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Acceptable Use and Network Management Policy

ACCEPTABLE USE POLICY FOR BROADBAND INTERNET SERVICES

North State Telephone Company d/b/a North State Communications and its affiliates (collectively, “North State”) have adopted this Acceptable Use Policy ("AUP") to outline the acceptable use of North State’s Broadband Internet service for residential and business customers ("Broadband Service"). This AUP is in addition to any restrictions contained in the subscriber agreement or other contract with North State applicable to your Broadband Services (the “Subscriber Agreement"). Please refer to the Frequently Asked Questions [this should go to the Support page] (“FAQs") at www.northstate.net, which includes explanations of how North State implements and applies many of the provisions contained in this AUP.

You, the customer, must comply with this AUP. Your failure to do so could result in the suspension or termination of your Broadband Service account. If you do not agree to comply with this AUP, you must immediately stop all use of the Broadband Service and notify North State so that it can close your account.

North State may revise this AUP from time to time by posting a new version on the Web site at www.northstate.net (the “North State website"). North State will use reasonable efforts to make customers aware of any changes to this AUP, which may include sending email announcements or posting information on the North State website. Revised versions of this AUP are effective immediately upon posting. Accordingly, customers of North State Broadband Service should read any North State announcements they receive and regularly visit the North State web site and review this AUP to ensure that their activities conform to the most recent version. If you have questions regarding this AUP, or to report violations of it, you can contact North State at www.northstate.net. To report illegal content on the Internet go to www.ftc.gov

I. Prohibited Uses and Activities

In general, this AUP prohibits uses and activities involving the Broadband Service that are illegal, infringe the rights of others, or interfere with or diminish the use and enjoyment of the Broadband Service by others.

A. Network and Usage Restrictions

No user of the Broadband Service, any equipment owned, leased or controlled by North State or its affiliates (“North State Equipment") or any equipment owned, leased or controlled by Customer used in connection with or relating to the Broadband Service (“Customer Equipment") may, individually or in combination with another:

1. restrict, inhibit, or otherwise interfere with the ability of any other person, regardless of intent, purpose or knowledge, to use or enjoy the Broadband Service (except for safety and security functions such as parental controls, for example), including, without limitation, posting or transmitting any information or software which contains a worm, virus, or other harmful feature, or generating levels of traffic sufficient to impede others' ability to use, send, or retrieve information;

2. restrict, inhibit, interfere with, or otherwise disrupt performance of the Broadband Service or cause performance degradation regardless of intent, purpose or knowledge, to the Broadband Service or any North State (or North State supplier) host, server, backbone network, node or service, or otherwise cause performance degradation to any North State (or North State supplier) facilities used to deliver the Broadband Service;

3. resell the Broadband Service or, unless you are a business customer subject to a Broadband Service plan that expressly permits you to do so, otherwise make available to anyone outside your premises the ability to use the Broadband Service (for example, through Wi-Fi or other methods of networking), in whole or in part, directly or indirectly. If you are a residential customer, the Broadband Service is for personal and non-commercial residential use only and you agree not to use the Broadband Service for operation as an Internet service provider or for any business enterprise or purpose (whether or not for profit);

4. unless you are a business customer subject to a Broadband Service plan that expressly permits you to do so, connect the North State Equipment to any computer outside of your premises;

5. interfere with computer networking or telecommunications service to any user, host or network, including, without limitation, denial of service attacks, flooding of a network, overloading a service, improper seizing and abusing operator privileges, and attempts to “crash" a host; and/or

6. accessing and using the Broadband Service with anything other than a dynamic Internet Protocol (“IP") address that adheres to the dynamic host configuration protocol (“DHCP"). You may not configure the Broadband Service or any related equipment to access or use a static IP address or use any protocol other than DHCP unless you are subject to a Broadband Service plan that expressly permits you to do so.

