermagran Hydrophilic Wound Dressing decreased $30,505, or 6%, to
$496,068 in the six months ended 1996 from $526,573 in the six months ended
1995. Net sales of Dermagran Spray decreased $113,498, or 42%, to $159,341 in
the six months ended 1996 from $272,839 in the six months ended 1995. Net sales
of Dermagran Zinc-Saline Wet Dressing decreased $5,967, or 7%, to $78,668 in the
six months ended 1996 from $84,635 in the six months ended 1995. Dermagran Wet
Dressing (Saline) decreased $100,597, or 88%, to $13,460 in the six months ended
1996 from $114,057 in the six months ended 1995. The decreases in sales of
certain of the Company's products are set forth under "Quarter Ended June 30,
1996 Compared to Quarter Ended June 30, 1995 - Results of Operations - Net Sales
and Gross Profit."
Cost of sales, expressed as a percentage of net sales, decreased from 23%
in the six months ended 1995 to 19% in the six months ended 1996. Aggregate cost
of sales decreased $125,193, or 21%, to $485,217 in the six months ended 1996
from $610,410 in the six months ended 1995. These decreases resulted from shifts
in the product mix toward relatively higher margin products.
Gross profit, expressed as a percentage of net sales, increased from 77% in
the six months ended 1995 to 81% in the six months ended 1996. Aggregate gross
profit decreased $81,173, or 4%, to $2,011,181 in the six months ended 1996 from
$2,092,354 in the six months ended 1995.
Operating Expenses
Operating expenses increased $144,018, or 7%, from $2,125,054 in the six
months ended 1995 to $2,269,072 in the six months ended 1996. Product
development expense for the six months ended 1996 increased $70,215, or 21%, to
$402,286 from $332,071 in the six months ended 1995. The increase in product
development expense is primarily attributable to research relative to the
expansion of the Company's products into the dermatology market and the hiring
of additional product development personnel.
<PAGE>
Selling, general and administrative expense for the six months ended 1996
increased as a percentage of net sales to 75% from 66% in the six months ended
1995 and increased in the aggregate $73,803, or 4%, to $1,866,786 in the six
months ended 1996 from $1,792,983 in the six months ended 1995. The increase in
selling, general and administrative expense is primarily attributable to
increases in sales and marketing expense, salaries and wages expense and general
administrative expense.
Sales and marketing expense for the six months ended 1996 expressed as a
percentage of sales increased to 17% from 10% in the six months ended 1995.
Aggregate sales and marketing expense increased $155,281, or 57%, to $428,416
for the six months ended 1996 from $273,135 for the six months ended 1995. This
increase is primarily attributable to the development of the Company's
interactive wound care brochure, development and introduction of the Company's
disease management program, implementation of a telemarketing program and
increased advertising and product promotional expenses. Salaries and wages
expense for the six months ended 1996, expressed as a percentage of sales,
increased to 18% from 15% in the six months ended 1995. Aggregate salaries and
wages expense increased $63,036, or 16%, to $457,587 for the six months ended
1996 from $394,551 for the six months ended 1995. This increase is primarily
attributable to the hiring of additional personnel and raises in salaries for
existing personnel. General administrative expense for the six months ended 1996
expressed as a percentage of sales, increased to 3% from 2% in the six months
ended 1995. Aggregate general administrative expense increased $45,310 to
$86,070 for the six months ended 1996 from $40,760 for the six months ended
1995. This increase is primarily attributable to public relations activity.
Loss from Operations
The Company incurred a loss from operations for the six months ended 1996
in the amount of $257,891, or $.06 per share, compared to a loss from operations
of $32,700, or $.01 per share, for the six months ended 1995. The increased loss
from operations is primarily attributable to the decrease in net sales and the
increase in sales and marketing expense.
Net Loss
The Company incurred a net loss of $154,392, or $.04 per share, for the six
months ended 1996 compared to a net loss of $225,034, or $.06 per share, for the
six months ended 1995.
Liquidity and Capital Resources
The Company's cash, cash equivalents and short-term investments at June 30,
1996 increased $84,788, or 4%, to $2,438,630 from $2,353,842 at June 30, 1995.
The Company's working capital at June 30, 1996 increased $203,927, or 6%, to
$3,360,191 from $3,156,264 at June 30, 1995.
<PAGE>
Part II - Other Information
Item 1. Legal Proceedings
Information required by Item 103 of Regulation S-B and required hereunder,
as filed with the Securities and Exchange Commission on Form 10-KSB on March 29,
1996 and on Form 8-K on July 2, 1996 is incorporated herein by reference.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits. With the exception of the following, all exhibits required by
Item 601 of Regulation S-B and required hereunder, as filed with the Securities
and Exchange Commission on Form 10-KSB on March 29, 1996 and on Form 8-K on July
2, 1996 are incorporated herein by reference.
Item Description
10.01 Network Services Agreement between the Company and CompuServe,
Inc.
10.02* Promissory note between the Company and Donald F. McHale
27 Financial Data Schedule
*Management Contract
(b) Reports of Form 8-K. No reports were filed on Form 8-K during the
second quarter, 1996.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
DERMA SCIENCES, INC.
Dated: August 13, 1996 By: /s/ Gary L. Borthwick
---------------------
Gary L. Borthwick, Vice President for
Finance and Operations and Chief
Financial Officer
- --------------------------------------------------------------------------------
ATTACHMENT TO NETWORK SERVICES AGREEMENT
- --------------------------------------------------------------------------------
In addition to the terms and conditions contained in the Network Services
Agreement, Customer and CompuServe Incorporated further agree:
Customer agrees to execute a Network Services Agreement with an initial Extended
Term Plan of three (3) year(s) with an Annual Minimum of $60,000 in Year 1, an
Annual Minimum of $120,000 in Year 2, and an Annual Minimum of $180,000 in Year
3. CompuServe agrees to provide Customer with the special terms contained in
this Attachment.
I. Enterprise Connect(sm) for WinCIM Direct
1. Service Description
The Enterprise Connect for WinCIM Direct service ("WCD Service"), consists
of: (i) access to information provided by Customer stored on a
Customer-provided server by Customer's Users through the CompuServe network
and CompuServe Internet Protocol processors and communications equipment,
and (ii) CompuServe's Windows-based CompuServe Information Manager
software("WINCIM"), configured with Customer's logo provided by Customer,
Customer's universal resource locator at the time this Attachment is
executed, up to four (4) Customer-specified "Favorite Places" (to include
CompuServe's New Member Welcome Center, Member Services & Support and
WinCIM Help & Information), Customer's choice of up to four (4) designated
tickers in the "Quotes" area (collectively the "Dial Product"), and (iii)
access to the CompuServe Information Service, and (iv) access to the
Internet.
The term "Users" means individuals that obtain the Dial Product from
Customer and access the WCD Service.
2. Rates
Users will be billed by CompuServe at the then current rates published
online, and will have the option to select,during the registration process,
any of CompuServe's then standard pricing plans for access to the WCD
Service and the CompuServe Information Service.
3. Obligations of Customer
a. Customer shall provide and maintain the content of its information
and it avalability on the WCD Service.
b. Customer shall actively market and promote,at its sole expense,the
distribution of the Dial Product and the use of the WCD Service.
Customer's marketing and promotion efforts will include:
1. Customer will develop, print and place advertisements in
Extended Care Product News. The advertisements will contain
information about the WCD Service and will explain how users can
obtain memberships for the WCD Service. This advertisement may
also be used in other ways to promote the WCD Service. The
advertising will begin no later that thirty (30) days after the
availability of the WCD Service and will appear on a quarterly
basis.
2. Customer will be exhibiting at two to three (2-3) trade
shows per year. The attendees will be provided subscription
information about the WCD Service, copies of the Dial Product and
live demos of the WCD Service.
3. Customer will incorporate the WCD Service into its annual
conference schedule. Customer will provide attendees with WCD
Service demos.
4. Customer will issue a press release announcing the
availability of the WCD Service within thirty (30) days of WCD
Service availability.
5. Customer will offer special incentives to customers who
subscribe to the WCD Service within thirty (30) days of
purchasing the Customer's product or service. Customer is
responsible for all administration of special programs. The
special incentives program will be available on an ongoing basis.
<PAGE>
c. Customer shall distribute the Dial Product with the User agreement
provided by CompuServe.
d. Except for mutually agreed upon references, neither the Customer
nor CompuServe shall present or permit any advertising or promotional
material which makes reference to the other's products or services, or
trademark, logo or similar symbol, without prior written approval by the
other party. All advertising or promotional material which makes
reference to the other party's products or services must be approved by
that party before final release. Approval shall not be unreasonably
withheld and must be communicated within a reasonable amount of time.
e. Customer agrees it will notify CompuServe three (3) months prior to
changing its universal resource locator.
f. Customer agrees that CompuServe is and shall remain while this
Attachment is in force the exclusive provider of access to the WCD
Service and the exclusive provider of the Dial Product.
4. CompuServe reserves the right to terminate this Attachment upon thirty
(30) days prior written notice to Customer should ten percent (10%) or more
of the total charges generated under the WCD Service defined in this
Attachment remain uncollectible for any two (2) consecutive months that
this Attachment is in effect; should Customer remit payment for all of
these charges to CompuServe before the end of thirty (30) days, then this
Attachment will remain in force. CompuServe reserves the right to suspend
or terminate access to Customer's WCD Service for any User if any payment
due is not made within thirty (30) day after the billing date.
5. Distribution
a. CompuServe grants to Customer, a limited non-exclusive license to
distribute the Dial Product in connection solely with the WCD Service
defined in this Attachment.
b. Customer shall have no right to make or authorize any further copies of
the Dial Product or any portion thereof, nor any right to decompile,
disassemble, reverse engineer, or make or distribute any other form of,
or derivative work from the Dial Product.
c. CompuServe grants Customer a limited, non-exclusive license to use the
WINCIM trademark in connection with the WCD Service.
6. Order and Shipping
The minimum initial and reorder quantity is ten thousand (10,000) Dial
Product diskettes. Customer will be charged $1.50 for each Dial product
diskette inserted into a black, CompuServe standard diskette mailer,
CompuServe Model CS-081GM(05/95), which shall be delivered to the Customer
unsealed. The label on each diskette may, at Customer's request, include
Customer's logo as contained in artwork supplied by Customer. Shipment
shall be via ground transportation at CompuServe's expense.
7. Customer Warranties
Customer warrants that the information on its server(s) which is presented
to Users is and will be reliable, and does not and will not (i) infringe
upon or violate any copyright, patent, trade secret, or other proprietary
right; (ii) libel, defame, slander, invade the privacy of, or violate the
publicity rights of any person; or (iii) violate any applicable law or
regulation. CompuServe Warranties, Limitations on Liability.
In addition to the warranty contained in Paragraph 6.1 of the Agreement
Terms and Conditions, CompuServe warrants that any physical medium on which
the Dial Product is distributed and the documentation are free from defects
in materials and workmanship. CompuServe will replace defective media or
documentation provided they are returned to CompuServe within 60 days of
the date of delivery. Should the Dial Product fail to perform in
substantial compliance, with documentation supplied by CompuServe,
CompuServe will replace such copies with copies that do perform in
substantial compliance upon Customer's explanation of the defect and return
of all copies of the Dial Product and documentation. If this remedy fails,
Customer's sole remedy shall be to terminate the use of the WCD Service and
to receive a pro-rated refund of the fees paid based on the percentage of
non-complying copies, less any royalties paid to Customer. With regard
solely to the WCD Service, the remedies contained in this paragraph are in
lieu of the remedies contained in Paragraph 6.4 of the Agreement Terms and
Conditions.
<PAGE>
8. Relationship and Indemnification
a. The relationship between Customer and CompuServe shall be that of
buyer and seller, as independent contractors. Nothing contained
in this Agreement shall constitute the Customer being the outlet,
partner, broker, employee, servant or agent of or for CompuServe.
b. Neither party hereto shall have the right to make any warranties
or incur any liabilities or obligations on behalf of or binding
upon the other party.
c. With regard solely to the WCD Service, the following replaces
Paragraph 7.3 of the Agreement Terms and Conditions:
Each party shall indemnify the other party and the other party's directors,
officers, employees and agents from any and all claims, or allegations of
conduct, that would constitute a breach by such party of any obligation or
term, condition or warranty under this Attachment and any demands,
liabilities and expenses, including reasonable attorneys' fees, resulting
from the claim. This indemnification does not apply to the extent the
claims, demands, liabilities or expenses result solely from the gross
negligence or willful misconduct of the party seeking indemnification.
CompuServe agrees to indemnify Customer for any monetary damages and costs
finally awarded against Customer by a court of competent jurisdiction in
connection with a finding that the Dial Product, when properly used in the
United States in accordance with CompuServe's specifications, infringes
upon a currently issued United States' patent or copyright, provided that
CompuServe is given prompt written notice of any such claim. Whether or not
a claim has been brought, Customer shall indemnify CompuServe for all
damages, costs, and reasonable attorneys' fees arising from any such claim
of infringement after CompuServe has notified Customer that a revised
version of the Dial Product is available, if such claim would have been
lessened or avoided by the use or sale of such revised version. This
indemnification does not apply to claims arising from modifications
Customer makes to the Dial Product.
THE FOREGOING STATES COMPUSERVE'S SOLE LIABILITY, AND CUSTOMER'S SOLE
REMEDY, FOR INFRINGEMENTS OF THE RIGHTS OF OTHERS WITH RESPECT TO THE DIAL
PRODUCT.
d. Customer acknowledges and agrees that CompuServe is not
responsible for, and does not control, the Internet or any
information contained thereon. Access to the Internet is provided
by CompuServe solely on an "as is" basis. CompuServe does not
warrant, and does not assume responsibility for, any consequences
suffered by any person as a result of Internet access including,
without limitation, those suffered by Customer and end-users as a
result of accessing such Internet information and content, such
as the possibility of contracting computer viruses, accessing
information with offensive, inaccurate or inappropriate content,
etc. CompuServe shall not be responsible for any damages suffered
by any person as a result of obtaining Internet access. Customer
acknowledges and agrees that Customer and all Users must exercise
their own due diligence before relying on any such information
available on the Internet, and must determine that they have all
necessary rights to copy, publish or otherwise distribute any
such information available on the Internet under copyright and
other applicable laws. Customer acknowledges and consents to the
foregoing, and shall obtain the acknowledgment and consent to the
foregoing of all Users to which it provides access to the
Internet. CompuServe and its subcontractors, and their licensers
and suppliers, shall be express third-party beneficiaries of this
provision.
e. This Paragraph 9 will survive the termination of this Attachment
and the Agreement, regardless of the reason for termination.
9. Export of Dial Product
Customer is advised and acknowledges that the export of the Dial Product is
subject to compliance with United States export control law. Customer
warrants that it is not subject to any order suspending, revoking or
denying its export privileges and assures CompuServe that neither the Dial
Product acquired from CompuServe, nor any product, service or process
produced by the use of Dial Product, is intended to be, or shall be,
shipped or otherwise exported except in full compliance with all United
States and foreign laws, regulations and orders applicable to the export of
such items.
<PAGE>
10. One Time Royalty
Customer will be paid a royalty following the end of each three (3)
calendar months during the initial Extended Term Plan.
The total One-Time Royalty due Customer in a specific quarter, is equal to
(A) the number of new Users that (i) have a unique User identification
number, and (ii) were billed the Monthly Fee during each month of that
quarter, and (iii) were current in their payment status with CompuServe,
multiplied by (B) the corresponding One-Time Royalty, as determined by the
total number of Users that (i) have a unique user identification number,
and (ii) were billed the Monthly Fee during each month of that quarter, and
(iii) were current in their payment status with CompuServe; the number of
new Users in a given quarter will be determined by subtracting the total
number of Users from the previous quarter that meet these criteria from the
total number of Users in the current quarter that meet these criteria (if
this calculation results in zero or a negative number no One-Time Royalty
Per User will be paid for that quarter.) CompuServe will pay Customer a
quarterly royalty based on the total Users, and revenue associated with use
of the Enterprise Connect for WinCIM Direct Service
<PAGE>
- --------------------------------------------------------------------------------
Total Users One-Time Royalty Per User
- --------------------------------------------------------------------------------
0 - 1,080 $ 0.00
1,081 - 1,890 $ 5.00
1,891 - 2,430 $ 7.50
2,431 + $ 10.00
CompuServe will make payment to Customer of royalties due within sixty (60)
days following the end of the quarter in which the related charges are
billed to Users by CompuServe. Any User access to information provided by
Customer which does not generate revenue, including but not limited to User
access resulting from purchase of pre-validated User identification numbers
for which no additional connection charge is levied, use for demonstration,
in-house use by CompuServe employees, or any use related to uncollectible
amounts or credits, will not be subject to any royalty payment.
II. Modifications to Agreement Terms and Conditions
1. The last sentence of Paragraph 1 is replaced as follows:
For the month in which termination becomes effective, Customer will pay
the accrued charges plus any amount due to meet Customer's Annual
Minimum.
2. The following is added to Paragraph 1:
Customer may terminate this Agreement in its entirety, to be effective at
the end of Month 12 of the initial Extended Term Plan, upon 15 days written
notice prior to Month 13 of the initial Extended Term Plan and
(1). Payment of all charges outstanding and due CompuServe, and
(2). Payment of a one-time buyout fee of $25,000.
3. The phrase "the greater of the Monthly Minimum or" is stricken from
Paragraph 2.2 (I).
4. Paragraph 2.2 is modified to include:
Monthly charges paid by Customer for the Eligible Services specified in
Customer's Product Terms and Conditions apply toward Customer's Annual Minimum.
If the sum of the monthly charges paid by Customer for the Eligible Services,
net of discounts, for the preceding twelve (12) month period is not at least as
great as the Extended Term Plan Annual Minimum, Customer will be billed the
difference within 90 days following the end of a term.
Network Services
Account No.
------------------------
ACCEPTED FOR CUSTOMER: ACCEPTED FOR COMPUSERVE INCORPORATED:
Company: Derma Sciences, Inc.
----------------------
Signature: /s/ Gary Borthwick Signature: /s/ Dana Brown
---------------------- ---------------------------
Name: Gary Borthwick Name: Dana Brown, Manager
---------------------------- ---------------------------------
Title: CFO Title: Contract Development & Admin.
---------------------------- ---------------------------------
Date: April 25, 1996 Date: May 8, 1996
---------------------------- ---------------------------------
i:\mst\cbs\phl\derma066.01c
<PAGE>
CompuServe Network Services Rate Schedule Page 3
[GRAPHIC OMITTED] Version 4.96 (3/28/96)
NETWORK SERVICES RATE SCHEDULE
CompuServe Network Services enable your organization to utilize advanced,
high-speed connectivity worldwide, with low up-front costs. CompuServe's wide
range of data communications services allows you to offer cost-effective network
solutions to end-users requiring connectivity to IP networks, multi-protocol
LAN's, or legacy host computers. Available options include both dial and
dedicated access, implementation of virtual private networks, the provision of
managed Customer Premise Equipment, connectivity to the worldwide Internet, and
the support of application based services.
Updates to this Network Services Rate Schedule will be done periodically
and will be available online from the Network Online Report Access System
(NORAS).
<PAGE>
Contents
GENERAL PRODUCT TERMS AND CONDITIONS...........................................6
Base Term Plan..............................................................6
Extended Term Plan..........................................................6
Monthly Minimum.............................................................6
Eligible Services...........................................................6
Discounted Services.........................................................6
Regional Pricing............................................................7
Region A:.................................................................7
Region B:.................................................................7
Region C:.................................................................7
International Links.........................................................7
Internet Access.............................................................7
Customer Provided Equipment.................................................8
Pro-Rated Charges...........................................................8
Customer Election Modifications.............................................8
Distance Stipulation........................................................8
Agreements Superseded.......................................................8
DIAL-UP ACCESS SERVICES........................................................9
USAGE-DialSM................................................................9
FIXED-DialSM................................................................9
PRIVATE-DialSM.............................................................10
Open Port ArrangementSM....................................................10
Worldwide Access Surcharges................................................10
CompuServe Worldwide Inbound Services....................................10
Toll Free / Free Phone Access Surcharges.................................11
Gateway Worldwide Inbound Services.......................................11
Worldwide Outbound Services..............................................12
Transaction Services.......................................................13
<PAGE>
DEDICATED SERVICES............................................................16
PRIVATE-AsyncSM............................................................16
Dedicated Network Link (DNL)...............................................16
DNL Installation Charges...................................................17
Fast Install...............................................................17
Packet Assembler/Disassembler (PAD) and SWITCH.............................17
MicroNode PAD (MN-PAD)...................................................18
TR-PAD...................................................................18
EURO-PAD.................................................................18
ANZ-PAD..................................................................19
MicroNode SWITCH (MN-SWITCH).............................................19
EURO-SWITCH..............................................................19
MicroNode to MicroNode Connections (MN-MN)...............................20
WORLD-FIX..................................................................21
BACKUP SERVICES...............................................................22
DNL Dial Backup............................................................22
Secondary Site DNL Backup..................................................22
FNL Backup 56..............................................................23
REMOTE LAN ACCESS SERVICES....................................................24
CompuServe RLA.............................................................24
CompuServe RLA/RLN (RLA/RLN)...............................................24
Remote Security Adapter (RSA)............................................24
Media Access Control (MAC)...............................................24
IBM SERVICES..................................................................26
CompuMode Protocol Interface (CompuMode)...................................26
CompuMode End-User Software..............................................26
Fast & SecureTM Option...................................................26
FRAME RELAY SERVICES..........................................................28
FRAME-Netsm................................................................28
FRAME-Net Pricing..........................................................28
FNL Installation Charges...................................................30
<PAGE>
FRAME-Net Router...........................................................31
FRAME-Net Router Installation Charges....................................32
FRAME-Net FRAD.............................................................33
FRAME-Net SDLC FRAD........................................................33
FRAME-Net Encrypt..........................................................34
INTERNET SERVICES.............................................................35
Internet Dial..............................................................35
IP Client Software.........................................................35
Internet Link..............................................................36
Internet Link Plus.........................................................37
IP Link....................................................................37
IP Link Plus...............................................................37
CompuServe Firewall........................................................38
APPLICATION BASED NETWORK SERVICES............................................40
Enterprise Connectsm for Lotus NotesR......................................40
End-User Billing Option..................................................40
Corporate Business Account Option........................................40
Additional Enterprise Connect Rates......................................40
Obligations of Customer..................................................41
Obligations of CompuServe................................................41
Advertising, Promotion, and Ownership....................................41
Customer Warranties......................................................41
Indemnification..........................................................42
Mosaic Direct..............................................................42
Obligations of Customer..................................................42
Distribution.............................................................43
Order and Shipping.......................................................43
Customer Warranties......................................................43
CompuServe Warranties, Limitations on Liability..........................43
Relationship and Indemnification.........................................44
Export of Dial Product...................................................44
END-USER BILLING SERVICES.....................................................45
Information AllianceSM.....................................................45
Monthly Revenue Guarantee and Rates......................................45
CompuServe Information Manager "One-Step" Kit............................45
<PAGE>
Royalty Option...........................................................45
Links....................................................................46
Additional Terms and Conditions..........................................46
ADDITIONAL CHARGES............................................................47
Monthly Account Charge.....................................................47
Moves and Changes..........................................................47
Pre-installation Cancellation Fee..........................................47
Non-Business Hour Charges..................................................47
APPENDIX A...................................................................48
Worldwide Access Service Descriptions/Definitions.............................48
APPENDIX B....................................................................50
Dial Services Worldwide Reference List.......................... ..........50
EUROPE and MIDDLE EAST...................................................50
AFRICA/ ASIA/ PACIFIC RIM................................................51
THE AMERICAS.............................................................52
APPENDIX C....................................................................53
Software License Agreement.................................................53
Internet In A Box -- Software License Agreement......................54
APPENDIX D....................................................................57
Gauntlet Firewall Software Software License Agreement......................57
APPENDIX E....................................................................60
TERMS AND CONDITIONS QUICK REFERENCE.......................................60
<PAGE>
General Product Terms and Conditions (Product specific Terms and Conditions are
located in the individual product sections)
Base Term Plan
The Base Term Plan is an agreement with a term of one (1) month that can be
canceled by either party upon one (1) month prior written notice. The only
dial-up pricing plan available to Customers under the Base Term Plan is
USAGE-Dial.
