PREPAY TERMS AND CONDITIONS The following terms and conditions apply from 17 November 2010

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1 PREPAY TERMS AND CONDITIONS The following terms and conditions apply from 17 November 2010 Welcome to 2degrees. Please read these terms and conditions carefully as they set out the basis on which we will provide Services to you on a Prepay basis. By using the Services you are deemed to have accepted these Prepay terms and conditions. We may change these terms and conditions from time to time. If we do this we will publish the amended terms and conditions on Please check regularly as continuing to use the Services after changes have been published will mean that you agree to these terms and conditions as amended. 1. Interpretation 2degrees means Two Degrees Mobile Limited, the duly incorporated company having its registered office at 131 Khyber Pass Road, Grafton, Auckland degrees Network means the New Zealand mobile cellular network through which Services are provided, comprising the mobile cellular network owned and operated by us, as modified, upgraded or expanded from time to time and that part of the 2degrees Network provided through the National Roaming Agreement. Activation means the successful activation by you of your SIM card (where applicable) and completion of the set-up process for your Prepay Account (and Activate shall be construed accordingly). Agent means any third party appointed by us to perform any of our obligations under this Agreement. Agreement means this agreement between us and you comprising these Prepay Terms and Conditions, any specific terms and conditions which apply to a particular Service used by you and any 2degrees policies and procedures published by us from time to time on Charges means all access charges, services costs and usage charges payable in accordance with the terms of any Service and any additional charges payable by you in respect of the Services. Content means information, data, communications, images and sounds, software or any other material contained on or available through the Services. Customer Care means the 2degrees customer care team, contactable by dialling 200 from your Mobile Phone or by otherwise calling or Fair Use Policy means the policy set out in clause 9 of this Agreement. GST means Goods and Services Tax as defined in the Goods and Services Act 1985.

2 Mobile Phone means the personal GSM mobile phone, handset or other terminal or device approved by 2degrees for use on the 2degrees Network and used by you with a SIM card to connect to the 2degrees Network. Mobile Phone Number means the mobile phone number allocated to you by us or selected by you from our available mobile phone numbers (where this Service is available) or which you Port from another Mobile Telecommunications Provider. Mobile Telecommunications Provider means a provider of mobile telecommunications services to consumers in New Zealand. National Roaming Agreement means the agreement from time to time between 2degrees and Vodafone for the supply of national roaming services by Vodafone to 2degrees. "Network Operator" is any entity with whom we have entered into an interconnection or international roaming agreement or arrangement (directly or indirectly) providing for the passing of customer generated or customer destined communications between us and that entity. "Payment" means loading monetary credit onto your Prepay Account by any means made available by us. Plans means the various calling plans available to you from us on your Prepay Account (as published by us from time to time on "Port" means to transfer a mobile phone number from one Mobile Telecommunications Provider to another (and words such as Porting, Ported and Porting Process are construed accordingly). Prepay SIM Pack means a 2degrees retail pack containing (among other things) a Mobile Phone Number, SIM card and (where applicable) preloaded Re-charge Credit. Prepay Account" is your account with us where your Re-charge Credit is stored, and from where our Charges to you for the cost of the Services used by you are deducted. Privacy Policy means the privacy policy published by us on Re-charge Credit means the monetary credit loaded onto your Prepay Account. "Services" means the mobile telecommunications services made available by us and/or our Agents or approved third party suppliers to you over the 2degrees Network, including any Plans and Value Packs. "SIM card" means the 2degrees subscriber identity module used with your Mobile Phone to enable you to access the 2degrees Network and use the Services.

