Document:

Exhibit
10.33

MASTER
SERVICE AGREEMENT

 

This Master Service Agreement
(this “Agreement”) is entered into this 30th day of June, 2003
(“Effective Date”) by and between LEVEL 3 COMMUNICATIONS, LLC
(“Level 3”) and UNIVERSAL ACCESS, INC. (“Customer”).

 

ARTICLE 1.  DEFINITIONS

 

1.1 
“Affiliate” shall mean an entity
that now or in the future, directly or indirectly controls, is controlled by,
or is under common control with, a party to this Agreement.  For purposes of the foregoing, “control”
shall mean the ownership of (i) greater than fifty percent (50%) of the voting
power to elect the directors of the company, or (ii) greater than fifty
percent (50%) of the ownership interest in the company.

 

1.2  “Connection Notice” shall mean a written notice
from Level 3 that the Service ordered has been installed by Level 3 pursuant to
the Customer Order, and has been tested and is functioning properly.

 

1.3  “Customer Commit Date” shall mean the date that
Service will be available to Customer, as set forth in the Customer Welcome
Letter or such other written notice from Level 3 to Customer. By written notice to Level 3 delivered
not less than five (5) business days prior to a Customer Commit Date which has
been provided by Level 3 to Customer for On-Net Services, Customer may delay
the Customer Commit Date by up to 60 days beyond the original Customer Commit
Date supplied by Level 3.  No late
delivery credits or penalties shall apply in the event Customer chooses to
delay a Customer Commit Date.

 

1.4  “Customer Order” shall mean a request for
Service submitted by Customer in the form designated by Level 3 or agreed to by the parties.

 

1.5  “Customer Premises” shall mean the location
or locations occupied by Customer or its end users to which Service is
delivered.

 

1.6  “Customer Welcome Letter” shall mean a written
communication from Level 3 to Customer informing Customer of Level 3’s
acceptance of the Customer Order.

 

1.7  “Excused Outage” shall mean any outage,
unavailability, delay or other degradation of Service related to, associated
with or caused by scheduled maintenance events for which Customer has received
timely notice, Customer actions or inactions, Customer provided power or
equipment, any third party, excluding any third party directly involved in the
operation and maintenance of the Level 3 network but including, without
limitation, Customer’s end users, third party network providers, traffic
exchange points controlled by third parties, or any power, equipment or
services provided by third parties, or an event of force majeure as defined in
Section 7.1.

 

1.8  “Facilities” shall mean any property owned
or leased by Level 3 and used to deliver Service, including terminal and
other equipment, wires, lines, ports, routers, switches, channel service units,
data service units, cabinets, racks, private rooms and the like.

 

1.9  “Gateway” data center space owned or leased
by Level 3 for the purpose of, among other things, locating and colocating
communications equipment.

 

1.10  “Local Loop” shall mean the connection
between Customer Premises and a Level 3 Gateway or other Facility.

 

1.11  “Off-Net” shall mean Service that
originates from or terminates to any location that is not on the Level 3
network.

 

1.12  “On-Net” shall mean Service that
originates from and terminates to a location that is on the Level 3 network.

 

1.13  “Service” shall mean  any Level 3 service described in a Service Schedule
and identified on a particular line item of a Customer Order.

 

1.14 
“Service Commencement Date” shall mean  the first to
occur of  (i) the date set forth in any
Connection Notice, unless Customer notifies Level 3 that the Service is not
functioning properly as provided in Section 3.1 (or, if two or more Services
are designated as “bundled” or as having a “sibling relationship” in any
Customer Order, the date set forth in the Connection Notice for all such
Services); (ii) the date upon which Customer acknowledges that the Service has
been installed and is functioning properly (in the event Customer first
notifies Level 3 that the Service is not functioning properly as provided in
Section 3.1); or (iii) the date Customer begins using the Service.

 

1.15  “Service Schedule” shall mean a schedule
attached hereto, or signed between the parties from time to time and expressly
incorporated into this Agreement, setting forth terms and conditions specific
to a particular Service.

 

1.16  “Service Term” shall mean the duration of time (measured starting
on the Service Commencement Date) for which Service is ordered, as specified in
the Customer Order.  The Service Term
shall continue on a month-to-month basis after expiration of the stated Service
Term, until terminated by either Level 3 or Customer upon thirty (30) days’
prior written notice to the other.

 

ARTICLE 2. DELIVERY OF SERVICE

 

2.1 
Submission of Customer Order(s). To order any Service,
Customer may submit a Customer Order requesting Service. Unless otherwise
agreed, Customer is not obligated to submit Customer Orders.  The Customer Order and its backup detail
must include a description of the Service, the non-recurring charges and
monthly recurring charges for Service and applicable Service Term.

 

2.2 
Acceptance by Level 3.  Upon receipt of a Customer Order, if Level 3 determines (acting
in a commercially reasonable manner) to accept the Customer Order, Level 3 will
deliver a Customer Welcome Letter for the requested Service. If Level 3 is only
able to deliver a portion of the Service, it will so notify Customer to
determine if Customer would like Level 3 to accept that portion of the Customer
Order that Level 3 can deliver. Level 3 will become obligated to deliver an
ordered Service only if Level 3 has delivered a Customer Welcome Letter
for the Service.

 

2.3 
Credit Approval and Deposits.  If Customer’s financial information is not publicly available,
Customer will provide Level 3 with credit information as reasonably
requested, and 

 

1

 

delivery of new Service is subject to credit
approval.  Level 3 may require
Customer to make a deposit or deliver another form of security as a condition
to Level 3’s acceptance of any Customer Order.  The deposit will be held by Level 3 as security for payment
of Customer’s charges. When Service to Customer is terminated, the amount of
the deposit will be credited to Customer’s account and any remaining credit
balance will be refunded.

 

2.4  Customer Premises.  Customer shall allow Level 3 access to
the Customer Premises to the extent reasonably required by Level 3 for the
installation, inspection and scheduled or emergency maintenance of Facilities
relating to the Service.  Level 3
shall notify Customer at least *** business days in advance of any regularly
scheduled maintenance that will require access to the Customer Premises or that
may result in the interruption of Service. Customer will be responsible for
providing and maintaining, at its own expense, the level of power, heating and
air conditioning necessary to maintain the proper environment for the
Facilities on the Customer Premises. In the event Customer fails to do so,
Customer shall reimburse Level 3 for the actual and reasonable cost of
repairing or replacing any Facilities damaged or destroyed as a result of
Customer’s failure.  Customer will
provide a safe place to work and comply with all laws and regulations regarding
the working conditions on the Customer Premises.

 

2.5  Level 3
Facilities.  Except as
otherwise agreed, title to all Facilities shall remain with Level 3. Level 3
will provide and maintain the Facilities in good working order. Customer shall
not, and shall not permit others to, rearrange, disconnect, remove, attempt to
repair, or otherwise tamper with any Facilities, without the prior written
consent of Level 3. The Facilities shall not be used for any purpose other than
that for which Level 3 provides them. Customer shall not take any action that
causes the imposition of any lien or encumbrance on the Facilities. In no event
will Level 3 be liable to Customer or any other person for interruption of
Service or for any other loss, cost or damage caused by or related to improper
use or maintenance of the Facilities by Customer or any third party gaining
access to the Facilities by Customer in violation of this Agreement, and
Customer shall reimburse Level 3 for any damages incurred as a result thereof,
including to the Facilities (reasonable wear and tear excepted). Customer agrees (which
agreement shall survive the expiration, termination or cancellation of any
Customer Order) to allow Level 3 to remove the Facilities from the Customer Premises:

 

(A)          after termination,
expiration (if the Service Term is not continuing) or cancellation of the
Service Term of any Service in connection with which the Facilities were used;
or

 

(B)           for repair,
replacement or otherwise as Level 3 may determine is necessary or desirable,
but Level 3 will use reasonable efforts to minimize disruptions to the Service
caused thereby.

 

2.6  Customer-Provided
Equipment. Level 3 may install certain Customer-provided communications
equipment upon installation of Service, but Level 3 shall not be
responsible for the operation or maintenance of any Customer-provided
communication equipment. Level 3 undertakes no obligations and accepts no
liability for the configuration, management, performance or any other issue
relating to Customer’s routers or other Customer-provided equipment used for
access to or the exchange of traffic in connection with the Service.

 

ARTICLE 3. BILLING AND PAYMENT

 

3.1 
Commencement of Billing.  Upon installation and testing of the Service ordered in any
Customer Order, Level 3 will deliver to Customer a Connection Notice.  Upon receipt of the Connection Notice,
Customer shall have a period *** to confirm that the Service has been installed
and is properly functioning.  Unless
Customer delivers written notice to Level 3 within such *** period that the
Service is not installed in accordance with the Customer Order and functioning
properly, billing shall commence on the applicable Service Commencement Date,
regardless of whether Customer has procured services from other carriers needed
to operate the Service, and regardless of whether Customer is otherwise
prepared to accept delivery of ordered Service, so long as unless
Customer agrees, Customer shall not be obligated to  pay for Services delivered prior to the Customer Commit Date.

 

3.2 
Charges. 
The Customer Order will set forth the applicable non-recurring charges
and recurring charges for the Service. 
Unless otherwise expressly specified in the Customer Order, any
non-recurring charges shall be invoiced by Level 3 to Customer upon the Service
Commencement Date.  However, in the
event such Service requires Level 3 to install additional infrastructure,
cabling, electronics or other materials in the provision of the Service, such
Customer Order may include (as specified therein) non-recurring charges that
are payable by Customer in advance of the Service Commencement Date, as
mutually agreed between the parties.  In
the event Customer fails to pay such non-recurring charges within the time
period specified in the Customer Order, 
(i) such failure to pay shall constitute an Excused Outage for purposes
of installation of the Service; (ii) Level 3 may issue a revised Customer
Commit Date; and (iii) Level 3 may suspend installation of the Service until
receipt of such non-recurring charges. 
If Customer requests and Level 3 approves (in its reasonable discretion)
any changes to the Customer Order or Service after acceptance by Level 3,
including, without limitation, the Service installation date or Service Commencement
Date, additional non-recurring charges and/or monthly recurring charges not
otherwise set forth in the Customer Order may apply.

 

3.3 
Payment of Invoices.  Invoices are delivered monthly. Level 3 bills in advance for
Service to be provided during the upcoming month, except for charges that are
dependent upon usage of Service, which are billed in arrears. Billing for
partial months is prorated based on a calendar month.  All invoices are due thirty (30) days after the date of date of
the invoice.   Unless otherwise
specified on the particular invoice, all payments shall be due and payable in
U.S. Dollars.  *** days of the date of
invoice shall bear interest at the rate of
one and one-half percent (1.5%) per month (or the highest rate allowed by law,
whichever is less) beginning from the date first due until paid in full.  ***. 
Level 3 shall direct invoices to:

 

Universal Access, Inc.

233 S. Wacker Drive

Chicago, Illinois 60606

Attn: Carrier Audit

 

Customer may change to
the invoice recipient mentioned above on thirty (30) days’ notice to billing@Level3.com.

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

2

 

3.4 
Taxes and Fees. All charges for Service are net of Applicable Taxes (as defined
below).  Except for taxes based on Level
3’s net income, Customer will be responsible for all applicable taxes that
arise in any jurisdiction, including, without limitation, value added,
consumption, sales, use, gross receipts, excise, access, bypass, franchise or
other  taxes, fees, duties, charges or
surcharges, however designated, imposed on, incident to, or based upon the
provision, sale or use of the Service (collectively “Applicable Taxes”).  If Customer is entitled to an
exemption from any Applicable Taxes, Customer is responsible for presenting
Level 3 with a valid exemption certificate (in a form reasonably acceptable to
Level 3).  Level 3 will give effect to
any valid exemption certificate provided in accordance with the foregoing
sentence to the extent it applies to any Service billed by Level 3 to Customer
following Level 3’s receipt of such exemption certificate.

 

3.5 
Regulatory and Legal Changes. In the event of any
change in applicable law, regulation, decision, rule or order that materially
increases the costs or other terms of delivery of Service, Level 3 and
Customer will negotiate regarding the rates to be charged to Customer to
reflect such increase in cost and, in the event that the parties are unable to
reach agreement respecting new rates within thirty (30) days after
Level 3’s delivery of written notice requesting renegotiation, then (a)
Level 3 may pass such increased costs through to Customer, and (b) if
Level 3 elects to pass such increased costs through to Customer, Customer may
terminate the affected Service without termination liability by delivering
written notice of termination no later than *** days after the effective date
of the rate increase.

 

3.6 
Disputed Invoices.  If Customer reasonably disputes any portion of a Level 3
invoice, Customer must pay the undisputed portion of the invoice and submit
written notice of the claim (in a form that sets forth the basis of the dispute
in reasonable detail) for the disputed amount. 
All claims must be submitted to Level 3 in writing within *** from
the date of the invoice for those Services. 
Customer waives the right to dispute any charges not disputed within such
*** period.  In the event that the
dispute is resolved against Customer, Customer shall pay such amounts plus
interest at the rate referenced in Section 3.3.  If the dispute is resolved in favor of Customer, Level 3 will
promptly apply a credit to Customer’s account in such amount, together with a
credit in the amount of any interest charges and Applicable Taxes that have
been imposed and which relate to the disputed amount.  Level 3 will continue to provide the affected Service(s) during
any dispute provided the total unpaid balance, less any portion that is
disputed in good faith, does not exceed Customer’s credit limit. Customer shall not be obligated to pay
any invoice first delivered by Level 3 more than *** after the end of the month in which the
Services stated therein were delivered.

 

3.7 
Termination Charges.

 

(A)          Customer may cancel a
Service without liability following Level 3’s acceptance of the applicable
Customer Order but prior to the Customer’s receipt of the Connection Notice by
providing written notice to Level 3 no more than *** prior to the Customer
Commit Date.  In the event that Customer
provides notice less than *** prior to the Customer Commit Date, or in the
event that the delivery of such Service is terminated by Level 3 prior to delivery
of a Connection Notice due to a failure of Customer to comply with the terms of
this Agreement or any Customer Order, Customer shall pay Level 3 a cancellation
charge equal to the sum of (1) in the case of Colocation Space, the costs
incurred by Level 3 in returning the Colocation Space to a condition suitable
for use by third parties, plus (2):

 

                ***

 

Customer’s right to cancel any particular Service under this Section
3.7(A) shall automatically expire and shall no longer apply on and after Customer’s
receipt of a Connection Notice.

 

(B)           In addition to
Customer’s right of cancellation under Section 3.7(A) above, Customer may
terminate Service prior to the end of the Service Term upon thirty (30) days’
prior written notice to Level 3.  In the
event that, after the Service Commencement Date and prior to the end of the
Service Term, Customer terminates Service or in the event that the delivery of
Service is terminated due to a failure of Customer to comply with the terms of
this Agreement or any Customer Order, Customer shall pay Level 3 a termination
charge equal to the sum of (1) in the case of Colocation Space, the costs
incurred by Level 3 in returning the Colocation Space to a condition suitable
for use by third parties, plus (2):

 

                ***

                Notwithstanding the
foregoing, in no event will the early termination charges under this Agreement
exceed 100% of the remaining monthly recurring charges for the Service.

 

(C)           Customer
may, upon at least thirty (30) days prior written notice to Level 3, terminate
its use of Service after the delivery of a Connection Notice but prior to the
end of the Service Term without the payment of any applicable termination
liability if: ***

 

3.8 
Fraudulent Use of Services. Customer is responsible
for all charges attributable to Customer incurred respecting Service, even if
incurred as the result of fraudulent or unauthorized use of Service; except
Customer shall not be responsible for fraudulent or unauthorized use by Level 3
or its employees. In addition, Customer will not be responsible for charges
incurred after Customer requests that Level 3 block the fraudulent or
unauthorized use of a Service.

 

3.9 
Offset. In the event any amount owed by Customer to Level
3 becomes thirty (30) days or more past due, Level 3 shall have the right on
notice to Customer to offset any amounts owed by Level 3 to Customer against
such delinquent amounts.

