Document:

Exhibit 10.6

 

(Originally filed as Exhibit 10.8 to Form 10,
File No. 0-50706)

 

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

 

MCI
WORLDCOM

 

CARRIER GLOBAL SERVICES AGREEMENT

 

	
   

  	
  ESCHELON
  TELECOM, INC.

  	
   

  	
   

  	
  MCI
  WORLDCOM COMMUNICATIONS, INC.

  
	
   

  	
  /s/ Satish C. Tiwari

  	
   

  	
   

  	
  /s/ Frank Grillo

  	
   

  
	
   

  	
  Company
  Representative Signature

  	
   

  	
   

  	
  MCI WorldCom
  Communications Signature

  	
   

  
	
   

  	
  VP
  Engineering and Network Implementation

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title -
  Please Print

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
  Satish C. Tiwari

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Company
  Representative Name Please

  	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
  Print

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    8/8/00

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  	
  Date

  	
   

  
	
   

  	
  703 2nd
  Avenue South, Suite 1200

  	
   

  	
   

  	
  201 Spear
  Street, 9th Floor

  	
   

  
	
   

  	
  Company
  Address (for notice purposes)

  	
   

  	
   

  	
  Company
  Address (for notice purposes)

  	
   

  
	
   

  	
  Minneapolis,
  Minnesota 55402

  	
   

  	
   

  	
  San
  Francisco, California 94105

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Main
  Telephone Number

  	
   

  	
   

  	
  Billing ID

  	
   

  

 

This Global
Services Agreement, (the “GSA” or “Agreement”), is made by and between MCI WORLDCOM Communications, Inc., a Delaware corporation
with offices at 500 Clinton Center Drive, Clinton, Mississippi 39056, (“MCI
WorldCom Communications”) and Eschelon Telecom, Inc.,
a Delaware corporation with offices at 730 2nd Avenue South, Suite 1200,
Minneapolis, Minnesota 55402 (“Customer”). MCI WorldCom Communications is
acting on behalf of each MCI WorldCom Communications affiliate to the extent
that services referred to in this GSA are provided by one or more such
affiliates. This GSA incorporates by reference the attached schedules (referred
to collectively herein as the “GSA Schedules”). MCI WorldCom Communications or
the providing affiliate (“MCI WorldCom”) shall provide to Customer and Customer
shall purchase from MCI WorldCom those service(s) and associated equipment (the
“Services”) described in Schedule Three through Schedule Eight of this
Agreement (the “Service Schedules”) at the rates, discounts, and other terms
and conditions described in the Service Schedule for the applicable Service. By
signing this cover sheet, MCI WorldCom Communications and Customer agree to be
bound to all the terms and conditions of this Agreement.

 

The GSA
Schedules attached to this Agreement are as follows (check appropriate boxes):

 

	
  ý

  	
   

  	
  Schedule One

  	
   

  	
  Term, Global
  Volumes and Discounts

  
	
  ý

  	
   

  	
  Schedule Two

  	
   

  	
  Master Terms
  and Conditions

  
	
  ý

  	
   

  	
  Schedule
  Three

  	
   

  	
  United
  States Tariffed Services

  
	
  ý

  	
   

  	
  Schedule
  Four

  	
   

  	
  United
  States Enhanced Services

  
	
  o

  	
   

  	
  Schedule
  Five

  	
   

  	
  United
  States Local Services

  
	
  o

  	
   

  	
  Schedule Six

  	
   

  	
  Non-US
  Services

  
	
  o

  	
   

  	
  Schedule
  Seven

  	
   

  	
  Equipment

  
	
  ý

  	
   

  	
  Schedule
  Eight

  	
   

  	
  Other
  Services

  

 

MCI WORLDCOM CONFIDENTIAL

 

 

This Agreement shall be of no
force and effect and the offer contained herein shall be withdrawn unless this
Agreement is executed by Customer and delivered to MCI WorldCom on or before
August 15, 2000.

 

 

SCHEDULE ONE

 

TERM, GLOBAL VOLUMES AND DISCOUNTS

 

1.             Term.
The “Term” of this Agreement will begin upon the Commencement Date and continue
for a period of twenty-seven (27) months following the expiration of the Ramp
Period (as defined below). The rates, charges, credits and discounts for the
Services contained herein will be effective the first day of the second full
billing cycle following the execution and delivery of this Agreement by
Customer to MCI WorldCom (the “Services Effective Date”). The “Ramp Period” shall
commence on the Commencement Date and continue for a period of nine (9) months
following the Services Effective Date. Customer will not be subject to any
minimum usage requirements during the Ramp Period.

 

2.             Selected
Definitions.

 

2.1 “Base Rates” shall mean (i) for Services based on standard Tariff
rates, the Tariff rates as reduced by the discounts (if any) provided to
Customer pursuant to this Agreement; (ii) for non-Tariffed Services, the MCI
WorldCom standard rates as reduced by the discounts (if any) provided to
Customer pursuant to this Agreement; (iii) for Services as to which a specific
rate is set forth herein, such rate; or (iv) for Services for which no specific
rates or discounts are set forth herein, the rates set forth in the Tariffs following
application of all applicable Tariffed discounts, or MCI WorldCom’s standard
rates, if no rate is set forth in the Tariff, following application of all
applicable standard discounts.

 

2.2 “Commencement Date” shall mean the date on which Customer signs
this Agreement.

 

2.3 “Monthly Period” shall mean the monthly billing period for Services
under this Agreement.

 

2.4 “Services” shall mean any one or more of those telecommunications
services provided to Customer pursuant to this Agreement or the Tariff.

 

2.5 “Total Usage Charges” shall mean Customer’s Usage Charges for all
Services provided under this Agreement.

 

2.6 “Tariff’ shall mean the public tariffs on file with the Federal
Communications Commission or state public utilities commissions or other domestic
or foreign governmental bodies governing the rates and/or terms ands conditions
of Services that are subject to tariff filings.

 

2.7 “Usage Charges” shall mean Customer’s recurring usage charges for
one or more Services provided under this Agreement calculated at Base Rates.
Usage Charges do not include the following: (i) taxes and tax related
surcharges; (ii) charges for equipment and collocation, including charges for
Services under Schedule Seven - Equipment; (iii) charges incurred where MCI WorldCom
or an MCI WorldCom affiliate acts as agent for Customer in the acquisition of
goods or services;

 

 

(iv) standard
non-recurring charges; (v) calling card surcharges (except as otherwise
expressly provided for herein); (vi) monthly recurring non-usage charges; (vii)
other Tariffed charges; and (viii) other charges expressly excluded in the
applicable Schedule to the Agreement.

 

3.             Minimum
Volume Requirement. During each Monthly Period of the Term, Customer’s
Total Usage Charges under this Agreement must equal or exceed *** (the “Monthly
Minimum”).

 

4.             Underutilization.
If, in any Monthly Period of the Term, Customer’s Total Usage Charges are less
than the Monthly Minimum, then Customer will pay: (1) all accrued but unpaid
Usage Charges and other charges incurred by Customer; and (2) an
underutilization charge (which Customer hereby agrees is reasonable) equal to
the difference between Customer’s Total Usage Charges during such Monthly
Period and the Monthly Minimum.

 

5.             Rates
and Discounts for the Services. Rates and discounts for specific Services
are provided in the applicable Service Schedule. Except as expressly provided
to the contrary, the rates set forth are in lieu of, and not in addition to,
any discounts, promotions and/or credits (Tariffed or otherwise). For Services
not specifically set forth, including but not limited to, all dedicated access
and egress charges and all other charges related to said access and egress not
specifically set forth, Customer will be charged MCI WorldCom’s standard rates.
References in this Agreement to standard Tariffed rates and/or discounts refer
to the corresponding standard rates and/or discounts set forth in the
applicable Tariffs for such Service(s). Unless otherwise specified in this
Agreement, the rates set forth in this Agreement do not include, and the
discounts set forth in this Agreement do not apply to, the following: (i)
access or egress (or related) charges imposed by third parties; (ii) standard
non-recurring charges and monthly recurring non-usage charges; (iii) calling
card surcharges (unless expressly provided for herein); (iv) taxes or tax-like
surcharges; (v) other Tariffed charges; and (vi) other charges expressly
excluded in the applicable GSA Schedule.

 

6.             Termination
Liability. If (1) Customer terminates this Agreement during the Term for
reasons other than to take service under another arrangement with MCI WorldCom
having equal or greater term and volume requirements, or (2) MCI WorldCom
terminates this Agreement in accordance with Section 7.2(f) of Schedule Two,
Customer will pay: (a) all accrued but unpaid Usage Charges and other charges
incurred through the date of such termination; including any Equipment charges
under Schedule Seven; and (b) an amount (which Customer hereby agrees is reasonable)
equal to *** of the aggregate of the Monthly Minimum(s) (and a pro rata portion
thereof for any partial Monthly Period ) that would have been applicable for
the remaining unexpired portion of the Term on the date of such termination, in
full, without setoff or deduction plus (c) the aggregate termination charges,
payable to any third party suppliers, if any, for which MCI WorldCom is or
becomes contractually liable in connection with such termination.

 

7.             Quality
Assurance. Notwithstanding the provisions of Section 6 (“Termination
Liability”) above, Customer shall be permitted to terminate during the Term,
without liability or further obligation, except for charges incurred up to the
date of termination, a circuit that experiences “MCI WorldCom-caused” quality
deficiencies that are demonstrated by Customer to affect adversely and
materially Customer’s telecommunications applications (such a termination under

 

 

this clause shall constitute a “Termination
for Quality Assurance”). As used herein, “MCI WorldCom-caused” shall mean MCI
WorldCom acts or omissions regarding the provision of a circuit to Customer. A
Termination for Quality Assurance shall not be effective unless Customer has
reported troubles on a circuit-specific, ANI basis to (and received a corresponding
trouble ticket number from) MCI WorldCom’s Support Center and a period of not
less than thirty (30) days after receipt of Customer’s written notice of
termination has elapsed during which time MCI WorldCom fails to correct such
MCI WorldCom-caused quality deficiencies for such circuit. Such thirty (30) day
period shall commence upon MCI WorldCom’s receipt of Customer’s written notice
and will not re-commence if the same MCI WorldCom-caused quality deficiencies
occur again for such circuit during said thirty (30) day period.

 

8.             Business
Downturn or Divestiture. In the event of a business downturn beyond
Customer’s control or a divestiture of an affiliate of Customer that
significantly reduces the volume of network services required by Customer with
the result Customer will be unable to meet its revenue and/or volume
commitments under this Agreement (notwithstanding Customer’s best efforts to
avoid such a shortfall), MCI WorldCom and Customer will cooperate in efforts to
develop a mutually agreeable alternative proposal that will satisfy the
concerns of both parties and comply with all applicable legal and regulatory
requirements. By way of example and not limitation, such alternative proposals
may include changes in rates, nonrecurring charges, revenue and/or volume
commitments, discounts, the multi-year services period and other provisions.
Subject to all applicable legal and regulatory requirements, including the
requirements of the Federal Communications Commission and the Communications
Act of 1934 (as revised and amended), MCI WorldCom will prepare and file any
tariff revisions necessary to implement such mutually agreeable alternative
proposal. This provision shall not apply to change resulting from a decision by
Customer to: (i) reduce its overall use of telecommunications; or (ii) transfer
portions of its traffic or projected growth to carriers other than MCI
WorldCom. Customer must give MCI WorldCom sixty (60) days’ prior written notice
of the conditions it believes will require the application of this provision.
This provision does not constitute a waiver of any charges, including shortfall
charges, incurred by Customer prior to the time the parties mutually agree to
amend or replace this Agreement.

 

9.             Competitive
Evaluation. If, at any time beginning with the thirteenth (13th) Monthly
Period following the Services Effective Date, Customer receives a bona fide
offer from a telecommunications company to provide a package of
telecommunications services that is substantially similar to the range of MCI
WorldCom services offered under this Agreement, including, without limitation,
revenue commitments, term, volume, product mix, functionality, features,
credits offered, level of service and geographic breadth (a “Competitive Offer”),
and such Competitive Offer would result in an overall cost savings to Customer
of greater than *** (***%) over the then remaining term of this Agreement when
compared to the effective rates charged by MCI WorldCom hereunder, then MCI
WorldCom agrees to either match the Competitive Offer or to release Customer
from this Agreement. Customer shall have the right to invoke this provision
only once per year (starting with the thirteenth (13th) Monthly Period
following the Services Effective Date) during the term of this Agreement. If
MCI WorldCom does not elect to match the Competitive Offer within sixty (60)
days after it is presented to MCI WorldCom by Customer in writing (with
sufficient documentation of the Competitive Offer), (1) Customer shall be
released from its obligations under this Agreement and this Agreement shall be
deemed terminated as of the date which is ninety (90) days after (A) the
conclusion of the

 

 

sixty (60) day period specified
above, or (B) the date on which MCI WorldCom notifies Customer that it will not
match the Competitive Offer, whichever is earlier, and (2) Customer shall not
be responsible for the early termination charges set forth in Section 7(b)-(c)
of this Schedule 1, but Customer will be required, under Section 10.1 of this
Schedule 1, to *** applicable to any circuits that were installed less than
twelve (12) months prior to the date of such termination.

 

10.           ***
Charges. Commencing with the Services Effective Date and continuing to the
date of Termination of this Agreement, except as otherwise specified elsewhere
in this Agreement, MCI WorldCom agrees to *** of Services under this Agreement
excluding *** imposed by foreign PTTs and *** charges by third party providers
contracted for by Customer (collectively “***”). MCI WorldCom and Customer will
review on a periodic basis the *** to Customer during the Term. Notwithstanding
the foregoing, the *** during the Term shall not exceed ***.

 

10.1         Liability
for Termination of Newly Installed Services. In the event that Customer
cancels a Service Order (as defined in Schedule 2, Section 7.5 below) at any
time prior to twelve (12) months following the date of installation of the
circuit covered by such Service Order, MCI WorldCom will charge Customer an
amount equal to *** applicable to *** such circuit.

 

11.           Credits.

 

11.1         One-Time
Credit. Provided that Customer executes and delivers this Agreement to MCI
WorldCom no later than August 15, 2000, Customer will receive one-time credits
in the aggregate of *** Dollars ($***), which will be applied against Customer’s
Usage Charges in the second (2nd) Monthly Period of the Term following the
Effective Date.

