Document:

Exhibit 10.8

 

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

 

MCI WORLDCOM

 

CARRIER
GLOBAL SERVICES AGREEMENT

 

	
  ESCHELON TELECOM,
  INC.

  	
  MCI WORLDCOM
  COMMUNICATIONS, INC.

  
	
    /s/ Satish C. Tiwari

  	
   

  	
    /s/ Frank Grillo

  	
   

  
	
  Company Representative Signature

  	
  MCI WorldCom Communications Signature

  
	
   

  	
   

  
	
  VP Engineering and Network Implementation

  	
   

  	
   

  	
   

  
	
  Title - Please Print

  	
  Title

  
	
     Satish C. Tiwari 

  	
   

  	
   

  	
   

  
	
  Company Representative Name Please

  	
  Name

  
	
  Print

  	
   

  	
   

  
	
   

  	
   

  	
    8/8/00

  	
   

  
	
  Date

  	
  Date

  
	
  703 2nd Avenue South, Suite 1200

  	
   

  	
  201 Spear Street, 9th Floor

  	
   

  
	
  Company Address (for notice purposes)

  	
  Company Address (for notice purposes)

  
	
  Minneapolis, Minnesota 55402

  	
   

  	
  San Francisco, California 94105

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Main Telephone Number

  	
  Billing ID

  
											

 

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

 

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

 

	
  ý

  	
   

  	
  Schedule One

  	
   

  	
  Term, Global Volumes and Discounts

  
	
  ý

  	
   

  	
  Schedule Two

  	
   

  	
  Master Terms and Conditions

  
	
  ý

  	
   

  	
  Schedule Three

  	
   

  	
  United States Tariffed Services

  
	
  ý

  	
   

  	
  Schedule Four

  	
   

  	
  United States Enhanced Services

  
	
  o

  	
   

  	
  Schedule Five

  	
   

  	
  United States Local Services

  
	
  o

  	
   

  	
  Schedule Six

  	
   

  	
  Non-US Services

  
	
  o

  	
   

  	
  Schedule Seven

  	
   

  	
  Equipment

  
	
  ý

  	
   

  	
  Schedule Eight

  	
   

  	
  Other Services

  

 

MCI
WORLDCOM CONFIDENTIAL

 

1

 

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

 

2

 

SCHEDULE ONE

 

TERM,
GLOBAL VOLUMES AND DISCOUNTS

 

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

 

2.                                       Selected
Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

9.                                       ***

 

10.                                 ***

 

11.                                 ***

 

5

 

SCHEDULE TWO

MASTER TERMS AND CONDITIONS

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

3. Taxes and Access Charges.

 

3.1         Domestic and International Taxes

 

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

 

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

 

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

 

8

 

credit for the amounts represented thereby.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

6.                    Confidential Information.

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

7.               Termination.

 

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

 

11

 

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

 

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

 

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

 

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

 

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

 

12

 

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

 

8.                                        Indemnification.

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

14

 

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

 

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

 

11.                                  Resale
of MCI WorldCom Services.

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

12.                                  Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

12.10                     Use
of Service Marks, Trademarks and Name.

 

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

 

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

 

17

 

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

 

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

 

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

 

18

 

SCHEDULE THREE

 

UNITED
STATES TARIFFED SERVICES

 

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

 

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

 

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

 

19

 

ATTACHMENT
3-1

 

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

 

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

 

A.                                   Type 1 DS-1: ***

 

B.                                     Type 1 DS-3: ***

 

C.                                     Type 2 DS-1:  ***

 

D.                                    Type 2 DS-3:  ***

 

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

 

A.                                   Type 1 DS-1: ***

 

B.                                     Type 1 DS-3: ***

 

C.                                     Type 2 DS-1: ***

 

D.                                    Type 2 DS-3: ***

 

20

 

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

 

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

 

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

 

21

 

SCHEDULE FOUR

 

UNITED
STATES ENHANCED SERVICES

 

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

 

22

 

ATTACHMENT
4-1

 

UNITED
STATES ENHANCED SERVICES

 

I.                                         MCI
WORLDCOM DOMESTIC ATM SERVICE (OPTION 1)

 

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

 

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

 

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

 

D.                                    Rates and
Discounts:

 

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

 