Extended Term Plan
The following pricing plans and products require Customer's election of an
Extended Term Plan with an initial term of at least one (1) year and a Monthly
Minimum of at least $3,500: FIXED-Dial, PRIVATE-Dial, Open Port Arrangement,
Transaction Services, PRIVATE-Async, EURO-PAD, ANZ-PAD, EURO-SWITCH, WORLD-Fix,
FRAME-Net Links, FRAME-Net Encrypt, Internet Dial, IP Client Software, Internet
Link, Internet Link Plus, IP Link, IP Link Plus, CompuServe Firewall, Enterprise
Connect for Lotus Notes, Mosaic Direct, FNL Backup 56, and End-User Billing
Services.
Monthly Minimum
Customer may increase its Monthly Minimum at any time to benefit from higher
Discount Schedule rates, provided Customer also elects a new initial Extended
Term Plan that is at least equal to the term remaining under Customer's existing
Agreement, rounded up to full year increments. The Discount Schedules that apply
to Customer's increased Monthly Minimum shall be the Discount Schedules which
were in effect when Customer signed its Network Services Agreement Customer
Elections. Any increases to the Monthly Minimum elected by Customer shall remain
in effect for the balance of Customer's initial Extended Term Plan.
Eligible Services
Charges, net of discounts, for all products and services defined in this Network
Services Rate Schedule are Eligible Services and apply towards Customer's
Monthly Minimum with the exception of Installation Charges, one-time charges
including but not limited to software purchases, moves and changes, Fast
Install, and any taxes.
Discounted Services
For Customers with an Extended Term Plan, charges for the following products and
services will be discounted according to Discount Schedule A: FIXED-Dial,
PRIVATE-Dial, PRIVATE-Async, 1-800 Access USA Access Surcharge, Internet Dial,
Corporate Business Account Option for Enterprise Connect for Lotus Notes and
End-User Billing Premium Service Surcharge.
For Customers with an Extended Term Plan, charges for the following products and
services will be discounted according to Discount Schedule B: Open Port (OP)
Arrangement, OP Overflow, Dedicated Network Link (DNL) Monthly Charge, FRAME-Net
Link (FNL) Monthly Port Charge, Bandwidth Monthly Charge, Bandwidth Monthly
Surcharge, FRAME-Net Router, MN-PAD, TR-PAD, EURO-PAD, EURO-SWITCH, MN-SWITCH,
CompuMode Protocol Interface, FRAME-Net FRAD, FRAME-Net SDLC FRAD, FRAME-Net
Encrypt, IP Client Software One-time Purchase Price per copy, Internet Link,
Internet Link Plus, IP Link Plus, CompuServe Firewall, End-User Billing Option
for Enterprise Connect for Lotus Notes Hourly Rate, Monthly Fee for Internet
Office Professional, DNL Dial Backup, Secondary Site DNL Backup, FNL Backup 56,
CompuServe RLA, CompuServe RLA/RLN, and the Monthly Account Charge.
<PAGE>
Discount Schedule A Discount Schedule B
Term Term
Monthly Minimum 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year
$3,500 None 3% 7% None 3% 5%
$7,500 3% 7% 14% None 4% 6%
$15,000 6% 13% 23% None 5% 7%
$30,000 11% 20% 35% None 6% 9%
$50,000 16% 26% 40% None 7% 11%
$80,000 23% 32% 46% None 8% 13%
$150,000 25% 35% 50% None 9% 15%
Regional Pricing
Charges for products and services are often determined by the region in which
they are used or installed. UNLESS OTHERWISE SPECIFIED UNDER INDIVIDUAL PRODUCT
SECTIONS THE FOLLOWING REGIONAL DEFINITIONS APPLY:
Region A:
Canada, Puerto Rico, United States
Region B:
Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg,
Netherlands, Spain, Sweden, Switzerland, United Kingdom
Region C:
Australia, Hong Kong, Japan, New Zealand, Singapore
International Links
Each link (DNL, FNL, WORLD-Fix) installed outside Region A requires a one-year
commitment measured from the date of installation. Each link's annual commitment
will automatically renew on completion of the first year at the then current
rates and conditions for consecutive one-year commitments unless the
deinstallation of a link is requested in writing at least three (3) months prior
to the end of an annual commitment. If a link is deinstalled within the first
twelve (12) months following the date of installation or any subsequent twelve
(12) months renewal period, a one-time charge equal to the remaining number of
months, in that twelve (12) month period, multiplied by the sum of the link's
Monthly Port Charge and Monthly Circuit Charge, will be billed to Customer .
Internet Access
For those CompuServe services that enable access to or from the Internet,
Customer acknowledges and agrees that CompuServe is not responsible for, and
does not control, the Internet or any information contained thereon. Access to
the Internet is provided by CompuServe solely on an "as is" basis. CompuServe
does not warrant, and does not assume responsibility for, any consequences
suffered by any person as a result of Internet access including, without
limitation, those suffered by Customer and end-users as a result of accessing
such Internet information and content, such as the possibility of contracting
computer viruses, accessing information with offensive, inaccurate or
inappropriate content, etc. CompuServe shall not be responsible for any damages
suffered by any person as a result of obtaining Internet access. Customer
acknowledges and agrees that all users (including Customer and its end-users)
must exercise their own due diligence before relying on any such information
available on the Internet, and must determine that they have all necessary
rights to copy, publish or otherwise distribute any such information available
on the Internet under copyright and other applicable laws. Customer acknowledges
and consents to the foregoing, and shall obtain the acknowledgment and consent
to the foregoing of all users to which it provides access to the Internet.
CompuServe and its subcontractors, and their licensers and suppliers, shall be
express third-party beneficiaries of this provision.
<PAGE>
Customer Provided Equipment
Customer is responsible for, and CompuServe does not warrant, the compatibility
of Customer provided equipment and software used in conjunction with CompuServe
Network Services. If Customer utilizes any device not provided by CompuServe but
directly or indirectly connected to CompuServe provided Equipment, the device
shall be maintained by Customer.
Pro-Rated Charges
During the month in which any link, equipment, or service is installed or
deinstalled, the Pro-Rated Monthly Charge, and Monthly Surcharge if applicable,
will be billed based upon the actual number of days in that month for each day
following CompuServe's commencement of the applicable service. For example, for
equipment installed or deinstalled during a month containing 31 days, Customer
will be billed 1/31 of the Monthly Charge, and Monthly Surcharge if applicable,
for each day following commencement of the service for that billing period.
Monthly Charges which appear on Customer's invoice may include pro-rated charges
for equipment installed after the 15th of the prior month. The "Equipment
Credit" line items reflect a credit of pro-rated charges for equipment
deinstalled after the 15th of the prior month.
Customer Election Modifications
CompuServe must be notified prior to the 10th day of the month in which a change
is to be effective for: Increase Monthly Minimum, Pricing Plan of Host Name,
default pricing plan (for Extended Term Customers) and Elected Reports.
CompuServe must be notified at least ten days prior to the end of the month in
which a change is to be affected for quantity of Open Ports. CompuServe reserves
the right to reject any Customer order that is inconsistent with the terms and
conditions contained in Customer's Network Services Agreement.
To affect a change to any other option, Customer must notify CompuServe verbally
or in writing and receive written confirmation of acceptance of the change from
CompuServe.
Distance Stipulation
CompuServe reserves the right to assess a Monthly Distance Surcharge on a
quotation basis to install any CompuServe link or equipment at any Customer site
that is located more than fifty (50) miles from a CompuServe Network access
node.
Agreements Superseded
If Customer elects a more recent version of any component of the Agreement, or
elects a new Extended Term Plan and/or a new Monthly Minimum, CompuServe will
treat as superseded the prior version of the Agreement component, Extended Term
Plan, or Monthly Minimum. Such Agreement component, Extended Term Plan, and/or
Monthly Minimum will be superseded effective on the first day of the next month
following CompuServe's execution of Customer's new Network Services Agreement
Customer Elections. Any new Extended Term Plan and/or Monthly Minimum must be
equal to or greater than the remainder of the Extended Term Plan and/or Monthly
Minimum being replaced in order to be a valid election.
To CompuServe's knowledge, each trademark associated with particular products
listed in this rate schedule is the property of the designated entity.
The rates contained in this Network Services Rate Schedule are subject to change
or revision pursuant to the terms of the Agreement Terms and Conditions.
CompuServe is not responsible for errors or omissions in this rate schedule.
<PAGE>
Dial-Up Access Services
A variety of pricing plans are available for asynchronous dial access to the
CompuServe Network. There are plans for both public and private dial access and
for Base Term Plan and Extended Term Plan Customers. Customer will also be
billed applicable Worldwide Access Surcharges specified in this Network Services
Rate Schedule.
USAGE-DialSM
USAGE-Dial is a pricing plan with a rate based on connect-time and kilocharacter
transmission for 300bps up to 57.6Kbps, where available, asynchronous dial
connections, through a USAGE-Dial network address (i.e. Host Name).
Connect-time is charged per second with a one (1) minute minimum per session.
USAGE-Dial rates are available only with a Base Term Plan.
Characters transmitted and received are rounded separately per session up to the
next kilocharacter. There is a minimum of one (1) kilocharacter transmitted and
one (1) kilocharacter received per session.
USAGE-Dial Connect Rates: USAGE-Dial Transmission Rates:
Hours/Month Rate/Hour* Kilocharacters/Month Rate/Kilocharacter*
0-750 $3.75 0-50,000 $0.05
751-1,500 $3.25 50,001-100,000 $0.04
1,501+ $2.80 100,001 + $0.03
*Each rate applies only to the usage within the range specified for such rate
and not to aggregate usage on that invoice (e.g. 1450 USAGE-Dial hours and
40,000 Kilocharacters (Ks) of total use is billed 750 hours at $3.75, 700 hours
at $3.25, and 40Ks at $0.05).
FIXED-DialSM
FIXED-Dial is a pricing plan with an Hourly Rate for 300bps up to 57.6Kbps,
where available, asynchronous dial connections, through a FIXED-Dial network
address (i.e. Host Name). The FIXED-Dial Hourly Rate includes all
characters/packets that are transmitted and received during sessions through a
FIXED-Dial network address.
Connect-time is charged per second with a one (1) minute minimum per session.
FIXED-Dial Hourly Rate
Hours/Month Rate/Hour*
0-1,500 $5.50
1,501-2,500 $5.10
2,501-4,000 $4.70
4,001-5,000 $4.55
5,001-10,000 $4.30
10,001-20,000 $3.80
20,001 + $3.50
*Each rate applies only to the usage within the range specified for such rate
and not to aggregate usage on that invoice (e.g. 1950 FIXED-Dial hours of total
use is billed 1500 hours at $5.50, and 450 hours at $5.10).
<PAGE>
PRIVATE-DialSM
PRIVATE-Dial allows the Customer to have 300bps up to 57.6Kbps, where available,
asynchronous network access ports dedicated for use at designated CompuServe
Network access nodes. PRIVATE-Dial ports include a dial-up phone line and a
modem at the CompuServe Network access node. PRIVATE-Dial ports also include
connect-time and all characters/packets that are transmitted and received during
sessions originating from a PRIVATE-Dial port.
- ------------------------------- --------------------- ------------------------
Product Name Monthly Charge Per Installation Charge
PRIVATE-Dial Ports Port Per Port
- ------------------------------- --------------------- ------------------------
- ----------- ------------------- --------------------- ------------------------
Region Continental US $350 $500
------------------- --------------------- ------------------------
------------------- --------------------- ------------------------
A Remainder $450 $1,000
- ----------- ------------------- --------------------- ------------------------
- ----------- ------------------- --------------------- ------------------------
B $450 $1,000
- ----------- ------------------- --------------------- ------------------------
- ----------- ------------------- --------------------- ------------------------
C $450 $1,000
- ----------- ------------------- --------------------- ------------------------
Open Port ArrangementSM
The Open Port Arrangement (OPA) provides fixed-rate access per user of
Customer's host computer(s) for 300bps up to 57.6Kbps, where available,
asynchronous dial connections, through an OPA network address (i.e. Host Name).
OPA rates include connect-time and all characters/packets that are transmitted
and received during sessions through an OPA network address.
Customer may increase or decrease the number of Open Ports (OPs) monthly.
CompuServe must be notified of a change in quantity of OPs at least ten (10)
days prior to the end of the month in which the change is to be effective.
Simultaneous users above the contracted number of OPs will be charged the OP
Overflow Rate. Overflow hours are charged per second with a one (1) minute
minimum per session.
Product Name Monthly
Open Port Arrangement Charge
OP Rate/Port $650
OP Overflow Rate/Hour $10
Worldwide Access Surcharges
CompuServe Worldwide Inbound Services
Hourly access surcharges from CompuServe points of presence:
------------------- -------------- -------------- -------------- ---------
From: CompuServe To: To: To: To:
Points of Presence Region A Region B Region C Mexico
(excluding
Japan)
------------------- -------------- -------------- -------------- ---------
------------------- -------------- -------------- -------------- ---------
Region A $0 $4 $12 $8
------------------- -------------- -------------- -------------- ---------
------------------- -------------- -------------- -------------- ---------
Region B $4 $0 $12 $8
------------------- -------------- -------------- -------------- ---------
------------------- -------------- -------------- -------------- ---------
Region C $12 $12 $12 $12
------------------- -------------- -------------- -------------- ---------
------------------- -------------- -------------- -------------- ---------
Mexico $8 $8 $12 $8
------------------- -------------- -------------- -------------- ---------
CompuServe may establish separate accounts for, and charges may be billed on a
separate invoice for, each billing region where a Customer host is located.
Eligible Service charges from each of these accounts will apply toward
Customer's Monthly Minimum. Customer will be billed one Monthly Account Charge
regardless of the number of separate accounts established for billing regions.
<PAGE>
Toll Free / Free Phone Access Surcharges
Location Surcharge Per hour
1-800 Access Canada Canada $20
800 Access Mexico Mexico $20
020 Access Sweden Sweden $8
1-800 Access USA USA $9*
* This surcharge is discountable according to Customer's Discount Schedule A.
Gateway Worldwide Inbound Services
Hourly access surcharges from Gateways:
- ------------------------- ---------- ---------- ------------------- -----------
To: To: To: To:
Region A Region B Region C (excluding Mexico
From: Japan)
- ------------------------- ---------- ---------- ------------------- -----------
- ------------------------- ---------- ---------- ------------------- ------------
FT Austria-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Belgium-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Denmark-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Finland-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT France-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Germany-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Ireland-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Italy-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Luxembourg-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Netherlands-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Norway-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Portugal-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Romania-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Spain-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Sweden-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT Swiss-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
FT UK-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
------------------------ ---------- ---------- ------------------- ------------
UK-Connect $4 $3 $12 $8
------------------------ ---------- ---------- ------------------- ------------
<PAGE>
Gateway Name Location Surcharge Per
Worldwide hour
AFRICANET See Appendix A $28
ALASKANET See Appendix A $4
AUSTRALIA-Connect See Appendix A $15
CANADA-Connect See Appendix A $6
EURO-Connect See Appendix A $6
EURO-Connect/ALT See Appendix A $25
EURONET See Appendix A $18
GERMANY-Connect See Appendix A $11
GUAM-Connect See Appendix A $20
HUNGARY-Connect See Appendix A $8
IRELAND-Connect See Appendix A $8
ISRAEL-Connect See Appendix A $9
ITALY-Connect See Appendix A $8
JAPAN-Connect See Appendix A $12
LATINET See Appendix A $25
MCI/BT Hawaii $19
Oman $46
USA (Continental) $12
Prepaid $0
MEXICO-Connect See Appendix A $8
PACIFICNET See Appendix A $23
PTT-Connect See Appendix A $0
RBOC Networks USA $6
S.KOREA-Connect See Appendix A $10
SprintNet Bulgaria $20
Canada $19
Colombia $30
Estonia $35
Hawaii $19
Hungary $20
Indonesia $33
Kazakhstan $35
Kuwait $43
Latvia $35
Peru $30
Romania $35
Russia $35
Singapore $35
Ukraine $35
USA (Continental) $12
Uzbekistan $35
Prepaid $0
SWITZERLAND-Connect See Appendix A $8
TAIWAN-Connect See Appendix A $27
VENEZUELA-Connect See Appendix A $15
WORLD-Connect See Appendix A $13
WORLD-Connect/ Alt See Appendix A $46
WORLD-Connect/Mexico See Appendix A $6
WORLDNET See Appendix A $28
Access from any location via any Gateway not specified above will be surcharged
$46 per hour.
Worldwide Outbound Services
- ----------------------------- -------------------------------------------------
Zone A $3 per hour plus $0.10 per Kilocharacter
- ----------------------------- -------------------------------------------------
- ----------------------------- -------------------------------------------------
Zone B $5 per hour plus $0.20 per Kilocharacter
- ----------------------------- -------------------------------------------------
- ----------------------------- -------------------------------------------------
Zone C $7 per hour plus $0.30 per Kilocharacter
- ----------------------------- -------------------------------------------------
- ----------------------------- -------------------------------------------------
Zone D $9 per hour plus $0.40 per Kilocharacter
- ----------------------------- -------------------------------------------------
- ----------------------------- -------------------------------------------------
AUSTRALIA-Connect $15 per hour
- ----------------------------- -------------------------------------------------
- ----------------------------- -------------------------------------------------
JAPAN-Connect $12 per hour
- ----------------------------- -------------------------------------------------
- ----------------------------- -------------------------------------------------
TAIWAN-Connect $27 per hour
- ----------------------------- -------------------------------------------------
Outbound calls to any country not listed will incur Zone D surcharges.
Outbound calls to SprintNet or MCI/BT will incur Zone C surcharges.
See appendix B for Country Zone definitions.
<PAGE>
Transaction Services
Transaction Services are defined as those data network services that allow
Customer to establish sessions for the data transmission of transactions between
remote locations and a Customer host computer located in the United States.
Customer agrees to adhere to the required communications protocol and message
formats specified by CompuServe. A transaction is defined as a session of twelve
(12) seconds or less in duration ("Initial Seconds" a.k.a. "Init."); for
sessions exceeding twelve (12) seconds, Customer will be billed for additional
time in one (1) second increments ("Each Continuations Second" a.k.a. "Cont.")
during the same virtual circuit connection. Transaction services include
automatic routing, re-routing if applicable, and error checking.
The following are Transaction Services access methods:
Local Dial Access (Local)
CompuServe will provide asynchronous local dial access for routing transactions
from each location where CompuServe has a point of presence in the United
States, Puerto Rico, US Virgin Islands, Guam, Mexico, Germany and Canada to a
Customer host connected to the CompuServe Network in the United States. Local
dial access is available at speeds of 300bps, 1.2Kbps and 2.4Kbps.
1-800 Access (1-800)
CompuServe will provide, as available from Inter-exchange telephone companies,
asynchronous 1-800 services for routing of transactions from locations within
the United States, Puerto Rico, US Virgin Islands or Canada to a Customer host
connected to the CompuServe Network in the United States. 1-800 dial access is
available at speeds of 300bps, 1.2Kbps, 2.4Kbps and 9.6Kbps.
Feature Group B (950) Dial Access (FGB)
CompuServe will provide, as defined and made available from local-exchange
carriers, asynchronous dial Feature Group B services for the routing of
transactions from locations within the United States to a Customer host
connected to the CompuServe Network in the United States. Feature Group B (950)
dial access is available at speeds of 300bps, 1.2Kbps and 2.4Kbps.
In the event CompuServe may no longer provide, or Customer is prohibited from
using, under applicable law, court order, agency determination, or regulation,
Feature Group B (950) services, CompuServe shall take reasonable steps to
prevent disruption in such services and to provide alternative services.
Virtual Private Line (VPL) CompuServe will provide, as available from selected
local-exchange telephone companies, gateway access into the CompuServe Network
via ISDN-D Channel service for the routing of transactions from locations within
the United States to a Customer host connected to the CompuServe Network in the
United States. ISDN-D Channel is available at speeds up to 9.6Kbps.
Datapac Local (Datapac)
CompuServe will provide, as available from Datapac, asynchronous local dial
access for routing transactions from each location where Datapac has a point of
presence in Canada to Customer's host connected to the CompuServe Network in the
United States. Datapac Local dial access is available at speeds of 2.4Kbps.
In lieu of the Dial-Up Access Services rates contained in this Network Services
Rate Schedule, CompuServe agrees to bill Customer at the following transaction
rates for Customer's access to CompuServe's Transaction Services Access Ports.
ALL RATES ARE PER TRANSACTION
UNITED STATES, US VIRGIN ISLANDS and PUERTO RICO
<PAGE>
1 Year Extended Term Plan
- ----------------- -------------------- -------------------- ------------------
FGB Local VPL* 1-800
- ----------------- -------------------- -------------------- ------------------
- ------- ------- ------- -------- -------- -------- -------- --------- ----------
Monthly Initial Each Cont.Initial Each Cont.Initial Each Cont.Initial Each Cont.