3 Terms for Local and Mobile Number Portability means the requirements for local and mobile number portability determined under the Telecommunications Act Value Pack means any bundle of Services, in addition to any Plan, purchased by you (including any calling, text, data or Content bundle) on your Prepay Account. Vodafone means Vodafone New Zealand Limited. Vodafone Network means the New Zealand mobile cellular network owned and operated by Vodafone as modified, upgraded or expanded by Vodafone from time to time. "we" or "us means 2degrees and "our" has a corresponding meaning. "you" means the customer under this Agreement and "your" has a corresponding meaning. Your 2degrees means the online self service portal you may set up at and through which you are able to manage certain aspects of your Prepay Account. 2. Commencement of Agreement This Agreement commences on the date when you purchase or receive a Prepay SIM Pack, whichever is sooner, or the date on which you switch from a Pay Monthly Account on to a Prepay Account. 3. Activation You will need to Activate your Prepay Account by activating the SIM card purchased or received by you by calling Customer Care and completing the account set-up process as directed by Customer Care before you can start using the Services. You can contact Customer Care by inserting a SIM card into your Mobile Phone and dialling 200. If you are a Pay Monthly customer who is switching to a Prepay Account, you can Activate your Prepay Account by calling Customer Care at any time. The Pay Monthly Terms and Conditions will apply to the cancellation of your Pay Monthly Account when you switch to a Prepay Account, and you will continue to be liable for any Charges due in accordance with the Pay Monthly Terms and Conditions in respect of your Pay Monthly Account. 4. Coverage The Services are only available within the coverage of the 2degrees Network. We will do our best to provide quality Services to you but it is not possible to provide a fault-free service at all times. If you have any questions or concerns regarding the Services please contact Customer Care.

4 Coverage and Services may be adversely affected by radio interference, geographic or atmospheric conditions, outages, maintenance works, over-loading, faults or limitations in your Mobile Phone or the mobile phone or other device of the person with whom you are communicating, faults or other operational difficulties in the 2degrees Network or any other mobile telecommunications network to which our network is connected, or other circumstances or factors outside our control. This means you may not receive all of the Services in all areas all of the time. Coverage and Services can also change as we continue to build, develop and improve the 2degrees Network. 5. The Services (e) (f) (g) You can connect to other people through the 2degrees Network by making and receiving local, national and international calls and text and picture messages, and accessing the other Services we provide. The maximum length of any one call you make is 120 minutes. If you reach this limit the call will be terminated. You can re-dial and continue the call should you wish to do so. Visit for full details of the Services, including our Plans and Value Packs, and any specific terms and conditions which apply to a particular Service. In order to receive the Services you must set the network selection setting of your Mobile Phone to automatic. This is typically the default setting. We cannot guarantee the availability of Services to you, and may cease to provide Services to you, if you fail to set the network selection setting of your Mobile Phone to automatic. If you require any assistance regarding the correct settings for your Mobile Phone please contact Customer Care. Where we provide a Service to you, including through a Plan or Value Pack, that is subject to specific terms and conditions, those specific terms and conditions will form part of this Agreement. If there is any inconsistency between these Prepay Terms and Conditions and any specific terms and conditions applicable to you the specific terms and conditions will take precedence. Where a Service is only available in a specific geographic location this will be set out in the specific terms and conditions applicable to that Service. Not all mobile phones and devices can receive all of the Services and some mobile phones and devices may not be compatible with the 2degrees Network. We only agree to provide Services to you when you use a mobile phone or device of a make and model that is compatible with the 2degrees Network and which is approved by 2degrees for use on the 2degrees Network. You are responsible for obtaining a compatible mobile phone or other device or equipment required by you to use the Services.

5 (h) (i) We may restrict or prevent the use of voice over internet protocol ( VOIP ) or message over internet protocol ( MOIP ) communications on the 2degrees Network. The Services may be changed, suspended or removed by us and/or new Services introduced from time to time. We will notify you in accordance with clause 23 of this Agreement if we do so. 6. Your Responsibilities (e) (f) You must use the Services in the way described in any user guide, policy, specific terms and conditions that are applicable or other instructions issued by us, and must ensure that everyone you are responsible for also meets your responsibilities under this Agreement when using your Mobile Phone or SIM card, whether authorised by you or not. You agree not to use your Mobile Phone or the Services to make abusive, offensive or nuisance calls or communications (including spam) or for any illegal or fraudulent purpose. We may immediately cease providing Services to you if you do so. You must not use any Mobile Phone which masks or in any way alters the true point of origin or termination of any call or other transmission over the 2degrees Network. Using or agreeing to use the Services does not give you any rights in any part of the Services. You must not resell or otherwise deal in any way with the whole or any part of the Services. You may not make 0900 calls, collect calls, special number calls, or any calls where Charges are not immediately deducted from your Prepay Account. You will be required to set up a 4 digit security PIN on Activation which may be required to authorise certain activity in relation to your Prepay Account. You are responsible for keeping your PIN and all other information relating to your Prepay Account confidential at all times. 7. Lost or Stolen Mobile Phone or SIM card You must keep your Mobile Phone and SIM card secure at all times and contact Customer Care immediately if your Mobile Phone or SIM card is lost, stolen, damaged or destroyed or is used or likely to be used without your authority. If requested by you, Customer Care can suspend your Prepay Account preventing further Services from being accessed using your SIM card or further Charges being deducted from your Prepay Account. You can also suspend your Prepay Account through Your 2degrees. Once your Prepay Account, is suspended your Mobile Phone and SIM card will not be able to be used to access the Services until such time as you contact Customer Care and request that the suspension is removed or you un-suspend your account through Your 2degrees.

