Document:

Letter Agreement

 Exhibit 10.1 
 December 29, 2006 
 VIA FACSIMILE NO. 720.922.8841 
 Mr. Pat Gault 
 Tellabs North America, Inc. 
 1415
W. Diehl Rd. 
 Naperville, IL 60563 
  

	 	Re:	System Purchase Agreement dated as of October 29, 2001 by and among Tellabs North America, Inc., a Delaware corporation (“Seller”), as the successor-in-interest to Advanced Fibre Access Corporation, the assignee of Marconi Communications, Inc., and Grande Communications
Networks, Inc, a Delaware corporation. (“Buyer”), as the assignee of Grande Communications, Inc., a Delaware corporation, as amended from time to time (as so amended, the “Agreement”) 

 Dear Pat: 
 This purpose of this letter is to memorialize
the following understandings of Seller and Buyer and to amend the Agreement as follows: 
 1. Seller acknowledges, consents and agrees to the
assignment of the Agreement and all rights and obligations thereunder from Grande Communications, Inc. to Buyer; provided, however, that Grande Communications, Inc. shall guarantee all payment and performance obligations of Buyer under the
Agreement, in the event of any breach, default or failure to fully comply with all terms and conditions set forth in the Agreement. Buyer is a wholly-owned subsidiary of Grande Communications, Inc. 
 2. The Agreement is amended to delete entirely and forever any minimum purchase or volume commitments or requirements of Buyer except as specifically set
forth in this letter, and the parties agree that such deletion shall include, without limitation, the provisions of Section 5.4 of the Agreement, the second paragraph of the letter amendment dated December 16, 2002, Articles 3, 4, 5 and 7
of the consent agreement dated as of February 20, 2004 and Articles 2-4 of Amendment No. 4 to the Agreement dated August 13, 2004, and the third paragraph of the letter agreement dated August 10, 2004. Seller’s obligations
under Article 1 of Amendment No. 4 to the Agreement dated August 13, 2004 and the second paragraph of the letter agreement dated August 10, 2004 are also deleted in their entirety. 

 3. The Agreement is amended to delete all specifications included in Exhibit A to the Agreement and
replace them with the following: The specifications for the Products under the Agreement shall be Seller’s standard specifications for such Products. 
 4. Buyer shall deliver to Seller a purchase order for a 7100 optical transport system (the “System”) based on the proposal (Proposal No. QA6134770F) attached as Schedule No. 1 upon receipt of
Seller’s signature on this letter, which may be transmitted via facsimile. 
 5. Seller shall provide maintenance and support services
for twelve (12) months after the date of shipment of the System at no additional cost to Buyer provided that Buyer fully complies with all of its obligations under the Agreement at all times. 
 6. Seller shall make commercially reasonable efforts to deliver all components for the System on or before February 10, 2007. 
 7. Through December 31, 2010, Buyer shall purchase exclusively from Seller all additional components for deployment of the System in the locations
specified in the attached Schedule No. 1, provided that no breach or default by Seller of its material obligations under the Agreement shall remain uncured thirty (30) days after receipt of written notice of such breach or default from Buyer.

 8. Through December 31, 2010, Buyer shall purchase from Seller under the Agreement all of Buyer’s requirements, if any, of
gigabit passive optical network (GPON) equipment for Buyer’s metro enterprise networks (excluding any network expansion due to any acquisition, merger or consolidation of Buyer or its parent entity or substantially all of Buyer’s assets),
provided that (i) no breach or default by Seller of its material obligations under the Agreement shall remain uncured thirty (30) days after receipt of written notice of such breach or default from Buyer and (ii) Seller provides
capabilities and quality to Buyer for such equipment that are at least as favorable to Buyer as what is then available from a comparable provider of GPON equipment. Notwithstanding anything in this paragraph to the contrary, (i) if Seller fails
to deliver to Buyer the GPON equipment within forty-five (45) days of receipt of the order for such equipment plus a five (5)-day grace period, then Buyer may terminate such order and acquire the equipment through another source, and
(ii) if Seller fails to deliver to Buyer the GPON equipment within forty-five (45) days of receipt of an order on at least 50% of the orders placed by Buyer for such equipment within any six (6) month period, provided that Buyer
places at least thirty (30) orders for equipment within such time period, then Buyer may terminate all commitments and agreements in this paragraph upon delivery of written notice to Seller. 
 9. Buyer shall purchase from Seller for a trial period from January 1, 2007 through March 31, 2007 under the Agreement the World Wide Packets
products for Buyer’s metro enterprise networks (excluding any network expansion due to any acquisition, merger or consolidation of Buyer or its parent entity or substantially all of Buyer’s assets) that Buyer currently purchases from the
current World Wide Packets 

