Document:

Exhibit 10.16

 

MASTER SERVICE AGREEMENT

 

This Master Service
Agreement (this “Agreement”) is entered into this 15th day of July, 2004 (“Effective
Date”) by and between LEVEL 3 COMMUNICATIONS, LLC (“Level 3”) and Vonage
Holdings Corp. (“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. Notwithstanding
anything in this Agreement or any Customer Order to the contrary, no Customer
requested date for delivery of Service will be effective unless and until
confirmed in writing by Level 3 through the delivery to Customer of the
Customer Commit Date. See Section 2.2(B) for overly long CCD.

 

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

 

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 (as described in Section 2.7
hereof), actions or inactions of Customer or its end users, Customer provided
power or equipment or an event of force majeure as defined in Section 7.1.

 

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

 

1.9.                              “Gateway” shall mean data center space owned
or leased by Level 3 or any of its Affiliates 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.                        “Megabit per second” or “Mbps” shall mean a
unit of data rate equal to 1 million bits per second.

 

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

 

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

 

Pages where confidential treatment has been requested are stamped,
"Confidential treatment has been requested. The redacted material has been
separately filed with the commission.'' All redacted material has been marked
by an asterisk (*).

 

 

1

 

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

 

1.15.                        “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); and (ii) the date
Customer begins using the Service.

 

1.16.                        “Service Levels” shall mean the specific
remedies Level 3 provides regarding installation and performance of Service as
set forth in the particular Service Schedule respecting the applicable
Service.

 

1.17.                        “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, Facilities or other tools made available by Level 3.

 

1.18.                        “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 party upon thirty (30) days’ written notice to the other.

 

ARTICLE 2.
DELIVERY OF SERVICE

 

2.1.                              Submission of Customer Order(s).   To
order any Service, Customer may submit to Level 3 a Customer Order
requesting Service. 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 the applicable Service Term.

 

2.2.                              Acceptance by Level 3/
Maximum Customer Commit Date.

 

(A)                              Upon receipt of a Customer Order, if Level 3
determines to accept the Customer Order, Level 3 will deliver a Customer
Welcome Letter for the requested Service. Level 3 will become obligated to
deliver any ordered Service only if Level 3 has delivered a Customer Welcome
Letter for the particular Service. At any time prior to Level 3’s acceptance of
a Customer Order by delivering to Customer a Customer Welcome Letter, Customer may rescind
such Customer Order on written notice to Level 3 without termination liability
of any kind.

 

(B)                                Notwithstanding the terms of Section 3.7(A),
in the event that the Customer Commit Date for any On-Net Service ordered by
Customer is thirty (30) days or more beyond the installation date requested by
Customer as set forth in the Customer Order, Customer may rescind the
Customer Order for such On-Net Service without termination liability upon
written notice to Level 3; provided such notice of rescission is delivered to
Level 3 (by email or other form of written notice as permitted by Section 7.4
hereof to Customer’s account representative and billing@Level3.com) within
three (3) business days following Customer’s receipt of the Customer
Commit Date from Level 3.

 

(C)                                The terms of this Section 3.7 shall in
no event be deemed to waive any right Customer may have under applicable
laws.

 

2.3.                              Credit Approval and Deposits.   Customer
will provide Level 3 with credit information as requested, and delivery of
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 (a) Level
3’s acceptance of any Customer Order; (b) Level 3’s continuation of any
usage-based Service; and/or (c) Level 3’s continuation of any non
usage-based Service only in the event that Customer fails to make payment to
Level 3 of any undisputed amount when due. Any deposit will be limited to two (2) months’
estimated charges for Service and will be due within five (5) business
days of Level 3’s written request. Any 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. Any deposit paid by Customer
pursuant to this Section 2.3 will be held by Level 3 in accordance with
the applicable law governing such deposit.

 

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2.4.                              Customer Premises.   Customer
shall allow Level 3 access to the Customer Premises to the extent reasonably
determined by Level 3 to be necessary for the installation, inspection and
scheduled or emergency maintenance of Facilities relating to the Service. Level
3 shall notify Customer at least two (2) business days in advance of any
regularly scheduled maintenance that will require access to the Customer
Premises. 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. Level 3 personnel having access to
Customer Premises shall abide by all Customer’s posted rules for such
access applicable generally to third party personnel, including without
limitation safety and security rules.

 

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
in connection with Customer’s purchase of Services and functions ancillary
thereto (as generally accepted in the telecommunications industry). 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 through Customer in violation
of this Agreement, and Customer shall reimburse Level 3 for any damages
incurred as a result thereof. 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 or cancellation
of the Service Term of all the applicable Service(s) 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.

 

(C)                                Upon removal of the Facilities, except where
the Facilities are promptly replaced, Level 3 will promptly restore the
Customer Premises to their original condition, reasonable wear and tear excepted.

 

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

 

2.7.                              Scheduled Maintenance.   Scheduled maintenance of the Level 3 network
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 exercise commercially reasonable efforts to (i) provide
Customer with seven (7) days’ prior written 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.

 

ARTICLE 3. BILLING AND
PAYMENT

 

3.1.                              Commencement of Billing.

 

(A)                              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 of
seventy two (72) hours to confirm that the Service has been installed and is
properly functioning. Unless Customer delivers written notice to Level 3 within
such seventy two (72) hour period that the Service is not installed in
accordance with the Customer Order and functioning properly, billing shall
commence on the applicable Service

 

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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. In the event that Customer
notifies Level 3 within the time period stated above that the Service is not
installed and functioning properly, then Level 3 shall correct any deficiencies
in the Service and deliver a new Connection Notice to Customer, after which the
process stated herein shall be repeated.

 

(B)                                In the event Customer (in accordance with Section 3.1(A) above)
delivers written notice to Level 3 within such seventy-two (72) hour period
that the Service is not installed and not functioning properly, Level 3 shall
promptly commence to remedy the defect or failure specified in Customer’s
notice. Thereafter, Level 3 shall again deliver to Customer a Connection Notice
and Customer shall have an additional period of seventy-two (72) hours to
confirm that the Service has been installed and is properly functioning. Subject
to any termination right Customer may have under Section 4.4 hereof,
this procedure shall apply again and successively thereafter until Level 3 has
remedied all material defects or failures in the operation of the Service. Notwithstanding
the foregoing and unless otherwise agreed by the parties, in the event Level 3
has delivered three (3) Connection Notices for a particular Service and
upon conclusion of the third seventy-two (72) hour testing period, the Service
still fails to be installed and functioning properly, Customer shall have the
right to terminate such Customer Order without termination liability upon five (5) calendar
days written notice to Level 3.

 

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 or construct additional Facilities in the provision
of the Service, such Customer Order may specify non-recurring charges that
are payable by Customer in advance of the Service Commencement Date, as
mutually agreed between the parties and specified in the Customer Order. If
Customer requests and Level 3 approves (in its sole discretion) any changes to
the Customer Order or Service after acceptance by Level 3, including, without
limitation, the Customer requested date for delivery of Service or Service
Commencement Date, additional non-recurring charges and/or monthly recurring
charges not otherwise set forth in the Customer Order may apply; provided,
that Level 3 will notify Customer of such additional charges at the time the
change request is made.

 

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 invoice except that Customer may withhold disputed amounts pursuant to Section 3.6.
Unless otherwise specified on the particular invoice, all payments shall be due
and payable in U.S. Dollars. Past due amounts bear interest at a rate of 1.5%
per month (or the highest rate allowed by law, whichever is less) beginning
from the date first due until paid in full.

 

3.4.                              Taxes and Fees.   All
charges for Service are exclusive of Applicable Taxes (as defined below). Except
for taxes based on Level 3’s net income, property (other than any allowance for
personal property tax expressly set forth in Level 3’s tariff or service guide
and applicable to all Level 3 customers) or employment. 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 for a particular
Service, 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 such exemption certificate on a prospective basis from and
after 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 without mark-up, and (b) if
Level 3 elects to pass such increased costs through to Customer, Customer may terminate
the affected Service

 

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without termination
liability by delivering written notice of termination no later than thirty (30)
days after the effective date of such rate increase.

 

3.6.                              Disputed Invoices/Failure to
Invoice.

 

(A)                              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 (with sufficient detail of the nature of
the claim, the amount and invoices in dispute and information necessary to
identify the affected Service(s)) for the disputed amount. All claims must be
submitted to Level 3 in writing within one hundred and twenty (120) days from
the date of the invoice for those Services. Customer waives the right to
dispute any charges not disputed within such one hundred and twenty (120) day
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.

 

(B)                                Except for taxes and fees due under Section 3.4,
if Level 3 fails to invoice Customer as set forth in Section 3.3 above
within one hundred and twenty (120) days of the end of the month in which
Services were provisioned, Customer shall not be obligated to pay Level 3 for
said Service and Level 3 shall forfeit the right to invoice Customer for such
Service.

 

3.7.                            Termination Charges.

 

(A)                              Customer may cancel a Service following
Level 3’s acceptance of the applicable Customer Order and prior to the Customer
Commit Date upon prior written notice to Level 3 (with sufficient detail
necessary to identify the affected Service). In the event that Customer does
so, or in the event that the delivery of such Service is terminated by Level 3
as the result of an uncured default by Customer pursuant to Section 4.2 of
this Agreement, Customer shall pay Level 3 a cancellation charge (as Level 3’s
sole and exclusive remedy for such cancellation) equal to the sum of;

 

(i)                                     any third party cancellation/termination
charges related to the installation and/or cancellation of any Off-Net Service;

 

(ii)                                  Level 3’s out of pocket costs (if any)
incurred in constructing Facilities in or to the Customer Premises necessary
for Service delivery solely to the extent they exceed the non-recurring charges
for the cancelled Service;

 

(iii)                               the * for any cancelled Service; and

 

(iv)                              for (1) On-Net (3)Link® Private Line
Service and (2) On-Net (3)Link® Cross Connect Service and Mondo Condo
Fiber Link Service only, * monthly recurring charges for any such cancelled
On-Net Service and for all other On-Net Services (except (3)Center® Colocation,
(3)CrossRoads® Service, (3)VoIPSM Local Inbound Service, and (3)VoIPSM
Toll Free Service, for which there shall be no charge pursuant to this
paragraph (iv)), one (1) month’s monthly recurring charges for such
cancelled On-Net Service.

 

Customer’s right to
cancel any particular Service under this Section 3.7(A) shall
automatically expire and shall no longer apply upon the later of (x) Level 3’s
delivery to Customer of a Connection Notice for such Service or (y) if two or
more Services are designated as “bundled” or as having a “sibling relationship”
in any Customer Order, Level 3’s delivery to Customer of a Connection Notice
for all such Services.

 

(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 (with sufficient detail necessary to identify the
affected Service). In the event that, after either the original Customer Commit
Date (if Customer requests and Level 3 agrees to a delay in delivery of a
particular Service) or Customer’s receipt of the Connection Notice for a
particular Service (whichever occurs first) and prior to the end of the Service
Term, (1) Customer terminates Service other than pursuant to Section 4.3
or under other circumstance giving Customer an express right to terminate or
cancel the Service without liability, or (2) the delivery of Service is
terminated by Level 3

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

 

 

5

 

as the result of an uncured
default by Customer pursuant to Section 4.2 of this Agreement, Customer
shall pay Level 3 a termination charge (as Level 3’s sole and exclusive remedy
for such termination) equal to the sum of:

 

(i)                                     all unpaid amounts for Service provided
through the date of termination;

 

(ii)                                  any actual and documented (by either an
invoice showing the amount owed by Level 3 or other evidence reasonably
satisfactory to Customer) third party cancellation/termination charges related
to the installation and/or termination of any Off-Net Service;

 

(iii)                               the non-recurring charges for any cancelled Service,
if not already paid;

 

(iv)                              for any On-Net Service other than those
Services listed in Section 7.12 of this Agreement (as of the Effective
Date) and unless otherwise agreed by the parties hereto in writing, the
percentage of the monthly recurring charges for the terminated On-net Service
calculated from the effective date of termination as (a) * of the
remaining monthly recurring charges that would have been incurred for the
On-Net Service for months 1-12 of the Service Term, plus (b) * of the
remaining monthly recurring charges that would have been incurred for the
On-Net Service for months 13-24 of the Service Term, plus (c) * of the
remaining monthly recurring charges that would have been incurred for the
On-Net Service for months * through the end of the Service Term; and

 

(v)                                 for any On-Net Service listed in Section 7.12
of this Agreement (as of the Effective Date), the percentage of the monthly
recurring charges for the terminated On-net Service calculated from the
effective date of termination as (a) * of the remaining monthly recurring
charges that would have been incurred for the On-Net Service for months 1-12 of
the Service Term, plus (b) * of the remaining monthly recurring charges
that would have been incurred for the On-Net Service for months 13 through the
end of the Service Term.

 

(vi)                              The parties acknowledge and agree that the
terms of Section 3.7(B)(iv) above may be renegotiated upon any
negotiation or execution of a new Service Schedule to this Agreement.

 

(C)                                The parties acknowledge that the cancellation
or termination charges set forth in this Section 3.7 are a genuine
estimate of the actual damages that Level 3 will suffer and are not a penalty.

 

3.8.                              Fraudulent Use of Services.   Customer
is responsible for all charges attributable to Customer incurred respecting the
Service. In the case of usage-based Services, Customer is responsible for all
usage charges even if incurred as the result of fraudulent or unauthorized use
of Service; except that Customer shall not be responsible for fraudulent or
unauthorized use by Level 3 or its employees or contractors.

 

ARTICLE 4. TERM AND
TERMINATION

 

4.1.                              Term.

 

(A)                              This Agreement shall become effective on the
Effective Date and shall continue for a period of two (2) years thereafter
(“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 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
or 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

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

 

6

 

(5) business days after
written notice from Level 3, or (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;
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 or 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.                              Right of Termination for
Installation Delay.

 

In lieu of any Service
Level credits for installation delays, if Level 3’s installation of Service is
delayed for more than thirty (30) calendar 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 shall not apply to any Service where
Level 3 (or a third party contractor engaged by Level 3) is constructing
Facilities in or to the Customer Premises necessary for delivery of such
Service. The parties hereto each acknowledge and agree that no construction of
Facilities in or to Customer Premises for the delivery of Service may be
ordered via a Customer Order, but instead the parties will agree to the terms
of such construction by a written addendum to this Agreement. In developing
such addendum, the parties agree to discuss in good faith pertinent deadlines
for completion of such construction and termination and/or other remedies for
failure to meet such deadlines, provided that such deadlines and remedies will
apply only to the extent incorporated in such addendum.

 

4.5.                              Termination and Bundled
Services.   In the
event that (i) Customer terminates Service pursuant to Section 4.3 or
under other circumstance giving Customer an express right to terminate or
cancel the Service without liability or (ii) Level 3 terminates a service
(other than for Customer default pursuant to Section 4.2) (such Service,
in either case, the “Terminated Service”) and such Terminated Service is
designated as “bundled” or as having a “sibling” or “dependent” relationship to
another Service in any Customer Order for such other Service or other written
communication by Customer to Level 3 prior to Level 3’s delivery to Customer of
the Customer Welcome Letter for such other Service (such other Service, the “Sibling
Service”), then Customer shall have the same right of termination with regard
to the Sibling Service that it, or Level 3, as applicable, has for the
Terminated Service (including, without limitation any time limitations or
notice requirements with regard to Customer’s right to terminate the Terminated
Service); provided, that Customer terminates both the Terminated Service and
Sibling Service at the same time and either under the same notice of
termination to Level 3 as the Terminated Service or by subsequent notice of
termination within five (5) business days after the notice of termination
of the Terminated Service.

 

ARTICLE 5. LIABILITIES AND
INDEMNIFICATION

 

5.1.                              No Special Damages.   Notwithstanding
any other provision hereof other than Section 5.2 and 5.4, neither party
shall be liable for any damages for loss of profits, loss of revenues, loss of
goodwill, loss of anticipated savings, loss of data or cost of purchasing
replacement services, or any indirect, incidental, special, consequential,
exemplary or punitive damages arising out of the performance or failure to perform under
this Agreement or any Customer Order.

 

5.2.                              Personal Injury and Death.   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.

 

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5.3.                              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 THIS AGREEMENT OR ANY APPLICABLE SERVICE SCHEDULE.

 

5.4.                              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 arising in connection with this Agreement.

 

ARTICLE 6. SERVICE LEVELS

 

6.1.                              Service Interruptions and
Delivery.   To report issues related to Service performance,
Customer may contact Level 3 Customer Service 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 order for Level 3
to investigate any reported issues, Customer agrees to provide Level 3 with
supporting information as reasonably requested by Level 3, which may include
(as applicable), without limitation, circuit ID, circuit end-point(s), IP
address(es), originating phone number and terminating phone number. In the
event of any damages arising out of Level 3’s furnishing or failure to furnish
Services under this Agreement, Customer’s sole remedies are contained in (a) the
Service Levels applicable (if any) to the affected Service, (b) the
chronic outage provision (if any) set forth in the Service Schedule applicable
to the affected Service, and (c) Section 4.4 above.

 

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. Level 3’s maintenance log and
trouble ticketing systems will be used for calculating any Service Level events.
To request a credit, Customer must contact Level 3 Customer Service or deliver
a written request (with sufficient detail necessary to identify the affected
Service) 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.

 

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 and in the event such inability
persists for more than thirty (30) consecutive days, Customer may terminate
the affected Service without liability upon prior written notice to Level 3;
provided Level 3 has not resumed delivery of the affected Service prior to
Customer’s delivery to Level 3 of such written notice of termination.

 

7.2.                              Assignment and Resale.   Neither
party may assign its rights and obligations under this Agreement or any
Customer Order without the express prior written consent of the other party,
which will not be unreasonably withheld except that either party may, without
such consent, assign this Agreement or any Customer Order to any of its
Affiliates. This Agreement shall apply to any permitted transferees or
assignees. Notwithstanding any assignment, Customer shall remain liable for the
payment of all charges due and Level 3 shall remain liable for the performance
of all its obligations under each Customer Order; except Customer shall be
released from all future payment obligations accruing under any Customer Order
assigned to an Affiliate of Customer, provided such Affiliate receives credit
approval by Level 3 and/or pays to Level 3 a creditworthiness deposit as
reasonably requested by Level 3. Customer may use the Service in providing
voice over IP services to its customers provided that Customer agrees to
indemnify, defend and hold Level 3 harmless from claims made against Level 3 by
such customers of Customer.

 

8

 

7.3.                              Affiliates.

 

(A)                              Service may be provided to Customer
pursuant to this Agreement by an Affiliate of Level 3, including, without
limitation, an Affiliate authorized to provide Service in a country other than
the country within which this Agreement has been executed. 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). Notwithstanding
any provision of Service to Customer pursuant to this Agreement by an Affiliate
of Level 3, Level 3 shall remain responsible to Customer for the delivery and
performance of the Service in accordance with the terms and conditions 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 also 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 in writing and sufficient and received if delivered in
person, or when sent via facsimile, pre-paid overnight courier, electronic mail
(if an e-mail address is provided below) or sent by U.S. Postal Service (or
First Class International Post (as applicable)), 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:

 

Vonage Holdings
Corp.

2147 Route 27

Edison, New Jersey  08817-3329 

Attn:  Michael Tribolet, EVP, Network
Operations

Facsimile:  732-476-5243

 

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. All such notices shall be deemed to
have been given on (i) the date delivered if delivered

 

9

 

personally, (ii) the
business day after dispatch if sent by overnight courier, (iii) the third
business day after posting if sent by U.S. Postal Service (or other applicable
postal delivery service), or (iv) the date of transmission if delivered by
facsimile or electronic mail (or the business day after transmission if
transmitted on a weekend or legal holiday). Notwithstanding the foregoing, any
notices delivered by Level 3 to Customer or vice versa 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.                              Acceptable Use Policy.   Customer’s use of Service shall comply with
Level 3’s Acceptable Use Policy and Privacy Policy, as 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.

 

7.6.                              Data Protection.   During
the performance of this Agreement, it may be necessary for Level 3 to
transfer, process and store billing and utilization data and other data
necessary for Level 3’s operation of its network and for the performance of its
obligations under this Agreement. The transfer, processing and storing of such
data may be to or from 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 as allowed by
law. This data will not be disclosed to third parties.

 

7.7.                              Contents of Communications.   Level
3 shall have no liability or responsibility for the content of any
communications transmitted via the Service (except for content solely created
by Level 3), 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 other than the Services expressly provided
by Level 3 under this Agreement.

 

7.8.                              Marks and Publicity.

 

(A)                              Neither party shall have the right to use the
other party’s or its Affiliates’ trademarks, logos, service marks or trade
names without the prior written consent of the other party. The marks used in
this Agreement and referenced as such are either registered service marks or
service marks of Level 3 Communications, Inc., its Affiliates or third
parties in the United States and/or other countries.

 

(B)                                Neither party shall issue any 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.

 

7.9.                              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.

 

7.10.                        (INTENTIONALLY LEFT BLANK).

 

7.11.                        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.

 

7.12.                        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

 

10

 

Service and supersedes all
prior agreements relating to the Service, (including without limitation those
certain Terms for Delivery of Service as modified by the Addendum dated May 25,
2001 between Level 3 and Min-X.com, Inc. a predecessor entity of
Customer), which are of no further force or effect. The Service Schedules
attached hereto are listed below:

 

Service Schedule– (3)Link® Private Line Service

Service Schedule– (3)Center® Colocation

Service Schedule– (3)Link® Cross Connect Service and

Mondo Condo Fiber Link Service

Service Schedule– Online Customer Service Center

Service Schedule– (3)CrossRoads® Service

Service Schedule– (3)VoIPSM Local Inbound
Service

Service Schedule– (3)VoIPSM Toll Free
Service

 

All Service Schedules,
whether attached hereto or executed between the parties after the Effective
Date, are integral parts hereof and are hereby made a part of this
Agreement.

 

7.13.                        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 or any terms and conditions
included in any Customer-provided purchase order shall be void unless
acknowledged and approved in writing by a duly authorized representative of
each party.

 

7.14.                        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) first, the Service Schedule, (2) second,
this Agreement, and (3) third, the Customer Order.

 

7.15.                        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.

 

7.16.                        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.

 

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

 

7.18.                        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 such declaration 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 rights and obligations
imposed on each party under this Agreement as originally executed.

 

7.19.                        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.

 

7.20.                        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.

 

11

 

7.21.                        Counterparts. This Agreement may be executed in one
or more counterparts, all of which taken together shall constitute one and the
same instrument. Facsimile signatures shall be sufficient to bind the parties
to this Agreement.

 

IN WITNESS WHEREOF, the parties have entered into this
Agreement as of the Effective Date written above.

 

	
  LEVEL 3 COMMUNICATIONS, LLC (“Level
  3”)

  	
  VONAGE NETWORK INC.
  (“Customer”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ John Ryan

  	
   

  	
  By

  	
  /s/ Michael Tribolet

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
  John Ryan

  	
   

  	
  Name

  	
  Michael Tribolet

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
  SVP

  	
   

  	
  Title

  	
  Executive Vice President of Operations

  	
   

  

 

12

 

SERVICE SCHEDULE

EMERGENCY CALL ROUTING SERVICE

 

This Service Schedule for
Emergency Call Routing Services (“Service Schedule”) is entered into this 29th
day of August, 2005 (“Effective Date’) by and between LEVEL 3 COMMUNICATIONS,
LLC (“Level 3”) and VONAGE NETWORK INC. (“Customer”). This Service Schedule is
governed by and subject to the Master Service Agreement between Level 3 and
Vonage Holding Corp. dated July 15, 2004 (“Agreement”), and is hereby
incorporated into and made a part of the Agreement. To The extent that the
terms of this Service Schedule conflict with the terms of the Agreement,
the terms of this Service Schedule shall govern.

 

WHEREAS Level 3 maintains
and is building a 911 Service platform, including connectivity by Level 3 to
911 Selective Routers across a portion of the Vonage Footprint; and

 

WHEREAS Customer seeks
access to Level 3’s 911 Service platform so that, in connection with
services offered by Customer and others, Customer’s End Users may place
911 Calls and receive 911 Services from Customer; and

 

WHEREAS the Parties wish
to enter into an agreement whereby Level 3 and Customer will establish, as
described herein, the necessary functionality, connectivity, selective routing,
and other features designed to enable End User 911 Calls to reach Covered PSAPs
and provide location and call back number information within the areas served
by Covered PSAPs, thus enabling 911 Service.

 

1.                                      DEFINITIONS.   Capitalized terms used and not otherwise
defined below shall have the meanings set forth in the Agreement.

 

“911 Call” means a
telephone call placed by an End User dialing “9-1-1” seeking 911 Service.

 

“911 Selective Router”
means the telephone switch or functional equivalent, controlled by the relevant
local exchange carrier (LEC), which determines the PSAP to which a 911 Call
should be delivered based upon the ESQK that is derived based on the Registered
Location of the End User.

 

“911 Service” means
functionality allowing an End User to contact the PSAP servicing the geographic
area in which the End User is located, and includes “Enhanced” functionality
providing the PSAP with the capability to determine the End User’s address and
call back telephone number (where the PSAP has such capability).

 

“911 Supported PSAPs”
shall mean: a) the * PSAPs (identified at Exhibit “B” hereto (covering 66%
of US Households as of the Effective Date)) which, as of the Effective Date
support the termination of 911 Calls delivered by Level 3 through direct
wireline trunking (but do not yet support ECR Services); plus b) * presently
unknown PSAPs (covering an additional 3% of US Households (and which will be
added to Exhibit B by Level 3 upon notification to Customer identifying
such PSAP’s)) which will, following the Effective Date, also support the
termination of 911 Calls delivered by Level 3 through direct wireline trunking
(but will also not immediately support ECR Services). Based on the foregoing,
there are a total of * 911 Supported PSAPs (which will cover 69% of US
Households). Level 3 intends to support the termination of 911 Calls through
direct wireline trunking to a total of 72% of US Households by December 31,
2005; those PSAPs comprising the difference between Level 3’s coverage of 69%
and 72% of U.S. Households (which ultimately become Covered PSAP’s) shall be
included in the fees for ECR Service stated in Section 4 of this Service Schedule below
and are meant to cover contemplated growth of the relationship between the
parties. Level 3 and Customer shall, consistent with this Service Schedule, use
commercially reasonable efforts to convert 911 Supported PSAPs to Covered
PSAPs.

 

“Automatic Location
identification” or “ALI” shall mean the automatic display at the PSAP of the
caller’s telephone number, the address/location of the telephone and, in some cases,
supplementary emergency services information.

 

“Automatic Number
Identification” or “ANI” shall mean the telephone number associated with the
access line from which a 911 Call originates. The ANI telephone number must be:
(i) ten-digits and (ii) follow the North American Numbering Plan
Administration (NANPA) numbering guidelines.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

1

 

“Covered End Users” shall
mean Customer’s End Users whose Registered Locations are served by a Covered
PSAP (whether or not Customer uses ECR Service in connection with such End
Users).

 

“Covered PSAP” shall mean
a 911 Supported PSAP for which Level 3 provided ESRN’s and Level 3 or Customer
provided ESQK’s have been provisioned within the Selective Router Database
(SRDB) and as shell records in the ALI database by Customer’s VPC and the PSAP
has agreed to support 911 Calls in accordance with the ECR Service description
in Section 2 using ESQK’s and ESRN’s (such that the PSAP is supported by
Level 3’s ECR Service). Customer has requested that Covered PSAPs also include
911 Supported PSAPs which do not, or do not yet, support dynamic ALI (i.e. the
PSAP cannot query Customer’s VPC with an ESQK to determine an End User’s
Registered Location); Level 3 will support Customer’s request, provided that
Level 3’s ECR Services will be provided in the same manner whether or not
Covered PSAPs support or do not support dynamic ALI.

 

“Customer IP Gateway”
shall mean the Customer controlled facilities at which Customer delivers 911
Calls to Level 3.

 

“Emergency Call Routing”
or “ECR” Service is defined in Section 2.

 

“End User” means a person
or entity using a Customer provided VoIP application or service.

 

“ESQK” means Emergency
Services Query Key. An ESQK is a Rate Center or PSAP level, NANPA formatted
telephone number provided to Customer by Level 3 * which is thereafter
provisioned as a shell record in the ALI Database by Customer’s VPC and which:
i) can be queried by a 911 Selective Router to determine the PSAP to which a
911 Call should be routed and ii) when queried by the PSAP, designates the VPC
that may be queried with the ESQK to obtain the applicable End User’s
address and call back telephone number. Unless otherwise agreed between the
parties, ESQK’s provided by Level 3 to Customer hereunder shall be dedicated
for Customer’s use, unless a PSAP prohibits Level 3 from providing its
customers *, such ESQK’s may only be provided in connection with Covered
PSAPs and shall not be utilized by Customer until Customer has notified Level 3
in writing *. Customer and Level 3 will work cooperatively to resolve any
problems or errors respecting *.

 

“ESRN” means Emergency
Service Routing Number. An ESRN is a Level 3 provided routing number which,
based on the physical location of the End User placing a 911 Call, must be
provided back to Level 3 by Customer in the SIP header for the 911 Call setup
for routing of the call by Level 3 to the appropriate 911 Selective Router.

 

“Public Safety Answering
Point” or “PSAP” shall mean an answering location for 911 Calls originating in
a given area. PSAPs are typically a common bureau used to answer emergency
calls and dispatch public safety agencies such as police, fire, emergency
medical, etc. A PSAP may be designated as primary or secondary, which
refers to the order in which calls are directed for answering, i.e., primary
PSAPs answer calls; secondary PSAPs receive calls on a transfer basis.

 

“Rate Center” shall mean
a geographic area (determined by the applicable ILEC) within a market or local
calling area that is associated with one or more specific NPA/NXX codes.

 

“Registered Location”
shall mean the most current known physical location for any End User, as
provided to Customer (or its contractor(s)).

 

“Term” shall mean a
period of time commencing on the Effective Date and continuing until December 31,
2008, Section 4.1 of the Agreement notwithstanding.

 

“Tier 1 Support” shall
mean the handling of all initial call inquiries/trouble reports including
trouble shooting directly with the originator of those requests.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

2

 

“U.S. Households” shall
mean the number of households in the continental United States (not including
Hawaii and Alaska) as measured by the sum of 2004 mapinfo data for all U.S.
Rate Centers.

 

“VoIP” means Voice over
Internet Protocol.

 

“Vonage Footprint” shall
mean the areas served by PSAPs in which Customer provides VoIP application or
service calling capability to End Users.