Minimum Seconds Second Seconds Second Seconds Second Seconds Second
- ------- ------- ------ -------- ---------- ------- --------- -------- ---------
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
$3,500 $0.040$0.00185 $0.035 $0.0016 $0.034 $0.002 $0.042 $0.003
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
$7,500 0.035 0.00185 0.030 0.0016 0.032 0.002 0.040 0.003
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
$15,000 0.030 0.00185 0.025 0.0016 0.030 0.002 0.038 0.003
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
$30,000 0.025 0.00185 0.020 0.0016 0.028 0.002 0.036 0.003
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
$50,000 0.0200 0.00185 0.0195 0.0016 0.026 0.002 0.034 0.003
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
$80,000+0.0195 0.00185 0.0190 0.0016 0.024 0.002 0.032 0.003
- ------- ------ ------- -------- ---------- -------- ---------- --------- -------
*VPL is not available in the U.S. Virgin Islands or Puerto Rico.
2 Year Extended Term Plan
- --------------------- ------------------- ------------------- ------------------
FGB Local VPL* 1-800
- --------------------- ------------------- ------------------- ------------------
- ------- ------- ---------- -------- --------- -------- -------- --------- ------
Monthly Initial Each Cont. Initial Each Cont Initial Each Cont.Initial Each Cont
Minimum Seconds Second Seconds Second Seconds Second Seconds Second
- ------- ------- ---------- ------- --------- ------- -------- -------- --------
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
$3,500 $0.035 $0.0018 $0.030 $0.00155 $0.032 $0.0019 $0.040 $0.00275
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
$7,500 0.030 0.0018 0.025 0.00155 0.030 0.0019 0.038 0.00275
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
$15,000 0.025 0.0018 0.020 0.00155 0.028 0.0019 0.036 0.00275
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
$30,000 0.0200 0.0018 0.0195 0.00155 0.026 0.0019 0.034 0.00275
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
$50,000 0.0195 0.0018 0.0190 0.00155 0.024 0.0019 0.032 0.00275
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
$80,000+ 0.0190 0.0018 0.0185 0.00155 0.022 0.0019 0.030 0.00275
- ------- ------- ---------- -------- --------- -------- -------- ------- --------
*VPL is not available in the U.S. Virgin Islands or Puerto Rico.
<PAGE>
3 (or more) Year(s) Extended Term Plan
- ------------------- ----------------- ---------------------- -------------------
FGB Local VPL* 1-800
- ------------------- ----------------- ---------------------- ------------------
- ------- -------- --------- ------- ------- --------- -------- ------- ---------
Monthly Initial Each Cont Initial Each Cont.Initial Each Cont.Initial Each Cont
Minimum Seconds Second Seconds Second Seconds Second Seconds Second
- ------- ------- ---------- ------- -------- -------- -------- -------- ---------
- ------- ------- ---------- ------- -------- -------- ------------------ -------
$3,500 $0.030 $0.00175 $0.025 $0.0015 $0.030 $0.0018 $0.038 $0.0025
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
$7,500 0.025 0.00175 0.020 0.0015 0.028 0.0018 0.036 0.0025
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
$15,000 0.0200 0.00175 0.0195 0.0015 0.026 0.0018 0.034 0.0025
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
$30,000 0.0195 0.00175 0.0190 0.0015 0.024 0.0018 0.032 0.0025
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
$50,000 0.0190 0.00175 0.0185 0.0015 0.022 0.0018 0.030 0.0025
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
$80,000+0.0185 0.00175 0.0180 0.0015 0.020 0.0018 0.028 0.0025
- ------- ------- ---------- ------- -------- -------- ---------- ------- --------
*VPL is not available in the U.S. Virgin Islands or Puerto Rico.
The following rates apply for transactions that originate outside the United
States, U.S. Virgin Islands or Puerto Rico regardless of initial Extended Term
or Monthly Minimum.
CANADA
- ---------------------------- -------------------------- ------------------------
Local Datapac* 1-800
- ---------------------------- -------------------------- ------------------------
- ------------ --------------- ----------- -------------- ------------ -----------
Initial Each Cont. Initial Each Cont. Initial Each Cont.
Seconds Second Seconds Second Seconds Second
- ------------ --------------- ----------- -------------- ------------ -----------
- ------------ --------------- ----------- -------------- ------------ ----------
$0.05 $0.004 $0.09 $0.0075 $0.17 $0.015
- ------------ --------------- ----------- -------------- ------------ -----------
*Note: Datapac access requires a separate log-on procedure.
GUAM
----------------------------
Local
------------ ---------------
Initial Each Cont.
Seconds Second
------------ ---------------
------------ ---------------
$0.12 $0.01
------------ ---------------
MEXICO
----------------------------
Local
------------ ---------------
Initial Each Cont.
Seconds Second
------------ ---------------
------------ ---------------
$0.07 $0.006
------------ ---------------
Region B (where available)
----------------------------
Local
------------ ---------------
Initial Each Cont.
Seconds Second
------------ ---------------
------------ ---------------
$0.06 $0.005
------------ ---------------
Transaction Service rates are not subject to Worldwide Access Surcharges.
<PAGE>
Dedicated Services
PRIVATE-AsyncSM
PRIVATE-Async provides the Customer with 300bps up to 14.4Kbps dedicated
asynchronous access to the CompuServe Network. PRIVATE-Async services include a
dedicated asynchronous port on the CompuServe Network, a leased line between the
Customer's premise and the CompuServe designated network node, and the required
modems.
The PRIVATE-Async Monthly Charge includes connect-time and all
characters/packets that are transmitted and received during sessions originating
from a PRIVATE-Async port.
PRIVATE-Async ports are only available in Region A.
- --------------------------------- ---------------------- ----------------------
Product Name Monthly Charge Per Installation Charge
PRIVATE-Async Ports Port Per Port
- --------------------------------- ---------------------- ----------------------
- ----------- --------------------- ---------------------- ----------------------
Region A Continental USA $550 $500
Remainder $650 $1,000
- ----------- --------------------- ---------------------- ----------------------
Dedicated Network Link (DNL)
Dedicated Network Links (DNLs) provide the Customer with dedicated access
services or host connectivity using the CompuServe Network. Each DNL includes
one (1) port, a dedicated X.25 connection to the CompuServe Network, a leased
line between the Customer's premise and a CompuServe designated network node,
and the required modems or digital interfaces. CompuServe provided equipment
such as a PAD, switch or router may be connected to a DNL. The DNL Monthly
Charge includes connect-time and all characters/packets that are transmitted and
received during sessions originating from a Customer's DNL.
- ------------ -------- -------------- --------------- --------------- -----------
DNL DNL Monthly DNL Monthly DNL Monthly
Product Name Link Monthly Charge Charge Region B Charge Region C Charge
Speed Region A Rest of Worl
- ------------ ------- -------------- --------------- --------------- -----------
- ------------ ------- -------------- --------------- --------------- -----------
DNL9.6* 9.6Kbps $ 625 Quotation Quotation ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL14.4 14.4Kbps $ 675 Not Available Not Available ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL19.2** 19.2Kbps $1,400 Quotation Quotation ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL56 56Kbps $1,700*** Not Available Not Available ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL64 64Kbps Not Available Quotation Quotation ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL128 128Kbps Quotation Quotation ICB ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL256 256Kbps Quotation ICB ICB ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL512 512Kbps Quotation ICB ICB ICB
- ------------ -------- -------------- --------------- --------------- -----------
- ------------ -------- -------------- --------------- --------------- -----------
DNL768 768Kbps Quotation ICB ICB ICB
- ------------ -------- -------------- --------------- --------------- -----------
* Not Available in Austria
** Not Available in Austria and Ireland
*** The $1,700 DNL56 Monthly Charge applies to DNL56s installed with in the
continental United States. The DNL56 Monthly Charge for DNL56s installed outside
the continental United States is available on a quotation basis. ICB =
Individual Case Basis with Quotation
<PAGE>
DNL Installation Charges
Region A: (all DNLs)
- ------------------------------- ------------
Continental United States $1,000
- ------------------------------- ------------
- ------------------------------- ------------
Remainder of Region A $1,500
- ------------------------------- ------------
Region B:
- ------------------------- -------------- -------------- ----------------
Country DNL 9.6 DNL19.2 DNL 64
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Austria N/A N/A $1,400
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Belgium $1,700 $1,700 $1,700
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Denmark $1,700 $1,700 $1,700
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
France $1,900 $1,900 $2,100
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Germany $2,800 $2,800 $3,200
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Ireland $800 N/A $5,100
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Italy $500 $500 $900
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Luxembourg $330 $330 $1,300
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Netherlands $1,400 $1,400 $1,700
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Spain $1,600 $2,150 $5,100
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Sweden $1,950 $2,200 $1,700
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Switzerland $1,400 $1,400 $1,800
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
United Kingdom $1,800 $1,800 $1,900
- ------------------------- -------------- -------------- ----------------
Region C:
- ------------------------- -------------- -------------- ----------------
Country DNL 9.6 DNL19.2 DNL 64
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Australia Quotation Quotation Quotation
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
Hong Kong $1,000 $1,000 $1,000
- ------------------------- -------------- -------------- ----------------
- ------------------------- -------------- -------------- ----------------
New Zealand Quotation Quotation Quotation
- ------------------------- -------------- -------------- ----------------
Fast Install
Fast Install is available using a synchronous dial modem, at speeds up to
57.6Kbps where available, pending the installation of a DNL. Customer initiates
the dial connection into the CompuServe designated network node and pays any
applicable telephone charges. Fast Install is only available in Region A and
when the DNL does not require hardware such as, but not limited to, an MN-PAD,
MN-SWITCH, CompuMode Protocol Interface, etc.
- ------------------ ------------------------------ ------------------------------
Product Name Monthly Charge Installation Charge**
- ------------------ ------------------------------ ------------------------------
- ------------------ ------------------------------ ------------------------------
Fast Install Related DNL Monthly Charges* $1,000
- ------------------ ------------------------------ ------------------------------
* The DNL Monthly Charge begins upon installation of the Fast Install.
**FastInstall Installation Charge is in addition to the DNL Installation Charge.
<PAGE>
Packet Assembler/Disassembler (PAD) and SWITCH
CompuServe provides a variety of communications processors to serve as packet
assemblers and disassemblers (PADs) and packet switches. For certain
applications, a Customer may require PADs and/or packet switches at their data
center or access location to provide multiplexing and conversion from an X.25
link to individual asynchronous ports, or to provide switching capability
between multiple X.25 host computers.
MicroNode PAD (MN-PAD)
An MN-PAD resides on the Customer's site and provides asynchronous host ports or
terminal ports at speeds of 300bps up to 57.6Kbps and ports connected to DNLs.
MN-PADs are only available at Customer sites in Region A.
MN-PAD Configurations:
- ------------- ------------------- --------------- -------------- ---------------
Number of Maximum
Asynchronous Ports Number of DNL Monthly Installation
Product Name Ports Charge Charge
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD8 8 2 $ 325 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD16 16 2 $ 550 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD24 24 2 $ 775 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD32 32 3 $1,000 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD40 40 3 $1,150 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD48 48 3 $1,300 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD64 64 4 $1,450 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD80 80 5 $1,700 $500
- ------------- ------------------- --------------- -------------- ---------------
- ------------- ------------------- --------------- -------------- ---------------
MN-PAD112 112 6 $1,850 $500
- ------------- ------------------- --------------- -------------- ---------------
TR-PAD
A TR-PAD resides on the Customer's site and provides asynchronous terminal ports
at speeds of 300bps up to 19.2Kbps and one (1) port to connect to CompuServe
Dedicated Network Links (DNLs). TR-PADs are only available in Region A.
TR-PAD Configurations:
- ----------------- ----------------- --------------- ----------- ---------------
Number of Maximum
Asynchronous Ports Number of DNL Monthly Installation
Product Name Ports Charge Charge
- ----------------- ----------------- --------------- -------------- ------------
- ----------------- ----------------- --------------- -------------- ------------
TR-PAD8 8 1 $ 100 $500
- ----------------- ----------------- --------------- -------------- ------------
- ----------------- ----------------- --------------- -------------- ------------
TR-PAD16 16 1 $ 150 $500
- ----------------- ----------------- --------------- -------------- ------------
<PAGE>
EURO-PAD
A EURO-PAD resides on the Customer's site and provides asynchronous host ports
or terminal ports at speeds of 300bps up to 9.6Kbps and one (1) port connect to
a DNL. Customer must provide an RS-232 cable for each port. EURO-PADs are only
available within Region B at Customer sites where CompuServe provides DNLs.
EURO-PAD Configurations:
- ----------------- ------------------ --------------- -------------- ------------
Number of Maximum
Asynchronous Ports Number of DNL Monthly Installation
Product Name Ports Charge Charge
- ----------------- ------------------- -------------- ------------- -------------
- ----------------- ------------------- -------------- ------------- -------------
EURO-PAD6 6 1 $200 $1,000
- ----------------- ------------------- -------------- ------------- -------------
- ----------------- ------------------- -------------- ------------- -------------
EURO-PAD12 12 1 $300 $1,000
- ----------------- ------------------- -------------- ------------- ------------
- ----------------- ------------------- -------------- ------------- -------------
EURO-PAD18 18 1 $375 $1,000
- ----------------- ------------------- -------------- ------------- -------------
- ----------------- ------------------- -------------- ------------- -------------
EURO-PAD36 36 1 $625 $1,000
- ----------------- ------------------- -------------- ------------- -------------
- ----------------- ------------------- -------------- ------------- -------------
EURO-PAD54 54 1 $1000 $1,000
- ----------------- ------------------- -------------- ------------- -------------
Customer may order one (1) EURO-PAD for each DNL installed in the same Customer
Data center.
CompuServe's ongoing provision of EURO-PAD services is subject to CompuServe's
ability to obtain these services and satisfaction of all applicable legal or
regulatory requirements.
ANZ-PAD ANZ-PADs reside on the Customer's site and provide asynchronous host
ports or terminal ports at speeds of 300bps up to 9.6Kbps and one (1) port to
connect to a DNL. Customer must provide an RS-232 cable for each port. ANZ-PADs
are only available at Customer sites in Australia and New Zealand where
CompuServe provides DNLs.
ANZ-PAD Configurations:
- ------------------ ----------------- ------------- ------------ ----------------
Number of Maximum
Asynchronous Ports Number of DNL Monthly Installation
Product Name Ports Charge Charge
- ------------------ ----------------- -------------- ------------ ---------------
- ------------------ ----------------- -------------- ------------ ---------------
ANZ-PAD8 8 1 $600 No Charge
- ------------------ ----------------- -------------- ------------ ---------------
- ------------------ ----------------- -------------- ------------ ---------------
ANZ-PAD16 16 1 $850 No Charge
- ------------------ ----------------- -------------- ------------ ---------------
CompuServe's ongoing provision of ANZ-PAD services is subject to CompuServe's
ability to obtain these services and satisfaction of all applicable legal or
regulatory requirements.
EURO-PADs and ANZ-PADs require a one-year commitment, measured from the date of
installation, for each EURO-PAD and ANZ-PAD installed. Each EURO-PAD's and
ANZ-PAD's annual commitment will automatically renew on completion of the first
year at the then current rates and conditions for consecutive one-year
commitments unless the deinstallation of a EURO-PAD or ANZ-PAD is requested in
writing at least three (3) months prior to the end of an annual commitment. If a
EURO-PAD or ANZ-PAD is deinstalled within the first twelve (12) months following
its date of installation, or any subsequent twelve (12) month renewal period, a
one-time charge equal to the remaining number of months in that twelve (12)
month period multiplied by the Monthly Charge for that link will be billed to
Customer.
MicroNode SWITCH (MN-SWITCH)
An MN-SWITCH resides on the Customer's site and provides switching capability
between up to two (2) DNLs and up to eight (8) X.25 and/or SDLC ports for
connections to Customer provided or CompuServe provided equipment. Each X.25 or
SDLC port can operate from 9.6Kbps up to 256Kbps. SDLC ports require an SDLC
Protocol Interface. Please refer to the IBM Services section for those charges.
MN-SWITCHes are only available at Customer sites in Region A.
MN-SWITCH Configurations:
- -------------------- -------------------- ------------ ----------------
Number of X.25 or Monthly Installation
Product Name SDLC Ports Charge Charge
- -------------------- -------------------- ------------ ----------------
- -------------------- -------------------- ------------ ----------------
MN-SWITCH 4 4 $350 $500
- -------------------- -------------------- ------------ ----------------
- -------------------- -------------------- ------------ ----------------
MN-SWITCH 8 8 $600 $500
- -------------------- -------------------- ------------ ----------------
<PAGE>
EURO-SWITCH
A EURO-SWITCH resides on the Customer's site and provides switching capability
between up to two (2) DNLs and up to twelve (12) X.25 ports for connections to
Customer provided or CompuServe provided equipment. Each X.25 port can operate
from 9.6Kbps up to 64Kbps. Customer must provide an RS232 cable for each port.
EURO-SWITCHes are available in Region B at Customer sites where CompuServe
provides DNLs.
EURO-SWITCH Configurations:
- ------------------------- --------------- ------------ ----------------
Number of Monthly Installation
Product Name X.25 Ports Charge Charge
- ------------------------- --------------- ------------ ----------------
- ------------------------- --------------- ------------ ----------------
EURO-SWITCH 6 6 $400 $1,000
- ------------------------- --------------- ------------ ----------------
- ------------------------- --------------- ------------ ----------------
EURO-SWITCH 12 12 $650 $1,000
- ------------------------- --------------- ------------ ----------------
CompuServe's ongoing provision of EURO-SWITCH services is subject to
CompuServe's ability to obtain these services and satisfaction of all applicable
legal or regulatory requirements.
MicroNode to MicroNode Connections (MN-MN)
For redundancy purposes, MN-MNs are available between MN-PADs and/or between
MN-SWITCHes, installed at the same Customer site, upon request at no incremental
charge to Customer.
<PAGE>
WORLD-FIX
WORLD-FIX provides a leased line type of service in specified locations
terminating into a partner network. WORLD-FIX includes a dedicated connection
into a partner network, a leased line between the Customer's premises in the
specified location and the partner network node designated by CompuServe, the
required modems or digital interface units, and up to 32 logical channels.
WORLD-FIX rates are in lieu of any Dial-Up Access Services rates for sessions
originating from a Customer's WORLD-FIX network address (i.e. Host Name).
Customer will be charged Dial-Up Access Services rates and applicable Worldwide
Access Surcharges for dial-up access to a WORLD-FIX network address. The
WORLD-FIX Monthly Charge and WORLD-FIX Installation Charge are on a quotation
basis.
Link Speed Link Speed Link Speed
Location 9.6Kbps 19.2Kbps 64Kbps
Bolivia Available Not Available Not Available
Brazil Available Available Available
Chile Available Not Available Not Available
Colombia Available Not Available Not Available
Egypt Available Not Available Not Available
Greece Available Available Available
Indonesia Available Not Available Not Available
Malaysia Available Not Available Available
Philippines Available Available Available
Portugal Available Not Available Available
Russia Available Not Available Not Available
South Africa Available Not Available Available
South Korea Available Not Available Not Available
Sri Lanka Available Not Available Not Available
Taiwan Available Available Available
Thailand Available Not Available Not Available
Venezuela Available Not Available Not Available
In Egypt, Greece and Russia all local loop charges, including but not limited to
a monthly charge and an installation charge, will be invoiced to Customer
directly by the PTT in local currency. In all other countries the local loop
charges are included in the WORLD-FIX Monthly Charge and WORLD-FIX Installation
Charge and those charges are in U.S. dollars. In all cases orders for the local
loop are placed on Customer's behalf by CompuServe or CompuServe's WORLD-FIX
partner.
Customer will be charged a one-time $1,500 Deinstallation Fee for each WORLD-FIX
that is deinstalled.
The ongoing provision of WORLD-FIX services is subject to the partner network's
ability to make WORLD-FIX available and satisfaction of all applicable legal or
regulatory requirements. CompuServe will make reasonable efforts to notify
Customer if the WORLD-FIX service is to be terminated for any reason.
<PAGE>
Backup Services
DNL Dial Backup
DNL Dial Backup is available on a contention basis as a standby service and
provides a backup connection for a failed DNL or CompuMode Protocol Interface.
DNL Dial Backup (DDB) is available at speeds up to 56Kbps. DNL Dial Backup
service includes a modem or digital interface unit, cabling and a switch.
Available DNL Dial Monthly Charge per Installation Charge
DNL Speed Backup Speeds DDB per DDB
9.6 Kbps 9.6 Kbps $200 $500
14.4 Kbps 14.4 Kbps $200 500
19.2 Kbps 14.4 Kbps $200 $500
56 Kbps or higher Switched 56 or less* $200 $500
*DNL Dial Backup will be provisioned as a Switched 56, or analog line (28.8
Kbps, where available, or less) depending on the telecommunication services
available at the Customer site and local CompuServe communication center.
The DNL Dial Backup Monthly Charge includes connect-time and all
characters/packets that are transmitted and received during sessions originating
from a Customer's DNL Dial Backup.
If the CompuServe Network Control Center observes that Customer's DNL or
CompuMode Protocol Interface has failed and the Network Control Center is unable
to reactivate the DNL or CompuMode Protocol Interface, CompuServe Network
Control Center will make reasonable efforts to initiate a dial-up connection to
replace the out-of-service link or CompuMode Protocol Interface. The standby
CompuMode Protocol Interface will reside at CompuServe's Network Control Center
in Columbus, Ohio.
The dial-up connection will be maintained as long as Customer's DNL or CompuMode
Protocol Interface is out of service. Upon repair of Customer's DNL or CompuMode
Protocol Interface, CompuServe will terminate the dial-up connection and
re-establish the primary link.
In order to back up a failed CompuMode Protocol Interface, the CompuMode
Protocol Interface must be connected to the Customer host with a Customer
provided serial SDLC connection.
DNL Dial Backup is only available in Region A.
Secondary Site DNL Backup
Secondary Site DNL Backup (SSB) provides for activation of dial-up network links
to allow traffic to be routed to an alternate location if the Customer's data
center becomes non-operational. The dial-up link will operate as a temporary
replacement pending repair of the out-of-service data center.
DNL Speed Available SSB Speeds Monthly Charge Installation
per SSB Charge per SSB
9.6 Kbps 9.6 Kbps $200 $500
14.4 Kbps 14.4 Kbps $200 $500
19.2 Kbps 14.4 Kbps $200 $500
56 Kbps or greater Switched 56 or less* $200 $500
Third Party Option** As provided by Third Parry $150 $500
<PAGE>
*Secondary Site DNL Dial Backup will be provisioned as a Switched 56, or analog
line (28.8 Kbps where available, or less) depending on the telecommunication
services available at the Customer site and local CompuServe communication
center.