 
product list, provided that Seller (i) provides such products to Buyer at prices and terms as least as favorable to Buyer as what is then available from
any other reputable authorized distributor of World Wide Packets, (ii) no breach or default by Seller of its material obligations under the Agreement shall remain uncured thirty (30) days after receipt of written notice of such breach or
default from Buyer and (iii) Seller delivers such products to Buyer within forty-five (45) days of receipt of the applicable order plus a five (5)-day grace period. In such case, Buyer shall purchase the World Wide Packets products for
(excluding any network expansion due to any acquisition, merger or consolidation of Buyer or its parent entity or substantially all of Buyer’s assets), that Buyer currently purchases from the current World Wide Packets product list exclusively
from Tellabs through December 31, 2010, provided that all such conditions continue to be satisfied throughout such time period and Tellabs continues to be an authorized distributor of World Wide Packets products throughout such time period.
Notwithstanding anything in this paragraph to the contrary, (i) if Seller fails to deliver to Buyer the World Wide Packets products within forty-five (45) days of receipt of the order for such products plus a five (5)-day grace period,
then Buyer may terminate such order and acquire the such products through another source, and (ii) if Seller fails to deliver to Buyer the World Wide Packets products within forty-five (45) days of receipt of an order on at least 50% of
the orders placed by Buyer for such products within any six (6) month period, provided that Buyer places at least thirty (30) orders for products within such time period, then Buyer may terminate all commitments and agreements in this
paragraph upon delivery of written notice to Seller. 
 10. On or before 5:00 p.m. C.S.T. on January 15, 2007, Buyer and Seller shall
execute in writing a replacement Exhibit B to the Agreement that will include as Products under the Agreement the items referenced in Paragraphs 4, 5, 7, 8 and 9 above. 
 Any initially capitalized terms that are not otherwise defined in this letter agreement shall have the same meaning given to such term in the Agreement, 
 If you accept the terms of this letter amendment to the Agreement, please counter-sign in the space provided below and return it to the attention of Brady Adams, Grande Communications Networks, Inc., 401 Carlson
Circle, San Marcos, Texas 78666 or by fax to him at (512) 878-4285. 
  

			
	Sincerely,
	
	Grande Communications Networks, Inc.
		
	By	 	/s/ Scott Ferguson
		 	Scott Ferguson, Chief Operating Officer
		 	12/29/06

 AGREED AND ACCEPTED: 
  

					
	Tellabs North America, Inc.
		
	By:	 	/s/ Vincent Tormos
		 	Printed Name:	 	Vincent Tormos
		 	Title:	 	Sr. Business Manager
		 	Date:	 	12/29/06

 Schedule No. 1 
 [insert proposal]Amendment No. 4 to the System Purchase Agreement

 Exhibit 10.2 
 Amendment No. 4 to the System Purchase Agreement 
 This Amendment No. 4
(“Amendment”) to the System Purchase Agreement is made as of August 13, 2004 by and between Advanced Fibre Access Corporation, a wholly-owned subsidiary of Advanced Fibre Communications, Inc. (collectively “AFC”), and Grande
Communications, Inc,, a Delaware corporation (“Grande”). 
 A. Marconi Communications, Inc. (“Marconi”) and Grande
entered into a System Purchase Agreement (“System Purchase Agreement”) dated of October 29, 2001 wherein Grande, subject to certain terms and conditions, agreed to purchase certain telecommunications Products. 
 B. Marconi and Grande entered into a letter agreement (“First Amendment”) amending the System Purchase Agreement on December 16, 2002;

