Thanks, like I said, it's been awhile since I used it so I can't remember how I configured it. Seems silly to default to that when they make it very clear you shouldn't be running an exit relay on most connections. But the whole discussion is moot as the OP is running a non-exit relay.
So he's only breaking the Verizon TOS in two ways (providing services to others through your connection and excessive bandwidth), not three ways (copyright infringement)