Document:

Exhibit
10.9.2

 

 

***
Confidential Information has been omitted and filed separately with the
Securities and Exchange Commission.

 

AMENDMENT #2 TO CARRIER SERVICE
AGREEMENT

 

ESCHELON
TELECOM, INC.

 

January 2, 2001

 

This is Amendment #2 to the Carrier Service Agreement between Global
Crossing Bandwidth, Inc., on behalf of itself and its affiliates that may
provide a portion of the services hereunder, formerly known as Frontier
Communications of the West, Inc. (“Global Crossing”) and Eschelon Telecom,
Inc. (“Eschelon”
or “Purchaser”),
dated August 25, 2000, as amended (the “Agreement”).

 

1.                                       Except as
otherwise stated, capitalized terms used herein shall have the same meaning as
set forth in the Agreement.

 

2.                                       Eschelon’s Link
Domestic rate, as last identified in the Agreement, shall be modified as set
out in Amended Exhibits L(a), attached to this Amendment.

 

3.                                       All
revised rates are attached hereto and made a part hereof and will be effective
on a go forward basis with Eschelon’s first full Billing Cycle following the
execution of this Amendment #2 by Global Crossing.

 

4.                                       The balance of
the Agreement and any executed amendments or addenda thereto not modified by
this Amendment #2 shall remain in full force and effect.

 

5.                                       This
Amendment #2 is effective as of the date signed by Global Crossing below.

 

 

	
  Global Crossing Bandwidth, Inc

  	
   

  
	
  formerly known as

  	
   

  
	
  Frontier Communications of the West, Inc.

  	
  Eschelon Telecom, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Barrett O. MacCheyne

  	
   

  	
  By:

  	
  /s/ R.A. Smith   7/9/01

  	
   

  
	
   

  	
  Barrett O. MacCheyne, President

  	
   

  	
  Richard Smith, President and

  	
   

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Chief Operating Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  7/10/01

  	
   

  	
  Date:

  	
  7/9/01

  	
   

  
								

 

 

01/02/2001

 

 

Amended Exhibit L(a)

 

Link
Card

Domestic
Services

Customer
Specific Pricing

 

 

Calls Originating And
Terminating In The Continental US:

 

	
  Commitment

  	
   

  	
  PRICING

  
	
  Rate

  	
   

  	
  ***

  

 

 

	
  Off-Shore

  	
   

  	
  ***

  	
   

  	
  (To Alaska, Hawaii, USVI/PR)

  
	
   

  	
   

  	
  ***

  	
   

  	
  (From Alaska, Hawaii, USVI/PR)

  
	
   

  	
   

  	
  ***

  	
   

  	
  (From Saipan)

  
	
   

  	
   

  	
  ***

  	
   

  	
  (From Guam)

  

 

Additional Terms
& Conditions:

•                  Billing
increments for (i) domestic and domestic off-shore calls are billed in six
second increments after a thirty second minimum, (ii) international calls are
billed in six second increments after a thirty second minimum (calls to Mexico
are billed in one minute increments).

 

•                  One time
non-refundable set up fee of *** for calling card

 

1Exhibit 10.9.3

 

 

***
Confidential Information has been omitted and filed separately with the
Securities and Exchange Commission.

 

AMENDMENT #3 TO CARRIER SERVICE
AGREEMENT

 

ESCHELON TELECOM, INC.

 

June 25, 2001

 

This is Amendment #3 to
the Carrier Service Agreement between Global Crossing Bandwidth, Inc., on
behalf of itself and its affiliates that may provide a portion of the services
hereunder (“Global Crossing”) and Eschelon Telecom, Inc. (“Eschelon”
or “Purchaser”),
dated August 25, 2000, as amended (the “Agreement”).

 

1.                                       Except
as otherwise stated, capitalized terms used herein shall have the same meaning
as set forth in the Agreement.