B. Conduct and Information Restrictions

No user of the Broadband Service, Customer Equipment, or North State Equipment may, individually or in combination with another:

1. avoid incurring charges for or otherwise avoid being required to pay for usage of the Broadband Service;

2. intentionally use the Broadband Service on a standby or inactive basis in order to maintain a connection;

3. invade another person's privacy, or stalk, harass, or otherwise violate the rights of other persons;

4. undertake or accomplish any unlawful purpose. This includes, but is not limited to, posting, storing, transmitting or disseminating information, data or material which is libelous, obscene, unlawful, threatening or defamatory, or which infringes the intellectual property rights of any person or entity, or which in any way constitutes or encourages conduct that would constitute a criminal offense, or otherwise violate any local, state, federal, or non-U.S. law, order, or regulation;

5. post, store, send, transmit, or disseminate any information or material which a reasonable person could deem to be unlawful;

6. upload, post, publish, transmit, reproduce, create derivative works of, or distribute in any way information, software or other material obtained through the Broadband Service or otherwise that is protected by copyright or other proprietary right, without obtaining any required permission of the owner;

7. collect, or attempt to collect, personal information about third parties without their consent;

8. transmit unsolicited bulk or commercial messages commonly known as "spam;"

9. send voluminous copies of the same or substantially similar messages, empty messages or messages which contain no substantive content, or send very large messages or files that disrupt a server, account, blog, newsgroup, chat, or similar service;

10. initiate, perpetuate, or in any way participate in any pyramid or other illegal scheme;

11. participate in the collection of voluminous amounts of email addresses, screen names, or other identifiers of others (without their prior consent), a practice sometimes known as spidering or harvesting, or participate in the use of software (including "spyware") designed to facilitate this activity;

12. collect responses from unsolicited bulk messages;

13. falsify, alter, or remove message headers;

14. falsify references to North State or its network, by name or other identifier, in messages;

15. impersonate any person or entity; engage in sender address falsification, forge anyone else's digital or manual signature, or perform any other similar fraudulent activity (for example, "phishing"); and/or

16. violate North State's Universal Terms and Conditions, rules, regulations, or policies applicable to any network, server, computer database, service, application, system, or Web site that you access or use.

C. Technical Restrictions

No user of the Broadband Service, Customer Equipment, or North State Equipment may, individually or in combination with another:

1. use the Broadband Service or facilities for web-hosting, email hosting, or other unusually high-bandwidth consumption unless you are a business customer subject to a Broadband Service plan that expressly permits you to do so or have made special subscription arrangements with North State and, in any case, the usage does not otherwise violate law or regulation;

2. access any other person's computer or computer system, network, software, or data without his or her knowledge and consent; breach the security of another user or system; or attempt to circumvent the user authentication or security of any host, network, or account. This includes, but is not limited to, accessing data not intended for you, logging into or making use of a server or account you are not expressly authorized to access, or probing the security of other hosts, networks, or accounts without express permission to do so;

3. use or distribute tools or devices designed or used for compromising security or whose use is otherwise unauthorized, such as password guessing programs, decoders, password gatherers, keystroke loggers, analyzers, cracking tools, packet sniffers, encryption circumvention devices, or Trojan Horse programs. Unauthorized port scanning is strictly prohibited;

4. copy, distribute, or sublicense any proprietary software provided in connection with the Broadband Service by North State or any third party, except that you may make one copy of each software program for back-up purposes only;

5. distribute programs that make unauthorized changes to software (cracks);

6. unless you are a business customer subject to a Broadband Service plan that expressly permits you to do so, use or run dedicated, stand-alone equipment or servers from your premises that provide network content or any other services to anyone outside of your premises local area network ("Premises LAN"), also commonly referred to as public services or servers. Examples of prohibited equipment and servers include, but are not limited to, email, Web hosting, file sharing, and proxy services and servers;

7. unless you are a business customer subject to a Broadband Service plan that expressly permits you to do so, use or run programs from your premises that provide network content or any other services to anyone outside of your Premises LAN except for personal and non-commercial residential use; and/or

8. service, alter, modify, or tamper with North State Equipment or Broadband Service or permit any other person to do the same who is not authorized by North State.

II. Customer Conduct and Features of the Broadband Service

A. Customer Obligations

In addition to being responsible for your own compliance with this AUP, you are also responsible for any use or misuse of the Broadband Service that violates this AUP, even if it was committed by a friend, family member, or guest with access to your Broadband Service account. Therefore, you must take steps to ensure that others do not use your account to gain unauthorized access to the Broadband Service by, for example, strictly maintaining the confidentiality of your Broadband Service login and password. In all cases, you are solely responsible for the security of any device you choose to connect to the Broadband Service, including any data stored or shared on that device. It is also your responsibility to secure the Customer Equipment and any other premises equipment or programs not provided by North State that connect to the Broadband Service from external threats such as viruses, spam, bot nets, and other methods of intrusion.