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

 

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

 

23

 

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

 

2.                                       Discounts.  ***

 

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

 

24

 

ATTACHMENT
4-2

 

MCI WorldCom Domestic
ATM Service Level Agreement:

 

1.0                                 Definitions

 

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

 

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

 

1.2                                 Type
1 Access

 

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

 

1.3                                 Type
2 Access

 

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

 

1.4                                 Type
3 Access

 

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

 

2.0                                 Network
Availability

 

2.1 Description

 

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

 

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

 

25

 

2.2 Network Availability Objective

 

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

 

2.3 Exclusions

 

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

 

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

 

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

 

•                  Customer’s
applications, equipment or facilities

 

•                  MCI
WorldCom or Customer’s scheduled maintenance

 

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

 

•                  Labor
strikes

 

•                  Natural
disasters

 

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

 

•                  Trouble
tickets associated with new installations

 

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

 

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

 

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

 

2.4 Calculation

 

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

 

	
  Monthly

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Network (%)

  	
   

  	
  =

  	
   

  	
  1-

  	
   

  	
  Total minutes of affected PVC downtime per month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  

 

26

 

2.5 Components of Calculation

 

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

 

2.6 Credits

 

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

 

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

 

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

 

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

 

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

 

3.0                                 Mean
Time To Repair (MTTR)

 

3.1 Description

 

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

 

27

 

3.2 MTTR Objective

 

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

 

3.3 Exclusions

 

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

 

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

 

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

 

•                                          Customer’s
applications, equipment or facilities

 

•                                          MCI
WorldCom or Customer’s scheduled maintenance

 

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

 

•                                          Labor
strikes

 

•                                          Natural
disasters

 

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

 

•                                          Trouble
tickets associated with new installations

 

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

 

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

 

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

 

•

 

3.4 Calculation

 

	
  Monthly Avg.

  	
   

  	
   

  	
   

  	
  Sum of minutes between opening and closing of qualified

  	
   

  
	
  MTTR trouble

  	
   

  	
  =

  	
   

  	
  tickets during the billing month

  	
   

  	
   

  
	
  adjusted for exclusions

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total number of lapses during the billing month

  	
   

  
							

 

28

 

3.5 Components for Calculations

 

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

 

3.6 Credits

 

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

 

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

 

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

 

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

 

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

 

4.0                                 Credit
Limitations and Conditions

 

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

 

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

 

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

 

29

 

SCHEDULE EIGHT

 

OTHER
SERVICES

 

INTERNET
SERVICES

 

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

 

30

 

T1
INTERNET ACCESS SERVICE AGREEMENT

 

	
  Customer
  Information

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company Name
Eschelon Telecom, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Phone

  	
   

  	
  Fax

  
	
  Billing
  Address-Line 2

  	
   

  	
  City
Minneapolis

  	
   

  	
   

  	
   

  	
  State
Minnesota

  	
   

  	
  Zip + 4
55402

  
	
  T1 Services

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Flexible
  T1 Service (1)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sustained Use

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Double/Diverse
  T1 Services (2)

  	
   

  	
  Shadow T1
  Service (4)

  	
   

  	
  Discounted
  Equipment (5)

  	
   

  
	
  (Kbps)

  	
   

  	
  Monthly

  	
   

  	
  Start-Up(3)

  	
   

  	
  Item

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  Item

  	
   

  	
  Price

  	
   

  
	
  o 0-128

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o Double T

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o Cisco 2610 Router
  with Internal CS/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 128-256

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o Diverse T

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o Additional Cisco
  Internal T1 CSU/DSU

  	
   

  	
  ***

  	
   

  
	
  o 256-384

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  ***

  	
   

  
	
  o 384-512

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o OpenROUTE Internal
  T1 CSU/DSU

  	
   

  	
  ***

  	
   

  
	
  o Over 512

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o OpenROUTE Internal
  ISDN card

  	
   

  	
  ***

  	
   

  
	
  o Price-Protected T1
  (2)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o Cisco 3840 Router
  with Internal T1 CSU/DSU

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o Cisco Internal ISDN
  card

  	
   

  	
  ***

  	
   

  

 

	
  Term and Payment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term

  ***

  	
   

  	
  Term Discount

  ***

  	
   

  	
   

  	
   

  	
   

  	
   

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

  

 

Notes

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Schedule 8A

MCI WORLDCOM Communications, Inc.