6 (e) (f) If your Mobile Phone or SIM card is lost or stolen or used without your authority you will be responsible for all Charges incurred, and we will have no obligation to credit your account with any Charges deducted from your Prepay Account prior to the time you advise Customer Care of its loss or theft and request that your Prepay Account be suspended. During any suspension of your Prepay Account this Agreement and any applicable Plan and Value Pack specific terms and conditions will continue to apply to you (including the expiry of any Plan or Value Pack benefits). If your SIM card is lost or stolen and your Prepay Account is suspended in accordance with this Agreement we will, if requested by you, transfer your Prepay Account, including any Re-charge Credit balance on your Prepay Account, to a replacement SIM card issued to you by us. We reserve the right to charge a reasonable fee for any replacement SIM card issued to you and for completing any Re-charge Credit balance transfer. In all other circumstances, if you lose or damage your SIM card any Re-charge Credit will be lost. We are not liable for any loss you may suffer as a result of the loss, theft, damage, destruction or unauthorised use of your Mobile Phone or SIM card. You agree to indemnify us for any loss we may suffer as a result of the loss, theft, damage or destruction of your Mobile Phone or SIM card or any unauthorised use or misuse by you or anyone else, whether authorised by you or not, of your Mobile Phone, SIM card or the Services. 8. Voic Voic is one of the Services we provide. You will be required to set up a 4 digit voic PIN to activate your voic account. Your voic PIN will be used by you to control access to your voic account. You are responsible for keeping your PIN and all other information relating to your voic account confidential at all times. Un-played messages will be stored in your voic account for 30 days only and will then be deleted. Your voic account will be deactivated after 60 days of inactivity (i.e. where no messages are deposited or retrieved). We may also limit the length and number of messages which may be stored in your voic account. Calls to your voic account from your Mobile Phone will be charged. You are responsible for all access to your voic account and for any Charges incurred as a result. See for our voic charges. 9. Fair Use Policy All of the Services are subject to the Fair Use Policy set out in this clause 9.

7 (e) (f) (g) Your use of the Services must be fair, reasonable and not excessive, as reasonably determined by us by reference to average and/or estimated typical customer usage of the Services. We will consider your usage to be excessive and unreasonable where it materially exceeds the average and/or estimated use patterns over any day, week or month (or other period of time as determined by us) (Excessive Usage). Where we offer any included Services under a Plan or other Service (such as included voice or video calls, text or picture messages, data transfer and internet use via the 2degrees Network), such use is offered for your individual private and personal use and benefit only. In no case does any Service allow for activities aimed at making profit or reselling the Service or using the Service in an unfair or excessive way and any such use of the Services by you is a breach of this Agreement. Furthermore, the use of all Services is permitted only through a Mobile Phone. Use of Services through PBX or any other line connected to a computer for the purpose (or any other purpose) of making a large number of voice and video calls and/or sending a high volume of data and/or simultaneously sending text or picture messages is not permitted. For the avoidance of doubt, fair use of our Services excludes activities such as auto-dialling, continuously call forwarding, tele-marketing, call centres and use of Cellular Trunking Units (including SIM boxes and GSM gateways). If in our reasonable opinion we consider your usage to be unfair, unreasonable and/or Excessive Usage we may contact you and advise that your use is in breach of our Fair Use Policy and request that you change your use of the Services to bring it within our Fair Use Policy. We may charge you at our discretion for Excessive Usage, which if we do so will be at our standard rates. For a list of our standard rates please visit If you fail to change your use of the Services having been requested to do so by us we may, without further notice, suspend, modify or restrict your use of the Services or withdraw in full or part your access to the Services. 10. National Roaming In some parts of New Zealand the Services will be provided to you through the Vodafone Network pursuant to the National Roaming Agreement. At all times when using the Services you are a 2degrees customer and Vodafone does not provide, grant or confer any benefit, right or privilege on you. Vodafone excludes to the maximum extent permitted by law all liability of Vodafone, the Vodafone group of companies and their personnel to you arising from or in connection with the provision of national roaming services by Vodafone to 2degrees. 11. Roaming Overseas