 

ARTICLE 4. TERM AND TERMINATION

 

4.1 Term.

 

(A)          This
Agreement shall become effective on the Effective Date and shall continue until
October 31, 2006 (“Agreement Term”), unless earlier terminated as provided
herein.  At the end of the initial
Agreement Term, the Agreement Term shall automatically renew on a
month-to-month basis until terminated by either party upon thirty (30) days’
prior written notice to the other party.

 

(B)           Except as otherwise set forth herein,
Level 3 shall deliver the Service for the entire duration of the Service Term,
and Customer shall pay all charges for delivery thereof through 

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

3

 

 

the
end of the Service Term.  To the extent
that the Service Term for any Service extends beyond the Agreement Term, then
this Agreement shall remain in full force and effect for such Service until the
expiration or termination of such Service Term.

 

4.2  Default By Customer.  If (i) Customer makes a general assignment for
the benefit of its creditors, files a voluntary petition in bankruptcy or any
petition or answer seeking, consenting to, or acquiescing in reorganization,
arrangement, adjustment, composition, liquidation, dissolution or similar
relief; (ii) an involuntary petition in bankruptcy, other insolvency protection
against Customer is filed and not dismissed within sixty (60) days; (iii)
Customer fails to make any payment required hereunder when due, and such
failure continues for a period of five ***days after written notice from Level
3, (iv) Customer fails to observe and perform any material term of this
Agreement (other than payment terms) and such failure continues for a period of
thirty (30) days after written notice from Level 3; or (v) Customer’s use of Service
materially exceeds Customer’s credit limit, unless within *** days’ written
notice thereof by Level 3, Customer provides adequate security for payment for
Service; then Level 3 may:  (A)
terminate this Agreement and any Customer Order, in whole or in part, in which
event Level 3 shall have no further duties or obligations thereunder, and/or
(B) subject to Section 5.1, pursue any remedies Level 3 may have under this
Agreement, at law or in equity.

 

4.3  Default By Level 3.  If (i) Level 3 makes a general assignment
for the benefit of its creditors, files a voluntary petition in bankruptcy or
any petition or answer seeking, consenting to, or acquiescing in reorgani­zation,
arrangement, adjustment, composition, liquidation, dissolution or similar
relief; (ii) an invol­untary petition in bankruptcy, other insolvency
protection against Level 3 is filed and not dismissed within sixty (60) days;
or (iii) Level 3 fails to observe and perform any material term of this
Agreement (other than as provided in Section 4.4 and Article 6) and such
failure continues for a period of thirty (30) days after written notice from
Customer; then Customer may:  (A)
terminate this Agreement and/or any Customer Order, in whole or in part, in
which event Customer shall have no further duties or obligations thereunder,
and/or (B) subject to Section 5.1, pursue any remedies Customer may have under
this Agreement, at law or in equity.

 

4.4  Other
Rights of Termination.

 

(A)          If Level 3’s installation of Service
is delayed for more than *** days beyond the Customer Commit Date for reasons
other than an Excused Outage, Customer may terminate and discontinue the
affected Service upon written notice to Level 3 and without payment of any
applicable termination charge; provided such written notice is delivered prior
to Level 3 delivering to Customer the Connection Notice for the affected
Service.  This Section 4.4(A) shall not
apply to any Off-Net Local Loop Service, including, without limitation, (3)LinkSM
Metropolitan  Private Line (Off-Net) Service, provisioned by
Level 3 through a third party carrier for the benefit of Customer.

 

(B)           Customer may terminate and
discontinue affected Service prior to the end of the Service Term without
payment of any applicable termination charge if: (i) such Service is
Unavailable (as defined below) on *** or more separate occasions of more than
*** hours each in any *** day period (“First Unavailability Event”); and (ii)
following written notice thereof from Customer to Level 3 within the ***
day period following the First Unavailability Event, the same Service is
Unavailable for more than *** hours at any time within the *** day period
following the First Unavailability Event. 
For purposes of the foregoing, “Unavailable” shall mean a total
interruption in Service, except for any interruption that is an Excused
Outage.  The duration of any
interruption will commence when Customer reports an outage to the Level 3
Customer Service and Support Organization (1-877-4LEVEL3) and will end when the
Service is operative.  Customer may only
terminate Service that is Unavailable, and must exercise its right to terminate
any affected Service under this Section, in writing, within thirty (30) days
after the event giving rise to a right of termination hereunder.  This Section 4.4(B) shall not apply to any
Unprotected Service, including, without limitation, any Unprotected (3)LinkSM
Private Line Service or (3)LinkSM Global Wavelength Service.

 

(C)           In the event Customer elects to
cancel the affected Service pursuant to this Section 4.4, Customer shall have
no right to, and Level 3 shall have no obligation to issue, any Service Level
credit(s) for the discontinued Service.

 

ARTICLE 5. LIABILITIES AND INDEMNIFICATION

 

5.1 
No Special Damages.  Notwithstanding any other provision hereof (other than Section
5.3), neither party shall be liable for any indirect, incidental, special,
consequential, exemplary or punitive damages (including, without limitation,
damages for lost profits, lost revenues or the cost of purchasing replacement services)
arising out of the performance or failure to perform under any Customer
Order.  Nothing in this Agreement shall
be construed as limiting the liability of either party for personal injury or
death resulting from the negligence of a party or its employees.

 

5.2 
Disclaimer of Warranties.  LEVEL 3 MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR
IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTORY OR OTHERWISE,
INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE, EXCEPT
THOSE EXPRESSLY SET FORTH IN ANY APPLICABLE SERVICE LEVELS (as defined below).

 

5.3  Indemnification. Each party
shall indemnify the other from any claims by third parties and expenses
(including legal fees and court costs) respecting damage to tangible property,
personal injury or death caused by such party’s negligence or willful
misconduct.

 

ARTICLE 6.  SERVICE LEVELS

 

6.1  Service Interruptions and
Delivery.  Level 3
provides specific remedies regarding installation and performance of Service as
set forth in the particular Service Schedule (“Service Levels”). In the event
of a failure to deliver Service in accordance with the Service Levels,
Customer’s sole remedies are contained in (a) the Service Levels applicable (if
any) to the affected Service, and  (b) Section
4.4.

 

6.2  Service Level Credits.  In the event Level 3 does not achieve a
particular Service Level in a particular month, Level 3 will issue a credit to
Customer as set forth in the applicable Service Schedule upon Customer’s
request. To request a credit, Customer must contact Level 3 Customer Service or
deliver a written request (in a form reasonably acceptable to 

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

4

 

Level 3) pursuant to Section 7.4 within
sixty (60) days of the end of the month for which a credit is requested.  Level 3 Customer Service may be contacted by
calling toll free in the U.S. 1-877-4LEVEL3 (1-877-453-8353) or such other
numbers for Level 3 Customer Service in other countries as published on
www.level3.com.  In no event shall the
total amount of credits issued to Customer per month exceed the non-recurring
charges and monthly recurring charges invoiced to Customer for the affected
Service for that month.  Scheduled
maintenance of the Level 3 network whether by Level 3 or third party under the
control or direction of Level 3 will not normally result in Service
interruption or outage.  However, in the
event scheduled maintenance should require a Service interruption or outage,
Level 3 will (i) provide Customer with *** prior notice of such scheduled
maintenance, (ii) work with Customer in good faith to attempt to minimize any
disruption in Customer’s services that may be caused by such scheduled
maintenance, and (iii) to perform such schedule maintenance during the non-peak
hours of 12:00 a.m. (midnight) until 6:00 a.m. local time.  Any scheduled maintenance of the Level 3
network that impacts any Service shall be considered an Excused Outage and
shall not be subject to credits under the Service Levels set forth in this
Agreement; provided any scheduled maintenance event shall not exceed more than
***  of Service interruption or outage,
unless otherwise agreed between the parties. 
In the event any scheduled maintenance event exceeds more than *** of
Service interruption or outage and is not otherwise agreed between the parties,
such Service interruption or outage in excess of *** shall be included in the
calculation for determining Service Level credits (if any) under the applicable
Service Levels set forth in this Agreement.

 

ARTICLE 7. 
GENERAL TERMS

 

7.1 
Force Majeure.  Neither party shall be liable, nor shall any credit allowance or
other remedy be extended, for any failure of performance or equipment due to
causes beyond such party’s reasonable control (“force majeure event”).  In the event Level 3 is unable to
deliver Service as a result of a force majeure event, Customer shall not be
obligated to pay Level 3 for the affected Service for so long as
Level 3 is unable to deliver the affected Service. In the event an event of force majeure
continues for more than *** consecutive days, Customer may terminate the affected
Service without liability.

 

7.2 
Assignment and Resale. Customer may not assign
its rights and obligations under this Agreement or any Customer Order without
the express prior written consent of Level 3, which consent will not be
unreasonably withheld. Notwithstanding the foregoing, Customer may assign its
rights and obligations under this Agreement or any Customer Order without the
express prior written consent of Level 3 with respect to a merger or the sale
of substantially all of Customer’s assets, so long as such assignment can be
accomplished without interruption of the use or location of Service.  This Agreement shall apply to any permitted
transferees or assignees. Notwithstanding any assignment by Customer, Customer
shall remain liable for the payment of all charges due under each Customer
Order.  Customer may resell the Service
to third party “end users”; provided that Customer agrees to indemnify, defend
and hold Level 3 harmless from claims made against Level 3 by such end users.

 

7.3  Affiliates.

 

(A)
If a Customer Order requires the provision of Service to Customer in a country
other than the country within which this Agreement has been executed, such
Service may be provided to Customer by an Affiliate of Level 3 authorized to provide
such Service in such country.  If a
Customer Order requires the delivery of Service in a jurisdiction where, in
order for such Customer Order to be enforceable against the parties, additional
terms must be added, then the parties shall incorporate such terms into the
Customer Order (preserving, to the fullest extent possible, the terms of this
Agreement).

 

(B) The parties acknowledge and agree that
Customer’s Affiliates may purchase Service under this Agreement; provided,
however, any such Customer Affiliate purchasing Service hereunder agrees that
such Service is provided pursuant to and governed by the terms and conditions
of this Agreement.  Customer shall be
jointly and severally liable for all claims and liabilities arising under this
Agreement related to Service ordered by any Customer Affiliate, and any event
of default under this Agreement by any Customer Affiliate shall also be deemed
an event of default by Customer.  Any
reference to Customer in this Agreement with respect to Service ordered by a
Customer Affiliate shall be deemed a reference to the applicable Customer
Affiliate.

 

(C)
Notwithstanding anything in this Agreement to the contrary, either party may
provide a copy of this Agreement to its Affiliate or such other party’s
Affiliate for purposes of this Section 7.3, without notice to, or consent of,
the other party.

 

7.4 
Notices. Notices hereunder shall be deemed properly
given when delivered, if delivered in person, or when sent via overnight
courier, facsimile, electronic mail (if an e-mail address is provided below) or
when deposited with the U.S. Postal Service (or other applicable postal
delivery service), addressed as follows:

 

If to Level 3:

 

For billing
inquiries/disputes, requests for Service Level credits and/or requests for disconnection
of Service (for other than default):

 

Level 3 Communications, LLC

1025 Eldorado Blvd.

Broomfield, Colorado  80021

Attn: Director, Billing

Facsimile:  (877) 460-9867

E-mail: billing@level3.com

 

For all other notices:

 

Level 3 Communications, LLC

1025 Eldorado Blvd.

Broomfield, Colorado  80021

Attn: General Counsel

Facsimile: 
(720) 888-5128

 

If to Customer:

 

Universal Access, Inc.

233 S. Wacker Drive

Chicago, Illinois 60606

Attn: General Counsel

Facsimile: 
(312) 660-1290

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

5

 

 

With a copy to:

 

Universal Access, Inc.

233 S. Wacker Drive

Chicago, Illinois 60606

Attn: Chief Financial
Officer

 

or at such other address as the party to
whom notice is to be given may have furnished to the other party in writing in
accordance herewith.  Notwithstanding
the foregoing, any notices delivered by Level 3 to Customer in the normal
course of provisioning of Service hereunder shall be deemed properly given if
delivered via any of the methods described above or via electronic mail to the
address listed on any Customer Order.

 

7.5 
Application of Tariffs.  Level 3 may elect or be required to file with the
appropriate regulatory agency tariffs respecting the delivery of certain
Service.  In the event that such tariffs
are filed respecting Service ordered by Customer, then (to the extent such provisions
are not inconsistent with the terms of a Customer Order and this Agreement) the
terms set forth in the applicable tariff shall govern Level 3’s delivery
of, and Customer’s consumption or use of, such Service.

 

7.6  Acceptable Use Policy.  Customer’s use of Service shall at all times
comply with Level 3’s then-current Acceptable Use Policy and Privacy
Policy, as amended by Level 3 and communicated in writing to Customer from
time to time and which are also available through Level 3’s web site at
www.level3.com.  Level 3 will
notify Customer of complaints received by Level 3 regarding each incident
of alleged violation of Level 3’s Acceptable Use Policy by Customer or
third parties that have gained access to the Service through Customer.  Customer agrees that it will promptly
investigate all such complaints and take all necessary actions to remedy any
actual violations of Level 3’s Acceptable Use Policy.  Level 3 may identify to the complainant
that Customer, or a third party that gained access to the Service through
Customer, is investigating the complaint and may provide the complainant with
the necessary information to contact Customer directly to resolve the
complaint.  Customer shall identify a
representative for the purposes of receiving such communications.  Level 3 reserves the right to install
and use, or to have Customer install and use, any appropriate devices to
prevent violations of its Acceptable Use Policy, including devices designed to
filter or terminate access to Service.

 

7.7  Data Protection. 
During the performance of this Agreement, it may be necessary for Level
3 to transfer, process and store data in and to the United States.  Customer hereby consents that Level 3 may
(i) transfer, store and process such data in the United States; and (ii) use
such data for its own internal purposes and as allowed by law.  This data will not be disclosed to third
parties.

 

7.8 
Contents of Communications.  Level 3 shall have no liability or responsibility for the
content of any communications transmitted via the Service, and Customer shall
defend, indemnify and hold Level 3 harmless from any and all claims
(including claims by governmental entities seeking to impose penal sanctions)
related to such content or for claims by third parties relating to Customer’s
use of Service.  Level 3 provides
only access to the Internet; Level 3 does not operate or control the
information, services, opinions or other content of the Internet.  Customer agrees that it shall make no claim
whatsoever against Level 3 relating to the content of the Internet or
respecting any information, product, service or software ordered through or
provided by virtue of the Internet.

 

7.9  Publicity.  Neither party shall have the right to use
the other party’s or its affiliates’ trademarks, service marks or trade names
or to otherwise refer to the other party in any marketing, promotional or
advertising materials or activities. 
Neither party shall issue any publication or press release relating to any
contractual relationship between Level 3 and Customer, except as may be
required by law or agreed between the parties in writing.

 

7.10  Non-Disclosure.  Any information or
documentation disclosed between the parties during the performance of this
Agreement shall be subject to the terms and conditions of the applicable
non-disclosure agreement then in effect between the parties.

 

7.11  Disclosure of
Customer Information. Level 3 may disclose to any customer
or potential customer bound by a nondisclosure agreement access to a list of
Level 3’s customers and a description of Service purchased by such
customers.  Customer consents to the
disclosure that it is a customer of Level 3. 
Any other disclosure, including the listing of the Services purchased by
such Customer requires Customer’s written consent.

 

7.12  Governing Law.  This Agreement shall be
governed and construed in accordance with the laws of the State of New York,
U.S.A., without regard to its choice of law rules.

 

7.13 
Entire Agreement.  This Agreement, including any Service
Schedule(s) and Customer Order(s) executed hereunder, constitutes the entire
and final agreement and understanding between the parties with respect to the
Service and supersedes all prior agreements relating to the Service, which are
of no further force or effect.  The
Service Schedules attached hereto are listed below:

 

Service Schedule— (3)LinkSM Private Line Service

Service Schedule— (3)LinkSM Global Wavelength Service

Service Schedule— (3)PacketSM Service

Service Schedule— (3)CrossRoadsSM Service

Service Schedule— (3)ConnectSM Modem Service

Service Schedule— (3)LinkSM Cross Connect Service and Mondo
Condo Fiber Link Service

 

and are integral parts hereof and are hereby made a part of this
Agreement.