 

“VoIP Positioning Center”
or “VPC” shall mean an entity contracted by Customer to perform certain of
the functions described herein.

 

2.                                      SERVICE
DESCRIPTION.   ECR Service
provides: i) routing by Level 3 of an End User 911 Call from the Customer IP
Gateway to the 911 Selective Router serving a Covered PSAP for the End User’s
Registered Location (such 911 Selective Router being determined by Level 3
solely by the ESRN supplied by Customer in the relevant 911 Call signaling);
and ii) delivery by Level 3 of the ESQK supplied by Customer in the relevant
911 Call signaling to such 911 Selective Router *. The 911 Call will thereafter
be carried from the 911 Selective Router (along with the ESQK) to the
appropriate Covered PSAP (such Covered PSAP being determined by the Selective
Router based on the ESQK provided to such 911 Selective Router) on facilities
controlled by the LEC. Level 3 does not control routing or facilities provided
by the LEC or other third parties (and such elements are not part of the
ECR Services); provided, however, that Level 3 shall use commercially
reasonable efforts (assuming the cooperation of applicable third parties) to
work with the LEC or other third party providing such routing or facilities to
minimize and resolve actual or anticipated service affecting issues, including
without limitation, provisioning, maintenance and PSAP trunk call failure(s).

 

ECR Service is a call
routing and termination service only, including maintenance and support
responsibilities for such functions. ECR Services will not independently
provide 911 Services; however, when used in connection with the services
provided by Customer and other of Customer’s third party suppliers (including
VPC’s and LEC’s), ECR Services are designed to assist Customer in supplying 911
Services to its End Users. ECR Service shall be considered a “Service” as
defined in the Agreement though not designated in a Customer Order. As of the
date on which a 911 Supported PSAP becomes a Covered PSAP and thereafter
throughout the Term of this Service Schedule, ECR Services will be available
from Level 3 in such Covered PSAP for all End Users whose Registered Location
is within the area served by such Covered PSAP. The 911 Supported PSAPs which
Level 3 anticipates will become Covered PSAPs are identified in Exhibit “B”,
which will be updated by Level 3 from time to time.

 

As ESQKs are provided to
Customer, Level 3 shall build, maintain and provide to Customer an ESQK routing
table detailing ESQK to Covered PSAP correlations. Level 3 shall notify
Customer of changes and updates to the routing table within three (3) business
days of such changes and/or updates, or as promptly as possible in light of the
circumstances. Upon mutual agreement between the parties, Level 3 will provide
to Customer an ESRN routing table detailing ESRN to 911 Selective Router
correlations.

 

Level 3 agrees that Section 4.2(iv) of
the Agreement notwithstanding, if Customer fails to observe and perform a
material term of the Agreement (other than as respects payment terms) unrelated
to the ECR Services, that Level 3 will not have any right to terminate the ECR
Services or the Agreement as it relates thereto, and that after the applicable
cure period, that Level 3 may only terminate the Agreement (or applicable
Customer Orders) as respects all non-ECR Services. Level 3 may terminate
the ECR Services: i) in accordance with Section 4.2(iv) of the
agreement only as respects uncured material defaults respecting the ECR
Services; ii) Section 4.2(iii) of the Agreement notwithstanding, if
any payment not being reasonably disputed in accordance with Section 3.6
of the Agreement remains unpaid or undisputed for a period of fifteen (15)
business days after written notice from Level 3; and iii) otherwise in
accordance with Sections 4.2(i) and (ii) of the Agreement.

 

3.                                      RESPONSIBILITIES
OF THE PARTIES.

 

(A)                              Level 3 Responsibilities.   Subject
to the other terms and conditions of the Agreement and this Service Schedule,
including SLAs and other related Attachments, Level 3 will provide ECR Service
to Customer during the

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

3

 

Term. As it relates to Section 3.1
of the Agreement, Level 3 and Customer acknowledge that such Service has been
ordered by Customer and accepted by Level 3.

 

Level 3 will supply to
Customer and Customer’s VPC (unless otherwise agreed in writing) ESQKs for 911
Supported PSAPs where the VPC (in cooperation with Level 3) causes the 911
Supported PSAP to become a Covered PSAP, and will supply ESRNs for the 911
Selective Routers servicing the 911 Supported PSAPs as of the milestone date
set forth in Section 3(C)B of this Service Schedule. For each Covered
PSAP, the appropriate number of ESQKs will be allocated based upon the minimum
criteria for establishing functionality to each individual PSAP’s service
bureau. *. If warranted by traffic volume growth over the Term of the Service
Schedule, or if upon request by a Covered PSAP, Level 3 shall promptly assign
the appropriate number of additional ESQKs to be allocated to each Covered PSAP
as may be appropriate under the circumstances.

 

For facilities controlled
by Level 3, Level 3 shall be responsible for all capacity, design, and trunk
level provisioning (including any trunk level provisioning required to support
the use of ESRN/ESQK values) and maintenance in accordance with industry
standards, and will be responsible for augmenting capacity and trunking related
to the ECR Service, based on Customer’s historic demand, with consideration
given to Customer’s forecasted demand and the historic accuracy of such
forecasts.

 

If Level 3 establishes
911 Supported PSAP coverage in excess of 72% of US Households at any time
during the Term, Level 3 will make such additional coverage available to
Customer on terms and conditions as are mutually agreed between the parties.
Throughout the Term, Level 3 shall promptly notify Customer of any changes to
Level 3’s Covered PSAP’s, including providing to Customer a non-binding,
rolling six (6) month forecast of PSAPs Level 3 expects to become Covered
PSAPs.

 

All state and federal
regulatory compliance and reporting related to the ECR Service (and not
addressed specifically under the Customer Responsibilities section of this
Service Schedule below), including without limitation the payment of any
and all related fees, surcharges or cost-recovery charges (if any), shall be
the sole responsibility of Level 3. If at any time during the Term, the ECR
Service is determined by the F.C.C., or court or arbitrator of competent
jurisdiction, to be non-compliant for the purposes of providing 911 Services,
Level 3 will exercise commercially reasonably reasonable efforts under the
circumstances to make adjustments to the ECR Service to bring it into
compliance with the applicable regulatory requirements. If Level 3 fails to
bring ECR Service into compliance within a mutually agreed to timeframe (or a
timeframe established affirmatively by the F.C.C., or court or arbitrator of
competent jurisdiction), Customer may terminate the affected ECR Service
and Customer’s fees shall be adjusted in accordance with Section 4 below
for any associated reduction in Covered End Users.

 

Level 3 shall designate
Level 3-provided ECR Service related facilities and trunk groups as being used
for 911 Services with appropriate naming conventions, and for repair and
maintenance purposes, shall treat any such facilities at parity with the
priority associated with ECR Services provided to any other Level 3 customer.
Level 3 shall work promptly and in good faith to correct any known or
reasonably knowable defects that exist on Level 3’s side of the demarcation
between the Customer IP Gateway and the Level 3 network. Level 3 will utilize
commercially reasonable practices for the establishment of facility and trunk
level diversity for connectivity from the IP Customer Gateway to the 911
Selective Routers, such that connectivity to the 911 Selective Routers will
maintain an industry standard level of resilience. On or before October 12,
2005, Level 3 will deliver to Customer a plan detailing the deployment of *,
and will deploy * (provided that Level 3 may periodically *, communicating
such updates to Customer). Level 3 will also indicate to Customer where * is
not reasonably available and will update Customer from time-to-time *.

 

Level 3 shall notify
Customer in writing of any scheduled application or software upgrades
respecting the ECR Service at least * days in advance of such upgrade. Level 3
shall continue to support *.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

4

 

until Customer has fully
tested and completed its conversion *, provided that Customer works
cooperatively and in good faith *.

 

Level 3 will supply the
ECR Services in accordance with the Service Levels set forth in Exhibit “A”
hereto; Level 3 will provide Customer the Service Level credits stated therein
applicable to the stated levels of service quality. If Level 3 fails to meet
any Service Level, then in addition to any other rights or remedies that
Customer may have under the Agreement and/or this Service Schedule, or
under applicable law (as limited by the Agreement and/or this Service
Schedule), Level 3 shall, at no charge to Customer, (i) investigate the
report on the causes of the problem, (ii) advise Customer, and to the
extent reasonably requested by Customer, of the status of remedial efforts
being undertaken with respect to such problems, (iii) work in good faith
using commercially reasonable/industry standard approaches to correct the
problem until the problem is resolved, and begin meeting the Service Levels as
soon as practicable, and (iv) take appropriate preventive measures to
avoid recurrence of the problem.

 

(B)                                Customer Responsibilities.   Subject
to the other terms and conditions of the Agreement and this Service Schedule,
including SLAs and other related Attachments, and subject to Customer’s demand
for ECR Service from Level 3 (provided that demand other than that anticipated
shall not affect Customer’s payment obligations to Level 3 as stated in Section 4
of this Service Schedule), Customer will purchase ECR Service from Level 3
during the Term.

 

Customer shall be
responsible for providing, at its cost, all facilities and the Customer network
required to operate with and interconnect to the ECR Service up to (and
including) the Customer IP Gateway, at which point all facilities, network and
other costs related to the provision of ECR Service shall be borne by Level 3.
For all 911 Calls delivered to Level 3 for routing in accordance with the ECR
Service at the Customer IP Gateway, Customer shall transmit to Level 3, an
accurate and current ESQK (provided in the Domestic P-Asserted Identity field
of the SIP header for the 911 Call setup) in e.164 format including the “+”
sign proceeding the “1” followed by the ten digit number and ESRN (provided in
the URI Field of the SIP header for the 911 Call setup) in e.164 format
including the “+” sign proceeding the “1” followed by the ten digit number,
such that, given the then current Registered Location of the End User placing
the 911 Call: i) Level 3 routes the 911 Call (in accordance with Section 3(A) above)
to the 911 Selective Router serving the Covered PSAP associated with the End
User’s Registered Location; ii) when Level 3 provides the 911 Selective Router
the ESQK supplied by Customer, the 911 Selective Router selects and routes the
911 Call to the correct Covered PSAP to which the 911 Call should be delivered;
and iii) the Covered PSAP can (where capable of doing so), through queries of
the ALI Database and Customer or its VPC, obtain the End User’s accurate and
current Registered Location and call back telephone number information. For
clarity, the foregoing requires, among other things, that Customer, or Customer’s
VPC (using Customer’s NENA ID, where applicable): i) input, validate and
maintain all ESQK’s provided by Level 3 in and to the ALI Database and SRDB;
ii) enable and maintain an electronic interface requiring an End User to, before
such End User is able to use Customer’s VoIP application, input, and in the
event of any change in an End User’s Registered Location (other than within the
same address), update, all End User information required by the ALI Database in
a format acceptable to the PSAP; and iii) input, validate (including
immediately resolving any input failures/rejections) and maintain, on a real
time basis, all information submitted by End Users as required by the ALI
Database. Customer (or its VPC) shall be responsible to provide all Tier 1
support as respects PSAP inquiries made with respect to 911 Calls made by
Customer’s End Users, and any inquiries to Level 3 respecting the same may be
forwarded for immediate response by Customer to 732-528-2697; provided, however,
that Level 3 shall work cooperatively and in good faith with Customer to
resolve such inquiries.

 

Provided that Level 3
provides an accurate mapping of ESQKs to Covered PSAPs, Customer shall use
commercially reasonable efforts not deliver any 911 Call to Level 3 for
termination where the End User’s Registered Location is not within an area
served by a Covered PSAP. Customer acknowledges that if it delivers a 911 Call
to Level 3 for termination where the End User’s Registered Location is not
within an area served by a Covered PSAP, that the call may be ultimately
delivered to the incorrect PSAP, and that Level 3 shall have no liability
whatsoever for such 911 Calls; provided that in the event any such calls are
inadvertently delivered to the Level 3 network, the Level 3 NOC shall promptly
notify the Vonage NOC of the occurrence.

 

Unless otherwise agreed
between the parties in writing ECR Services shall not be re-sold by Customer on
a stand alone basis to third parties; provided that Customer may sell VoIP
services to End Users or as a part of a wholesale, bundled VoIP service
offering to customers who are not End Users which incorporate the ECR Services.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the Commission.

 

5

 

Customer shall be
responsible for establishing (or causing its VPC to establish) appropriate
relationships with PSAP’s causing 911 Supported PSAPs to become Covered PSAPs,
including causing such PSAPs to permit i) the provisioning of ESQK’s within the
SRDB and as shell records in the ALI database which: a) can be queried by the
applicable 911 Selective Router to determine the PSAP to which a 911 Call
should be routed and b) (except where the applicable 911 Supported PSAP does
not, or does not yet, support dynamic ALI), when queried by the PSAP, requires
the ALI database to query the applicable VPC with the ESQK to obtain the
applicable End User’s address and call back telephone number (provided the PSAP
has the capability to do so). Level 3 will cooperate with Customer and its VPC
in connection with the foregoing.

 

All state and federal
regulatory compliance and reporting related to the VoIP application or service
calling capabilities offered by Customer to its End Users shall be the sole
responsibility of Customer, and Level 3 shall not be responsible for any fees,
surcharges or cost-recovery charges relating to Customer’s service’s, including
any 911 Service component thereof, (provided that Level 3 shall remain
responsible for any fees, surcharges or cost-recovery charges relating to the
ECR Service (if any)). As between Level 3 and Customer, Customer shall be
solely responsible for payment of * and for any charges by VPCs associated with
911 Calls routed to a national call center (where failure of the ECR Service
was not the cause of such routing; *. If any PSAP or taxing authority seeks
payment of any such cost-recovery or funding mechanism from Level 3 that is
properly directed to Customer, Level 3 shall promptly redirect the entity to
Customer, or Customer’s designated agent. In the event Customer fails to timely
pay such charges and the PSAP or taxing authority continues to pursue Level 3
for payment, both parties agree to petition the relevant authority requesting
that they seek to collect such charges directly from Customer. Thereafter, in
the event a PSAP or taxing authority continues to pursue Level 3 for such
charges notwithstanding the foregoing, Customer will indemnify and defend Level
3 from any such claims.

 

Customer shall designate
all Customer provided service related facilities being used for 911 Service
purposes with appropriate naming conventions, and for repair and maintenance
purposes, shall treat such facilities with appropriate priority under the
circumstances. Customer shall work promptly and in good faith to correct any
known or reasonably knowable defects that exist on Customer’s side of the
demarcation between the Customer IP Gateway and the Level 3 network.

 

Custom will provide Level
3 with written, quarterly, non-binding forecasts, containing Customer’s
estimated End User forecasts at the Rate Center level. Level 3 shall take
Customer’s forecasts (and the historic accuracy of the same) into consideration
in the planning and forecasting of ESQK assignments and trunk/capacity
augments.

 

Customer or Customer’s
VPC may agree to assist and/or perform required or helpful actions
(as requested by Level 3) to enable the acquisition by Level 3 of ESQKs from
third parties.

 

Customer shall notify
Level 3 in writing of any scheduled application or software upgrades which may impact
the ECR Services at least forty-five (45) days in advance of such upgrade.
Customer shall continue to support the prior version of the application or
software until Level 3 has fully tested and completed its conversion to the
upgraded application or software, provided that Level 3 works cooperatively and
in good faith to upgrade its systems in a commercially reasonable manner,
provided that such time period shall not exceed six (8) months.

 

(C)                                Joint Responsibilities.   Level
3 and Customer will conduct interoperability testing of the ECR Service and
prior to Customer’s or Level 3’s implementing any software or call flow
upgrade, enhancement or modification thereto. All special configurations sought
by either party are subject to the other party’s prior approval, such approval
not to be unreasonably withheld. Level 3 and Customer agree to negotiate in
good faith modifications to this Service Schedule as may be necessary
to address issues revealed prior to and/or during interoperability testing.

 

Customer and Level 3
agree to work cooperatively to achieve the following ECR Service milestones:

 

A.   *

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

6

 

 

B.   *

 

C.   *

 

D.   *

 

E.   *

 

Without limiting the
applicability of any available remedies set forth hereunder, the parties will
work cooperatively to isolate, coordinate and restore 911 Service related
problems and to work cooperatively and expeditiously to restore and resolve any
911 Service failure, disruption or outage. The parties further agree that 911
Service related network problem resolution will be managed expeditiously at all
times. In the event of any facility, 911 Selective Router, PSAP, LEC or ECR
Service network related failure, or service degradation or interruption, (or
anticipated failure, degradation or interruption) the parties agree to abide by
the Outage Notification and Escalation process described in Exhibit A
hereto.

 

Each party shall monitor
and perform maintenance through testing and the performance of proactive
maintenance activities such as routine testing, development of and adherence to
appropriate network trouble isolation processes and periodic review of
operational elements for translations, routing and network faults.

 

Each Party shall comply
with all federal, state and local laws applicable to their performance hereunder.

 

(D)                               Call Success/Failure Responsibilities.   When Level 3 delivers a 911 Call to the 911
Selective Router and the 911 Selective Router has accepted the 911 Call for
delivery to the Covered PSAP, the ECR Service will notify the Customer IP
Gateway that the 911 Call has been so delivered by Level 3. If the ECR Service
does not deliver the 911 Call in accordance with the foregoing within five (5) seconds
of delivery of the 911 Call by Customer to Level 3, the ECR Service shall not
respond to the Customer IP Gateway and the 911 Call shall be considered to have
“Timed Out.” Level 3 shall also affirmatively return a 911 Call to Customer at
the Customer IP Gateway in the event that Level 3 determines that the ECR
Service is unable to deliver the 911 Call within five (5) seconds of
delivery of the 911 Call by Customer to Level 3; Level 3 and Customer will work
together to establish mutually

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

7

 

agreed upon failure codes
for inclusion by Level 3 in 911 Calls returned to Customer, based on industry
standard failure codes. In the event that Customer delivers Level 3 a 911 Call
for routing using the ECR Service and either: i) the call Times Out or ii)
Level 3 returns the 911 Call back to Customer at the Customer IP Gateway, then
Customer shall handle the 911 Call in accordance with industry standard and
accepted backup procedures established by Customer (which may include
re-routing the call by other means).

 

4.                                      CHARGES.   The charges for ECR Services during the Term
are stated below, and are based on the total number of Customer’s End Users
which are physically located (for all or any portion of the relevant month) in
areas served by Covered PSAPs.

 

(a)                                  Non-Recurring Charges

 

For the ECR Service, Customer shall pay Level 3 a
non-recurring charge (“NRC”) of * according to the following payment schedule: (i) $*
on the Effective Date; (ii) $* on the date Level 3 satisfies the milestone
stated in Section 3(C)A above; provided that if such milestone has not
been completed as of September 20, 2005 because Customer or its VPC has
failed to accomplish any element stated on Exhibit “D” needed for the
test, then Customer shall pay Level 3 the $* on September 20, 2005
notwithstanding that such testing has not been yet completed; and (iii) $*
for every * the 911 Supported PSAPs that become Covered PSAPs. For example, if
10% (i.e. *911 Supported PSAPs) become Covered PSAPs, an NRC of $* would be
payable. Level 3 will invoice Customer monthly according to the percentage of
911 Supported PSAPs which have become Covered PSAPs in the prior month. If for
any reason the NRC stated in subpart (ii) immediately above is not
paid as of the date the first 911 Supported PSAP becomes a Covered PSAP, such
payment will become due upon such occurrence.

 

(b)                                 Monthly Recurring Charges

 

The monthly recurring charges payable for the ECR
Service shall follow the rates as stated below for the Term of this Service
Schedule, with Customer paying Level 3 *% of the applicable monthly recurring
charge for every *% of 911 Supported PSAPs that have become Covered PSAPs and
remain Covered PSAPs through the respective billing period. The monthly
recurring charges shall be $* per month from the Effective Date until December 31,
2006; $* per month from January 1, 2007 through December 31, 2007 and
$* per month from January 1, 2008 through December 31, 2008. For
example, if in January, 2006, 50% of the 911 Supported PSAPs have become
Covered PSAPs (and assuming no adjustments in accordance with the immediately
following paragraph), Customer would pay Level 3 a monthly recurring charge for
January, 2006 of $*.

 

If the number of Covered End Users exceeds * in any
month before January 1, 2007, the monthly recurring charges stated above
shall be increased as of the first day of the next month on a prospective basis
for the balance of the Term, to $*; if the number of Covered End Users exceeds *
in any month before January 1, 2008, the monthly recurring charge shall
similarly increase, on a prospective basis for the balance of the Term, to $*.
The monthly recurring charge shall also similarly increase, on a prospective
basis for the balance of the Term, by an additional $* per month for each 1
million Covered End Users (or part thereof) above * in any month (so that,
for example, the monthly recurring charge would be $* as of the first day of
the following month if the number of total Covered End Users was 7,500,001, $*
if the number of total Covered End Users was 8,500,001 and so on). For clarity,
in the event that the monthly recurring charges increase as stated above,
Customer shall only be obligated to pay Level 3 for * of such increased monthly
charge for every * of 911 Supported PSAPs that become Covered PSAPs.

 

Level 3 will bill for ECR Services monthly, based on
the total number of Covered End Users as of the end of the 15th day of each in
the immediately prior month. To determine whether any applicable increase or
decrease in the monthly recurring charges (as contemplated above) applies,
Customer or Customer’s VPC shall, on or before the end of every calendar
quarter during the Term, provide Level 3 with a report indicating the total
number of Covered End Users as of the end of the 15th day of each month in the
preceding quarter. In the event that such report shows that the monthly
recurring charges should have

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

8

 

increased in a certain month during the prior quarter,
Level 3 will retroactively bill Customer, and Customer shall pay Level 3 all
undisputed portions of such retroactively billed charges, for the applicable
true-up amount (i.e., the difference between what Customer paid Level 3 and
what Customer should have paid Level 3) taking into account Customer’s
subscriber count as of the 15th day of each month in question. In
the event that such report shows that the monthly recurring charges should have
decreased in a certain month during the prior quarter (and Level 3 does not
dispute the same in good faith), Level 3 shall issue a credit to Customer’s
invoice for the month following the quarterly report for the applicable true-up
amount. Level 3 may independently obtain the foregoing information from
Customer’s VPC(s) (and Customer shall contractually require its VPC(s) to
timely comply with requests by Level 3 to obtain such information from the VPC(s)).
Customer shall maintain true and accurate books and records reflecting the
total number of End Users served by Customer and their Registered Locations at
the end of the 15th day of each month for a period of two (2) years from
the end of each month during the Term, and no more than once in any twelve (12)
month period, Level 3 may, at its sole cost and expense, audit such books and
records to verify the accuracy of Customer’s written reports to Level 3,
subject to the audit procedures described in Section 4(d)D below.
Following any such audit (or other determination by Level 3 of incorrect
reporting by Customer), Level 3 may bill Customer for any billing
shortfalls revealed or credit Customer’s account for any overcharges revealed,
plus applicable interest as stated in the Agreement; provided, however, that
Customer shall have the right to dispute such findings in good faith.

 

With respect to Sections 4(a) and (b) immediately
above, in the event that Level 3 has supplied ESRN’s and ESQK’s to Customer, and
appropriate relationships with 911 Supported PSAPs have been established which
would allow them to become Covered PSAPs if the ESQK’s were provisioned within
the SRDB and as shell records in the ALI database by Customer’s VPC as required
by this Service Schedule, such PSAPs will be considered Covered PSAPs for
billing purposes and Customer shall be advised immediately in writing thereof.
Further, if Level 3 has otherwise fulfilled its respective obligations, and
appropriate relationships with 911 Supported PSAPs have been established which
would allow them to become Covered PSAPs, the PSAP’s require MSAG validated End
User information and Customer’s VPC will not agree to supply such MSAG
validated End User information as required, such PSAPs will be considered
Covered PSAPs for billing purposes and Customer shall be advised immediately in
writing thereof. In connection with the above, Level 3 intends to execute an
agreement with Telecommunication Systems, Inc. (“TCS”) pursuant to which
it intends to use reasonable efforts to supply TCS with its existing MSAG
information (without representation as to its accuracy or current ness); while
such agreement will not contain a timeframe under which such information must
be provided, Level 3 acknowledges that it is in its best interests to provide
the same as soon as reasonably possible.

 

(c)                                  Other Level 3 Services

 

Subject to any confidentiality restrictions, Customer
shall, on or before December 1, 2005 provide to Level 3 the range of
pricing which Customer is able to obtain from other carriers offering services
substantially similar to Eligible Services (as defined below). Provided that
Level 3 agrees to provide Customer on or before January 1, 2006, Eligible
Service pricing which is at or below the pricing Customer can obtain from other
carriers offering substantially similar services, then: (i) starting January 1,
2006 and for 24 months thereafter, Customer agrees to pay Level 3 not less than
$* per month for the purchase of Eligible Services; and (ii) starting in
the 25th month until the end of the Term, Customer agrees to pay Level 3 not
less than $* per month for the purchase of Eligible Services. Both (i) and
(ii) above are the “Monthly Other Service Commitment.” “Eligible Services”
are limited to (3)Voice Termination Service, Local Inbound Service and/or (3) Crossroads
Service, or the functional equivalent of such services. The total of the
Monthly Other Service Commitment multiplied by the number of months until the
end of the Term is the “Total Other Service Commitment”. To the extent that
Customer pays Level 3 more than the Monthly Service Commitment in any month,
such additional amount will count toward the Total Other Service Commitment.
Further, if Customer pays Level 3 for Eligible Services delivered to Customer
any time from September 1, 2005 through December 31, 2005, such
purchases shall also reduce the Total Other Services Commitment. Customer’s
Monthly Service Commitments will be deemed satisfied to the extent that
Customer pays Level 3 the Total Other Service Commitment. Payments made by
Customer for taxes or regulatory fees ancillary to the delivery of Eligible
Services are not included when determining whether the Monthly Other Service
Commitment has been satisfied. In the event that Level 3 refuses, or is

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

9

 

otherwise unable or unwilling, to accept Customer
Orders for existing or new/proposed Eligible Services where Level 3 has agreed
to provide comparable or favorable pricing to the pricing Customer is able to
obtain from other carriers offering substantially similar services, then the
charges Customer would have paid Level 3 for such services over the term of the
proposed Customer Order will be deducted from the Total Other Service
Commitment.

 

(d)                                 “Look-In” Review

 

*

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

10

 

 

5.                                      CONFIDENTIALITY.

 

The parties agree that
all Confidential Information, as defined in the Non-Disclosure Agreement
between the parties dated February 25, 2004 (the “NDA”) which is obtained
by either party In the performance of this Service Schedule, and specifically
including without limitation, Level 3’s ESRN’s, ESQK’s (whether Level 3 or
Customer provided) and any such information obtained by Level 3 concerning
Customer’s End Users, shall be treated as confidential in accordance with the
terms of the NDA, and that the terms of the NDA shall apply for the Term hereof
regardless of any earlier expiration or termination of the NDA.

 

6.                                      REPRESENTATIONS
AND WARRANTIES.   Level 3
represents and warrants to Customer that, as of the Effective Date, 911
Supported PSAPs cover 66% of US Households (and, subject to the obligations of
the parties stated in this Service Schedule, intends to cause such 911
Supported PSAPs to become Covered PSAPs as promptly as possible following the
Effective Date of this Service Schedule). Thereafter (subject to
Section 3(A) above) Level 3 intends to continue to expand the
geographic scope of the ECR Services. Level 3 further represents and warrants
that it has and will have the legal right and authority to provide the ECR
Services described herein in the areas served by the Covered PSAPs. Each party
represents that it has the legal right and authority to enter into this
Services Schedule.

 

7.                                      INDEMNIFICATION.

 

Third Party Claims.
Each Party (the “Indemnifying Party”) shall defend and indemnify the other
party, and its employees, officers, directors and affiliates (the “Indemnified
Party”) and hold such Indemnified Party harmless against any claim, loss,
damage, liability or expense (including reasonable attorneys fees) by a third
party (hereafter a “Third Party Claim”) arising out of the negligence, willful
misconduct, or material breach of this Service Schedule by the
Indemnifying Party where the Third Party Claim is not brought by an End User
and is not a claim for personal injury, property damage, death (or similar tort
claim) arising from the failure of the Customer provided VoIP application
incorporating the ECR Service (such claims collectively referred to as “End
User Related Claims”). In addition, subject to the limitations stated below,
the Indemnifying Party shall defend and indemnify the Indemnified Party and
hold such Indemnified Party harmless against any Third Party Claim arising out
of the gross negligence, recklessness, willful misconduct, or material breach
of this Service Schedule by the Indemnifying Party

 

 

11

 

where the Third Party
Claim is an End User Related Claim; provided that where Level 3 is the
Indemnifying Party, Customer’s (or its Affiliate’s) agreement with such End
User contains provisions at least as protective to Customer and Level 3 as
those contained in Exhibit “C” hereto, which Customer shall use
commercially reasonable efforts to implement as soon as is reasonably
practicable following the Effective Date (and shall maintain such terms and
conditions thereafter during the Term, as they may be updated from time to
time by Customer). The Indemnifying Party shall include its agents, employees,
contractors, or others retained by the Indemnifying Party; provided, however,
that (i) with respect to employees or agents of the Indemnifying Party,
the act(s) to be indemnified (the “Fault”) occurs while performing within the
scope of their employment, (ii) with respect to subcontractors of the
Indemnifying Party, such Fault occurs in the course of performing duties of the
subcontractor under its subcontract with the Indemnifying Party, and (iii) with
respect to the Fault of employees or agents of such subcontractor, such Fault
occurs while performing within the scope of their employment by the
subcontractor with respect to such duties of the subcontractor under the
subcontract.

 

Notwithstanding the
foregoing, with respect to End User Related Claims, if the Indemnifying Party
would be immune or otherwise protected from liability under a Third Party Claim
if the claim being asserted were brought by an End User (or other claimant)
directly against the Indemnifying Party under applicable law or regulation by
reason of such Indemnifying Party’s status as a carrier or provider of 911 or
E911 services, then the Indemnifying Party’s indemnification obligations shall
be limited so as to be consistent with the standards set forth under such
applicable law or regulation. For example, if under applicable law Level 3
would be shielded from claims brought against it directly by an End User unless
it engaged in negligent or more egregious conduct, then Level 3 would only be
obligated to indemnify Customer for such claim under this Service Schedule if
the Third Party Claim resulted from Level 3’s negligent or more egregious
conduct; and if under applicable law Customer would be shielded from claims
brought against it directly by an End User unless it engaged in negligent or
more egregious conduct, then Customer would only be obligated to indemnify
Level 3 for such claim under this Service Schedule if the Third Party
Claim resulted from Customer’s negligent or more egregious conduct.