 

2.                                       Eschelon’s
Schedule of Ancillary Fees has been revised and is attached as Amended
Exhibit B. In addition, the Ancillary Fee schedule now includes Global
Crossing’s newest Toll-Free Automatic Provisioning Features for Eschelon’s
Toll-Free Services and is newly identified and incorpaorated in the Agreement
as Exhibit B(a).

 

3.                                       Eschelon’s
CarrierConnectsm Dedicated Internet Service Schedule, now know as IP
Transit Service, as last identified in the Agreement, is deleted in its
entirety and modified as set out in Amended Exhibits P and P(a), attached to
this Amendment.

 

4.                                       All
revised rates are attached hereto and made a part hereof and will be effective
on a go forward basis with Eschelon’s first full Billing Cycle following the
execution of this Amendment #3 by Global Crossing.

 

5.                                       The
balance of the Agreement and any executed amendments or addenda thereto not
modified by this Amendment #3 shall remain in full force and effect.

 

6.                                       This
Amendment #3 is effective as of the date signed by Global Crossing below.

 

 

	
  Global Crossing
  Bandwidth, Inc

  	
  Eschelon Telecom, Inc.

  
	
  formerly known as

  	
   

  
	
  Frontier Communications
  of the West, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Barrett
  O. MacCheyne

  	
   

  	
  By:

  	
  /s/
  R.A. Smith   7/9/01

  	
   

  
	
   

  	
  Barrett O. MacCheyne,
  President

  	
   

  	
  Richard Smith,
  President and

  	
   

  
	
   

  	
  North American Carrier
  Services

  	
   

  	
  Chief Operating Officer

  	
   

  
	
  Date:

  	
  7/10/01

  	
   

  	
  Date:

  	
  7/9/01

  	
   

  
								

 

 

06/25/25001

 

 

Amended Exhibit P

 

IP Transit Service

 

IP TRANSIT SERVICE permits direct access to
the Internet via Global Crossing’s nationwide IP network. Connectivity is
between Eschelon’s router and the Global Crossing router located in a Global
Crossing IP POP. This Exhibit describes the specific terms, conditions and
rates applicable to the Global Crossing IP Transit Service ordered as part of
the Carrier Service Agreement dated August 25, 2000 between Eschelon and
Global Crossing (hereinafter the “Master Agreement”). In the event of any
conflict between this Exhibit and the Master Agreement, the terms of this
Exhibit shall control.

 

1.                                       TERM.

 

1.1                                 Each
circuit shall have a specific in-service term commitment of *** years, which
shall be separate and distinct from the term of the Master Agreement. Upon
expiration, non-renewal or early termination of the Master Agreement, except if
the Master Agreement is terminated by a Party for the other Party’s uncured
breach, then, notwithstanding the term stated in the Master Agreement, the Master
Agreement will continue in effect with respect to the IP Transit Service as
long as a circuit installed under this Exhibit remains in operation.

 

1.2                                 Unless
one Party provides the other with at least 90 days prior written notice of its
intent not to renew a circuit after the circuit’s minimum commitment period
expires, then, unless the Parties agree otherwise in writing, a circuit shall
automatically renew for an additional one year period at Eschelon’s existing
rate at the time of the automatic renewal. The foregoing notice and renewal
process shall also apply for each additional renewal period.

 

2.                                       BILLING
AND PAYMENT; MINIMUM COMMITMENTS.

 

2.1                                 Eschelon
shall pay Global Crossing for the IP Transit Service at the rates and charges
set out in the rate schedule attached to this Exhibit. Billing for a
circuit shall commence upon the earlier to occur of (i) 30 days following the
date Global Crossing notifies Eschelon, in writing or via electronic
transmission, that the ordered circuit capacity is available from Global
Crossing (regardless of whether or not Eschelon’s Interconnection Facilities
[defined in paragraph 5.2 below] are installed and operational), or (ii) the
date the ordered circuit capacity is first utilized by Eschelon (the “Service
Date”).

