ANNEX 3 FEES AND CHARGES [Updated December 2, 2016] This Annex sets forth a description and/or terms and conditions of certain fees and charges related to the Services. This Annex is part of the 8x8 Business Terms and Conditions. 1. OVERAGE CHARGES. 8x8 reserves the right to charge reasonable overage fees when Customer exceeds the usage limits on Services that have such limits (including, for example, recording services on Virtual Meeting licenses and Virtual Office Pro extensions). 2. TOLL AND OTHER USAGE CHARGES. (a) “Usage charges” refer to toll charges and other charges that we bill based on Customer’s usage of our Services, as a separate charge from our base monthly Service Fees. Every outbound toll call and inbound toll free call that originates or terminates on the Public Switched Telephone Network (“PSTN“) or a non-8x8 VoIP network (including calls to or from a Virtual Contact Center (“VCC“) tenant, and calls to or from a VCC agent) will be subject to charges at the rates that we publish on our website, unless Customer has subscribed to one our “unlimited” Service Plans and the call is free of charge under the terms of that Service Plan. We publish all of our toll calling rates on our website and we update our international toll calling rates monthly on the first day of each month. (b) Unless the Customer Agreement provides otherwise, and subject to applicable Laws, the following rules apply to all toll charges: The duration of each call is to be calculated in one-minute increments and rounded up to the nearest one-minute increment for any fraction of minutes used. If the computed charge for a call includes a fraction of a single unit of the smallest denomination of currency, the fraction is rounded up to the nearest whole cent. When Customer attempts to make an outbound call, charges may apply regardless of whether the party on the other line answers the call. Calls made by Customer to mobile, rather than landline, or premium rate telephone number, may result in higher toll charges. Charges to Customer for inbound toll free numbers are subject to the geographic restrictions and location of the person calling into the toll-free number. All call charges payable under the Customer Agreement will be calculated by reference to data recorded or logged by 8x8 and not by reference to data recorded or logged by Customer. 3. REGULATORY FEES. Except where prohibited by applicable law, 8x8 may charge Regulatory Fees, including an Emergency Services Fee (or E911 Service Fee in the United States) and a Regulatory Recovery Fee in the United States, in connection with any telephony services provided to Customer. The Regulatory Fees are charged monthly to offset costs incurred by 8x8 in complying with inquiries and obligations imposed on 8x8, as an interconnected voice-over-IP service provider, by national, state, provincial, municipal and/or other regulatory bodies and government agencies. These fees are not taxes or charges required or assessed by any government. Regulatory Fees are charged for each number for which Customer has ordered Subscription Services, including toll free and virtual numbers. The Regulatory Fees are presented as separate line-items in invoices, and the initial rates will be set forth in any quote for Subscription Services. 4. DISCONNECT FEES. If Customer purchases Services pursuant to a Service Plan, Service Order or Service Agreement that expressly provides for Disconnect Fees to be charged in lieu of early termination charges, then the following terms shall apply: If a Customer terminates a Service Plan (excluding a Plus Extension) associated with Equipment within twelve (12) months of the initial purchase of the Services, 8x8 shall charge a service disconnection fee of fifty-nine dollars and ninety-nine cents ($59.99) for each item of Equipment. If a Customer terminates a Plus Extension Service Plan within twenty-four (24) months of the initial purchase of the Services, 8x8 shall charge a disconnection fee of two hundred dollars ($200.00) for each Plus Extension. 5. EXTENDED PAYMENT PLAN – EARLY TERMINATION PAYMENT. If Customer terminates an Extended Payment Plan within twenty-four (24) months of the initial shipment date of the applicable Equipment (or such other period as may be specified in the Service Order), Customer shall pay 8x8, in addition to any other fees and charges that may be due, an amount equal to the product of (a) the monthly payment (including applicable Taxes) for such Equipment, multiplied by (b) the number of months remaining in the terminated Extended Payment Plan term as of the date of termination.