** An optional Secondary Site Backup to a Third Party (Third Party Option) data
center is also available. The Third Party Option provider will be responsible
for providing a dial-up phone line and a modem or digital interface unit at the
Customer's secondary site.
The Secondary Site DNL Dial Backup Monthly Charge includes connect-time and all
characters/packets that are transmitted and received during sessions originating
from a Customer's Secondary Site DNL Dial Backup.
CompuServe will use reasonable efforts to provide for activation of dial-up
network links within twenty-four (24) hours of (i) Customer notification to
CompuServe requesting Secondary Site DNL Backup activation and (ii) Customer's
identification of the location of the Customer's secondary host site, if this
site is operated by a third party; if CompuServe does not activate these dial-up
network links within twenty-four (24) hours due to circumstances under
CompuServe's control, Customer's sole and exclusive remedy shall be the waiving
of the Secondary Site DNL Dial Backup Pro-rated Monthly Charge for each SSB
effected. CompuServe makes no warranties regarding the operation or
non-operation of any Customer and/or third party equipment that is required to
interface with CompuServe's Secondary Site DNL Backup services.
Customer must conduct a test of the secondary host site with CompuServe within
two (2) months following CompuServe's provision of Secondary Site DNL Backup
services, and thereafter CompuServe requires that a test is completed at least
once during every twelve (12) month period. Activation of Secondary Site DNL
Backup services is not available until after completion of the initial test.
Following testing, CompuServe will record the configuration tested, and that
will be the same configuration installed when Customer requests Secondary Site
DNL Backup service activation. Customer must notify CompuServe of any changes
implemented at the secondary host site that impact the Secondary Site DNL Backup
configuration. A test must be conducted within two (2) months after these
changes are made to the secondary host site in order to ensure accuracy of the
configuration record.
If Customer wishes to move a secondary host site, Customer must notify
CompuServe at least two (2) months prior to the move, stating the address of the
new secondary host site and number of dial-up network links to be supported at
the new secondary host site. Customer will be required to complete a test of the
new secondary site with CompuServe within two (2) months of the relocation to
the new secondary host site.
Secondary Site DNL Dial Backup is only available in Region A.
Tests of the Secondary Site DNL Backup Service can be scheduled upon one (1)
month notification by Customer through submittal of a letter to CompuServe's
Headquarters. Tests will last a maximum of four (4) hours and can take place
only on Mondays through Fridays between the hours of 9:00am to 5:00pm Eastern
Time, excluding CompuServe designated holidays.
FNL Backup 56
FNL Backup 56 provides a backup connection for a failed FNL56. Each FNL Backup
56 includes one (1) CSU/DSU and necessary cabling; the FNL Backup 56 will be
provisioned as an ISDN, or Switched 56, or analog line depending on the
telecommunication services available at the Customer site and local CompuServe
communication center. FNL Backup 56 is available only in Region A.
Product Name Speed Monthly Charge Installation Charge
Per Link Per Link
FNL Backup 56 56Kbps or less $150 $500
<PAGE>
Remote LAN Access Services
CompuServe RLA
CompuServe RLA enables users to connect to a local area network (LAN) from
remote locations. CompuServe RLA includes an X.25 LAN gateway to connect to one
(1) DNL, and a site license for personal computer software for End-User access
to the X.25 LAN gateway. The X.25 LAN gateway includes one (1) microcomputer,
one (1) network interface card, one (1) X.25 interface card, and CompuServe RLA
gateway software. An optional component of CompuServe RLA is the Remote NetLib
software feature which, when used with LAN based Microsoft or Sybase SQL Server
databases, provides high-speed, platform-independent access from remote
workstations.
Product Name CompuServe Maximum Number of Rest of
RLA Simultaneous Users Region A Region B Region C World
Monthly Charge 24 $500 $700 $700 $700
Installation Charge N/A $500 $1000 $1500 $1500
NetLib software N/A $250 $250 $250 $250
CompuServe RLA/RLN (RLA/RLN)
RLA/RLN enables users to connect to a local area network (LAN) from remote
locations. RLA/RLN includes an X.25 LAN gateway to connect to one (1) CompuServe
DNL and a site license for personal computer software for End-User access to the
X.25 LAN gateway. The X.25 LAN gateway includes one (1) microcomputer, one (1)
network interface card, one (1) X.25 interface card, and RLA/RLN gateway
software.
Product Name RLA/RLN Maximum Number of Rest of
Simultaneous Users Region A Region B Region C World
Monthly Charge up to 32 $750 $950 $950 $950
Installation Charge N/A $500 $1,000 $1500 $1500
Customer will only distribute the personal computer software with a copy of the
Warranty, License, and Copyright information.
Remote Security Adapter (RSA)
RSA is hardware that provides additional system security to that already
provided by the CompuServe Network. It is a device that attaches to the parallel
or printer port of an End-User's remote client PC. This device must be used if
the RLA/RLN server has this function enabled. RSAs may be purchased for a
one-time fee of $40 per RSA. The minimum order and reorder quantity is 10 units.
Media Access Control (MAC)
MAC addresses can be provided by CompuServe for Customers who have the need to
permanently assign an address to each remote user. These individual addresses
will allow the remote user the ability to load the remote LAN Operating System
software prior to actually dialing the call. CompuServe will provide each
Customer up to one thousand (1000) individual MAC addresses with each RLA/RLN
ordered at no incremental charge. Customer may elect to purchase additional MAC
addresses in blocks of 900 addresses for a one-time fee of $200 per block.
1. Warranty. CompuServe Incorporated makes no warranty of any kind, express or
implied, including, without limitation, any warranties of merchantability and/or
fitness for a particular purpose. CompuServe Incorporated shall not be liable
for any damages, whether direct, indirect, special or consequential arising from
failure of this program to operate in a manner desired by the user. CompuServe
Incorporated shall not be liable for any damage to data or property which may be
caused directly or indirectly by the use of this program. IN NO EVENT WILL
COMPUSERVE INCORPORATED BE LIABLE TO YOU FOR ANY DAMAGES, INCLUDING BUT NOT
LIMITED TO ANY LOST PROFITS, LOST SAVINGS, OR OTHER INCIDENTAL OR CONSEQUENTIAL
DAMAGES ARISING OUT OF YOUR USE OR INABILITY TO USE THE PROGRAM, OR FOR ANY
CLAIM BY ANY OTHER PARTY.
<PAGE>
2. License. All versions of Remote LAN Access and associated programs are
licensed software. They are not public domain software, nor are they free
software and may not be posted on any electronic bulletin board system for
downloading to other users. No user may modify Remote LAN Access or associated
programs in any way, including but not limited to, decompiling, disassembling,
or otherwise reverse-engineering the program.
3. Copyright. Under the copyright laws, neither the documentation nor the
software may be copied, photocopied, reduced, translated, or reduced to any
electronic medium or machine readable form, in whole or in part, without the
prior written consent of CompuServe Incorporated, except in the manner described
in the documentation.
<PAGE>
IBM Services
Asynchronous to SNA/SDLC Protocol Conversion Services
Asynchronous to SNA/SDLC Protocol Conversion Services are available for
applications where asynchronous terminals or Personal Computers (PC) are
required to access full screen 3270/5250 applications. The CompuMode Protocol
Interface (Data Center Component) is used in conjunction with DNLs.
Data Center Components
CompuMode Protocol Interface (CompuMode)
CompuMode Protocol Interface is required for CompuMode End-User Software and
asynchronous dumb terminal access to full screen 3270 or 5250 environments. The
CompuMode Protocol Interface appears to the IBM mainframe as a standard 3X74
controller; it appears to the IBM midrange as a standard 5X94 controller. Token
ring or SDLC interfaces are supported. In addition to CompuMode End-User
Software, CompuMode Protocol Interface supports Wall Data's RUMBA software and a
variety of dumb terminals or PC terminal emulation software packages.
Maximum Number of Monthly Monthly Monthly Monthly Charge
Simultaneous Users Charge Charge Charge Rest Of World
Product Name Region A Region B Region C
CompuMode32 32 $750 $850 $850 $850
CompuMode64 64 $1,000 $1,125 $1,125 $1,125
Installation Charge N/A $500 $1,000 $1,500 $1,500
CompuMode Protocol Interface is available in Region A and in Regions B, C and
Rest of World where available.
CompuMode End-User Software
CompuMode-PC
CompuMode-PC is an MS-DOS software program which, when combined with the
CompuMode Protocol Interface, provides IBM 3270 or 5250 SNA/SDLC emulation,
error-free transmission, display and printer sessions, file transfer
capabilities, and a scripting feature. A site license for CompuMode-PC is
included in the Monthly Charge for the CompuMode Protocol Interface.
CompuMode-PC is available worldwide.
CompuMode for Windows
CompuMode for Windows is a software product which, when combined with the
CompuMode Protocol Interface, provides IBM 3270 or 5250 emulation, error free
transmission, display and printer sessions, file transfer capabilities, and a
scripting feature. An additional benefit of CompuMode for Windows is the easy to
use graphical, intuitive interface. A site license for CompuMode for Windows is
included in the Monthly Charge for the CompuMode Protocol Interface. CompuMode
for Windows is available worldwide.
CompuMode for DOS
CompuMode for DOS is a software product that provides the look and feel of
CompuMode for Windows in a DOS environment. CompuMode for DOS, when combined
with the CompuMode Protocol Interface, provides IBM 3270 or 5250 emulation,
error free transmission, display and printer sessions, file transfer
capabilities, and a scripting feature. A site license for CompuMode for DOS is
included in the Monthly Charge for the CompuMode Protocol Interface. CompuMode
for DOS is available worldwide.
<PAGE>
Fast & SecureTM Option
Fast & Secure provides data compression and encryption in the CompuMode suite of
services. Data compression and encryption is available on CompuMode for DOS and
CompuMode for Windows End-User software. Compression is available in Rumba
End-User Software and is enabled on the CompuMode Protocol Interface. Data
compression and encryption can be turned on or off independently and require
that the Fast & Secure option be enabled on the CompuMode Protocol Interface.
Maximum Number of Monthly Installation
Product Name Simultaneous Users Charge Charge
Fast & Secure32 32 $250 $500
Fast & Secure64 64 $250 $500
Fast & Secure Option is available in Region A and on a individual case basis in
Regions B, C and Rest of World.
<PAGE>
Frame Relay Services
FRAME-Netsm
FRAME-Net Services allow frame relay supportive devices to exchange information
using CompuServe's frame relay network. FRAME-Net Services include the following
physical components and configurable selections:
A Frame Network Link (FNL) consists of one (1) port in a CompuServe Frame Relay
Service Center, a digital access circuit between the Customer's premise and the
service center and the required digital interface units.
Permanent Virtual Circuits (PVC) allows connectivity from one network location
to another.
Committed Information Rate (CIR) determines the speed of data transport which
CompuServe will make reasonable efforts to maintain over a given PVC.
Frame Bandwidth Allocation (FBA) is the sum of the CIRs of all outbound PVCs on
an FNL.
FNL Configurations:
- ---------- ----------- ---------- -------- -------- -------- ------ ------------
Region Maximum
Product Avail-abilit Minimum Maximum Minimum Maximum Recommended
Name Port Speed CIR CIR PVCs PVCs FBA
- ---------- ----------- ---------- -------- -------- ------- -------- ----------
- ---------- ----------- ---------- -------- -------- ------- -------- ----------
FNL56 56Kbps A 4Kbps 56Kbps 1 28 112Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ----------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL64 64Kbps B,C 4Kbps 64Kbps 1 28 128Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL128 128Kbps A,B 4Kbps 128Kbps 1 63 256Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL256 256Kbps A,B 4Kbps 256Kbps 1 63 512Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL384 384Kbps A 4Kbps 384Kbps 1 63 768Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL512 512Kbps A 4Kbps 512Kbps 1 63 1024Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL640 640Kbps A 4Kbps 512Kbps 1 126 1280Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL768 768Kbps A 4Kbps 512Kbps 1 126 1536Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL896 896Kbps A 4Kbps 512Kbps 1 126 1792Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL1024 1024Kbps A 4Kbps 512Kbps 1 126 2048Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
FNL1536 1536Kbps A 4Kbps 512Kbps 1 126 3072Kbps
- ---------- ----------- ---------- -------- --------- ------- -------- ---------
Note: Any multiple of 4Kbps between the minimum and maximum CIR is also a
permissible CIR
FRAME-Net Pricing
FRAME-Net pricing is comprised of the FNL Monthly Circuit Charge, the FNL
Monthly Port Charge, Bandwidth Monthly Charge and the Bandwidth Monthly
Surcharge in applicable Regions.
A minimum FBA of 16K will be billed on each FNL; the Bandwidth Monthly Surcharge
is not applied to any 16K FBA minimum adjustment.
<PAGE>
- --------------------- ----------------- ---------------- ----------------------
Region FNL Monthly Available Port FNL Monthly Bandwidth Bandwidth Monthl
Circuit Charge Speeds Port Charge Monthly Charge Surcharge
- ------ -------------- -------------- ---------- -------------- -----------------
A Provided on a 56Kbps $200 $1.50 (per See Regional
quotation basis ----------- -----------
----------- -----------
128Kbps $425 1 Kbps of FBA) Bandwidth
----------- -----------
----------- -----------
256Kbps $550 Surcharge
------------ -----------
------------ -----------
384Kbps $700 Table
------------ -----------
------------ -----------
512Kbps $850
------------ -----------
------------ -----------
640Kbps $1,000
------------ -----------
------------ -----------
768Kbps $1,200
------------ -----------
------------ -----------
896Kbps $1,400
------------ -----------
------------ -----------
1024Kbps $1,600
------------ -----------
------------ -----------
1536Kbps $1,800
<PAGE>
- ------ ------------------------------- ------------------ ----------------------
- ------ ------------------- ------- --------------- --------- -------- ----------
B Within the city of Country City Code FNL64 FNL128 FNL256
Code
---------------- ------- --------------- --------- ---------- ----------
------------- ----------------- ------------------ ----------------------
Vienna, AUST 43 1 $1,265 $1,870 $3,800
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Brussels, BEL 32 2 $ 660 $ 770 $ 935
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Copenhagen, DEN 45 within 10km of $ 550 $2,675 $3,210
city limits
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
London, ENG 44 171 $ 360 $ 595 $ 625
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Paris, FRA 33 1+8 digits $ 660 $1,265 $2,195
starts w/3,4 or
6
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Frankfurt, GER 49 69 $ 330 $ 660 $1,595
64Kbps $ 200 $1.50 (per See Regional
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Munich, GER 49 89 $ 330 $ 660 $1,595
128Kbps $ 425 1 Kbps of FBA) Bandwidth
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Dublin, IRE 353 1 $ 385 $ 455 $1,665
256Kbps $ 550 Surcharge
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Milan, ITA 39 2 $ 950 $1,580 $1,900
Table
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Luxembourg, LUX 352 Not Required Quota- Quota- Quota-
tion tion tion
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Amsterdam, NETH 31 20 $ 815 $1,155 $1,905
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Madrid, SPN 34 1 $ 900 $5,170 $6,205
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Stockholm, SWE 46 8 $ 770 $2,520 $3,025
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Zurich, SWIT 41 1 or 512 $ 530 $ 965 $2,990
---------------- ------- --------------- --------- ---------- ----------
---------------- ------- --------------- --------- ---------- ----------
Outside one of Quota-tionQuota-tion Quota-tion
these Cities
-------------------------------------------------------------------------
-------------------------------------------------------------------------
C Provided on a Based upon Same as Region A $1.50 See Regional
quotation basis availability (per 1 Kbps of FBA) Bandwidth
where available Surcharge Table
- ------ -------------------------------------------------------------------------
- ------ -------------------------------------------------------------------------
Rest of Provided on a Based upon Same as Region A $1.50 See Regional
World quotation basis availability (per 1 Kbps of FBA) Bandwidth
where available Surcharge Table
- --- ---------------- ----------------- ------------------ ----------------------
<PAGE>
Use the following chart to determine the Bandwidth Monthly Surcharge for PVCs
within or between Regions. The Bandwidth Monthly Surcharge is per one (1)
Kilobit per second (Kbps) of FBA and is in addition to the Bandwidth Monthly
Charge.
- --------------------------------------------------------------------------------
Regional Bandwidth Surcharge Table
- --------------------------------------------------------------------------------
- ------------- ------------------- ------------------- --------------------------
To Region A To Region B To Region C To Rest of
World
- --------------------------------------------------------------------------------
From Region A $0.00 $20.50 $30.50 Quotation
(per 1 Kbps of FBA) (per 1 Kbps of FBA) (per 1 Kbps of FBA)
- ------------ ------------------- ------------------- -------------------------
- ------------ ------------------- ------------------- -------------------------
From Region B $20.50 $20.50 $50.50 Quotation
(per 1 Kbps of FBA) (per 1 Kbps of FBA) (per 1 Kbps of FBA)
- ------------ ------------------- ------------------- --------------------------
- ------------ ------------------- ------------------- --------------------------
From Region C $30.50 $50.50 $30.50 Quotation
(per 1 Kbps of FBA) (per 1 Kbps of FBA) (per 1 Kbps of FBA)
- ------------ ------------------- ------------------- --------------------------
- ------------ ------------------- ------------------- --------------------------
From Rest of
World Quotation Quotation Quotation Quotation
- ------------- ------------------- ------------------- -------------------------
<PAGE>
FNL Installation
Charges
- ----------- ------------------ ------ ------------ -----------------------------
Region Installation Charge
- ----------- ------------------ ------ ------------ -----------------------------
- ----------- ------------------ ------ ------------ -----------------------------
A Quotation
- ----------- ------------------ ------ ------------ -----------------------------
- ----------- ------------------ ------ ------------ -------- ------------ -------
Country City Code FNL 64 FNL 128 FNL256
B Within the City of: Code
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Vienna, AUST 43 1 $1,400 $1,400 $3,100
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Brussels, BEL 32 2 $1,500 $1,500 $1,500
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Copenhagen, DEN 45 within 10km $5,700 $7,000 $7,000
of city
limits
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
London, ENG 44 171 $1,900 $7,600 $7,600
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Paris, FRA 33 1+8 digits $2,100 $2,100 $4,600
starts with
3,4 or 6
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Frankfurt, GER 49 69 $3,200 $6,200 $6,200
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Munich, GER 49 89 $3,200 $6,200 $6,200
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Dublin, IRE 353 1 $5,100 $9,600 $24,000
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Milan, ITA 39 2 $900 $1,300 $1,300
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Luxembourg, LUX 352 Not Quot- Quot- Quot-
Required ation ation ation
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Amsterdam, NETH 31 20 $1,700 $1,700 $1,700
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Madrid, SPN 34 1 $5,100 $10,500 $10,500
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Stockholm, SWE 46 8 $1,700 $5,200 $5,200
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Zurich, SWIT 41 1 or 512 $1,700 $1,800 $2,300
------------------ ------- ------------ -------- ---------- --------
------------------ ------- ------------ -------- ---------- --------
Outside one of Quot- Quot- Quot-
these cities ation ation ation
------------------ ------- ------------ -------- ---------- --------
- ----------- ------------------ ------- ------------ ----------------------------
C Individual Case Basis
- ----------- ------------------ ------- ------------ ----------------------------
- ----------- ------------------ ------- ------------ ----------------------------
Rest of World Individual Case Basis
<PAGE>
If Customer elects to exceed the Maximum Recommended FBA, Customer agrees that
(i) it understands and accepts the risks associated with exceeding the Maximum
Recommended FBA, and (ii) the remedies contained in paragraph 6.4 of the
Agreement Terms and Conditions shall not apply to problems related to
CompuServe's provision of FBA that exceeds the Maximum Recommended FBA, and
(iii) Customer agrees to indemnify and hold harmless CompuServe from any claims
related to CompuServe's provision of FBA that exceeds the Maximum Recommended
FBA.
CompuServe will make reasonable efforts to change PVCs or CIRs within five (5)
business days of CompuServe's receipt of the requested change at CompuServe's
Corporate Headquarters.
FRAME-Net Router
Multiprotocol local area network (LAN) FRAME-Net Routers may be used in
conjunction solely with CompuServe Network Services.
Bay Networks Multiprotocol FRAME-Net Router Configurations:
Monthly Charge Per Router
Product Ethernet Token Serial Async Hub ISDN Region Region Region Rest of
Name Ports Ring Ports Ports Ports BRI A B C World
Ports Ports
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
20003 1 0 2 0 0 0 $225 ICB ICB ICB
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
21003 0 1 2 0 0 0 $225 ICB ICB ICB
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
22003 1 1 2 0 0 0 $250 ICB ICB ICB
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
30001e 2 0 2 0 0 0 $425 ICB ICB ICB
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
30001t 2 0 2 0 0 0 $450 ICB ICB ICB
- ------- ----- -------- ----- ----- ----- ----- ------ ------- ------- ----------
ICB = Individual Case Basis by Quotation
Customer's Protocols Supported: IP, OSI, DECnet Phase IV, IPX, VINES, AppleTalk
Phase 2, XNS, Transparent/Source/Translate Route Bridging
<PAGE>
Cisco Systems Inc. Multiprotocol FRAME-Net Router (Cisco) Configurations:
Monthly Charge Per Router
Product EthernetToken Serial Async Hub ISDN Region Region Region Rest of
Name Ports Ring Ports Ports Ports BRI A B C World
Ports Ports
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2501 1 0 2 0 0 0 $200 $300 $325 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2502 0 1 2 0 0 0 $200 $325 $350 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2503 1 0 2 0 0 1 $250 $350 $375 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2504 0 1 2 0 0 1 $250 $350 $375 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2505 1 0 2 0 8 0 $250 $325 $350 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2507 1 0 2 0 16 0 $275 $350 $400 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2509 1 0 2 8 0 0 $250 $325 $350 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2510 0 1 2 8 0 0 $275 $350 $400 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2511 1 0 2 16 0 0 $275 $350 $400 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2512 0 1 2 16 0 0 $300 $425 $450 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2513 1 1 2 0 0 0 $250 $350 $400 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2514 2 0 2 0 0 0 $250 $325 $350 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2515 0 2 2 0 0 0 $275 $350 $400 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2516 1 0 2 0 14 1 $275 $350 $375 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
2517 0 1 2 0 11 1 $300 $375 $425 ICB
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
- ------- ------ ----- ------ ------- ----- ----- ------- ------ ------- ---------
4500 Quot- Quot- Quot- Quot- Quot- Quot- Quot- Quot- Quot- ICB
ation ation ation ation ation ation ation ation ation
- ------- ------ ------ ------ ------ ------ ------ ----- ------ -------- --------
- ------- ------ ------ ------ ------ ------ ------ ----- ------ -------- --------
4500 IP Quot- Quot- Quot- Quot- Quot- Quot- $615 $800 Quot- ICB
ation ation ation ation ation ation ation
- ------- ------ ------ ------ ------ ------ ------ ----- ------ -------- --------
ICB = Individual Case Basis by Quotation
Customer's Protocols Supported: TCP/IP (Novell IPX, DECnet, Appletalk, Banyan,
XNS, Apollo, HP, CMNS), IBM Bridging, IP Routing, LAT, X.25, Telnet
* The 4500IP FRAME-Net Router is for use solely with the IP Link Service.