 

2.2                                 Monthly
recurring charges (“MRC”) shall be invoiced by Global Crossing
on a monthly basis in advance and non-recurring charges shall be invoiced in
arrears. If the Service Date for any circuit falls on a day other than the
first day of any Billing Cycle, the initial charge to Eschelon shall consist
of: (i) the pro-rata portion of the applicable monthly charge covering the
period from the Service Date to the first day of the subsequent Billing Cycle,
and (ii) the monthly charge for the following Billing Cycle. Payment terms are
set out in the Master Agreement.

 

2

 

2.3                                 The
pricing in this Exhibit is limited to the IP Transit Service provided from the
“on-net” nodes set out in the Global Crossing IP POP List and SONET POP list,
which lists may, at Global Crossing’s discretion, be changed from time to time.
Global Crossing reserves the right to charge Eschelon for backhaul facilities
if “off-net” routing or special “on-net” routing is agreed to by Global Crossing.
If Global Crossing’s cost in providing the IP Transit Service is increased due
to circumstances beyond its reasonable control, then Global Crossing may revise
the rates and charges in this Exhibit upon 30 days written notice to Eschelon.
Eschelon may cancel, without further liability (other than to pay for the
circuit through the date of cancellation), any circuits subject to a
rate/charge increase (other than increases resulting from governmental or
regulatory assessments) upon written notice to Global Crossing given no later
than 30 days after Eschelon’s receipt of the increase notice.

 

2.4                                 If
a circuit is canceled after installation but prior to expiration of its minimum
term commitment, except if canceled by Eschelon (i) under paragraph 2.3 above (ii)
for Global Crossing’s uncured breach, or (iii) because it is replaced with a
circuit of equal or greater charge, Eschelon shall be liable for, and shall pay
to Global Crossing, an early termination fee in an amount equal to the
applicable monthly per circuit minimum recurring charge times the number of
months remaining on the unexpired term commitment (whether the initial or a
renewal term) for the circuit.

 

2.5                                 In
addition to forecasts for other Services that may be required under the Master
Agreement or any attachment thereto, Eschelon must supply Global Crossing with
a six-month rolling forecast, updated quarterly, for IP Transit Service. The
forecast must include information regarding anticipated capacity requirements
by city. The forecasts must be provided on the first business day of each
quarter of the calendar year, and shall cover the six-month period beginning
with the first day of the subsequent quarter of such calendar year (e.g. on or
about January 1, Eschelon shall provide Global Crossing with a forecast
covering April 1 thru September 30). In the event Eschelon fails to
submit a forecast in accordance with this provision, or the forecast which is
submitted did not reasonably estimate the volume of Eschelon’s actual IP
Transit Service, then Eschelon shall have waived its right to receive any
credit for the affected month under the provisions of Section 3 hereof.

 

3.                                       SERVICE
LEVEL AGREEMENT AND CREDITS.

 

3.1                                 The
following Service Level Agreement (SLA) applies to all IP Transit circuits with
term commitments of at least one year. The SLA covers (i) the router port in
the Global Crossing IP-POP (and, if applicable, the SONET backhaul circuit),
which connects directly to Eschelon’s local access circuit, (ii) the Global
Crossing network backbone interconnecting the Global Crossing IP-POPs, and
(iii) supporting systems within Global Crossing’s control, which provide domain
name routing and other functions which enable Eschelon to logically interact
with the network. This SLA specifically excludes (a) the local circuit between
Eschelon’s premises and the Global Crossing SONET POP or IP-POP, (b) customer
premise equipment either owned by Eschelon or provided through Global Crossing,
(c) connections between Global Crossing’s network and other Internet service
providers, (d) other Internet service provider networks, (e) force majeure
events, (f) scheduled maintenance or outages or emergency interruptions, (g)
credits owed in the events Eschelon fails to submit forecasts in accordance
with section 2.5, and (h) any act or omission on the part of Eschelon,
third party contractors or vendors or any other entity over which Eschelon
exercises control or has the right to exercise control.