 

1

 

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

 

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

 

Terms and Conditions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Signature

 

	
  Customer Authorized Agent

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

T3
INTERNET ACCESS SERVICE AGREEMENT

 

Customer Information

Company Name

Eschelon Telecom, Inc.

 

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

  	
   

  	
  Phone

  	
   

  	
  Fax

  
	
  Billing
  Address-Line 2

  	
   

  	
  City
Minneapolis

  	
   

  	
  State
Minnesota

  	
   

  	
  Zip + 4
55402

  
	
  T3 Services (1)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
															

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Discounted
  Equipment (6)

  	
   

  
	
  Tiered T3
  Service (2)

  	
   

  	
  Flexible
  T3 Service (3)

  	
   

  	
  o Shadow T3 (4)

  	
   

  	
  (If
  applicable, options will

  	
   

  
	
  Port

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  Sustained
  Use

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  Service

  	
   

  	
  Monthly

  	
   

  	
  Start-Up

  	
   

  	
  be
  available in an

  	
   

  
	
  (Mbps)

  	
   

  	
  Fee

  	
   

  	
  Charge

  	
   

  	
  (Mbps)

  	
   

  	
  Fee

  	
   

  	
  Charge

  	
   

  	
  Type

  	
   

  	
  Fee

  	
   

  	
  Charge

  	
   

  	
  attachment)

  	
   

  
	
  o 3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 0-3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  Shadow T3 Service

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 3.01-6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 9

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 6.01-7.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 7.51-9

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 9.01-10.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o T3 Price Protected
  (5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 10.51-12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
  Monthly Fee

  	
   

  	
  Start-up Charge

  	
   

  	
   

  	
   

  
	
  o 21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 12.01-13.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 24

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 13.51-15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  T3 Price Protected

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  o 27

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 15.01-16.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 30

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 16.51-18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 33

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 18.01-19.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 36

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 19.51-21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 39

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  o 21.01-45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Term and Payment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term

  

  ***

  	
   

  	
  Term Discount (7)

  

  ***

  	
   

  	
  Billing Preference
o
  Bill Existing MCI WorldCom Account No,

  o Bill to a new
  account number

  	
   

  	
  Account No. of Existing MCI WorldCom

  

  Connection:

  	
   

  	
  If P. O required, return it with Agreement.

  

  P. O. Number:

  
									

 

Notes

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

 

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

 

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

 

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

 

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

 

Schedule 8B

MCI WORLDCOM Communications, Inc.

 

1

 

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

 

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

 

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

 

General Terms and
Conditions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Signature

 

	
  Customer Authorized Agent

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

OCDirect
INTERNET ACCESS SERVICE AGREEMENT

 

	
  Customer
  Information

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company Name
Eschelon Telecom, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
   

  	
   

  	
  Phone

  	
   

  	
  Fax

  
	
  Billing
  Address-Line 2

  	
   

  	
  City
Minneapolis

  	
   

  	
  State
Minnesota

  	
   

  	
  Zip + 4
55402

  
	
  OCDirect OC3
  Service (1),  (2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  OC3 Tiered
  Service (ATM) (3)

  	
   

  	
  OC3
  Flexible Service (4)

  	
   

  
	
  Port

  (Mbps)

  	
   

  	
  Monthly
  Fee

  	
   

  	
  Start-Up
  Charge (5)

  	
   

  	
  Port

  (Mbps)

  	
   

  	
  Monthly
  Fee

  	
   

  	
  Start-Up
  Charge (5)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ATM

  	
   

  	
  POS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 60

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  0-45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 70

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  45-60

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 80

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  60-70

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 90

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  70-80

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 100

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  80-90

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 120

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  90-100

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 140

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  100-155

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  o 155

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

Term and Payment

 

	
  Term (6)

  ***

  	
   

  	
  Term Discount (7)

  ***

  	
   

  	
  Billing Preference
o
  Bill Existing MCI WorldCom Account No,

  o Bill to a new
  account number

  	
   

  	
  Account No. of Existing

  MCI WorldCom

  Connection:

  	
   

  	
  If P. O. required, return it with

  Agreement.

