General

Termination Fee - No more than $30 per month remaining on service agreement.

Regulatory Charge - $.39 per line - A charge that is assessed by Appalachian Wireless associated with payment of government imposed fees and to recover the costs of compliance with government imposed regulatory requirements. It may include costs incurred in prior years that are not yet fully recovered. It's not a tax or a charge which is required by the government. This charge is subject to change from time to time as the cost of compliance changes.

Interconnect Charge - $1.85 per line - A charge that is assessed by Appalachian Wireless associated with, but not limited to, charges Appalachian Wireless or its agents pay to interconnect with other carriers to deliver calls from Appalachian Wireless customers to their customers. It is not a tax or a charge which is required by the government. This charge is subject to change from time to time.

Federal Based

Federal USF Surcharge - 2.34% - is created by the federal government. The FCC, as directed by Congress developed the Federal Universal Service Fund (USF) which provides funding for low income services, schools and libraries, and high cost rural service. All telecommunications providers are required to pay into the Federal USF and their contributions may be recovered from customers. This surcharge is subject to change based on the quarterly percentage of the interstate and international revenue (contribution factor) based on the ratio of total projected quarterly costs of the universal service support mechanism to contributors' total projected collected end-user interstate and international revenues, net of projected contributions.

Kentucky Based Taxes/Fees/Surcharges

Kentucky Sales Tax - 6% - Kentucky Department of Revenue has imposed a sales tax on the gross receipts derived from both retail sales of tangible personal property and sales of certain services to the final customer in Kentucky. The Kentucky Sales and Use tax is imposed at the rate of 6 percent of gross receipts or purchase price.

Kentucky CMRS Service Charge (E911) - $.70 per line - The Commercial Mobile Radio Service Emergency Telecommunications Board (CMRS Board) is charged with administrating the CMRS fund for the purpose of implementing wireless emergency Enhanced 911 service throughout Kentucky in accordance with State and Federal Legislation and Regulations.

Kentucky GRT Surcharge - 1.30% - The Kentucky Gross Receipts Surcharge is passed onto customers by their Telecommunications Carriers based on the amount of Gross Receipts taxes that those carriers are required to pay to the State of Kentucky.

Kentucky Lifeline Surcharge - $.09 per line - The Lifeline program assists eligible low-income consumers on their monthly local telephone bill.

Kentucky TRS/TAP Surcharge - $.03 per line - Pursuant to the Ky Public Service Commission requirement, the $0.01 per line charge for the Ky Telecommunications Relay Service (TRS) fee and the $0.02 per line charge for the Ky Telecommunications Access Program (TAP) fee is a combined charge of $0.03. This fee supports the telecommunications needs of Ky’s speech-impaired and hearing-impaired citizens. This fee pays for the Relay Operator.

Local County Gross Receipts Tax (School Tax) - 3% The utility gross receipts license tax for schools is assessed on gross receipts derived from the furnishing of utility services within a school district. The service provider collects the tax based on the rate established by the local authority. The rate cannot exceed 3 percent. Not applicable to all counties.

Taxes/Surcharges in Virginia/West Virginia regions are as follows (descriptions follow much the same as Kentucky only are imposed in the respected state):

Virginia

Virginia Sales Tax - 4.3%, Virginia Communications Sales Tax - Wireless - 5%, Wireless E-911 Surcharge - $.75 per line

Virginia Regulatory Revenue Tax - .16%, County Sales Tax - 1%

West Virginia

Wireless E911 Fee - $3.34 per line, Local Public Utility tax - 2%