8 You can use your Mobile Phone in other countries. For a list of the countries, services available and any specific roaming overseas terms and conditions please visit The terms and conditions on which you may use overseas networks will depend on your Mobile Phone, the country you are visiting and the terms and conditions of the Network Operators whose networks you connect to in each country. The terms and conditions and charges of those other Network Operators will apply in addition to ours. 12. Charges and Payment (e) (f) (g) The Charges for the Services are set out in any specific terms and conditions which apply to a particular Plan, Value Pack or other Service. We may vary our Charges, Plans and Value Packs from time to time or any specific terms and conditions which apply to a particular Plan, Value Pack or other Service and will notify you in accordance with clause 23 of this Agreement if we do so. When you use your mobile phone in New Zealand the calls you make to Customer Care or to top up your Prepay Account are free from your Mobile Phone by dialling 200 or (Customer Care) or 201 (Top up). You are liable for all Charges for the Services we provide to you, no matter who uses them. For example, subject to clause 7 of this Agreement, you are responsible for the Charges relating to anyone else s use of your Mobile Phone or SIM card, even when your Mobile Phone or SIM card is lost or stolen. All Payments to your Prepay Account remain available to pay the Charges for use of the Services for 365 days after the date of Activation (for Re-Charge Credit which is pre-loaded on your SIM card by us) or Payment. You must make a Payment of at least $20 at least once every 365 days in order to keep your Prepay Account active. Any unused balance on your Prepay Account is forfeited unless a Payment is made within the applicable period. All calls are charged by the minute, with part minutes rounded up to the next whole minute. Each call you make or other Service you use will be charged at the standard rate which applied when the call or your use of the Service commenced and will be subject to the specific terms and conditions for standard rates, unless specified otherwise in any specific terms and conditions of any Plan, Value Pack or other Service. No bill will be issued to you for the use of the Services but you may view your usage history online at Your 2degrees. We reserve the right to charge you a reasonable fee if you request information about your calls or other use of the Services. We will not be liable for any Charges you incur as a result of your assumption that a particular number is on a particular network (e.g. that an 022 number is held by a 2degrees customer).

9 (h) (i) (j) You can make payments of selected amounts to your Prepay Account by using one of the payment methods made available by us. You will only be able to use the Services (except to make 111 or toll free calls) if there is a credit balance in your Prepay Account. If the credit balance in your Prepay Account is used up while you are on a call or using a Service the call or Service will be automatically disconnected. All Re-Charge Credit on your Prepay Account is specific to your SIM card and is not transferable or refundable except as described in clause 7(e). 13. Consumer Guarantees Act If you are acquiring the Services for the purposes of a business, or if you indicate to us you are doing so, then you agree that the provisions of the Consumer Guarantee Act 1993 do not apply to any Services we provide to you under this Agreement. If you are acquiring the Services other than for the purposes of a business, then you may have the benefit of statutory guarantees under the Consumer Guarantees Act If the Act applies to you, all rights that you have under it will apply in addition to the rights set out in this Agreement. 14. Limitation of Liability To the greatest extent permitted by law we exclude any liability of any kind to you or anyone claiming through you for indirect, special or consequential loss, loss of profit, loss of revenue, loss of business or missed opportunity, loss of data, wasted expenditure or lost savings arising from or in connection with your use of the Services or otherwise in connection with this Agreement. If we are found liable to you under this Agreement or otherwise at law, to the greatest extent permitted by law, our liability to you or anyone claiming through you in respect of any event or series of related events will be limited to the lesser of $1,000 or the total amount paid by you to us for Services in the 6 months immediately prior to the date of your claim. 15. SIM card Any SIM card we issue to you or which otherwise comes into your possession remains our property. You must return it to us in good condition and within 30 days of termination of this Agreement, or otherwise if requested by us, and we reserve the right to charge you a reasonable fee if you fail to do so. 16. Equipment We do not warrant that any Mobile Phone or other equipment supplied to you by someone else, and which has not been approved by us, will be compatible with the 2degrees Network or will support your use of the Services.