  P. O. No.

  

 

Notes

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

 

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

 

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

 

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

 

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

 

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

 

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

 

General Terms and
Conditions

 

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

 

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

 

Schedule 8C

MCI WORLDCOM Communications, Inc.

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

Signature

 

	
  Customer Authorized Agent

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3Exhibit 10.8.1

 

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

 

FIRST
AMENDMENT TO

CARRIER GLOBAL SERVICES AGREEMENT

 

THIS FIRST AMENDMENT TO MCI
WORLDCOM CARRIER GLOBAL SERVICES AGREEMENT (hereinafter referred to as the
“First Amendment”) is entered into as of the dates, set forth below, by and
between MCI
WORLDCOM Communications, Inc. (“MCI WorldCom”) and Eschelon
Telecom, Inc. (“Customer”). For the purposes of this First
Amendment, the “Effective Date” of the rates, discounts, charges and credits
set forth herein shall be the first day of the first full billing cycle
following the acceptance and execution of this First Amendment by MCI WorldCom
(“First Amendment Effective Date”). Acceptance of this First Amendment by MCI
WorldCom is subject to Customer meeting the terms and conditions set forth in
the Tariff and MCI WorldCom’s standard credit terms and conditions, which may
be based on commercially available credit reviews to which Customer hereby
consents.

 

WITNESSETH:

 

WHEREAS, Customer and MCI
WorldCom entered into that certain MCI WorldCom Carrier Global Services
Agreement signed by Customer on July 28, 2000 (the “Agreement”) with respect to
certain services to be provided to Customer by MCI WorldCom, as more
particularly described therein; and

 

WHEREAS, Customer and MCI
WorldCom desire to enter into this First Amendment for the purpose of amending
the Agreement,

 

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

 

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

 

2.             T1 Internet Access Service
Agreement. The Internet pricing table of Schedule 8A shall be amended by
deleting it in its entirety and inserting the following new Internet pricing
table in lieu thereof:

 

T1 Services

 

	
  Flexible
  T1 Service

  	
   

  
	
  Sustained Use (Kbps)

  	
   

  	
  Monthly
  Internet Fee

  	
   

  	
  Start—Up
  Charge

  	
   

  
	
  0—128

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  128—256

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  256—384

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  384—512

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  512—1544

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Price—Protected T1

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

	
  Other T1
  Services

  	
   

  
	
  Service

  	
   

  	
  Monthly
  Internet Fee

  	
   

  	
  Start—Up
  Charge

  	
   

  
	
  Double T

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Diverse T

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Shadow T1

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  768 (kbps)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

3.             T1 Internet Access Service
Agreement. The Term Discount section of Schedule 8A shall be amended by
deleting it in its entirety and inserting the following language in lieu
thereof.

 

 

DISCOUNT

 

T1 Internet Service. In lieu of all
other rates and discounts (term, promotional, or otherwise), Customer will
receive a *** discount to be applied to the Monthly Internet Fee for all T1
Internet Service.

 

4.             T1 Internet Access Service
Agreement. Schedule 8A shall be amended by adding the following language at
the end of the Schedule:

 

***

 

5.             T3 Internet Access Service
Agreement. The Internet pricing table of Schedule 8B shall be amended by
deleting it in its entirety and inserting the following new Internet pricing
table in lieu thereof.

 

T3 Service

 

	
  Flexible
  T3 Service

  	
   

  
	
  Sustained Use (Mbps)

  	
   

  	
  Monthly
  Internet Fee

  	
   

  	
  Start—Up
  Charge

  	
   

  
	
  0—3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  3.01—6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  6.01—7.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  7.51—9

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  9.01—10.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  10.51—12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  12.01—13.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  13.51—15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  15.01—16.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  16.51—18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  18.01—19.5

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  19.51—21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  21.01—45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  T—3 Price Protected

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

	
  Tiered T3
  Service

  	
   

  
	
  Sustained
  Use (Mbps)

  	
   

  	
  Monthly
  Internet Fee

  	
   

  	
  Start—Up

  	
   

  
	
  3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  9

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  24

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  27

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  30

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  33

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  36

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  39

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

	
  Other T3
  Services

  	
   

  
	
  Service Type

  	
   

  	
  Monthly
  Internet Fee

  	
   

  	
  Start—up
  Charge

  	
   

  
	
  Shadow T3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Diverse T3*

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Double T3

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

*Pre-qualification required

 

6.             T3 Internet Access Service
Agreement. The Term Discount section of Schedule 8B shall be amended by
deleting it in its entirety and inserting the following language in lieu
thereof.