B. North State's Rights

North State reserves the right to refuse to transmit or post, and to remove or block, any information or materials, in whole or in part, that it, in its sole discretion, deems to be in violation of Sections I or II of this AUP, or otherwise harmful to North State's network or customers using the Broadband Service, regardless of whether this material or its dissemination is lawful, so long as it violates this AUP. Neither North State nor any of its affiliates, suppliers, or agents have any obligation to monitor transmissions or postings (including, but not limited to, email, file transfer, blog, newsgroup, and instant message transmissions) made on the Broadband Service. However, North State and its affiliates, suppliers, and agents have the right to monitor these transmissions and postings from time to time for violations of this AUP and to disclose, block, or remove them in accordance with this AUP, the Subscriber Agreement, and applicable law.

C. Service Restrictions

All of North State's network and system services are provided according to scheduled fees for each type of service. You agree to use such services in accordance with the terms set forth below.

1. Email and Web-Hosting Services

(i) Unsolicited email Prohibited - You may not use North State-hosted email addresses for the purpose of sending unsolicited email. You may not use or cause to be used North State's equipment, network connectivity, or other resources to originate, deliver, relay or otherwise transmit unsolicited email messages. You may not engage in any of the foregoing prohibited activities by using the service of any other provider, third-party agent, remailing service or address forwarding service, in such a way that North State's network addresses or North State-hosted web or email services are in any way identified as being associated with the sending of unsolicited email.

(ii) Unauthorized use, or forging, of mail header information (e.g., "spoofing") is prohibited.

(iii) Fraudulent Activity Prohibited – You may not use the North State email and web-hosting services to make fraudulent offers to sell or buy products, items, services, or to advance any type of financial scam such as "pyramid schemes", "Ponzi schemes", or "chain letters." You may not use techniques to hide or obscure the source of any email or other communications.

(iv) North State reserves the right to suspend or delay delivery of email to customer utilizing North State email services and/or the virtual domain email if the volume of email being redirected, stored, or delivered on the customer's behalf is deemed excessive. Excessive traffic is defined as any amount of email that consumes more than the contracted capacity or any volume of email traffic that noticeably degrades performance on the server in question, in the sole discretion of North State. Stored mail exceeding these limits may be transferred to a compressed file at North State's discretion. North State will attempt to notify the account holder via the account contact information on record; however, North State reserves the right to delete the contents of such email boxes thirty (30) days after attempted notification.

The Broadband Service may not be used to communicate or distribute email or other forms of communications in violation of Section I of this AUP. As described below in Section III of this AUP, North State uses reasonable network management tools and techniques to protect customers from receiving spam and from sending spam (often without their knowledge over an infected computer).

North State is not responsible for deleting or forwarding any email sent to the wrong email address by you or by someone else trying to send email to you. North State is also not responsible for forwarding email sent to any account that has been suspended or terminated. This email will be returned to the sender, ignored, deleted, or stored temporarily at North State's sole discretion. In the event that North State believes in its sole discretion that any subscriber name, account name, or email address (collectively, an "identifier") on the Broadband Service may be used for, or is being used for, any misleading, fraudulent, or other improper or illegal purpose, North State (i) reserves the right to block access to and prevent the use of any of these identifiers and (ii) may at any time require any customer to change his or her identifier. In addition, North State may at any time reserve any identifiers on the Broadband Service for North State's own purposes. In the event that a Broadband Service account is terminated for any reason, all email associated with that account (and any secondary accounts) will be permanently deleted as well.

2. Instant, Video, and Audio Messages

Each user is responsible for the contents of his or her instant, video, and audio messages and the consequences of any of these messages. North State assumes no responsibility for the timeliness, misdelivery, deletion, or failure to store these messages. In the event that a Broadband Service account is terminated for any reason, all instant, video, and audio messages associated with that account (and any secondary accounts) will be permanently deleted as well.