 

7.14  Amendment.  This Agreement, and any Service Schedule or Customer Order, may
only be modified or supplemented by an instrument in writing executed by a duly
authorized representative of each party. 
Without limiting the generality of the foregoing, any handwritten
changes to a Customer Order shall be void unless acknowledged and approved in
writing by a duly authorized representative of each party.

 

7.15  Order of Precedence.  In the event of any conflict between this
Agreement and the terms and conditions of any Service Schedule and/or Customer
Order, the order of precedence is as follows: (1) the Service Schedule, (2)
this Agreement, and (3) the Customer Order.

 

7.16  Survival.    The provisions of this Article 7 and Articles 3, 5
and 6 and any other provisions of this Agreement that by their nature are meant
to survive the expiration or termination of this Agreement shall survive the
expiration or termination of this Agreement.

 

6

 

7.17  Relationship of the Parties.  The relationship between Customer and Level
3 shall not be that of partners, agents, or joint venturers for one another,
and nothing contained in this Agreement shall be deemed to constitute a
partnership or agency agreement between them for any purposes, including ,
without limitation, for federal income tax purposes.

 

7.18 
No Waiver.  No
failure by either party to enforce any right(s) hereunder shall constitute a
waiver of such right(s).

 

7.19 
Severability.  If any provision of this Agreement shall be
declared invalid or unenforceable under applicable law, said provision shall be
ineffective only to the extent of such declaration and shall not affect the
remaining provisions of this Agreement. 
In the event that a material and fundamental provision of this Agreement
is declared invalid or unenforceable under applicable law, the parties shall
negotiate in good faith respecting an amendment hereto that would preserve, to
the fullest extent possible, the respective benefits and burdens imposed on
each party under this Agreement as originally executed.

 

7.20  Joint
Product.  The parties
acknowledge that this Agreement is the joint work product of the parties.  Accordingly, in the event of ambiguities in
this Agreement, no inferences shall be drawn against either party on the basis
of authorship of this Agreement.

 

7.21 
Third Party Beneficiaries.  This Agreement shall be binding upon, inure
solely to the benefit of and be enforceable by each party hereto and their
respective successors and assigns hereto, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any thirty party any
right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

 

7.22  Counterparts.  This Agreement may be executed in one or more counterparts, all
of which taken together shall constitute one and the same instrument.

 

Article 8. 
Commitments.  

 

8.1  Revenue Commitment.

 

During the Agreement Term, Customer commits to purchase total
cumulative Services hereunder following amounts (each, an “Annual Commitment”):

 

	
  Year

  	
   

  	
  Annual Commitment

  	
   

  
	
  2003

  	
   

  	
  $

  	
  2,100,000

  	
  *

  
	
  2004

  	
   

  	
  $

  	
  2,100,000

  	
   

  
	
  2005

  	
   

  	
  $

  	
  2,100,000

  	
   

  
	
  2006 (January
  through October)

  	
   

  	
  $

  	
  1,750,000

  	
   

  

*Calculation of compliance with the Annual Commitment in 2003 will
include Customer’s purchases of (1) Level 3 Services commencing on January 1,
2003, and (2) services purchased from Genuity under the Capacity Agreement (as
defined in Article 9) commencing on February 1, 2003.

 

8.2  Take or Pay.

 

(A)          The Annual Commitment
is a take or pay commitment. In addition to all other charges due under the
Agreement for Service provided by Level 3 to Customer, for any year (the
partial year and 2006 shall each be deemed a “year” for purposes of this
Article 8) in which Customer fails to satisfy the Annual Commitment, Customer
hereby agrees to pay Level 3, in addition to all other charges then due and
owing, a shortfall fee (“Shortfall Fee”) equal to the difference between the
amount actually paid for Services and the relevant Annual Commitment.  Any Shortfall Fee shall be due and owing
within thirty (30) days following the end of the particular year in which the
Annual Commitment has not been satisfied. 
For purposes of this Article 8, “Services” shall not include (i) taxes,
fees and other surcharges, or (ii) any amounts for or associated with Transferred
Circuits as defined in that certain Transfer Agreement of even date herewith
between Level 3 and Customer, but will include the pro rated portion of any
charges associated with Customer’s purchase of IRU capacity from Level 3.  Such pro rated portion of any IRU charges
will be calculated on a monthly basis by taking the total cost of the IRU and
dividing it by the total number of months for which Customer purchases such IRU
capacity from Level 3.

 

(B)           To the extent that
Customer fails to meet an Annual Commitment and such failure is due to Level
3’s inability to deliver On-Net Services, the parties will discuss in
good-faith what changes, if any, should be made to the affected Annual
Commitment(s).

 

8.3 Credit for Certain Shortfall
Fees Paid.  Any Shortfall
Fee paid by Customer for a year may be used as a credit against charge for new
Services ordered and paid for in a subsequent year, but shall not count toward
the Annual Commitment for the subsequent year. 
For purposes of the preceding sentence “new Services” refers only to
services which are ordered in a year following the payment of a Shortfall Fee
and only to the extent they are provided during a following year, and excludes
any renewals of Services previously provided. 
Additionally, in each year other than 2003, for each full $175,000 that
charges paid for Services exceed the applicable Revenue Commitment, Customer
shall entitled to a reduction of the Revenue Commitment for the year 2006 (and
then the Revenue Commitment preceding year, 2005, if the Revenue Commitment for
2006 is reduced to zero in the manner specified in this paragraph, and so on in
this manner).  However, each year shall
be considered individually and only to the extent of a full $175,000, so that
if the Annual Commitment for 2004 is exceeded by $300,000 and the Annual
Commitment for 2005 is exceeded by $250,000, the Annual Commitment for 2006
would only be reduced by $350,000.

 

8.4  Requirements
Commitment.

 

(A) 
For any private line, including both long haul and local circuits,  or waves services Customer desires to order
during the Agreement Term which would be an on-net service for Level 3 but
which Customer proposes to obtain from a party other than Level 3, Customer
will present to Level 3 a bona fide offer from such other party stating the
price and term for such service. 
Customer, on ***of such occasions (measured ***), will order such
service from Level 3 if Level 3’s price (provided within a reasonable period)
*** than the other party, provided Customer elects to purchase such service at
all (the “Requirements Commitment”).

 

(B)           Within
thirty (30) days following the end of each annual period in which the
Requirements Commitment is effective, Customer agrees to deliver to Level 3
written certification by an officer of Customer in a form substantially 

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

7

 

 

similar to the form set forth in Appendix I
attached hereto, certifying Customer’s compliance with the Requirements
Commitment for the period just ending.

 

(C)           Customer
agrees to keep and maintain all usual and proper books, records and other
documentation relating to Customer’s purchase and utilization of private line
circuits, including both long haul and local circuits.  At any time while the Requirements
Commitment is effective and for a period of one (1) year thereafter, Level 3
shall have the right, through an independent third party auditor that executes
a non-disclosure agreement with Customer, on at least ten (10) days’ prior
written notice to audit Customer’s books, records and other documentation
relating to Customer’s compliance with the Requirements Commitment and
Customer’s purchase and utilization of private line circuits, including both
long haul and local circuits.  The scope
of the audit will not include Customer’s purchase and utilization of private
line circuits, including both long haul and local circuits for any period that
has previously been the subject of an audit. 
Any such audit shall be conducted during normal business hours and in a
manner designed to limit to the fullest extent possible interference with the
ordinary course of Customer’s business. 
The direct cost of the audit shall be borne by Level 3, unless a
deficiency is discovered with respect to the amount of purchase of private line
circuits, including both long haul and local circuits, that Customer was
obligated to purchase as compared to the amount of purchase of private line
circuits, including both long haul and local circuits, actually purchased from
Level 3 during the audit period, in which case all costs of the audit shall be
borne by the Customer.  In the event the
audit reveals that Customer failed to meet the requirements of this Agreement,
then for each annual period the Requirements Commitment was not satisfied, the
term of the Annual Commitment (and all the other provisions of this Agreement)
shall be extended for an annual period.

 

ARTICLE 9. TERMINATION
OF AGREEMENTS.

 

The Capacity Agreement (CA No. Universal-99001), dated August 20, 1999,
as amended August 7, 2000 between Level 3 as successor in interest to Genuity
Telecom, Inc. (the “Capacity Agreement”) and the Terms and Conditions for
Delivery of Services, the Addendum to which was signed by Level 3 on November
17, 1999 (the “Level 3 Agreement”), including all service orders under each are
terminated as of the Effective Date. 
Commencing on the Effective Date, all circuits previously provided under
the Capacity Agreement and Level 3 Agreement will be provided under this
Agreement.  Termination of such
agreements shall not release or impair any obligations of the parties accruing
thereunder prior to the Effective Date, except as set forth in the Settlement
and Release Agreement between the parties of even date herewith.

 

 

LEVEL 3 COMMUNICATIONS, LLC (“Level 3”)

 

 

	
  By

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  

 

 

UNIVERSAL
ACCESS, INC. 
(“Customer”)

 

 

	
  By

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  

 

8

 

SERVICE SCHEDULE

(3)LINKSM PRIVATE LINE
SERVICE

 

1. 
Applicability.  This Service Schedule is applicable only where Customer orders
(3)LinkSM Private Line Service.

 

2.  Definitions.  Any capitalized terms used
herein and not otherwise defined shall have the meaning set forth in the
Agreement.

 

(A)          “Protected”
shall mean any Service that includes a protection scheme that allows traffic to
be re-routed in the event of a fiber cut or equipment failure.

 

(B)           “Submarine”
shall mean any Service that transits any portion of Level 3’s trans-oceanic
network.

 

(C)           “Terrestrial”
shall mean any Service that generally transits Level 3’s land-based network
(with limited water crossings, including, without limitation, bay and channel
crossings) and does not in any way transit Level 3’s trans-oceanic network.

 

(D)          “Unprotected”
shall mean any Service that does not include a protection scheme that would
allow traffic to be re-routed in the event of a fiber cut or equipment failure.

 

3.  Service Description.  (3)LinkSM
Private Line Service is a dedicated, non-switched, point to point circuit
between two (2) specified locations.

 

4.  Services from Others.  Where necessary for the interconnection of (3)LinkSM
Private Line Service with services provided by others, Customer will provide
Level 3 with circuit facility assignment information, firm order
commitment information and the design layout records necessary to enable
Level 3 to make the necessary cross-connection between the (3)LinkSM
Private Line Service and Customer’s designated carrier.  Any delay by Customer in providing such
information to Level 3 may delay Level 3’s provision of the necessary
cross-connection.  Notwithstanding any
such delay in the provision of the cross-connection, billing for the (3)LinkSM
Private Line Service shall commence on the Service Commencement Date as more
fully described in Section 3.1 of the Agreement.  Level 3 may charge Customer non-recurring and monthly
recurring cross-connect fees to make such connection.

 

5.  Connection to Customer Premises.

 

(A)          Where
(3)LinkSM Private Line Service is being terminated Off-Net at the
Customer Premises through an Off-Net Local Loop to be provisioned by Level 3 on
behalf of Customer, the charges set forth in the Customer Order for such
(3)LinkSM Private Line 
(Off-Net) Service assumes that such (3)LinkSM Private Line
(Off-Net) Service will be terminated at a pre-established demarcation point or
minimum point of entry (MPOE) in the building within which the Customer
Premises is located, as determined by the local access provider.  Level 3 may charge Customer additional
non-recurring charges and/or monthly recurring charges not otherwise set forth
in the Customer Order for such (3)LinkSM Private Line (Off-Net) Service
where the local access provider determines that it is necessary to extend the
demarcation point or MPOE through the provision of additional infrastructure,
cabling, electronics or other materials necessary to reach the Customer
Premises.  Level 3 will notify Customer
of any additional non-recurring charges and/or monthly recurring charges as
soon as practicable after Level 3 is notified by the local access provider of
the amount of such charges.

 

(B)           In
addition, where (3)LinkSM Private Line Service is being terminated
Off-Net at the Customer Premises through an Off-Net Local Loop to be
provisioned by Level 3 on behalf of the Customer, the charges and the Service
Term set forth in the Customer Order for such (3)LinkSM Private Line
(Off-Net) Service assumes that such (3)LinkSM Private Line (Off-Net)
Service can be provisioned by Level 3 through the local access provider
selected by Level 3 (and/or Customer) for the stated Service Term.  In the event Level 3 is unable to provision
such (3)LinkSM Private Line (Off-Net) Service through the selected
local access provider or the selected local access provider requires a longer
Service Term than that set forth in the Customer Order, Level 3 reserves the
right, regardless of whether Level 3 has accepted the Customer Order, to
suspend provisioning of such (3)LinkSM Private Line (Off-Net)
Service and notify Customer in writing of any additional non-recurring charges,
monthly recurring charges and/or Service Term that may apply.  Upon receipt of such notice, Customer will
have five (5) business days to accept or reject such changes.  If Customer does not respond to Level 3
within the five (5) business day period, such changes will be deemed rejected
by Customer.  In the event Customer
rejects the changes (whether affirmatively or through the expiration of the
five (5) business day period), the affected (3)LinkSM Private Line
(Off-Net) Service will be cancelled without cancellation or termination
liability of either party.

 

6.  Service
Levels.

 

(A)            Installation
Service Level. (1) Level 3 will exercise commercially reasonable efforts to
install any (3)LinkSM Private Line Service on or before the Customer
Commit Date specified for the particular (3)LinkSM Private Line
Service.  This Installation Service
Level shall not apply to Customer Orders that contain incorrect information
supplied by Customer or Customer Orders that are altered at Customer’s request
after submission and acceptance by Level 3. 
However, this Installation Service Level will apply to such Customer
Orders if such orders are resubmitted and contain correct information, with the
calculation of the installation interval commencing on the date the correct or
altered order is accepted by Level 3. 
In the event Level 3 does not meet this Installation Service Level for a
particular (3)LinkSM Private Line Service for reasons other than an
Excused Outage, Customer will be entitled to a service credit off of the
non-recurring charges (“NRC”) and/or monthly recurring charges (“MRC”) for the
affected (3)LinkSM Private Line Service as set forth in the
following table:

 

	
  Installation
  Delay Beyond Customer Commit Date

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  1 - 5 business
  days

  	
   

  	
  ***

  	
   

  
	
  6 - 20 business
  days

  	
   

  	
  ***

  	
   

  
	
  21 business days
  or greater

  	
   

  	
  ***

  	
   

  

 

(2) The Installation Service Level and associated
credits set 

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

9

 

 

forth in sub-Section (1) above shall not apply to
Off-Net Local Loop Service, including, without limitation, (3)LinkSM Private
Line (Off-Net) Service, provisioned by Level 3 through a third party carrier
for the benefit of Customer.  Level 3
will pass-though to Customer any installation service level and associated
credit (if applicable) provided to Level 3 by the third party carrier for such
Off-Net Local Loop Service.

 

(B)           Availability
Service Level for Protected (3)LinkSM  Private Line
Service.  (1) The Availability
Service Level for Protected (3)LinkSM Private Line Service delivered
over Level 3’s network is 99.99% for Protected Terrestrial (3)LinkSM Private
Line Service and 99.9% for Protected Submarine (3)LinkSM Private
Line Service. In the event that any Protected (3)LinkSM Private Line
Service becomes Unavailable (as defined below) for reasons other than an
Excused Outage, Customer will be entitled to a service credit off of the MRC
for the affected Protected (3)LinkSM Private Line Service based on
the cumulative unavailability of the affected Protected (3)LinkSM
Private Line Service in a given calendar month as set forth in the following
table.