 

 

SCHEDULE TWO

 

MASTER TERMS AND CONDITIONS

 

1.             Services.   MCI
WorldCom shall provide to Customer the Services described in the Service
Schedules attached to the Agreement at the applicable rates, discounts, and
other terms and conditions described in the applicable Service Schedule.
Certain Services are provided by MCI WorldCom to Customer pursuant to a Tariff
filed by MCI WorldCom in the local jurisdiction where such Service is provided
(“Tariffed Services”). This Agreement incorporates by reference the terms of
each such Tariff as they apply to such Tariffed Services. For Tariffed
Services, in the event of conflict between the terms of the applicable Tariff
and this Agreement, the order of precedence shall be: the applicable Service
Schedule, this Schedule Two, and then the applicable Tariff. For Services not
provided by MCI WorldCom pursuant to a Tariff, such Services shall be provided
in accordance with the terms and conditions of this Agreement. To the extent
that such terms and conditions are not provided in this Agreement, the terms
and conditions set forth in the US Tariff (as defined in Schedule Three) shall
be incorporated herein with respect to such Service if there is a US Tariffed
Service that corresponds to the non-Tariffed Service to the extent permissible
and not superseded by applicable local law and regulations. Customer is a
resale common carrier subject to the Communications Act of 1934, as amended.
The Agreement is
entered into pursuant to Section 211 of the Communications Act of 1934, as
amended. For non-Tariffed Services, in the event of conflict between this
Agreement and the US Tariff, the order of precedence shall be: the applicable
Service Schedule, this Schedule Two, and then the applicable US Tariff.
Notwithstanding anything in this Agreement to the contrary, MCI WorldCom may
adjust its rates or charges, or impose additional rates and charges, in order
to recover amounts it may be required by governmental or quasi-governmental
authorities to collect from or pay to others to support statutory or regulatory
programs during the course of this Agreement.

 

1.1           Detariffing.   If,
prior to the expiration of the Term of this Agreement, MCI WorldCom voluntarily
or involuntarily, as a result of government or judicial action, cancels, in
whole or in part, any Tariff on file, where the affected provisions prior to
such cancellation applied to any service(s) MCI WorldCom provides under this Agreement,
then effective on such cancellation and for the remainder of the Term, this
Agreement shall consist of the following, in order of precedence from (a)
through (c):

 

(a)           MCI
WorldCom Tariff provisions that remain in effect (“Effective Tariffs”), as MCI
WorldCom may amend from time to time in accordance with law; and

 

(b)           Specific
provisions contained in this Agreement that expressly apply in lieu of, or that
apply in addition to, provisions contained in Effective Tariffs and/or in MCI
WorldCom’s standard Guide to Services and Pricing (“Price Guide”); and

 

(c)           Provisions
contained in the Price Guide to the extent that (a) and (b) above are not
applicable.  MCI WorldCom may amend the
Price Guide from time to time

 

 

and will maintain the Price
Guide open for public inspection at one or more offices during normal business
hours. Immediately prior to the cancellation of any Tariff provisions
applicable to service(s) provided under this Agreement, MCI WorldCom shall
incorporate such provisions into the Price Guide and if MCI WorldCom fails to
incorporate any such provisions, such provisions shall be deemed incorporated
into this Agreement as if MCI WorldCom had so incorporated such provisions in
the Price Guide. In all events, the applicable rates and rate schedules shall
continue to be subject to any discounts, waivers, credits, or restrictions on
rate changes that may be contained in this Agreement for Tariffed Services.
Where rate and/or discount adjustments would have been made by reference to any
canceled Tariff rate, rate schedule, discount and/or discount schedule, these
adjustments shall instead be made by reference to the Price Guide. To the
extent that any adjustment to Tariffed rates, rate schedules, discounts and/or
discount schedules is permitted under this Agreement, such adjustment may be
made by MCI WorldCom to its Price Guide.

 

1.2           Effect
of Tariffing. If, at any time during the Term, MCI WorldCom tariffs any of
the non-Tariffed Services provided to Customer under this Agreement (each a “Newly
Tariffed Service”), Customer agrees that the Tariff shall govern with respect
to the Newly Tariffed Service and to incorporate such Newly Tariffed Service
into the appropriate Service Schedule. Such Service Schedule shall contain the
same rates, charges, discounts, term commitment, and volume commitment for the
Newly Tariffed Service as set forth herein.

 

2.             Payment
of MCI WorldCom Invoices. Unless otherwise specified in a GSA Schedule
attached hereto, all amounts due for Services shall be billed in U.S. Dollars.
Customer is required to pay MCI WorldCom for Services, including any applicable
underutilization charges and/or early termination charges, within thirty (30)
days after the date of MCI WorldCom’s invoice. Amounts not paid within thirty
(30) days after the date of the invoice will be considered past due and a
failure to perform a material obligation under this Agreement, and MCI WorldCom
may terminate this Agreement or the applicable GSA immediately upon written
notice of any sum past due or pursuant to the terms of any applicable Tariff.
Independent of such payment obligations, Customer shall make a separate claim
in writing, with adequate support, for any credit for service interruption to
which Customer believes itself entitled hereunder, and MCI WorldCom and
Customer will promptly address such claim. If Customer does not give MCI
WorldCom written notice of a dispute with respect to any charges within six (6)
months of the date an invoice was rendered, such invoice shall be deemed to be
correct and binding. Failure of MCI WorldCom to invoice Customer in a timely
manner for any amounts due hereunder shall not be deemed a waiver by MCI
WorldCom of its rights to payment therefor. Where an element of a Service is
considered to be rendered directly from a third party carrier to Customer and
where said carrier does not have a one- stop billing arrangement with MCI
WorldCom that allows MCI WorldCom to bill Customer on behalf of such third
party, Customer agrees to pay for said element directly to such third party
carrier.

 

2.1           MCI
WorldCom Billing. MCI WorldCom will use its best commercially reasonable
efforts to correctly invoice Customer for tariffed interstate and/or

 

 

international service within
one hundred twenty (120) days of the end of the monthly billing period in which
such services are rendered. This Section shall not apply to pass-through
charges of MCI WorldCom suppliers or subcontractors (i.e. PTT’s, LECs, etc.).

 

(a)           Failure
to Invoice. In the event that MCI WorldCom is unable to invoice Customer within
such time frame, MCI WorldCom will, to the extent possible, advise Customer in
writing. With such notice, MCI WorldCom can include an estimate of charges,
along with a request for partial payment, pending an invoice `true-up’ to occur
upon delivery of the complete invoice. Failure of MCI WorldCom to invoice
Customer in a timely manner for any amounts due hereunder shall not be deemed a
waiver by MCI WorldCom of its right to payment.

 

(b)           Invoice
Overcharges and Undercharges. If MCI WorldCom learns that it has incorrectly
invoiced Customer in excess of the amount that should have been charged, MCI
WorldCom will credit Customer’s account for such overcharge. If MCI WorldCom
learns that it has incorrectly invoiced Customer less than the amount that
should have been charged, MCI WorldCom will invoice Customer for the difference
between the correct charges and the charges actually invoiced. Charges for
service components that are not included in invoices covering the basic or main
services with which they are associated will be treated as an undercharge in
accordance with this paragraph 2.1(b) and not a failure to invoice as covered
by the paragraph 2.1(a) immediately above. 
MCI WorldCom will not credit Customer for an overcharge nor seek payment
from Customer for an undercharge if MCI WorldCom does not learn about such
overcharge or undercharge within two (2) years of rendering the incorrect
invoice.

 

3.             Taxes
and Access Charges.

 

3.1           Domestic
and International Taxes

 

(a) All
charges are exclusive of federal, state, local, and foreign sales, use, excise,
utility, gross receipts, value added taxes (VAT), other similar tax-like
charges and tax-related surcharges as provided in MCI WorldCom’s F.C.C. and
state tariffs, and other similar tax-like charges levied by any duly
constituted authority, which Customer agrees to pay.

 

(b) In the
event that Customer provides MCI WorldCom with a duly authorized exemption
certificate, MCI WorldCom agrees to exempt Customer from such taxes if and as
provided by applicable law, effective on the date the exemption certificate is
received by MCI WorldCom.

 

(c) Taxes
based on MCI WorldCom’s net income shall be the sole responsibility of MCI
WorldCom; provided that, if Customer is required by the laws of any foreign tax
jurisdiction to withhold income or profits taxes from any payment, Customer
shall, within 90 days of the date of such withholding, provide to MCI WorldCom
official tax certificates documenting remittance of such taxes to the relevant
tax authorities. Such tax certificates shall be in a form sufficient under the
U.S. Internal Revenue Code to document the qualification of such income or
profits tax for the foreign tax credit allowable against MCI WorldCom’s U.S.
corporation income tax, and shall be accompanied by an English translation.
Upon receipt of such certificates, MCI WorldCom will issue Customer a billing

 

 

credit for the amounts
represented thereby.

 

3.2           Pass-Through
Charges. Unless otherwise provided for in the applicable product description
contained in a GSA Schedule, MCI WorldCom will pass through to Customer, and
Customer shall be solely responsible for, any charges (including, without
limitation, installation charges), fees, taxes and terms and conditions of
service imposed by domestic and international access/egress service suppliers
in relation to the provision of Services, including, but not limited to, rate
fluctuations in tariffs, communications charges and access charges that are
imposed or enacted by access suppliers after the Services Effective Date.
Customer shall be responsible for any gains or losses associated with
fluctuations in the exchange rate and/or timing of payment where access charges
are billed in non-U.S. currency and are to be paid by Customers in U.S.
Dollars.

 

4.             Customer
Obligations.   In addition to the other obligations of
Customer contained in this Agreement, including, but not limited to, any
specific Customer obligations contained in a GSA Schedule, Customer shall be
responsible for the following obligations.

 

4.1           Customer-Obtained
Facilities. Customer is responsible for obtaining, installing, and
maintaining all equipment, software, wiring, power sources, telephone
connections and/or communications services necessary for inter-connection with
MCI WorldCom’s network or otherwise for use in conjunction with the applicable
Services (“Facilities”). Customer is responsible for ensuring that such
Facilities are compatible with MCI WorldCom’s requirements and that they
continue to be compatible with subsequent revision levels of MCI
WorldCom-provided equipment, software and services. MCI WorldCom is not
responsible for the availability, capacity and/or condition of any Facilities
not provided by MCI WorldCom. The Customer shall obtain and hereby grants to
MCI WorldCom all licenses, waivers, consents, or registrations necessary to
deliver, install, and keep installed at the Customer site the MCI WorldCom
equipment.

 

4.2           Security.
Customer shall, at its own expense, take all reasonable physical and
information systems security measures necessary to protect all equipment,
software, data and systems located on Customer’s premises or otherwise in
Customer’s control and used in connection with the Services, whether owned by
Customer, MCI WorldCom, or MCI WorldCom’s subcontractors. Customer acknowledges
and agrees that MCI WorldCom is not liable, either in contract or in tort, for
any loss resulting from any unauthorized access to or alteration of, theft,
destruction, corruption, or use of, Facilities used in connection with the
Services.

 

4.3           Customer
Sites. Customer agrees to provide MCI WorldCom and its subcontractors and
their respective employees and agents access to Customer’s sites where any
Services are provided (including access to associated equipment) as necessary
for MCI WorldCom and its subcontractors to perform the Services.

 

5.             Software
and Documentation. Software and related documentation provided by MCI
WorldCom to Customer in connection with the Services and not otherwise subject
to either a separate written agreement executed between MCI WorldCom and
Customer or to an accompanying shrink wrap license (collectively the “Software”)
is subject to the following:

 

(a) In
consideration for payment of any applicable fees, Customer is granted a

 

 

personal, non-exclusive,
non-transferable license to use the Software, in object code form only, solely
in connection with the Services for Customer’s internal business purposes on
Customer-owned or Customer-leased equipment (the “License”). Customer shall not
use the Software (i) in connection with the products and/or services of any
third party, or (ii) to provide services for the benefit of any third party,
including without limitation as a service bureau.

 

(b) Customer
may make one copy of the Software, other than the documentation, for archival
or back-up purposes only, provided that any copyright and other proprietary
rights notices are reproduced on such copy. Customer shall not make any copies
of documentation provided as part of the Software.

 

(c) Customer
shall not: (i) attempt to reverse engineer, decompile, disassemble or otherwise
translate or modify the Software in any manner; or (ii) sell, assign, license,
sublicense or otherwise transfer, transmit or convey Software, or any copies or
modifications thereof, or any interest therein, to any third party.

 

(d) All rights
in the Software, including without limitation any patents, copyrights and any
other intellectual property rights therein, shall remain the exclusive property
of MCI WorldCom and/or its licensors. Customer agrees that the Software is the
proprietary and confidential information of MCI WorldCom and/or its licensors
subject to the provisions of Section 6 (“Confidential Information”) below.

 

(e) Except to
the extent otherwise expressly agreed by the parties in writing, MCI WorldCom
has no obligation to provide maintenance or other support of any kind for the
Software, including without limitation any error corrections, updates,
enhancements or other modifications.

 

(f) The
License shall immediately terminate upon the earlier of: (i) termination or
expiration of this Agreement; (ii) termination of the Service(s) with which the
Software is intended for use; or (iii) failure of Customer to comply with any
provisions of this Section. Upon termination of any License, at MCI WorldCom’s
option, Customer shall promptly either (i) destroy all copies of the Software
in its possession, or (ii) return all such copies to MCI WorldCom, and in
either event provide a written officer’s certification confirming the same.

 

6.           Confidential
Information.

 

(a) Customer
shall protect all information received from MCI WorldCom or otherwise
discovered by Customer during the course of MCI WorldCom’s performance of the
Services hereunder, including without limitation all information relating to
MCI WorldCom’s technology, research and development, business affairs, pricing,
the terms of this Agreement, or such information of MCI WorldCom that may be
reasonably understood from legends, the nature of such information itself
and/or the circumstances of such information’s disclosure, to be confidential
and/or proprietary to MCI WorldCom or to third parties to which MCI WorldCom
owes a duty of non-disclosure (collectively the “Confidential Information”)
from disclosure to others, using the same degree of care used to protect
Customer’s own proprietary information of like importance, but in any case
using no less than a reasonable degree of care, and
shall further use such

 

 

Confidential Information only
for the purpose of this Agreement. Confidential Information may be disclosed in
written or other tangible form (including on magnetic media) or by oral, visual
or other means. Except as otherwise provided in Section 7 (“Software and
Documentation”), Customer may make such copies of Confidential Information in tangible
form as are reasonably required in connection with Customer’s use as permitted
under this paragraph.

 

(b) The
foregoing restrictions on use and disclosure of Confidential Information do not
apply to information that: (i) is publicly known at the time of MCI WorldCom’s
communication thereof to the Customer; (ii) is, or becomes publicly known,
through no fault of Customer subsequent to the time of MCI WorldCom’s
communication thereof to the Customer; (iii) is received by Customer free of
any obligation of confidence prior to the time such information is received by
Customer; provided however, that the Customer immediately informs MCI WorldCom
in writing to establish the Customer’s prior possession; (iv) is developed
independently by Customer independently of, and without reference to, the
Confidential Information or other information of MCI WorldCom; (v) is
rightfully obtained by the Customer from third parties authorized to make such
disclosure without restriction; or (vi) is identified in writing by MCI
WorldCom as no longer proprietary or confidential.