3. Web Pages and File Storage

As part of the Broadband Service for residential customers, and as part of the Broadband Service for business customers subject to a Broadband Service plan that expressly provides such access, North State provides access to web pages and storage space (collectively, the "Web Features"). You are solely responsible for any information that you or others publish or store on the Web Features. You are also responsible for ensuring that all content made available through the Web Features is appropriate for those who may have access to it. For example, you must take appropriate precautions to prevent minors from receiving or accessing inappropriate content. North State reserves the right to remove, block, or refuse to post or store any information or materials, in whole or in part, that it, in its sole discretion, deems to be in violation of Section I of this AUP. For purposes of this AUP, "material" refers to all forms of communications including text, graphics (including photographs, illustrations, images, drawings, logos), executable programs and scripts, video recordings, and audio recordings. North State may remove or block content contained on your Web Features and terminate your Web Features and/or your use of the Broadband Service if we determine that you have violated the terms of this AUP.

III. Network Management and Limitations on Data Consumption

North State strives to provision a customer's connection up to the maximum advertised speed, but actual speed experienced by the customer will vary based on multiple factors, such as the condition of wiring inside a specific location or the electromagnetic interference on the customer's line; general Internet backbone configurations and computer configuration; network or Internet congestion; and the server speeds of websites accessed. These variables can cause the Broadband Service to perform at less than maximum advertised speeds. North State does not and cannot guarantee speeds.

North State manages its network with the goal of delivering a fast, safe and uncompromised broadband Internet experience to all of its customers. High-speed bandwidth and network resources are, however, not unlimited. Managing the network is essential for the promotion of the best possible broadband Internet experience by all of North State's customers. The Company uses reasonable network management practices that are consistent with industry standards. North State tries to use tools and technologies that are minimally intrusive and, in its independent judgment guided by industry experience, among the best in class. Of course, the Company's network management practices will change and evolve along with the uses of the Internet and the challenges and threats on the Internet. All broadband Internet service providers manage their networks. Many of them use the same or similar tools that North State does. If the Company didn't manage its network, its customers would be subject to the negative effects of spam, viruses, security attacks, network congestion, and other risks and degradations of service. By engaging in responsible network management, including enforcement of this AUP, North State can deliver the best possible broadband Internet experience to all of its customers. Visit North State's website at www.northstate.net for more information.

A. Network Management

North State uses various tools and techniques to manage its network, deliver the Broadband Service, and ensure compliance with this AUP and the Subscriber Agreement. These tools and techniques are dynamic, like the network and its usage, and can and do change frequently. North State's network management practices may include (i) identifying spam and preventing its delivery to customer email accounts, (ii) detecting malicious Internet traffic and preventing the distribution of viruses or other harmful code or content, (iii) temporarily lowering the priority of traffic for users who are the top contributors to current network congestion, and (iv) using other tools and techniques that North State may be required to implement in order to meet its goal of delivering the best possible broadband Internet experience to all of its customers.

North State does not manage network congestion by capping an individual customer's usage, reducing the speed of an individual customer's service once a certain amount of usage is exceeded, or other similar strategies. Instead, North State focuses on anticipating and avoiding congestion by monitoring network usage and augmenting capacity in a targeted manner. As Internet traffic volumes continue to grow, it may not be possible to manage network congestion through capacity upgrades alone. As a result, North State will continue to evaluate its practices in this respect and will revise its approach as needed to deliver a quality online experience, including possibly offering tiers of service with different usage allowances and/or assessing fees for exceeding such allowances.

B. Network Usage and Data Consumption Restrictions

The excessive or unreasonable use of North State's network resources by one customer may have a negative impact on all other customers. Accordingly, you may not use, or take any action, directly or indirectly, that will result in use, of the Broadband Service in a manner that is excessive or unreasonable with respect to frequency, duration or bandwidth consumption when compared to the predominant usage patterns of other customers on a similar service plan or in your geographic area or which may weaken network performance, as determined by North State's sole discretion. Such prohibited actions include, but are not limited to: using North State's Broadband Services to host a web server site which attracts excessive traffic at your location, continuously uploading or downloading streaming video or audio, use net hosting, continuous FTP uploading or downloading, or acting in a manner that negatively effects other users' ability to engage in real time exchanges and use of North State's Broadband Service.

Common activities that may cause excessive data consumption in violation of this AUP include, but are not limited to, numerous or continuous bulk transfers of files and other high capacity traffic using (i) file transfer protocol ("FTP"), and (ii) newsgroups.