 

	
  Cumulative 
  Unavailability 

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  (in hrs:mins:secs)

  	
   

  	
   

  	
   

  
	
  00:00:01 -
  00:05:00

  	
   

  	
  ***

  	
   

  
	
  00:05:01-
  00:45:00

  	
   

  	
  ***

  	
   

  
	
  00:45:01-
  04:00:00

  	
   

  	
  ***

  	
   

  
	
  04:00:01 -
  08:00:00

  	
   

  	
  ***

  	
   

  
	
  08:00:01
  -12:00:00

  	
   

  	
  ***

  	
   

  
	
  12:00:01
  -16:00:00

  	
   

  	
  ***

  	
   

  
	
  16:00:01 -
  24:00:00

  	
   

  	
  ***

  	
   

  
	
  24:00:01 or
  greater

  	
   

  	
  ***

  	
   

  

 

For purposes of this Section 6(B), “Unavailable” or
“Unavailability” means the duration of a break in transmission measured from
the first of ten (10) consecutive severely erred seconds (“SESs”) on the
affected (3)LinkSM Private Line Service until the first of ten (10)
consecutive non-SESs.  An SES is a
second with a bit error ratio of greater than or equal to 1 in 1000.

 

(2) The Availability Service Levels and associated
credits set forth in this Section 6(B) 
shall not apply to Off-Net Local Loop Service, including, without
limitation, (3)LinkSM Private Line (Off-Net) Service, provisioned by
Level 3 through a third party carrier for the benefit of Customer.  Level 3 will pass-though to Customer any
availability service level and associated credit (if applicable) provided to
Level 3 by the third party carrier for such Off-Net Local Loop Service.

 

(3) Without prejudice to Customer’s right to
service credits pursuant to subsection (1) above, if the (3)LinkSM Private
Line Service is provided in Germany, then the Availability Service Level for
such (3)LinkSM Private Line (Off-Net) Service is 97.5% (based on an
annual average) and (3)LinkSM Private Line (On-Net) Service is 99.9%
(based on a calendar month).

 

(C)           Availability
Service Level for Unprotected (3)LinkSM Private Line Service.  (1) In the event that any Unprotected (3)LinkSM
Private Line Service becomes unavailable (as defined in Section 6(B)
above) for reasons other than an Excused Outage, Customer will be entitled to a
service credit off of the MRC for the affected Unprotected (3)LinkSM
Private Line Service based on the cumulative unavailability for the affected
Unprotected (3)LinkSM Private Line Service in a given calendar month
as set forth in the following table:

 

	
  Cumulative Unavailability 

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  (in hrs:mins:secs)

  	
   

  	
   

  	
   

  
	
  0:00:01 -
  24:00:00

  	
   

  	
  ***

  	
   

  
	
  24:00:01 -
  30:00:00

  	
   

  	
  ***

  	
   

  
	
  30:00:01 -
  36:00:00

  	
   

  	
  ***

  	
   

  
	
  36:00:01 -
  42:00:00

  	
   

  	
  ***

  	
   

  
	
  42:00:01 or
  greater

  	
   

  	
  ***

  	
   

  

 

(2) The Availability Service Levels and associated
credits set forth in this Section 6(C) shall not apply to Off-Net Local Loop
Service, including, without limitation, (3)LinkSM Private Line
(Off-Net) Service, provisioned by Level 3 through a third party carrier for the
benefit of Customer.  Level 3 will
pass-though to Customer any availability service level and associated credit
(if applicable) provided to Level 3 by the third party carrier for such Off-Net
Local Loop Service.

 

7.  Chronic Outage.

 

(A)          Subject to Section 7(B), Customer may
elect to terminate an affected (3)LinkSM Private Line Service prior
to the end of the Service Term without termination liability if, for reasons
other than an Excused Outage:     (1)  ror Protected (3)LinkSM Private Line Service, such
Protected (3)LinkSM Private Line
Service is Unavailable (as defined in Section 6(B) above) for *** or more
separate occasions of more than *** each OR for more than *** in the aggregate
in any calendar month; or (2) for Unprotected (3)LinkSM Private Line Service, such
Unprotected (3)LinkSM Private Line
Service is Unavailable (as defined in Section 6(B) above) for *** or more
separate occasions of more than *** each OR for more than *** hours in the
aggregate in any calendar month.

 

Level
3’s maintenance log will be used for purposes of calculating the duration of
such Unavailability event as set forth above, a copy of which will be made available
upon Customer’s request.  In the absence
of such a log, Customer may produce to Level 3 sufficient documentation to
substantiate a claim of an Unavailability event.  Customer may notify Level 3 of events of Unavailability by
contacting Level 3 Customer Service at 1-877-4LEVEL3 (1-877-453-8353), or such
other notice mechanism as Level 3 may communicate to Customer from time to
time.  Customer may only terminate such
(3)LinkSM Private Line Service that is Unavailable as described
above, and must exercise its right to terminate the affected (3)LinkSM
Private Line Service under this Section, in writing, within thirty (30) days
after the event giving rise to a right of termination hereunder, which
termination will be effective as set forth by Customer in such notice of
termination. Except for any credits that have accrued pursuant to Section 6,
this Section 7(A) sets forth the sole remedy of Customer for chronic outages or
interruptions of any (3)LinkSM Private Line Service.  For the avoidance of doubt, the parties
acknowledge and agree that fiber cuts by third parties shall be deemed an
Excused Outage.

 

(B)           In the event Customer elects to
terminate any (3)LinkSM Private Line Service pursuant to this
Section 7, Customer agrees to reimburse Level 3 for any third party early
termination/cancellation charges for any Off-Net Local Loop Service, including,
without limitation, (3)LinkSM Metropolitan  Private Line
(Off-Net) Service, provisioned by Level 3 through a third party carrier for the
benefit of Customer.

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

10

SERVICE SCHEDULE

(3)LINKSM GLOBAL WAVELENGTH
SERVICE

 

1.   Applicability.  This Service Schedule is applicable only
where Customer orders  (3)LinkSM Global
Wavelength Service.

 

2. 
Definitions.  Any capitalized terms used
herein and not otherwise defined shall have the meaning set forth in the
Agreement.

 

(A)          “Terrestrial” shall
mean any Service that generally transits Level 3’s land-based network (with
limited water crossings, including, without limitation, bay and channel
crossings) and does not in any way transit Level 3’s trans-oceanic network.

 

(B)           “Unprotected” shall
mean any Service that does not include a protection scheme that would allow
traffic to be re-routed in the event of a fiber cut or equipment failure.  All (3)LinkSM Global Wavelength
Service is Unprotected.

 

3.  Service
Description.  (3)LinkSM
Global Wavelength Service is a 2.5GB or 10GB (or greater, as agreed by the
parties) transparent, Unprotected virtual channel(s) (or wavelength(s)) on the
Level 3 network between two (2) termination nodes.

 

4.  Interconnection.

 

(A)          To use the (3)LinkSM
Global Wavelength Service, Customer must provide to Level 3, at each
termination node, a SONET or SDH-framed 2.5Gb or 10Gb (or greater, as
applicable) signal as more particularly described in Level 3’s standard
Interconnection Specifications and Hand-off Requirements (attached as Exhibit
“A”) (“Traffic”), which Traffic will thereafter be delivered by Level 3, in
like format, to the opposite and corresponding termination node.  The demarcation point for the (3)LinkSM
Global Wavelength Service shall be the Level 3 OSX or fiber termination panel
at the termination node.  Customer shall
be solely responsible for providing all interconnection equipment used both to
deliver to, or to accept Traffic from, Level 3 in the formats described above
and for any and all protection schemes Customer chooses to implement respecting
the Traffic.  For a termination node at
a location other than a Level 3 Gateway, Customer shall provide Level 3 with
space and power (at no charge to Level 3), as reasonably requested by Level 3,
for placement and operation of an OSX, fiber termination panel or other
equipment within the Customer Premises.

 

(B)           With respect to
construction of Facilities to the Customer Premises and installation,
maintenance and repair of facilities within the Customer Premises, Customer
shall provide Level 3 with access to and the use of Customer’s entrance
Facilities and inside wiring, and/or shall procure rights for Level 3 allowing
the placement of Facilities necessary for installation of Facilities to deliver
the (3)LinkSM Global Wavelength Service to the Customer
Premises.  All costs associated with
procuring and maintaining rights needed to obtain entry to the building (and
the real property on which the building is located) within which the Customer
Premises are located, and costs to procure and maintain rights within such
building to the Customer Premises, shall be borne by Customer.

 

5.  Lease to IRU Conversion. 
At any time during the Service Term, Customer shall have the right to convert
any Terrestrial (3)LinkSM Global Wavelength Service provided on a
monthly-recurring lease basis into an indefeasible right of use (“IRU”) with a
new Service Term of five (5) years (commencing on the date of conversion).  Such conversion shall be effective on the
first day after Customer’s delivery to Level 3 of an appropriate Customer Order
pursuant to Level 3’s then current Service Schedule for (3)LinkSM Global
Wavelength Service - IRU reflecting such conversion, which Customer Order must
(in order to be effective to convert a lease into an IRU) be accompanied by
payment in full of the then applicable five (5) year IRU charges for such
(3)LinkSM Global Wavelength Service.  The five (5) year Service Term for the IRU shall begin at the
time of conversion.  Upon conversion,
Customer shall be released from all future monthly recurring charges under the
original lease that would have otherwise accrued after the date of conversion,
and the terms of Level 3’s then current Service Schedule for (3)LinkSM
Global Wavelength Service - IRU shall thereafter govern respecting delivery and
use of the IRU.  No portion of the
charges already paid by Customer to Level 3 for such original lease shall be
refunded, rebated or credited.

 

6.  Service
Levels.

 

(A)          Installation
Service Level.  Level 3 will
exercise commercially reasonable efforts to install any (3)LinkSM Global
Wavelength Service on or before the Customer Commit Date specified for the
particular (3)LinkSM Global Wavelength Service.  This Installation Service Level shall not
apply to Customer Orders that contain incorrect information supplied by
Customer, Customer Orders that are altered at Customer’s request after
submission and acceptance by Level 3. 
However, this Installation Service Level will apply to such Customer
Orders if such orders are resubmitted and contain correct information, with the
calculation of the installation interval commencing on the date the correct or
altered order is accepted by Level 3. 
In the event Level 3 does not meet this Installation Service Level for a
particular (3)LinkSM Global Wavelength Service for reasons other
than an Excused Outage, Customer will be entitled to a service credit off of
the monthly recurring charges (“MRC”) for the affected (3)LinkSM
Global Wavelength Service as set forth in the following table:

 

	
  Installation
  Delay Beyond Customer Commit Date

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  1 - 5 business
  days

  	
   

  	
  ***

  	
   

  
	
  6 -20 business
  days

  	
   

  	
  ***

  	
   

  
	
  21 business days
  or greater

  	
   

  	
  ***

  	
   

  

 

(B)           Availability
Service Level.  In the event that
any (3)LinkSM Global Wavelength Service becomes unavailable for
reasons other than an Excused Outage, Customer will be entitled to a service
credit off of the MRC for the affected (3)LinkSM Global Wavelength
Service based on the cumulative Unavailability (as defined below) for the
affected (3)LinkSM Global Wavelength Service in a given calendar
month as set forth in the following table:

 

	
  Cumulative Unavailability 

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  (in hrs:mins:secs)

  	
   

  	
   

  	
   

  
	
  0:00:01 -
  24:00:00

  	
   

  	
  ***

  	
   

  
	
  24:00:01 -
  30:00:00

  	
   

  	
  ***

  	
   

  
	
  30:00:01 -
  36:00:00

  	
   

  	
  ***

  	
   

  
	
  36:00:01 -
  42:00:00

  	
   

  	
  ***

  	
   

  
	
  42:00:01 or
  greater

  	
   

  	
  ***

  	
   

  

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

11

 

For purposes of this Section 6(B), “Unavailable” or
“Unavailability” means the duration of a break in transmission measured from
the first of ten (10) consecutive severely erred seconds (“SESs”) on the
affected (3)LinkSM Global Wavelength Service until the first of ten
(10) consecutive non-SESs.  An SES is a
second with a bit error ratio of greater than or equal to 1 in 1000.

 

7.  Chronic
Outage.  Customer may
elect to terminate an affected (3)LinkSM Global Wavelength Service
prior to the end of the Service Term without termination liability if, for
reasons other than an Excused Outage, such (3)LinkSM Global
Wavelength Service is Unavailable (as defined in Section 6(B) above) for *** or
more separate occasions of more than ***  each OR for more than *** hours
in the aggregate in any calendar month. Level 3’s maintenance log will be used
for purposes of calculating the duration of such Unavailability event as set
forth above, a copy of which will be made available upon Customer’s
request.  In the absence of such a log,
Customer may produce to Level 3 sufficient documentation to substantiate a
claim of an Unavailability event. 
Customer may notify Level 3 of events of Unavailability by contacting Level
3 Customer Service at 1-877-4LEVEL3 (1-877-453-8353), or such other notice
mechanism as Level 3 may communicate to Customer from time to time.  Customer may only terminate such (3)LinkSM
Global Wavelength Service that is Unavailable as described above, and must
exercise its right to terminate the affected (3)LinkSM Global
Wavelength Service under this Section, in writing, within thirty (30) days
after the event giving rise to a right of termination hereunder, which
termination will be effective as set forth by Customer in such notice of
termination. Except for any credits that have accrued pursuant to Section 6, this
Section 7 sets forth the sole remedy of Customer for chronic outages or
interruptions of any (3)LinkSM Global Wavelength Service.  For the avoidance of doubt, the parties acknowledge
and agree that fiber cuts by third parties shall be deemed an Excused Outage.

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

12

 

Exhibit “A”

Interconnection
Specifications and Handoff Requirements

 

A.                                   Interconnection
Specifications.

 

1.                                       The Customer
interconnection point of 2.5Gb or 10Gb wavelength signals at the Level 3
location will be at OSX cross-connect panels (“Level 3 Network
Interface”).  SC physical connections
will be standard.

 

2.                                       The Level 3
Network will be compatible with the Bell System hierarchical clock
synchronization methods and stratum levels as described in Bellcore Technical
Advisory (GR436-Core).

 

3.                                       Level 3
equipment must also meet the interconnect specifications listed above and shall
meet or exceed with jitter requirements of Bellcore Technical Advisory GR253.

 

B.                                     Handoff
Requirements.

 

1.             Customer Signal Handoff:  Customer will hand off a
standard 2.5Gb or 10Gb (as applicable) SONET or SDH-framed signal from an ADM,
router (via OC-48 or OC-192 optical line card) or other optical network devise.

 

2.             2.5 Gb Service Transmitter and Receiver
Specifications2:  Type A
Terminations and Type B Terminations < 20 fiber kilometers.

 

	
  Level 3 2.5Gb Receiver Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Detector
  Type

  	
   

  	
  Coding

  	
   

  	
  Minimum 

  Sensitivity (dBm)

  	
   

  	
  Max Rec.

  Level (dBm)

  	
   

  
	
  1265-1360

  	
   

  	
  Short

  	
   

  	
  PIN

  	
   

  	
  NRZ

  	
   

  	
  -17.0

  	
   

  	
  -3.0

  	
   

  

The above signal requirements from Customer are measured at
the Level 3 transponder located within the Termination Node.  See Comment 1 below.

 

	
  Level 3 2.5Gb Transmitter Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Laser Type

  	
   

  	
  Coding

  	
   

  	
  Launch
  Power 

  (dBm)

  	
   

  	
  Max
  Tolerated 

  Reflection

  	
   

  
	
  1310 ±50

  	
   

  	
  Short

  	
   

  	
  Fabry-Perot

  	
   

  	
  NRZ

  	
   

  	
  -4.75

  	
   

  	
  -27

  	
   

  

The above signal delivery specifications to Customer are
measured at the Level 3 transponder located within the Termination Node.  See Comment 1 below.

 

13

 

3.
2.5 Gb Service Transmitter and Receiver Specifications2:  Type B Terminations > 20 fiber kilometers

 

	
  Level 3 2.5Gb Receiver Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Detector
  Type

  	
   

  	
  Coding

  	
   

  	
  Minimum 

  Sensitivity (dBm)

  	
   

  	
  Max Rec. 