 

(c) In the
event Customer is required by law, regulation or court order to disclose any
Confidential Information, Customer will promptly notify MCI WorldCom in writing
prior to making any such disclosure in order to facilitate MCI WorldCom seeking
a protective order or other appropriate remedy from the appropriate body.
Customer agrees to cooperate with MCI WorldCom in seeking such order or other
remedy. Customer further agrees that if MCI WorldCom is not successful in
precluding the requesting legal body from requiring the disclosure of the
Confidential Information, it will furnish only that portion of the Confidential
Information which is legally required and will exercise all reasonable efforts
to obtain reliable assurances that confidential treatment will be accorded the
Confidential Information.

 

(d) At MCI
WorldCom’s option, Customer shall promptly either destroy all Confidential
Information in tangible form in its possession, or return all such copies to
MCI WorldCom, and in either event provide a written officer’s certification
confirming the same, promptly upon the earlier of: (i) MCI WorldCom’s written
request; or (ii) the expiration or earlier termination of this Agreement.

 

(e) The
Customer acknowledges that Confidential Information is unique and valuable to
MCI WorldCom, and that disclosure in breach of this Agreement will result in
irreparable injury to MCI WorldCom for which monetary damages alone would not
be an adequate remedy. Therefore, Customer agrees that in the event of a breach
or threatened breach of confidentiality, MCI WorldCom shall be entitled to
specific performance and injunctive or other equitable relief as a remedy for
any such breach or anticipated breach without the necessity of posting a bond.
Any such relief shall be in addition to and not in lieu of any appropriate
relief in the way of monetary damages.

 

7.             Termination.

 

7.1           Discontinuation
of Business. Either party may terminate this Agreement immediately upon
written notice to the other

 

 

party if such other party
dissolves, discontinues or terminates its business operations to which this
Agreement pertains or such other party makes any assignment for the benefit of
creditors.

 

7.2           Termination
by MCI WorldCom. MCI WorldCom may terminate this Agreement (or the
applicable portion thereof) immediately upon notice to Customer if (a) MCI
WorldCom is unable to obtain or maintain any U.S. or foreign governmental
license, waiver, consent, registration or approval needed to provide any
facility or Service hereunder; (b) the continued provision of a facility or
Service would contravene any local, state, national, foreign or international
regulation, law, or tariff or violate any policy of any MCI WorldCom
correspondent or interconnected earner; (c) interruption or termination of a
Service is necessary to prevent or protect against fraud or otherwise protect
MCI WorldCom’s personnel, agents, facilities, or services; (d) MCI WorldCom is
unable to continue to provide a third-party subcontractor’s, vendor’s or
interconnected carrier’s facility, component of equipment, or service for any
reason, provided, however, that where such third party has ceased to provide
any facility, equipment, or service, MCI WorldCom will exercise commercially
reasonable efforts to continue to provide to Customer a comparable facility,
equipment, or service by or through another vendor under comparable terms and
conditions; (e) MCI WorldCom discovers that Customer provided false information
to MCI WorldCom regarding Customer’s identity, credit-worthiness, or its
planned use of the Service(s); (f) Customer fails to perform a material
obligation under this Agreement, other than non-payment of Service, which
failure is not remedied within thirty (30) days of Customer’s receipt of
written notice thereof; or (g) Customer fails to pay an invoice for Services
under this Agreement within thirty (30) days after the date of MCI WorldCom’s
invoice.

 

7.3           Termination
of a Service Schedule. Either party may terminate a Service Schedule if
permitted to do so by the specific provisions of the applicable Service
Schedule.

 

7.4           Customer’s
Termination Liability. If (a) Customer terminates this Agreement during the
Term, for reasons other than (i) for Cause (as hereinafter defined) or (ii) to
take service under another arrangement with MCI WorldCom having equal or
greater term and volume requirements; or (b) MCI WorldCom terminates this
Agreement for Cause, then Customer will pay termination charges in accordance
with Schedule One. If Customer terminates a Service Schedule other than in
accordance with that Schedule; or (b) MCI WorldCom terminates a Service
Schedule in accordance with that Schedule, then Customer will pay termination
charges in accordance with the applicable Schedule. As used herein, “Cause”
shall mean a failure of the other party to perform a material obligation under
this Agreement which failure is not remedied by the defaulting party within
thirty (30) days after receipt of written notice thereof.

 

7.5           Service
Orders. Customer shall request the delivery of dedicated local access
services by executing a service order in form and substance satisfactory to MCI
WorldCom (the “Service Order”). The Service Order sets forth the place of
delivery, circuit contracted term, pricing and other details. All Service
Orders are subject to the terms and conditions of this Agreement. A separate
Service Order must be completed for each circuit ordered. Customer will be
responsible for payment of the rates and charges for the contracted term, as
set forth in each Service Order. Each Service Order shall survive the
termination

 

 

or expiration of this
Agreement; provided, however, that MCI WorldCom may terminate one or more
Service Orders if MCI WorldCom terminates this Agreement pursuant to Section 7
hereof. If Customer terminates a Service Order prior to the end of the service
term set forth in the Service Order for reasons other than for Cause or if MCI
WorldCom terminates a Service Order for Cause, then Customer will pay within
thirty (30) days after such termination, a “Service Order Termination Charge”
as follows: (i) if such termination occurs less than one (1) year into the term
of the Service Order, the monthly recurring charges for the remainder of such
year plus twenty percent (20%) of the monthly recurring charges for the
remainder of term; or (ii) if such termination occurs one (I) year or more into
the term of the Service Order, twenty percent (20%) of the monthly recurring
charges for the remainder of the term; provided, however, that if Customer is
meeting its Monthly Minimum, Customer may terminate any Service Orders for U.S.
domestic Services only without incurring the Service Order Termination Charge.
Notwithstanding a termination of a Service Order, the Agreement and other
Service Orders will remain in full force and effect unless expressly terminated
as permitted by this Agreement.

 

8.             Indemnification.

 

8.1           Subject
to the provisions of Section 9.2, Customer and MCI WorldCom agree to defend at
their expense, indemnify, and hold harmless each other from and against any
third party claims, suits, damages and expenses asserted against or incurred by
such party (“Indemnitee”) arising out of or relating to bodily injury to or
death of any person or loss of or damage to real or tangible personal property
or the environment to the extent that such claim, suit, damage, or expense was
proximately caused by any negligent act or omission on the part of the party
from whom indemnity is sought, its agents or employees (“Indemnifying Party”).
Notwithstanding any other provision of this Agreement, the Indemnifying Party
shall pay all damages, settlements, expenses and costs, including costs of
investigation, court costs and reasonable attorneys’ fees and costs (including
allocable costs of in-house counsel) incurred by the Indemnitee as set forth in
this Section 8.1, including, without limitation, reasonable attorneys’ fees and
costs (including allocable costs of in-house counsel) incurred in enforcing
this Agreement.

 

8.2           In
addition to Section 8.1, Customer agrees to defend, at its own expense, and
indemnify and hold harmless MCI WorldCom and its subcontractors (collectively
the “MCI WorldCom Indemnitees”), from and against any third party claims,
suits, damages and expenses asserted against or incurred by any of the MCI
WorldCom Indemnitees arising out of or relating to: (a) Customer’s use of any
Services or related products, data and documentation provided to Customer
hereunder;     and (b) Customer’s connection of any MCI WorldCom
product or service to any third party service or network, including without
limitation, damages resulting from unauthorized use of, or access to, MCI
WorldCom’s network. Notwithstanding any other provision of this Agreement,
Customer shall pay all damages, settlements, expenses and costs, including
costs of investigation, court costs and reasonable attorneys’ fees and costs
(including allocable costs of in-house counsel) incurred by MCI WorldCom
Indemnitees as set forth in this Section, including, without limitation, reasonable
attorneys’ fees and costs (including allocable costs of in-house counsel)
incurred in enforcing this Agreement.

 

 

9.             Disclaimer
of Certain Damages/Limitation of MCI WorldCom’s Liability.

 

9.1           Disclaimer
of Warranties. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT AND THE
GSA SCHEDULES, MCI WORLDCOM MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY
MCI WORLDCOM SERVICES, RELATED PRODUCTS, SOFTWARE OR DOCUMENTATION. MCI
WORLDCOM SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES, INCLUDING
WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR TITLE OR NONINFRINGEMENT OF THIRD PARTY RIGHTS.

 

9.2           Disclaimer
of Certain Damages. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
INDIRECT, CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES,
INCLUDING WITHOUT LIMITATION LOSS OF USE OR LOST BUSINESS, REVENUE, PROFITS, OR
GOODWILL, ARISING IN CONNECTION WITH THIS AGREEMENT, THE SERVICES, RELATED
PRODUCTS, SOFTWARE, DOCUMENTATION AND/OR THE INTENDED USE THEREOF, UNDER ANY
THEORY OF TORT, CONTRACT, INDEMNITY, WARRANTY, STRICT LIABILITY OR NEGLIGENCE,
EVEN IF THE PARTY HAS BEEN ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE
POSSIBILITY OF SUCH DAMAGES.

 

9.3           Limitation
of MCI WorldCom’s Liability. WITHOUT LIMITATION OF THE PROVISIONS OF
SECTION 9.2 ABOVE, THE TOTAL LIABILITY OF MCI WORLDCOM TO CUSTOMER IN
CONNECTION WITH THIS AGREEMENT SHALL BE LIMITED TO THE LESSER OF (A) DIRECT
DAMAGES PROVEN BY CUSTOMER OR (B) THE AMOUNT PAID BY CUSTOMER TO MCI WORLDCOM
UNDER THIS AGREEMENT FOR THE ONE (1) MONTH PERIOD PRIOR TO ACCRUAL OF THE MOST
RECENT CAUSE OF ACTION. THE FOREGOING LIMITATION APPLIES TO ALL CAUSES OF
ACTIONS AND CLAIMS, INCLUDING, WITHOUT LIMITATION, BREACH OF CONTRACT, BREACH
OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATION AND OTHER TORTS.
FURTHER, MCI WORLDCOM’S LIABILITY WITH RESPECT TO INDIVIDUAL MCI WORLDCOM
SERVICES MAY ALSO BE LIMITED PURSUANT TO THE TERMS AND CONDITIONS OF THE
APPLICABLE GSA SCHEDULE. CUSTOMER ACKNOWLEDGES AND ACCEPTS THE REASONABLENESS
OF THE FOREGOING DISCLAIMERS AND LIMITATIONS OF LIABILITY. NO CAUSE OF ACTION
UNDER ANY THEORY WHICH ACCRUED MORE THAN ONE (1) YEAR PRIOR TO THE INSTITUTION
OF A LEGAL PROCEEDING ALLEGING SUCH CAUSE OF ACTION MAY BE ASSERTED BY EITHER
PARTY AGAINST THE OTHER. HOWEVER, NOTHING IN THIS SECTION 9.3 SHALL LIMIT MCI
WORLDCOM’S LIABILITY: (A) IN TORT FOR ITS WILLFUL OR INTENTIONAL MISCONDUCT, OR
(B) FOR BODILY INJURY OR DEATH PROXIMATELY CAUSED BY MCI WORLDCOM’S NEGLIGENCE,
OR (C) LOSS OR

 

 

DAMAGE TO REAL PROPERTY OR
TANGIBLE PERSONAL PROPERTY PROXIMATELY CAUSED BY MCI WORLDCOM’S NEGLIGENCE.

 

10.           Compliance
with Laws. All Services are provided subject to applicable local laws and
regulation, including the applicable Tariffs and price lists of MCI WorldCom,
in the countries in which Service is provided. Customer is responsible for
complying with all laws and regulations including, without limitation, (i)
local license or permit requirements, (ii) export, import and customs laws and
regulations (such as the export and re-export controls under the U.S. Export
Administration Regulations and/or similar regulations of the U.S. or any other
country) which may apply to certain equipment, software and technical data
provided hereunder, and (iii) foreign corrupt practices acts. Notwithstanding
the foregoing, MCI WorldCom does not represent that any necessary import,
export or customs licenses or approvals will be granted with respect to
Services provided hereunder.

 

11.           Resale
of MCI WorldCom Services.

 

11.1         In
reselling Services under this Agreement, Customer agrees to sell and bill its
own services under Customer’s own name, identity or mark, and Customer further
agrees not to reference MCI WorldCom name or marks in any context involving
Customer’s furnishing of services to the public. In addition to other
applicable remedies, MCI WorldCom shall be entitled to seek injunctive relief
with respect to any violation of this Paragraph 11. Any opportunity to cure a
breach of this Paragraph shall be subject to MCI WorldCom’s reasonable
satisfaction as to the curability of the original injury caused by such breach
and the effectiveness of any attempted cure. MCI WorldCom’s right to enforce
this Paragraph as a material provision of this Agreement shall not in any
manner require a showing of financial, legal or other loss or injury to MCI
WorldCom of any kind

 

11.2         Customer
agrees that it will obtain and maintain any and all approvals to resell the
Services hereunder from the FCC, including requirements imposed by Section 214
of the Communications Act of 1934, as amended, and state regulatory bodies. In
the event Customer fails to obtain or maintain the appropriate approvals, MCI
WorldCom shall not be liable for any suspension of service or other delay or failure
to provide the Services.

 

11.3         Customer
shall have sole responsibility for interacting with its customers in all
matters pertaining to service, including the placing and handling of service
orders, service installation, operation and termination, dispute handling and
resolution, and billing and collection matters. MCI WorldCom shall incur no
obligation, nor shall it be deemed to have any obligation, to interact with
Customer’s customers and end users (“End Users”) for any reason or purpose.
Customer shall cooperate with MCI WorldCom as necessary to address and resolve
service-related issues and problems and shall impose upon its customers an
obligation to cooperate with Customer in addressing and resolving
service-related issues and problems.

 

11.4         Customer
understands and accepts that, as part of MCI WorldCom’s normal business policy
and practices and its obligations under law, MCI WorldCom will engage in
extensive marketing efforts in an attempt to sell its services to the public
and that such efforts will result in active competition with Customer for the
business of

 

 

users who are Customer’s End
Users or prospects, provided MCI WorldCom will not use Confidential Information
to actively compete with Customer. Accordingly, Customer further understands
and accepts that such competition by MCI WorldCom is in all respects fair and
proper and that Customer shall not complain, nor be heard to complain, of
business lost to MCI WorldCom. Under no circumstance shall any inference be
derived that MCI WorldCom’s entry into this Agreement with Customer means that
MCI WorldCom will restrict its efforts to compete against Customer in any way.

 

11.5         Customer
understands and accepts that no fiduciary relationship arises by virtue of this
Agreement and that, accordingly, MCI WorldCom incurs none of the obligations
that arise in such relationship as an incident of its fulfilling its
obligations under this Agreement. Further, Customer understands and accepts
that MCI WorldCom neither insures the profits for Customer nor guarantees the
success of Customer’s business as a result of Customer’s receipt of Services
under this Agreement.