 

The foregoing
notwithstanding, neither party shall be obligated to defend, indemnify or hold
the other party harmless under the above indemnities for a Third Party Claim
where both parties would be obligated to indemnify the other under the
indemnity obligations stated above.

 

Nothing in this Section 10
shall be construed as a waiver or limitation by either Party of any
indemnification or liability protections which may be, or which may become,
available under federal or state law or regulation to limit the liability of
entities providing 911 or E911 services, all such rights expressly reserved.

 

IP Indemnity.   If the ECR Service as provided by Level 3
becomes, or if Level 3 reasonably believes that the ECR Service may become:
(i) the subject of a suit, proceeding or other claim by a third party that
the ECR Services as provided by Level 3 infringe the U.S. intellectual property
rights of a third party; or (ii) Customer’s right to use the ECR Services may be
enjoined as the result of a claim by a third party that the ECR Services as
provided by Level 3 infringe the U.S. intellectual property rights of such
third party, Level 3 may, at its option and as is commercially reasonable, at
its own expense and option:

 

(A)                              procure
the right to continue to provide the ECR Service pursuant to this Agreement to
Customer on a non-infringing basis; or

 

(B)                                replace
the ECR Services with a different service that has substantially similar
functionality as the ECR Services and will continue to allow Customer to remain
compliant with applicable law; or

 

(C)                                modify
the ECR Services with substantially similar functionality so they become
non-infringing

 

In addition to the
foregoing, Level 3 will indemnify and defend Customer, its employees,
directors, and officers, with respect to a suit, proceeding or other claim
arising from or relating to a third party claim (other than a third party claim
brought by a Customer affiliate) of U.S. intellectual property infringement
arising from Level 3’s provision of the ECR Services; except that Level 3 shall
not have any indemnification obligation under this Section to the extent
such claim arises out of or is related to (i) modification of the ECR
Service by Customer, its employees, agents, representatives or contractors, (ii) the
combination by Customer of the ECR Service with any Customer Provided Service
(as defined below), or (iii) Customer’s use of the ECR Service for a
purpose other than as

 

12

 

intended. The obligations
set forth in this subsection constitutes Level 3’s total responsibility to
Customer with respect to any claim for patent, copyright, trademark, service
mark, trade secret or other intellectual property infringement.

 

Customer shall indemnify
and defend Level 3, its directors, officers, and employees harmless from any
loss, damage, expense or liability resulting from or related to any
non-Affiliate third party claim that any services provided or delivered by
Customer which incorporates the ECR Service (“Customer Provided Service”)
infringes upon any U.S. patent, copyright, trademark, service mark, trade
secret or other intellectual property or proprietary right of such third party
to the extent such claim arises out of or is related to (i) modification
of the ECR Service by Customer, its employees, agents, representatives or
contractors, (ii) the combination by Customer of the ECR Service with an
infringing Customer Provided Service, or (iii) Customer’s use of the ECR
Service for a purpose other than as intended. The obligations set forth in this
subsection constitute Customer’s total responsibility to Level 3 with
respect to any claim for patent, copyright, trademark, service mark, trade
secret or other intellectual property infringement.

 

8.                                      TRANSITION
ASSISTANCE.   Notwithstanding
anything to the contrary, upon expiration of this Service Schedule or
termination of the same by Customer as the result of an uncured, material
default by Level 3, Customer may cancel any or all ECR Services pursuant
to this Service Schedule without any liability upon notice to Level 3.
Upon expiration or termination of this Service Schedule other than by
Level 3 as the result of Customers uncured, material default, Level 3 shall
(i) provide Customer reasonable assistance and consultation to ensure a
smooth and timely transition of the ECR Services then-expiring or being
terminated or cancelled to Customer or its designee, and (ii) continue to
provide the services then expiring, terminating or being cancelled (at prices
then in effect as of the date of such expiration, termination or cancellation,
as such prices may be reduced pursuant to this Service Schedule) and
otherwise perform all of its obligations hereunder until such time as
Customer has established an alternative arrangement for such services, and has
arranged for the seamless transition of such services to the alternative
provider. Customer shall continue to pay for the services then expiring,
terminating or being cancelled at the higher of (i) the monthly recurring
price that is in effect for the month of such expiration, termination or
cancellation, or (ii) the monthly recurring charges dictated by the number
of Covered End Users. Customer shall otherwise perform all of its
obligations hereunder, until ECR Service is provided to Customer no longer.

 

[Signature page follows]

 

13

 

 

	
  LEVEL 3 COMMUNICATIONS, LLC (“Level
  3”)

  	
  VONAGE NETWORK INC.
  (“Customer”)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ Myrle McNeal

  	
   

  	
  By

  	
  /s/ Michael Tribolet

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
  Myrle McNeal

  	
   

  	
  Name

  	
  8/31/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   SVP – Local
  Voice Services

  	
   

  	
  Title

  	
  EVP OPS

  	
   

  

 

 

14

 

 

Exhibit “A”

 

Service Levels

 

Level 3 shall, at all times during the Term, use
commercially reasonable efforts to maintain Service Levels for ECR Service
Availability (as defined below) at 99% or higher, as set forth under current
NENA standards as of the Effective Date. Availability of ECR Service shall mean
the ability of the ECR Service to accept End User 911 Calls from Customer
at the Customer IP Gateway and route them to the appropriate 911 Selective
Router, subject to such calls being transmitted to Level 3 by Customer in
accordance with the Service Schedule. Availability (and Unavailability) will be
calculated on a monthly basis per Covered PSAP (i.e. if calls cannot be
completed by Level 3 to a specific 911 Selective Router, all Covered PSAPs
affected by such unavailability will be considered “Unavailable” during the
affected time period).

 

*

 

The Service Levels stated above do not apply during
periods of Excused Outages, for multiple single user events or for
multiple 911 Calls reporting the same 911 event.

 

Table 1 – Classification of Outages

 

	
  P1: High level of impact on service delivery,
  causing cumulative service Unavailability (as defined above) of thirty (30)
  minutes or greater in a given month.

  	
   

  	
  P2: Significant level of impact on service delivery,
  causing cumulative service Unavailability (as defined above) of less than
  thirty (30) minutes, but greater than five (5) minutes in a given month.
  Typically, degradation is of a short duration, but demonstrates a trend
  toward a P1 outage classification.

  	
   

  	
  P3: Low level of impact on service delivery, but
  Level 3 would not believe it likely to affect call delivery to 911 Selective
  Routers. P3 service degradation is not apparent to external stakeholders.

  

 

Table 2:  Target Incident
Resolution Times

 

	
  P1

  	
   

  	
  P2

  	
   

  	
  P3

  
	
  Thirty (30) minutes for Level 3 On-Net; two (2) hours
  for Off- Net circuits or components.

  	
   

  	
  Two (2) hours for Level 3 On-Net and Off-Net
  circuits or components.

  	
   

  	
  No more than one (1) business day for both
  Level 3 On-Net and Off-Net circuits or components.

  

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

1

 

•                  During a P1 or P2 outage, Level 3
will notify Customer and keep Customer regularly informed of outage details and
steps towards resolution. A trouble ticket relating to a P1 or P2 outage will
be closed when acknowledged as being resolved by both parties in their
reasonable judgment. P1 and P2 outage notifications will describe the affected
ESRN’s and/or Covered PSAP’s, and Customer will not route 911 Calls using such
ESRN’s or to such Covered PSAPs during the period of the P1 or P2 outage.

 

•                  The categorization of an event as P1,
P2 or P3 shall be made by Level 3 based upon the definitions in Table 1, and
shall be communicated to Customer as early as possible, based on the best
information available at the time. If Customer disagrees with the
categorization, Level 3 will in good faith consider requests by Customer to
upgrade the service impairment level where appropriate, and revise its target
resolution times, reports, notifications and escalation procedures accordingly
if an upgrade is mutually agreeable.

 

•                  For purposes of monthly fee
adjustments for service outages, if Level 3 and Customer do not agree on the
service impairment level of any incident, the disagreement shall be resolved
pursuant to the Dispute Resolution provisions under the Agreement.

 

Adjustments for Service Levels

 

Availability. Customer will
be entitled to a credit equal to the portion of the monthly recurring fee
attributable to affected Covered PSAP’s during a month in which a P1 outage
occurs as stated in the chart below, depending on the duration of the P1 outage
(without regard to the length of the trouble ticket respecting the P1 outage,
be it shorter or longer than the outage itself):

 

	
  Cumulative P1 Outage Length per 

  month per affected Covered PSAP 

  (in hrs:mins:secs)

  	
   

  	
  Service Level Credit 

  Towards Monthly Recurring Charges

  	
   

  
	
  *

  	
   

  	
  No credit

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  

 

 

*

 

	
  Monthly Call Success Rate

  	
   

  	
  Service Level Credit

  	
   

  
	
  *

  	
   

  	
  No Credit

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  

 

Issuance. Credits as stated
above will be issued in accordance with Article 6 of the Agreement.

 

Escalation and Notification Procedures.

 

The Level 3 NOC follows established procedures to
resolve impairments in the ECR Service. The NOC’s responsibilities include
creating and updating the trouble ticket, managing escalation, and keeping all
stakeholders informed of progress. The Level 3 NOC will be staffed with
appropriate qualified technicians and management personnel. The parties agree
to discuss implementing, and the terms and conditions applicable to
implementing, an API interface for Customer’s use in opening and monitoring
trouble tickets.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

2

 

Level 3 will notify the Customer point of contact
(based on the contact information provided by Customer) of a P1 or 2 service outages
(as defined above); the requirements for how and when notification must occur
depends on the severity of the outage. Notifications will include the
applicable trouble ticket number, the ESRN’s or Covered PSAP’s affected by the
outage and whether third parties (such as ILEC’s) are involved. Upon initial
notification of a P1 Event, Level 3 will provide an estimated time to respond
to the event. During subsequent notifications of a P1 Event, Level 3 shall
provide the status of any third party trouble tickets.

 

Table
shows the notification requirements.

 

Table 3:  Incident Notification
Timeframes

 

	
  P1 or P2

  	
   

  	
  P3

  
	
  Notification occurs as soon as possible but no
  longer than 30 minutes after incident identification. Subsequent updates
  occur every hour.

  	
   

  	
  No routine notification. Weekly reports available
  upon request.

  

 

The following table lists contact information for the
Level 3 Operations team.

 

Table 4:  Escalation Contact
Information

 

The chart immediately below is the Customer NOC to
Level 3 NOC escalation contact list, which shall be used only where Level 3 has
notified Customer P1 outage respecting the ECR Service.

 

	
   

  	
   

  	
   

  	
   

  	
  Phone

  	
   

  	
  Additional #

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
   

  

 

For all other escalations respecting the ECR Service,
including where Customer believes a P1 outage has occurred (but Level 3 has not
notified Customer of the same) or where Customer seeks to open a trouble ticket
with Level 3, the following escalation path shall apply:

 

	
  Initial Call

  	
   

  	
  877 4 Level3
  / 877.453.8354 

  Option #4

  
	
  2nd Level 1 hour

  	
   

  	
  Chuck Graham
  

  Service Management Ops Manager 

  Atlanta 

  Office: *

  Pager *

  	
   

  	
  Chris Rea 

  Service Management Ops Manager 

  Broomfield Office: *

  Pager *

  

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

3

 

	
  3rd Level 2 Hour

  	
   

  	
  Chris
  Vonderhaar 

  Director - V&SS Customer Operations 

  Broomfield 

  Office: *

  Pager: *

  
	
  4th Level 4 Hour

  	
   

  	
  Chris
  Vonderhaar 

  Director - V&SS Customer Operations 

  Broomfield

  

  Office: *

  Pager: *

  
	
  5th Level 6 hour

  	
   

  	
  Mike Sharpe 

  Vice President - V&SS Customer Operations 

  Switched Services 

  Office: *

  Pager: *

  
	
  6th Level 8 hour

  	
   

  	
  Brent Bourne
  

  Vice President - V&SS Global Operations 

  Office: *

  

 

Reports and Meetings

 

* The objective of operational
review meetings is to inform Customer concerning Level 3’s customer
services organization, Customer support organization as to the progress of open
trouble tickets and/or to discuss all items in order to increase service
quality. The Level 3 Account Director will arrange these meetings on a regular
basis. Both parties have influence on the agenda items, but in general, the
following topics will be discussed:

 

      •                                          Organization
processes and organization changes (both parties);

 

      •                                          Progress
of Customer’s open trouble tickets;

 

      •                                          Customer’s
prioritization as to Top Five open incidents; and

 

      •                                           Customer’s
planned (evening) maintenance/configuration activities which could possibly
affect Level 3 product performance.

 

Level 3 will provide Customer with a detailed
preliminary Root Cause Analysis report about a P1 outage incident within five (5) business
days from the date of the incident. The report will include general
information, the Response Time, the resolution time, a description of the
problem, and the detailed solution to the problem.

 

Product Updates and Upgrades

 

Product Updates and Upgrades include both unscheduled
releases issued to resolve various assistance requests, and scheduled releases
as part of Level 3’s product development roadmap. Level 3 intends to
provide continuing updates and upgrades to the ECR Service and to offer new
features, incorporate new standards, implement bug fixes and improve
efficiency. Level 3 will endeavor to implement product updates and upgrades in
a manner so as to be transparent to Customer with minimal Service impact.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

4

 

Maintenance

 

Level 3 will perform commercially reasonable
routine maintenance designed to keep the ECR Service performing in accordance
with the applicable Service Levels. All Scheduled Maintenance shall be
preformed in accordance with Section 2.7 of the Agreement

 

Level 3 shall use commercially reasonable efforts
under the circumstances to notify Customer prior to commencing emergency
maintenance, and will provide a “post mortem” report to Customer of emergency
maintenance conducted with the same information described above.

 

Level 3 shall notify Customer as soon as possible (in
accordance with the notification guidelines stated above, depending on the
outage type) in the event that there is an unplanned outage on the Level 3
network. Level 3 shall provide Customer with the applicable details regarding
the network outage in order to avoid Customer establishing trouble tickets related
to such network outage, including the nature of the outage, anticipated
restoration time, updates on the restoration time, the closure of the outage
and the reason for the outage.

 

Chronic Outages

 

For purposes of the ECR Service Schedule, a Chronic
Situation shall mean the following:

 

      •                                           * separate occurrences of Unavailability of * consecutive minutes or longer affecting a 911
Selective Router within the first * calendar days
of establishing ECR Service to the first Covered PSAP served by the 911 Selective
Router (the “Initial Period”).

 

      •                                           After the
Initial Period respecting a 911 Selective Router, * separate
occurrences of Unavailability of * consecutive
minutes or longer within * calendar days
to the same 911 Selective Router.

 

      •                                           After the
Initial Period respecting a 911 Selective Router, *
separate occurrences of Unavailability of * consecutive
minutes or longer within any * consecutive
day period to the same 911 Selective Router.

 

Upon the occurrence of any P1 event or Chronic
Situation, the Level 3 NOC will provide a Root Cause Analysis within * business days of said event. In addition, in the event of
a Chronic Situation, Level 3 will also provide a Corrective Action Plan within * business days of said event. The Corrective Action Plan
will consider without limitation the benefits surrounding and/or need to
re-provision facilities to mitigate service level affecting issues. Level 3
shall use commercially reasonable efforts to implement remedial measures
recommended from the Corrective Action Plan as soon as possible, and shall
diligently prosecute such Corrective Action Plan to completion, provided that
such completion time shall not exceed 30 days, unless the Corrective Action
Plan involves third party facilities beyond Level 3’s reasonable control, in
which case the 30 day period shall be reasonably extended as necessary
(provided that Level 3 shall continue to diligently prosecute such Corrective
Action Plan to completion) (the “Corrective Action Period”).

 

Without limiting the foregoing, upon the occurrence of
* separate P1 events affecting a
Covered PSAP within any * consecutive
day period or * separate P1 events affecting a Covered
PSAP in a rolling * month period,
such failures shall be deemed a “Chronic Failure”. Upon the occurrence of the * P1 event where a * would result
in a Chronic Failure or the * P1 event
where a * would result in a Chronic Failure,
Level 3 will provide Customer a Corrective Plan within *
business days following the applicable P1 event. If a Chronic Failure
thereafter occurs, then Customer *.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

5

 

In addition, should *
separate P1 events affect ECR Services to * or more of
all of the Covered PSAP’s under the ECR Service Schedule within any * consecutive day period or if *
separate P1 events affect ECR Services to * or more of all of the Covered PSAPs
under the ECR Service Schedule within a rolling *
month period, then such failure shall be deemed a “Chronic Network Failure”. Upon
the occurrence of the * P1 event
where a * would result in a Chronic Network
Failure or the * P1 event where a * would result in a Chronic Network Failure, Level 3 will
provide Customer a Corrective Plan within * business days
following the applicable P1 event. If a Chronic Network Failure thereafter
occurs, then Customer may, as of the later of i) the P1 event resulting in the
Chronic Network Failure if the Corrective Action Period expired prior to such
events commencement; or ii) the occurrence of another P1 event affecting ECR
Services to * or more of all of the Covered
PSAP’s under the ECR Service Schedule in the *
day period following expiration of the Corrective Network Action Period if the
P1 event resulting in the Chronic Network Failure commenced before the
expiration of the Corrective Action Period: *.

 

Chronic Situations, Chronic Failures and Chronic
Network Outages as defined above will not include periods of Excused Outage.
Further (and for clarity given certain of the terms used above) Chronic
Situations, Chronic Failures and Chronic Network Outages shall only apply to
failures occurring between the Customer IP Gateway and the appropriate 911
Selective Router.

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission.

 

6

 

Exhibit “B”

 

911 Supported PSAPS

 

PSAP Name (s)

 

*

 

* Confidential treatment
has been requested. The redacted material has been separately filed with the
Commission. The redacted material in Exhibit “B” consists of 66 pages.

 

7

 

Exhibit “C”

 

Customer End User Terms

 

C.1  Customer’s agreements with End Users (as
defined in the Service Schedule) shall at all times contain provisions at least
as protective to Customer and Level 3 as the following:  (i) an explanation of the limitations on
the functionality of any 911 Service (as defined in the Service Schedule)
provided by Customer to End Users as set forth in Section C.2 of this Exhibit C;
(ii) a statement that the Customer’s aggregate liability to End Users,
shall be limited to the amount of the Service charges for the affected time
period (i.e. the monthly charges paid for the month in which the claim arose); (iii) a
statement that neither Customer nor its suppliers shall be liable to End Users
for any consequential, indirect, incidental, special or punitive damages in
connection with any errors or interruptions in the delivery of the Customer
provided Service; and (iv) a release and a disclaimer of liability in
favor of Customer and its suppliers relating to claims by End Users arising out
of:  a) the failure of 911 Services to
function properly for the reasons set forth in Section C.2 of this Exhibit C
below; and b) any other claims relating to the absence, failure or outage of
the Customer provided Service, including 911 Service (other than those arising
from gross negligence or willful misconduct).

 

C.2  Customer’s agreements with End Users shall at
all times contain provisions at least as protective to Customer and Level 3 as
the following:  provisions stating, at a
minimum, that any 911 Services provided by Vonage will not function, or will
not function properly:  (i) if an
End User attempts a 911 call from a location different from the End User’s then
current address provided to Vonage by the End User; (ii) during any
disruption of power at the End User location; (iii) during any disruption
of Internet connectivity to the End User location; (iv) during any period
where Vonage has cancelled or suspended delivery of Service to the End User for
any reason (including suspensions or cancellations for failure to pay or other
default); (v) during any period of Service outage or failure beyond Vonage’s
reasonable control (including network or service failures of Vonage’s third
parties suppliers); (vi) if incorrect or invalid End User address
information is provided, or if such information is not updated by the End User
in the event of a change in their location; or (vii) if equipment provided
to the End User fails to function, is not properly configured or is defective.
911 Services will not function properly unless and until correct and valid
address information has been input Into the appropriate database(s), which may occur
shortly after initial Service activation.

 

C.3  Customer’s agreements with End User shall at
all times also contain provisions at least as protective to Customer and Level
3 as the following:

 

a. the End User’s obligation defend, indemnify, and
hold harmless Customer, its officers, directors, employees, affiliates, and
agents and any other service provider who furnishes services to you in
connection the Service (including our suppliers), from any and all claims,
losses, damages, fines, penalties, costs and expenses (including, without
limitation, attorneys fees) by, or on behalf of, you or any third party
relating to the absence, failure or outage of the Service, including 911
dialing, incorrectly routed 911 dating calls, and/or the inability of any user
of the Service to be able to use 911 dialing or access emergency service
personnel.

 

b. a provision encouraging the End User to obtain an
alternate means of accessing traditional 911 Services or terminating the
Service if they are concerned over the limitations of the 911 service.

 

c. a clause providing that the Agreement does not
provide any person or entity not a party to this Agreement (other than Vonage’s
suppliers) with any third party beneficiary rights.

 

d. a clause providing that any dispute or claim
between the End User, any member of the End User’s household or any guest or
employee of the End User and Vonage arising out of or relating to the Service
(including 911 Services) will be resolved by arbitration before a single
arbitrator administered by the American Arbitration Association in accordance
with its Commercial Arbitration Rules. The arbitration will take place in
Somerset, New Jersey. The arbitrator’s decision will follow the plain meaning
of the relevant documents, and will be final and binding. Without limiting the
foregoing, the parties agree that no arbitrator has the authority to:  (i) award relief in excess of what this
Agreement provides; or (ii) award punitive or exemplary damages. Judgment
on the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof. Regardless of any statute or law to the contrary,
any claim or cause of action arising out of or related to the service must be
filed within one (1) year after such claim or cause of action arose or be
forever barred. All claims shall be arbitrated individually. End User’s shall
not bring,

 

8

 

or join any class action of any kind in court or
in arbitration or seek to consolidate or bring previously consolidated claims
in arbitration. This arbitration provision constitutes a waiver of any right to
a jury trial and an agreement to be subject to jurisdiction in, and conduct
arbitral proceedings in, New Jersey.

 

e. a waiver provision providing that no failure of
Vonage to exercise or enforce any right or provision of this Agreement will
constitute a waiver of such right or provision.

 

f. a clause providing that the Agreement, including
any future modifications as may occur within the terms of the Agreement,
constitute the entire agreement between the End User and Vonage and govern the
use of the Service by End User, members of the End User’s household, guests and
employees, and supersedes any prior or contemporaneous agreements .

 

g. a severability clause providing that if any part of
the Agreement is unenforceable, all other parts of this Agreement remain in
effect.

 

h. a clause providing that Vonage may change the
terms and conditions of this Agreement from time to time and that notices will
be considered given and effective on the date posted on www.vonage.com.

 

9

 

Exhibit “D”

 

Test Plan Template

 

TEST PLAN TEMPLATE

 

9-1-1 Test Plan (per Test Number) Template

 

	
  Date:

  	
   

  	
   

  	
  PSAP Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service Area:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switch Trunk Group No.:

  	
   

  	
   

  	
  Trunk Quantity:

  	
   

  	
   

  	
  Two Six Code:

  	
   

  
											

 

Disclaimer:

This test scenario document should be used as a
guideline for testing 9-1-1 service and does not purport to include all tests
that should be performed prior to establishing 9-1-1 service.

 

Testing Exceptions:

If the test result is different than the expected
result, please feel free to call or place a Trouble Ticket with the appropriate
Vonage Trouble Reporting Center.

 

TEST PREPARATION CHECKLIST  

 

	
  STEP

  	
   

  	
  ACTION
  ITEM

  
	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Verify that new 9-1-1 trunks under test have
  completed continuity testing, when necessary, (Owner: Level 3)

  
	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Verify the NXX under test is LERG effective (Owner:
  Level 3)

  
	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Verify that 9-1-1 ALI test record has been submitted
  for one of two test lines to the appropriate ALI Host Provider and has posted
  in the ALI/DBMS. (Owner VPC (TCS))

  
	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Verify that the test record submitted routes to the
  PSAP that should receive 9-1-1 calls in the event of an ALI failure (“No
  Record Found”) condition. PSAP contacts VPC (TCS) to obtain-caller
  information (Owner: VPC (TCS))

  
	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Verify that all line-side ESRN translations are complete
  and will route 9-1-1 calls to the appropriate 9-1-1trunk group. (Owner. Level
  3)

  
	
   

  	
   

  	
   

  
	
  6 

  	
   

  	
  Verify that the appropriate translations are
  completed to either a fast busy or 10-digit PSAP number where required for an
  “all circuits busy” condition*. This would be a one time test that is not
  repeated every time we test an ESRN/ESQK (Owner: Vonage) 

  
	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  [Reserved]

  
	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Coordinate 9-1-1 Call Through testing with PSAP or.
  PSAP Agency. (Owner VPC (TCS)/Level 3)

  

 

* Such conditions occurring at or beyond the 911
Selective Router are beyond the scope of the ECR Services provided by Level 3.

 

10

 

911 CALL THROUGH TEST SCENARIOS

 

	
  Scenario 1

  	
   

  	
  Expected Results

  	
   

  	
  Actual Results

  
	
  Test call placed from valid NPA-NXX- XXXX with
  Registered Location record processed in appropriate Automatic Location
  Identification (ALI) Data Management System; call delivered to Level 3 by
  Vonage to Level 3 in accordance with Section 3.B of the ECR Service
  Schedule.

  	
   

  	
  Call should complete to the Primary PSAP with the
  correct ANI and ALI.

  	
   

  	
  Notes:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Test Number:

  	
   

  	
  PSAP:

  	
   

  	
  Pass

  	
   

  	
  o

  	
   

  	
  Fail

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ANI:

  	
   

  	
  Pass

  	
   

  	
  o

  	
   

  	
  Fail

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALI:

  	
   

  	
  Pass

  	
   

  	
  o

  	
   

  	
  Fail

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tester will request the PSAP Attendant place a
  return call to the number under test.

  	
   

  	
  Call Completes from PSAP to ANI under test.

  	
   

  	
  Pass

  	
   

  	
  o

  	
   

  	
  Fail

  	
   

  	
  o

  

 

11

 

Exhibit “E”

 

Test PSAPs

 

	
  PSAP Name

  	
   

  	
  State

  	
   

  	
  LEC

  
	
  Portland-Bureau of Emergency Communications

  	
   

  	
  OR

  	
   

  	
  Qwest

  
	
  Redwood City Police Department

  	
   

  	
  CA

  	
   

  	
  SBC

  
	
  Tarrant County Sheriff’s Department

  	
   

  	
  TX

  	
   

  	
  SBC - SWBT

  
	
  Miami-Dade Police Department

  	
   

  	
  FL

  	
   

  	
  Bell South

  
	
  Raleigh-Wake County

  	
   

  	
  NC

  	
   

  	
  Bell South

  
	
  Montgomery County Police Communications Center

  	
   

  	
  MD

  	
   

  	
  Verizon

  
	
  Randolph County Emergency Communications 

  To be mutually agreed.

  	
   

  	
  NC

  	
   

  	
  Sprint

  

 

12Exhibit 10.17

TeleCommunication Systems, Inc.

Master Sales Agreement

 

This Agreement is made on
this 8th day of June 2005 (the “Effective Date”) by and between
TeleCommunication Systems, Inc. a Maryland corporation with offices at 275
West Street, Annapolis, Maryland 21401 (“TCS”), and Vonage Network Inc., a
Delaware Corporation, with offices at 2147 Route 7, Edison, New Jersey 08817 (“Customer”).
TCS and Customer shall also be referred to as the “Parties” and each as a “Party”)
to this Agreement.

 

The Parties agree as follows:

 

1.                                      SCOPE
OF AGREEMENT

 

1.1                                 This
Master Sales Agreement is a framework agreement. TCS may sell, and
Customer may purchase, Hardware, Systems, and Services and/or TCS may license
Software to Customer, as specified in one or more Work Orders signed by TCS and
the Customer, referencing this Master Sales Agreement and the General Statement
of Work. Each such Work Order, together with the Master Sales Agreement and the
General Statement of Work, shall constitute an agreement between the Parties
(the “Agreement”).

 

1.2                                 The
General Statement of Work shall constitute and be called Exhibit A to the
Master Sales Agreement and is hereby incorporated and made a part of this
Agreement.

 

1.3                                 In
the event of a conflict between the terms of the Master Sales Agreement or
General Statement of Work and a Work Order, the terms of the Work Order shall
take precedence to the extent that they are not preprinted terms; but the terms
of the Master Sales Agreement or General Statement of Work shall take precedence
over any preprinted terms in a Work Order. In the event of a conflict between
the terms of the Master Sales Agreement and the General Statement of Work, the
General Statement of Work shall take precedence.

 

2.                                      DEFINITIONS

 

The following terms used
in this Agreement shall have the meanings stated in this Section 2:

 

2.1                                 “Affiliate”
of a Party means any entity that, directly or indirectly, controls, is
controlled by or is under common control with, the Party.

 

2.2                                 “Completion
Criteria” means Customer’s acceptance of the Product or Service as demonstrated
by Customer’s signature of the First Office Application (FOA) certificate which
acknowledges the fulfillment by TCS of the obligations described in the
Statement of Work, such as the delivery of a System.

 

2.3                                 “Hardware”
means equipment or machines, such as computers sold and/or maintained by TCS
under this agreement. Hardware may be manufactured by TCS or by third
parties.

 

2.4                                 “Products”
mean Hardware, Software, or Systems sold or licensed by TCS.

 

2.5                                 “Service”
means performance of a task or project, provision of advice, assistance, or use
of a resource (such as access to an information data base) that TCS makes
available. Services include provision of maintenance and support for Products.
“Professional Services” mean engineering, design or consulting services
performed from time to time on a task or project basis by TCS for Customer.

 

TeleCommunication Systems, Inc. and
Vonage Network Inc. Confidential

 

Pages
where confidential treatment has been requested are stamped, "Confidential
treatment has been requested. The redacted material has been separately filed
with the Commission." All redacted material has been marked by an asterisk
(*).

 

1

 

2.6                                 “Software”
means computer programs and data, in machine readable form, and related
materials, including user, technical, and system administrator materials,
listings, and documentation related to such computer programs and data. Unless
otherwise specified in a Statement of Work or other document signed by TCS and
Customer, all Software is only licensed to the Customer and provided only in
object code form. Software may be licensed by TCS or by a third party.