  Level (dBm)

  	
   

  
	
  1275-1575

  	
   

  	
  Long/Short

  	
   

  	
  APD

  	
   

  	
  NRZ

  	
   

  	
  -24.5

  	
   

  	
  -15.0

  	
   

  

The above signal requirements from Customer are measured at
the Level 3 transponder located within the Termination Node.  See Comment 1 below.

 

	
  Level 3 2.5Gb Transmitter Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Laser Type

  	
   

  	
  Coding

  	
   

  	
  Launch
  Power 

  (dBm)

  	
   

  	
  Max
  Tolerated 

  Reflection

  	
   

  
	
  1310 ±10

  	
   

  	
  Long/Short

  	
   

  	
  DFB

  	
   

  	
  NRZ

  	
   

  	
  -1.5

  	
   

  	
  -24

  	
   

  

The above signal delivery specifications to Customer are
measured at the Level 3 transponder located within the Termination Node.  See Comment 1 below.

 

4.
2.5 Gb Service Transmitter and Receiver Specifications2:  Type C Terminations

 

	
  Level 3 2.5Gb Receiver Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Detector
  Type

  	
   

  	
  Coding

  	
   

  	
  Minimum 

  Sensitivity (dBm)

  	
   

  	
  Max Rec. 

  Level (dBm)

  	
   

  
	
  1290-1570

  	
   

  	
  Long/Short

  	
   

  	
  APD

  	
   

  	
  NRZ

  	
   

  	
  -28.0

  	
   

  	
  -15.0

  	
   

  

The above signal requirements from Customer are measured at
the Level 3 transponder located within the Termination Node.  See Comment 1 below.

 

	
  Level 3 2.5Gb Transmitter Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Laser Type

  	
   

  	
  Coding

  	
   

  	
  Launch
  Power 

  (dBm)

  	
   

  	
  Max
  Tolerated 

  Reflection

  	
   

  
	
  1528-1561 ITU

  	
   

  	
  Long/Short

  	
   

  	
  DFB

  	
   

  	
  NRZ

  	
   

  	
  -1.5

  	
   

  	
  -14

  	
   

  

The above signal delivery specifications to Customer are
measured at the Level 3 transponder located within the Termination Node.  See Comment 1 below.

 

5.             10Gb Service Transmitter and Receiver Specifications2:
All terminations

 

	
  Level 3 10Gb(Wide Band)Receiver Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Detector
  Type

  	
   

  	
  Coding

  	
   

  	
  Minimum 

  Sensitivity (dBm)

  	
   

  	
  Max Rec. 

  Level (dBm)

  	
   

  
	
  1290-1575

  	
   

  	
  Long/Short

  	
   

  	
  PIN

  	
   

  	
  NRZ

  	
   

  	
  -10.0

  	
   

  	
  0.0

  	
   

  

 The above signal
requirements from Customer are measured at the Level 3 transponder located
within the Termination Node.  See
Comment 1 below.

 

	
  Level 3 10Gb Transmitter Specifications

  
	
  Wavelength
  (nm)

  	
   

  	
  Distance

  	
   

  	
  Laser Type

  	
   

  	
  Coding

  	
   

  	
  Launch
  Power 

  (dBm)

  	
   

  	
  Max
  Tolerated 

  Reflection

  	
   

  
	
  1550+/-

  	
   

  	
  Long/Short

  	
   

  	
  DFB

  	
   

  	
  NRZ

  	
   

  	
  1.5 ± 0.25

  	
   

  	
  -14

  	
   

  

 The above signal
delivery specifications to Customer are measured at the Level 3 transponder
located within the Termination Node. 
See Comment 1 below.

 

1 These receiver requirements and transmitter specifications are
measured at the Level 3 transponder located within a Type A or Type C
Termination Node and do not account for fiber loss.  In the event of a Type B termination over fiber without the use
of optronics, measurement will occur at the Level3 transponder located in the
Level3 Gateway Facility.  Thus, to
ensure proper service delivery, fiber readings to and from Customer’s equipment
must be verified.

 

2 All of the equipment listed above requires SC type single mode
connectors.

 

14

 

SERVICE SCHEDULE

(3)PACKETSM SERVICE 

 

 

1.  Applicability.  This Service Schedule is applicable only where Customer orders
(3)PacketSM Service.

 

2.  Definitions.  Any capitalized terms used
herein and not otherwise defined shall have the meaning set forth in the
Agreement.

 

(A)          “Committed Data Rate” shall mean the minimum
data rate committed by Customer and set forth in the Customer Order (expressed
in Megabits per second (Mbps)).

 

(B)            “Dual Connected” shall mean a
Customer interconnection to (3)PacketSM Service via two (2)
access ports in a particular physical location, each provisioning the same,
single virtual circuit.

 

(C)           “Single Connected” shall mean a
Customer interconnection to (3)PacketSM Service via a single
access port in a particular physical location.

 

(D)          “Virtual Circuit Committed Rate” shall
mean the minimum data
rate available to Customer on a particular (3)PacketSM
Service — Premium or (3)PacketSM Service — Optimized virtual circuit
and set forth in the
Customer Order (expressed in megabits per second (Mbps)).

 

3.  Service Description.  (3)PacketSM
Service is a Multi-Protocol Label Switching (MPLS) based data transport service
comprised of two (2) or more physical access ports with one (1) or more virtual
circuits interconnecting the ports, which are configured as requested by
Customer.  The (3)PacketSM
Service is available with either an ATM, Frame Relay or Ethernet
interface.  Each virtual circuit
comprising the (3)PacketSM Service is available in the following
classes of service: (3)PacketSM Service — Premium (for ATM interface
only), (3)PacketSM Service — Optimized, and (3)PacketSM
Service - Enhanced.  The class of
service applicable to the particular virtual circuit will be set forth in the
Customer Order.

 

4.  Burstability.  The (3)PacketSM
Service — Premium and (3)PacketSM Service — Optimized each have
separate limitations for the amount of usage allowed in excess of the
applicable Virtual Circuit Committed Rate. 
Customer’s usage of the (3)PacketSM Service for each class of
service is limited as follows: (i) for (3)PacketSM Service —
Premium, Customer’s usage cannot burst above the Virtual Circuit Committed
Rate; (ii) for (3)PacketSM Service — Optimized, Customer’s usage
cannot burst above two (2) times the Virtual Circuit Committed Rate; and (iii)
for (3)PacketSM Service — Enhanced, there are no restrictions on
Customer’s usage bursting, subject to the overall capacity available on the
Level 3 network.

 

5.  Charges.    Charges for (3)PacketSM Service are invoiced
separately for (3)PacketSM Service provided on the Level 3
inter-city network and for (3)PacketSM Service provided on a Level 3
intra-city network

 

(A)          Inter-City
Network Charges.  (1)        For (3)PacketSM Service on
the Level 3 inter-city network, Level 3 will invoice Customer, and Customer
agrees to pay Level 3, the following charges for all inter-city (3)PacketSM
Service provided by Level 3 to Customer: (a) a non-recurring installation
charge per port; (b) a monthly recurring port charge; (c) a monthly recurring
virtual circuit charge; (d) a monthly recurring charge based on the aggregate
Committed Data Rate associated with the inter-city (3)PacketSM
Service; and (e) monthly usage charges to the extent Customer’s aggregate usage
for inter-city (3)PacketSM Service in a particular month exceeds the
Committed Data Rate.

 

(2)           Customer’s
usage of inter-city (3)PacketSM Service (both Send Traffic and
Receive Traffic) will be sampled every five (5) minutes for the previous five
(5) minute period.  At the end of the
month, the top five percent (5%) of Send Traffic and Receive Traffic samples
shall be discarded.  The higher of the
resulting ninety-fifth (95th) percentile for Send Traffic and
Receive Traffic for each (3)PacketSM virtual circuit will be added
together to determine Customer’s aggregate usage of inter-city (3)PacketSM
Service (“Aggregate Inter-City (3)PacketSM Usage”) for comparison to
the Committed Data Rate.  If the
Aggregate Inter-City (3)PacketSM Usage is higher than the Committed
Data Rate, Customer will, in addition to being billed for the Committed Data
Rate, be billed for any such Aggregate Inter-City (3)PacketSM Usage
in excess of the Committed Data Rate at the contracted-for price per megabit
per second (Mbps).

 

(B)           Intra-City
Network Charges.  (1)        For (3)PacketSM Service on a
Level 3 intra-city network, Level 3 will invoice Customer, and Customer agrees
to pay Level 3, the following charges for all intra-city (3)PacketSM
Service provided by Level 3 to Customer: (a) a non-recurring installation
charge per port; (b) a monthly recurring port charge; (c) a monthly recurring
virtual circuit charge; (d) a monthly recurring charge based on the aggregate
Committed Data Rate associated with the intra-city (3)PacketSM
Service; and (e) monthly usage charges to the extent Customer’s aggregate usage
for the intra-city (3)PacketSM Service in a particular month exceeds
the Committed Data Rate.

 

(2)           Customer’s
Send Traffic attributable to usage of the intra-city (3)PacketSM
Service will be sampled every five (5) minutes for the previous five (5) minute
period.  At the end of the month, the
top five percent (5%) of Send Traffic samples shall be discarded.  The resulting ninety-fifth (95th)
percentile for Send Traffic for each (3)PacketSM  port will be added together to determine
Customer’s aggregate usage of intra-city (3)PacketSM Service
(“Aggregate Intra-City (3)PacketSM Usage”) for comparison to the
Committed Data Rate.  If the Aggregate
Intra-City (3)PacketSM Usage is higher than the Committed Data Rate,
Customer will, in addition to being billed for the Committed Data Rate, be
billed for any such Aggregate Intra-City (3)PacketSM Usage in excess
of the Committed Data Rate at the contracted-for price per megabit per second
(Mbps).

 

6.  Service Levels.

 

(A)          Installation
Service Level.  Level 3 will
exercise commercially reasonable efforts to install any (3)PacketSM
Service on or before the Customer Commit Date specified for the particular
Service.  This Installation Service
Level shall not apply to Customer Orders that contain incorrect information
supplied by Customer or Customer Orders that are altered at Customer’s request
after submission and acceptance by Level 3. 
However, this Installation Service Level will apply to such Customer
Orders if such orders are resubmitted and contain correct information, with the
calculation of the installation 

 

15

 

interval commencing on the date the correct or
altered order is accepted by Level 3. 
In the event Level 3 does not meet this Installation Service Level for a
particular (3)PacketSM Service for reasons other than an Excused
Outage, Customer will be entitled to a service credit equal to the charges for
one (1) day of the monthly recurring port charges and monthly recurring virtual
circuit charge for the affected port and/or virtual circuit for each day of
delay, up to a monthly maximum credit of ten (10) days.

 

(B)           Availability
Service Level.  (1) The Availability
Service Level for (3)PacketSM Service is 99.99% for Single Connected
(3)PacketSM Service and 99.999% for Dual Connected (3)PacketSM
Service. The (3)PacketSM Service is considered unavailable if any
port(s) and/or virtual circuit(s) is unable to send or receive traffic.  In the event that any component of the
(3)PacketSM Service becomes unavailable for reasons other than an
Excused Outage, Customer will be entitled to a service credit off of the
monthly recurring port charge and monthly recurring virtual circuit charge for
the affected port and virtual circuit and any monthly usage charges solely
attributable to the affected virtual circuit based on the cumulative
unavailability of the affected component of the (3)PacketSM Service
in a given calendar mo nth as set forth in the following tables (but Customer
will not be entitled to a service credit associated with the Delay Service
Level, Packet Delivery Service Level or Jitter Service Level for the affected
port and virtual circuit to the extent any such failure arises out of or is
related to the unavailability event):

 

For Single Connected (3)PacketSM
Service:

	
  Cumulative Unavailability 

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  (in hrs:mins:secs)

  	
   

  	
   

  	
   

  
	
  0:00:01 -
  00:10:00

  	
   

  	
  ***

  	
   

  
	
  00:10:01-
  00:45:00

  	
   

  	
  ***

  	
   

  
	
  00:45:01-
  04:00:00

  	
   

  	
  ***

  	
   

  
	
  04:00:01 -
  08:00:00

  	
   

  	
  ***

  	
   

  
	
  08:00:01 -
  12:00:00

  	
   

  	
  ***

  	
   

  
	
  12:00:01 -
  16:00:00

  	
   

  	
  ***

  	
   

  
	
  16:00:01 -
  24:00:00

  	
   

  	
  ***

  	
   

  
	
  24:00:01 or
  greater

  	
   

  	
  ***

  	
   

  

 

For Dual Connected (3)PacketSM Service*:

	
  Cumulative Unavailability 

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  (in hrs:mins:secs)

  	
   

  	
   

  	
   

  
	
  00:00:01 -
  00:45:00

  	
   

  	
  ***

  	
   

  
	
  00:45:01-
  04:00:00

  	
   

  	
  ***

  	
   

  
	
  04:00:01 -
  08:00:00

  	
   

  	
  ***

  	
   

  
	
  08:00:01 -
  12:00:00

  	
   

  	
  ***

  	
   

  
	
  12:00:01 -
  16:00:00

  	
   

  	
  ***

  	
   

  
	
  16:00:01 -
  24:00:00

  	
   

  	
  ***

  	
   

  
	
  24:00:01 or
  greater

  	
   

  	
  ***

  	
   

  

* For Dual Connected (3)PacketSM
Service, if only one (1) of the two (2) Dual Connected ports becomes
unavailable and the associated virtual circuit remains available, Customer will
only be entitled to receive a service credit under this Availability Service
Level off of the monthly recurring port charge for the one (1) affected port
and not off of the monthly recurring virtual circuit charge for the virtual
circuit or any monthly usage charges.

 

(2) Without prejudice to Customer’s right to
service credits pursuant to subsection (1) above, if the (3)PacketSM
Service is provided in Germany, then the Availability Service Level is 97.5%
(based on an annual average) if such (3)PacketSM Service is provided
using an Off-Net Local Loop and 99.9% (based on a calendar month) if such
(3)PacketSM Service is provided using an On-Net Local Loop.