 

3

 

A.                                   Network
Availability of 99.9% measured on a monthly basis for Global Crossing’s IP
access ports and backbone network in the contiguous United States.

 

B.                                     Average
monthly round-trip transmission latency of no more than 85 milliseconds within
Global Crossing’s backbone in the contiguous United States.

 

C.                                     Less
than 1% packet loss on the Global Crossing IP backbone in the contiguous United
States.

 

3.2                                 The
entire liability of Global Crossing for all claims of whatever nature arising
out its failure to meet the SLA or otherwise related to its provision of the IP
Transit Service (including its negligence), shall be a credit as follows:

 

A.                                   For
service interruptions or network unavailability (the inability of Global
Crossing’s network to pass traffic between its IP-POPs) greater than 120
continuous minutes (hereafter an “Outage”), Eschelon will be eligible to
receive a credit computed in accordance with the following formula (the “Outage
Credit”):

 

	
  Outage Credit =

  	
  Hours of Outaqe - 2 hours

  	
  x Total MRC for Affected Circuit

  
	
   

  	
  720 hours

  	
   

  

 

The Outage Credit shall
apply to the charges for any circuit affected by an Outage; provided, however,
that if any portion of the affected circuit remains useable by Eschelon, the
Outage Credit shall not apply to that pro-rata portion of the mileage. The
duration of each Outage shall be calculated in hours and shall include
fractional portions thereof. An Outage shall be deemed to have commenced upon
verifiable notification thereof by Eschelon to Global Crossing, or, when
indicated by network control information actually known to Global Crossing
network personnel, whichever is earlier. Each Outage shall be deemed to
terminate upon restoration of the affected circuit as evidenced by appropriate
network tests by Global Crossing. Global Crossing shall give notice to Eschelon
of any scheduled outage as early as is practicable, and a scheduled outage
shall under no circumstance be viewed as an Outage hereunder.

 

3.3                                 Outage
Credits shall not be granted if the malfunction of any end-to-end circuit is
due to an Outage or other defect occurring in Eschelon’s Interconnection
Facilities.

 

3.4                                 All
Outage Credits shall be credited on the next monthly invoice for the affected
circuit after receipt of Eschelon’s written request for credit, provided that
Eschelon timely reported the IP Transit Service failure. Written request must
be received within thirty (30) days of the SLA failure event. The total of all
Outage Credits applicable to or accruing in any given month shall not exceed
the 40% of the amount payable by Eschelon to Global Crossing for that same
month for such circuit.

 

3.5                                 The
Outage Credits described in this Section 3 shall be the sole and exclusive
remedy of Eschelon in the event of any failure of Global Crossing to comply
with the SLA, and under no circumstance shall such a failure be deemed a breach
by Global Crossing under the Master Agreement.

 

4

 

4.                                       RATES AND
CHARGES.

 

The applicable Monthly
Recurring Charges (“MRC’s”), Non-Recurring Charges (“NRC’s”) and other charges
for IP Transit Service are set forth on subdivision (a) of this Exhibit. Early
termination of any circuit is subject to an early termination fee as described
in Section 2.4 hereof. All charges are invoiced in U.S. dollars and paid
in U.S. dollars.

 

Upon signature of a
Service Request (SR) by Eschelon, the Parties agree that the SR constitutes a
firm circuit order. A cancellation fee, as listed in subdivision (a) of this
Exhibit, shall apply if Eschelon’s cancels such ordered circuit(s) prior to the
Service Date. An order cannot be cancelled on the Service Date. All
cancellation requests must be in writing. An order is considered cancelled when
Global Crossing receives the written notice. The written notification cannot be
retroactive.