10 If any Mobile Phone or other equipment supplied to you by someone else does not work properly, you need to contact the equipment supplier or manufacturer, rather than us, about the problem, which may be covered by the warranty (if any) offered by the relevant supplier or manufacturer. 17. Content Content which you may access or have provided to you, using the Services, is for your personal use only. You may not forward, copy, reproduce, re-sell or distribute Content to any third party or interfere with it in any way. You acknowledge that this obligation is also expressly for the benefit of our Agents and approved third party suppliers. We may monitor Content originating from you or accessed by you using the Services and remove any Content that we consider to be inappropriate, illegal or in breach of the rights of any third party. We are not responsible for any Content, or for any loss whatsoever that you may suffer in connection with your accessing any Content, that does not originate directly from us. You agree that you are responsible for ensuring that you have the right to send all Content that you send when using the Services. We may alter Content that you send using the Services in order to enable the delivery of that Content to the recipient. 18. Mobile Phone Numbers and Number Portability (e) We will allocate to you, or you may select from us (where this Service is available), a Mobile Phone Number, or it may be allocated to you by another Mobile Telecommunications Provider and Ported by you for use on the 2degrees Network. Subject to the terms of this Agreement you have full rights to use the Mobile Phone Number allocated to you. While you remain a 2degrees customer, your Mobile Phone Number will remain active for 365 days from the date of your last Payment of $20 or more. You may Port your Mobile Phone Number to another Mobile Telecommunications Provider. If you wish to do so, you must contact the Mobile Telecommunications Provider to whom you wish to Port to and you will be responsible for completing the Porting requirements of that Mobile Telecommunications Provider. We will comply with our obligations under the Terms for Local and Mobile Number Portability in relation to the Porting of the Mobile Phone Number to the other Mobile Telecommunications Provider. You will be responsible for all costs associated with Porting the Mobile Phone Number. Any Mobile Phone Number we allocate to you or you select from us is not owned by you and we may change any Mobile Phone Number we have allocated to you or you have selected from us at any time. We will try and give you reasonable notice of any change to your Mobile

11 Phone Number but will not be liable for any costs which you, or anyone else, may incur as a result of such change. (f) (g) If you change the Mobile Phone Number we allocate to you to another Mobile Phone Number selected by you from us (not being a Mobile Phone Number Ported by you), and we find the selected Mobile Phone Number for sale within six months of when the SIM card using that Number was activated, we may disconnect your connection(s) to the Services without prior notice. If you or we disconnect your connection(s) to the Services, and you have not Ported the Mobile Phone Number allocated to you by us or selected by you from us prior to disconnection, we may re-allocate the Mobile Phone Number to another customer. 19. Privacy You agree that we and our Agents can collect information about you and the way in which you are using the Services (among other things) and use the information as set out in our Privacy Policy. Please ensure you have read and understood our Privacy Policy, which forms part of this Agreement and is published by us at As detailed in our Privacy Policy, you agree that we and our Agents may send you marketing messages, electronic or otherwise, about (among other things) our rewards, special offers, competitions and other promotions, and those of our Agents or third parties which we consider may be of interest to you. You may unsubscribe from receiving marketing messages from us and our Agents at any time through Your 2degrees. 20. Terminating this Agreement or Suspending Services We may withhold, suspend or restrict a Service or your Prepay Account in any circumstances if we think it is reasonable or necessary to do so, including (without limitation) if we believe your Mobile Phone may cause interference or if you have failed to meet any of your responsibilities under this Agreement. If your Prepay Account is restricted you will be able to continue using the un-restricted Services and our normal charges will continue to apply. This Agreement and your Prepay Account will automatically terminate if you do not make a Payment of $20 or more within 365 days of Activation or your last Payment of $20 or more or if you Port your Mobile Phone Number to another Mobile Telecommunications Provider. (i) We may terminate this Agreement and your Prepay Account and/or any Service immediately without notifying you if you do not comply with your obligations under this Agreement;