 

2.7                                 “Specifications”
mean the technical and operational specifications that describe the proper
functioning of any Product or Service. For Hardware the Specifications are
provided by the manufacturer. For Services and Systems the Specifications are
provided in the Statement of Work. For TCS Software, the Specifications are as
provided in the License Agreement and any applicable Statement of Work. For
third party Software, the Specifications are as provided in the License
Agreement.

 

2.8                                 “General
Statement of Work” means the document headed with that name specifying the
overall respective responsibilities of TCS and the Customer for VoIP E9-1-1.

 

2.9                                 “System”
means a combination of Hardware and Software integrated to perform specified
functions.

 

2.10                           “Work
Orders” means a document referencing this Master Sales Agreement and the
General Statement of Work and signed by both Customer and TCS specifying the
Products and/or Services to be provided, the respective responsibilities of TCS
and the Customer, the applicable schedule of delivery, the Completion
Criteria, the applicable charges for the Products and/or Services, and any
other terms.

 

3.                                      PRODUCTS
AND SERVICES PROVIDED

 

3.1                                 TCS
shall provide the Products and Services described in each Work Order, including
attachments, for the prices and on the schedules specified therein and in
accordance with the Master Sales Agreement and General Statement of Work and
any exhibits to either of them referenced in the Work Order.

 

3.2                                 TCS
and Customer shall each perform their respective obligations and carry out
the responsibilities as described and according to schedules specified in each
Work Order. To the extent either Party is delayed in performing any of its
obligations under the Agreement due to the other Party’s failure to perform any
of its responsibilities in accordance with the applicable schedules, the first
Party shall be permitted to delay the performance of its obligations and shall
be entitled to compensation from the other Party for any additional actual and
reasonable out-of-pocket costs incurred as a result. In the event of delay by
Customer, TCS will prepare a change order of the costs associated with the
delay. TCS will not continue performance of its obligations until Customer has
approved the change order and amended the Work Order to include such costs. In
the event of a delay by TCS, TCS will compensate Customer for such delay as set
forth in the applicable Work Order or General Statement of Work.

 

4.                                      ACCEPTANCE

 

4.1                                 Products
and Services delivered by TCS shall be considered accepted by the Customer upon
completion of the Completion Criteria, as defined in Article 2.1. If
Customer has not signed the FOA within 30 business days of receipt, Products
and/or Services will be deemed accepted unless Customer has provided TCS
written notice of rejection detailing the reasons why they do not meet the
specifications in the SOW. TCS shall promptly correct any such deficiencies or
obtain the Customer’s written agreement to a plan to correct such deficiencies.
The System shall thereafter be considered accepted upon completion of the
Completion Criteria.

 

2

 

4.2                                 If
Customer believes that TCS has not provided a Professional Service in a
workmanlike manner or according to the Specifications of the Work Order,
Customer shall provide written notice to TCS of any deficiencies within ten (10) business
days of the completion of the provision of the Professional Service. TCS may perform again
or provide an appropriate credit for any Professional Service that was not
delivered in a workmanlike manner or according to its Specifications of the
Work Order.

 

4.3                                 Customer
shall own all title and interest in all Hardware delivered under this
Agreement, unless such Hardware is subject to the terms of a leasing agreement.

 

5.                                      INVOICES
AND PAYMENT

 

5.1                                 Customer
shall pay the amounts indicated in the Work Order for the Products and Services
delivered by TCS. TCS may invoice the Customer for the amounts specified
in the Work Order for Products and Services only upon their acceptance. Customer
shall pay TCS the full amount of such invoices (other than amounts subject to a
good faith dispute) in U.S. Dollars within 30 days of the date of Customer’s
receipt of the invoice (“Due Date”). Except for any amounts reasonably disputed
by Customer in writing, TCS may assess and Customer shall be liable to pay
a late charge at a rate of one-half percent (0.5%) per month or the highest
rate permitted by law, whichever is less, on all unpaid amounts (other than
disputed amounts) from the due date until paid in full.

 

5.2                                 Failure
to pay any fees or other charges or amounts (including taxes) due to TCS on or
before the Due Date shall be a breach of this Agreement (“Failure
to Pay”). Notwithstanding anything else contained in this
Agreement, in the event of a Failure to Pay that is not cured within fifteen
(15) business days after notice thereof, TCS may suspend delivery of
Products and/or Services to Customer and/or upon five (5) business days
written notice terminate this Agreement for default, unless said Failure to Pay
is based on Customer’s good faith dispute of the amounts invoiced as presented
in writing to TCS on or before the Due Date or the expiration of the fifteen
(15) day notice period referenced above. Any suspension may be continued
until the Failure to Pay has been cured but will cease upon cure. TCS shall be
entitled to recover reasonable costs incurred prior to termination and attorney’s
fees and costs in the event that any legal proceeding is brought by TCS in
collecting all unpaid and undisputed amounts hereunder.

 

5.3                                 If
Customer disputes any part of an invoice, then in order to withhold such
amount from its payment, Customer must notify TCS in writing as to the specific
amounts contested and the reasons for such dispute on or before the Due Date of
the invoice, provided that this provision does not waive Customer’s right to
subsequently place in dispute and seek a refund of amounts already paid.

 

5.4                                 All
prices and charges for Products and Services provided hereunder are exclusive
of any taxes applicable to the transaction, such as value added taxes, sales or
use taxes, duties, or other taxes or levies imposed by any government, public
authority, or government agency on Customer’s purchase of Products or Services
hereunder, all of which are the responsibility of Customer to pay, provided,
for avoidance of doubt, that Customer shall not be responsible for payment of
any taxes based on the income, property or employment of TCS.

 

5.5                                 TCS
reserves the right to modify its price for annual maintenance and support of
any Products for any maintenance renewal period subsequent to the period or
periods specified in the Work Order for the reasons set forth below by
providing Customer notice of any price modification at least sixty (60) days
prior to the commencement of the next applicable renewal period for maintenance
services. Price modifications may be based on a change in the number of
unique records being managed and any additional features being used by the
Customer (unique records managed include all records active for any period of
time during each month, regardless of service change or termination) or on
Customer-initiated changes to the configuration of the Customer’s Software.

 

3

 

6.                                      TERM
AND TERMINATION OF AGREEMENT

 

6.1                                 Subject
to paragraph 6.3 below, this Agreement shall be effective upon signature by
both Parties as of the date noted above for a period of three (3) years (“Initial
Term”) and shall be automatically extended for additional one (1) year
periods, unless either Party notifies the other to the contrary no less than
sixty (60) days prior to the expiration of the Initial Term or any extension
thereof. The expiration of this Agreement shall not terminate any Work Order
referring to the terms of the Master Sales Agreement, and the terms of the
Master Sales Agreement shall remain effective as to any such Work Order, until
that Work Order has been completed or has terminated.

 

6.2                                 Either
Party may terminate this Agreement and any Work Order for cause upon written
notice to the other Party in the event that the other Party fails to perform any
of its material covenants or obligations contained in this Agreement or such
Work Order, unless such default is cured or a mutually agreed plan to cure is
accepted within thirty (30) days of delivery of written notice of such default
to the defaulting Party. If Customer is in material default of this Agreement
and such default continues for a period of thirty (30) days after TCS’ written
notice thereof to Customer, then TCS shall also have an independent and
alternative right to suspend delivery of Products or Services in then effective
Statements of Work upon written notice to Customer, provided that TCS will end
such suspension upon cure of the default by Customer. Customer may terminate
this Agreement and any Work Order upon written notice to TCS if TCS assigns
this Agreement or all or a substantial part of the infrastructure used to
provide Services hereunder, directly or through the sale or merger of TCS or
any of its assets, to an entity that has a substantial business in VOIP
services.

 

6.3                                 The
Parties agree that in the event that material unforeseen changes in applicable
legal or regulatory requirements for providing VoIP E9-1-1 services make the
provision of Services under this agreement commercially impracticable or
materially impact the cost of acquiring or delivering such services for either
Party, then the Parties will negotiate in good faith to adopt changes to or
revisions of the Services contemplated by this Agreement so that such legal or
regulatory changes are not unreasonably burdensome on either Party. If after
good faith negotiations the Parties do not agree to amend this Agreement or the
Services to accommodate such legal or regulatory changes, then either Party may terminate
this Agreement and any Work Order upon ninety (90) days written notice to the
other Party.

 

Customer’s license to any Software shall become
effective upon acceptance by Customer of the Software or a System that includes
the Software. If this Agreement expires or terminates (other than for reason of
Customer’s default), Customer’s license to Software shall continue in
accordance with the terms of the applicable TCS Software License Agreement or
third party license. If this Agreement and the Customer’s license to use the
Software is terminated by TCS pursuant to Section 5.2 for a Failure to Pay
or Section 6.2 for a material default by Customer, Customer shall be
entitled to retain possession of and to continue to use the Software for a period
not to exceed 45 days in order for Customer to make a transition to alternate
software or facilities.

 

This Agreement and any Work Order referencing this
Agreement may also be terminated by either Party, if the other Party has
become insolvent, has filed for bankruptcy, or has been declared insolvent or
bankrupt.

 

Any termination pursuant to Section 6.2, 6.3 or
6.5 shall be without liability on the terminating Party, provided that such
termination will not relieve the terminating Party for amounts owed with regard
to Services rendered prior to the effective date of such termination.

 

The following terms of this Agreement shall survive
expiration or termination of this Agreement:  Articles 5, 6, 8, 9, 12, 14, and 16.

 

4

 

7.                                      WARRANTY
AND MAINTENANCE OF PRODUCTS

 

TCS
Products delivered to Customer under this Agreement are warranted to conform to
their Specifications for a period of one year after acceptance by Customer (or
for such other period as may be set forth in the Work Order). During the
warranty period, TCS will correct defects in Software and repair or replace
Hardware in accordance with third party manufacturer’s policies and in the
event TCS fails to do so within thirty (30) days of notice of such defect, will
refund amounts paid by Customer for the defective Hardware or Software prorated
for the remaining term of the warranty period. Following such warranty period,
TCS shall provide Customer with maintenance and support services for Software
and Hardware in accordance with the terms of the TCS Product Maintenance
Support Policy, Exhibit B (to be attached only if Software license and
Hardware are to be purchased under a Work Order), for the periods Customer
requests and pays for such maintenance and subject to any additional terms
specified in the applicable Work Order. For all third party Hardware and
Software delivered by and purchased through TCS, Customer will be provided
warranty and maintenance service in accordance with the third party manufacturer’s
warranty and maintenance policies, provided Customer pays any applicable
maintenance support charges which are quoted to and approved by Customer in
advance of the rendering of such warranty and maintenance service.

 

TCS
MAKES NO OTHER WARRANTIES OF ANY KIND WITH RESPECT TO THE PRODUCTS AND SERVICES
PROVIDED UNDER THIS AGREEMENT. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT,
TCS MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

8.                                      INTELLECTUAL
PROPERTY NON-INFRINGEMENT AND INDEMNIFICATION

 

8.1                                 TCS
represents and warrants as of the effective date of this Agreement and
thereafter throughout the term of this Agreement that TCS owns or has the legal
right to license the Software licensed under this Agreement and that the
Software does not infringe any patent, copyright, or trademark of any third
party enforceable in the United States. TCS further represents and warrants
that no Hardware or Software delivered to Customer and no System contains any (i) back
door, time bomb, or other software routine designed to disable a computer
program automatically with the passage of time or under the positive control of
TCS; or (ii) any virus, Trojan horse, worm, or other software routine or
hardware component designed to permit unauthorized access to, disable, erase,
modify or otherwise harm any software, hardware or data; provided that with
regard to third party Hardware or Software, the representation and warranty in
this sentence is made only to TCS’ best knowledge and belief.

 

8.2                                 If
a third party claims that any of the Software, Hardware, Systems or Service
infringes its patent, copyright, or trademark enforceable in the United States,
TCS will indemnify and defend Customer against that claim at TCS’ expense,
provided that Customer promptly notifies TCS in writing of the claim (provided
that failure or delay in making such notification shall excuse TCS from its
indemnification obligation hereunder solely to the extent that TCS is actually
prejudiced thereby), allows TCS to control the defense of such claim, and
cooperates with TCS in its defense. If such a claim is made, Customer agrees to
permit TCS to, and TCS will at its own expense, either:  1) procure necessary rights to enable Customer
to continue to use the Software, Hardware, Systems or Service, or 2) modify or
replace such Software, Hardware, Systems or Service to eliminate the
infringement; provided that the choice between (1) and (2) shall be
at TCS’ discretion. However, TCS has no obligation of indemnification under
this Section 8.2 for any claim of infringement caused by Customer’s
modification of the Software or Service or their combination, operation, or use
with any product, data, or apparatus not specified or provided by TCS, provided
that such claim would be avoided absent such Customer modification or
combination, operation, or use with products, data, or apparatus not specified
or provided by TCS. THIS SECTION 8.2 STATES TCS’ ENTIRE OBLIGATION WITH
RESPECT TO ANY CLAIM OF INTELLECTUAL PROPERTY INFRINGEMENT.

 

5

 

8.3                                 The
parties intend that TCS, in its performance of the Services, enjoy the same
immunity from or limitation of liability as is available to Customer and its
agents under applicable law in connection with the provision of the standard or
enhanced 9-1-1 service and in any event, that TCS at least be indemnified
against liability arising out of or relating to TCS’ performance of the
Services except to the extent such liability results from the negligent,
reckless, willful or wanton misconduct of TCS or its employees, agents,
representatives or TCS’ breach of this Agreement (including without limitation
any warranties of TCS set forth herein). Accordingly, Customer shall defend,
indemnify and hold harmless TCS and its directors, officers employees,
representatives, agents and third party vendors from and against any and all
claims, suits, demands, actions, losses, awards, liabilities, damages, costs
and expenses (including, without limitation, reasonable attorney’s fees)
asserted by third parties and arising out of or in connection with (a) any
act or omission of Customer or its employees, agents, representatives in the
operation of its VoIP 9-1-1 service or other services; or (b) any act or
omission of TCS that is reasonably undertaken for purposes of the provision and
performance of the Services or its other obligations under this Agreement;
provided that the foregoing indemnity will not require Customer to indemnify TCS
against liability for damages to the extent such damages result from the
negligence or reckless, willful or wanton misconduct of TCS or TCS’ breach of
this Agreement (including without limitation any warranties set forth herein). To
the fullest extent permitted by applicable law, the foregoing indemnity will
apply regardless of any strict liability or product liability of TCS not
amounting to negligent, reckless, willful or wanton misconduct of TCS or TCS’
breach of this Agreement (including without limitation any warranties of TCS
set forth herein).

 

8.4                                 TCS
shall defend, indemnify and hold harmless Customer and its directors, officers
employees, representatives, agents and third party vendors from and against,
any and all claims, suits, demands, actions, losses, awards, liabilities,
damages, costs and expenses (including, without limitation, reasonable attorney’s
fees) asserted by third parties and arising out of or in connection with (a) any
negligent, reckless, willful or wanton act or omission of, or breach of this
Agreement by, TCS or its employees, agents, representatives; or (b) any
act or omission of TCS that is not reasonably undertaken for purposes of the
provision and performance of the Services or its other obligations under this
Agreement; provided that the foregoing indemnity will not require TCS to
indemnify Customer against liability for damages to the extent such damages
result from the negligence, reckless, willful or wanton misconduct of Customer
or Customer’s breach of this Agreement (including, without limitation, any
warranties of Customer set forth herein).

 

8.5                                 To
the extent not addressed in Section 8.3 or 8.4, each party (for purposes
of this Indemnification Section, the “Indemnifying Party”) will indemnify,
defend and hold harmless the other (including its officers, directors,
employees and agents), its Affiliates and customers, against any loss, cost,
expense or liability (including reasonable attorneys’ fees and costs) arising
from the negligence or willful misconduct of the Indemnifying Party (including
its Affiliates, agents, employees and others under its direction or control).

 

8.6                                 In
any case in which one Party is required to indemnify the other pursuant to this
section 8, the party to be indemnified pursuant to this Section 8 will
notify the Indemnifying Party within a reasonable time after receiving notice
of a claim (provided that failure or delay in making such notification shall
excuse the Indemnifying Party from its indemnification obligation hereunder
solely to the extent that the Indemnifying Party is actually prejudiced
thereby). Provided that the Indemnifying Party promptly and reasonably
investigates and defends any such claim, the Indemnifying Party will have
control over the defense and settlement thereof. The party to be indemnified
will furnish, at the Indemnifying Party’s reasonable request and expense,
information and assistance necessary for such defense.

 

9.                                      LIMITATION
OF LIABILITY

 

NEITHER
PARTY WILL BE LIABLE TO THE OTHER (OR ITS DIRECTORS, OFFICERS, EMPLOYEES,
REPRESENTATIVES, AGENTS, SUBCONTRACTORS, CUSTOMERS OR ANY OTHER THIRD PARTY)
FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL 

 

6

 

DAMAGES
ARISING OUT OF THE SERVICES OR SUCH PARTY’S PERFORMANCE OF OR FAILURE TO PERFORM ITS
OBLIGATIONS UNDER THIS AGREEMENT OR (EXCEPT AS PROVIDED IN SECTION 8) FOR
THE CLAIMS OF THIRD PARTIES FOR LOSSES OR DAMAGES. EXCEPT FOR AMOUNTS PAYABLE
BY CUSTOMER TO TCS UNDER SECTION 5, AND THE INDEMNIFICATION OBLIGATIONS
SET FORTH IN SECTION 8, EACH PARTY’S LIABILITY (WHETHER IN TORT, CONTRACT
OR OTHERWISE AND NOTWITHSTANDING ANY FAULT, NEGLIGENCE (WHETHER ACTIVE, PASSIVE
OR IMPUTED), PRODUCT LIABILITY OR STRICT LIABILITY OF SUCH PARTY) UNDER THIS
AGREEMENT OR WITH REGARD TO THE SERVICES OR OTHER ITEMS FURNISHED UNDER THIS
AGREEMENT WILL NOT EXCEED THE TOTAL COMPENSATION ACTUALLY PAID TO TCS FOR THE
PREVIOUS TWELVE MONTHS UNDER SECTION 5 OR $100,000, WHICHEVER IS GREATER.

 

10.                               ASSIGNMENT

 

This Agreement may not be assigned or transferred
by either Party without the prior written consent of the other Party, except
that upon notice to the other Party:  (1) either
Party may assign this Agreement without consent to any Affiliate of it,
and (2) TCS may assign its rights to payments under this Agreement to
a financial institution. In addition, Customer’s rights under this Agreement
and in the Software may be transferred, leased, assigned, or sublicensed
without the consent of TCS to a successor in interest to Customer’s entire
business or substantially all of its assets which assumes the obligations of
this Agreement.

 

11.                               FORCE
MAJEURE

 

Neither Party shall be liable under this Agreement for
delays, failures to perform, damages, losses or destruction, or malfunction of
any equipment or software, or any consequence thereof, caused by fire,
earthquake, flood, water, the elements, unavailability of transportation, acts
of terrorism or acts or omissions of third parties other than subcontractors of
a Party, or any other cause beyond the reasonable control of a Party and not
caused by its negligence (“Force Majeure”). The Party whose performance is
affected by such Force Majeure shall notify the other Party of the existence of
such Force Majeure and shall use its best efforts to resume performance as soon
as practicable. Customer shall not be obligated to pay for any Service which
TCS is unable to perform because of Force Majeure.

 

12.                               PUBLICITY
AND CONFIDENTIALITY

 

12.1                           Without
the written consent of the other or unless required by law or regulatory
authority, neither Party shall disclose the terms of this Agreement or any
related facts to any third party except such Party’s lawyers, accountants or
auditors which are obligated to keep such information in confidence. No press
releases or other public announcements of or relating to this Agreement shall
be made by either Party without the prior written consent of the other Party. The
Parties agree to work in good faith to issue a mutually agreeable joint press
release designed to coincide with general availability of the VoIP E9-1-1
services, concerning this Agreement and the work to be performed. Each Party may use
the name of the other Party (without other information) in its supplier or
customer lists, as applicable.

 

12.2                           For a
period of three (3) years from the date of receipt, each party shall
maintain the confidentiality of and not disclose to third parties all
information or data of any nature provided to it by the other party hereto
provided such information (i) contains a conspicuous marking identifying
it as confidential or proprietary, (ii) in the case of confidential
information disclosed orally, is identified as confidential at the time of
disclosure and a written summary provided to the receiving Party within fifteen
(15) days of disclosure or (iii) whether or not so marked or identified if
such information is related to Customer’s customer lists, financial or
budgetary statements or projections, or technical, operational or business
plans or strategies (“Confidential Information”). Each Party shall use the same
efforts to protect from disclosure Confidential Information it receives
hereunder as such Party accords to similar confidential information of its own.

 

7

 

12.3                           This
Agreement imposes no obligation on the Recipient with respect to Confidential
Information received from the Provider which:

 

(a)                                  was
known to the receiving Party without any limitation on use or disclosure prior
to the delivery of the Information by Provider,

 

(b)                                 is
independently developed by the receiving Party,

 

(c)                                  is
rightfully obtained by the receiving Party from a third party under no
obligation of confidentiality,

 

(d)                                 is
made available to third parties by the disclosing Party without any limitation
on use or disclosure, or

 

(e)                                  is,
or becomes, publicly available.

 

This Agreement shall not prevent any disclosure of
Confidential Information to a court or government agency pursuant to a lawful
order, provided that prior to making such disclosure, the receiving Party shall
use reasonable efforts to notify the disclosing party of this required
disclosure and shall seek or permit the disclosing Party to seek available
protections against further disclosure by such court or agency.

 

12.4                           The
Parties acknowledge that a breach of any of the promises or covenants contained
in this Section 12 may result in irreparable damage to the disclosing
party, for which there may be no adequate remedy at law. The disclosing
Party shall be entitled to seek injunctive relief and/or a decree for specific
performance and such other relief as may be proper (including monetary
damages if appropriate).

 

13.                               NOTICES

 

All notices concerning this Agreement shall be in
writing and shall be deemed given upon receipt. All notices shall be sent by
registered or certified mail, by overnight courier service, facsimile
transmission with electronic confirmation of delivery, or by other means agreed
upon by both parties. Either Party may change the names or address to
which notices must be sent by sending a written notice to the other Party.

 

	
  Notices to TCS should be sent to:

  	
   

  	
  TeleCommunication Systems, Inc.

  
	
   

  	
   

  	
  275 West Street,

  
	
   

  	
   

  	
  Annapolis, MD 21401

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: Celeste Ciecierski

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel: (410) 295-1451

  
	
   

  	
   

  	
  Fax: (410) 263-7617

  
	
   

  	
   

  	
   

  
	
  Notices to Customer should be sent to:

  	
   

  	
  Vonage

  
	
   

  	
   

  	
  2147 Route 27

  
	
   

  	
   

  	
  Edison, New Jersey 08817

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: Brooke Schulz

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel: (732) 528-2627

  
	
   

  	
   

  	
  Fax: (732) 287-9119

  

 

8

 

14.                               DISPUTES

 

The
Parties agree to submit to arbitration for any and all matters in dispute or
controversy between them concerning this Agreement that cannot be resolved
through discussion by senior executives of both Parties. In the event that
discussions by senior executives cannot resolve any such dispute or controversy
within sixty (60) days (or such other longer period as the Parties may agree)
either Parties may submit such matter in dispute to arbitration, and such
matter shall be resolved by a binding arbitration by a single arbitrator. Any
such arbitration proceeding shall be held in the English language in New York,
New York. The arbitrator will be selected and the arbitration conducted in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association. The parties will share equally in the fees and
expenses of the arbitrator and the cost of the facilities used for the
arbitration hearing, but will otherwise bear their respective costs incurred in
connection with the arbitration. The parties agree to use all reasonable commercial
efforts to ensure that the arbitrator is selected promptly and that the
arbitration hearing is conducted no later than three (3) months after the
arbitrator is selected. The arbitrator may not award punitive or exemplary
damages against any Party or any other relief in excess of the limitations set
forth herein. The arbitrator’s award shall adhere to the plain meaning of this
Agreement and to applicable law, and shall be supported by written findings of
fact and conclusions of law. The judgment and award of the arbitrator will be
final and binding on each Party. Judgment upon the award may be entered in
any United States federal or state court having jurisdiction.

 

15.                               INSURANCE

 

15.1                           TCS
shall maintain, during the term of this Agreement, at its own expense, the
following insurance:

 

15.1.1                  Worker’s Compensation and related
insurance as prescribed by the law of the state in which the work is performed;
and

 

15.1.2                  Comprehensive general liability
insurance and, if the use of automobiles is required, comprehensive automobile
insurance, each with limits of at least USD $2,000,000 for combined single
limit for bodily injury, including death, and/or property damage.

 

16.                               MISCELLANEOUS

 

16.1                           Neither
Party shall perform or use the TCS Products or Services in any manner nor
for any purpose which violates the laws or regulations of the jurisdiction in
which the TCS Products or Services are being provided.

 

16.2                           Customer
shall not perform any service bureau work, grant multiple-user licenses,
or enter into any time-sharing arrangements using Software licensed under this
Agreement, except as expressly authorized in writing by TCS, provided that
Customer’s use of the software in providing service to its customers shall not
be deemed to violate this Section 16.2.

 

16.3                           Any
provision or provisions of this agreement which in any way contravenes the law
of any jurisdiction in which this Agreement is effective shall, in such
jurisdiction, to the extent of such contravention of law, be deemed severable
and ineffective. Such severance shall not affect any other provision hereof or
the validity of this Agreement, unless one or more essential purposes of the
Agreement is rendered ineffective, in which case either Party may terminate
the Agreement without cause in that jurisdiction by notice to the other Party
within a reasonable period.

 

16.4                           No
waiver by either Party to any provisions of this Agreement shall be binding
unless made expressly and confirmed in writing. Any such waiver shall relate
only to such matter, non-compliance or breach as it relates to and shall not
apply to any subsequent or other matter, non-compliance or breach.

 

9

 

16.5                           The
relationship between and among the Parties hereto shall be that of independent
contractors only, and without limiting the foregoing shall not be that of
partners. Nothing herein contained shall be deemed to constitute a partnership
between and amongst them, merge their assets, or their fiscal or other
liabilities or undertakings. Nothing herein contained shall allow a Party to
act as an agent of any other party, except that TCS may be considered a
limited agent of Customer when TCS is acting on the behalf of and at the
direction of the Customer for the limited purpose of transmitting E9-1-1 data
to Public Safety Answering Points (PSAPs). TCS shall be solely responsible for
its own employees, including without limitation with regard to their
employment, compensation, benefits and taxes relating to their employment. No
TCS employee shall be deemed to be an employee of Customer for any purpose.

 

16.6                           This
Agreement, (which includes Exhibit A) sets forth the entire agreement and
understanding between the Parties with respect to the subject matter hereof and
merges, supersedes, terminates and otherwise renders null and void any and all
prior discussions, negotiations and agreements between them. Neither of the
Parties shall be bound by any conditions, definitions, representations or
warranties with respect to the subject matter of this Agreement other than as
expressly provided herein.

 

16.7                           This
Agreement, and all the rights and duties of the Parties arising from or
relating in any way to the subject matter of this Agreement or the
transaction(s) contemplated by it, shall be governed by, construed and enforced
in accordance with the laws of the State of New York (excluding any conflict of
laws provisions of the State of New York that would refer to and apply the
substantive laws of another jurisdiction). To the extent court action is
initiated to enforce an arbitration award or for any other reason consistent
with Section 14, the Parties agree to submit to the personal and exclusive
jurisdiction of the courts located within the state of New York and waive any
objection as to venue or inconvenient forum.

 

16.8                           For a
period of one year from the termination of this Agreement, Customer and TCS
each agree not to solicit the employment of any employee or consultant of the
other Party who has been directly involved in the performance of services under
this Agreement; provided that the employment of an employee of the other Party
who replies to a general advertisement or employment listing not specifically
targeted to employees of the other Party shall not be prohibited by this Section 16.8.

 

10

 

By its signature below,
each Party signifies its agreement to the foregoing.

 

AGREED:

 

	
  TeleCommunication Systems, Inc.

  	
  CUSTOMER

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
  /s/
  Richard A. Young

  	
   

  	
  BY:

  	
  /s/
  John S. Rego

  
	
  Signature

  	
  Signature

  
	
   

  	
   

  
	
    Richard
  A. Young

  	
   

  	
    John
  S. Rego

  
	
  Name

  	
  Name

  
	
   

  	
   

  
	
    Exec.
  VP & COO

  	
   

  	
    CFO

  
	
  Title

  	
  Title

  
	
   

  	
   

  
	
    June 8,
  2005

  	
   

  	
  6-8-05

  
	
  Date

  	
  Date

  

 

 

Attachments:

 

Exhibit A: General
Statement of Work (To be mutually agreed and incorporated by amendment to the Agreement)

Exhibit B: VoIP i1
9-1-1 Statement of Work

 

11

 

TeleCommunication
Systems, Inc.

Western Office

2401 Elliott Avenue, Second Floor

Seattle, WA 98121

Phone 206-792-2000

Fax 206-792-2051

www.telecomsys.com

 

TeleCommunication

Systems

Enabling
Convergent Technologies®

 

TCS VoIP
E9-1-1 

   Exhibit A General Statement of Work

For Vonage Network Inc.

 

 

7/1/2005

 

 

CONFIDENTIAL
& PROPRIETARY

Limited Distribution to Authorized Persons
Only

Created 2005 and Protected as an Unpublished Work

Under the US Copyright Act of 1976.

Copyright © 2005 Telecommunication Systems Inc

All Rights Reserved.

 

1

 

Contents

 

	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
  INTRODUCTION

  	
   

  	
  3

  
	
  2.