 

12.           Miscellaneous.

 

12.1         Assignment.
Neither party may assign this Agreement or any of its rights hereunder without
the prior written consent of the other party, which consent shall not be
unreasonably withheld; provided however that either party may assign this
Agreement or any of its rights hereunder to an affiliate without the written
consent of the other party. Subject to the foregoing, in the event of any
assignment of this Agreement or any rights hereunder by either party, the
assigning party shall remain liable for the performance of its obligations
hereunder. Any attempted transfer or assignment of this Agreement by either
party not in accordance with the terms of this Section 12.1 shall be null and
void.

 

12.2         Governing
Law. This Agreement shall be governed by and construed in accordance with
the domestic laws of the State of New York without regard to its choice of law
principles, except to the extent the Communications Act of 1934, as amended,
applies.

 

12.3         English
Language. In the event of a conflict between this Agreement and any
subsequent translations, this English language version shall prevail.

 

12.4         Arbitration.
Not withstanding Tariffed rules for the arbitration of Customer payment
disputes, any and all disputes arising out of or related to this Agreement,
including, but not limited to, tort claims, shall be submitted to
J.A.M.S./ENDISPUTE for final and binding arbitration pursuant to the
J.A.M.S./ENDISPUTE Arbitration Rules and Procedures in effect on the date of
commencement of arbitration, and as modified by this Section. The arbitration
shall be conducted in accordance with the United States Arbitration Act, 9
U.S.C. 1 et seq. (“USAA”), notwithstanding any choice of law provision in this
Agreement. Each party shall bear the fees and costs it incurs in preparing and
presenting its own case. The parties agree that Minneapolis, Minnesota shall be
the location for the arbitration hearing. Any controversy over whether an issue
is arbitrable shall be determined by the arbitrator. The arbitrator shall have
no authority to award punitive or exemplary damages. The award may be confirmed
and enforced in any court of competent jurisdiction. All post-award proceedings
shall be governed by the USAA.

 

12.5         Enforceability.
If any paragraph or clause of this Agreement shall be held to be invalid or
unenforceable by any body or entity of competent jurisdiction, then the
remainder

 

 

of the Agreement shall remain
in full force and effect and the parties shall promptly negotiate a replacement
provision or agree that no replacement is necessary.

 

12.6         No
Waiver. Neither party’s failure, at any time, to enforce any right or
remedy available to it under this Agreement shall be construed to be a waiver
of such party’s right to enforce each and every provision of this Agreement in
the future.

 

12.7         Notice.
Any notice required to be given under this Agreement shall be in writing, in
English, and transmitted via facsimile, overnight courier, hand delivery or
certified or registered mail, postage prepaid and return receipt requested, to
the parties at the addresses on the signature page of this Agreement or such
other addresses as may be specified by written notice. Notice sent in
accordance with this Section shall be deemed effective when received. A Party
may from time to time designate another address or addresses by notice to the
other party in compliance with this Section.

 

12.8         Force
Majeure. Any delay in or failure of performance by either party under this
Agreement (other than a failure to comply with payment obligations) shall not
be considered a breach of this Agreement if and to the extent caused by events
beyond the reasonable control of the party affected, including but not limited
to acts of God, embargoes, governmental restrictions, strikes (other than those
only affecting Customer), riots, wars or other military action, civil
disorders, rebellion, fires, floods, vandalism, or sabotage. Market conditions
and/or fluctuations (including a downturn of Customer’s business) shall not be
deemed force majeure events. The party whose performance is affected by such
events shall promptly notify the other party, giving details of the force
majeure circumstances, and the obligations of the party giving such notice
shall be suspended to the extent caused by the force majeure and so long as the
force majeure continues, and the time for performance of the affected
obligation hereunder shall be extended by the time of the delay caused by the
force majeure event

 

12.9         Use
of Facilities and Equipment. MCI WorldCom’s obligation under this Agreement
is to furnish services consisting of facilities and equipment that is
exclusively of MCI WorldCom’s choosing. Unless otherwise provided for in this
Agreement, MCI WorldCom may substitute facilities or equipment used to furnish
the Services or substitute comparable service for any Service furnished under
this Agreement, at any time.

 

12.10       Use
of Service Marks, Trademarks and Name.

 

(a) Customer
shall not: (i) use any service mark or trademark of MCI WorldCom or any third
party of which MCI WorldCom is a licensee; or (ii) refer to MCI WorldCom in
connection with any product, equipment, offering, advertising, promotion, press
release or publication of Customer or a third party on behalf of or with the
authorization of Customer, without MCI WorldCom’s prior written approval.

 

(b) Customer
agrees that: (i) any permitted use of MCI WorldCom’s service marks or
trademarks is for the exclusive benefit of MCI WorldCom; (ii) all good will
resulting from use of such service marks or trademarks vests solely in MCI
WorldCom; and (iii) Customer will neither have nor make any claim in or to such
service marks or trademarks.

 

 

12.11       Survival.
The provisions of this Agreement which by their nature are intended to survive
this agreement shall survive the termination or expiration of this Agreement.

 

12.12       Entire
Agreement. This Agreement, including the Tariffs and GSA Schedules,
constitutes the entire agreement between the parties with respect to its
subject matter, and as to all other representations, understandings or
agreements which are not fully expressed herein. No amendment to this Agreement
shall be valid unless in writing and signed by both parties; provided however,
that MCI WorldCom may modify its Tariffs from time to time in accordance with
law and thereby affect the services furnished to Customer. Section titles or
references used in this Agreement shall be without substantive meaning or
content of any kind whatsoever and are not a part of the agreements among the
parties evidenced hereby.

 

12.13       Signature
Authorization. The parties have duly executed and agreed to be bound by
this Agreement as evidenced by the signatures of their authorized
representatives. Each party represents and warrants to the other that the
signatory identified beneath its name has full authority to execute this
Agreement on its behalf.

 

 

SCHEDULE THREE

 

UNITED STATES TARIFFED SERVICES

 

1.             Service
Provisioning and Receipt. MCI WorldCom will provide to Customer
international, interstate, intrastate telecommunications service(s) pursuant to
the applicable tariffs and price lists of MCI WorldCom and its U.S.-based
affiliates (individually, a “US Tariff” and collectively, the “US Tariffs”),
each as supplemented by this Schedule Three to the extent permitted by law.
This Schedule Three incorporates by reference the terms of each such US Tariff.
Notwithstanding anything in this Agreement to the contrary, MCI WorldCom may
modify its Tariffs from time to time in accordance with law and thereby affect
the services furnished to Customer.

 

2.             Services.
Attachment 3-1, attached hereto and incorporated by reference, contains
additional rates, discounts and certain other provisions applicable to the
Services provided to Customer pursuant to this Schedule Three and the US
Tariffs (the “US Tariffed Services”).

 

3.             Definitions.
Capitalized terms not otherwise defined in this Agreement shall have the
definition given to them in MCI WORLDCOM Network Services, Inc. FCC Tariff No.
1 (or successor tariff(s) thereto) and other filed and effective tariffs of MCI
WorldCom affiliates.

 

 

ATTACHMENT 3-1

 

1.             Rates
and Discounts for the Services. Customer will pay the below rates and
receive the below discounts, if any, for the Services specified below.
References in this Attachment 3-1 to standard Tariffed rates and/or discounts
refer to the corresponding standard MCI WorldCom On-Net Service rates and/or
discounts set forth in the applicable US Tariffs for such service(s), as MCI
may amend from time to time. All references to “intrastate” and “interstate”
contained herein shall refer to domestic US Tariffed Services only.

 

1.1          Metro
Private Line Service. MCI WorldCom will provide Metro Private Line Access
Service pursuant to the MFS Telecom FCC Tariff No. 2 and all other applicable
US Tariffs. Type 1 discounts set forth herein apply when both terminating
locations of the circuit are “On-Net” (i.e., MCI WorldCom owns the entire local
loop), as verified by reference to MCI WorldCom location records. Type 2 rates
set forth herein apply when one terminating location in On-Net and one
terminating location is local exchange carrier-owned and leased by MCI WorldCom
for Customer’s use. Collocation installation fees are not waived under this
Agreement (except to the extent the Installation Waivers herein apply). Except
as specifically set forth herein, Metro Private Line Services will be provided
at standard tariffed rates.

 

A.            Type 1 DS-1: ***

 

B.            Type 1 DS-3: ***

 

C.            Type 2 DS-1:  ***

 

D.            Type 2 DS-3:  ***

 

1.2          Dedicated
Access Service (Option 1). For Dedicated Access Service, Type 1 discounts
set forth herein apply when both terminating locations of the circuit are “On-Net”
(i.e., MCI WorldCom owns the entire local loop), as verified by reference to
MCI WorldCom location records. Type 2 rates set forth herein apply when one
terminating location in On-Net and one terminating location is local exchange
carrier-owned and leased by MCI WorldCom for Customer’s use. Collocation
installation fees are not waived under this Agreement. Except as specifically
set forth herein, Dedicated Access Services will be provided at standard
tariffed rates.

 

A.            Type 1 DS-1: ***

 

B.            Type 1 DS-3: ***

 

C.            Type
2 DS-1: ***

 

D.            Type 2 DS-3: ***

 

 

1.3          Domestic
Private Line Service (Option 1). MCI WorldCom will provide Domestic Private
Line (Option 1) Service pursuant to the WNS FCC Tariff No. 4 and all other
applicable US Tariffs. Except as specifically set forth herein, private line
service will be provided at standard tariffed rates. In lieu of Tariffed rates
and discounts, for long haul mileage associated with MCI WorldCom Private Line
Service, Customer will pay the following fixed rates for non-restorable Private
Line (Option 1) Service between Tier A cities only, based on Service type.

 

A.            On-Net (“Tier A”)
DS-3:  ***

 

B.            On-Net (“Tier A”)
DS-1:  ***

 

 

SCHEDULE FOUR

 

UNITED STATES ENHANCED SERVICES

 

1.             Enhanced
Service(s). The term “Enhanced Service(s)” means only those non-tariffed services provided by
MCI WorldCom to Customer pursuant to this Schedule Four. Attachment 4-1,
attached hereto and incorporated by reference, contains additional rates,
discounts and certain other provisions applicable to the Enhanced Services provided
to Customer pursuant to this Schedule Four. To the extent that the terms and
conditions of Attachment 4-1 are inconsistent with the terms and conditions of
this Schedule Four, Attachment 4-1 governs with respect to the corresponding
Enhanced Service.

 

 

ATTACHMENT 4-1

 

UNITED STATES ENHANCED SERVICES

 

I.              MCI
WORLDCOM DOMESTIC ATM SERVICE (OPTION 1)

 

A.            MCI WorldCom
Enhanced Service: MCI WorldCom Asynchronous Transfer Mode (“ATM”)
Service (Option 1).

 

B.            Product
Provision: ATM is not offered pursuant to the Tariff, but shall be
provided on the terms and conditions of this Agreement and the Tariff as such
Tariff is applied to Frame Relay Service to the extent permissible and not
superseded by applicable laws and regulations, including those of other countries
where service originates or terminates. In the event of a conflict between the
terms and conditions of the Tariff and this Agreement, the provisions of this
Agreement shall take precedence with regard to ATM. MCI WorldCom may modify the
Tariff from time to time and thereby affect the Service furnished to Customer.
Except as otherwise provided herein, the rates and discounts in MCI WorldCom’s
standard price lists and this Addendum are subject to change at the discretion
of MCI WorldCom.

 

C.            Product Description:
ATM allows Customer to transmit voice, video and data communications over a
single virtual network via a variety of Customer network interface speeds and
service categories without protocol conversion. ATM Service may include the
following: (i) equipment necessary to support the ATM Service including
equipment located on Customer’s premises and equipment located on MCI WorldCom’s
premises, (ii) local access facilities, (iii) a Network Node (as described
below) for each location requiring connectivity to the MCI WorldCom network,
and (iv) maintenance of the equipment and services provided by MCI WorldCom. A “Network
Node” includes a port connection, i.e., access to the MCI WorldCom network, and
the permanent virtual circuits assigned to said port.

 

D.            Rates and
Discounts:

 

1.             Rates.
Per monthly billing period, Customer will be charged MCI WorldCom’s
then-current standard published rates for MCI WorldCom Domestic ATM Service
(Option 1) (the “ATM Rates”), including the following charges:

 

(a)           Non-Recurring
Installation Charges (except to the extent the Installation Waivers herein
apply);

 

(b)           Monthly Recurring
Charges, which shall include recurring charges related to equipment, local
access, Network Nodes and maintenance, and shall be calculated on a calendar-month
billing period and billed monthly in arrears by MCI WorldCom; and

 

 

(c)           Ancillary Charges,
which may include expedite and cancellation charges as well as pre and post
engineering. Charges and credits due to changes in the Service (and additions
or deletions of) Network Nodes during a month for which Customer has already
been billed by MCI WorldCom, shall appear on a subsequent bill.

 

2.             Discounts.  ***

 

E.             Service
Level Guarantee. Attached hereto as Attachment 4-2 is a Service
Level Guarantee (“SLG”) applicable to MCI WorldCom domestic ATM Service under
this Agreement.

 

 

ATTACHMENT 4-2

 

MCI
WorldCom Domestic ATM Service Level Agreement:

 

1.0           Definitions

 

1.1           MCI
WorldCom Domestic ATM Service Level Agreement (“SLA”)

 

The MCI
WorldCom Domestic ATM SLA is a commitment on the part of MCI WorldCom to
attempt to meet specific network and service performance levels associated with
MCI WorldCom ATM Service (Option 1) within the 48 contiguous United States.

 

1.2           Type
1 Access

 

As used
herein, Type 1 Access refers to MCI WorldCom ATM Service where local access
lines on each end are MCI WorldCom-owned.

 

1.3           Type
2 Access

 

As used
herein, Type 2 Access refers to MCI WorldCom ATM Service where local access
lines on one end are not MCI WorldCom-owned but local access lines on the other
end are MCI WorldCom-owned.

 

1.4           Type
3 Access

 

As used
herein, Type 3 Access refers to MCI WorldCom ATM Service where local access
lines on both ends are not MCI WorldCom-owned.

 

2.0           Network
Availability

 

2.1
Description

 

The network
availability measurement is equal to the total number of minutes in a billing
month during which core network PVC routes are available to exchange data
between the two network infrastructure node end points, divided by the total
number of minutes in a calendar month (“Network Availability Time”). A lapse in
network availability is calculated commencing with the date and time on which
Customer informs MCI WorldCom of service non-availability and ending on the
date and time of service restoration.