Customer's Protocols Supported for Revision 10.0 or later: TCP/IP, Novell IPX
FRAME-Net Router Installation Charges
Customer will be billed a one-time Installation Charge of $500 for each
FRAME-Net Router installed within Region A, $1,000 within Region B, $1,500
within Region C, and on a quotation basis for Rest of World.
Each FRAME-Net Router must be attached to at least one (1) FNL or one (1) DNL.
<PAGE>
FRAME-Net FRAD Frame Relay Access Devices (FRADs) may be used in conjunction
solely with CompuServe Network Services. FRAME-Net FRADs will allow Customer to
connect asynchronous, X.25, and/or synchronous devices to CompuServe Network
Services.
FRAME-Net FRAD Configurations:
- ------------------ ------------------------------------------------------------
Product Name Number of Number of Monthly Monthly Monthly Monthly
Serial Token Ring Charge Charge Charge Charge Rest
Ports Ports Region A Region B Region C of World
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD/6 6 0 $150 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD/12 12 0 $300 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD/18 18 0 $350 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD/24 24 0 $550 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD-TR/6 6 1 $250 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD-TR/12 12 1 $300 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD-TR/18 18 1 $400 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
- ------------ ------------ --------- --------- ---------- ---------- -----------
FRAD-TR/24 24 1 $500 Quotation Quotation Quotation
- ------------ ------------ --------- --------- ---------- ---------- -----------
Customer Protocols Supported: Frame Relay, X.25, Async, IBM SDLC, IBM BSC
2780/3780, IBM BSC 3270, Transparent Bit Oriented Protocol, Source Route
Bridging.
Customer will be billed a one-time Installation Charge of $500 for each
FRAME-Net FRAD installed within Region A, $1,000 within Region B, $1,500 within
Region C, and on a quotation basis for Rest of World.
FRAME-Net SDLC FRAD
SDLC Frame Relay Access Devices (SDLC FRAD) may be used in conjunction solely
with CompuServe Network Services. FRAME-Net SDLC FRADs allow Customer to connect
SDLC devices to CompuServe Network Services. FRAME-Net SDLC FRADs are available
only in Region A.
FRAME-Net SDLC FRAD Configurations:
- -------- ------------ ------------------------ ---------------- --------------
Product Number of Number of Token Ring Customer Monthly
Name Serial Supported Serial Port / Ethernet Ports Protocols Charge
Ports Configurations Supported RegionA
- ------- --- ----------------------------- ------------------- --------- ------
FN100 2 1 V.35 & 1 RS232,or 2 V.35 None SDLC or BSC $75
- ------- --- ----------------------------- ------------------- --------- ------
FN200/2 2 1 V.35 & 1 RS232,or 2 V.35 None SDLC or BSC $125
- ------- --- ----------------------------- ------------------- --------- ------
FN200/4 4 1 V.35 & 3 RS232,or 2 V.35 None SDLC or BSC $150
& 2 RS232, or 4 V.35
- ------- --- ----------------------------- ------------------- --------- ------
FN400/2 2 1 V.35 & 1 RS232,or 2 V.35 None, or 1 Token SDLC, BSC, $175
Ring, or 1 Ethernet LLC2
- ------- --- ----------------------------- ------------------- --------- ------
FN400/4 4 1 V.35 & 3 RS232,or 2 V.35 None, or 1 Token SDLC, BSC, $225
& 2 RS232, or 4 V.35 Ring, or 1 Ethernet LLC2
- ------- --- ----------------------------- ------------------- --------- ------
CN200/2 2 1 V.35 & 1 RS232,or 2 V.35, 1 Token Ring or 1 SDLC, BSC, $125
or 2 RS232 Ethernet LLC2
- ------- --- ----------------------------- ------------------- --------- ------
CN200/4 4 1 V.35 & 3 RS232,or 2 V.35 1 Token Ring or 1 SDLC, BSC, $175
& 2 RS232,orV.35,or 4 RS232 Ethernet LLC2
- ------- --- ----------------------------- ------------------- ------- ------
CN400/2 2 1 V.35 & 1 RS232, or 2 V.35, 1 Token Ring or 1 SDLC, BSC, $175
or 2 RS232 Ethernet LLC2
- -------- --- ----------------------------- ------------------- --------- ------
CN400/4 4 1 V.35& 3 RS232,or2V.35 & 1 Token Ring or 1 SDLC, BSC, $225
2 RS232,or4 V.35,or4RS232 Ethernet LLC2
- ------- --- ----------------------------- ------------------- --------- ------
Customer will be billed a one-time Installation Charge of $500 for each SDLC
FRAD.
<PAGE>
Each FRAME-Net FRAD or SDLC FRAD must be attached to at least one FNL or DNL.
Customer agrees that for FNLs or DNLs, with speeds of 384Kbps or less, one (1)
serial port is required to connect the FRAME-Net FRAD or SDLC FRAD to CompuServe
Network Services. For FNLs or DNLs with speeds above 384Kbps, three (3) serial
ports are required to connect the FRAME-Net FRAD or SDLC FRAD to CompuServe
Network Services.
One serial port on the FN100, FN200, and FN400 is required for the network
connection to CompuServe Network Services. The FN100 can support a maximum FNL
or DNL speed of 64Kbps. The FN200 can support a maximum FNL or DNL speed of
128Kbps. The FN400 can support a maximum FNL speed of 1536Kbps.
The CN200 and CN400 must be used in conjunction with a CompuServe provided
FRAME-Net Router in order to support connectivity to CompuServe Network
Services.
FRAME-Net Encrypt
FRAME-Net Encrypt allows Customer to send and receive encrypted data through
CompuServe's FRAME-Net Service. FRAME-Net Encrypt may be used in conjunction
solely with CompuServe's FRAME-Net Services.
The FRAME-Net Encrypt service is available only in Region A.
Monthly Installation
Product Name Charge Charge
FRAME-Net Encrypt $175 $500
At least one FNL must be attached to each FRAME-Net Encrypt device. Customer
must have a minimum of two (2) FRAME-Net Encrypt devices installed to utilize
this service.
<PAGE>
INTERNET SERVICES
Internet Dial
Internet Dial enables remote users utilizing CompuServe or Customer provided IP
client software to dial into a CompuServe PPP (Point to Point Protocol) Server
and connect with the Internet. Internet Dial usage is billed at the Hourly Rates
shown below and this rate applies to 300bps up to 57.6Kbps, where available,
asynchronous dial connections through an Internet Dial Host Name. The Internet
Dial Hourly Rate includes all characters/packets that are transmitted and
received during sessions through an Internet Dial network address. Connect-time
is charged per second with a one (1) minute minimum per session.
Internet Dial Hourly Rate
Hours/Month Rate/Hourly *
0 - 5,000 $4.95
5,001 - 10,000 $4.30
10,001 - 20,000 $3.65
20,001 and Higher $2.70
* Each rate applies only to the usage within the range specified for such rate
and not to aggregate usage on that invoice (e.g. 6,000 Internet Dial Hours of
total use is billed 5,000 hours at $4.95, and 1,000 hours at $4.30).
Customer will also be billed applicable Worldwide Access Surcharges specified in
this Network Services Rate Schedule.
IP Client Software
As an option, CompuServe will provide IP Client Software for use with CompuServe
data network services.
Protocols Supported:
- --------------------------------------------------------------------------------
Product Name Applications/Protocols Supported
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Internet Office Telnet, Spry Mosaic-Secure, Spry 3270, Spry File Manager
Professional 4.1 (FTP), LPR, LPD, Dialer, ImageView, UUCode, FTP/RCP server,
Spry Mail, Spry News, Spry Gopher, Command Line FTP,
LAN WinCIM, Novell TCP/IP & Microsoft TCP/IP
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Internet Office Spry Mosaic-Secure, Spry Mail, Spry Gopher, Spry News,
Navigator 4.1 Dialer, ImageView, LAN WinCIM,Command Line FTP,Command Line
FTP, Novell TCP/IP, and Microsoft TCP/IP
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Internet in a Box Telnet, AIR Mosaic, Spry Dialer, Spry Mail, Spry News, Spry
Gopher, Novell
- --------------------------------------------------------------------------------
Purchase Price Matrix
- ----------------------- -------- -------- --------- --------------- ------------
Product 25-49 50-99 100-249 250-499 500 or more
copies copies copies copies copies
- ----------------------- -------- -------- --------- --------------- ------------
- ----------------------- -------- -------- --------- --------------- ------------
Internet Office $245 $210 $185 $170 $155
Professional 4.1* per copy per copy per copy per copy per copy
- ----------------------- -------- -------- --------- --------------- ------------
- ----------------------- -------- -------- --------- --------------- ------------
Internet Office $165 $150 $140 $130 $115
Navigator 4.1 per copy per copy per copy per copy per copy
- ----------------------- -------- -------- --------- --------------- ------------
- ----------------------- -------- -------- --------- --------------- ------------
Internet in a Box $75 $75 $75 $75 $75
per copy per copy per copy per copy per copy
- ----------------------- -------- -------- --------- --------------- -----------
* Internet Office Professional 4.1 is offered with a Monthly Fee option of $11
per copy.
<PAGE>
Customers that pay a Monthly Fee for the Internet Office Professional 4.1 will
receive software maintenance and upgrades provided at no additional charge.
Customers that purchase the above listed software will receive software
maintenance, upgrades and telephone technical support for the first three (3)
months from Customer's initial order.
IP Client Software purchased by Customer is Customer's property subject to the
terms of the software license.
Spry Mosaic-Secure application is not available outside of the United States and
Canada. A non-secure version will be shipped to locations outside the United
States and Canada.
The minimum order quantity to purchase IP Client Software is twenty-five (25)
copies. The minimum additional order is twenty-five (25) copies. Orders of any
size (e.g., 27, 102, etc.) will be accepted provided the order is at least
twenty-five (25) copies.
The minimum initial order quantity to be eligible for the Monthly Fee option for
Internet Office Professional is at least one-hundred (100) copies; the minimum
additional order is twenty-five (25) copies. Initial orders of any size (e.g.
102, 517, etc.) will be accepted provided the order is one-hundred (100) copies
or greater, and additional orders of any size (e.g. 27, 102, etc.) will be
accepted provided the order is twenty-five (25) copies or greater.
The rates listed in the Purchase Price Matrix apply to an individual order. For
example, if Customer orders 105 copies of Internet Office Navigator 4.1, then
Customer would be billed at $140 for each copy for a total of $14,700. If
Customer placed a second order for 25 copies of Internet Office Navigator 4.1,
then Customer would be billed an additional charge of $165 for each copy for a
total of $4,125.
If Customer discontinues using the IP Client software or upon termination of
this Agreement, Customer shall promptly cease all use of the IP Client software
provided on a Monthly Fee basis and within ten (10) days return all copies of
the IP Client software to CompuServe or certify that the IP Client software
(including all copies thereof) has been destroyed.
The use of Internet Office Professional and Internet Office Navigator is subject
to the terms of the Software License Agreement (see Apendix C); the use of
Internet in a Box is subject to the terms of the Internet in a Box Software
License Agreement.
Internet Link
Internet Link is provisioned through CompuServe's FRAME-Net service to establish
a connection between the Customer's network and CompuServe's Internet Gateway.
The connection from CompuServe's Internet Gateway to the Customer's environment
is through a permanent virtual circuit (PVC) on the CompuServe FRAME-Net
service. A Customer or CompuServe provided Cisco router is needed to use this
service. The PVC may be configured on an FNL already installed at a Customer
site. The PVC will be configured to have the same Committed Information Rate
(CIR) from the Customer's Frame Network Link (FNL) to the Internet Gateway (DLCI
997 or DLCI 998) and in the return direction.
Monthly Fee per PVC
Bi-Directional CIR Region A Region B Region C Rest of World
32Kbps $96 $1,408 Not Available Not Available
56/64Kbps $168 $2,816 Not Available Not Available
128Kbps $384 $5,632 Not Available Not Available
256Kbps $768 $11,264 Not Available Not Available
384Kbps $1,152 Not Available Not Available Not Available
512Kbps $1,536 Not Available Not Available Not Available
<PAGE>
The Monthly Fee per PVC is in lieu of the Bandwidth Monthly Charge and Bandwidth
Surcharge for those PVCs.
Customer or CompuServe will supply any IP addresses required for use with this
service. A valid IP address is numeric, comprised of four sections separated by
periods, with each section having up to three numbers; a sample format is
xxx.xxx.xxx.xxx .
Internet Link Plus
Internet Link Plus is provisioned through CompuServe's FRAME-Net service to
establish a connection between the Customer's network and CompuServe's Internet
Gateway. The connection from CompuServe's Internet Gateway to the Customer's
environment is through a PVC on the CompuServe FRAME-Net service. A Customer or
CompuServe provided Cisco router is needed to use this service. Additionally a
Customer or CompuServe provided Firewall is needed to use this service. The PVC
will be configured to have the same CIR from the Customer's FNL to the Internet
Gateway (DLCI 997 or DLCI 998) and in the return direction.
Monthly Fee per PVC
Bi-Directional CIR Region A Region B Region C Rest of World
32Kbps $96 $1,408 Not Available Not Available
56/64Kbps $168 $2,816 Not Available Not Available
128Kbps $384 $5,632 Not Available Not Available
256Kbps $768 $11,264 Not Available Not Available
384Kbps $1,152 Not Available Not Available Not Available
512Kbps $1,536 Not Available Not Available Not Available
The Monthly Fee per PVC is in lieu of the Bandwidth Monthly Charge and Bandwidth
Surcharge for those PVCs.
Customer or CompuServe will supply any IP addresses required for use with this
service. A valid IP address is numeric, comprised of four sections separated by
periods, with each section having up to three numbers; a sample format is
xxx.xxx.xxx.xxx .
IP Link
IP Link is comprised of Cisco IOS software which enables Customer's users to
utilize CompuServe or Customer provided IP client software to connect with
TCP/IP attached Customer hosts. IP Link requires the use of a CompuServe
provided DNL with a speed of at least 56Kbps and a CompuServe provided Cisco
router. IP Link usage is billed at the FIXED-Dial Hourly Rate and this rate
applies to 300bps up to 57.6Kbps, where available, asynchronous dial connections
through an IP Link network address (i.e.Host Name). The FIXED-Dial Hourly Rate
includes all characters/packets that are transmitted and received during
sessions through a IP Link network address. Customer will be billed the rates
contained in this Network Services Rate Schedule for the DNL and FRAME-Net
Router associated with the use of the IP Link service.
Customer must supply any IP addresses required for use with this service. A
valid IP address is numeric, comprised of four sections separated by periods,
with each section having up to three numbers; a sample format is xxx.xxx.xxx.xxx
.
<PAGE>
IP Link Plus
Each IP Link Plus is comprised of one (1) private PPP server, one (1) router and
X.25 and Frame Relay port(s), installed at a CompuServe site which enables
Customer's users to utilize CompuServe or Customer provided IP client software
to connect with TCP/IP attached Customer hosts; IP Link Plus also includes
CompuServe's setup and ongoing maintenance of these items at a CompuServe site.
Each PPP server can accommodate up to 100 simultaneous users. IP Link Plus
requires the use of an FNL and a CompuServe or Customer provided Cisco router
located at the Customer site. The PVC will be configured to have the same CIR
from the Customer's FNL to the CompuServe site where the PPP server is located
and in the return direction.
IP Link Plus usage is billed at the FIXED-Dial Hourly Rate and this rate applies
to 300bps up to 57.6Kbps, where available, asynchronous dial connections through
an IP Link Plus network address (i.e. Host Name).
Monthly Fee per PVC
Bi-Directional CIR Region A Region B Region C Rest of World
56/64Kbps $168 $2,816 Not Available Not Available
128Kbps $384 $5,632 Not Available Not Available
256Kbps $768 $11,264 Not Available Not Available
384Kbps $1,152 Not Available Not Available Not Available
512Kbps $1,536 Not Available Not Available Not Available
The Monthly Fee per PVC is in lieu of the Bandwidth Monthly Charge and Bandwidth
Surcharge for those PVCs.
Customer will be billed an Installation Charge of $2,500 and a Monthly Charge of
$1,500 for each IP Link Plus provided by CompuServe. This Monthly Charge is
discounted according to Customer's Discount Schedule B rate.
Customer must supply any IP addresses required for use with this service. A
valid IP address is numeric, comprised of four sections separated by periods,
with each section having up to three numbers; a sample format is xxx.xxx.xxx.xxx
CompuServe Firewall
CompuServe Firewall enables Customer to configure a network security system for
monitoring and controlling network traffic that passes to and from the
Customer's local area network. CompuServe Firewall must be used in conjunction
with a dedicated FRAME-Net Services or associated Internet Link products.
CompuServe Firewall is the Gauntlet System, from Trusted Information Systems,
Inc., which provides a means of controlling communications between protected and
unprotected networks through the use of application level proxy services that
are selectively enabled based on Customer provided specifications. CompuServe
Firewall consists of one (1) workstation with two (2) network interface cards, a
UNIX operating system, and Firewall application software. Installation and
support for this system will be provided by Trusted Information Systems, Inc..
Product Name
CompuServe Firewall Region A Region B
Monthly Charge $650 $1,000
Installation Charge $1,000 $1,500
CompuServe Firewall must be installed between Customer's local area network and
a Customer or CompuServe provided Cisco router. A Cisco 2513 router is required
if Customer elects the Token Ring LAN Interface.
Availability of the CompuServe Firewall system is based on United States
Government restrictions, and is available in Regions A and B where CompuServe
has a point of presence on its data network; a version of CompuServe Firewall
that does not include encryption will be shipped to locations in Region B.
Customer agrees that CompuServe Firewall is provided subject to the terms and
conditions of the Software License Agreement from the Trusted Information
Systems, Inc. (See Appendix D)
<PAGE>
Application Based Network Services
Enterprise Connectsm for Lotus NotesR
Enterprise Connect for Lotus Notes (Enterprise Connect) is the network
interconnection service between Customer's computing and communications systems
and CompuServe's computing and communications systems that enable Users to
access certain information provided by Customer and Users, to access a mail
feature, to access portions of the CompuServe Information Service or other
online services provided by CompuServe that are in a Lotus Notes compatible
format and are collectively referred to as the Enterprise Information Link
("EIL"), and to access the CompuServe Information Service and other online
services provided by CompuServe that are not in a Lotus Notes format.
The CompuServe Information Service and other online services provided
by CompuServe, are sometimes referred to as the "Public Service"."User"
refers to individuals who use accounts initiated with Sign-up Kits
distributed by Customer. "Connect-time" is the amount of time for which a
User is connected to Enterprise Connect. "Sign-up Kit" is a CompuServe user
identification code, password, sign-up diskette and instruction booklet.
Customer may elect either the End-User Option or the Corporate Business Account
Option.
End-User Billing Option
With the End-User Billing Option, Users will be billed for connect-time in one
minute increments, at an Hourly Rate of $18, plus applicable surcharges for
access to Customer's application. Charges for the Hourly Rate, net of discounts
and Royalty (if applicable), associated with User access to Customer's
application apply toward Customer's Monthly Minimum. If Customer elects this
option CompuServe will bill Users the Hourly Rate and applicable surcharges.
Customer may elect i) to have Discount Schedule B apply to the Hourly Rate or
ii) to receive payment from CompuServe equal to the amount by which the
aggregate charges associated with the Hourly Rate, less any amount that is not
collected from Users, would be reduced if Discount Schedule B was applied (the
"Royalty"). If Customer elects to receive a Royalty, CompuServe will make
payment to Customer of the Royalty within two (2) months following the end of
the month in which the related charges are invoiced by CompuServe.
Corporate Business Account Option
With the Corporate Business Account Option, Customer will be billed for Users
connect-time, in one (1) minute increments, at an Hourly Rate of $16, plus
applicable surcharges for access to Customer's application. Charges for the
Hourly Rate, net of discounts, associated with User access to Customer's
application apply toward Customer's Monthly Minimum. If Customer elects this
option, CompuServe will bill Customer the Hourly Rate and applicable surcharges
on a monthly basis. Customer must execute the standard CompuServe Business
Account and such charges will be billed on an invoice separate from Customer's
Network Services invoice. Discount Schedule A will apply to the Hourly Rate.
Additional Enterprise Connect Rates
The Installation Charge for Enterprise Connect is $7,500.
The Enterprise Connect mail feature allows users to compose mail in a native
notes format and exchange that mail with other Enterprise Connect users or users
that are accessible via the CompuServe Mail Hub. Use of the Enterprise Connect
mail feature will be billed at $0.35 per access to the Enterprise Connect mail
server and $0.02 per 5000 characters (or fraction thereof) sent or received;
depending on the billing option elected by Customer, these charges will be
billed to Users or Customer and these charges are not subject to Discount
Schedule A or B.
<PAGE>
Depending on the billing option elected by Customer, User access to EIL will be
billed to Users or Customer at the rates published online, while User access to
the CompuServe Information Service will be billed to Users or Customer at the
then current rates contained in the Alternative Plan online, and access to other
online services provided by CompuServe will be billed to Users or Customer at
the then current rates contained online; none of the charges associated with
these services will be subject to Discount Schedule A or B.
Obligations of Customer
Customer shall make available its initial content, such as the data and program
files, in electronic or machine readable form for the initial release of
Enterprise Connect.
Customer shall install its information and maintain its availability on
CompuServe's systems and will update the contents on a regular basis. CompuServe
will use reasonable efforts to make the initial release of Enterprise Connect
available within forty-five (45) days following CompuServe's receipt of
Customer's order for this service.
Customer shall undertake procedures, including those reasonably requested by
CompuServe, to virus protect files uploaded to Enterprise Connect.