 

DISCOUNT

 

T3 Internet Service. In lieu of all other rates
and discounts (term, promotional, or otherwise), Customer will receive a ***
discount to be applied to the Monthly Internet Fee for all T3 Internet Service.

 

7.             T3 Internet Access Service
Agreement. Schedule 8B shall be amended by adding the following language at
the end of the Schedule:

 

***

 

2

 

8.             OCDirect Internet Access Service
Agreement. The Internet pricing table of Schedule 8C shall be amended by
deleting it in its entirety and inserting the following new Internet pricing
table in lieu thereof.

 

OC 3
Service

 

	
  OC 3
  Tiered Service

  	
   

  
	
  Port
  (Mbps)

  	
   

  	
  Monthly
  Fee

  	
   

  	
  Start—Up
  Charge

  	
   

  
	
  60

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  70

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  80

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  90

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  100

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  155

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

	
  OC 3
  Flexible Service (POS)

  	
   

  
	
  Port (Mbps)

  	
   

  	
  Monthly
  Fee

  	
   

  	
  Start—Up
  Charge

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0—45

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  45—60

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  60—70

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  70—80

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  80—90

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  90—100

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  100—155

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Price Protected Option

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

9.             OCDirect Internet Access Service
Agreement. The Term Discount section of Schedule 8C shall be amended by
deleting it in its entirety and inserting the following language in lieu
thereof.

 

DISCOUNT

 

OC-3 Internet Service. In lieu of all other rates
and discounts (term, promotional, or otherwise), Customer will receive a ***
discount to be applied to the Monthly Internet Fee for all OC-3 Internet
Service.

 

10.          OCDirect Internet Access Service
Agreement. Schedule 8C shall be amended by adding the following language at
the end of the Schedule:

 

***

 

11.          OCDirect Internet Access Service
Agreement. Schedule 8C shall be amended by adding the following language at
the end of the Schedule:

 

***

 

12.          Entire Agreement. Except as
expressly modified by this First Amendment, the Agreement shall be and remain
in full force and effect in accordance with its terms and shall constitute the
legal, valid, binding, and enforceable obligations of Customer and MCI
WorldCom. This First Amendment, including the Agreement and the applicable MCI
WorldCom tariffs, is the complete agreement of the parties and supersedes any
prior agreements or representations, whether oral or written, with respect
thereto. In the event of a conflict between the terms of this First Amendment
and the Agreement, the terms of this First Amendment shall govern.

 

13.          Successors and Assigns. This
First Amendment shall be binding upon and inure to the benefit of the
successors and permitted assigns of the parties hereto. Neither this Agreement
nor any rights or obligations of Customer herein shall be transferable or
assignable by Customer without MCI WorldCom’s prior written consent, and any
attempted transfer or assignment hereof by Customer, not in accordance
herewith, shall be null and void.

 

3

 

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

 

15.          Acceptance. The offer created
by this First Amendment shall remain open and be capable of being accepted by
Customer until July 5, 2001. Any and all prior offers made to Customer,
whether oral or written, shall be superseded by this offer. Once this First
Amendment has been fully executed, any amendments must be in writing and signed
by both parties.

 

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

 

	
  Eschelon Telecom, Inc.

  	
  MCI WORLDCOM Communications, Inc.

  
	
   

  	
   

  
	
  By:

  	
   /s/ Steven S. Sulbrock

  	
   

  	
  By:

  	
   

  	
  /s/ Frank Grillo

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Frank Grillo

  	
   

  
	
  Name:

  	
   Steven S. Sulbrock

  	
   

  	
   

  	
   

  	
  Vice President, Marketing

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
     VP — IP
  Servicer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
     6—20—01

  	
   

  	
  Date:

  	
    06—28—01

  	
   

  
										

 

Mullins\Eschelon Telecom\GSA1stAmend\TonySanford\06-05-01\D3

 

4

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