 

For purposes
of measuring End to End Customer Network Availability, the PVC route includes
the MCI WorldCom ATM network infrastructure connectivity from infrastructure
port to infrastructure port, including local access lines but excluding
Customer Premises Equipment (“CPE”). CPE refers to the telecommunications
hardware located at the Customer site and supplied by MCI WorldCom (e.g.
CSU/DSU, router, or multiplexer) or supplied by the Customer.

 

 

2.2 Network
Availability Objective

 

MCI WorldCom
will attempt to achieve an End-to-End Customer Network Availability Time for
Type 1 Access of 100%, and an End to End Customer Network Availability of 99.8%
for Type 2 and 3 Access, for networks designed with all of the following: Fully
meshed network topology or a star network topology in which each remote site
has PVCs connected to at least two network hubs engineered to separate
infrastructure nodes, and 5 or more Customer sites in the network.

 

2.3 Exclusions

 

Network
Availability Time measurements exclude MCI WorldCom ATM network unavailability
resulting in whole or in part from one or more of the following causes:

 

•              MCI
WorldCom services provided outside the contiguous U.S.

•              Any
act or omission on the part of Customer, Customer’s third party contractors or
vendors, or any other entity over which Customer exercises control or has the
right to exercise control

•              Customer’s
applications, equipment or facilities

•              MCI
WorldCom or Customer’s scheduled maintenance

•              Events
or occurrences that result in “No Trouble Found” Trouble Tickets

•              Labor
strikes

•              Natural
disasters

•              Force
majeure events beyond the reasonable control of MCI WorldCom including but not
limited to acts of God, government regulation, and natural emergency

•              Trouble
tickets associated with new installations

•              Interruptions
associated with any act or omission on the part of Customer or a third party,
including but not limited to any local access provider, or an interruption
where Customer elects not to release the service for testing and repair and continues
to use it on an impaired basis

•              Interruptions
during any period where MCI WorldCom or its agents are not allowed access to
Customer’s premise where the access lines are terminated

•              Master
Trouble Tickets opened by MCI WorldCom or a qualified third party on behalf of
MCI WorldCom, such as those in the case of a fiber cut

 

2.4
Calculation

 

Customer
Network Availability Time is calculated after Customer opens a trouble ticket
and will be calculated based upon availability during the monthly billing period
in which Customer reports the trouble ticket.

 

	
  Monthly

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Network (%)

  	
   

  	
  =

  	
   

  	
  1-

  	
   

  	
  Total
  minutes of affected PVC downtime per month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total #
  affected PVCs x # days in month x 24hrs x 60min

  	
   

  

 

 

2.5 Components
of Calculation

 

Total minutes
in the billing month, total minutes available, total minutes unavailable, total
minutes unavailable due to exclusions, categorized by occurrence.

 

2.6 Credits

 

MCI WorldCom
will issue credits as set forth below following the opening of a trouble ticket
by Customer and subsequent testing by MCI WorldCom and determination by MCI
WorldCom that the Network Availability Time objective was not met during the
given month.

 

(a)           In the event MCI
WorldCom is unable to satisfy the Network Availability Time objective in any
one month during the Term, Customer will receive a credit equal to ***
multiplied by the rates, after application of any discounts, for the port and
PVC charges for the affected node(s) and/or PVC(s) for which MCI WorldCom
failed to meet the Network Availability Time objective in that month (“Affected
Service Element”).

 

(b)           In the event MCI
WorldCom is unable to satisfy the Network Availability Time objective ***
Customer will receive a credit equal to *** for the port and PVC charges for
the Affected Service Element ***.

 

(c)           In the event MCI
WorldCom is unable to satisfy the Network Availability Time objective ***
Customer will receive a credit equal to *** for the port and PVC charges for
the Affected Service Element ***.

 

(d)           In the event MCI
WorldCom is unable to satisfy the Network Availability Time objective ***
Customer will receive a credit equal to *** for the port and PVC charges for
the Affected Service Element *** or Customer may discontinue receipt of service
on the Affected Service Element without liability, except for charges incurred
prior to discontinuance, upon *** written notice to MCI WorldCom. If Customer
discontinues receipt of service on an Affected Service Element hereunder and
does not take substitute service from MCI WorldCom, the Annual Minimum for
purposes of assessing underutilization charges shall be reduced by ***.

 

3.0           Mean
Time To Repair (MTTR)

 

3.1
Description

 

Mean-Time-To-Repair
(“MTTR”) is the period of time commencing on the date the Customer informs MCI
WorldCom of service non-availability (i.e., opens a trouble ticket) and ending
on the date of service restoration (closing of a trouble ticket).

 

 

3.2 MTTR
Objective

 

The End to End
Customer Network MTTR objective, which measures performance within MCI WorldCom’s
network infrastructure and MCI WorldCom-provided local access lines but
excludes performance issues related to CPE, is 2 hours for Type 1 Access, and 4
hours for Type 2 and 3 Access.

 

3.3 Exclusions

 

The MTTR
objective only applies to those service issues for which Customer informs MCI
WorldCom of a lapse in service (i.e., opens a trouble ticket) and for which
Customer subsequently allows necessary access to Customer premises and
facilities for testing. Furthermore, MTTR measurements will exclude the
following (“MTTR Exclusions”):

 

•              MCI
WorldCom services provided outside the contiguous U.S.

•              Any
act or omission on the part of Customer, Customer’s third party contractors or
vendors, or any other entity over which Customer exercises control or has the
right to exercise control

•              Customer’s
applications, equipment or facilities

•              MCI
WorldCom or Customer’s scheduled maintenance

•              Events
or occurrences that result in “No Trouble Found” Trouble Tickets

•              Labor
strikes

•              Natural
disasters

•              Force
majeure events beyond the reasonable control of MCI WorldCom including but not
limited to acts of God, government regulation, and natural emergency

•              Trouble
tickets associated with new installations

•              Interruptions
associated with any act or omission on the part of Customer or a third party,
including but not limited to any local access provider, or an interruption
where Customer elects not to release the service for testing and repair and
continues to use it on an impaired basis

•              Interruptions
during any period where MCI WorldCom or its agents are not allowed access to
Customer’s premise where the access lines are terminated

•              Master
Trouble Tickets opened by MCI WorldCom or a qualified third party on behalf of
MCI WorldCom, such as those in the case of a fiber cut

 

3.4 Calculation

 

	
  Monthly Avg.

  	
   

  	
  =

  	
   

  	
  Sum of minutes between opening and closing of qualified MTTR trouble
  tickets during the billing month adjusted for exclusions

  
	
   

  	
   

  	
   

  	
   

  	
  Total number
  of lapses during the billing month

  

 

 

3.5 Components
for Calculations

 

Total number of
trouble tickets, total time elapsed between opening of trouble tickets and
applicable service restoration, total time elapsed between opening of trouble
tickets and service restoration for any and all MTTR Exclusions.

 

3.6 Credits

 

In any month
in which MCI WorldCom did not meet its committed MTTR, Customer will receive
credits as follows:

 

(a)           In the event MCI
WorldCom is unable to satisfy the MTTR objective *** during the Term, Customer
will receive a credit equal to *** for the port and PVC charges for the
affected node(s) and/or PVC(s) for which MCI WorldCom failed to meet the MTTR
objective *** (“Affected Service Element”).

 

(b)           In the event MCI
WorldCom is unable to satisfy the MTTR objective *** Customer will receive a
credit equal to *** for the port and PVC charges for the Affected Service
Element ***.

 

(c)           In the event MCI
WorldCom is unable to satisfy the MTTR objective *** Customer will receive a
credit equal to *** for the port and PVC charges for the Affected Service
Element ***.

 

(d)           In the event MCI
WorldCom is unable to satisfy the MTTR objective *** Customer will receive a
credit equal to *** for the port and PVC charges for the Affected Service
Element *** or Customer may discontinue receipt of service on the Affected
Service Element without liability, except for charges incurred prior to
discontinuance *** written notice to MCI WorldCom. If Customer discontinues
receipt of service on an Affected Service Element hereunder and does not take
substitute service from MCI WorldCom, the Annual Minimum for purposes of
assessing underutilization charges shall be reduced by ***.

 

4.0           Credit
Limitations and Conditions

 

4.1           In the event the
Customer experiences network or service performance for MCI WorldCom ATM
Service at levels below stated MCI WorldCom objectives for Network Availability
Time and MTTR, during the same month, Customer shall only be entitled to
receive credits, if any, pursuant to one (1) of the applicable credit sections.

 

4.2           MCI WorldCom will not
issue credits pursuant to this SLA ***.

 

4.3           In order to receive a
credit under this SLA, Customer must do the following: (a) report the network
outage (open a trouble ticket) within 72 hours of the occurrence and (b) make a
request in writing for a credit from MCI WorldCom within five (5) days of
opening the trouble ticket. Customer must document the following information
when requesting the credit: the trouble ticket number, the time the ticket was
opened and closed, and the IDs for each of the ports and PVCs that experienced
the network outage.

 

 

SCHEDULE EIGHT

 

OTHER SERVICES

 

INTERNET SERVICES

 

Customer is entitled to receive
MCI WorldCom Internet services in accordance with the terms and conditions, and
at the rates and discounts, set forth in the attached schedules 8A, 8B, and 8C.
Amounts charged and actually paid by Customer for monthly recurring charges
under the attached schedules for MCI WorldCom Internet services will count
towards Customer’s Annual Minimum under this Agreement. The amount to be
applied will be that charged and actually paid by Customer, net of any
discounts or applicable credits, and excluding any amounts paid for taxes,
tax-like surcharges or fees or for customer premises equipment or related fees.

 

 

T1 INTERNET ACCESS SERVICE AGREEMENT

 

	
  Customer
  Information

  	
   

  
	
  Company
  Name
Eschelon Telecom, Inc.

  	
   

  
	
  Billing
  Address-Line 1
730 2nd Ave South, Suite 1200

  	
   

  	
  Phone

  	
  Fax

  	
   

  	
   

  
	
  Billing
  Address-Line 2

  	
  City

  Minneapolis

  	
  State

  Minnesota

  	
  Zip + 4
55402

  	
   

  	
   

  
	
  T1
  Services

  	
   

  

 

	
  Flexible T1 Service (1)

  	
   

  	
  Double/Diverse T1 Services (2)

  	
   

  	
  Shadow T1 Service (4)

  	
   

  	
  Discounted Equipment (5)

  	
   

  
	
  Sustained Use 

  	
   

  	
  Monthly

  	
   

  	
  Start-Up(3)

  	
   

  	
  Item

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  Item

  	
   

  	
  Price

  	
   

  
	
  (Kbps)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 0-128

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o Double T

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o Cisco 2610 Router with Internal CS/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 128-256

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o Diverse T

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o Additional Cisco Internal T1 CSU/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 256-384

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o Open ROUTE GTX 1000 router with Internal T1
  CSU/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 384-512

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o OpenROUTE Internal T1 CSU/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o Over 512

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o OpenROUTE Internal ISDN card

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o Price-Protected T1 (2)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o Cisco 3840 Router with Internal T1 CSU/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   ̈ Cisco Internal ISDN card

  	
   

  	
  ***

  	
   

  

 

Term and Payment

 

	
  Term

  ***

  	
  Term
  Discount

  ***

  	
   

  	
  P.O.
  Number-If P.O required, return it with Agreement.

  

 

Notes

 

The service prices above do not include telco
installation charges, domain-name-registration charges, monthly line charges,
or equipment costs.

 

•              Networks
assigned frorn a MCI WorldCom net block are non-portable. Networks space
allocated by MCI WorldCom must be returned to MCI WorldCom if Customer discontinues
service. MCI WorldCom may suspend service or terminate this Agreement,
effective upon notice, for a violation of these requirements.

 

•              Monthly
charge, includes MCI WorldCom domain-name service for one domain per Customer
and any sub-domains; additional domains for Internal Customer use are *** each.
Domain-name registration requires a separate Charge that will be billed
directly to Customer by Networks Solutions. MCI WorldCom will not under and
circumstances, send payment to Network Solutions on behalf of Customer. All
domain-name applications that use MCI WorldCom name servers must be authorized
by MCI WorldCom, or the application may be denied or delayed. Customer may not
use in applications for its customers’ domains MCI WorldCom name servers.

 

•              Flexible
Monthly billing is based on the level of sustained use during the month. To
determine this level, traffic samples are taken every five minutes; the level
under which 95% of these samples fall is the level of sustained use.

 

•              To
ensure proper installation. MCI WorldCom will order all telco lines: a ***
surcharge applies for Customer-ordered lines. Installation may be scheduled
Monday through Friday, excluding holidays, between the hours of 8 AM and 7 PM
ET; Customers requiring installation outside of these hours must pay a
surcharge of ***. Customer’s installation period extends for 30 days after MCI
WorldCom has passed packets with Customer’s router. MCI WorldCom’s Installation
engineers are not responsible for providing consulting on or configuring
security equipment (MCI WorldCom offers security products and consulting
services. Ask a Sales Representative for details.).

 

•              Term
Discount applicable only to Monthly Charge. At the conclusion of the Term, this
Agreement shall continue in effect on a month-to-month basis at MCI WorldCom’s
then-current list price for the service.

 

(1)  T1
customers always have available to them the full T1 bandwidth over an unshared,
non-fractional 1.6 Mbps digital leased line.

 

(2)  Minimum
1-Year Term required; Term discounts do not apply.

 

(3)  Applies
to the first year of service. After the first year, MCI WorldCom will sample
Customer’s use statistics, using the same traffic-sample method described
above. If Customer’s sustained use qualifies for a tiered Monthly Charge that
is:

 

(a)   lower
than the Price-Protected Monthly Charge. Customer may elect to continue service
at the lower tiered monthly Charge or sign up for another year at the
Price-Protected Monthly Charge, or

 

(b)   higher
than the Price-Protected Monthly Charge, MCI WorldCom will begin charging the
appropriate tiered Monthly Charge.

 

(4)  Shadow
T1 Service requires that Customer does not exceed a 16 Kbps sustained-use
level. To determine this level traffic samples are taken every five minutes;
the level under which 95% of these samples from the previous month falls is the
level of sustained use. Should the 16 Kbps limit be exceeded, MCI WorldCom will
bill Customer automatically at the standard MCI WorldCom rate for the
corresponding sustained-use level.

 

Schedule 8A

MCI WORLDCOM Communications, Inc.

 

 

Customer will
be billed at this rate until: (1) The sustained-use level decreases below 16
Kbps and (2) Customer provides a written request to MCI WorldCom to return to
Shadow T1 Service.

 

(5) Available
only with service. MCI WorldCom is acting only as a reseller with respect to
the hardware and software offered under this Agreement (“Equipment”), which
Equipment was manufactured by a third party (“Manufacturer”). MCI WorldCom will
provided first-level support for Equipment, but will not repair or replace
Equipment. Customer’s use of Equipment is subject to the terms and conditions
of the Manufacturer’s end-user agreement Should Customer purchase Equipment
front MCI WorldCom, MCI WorldCom will ship to Customer the current MCI
WorldCom-tested version.