You must also ensure that your use of the Broadband Service does not restrict, inhibit, interfere with, or degrade any other person's use of the Broadband Service, nor represent (as determined by North State in its sole discretion) an overly large burden on the network. In addition, you must ensure that your use of the Broadband Service does not limit or interfere with North State's ability to deliver and monitor the Broadband Service or any part of its network.

If North State determines, in its sole discretion, that you have violated the restrictions referenced above, North State may, in its sole discretion, suspend or terminate your Broadband Service account or request that you subscribe to a version of the Broadband Service (such as a commercial grade Internet service, if appropriate) if you wish to continue to use the Broadband Service at higher data consumption levels. North State may also provide versions of the Broadband Service with different speed and data consumption limitations, among other characteristics, subject to applicable Broadband Service plans.

North State's determination of the data consumption for Broadband Service accounts is final.

IV. Violation of this Acceptable Use AUP

North State reserves the right to immediately suspend or terminate your Broadband Service account and terminate the Subscriber Agreement if you violate the terms of this AUP or the Subscriber Agreement.

North State does not routinely monitor the activity of individual Broadband Service accounts for violations of this AUP, except for determining aggregate data consumption in connection with the data consumption provisions of this AUP. However, in the Company's efforts to promote good citizenship within the Internet community, it will respond appropriately if it becomes aware of inappropriate use of the Broadband Service. North State has no obligation to monitor the Broadband Service and/or the network. However, North State and its suppliers reserve the right at any time to monitor bandwidth, usage, transmissions, and content in order to, among other things, operate the Broadband Service; identify violations of this AUP; and/or protect the network, the Broadband Service and North State users.

North State prefers to inform customers of inappropriate activities and give them a reasonable period of time in which to take corrective action. North State also prefers to have customers directly resolve any disputes or disagreements they may have with others, whether customers or not, without North State's intervention. However, if the Broadband Service is used in a way that North State or its suppliers, in their sole discretion, believe violates this AUP, North State or its suppliers may take any responsive actions they deem appropriate under the circumstances with or without notice. These actions include, but are not limited to, temporary or permanent removal of content, cancellation of newsgroup posts, filtering of Internet transmissions, and the immediate suspension or termination of all or any portion of the Broadband Service (including but not limited to newsgroups). Neither North State nor its affiliates, suppliers, nor agents will have any liability for any of these responsive actions. These actions are not North State's exclusive remedies and North State may take any other legal or technical actions it deems appropriate, with or without notice.

North State reserves the right to investigate suspected violations of this AUP, including the gathering of information from the user or users involved and the complaining party, if any, and examination of material on North State's servers and network. During an investigation, North State may suspend the account or accounts involved and/or remove or block material that potentially violates this AUP. You expressly authorize and consent to North State and its suppliers cooperating with (i) law enforcement authorities in the investigation of suspected violations of law, and (ii) and system administrators at other Internet service providers or other network or computing facilities in order to enforce this AUP. Upon termination of your Broadband Service account, North State is authorized to delete any files, programs, data, email and other messages associated with your account (and any secondary accounts).

The failure of North State or its suppliers to enforce this AUP, for whatever reason, shall not be construed as a waiver of any right to do so at any time. You agree that if any portion of this AUP is held invalid or unenforceable, that portion will be construed consistent with applicable law as nearly as possible, and the remaining portions of this AUP will remain in full force and effect. You agree to indemnify, defend and hold harmless North State and its affiliates, suppliers, and agents against all claims and expenses (including reasonable attorney fees) resulting from any violation of this AUP by you or others using your Broadband Service account. Your indemnification will survive any termination of the Subscriber Agreement.

V. Copyright and Digital Millennium Copyright Act Requirements

North State is committed to complying with U.S. copyright and related laws, and requires all customers and users of the Broadband Service to comply with these laws. Accordingly, you may not store any material or content on, or disseminate any material or content over, the Broadband Service (or any part of the Broadband Service) in any manner that constitutes an infringement of third party intellectual property rights, including rights granted by U.S. copyright law. Owners of copyrighted works who believe that their rights under U.S. copyright law have been infringed may take advantage of certain provisions of the Digital Millennium Copyright Act of 1998 (the "DMCA") to report alleged infringements. It is North State's policy, in accordance with the DMCA and other applicable laws, to reserve the right to terminate the Broadband Service provided to any customer or user who is either found to infringe third party copyright or other intellectual property rights, including repeat infringers, or who North State, in its sole discretion, believes is infringing these rights. North State may terminate the Broadband Service at any time with or without notice for any affected customer or user.