Customer shall be responsible for all activities of its employees and agents
while using EIL, the CompuServe Information Service, or other online services
provided by CompuServe. Customer shall require all Users to sign-up for
Enterprise Connect using a Sign-up Kit. Use of EIL, the CompuServe Information
Service, or other online services provided by CompuServe, is subject to the
terms of the CompuServe Information Service Agreement Terms and Operating Rules
or other applicable agreement and is not governed by the Network Service
Agreement.
Customer grants CompuServe a worldwide license to distribute Customer's
information contained in Enterprise Connect to Users.
Obligations of CompuServe
CompuServe will provide disk storage, at a level it reasonably determines to be
appropriate, on CompuServe's systems at no additional charge to Customer.
CompuServe shall provide Customer with up to two hundred (200) Sign-up Kits,
ordered in increments of twenty-five (25), at no incremental charge. CompuServe
may, in its sole discretion, provide additional Sign-up Kits at no additional
charge. The parties may agree to a price for the additional Sign-up Kits.
Advertising, Promotion, and Ownership
Neither Customer nor CompuServe shall present or permit any advertising or
promotional material which makes reference to the other party or Enterprise
Connect without prior written approval of the other party. Approval shall not be
unreasonably withheld and must be communicated within a reasonable amount of
time. Neither party obtains rights to information provided by the other or by
any third party solely by its use of the information in performing its
obligations or exercising its rights under the Network Services Agreement.
Customer Warranties
With respect to the Enterprise Connect for Lotus Notes service, Customer
warrants that (a) the conduct of, and the information provided by, Customer or
Users does not and will not infringe upon or violate any trademark, copyright,
patent, trade secret, or other proprietary right, and (b) the information
provided by Customer or Users is either the property of Customer or User or the
subject of a sufficient grant of license rights.
<PAGE>
Indemnification
With respect to the Enterprise Connect for Lotus Notes service, Customer shall
indemnify and hold harmless CompuServe and its employees, agents and service
providers against any third party claim or action (together with expenses,
including but not limited to reasonable attorneys' fees) brought against
CompuServe based on or resulting from: (a) Customer's breach of its obligations;
or (b) information originating with, or furnished hereunder by, Customer, Users,
or their respective agents or employees, including any claim of libel,
defamation, invasion of privacy, or infringement of any trademark, copyright,
patent, trade secret, or other right, except to the extent the claim or action
results from the knowing and willful misconduct of CompuServe. The first
sentence of paragraph 7.2 of the Agreement Terms and Conditions does not apply
to claims or actions (or associated expenses) brought against Customer, any
User, or its respective employees or agents, to the extent that the claim or
action arose out of such person's use of EIL, the CompuServe Information Service
or the Public Service.
Mosaic Direct
The Enterprise Connect for WWW/Mosaic Direct ("MD Service") consists of: (i)
access to information provided by Customer stored on a Customer provided server
by Customer's Users through the CompuServe Network and CompuServe Internet
Protocol processors and communications equipment, and (ii) CompuServe's Windows
based Mosaic World Wide Web Browser communications package, configured with
Customer's universal resource locator at the time this service is ordered,
Customer specified hot lists (including Spry and CompuServe universal resource
locators), the splash screen graphic artwork provided by Customer, and a
reasonable amount of text provided by Customer that appears during installation
(collectively the "Dial Product"), and (iii) access to the Internet, and (iv) at
CompuServe's option, access to the CompuServe Information Service or other
CompuServe services.
With regard to the MD Service, the term "Users" means individuals that obtain
the Dial Product from Customer and access the MD Service.
Users will be billed by CompuServe and will be charged a Monthly Fee of $9.95
plus applicable surcharges for up to seven (7) hours of access per month to the
MD Service through the CompuServe Network. For access that exceeds seven (7)
hours per month Users will be charged an Hourly Rate of $1.95 plus applicable
surcharges billed in one (1) minute increments. Charges associated with the
Monthly Charge and $1.95 Hourly Rate apply toward Customer's Monthly Minimum.
Neither Discount Schedule A nor B apply to the Monthly Fee or $1.95 Hourly Rate.
Users will be charged CompuServe's then current rates for access to the
CompuServe Information Service and other CompuServe services.
Obligations of Customer
Customer shall provide and maintain the content of its information and its
availability on the MD Service. Customer shall actively market and promote, at
its sole expense, the distribution of the Dial Product and the use of the MD
Service. Customer specific marketing obligations shall be contained in a
mutually agreed upon written attachment to this Agreement.
Customer shall distribute the Dial Product with the User agreement provided by
CompuServe.
Except for mutually agreed upon references, neither the Customer nor CompuServe
shall present or permit any advertising or promotional material which makes
reference to the other's products or services, or trademark, logo or similar
symbol, without prior written approval by the other party. All advertising or
promotional material which makes reference to the other party's products or
services must be approved by that party before final release. Approval shall not
be unreasonably withheld and must be communicated within a reasonable amount of
time.
<PAGE>
Customer agrees it will notify CompuServe three (3) months prior to changing its
universal resource locator.
Customer agrees that CompuServe is and shall remain while this Agreement is in
force the exclusive provider of access to the MD Service and the exclusive
provider of the Dial Product.
CompuServe reserves the right to terminate Customer's MD Service upon one (1)
month prior written notice to Customer should ten percent (10%) or more of the
total charges generated under the MD Service remain uncollectible for any two
(2) consecutive months that Customer's MD Service is in effect; should Customer
remit payment for all of these charges to CompuServe before the end of one (1)
month, then Customer's MD Service will not be terminated. CompuServe reserves
the right to suspend or terminate access to Customer's MD Service for any User
if any payment due is not made within one (1) month after the billing date.
Distribution
CompuServe grants to Customer, a limited non-exclusive license to distribute the
Dial Product in connection solely with the MD Service.
Customer shall have no right to make or authorize any further copies of the Dial
Product or any portion thereof, nor any right to decompile, disassemble, reverse
engineer, or make or distribute any other form of, or derivative work from the
Dial Product.
CompuServe grants Customer a limited, non-exclusive license to use the Mosaic
Direct trademark in connection with the MD Service.
Order and Shipping
The minimum initial and reorder quantity is ten thousand (10,000) Dial Product
diskettes. Customer will be charged $1.00 for each Dial Product diskette. The
label on each diskette may, at Customer's request, include Customer's logo as
contained in artwork supplied by Customer. Shipment shall be via ground
transportation at CompuServe's expense.
Customer Warranties
Customer warrants that the information on its server(s) which is presented to
Users is and will be reliable, and does not and will not (i) infringe upon or
violate any copyright, patent, trade secret, or other proprietary right; (ii)
libel, defame, slander, invade the privacy of, or violate the publicity rights
of any person; or (iii) violate any applicable law or regulation.
CompuServe Warranties, Limitations on Liability
In addition to the warranty contained in Paragraph 6.1 of the Agreement Terms
and Conditions, CompuServe warrants that any physical medium on which the Dial
Product is distributed and the documentation are free from defects in materials
and workmanship. CompuServe will replace defective media or documentation
provided they are returned to CompuServe within two (2) months of the date of
delivery. Should the Dial Product fail to perform in substantial compliance with
documentation supplied by CompuServe, CompuServe will replace such copies with
copies that do perform in substantial compliance upon Customer's explanation of
the defect and return of all copies of the Dial Product and documentation. If
this remedy fails, Customer's sole remedy shall be to terminate the use of the
MD Service and to receive a pro-rated refund of the fees paid based on the
percentage of non-complying copies, less any royalties paid to Customer. With
regard solely to the MD Service, the remedies contained in this paragraph are in
lieu of the remedies contained in Paragraph 6.4 of the Agreement Terms and
Conditions.
<PAGE>
Relationship and Indemnification
The relationship between Customer and CompuServe shall be that of buyer and
seller, as independent contractors. Nothing contained in this Agreement shall
constitute the Customer being the outlet, partner, broker, employee, servant or
agent of or for CompuServe.
Neither party hereto shall have the right to make any warranties or incur any
liabilities or obligations on behalf of or binding upon the other party.
With regard solely to the MD Service, the following replaces Paragraph 7.2 of
the Agreement Terms and Conditions:
Each party shall indemnify the other party and the other party's directors,
officers, employees and agents from any and all claims, or allegations of
conduct, that would constitute a breach by such party of any obligation or term,
condition or warranty under this Agreement and any demands, liabilities and
expenses, including reasonable attorney fees, resulting from the claim. This
indemnification does not apply to the extent the claims, demands, liabilities or
expenses result solely from the gross negligence or willful misconduct of the
party seeking indemnification.
CompuServe agrees to indemnify Customer for any monetary damages and costs
finally awarded against Customer by a court of competent jurisdiction in
connection with a finding that the Dial Product, when properly used in the
United States in accordance with CompuServe's specifications, infringes upon a
currently issued United States' patent or copyright, provided that CompuServe is
given prompt written notice of any such claim. Whether or not a claim has been
brought, Customer shall indemnify CompuServe for all damages, costs, and
reasonable attorneys' fees arising from any such claim of infringement after
CompuServe has notified Customer that a revised version of the Dial Product is
available, if such claim would have been lessened or avoided by the use or sale
of such revised version. This indemnification does not apply to claims arising
from modifications Customer makes to the Dial Product.
THE FOREGOING STATES COMPUSERVE'S SOLE LIABILITY, AND CUSTOMER'S SOLE REMEDY,
FOR INFRINGEMENTS OF THE RIGHTS OF OTHERS WITH RESPECT TO THE DIAL PRODUCT.
The MD Service Relationship and Indemnification section of this Network Services
Rate Schedule will survive the termination of this Agreement, regardless of the
reason for termination.
Export of Dial Product
Customer is advised and acknowledges that the export of the Dial Product is
subject to compliance with United States export control law. Customer warrants
that it is not subject to any order suspending, revoking or denying its export
privileges and assures CompuServe that neither the Dial Product acquired from
CompuServe, nor any product, service or process produced by the use of Dial
Product, is intended to be, or shall be, shipped or otherwise exported except in
full compliance with all United States and foreign laws, regulations and orders
applicable to the export of such items.
<PAGE>
End-User Billing Services
End-User Billing Services are available for asynchronous dial access to the
CompuServe Network.
Information AllianceSM
Information Alliance is a service by which access to a Customer host is billed
directly to End-Users. Each End-User has a CompuServe User Identification number
(User ID) and a unique password to access Customer and CompuServe (CIS) provided
services.
CompuServe reserves the right to terminate Information Alliance services upon at
least one (1) month prior written notice to Customer should ten percent (10%) or
more of the total charges generated under Customer's End-User Billing Service
remain uncollectible for any two (2) consecutive months that Information
Alliance services are available. Should Customer remit payment for these charges
to CompuServe within one (1) month, then Information Alliance services will
remain available. CompuServe reserves the right to suspend or terminate access
to both Customer and CompuServe provided services to any End-User if any payment
due is not made within one (1) month after the billing date. Each End-User is
subject to the CompuServe Information Services Agreement Terms and Operating
Rules.
Monthly Revenue Guarantee and Rates
End-User Billing Services require a Monthly Revenue Guarantee of at least $3500.
The Monthly Revenue Guarantee is not eligible towards and is separate from
Customer's Monthly Minimum. Total Premium Service Surcharges, for access to
Customer provided services, less Royalty payments (if any), must equal or exceed
Customer's Monthly Revenue Guarantee or Customer will be billed the difference.
End-Users will be billed at the then current standard CIS rates, as published
online, plus a $4.00 per hour Premium Service Surcharge for access to the
Customer provided service.
The Premium Service Surcharge is an hourly rate for 300bps up to 57.6Kbps, where
available, asynchronous dial access to Customer provided services. The Premium
Service Surcharge includes all characters/packets that are transmitted or
received during Information Alliance sessions. Connect-time is billed in one (1)
minute increments. End-Users will be billed any applicable charges and
surcharges as contained online on CIS for access to either Customer or
CompuServe provided services. All End-User charges will be billed weekly or
monthly to each End-User depending upon the billing option elected by the
End-User.
CompuServe Information Manager "One-Step" Kit
CompuServe will provide Customer with One-Step Kits to be used by End-Users to
complete the End-User sign up process. One-Step Kits contain unique serial and
agreement numbers for use by End-Users in the End-User sign up process to obtain
a unique User ID and initial password. One-Step Kits are provided in blocks of
four hundred (400). Each One-Step Kit includes the then current CIS usage credit
amount which will be applied to the End-User's access to CIS.
Product Name Quantity Charge
One-Step Kits First 400 No Charge
Each Additional 400 $800
Royalty Option
At Customer's option, Customer may notify CompuServe of a dollar-per-hour amount
for a Premium Adjustment to be added to the Premium Service Surcharge. The
percentage amount of such Premium Adjustment that will be paid by CompuServe to
Customer as a Royalty is eighty percent (80%) of the Premium Adjustment.
<PAGE>
End-User access to Customer provided services or User IDs which do not generate
revenue, including but not limited to an End-User's access resulting from
purchase of pre-validated User IDs for which no additional connection or account
charge is levied, use for demonstration, in-house use by CompuServe employees,
or any use related to uncollectible amounts or credits, will not be subject to
any Royalty payment.
CompuServe will make payment to Customer of Royalty due within two (2) months
following the end of the month in which the related charges are billed to the
End-Users by CompuServe.
Links
Only CompuServe provided links will be connected to Customer's host computers to
enable access to the Customer provided services.
Additional Terms and Conditions
Customer agrees to distribute One-Step Kits at its sole expense and not to
resell them as stand-alone items.
Customer agrees to make available through CompuServe all improvements and
updates to Customer provided services which Customer makes or acquires while
Customer is utilizing the Information Alliance service. Customer agrees to
reference CompuServe in all Customer produced marketing materials that promote
the Customer provided services; all references to CompuServe must be approved by
CompuServe prior to Customer's distribution of such materials. Should Customer
desire to suspend or terminate any End-User access to Customer provided
services, Customer will provide the End-User with written notice, copying
CompuServe on this notice, prior to suspending or terminating End-User's access.
<PAGE>
Additional Charges
Monthly Account Charge
Product Name Monthly Charge
Monthly Account Charge $300
Each Network Services account incurs a Monthly Account Charge. This includes all
User Identification Codes (UICs) and Host Name network addresses. Also included,
if elected, are the following reports: Detail of Usage by Session, Summary of
Usage by UIC, Summary of Usage by Node of Origin, Summary of Usage and Charges
by Host, Summary of Usage and Charges by UIC, FRAME-Net Charges by Site,
FRAME-Net PVC Utilization Report.
These reports are available in a private online area. Additional reports are
available for additional charges.
Moves and Changes
Currently installed links, units of equipment, or services can be moved or
changed (such as an upgrade to a higher speed).
If a telephone company is dispatched, standard CompuServe Installation Charges
for each unit of equipment, link, or service will be billed to Customer. If a
telephone company is not dispatched, the following charges will be billed to
Customer: $500 if the move or change occurs in Region A; $1,000 if the move or
change occurs in Region B; or $1,500 if the move or change occurs in Region C or
Rest of World.
CompuServe will waive the above charge if the move and/or change is ordered and
performed simultaneously, at the same site, with the installation of any new
hardware or service.
Pre-installation Cancellation Fee
In the event Customer cancels its Agreement or order after acceptance by
CompuServe, but before the network link and equipment are installed, CompuServe
reserves the right to bill Customer a one-time $1,000 Pre-installation
Cancellation Fee.
Non-Business Hour Charges
CompuServe reserves the right to impose a charge equal to twice the standard
charge for any Installations, Moves or Changes during CompuServe's Non-Business
Hours (example: $1,900 to install a DNL9.6 in France during CompuServe's Normal
Business Hours, $3,800 to install that DNL9.6 during Non-Business Hours.)
CompuServe's Normal Business Hours are 8:30AM-5:00PM local time, Monday-Friday,
excluding CompuServe designated holidays.
<PAGE>
APPENDIX A
Worldwide Access Service Descriptions/Definitions
Service Descriptions/Definitions
CompuServe
Western Europe Any CompuServe point of presence in Western Europe
currently including: Austria, Belgium, Denmark, France,
Germany, Ireland, Italy, Luxembourg, the Netherlands,
Spain, Sweden, Switzerland, and the UK. Access from any
CompuServe point of presence in Western Europe that may
become available in the future (such as Finland, Greece,
Norway or Portugal) will be subject to the surcharges
indicated in the Gateway Access Surcharge table, unless
CompuServe issues written notice stating otherwise.
CompuServe USA, Canada, Any CompuServe point of presence in the USA, Canada or
Puerto Rico
Puerto Rico
CompuServe Japan Any CompuServe point of presence in Japan.
CompuServe Mexico Any CompuServe point of presence in Mexico.
CompuServe Pacific Any CompuServe point of presence in Hong Kong and in
Pacific Rim locations that may become available in the
future such as Singapore.
AFRICANET Access from any of the following African countries via
SCITOR's network using the CompuServe NUI 19730001:
Angola, Cameroon, Cape Verde, Ivory Coast, Egypt, Ghana,
Malawi, Nigeria, Reunion, Sierra Leone, South Africa,
Swaziland, Togo, Zambia*
AUSTRALIA-Connect Access to the FALNET network in Australia or New Zealand
or from the FALNET network in Australia or New Zealand
using the CompuServe mnemonic
CANADA-Connect Access from Datapac in Canada using the CompuServe
NUA 29400138.
EURO-Connect Access from Infonet nodes in European locations where
there is no CompuServe
point of presence using the CompuServe mnemonic EURO.
EURO-Connect/ALT Access from Infonet nodes in European locations where
there is a CompuServe
point of presence, using the CompuServe mnemonic EURO.
EURONET Access from any of the following European countries via
SCITOR's network using the CompuServe NUI 19730001:
Andorra, Bosnia/Herzegovina, Bulgaria,Croatia, Czech
Republic, Finland, Gibraltar, Greece, Hungary, Iceland,
Italy,Liechtenstein, Luxembourg, Malta, Monaco, Norway,
Poland, Portugal, Russia, San Marino, Slovak Republic,
Turkey, Yugoslavia.*
FT Austria-Connect Access from France Telcom in Austria
FT Belgium-Connect Access from France Telcom in Belgium
FT Denmark-Connect Access from France Telcom in Denmark
FT Finland-Connect Access from France Telcom in Finland
FT France-Connect Access from France Telcom in France
FT Germany-Connect Access from France Telcom in Germany
FT Ireland-Connect Access from France Telcom in Ireland
FT Italy-Connect Access from France Telcom in Italy
FT Luxembourg-Connect Access from France Telcom in Luxembourg
FT Netherlands-Connect Access from France Telcom in Netherlands
FT Norway-Connect Access from France Telcom in Norway
FT Portugal-Connect Access from France Telcom in Portugal
FT Romania-Connect Access from France Telcom in Romania
FT Spain-Connect Access from France Telcom in Spain
FT Sweden-Connect Access from France Telcom in Sweden
FT Swiss-Connect Access from France Telcom in Switzerland
FT UK-Connect Access from France Telcom in The United Kingdom
GERMANY-Connect Access from DATEX-P in Germany using the CompuServe
NUA R 4569002330.
GUAM-Connect Access from PACNET in American Samoa, Guam or Saipan
using the CompuServe mnemonic CNSG.
HUNGARY-Connect Access from CompuServe in Hungary.
IRELAND -Connect Access from Eirpac in Ireland using the CompuServe
NUA R37456178.
ISRAEL-Connect Access from Isranet in Israel using the CompuServe
NUA 3300014619, or from
Trendline in Israel to the CompuServe NUA .CNS.
<PAGE>
ITALY-Connect Access from SEVA in Italy using the CompuServe NUA
CSERVE-41.
JAPAN-Connect Access to the FENICSII, III or IV network in Japan or
from the FENICS II, III or IV network in Japan using the
CompuServe mnemonic C CNSJ.
LATINET Access from any of the following Latin Americancountries
via SCITOR's network using the CompuServe NUI 19730001:
Bolivia, Chile, Peru, Venezuela*
MEXICO-Connect Access from IUSANET in Mexico using the CompuServe NUA
CALL CNSM.
PACIFICNET Access from any of the following Pacific Rim/Asian
countries via SCITOR's network using the CompuServe NUI
1973001: Philippines, Sri Lanka, Taiwan.*
PTT-Connect Prepaid access from worldwide PTT networks via
International Record Carriers.
S.KOREA-Connect Access from POS-Net in South Korea using the CompuServe
mnemonic CNS.
SWED020-Connect Toll-free (020) access to CompuServe in Sweden.
SWITZERLAND-Connect Access from Telepac in Switzerland using the CompuServe
NUA R67911303.
TAIWAN-Connect Access to or from TTN-NET in Taiwan using the CompuServe
mnemonic CNST.
UK-Connect Access from Mercury 5000 in the UK using the CompuServe
mnemonic, ,UKCNS or access from GNS Dialplus in the UK
using the CompuServe mnemonic UKCNS.
VENEZUELA-Connect Access from Venezuela-Net in Venezuela.
WORLD-Connect Access from Infonet nodes in non-European locations
where there is no CompuServe point of presence using the
CompuServe mnemonic CPS.
WORLD-Connect/ALT Access from Infonet nodesin non-European locations where
there is a CompuServe point of presence or a preferred
mode of access (such as AUSTRALIA-Connect in Australia)
using the CompuServe mnemonic CPS.
WORLD-Connect Mexico Access from Infonet nodes in Mexico using the CompuServe
mnemonic CPS.
WORLDNET Access from any other country via SCITOR's network using
the CompuServe NUI 19730001.
Worldwide Outbound Service Calls destined for any network other than
CompuServe's
are subject to an outbound surcharge identified by Zone
A through Zone D.
Legend: NUA - Network User Address
NUI - Network User ID
Kilocharacters transmitted and received are rounded separately per session up to
the next Kilocharacter. There is a minimum of one Kilocharacter transmitted and
one Kilocharacter received per session.
*Please note that access from all of the above countries will not necessarily be
available as of April 1, 1996.