 

Terms and Conditions

 

This Service Agreement (“Agreement”) for the
services provided hereunder is made by and between Customer (“Customer”) and
MCI WORLDCOM Communications, Inc., together with its respective affiliates,
including UUNET Technologies, Inc. (collectively “MCI WorldCom”).

 

1.     MCI
WorldCom exercises no control over, and accepts no responsibility for, the
content of the information passing through MCI WorldCom’s host computers,
network hubs, and points of presence (the “MCI WorldCom Network”). EXCEPT AS
EXPRESSLY SET FORTH IN SECTION 7 BELOW, MCI WorldCom (a) MAKES NO WARRANTIES OF
ANY KIND, WHETHER EXPRESS OR IMPLIED, FOR THE SERVICES AND EQUIPMENT IT IS
PROVIDING and (b) DISCLAIMS ANY WARRANTY OF TITLE, MERCHANTABILITY,
NON-INFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE. Use of any information
obtained via the MCI WorldCom Network is at Customer’s own risk. MCI WorldCom
specifically denies any responsibility for the accuracy or quality of
information obtained through its services. MCI WorldCom shall not be liable for
any delay or failure in performance due to Force Majeure, which shall include
acts of God; earthquake; labor disputes; changes in law, regulation, or
government policy; riots; war; fire; epidemics; acts or omissions of vendors or
suppliers; equipment failures; transportation difficulties; or other
occurrences that are beyond MCI WorldCom’s reasonable control.

 

2.     All
use of the MCI WorldCom Network and the service must comply with the then-current
version of the MCI WorldCom Acceptable Use Policy (“Policy”), which is part of
this Agreement and is available at the following URL www.uu.net/usepolicy.html.
MCI WorldCom reserves the right to amend the Policy from time to time,
effective upon either posting of the revised Policy at the URL or providing
other notice to Customer. MCI WorldCom reserves the right to suspend the
service or terminate this Agreement, effective upon notice, for a violation of
the Policy. Customer agrees to indemnify MCI WorldCom and hold it harmless from
any losses, damages, costs, or expenses resulting from any third-party claim or
allegation (“Claim”) arising out of or relating to use of the service,
including any Claim that, if true, would constitute a violation of the Policy.

 

3.     NEITHER
PARTY SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR
CONSEQUENTIAL DAMAGES THAT RESULT FROM CUSTOMERS OR CUSTOMER’S USERS’ USE OF
THE MCI WorldCom NETWORK AND THE SERVICE, INCLUDING, WITHOUT LIMITATION, ANY
SUCH DAMAGES FOR LOSS OF DATA RESULTING FROM DELAYS. NON-DELIVERIES,
MISDELIVERIES, OR SERVICE INTERRUPTIONS. Notwithstanding anything to the
contrary stated in this Agreement, Customer’s sole remedies for any claims
relating to this service or the MCI WorldCom Network are set forth in Section 7
below.

 

4.     Payment
is due 30 days after date of invoice. Accounts are in default if payment is not
received within 30 days after date of invoice. Payment made by a check that is
later returned to MCI WorldCom for insufficient funds shall place Customer
Immediately in default and subject Customer to a MCI WorldCom returned-check
charge of $25. Accounts unpaid 60 days after date of invoice may have service
interrupted or terminated. Such interruption or termination does not relieve
Customer of the obligation to pay the Monthly Charge. Only a written request to
terminate Customer’s service relieves Customer of the obligation to pay the
Monthly Charge. Accounts in default are subject to an interest charge on the
outstanding balance of the lesser of 1.5% per month or the maximum rate
permitted by law. Customer agrees to pay MCI WorldCom its reasonable expenses,
including attorney and collection-agency Charges, incurred in enforcing its
rights under these Terms and Conditions. Prices are exclusive of any taxes that
may be levied or assessed upon the equipment or services provided hereunder.
Any such taxes shall be paid by Customer. If Customer is exempt from otherwise
applicable taxes, Customer must submit its tax identification number and
exemption certificate at the same time it submits this Agreement

 

5.     Billing
for MCI WorldCom service will commence when a MCI WorldCom hub and a
functioning telephone circuit are prepared to route IP packets to Customer’s
site. The Startup Charge is invoiced upon acceptance of this Agreement by MCI
WorldCom. Charges for Equipment shall be invoiced upon shipment. Service is
invoiced monthly in advance, and may be canceled only by 60 days’ advance
written notice. In the event of early cancellation of a Term, Customer will be
required to pay 75% of MCI WorldCom’s standard Monthly Charge for earth month
remaining in the Term. MCI WorldCom reserves the right to change the rates by
notifying Customer 60 days in advance of the effective date.

 

6.     The
Service Level Agreement (“SLA”) for this service to set forth at www.wcom.com/sla
and applies only to customers agreeing to a Term of at least one year. The SLA
is also only applicable to Shadow T1 service if the service becomes Standard T1
service. MCI WorldCom reserves the right to amend the SLA from time to time,
effective upon either posting of the revised SLA to this URL or providing other
notice to Customer. In the event of any amendment resulting in a material
reduction of the SLA’s service levels or credits, Customer may terminate this
Agreement without penalty by providing MCI WorldCom written notice of
termination during the 30 days following notice of such amendment. The SLA sets
forth Customer’s sole remedies for any claim relating to this service or the
MCI WorldCom Network, including any failure to meet any guarantee set forth in
the SLA. MCI WorldCom’s records and data shall be the basis for all SLA
calculations and determinations. Notwithstanding anything to the contrary, the
maximum amount of credit in any calendar month under the SLA shall not exceed
the Monthly Charge and/or Startup Charge that, absent the credit, would have
been charged for MCI WorldCom service that month (collectively the “MCI
WorldCom Charges”), provided that the maximum amount of credit for failure to
meet the Availability Guarantee shall not exceed the sum of (a) the MCI
WorldCom Charges plus (b) the telephone company line charge that, absent the
credit, would have been charged for said month.

 

7.     Neither
party may use the other party’s name, trademark, trade names, or other
proprietary identifying symbols without the prior written approval of the other
party. Neither party may assign or transfer any of its rights or obligations
under this agreement without the prior

 

 

express, written consent of the other party, provided that either party
may assign or transfer this Agreement to any affiliate of such party upon
advance written notice to the other party. No failure or delay on the part of
either party to exercise any right or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof or the exercise of any
other right or remedy granted hereby or by law.

 

8.     If
Customer is reselling services under this Agreement, Customer agrees to sell
and bill its own services under Customer’s own name, identity or mark, and
Customer further agrees not to reference MCI WorldCom name or marks in any
context involving Customer’s furnishing of services to the public. In addition
to other applicable remedies, MCI WorldCom shall be entitled to seek injunctive
relief with respect to any violation of this Paragraph 8. Any opportunity to
cure a breach of this Paragraph shall be subject to MCI WorldCom’s reasonable
satisfaction as to the curability of the original injury caused by such breach
and the effectiveness of any attempted cure. MCI WorldCom’s right to enforce
this Paragraph as a material provision of this Agreement shall not in any manner
require a showing of financial, legal or other loss or injury to MCI WorldCom
of any kind.

 

9.     Customer
understands and accepts that, as part of MCI WorldCom’s normal business policy
and practices and its obligations under law, MCI WorldCom will engage in
extensive marketing effort in an attempt to sell its services to the public and
that such efforts will result in active competition with Customer for the
business of users who are Customer’s End Users or prospects, provided MCI
WorldCom will not use Confidential Information to actively compete with
Customer. Accordingly, Customer further understands and accepts that such
competition by MCI WorldCom is in all respects fair and proper and that
Customer shall not complain, nor be heard to complain, of business lost to MCI
WorldCom. Under no circumstance shall any inference be derived that MCI
WorldCom’s entry into this Agreement with Customer means that MCI WorldCom will
restrict its efforts to compete against Customer in any way,

 

10.   Customer
understands and accepts that no fiduciary relationship arises by virtue of this
Agreement and that, accordingly, MCI WorldCom incurs none of the obligations
that arise in such relationship as an incident of its fulfilling its
obligations under this Agreement. Further, Customer understands and accepts
that MCI WorldCom neither insures the profits for Customer nor guarantees the
success of Customer’s business as a result of Customer’s receipt of Services
under this Agreement.

 

11.   These
Terms and Conditions supersede all previous representations, understandings, or
agreements and shall prevail notwithstanding any variance with terms and
conditions of any order submitted. Acceptance of this Agreement by MCI WorldCom
may be subject, in MCI WorldCom’s absolute discretion, to satisfactory
completion of a credit check. Activation of service shall indicate MCI
WorldCom’s acceptance of this Agreement. Use of the MCI WorldCom Network
constitutes acceptance of these Terms and Conditions.

 

In the event
that the Federal Communications Commission or other lawful authority determines
that the company must contribute to support government “Universal Service”
programs based upon revenues obtained from the provision of service hereunder,
the Company, without any further agreement of Customer, may impose a Charge or
charge designed to recover its required contribution, based upon revenues
earned under this Agreement.

 

Customer questions should be directed to
Customer’s MCI WorldCom sales representative.

Signature

	
  Customer
  Authorized Agent

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  	
  Date

  

 

 

	
  Customer
  Information

  	
   

  
	
  Company
  Name
Eschelon Telecom, Inc.

  	
   

  
	
  Billing
  Address-Line 1
730 2nd Ave South, Suite 1200

  	
   

  	
  Phone

  	
  Fax

  	
   

  	
   

  
	
  Billing
  Address-Line 2

  	
  City

  Minneapolis

  	
  State

  Minnesota

  	
  Zip + 4
  55402

  	
   

  	
   

  
	
  T3
  Services (1)

  	
   

  

 

	
  Tiered
  T3 Service (2)

  	
   

  	
  Flexible
  T3 Service (3)

  	
   

  	
  o Shadow T3 (4)

  	
   

  	
  Discounted
  Equipment (6)

  	
   

  
	
  Port

  (Mbps)

  	
   

  	
  Monthly

  Fee

  	
   

  	
  Start-Up

  Charge

  	
   

  	
  Sustained
  Use

  (Mbps)

  	
   

  	
  Monthly

  Fee

  	
   

  	
  Start-Up

  Charge

  	
   

  	
  Service

  Type

  	
   

  	
  Monthly

  Fee

  	
   

  	
  Start-Up

  Charge

  	
   

  	
  (If
  applicable, options will be available in an attachment)

  	
   

  
	
  o 3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 0-3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  Shadow T3
  Service

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  o 6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 3.01-6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 9

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 6.01-7.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 7.51-9

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 9.01-10.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o T3 Price Protected (5)

  	
   

  	
   

  	
   

  
	
  o 18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 10.51-12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
  Monthly Fee

  	
   

  	
  Start-up
  Charge

  	
   

  	
   

  	
   

  
	
  o 21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 12.01-13.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 24

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 13.51-15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  T3 Price
  Protected

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  o 27

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 15.01-16.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 30

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 16.51-18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 33

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 18.01-19.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 36

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 19.51-21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 39

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 21.01-45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Term and
  Payment

  
	
  Term

  

  

  ***

  	
  Term
  Discount (7)

  

  

  ***

  	
  Billing
  Preference
o
  Bill Existing MCI WorldCom Account

  No,

  o Bill to a new
  account number

  	
  Account No.
  of Existing MCI WorldCom

  

  

  Connection:

  	
  If P. O
  required, return it with Agreement.

  

  

  P. O. Number:

  

 

Notes

(1)   While
Customer can resell Internet connectivity, Customer cannot resell the service
in its entirety to another person or entity without the express prior written
consent of UUNET. If Customer resells Internet connectivity to end users,
Customer is responsible for: (1) providing the first point of contact for end
user support inquiries; (ii) providing software fulfillment to end users; (iii)
running its own primary and secondary domain name service (“DNS”) for end
users; (iv) registering end users’ domain names; (v) using BGP routing to the
UUNET Network, if requested by UUNET; (vi) collecting route additions and
changes, and providing them to UUNET; and (vii) registering with the
appropriate agency all IP addresses provided by UUNET to Customer that are allocated
to end users. Prices do not include any telco line charges, equipment costs, or
network applications fees. Descriptions of the domain name, mail, news
services, and other network applications available in connection with this
service, and the pricing and additional terms applicable to these services, are
set forth in the Network Applications Fee Schedule available at www.uu.net/terms.
MCI WorldCom reserves the right to change the Network Applications Fee schedule
from time to time, effective upon posting of the changes to that URL or other
notice to Customer. To ensure proper installation, MCI WorldCom will order all
telco lines. A *** surcharge applies to Customer-ordered lines. Installation
may be scheduled between the hours of 8AM and 7PM ET Monday through Friday
(excluding holidays). If Customer requires installation outside of these hours
MCI WorldCom will charge an additional *** fee.

 

(2)   Customer
must provide 60 days’ prior written notice to MCI WorldCom before downgrading
service to a lower tier.

 

(3)   With
Flexible T3 service, Customer receives full T3 access to MCI WorldCom and can
burst to the full 45 Mbps at any time. Monthly billing is based on the level of
sustained use during the month, as determined by traffic samples taken every
five minutes. The level under which 95% of the samples fall is the sustained
use. Customer may move to a lower flexible service level if the sustained use
is at or below such flexible service level for at least two consecutive months
and Customer thereafter notifies MCI WorldCom in writing of its intent to move
to such lower flexible service level.

 

(4)   Shadow
T3 service requires that Customer does not exceed a 500 Kbps sustained use
level. Sustained use level is determined by traffic samples taken every five minutes,
seven days per week; the sustained use level is that under which 95% of samples
fall during the previous month. If the 500 Kbps sustained use level is exceeded
during a month, MCI WorldCom automatically will bill Customer at the
appropriate standard MCI WorldCom Flexible T3 service Monthly Charge for that
use level. Customer will be billed at these rates until (1) sustained use
decreases below 500 Kbps, and (2) Customer provides a written request to MCI
WorldCom to return to Shadow T3 service. Shadow service is available only to
Customers with at least a 1 year Term for Tiered or Flexible T3 service. The
Term at the Shadow T3 service will be the same as Customer’s T3 Service Term.

 

(5)   MCI
WorldCom is acting only as a reseller with respect to the hardware and software
offered under this Agreement (“Equipment”), which was manufactured by a third
party (“Manufacturer”). MCI WorldCom will provide first-level support for
Equipment, but will not repair or replace

 

Schedule 8B

MCI WORLDCOM Communications, Inc.

 

 

Equipment. Customer’s use of the Equipment is subject to the terms and
conditions of the Manufacturer’s end user agreement. Should Customer purchase
Equipment from MCI WorldCom, MCI WorldCom will ship the current MCI
WorldCom-tested version of the Equipment to the Customer.

 

(6)   Minimum
one year commitment required. No Term Discounts apply.