Copyright owners may report alleged infringements of their works that are stored on the Service or the Personal Web Features by sending North State's authorized agent a notification of claimed infringement that satisfies the requirements of the DMCA. Upon North State's receipt of a satisfactory notice of claimed infringement for these works, North State will respond expeditiously to either directly or indirectly (i) remove the allegedly infringing work(s) stored on the Service or the Personal Web Features or (ii) disable access to the work(s). North State will also notify the affected customer or user of the Service of the removal or disabling of access to the work(s). If the affected customer or user believes in good faith that the allegedly infringing works have been removed or blocked by mistake or misidentification, then that person may send a counter notification to North State. Upon North State's receipt of a counter notification that satisfies the requirements of DMCA, North State will provide a copy of the counter notification to the person who sent the original notification of claimed infringement and will follow the DMCA's procedures with respect to a received counter notification. In all events, you expressly agree that North State will not be a party to any disputes or lawsuits regarding alleged copyright infringement.

Designation of Agent to Receive Notification of Claimed Infringement

Full Legal Name of Service Provider: North State Telephone Company

Alternative Name(s) of Service Provider: North State Communications, North State

Address of Service Provider: 111 N. Main Street, High Point, NC 27260

Agent Designated to Receive Notification of Claimed Infringement: Clint Farabow

Full Address of Designated Agent to which Notification Should be Sent: 111 N. Main Street, High Point, NC 27260

Telephone Number of Designated Agent: 336-821-4446

Facsimile Number of Designated Agent: 336-884-9390

email Address of Designated Agent: clint.farabow@nscom.com

Network Management Policy

North State Telephone Company d/b/a North State Communications and its affiliates (collectively, "North State" or "Company") provide this statement of its policy setting forth North State's network management practices in accordance with the FCC's Open Internet Rules. Information about North State's other policies and practices are available at www.northstate.net (" North State Website").

North State manages its network to ensure that all of its customers experience a safe and secure broadband Internet environment that is fast, reliable and affordable. North State wants its customers to enjoy all that the Internet has to offer, whether it is social networking, streaming videos and music, to communicating through email and video conferencing.

North State manages its network for a number of reasons, including optimization, as well as congestion and security-protocol-management.

North State uses various tools and industry standard techniques to manage its network and deliver fast, secure and reliable Internet service. Such management tools and practices include the following:

I. MANAGING CONGESTION

North State periodically monitors the connections on its network in the aggregate to determine the rate of utilization. If congestion emerges on the network, North State will engage in the re-routing of Internet traffic to relieve congestion. In order to reduce instances of congestion, North State has capacity management procedures in place. On our core and access networks, North State may increase capacity by adding FTTH nodes, transport, Internet aggregation routers and bandwidth, as needed.

On North State's network, all customers have access to all legal services, applications and content online and, in the event of congestion, most Internet activities will be unaffected. Some customers, however, may experience longer download or upload times, or slower surf speeds on the web when instances of congestion do occur on North State's network.

Customers whose conduct abuses or threatens North State's network or which violates the Company's Acceptable Use Policy or Internet Service Terms and Conditions will be requested to stop any such use immediately. A failure to respond to such request or to cease any such conduct could result in service suspension or termination.

North State's network and congestion management practices are 'application-agnostic', based on current network conditions, and are not implemented on the basis of customers' online activities, protocols or applications.

North State does not manage congestion by capping an individual customer's usage, reducing the speed of an individual customer's service once a certain amount of usage is exceeded, or other similar strategies. Instead, North State focuses on anticipating and avoiding congestion by monitoring network usage and augmenting capacity in a targeted manner. As Internet traffic volumes continue to grow, it may not be possible to manage network congestion through capacity upgrades alone. As a result, North State will continue to evaluate its practices in this respect and will revise its approach as needed to deliver a quality online experience, including possibly offering tiers of service with different usage allowances and/or assessing fees for exceeding such allowances.

II. NETWORK SECURITY

North State knows the importance of attempting to secure its network and customers from network threats and annoyances. The Company promotes the security of its network and patrons by providing resources to its customers for identifying and reporting such threats as spam, viruses, firewall issues, and phishing schemes. North State also deploys spam filters in order to divert spam from an online customer's email inbox while allowing the customer to control which emails are identified as spam.