 

(C)           Delay
Service Level.  The following Delay
Service Level is measured as an average one-way delay over a calendar month for
traffic on the Level 3 network between Gateways based on the vertical and
horizontal (“V&H”) route miles between such Gateways as set forth in the
following table:

 

	
  V&H
  Route Miles

  	
   

  	
  Delay
  Service Level

  	
   

  
	
  0 - 250

  	
   

  	
  10 ms

  	
   

  
	
  250.1 - 500

  	
   

  	
  15 ms

  	
   

  
	
  500.1 - 1,000

  	
   

  	
  20 ms

  	
   

  
	
  1,000.1 - 1,500

  	
   

  	
  25 ms

  	
   

  
	
  1,500.1 - 2,000

  	
   

  	
  30 ms

  	
   

  
	
  2,000.1 - 2,500

  	
   

  	
  35 ms

  	
   

  
	
  2,500.1 or
  greater

  	
   

  	
  45 ms

  	
   

  
	
  Trans-Atlantic

  	
   

  	
  45 ms

  	
   

  

 

Delay measurements may be obtained from the Level 3
web site at www.Level3.com.  In the event of a delay in excess of the Service Levels set forth below
for reasons other than an Excused Outage, Customer will be entitled to receive
a service credit off the monthly recurring virtual circuit charge for
the affected virtual circuit and any monthly usage charges solely attributable
to the affected virtual circuit as set forth in the following table:

 

	
  Amount of
  Delay in Excess of Service Level

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  0.1 - 5 ms

  	
   

  	
  ***

  	
   

  
	
  5.1 - 10 ms

  	
   

  	
  ***

  	
   

  
	
  10.1 - 15 ms

  	
   

  	
  ***

  	
   

  
	
  15.1 - 20 ms

  	
   

  	
  ***

  	
   

  
	
  20.1 - 25 ms

  	
   

  	
  ***

  	
   

  
	
  25.1 ms or
  greater

  	
   

  	
  ***

  	
   

  

 

(D)          Packet
Delivery Service Level.  The Packet
Delivery Service Level for (3)PacketSM Service is 100% for (3)PacketSM
Service - Premium, 100% for (3)PacketSM Service - Optimized for
usage up to the applicable Virtual Circuit Committed Rate and 99.95% for all usage
in excess of the applicable Virtual Circuit Committed Rate,  and 99.95% for (3)PacketSM
Service - Enhanced. Packet Delivery is the percentage of data packets that
transit the Level 3 network and are delivered by Level 3 to the intended
destination in a calendar month.  The
Packet Delivery Service Level is measured independently between two (2) Level 3
Gateways and reported separately for each virtual circuit.  Packet Delivery measurements may be obtained
from the Level 3 web site at www.Level3.com. 
In the event Level 3 does not meet the Packet Delivery Service Level for
reasons other than an Excused Outage or as a result of any third party local
access circuit (whether provisioned by Customer or Level 3), Customer will be
entitled to receive a service credit off of the monthly recurring virtual
circuit charge for the affected virtual circuit and any monthly usage charges
solely attributable to the affected virtual circuit as set forth in the
following tables:

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

16

 

 

For (3)PacketSM Service - Premium
and (3)PacketSM Service - Optimized (up to the Virtual Circuit
Committed Rate):

 

	
  Packet
  Delivery

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  99.95 - 99.99%

  	
   

  	
  ***

  	
   

  
	
  99.5 - 99.94%

  	
   

  	
  ***

  	
   

  
	
  99 - 99.49%

  	
   

  	
  ***

  	
   

  
	
  98 - 98.99%

  	
   

  	
  ***

  	
   

  
	
  97 - 97.99%

  	
   

  	
  ***

  	
   

  
	
  96.99% or less

  	
   

  	
  ***

  	
   

  

 

For (3)PacketSM Service -
Optimized (for usage in excess of the Virtual Circuit Committed Rate) and
(3)PacketSM Service - Enhanced:

 

 

	
  Packet
  Delivery

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  99.5 - 99.94%

  	
   

  	
  ***

  	
   

  
	
  99 - 99.49%

  	
   

  	
  ***

  	
   

  
	
  98 - 98.99%

  	
   

  	
  ***

  	
   

  
	
  97 - 97.99%

  	
   

  	
  ***

  	
   

  
	
  96 - 96.99%

  	
   

  	
  ***

  	
   

  
	
  95.99% or less

  	
   

  	
  ***

  	
   

  

(E)     Jitter Service Level. 
The Jitter Service Level for (3)PacketSM Service is 2
milliseconds (ms) for (3)PacketSM Service -   Premium and 10 milliseconds (ms) for (3)PacketSM
Service -  Optimized.  The Jitter Service Level does not apply to
(3)PacketSM Service -  Enhanced.  The Jitter Service Level is measured
independently between two (2) Level 3 Gateways and reported separately for each
virtual circuit.  Jitter measurements
may be obtained from the Level 3 web site at www.Level3.com.  Jitter
is defined as the relative variation in delay between consecutive packets.
Samples are taken every 500 milliseconds, and consecutive samples are compared
for variation in delay.  Each variation
value is compared with this Service Level. 
In the event of Jitter in excess of the this Service Level for reasons
other than an Excused Outage, Customer will be entitled to receive a service
credit off  of the monthly usage
charges solely attributable to the affected virtual circuit as set forth in the
following table:

 

	
  Percentage
  of Measurements within SLA

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  99.9951% - 99.999%

  	
   

  	
  ***

  	
   

  
	
  99.991% - 99.995%

  	
   

  	
  ***

  	
   

  
	
  99.951% - 99.99%

  	
   

  	
  ***

  	
   

  
	
  99.91% - 99.95%

  	
   

  	
  ***

  	
   

  
	
  99.1% - 99.9%

  	
   

  	
  ***

  	
   

  
	
  99% or less

  	
   

  	
  ***

  	
   

  

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

17

 

SERVICE SCHEDULE

(3)CROSSROADSSM SERVICE

 

1. 
Applicability.  This Service Schedule is applicable only where Customer orders
(3)CrossRoadsSM Service.

 

2. 
Definitions.  Any capitalized terms used
herein and not otherwise defined shall have the meaning set forth in the
Agreement.

 

(A)          “Committed Data Rate” shall mean the minimum
data rate committed by Customer and set forth in the Customer Order (expressed
in Megabits per second (Mbps)).

 

(B)           “Off-Net Send Traffic” shall mean Send Traffic
that terminates to any location that is not on the Level 3 network.

 

(C)           “On-Net Intracity Send Traffic” shall
mean On-Net Send Traffic that does not transit Level 3’s long haul
transmission facilities.

 

(D)          “On-Net Send Traffic” shall mean Send Traffic
that terminates to a location that is on the Level 3 network.

 

(E)           “Receive Traffic” shall mean traffic from
any origination point that is received by Customer from the Level 3 network.

 

(F)           “Send Traffic” shall mean traffic from
any origination point that is sent by Customer onto the Level 3 network

 

3.  Service Description.   (3)CrossRoadsSM Service is an IP transit service (including  dedicated IP access port(s)) providing
access to the Level 3 IP network and the global Internet.  (3)CrossRoadsSM
Service is available with either a Serial/POS or Ethernet interface.

 

4. 
Charges. Customer may
elect to be billed based on a fixed rate, Destination Sensitive Billing, or a
Committed Data Rate.  The manner of
billing selected will be set forth in each Customer Order.

 

(A)          Fixed
rate charges for (3)CrossRoadsSM Services consist of two (2)
components: (a) a non-recurring installation charge per port; and (b) a monthly
recurring port charge.

 

(B)           Destination
Sensitive Billing charges for (3)CrossRoadsSM Service consist of
three (3) components: (a) a non-recurring installation charge per port; (b) a
monthly recurring port charge; and (c) monthly usage charges.  Customer’s usage of (3)CrossRoadsSM
Service (both Send Traffic and Receive Traffic) will be measured and recorded
by Level 3 every five minutes.  At
the end of the month, the top five percent (5%) of the Send Traffic and Receive
Traffic samples will be discarded. If the ninety-fifth  (95th) percentile Receive Traffic
sample shows (3)CrossRoadsSM Service usage greater than the usage
shown in the ninety-fifth (95th) percentile Send Traffic sample,
then Customer will be billed for the amount of (3)CrossRoadsSM
Service usage shown in the ninety-fifth (95th) percentile sample for
the Receive Traffic.  If the
ninety-fifth (95th) percentile sample for the Send Traffic shows
(3)CrossRoadsSM Service usage greater than the usage shown in the
ninety-fifth (95th) percentile 
Receive Traffic sample, then the total Send Traffic will be categorized
as Off-Net Send Traffic, On-Net Send Traffic and On-Net Intracity Send Traffic,
and Customer will be billed for the usage shown in the ninety-fifth (95th)
percentile sample for each category.

 

(C)           Committed
Data Rate charges for (3)CrossRoadsSM Service consist of four (4)
components: (a) a non-recurring installation charge per port; (b) a monthly
recurring port charge (if applicable); (c) a monthly recurring charge based on
the Committed Data Rate associated with the (3)CrossRoadsSM Service;
and (d) monthly usage charges to the extent usage in a particular month exceeds
the Committed Data Rate.  Customer’s
usage of (3)CrossRoadsSM Service (both Send Traffic and Receive
Traffic) will be sampled every five (5) minutes for the previous five (5)
minute period.  At the end of the month,
the top five percent (5%) of Send Traffic and Receive Traffic samples shall be
discarded.  The highest of the resulting
ninety-fifth (95th) percentile for Send Traffic and Receive Traffic
will be compared to the Committed Data Rate. 
If the ninety-fifth (95th) percentile of either Send Traffic
or Receive Traffic is higher than the Committed Data Rate, Customer will, in
addition to being billed for the Committed Data Rate, be billed at this
ninety-fifth (95th) percentile level for any usage in excess of the
Committed Data Rate at the contracted-for price per Megabit.

 

5.   IP
Addresses and Domain Names. 
In the event that Level 3 assigns to Customer an IP address as part of
the provision of Service, such IP address shall (upon Level 3’s request and to
the extent permitted by law) revert to Level 3 after termination of the
applicable Customer Order for any reason whatsoever, and Customer shall cease
using such address.  At any time after
such termination, Level 3 may re-assign such address to another user. In the
event that Level 3 obtains for Customer a domain name (which may be required in
some European jurisdictions), Customer shall be the sole owner of such domain
name.  Customer shall be solely
responsible for:

 

(A)
         paying any fees (including
renewal fees) relating thereto;

 

(B)           complying
with any legal, technical, administrative, billing or other requirements
imposed by the relevant domain name registration authority;

 

(C)           modifying
such domain name in the event Customer changes service providers; and

 

(D)          all third party claims (including
claims for intellectual property infringement) relating thereto, and Customer
shall indemnify and hold Level 3 harmless from all such claims and expenses
(including legal fees and court costs) related thereto.

 

6.  Service
Levels.

 

(A)          Installation
Service Level.   Level 3 will
exercise commercially reasonable efforts to install any (3)CrossRoadsSM
Service on or before the Customer Commit Date specified for the particular
(3)CrossRoadsSM Service. 
This Installation Service Level shall not apply to Customer Orders that
contain incorrect information supplied by Customer or Customer Orders that are
altered at Customer’s request after submission and acceptance by Level 3.  However, this Installation Service Level
will apply to such Customer Orders if such orders are resubmitted and contain
correct information, with the calculation of the installation interval
commencing on the date the correct or altered order is accepted by Level
3.  In the event Level 3 does not meet
this Installation Service Level for a particular (3)CrossRoadsSM
Service for reasons other than 

 

18

 

an Excused Outage, Customer will be entitled to a
service credit equal to the charges for one (1) day of the monthly recurring
charges (“MRC”) for the affected (3)CrossRoadsSM Service for each
day of delay, up to a monthly maximum credit of ten (10) days.

 

(B)           Availability
Service Level. (1) The Availability Service Level for (3)CrossRoadsSM
Service is 100%. The (3)CrossRoadsSM Service is considered
unavailable if a port is unable to send or receive traffic.  In the event that the (3)CrossRoadsSM
Service becomes unavailable for reasons other than an Excused Outage, Customer
will be entitled to a service credit off of the MRC for the affected
(3)CrossRoadsSM Service based on the cumulative unavailability of
the affected (3)CrossRoadsSM Service in a given calendar month as
set forth in the following table:

 

	
  Cumulative 
  Unavailability 

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  (in hrs:mins:secs)

  	
   

  	
   

  	
   

  
	
  00:00:01 -
  00:05:00

  	
   

  	
  ***

  	
   

  
	
  00:05:01-
  00:45:00

  	
   

  	
  ***

  	
   

  
	
  00:45:01-
  04:00:00

  	
   

  	
  ***

  	
   

  
	
  04:00:01 - 08:00:00

  	
   

  	
  ***

  	
   

  
	
  08:00:01
  -12:00:00

  	
   

  	
  ***

  	
   

  
	
  12:00:01
  -16:00:00

  	
   

  	
  ***

  	
   

  
	
  16:00:01 -
  24:00:00

  	
   

  	
  ***

  	
   

  
	
  24:00:01 or
  greater

  	
   

  	
  ***

  	
   

  

 

(2) Without prejudice to Customer’s right to
service credits pursuant to subsection (1) above, if the (3)CrossRoadsSM
Services are provided in Germany, then the Availability Service Level is 97.5%
(based on an annual average) if such (3)CrossRoadsSM Services is
provided using an Off-Net Local Loop and 99.9% (based on a calendar month) if
such (3)CrossRoadsSM Service is provided using an On-Net Local Loop.

 

(C)           Delay
Service Level. The Delay Service Level for (3)CrossRoadsSM
Service is as set forth in the following table:

 

	
  Route

  	
   

  	
  Delay
  Service Level

  	
   

  
	
  Intra- U.S.

  	
   

  	
  40 ms

  	
   

  
	
  Intra-Europe

  	
   

  	
  30 ms

  	
   

  
	
  London to New
  York, NY

  	
   

  	
  40 ms

  	
   

  

 

The Delay Service Level is measured as an average
one-way delay over a calendar month for traffic on the Level 3 network between
Gateways.  Delay measurements may be
obtained from the Level 3 web site at www.Level3.com.  In the event of a delay in excess of the Service Levels set forth
above for reasons other than an Excused Outage, Customer will be entitled to
receive a service credit off of the MRC for the affected (3)CrossRoadsSM
Service as set forth in the following table:.

 

	
  Amount of
  Delay in Excess of Service Level

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  0.1 - 5 ms

  	
   

  	
  ***

  	
   

  
	
  5.1 - 10 ms

  	
   

  	
  ***

  	
   

  
	
  10.1 - 15 ms

  	
   

  	
  ***

  	
   

  
	
  15.1 - 20 ms

  	
   

  	
  ***

  	
   

  
	
  20.1 - 25 ms

  	
   

  	
  ***

  	
   

  
	
  25.1 ms or
  greater

  	
   

  	
  ***

  	
   

  

 

(D)          Packet
Delivery Service Level.  The Packet
Delivery Service Level for (3)CrossRoadsSM Service is 99% for On-Net
traffic between Gateways.  Packet
Delivery is the average number of Internet Protocol (IP) packets of information
that transit the Level 3 network and are delivered by Level 3 to the intended
On-Net destination in a calendar month. 
Packet Delivery measurements may be obtained from the Level 3 web site
at www.Level3.com.  In the event Level 3
does not meet the Packet Delivery Service Level for reasons other than an
Excused Outage or as a result of any third party local access circuit (whether
provisioned by Customer or Level 3), Customer will be entitled to receive a
service credit off of the MRC for the affected (3)CrossRoadsSM
Service as set forth in the following table:

 

	
  Packet
  Delivery

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  98.5 - 98.99%

  	
   

  	
  ***

  	
   

  
	
  98 - 98.49%

  	
   

  	
  ***

  	
   

  
	
  97 - 97.99%

  	
   

  	
  ***

  	
   

  
	
  96 - 96.99%

  	
   

  	
  ***

  	
   

  
	
  95 - 95.99%

  	
   

  	
  ***

  	
   

  
	
  94.99% or less

  	
   

  	
  ***

  	
   

  

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

19

 

SERVICE SCHEDULE

(3)CONNECTSM MODEM SERVICE

 

1.  Applicability.  This
Service Schedule is applicable only where Customer orders (3)ConnectSM  Modem Service.

 

2. 
Definitions.  Any capitalized terms used
herein and not otherwise defined shall have the meaning set forth in the
Agreement.

 

(A)           “International” means anywhere
outside of the continental United States, including Alaska and Hawaii.

 

(B)           “Market” means any geographic area
(as defined by Level 3) in which Level 3 provides (3)ConnectSM Modem Service to Customer. 
The current list of available Markets, Market tiers and Rate Centers may
be obtained from the Level 3 web site at www.level3.com, which list may be supplemented by Level 3 (in its sole
discretion) from time to time.

 

(C)           “Rate Center” means the specific
geographic point (associated with one or more specific NPA/NXX codes and
various Wire Centers) being used for billing and measuring (3)ConnectSM  Modem Service.  For example, a Rate Center will normally
include several Wire Centers within its geographic area, with each Wire Center
being defined as having one or more NPA/NXX(s). The current list of available
Markets, Market tiers and Rate Centers may be obtained from the Level 3
web site at www.level3.com, which list
may be supplemented by Level 3 (in its sole discretion) from time to time.

 

(D)          “Tier 1 Authentication” means the
first stage authentication whereby Level 3 determines whether managed modem
port capacity is available in the particular Rate Center.

 

(E)           “Transit Service” means end user traffic that is routed to Level 3’s
facility and then routed to its final destination by Level 3 via the Level
3 IP network.

 

(F)           “U.S. Domestic” means the continental
United States.

 

3. 
Service Description.  (3)ConnectSM Modem Service is a dial-access, Transit
Service available on a fixed-port basis, usage basis and nationwide usage
basis.