 

(7)   Discount
applicable only to Monthly Fee. At the conclusion of the Term Commitment, this
Agreement shall continue in effect on a month-to-month basis at MCI WorldCom
then-current list price for the service.

 

General
Terms and Conditions

 

This Service Agreement
(“Agreement”) for the services provided hereunder is made by and between
Customer (“Customer”) and MCI WORLDCOM Communications, Inc. “MCI WorldCom” as
used in this Agreement shall mean MCI WORLDCOM Communications, Inc., UUNET
Technologies, Inc. (“UUNET”) and their affiliates.

 

1.   MCI WorldCom exercises no
control over, and accepts no responsibility for, the content or the information
passing through UUNET’S host computers, network hubs, and points of presence
(the “UUNET Network”). EXCEPT AS EXPRESSLY SET FORTH IN SECTION 7 BELOW, MCI
WorldCom (a) MAKES NO WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, FOR
THE SERVICES AND EQUIPMENT IT IS PROVIDING and (b) DISCLAIMS ANY WARRANTY OF
TITLE, MERCHANTABILITY, NON-INFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE.
Use of any information obtained via the UUNET Network is at Customer’s own
risk. MCI WorldCom specifically denies any responsibility for the accuracy or
quality of information obtained through its services. MCI WorldCom shall not be
liable for any delay or failure in performance due to Force Majeure, which
shall include acts of God; earthquake; labor disputes; changes in law,
regulation, or government policy; riots; war; fire; epidemics; acts or
omissions of vendors or suppliers; equipment failures; transportation
difficulties; or other occurrences that are beyond MCI WorldCom’s reasonable
control.

 

2.   All users of the UUNET Network
and the service must comply with the then-current version of the UUNET
Acceptable Use Policy (“Policy”), which is part of this Agreement and is
available at the following URL www.uu.net/terms. MCI WorldCom reserves the
right to amend the Policy from time to time, effective upon either posting of
the revised Policy at the URL or providing other notice to Customer. MCI
WorldCom reserves the right to suspend the service or terminate this Agreement,
effective upon notice, for a violation of the Policy. Customer agrees to indemnify
and hold harmless MCI WorldCom from any losses, damages, costs, or expenses
resulting from any third-party claim or allegation (“Claim”) arising out at or
relating to use of the service, including any Claim that, if true, would
constitute a violation of the Policy.

 

3.   NEITHER PARTY SHALL BE LIABLE
FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES THAT
RESULT FROM CUSTOMERS OR CUSTOMER’S USERS’ USE OF THE UUNET NETWORK AND THE
SERVICE. INCLUDING, WITHOUT LIMITATION, ANY SUCH DAMAGES FOR LOSS OF DATA
RESULTING FROM DELAYS. NON-DELIVERIES, MISDELIVERIES, OR SERVICE INTERRUPTIONS.
Notwithstanding anything to the contrary stated in this Agreement, Customer’s
sole remedies for any claims relating to this service or the UUNET Network are
set forth in Section 7 below.

 

4.   Networks assigned from a UUNET
net-block are non-portable. Network space allocated by UUNET must be returned
in the event Customer discontinues service.

 

5.   Payment is due 30 days after
data of invoice. Accounts are in default if payment is not received within 30
days after date of invoice. If payment is returned to MCI WorldCom unpaid
Customer is immediately in default and subject to a returned check charge of
$25 from MCI WorldCom. Accounts unpaid 60 days after date of invoice may have
service interrupted or terminated. Such interruption does not relieve Customer
of the obligation to pay the Monthly Charge. Only a written request to
terminate Customer’s service relieves Customer of the obligation to pay the
Monthly Charge. Accounts in default are subject to an interest charge on the
outstanding balance of the lesser of 1.5% per month or the maximum rate
permitted by law. Customer agrees to pay MCI WorldCom its reasonable expenses,
including attorney and collection-agency Fees, incurred in enforcing its rights
under this Agreement. Prices are exclusive of any taxes which may be levied or
assessed upon the Equipment or services provided hereunder. Any such taxes
shall be paid by Customer. If Customer is exempt from otherwise applicable
taxes, Customer must submit its tax identification number and exemption
certificate at the same time it submits this Agreement

 

6.   Billing for MCI WorldCom
service will commence when UUNET hub and a functioning telephone circuit are
prepared to route IP packets to Customer’s site.  The Startup Charge is invoiced upon
acceptance of this Agreement by MCI WorldCom. Charges for Equipment shall be
invoiced upon shipment.  Service is
invoiced monthly in advance, and may be canceled only by 60 days’ advance
written notice. In the event of early cancellation of a Term, Customer will be
required to pay 75% of MCI WorldCom’s standard Monthly Charge for earth month
remaining in the Term. MCI WorldCom reserves the right to change the rates by
notifying Customer 60 days in advance of the effective date.

 

7.   The Service Level Agreement
(“SLA”) for this service, which is made part of this agreement, is set forth at
www.wcom.com/sla and applies only to customers agreeing to a Term of at least
one year. MCI WorldCom reserves the right to amend the SLA from time to time,
effective upon either posting of the revised SLA to this URL or providing other
notice to Customer. In the event of any amendment resulting in a material
reduction of the SLA’s service levels or credits. Customer terminate this
Agreement without penalty by providing MCI WorldCom written notice of
termination during the 30 days following notice of such amendment. The SLA sets
forth Customer’s sole remedies for any claim relating to this service or the
UUNET Network, including any failure to meet any guarantee set forth in the
SLA. MCI WorldCom’s records and data shall be the basis for all SLA
calculations and determinations. Notwithstanding anything to the contrary, the
maximum amount of credit in any calendar month under the SLA shall not exceed
the Monthly Fee and/or Startup Charge that, absent the credit, would have been
charged for MCI WorldCom service under the Agreement that month (collectively
the “MCI WorldCom Fees”), provided that the maximum amount of credit for
failure to meet the Availability Guarantee shall not exceed the sum of (a) the
MCI World Com Fees plus (b) the telephone company line charge that, absent the
credit, would have been charged for said month under this Agreement. For Shadow
T3 Service, this SLA is applicable only if Shadow T3 becomes standard T3
service. If Customer receives credits under this Section in three consecutive
months, Customer may terminate without penalty by providing thirty (30) days’
written notice of termination to MCI WorldCom

 

 

during the
fourth month and paying MCI WorldCom the list price of any Equipment provided
hereunder.

 

8.   MCI WorldCom subcontractors may
perform some or all of MCI WorldCom’s duties and/or obligations hereunder.
Neither party may use the other party’s name, trademark, trade names, or other
proprietary identifying symbols without the prior written approval of the other
party. Neither party may assign or transfer any of its rights or obligations
under this Agreement without the prior express, written consent of the other
party, provided that either party may assign or transfer this Agreement to any
affiliate of such party upon advance written notice to the other party. No
failure or delay on the part of either party to exercise any right or remedy
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right or remedy granted hereby or
by law.

 

9.   If Customer is reselling
services under this Agreement, Customer agrees to sell and bill its own
services under Customer’s own name, identity or mark, and Customer further
agrees not to reference MCI WorldCom name or marks in any context involving
Customer’s furnishing of services to the public. In addition to other
applicable remedies, MCI WorldCom shall be entitled to seek injunctive relief
with respect to any violation of this Paragraph 9. Any opportunity to cure a
breach of this Paragraph shall be subject to MCI WorldCom’s reasonable
satisfaction as to the curability of the original injury caused by such breach
and the effectiveness of any attempted cure. MCI WorldCom’s right to enforce
this Paragraph as a material provision of this Agreement shall not in any
manner require a showing of financial, legal or other loss or injury to MCI
WorldCom of any kind.

 

10. Customer understands and accepts
that, as part of MCI WorldCom’s normal business policy and practices and its
obligations under law, MCI WorldCom will engage in extensive marketing effort
in an attempt to sell its services to the public and that such efforts will
result in active competition with Customer for the business of users who are
Customer’s End Users or prospects, provided MCI WorldCom will not use
Confidential Information to actively compete with Customer. Accordingly,
Customer further understands and accepts that such competition by MCI WorldCom
is in all respects fair and proper and that Customer shall not complain, nor be
heard to complain, of business lost to MCI WorldCom. Under no circumstance
shall any inference be derived that MCI WorldCom’s entry into this Agreement
with Customer means that MCI WorldCom will restrict its efforts to compete
against Customer in any way,

 

11. Customer understands and accepts
that no fiduciary relationship arises by virtue of this Agreement and that,
accordingly, MCI WorldCom incurs none of the obligations that arise in such
relationship as an incident of its fulfilling its obligations under this
Agreement. Further, Customer understands and accepts that MCI WorldCom neither
insures the profits for Customer nor guarantees the success of Customer’s
business as a result of Customer’s receipt of Services under this Agreement.

 

11. This Agreement supersedes all previous
representations, understandings or agreements regarding the subject matter
hereof and shall prevail notwithstanding any variance with terms and conditions
of any order submitted. Acceptance of this Agreement by MCI WorldCom may be
subject, in MCI WorldCom’s absolute discretion, to satisfactory completion of a
credit check. Activation of service shall indicate MCI WorldCom’s acceptance of
this Agreement. Use of the UUNET Network constitutes acceptance of this
Agreement. In the event that the Federal Communications Commission or other
lawful authority determines that MCI WorldCom must contribute to support
government “Universal Service” programs based upon revenues obtained from the
provision of service hereunder, MCI WorldCom, without any further agreement of
Customer, may impose a Charge or charge designed to recover its required
contribution, based upon revenues earned under this Agreement.

 

Customer questions should be directed to Customer’s MCI WorldCom sales
representative.

 

Signature

	
  Customer
  Authorized Agent

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  	
  Date

  

 

 

OCDirect INTERNET ACCESS SERVICE AGREEMENT

 

	
  Customer
  Information

  	
   

  
	
  Company
  Name
Eschelon Telecom, Inc.

  	
   

  
	
  Billing
  Address-Line 1
730 2nd Ave South, Suite 1200

  	
   

  	
  Phone

  	
  Fax

  	
   

  	
   

  
	
  Billing
  Address-Line 2

  	
  City

  Minneapolis

  	
  State

  Minnesota

  	
  Zip + 4
  55402

  	
   

  	
   

  
	
  OCDirect
  OC3 Service (1), (2)

  	
   

  
	
  OC3
  Tiered Service (ATM) (3)

  	
  OC3 Flexible Service (4)

  

 

	
  Port

  (Mbps)

  	
   

  	
  Monthly
  Fee

  	
   

  	
  Start-Up
  Charge

  (5)

  	
   

  	
  Port

  (Mbps)

  	
   

  	
  Monthly
  Fee

  	
   

  	
  Start-Up
  Charge (5)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ATM

  	
   

  	
  POS

  	
   

  	
   

  	
   

  
	
  o 60

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  0-45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 70

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  45-60

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 80

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  60-70

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 90

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  70-80

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 100

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  80-90

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 120

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  90-100

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 140

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  100-155

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 155

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Term and
  Payment

  
	
  Term (6)

  ***

  	
  Term
  Discount (7)

  ***

  	
  Billing
  Preference
o
  Bill Existing MCI WorldCom Account

  No,

  o Bill to a new
  account number

  	
  Account No.
  of Existing MCI WorldCom 

  Connection:

  	
  If P. O.
  required, return it with Agreement.

  P. O. No.

  

 

Notes

(1)   Prices
do not include any telco line charges, equipment costs, or network applications
fees. Descriptions of the domain name, mail, news services, and other network
applications available in connection with this service, and the pricing and
additional terms applicable to these services, are set forth in the Network
Applications Fee Schedule available at www.uu.net/terms. MCI WorldCom reserves
the right to change the Network Applications Fee Schedule from time to time,
effective upon posting of the changes to that URL or other notice to Customer.

(2)   While
Customer can resell Internet connectivity, Customer cannot resell the service
in its entirety to another person or entity without the express prior written
consent of MCI WorldCom. If Customer resells Internet connectivity to end
users, Customer is responsible for: (i) providing the first point of contact
for end user support inquiries; (ii) providing software fulfillment to end
users; (iii) running its own primary and secondary domain name service (“DNS”)
for end users; (iv) registering end users’ domain names; (v) using BGP routing
to the UUNET Network, if requested by MCI WorldCom; (vi) collecting route
additions and changes, and providing them to MCI WorldCom; and (vii) registering
with the appropriate agency all IP addresses provided by MCI WorldCom to
Customer that are allocated to end users.

(3)   Customer
must provide 60 days’ prior written notice to MCI WorldCom before downgrading
to a lower service tier.

(4)   With
OC3 Flexible service, Customer receives full OC3 access to MCI WorldCom and can
burst to the full 155 Mbps at any time. Monthly billing is based on the level
of sustained use during the month, as determined by traffic samples taken every
five minutes. The level under which 95% of the samples fall is the sustained
use. Customer may move to a lower flexible service level if the sustained use
is at or below such flexible service level for at least two consecutive months
and Customer thereafter notifies MCI WorldCom in writing of its intent to move
to such lower flexible service level.

(5)   To
ensure proper installation, MCI WorldCom will order all telco lines. A ***
surcharge applies to Customer-ordered lines. Installation may be scheduled
between the hours of 8AM and 7PM ET Monday through Friday (excluding holidays).
If Customer requires installation outside of these hours MCI WorldCom will
charge an additional *** fee.

(6)   Minimum
one-year Term required. In some instances, the telco line provider may impose a
minimum term on the telco line that is longer than the Term of this Agreement.
If Customer has MCI WorldCom contract for the telco line on behalf of Customer,
and Customer discontinues service prior to the fulfillment of the minimum term
of the telco line, MCI WorldCom may charge Customer early termination penalties
imposed by the telco line provider.

(7)   Discount
applicable only to Monthly Fee. At the conclusion of the Term, this Agreement
shall continue in effect on a month-to-month basis at MCI WorldCom’s then-current
list price for the service.

 

General
Terms and Conditions

 

This Service Agreement
(“Agreement”) for the services provided hereunder is made by and between
Customer (“Customer”) and MCI WORLDCOM Communications, Inc. “MCI WorldCom” as
used in this Agreement shall mean MCI WORLDCOM Communications, Inc. UUNET
Technologies, Inc. (“UUNET”) and their affiliates.

 

1.          MCI
WorldCom exercises no control over, and accepts no responsibility for, the
content of the information passing through UUNET’s host computers, network
hubs, and points of presence (the “UUNET Network”). EXCEPT AS EXPRESSLY SET
FORTH IN SECTION 7 BELOW, MCI WORLDCOM (a) MAKES NO WARRANTIES OF ANY KIND,
WHETHER EXPRESS OR IMPLIED, FOR THE SERVICES AND EQUIPMENT IT IS PROVIDING and
(b) DISCLAIMS ANY WARRANTY OF TITLE, MERCHANTABILITY,

 

Schedule 8C

MCI WORLDCOM Communications, Inc.