 C. Marconi, AFC and Grande entered into a letter agreement (“Consent”) wherein Marconi assigned the System Purchase Agreement to
AFC, AFC agreed to take on all of the obligations and responsibilities under the System Purchase Agreement, and subject to the terms and conditions stated therein, Grande consented to such assignment. 
 D. AFC and Grande entered into a third amendment (“Third Amendment”) to the System Purchase Agreement eliminating the 2004 minimum purchase
covenant on August 10, 2004. 
 B. The System Purchase Agreement, First Amendment, Consent and Third Amendment are collectively referred
to herein as the “Agreement”. 
 NOW, THEREFORE, in consideration of the premises, terms and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows; 
 1. The parties
acknowledge and agree that AFC and Grande are working and will continue to use commercially reasonable efforts to work together in good faith to deliver to Grande a functional and commercial-ready Product, namely the Fiber-To-The-Home Product with
RF Return Product that meets Grande’s technical specifications (“FTTH Product with RF Return”). AFC shall use commercially reasonable efforts to work in good faith with vendors, including, without limitation, Motorola, towards
developing, deploying and supporting the FTTH Product with RF Return. AFC shall continue to support the FTTC Product as mutually agreed by the parties in writing. 
 2. Notwithstanding anything to the contrary in the Agreement, subject to the terms and conditions of the Agreement, including, without limitation, the December 2002 Agreement and the terms and conditions of this
Amendment, the parties agree that the Minimum Purchase Obligations of the Agreement are hereby modified as follows for each calendar year listed: 
  

											
	2005	  	2006	  	2007	  	2008	  	2009	  	2010
	 	  	 	  	 	  	 	  	 	  	 (“Shortfall
 Bucket”)

	$5,000,000	  	$7,000,000	  	$8,000,000	  	$8,000,000	  	$8,000,000	  	0

  

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 3. In the event that Grande does not meet a Minimum Purchase Obligation in any particular year
(“Shortfall Year”), the remaining Minimum Purchase Obligation shortfall amount for such Shortfall Year shall be pushed out to calendar year 2010 (“Shortfall Bucket”). For example, if at the end of year 2005, subject to the terms
and conditions of the Agreement, Grande meets the equivalent of purchasing $4.5 million worth of Products, Systems and/or Services, then the remaining $500,000 of Minimum Purchase Obligations shall be pushed out to calendar year 2010. The total
Minimum Purchase Obligation of years 2005 – 2010 shall in no event exceed $36,000,000, 
 4. In the event that Grande exceeds the
Minimum Purchase Obligations recited in the table in Section 2, the amount above the relevant year’s commitment shall be carried forward to first apply as a reduction to the Shortfall Bucket (if applicable) and any excess to be then
applied towards the next calendar year’s Minimum Purchase Obligation as a credit. For example, if Grande purchases the equivalent of $5,500,000 of Products, Systems, and/or Services in calendar year 2005, then $500,000 shall be carried forward
towards the 2006 commitment, thereby reducing it to $6,500,000. If Grande nevertheless purchases the equivalent of $7,000,000 of Products, Systems, and/or Services in calendar year 2006, then the $500,000 shall be carried forward towards the 2007
commitment, etc. 
 5. Except to the extent modified herein, the terms and conditions of the Agreement shall continue in full force and
effect. In the event of any conflict between this Amendment and the Agreement, the terms and conditions of this Amendment shall govern and control. 
 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 4, to be effective as of the date first above written. 
  

													
	Grande Communications, Inc.	 		 	Advanced Fibre Access Corporation
					
	By:	 	/s/ William E. Morrow	 		 	By:	 	/s/ Jack Ermey
	Printed Name:	 	William E. Morrow	 		 	Printed Name:	 	Jack Ermey
	Title:	 	Chief Ex. Officer	 		 	Title:	 	VP, Global Sales
	Date:	 	8/13/04	 		 	Date:	 	8/13/04

  

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