 

5.                                       CIRCUIT AVAILABILITY
DATE; INTERCONNECTION FACILITIES.

 

5.1                                 Upon
receipt of a complete and accurate service order for a circuit, Global Crossing
shall notify Eschelon of its target date for the delivery of each circuit (the “Estimated
Availability Date”). Global Crossing shall use reasonable efforts to
install each circuit on or before the Estimated Availability Date, but the
inability of Global Crossing to deliver a circuit by such date, shall not be a
breach by Global Crossing under the Master Agreement. If Global Crossing fails
to make any circuit available within 90 days after acceptance by Global
Crossing of the service order with respect to such circuit, Eschelon’s sole
remedy shall be to cancel the service order which pertains to such circuit upon
ten days prior written notice to Global Crossing.

 

5.2                                 Within
the Global Crossing IP node where Eschelon orders circuits, Global Crossing
shall provide appropriate equipment necessary to connect the circuits to
Eschelon’s Interconnection Facilities. If Eschelon desires to install its own
equipment in one or more IP or SONET POP, and Global Crossing, in its sole
discretion, agrees to such installation, the Parties shall execute a colocation
agreement acceptable to both Parties. Eschelon agrees that Eschelon’s Interconnection
Facilities shall connect to the circuits provided by Global Crossing hereunder
at the network interface points located in the IP and SONET POPs. As used
herein, the term “Interconnection Facilities” shall mean transmission capacity
provided by Eschelon or its third party supplier to extend the circuits
provided by Global Crossing from a SONET or IP POP to any other location.

 

6.                                       GLOBAL
CROSSING ACCEPTABLE USE AND SECURITY POLICIES.

 

6.1                                 Eschelon
and its customers shall comply with Global Crossing’s Acceptable Use and
Security Policies (collectively, the “Policy”), which Policy Global Crossing
may modify at any time. The current, complete Policy is available for review at
http://www.globalcrossing.com/aup
(Global Crossing may change the Policy and website address via electronic
notice). Without limiting the Policy, generally, neither Eschelon nor its
customers may use Global Crossing’s network, machines, or services in any
manner which:

 

5

 

(i)                                     violates
any applicable law, regulation, treaty, or tariff;

(ii)                                  violates
the acceptable use policies of any networks, machines; or services which are
accessed through Global Crossing’s network; or

(iii)                               infringes
on the intellectual property rights of others.

 

Prohibited activity
includes, but is not limited to, unauthorized use (or attempted unauthorized
use) of any machines or networks; denial of service attacks; falsifying header
information or user identification or information; monitoring or scanning the
networks of others without permission; sending unsolicited bulk e-mail;
maintaining an open mail relay; collecting e-mail addresses from the Internet
for the purpose of sending unsolicited bulk e-mail or to provide collected
addresses to others for that purpose; and transmitting or receiving
copyright-infringing or obscene material.

 

6.2                                 Eschelon
and its customers are responsible for the security of their own networks and
machines. Global Crossing assumes no responsibility or liability for failures
or breach of Eschelon-imposed protective measures, whether implied or actual.
Abuse that occurs as a result of Eschelon’s systems or account being
compromised may result in suspension of the IP Transit Service or account
access by Global Crossing. If a security related problem is escalated to Global
Crossing for resolution, Global Crossing will resolve the problem in accordance
with its then-current Policy. Without limiting the Policy, generally, the
following activities are prohibited:

 

(i)                                     fraudulent
activities of any kind;

(ii)                                  network
disruptions of any kind; and

(iii)                               unauthorized
access, exploitation, or monitoring.

 

6.3                                 Eschelon
shall be responsible for enforcing the Policy for any third parties (including
its customers) accessing the Internet through Eschelon’s use of the Network
Services; and shall defend and indemnify Global Crossing with respect to claims
related to such third party access.

 

6.4           Global Crossing reserves the right to
suspend the IP Transit Service for Eschelon’s or its customers’ failure to
comply with the requirements of Global Crossing’s then-current Policy. Further,
Global Crossing may terminate the IP Transit Service for recurring violations
of the Policy by Eschelon or its customers.