  	
  VoIP E9-1-1 TECHNICAL
  SERVICE OVERVIEW

  	
   

  	
  4

  
	
   

  	
  2.1

  	
  TECHNICAL SERVICE
  OVERVIEW

  	
   

  	
  4

  
	
   

  	
  2.2

  	
  TCS’ VoIP E9-1-1
  SERVICE COMPONENTS

  	
   

  	
  4

  
	
   

  	
  2.3

  	
  VONAGE’S VoIP E9-1-1
  SYSTEM COMPONENTS

  	
   

  	
  5

  
	
   

  	
  2.4

  	
  GENERAL SERVICE
  SPECIFICATION

  	
   

  	
  5

  
	
   

  	
   

  	
  2.4.1

  	
  Connectivity

  	
   

  	
  5

  
	
   

  	
   

  	
  2.4.2

  	
  Subscriber Provisioning

  	
   

  	
  6

  
	
   

  	
   

  	
  2.4.3

  	
  Subscriber Location
  Information Validation

  	
   

  	
  6

  
	
   

  	
   

  	
  2.4.4

  	
  Subscriber Location
  Database

  	
   

  	
  7

  
	
   

  	
   

  	
  2.4.5

  	
  Call Signaling

  	
   

  	
  7

  
	
   

  	
   

  	
  2.4.6

  	
  Operator Routing
  Support Service

  	
   

  	
  7

  
	
   

  	
   

  	
  2.4.7

  	
  Service Confirmation

  	
   

  	
  8

  
	
   

  	
   

  	
  2.4.8

  	
  Reporting

  	
   

  	
  8

  
	
   

  	
  2.5

  	
  i1 SERVICE
  SPECIFICATION

  	
   

  	
  9

  
	
   

  	
   

  	
  2.5.1

  	
  Call Routing

  	
   

  	
  9

  
	
   

  	
   

  	
  2.5.2

  	
  Call Delivery

  	
   

  	
  9

  
	
   

  	
   

  	
  2.5.3

  	
  Data Delivery

  	
   

  	
  9

  
	
   

  	
   

  	
  2.5.4

  	
  Default Routing

  	
   

  	
  9

  
	
   

  	
  2.6

  	
  i2 SERVICE
  SPECIFICATION

  	
   

  	
  10

  
	
   

  	
   

  	
  2.6.1

  	
  Call Routing Flow

  	
   

  	
  10

  
	
   

  	
   

  	
  2.6.2

  	
  Call Delivery

  	
   

  	
  12

  
	
   

  	
   

  	
  2.6.3

  	
  Data Delivery

  	
   

  	
  12

  
	
   

  	
   

  	
  2.6.4

  	
  Default Routing

  	
   

  	
  13

  
	
  3.

  	
  VoIP E9-1-1 PROGRAM
  MANAGEMENT OVERVIEW

  	
   

  	
  14

  
	
  4.

  	
  DEPLOYMENT SERVICES FOR
  i2 MARKET LAUNCH

  	
   

  	
  15

  
	
   

  	
  4.1

  	
  GENERAL PROJECT

  	
   

  	
  15

  
	
   

  	
  4.2

  	
  MARKET LAUNCH

  	
   

  	
  15

  
	
   

  	
  4.3

  	
  PSAP OUTREACH

  	
   

  	
  15

  
	
   

  	
  4.4

  	
  PSAP DEPLOYMENT WORK

  	
   

  	
  16

  
	
   

  	
   

  	
  4.4.1

  	
  Assumptions

  	
   

  	
  16

  
	
   

  	
  4.5

  	
  DATA PROVISIONING

  	
   

  	
  17

  
	
   

  	
  4.6

  	
  TESTING

  	
   

  	
  17

  
	
   

  	
  4.7

  	
  GO-LIVE

  	
   

  	
  17

  
	
   

  	
  4.8

  	
  DEPLOYMENT SCHEDULE

  	
   

  	
  17

  
	
   

  	
  4.9

  	
  DEPLOYMENT ACCELERATION

  	
   

  	
  18

  
	
   

  	
  4.10

  	
  DEPLOYMENT FIRST MOVER
  ADVANTAGE

  	
   

  	
  18

  
	
   

  	
  4.11

  	
  DEPLOYMENT APPROACH

  	
   

  	
  18

  
	
  5.

  	
  TCS VoIP
  E9-1-1—OPERATIONAL SERVICES OVERVIEW

  	
   

  	
  18

  
	
   

  	
  5.1

  	
  FACILITIES

  	
   

  	
  19

  
	
   

  	
   

  	
  5.1.1

  	
  Data Centers

  	
   

  	
  19

  
	
   

  	
   

  	
  5.1.2

  	
  Network Operations
  Centers

  	
   

  	
  19

  
	
   

  	
   

  	
  5.1.3

  	
  Technical Support

  	
   

  	
  20

  
	
   

  	
   

  	
  5.1.4

  	
  Monitoring

  	
   

  	
  20

  
	
   

  	
   

  	
  5.1.5

  	
  Data Maintenance

  	
   

  	
  21

  
	
  6.

  	
  MILESTONES FOR SERVICE
  LAUNCH

  	
   

  	
  21

  
	
  7.

  	
  SERVICE LEVEL AGREEMENT

  	
   

  	
  22

  
	
  8.

  	
  PRICING AND BILLING

  	
   

  	
  22

  
	
  9.

  	
  AGREED:

  	
   

  	
  22

  

 

2

 

1.                                       Introduction

This document is Exhibit
A to the Master Sales Agreement (“MSA”) between TCS and Vonage dated June 8,
2005, describes the TCS VoIP e9-1-1 Service to be provided by TCS to Vonage
thereunder, explains how the TCS VoIP E9-1-1 Service will work from a
technical, deployment, and operational perspective, and sets forth the parties’
respective roles and responsibilities with regard thereto.

 

The document begins with
a “Technical Overview” section, which describes the system components and the
implementation options available. This is followed by the “Program Management
Overview,” which identifies TCS’ services and roles during initial launch of
services and during creation of MSAGs for Vonage. The next major section is the
“Operational Services Overview,” which details TCS’ roles and responsibilities
while operating the VoIP E9-1-1 Solution.

 

Pricing for the VolP
E9-1-1 Solution also is attached to this document.

 

TCS and Vonage entered
into a letter agreement with an Effective Date of May 31, 2005 (the “Letter
Agreement”) which provided for the completion a Demonstration Project of the
TCS VoIP E9-1-1 service. (Terms in this paragraph which are capitalized and not
otherwise defined refer to terms defined in the Letter Agreement.) The Letter
Agreement, by its terms, will expire on July 1, 2005, but the Demonstration
Project has not been completed due to circumstances mutually understood between
TCS and Vonage. Both parties have agreed to enter into this Exhibit A in order
to initiate certain other activities required for full deployment of the
service, but with the contingency that if the Demonstration Project does not
successfully complete the Acceptance Criteria set forth in Exhibit B of the
Letter Agreement by July 15, 2005, then this Exhibit A to the MSA shall become
null and void, and the rights and obligations of both TCS and Vonage shall be
the same as though this Exhibit A to the MSA was never executed.

 

3

 

2.                                       VoIP E9-1-1 Technical Service
Overview

This section describes
the technical scope of the TCS VoIP E9-1-1 Service and defines the respective
scope of responsibility for TCS and Vonage. Activities or functions described
in this Statement of Work as Vonage responsibilities may be undertaken by a
third party on behalf of Vonage upon express written authorization by Vonage.
Upon receipt of such authorization, TCS will be entitled to deal with such
third party for the purposes set forth in such authorization, and will deal
with such third party pursuant to Vonage’s written instructions.

 

2.1          Technical Service Overview

The TCS E9-1-1 VoIP
Service will support static, nomadic, and mobile VoIP subscribers. TCS will
provide to Vonage both an i1 and an i2 solution as specified below in sections
2.5 and 2.6, respectively.

 

2.2          TCS’ VoIP E9-1-1 Service Components

TCS will provide the
following components as part of the TCS VoIP E9-1-1 Service:

 

	
  Component

  	
   

  	
  Description

  
	
  Business to Business
  (B2B) Provisioning Interface

  	
   

  	
  The TCS B2B interface
  currently supports and will continue to support civic address validation
  whereby the provided address is compared against geographic data (e.g.,
  street name, city, state, ZIP), and provisioning of the subscriber address
  into the SLDB. The B2B interface is based on Simple Object Access Protocol
  (“SOAP”).

  
	
  Validation Database
  (VDB)

  	
   

  	
  Provides a validation
  interface to the SLDB using Master Street Address Guide (MSAG) data and GIS
  layer data. The VDB provides both civic and MSAG data validation. Delivery of
  the MSAG files is the responsibility of the ESGW provider.

  
	
   

  	
   

  	
  MSAG
  validation will be made available by TCS in

  November 2005

  
	
  Subscriber Location
  Database

  (SLDB; a.k.a. LIS)

  	
   

  	
  Stores subscriber
  location information for use by the VPC.

  
	
  Service Order Input
  Database (SOIDB)

  	
   

  	
  Used for provisioning
  MSAG valid shell records into the ALI database and provisioning ESQKs into
  the selective router.

  
	
  VoIP Positioning Center
  (VPC)

  	
   

  	
  Provides call routing
  instructions to Vonage’s VoIP network and delivers caller location information
  to the ALI/PSAP.

  
	
  Emergency Routing
  Database (ERDB)

  	
   

  	
  Identifies the
  Emergency Services Number (ESN), ESQK Pool, Selective Router, and Contingency
  Routing Number (The 10-digit, PSAP 7x24 emergency number; used if call cannot
  be routed through the selective router).

  
	
  ALI Link

  	
   

  	
  Integrates the VPC with
  V-E2, NENA2, and PAM compliant ALI databases nationally.

  
	
  Operator Routing
  Support Service (ORSS)

  	
   

  	
  If Vonage chooses TCS
  ORSS service, calls that the VPC cannot automatically route to a PSAP will be
  answered by a call taker and transferred to the appropriate PSAP or first
  responder. The PSTN connectivity to the ORSS the responsibility of Vonage.

  
	
   

  	
   

  	
  ORSS
  available June 30, 2005

  
	
  Reporting Web

  	
   

  	
  A secure,
  customer-facing web-based reporting interface.

  

 

4

 

2.3          Vonage’s VoIP E9-1-1 System Components

To complete the solution,
Vonage must provide the following components:

 

	
  Component

  	
   

  	
  Description

  
	
  Provisioning Server

  	
   

  	
  Provides location
  provisioning interface to VoIP Subscriber and relays subscriber location
  information to the SLDB via the B2B Provisioning Interface.

  
	
  9-1-1 Call/Proxy Server
  (Soft Switch):

  	
   

  	
  Interacts with VPC to
  obtain and interpret location-based call routing instructions.

  
	
  Emergency Services
  Gateway (ESGW):

  	
   

  	
  Routes 9-1-1 calls to
  the Selective Router via trunks between ESGW and Selective Routers or via
  trunks to tandem switches which connect to Selective Routers

  

 

Both the TCS-provided and Vonage-provided components
will use NENA standard interfaces (as set forth in section 2.4.5 below) where
applicable. The following diagram represents the solution system components:

 

 

2.4          General Service Specification

2.4.1       Connectivity

Vonage will connect to
TCS as mutually agreed. The parties’ respective responsibilities are set forth
below.

 

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Supports
  connectivity via a pair of dedicated circuits as mutually agreed.

  	
   

  	
  •  Works
  with TCS Engineering to identify connectivity-specific information.

  

 

5

 

	
  •  Orders
  geographically and carrier redundant circuits between Vonage and TCS.

  	
   

  	
  •  Provides
  support during circuit turn-up.

  
	
  •  Provides
  support during circuit turn-up.

  	
   

  	
   

  
	
  •  Monitors
  circuits to ensure availability.

  	
   

  	
   

  

 

2.4.2       Subscriber
Provisioning

TCS will provide a single
provisioning interface for all VoIP 9-1-1 Services. The provisioning process
will be interactive between the end-user and the validation database. TCS will
leverage its own geographic information system (the Kivera Location Engine) to
integrate MSAG data into the street data. TCS will use this integrated dataset
to perform both civic and MSAG validation (MSAG Validation available in 4Q05).

 

TCS supports and will
continue to support NENA standard interfaces for subscriber provisioning. These
are defined in the Interface Control Document (“ICD”) and provisioning guide
identified as:

 

B2B:
1095-1A-Subscriber_Data_Prov_B2B_ICD_v2.1

 

Bulk: TCS Bulk
Provisioning Guide (It is anticipated that the Bulk interface will be used only
for the initial production load, and thereafter B2B will be the primary
interface.)

 

i2 provisioning requires
that records be stored in the SLDB. Upon a B2B provisioning transaction request
by Vonage, TCS will manage and store SLDB records. Only shell records will be
provisioned in the ALI (to enable ESQK ALI Steering). The VPC uses these SLDB
records to determine routing during call flow. Furthermore, the address portion
of the records is staged for the ALI query based on the assigned ESQK.

 

2.4.3       Subscriber Location
Information Validation

Subscriber address
information will be validated by TCS in real-time prior to entry into the TCS
SLDB. The diagram below illustrates the validation process for customer
addresses, the process for loading the ALI record, and the reporting available to
Vonage. The process flow is as follows:

 

	
  Step

  	
   

  	
  TCS

  	
   

  	
  Vonage

  
	
  1

  	
   

  	
  N/A

  	
   

  	
  Vonage sends a
  provisioning request containing customer data (URI, TN, address) to TCS via
  B2B interface.

  
	
  2

  	
   

  	
  TCS validates each
  address received against the TCS address validation system.

  MS AG Validation available in

  November
  2005

  	
   

  	
  N/A

  
	
  3

  	
   

  	
  If the address cannot
  be validated TCS generates detailed error codes.

  	
   

  	
  N/A

  

 

6

 

	
  4

  	
   

  	
  TCS sends a response
  containing either a success or failure notification (and corresponding error
  codes and/or address alternatives) for each address.

  	
   

  	
  If validation fails,
  Vonage will facilitate troubleshooting the address with the subscriber and
  will resubmit records as needed.

  
	
  5

  	
   

  	
  If validated, each
  address is stored in the TCS SLDB.

  	
   

  	
  N/A

  

 

2.4.4       Subscriber Location
Database

TCS will support
subscriber provisioning through a B2B Provisioning Interface.

 

Vonage will provide
subscriber data in the format defined in the Subscriber Data Provisioning ICD.
TCS also offers a batch file submission process for initial data loads as
defined in the Bulk Provisioning Guide.

 

2.4.5       Call Signaling

TCS supports and will
continue to support NENA standard V4 and V6 interfaces for call signaling.
These are defined in the Interface Control Documents. The current versions are
identified below.

 

•                                          11
73-1_V4_SIP_ICD_1_1.doc

•                                          1
150-1_V6_SIP_ICD_1_2.doc

 

TCS reserves the right to
modify the ICD to maintain consistency with the NENA standard interfaces, but
shall not implement such modifications into the Vonage service without the
approval of Vonage.

 

2.4.6       Operator Routing
Support Service

Pursuant to this SOW, TCS
will use best efforts to eliminate the circumstances in which a Vonage VoIP
9-1-1 caller is directed to a recording. Calls that the VPC cannot
automatically route to a PSAP will be answered by a TCS-provided call taker and
transferred to the appropriate PSAP or first responder.

 

If the subscriber is
unprovisioned (for example, has not registered its location information and
subscribed to Vonage’s 911 service), the TCS call taker will determine the
caller’s location and direct the call to the correct PSAP. If the PSAP refuses
calls, the call taker will use its best efforts to transfer the call either to
the PSAP or directly to the appropriate responder through the 10-digit PSTN
number as described in Exhibit B to the MSA.

 

7

 

 

2.4.7       Service Confirmation

TCS will use VoIP
VerifyTM, a custom dialing plan, to allow users to obtain real-time PSAP service
status. After dialing a designated number (for example, 9-3-3), the subscriber
will hear a message describing the extent of their 9-1-1 coverage. This will help
to mitigate subscriber misunderstandings about the level of service that they
can expect. TCS currently supports a validation-only interface that responds to
a query against a provisioned location. The query will allow users to obtain
real-time PSAP service status. Vonage must provide the user interface (i.e.,
incorporated into the provisioning server).

 

TCS intends to offer
service confirmation validation via an Internet-based interface which currently
is scheduled for availability by the end of November 2005. If such
Internet-based service is requested by Vonage upon its availability, TCS and
Vonage will mutually agree upon the terms for its integration into the services
provided to Vonage.

 

2.4.8       Reporting

TCS will provide a web
based reporting server to Vonage for access to all VoIP reports and data.
Through this web site, TCS will be able to report accurately on all provisioned
subscribers. TCS will provide Vonage with the capability to access the
following data:

 

	
  Function

  	
   

  	
  Report

  
	
  Subscriber Provisioning

  	
   

  	
  •     Provisioned
  Subscriber Detail including counts of subscribers provisioned by full address
  and provisioned only by city/state/ZIP, and PSAP Status

  •     TCS
  VoIP Verify Utilization

  
	
  Service Set-up/ Data
  Provisioning

  	
   

  	
  •     ESRN/
  ESQK Pool Provisioning Status

  
	
  Call Flow

  	
   

  	
  •     Call
  Counts by Subscriber

  •     Default
  Routes

  •     Call
  Failures

  •     Calls
  handled by ORSS

  
	
  Deployment

  	
   

  	
  •     PSAP
  Status (i1/i2)

  •     Market
  Readiness

  

 

8

 

2.5          i1 Service Specification

TCS will provide Vonage
with a custom i1 solution, whereby all i1 calls will route to the Operator
Routing Support Service (“ORSS”) as provided in Exhibit B to the MSA. The ORSS
will confirm the caller’s location and route the call to the appropriate PSAP.
The parties’ respective responsibilities are set forth below.

 

2.5.1       Call Routing

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Provides
  VoIP E9-1-1 service for calls within the United States and Canada.

  •  Provides
  a 10-digit 24x7 PSAP emergency number for routing the call.

  	
   

  	
  •  Provides
  the call connectivity access to the PSTN.

  •  Provides
  softswitch with PSTN access.

  

 

2.5.2       Call Delivery

	
  TCS/ ORSS

  	
   

  	
  Vonage

  
	
  •  Confirms
  caller name and address.

  •  Identifies
  the type of emergency.

  •  Identifies
  the appropriate PSAP/ 1st Responder to handle the call.

  •  Contacts
  the PSAP/ 1st responder.

  •  Confirms
  call acceptance and drops from the call.

  •  Documents
  call status.

  	
   

  	
  •  Routes
  call via PSTN to the 10-digit number for the ORSS.

  •  Establishes
  and maintains dedicated trunking between softswitch and PSTN.

  

 

2.5.3       Data Delivery

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Stages
  records in a TCS database for reporting and billing purposes. Vonage will be
  allowed access to the subscriber data contained in this database through the
  reporting server.

  	
   

  	
   

  

 

2.5.4       Default Routing

As with all i1 calls, in
the event that TCS receives a subscriber telephone number that is not in the
SLDB, TCS will provide a 10-digit 24x7 ORSS number for routing the call. The
ORSS will have the ability to validate the caller’s address and correlate that
location to the most appropriate PSAP for handling the call.

 

9

 

2.6          i2 Service Specification

The functional components
of the end-to-end VoIP E9-1-1 services to be provided are identified in the
tables below, along with the roles for TCS and TCS’ partner CLEC. These
specifications apply to the i2 solution.

 

When Vonage sends the SIP
Invite to the TCS VPC, TCS determines that the PSAP is i2 capable. The VPC
returns the ESQK, ESRN and CRN to Vonage for routing the call via the selective
router to the PSAP. This is illustrated below.

 

 

2.6.1       Call Routing Flow

The parties’ respective
responsibilities are set forth below.

 

	
  Step

  	
   

  	
  Description

  	
   

  	
  TCS

  	
   

  	
  Vonage

  	
   

  	
  LEC, SR

  provider, and

  or ALI

  provider

  
	
  1

  	
   

  	
  The VoIP endpoint
  initiates an emergency call and conveys its location either directly
  (Location Object, or “LO”) or indirectly (Location Key, or “LK”) or conveys
  no location at all to the 9-1-1 VoIP Call Server.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  2

  	
   

  	
  Call Server recognizes
  the emergency call and initiates a SIP INVITE message to the TCS Routing
  Proxy (via the V6 interface).

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  

 

10

 

	
  Step

  	
   

  	
  Description

  	
   

  	
  TCS

  	
   

  	
  Vonage

  	
   

  	
  LEC, SR

  provider, and

  or ALI

  provider

  
	
  3

  	
   

  	
  The TCS Routing Proxy
  sends a message (internal to TCS) to the VPC, passing along the referenced
  location, if provided.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  The VPC queries LIS
  (SLDB) (as appropriate) to get location (LO) based on location key (LK) input
  (via internal V3 compatible interface). Absent an LK, the VPC will use the
  SIP URI contained in the INVITE to query the LIS/SLDB.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  LIS/SLDB returns the
  location (LO) to the VPC, where it is cached in association with the call in
  progress.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  The VPC sends a request
  for PSAP routing information to the ERDB, based on location as input.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  The ERDB returns ESRN,
  ESN, and CRN to the VPC, which the VPC uses to allocate an ESQK for later use
  in routing through the TDM Selective Router.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  The VPC initiates a SIP
  INVITE containing ESQK, ESRN, and LRO back to the original Call Server (via
  the V4 interface). LRO is not included in the initial INVITE. It is used only
  if the INVITE with ESRN and ESQK fails.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  The Call Server
  receives the ESQK, ESRN, and LRO, and initiates a new INVITE to the ESGW
  (also implements a V4 interface). LRO is not included in the initial INVITE.
  It is used only if the INVITE with ESRN and ESQK fails.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  10

  	
   

  	
  The ESGW receives the
  ESQK, ESRN, and LRO, then based on ESRN mapping, determines to which S/R the
  call should be routed. LRO is not included in the initial INVITE. It is used
  only if the INVITE with ESRN and ESQK fails.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  11

  	
   

  	
  The Selective Router
  receives only the ESQK in the TDM (or CAMA) messaging. Vonage may include the
  CBN in signaling where the SR is capable of handling CBN in signaling path.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
  ESGW Provider

  
	
  12

  	
   

  	
  The call is routed to
  the appropriate PSAP.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ESGW Provider

  

 

11

 

	
  Step

  	
   

  	
  Description

  	
   

  	
  TCS

  	
   

  	
  Vonage

  	
   

  	
  LEC, SR

  provider, and

  or ALI

  provider

  
	
  13

  	
   

  	
  The PSAP receives the
  ESQK, and then requests ALI location information from the ALI database, based
  on the ESQK.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PSAP and ALI
  Host

  
	
  14

  	
   

  	
  Based on the ESQK, and
  the ALI’s corresponding shell record, the ALI initiates an ESPOSREQ request
  over the V-E2 interface.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ALI Host

  
	
  15

  	
   

  	
  The TCS ALI-Link/VPC
  returns the location information associated with the current emergency call
  back through the ALI, to the PSAP

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  

 

2.6.2       Call Delivery

The parties’ respective
responsibilities are set forth below.

 

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Provides
  relationship info regarding ESQK-to-PSAP data.

  	
   

  	
  •  Establishes
  and maintains dedicated trunking between media gateway and all required
  selective routers.

  
	
   

  	
   

  	
  •  Based
  upon ESQK or trunk select, routes call via IP to appropriate local TDM media
  gateway.

  
	
   

  	
   

  	
  •  Provisions
  translations in local TDM media gateway to route call via appropriate TDM
  signaling protocol to appropriate selective router.

  

 

2.6.3       Data Delivery

The parties’ respective
responsibilities are set forth below.

 

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Stages
  record in TCS database.

  	
   

  	
   

  
	
  •  Establishes
  and maintains connectivity to all required ALI databases.

  	
   

  	
   

  
	
  •  Provisions
  ESQKs in all required ALI databases and selective routers.

  	
   

  	
   

  
	
  •  Supports
  all standard ALI formats: V-E2, E2, E2+, PAM and NENA.

  	
   

  	
   

  
	
  •  Provides
  i1 service (route calls to 10-digit ORSS line). Upon request by Vonage, TCS
  can use ORSS and 10-digit PSAP DN’s also as a possibility in cases where ALI
  connectivity does not exist.

  	
   

  	
   

  

 

12

 

	
  •  In
  the event of changes to the ALI that require upgrade or new data circuits,
  TCS shall implement necessary changes within a reasonable timeframe. TCS may
  elect to eschew upgrades if they are deemed to be prohibitively expensive or
  otherwise financially unsound. Such situations will be reviewed with Vonage.

  	
   

  	
   

  

 

2.6.4       Default Routing

In the event that TCS
receives a subscriber telephone number that is not in the SLDB, TCS will
provide a 10-digit 24x7 ORSS number for routing the call. The ORSS will have
the ability to validate the caller’s address and correlate that location to the
most appropriate PSAP for handling the call.

 

13

 

 

3.                                       VoIP E9-1-1 Program
Management Overview

TCS will provide Vonage
with project management, deployment management, technical integration services
and data provision services to support the deployment of the TCS VoIP E9-1-1
Solution.

 

Overall Project
Management will be delivered via an Onsite Project Manager as described in
Exhibit C to the MSA. The Onsite Project Manager will be responsible for
coordinating the specific TCS resources responsible for each of the deployment
services required in Section 4 below.

 

14

 

4.                                       Deployment Services for i2
Market Launch

This section describes
the parties’ respective deployment responsibilities for a VoIP i2 deployment
between Vonage and TCS.

 

4.1                               General Project

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Provide project
  management services for testing and deployment

  	
   

  	
  •  Provide status
  reporting on trunk/selective router readiness.

  
	
  •  Provide status
  on PSAP readiness and instructions to deploy.

  	
   

  	
   

  

 

4.2                               Market Launch

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Identifies
  the PSAP’s included in the market launch based on the specified rate centers
  provided by Vonage 

  •  TCS
  provides reports of ALI connectivity status 

  •   PSAPs
  TCS and ESGW connected to 

  •   PSAPs
  TCS and/or ESGW still need to connect to

  	
   

  	
  •  Vonage
  supplies the market launch plan (markets and launch dates) 

  •  Identify
  Selective Routers that are already deployed

  •  Identify
  Selective Routers to be deployed with time frame for deployment 

  •  Identify
  all PSAPs connected to each Selective Router 

  •  Identify
  high profile markets that need immediate connectivity work 

  •  Identify
  any PSAP decisions driven by outside market forces

  

 

4.3                               PSAP Outreach

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Creates
  VoIP Welcome Kit to PSAP, which includes:

   

  •   VoIP
  overview

   

  •   Roles
  and Responsibilities matrix.

   

  •   Call
  to action for shell record, ESN, CRN.

   

  •   Deployment
  timeline

  	
   

  	
  •  Send
  PSAP Welcome Kit

   

  •  Proactive
  follow-up by phone after PSAP welcome kit is sent

   

  •  Attempt
  twice to complete a verbal interview with the PSAP to complete the Deployment
  Checklist document, which will include:

   

  •   Confirmation
  of LEC, SR (CLLI), ALI database, CPE

   

  •   Confirmation
  of PSAP ESN

   

  •   Request
  for Shell Record(s) for ESQKs

   

  •   Request
  for PSAP’s CRN

   

  •   Inform
  the PSAP of the i2 test plan

  

 

15

 

	
   

  	
   

  	
  •   Inform
  the PSAP of any delay time between completion of test call and production
  ‘go-live’

   

  •  Notify
  TCS if there is no intent to deploy

   

  •  Provide
  VoIP shell record

   

  •  Notify
  TCS is PSAP refuses to provide VoIP shell record.

   

  •  Notify
  TCS when to restart a deployment or when to close a deployment record based
  on ongoing interaction between Vonage and PSAP.

   

  •  Provide TCS
  with completed Deployment Checklist.

  

 

4.4                               PSAP Deployment Work

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Verify
  and test ALI Connectivity

  •  Verify
  Wireless Shape File exists and create new Shape File if needed 

  •  Collect
  Shape File from Vonage

  •  Determine
  ALI Display requirements

  	
   

  	
  •  Order
  SR trunks 

  •  Notify
  TCS eta for trunk availability for testing 

  •  Provide
  appropriate number of ESQKs to TCS 

  •  Provide
  TCS PSAP ESRN translation

  •  Provide
  PSAP provided Shape File if new or different from Wireless.

  

 

4.4.1                     Assumptions

TCS will not begin PSAP deployment activities until
the PSAP has provided a VoIP Shell Record.

 

TCS will begin PSAP deployment activities for a PSAP
that has provided a VoIP Shell Record, regardless of whether the PSAP has
requested dedicated VoIP trunks and/or new boundaries for VoIP calls. TCS and
Vonage agree that these PSAP requests will be accommodated, but that they
cannot delay the initial deployment.

 

16

 

4.5                               Data Provisioning

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Load
  VoIP Shell Records to ALI Database (ESQKs) 

  •  Load
  ESQKs, ESRN and CRN into VPC

  •  Determine
  Test Subscriber Addresses

  •  Load
  Test Account into SLDB via test interface

  	
   

  	
  •  Load
  ESRN/SR table 

  •  Provide
  Test Vonage accounts for TCS Deployment Managers

  

 

4.6                               Testing

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Notify
  PSAP of intent to test 

  •  Provide
  test plan to PSAP 

  •  Provision
  Local Address for test calls 

  •  Place
  Test Call 

  •  Test
  All ESQKs 

  •  Test
  CRN

  	
   

  	
  •  Verify
  Trunks 

  •  Vonage
  to ensure proper LEC support related to connectivity (SR) issues.

  
	
  •  Verify
  Correct PSAP Delivery 

  •  Verify
  ALI Display

  •  Provide
  test conference bridge

  	
   

  	
   

  

 

4.7                               Go-Live

	
  TCS

  	
   

  	
  Vonage

  
	
  •  Provide
  notification to PSAP about successful test;

  •  Provide
  notification to TCS NOC and Vonage NOC 

  •  Deliver
  SOP to PSAP 

  •  Provide
  notification to all parties of successful test

  	
   

  	
   

  

 

4.8                               Deployment Schedule

TCS is dependent on the
availability of ESGW/SR access and the PSAPs intent to deploy before deployment
activity can begin.

 

Vonage will provide TCS
with an ESGW Availability Schedule. Such schedule shall indicate the week
(based on the date of each Monday within the week) when an ESGW will be
available to handle live VoIP traffic. The schedule shall also indicate the
date when TCS will receive the ESRN and ESQKs related to each ESGW. Based on
the availability of PSAPs to deploy, TCS commits to creating and delivering a
PSAP Deployment Schedule such as the following such that the total number of
PSAPs deployed as of the end of each respective month will be at least as many
as is set forth in the Deployment Schedule.

 

17

 

	
  SAMPLE
  DEPLOYMENT SCHEDULE

  	
   

  
	
   

  	
   

  
	
  Month

  	
   

  	
  Target PSAP

  Deployments

  	
   

  
	
  August

  	
   

  	
  500

  	
   

  
	
  September

  	
   

  	
  500

  	
   

  
	
  October

  	
   

  	
  500

  	
   

  
	
  November

  	
   

  	
  500

  	
   

  
	
  December

  	
   

  	
  500

  	
   

  
	
  2005 Total

  	
   

  	
  2500

  	
   

  

 

Where PSAPs have provided
a VoIP Shell Record, it should take 5 - 10 days to complete the deployment.
Where PSAPs are connected to Stand Alone ALI databases (SALI) that are not
currently connected to TCS, it should take 45 to 60 days to complete the deployment.