 

4.  (3)ConnectSM
Modem Service — Fixed Port. 
The (3)ConnectSM Modem Service — Fixed Port is billed by
Level 3 to Customer on a per port basis. 
The (3)ConnectSM Modem Service — Fixed Port charges consist
of two (2) components: (a) a non-recurring installation charge per port; and
(b) a monthly recurring port charge applicable to the particular Market tier;
which charges shall be as set forth in the Customer Order or as otherwise
agreed between the parties in writing.

 

5.  (3)ConnectSM
Modem Service — Usage.  

 

(A)          The (3)ConnectSM
Modem Service - Usage is billed by Level 3 to Customer on a usage basis.  The (3)ConnectSM Modem Service — Usage
charges consist of two (2) components: (a) a non-recurring installation charge
per Market; and (b) a per hour usage charge applicable to the particular Market
tier; which charges shall be as set forth in the Customer Order or as otherwise
agreed between the parties in writing.

 

(B)           Usage of the (3)ConnectSM
Modem Service — Usage will be measured based on the total duration of all modem
sessions in a particular month.  Modem sessions will be measured in minutes
starting immediately following Tier 1 Authentication and ending when the user
disconnects from the Level 3 network. 
Level 3 radius accounting records will be used to determine the length
in time of each call.  At the end of
each monthly billing period, the accounting records for such month will be
summed to produce the total hours of usage of the (3)ConnectSM
Modem Service - Usage in the particular month for each Market tier (as applicable).

(C)           Customer will not have, nor shall it
be entitled to, any stated number of dedicated ports with any (3)ConnectSM
Modem Service - Usage.  Customer shall
make reasonable efforts to provide Level 3, on an ongoing quarterly basis, with
a non-binding demand forecast setting forth Customer’s estimated forecasted usage
(on a total hours of use by Rate Center basis) of (3)ConnectSM Modem
Service - Usage to facilitate Level 3’s planning efforts in support of
Customer.  

 

6.  (3)ConnectSM Modem Service — Nationwide.

 

(A)          The (3)ConnectSM
Modem Service - Nationwide is billed by Level 3 to Customer on a usage
basis.  The (3)ConnectSM Modem Service —
Nationwide charges consist of two (2) components: (a) a non-recurring
installation charge per Market; and (b) a per minute usage charge; which
charges shall be as set forth in the Customer Order or as otherwise agreed
between the parties in writing.

 

(B)          
Level 3 SS7 signaling records will be used to determine the length of time for
each subscriber call.  (3)ConnectSM
Modem Service — Nationwide sessions will be measured starting when the call
answer indication is passed to the Local Exchange Carrier and ending when the
user disconnects from the Level 3 network. 
At the end of each monthly billing period, the SS7 signaling records for
such month will be summed to produce the total minutes of usage of the
(3)ConnectSM Modem Service - Nationwide in the particular month for
each U.S. Domestic or International calling area (as applicable).

 

(C)           (3)ConnectSM
Modem Service - Nationwide charges shall be invoiced based on the following billing
increments.

 

	
  Service
  Type/ Rate Element

  	
   

  	
  Initial
  Billing 

  Increment 

  (seconds)

  	
   

  	
  Additional
  

  Billing 

  Increments 

  (seconds)

  	
   

  
	
  U.S. Domestic
  (3)ConnectSM Modem Service - Nationwide

  	
   

  	
  18

  	
   

  	
  6

  	
   

  
	
  International
  Originating (3)ConnectSM Modem Service - Nationwide

  	
   

  	
  30

  	
   

  	
  6

  	
   

  

 

Any partial billing increment shall be
rounded-up to the next interval.

 

(D)          If
more than thirty five percent (35%) of the U.S. Domestic toll-free minutes that
Customer transmits to Level 3 hereunder in any month originate in access areas other
than those operated by the following Local Exchange Carriers: Bell South, NYNEX
(Verizon North), Bell Atlantic (Verizon South), Southwestern Bell Telephone,
Ameritech, Qwest Communications, Cincinnati Bell Telephone, Southern New
England Telephone (SNET) and Pacific Bell 
(collectively the “RBOCs”), Level 3 will add a $0.03 per minute charge
(or such other charge as the parties mutually agree from time to time) to 

 

20

 

the applicable per minute rate for all
non-RBOC minutes in excess of the thirty five percent (35%) threshold.

 

(E)           Level
3 shall pass through to Customer and Customer shall pay all payphone surcharges
that are imposed on Level 3.  Such
payphone surcharges are imposed pursuant to the rules and orders of the Federal
Communications Commission (FCC) or other regulatory entity of competent
jurisdiction and are subject to change at any time.

 

(F)           Customer
will not have, nor shall it be entitled to, any stated number of dedicated
ports with any Level 3 (3)ConnectSM Modem Service - Nationwide.  Customer shall make reasonable efforts to
provide Level 3, on an ongoing quarterly basis, with a non-binding demand
forecast setting forth Customer’s estimated forecasted usage (on a total
minutes of use basis) of Level 3 (3)ConnectSM Modem Service -
Nationwide to facilitate Level 3’s planning efforts in support of Customer.

 

7.  Service
Levels.

 

(A)          Installation
Service Level.   Level 3 will
exercise commercially reasonable efforts to install any (3)ConnectSM
Modem Service on or before the Customer Commit Date specified for the
particular Service.  This Installation
Service Level shall not apply to Customer Orders that contain incorrect
information supplied by Customer or Customer Orders that are altered at Customer’s
request after submission and acceptance by Level 3.  However, this Installation Service Level will apply to such
Customer Orders if such orders are resubmitted and contain correct information,
with the calculation of the installation interval commencing on the date the
correct or altered order is accepted by Level 3.  In the event Level 3 does not meet this Installation Service
Level for a particular Service for reasons other than an Excused Outage,
Customer will be entitled to a service credit equal to fifty percent (50%) of
the non-recurring charges for the affected Service.

 

(B)           Call
Success Rate (CSR) Service Level. 
The CSR Service Level for (3)ConnectSM Modem Service is
90%*.  The CSR is measured by Level 3 as
a monthly average across the Level 3 modem network calculated based on the
number of IP sessions established against the total sessions attempted. An IP
session is established when the modem port is available to send, receive and
authenticate traffic.  In the event
Level 3 does not meet the CSR Service Level for reasons other than an Excused
Outage, Customer will be entitled to a service credit off of the monthly
recurring port charge for the affected (3)ConnectSM Modem Service as
set forth in the following table:

 

	
  CSR

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  88 - 89.99%

  	
   

  	
  ***

  	
   

  
	
  85 - 87.99%

  	
   

  	
  ***

  	
   

  
	
  80 - 84.99%

  	
   

  	
  ***

  	
   

  
	
  79.99% or less

  	
   

  	
  ***

  	
   

  

 

* The CSR Service Level does not apply to
ISDN Service

 

(C)           The
Service Levels set forth in this Section 7 shall only apply to (i) (3)ConnectSM
Modem Service - Fixed Port, and shall not apply to the (3)ConnectSM
Modem Service - Usage or (3)ConnectSM Modem Service - Nationwide;
and (ii) Rate Centers that have been made commercially available by Level 3 for
sixty (60) days or more.

 

21

 

SERVICE SCHEDULE

(3)LINKSM  CROSS CONNECT SERVICE and MONDO CONDO FIBER LINK
SERVICE

 

1.  Applicability.  This Service Schedule is applicable only where Customer orders
(3)LinkSM  Cross Connect
Service and/or Mondo Condo Fiber Link Service.

 

2. 
Definitions.  Any capitalized terms used
herein and not otherwise defined shall have the meaning set forth in the
Agreement.

 

3.  Service Description.  (3)LinkSM Cross Connect Service is copper or fiber
optic cabling cross-connected between Level 3 provided (3)CenterSM
Colocation (cabinets and/or suites), other Level 3 provided Service or
Facilities and/or third party provided services or facilities that terminate
within the Level 3 Gateway.  Mondo Condo
Fiber Link Service is fiber optic cabling that provides connectivity between
the Level 3 Mondo Condo facility and the Level 3 Gateway in the same
metropolitan area.  Mondo Condo Fiber
Link Service can provide connectivity between Level 3 provided (3)CenterSM
Colocation (cabinets and/or suites) within a Level 3 Mondo Condo facility and
the Level 3 Gateway, Level 3 provided dark fiber and/or third party provided
services or facilities that terminate within a Level 3 Gateway.

 

4.  Service
Level.  Level 3 will exercise
commercially reasonable efforts to install any (3)LinkSM Cross
Connect Service and any Mondo Condo Fiber Link Service on or before the
Customer Commit Date specified for the particular (3)LinkSM Cross Connect Service or Mondo Condo Fiber Link Service (as the
case may be).  This Installation Service
Level shall not apply to Customer Orders that contain incorrect information
supplied by Customer, Customer Orders that are altered at Customer’s request
after submission and acceptance by Level 3. 
However, this Installation Service Level will apply to such Customer
Orders if such orders are resubmitted and contain correct information, with the
calculation of the installation interval commencing on the date the correct or
altered order is accepted by Level 3. 
In the event Level 3 does not meet this Installation Service Level for a
particular (3)LinkSM
Cross Connect Service or Mondo Condo Fiber Link Service (as the case may be) for
reasons other than an Excused Outage, Customer will be entitled to a service
credit off of the non-recurring charges (“NRC”) and/or monthly recurring
charges (“MRC”) for the affected (3)LinkSM Cross Connect Service or Mondo Condo Fiber Link Service (as the
case may be) as set forth in the following tables:

 

For (3)LinkSM Cross Connect Service:

 

	
  Installation
  Delay Beyond Customer Commit Date

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  1 - 5 business
  days

  	
   

  	
  ***

  	
   

  
	
  6 - 20 business
  days

  	
   

  	
  ***

  	
   

  
	
  21 + business
  days

  	
   

  	
  ***

  	
   

  

 

For Mondo Condo
Fiber Link Service:

 

	
  Installation
  Delay Beyond Customer Commit Date

  	
   

  	
  Service
  Level Credit

  	
   

  
	
  15 - 30 business
  days

  	
   

  	
  ***

  	
   

  
	
  31 + business
  days

  	
   

  	
  ***

  	
   

  

 

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

22

 

APPENDIX I

 

FORM
OF OFFICER CERTIFICATION

 

 

 

[Date]

 

Level 3 Communications, LLC

1025 Eldorado Blvd.

Broomfield, CO 80403

Attn: Director, Billing

 

 

RE:                              Master Service
Agreement between Level 3 Communications, LLC (“Level 3”) and Universal Access,
Inc. (“Customer”) dated                
   , 2003 (“MSA”)

 

Attn: Chief Financial Officer:

 

Pursuant to Section 8.4 of
the MSA, for the period beginning on the Effective Date of the MSA through the
12 month  period ending    
               , 200  (“Certification Period”), this letter
certifies that Customer has been and continues to be in compliance with the
Requirements Commitment.  During the
Certification Period, Customer ordered        services qualifying (i.e., Level 3’s offer
*** than the bona fide third party offer as described under such section), of
which           
were ordered from Level 3.

 

 

Sincerely,

 

[Officer of Customer]

 

***         Certain
information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

23Exhibit
10(c)(9)

 

NINTH
AMENDMENT

TO THE

ICF
KAISER INTERNATIONAL, INC.

RETIREMENT
PLAN

 

WHEREAS, the ICF Kaiser International, Inc. Retirement Plan
(hereinafter referred to as the “Plan”) was established effective
August 1, 1971;

 

WHEREAS, the Plan was most recently restated effective January 1,
1996, by ICF Kaiser International, Inc. (currently known as Kaiser Group
International, Inc. and hereinafter referred to as the “Company”);

 

WHEREAS, the restated Plan was amended subsequently on eight occasions;

 

WHEREAS, the Company has retained the authority to amend and merge the
Plan pursuant to Sections 10.2 and 10.3 of the Plan; and

 

WHEREAS, the Company desires to (i) merge the Plan into, and transfer
the Plan’s assets to the trustee of, the ICF Kaiser International, Inc. Section
401(k) Plan, (ii) simplify the forms of benefit payment available under the
Plan, and (iii) make miscellaneous changes required by the Internal Revenue
Code or applicable regulations;

 

NOW, THEREFORE, effective as of the dates stated below, the Plan is
hereby amended as follows:

 

1.               Effective January 1, 2003, Section
1.8 is amended to replace the reference to “ICF Kaiser International, Inc.”
with a reference to “Kaiser Group International, Inc.”

 

2.               Effective January 1, 2001, Section 1.10
is amended to add the clause, “, as well as qualified transportation fringe
benefits excluded from gross income by reason of Code section 132(f)(4),” after
the clause, “and the ICF Kaiser International, Inc. Section 401(k) Plan,” in
the fourth sentence.

 

3.               Effective January 1, 2002, Section
1.40 is amended to read as follows:

 

“[Reserved]”

 

4.               Effective January 1, 2001, Section
4.4(b)(iii) is amended to add a phrase at the end to read as follows:

 

“, including,
elective amounts that are not includible in a Participant’s gross income by
reason of Code section 132(f)(4).”

 

5.               Effective January 1, 2003, a new
Section 8.13 is amended to read as follows:

 

“8.13                               Minimum
Distribution Requirements

 

(a)                                  General Rules

 

(i)                                     Effective
date.  The provisions of
this Section 8.13 will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year.

 

(ii)                                  Precedence.  The requirements of this Section 8.13 will
take precedence over any inconsistent provisions of the Plan.

 

1

 

(iii)                               Requirements of Treasury regulations
incorporated.  All
distributions required under this Section 8.13 will be determined and made in
accordance with the Treasury regulations under section 401(a)(9) of the Code.

 

(iv)                              TEFRA section 242(b)(2) elections.  Notwithstanding the other provisions of this
Section 8.13, distributions may be made under a designation made before
January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and
Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to
section 242(b)(2) of TEFRA.

 

(b)                                 Time and Manner of Distribution

 

(i)                                     Required
Beginning Date.  The
Participant’s entire interest will be distributed, or begin to be distributed,
to the Participant no later than the Participant’s Required Beginning Date.

 

(ii)                                  Death of Participant before
distributions begin. 
Except as provided in Section 8.13(d), if the Participant dies before
distributions begin, the Participant’s entire interest will be distributed, or
begin to be distributed, no later than as follows:

 

(1)                                  If the Participant’s surviving
spouse is the Participant’s sole designated beneficiary, then distributions to
the surviving spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died, or by
December 31 of the calendar year in which the Participant would have
attained age 701⁄2, if later.

 

(2)                                  If the Participant’s
surviving spouse is not the Participant’s sole designated beneficiary, then
distributions to the designated beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the
Participant died.

 

(3)                                  If there is no
designated beneficiary as of September 30 of the year following the year
of the Participant’s death, the Participant’s entire interest will be
distributed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

 

(4)                                  If the Participant’s
surviving spouse is the Participant’s sole designated beneficiary and the
surviving spouse dies after the Participant but before distributions to the
surviving spouse begin, this Section (b)(2), other than section (b)(2)(i), will
apply as if the surviving spouse were the Participant.

 

For purposes of this Section (b)(ii) and Section (d), unless Section
(b)(ii)(4) applies, distributions are considered to begin on the Participant’s
Required Beginning Date. If Section (b)(ii)(4) applies, distributions are
considered to begin on the date distributions are required to begin to the
surviving spouse under Section (b)(ii)(1). 
If distributions under an annuity purchased from an insurance company
irrevocably commence to the participant before the Participant’s Required
Beginning Date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under Section
(b)(ii)(1)), the date distributions are considered to begin is the date
distributions actually commence.

 

(iii)                               Forms of distribution.  Unless the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company or in
a single sum on or before the Required Beginning Date, as of the first
distribution calendar year distributions will be made in accordance with
Sections (c) and (d) below.  If the
Participant’s interest is distributed in the form of an annuity purchased from
an insurance company, distributions thereunder will be made in accordance with
the requirements of section 401(a)(9) of the Code and the Treasury regulations.