<PAGE>
Appendix B
Dial Services Worldwide Reference List
EUROPE and MIDDLE EAST
Country/ Service Name (Network) Country/Location Service Name (Network)
Location
Andorra PTT-Connect, Zone C PTT-Connect/ALT, Zone B
Austria CompuServe Kazakhstan Sprintnet
EURO-Connect/ALT Latvia Sprintnet
FT Austria-Connect Liechtenstein PTT-Connect, Zone B
PTT-Connect Radaus-Data, Zone B Luxembourg EURO-Connect/ALT
Belgium CompuServe FT Luxembourg-Connect
EURO-Connect/ALT PTT-ConnectDatanet-1),
Zone B
FT Belgium-Connect Malta EURONET
PTT-Connect (DCS), Zone B Netherlands CompuServe
Bulgaria EURONET EURO-Connect/ALT
Sprintnet FT Netherlands-Connect
PTT-Connect, Zone B PTT-Connect(Datanet-1)
, Zone B
Cyprus PTT-Connect (CYTAPAC), Zone B Norway EURONET
Czech EURONET EURO-Connect
Republic
Denmark CompuServe FT Norway-Connect
EURO-Connect/ALT PTT-Connect (Datapak)
, Zone B
FT Denmark-Connect Oman MCI/BT
PTT-Connect (Datapak), Zone B Poland EURONET
Estonia Sprintnet Portugal EURONET
Finland EURONET EURO-Connect
EURO-Connect FT Portugal-Connect
FT Finland-Connect PTT-Connect (Telepac)
,Zone B
PTT-Connect (Datapak), Zone B Romania FT Romania-Connect
France CompuServe Sprintnet
FT France-Connect Russia EURO-Connect
EURO-Connect/ALT Sprintnet
PTT-Connect (TRANSPAC), Zone B PTT-Connect (IASNET)
, Zone C
Germany CompuServe Slovak Republic PTT-Connect
EURO-Connect/ALT Spain CompuServe
FT Germany-Connect EURO-Connect/ALT
GERMANY-Connect FT Spain-Connect
PTT-Connect (DATEX-P), Zone B PTT-Connect (lberpac)
, Zone B
Greece EURONET Sweden CompuServe
EURO-Connect SWED020-Connect
PTT-Connect (Helpac), Zone B EURO-Connect/ALT
Greenland PTT-Connect, Zone B FT Sweden-Connect
Hungary HUNGARY-Connect PTT-Connect (Datapak)
, Zone B
EURONET Switzerland CompuServe
PTT-Connect (Radaus-Wien),Zone C WITZERLAND-Connect
Iceland EURONET EURO-Connect/ALT
Ireland CompuServe FT Swiss-Connect
IRELAND-Connect PTT-Connect (Telepac)
, Zone B
EURO-Connect/ALT Turkey EURONET
FT Ireland-Connect PTT-Connect, Zone B
PTT-Connect (Eirpac), Zone B Ukraine Sprintnet
<PAGE>
Israel ISRAEL-Connect UK CompuServe
PTT-Connect (Isranet), Zone B UK-Connect
Italy CompuServe EURO-Connect/ALT
ITALY-Connect FT UK-Connect
EURONET PTT-Connect, Zone B
EURO-Connect Uzbekistan Sprintnet
FT Italy-Connect
AFRICA/ ASIA/ PACIFIC RIM
Country/ Service Name (Network) Country/ Service Name (Network)
Location Location
Angola AFRICANET Mozambique PTT-Connect, Zone D
Australia AUSTRALIA-Connect Namibia PTT-Connect
WORLD-Connect New Caledonia PTT-Connect, Zone D
PTT-Connect (Austpac/OTC),Zone ANew Zealand AUSTRALIA-Connect
Bahrain PTT-Connect Batelco), Zone D PTT-Connect (Pacnet)
, Zone A
Cameroon AFRICANET Nigeria AFRICANET
PTT-Connect Papua New PTT-Connect
China PTT-Connect (Chinapac), Zone D Guinea
WorldNet Philippines PACIFICNET
Djibouti PTT-Connect WORLD-Connect
Egypt AFRICANET PTT-Connect
(ETPI, Philcom),
PTT-Connect (Egyptnet), Zone B Zone B
French Antilles Quatar PTT-Connect, Zone B
PTT-Connect (Transpac), Zone B Reunion PTT-Connect, Zone B
French PTT-Connect (Tompac), Zone B Saudi Arabia PTT-Connect, Zone D
Guyana
French PTT-Connect (Tompac), Zone B Senegal PTT-Connect, Zone D
Polynesia Singapore WORLD-Connect
Gabon PTT-Connect (Tompac), Zone D Sprintnet
Hong Kong CompuServe PTT-Connect (Telepac)
, Zone B
WORLD-Connect/ALT South Africa AFRICANET
PTT-Connect (IDAS), Zone B WORLD-Connect
India PTT-Connect Zone B PTT-Connect (Saponet)
, Zone C
Indonesia WORLD-Connect South Korea S.KOREA-Connect
Sprintnet WORLD-Connect/ALT
PTT-Connect (SKDP),Zone B PTT-Connect
Ivory CoastAFRICANET Sri Lanka PACIFICNET
PTT-Connect (Ont), Zone B WORLD-Connect
Japan JAPAN-Connect Taiwan PACIFICNET
PTT-Connect (Venus-P),Zone B TAIWAN-Connect
WORLD-Connect/ALT
Kenya PTT-Connect, Zone D PTT-Connect
Kuwait Sprintnet (PACNET/UDAS), Zone C
PTT-Connect, Zone C Thailand WORLD-Connect
Madagascar PTT-Connect, Zone D PTT-Connect, Zone C
Malaysia PTT-Connect, Zone B Tunisia PTT-Connect
WORLD-Connect UAE PTT-Connect (Emdan)
, Zone B
Mauritius PTT-Connect (Mauridata),Zone B Vanuatu PTT-Connect
Zimbabwe PTT-Connect(Britelint)
, Zone C
<PAGE>
THE AMERICAS
Country/ Service Name (Network) Country/ Service Name(Network)
Location Location
Alaska CompuServe Honduras PTT-Connect(Hondutel)
, Zone B
Alaskanet Jamaica PTT-Connect(Jamintel)
, Zone B
American GUAM-Connect Macau PTT-Connect, Zone B
Samoa
Antigua & PTT-Connect, Zone B Martinique PTT-Connect, Zone B
Barbuda
Argentina PTT-Connect (ARPAC), Zone B Mexico CompuServe
Aruba WORLDNET MEXICO-Connect
Bahamas PTT-Connect (Batelco), Zone D 800-Mexico Connect
Barbados PTT-Connect (Entel), Zone B WORLD-Connect Mexico
Bermuda PTT-Connect (Cable & Wireless), PTT-Connect(Tlelepac)
, Zone B
Zone B Antilles WORLDNET
Bolivia WORLDNET PTT-Connect, Zone D
WORLD-Connect Nicaragua PTT-Connect(Intelpaq)
, Zone B
Brazil WORLD- Connect Panama PTT-Connect(Intelpaq)
, Zone B
PTT-Connect (Interdata), Zone D Peru LATINET
Canada CompuServe Sprintnet
CANADA-Connect PTT-Connect (Perunet)
, Zone C
1-800 Access Canada Saipan WORLDNET
PTT-Connect (Datapac), Zone B GUAM-Connect
Cayman PTT-Connect (Cable & Wireless), Trinidad & PTT-Connect (Texdat/
Datanet),
Islands Tobago
Zone B Zone B
Chile LATINET PTT-Connect, Zone D
WORLD-Connect Turks Island PTT-Connect, Zone D
PTT-Connect (Chilepac), Zone B Uruguay PTT-Connect (URUPAC)
, Zone C
Colombia Sprintnet United States CompuServe
PTT-Connect (Telecom), Zone B Sprintnet
Costa Rica PTT-Connect (Rascapac), Zone B MCI/BT
Curacao PTT-Connect, Zone D RBOC Networks
Dominican WORLDNET Venezuela LATINET
Republic PTT-Connect VENEZUELA-Connect
WORLDNET Virgin Islands PTT-Connect
Guam GUAM-Connect
Guatemala PTT-Connect (Guatel), Zone B
<PAGE>
Appendix C
The use of Internet Office Professional and Internet Office Navigator is subject
to the terms of the Software License Agreement; the use of Internet in a Box is
subject to the terms of the Internet in a Box Software License Agreement.
Software License Agreement
THIS IS A LEGAL AGREEMENT BETWEEN YOU AND COMPUSERVE INCORPORATED
("COMPUSERVE"). CAREFULLY READ ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT
PRIOR TO OPENING THE SOFTWARE PACKAGE. OPENING THE SOFTWARE PACKAGE INDICATES
YOUR ACCEPTANCE OF THESE TERMS AND CONDITIONS. IF YOU DO NOT AGREE TO THESE
TERMS AND CONDITIONS, RETURN THE UNOPENED PACKAGE AND ANY OTHER COMPONENTS OF
THIS PRODUCT TO COMPUSERVE FOR REFUND. NO REFUND WILL BE GIVEN IF THIS PACKAGE
HAS BEEN OPENED OR COMPONENTS ARE MISSING.
1. License. This License Agreement ("Agreement") permits you to use one copy of
the specified version of the product you have purchased ("Software") on any
single computer, provided the Software is in use on only one computer at any
time. If you have multiple Licenses for the Software, then at any time you may
have as many copies of the Software in use as you have Licenses. The Software is
"in use" on a computer when it is loaded into temporary memory (i.e. RAM) or
installed into the permanent memory (e.g., hard disk, CD-ROM, or other storage
device) of that computer, except that a copy installed on a network server for
the sole purpose of distribution to other computers is not "in use". If the
anticipated number of users of the Software will exceed the number of applicable
Licenses, then you must have a reasonable mechanism or process in place to
assure that the number of persons using the Software concurrently does not
exceed the number of Licenses. If the Software is permanently installed on the
hard disk or other storage device of a computer (other than a network server)
and one person uses that computer more than 80% of the time it is in use, then
that person may also use the Software on a portable or home computer.
2. Backup and Transfer. You may make one copy of the Software solely for backup
purposes. You may transfer and license the Software to another party if the
other party agrees to the terms and conditions of this Agreement and completes
and returns to CompuServe a Registration Card available from CompuServe. If you
transfer the Software, you must also transfer or destroy the Documentation and
backup copy.
3. Copyright. The Software and Documentation are owned by CompuServe, and this
product is protected by United States and international copyright laws and
international trade provisions. You may not remove, obscure, or alter any notice
of patent, copyright, trademark, trade secret or other proprietary rights. You
must treat the Software like any other copyrighted material (e.g. a book or
musical recording) except that you may either (a) make one copy of the software
solely for backup or archival purposes, or (b) transfer the Software to a single
hard disk provided you keep the original solely for backup or archival purposes.
You may not copy the written materials accompanying the Software, except by
prior written permission from CompuServe. All other copies of the Software and
Documentation are in violation of this agreement.
This license and your right to use the product terminate automatically if you
violate any part of this Agreement. In the event of termination, you must
immediately destroy all copies of the product or return them to CompuServe.
4. Term. This license is effective until terminated. You may terminate the
Agreement by returning or destroying the Software and Documentation and all
copies. You agree upon termination to return or destroy within 5 days all copies
of the Software and Documentation and within two (2) weeks after any such
termination you must specify in writing to CompuServe, that you have done so
through your best efforts and to the best of your knowledge.
<PAGE>
5. Limited Warranty. (Disclaimer and Limitation of Liability): CompuServe
warrants the media on which the Licensed Programs are provided to be free from
defects in materials and workmanship for 90 days after delivery. Defective media
may be returned for replacement without charge during the 90-day warranty period
unless the media has been damaged by acts or actions of the Licensee or while
under its control.
CompuServe does not warrant any object codes contained in the licensed programs
furnished to it by its vendors. In the event the Licensee wishes further
information about object codes contained in the license programs that are not
created by CompuServe but which are used by CompuServe with permission of a
vendor, please contact CompuServe.
Due to the complex nature of computer software, CompuServe does not warrant that
the Licensed Programs are completely error free, will operate without
interruption, or are compatible with all equipment and software configurations.
The Licensee expressly assumes all risk for use of the Licensed Programs.
Repair, replacement, or refund (at the option of CompuServe) is the exclusive
remedy, if there is a defect.
COMPUSERVE MAKES NO OTHER WARRANTIES EXPRESSED OR IMPLIED, WITH RESPECT TO THE
LICENSED PROGRAMS (INCLUDING ASSOCIATED WRITTEN MATERIALS), THEIR
MERCHANTABILITY, OR THEIR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT WILL
COMPUSERVE BE LIABLE FOR INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT
LIMITATIONS, LOSS OF INCOME, USE, OR INFORMATION, NOR SHALL THE LIABILITY OF
COMPUSERVE EXCEED THE AMOUNT PAID FOR THE LICENSED PROGRAMS. THIS LIMITED
WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS. YOU MAY HAVE OTHERS, WHICH VARY FROM
STATE TO STATE.
6. General. You may not sublicense, assign, or transfer the license, Software,
or Documentation except as expressly provided in this Agreement. This Agreement
constitutes the entire Agreement between you and CompuServe and supersedes any
prior written or oral Agreement concerning the contents of this package. It
shall not be modified except by written agreement dated subsequent to the date
of this Agreement and signed by an authorized CompuServe representative.
CompuServe is not bound by any provision of any purchase order, receipt,
acceptance, confirmation, correspondence, or otherwise, unless CompuServe
specifically agrees to the provision in writing. This Agreement is governed by
the laws of the State of Ohio.
7. U.S. Government Restricted Rights. The Software and Documentation are
provided with RESTRICTED RIGHTS. Use, duplication, or disclosure by the
Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of
the Rights in Technical Data and Computer Software clause at DFARS 252.227-7013
or subparagraphs (c)(1) and (2) of the Commercial Computer Software-Restricted
Rights at 48 CFR 52.227-19, as applicable. Contractor/manufacturer is
CompuServe, 5000 Arlington Centre Blvd., Columbus, Ohio 43220.
Internet In A Box -- Software License Agreement
THIS IS A LEGAL AGREEMENT BETWEEN YOU AND COMPUSERVE, INCORPORATED
("COMPUSERVE"). CAREFULLY READ ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT
PRIOR TO OPENING THE SOFTWARE PACKAGE. OPENING THE SOFTWARE PACKAGE INDICATES
YOUR ACCEPTANCE OF THESE TERMS AND CONDITIONS. IF YOU DO NOT AGREE TO THESE
TERMS AND CONDITIONS, RETURN THE UNOPENED PACKAGE AND ANY OTHER COMPONENTS OF
THIS PRODUCT TO COMPUSERVE FOR REFUND. NO REFUND WILL BE GIVEN IF THIS PACKAGE
HAS BEEN OPENED OR COMPONENTS ARE MISSING.
<PAGE>
1. License. This License Agreement grants the purchaser of this package one
License to use one copy of the specified version of the enclosed CompuServe
product ("Software") on any single computer. You may transfer the Software from
one computer to another so long as it is not used on more than one computer at a
time. You may not transmit the Software from one computer to another in a
network or to serve multiple users. Solely for your own backup purposes, you may
make a single copy of the Software in the same form as provided to you on the
enclosed diskettes. You may not copy any of the enclosed books or printed
material (the "Documentation") for any reason.
2. Transfer. You may transfer the License to another party if the other party
agrees to the terms and conditions of this Agreement and completes and returns
to CompuServe a Registration Card available from CompuServe. If you transfer the
License, you must also transfer or destroy all copies of the Software in any
form, including the original and backup copies. You have no right to sublicense
or loan the Software.
3. Copyright. The Software and the Installation & Configuration Guide are owned
by CompuServe. O'Reilly & Associates, Inc. holds all right, title and interest
in and to The Whole Internet User's Guide and the Getting Started book. The
Software and Documentation are protected by United States and international
copyright laws and international treaty provisions. You may not remove, obscure,
or alter any notice of patent, copyright, trademarks, trade secret or other
proprietary rights.
4. Term. This License is effective until terminated. This License and your right
to use the Software terminate automatically if you violate any part of this
Agreement. You agree upon termination to return or destroy within 5 days all
copies of the Software and to affirm in writing to CompuServe that you have done
so.
5. Limited Warranty. (Disclaimer and Limitation of Liability): CompuServe
warrants the enclosed diskettes on which the Software is provided to be free
from defects in materials and workmanship at the time of delivery to you.
CompuServe has made reasonable checks of the Software to confirm that it will
perform in normal use on compatible equipment substantially as described in
CompuServe specifications for the Software, as published most recently prior to
the delivery of this package to you. However, due to the inherently complex
nature of computer software, CompuServe does not warrant that the Software or
the Documentation is completely error free, will operate without interruption,
is compatible with all equipment and software configurations, or will otherwise
meet your needs. ACCORDINGLY, THE SOFTWARE AND DOCUMENTATION ARE PROVIDED AS-IS,
AND YOU ASSUME ALL RISKS ASSOCIATED WITH THEIR USE.
AS YOUR SOLE REMEDY FOR ANY BREACH OF WARRANTY, you may return to CompuServe the
original copies of the Software and Documentation, along with proof of purchase
and any backup copies, for replacement or (at CompuServe's choice) for a refund
of the amount you paid for this package, provided the return is completed within
90 days following the delivery of this package to you.
COMPUSERVE MAKES NO OTHER WARRANTIES EXPRESSED OR IMPLIED, WITH RESPECT TO THE
SOFTWARE OR THE DOCUMENTATION, THEIR MERCHANTABILITY, OR THEIR FITNESS FOR ANY
PARTICULAR PURPOSE. ALL WARRANTIES, EXPRESS OR IMPLIED, WILL TERMINATE UPON THE
EXPIRATION OF 90 DAYS FOLLOWING DELIVERY OF THIS PACKAGE TO YOU. Some states do
not allow limitations on how long an implied warranty lasts, so the above
limitation may not apply to you.
IN NO EVENT WILL COMPUSERVE BE LIABLE FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING, WITHOUT LIMITATIONS, LOSS OF INCOME, USE, OR INFORMATION,
NOR SHALL THE LIABILITY OF COMPUSERVE EXCEED THE AMOUNT PAID FOR THIS PACKAGE.
Some states do not allow the exclusion or limitation of incidental or
consequential damages, so the above limitation or exclusion may not apply to
you. This warranty gives you specific legal rights, and you may also have others
which vary from state to state.
<PAGE>
6. General. This Agreement constitutes the entire Agreement between you and
CompuServe and supersedes any prior written or oral agreement concerning the
contents of this package. CompuServe is not bound by any actions or statements
of its independent distributors, nor by any provision of any purchase order,
receipt, acceptance, confirmation, correspondence, or otherwise, unless
CompuServe specifically agrees to the provision in writing.
7. U.S. Government Restricted Rights. The Software and Documentation are
provided with RESTRICTED RIGHTS. Use, duplication, or disclosure by the
Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of
the Rights in Technical Data and Computer Software clause at DFARS 225.227-7013
or subparagraphs (c)(1) and (2) of the Commercial Computer Software-Restricted
Rights at 48 CFR 52.227-19 as applicable.
8. CompuServe Address. Contractor/manufacturer is CompuServe, 5000 Arlington
Centre Blvd., Columbus, Ohio 43220.
<PAGE>
Appendix D
Note: In the following Gauntlet Firewall Software License Agreement, the term
"Agreement" applies solely to this Gauntlet Firewall Software License Agreement.
Trusted Information Systems, Inc.
Gauntlet Firewall Software Software License Agreement
1. NOTICE. WE ARE WILLING TO LICENSE THE ENCLOSED SOFTWARE TO YOU ONLY
ON THE CONDITION THAT YOU ACCEPT ALL OF THE TERMS CONTAINED IN THIS LICENSE
AGREEMENT. PLEASE READ THIS LICENSE AGREEMENT CAREFULLY. BY RUNNING THIS
SOFTWARE YOU AGREE TO BE BOUND BY THE TERMS OF THIS AGREEMENT. IF YOU DO
NOT AGREE TO THESE TERMS WE ARE UNWILLING TO LICENSE THE SOFTWARE TO YOU,
AND YOU SHOULD NOT RUN THE SOFTWARE. IN SUCH CASE, PROMPTLY RETURN THE
SOFTWARE (AND HARDWARE, IF PURCHASED TOGETHER) AND ALL OTHER MATERIAL IN
THIS PACKAGE ALONG WITH PROOF OF PAYMENT, TO THE AUTHORIZED DEALER FROM
WHOM YOU OBTAINED IT FOR A FULL REFUND OF THE PRICE YOU PAID.
2. Ownership and License. This is a license agreement and NOT an
agreement for sale. We continue to own the copy of the software contained
in this package and all other copies that you are authorized by this
Agreement to make (the "Software"). Your rights to use the Software are
specified in this Agreement, and we retain all rights not expressly granted
to you in this Agreement. Nothing in this Agreement constitutes a waiver of
our rights under U.S. Copyright law or any other federal or state law. In
this license agreement , "the Software" refers to both the executable
modules and the source code.
3. Permitted Uses. You are granted the following rights to the Software:
(a) Right to Install and Use. You may install and use the
Software on any single Firewall at any single location. If you
desire to have a "hot standby computer" you may install the
Software on another, unconnected, system. If you wish to use the
Software on more than one Firewall gateway, you must either erase
the Software from the first system before you install it onto a
second or else license an additional copy of the Software for
each additional computer on which you want to use it.
(b) Right to Copy. You may copy the Software for backup,
archival, or modification purposes, and you may make an unlimited
number of copies of the documentation, provided that TIS's
copyright notice appears and provided that the documentation is
copied in its entirety;
(c) Right to Compile or Modify. You may build the Software
from source code and reinstall it on the single Firewall for
which it is licensed. You may modify the Software to the extent
necessary for your own use on a single Firewall; however, TIS
must be notified of and agree to any modifications of the
Software, or your maintenance agreement, if any, is voided; any
modified portion of the Software will continue to be subject to
the terms of this Agreement;
(d) Right to Transfer. You may not rent, lend, lease this
Software, or transfer this license to another party.
<PAGE>
4. Prohibited Uses. You may not, without written permission from us:
(a) Use, copy, modify, merge, or transfer copies of the
Software, or documentation except as provided in this Agreement;
(b) Use any backup or archival copies of the Software or
allow someone else to use such copies) for any purpose other than
to replace the original copy in the event it is destroyed or
becomes defective; or
(c) Sublicense, lease, or rent the Software.
5. Limited Warranty. We make the following limited warranties, for a
period of one (1) month from the date you acquired the Software from us or
our authorized dealer:
(a) Media. The disks and documentation in this package will
be free from defects in materials and workmanship under normal
use. If the disks or documentation fail to conform to this
warranty, you may, as your sole and exclusive remedy, obtain a
replacement free of charge if you return the defective disk or
documentation to us with a dated proof of purchase.
(b) Software. The Software in this package will materially
conform to the documentation that accompanies it. If the Software
fails to operate in accordance with this warranty, you may, as
your sole and exclusive remedy, return all of the Software and
the documentation to the authorized dealer from whom you acquired
it, along with a dated proof of purchase, specifying the problem,
and we will provide you with a new version of the Software or a
full refund at our election.