 

Vonage and TCS shall
mutually agree on the final Deployment Schedule similar to the Sample
Deployment Schedule shown above. The final Deployment Schedule shall be used in
section 7.4 as the basis for performance bonus and penalties.

 

4.9                               Deployment Acceleration

All pricing for this SOW
provides for deployment of PSAPs at a rate of not more than 500 per month.
Additional PSAPs can be deployed by increasing staff level of effort dedicated
to the task. TCS has experience working with several firms skilled in this type
of activity and believes the target PSAP deployments could be accelerated.
Requests for accelerated deployments are not included in this SOW and will be
subject to written agreement between Vonage and TCS.

 

4.10                        Deployment First Mover Advantage

TCS agrees that for each
PSAP where Vonage initiates and conducts PSAP Outreach services, TCS will
provide Vonage the opportunity to be the first VoIP Service Provider that TCS
will deploy to that PSAP. Should Vonage be unwilling or otherwise unable to
deploy to that PSAP within 15 days of the date that PSAP notifies TCS of its
availability to be deployed, TCS shall no longer be obligated to provide Vonage
the “first to deploy” advantage.

 

4.11                        Deployment Approach

TCS recommends an
approach to choosing which PSAPs to deploy which factors in subscriber density,
PSAPs’ previous experience with wireless deployments, PSAPs’ willingness to
accept VoIP calls and the availability of existing SR connections.

 

Upon receipt of Vonage
subscriber data, TCS will perform the necessary analysis to produce a report
identifying suggested target PSAPs for initial deployments. Upon approval by
Vonage, this report will be used to prioritize PSAP deployment and will also be
used to prioritize selective router / ESGW deployments.

 

5.                                       TCS VoIP
E9-1-1—Operational Services Overview

TCS will provide Vonage
with continuous availability of systems, seven days a week, 365 days a year.
Using highly available facilities to maintain the high standards necessary for
emergency services, TCS will follow detailed provisioning and operations
procedures to maintain network integrity. TCS designs, builds, and provisions
its systems to be reliable, highly available, auto aware, and fault resilient
and will maintain its systems at this level or 

 

18

 

better throughout the
term of the Agreement. TCS Operations builds and monitors its systems in a
production environment and will continue to do so throughout the term of this
Agreement.

 

This section provides an
overview of TCS facilities, and describes the connectivity, monitoring,
incident management, change control, and reporting that will occur within
Operations.

 

5.1                               Facilities

TCS will operate data
centers and two network operations centers in accordance with the Service Level
Agreement (“SLA”) discussed in section 7.4.3 below.

 

5.1.1                     Data Centers

TCS has, and will
maintain throughout the term of this Agreement, two data centers, located in
Seattle, Washington, and Phoenix, Arizona, such that (i) each is and will be
equipped with the same software and hardware; (ii) each has and will have
secure, monitored access, an uninterruptible power supply, an on-site diesel
generator, redundant systems, and network management servers; and (iii) each
physically mirrors and will mirror the other, so staff can quickly locate and
access cabling and equipment in the event of an emergency.

 

All critical power
systems are, and will throughout the term of this Agreement be, backed up by an
uninterruptible power supply (UPS).

 

If the data center
electrical load is interrupted, the UPS will assume the load during the brief
time needed for the automatic transfer switch (ATS) to transfer the load to the
generator.

 

Both data centers are,
and will throughout the term of this Agreement be, protected by two fire
suppression systems, the Inergen inert gas system, and a water sprinkler
system.

 

5.1.2                     Network Operations Centers

TCS maintains, and will
maintain throughout the term of this Agreement, two Network Operations Centers
(NOCs), located in Seattle, Washington, and Annapolis, Maryland. The Seattle
facility monitors all system events 24 hours a day, 365 days a year. The
Annapolis facility serves as a backup.

 

The NOC will be
responsible for identification, troubleshooting, internal and external
notification of incidents, incident management, and problem resolution.

 

Every call event,
including call origination, call completion, call control messages, data
translations, and ALI database data delivery, will be tracked.

 

NOC tools are, and will
throughout the term of this Agreement be, designed and implemented in a
geo-redundant manner visible from Seattle and Annapolis. Staffs in both
locations are, and will throughout the term of this Agreement be, trained to
monitor and troubleshoot the E9-1-1 production systems and networks.

 

A comprehensive disaster
recovery plan is, and will throughout the term of this Agreement be, in place
that details procedures, processes, and training. In the event of a
catastrophic failure in the Seattle NOC, the Annapolis NOC will provide backup
and resume operation of the system as the primary NOC.

 

19

 

5.1.3       Technical Support

 

A technical support Subject Matter Expert (“SME”) will
be assigned to the project. The parties’ respective responsibilities are set
forth below.

 

	
  Tier

  	
   

  	
  TCS

  	
   

  	
  Vonage

  
	
  1 (User
  interface)

  	
   

  	
  Will provide
  PSAP support.

  	
   

  	
  Will provide
  Tier 1 support to customer-providers and subscribers.

  
	
  2
  (Debugging)

  	
   

  	
  NOC will
  support Vonage and ALI database providers.

  	
   

  	
  Will support
  softswitch vendors.

  
	
  3
  (Professional Technical Analysis)

  	
   

  	
  May work
  directly with Vonage.

  	
   

  	
  May work
  directly with TCS.

  

 

5.1.4       Monitoring

 

The NOC is responsible for monitoring the network
connections, the ALI database connections, and the E9-1-1 production
operations.

 

TCS operates proprietary software to communicate to
landline ALI databases and is connected with approximately 30 customized
on-site or standalone ALI databases. TCS will maintain interfaces to Motorola,
TCI, HP3000, HBF, and other databases required to deliver the VoIP E9-1-1
services.

 

TCS will monitor all on-site ALI database connections,
analyzing and escalating incidents as necessary. TCS will coordinate and
schedule any service-related maintenance activities with wireless carriers and
PSAPs.

 

TCS will determine operational procedures with circuit
providers and ALI database providers, both regional and on-site. These
operational procedures will include:

 

•                  Gathering contact numbers for ALI
database providers that can be used 24 x 7

 

•                  Informing the ALI provider of any
maintenance windows that may affect service

 

•                  Requiring notice of any ALI
provider’s maintenance activities that may affect service

 

TCS will respond directly to PSAP or vendor requests
for changes in the data format, specifically where the on-site ALI database
interface may need to be changed or reengineered, and work with the appropriate
PSAP personnel to engineer changes to the interface.

 

System failures will be reported to Vonage per service
impact levels (SlLs) as described below:

 

	
  SIL

  Level

  	
   

  	
  TCS

  
	
  1

  	
   

  	
  •     A high-impact outage affecting the entire
  network.

  •     Target resolution time = 2 hours.

  •     Notify Vonage immediately and supply detailed
  RFO after resolution.

  
	
  2

  	
   

  	
  •     A medium impact outage that affects a portion of
  the network (example: outage of ALI database, but call routing remains
  functional).

  •     Target resolution time = 4 hours.

   

  

 

20

 

	
   

  	
   

  	
  •     Notify Vonage immediately and supply detailed
  RFO after resolution.

  
	
  3

  	
   

  	
  •     A minimum impact outage affecting a small
  portion of the network (Example: provisioning error for one PSAP).

  •     Target resolution time = 7 days.

  •     Notifying Vonage not required.

  

 

5.1.5       Data Maintenance

 

Data and data relationships are a critical part of the
TCS E9-1-1 Service.

 

Four unique data sets are necessary for service
delivery—described below—each require specific data maintenance processes. TCS
ensures data integrity on all four data sets, as well as performs back-up
procedures on all databases.

 

	
  Data
  Set

  	
   

  	
  Description

  
	
  Vonage Data

  	
   

  	
  Vonage will
  provide subscriber information and phone numbers for use in the ALI database.
  TCS will provide a B2B interface to add, update, delete and validate all
  addresses.

  
	
  PSAP Data
  Maintenance

  	
   

  	
  TCS will
  maintain an extensive PSAP database for the purpose of deploying and
  operating VoIP E9-1-1 services. The database includes contact, technical
  infrastructure, and boundary information for each PSAP in the United States.
  This information can change after a PSAP is receiving VoIP E9-1-1 services
  and periodically changes due to political or restructuring events. TCS will
  maintain the PSAP database and will incorporate changes to the data in a
  timely manner. TCS will coordinate any changes that may impact an operational
  VoIP E9-1-1 system with Vonage and the affected PSAP(s).

  
	
  Mapping
  Services

  	
   

  	
  The TCS
  Geographical Information Systems (GIS) department will create maps that
  represent the data maintained by TCS. TCS will maintain all the data and
  systems required to ensure that the geographical information systems will be
  accurate. As with the underlying data source, all GIS data is kept strictly
  confidential, secure, and proprietary.

  
	
  Backups

  	
   

  	
  TCS will
  store all data in redundant production systems where it can be copied from
  one system to the other over a high-speed WAN connection. All production data
  will receive nightly backups. Tape backups will be stored off-site in case of
  a disaster and on-site in a fireproof safe.

  

 

6.                                       Milestones
for Service Launch

Below is a list of major
milestones for launching services.

 

1.             MSA Signing – COMPLETE

2.             Kickoff Meeting – COMPLETE

3.             Integrate real time provisioning elements – COMPLETE

4.             Convert Subscribers to TCS SLDB – 15 July 2005

5.             Supply and gather IP address information – COMPLETE

6.             Resolve general connectivity issues – COMPLETE

7.             Receive completed Soft Switch configuration form –
COMPLETE

8.             Integrate Soft Switch with TCS Network – COMPLETE

9.             Execute and sign-off on Lab-to-Lab Trial – 15 July 2005

10.           Vonage to provide Letter of
Authorization to TCS – 8 July 2005

11.           Acquire test numbers from Vonage – 28
July 2005

12.           Acquire test phones from Vonage – 28
July 2005

13.           Vonage to provide ESGW Availability
Schedule – 21 July 2005

14.           Parties to agree on Deployment Schedule
– 28 July 2005

 

21

 

15.           TCS to perform end-to-end ESGW i2
test – 15 August 2005

 

7.                                       Service
Level Agreement

Service commitments and response times shall be
delivered as required by the Service Level Agreement between Vonage and TCS
appended hereto as Attachment 1.

 

8.                                       Pricing
and Billing

All pricing and billing arrangements are shown in
Attachment 2 appended hereto.

 

9.                                       AGREED:

 

	
  TeleCommunication Systems, Inc.

  	
   

  	
  Vonage Network Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard A. Young

  	
   

  	
  By:

  	
  /s/ Louis Mamakos 

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
    Richard A.
  Young

  	
   

  	
    Louis
  Mamakos 

  	
   

  
	
  Name

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
    Exec VP
  & COO 

  	
   

  	
    Chief
  Technology Officer 

  	
   

  
	
  Title

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
    1 July 2005 

  	
   

  	
    1 July 2005 

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  
						

 

22

 

TCS

VOIP E9-1-1 SERVICE

 

SERVICE LEVEL AGREEMENT

BETWEEN VONAGE

NETWORK INC. AND

TELECOMMUNICATION

SYSTEMS, INC.

 

 

ATTACHMENT
1 TO EXHIBIT A TO THE MASTER SERVICE AGREEMENT

 

DOCUMENT
VERSION:  1.0

 

DATE:  JULY 1, 2005

 

 

TELECOMMUNICATION
SYSTEMS, INC. 

275 WEST STREET 

ANNAPOLIS, MARYLAND 21401

www.telecomsys.com

 

 

	
   

  	
  PRIMARY POC:

  	
   

  	
  CORINNA CALHOUN

  
	
   

  	
  PHONE:

  	
   

  	
  206-792-2090

  
	
   

  	
  E-MAIL:

  	
   

  	
  CCALHOUN@TELECOMSYS.COM

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECONDARY POC:

  	
   

  	
  JAY SHELTON

  
	
   

  	
  PHONE:

  	
   

  	
  206-792-2270

  
	
   

  	
  E-MAIL:

  	
   

  	
  JSHELTON@TELECOMSYS.COM

  

 

 

TeleCommunication Systems, Inc.
and Vonage Network, Inc. Confidential

 

 

SLA Between Vonage and TCS

Document Version 1.0 – July 1, 2005

 

General
Information

 

TABLE
OF CONTENTS

 

	
  1.0

  	
  Purpose of This Service Level Agreement (SLA)

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  DEFINED
  TERMS

  	
  1

  
	
   

  	
  1.2

  	
  PERIOD
  OF AVAILABILITY

  	
  2

  
	
  2.0

  	
  TCS Network Operations

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  ELEMENTS
  OF TCS VOIP E9-1-1 SERVICE

  	
  3

  
	
  3.0

  	
  TCS E9-1-1 Service Support

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  GENERAL
  SERVICE SUPPORT

  	
  4

  
	
   

  	
  3.2

  	
  SERVICE
  SEVERITY LEVEL

  	
  5

  
	
   

  	
  3.3

  	
  ADJUSTMENTS
  FOR SERVICE OUTAGES

  	
  7

  
	
   

  	
  3.4

  	
  ESCALATION
  AND NOTIFICATION PROCEDURES

  	
  7

  
	
   

  	
  3.5

  	
  REPORTS
  AND MEETINGS

  	
  8

  
	
   

  	
  3.6

  	
  PRODUCT
  UPDATES AND UPGRADES

  	
  8

  
	
   

  	
  3.7

  	
  PATCHES
  AND MINOR RELEASES

  	
  9

  
	
   

  	
  3.8

  	
  SCHEDULED
  UPGRADE RELEASES

  	
  9

  
	
   

  	
  3.9

  	
  VONAGE’S
  RESPONSIBILITIES

  	
  9

  

 

 

1.                                       Purpose of This Service
Level Agreement (SLA)

This SLA describes
the Support Services and the respective responsibilities of TCS and Vonage.

 

This Service Level
Agreements (SLA) document is part of the Agreement for the TCS VoIP E9-1-1
Product between Vonage and TeleCommunication Systems, Inc. (TCS).

 

The purpose of
this SLA is to (1) identify the levels of service of a service delivered by TCS
to Vonage, (2) define information required to be provided by both TCS and
Vonage for the delivery of the desired levels of service and (3) ensure
delivery of certain information to operations personnel who need such
information in support of the TCS VoIP E9-1-1 service.

 

TCS is committed
to producing and supporting quality products. TCS builds our Maintenance Support
Offer on two primary components:  (1)
Assistance Request Management Service, and (2) Product Updates and Upgrades.
These components can be viewed as assisting the customer in gaining the most
benefit from a TCS provided service (including resolution of issues or
problems), and providing a growth path to future features of the TCS service.

 

1.1                               Defined Terms

Terms and
expressions defined in the TCS/Vonage Master Sales Agreement will, unless the
context requires otherwise or the term is expressly defined below, have the
same meaning when used herein. In the event of any inconsistency between any
definition in this Agreement and those in the Framework Agreement, the
definition in this Agreement will prevail.

 

	
  ATP

  	
   

  	
  Acceptance Test Plan consisting of test cases and
  detailed execution steps with a pass/fail indicator.

  
	
   

  	
   

  	
   

  
	
  Business Day/Hours

  	
   

  	
  Defined as 8am to 5pm Pacific Standard Time (PST).

  
	
   

  	
   

  	
   

  
	
  FOA

  	
   

  	
  Pre-production test phase exercising the
  complete solution within the production environment.

  
	
   

  	
   

  	
   

  
	
  Full Production

  	
   

  	
  Acceptance has been confirmed and TCS
  begins support services as governed by this document and the Standard
  Operating Procedure. This support involves 7x24x365 support.

  
	
   

  	
   

  	
   

  
	
  Incident

  	
   

  	
  A System Software Fault which the TCS is obliged to
  remedy in accordance with the terms of this Agreement.

  
	
   

  	
   

  	
   

  
	
  Initial Deployment

  	
   

  	
  The FOA period prior to full production.
  Support in this phase is based on local office hours with escalation to
  the POC for the deployment.

  
	
   

  	
   

  	
   

  
	
  Local Office Hours

  	
   

  	
  Defined as the business hours for the TCS
  office providing services.

  
	
   

  	
   

  	
   

  
	
  Remediation Plan

  	
   

  	
  A plan that defines the steps to plan to
  implement the solution to an issue. This plan will contain a
  description of a workaround, timeframe for release of 

  

 

1

 

	
   

  	
   

  	
  a patch to correct, and timeline for inclusion in
  final product release.

  
	
   

  	
   

  	
   

  
	
  Response Time

  	
   

  	
  Response Time is defined as acknowledgement of the
  request. The time will be measured from the time of the customer’s initial
  call to TCS until the time the TCS engineer responds, by telephone or email,
  to the customer request.

  
	
   

  	
   

  	
   

  
	
  Support Services

  	
   

  	
  The services that are provided by TCS to provide
  alarming, ticketing, and tracking of issues as they relate to the TCS VoIP
  E9-1-1 service.

  
	
   

  	
   

  	
   

  
	
  TCS VoIP E9-1-1 Service

  	
   

  	
  See Section 2.1 for a detailed list of the elements
  in the service solution

  
	
   

  	
   

  	
   

  
	
  Technical Trial

  	
   

  	
  A lab-to-lab testing phase prior to running a FOA
  with a customer.

  
	
   

  	
   

  	
   

  
	
  Test System

  	
   

  	
  An instance of the TCS VoIP E9-1-1 Service that exists
  within the TCS lab and does not touch production data or network
  elements

  

 

1.2                               Period of Availability

The fully-deployed
TCS VoIP E9-1-1 Service is designed to deliver 99.999% availability (not
including scheduled repair/upgrade cycles). In order to maintain service at
99.999% availability, support will be available 24 hours per day, 7 days per
week, unless otherwise specified by TCS and Vonage.

 

For the period of
the Technical Trial, the Test System will operate during local office hours, if
required and requested by Vonage. This will be a service governed by a
Statement of Work (SOW) agreed upon by both parties.

 

For the period of
Initial Deployment testing in the production environment, TCS-supplied
support arrangements will be based on the local office hours until the
acceptance criteria is achieved. At the point of sign-off by Vonage of the
Acceptance Test Plan (ATP), handoff to the TCS support groups will be completed
and Full Production maintenance coverage begins.

 

Full Production
maintenance coverage including alarming and monitoring will start immediately
after the ATP is signed. If no sign-off has been agreed upon, maintenance
coverage will begin immediately when the solution carries commercial traffic.

 

2.                                       TCS
Network Operations

The TCS Network
Operations Center will perform procedures and actions, upon request, to
investigate and develop the resolution of a reported condition in a manner that
provides a single interface to the customer. This activity produces resolutions
to requests for assistance with the TCS VoIP E9-1-1 service. Depending on
analysis results, the response may be in the form of technical advice, a
procedure performed by technical support personnel, or a product update.

 

NOC services are
delivered through remote support via telephone consultation and email.

 

The TCS NOC
provides the following deliverables:

 

2

 

•                  Detection
of service impairment

 

•                  Determination
of the severity of the issue as described in section 3.1.

 

•                  Proactive
notification on SIL 1 and SIL 2 incidents as described in section 3.2.

 

•                  An
analysis, diagnosis, or isolation of an issue raised by the assistance request.

 

•                  Temporary
resolutions to reduce or mitigate the impact of the issue raised by the
assistance request - in the form of a work-around or patch on the hosted TCS
VoIP E9-1-1 platform where reasonable, necessary, and possible.

 

•                  Permanent
resolutions, provided to the customer in the form of a
provisioning/configuration change, procedural change, or where necessary, a
software update on the TCS VoIP E9-1-1 Service platform.

 

•                  Corrections
to documentation - in the case of defective documentation, TCS will offer page
updates for serious defects, otherwise the corrected documentation will be
offered in the next release.

 

•                  Reports
on the progress of the analysis and solutions to issues raised by the
assistance requests.

 

2.1                               Elements of TCS VoIP E9-1-1
Service

The following
table lists the elements in the service solution and who has ownership of each
of those elements.

 

	
  Element

  	
   

  	
  Description

  	
   

  	
  Owner

  
	
  VPC

  	
   

  	
  VoIP Positioning Center – provides the location and
  user information based on the URI in the SIP message.

  	
   

  	
  TCS

  
	
  SLDB

  	
   

  	
  Subscriber Location Database – location for all
  subscriber records.

  	
   

  	
  TCS

  
	
  ERDB

  	
   

  	
  Emergency Routing Database – holds information
  related to PSAP boundaries for call routing

  	
   

  	
  TCS

  
	
  SER

  	
   

  	
  SIP Express Router – provides the SIP proxy function
  front-ending the TCS VPC

  	
   

  	
  TCS

  
	
  ALI-Link

  	
   

  	
  A separate TCS service that is utilized to provide
  ALI connectivity for PSAP queries

  	
   

  	
  TCS

  
	
  VoIP Call Server

  	
   

  	
  The VoIP Call Server contains the logic for routing
  customer calls

  	
   

  	
  Vonage

  
	
  UA

  	
   

  	
  User Agent – The user agent is the device (hardware
  or software) that the end user uses to place calls

  	
   

  	
  Vonage

  
	
  ESGW

  	
   

  	
  Emergency Services Gateway – provides the access to
  the TDM network for passing calls to the appropriate Selective Router based
  on ESQK delivered from TCS VPC.

  	
   

  	
  Vonage

  
	
  Selective Router

  	
   

  	
  The Selective Router is typically owned by a LEC,
  but may also be owned by a private organization and is used to route calls to
  the appropriate PSAP.

  	
   

  	
  LEC or Private Party

  
	
  B2B

  	
   

  	
  The B2B interface is a TCS standard interface used
  to provision VoIP subscribers in near real time.

  	
   

  	
  TCS

  

 

3

 

	
  Connectivity to B2B

  	
   

  	
  XML based web service application. Connectivity is
  determined by customer requirements as long as interfaces for information
  exchange are built to the TCS ICD specifications

  	
   

  	
  Vonage (TCS will configure an endpoint and monitor)

  
	
  Connectivity for SIP Messaging

  	
   

  	
  SIP messaging for call signaling between the
  customer call server and the TCS VPC application. Connectivity is determined
  by customer requirements as long as interfaces for information exchange are
  built to the TCS ICD specifications

  	
   

  	
  Customer (TCS will configure an endpoint and
  monitor)

  
	
  Connectivity to Selective Router from ESGW

  	
   

  	
  This typically takes the form of an SS7 or MF type
  trunk

  	
   

  	
  Vonage

  
	
  Connectivity to PSAP from Selective Router

  	
   

  	
  A dedicated trunk to a PSAP

  	
   

  	
  LEC or Private Party

  
	
  ALI Database

  	
   

  	
  Database containing records that steer queries to
  TCS for VoIP calls

  	
   

  	
  LEC

  

 

3.                                       TCS
E9-1-1 Service Support

3.1                               General Service Support

The following
table lists the responsibilities between Vonage and TCS in support of the TCS
E9-1-1 VoIP Service.

 

	
  Description

  	
   

  	
  Vonage

  	
   

  	
  TCS

  
	
  Alarming/Monitoring

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1. Monitoring of
  the VoIP E9-1-1 Service platform including software and hardware components

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  2. 24x7x365
  monitoring of the TCS VoIP E9-1-1 Service

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  3. Major and
  minor alarm thresholds are monitored for the TCS VoIP E9-1-1 Service

  	
   

  	
   

  	
   

  	
  X

  
	
  Capacity/Redundancy

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1. Responsible for traffic management and capacity
  management of the TCS VoIP E9-1-1 Service components

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  2. TCS VoIP E9-1-1 Service built on a geo-redundant
  platform, uninterrupted power supply, on-site diesel generator, and network
  management system

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  3. Support for TBD Transactions per Second (TPS). A
  transaction usually refers to the location request by the PSAP on the VE2
  Interface. This number could potentially increase each year by approximately
  25%-50%.

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  4. Log Archiving to absorb all messaging with an
  initial rate of TBD TPS

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  5. Provisioning rate of 1 subscriber per second

  	
   

  	
   

  	
   

  	
  X

  
	
  Incident Management

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1. Assess anomaly and assign appropriate Service
  Incident Level

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  2. TCS will provide a technical resource to the
  bridge call within 20 minutes of an unplanned (Severity 1/Critical) event and
  will participate on the bridge call until that unplanned event is resolved

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  3. TCS must provide root cause analysis (RCA) on all
  unplanned (Severity 1/Critical) Events within ten (10) calendar days of any
  Event in a format that will be at TCS discretion

  	
   

  	
   

  	
   

  	
  X

  

 

4

 

	
   

  	
  4. If two (2) or more SIL 1 Events occur in any
  twelve (12) month period, TCS will provide to Vonage, within fifteen (15)
  days of written request, a remediation plan to Vonage indicating, in detail,
  what steps will be taken to remedy the cause of the Events. TCS will use its
  best efforts to comply with any suggestions or revisions to the Remediation
  Plan that Vonage provides, and must complete the work described in the
  Remediation Plan within fifteen (15) days. Concurrently, Vonage will use its
  best efforts to comply with any suggestions to or revisions in the
  Remediation Plan, which includes tasks suggested by TCS that Vonage is
  obligated to complete as part of those steps to remedy the cause of the
  Events.

  	
   

  	
  X

  	
   

  	
  X

  
	
   

  	
  5. Maintain a current network diagram for TCS
  Support Services use for troubleshooting efforts

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  6. Contact TCS to request Support Services in
  accordance with the contact information

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  7. Remedy any Defects that can be reasonably
  resolved by Vonage personnel

  	
   

  	
  X

  	
   

  	
   

  
	
  Maintenance / Upgrades

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1. TCS will provide a document describing the impact
  and nature of system reconfigurations, “change-outs”, and major software
  upgrades as provided in this SLA. Exceptions to this item are proactive
  system checks and hardware maintenance or other non-environmental change
  maintenance activities.

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  2. Provide timely notice to TCS of network
  environment changes that could affect TCS’s applications

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  3. Carry out the recommended operation, maintenance
  and development of the Software according to operational instructions
  provided to Vonage by TCS

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  4. Ensure that Vonage support personnel are
  sufficient in number and are of an adequate level of competence to support
  TCS VoIP E911

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  5. Ensure that Vonage’s employees, sub-contractors
  and suppliers do not use the Supported Services in breach of the terms of the
  License Agreement, to the extent that any such breach results in the
  provision of Support Services by TCS that would not otherwise have been
  required

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  6. A historical record of all subscriber information
  changes will be stored in an archive database. The operational system will
  contain the most recently provisioned address in the runtime database.

  	
   

  	
   

  	
   

  	
  X

  
	
  Meetings / Incident Tracking

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1. Host monthly meetings to discuss incident
  resolution

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  2. Participate in monthly meetings as described in
  section 3.3 above, with appropriate levels of authority and knowledge;

  	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  3. Keep a record of all incidents reported by
  customer

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
  4. Keep an operational logbook and record of Defects
  as part of Vonage’s NOC activities

  	
   

  	
  X

  	
   

  	
   

  

 

3.2                               Service Severity Level

TCS defines three service impairment levels (SILs), as
shown in Table 3.1. The SIL determines the responsibilities of the TCS NOC when
responding to an impairment which is within the systems or the service
parameters that are the obligation of TCS to provide under this Agreement.

 

For each SIL, TCS has a target resolution time, as
shown in Table 3.2. Typically, incidents are resolved within the target time.

 

5

 

Table
3.1:  SIL Definitions

 

	
  SIL 1

  	
   

  	
  SIL 2

  	
   

  	
  SIL 3

  
	
  High level
  of impact on service delivery. 

  Service degradation typically affecting 20% or more of Vonage’s subscribers,
  may be apparent to all or most external stakeholders, or may be chronic in
  nature.

  Also includes circumstances under which four (4) or more SIL 2 faults result
  from the same impairment within a consecutive thirty (30) day period.

  	
   

  	
  Service is
  suffering an unacceptable level of degradation but is not completely
  unavailable. Service degradation is apparent to external stakeholders.
  Typically, degradation is of a short duration, but demonstrates a trend
  toward failure to meet 99.999% availability standard.

  May involve a trend of SIL 3 events for a given system or process.

  	
   

  	
  Low level of
  impact on service delivery. Service degradation typically affects less than
  20% of Vonage’s subscribers and may or may not be apparent to some external
  stakeholders.

  

 

Table
3.2:  Target Incident Resolution Times

 

	
  SIL 1

  	
   

  	
  SIL 2

  	
   

  	
  SIL 3

  
	
  Two hours

  	
   

  	
  Four hours

  	
   

  	
  No more than
  seven business days

  

 

•             During any
Severity 1 incident, the TCS NOC will keep Vonage regularly informed about the
status of the activities and will provide assistance until the problem is
resolved or until the situation has been downgraded from a critical situation.
Vonage, assisted by TCS, will determine when the situation is no longer an
emergency.

 

•             The categorization of an event as SIL-1,
SIL-2 or SIL-3 shall be made by TCS based upon the definitions in Table 3.1,
and shall be communicated to Vonage as early as possible, based on the best
information available at the time. If Vonage disagrees with the categorization,
TCS will in good faith consider requests by Vonage to upgrade the service
impairment level where appropriate, and revise its target resolution times,
reports, notifications and escalation procedures accordingly if an upgrade is
mutually agreeable. For purposes of monthly fee adjustments for service
outages, if TCS and Vonage do not agree on the service impairment level of any
incident, the disagreement shall be resolved in the same manner as any other
dispute under the Agreement.

 

•             TCS will ensure that the response is by an
appropriately qualified technician.

 

6

 

3.3                               Adjustments for Service
Outages

TCS VoIP E9-1-1
service monthly recurring fee for the month in which an SIL 1 outage occurs and
continues for the total of all deployed PSAPs shall be adjusted by the
percentages on the chart below, depending on the duration of the SIL 1 outage:

 

	
  Duration of the SIL 1 Outage

  	
   

  	
  Adjustment
  of Monthly Fee

  
	
  More than two (2) hours but less than ten (10) hours

  	
   

  	
  * reduction

  
	
  More than ten (10) hours but less than sixteen (16)
  hours

  	
   

  	
  * reduction

  
	
  More than sixteen (16) but less than twenty- one
  (21) hours

  	
   

  	
  * reduction

  
	
  More than twenty-one (21) hours

  	
   

  	
  * reduction

  

 

Under no
circumstances shall the TCS monthly recurring fees be reduced for any service
outage by more than fifteen percent (15%).