 

6

 

Amended Exhibit
P(a)

 

IP Transit Service Rate Schedule

 

1.                                       Monthly
Recurring Charges (MRC)

Customer Specific Pricing

 

A.                                   T-1
IP Transit Pricing (MRC) $ Per Full T-1

 

	
  Aggregate # of T-1s

  	
   

  	
  Pricing

  	
   

  
	
  1-49 T-1s

  	
   

  	
  ***

  	
   

  
	
  50+ T-1s

  	
   

  	
  ***

  	
   

  

 

B.                                     DS-3
/ OC-x Committed Bandwidth IP Transit Pricing (MRC) $ Per Mbps

 

	
  Aggregate Capacity of all

  Installed DIA circuits

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  15 - 45 Mbps†

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  46 - 249 Mbps†

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  250 - 499 Mbps†

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  500 + Mbps†

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

†In order to qualify for
a volume price discount on all installed circuits, Eschelon must notify Global
Crossing in writing that Eschelon has qualified or will qualify for a reduced
price based on an increase in committed bandwidth. The new price, as defined by
the schedule above, will take effect in the first full Billing Cycle that
the new volume level has been satisfied as long as written notification is
received at least 15 days prior to the beginning of that Billing Cycle. No
retroactive credits will be applied.

 

2.                                       Non-Recurring
Charges (NRC)

 

	
   

  	
   

  	
  Minimum

  Bandwidth**

  	
   

  	
  Term of
  Agreement Install

  Charge

  	
   

  	
  Change 

  Fee***

  	
   

  	
  Cancellation
  

  Fee

  	
   

  
	
  Port

  	
   

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  T-1

  	
   

  	
  1.544 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  DS-3

  	
   

  	
  10 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  OC-3

  	
   

  	
  45 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  OC-12

  	
   

  	
  160 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  OC-48*

  	
   

  	
  500 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Fast Ethernet*

  	
   

  	
  20 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Gigabit
  Ethernet*

  	
   

  	
  250 Mbps

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

Notes:

 

*OC-48, Fast Ethernet and
Gigabit Ethernet ports are available at select locations only.

**For DS-3 circuits and
above, bandwidth can be purchased in increments of 5 Mbps above the minimum to
the maximum bandwidth of the applicable circuit.

***Changes to ports
requiring new port installation will be assessed install charge for a new port.

 

7

 

3.                                      Burstable
Billing Calculation and Charqes

 

A.                                   Burstable
billing is available on DS-3 circuits and above. For Burstable billing, the
table above represents the committed bandwidth rate. The bursted bandwidth is
derived from a 95/5 calculation as described below. The bandwidth utilized over
and above the committed bandwidth amount, the bursted bandwidth, will be billed
at 120% of the committed bandwidth rate as described below. Volume price breaks
do not apply if volume threshold is surpassed due to bursted bandwidth.

 

B.                                     Upon
completion of each Billing Cycle during the Term, Global Crossing shall
calculate the Bursted Bandwidth Charge for such Billing Cycle applicable to
each circuit for which Eschelon has ordered burstable billing according to the
following formula:

 

(Bursted Bandwidth* -
Committed Bandwidth) x (Committed Bandwidth MRC x 1.20)

 

* Bursted Bandwidth shall
be calculated as follows:

 

•                                          Global
Crossing shall poll the Global Crossing routers for ingress and egress usage on
each respective circuit approximately every five minutes. The higher usage
number (i.e., ingress or egress) for each poll shall be stack ranked. The top
5% of the usage numbers shall be discarded. The next highest measurement shall
constitute the Bursted Bandwidth for the applicable circuit for the applicable
Billing Cycle.

 

•                                          Bursted
Bandwidth usage shall not be factored into the aggregate volume of committed
bandwidth capacity for purposes of altering Eschelon’s committed bandwidth
monthly recurring charge volume tier as set forth in this rate schedule. The
outage credit set forth in the Exhibit shall not apply to Bursted Bandwidth.

 

8

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