12 (ii) you make abusive, offensive or nuisance calls or communications (including spam), or use any of the Services in an offensive way; (iii) (iv) (v) (vi) you are abusive or offensive to our staff, our Agents, or any other person; we suspect you of using the Services for any unlawful activity; you continue to use the Services in breach of our Fair Use Policy after we have requested that you cease doing so; or you tamper with or modify any SIM card issued to you by us. If this Agreement and/or your Prepay Account is either suspended or terminated: (i) (ii) (iii) (iv) (v) we may charge you a reconnection charge before you are able to recommence using the Services and you may need to buy a new Prepay SIM card; you may lose your allocated or selected Mobile Phone Number (unless you have Ported the Mobile Phone Number to another Mobile Telecommunications Provider); you will lose and we will own any credit balance in your Prepay Account; you may lose any data stored on your SIM card or contained in your voic account; and you must return your SIM card to us if we so request. (e) (f) (g) If your Prepay Account is restricted you will be able to continue using the un-restricted Services and our normal Charges for those Services will continue to apply. You may end this Agreement by ceasing to use the Services and returning your SIM card to us. Notwithstanding anything else in this Agreement, we may terminate this Agreement and your Prepay Account for any reason by giving you 30 or more days prior notice. If we do so, you will be entitled to a refund of any credit balance in your Prepay Account at the date of termination. 21. Rights and Responsibilities that Continue Ending this Agreement does not affect any rights and/or responsibilities which are intended to continue after this Agreement ends.

13 22. Liability of other Network Operators and Suppliers We have certain obligations towards other Network Operators and our dealers, Agents and suppliers. Those persons (and their officers, employees, contractors and agents) will not be liable to you or anyone else for any claims, costs, damages, losses or other liabilities of any kind arising in any way from the Services we provide or from your use of those Services. This clause creates an obligation for the benefit of other Network Operators and/or our dealers, Agents and suppliers and may be enforced or otherwise relied upon by them. 23. Notices and Changes to this Agreement and our Plans We may change this Agreement and/or vary any Service at any time. Changes will be published on Please check regularly for updates as continuing to use the Services after changes have been published will mean that you agree to this Agreement as amended. We will give you at least 10 working days prior notice, and where possible we will try and give you 30 days prior notice, if any changes we make materially increase our Charges or materially reduce the elements of a Service you are using or change this Agreement so that it has a material detrimental effect on you. We will notify you of these changes by publishing them on Transferring Responsibilities We may transfer to someone else all or any part of our obligations under this Agreement. 25. Waiver If we fail or delay to exercise any right or power under this Agreement, this will not be a waiver of that right or power. Any failure or delay will not prevent us from exercising that right or power in the future. 26. Each Term Separately Binding If any term of this Agreement is held to be illegal, unenforceable, invalid, or void this will not prejudice or effect the legality, enforceability or validity of the remaining provisions of this Agreement which will continue in full force and effect. 27. Force Majeure We will not be liable for any delay or failure to provide the Services or any other delay or failure in meeting our obligations under this Agreement to the extent that such delay or failure is caused by any event outside of our reasonable control. 28. Subcontracting

14 We may subcontract or delegate the performance of any of our rights or obligations under this Agreement to any related company, Agent, service provider or other third party. In that case, each of those companies, agents, service providers or third parties and their officers, employees, contractors and agents will have the benefit of any terms of this Agreement that confer benefits on us. 29. Disputes If you have any dispute with us in relation to any of the Services, or otherwise in connection with this Agreement, please contact Customer Care. 30. New Zealand Law This Agreement is governed by the laws of New Zealand and you submit to the jurisdiction of the New Zealand courts.