 

Should TCS
adjustments for service outages be greater than 6% for more than four months in
any twelve month period, Vonage may elect to terminate Exhibit A to the MSA.

 

3.4                               Escalation and Notification
Procedures

At all times
during a service impairment, the TCS NOC follows established procedures to
resolve the impairment. The NOC’s responsibilities include creating and
updating the trouble ticket, managing escalation, and keeping all stakeholders
informed of progress.

 

TCS always
notifies the Vonage point of contact (based on the contact information provided
by Vonage) of a SIL 1 or 2 service impairment; the requirements for how and
when notification must occur depend on the SIL. Table 3.3 shows the
notification requirements.

 

Table
3.3:  Incident Notification Timeframes

 

	
  SIL 1

  	
   

  	
  SIL 2

  	
   

  	
  SIL-3

  
	
  Notification occurs as soon as possible but no
  longer than 30 minutes after incident identification. Subsequent updates
  occur hourly.

  	
   

  	
  Initial notification occurs as soon as possible but
  no longer than 1 hour after incident identification. Subsequent updates occur
  hourly.

  	
   

  	
  No routine notification. Weekly reports available
  upon request. Within forty-five (45) days of the Effective Date of this
  Exhibit A, all SIL-3 incident reports will be posted to the Axis reporting
  server.

  

 

TCS notifies
Vonage by email, using the most current contact information on file for Vonage.
All communications sent to Vonage by TCS include the TCS trouble ticket number.

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

 

7

 

The following
table lists contact information for the TCS Operations team. Typically, your
personnel will be communicating with TCS Tier I support personnel. In some
circumstances, other members of the TCS escalation team may contact your personnel.

 

Table
3.4:  Escalation Contact Information

 

	
  Support Tier

  	
   

  	
  Contact
  Name

  	
   

  	
  Phone
  and Email Information

  
	
  Network 

  Operations Center

  	
   

  	
  Network Operations Center (NOC)

  Systems and network monitoring

  24x7x365

  	
   

  	
  800-959-3749 toll-free

  NOC@telecomsys.com

  
	
  Network 

  Operations Center

  	
   

  	
  Cynthia Redding

  Supervisor

  Network Operations Center

  	
   

  	
  206-792-2336 office

  206-234-6664 mobile

  credding@telecomsys.com

  
	
  Network 

  Operations Center

  	
   

  	
  Marty Thawsh

  Supervisor

  Network Operations Center

  	
   

  	
  206-792-2240 office

  206-491-0577 mobile

  mthawsh@telecomsys.com

  
	
  Network 

  Operations Center

  	
   

  	
  Jeri Ginnaty

  Manager

  Network Operations Center

  	
   

  	
  206-792-2016 office

  206-940-0103 mobile

  jginnaty@telecomsys.com

  
	
  Operations

  	
   

  	
  Corinna Calhoun

  Director

  Technical Operations and Support

  	
   

  	
  206-792-2090 office

  206-276-1557 mobile

  ccalhoun@telecomsys.com

  
	
  Final Escalation Point

  	
   

  	
  Dan Allen

  Senior Vice President

  Operations

  	
   

  	
  206-792-2392 office

  206-669-1647 mobile

  dallen@telecomsys.com

  

 

3.5                               Reports and Meetings

Both parties will
hold operational review meetings on a monthly basis or as otherwise agreed
upon. The objective of operational review meetings is to inform Vonage
concerning TCS’s customer services organization, Vonage support organization as
to the progress of open Incidents and/or to discuss all items in order to
increase service quality. The TCS Project Manager will arrange these meetings
on a regular basis. Both parties have influence on the agenda items, but in
general, the following topics will be discussed:

 

•                  Organization
processes and organization changes (both parties);

 

•                  Progress
of Vonage’s open Incidents;

 

•                  Vonage’s
prioritization as to Top Five open incidents; and

 

•                  Vonage’s
planned (evening) maintenance/configuration activities which could possibly
affect TCS product performance.

 

TCS will provide
Vonage with a detailed preliminary Root Cause Analysis report about a Severity
One outage incident within ten (10) calendar days. The report will include, to
general information, the Response Time, the resolution time, a description of the
problem, and the detailed solution to the problem.

 

3.6                               Product Updates and Upgrades

Product Updates
and Upgrades include both unscheduled releases issued to resolve various
assistance requests, and scheduled releases as part of TCS’s product
development roadmap. TCS will provide continuing updates and 

 

8

 

 

upgrades – to
offer new features, incorporate new standards, and improve efficiency, as well
as fix the occasional bug on the TCS VoIP E9-1-1 platform to ensure the TCS
provided Services meet and exceed customer expectations and requirements. The
product updates and upgrades will be transparent to Vonage with no Service
impact.

 

TCS will provide
Vonage with details of the software corrections and functionality changes
contained in each major software release before installation of such Software
in the TCS network. Vonage’s application provider(s) will be provided
applicable updated [CDs/SDKs prior to scheduling any FOA activities. It is
Vonage’s responsibility to distribute the updated TCS’ ICDs/SDKs to Vonage’s
application provider(s). Minor upgrades and patches may be implemented by TCS
at any time, with 24 hour advance notification that the activity will be
occurring in TCS’s network. Emergency patches related to a necessary
restoration of service can be applied by TCS without advance notification to
our customers.

 

TCS will perform
end to end testing of all major Software releases related to the HXLP Hosted
Services prior to delivery to Vonage, to establish that such Software will have
no adverse effect upon the customer’s applications.

 

TCS will handle
all defects and problems relating to the implementation of New Software in
accordance with TCS obligations set out in this SLA.

 

3.7                               Patches and Minor Releases

Unscheduled
software releases can be issued as either a patch or a minor release. In
general, patches are issued as very limited code changes. If a service incident
is resolved through a patch, the patch will be incorporated in the next
scheduled release. Minor releases may be issued as unscheduled releases when a
service incident cannot be resolved through the patch process and the impact is
of sufficient severity to warrant an out-of-cycle code release. In general,
minor releases incorporate small changes in functionality and may add new
features, but do not fundamentally change the operation of the service.

 

3.8                               Scheduled Upgrade Releases

Software releases
are generally produced as scheduled roadmap releases. Major release upgrades
may result in a temporary loss of system and network redundancy within the HXLP
platform. Redundancy of systems and network will be restored immediately after
upgrades are proven complete and successful. Minimal service impacts could
occur at any time during the upgrade process, however, TCS will maintain the
99.999% annual uptime commitment consistent with TCS’s SLA. If service impacts
do occur, then outage will be in accordance with remedies outlined in 2.0.

 

3.9                               Vonage’s Responsibilities

In the course of
receiving Support Services, Vonage will:

 

•                  Provide
timely notice to TCS of Vonage network environment changes that could affect
TCS’s service

 

•                  Contact
TCS NOC to report service impairments in accordance with notification
requirements contained in Section 3.3.

 

•                  Be
responsible for 3rd party application provider’s certification for
new software releases

 

•                  Be
responsible for calibration and integrity of the BSA

 

9

 

Exhibit A to Master Services Agreement

 

Attachment 2 - Billing

 

1.1.         VoIP i2 E9-1-1 Service

 

Initial billing for 50% of the Trial Fee set forth
below has already occurred under the Letter Agreement. Upon completion of
Milestone #9, the remaining balance of the Trial Fee will be due and payable.

 

In 2005, billing will be at a flat rate. Invoices
against the flat rate will be prorated across the number of months
remaining in the year at the time of contract signing such that the total
amount of the flat rate will be fully invoiced by December 2005.

 

In 2006, billing will be based upon the total number
of unique telephone numbers provisioned in TCS’ database within a given billing
period, regardless of how long the record is active or the number of changes
made. A unique telephone number is one that was active for any period of time
during a month.

 

Billing for the 2005 flat rate will commence
immediately upon contract signing. Invoices will be provided which will include
the number of subscribers being billed each calendar month. Vonage may, at
their discretion, request a periodic review of the actual subscribers included.

 

Telephone numbers used for testing purposes will be
excluded.

 

1.1.1.      VoIP i2 E9-1-1 Pricing

 

	
  Item

  	
   

  	
  Price

  	
   

  
	
  Trial Fee

  	
   

  	
  $*.

  	
   

  
	
  2005 Flat Rate Includes VPC call processing and TCS
  deployment services through 12/31/2005

  	
   

  	
  $*.

  	
   

  
	
  2006 - 2008 Monthly Recurring Fee

  	
   

  	
  Subscriber
  based:

  Up to 1,000,000 subs. = $*/month

  Up to 1,500,000 subs. = $*/month

  Up to 2,000,000 subs. = $*/month

  Up to 2,500,000 subs. = $*/month

  Up to 3,000,000 subs. = $*/month

  Up to 4,000,000 subs. = $*/month

  Over 4,000,000 subs. = $*/month

  	
   

  

 

Notes:

 

1.
Minimum monthly fee in 2006 for the Monthly Recurring Fee set forth above is $*.

 

2.
Minimum monthly fee in 2007 for the Monthly Recurring Fee set forth above is $*.

 

3.
Minimum monthly fee in 2008 for the Monthly Recurring Fee set forth above is $*.

 

4. Trial
Fee is billable in accordance with the letter agreement between Vonage and TCS
with an Effective Date of May 31, 2005.

 

5. Unless
otherwise expressly agreed in writing, no rights with respect to intellectual
property are granted by either party to the other party.

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

1

 

 

 

1.2.         Operator Routing Support Service

 

See Exhibit B to the MSA
for pricing and billing.

 

1.3.         On Site Project Manager

 

See Exhibit C to the MSA
for pricing and billing

 

1.4.         Deployment Schedule

 

All pricing for this Exhibit A assume PSAP deployments
at a rate not to exceed 500 per month. With regard to the references in
paragraph 4.9 of Exhibit A, TCS estimates that the price for accelerating
deployments in quantities greater than 500 per month can be accomplished at a
rate of approximately $1,000 - $1,500 per PSAP.

 

1.5.         Performance Bonus for Deployment Activities

 

The schedule to be used for this section will be
created upon completion/finalization of the deployment schedule (see section
4.8 of Exhibit A)

 

Based on the availability of PSAPs to deploy at the
beginning of a month, TCS will guarantee the deployment (a deployment is
defined when the PSAP is live with the TCS i2 E9-1-1 solution) of the target
numbers of PSAPs according to the mutually agreed timetable to be developed in
accordance with Section 4.8. PSAPs that refuse VoIP
service or otherwise inhibit deployment will be excluded from the counts.

 

SAMPLE
DEPLOYMENT SCHEDULE

 

	
  Month

  	
   

  	
  Target PSAP

  Deployments

  	
   

  
	
  August

  	
   

  	
  500

  	
   

  
	
  September

  	
   

  	
  500

  	
   

  
	
  October

  	
   

  	
  500

  	
   

  
	
  November

  	
   

  	
  500

  	
   

  
	
  December

  	
   

  	
  500

  	
   

  
	
  2005 Total

  	
   

  	
  2500

  	
   

  

 

1.5.1.      Performance Bonus

 

The schedule to be used for this section will be
created upon completion/finalization of the deployment schedule (see section
4.8 of Exhibit A)

 

Meeting the deployment numbers outlined in the final
agreed upon Deployment Schedule will be the baseline achievement commitment for
TCS. 2005 pricing is based on staffing required to deploy not more than 500
PSAPs per month. Should the number of PSAPs notifying TCS of their availability
to be deployed for VoIP E9-1-1 service exceed 500 per month, TCS will be
prepared to meet the increase in demand to enable additional deployments upon
mutual agreement with Vonage.

 

 

 

2

 

 

	
  Month

  	
   

  	
  Target PSAP Deployments

  	
   

  	
  Actual

  	
   

  	
  Bonus

  	
   

  	
  Actual

  	
   

  	
  Additional Bonus

  	
   

  
	
  August

  	
   

  	
  500

  	
   

  	
  600

  	
   

  	
  $

  	
  *

  	
   

  	
  750

  	
   

  	
  $

  	
  *

  	
   

  
	
  September

  	
   

  	
  500

  	
   

  	
  600

  	
   

  	
  $

  	
  *

  	
   

  	
  750

  	
   

  	
  $

  	
  *

  	
   

  
	
  October

  	
   

  	
  500

  	
   

  	
  600

  	
   

  	
  $

  	
  *

  	
   

  	
  750

  	
   

  	
  $

  	
  *

  	
   

  
	
  November

  	
   

  	
  500

  	
   

  	
  600

  	
   

  	
  $

  	
  *

  	
   

  	
  750

  	
   

  	
  $

  	
  *

  	
   

  
	
  December

  	
   

  	
  500

  	
   

  	
  600

  	
   

  	
  $

  	
  *

  	
   

  	
  750

  	
   

  	
  $

  	
  *

  	
   

  
	
  2005 Total

  	
   

  	
  2500

  	
   

  	
  3,000

  	
   

  	
  $

  	
  *

  	
   

  	
  3750

  	
   

  	
  $

  	
  *

  	
   

  

 

For each month the bonus
is cumulative. For example, if TCS delivers 630 PSAPs in August, a $* bonus is
awarded. If TCS delivers 750 PSAPs in August a $* is awarded. The maximum
performance bonus potential under this example schedule is $*.

 

1.5.2.      Failure to Perform Penalty

 

The schedule to be used
for this section will be created upon completion/finalization of the Deployment
Schedule (see section 4.8 of Exhibit A)

 

For a given month, if the
average daily number of PSAPs that are available to be deployed is greater than
or equal to the target PSAP deployments mutually agreed to in the final
Deployment Schedule, then TCS shall be penalized according a schedule to be
mutually agreed to which is similar to the following schedule. For example, if
TCS only deploys 50% of the target PSAP deployments where there were there were
sufficient quantities of PSAPs available to be deployed, TCS would forfeit $*
in fees (based on $* flat service fee for 6 months (July through December) in
2005.

 

	
  Month

  	
   

  	
  Target

  Deployments

  	
   

  	
  Actual

  Deployments

  	
   

  	
  Penalty

  	
   

  	
  Actual

  Deployments

  	
   

  	
  Penalty

  	
   

  	
  Actual

  Deployments

  	
   

  	
  Penalty

  	
   

  
	
  August

  	
   

  	
  500

  	
   

  	
  <400

  	
   

  	
  $

  	
  *

  	
   

  	
  <250

  	
   

  	
  $

  	
  *

  	
   

  	
  <125

  	
   

  	
  $

  	
  *

  	
   

  
	
  September

  	
   

  	
  500

  	
   

  	
  <400

  	
   

  	
  $

  	
  *

  	
   

  	
  <250

  	
   

  	
  $

  	
  *

  	
   

  	
  <125

  	
   

  	
  $

  	
  *

  	
   

  
	
  October

  	
   

  	
  500

  	
   

  	
  <400

  	
   

  	
  $

  	
  *

  	
   

  	
  <250

  	
   

  	
  $

  	
  *

  	
   

  	
  <125

  	
   

  	
  $

  	
  *

  	
   

  
	
  November

  	
   

  	
  500

  	
   

  	
  <400

  	
   

  	
  $

  	
  *

  	
   

  	
  <250

  	
   

  	
  $

  	
  *

  	
   

  	
  <125

  	
   

  	
  $

  	
  *

  	
   

  
	
  December

  	
   

  	
  500

  	
   

  	
  <400

  	
   

  	
  $

  	
  *

  	
   

  	
  <250

  	
   

  	
  $

  	
  *

  	
   

  	
  <125

  	
   

  	
  $

  	
  *

  	
   

  

 

The maximum penalty
potential under this schedule is $*. If 80% of the maximum penalty is achieved
($*), Vonage reserves the right to terminate the remainder of this Statement of
Work without penalty.

 

Since TCS will be staffed
to achieve targets, no penalties shall be assessed if the number of PSAPs that
are available to be deployed is less than the target PSAP deployments for reasons
outside TCS’ control. For example if only 200 PSAPs are available to deploy in
August, TCS shall adjust the Target to 200.

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

3

 

 

TeleCommunication Systems, Inc.

Western Office

2401 Elliott Avenue, Second Floor

Seattle, WA 98121

Phone 206-792-2000

Fax 206-792-2051

www.telecomsys.com

 

 

[LOGO]

 

TCS VoIP i1 9-1-1 Statement of Work
     Set up Operator Routing
Support Service

For Vonage Network Inc.

 

EXHIBIT B TO MASTER SALES AGREEMENT

 

6/8/05

 

 

CONFIDENTIAL &
PROPRIETARY

Limited Distribution to Authorized Persons Only

Created 2005 and Protected as an Unpublished Work

Under the US Copyright Act of 1976.

Certain Portions Copyright © 2005 Telecommunication Systems Inc 

All Rights Reserved.

 

 

	
  VoIP
  Exhibit A SOW TEMPLATE

  	
   

  	
  Copyright © 2005 TeleCommunication
  Systems, Inc. All rights reserved.

  
	
   

  	
   

  	
  Confidential and Proprietary

  

 

1

 

Table of Contents

 

	
   

  	
  Page

  
	
  Introduction

  	
   

  	
  3

  
	
  VoIP E9-1-1
  Technical Service Overview

  	
  3

  
	
   

  	
  1.1

  	
  Technical
  Service Overview

  	
  3

  
	
   

  	
  1.2

  	
  TCS’ VoIP E9-1-1
  Service Components

  	
  3

  
	
   

  	
  1.3

  	
  Vonage VoIP
  E9-1-1 System Components

  	
  3

  
	
   

  	
  1.4

  	
  General Service
  Specification

  	
  3

  
	
   

  	
   

  	
  1.4.1

  	
  Connectivity

  	
  3

  
	
   

  	
   

  	
  1.4.2

  	
  Subscriber
  Provisioning

  	
  4

  
	
   

  	
   

  	
  1.4.3

  	
  Subscriber
  Location Information Validation

  	
  4

  
	
   

  	
   

  	
  1.4.4

  	
  Subscriber
  Location Database

  	
  4

  
	
   

  	
   

  	
  1.4.5

  	
  Call Signaling

  	
  4

  
	
   

  	
   

  	
  1.4.6

  	
  Operator Routing
  Support Service

  	
  4

  
	
   

  	
   

  	
  1.4.7

  	
  Service
  Confirmation

  	
  4

  
	
   

  	
   

  	
  1.4.8

  	
  Reporting

  	
  5

  
	
   

  	
  1.5

  	
  i1 Service
  Specification

  	
  5

  
	
   

  	
   

  	
  1.5.1

  	
  Interim Call
  Routing

  	
  5

  
	
   

  	
   

  	
  1.5.2

  	
  Call Routing

  	
  5

  
	
   

  	
   

  	
  1.5.3

  	
  Call Delivery

  	
  5

  
	
   

  	
   

  	
  1.5.4

  	
  Data Delivery

  	
  5

  
	
   

  	
   

  	
  1.5.5

  	
  Default Routing

  	
  6

  
	
   

  	
  1.6

  	
   

  	
  i2 Service
  Specification

  	
  6

  
	
  VoIP E9-1-1
  Program Management Overview

  	
  6

  
	
  TCS VoIP
  E9-1-1—Operational Services Overview

  	
  7

  
	
   

  	
  1.7

  	
  Facilities

  	
  7

  
	
   

  	
   

  	
  1.7.1

  	
  Data Centers

  	
  7

  
	
   

  	
   

  	
  1.7.2

  	
  Network
  Operations Centers

  	
  7

  
	
   

  	
   

  	
  1.7.3

  	
  Technical
  Support

  	
  8

  
	
   

  	
   

  	
  1.7.4

  	
  Monitoring

  	
  8

  
	
   

  	
   

  	
  1.7.5

  	
  Data Maintenance

  	
  8

  
	
  Billing

  	
   

  	
   

  	
  9

  
	
  AGREED:

  	
   

  	
   

  	
  11

  

 

2

 

Introduction

 

This
document explains how the TCS VoIP i1 9-1-1 Service to be provided by
TeleCommunication Systems, Inc. (“TCS”) to Vonage Network Inc. (“Vonage”
or “Customer”) works from a technical, deployment, and operational perspective.
This document is Exhibit B to the Master Sales Agreement between TCS and
Vonage dated June 8, 2005.

 

This
Statement of Work is limited to those activities to set up and test the ORSS
service to support i1 9-1-1 calls.

 

VoIP
E9-1-1 Technical Service Overview

 

This section outlines
the technical scope of the TCS VoIP E9-1-1 service. It defines the scope of
responsibility for TCS and Vonage.

 

1.1                                 Technical
Service Overview

 

TCS
will provide i1 call routing to Vonage. This SOW is limited to the set up and
testing of that service with the ORSS.

 

1.2                                 TCS’
VoIP E9-1-1 Service Components

 

TCS provides the
following components as part of its solution:

 

	
  Component

  	
   

  	
  Description

  
	
  Bulk
  Provisioning Interface

  	
   

  	
  The
  TCS Bulk interface currently supports address validation and provisioning.

  
	
  Validation
  Database (VDB)

  	
   

  	
  Provides
  a validation interface to the SLDB using GIS layer data. The VDB provides
  both civic data validation.

  
	
  Emergency
  Routing Database (ERDB)

  	
   

  	
  Identifies
  the Emergency Services Number (ESN), ESQK Pool, Selective Router, and
  Contingency Routing Number (The 10-digit, PSAP 7x24 emergency number; used if
  call cannot be routed through the selective router).

  
	
  Operator
  Routing Support Service (ORSS)

  	
   

  	
  If
  a VoIP provider chooses TCS ORSS service, calls that the VPC cannot
  automatically route to a PSAP will be answered by a call taker and
  transferred to the appropriate PSAP or first responder.
                                         
  ORSS available June 30,
  2005

  
	
  Reporting
  Web

  	
   

  	
  A
  secure, customer-facing web-based reporting interface.

  

 

1.3                                 Vonage
VoIP E9-1-1 System Components

 

To complete the solution,
Vonage must provide the following components:

 

	
  Component

  	
   

  	
  Description

  
	
  9-1-1
  Call/Proxy Server (Soft Switch):

  	
   

  	
  Interacts
  with VPC to obtain and interpret location-based call routing instructions.

  
	
  Emergency
  Services Gateway (ESGW):

  	
   

  	
  Routes
  9-1-1 calls to the Selective Router via trunks between ESGW and Selective
  Routers

  

 

1.4                                 General
Service Specification

 

1.4.1                        Connectivity

 

A VPN
solution will be used for the ORSS IOT.

 

3

 

1.4.2                        Subscriber
Provisioning

 

Subscriber
provisioning will be done via a batch import, whereby Vonage supplies TCS with
a csv or MS excel formatted file containing subscriber records to be used for
testing.

 

1.4.3                        Subscriber
Location Information Validation

 

Subscriber
address information will be validated in real-time prior to entry into the TCS
SLDB.

 

1.4.4                        Subscriber
Location Database

 

TCS
will support subscriber provisioning through a Bulk Provisioning Interface. Vonage
shall provide subscriber data in the format defined in the TCS Service Bureau
Bulk Subscriber Provisioning Interface Control Document.

 

1.4.5                        Call
Signaling

 

OUT OF
SCOPE

 

1.4.6                        Operator
Routing Support Service

 

As part of
the Service to be provided under this SOW, TCS strives to eliminate the
circumstances in which a Vonage VoIP 9-1-1 caller is directed to a recording. Pursuant
to this SOW, calls that the VPC cannot automatically route to a PSAP will be
answered by a TCS call taker and transferred to the appropriate PSAP or first
responder.

 

If the subscriber is unprovisioned (i.e., has not
registered its location information and subscribed to Vonage’s 911 service),
the call taker will determine the caller’s location and direct the call to the
correct PSAP. If the PSAP refuses calls, the call taker brokers the call either
to the PSAP or directly to the appropriate responder.

 

 

4

 

1.4.7                        Service Confirmation

 

OUT OF
SCOPE

 

1.4.8                        Reporting

 

OUT OF
SCOPE

 

1.5                                 i1
Service Specification

 

TCS
will provide Vonage a custom i1 solution whereby all i1 calls route to the ORSS.
The ORSS will confirm the caller’s location and route the call to the
appropriate PSAP.

 

1.5.1                        Interim
Call Routing

 

	
  TCS

  	
   

  	
  Vonage

  
	
  •                  Provides ORSS
  for VoIP 9-1-1 service for calls within the United States and Canada.

  •                  Provides
  multiple 10-digit 24x7 PSAP emergency numbers for routing the call.

  	
   

  	
  •                  Directly
  routes 9-1-1 calls from Soft-switch to ORSS

  

 

1.5.2                        Call
Routing

 

	
  TCS

  	
   

  	
  Vonage

  
	
  •                  Provides VoIP
  E9-1-1 service for calls within the United States and Canada.

  •                  Provides a
  10-digit 24x7 PSAP emergency number for routing the call.

  	
   

  	
  •                  Provides the
  call connectivity access to the PSTN.

  •                  a
  Provides softswitch with PSTN access.

  

 

1.5.3                        Call
Delivery

 

	
  TCS/ ORSS

  	
   

  	
  Vonage

  
	
  •                  Confirms
  caller address

  •                  Identifies the
  type of emergency

  •                  Identifies the
  appropriate PSAP/ 1st Responder to handle the call

  •                  Contacts the
  PSAP/ 1st responder

  •                  Confirms call
  acceptance and drops from the call

  •                  Documents call
  status

  	
   

  	
  •                  Routes call
  via PSTN to the 10-digit number for the ORSS

   

  •                  Establishes
  and maintains dedicated trunking between softswitch and PSTN.

  

 

5

 

1.5.4                        Data Delivery

 

	
  TCS

  	
   

  	
  Vonage

  
	
  •                  Stages records
  in TCS database for reporting and billing purposes.

  	
   

  	
   

  

 

1.5.5                        Default
Routing

 

As
with all i1 calls, in the event that TCS receives a subscriber telephone number
that is not in the SLDB, TCS will provides a 10-digit 24x7 ORSS number for
routing the call. The ORSS will have the ability to validate the caller’s
address and correlate that location to the most appropriate PSAP for handling
the call.

 

1.6                                 i2
Service Specification

 

OUT OF
SCOPE

 

VoIP
E9-1-1 Program Management Overview

 

When deploying TCS’ VoIP
E9-1-1 solution, TCS provides project management, technical integration
services, and data provisioning services. Throughout this process, TCS works
closely with the VoIP provider’s team, PSAPs, and LECs.

 

Project management
continues throughout the initial deployment process and is handled by a
deployment manager. The project manager guides the VoIP provider through the
VoIP E9-1-1 deployment and coordinates activities with all parties, including
the LEC, PSAP, and the ALI database provider, from pre-kickoff to testing, to
go live.

 

Data provisioning
services begin as soon as the VoIP provider signs up. Data from the VoIP
provider, the LEC’s selective router, the wireline ALI database, and the VPC
must be provisioned to allow the PSAP to receive the proper data in the
expected fields when an E9-1-1 call is delivered.

 

	
  Event

  	
   

  	
  TCS

  	
   

  	
  Vonage

  
	
  Kickoff meeting

  	
   

  	
  •                  Scope

  •                  Resources

  •                  POC

  •                  Coordinate
  meeting with all required parties

  •                  Establish
  integration schedule

  	
   

  	
  •                  Attend meeting

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Test Connectivity between Vonage and TCS

  	
   

  	
  •                  Test IP
  connectivity with Vonage

  	
   

  	
  •                  Provide data
  necessary for IP connectivity over the internet

  •                  Provide test
  personnel as required

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ORSS Deployment

  	
   

  	
  •                  Test
  connectivity

  •                  Deploy
  solution to support call service

  •                  Schedule test
  calls and provide 

  	
   

  	
   

  

 

6

 

 

	
   

  	
   

  	
  conference bridge

  •                  Conduct Test
  Calls

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Testing

  	
   

  	
  •                  Schedule testing
  with all parties

  •                  Oversee
  testing and troubleshooting

  	
   

  	
  •                  Provide test
  personnel

  •                  Provide
  subscriber data

  •                  Assist in
  troubleshooting

  •                  Provide
  resources for acceptance testing

  

 

 

TCS VoIP
E9-1-1—Operational Services Overview

 

TCS provides carriers
with continuous availability of systems, seven days a week, 365 days a year. Using
highly available facilities to maintain the high standards necessary for
emergency services, TCS follows detailed provisioning and operations procedures
to maintain network integrity. TCS designs, builds, and provisions its systems
to be reliable, highly available, auto aware, and fault resilient. TCS
Operations builds and monitors its systems in a production environment.

This section provides an overview of TCS
facilities, and describes the connectivity, monitoring, incident management,
change control, and reporting that occurs within Operations.

 

1.7                                 Facilities

 

TCS
operates highly available data centers and two network operations centers.

 

1.7.1                        Data
Centers

 

TCS
has two data centers, located in Seattle, Washington, and Phoenix, Arizona;
each is equipped with the same software and hardware. Each has secure,
monitored access, an uninterruptible power supply, an on-site diesel generator,
redundant systems, and network management servers. Each physically mirrors the
other, so staff can quickly locate and access cabling and equipment in the
event of an emergency.

 

All
critical power systems are backed up by an uninterruptible power supply (UPS).

 

If the
data center electrical load is interrupted, the UPS assumes the load during the
brief time needed for the automatic transfer switch (ATS) to transfer the load
to the generator.

 

Both
data centers are protected by two fire suppression systems, the Inergen inert
gas system, and a water sprinkler system.

 

1.7.2                        Network
Operations Centers

 

TCS
maintains two Network Operations Centers (NOCs), located in Seattle,
Washington, and Annapolis, Maryland. The Seattle facility monitors all system
events 24 hours a day, 365 days a year. The Annapolis facility serves as a
backup.

 

The
NOC is responsible for identification, troubleshooting, internal and external
notification of incidents, incident management, and problem resolution.

 

7

 

Every
call event, including call origination, call completion, call control messages,
data translations, and ALI database data delivery, is tracked.

 

NOC
tools are designed and implemented in a geo-redundant manner visible from
Seattle and Annapolis. Staff in both locations are trained to monitor and
troubleshoot the E9-1-1 production systems and networks.

 

A comprehensive disaster recovery plan is in place
that details procedures, processes, and training. In the event of a
catastrophic failure in the Seattle NOC, the Annapolis NOC provides backup and
resumes operation of the system as the primary NOC.

 

1.7.3                        Technical
Support

 

A
resource will be identified to handle support issues during the ORSS IOT.