 

(c)                                  Required Minimum Distributions During
Participant’s Lifetime

 

(i)                                     Amount of
required minimum distribution for each distribution calendar year.  During the Participant’s lifetime, the
minimum amount that must be distributed for each distribution calendar year is
the lesser of:

 

(1)                                  the quotient obtained by dividing
the Participant’s Account balance by the distribution

 

2

 

period
in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the
Treasury regulations, using the Participant’s age as of the Participant’s
birthday in the distribution calendar year; or

 

(2)                                  if the Participant’s
sole designated beneficiary for the distribution calendar year is the
Participant’s spouse, the quotient obtained by dividing the Participant’s
Account balance by the number in the Joint and Last Survivor Table set forth in
section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and
spouse’s attained ages as of the Participant’s and spouse’s birthdays in the
distribution calendar year.

 

(ii)                                  Lifetime required minimum
distributions continue through year of Participant’s death.  Required minimum distributions must be
determined under this Section (c) beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

 

(d)                                 Required Minimum Distributions After
Participant’s Death 

 

(i)                                     Death on
or after date distributions begin

 

(1)                                  Participant survived by designated
Beneficiary.  If the Participant dies on or after the date
distributions begin and there is a designated beneficiary, the minimum amount
that must be distributed for each distribution calendar year after the year of
the Participant’s death is the quotient obtained by dividing the Participant’s
Account balance by the longer of the remaining life expectancy of the
Participant or the remaining life expectancy of the Participant’s designated
beneficiary, determined as follows:

 

(A)                              The Participant’s
remaining life expectancy is calculated using the age of the Participant in the
year of death, reduced by one for each subsequent year.

 

(B)                                If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is
calculated for each distribution calendar year after the year of the
Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in that year.  For distribution
calendar years after the year of the surviving spouse’s death, the remaining
life expectancy of the surviving spouse is calculated using the age of the
surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.

 

(C)                                If the Participant’s
surviving spouse is not the Participant’s sole designated beneficiary, the
designated beneficiary’s remaining life expectancy is calculated using the age
of the beneficiary in the year following the year of the Participant’s death,
reduced by one for each subsequent year.

 

(2)                                  No designated beneficiary. 
If the Participant dies on or after the date distributions begin and
there is no designated beneficiary as of September 30 of the year after
the year of the Participant’s death, the minimum amount that must be
distributed for each distribution calendar year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
Account balance by the Participant’s remaining life expectancy calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.

 

(ii)                                  Death before date distributions begin

 

(1)                                  Participant survived by designated
beneficiary.  If the
Participant dies before the date distributions begin and there is a designated
beneficiary, distribution to the designated beneficiary is not required to
begin by the date specified in Section (b)(ii), but the Participant’s entire
interest must be distributed to the designated beneficiary by December 31
of the calendar year containing the fifth anniversary of the Participant’s
death.  If the Participant’s surviving
spouse is the Participant’s sole designated beneficiary and the 

 

3

 

surviving spouse dies after the Participant but before distributions to
either the Participant or the surviving spouse begin, this election will apply
as if the surviving spouse were the Participant.

 

(2)                                  No designated beneficiary. 
If the Participant dies before the date distributions begin and there is
no designated beneficiary as of September 30 of the year following the
year of the Participant’s death, distribution of the Participant’s entire
interest must be completed by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death.

 

(e)                                  Definitions 

 

(i)                                     Designated
beneficiary.  The
individual who is designated as the beneficiary under Section 8.2(c) of the
Plan and is the designated beneficiary under section 401(a)(9) of the Code and
section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

 

(ii)                                  Distribution calendar year.  A calendar year for which a minimum
distribution is required.  For
distributions beginning before the Participant’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year
which contains the Participant’s Required Beginning Date.  For distributions beginning after the
Participant’s death, the first distribution calendar year is the calendar year
in which distributions are required to begin under Section (b)(ii).  The required minimum distribution for the
Participant’s first distribution calendar year will be made on or before the
Participant’s Required Beginning Date. 
The required minimum distribution for other distribution calendar years,
including the required minimum distribution for the distribution calendar year
in which the Participant’s Required Beginning Date occurs, will be made on or
before December 31 of that distribution calendar year.

 

(iii)                               Life expectancy.  Life expectancy as computed by use of the
Single Life Table in section 1.401(a)(9)-9 of the Treasury regulations.

 

(iv)                              Participant’s Account balance.  The Account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the Account balance as of dates in the
valuation calendar year after the valuation date and decreased by distributions
made in the valuation calendar year after the valuation date.  The Account balance for the valuation
calendar year includes any amounts rolled over or transferred to the Plan
either in the valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.

 

(v)                                 Required Beginning Date.  Required Beginning Date means April 1
of the calendar year following the later of the calendar year in which the
Participant attains age 701⁄2 or the calendar year in which the Participant
retires; however, in the case of a Participant who is a 5 percent owner (within
the meaning of section 416(i) of the Code), required beginning date means the
April 1 of the calendar year following the calendar year in which the
Participant attains age 701⁄2.”

 

6.               Effective as of the later of
July 30, 2003, or the 90th day after individuals have been
furnished a summary that reflects the elimination from the Plan of the optional
forms of benefit payment, other than a lump sum payment, Section 8.2(a) is
amended to replace the phrase, “Sections 8.4 and 8.5,” with the phrase,
“Section 8.5.”

 

7.               Effective as of June 1, 2003,
Section 8.3(a) is amended to delete (1) the clause, “or at the time of any
prior distribution exceeded,” from the fourth sentence, and (2) the clause,
“and has never exceeded,” from the sixth sentence.

 

8.               Effective as of the later of
July 30, 2003, or the 90th day after individuals have been
furnished a summary that reflects the elimination from the Plan of the optional
forms of benefit payment, other than a lump sum payment, the fourth sentence in
Section 8.3(a) is amended to read as follows:

 

“Notwithstanding the above, a terminated Participant’s Vested benefit
may not be paid without the written consent of the Participant if the present
value of his accrued benefit exceeds $5,000.”

 

4

 

9.               Effective as of the later of
July 30, 2003, or the 90th day after individuals have been
furnished a summary that reflects the elimination from the Plan of the optional
forms of benefit payment, other than a lump sum payment, Section 8.4(a) is
amended to read as follows:

 

“(a)                            Lump
sum.  The Participant’s Vested
Account balance shall be distributed in the form of a single lump sum payment.”

 

10.         Effective as of the later of July 30,
2003, or the 90th day after individuals have been furnished a
summary that reflects the elimination from the Plan of the optional forms of
benefit payment, other than a lump sum payment, Section 8.4(b) is amended to
(1) delete the first sentence, including Subsections (i), (ii), and (iii); (2)
designate Subsection (iv) as Subsection (b); (3) designate current Subsections
(iv)(1), (2), and (3), as Subsections (b)(i), (ii), and (iii), respectively;
and (4) amend any references in the Plan to these Subsections accordingly.

 

11.         Effective as of June 1, 2003, Section
8.4(c) is amended to delete the clause, “, and has not exceeded $5,000 at the
time of any prior distribution.”

 

12.         Effective as of the later of July 30,
2003, or the 90th day after individuals have been furnished a
summary that reflects the elimination from the Plan of the forms of benefit
described in Sections 8.5(a) and (h), Section 8.5 is amended to (1) delete
Subsections (a) through (f), and Subsection (h); (2) renumber Subsections (g),
(i), and (j) as Subsections (b), (c), and (d); (3) amend any references in the
Plan to these Subsections accordingly; and (4) add a new Subsection (a) to read
as follows:

 

“(a)                            Form
of death benefit.  Any death benefit
paid to a Beneficiary after the death of the Participant shall be paid in the
form of a single lump sum payment.  Such
lump sum payment shall be distributed to the Beneficiary within five years
after the Participant’s death.”

 

13.         Effective June 1, 2003, Section 8.5(b) (as
renumbered pursuant to item 12 above) is amended to delete (1) the clause, “and
has not exceeded $5,000 at the time of any prior distribution,” in the first
sentence and (2) the last sentence.

 

14.         Effective as of June 30, 2003, Section
10.3 is amended to add a new paragraph to read as follows:

 

“The Plan shall be
merged into the ICF Kaiser International, Inc. Section 401(k) Plan, effective
June 30, 2003.  The merger shall
satisfy the requirements of Code section 414(l). The Plan shall cease to exist
as a separate entity as of such date. 
The Plan assets shall be transferred as soon as administratively
feasible on such date or thereafter to the Trustee of the ICF Kaiser
International, Inc. Section 401(k) Plan.”

 

15.         Effective
January 1, 2002, unless otherwise stated, a new Article XII is added to
read as follows:

 

“ARTICLE XII – EGTRRA PROVISIONS

 

PREAMBLE

 

A.                                   Adoption and Effective Date of
Article XII.  This
Article XII of the Plan is adopted to reflect certain provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”).  This Article is intended as good faith
compliance with the requirements of EGTRRA and is to be construed in accordance
with EGTRRA and guidance issued thereunder. 
Except as otherwise provided, this Section shall be effective as of the
first day of the first Plan Year beginning after December 31, 2001, and
shall end December 31, 2010, unless otherwise extended by law or
otherwise.

 

B.                                     Supersession
of Inconsistent Provisions. 
This Article XII shall supersede the provisions of the Plan to the
extent those provisions are inconsistent with the provisions of this Section.

 

12.1                           Limitations On Contributions

 

(a)                                  Effective Date. This
subsection shall be effective for limitation years beginning after
December 31, 2001.

 

5

 

(b)                                 Maximum Annual Addition.
Notwithstanding Section 4.4, except to the extent permitted under section
414(v) of the Code, if applicable, the annual addition that may be contributed
or allocated to a Participant’s Account under the Plan for any limitation year
shall not exceed the lesser of:

 

(i)                                     $40,000, as
adjusted for increases in the cost-of-living under section 415(d) of the Code,
or

 

(ii)                                  100 percent of the
Participant’s compensation (as defined in section 4.4(b)(iii) for the
limitation year.

 

The compensation limit referred to in (ii) shall not
apply to any contribution for medical benefits after separation from service
(within the meaning of section 401(h) or section 419A(f)(2) of the Code) which
is otherwise treated as an annual addition.

 

12.2                           Increase
in Compensation Limit

 

Notwithstanding anything in
the definition of Compensation in Article I to the contrary, for Plan Years
beginning on or after January 1, 2002, the annual Compensation of each Participant
taken into account in determining allocations for any Plan Year shall not
exceed $200,000, as adjusted for increases in the cost-of-living in accordance
with section 401(a)(17)(B) of the Code. 
Annual Compensation means Compensation during the Plan Year or such
other consecutive 12-month period over which Compensation is otherwise
determined under the Plan (the determination period).  The cost-of-living adjustment in effect for a calendar year
applies to annual Compensation for the determination period that begins with or
within such calendar year.

 

12.3                           Modification
Of Top-Heavy Rules

 

(a)                                  Effective Date. This
Section shall apply for purposes of determining whether the Plan is a top-heavy
plan under section 416(g) of the Code for Plan Years beginning after
December 31, 2001, and whether the Plan satisfies the minimum benefits
requirements of section 416(c) of the Code for such years.  This subsection amends Article V of the
Plan.

 

(b)                                 Determination of Top-Heavy Status

 

(i)                                     Key
employee.  Key employee
means any Employee or former Employee (including any deceased Employee) who at
any time during the Plan Year that includes the determination date was an
officer of the Employer having annual compensation greater than $130,000 (as
adjusted under section 416(i)(1) of the Code for Plan Years beginning after
December 31, 2002), a 5-percent owner of the Employer, or a 1-percent
owner of the Employer having annual compensation of more than $150,000.  For this purpose, annual compensation means
compensation within the meaning of section 415(c)(3) of the Code. The
determination of who is a key employee will be made in accordance with section
416(i)(1) of the Code and the applicable regulations and other guidance of
general applicability issued thereunder.

 

(c)                                  Determination of Present Values and
Amounts. This Section shall apply for purposes of determining
the present values of accrued benefits and the amounts of account balances of
Employees as of the determination date.

 

(i)                                     Distributions
during year ending on the determination date. The present values
of accrued benefits and the amounts of account balances of an Employee as of
the determination date shall be increased by the distributions made with
respect to the Employee under the Plan and any plan aggregated with the Plan
under section 416(g)(2) of the Code during the 1-year period ending on the
determination date. The preceding sentence shall also apply to distributions
under a terminated plan which, had it not been terminated, would have been
aggregated with the Plan under section 416(g)(2)(A)(i) of the Code.  In the case of a distribution made for a
reason other than severance from employment, death, or disability, this
provision shall be applied by substituting “5-year period” for “1-year period.”

 

6

 

(ii)                                  Employees not performing services
during year ending on the determination date. The accrued
benefits and accounts of any individual who has not performed services for the
Employer or an affiliate during the 1-year period ending on the determination
date shall not be taken into account.

 

(d)                                 Minimum Benefits

 

(i)                                     Matching contributions. 
Employer matching contributions shall be taken into account for purposes
of satisfying the minimum contribution requirements of section 416(c)(2) of the
Code and the Plan. The preceding sentence shall apply with respect to matching
contributions under the plan or, if the plan provides that the minimum
contribution requirement should be met in another plan, such other plan.  Employer matching contributions that are
used to satisfy the minimum contribution requirements shall be treated as
matching contributions for purposes of the actual contribution percentage test
and other requirements of section 401(m) of the Code.

 

(ii)                                  Contributions under other plans. 
The Plan shall satisfy the minimum benefit requirement to the extent not
met by any other plan qualified under Code section 401(a) maintained by the
Employer.

 

12.4                           Direct
Rollovers of Plan Distributions

 

(a)                                  Effective Date.  Notwithstanding Section 8.4(b) (as
renumbered pursuant to item 10), this Section shall apply to distributions made
after December 31, 2001.

 

(b)                                 Modification
of Definition of Eligible Retirement Plan.  For purposes of the direct rollover
provisions in Section 8.4(b) of the Plan, an eligible retirement plan shall
include an annuity contract described in section 403(b) of the Code and an
eligible plan under section 457(b) of the Code that is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state
or political subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this Plan.  The definition of eligible retirement plan shall also apply in
the case of a distribution to a surviving spouse, or to a spouse or former
spouse who is the alternate payee under a qualified domestic relations order,
as defined in section 414(p) of the Code.

 

(c)                                  Modification
of Definition of Eligible Rollover Distribution to Exclude Hardship Distributions.  For purposes of the direct rollover
provisions in Section 8.4(b) of the Plan, any amount that is distributed on
account of hardship shall not be an eligible rollover distribution and the
distributee may not elect to have any portion of such a distribution paid
directly to an eligible retirement plan.

 

(d)                                 Modification
of Definition of Eligible Rollover Distribution to Include After-tax Employee
Contributions.  For
purposes of the direct rollover provisions in Section 8.4(b) of the Plan, a
portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax employee
contributions that are not includible in gross income.  However, such portion may be transferred
only to an individual retirement account or annuity described in section 408(a)
or (b) of the Code, or to a qualified defined contribution plan described in
section 401(a) or 403(a) of the Code that agrees to separately account for
amounts so transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such
distribution which is not so includible.

 

12.5                           Rollovers
Disregarded In Involuntary Cash-Outs

 

Effective for distributions made after June 1, 2003, and without
regard to the date the Participant terminated employment, for purposes of
Sections 8.3, 8.4, and 8.5, the value of a Participant’s Vested Account balance
shall be determined without regard to that portion of the Account balance that
is attributable to rollover contributions (and earnings allocable thereto)
within the meaning of sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii),
and 457(e)(16) of the Code.  If the
value of the Participant’s Vested Account balance as so determined is $5,000 or
less, the Plan shall immediately distribute the Participants entire Vested
Account balance.

 

7

 

Executed this 19th day of June, 2003.

 

	
   

  	
  KAISER GROUP
  INTERNATIONAL, INC.

  
	
   

  	
  (formerly known as
  ICF Kaiser International, Inc.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John T. Grigsby, Jr.

  	
   

  
	
   

  	
   

  	
  Title: 
  Chief Executive Officer

  
					

 

8

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