As its normal practice, North State does not block any protocols, content or traffic for purposes of network management, except that the Company may block or limit such traffic as spam, viruses, malware, or denial of service attacks to protect network integrity and the security of our customers. North State also has a port filtering policy aimed at reducing the spread of computer-related viruses and protecting your computer from intruder access.

Except as may be provided elsewhere herein, North State does not currently engage in any application-specific behaviors nor does it employ any device attachment rules for its network.

III. TECHNOLOGY

North State's network management employs a variety of industry-standard tools, applications and devices to monitor, secure and maintain its network. North State uses network management software to monitor aggregate traffic usage.

IV. MONITORING SCHEDULE

North State uses network management software to conduct periodic monitoring of the network in order to detect abnormal traffic flows, congestion, network security breaches, malware, loss, and damage to the network.

V. NETWORK PERFORMANCE

North State strives to support advertised speeds and will dispatch repair technicians to customer sites to perform speed tests as needed to troubleshoot and resolve speed and application performance issues caused by North State's network. North State measures availability, latency, and aggregate utilization on the network and strives to meet internal service level targets. However, customer's service performance may be affected multiple factors, such as the condition of wiring inside a specific location or the electromagnetic interference on the customer's line; general Internet backbone configurations and computer configuration; network or Internet congestion; and the server speeds of websites accessed.

North State is in the process of developing additional systems that will allow us to measure these indicators out to test points at each major network aggregation site on the edge of our last mile network. Once these systems are developed, North State will be able to measure system metrics on a network-wide basis and will disclose the results on its website.

VI. SPECIALIZED SERVICES<

North State and its subsidiaries provide specialized services such as Fiber TV. These real time services command optimal bandwidth. The specialized service is combined with the general Internet traffic on North State's network. Although unlikely, broadband customers could experience service delays if there is an occurrence of congestion on North State's network because, in any such event, these specialized services are given priority over general Internet traffic.

VII. COMMERCIAL TERMS

A description of North State's service offerings and rates may be found on North State's website at the following link: www.northstate.net. [This should go to the Business Home page] North State's Privacy Policy may be found on North State's website at the following link: www.northstate.net. [This should go to the Privacy Policy] For questions, complaints or requests for additional information, please contact North State at: 336-886-3600 or toll free at 1-866-542-5900.

TV SERVICES TERMS AND CONDITIONS

VIDEO (TV) ACCEPTABLE USE POLICY

General Policy

North State reserves the sole discretion to deny or restrict any of your Video / Television Services, or immediately to suspend or terminate any such Service, if the use of any Service by you or anyone using it, in our sole discretion, violates the North State Universal Terms and Conditions or any other North State policies, is objectionable or unlawful, interferes with the functioning or use of the Internet or the North State network by North State or other users, or violates the terms of this Acceptable Use Policy ("AUP"). Capitalized terms not otherwise defined herein shall have the meaning for such term set forth in the North State Universal Terms and Conditions. For avoidance of doubt, this AUP applies in addition to, and not in lieu of, any Acceptable Use Policy adopted by North State relating to broadband services.

Copyright Infringement/Repeat Infringer Policy

North State respects the intellectual property rights of third parties. Accordingly, you may not store any material or use North State's systems or servers in any manner that constitutes or results in an infringement of third party intellectual property rights, including under U.S. copyright law. In accordance with the Digital Millennium Copyright Act ("DMCA") and other applicable laws, North State may suspend or terminate any Service provided to any subscriber or account holder who is deemed to infringe third party intellectual property rights, including repeat infringers of copyrights. In addition, North State expressly reserves the right to suspend, terminate or take other interim action regarding any Service of any subscriber or account holder if North State, in its sole judgment, believes that circumstances relating to an infringement of third party intellectual property rights warrant such action. These policies are in addition to and do not affect or modify any other rights North State may have under law or contract. If you believe that copyrighted material has been used in violation of this policy or otherwise been made available through the Services in a manner that is not authorized by the copyright owner, its agent or the law, please contact North State. North State may, but is not required to, monitor your compliance, or the compliance of other customers, with this AUP. You acknowledge that North State shall have the right, but not the obligation, to pre-screen, refuse, move or remove any content available through the Services, including but not limited to content that violates the law, the North State Universal Terms and Conditions or this AUP.

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