 

1.7.4                        Monitoring

 

OUT OF
SCOPE

 

1.7.5                        Data
Maintenance

 

Data
and data relationships are a critical part of the TCS E9-1-1 Service.

 

Two
unique data sets are necessary for service delivery—described below—each
require specific data maintenance processes. TCS ensures data integrity on all
four data sets, as well as performs back-up procedures on all databases.

 

	
  Data Set

  	
   

  	
  Description

  
	
  PSAP
  Data Maintenance

  	
   

  	
  TCS
  maintains an extensive PSAP database for the purpose of deploying and
  operating VoIP E9-1-1 services. The database includes contact, technical
  infrastructure, and boundary information for each PSAP in the United States.
  This information can change after a PSAP is receiving VoIP E9-1-1 services
  and periodically changes due to political or restructuring events. TCS
  maintains the PSAP database and incorporates changes to the data. TCS
  coordinates any changes that may impact an operational VoIP E9-1-1
  system with the VoIP carrier and PSAP.

  
	
  Mapping
  Services

  	
   

  	
  The
  TCS Geographical Information Systems (GIS) department creates maps that
  represent the data maintained by TCS. TCS maintains all the data and systems
  required to ensure that the geographical information systems will be
  accurate. As with the underlying data source, all GIS data is kept strictly
  confidential, secure, and proprietary.

  

 

8

 

 

Billing

 

	
  Term of Service:

  	
   

  	
  1 year

  
	
   

  	
   

  	
   

  
	
  Set Up Fee:

  	
   

  	
  $*

  
	
   

  	
   

  	
   

  
	
  Monthly Recurring Fee

  	
   

  	
  Daily Bucket Amount selected by Customer from among
  the following

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  100 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  200 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  300 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  400 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  500 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  600 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  700 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  800 calls per day:

  	
  $

  	
  */month

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vonage Initial Daily Bucket Amount is 400 calls per
  day.

  
	
   

  	
   

  	
   

  
	
  Bucket Overage Penalty

  	
   

  	
  20% per call prorated on a cost per call basis based
  on the currently subscribed bucket amount and 30 days per month (for example,
  the bucket amount for 400 calls per day equates to $* per call; penalty price
  per call equals $* * 1.2 = $* per call; thus 410 calls in a day would result
  in 10 additional calls billed at $* per call or $* penalty for the day).

  
	
   

  	
   

  	
   

  
	
  Change Fee

  	
   

  	
  For every increase in the bucket amount requested by
  Customer, $* per 100 calls per day (no charge for increases requested before June 10,
  2005).

  No fee for reducing the bucket amount

  
	
   

  	
   

  	
   

  
	
  Ramp-up Period Fees

  	
   

  	
  From June 15, 2005 through June 30, 2005 the cost
  per call will be $* and the Daily Bucket Amount will not apply.

  An additional set up fee of $* will be charged for this period.

  
	
  Payment Terms:

  	
   

  	
  Net 30 days

  
	
   

  	
   

  	
   

  
	
  Service Availability:

  	
   

  	
  I-1 Call Flow with ORSS as per the Vonage Statement
  of Work: TCS i1 VoIP 9-1-1 Service For Vonage

  
	
  Acceptance criteria:

  	
   

  	
  In accordance with Article 4 of the Master
  Sales Agreement.

  

 

	
   

  	
   

  	
   

  
	
  Milestones for Service Launch:

  	
   

  	
   

  
	
   

  	
   

  	
  Milestone

  	
   

  	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
  Contract Signing

  	
   

  	
  6/8/2005

  	
   

  	
   

  

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

9

 

	
  Milestones for Service Launch:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Milestone

  	
   

  	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
  Contract Signing

  	
   

  	
  6/8/2005

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Master Services Agreement Signoff

  	
   

  	
  6/8/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Operator Routing Support Service Interoperability
  Testing SOW signoff

  	
   

  	
  6/8/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Determine ORSS market roll-out schedule

  	
   

  	
  6/10/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TCS to establish ramp-up feasibility, scope and schedule leading
  to launch

  	
   

  	
  6/10/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vonage to choose Daily Bucket Amount for July 1
  Launch

  	
   

  	
  6/10/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TCS provide DIDs for 9-1-1 ORSS call routing

  	
   

  	
  6/15/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Establish interim i1 call routing from Vonage to
  ORSS

  	
   

  	
  6/13/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Receive completed SoftSwitch configuration form

  	
   

  	
  6/15/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Resolve general connectivity issues

  	
   

  	
  6/15/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Integrate Soft Switch with TCS Network

  	
   

  	
  6/15/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Acquire Test numbers from carrier

  	
   

  	
  6/15/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Acquire Test phone from carrier

  	
   

  	
  6/15/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Develop IOT Plan

  	
   

  	
  6/17/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Deploy ORSS Tools

  	
   

  	
  6/24/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Train Users

  	
   

  	
  6/29/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IOT execution

  	
   

  	
  6/30/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notify customer of IOT completion and “service
  readiness”

  	
   

  	
  6/30/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Establish final i1 call routing from Vonage to TCS
  to ORSS

  	
   

  	
  7/1/05

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ORSS available for Vonage selected Daily Call Bucket

  	
   

  	
  7/1/05

  	
   

  	
   

  

 

Notes:

 

10

 

1.                                      This
Work Order is in accordance with Master Sales Agreement between
TeleCommunication Systems, Inc. (“TCS”) and Vonage Network Inc. (“Vonage”
or “Customer”) dated June 8, 2005, and constitutes Exhibit B thereto.

2.                                      Unless
otherwise expressly agreed in writing, no rights with respect to intellectual
property are granted by either Party to the other Party

3.                                      Vonage
is responsible for all connectivity charges between TCS and Vonage.

 

AGREED:

 

	
  TeleCommunication Systems, Inc.

  	
  CUSTOMER

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Richard A. Young 

  	
   

  	
  By:

  	
   

  	
  /s/ John S. Rego 

  	
   

  
	
  Signature

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Richard A. Young 

  	
   

  	
   

  	
  John S. Rego 

  	
   

  
	
  Name

  	
  Name

  
	
   

  	
   

  
	
   

  	
  Exec. VP & COO 

  	
   

  	
   

  	
  CFO 

  	
   

  
	
  Title

  	
  Title

  
	
   

  	
   

  
	
   

  	
  June 8, 2005 

  	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  
												

 

11

 

	
  TeleCommunication
  Systems, Inc.

  
	
  Western
  Office

  
	
  2401
  Elliott Avenue, Second Floor

  
	
  Seattle,
  WA 98121

  
	
  Phone
  206-792-2000

  
	
  Fax
  206-792-2051

  
	
  www.telecomsys.com

  

 

	
   

  	
  TeleCommunication

  
	
   

  	
  Systems

  
	
   

  	
  Enabling Convergent Technologies®

  

 

	
  TCS VoIP i1 9-1-1 Statement of
  Work

  
	
  Onsite Project Manager Work
  Order

  
	
  For Vonage Network Inc.

  

 

EXHIBIT C TO MASTER SALES AGREEMENT

 

6/23/05

 

 

	
  CONFIDENTIAL & PROPRIETARY

  Limited Distribution to Authorized Persons Only

  Created 2005 and Protected as an Unpublished Work

  Under the US Copyright Act of 1976.

  Certain Portions Copyright © 2005 Telecommunication Systems Inc

  All Rights Reserved.

  

 

1

 

	
  Contents

  	
   

  	
   

  
	
   

  	
   

  
	
  1.

  	
  INTRODUCTION

  	
  3

  
	
  2.

  	
  VOIP E9-1-1 PROGRAM MANAGEMENT OVERVIEW

  	
  3

  
	
  3.

  	
  SCHEDULE OF TASKS

  	
  4

  
	
  4.

  	
  ROLES AND RESPONSIBILITIES

  	
  5

  
	
   

  	
  4.1

  	
  TCS ONSITE PROJECT MANAGER

  	
  5

  
	
   

  	
  4.2

  	
  VONAGE

  	
  5

  
	
  5.

  	
  BILLING

  	
  5

  

 

2

 

1.                                      Introduction

 

This document is Exhibit C to the Master Sales
Agreement between TCS and Vonage dated June 8, 2005. This Statement of Work
describes the roles and responsibilities of the Onsite Project Manager.

 

2.                                      VoIP E9-1-1 Program Management Overview

 

When deploying TCS’ VoIP E9-1-1 solution, TCS will
provide on-site project management, technical integration services, and data
provisioning services pursuant to this Statement of Work at office facilities
to be provided by Vonage. Throughout this process, TCS will work closely with
the Vonage team, PSAPs, and LECs.

 

Services included in the charges for this Exhibit (as
more specifically set forth below) are as follows:

 

1.                                       TCS
will guide Vonage through the VoIP E9-1-1 deployment and will coordinate
activities with all parties, including the Third Party Call Delivery Provider
(e.g. CLEC), LEC, PSAP, and the ALI database provider, from pre-kickoff to
testing, to go live.

 

2.                                       Manage
the process whereby TCS will provide data provisioning services (under a
separate Statement of Work/Work Order) which will process data from Vonage, the
LEC’s selective router, the wireline ALI database, and the VPC in such a manner
as to allow the PSAP to receive the proper data in the expected fields when an
E9-1-1 call is delivered.

 

The Services described above will continue throughout
the term set forth below and will be performed by a TCS-employed project
manager (the “Onsite Project Manager”), who will deploy TCS resources as
reasonably appropriate to accomplish these tasks. The Onsite Project Manager
shall not be deemed to be an employee of Vonage for any purpose. The Onsite
Project Manager’s efforts will be devoted full time to the services to be
provided under this Exhibit and will be performed within Vonage’s premises,
except to the extent requested or approved by Vonage. For the avoidance of
doubt, TCS shall be solely responsible for the Onsite Project Manager’s
employment and related compensation, benefits and taxes, and for maintaining
worker’s compensation and other employment-related insurance.

 

TCS has designated Lynne Fleck to serve as the Onsite
Project Manager for this effort. Except for circumstances outside the control
of TCS, Ms. Fleck shall not be removed from the project or otherwise reassigned
without the written approval of Vonage, which may be withheld in Vonage’s sole
discretion. If circumstances arise which are outside the control of TCS that
result in Ms. Fleck not being able to continue to serve as the Onsite Project
Manager, TCS agrees to assign a substitute project manager who possesses
qualifications and experience similar to those offered by Ms. Fleck, subject to
the reasonable approval of Vonage.

 

TCS warrants that all services provided hereunder will
be performed in a professional, workmanlike manner and in accordance with
industry standards for such services.

 

3

 

3.             Schedule of Tasks

 

	
  Event

  	
   

  	
  TCS

  	
   

  	
  Vonage

  
	
  Kickoff meeting

  	
   

  	
  o

  	
  Scope  

  	
   

  	
  o

  	
  Attend meeting

  
	
   

  
	
  o

  	
  Resources  

  
	
   

  
	
  o

  	
  POC  

  
	
   

  
	
  o

  	
  Coordinate meeting with
  all required parties  

  
	
   

  	
   

  
	
  o

  	
  Establish integration
  schedule

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Test Connectivity between
  Vonage and TCS

  	
   

  	
  o

  	
  Test IP connectivity with
  Vonage

  	
   

  	
  o

  	
  Provide data necessary for
  IP connectivity over the internet

  
	
  o

  	
  Provide test personnel as

  required

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ORSS Deployment

  	
   

  	
  o

  	
  Test connectivity  

  	
   

  	
   

  
	
   

  	
   

  
	
  o

  	
  Deploy solution to support
  call service  

  
	
   

  	
   

  
	
  o

  	
  Schedule test calls and
  provide conference bridge  

  
	
   

  	
   

  
	
  o

  	
  Conduct Test Calls

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Testing

  	
   

  	
  o

  	
  Schedule testing with all
  parties  

  Oversee testing and
  troubleshooting

  	
   

  	
  o

  	
  Provide test personnel
  

  
	
   

  	
   

  
	
  o

  	
  Provide subscriber data
  

  
	
   

  	
   

  
	
  o

  	
  Assist in troubleshooting
  

  
	
   

  	
   

  
	
  o

  	
  Provide resources for
  acceptance testing

  

 

4

4.                                      Roles and Responsibilities

 

4.1          TCS
Onsite Project Manager

 

	
  Roles and Responsibilities

  
	
  •

  	
  Provide direction to
  customer regarding deployment services, roles, responsibilities and
  strategies for PSAP management.

  
	
  •

  	
  Advise customer on
  organization and management of PSAP service team

  
	
  •

  	
  Provide public safety
  expertise

  
	
  •

  	
  Act as liaison to TCS for
  Vonage

  
	
  •

  	
  Communicate overall
  deployment status to Vonage

  
	
  •

  	
  Assist Vonage with issues
  related to the ORSS and Service Bureau operations

  
	
  •

  	
  Provide a single point of
  contact for all issues

  

 

4.2          Vonage

 

	
  Roles and Responsibilities

  
	
  •

  	
  Provide a single point of contact for all issues

  

 

5.                                      Billing

 

	
  Term of Service:

  	
  Six (6) months from the Start Date, which may be
  extended at Vonage’s option on a month-to-month basis; Vonage may terminate
  this Statement of Work for convenience on thirty (30) days’ notice.

  
	
   

  	
   

  
	
  Start Date:

  	
  July 1, 2005

  
	
   

  	
   

  
	
  Monthly Rate:

  	
  $*

  
	
   

  	
   

  
	
  Expenses:

  	
  Travel and incidentals that have been approved in
  writing in advance by Vonage, billed monthly in arrears.

  
	
   

  	
   

  
	
  Payment Terms:

  	
  Net 30 days

  
	
   

  	
   

  
	
  Milestones for Service Launch:

  	
  Milestone 

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
  SOW Signing

  	
  6/15/2005

  

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

5

 

Notes:

 

1.                                      This
Statement of Work is in accordance with Master Sales Agreement between
TeleCommunication Systems, Inc. (“TCS”) and Vonage Network Inc. (“Vonage” or “Customer”)
dated June 8, 2005, and constitutes Exhibit C thereto.

 

2.                                      Unless
otherwise expressly agreed in writing, no rights with respect to intellectual
property are granted by either Party to the other Party.

 

AGREED:

 

	
  TeleCommunication Systems, Inc.

  	
   

  	
  Vonage Network Inc.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Richard A. Young

  	
   

  	
   

  	
  By: 

  	
  /s/ Louis Mamakos

  	
   

  
	
  Signature 

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Richard A. Young

  	
   

  	
   

  	
  Louis Mamakos

  	
   

  
	
  Name

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
  Exec. Vice President & COO

  	
   

  	
   

  	
  Chief Technology Officer

  	
   

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  27 June 2005

  	
   

  	
   

  	
  24 June 2005

  	
   

  
	
  Date

  	
   

  	
  Date

  

 

6

 

TeleCommunication Systems, Inc,

Western Office

2401 Elliott Avenue, 2nd Floor

Seattle, WA  98121

Phone 1 206-792-2000

Fax +1 206-792-2001

www.telecomsys.com

 

TeleCommunication Systems

 

Enabling Convergent Technologies®

 

 

TCS VoIP E9-1-1

PSAP Outreach Activities
Statement of Work

For Vonage Network Inc.

 

 

Exhibit D

 

07/27/05

 

 

	
  1.0

  	
   

  	
  Introduction

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.1

  	
   

  	
  PSAP Outreach Activities

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.0

  	
  VoIP PSAP
  Outreach Process Summary

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.1

  	
   

  	
  Activities to be completed by TCS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.2

  	
   

  	
  Activities to be completed by ESGW provider

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.0

  	
  Reporting

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.0

  	
  Pricing and
  Billing

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  5.0

  	
  AGREED:

  	
   

  	
  6

  

 

i

 

1.0                               Introduction

 

1.1                               PSAP Outreach Activities

 

This document is
Exhibit D to the Master Sales Agreement between TCS and Vonage dated June 8,
2005.  In order to quickly secure
agreement to i2 deployment and collect information required to deploy, it is
necessary to launch an aggressive PSAP Outreach campaign as soon as possible.  Outreach activities include written
documentation, education, verbal communication and hand-off to deployment
personnel.

 

The following
process summary outlines all steps required to complete these activities, along
with agreed-upon deliverables, timelines and roles and responsibilities.  For purposes of this Exhibit D, the term “VSP”
shall refer to Vonage.

 

2.0                               VoIP PSAP Outreach Process Summary

 

Assumptions:

 

•                  PSAP Outreach activities do not
include those required to determine areas of common coverage between VSP, TCS,
ESGW or priority to contact.  It is
assumed that this process will be in-progress or completed prior to PSAP
outreach, as this information is needed to prioritize order of PSAP contact.

 

•                  PSAP Outreach activities do not
include those required to deploy each PSAP.

 

2.1                               Activities to be completed by TCS

 

	
  Master Task

  	
   

  	
  VoIP TCS/VSP Welcome Kit/Checklist

  
	
  Sub Task

  	
   

  	
  Create VoIP Welcome Kit

  
	
  Deliverable

  	
   

  	
  Welcome Kit

  
	
  Description

  	
   

  	
  Create VoIP welcome kit for
  mass-distribution to all PSAPs on list to deploy, subject to written approval
  by Vonage.

  
	
  Purpose

  	
   

  	
  Kit to include introduction to VoIP, VSP
  and to provide advance notice of additional deployment activities by TCS.

  
	
  Timeline

  	
   

  	
  First draft to be completed by 07/26,
  revised and ready to produce by 07/29.

  
	
   

  	
   

  	
   

  
	
  Master Task

  	
   

  	
  VoIP TCS/VSP Welcome Kit/Checklist

  
	
  Sub Task

  	
   

  	
  Produce and Send VoIP Welcome Kit

  
	
  Deliverable

  	
   

  	
  Kit sent to PSAP

  
	
  Description

  	
   

  	
  VoIP Welcome Kits developed as set forth
  above will be produced and sent to PSAP in phases in accordance with the
  Vonage/TCS mutually-agreed determined priority to deploy.

  
	
  Purpose

  	
   

  	
  To quickly notify all PSAPs of VSP’s intent
  to deploy and forthcoming deployment activity.

  
	
  Timeline

  	
   

  	
  Beta version of kit to be produced by 07/22 for
  review during State/PSAP/APCO/NENA meetings facilitated by Vonage regulatory
  staff through 08/10.  Proposed schedule
  for kit distribution:

  
	
   

  	
   

  	
  •

  	
  500 kits sent 08/15

  
	
   

  	
   

  	
  •

  	
  500 kits sent 08/22

  
	
   

  	
   

  	
  •

  	
  500 kits sent 08/29

  
	
   

  	
   

  	
  •

  	
  an additional 1500 PSAPs kits
  will be sent between 09/15 and 09/29.

  

 

1

 

	
  Master
  Task

  	
   

  	
  PSAP
  interview

  
	
  Sub
  Task

  	
   

  	
  Initial
  PSAP Contact

  
	
  Deliverable

  	
   

  	
  Complete or schedule PSAP Interview

  
	
  Description

  	
   

  	
  Contact PSAPs in order of Vonage/TCS
  mutually-agreed deployment schedule.  TCS
  will attempt to immediately reach the primary POC at PSAP and complete
  interview.  If POC is unavailable, TCS
  will make all reasonable efforts to secure date/time for PSAP interview as
  soon as possible.

  
	
  Purpose

  	
   

  	
  Make initial contact with PSAP to notify of
  i2 deployment and collect information needed for deployment.

  
	
  Timeline

  	
   

  	
  Within 21 days of Welcome Kit delivery.

  

 

	
  Master Task

  	
   

  	
  PSAP Interview

  
	
  Sub Task

  	
   

  	
  i2 education

  
	
  Deliverable

  	
   

  	
  Review PSAP VoIP kit and describe to PSAP
  POC the process of i2 VoIP deployment activities and impact.

  
	
  Description

  	
   

  	
  Review and discuss i2 deployment w/PSAP.

  
	
  Purpose

  	
   

  	
  Education of PSAPs to enable quick
  collection of PSAP information and deployment of i2 service.

  
	
  Timeline

  	
   

  	
  1 business day for each PSAP, all to be
  completed as set forth in Section 4.0.

  

 

	
  Master Task

  	
   

  	
  PSAP Interview

  
	
  Sub Task

  	
   

  	
  Obtain VoIP MSAG, ESN and CRN (Note: Due to
  the relationship between ESN and Shell Record, these should be collected by
  the same party concurrently).

  
	
  Deliverable

  	
   

  	
  VoIP shell record (default record in ALI
  database for ESQK values assigned).

  
	
  Description

  	
   

  	
  Obtain shell record for all PSAPs that have
  agreed to accept i2 VoIP service.

  
	
  Purpose

  	
   

  	
  Enable TCS to provision ALI with VoIP shell
  record.

  
	
  Timeline

  	
   

  	
  If not immediately available, request information
  to be provided within 3 business days of PSAP interview; all to be completed
  as set forth in Section 4.0.

  

 

	
  Master Task

  	
   

  	
  PSAP Interview

  
	
  Sub Task

  	
   

  	
  Review VoIP routing boundary

  
	
  Deliverable

  	
   

  	
  PSAP Agreement with geographic VoIP Routing
  Boundary provided by TCS.

  
	
  Description

  	
   

  	
  Confirm whether PSAPs VoIP call routing
  boundary will be the same as their wireless boundary or if they want routing
  based on wire line boundary.

  
	
  Purpose

  	
   

  	
  Establish correct routing for i2 calls.

  
	
  Timeline

  	
   

  	
  During PSAP interview. If PSAP opts to
  provide new boundary, collect within 3 business days of interview; all to be
  completed as set forth in Section 4.0.

  

 

	
  Sub Task

  	
   

  	
  Build PSAP deployment record in
  status-tracking system.

  
	
  Deliverable

  	
   

  	
  PSAP deployment record associated with deployment
  tasks required for VoIP deployment. Hand-off to VoIP deployment team.

  
	
  Description

  	
   

  	
  TCS PSAP data team to build PSAP record,
  document information provided by VSP.

  

 

2

 

	
  Purpose

  	
   

  	
  To facilitate hand-off between TCS PSAP
  Outreach team and deployment to begin VolP deployment process. To capture
  PSAP-related information in a single-place to facilitate deployment activity
  and status reporting.

  
	
  Timeline

  	
   

  	
  Within 1 day of each PSAP i2 acceptance,
  all to be completed as set forth in Section 4.0.

  

 

	
  Master Task

  	
   

  	
  PSAP acknowledges Vonage’s intent to deploy
  and provides/agrees to provide VoIP shell record.

  
	
  Sub Task

  	
   

  	
  Send VoIP Deployment Confirmation letter.

  
	
  Deliverable

  	
   

  	
  Confirmation letter to PSAP summarizing PSAP
  interview and set expectation for collecting outstanding items from PSAP.

  
	
  Description

  	
   

  	
  Send Deployment Confirmation Letter to
  PSAP.

  
	
  Purpose

  	
   

  	
  To provide deployment confirmation to PSAP
  and set deployment timing expectations.

  
	
  Timeline

  	
   

  	
  Within 1 day of each PSAP i2 acceptance,
  all to be completed as set forth in Section 4.0.

  

 

	
  Master Task

  	
   

  	
  PSAP refuses i2 and will not provide VoIP
  shell record:

  Escalation Procedures

  
	
  Description

  	
   

  	
  Notify VSP PSAP liaison of PSAP refusal and
  reasons cited.

  
	
  Purpose

  	
   

  	
  Facilitate VSP-established escalation
  procedures and document PSAP cooperation for regulatory reporting purposes as
  requested by Vonage.

  
	
  Timeline

  	
   

  	
  Within 1 day of each PSAP’s refusal, all to
  be completed as set forth in Section 4.0.

  

 

2.2                               Activities to be completed by ESGW
provider

 

ESGW provider must
provide or collect the following information for PSAPs to be deployed.  As a VPC, TCS does not have direct interaction
with LECs and PSAPs regarding trunking and connectivity and, historically,
cannot obtain this information without Letter of Agency.  The party responsible for S/R and PSAP
coverage must complete these tasks and report status of each to TCS.

 

	
  Master Task

  	
   

  	
  Determine ESGW Coverage to specific PSAPs

  
	
  Deliverable

  	
   

  	
  Confirmation that ESGW has connectivity to
  S/R serving PSAP and to specific PSAP.

  
	
  Description

  	
   

  	
  VSP/ESGW provider to determine if current
  connectivity to PSAP exists.

  
	
  Purpose

  	
   

  	
  TCS’ ability to manage timeline of PSAP
  deployment timeline is greatly impacted by ESGW coverage status.

  
	
  Timeline

  	
   

  	
  Existing coverage status for to-deploy PSAPs to be
  determine in overall TCS/VSP/ESGW provider analysis.

  
	
   

  	
   

  	
  •

  	
  Additional coverage
  confirmation requests from TCS to be made to ESGW through a process to be
  agreed upon by the parties hereto.

  
	
   

  	
   

  	
  •

  	
  New build-out coverage status to be communicated to
  TCS from ESGW provider through a process to be agreed upon by the parties
  hereto.

  

 

3

 

	
  Master Task

  	
   

  	
  Confirm PSAP Trunking Requirements

  
	
  Deliverable

  	
   

  	
  Confirmation whether PSAP will use existing
  wireline/wireless trunks, or whether new VoIP trunking between PSAP and S/R
  is required.

  
	
  Description

  	
   

  	
  ESGW provider to work with LEC/PSAP to
  determine if any change to existing trunking from PSAP to S/R is required.

  
	
  Purpose

  	
   

  	
  TCS to manage PSAP deployment timeline
  according to trunking requirements.

  
	
  Timeline

  	
   

  	
  •

  	
  Requests for confirmation to be made by TCS to ESGW
  provider using a process to be agreed upon by the parties hereto.

  
	
   

  	
   

  	
  •

  	
  Proactive confirmation of PSAP trunk status to be
  communicated to TCS from ESGW provider using a process to be agreed upon by
  the parties hereto.

  

 

3.0                               Reporting

 

TCS will provide
to Vonage access to a web-based reporting server for access to all VoIP reports
and data.  Through this web site, TCS
will report on PSAP Outreach Activities and Vonage will be able to access these
reports.  TCS will provide Vonage with
the capability to access the following data:

 

	
  Function

  	
   

  	
  Report

  
	
  PSAP

  Outreach

  	
   

  	
  PSAP
  Outreach Status

  •     Not Started

  •     Accepted/Confirm letter sent

  •     Escalated to VSP PSAP team.

  •     In Progress

  •     Delay

  Welcome Kit Delivered

  ESN
Shell Record
Shape File

  

 

4.0                               Pricing and Billing

 

4.1                               Full PSAP Outreach Service

 

Billing will be at
a flat rate depending on the number of PSAPs selected for outreach activities.  Invoices against the flat rate will be billed
over four months, at the end of each month in the monthly amounts shown below,
such that the total amount of the flat rate will be fully invoiced by the end
of October 2005.  Billing for the 2005
flat rate will commence immediately upon execution of this Exhibit D.

 

	
   

  	
   

  	
  Monthly Invoice Schedule

  	
   

  
	
  #

  PSAPS

  	
   

  	
  Total

  Service Fee

  	
   

  	
  July 2005

  	
   

  	
  August

  2005

  	
   

  	
  September

  2005

  	
   

  	
  October

  2005

  	
   

  	
  Cost /

  Additional

  PSAP

  	
   

  
	
  3000

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  
																				

 

Completion of the outreach
activities for 3000 PSAPs will require 80 calendar days.  Outreach activities for a smaller number of
PSAPs will require less time.

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

4

 

A proposed
schedule is outlined in section 2.1 of this Exhibit.

 

Vonage and TCS
shall mutually agree on a final schedule and list of PSAPs to be contacted
within 10 days of the effective date of this Exhibit.  The parties may mutually agree on revisions to
this final schedule but no such revisions will be effective unless agreed upon
by both parties in writing.

 

4.2                               Partial PSAP Outreach Service

 

PSAP Outreach can
be broken into two distinct sets of tasks.  The first set of tasks includes preparing and
sending Welcome Kits.  The second set of
tasks starts with the initial PSAP Contact (see section 2.1).  Should Vonage choose to send additional PSAP
Outreach Kits, this can be done without having to commit to purchasing full
PSAP Outreach services.  This cannot be
done without purchasing the minimum (1000) amount of full service PSAP Outreach
services.

 

Produce
and Send VoIP Welcome Kit

 

The price for
producing and sending welcome kits is as follows:

 

	
  #

  PSAPS

  	
   

  	
  Service Fee to produce

  and send VoIP Welcome Kit

  	
   

  	
  Cost /

  PSAP

  	
   

  
	
  500

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  
								

 

This service must
be ordered in a separate work order within 30 days of the effective date of
this Agreement.

 

Perform
Remaining Outreach Tasks

 

The price for
performing remaining outreach tasks will be based on the price per additional
PSAP as outlined in section 4.1 less the $30 paid for producing and sending
VolP Welcome Kits.  This service can be
ordered in batches of 50.  The cost per
PSAP is based upon the contract rate for full Outreach Services (see section
4.1).

 

	
  # PSAPS

  contracted

  for Full

  PSAP

  Outreach

  Service

  	
   

  	
  # PSAPS

  contracted

  for

  Remaining

  Outreach

  Tasks

  	
   

  	
  Service Fee to perform

  remaining Outreach Tasks

  	
   

  	
  Cost /

  PSAP

  	
   

  
	
  3000

  	
   

  	
  50

  	
   

  	
  $

  	
  *

  	
   

  	
  $

  	
  *

  	
   

  
										

 

This service must
be ordered in a separate work order within 45 days of the effective date of
this Agreement.

 

* Confidential treatment has been requested. The redacted material has
been separately filed with the Commission.

 

5

 

5.0          AGREED:

 

	
  TeleCommunication
  Systems, Inc.

  	
  Vonage
  Network Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
  /s/ Bruce A.
  White 

  	
   

  	
  BY:

  	
  /s/ Louis
  Mamakos 

  	
   

  
	
  Signature 

  	
  Signature

  
	
   

  	
   

  
	
  Bruce A. White 

  	
   

  	
  Louis Mamakos 

  	
   

  
	
  Name

  	
  Name

  
	
   

  	
   

  
	
  Vice President

  	
   

  	
  Chief Technology
  Officer 

  	
   

  
	
  Title

  	
  Title

  
	
   

  	
   

  
	
  29 July 2005

  	
   

  	
  28 July 2005 

  	
   

  
	
  Date

  	
  Date

  

 

6

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