(c) WARRANTY DISCLAIMER. WE DO NOT WARRANT THAT THIS
SOFTWARE WILL MEET YOUR REQUIREMENTS OR THAT ITS OPERATION WILL
BE UNINTERRUPTED OR ERROR-FREE. WE EXCLUDE AND EXPRESSLY DISCLAIM
ALL EXPRESS AND IMPLIED WARRANTIES NOT STATED HEREIN, INCLUDING
THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.
Some states do not allow the exclusion of implied warranties, so the above
exclusion may not apply to you. This limited warranty gives you specific
legal rights, and you may also have other legal rights, which vary from
state to state.
6. LIMITATION OF LIABILITY. OUR LIABILITY TO YOU FOR ANY LOSSES SHALL
BE LIMITED TO DIRECT DAMAGES, AND SHALL NOT EXCEED THE AMOUNT YOU
ORIGINALLY PAID FOR THE SOFTWARE. IN NO EVENT WILL WE BE LIABLE TO YOU FOR
ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS
OF PROFITS) EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.
Some jurisdictions do not allow these limitations or exclusions,so they may
not apply to you.
<PAGE>
7. United States Government Restricted Rights. The enclosed Software
and documentation are provided with Restricted Rights. Use, duplication or
disclosure by the U.S. Government or any agency or instrumentality thereof
is subject to restrictions as set forth in subdivision (c)(1)(ii) of the
Rights in Technical Data and Computer Software clause at 48 C. F.R.
252.227-7013, or in subdivision (c)(1) and (2) of the Commercial Computer
Software -- Restricted Rights Clause at 48 C.F.R. 52.227-19, as applicable.
Contractor Manufacturer is Trusted Information Systems, Incorporated, 3060
Washington Road, Glenwood, MD 21738.
8. Export Controls. You agree that you will not directly or indirectly
transfer the Software or documentation to any country to which such
transfer would be prohibited by the U.S. Export Administration Act and the
regulations issued thereunder.
9. Termination. This license and your right to use this Software
automatically terminate if you fail to comply with any provisions of this
Agreement, destroy the copies of the Software in your possession, or
voluntarily return the Software to us. Upon termination you will destroy
all copies of the Software and documentation. Otherwise, the restrictions
on your rights to use the Software will expire upon expiration of the
copyright to the Software.
10. Miscellaneous Provisions. This Agreement will be governed by and
construed in accordance with the substantive laws of Maryland [and not by
the 1980 United Nations Convention on Contracts for the International Sale
of Goods, as amended]. This is the entire agreement between us relating to
the contents of this package, and supersedes any prior purchase order,
communications, advertising or representations concerning the contents of
this package. No change or modification of this Agreement will be valid
unless it is in writing, and is signed by us.
Canadian Transactions: If you acquired this Software in Canada,you agree to
the following:
The parties hereto have expressly required thatthe present Agreementand its
Exhibits be drawn up in the English language. / Les parties aux presentes
ont expressement exige que la presentes convention et ses Annexes soient
redigees en langue anglaise.
If you have any questions about this Agreement, write to us at (netsec.tis.com);
Trusted Information Systems, Inc., 3060 Washington Road, Glenwood, MD 21738,
Attention: Gauntlet Administration; or call us at 301-854-6889.
<PAGE>
Appendix E
TERMS AND CONDITIONS QUICK REFERENCE
- ------------ ---------- ----------- ------------------- ------------- ---------
PRODUCT TERM PLAN DISCOUNT PRODUCT TERM PLAN DISCOUNT
SCHEDULE SCHEDULE
- ------------ ---------- ----------- ------------------- ------------- --------
- ------------ ---------- ----------- ------------------- ------------- --------
USAGE-Dial Base None FRAME-Net SDLC FRAD Base B
- ------------ ---------- ----- ------------------- ------------- --------
- ------------ ---------- ----- ------------------- ------------- --------
FIXED-Dial Extended A FRAME-Net Encrypt Extended B
- ------------ ---------- ----- ------------------ ------------- --------
- ------------ ---------- ----- ------------------- ------------- --------
PRIVATE-Dial Extended A Internet Dial Extended A
- ------------ ---------- ----- ------------------- ------------- -------
- ------------ ---------- ----- ------------------- ------------- -------
Open Port Extended B IP Client Software Monthly Fee Extended B
Arrangement for Internet Office Professional
- ----------- ------------ ---- --------------------------- ----------- -------
- ----------- ------------ ---- --------------------------- ----------- -------
OP Overflow Extended B IP Client Software one-time Extended B
purchase price per copy
- ----------- ------------ ---- ---------------------------- ------------- -----
- ----------- ------------ ---- ---------------------------- ------------- -----
800 Access Base A Internet Link Extended B
USA Monthly Fee per PVC
- ----------- ------------ ----- ---------------------------- ------------ -------
- ----------- ------------ ----- ---------------------------- ------------ -------
PRIVATE-Async Extended A Internet Link Plus Monthly Fee Extended B
per PVC
- ------------ ------------ ---- ----------------------------- ------------ ------
- ------------ ------------ ---- ----------------------------- ------------ ------
DNL Monthly Base B IP Link Extended
Charge FIXED-Dial A
DNL B
- ----------- ------------ ----- ------------------------------ ------------- ----
- ----------- ------------ ----- ------------------------------ ------------- ----
MN-PAD Base B IP Link Plus Monthly Fee per PVC Extended B
- ----------- ------------ ----- ------------------------------ ------------- ----
- ----------- ------------ ----- ------------------------------ ------------- ----
TR-PAD Base B CompuServe Firewall Extended B
- ----------- ------------ ----- ------------------------------ ------------- ----
- ----------- ------------ ----- ------------------------------ ------------- ----
ANZ-PAD Extended B Enterprise Connect for Lotus Extended A
Notes
Corporate Business Account Option
- ----------- ------------ ----- ------------------------------ ------------- ----
- ----------- ------------ ----- ------------------------------ ------------- ----
EURO-PAD Extended B Enterprise Connect for Lotus Extended B
Notes
End-User Billing Option
- ----------- ------------ ----- ---------------------------------- --------- ----
- ----------- ------------ ----- ---------------------------------- --------- ----
MN-SWITCH Base B Mosaic Direct Extended None
- ----------- ------------ ----- ---------------------------------- --------- ----
- ----------- ------------ ----- ---------------------------------- --------- ----
EURO-SWITCH Extended B CompuMode Protocol Interface Base B
- ----------- ------------ ----- ---------------------------------- --------- ----
- ----------- ------------ ----- ---------------------------------- --------- ----
MN-MN Base None Fast & Secure Option Base None
- ----------- ------------ ----- ---------------------------------- --------- ----
- ----------- ------------ ----- ---------------------------------- --------- ----
WORLD-FIX Extended None RUMBA Gateway System Monthly Extended B
Charge
- ----------- ------------ ----- ---------------------------------- -------------
- ----------- ------------ ----- ---------------------------------- -------------
<PAGE>
CompuServe Base B RUMBA End-User Software Monthly Extended B
RLA Fee
- ---------- ------------- ------ ---------------------------------- -------------
- ---------- ------------- ------ ---------------------------------- -------------
RLA/RLN Base B RUMBA Add-On Features Monthly Fee Extended B
- ---------- ------------- ------ ---------------------------------- -------------
- ---------- ------------- ------ ---------------------------------- -------------
FNL Monthly Extended None RUMBA Maintenance and Upgrade Extended B
Circuit Charge Option
- ----------- ------------ ------ ---------------------------------- -------------
- ----------- ------------ ------ ---------------------------------- -------------
FNL Monthly Extended B DNL Dial Backup Base B
Port Charge
- ----------- ----------- -------- --------------------------------- -------------
- ----------- ----------- -------- --------------------------------- -------------
Bandwidth Extended B Secondary Site DNL Backup Base B
MonthlyCharge Services
- ----------- ----------- -------- --------------------------------- -------------
- ----------- ----------- -------- --------------------------------- -------------
Bandwidth Extended B FNL Backup 56 Extended B
Monthly Surcharge
- ------------ ---------- -------- --------------------------------- -------------
- ------------ ---------- -------- --------------------------------- -------------
FRAME-Net Base B End-User Billing Services Extended A
Router
- ----------- ----------- --------- -------------------------------- -------------
- ----------- ----------- --------- -------------------------------- -------------
FRAME-Net Base B Monthly Account Charge Base B
FRAD
- ----------- ----------- --------- -------------------------------- -------------
- ----------- ----------- --------- -------------------------------- -------------
Transaction Extended None
Services
- -------------------- ------------ ---------------- ------------- ---------------
Note: Products or Services listed as Base can also be ordered and discounted for
Extended Term Plan Customers.
CompuServe
<PAGE>
-----------------------------------------------------------
Agreement Terms
and Conditions
================================================================================
CompuServe Incorporated ("CompuServe") will furnish on a contention basis and
Customer will purchase Services under these terms and conditions:
1. Term of Agreement
1.1 The term is from (i) the first day of the month after Customer
has been provided network, interfaces and software to enable
access to services, or (ii) completion of any Implementation
Program. If Customer elects the Base Term Plan, this Agreement
terminates upon at least one (1) month written notice. If
Customer elects an Extended Term Plan, this Agreement
automatically renews on completion of the initial and subsequent
terms at the then current rates and conditions for consecutive
one (1) year terms unless terminated upon written notice to the
other party at least one (1) month prior to the end of a term.
For the month in which termination becomes effective, Customer
will pay the greater of the accrued charges or the Monthly
Minimum.
1.2 Customer may elect a renewal term equal to or greater than
Customer's initial Extended Term Plan, with a Monthly Minimum at
least equal to the Monthly Minimum in effect at the end of the
initial Extended Term Plan, at the same rates and conditions as
Customer's initial Extended Term Plan, upon written request to
CompuServe at least one month prior to the end of a term and
written approval of such renewal term, rates, and conditions by
an authorized representative of CompuServe.
2. Rate
2.1 If Customer elects an Extended Term Plan, during the initial term
CompuServe will not increase rates for any service unless (i)
there is a FCC or other regulatory agency reclassification of
CompuServe's status as a data network service provider, or (ii) a
regulated supplier of CompuServe imposes a rate increase; in such
event, CompuServe reserves the right to pass through to Customer
such an increase and any associated increase in CompuServe's cost
to provide a service upon at least two (2) months prior written
notice. Within one (1) month of such notice, Customer may
terminate this Agreement by written notice. This termination will
take effect on the date of the proposed rate modification. If
Customer elects a Base Term Plan, CompuServe may increase a rate
for any service upon one (1) month prior written notice.
2.2 Customer shall pay the sum of (i) the greater of the Monthly
Minimum or charges for Eligible Services (net of discounts); (ii)
charges for other than Eligible Services; and (iii) any federal,
state, or local sales, use and other taxes however designated,
imposed on Customer's usage (exclusive of any taxes based upon
CompuServe's income).
3. Payment Charges for services and supplies provided under this Agreement
will normally be invoiced following the end of each month. Terms
of payment on all charges are net, thirty (30) days at
CompuServe's home office in U.S. dollars. If payment is not
received within five (5) business days following written notice,
CompuServe may suspend its performance under, or terminate, this
Agreement.
4. Customer
Responsibilities
4.1 Customer is responsible for equipment (such as computers and
modems) and telephone service required for access to CompuServe's
services.
4.2 Customer is responsible for the accuracy and adequacy of computer
equipment, programs and data it furnishes or transmits, for use
of the output it obtains, for maintaining procedures external to
the network system for reconstruction of lost data or programs
and for satisfying its requirements for accuracy of system
output. Reasonable precautions are taken to prevent loss,
alteration, or improper access to Customer's computer equipment,
programs and data, but CompuServe does not guarantee accuracy or
security.
4.3 Some services require computer equipment (such as modems and
switches) or software to be installed on Customer's premises.
Customer will provide facilities and security for proper
operation and maintenance of, and will not alter, move, connect,
or disconnect this equipment and software without first calling
and obtaining oral approval from CompuServe's Network Control
Center. CompuServe shall not be responsible for any damages or
liability which could have been avoided if Customer fails to
provide prompt written notice following such oral notice to
CompuServe.
<PAGE>
4.4 CompuServe agrees to terminate links and install equipment at
non-customer owned or operated third party data centers. Customer
agrees:
4.4.2To advise CompuServe in writing of the name and locatio
of the third party data center when Customer orders a
link or equipment to be installed into such a data
center.
4.4.2To arrange access to such a data center for CompuServe
service personnel on an as needed basis.
4.4.3To pay any charges associated with access to such a
data center by CompuServe service personnel.
4.4.4To hold CompuServe harmless if restoration of
CompuServe services is delayed due to delays CompuServe
service personnel encounter accessing such a data
center.
5. Performance and
Improvements
CompuServe may make or permit changes in the services and
supplies provided under this Agreement. If CompuServe makes a
change which has a material adverse effect on Customer's
operations, Customer may cancel this Agreement after written
notice which states with particularity the reason for
termination, provided CompuServe does not cure or remedy this
condition within one (1) month. All discoveries, improvements,
adaptations, or developments relating to the services and
supplies provided by CompuServe under this Agreement are and
shall remain the exclusive property of CompuServe. If Customer
can demonstrate that there has been a material degradation in the
services provided by CompuServe and that this degradation has a
material and adverse effect on Customer's operations, Customer
may, as its sole remedy, cancel this Agreement, and not be
subject to future Monthly Minimums, three (3) months after
written notice is provided to CompuServe which states with
particularity the reason for termination, provided CompuServe
does not cure this condition within this three (3) month period.
6. Warranties,
Disclaimers,
Limitations on
Liability
6.1 CompuServe will use reasonable care in providing services and
supplies under this Agreement. Except for maintenance and periods
of shut-down caused by equipment, system or power failure, or
other causes beyond the reasonable control of CompuServe, the
systems will be operational twenty-four (24) hours a day.
6.2 Other than those warranties which are implied by or incapable of
exclusion, restriction or modification under applicable law,
there are no warranties, express or implied, including, without
limitation, those of merchantability and fitness for a particular
purpose or intended use. In no event shall a party be liable for
lost profits or special or consequential damages or be liable for
any loss, injury or damage resulting in whole or in part from
acts of God or public authorities, fire, theft, or any other
causes beyond the reasonable control of that party, except to the
extent such damages are incapable of limitation under applicable
law.
6.3 Upon the discovery of facts which reasonably indicate CompuServe
has failed to perform its obligations under this Agreement, been
negligent, or breached a legal duty, Customer shall (i) promptly
notify CompuServe of such facts by telephone, and (ii) further
notify CompuServe in writing within one (1) month of such
discovery. The unreasonable failure to give the foregoing notices
shall constitute an irrevocable waiver of all claims Customer has
against CompuServe with respect to such incident and be an
absolute bar to the institution of any actions based on such
claims.
6.4 If notification is given to CompuServe as required by paragraph
6.3, CompuServe will compensate Customer in an amount up to one
(1) month's charges applicable to the service(s) directly
involved for each month there is a failure of performance,
negligence, or breach. The remedy in this paragraph is Customer's
sole and exclusive remedy and recovery.
<PAGE>
7. Third Parties
7.1 This Agreement is not assignable by either party without the
other party's prior written consent which will not be
unreasonably withheld; provided, a change in control or transfer
of substantially all corporate or division assets shall not be
considered an assignment under this provision. Customer shall not
resell or allow third parties to use the services provided under
this Agreement unless Customer or Customer's clients, suppliers,
distributors, subsidiaries, or affiliates have sufficient rights
to the data, information or services for such use apart from this
Agreement, which rights Customer hereby warrants.
7.2 Except to the extent the claims result from (a) the indemnified
party's unauthorized or improper use of any confidential or
proprietary information or (b) the indemnified party's negligence
or breach of a legal or contractual duty: (i) CompuServe will
indemnify and hold harmless Customer and its affiliates from all
claims made by CompuServe's associates, suppliers and licensors,
and (ii) Customer will indemnify and hold harmless CompuServe
from all claims made by Customer's employees, subsidiaries,
affiliates, clients or customers or their employees, clients or
customers. "Claims" means all claims, causes of action,
judgments, damages, costs or expenses, including without
limitation, reasonable attorneys' fees and court costs, related
to this Agreement or the services provided under it.
8. Confidential
Information
8.1. "Confidential Information" is any information relating to the
business of the disclosing party: (i) of which the receiving
party becomes aware because of its performance of this Agreement;
(ii) which is not generally known by the disclosing party's
competitors; and (iii) which is treated as confidential by the
disclosing party. Neither party may disclose or use any of the
other party's Confidential Information, except to the extent
necessary to perform or to exercise rights under this Agreement,
or with the consent of the other party, which consent shall not
be unreasonably withheld. Confidential Information remains the
sole property of the original owner and the parties shall
exercise reasonable care to maintain its confidentiality. Each
party shall use reasonable care to prevent its employees and
agents from violating this restriction.
8.2 The following are examples of Confidential Information: (i)
information in any form, such as product developments,
specifications, protocols, formulas, methods, techniques,
concepts, plans, ideas, programs and documentation and business,
marketing and financial information; (ii) the terms of this
Agreement and all proposals and discussions relating to it,
whether oral or reduced to writing; (iii) business information
that is not generally disclosed to the public; (iv) information
which has been specifically designated as being confidential or
secret; (v) information that is deemed to be a trade secret, or
have similar status; and (vi) copies, in any medium, of any of
the above.
8.3. Confidential Information does not include information that: (i)
is or becomes generally available to the public other than by
unauthorized disclosure by the receiving party; (ii) was known to
the receiving party at the time of disclosure from a source other
than the disclosing party and this knowledge is shown in the
receiving party's written records; (iii) is or becomes known to
the receiving party, and the receiving party can show that it
knows of no restriction on disclosure binding on the source; or
(iv) is independently developed by the receiving party without
using the disclosing party's Confidential Material. If a party is
compelled to disclose Confidential Information under the
authority of a court or governmental agency, the compelled party
shall promptly notify the other party. The other party shall have
the opportunity to object to the compelled disclosure. To the
extent that the other party secures a legally enforceable
protective or equivalent order and delivers the order to the
compelled party, the compelled party shall comply with the order.
<PAGE>
9. General
9.1 Notwithstanding any acknowledgment, any provision or condition in
any Customer purchase order, voucher or other memorandum, or
CompuServe invoice, which is in any way inconsistent with, or
adds to, the provisions hereof is null and void.
9.2 No modifications of this Agreement or waiver of any of its terms
will be effective unless set forth in a written document signed
by authorized representatives of Customer and CompuServe.
9.3 The services provided under this Agreement are those currently
available from CompuServe.
9.4 If any term of this Agreement is held to be invalid, the
remainder of the Agreement will remain in force. In such event,
the parties shall use their good faith efforts to replace the
invalid provision with a valid provision which tries to reach
results comparable to those intended by the invalid provision.
9.5 This Agreement shall be considered performed in Ohio and all
questions regarding the validity, intention or meaning of this
Agreement or any modifications of it will be construed and
resolved under the laws and in the courts of Ohio.
9.6 If a dispute arises which is not resolved by the personnel
directly involved, the parties shall each designate an executive
officer, who has no direct operations responsibility for the
subject matter of the dispute, and who is authorized to
investigate, negotiate, and settle the dispute. If the
disinterested officers are unable to settle the dispute within
one (1) month (or an extended period if they so agree), the
matter shall proceed to mediation with a mediator agreed upon by
the parties from a list of mediators provided by the Center for
Public Resources. The parties agree to participate in the
mediation in good faith, to endeavor to complete it within two
(2) months, and share equally the mediator's fees and expenses.
Either party may file suit or seek temporary injunctive relief in
court if in its judgment such action is necessary to avoid
expiration of an applicable statute of limitations, or necessary
to preserve the status quo or to prevent irreparable damage. The
parties agree that such court action will otherwise be stayed or
postponed until these Dispute Resolution Procedures have been
exhausted. Paragraphs 6 and 7 of this Agreement Terms and
Conditions are not waived or modified by these Dispute Resolution
Procedures.
9.7 This term service Agreement has been negotiated by the parties in
order to meet the specialized needs and requirements of each
party. CompuServe does not intend to act in the capacity of a
common carrier in offering the enhanced services provided under
this negotiated Agreement.
9.8 The following paragraphs will survive the termination of this
Agreement, regardless of the reason for termination: 3, 4, 5, 6,
7, 8, and 9.
9.9 Each party shall conform to all applicable laws, government rules
and regulations related to its performance of this Agreement.
9.10 This Agreement, which includes the Agreement Terms & Conditions,
Network Services Rate Schedule, Network Services Agreement
Customer Elections, and any Attachment or Amendment attached to
this Agreement, is the entire and only agreement between the
parties and supersedes all prior and contemporaneous oral or
written proposals, negotiations, conversations and other
communications between the parties upon which neither party is
justified in relying.
CS- (4/96)
Printed in USA
PROMISSORY NOTE
FOR VALUE RECEIVED, the undersigned DONALD F. McHALE and Janie D.
Cramer-McHALE hereby promises to pay to the order of DERMA SCIENCES, INC. the
sum of TWENTY EIGHT THOUSAND DOLLARS ($28,000.00), together with interest at the
annual percentage rate of 9.00% until paid by their IRS TAX REFUND (see
attachment one)(which has been validated by Ernst & Young LLP that it is being
processed as stated) or ON DEMAND.
/s/ Donald F. McHale
----------------
Donald F. McHale
/s/ Janie D. Cramer-McHale
----------------------
Janie D. Cramer-McHale
Dated: May 12th, 1995
GUARANTY
FOR VALUE RECEIVED, the undersigned Mary G. Clark hereby guarantees full
payment of the within Promissory Note in accordance with its terms.
/s/ Mary G. Clark
-------------
Mary G. Clark
Dated: May 12th, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Balance Sheet at June 30, 1996 (unaudited) and the Condensed Statement
of Income for the six months ended June 30, 1996 (unaudited) and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000892160
<NAME> Derma Sciences, Inc.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Jun-30-1996
<CASH> 36,206
<SECURITIES> 0
<RECEIVABLES> 1,333,001
<ALLOWANCES> 0
<INVENTORY> 993,991
<CURRENT-ASSETS> 4,979,674
<PP&E> 202,268
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,043,463
<CURRENT-LIABILITIES> 1,619,483
<BONDS> 0
0
0
<COMMON> 40,542
<OTHER-SE> 4,201,983
<TOTAL-LIABILITY-AND-EQUITY> 6,043,463
<SALES> 2,496,398
<TOTAL-REVENUES> 2,496,398
<CGS> 485,217
<TOTAL-COSTS> 485,217
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,547
<INCOME-PRETAX> (209,609)
<INCOME-TAX> (55,217)
<INCOME-CONTINUING> (154,392)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (154,392)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> 0
</TABLE>