 

 

NON-INFRINGEMENT,
OR FITNESS FOR A PARTICULAR PURPOSE. Use of any information obtained via the
UUNET Network is at Customer’s own risk. MCI WorldCom specifically denies any
responsibility for the accuracy or quality of information obtained through its
services. MCI WorldCom shall not be liable for any delay or failure in
performance due to Force Majeure, which shall include acts of God; earthquake;
labor disputes; changes in law, regulation, or government policy; riots; war;
fire; epidemics; acts or omissions of vendors or suppliers; equipment failures;
transportation difficulties; or other occurrences that are beyond MCI
WorldCom’s reasonable control. MCI WorldCom is acting only as a reseller with
respect to the hardware and software offered under this Agreement
(“Equipment”), which was manufactured by a third party (“Manufacturer”). MCI
WorldCom will provide first-level support for Equipment, but will not repair of
replace Equipment. Customer’s use of the Equipment is subject to the terms and
conditions of the Manufacturer’s end user agreement. Should Customer purchase
Equipment from MCI WorldCom, MCI WorldCom will ship the current MCI WorldCom
will ship the current MCI WorldCom-tested version of the Equipment to the
Customer.

 

2.          All
use of the UUNET Network and the service must comply with the then-current
version of the UUNET Acceptable Use Policy (“Policy”), which is part of this
Agreement and is available at the following URL: www.uu.net/terms. MCI WorldCom
reserves the right to amend the Policy from time to time, effective upon either
posting of the revised Policy at the URL or providing other notice to Customer.
MCI WorldCom reserves the right to suspend the service or terminate this
Agreement, effective upon notice, for a violation of the Policy. Customer
agrees to indemnify and hold it harmless MCI WorldCom from any losses, damages,
costs, or expenses resulting from any third-party claim or allegation (“Claim”)
arising out at or relating to use of the service, including any Claim that, if
true, would constitute a violation of the Policy.

 

3.          NEITHER
PARTY SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL. SPECIAL, PUNITIVE, OR
CONSEQUENTIAL DAMAGES THAT RESULT FROM CUSTOMERS OR CUSTOMER’S USERS’ USE OF
THE UUNET NETWORK AND THE SERVICE. INCLUDING, WITHOUT LIMITATION, ANY SUCH
DAMAGES FOR LOSS OF DATA RESULTING FROM DELAYS. NON-DELIVERIES, MISDELIVERIES,
OR SERVICE INTERRUPTIONS. Notwithstanding anything to the contrary stated in
this Agreement, Customer’s sole remedies for any claims relating to this
service or the UUNET Network are set forth in Section 7 below.

 

4.          Networks
assigned from a UUNET net-block are non-portable. Network space allocated by
UUNET must be returned in the event Customer discontinues service.

 

5.          Payment
is due 30 days after date of invoice. Accounts are in default if payment is not
received within 30 days after date of invoice. If payment is returned to UUNET
unpaid Customer is immediately in default and subject Customer to a MCI
WorldCom returned check charge of $25. Accounts unpaid 60 days after date of
invoice may have service interrupted or terminated. Such interruption does not
relieve Customer of the obligation to pay the Monthly Fee. Only a written
request to terminate Customer’s service relieves Customer of the obligation to
pay the Monthly Fee. Accounts in default are subject to an interest charge on
the outstanding balance of the lesser of 1.5% per month or the maximum rate
permitted by law. Customer agrees to pay MCI WorldCom its reasonable expenses,
including attorney and collection-agency Fees, incurred in enforcing its rights
under this Agreement. Prices are exclusive of any taxes which may be levied or
assessed upon the Equipment or services provided hereunder. Any such taxes
shall be paid by Customer. If Customer is exempt from otherwise applicable
taxes, Customer must submit its tax identification number and exemption
certificate at the same time it submits this Agreement

 

6.          Billing
for MCI WorldCom service will commence when a MCI WorldCom hub and a
functioning telephone circuit are prepared to route IP packets to Customer’s
site.  The Startup Charge is invoiced
upon acceptance of this Agreement by MCI WorldCom. Charges for Equipment shall
be invoiced upon shipment.  Service is
invoiced monthly in advance, and may be canceled only by 60 days’ advance
written notice. In the event of early cancellation of a Term, Customer will be
required to pay 75% of MCI WorldCom’s standard Monthly Charge for earth month
remaining in the Term. MCI WorldCom reserves the right to change the rates by
notifying Customer 60 days in advance

 

7.          The
Service Level Agreement (“SLA”) for this service to set forth at www.wcom.com/sla
and applies only to customers agreeing to a Term of at least one year. The SLA
is also only applicable to Shadow T1 service if the service becomes Standard T1
service. MCI WorldCom reserves the right to amend the SLA from time to time,
effective upon either posting of the revised SLA to this URL or providing other
notice to Customer. In the event of any amendment resulting in a material
reduction of the SLA’s service levels or credits. Customer terminate this
Agreement without penalty by providing MCI WorldCom written notice of termination
during the 30 days following notice of such amendment. The SLA sets forth
Customer’s sole remedies for any claim relating to this service or the MCI
WorldCom Network, including any failure to meet any guarantee set forth in the
SLA. MCI WorldCom’s records and data shall be the basis for all SLA
calculations and determinations. Notwithstanding anything to the contrary, the
maximum amount of credit in any calendar month under the SLA shall not exceed
the Monthly Fee and/or Startup Charge that, absent the credit, would have been
charged for MCI WorldCom service under the Agreement that month (collectively
the “MCI WorldCom Fees”), provided that the maximum amount of credit for
failure to meet the Availability Guarantee shall not exceed the sum of (a) the
MCI World Com Charges plus (b) the telephone company line charge that, absent
the credit, would have been charged for said month.

 

8.          MCI
WorldCom subcontractors may perform some or all of MCI WorldCom’s duties and
/or obligations hereunder. Neither party may use the other party’s name,
trademark, trade names, or other proprietary identifying symbols without the
prior written approval of the other party. Neither party may assign or transfer
any of its rights or obligations under this Agreement without the prior
express, written consent of the other party, provided that either party may
assign or transfer this Agreement to any affiliate of such party upon advance
written notice to the other party. No failure or delay on the part of either
party to exercise any right or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof or the exercise of any
other right or remedy granted hereby or by law.

 

9.          If
Customer is reselling services under this Agreement, Customer agrees to sell
and bill its own services under Customer’s own name, identity or mark, and
Customer further agrees not to reference MCI WorldCom name or marks in any
context involving Customer’s furnishing of services to the public. In addition
to other applicable remedies, MCI WorldCom shall be entitled to seek injunctive
relief with respect to any violation of this Paragraph 8. Any opportunity to
cure a breach of this Paragraph shall be subject to MCI WorldCom’s reasonable
satisfaction as to the curability of the original injury caused by such breach
and the effectiveness of any attempted cure. MCI

 

 

WorldCom’s
right to enforce this Paragraph as a material provision of this Agreement shall
not in any manner require a showing of financial, legal or other loss or injury
to MCI WorldCom of any kind.

 

10.    Customer
understands and accepts that, as part of MCI WorldCom’s normal business policy
and practices and its obligations under law, MCI WorldCom will engage in
extensive marketing effort in an attempt to sell its services to the public and
that such efforts will result in active competition with Customer for the
business of users who are Customer’s End Users or prospects, provided MCI WorldCom
will not use Confidential Information to actively compete with Customer.
Accordingly, Customer further understands and accepts that such competition by
MCI WorldCom is in all respects fair and proper and that Customer shall not
complain, nor be heard to complain, of business lost to MCI WorldCom. Under no
circumstance shall any inference be derived that MCI WorldCom’s entry into this
Agreement with Customer means that MCI WorldCom will restrict its efforts to
compete against Customer in any way,

 

11.    Customer
understands and accepts that no fiduciary relationship arises by virtue of this
Agreement and that, accordingly, MCI WorldCom incurs none of the obligations
that arise in such relationship as an incident of its fulfilling its
obligations under this Agreement. Further, Customer understands and accepts
that MCI WorldCom neither insures the profits for Customer nor guarantees the
success of Customers business as a result of Customer’s receipt of Services
under this Agreement.

 

12.    This
Agreement supersedes all previous representations, understandings or agreements
regarding the subject matter hereof and shall prevail notwithstanding any
variance with terms and conditions of any order submitted. Acceptance of this
Agreement by MCI WorldCom may be subject, in MCI WorldCom’s absolute
discretion, to satisfactory completion of a credit check. Activation of service
shall indicate MCI WorldCom’s acceptance of this Agreement. Use of the UUNET’s
Network constitutes acceptance of this Agreement. In the event that the Federal
Communications Commission or other lawful authority determines that MCI
WorldCom must contribute to support government “Universal Service” programs
based upon revenues obtained from the provision of service hereunder, the
Company, without any further agreement of Customer, may impose a Charge or
charge designed to recover its required contribution, based upon revenues
earned under this Agreement.

 

Customer questions should be directed to Customer’s MCI WorldCom sales
representative.

 

Signature

	
  Customer
  Authorized Agent

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  	
  DateExhibit 10.6.3

 

(Originally filed as Exhibit 10.8.3 to Form 10, File No. 0-50706)

 

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

 

THIRD
AMENDMENT TO

CARRIER
GLOBAL SERVICES AGREEMENT

 

THIS THIRD AMENDMENT TO MCI WORLDCOM CARRIER
GLOBAL SERVICES AGREEMENT (hereinafter referred to as the “Third Amendment”) is
entered into as of April 1, 2003 (the “Effective Date”)
by and between MCI WORLDCOM Communications, Inc.
(“WorldCom”) and Eschelon
Telecom, Inc. (“Customer”).
Acceptance of this Third Amendment by WorldCom is subject to Customer meeting
the terms and conditions set forth in the Tariffs, the Guide and WorldCom’s
standard credit terms and conditions, which may be based on commercially
available credit reviews to which Customer hereby consents.

 

WITNESSETH:

 

A.            Customer
and WorldCom entered into that certain MCI WorldCom Carrier Global Services
Agreement signed by Customer on July 28, 2000, including that certain
First Amendment signed by Customer on June 20, 2001, and that certain
Second Amendment executed by Customer on April 8, 2002 (collectively, the “Agreement”) with respect to certain services to be provided
to Customer by WorldCom, as more particularly described therein.

 

B.            Customer
and WorldCom desire to enter into this Third Amendment for the purpose of
further amending the Agreement.

 

NOW, THEREFORE, in consideration of the
mutual promises contained herein, the parties agree as follows:

 

1.                                       Definitions.
All capitalized terms used herein and not expressly defined herein shall have
the respective meanings given to such terms in the Agreement.

 

2.                                       Term.
- The parties agree to substitute Section 1 of Schedule One to the
Agreement to read in its entirety as follows:

 

Term.
The “Term” of this Agreement shall begin
upon the Commencement Date and continue through and include March 31,
2008.

 

3.                                       Commitment.
As of the Effective Date of this Third Amendment, the parties agree to
substitute Section 3 of the Agreement to read in its entirety as follows:

 

3.                                       Volume
Commitment. Commencing with the April, 2003 billing period and continuing
through the end of the Term (the “Commitment Period”),
Customer agrees to maintain Usage Charges equal to at least the amounts shown
below in the respective months listed (hereinafter referred to as the “Minimum Monthly Commitment”):

 

	
  Months

  	
   

  	
  Minimum Monthly Commitment

  
	
  April, 2003 through March, 2004

  	
   

  	
  ***

  
	
  April, 2004 through March, 2005

  	
   

  	
  ***

  
	
  April, 2005 through March, 2006

  	
   

  	
  ***

  
	
  April, 2006 through March, 2007

  	
   

  	
  ***

  
	
  April, 2007 through March, 2008

  	
   

  	
  ***

  

 

 

4.                                       Underutilization.
As of the Effective Date, the parties agree to substitute Section 4 of the
Agreement to read in its entirety as follows:

 

4.                                       Underutilization.
In the event Customer’s actual Usage Charges in any month shown above are less
than the applicable Minimum Monthly Commitment, then for such month(s) Customer
agrees to pay WorldCom the difference between Customer’s
actual Usage Charges and the applicable Minimum Monthly Commitment (the “Deficiency Charge”). The Deficiency Charge will be due at
the same time charges are due for Services provided in the month in which the
Deficiency Charge arose.

 

5.                                       Metro
Private Line Service Rates. Commencing with the Effective Date,
notwithstanding anything to the contrary contained in the Agreement, Customer’s
monthly recurring charges for “new” (i.e., installed on or after the Effective
Date) and existing Type I Metro Private Line Service will be as set forth below
based on the level of service provided (the “Special Rates”).
The Special Rates will not be subject to any discount. Customer’s monthly
recurring charges for all other Metro Private Line Service will be as set forth
in the Agreement.

 

	
  Point-to-Point Metro

  Private Line Service

  	
   

  	
  Monthly Recurring Charge

  
	
  DS-1 Level Service

  	
   

  	
  ***

  
	
  DS-3 Level Service

  	
   

  	
  ***

  

 

6.                                       Entire
Agreement. Except as expressly modified by the First Amendment, the Second
Amendment or this Third Amendment, the Agreement shall be and remain in full
force and effect in accordance with its terms and shall constitute the legal,
valid, binding, and enforceable obligations of Customer and WorldCom. This
Third Amendment, including the Agreement, the First Amendment and the Second
Amendment, the applicable WorldCom tariffs and the Guide, is the complete agreement
of the parties and supersedes any prior agreements or representations, whether
oral or written, with respect thereto. In the event of a conflict between the
terms of this Third Amendment and the Agreement, the First Amendment or the
Second Amendment, the terms of this Third Amendment shall govern. This Third
Amendment does not constitute the assumption of the Agreement as that term is
used under applicable bankruptcy law.

 

7.                                       Section References.  Section titles and references used in
this Third Amendment shall be without substantive meaning or content of any
kind whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

 

8.                                       Acceptance.
The offer created by this Third Amendment shall remain open and be capable of
being accepted by Customer until April 11, 2003.
Any and all prior offers made to Customer, whether oral or written, shall be
superseded by this offer. Once this Third Amendment has been fully executed,
any amendments must be in writing and signed by both parties.

 

IN WITNESS WHEREOF, WorldCom and Customer
have caused this Third Amendment to be duly executed by their authorized
representatives as of the dates set forth below.

 

	
  Eschelon Telecom, Inc.

  	
   

  	
  MCI WORLDCOM Communications, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard A. Smith

  	
   

  	
  By:

  	
  /s/ Peter M. Cassidy

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Richard A. Smith

  	
   

  	
  Name:

  	
  Peter M. Cassidy

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President and COO

  	
   

  	
  TItle:

  	
  VP, Wholesale Network Services

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  4/9/03

  	
   

  	
  Date:

  	
  4/23/03

  	
   

  
														

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]