Document:

AMENDMENT NUMBER TWO

                         TO THE GENERAL AGREEMENT AMONG

                   KMC TELECOM INC., KMC TELECOM II, INC.,

            KMC TELECOM LEASING I LLC, KMC TELECOM LEASING II LLC

                          AND LUCENT TECHNOLOGIES INC.

      This  Amendment  Number Two  (hereinafter  this  "Amendment  Two") is made
effective  as of December 22,  1998,  by and among KMC Telecom  Inc., a Delaware
corporation, KMC Telecom II, Inc., a Delaware corporation, KMC Telecom Leasing I
LLC, a Delaware  limited  liability  company and KMC  Telecom  Leasing II LLC, a
Delaware limited liability company, each with offices located at 1545 Route 206,
Suite 300, Bedminster, New Jersey 07921 (hereinafter collectively referred to as
"Customer"),  and  Lucent  Technologies  Inc.,  a Delaware  corporation,  acting
through its Global Service Providers Group, with offices located at 600 Mountain
Avenue, Murray Hill, New Jersey 07074 (hereinafter "Seller").

      WHEREAS,  Customer and Seller previously entered into that certain General
Agreement  (Contract Number  LNM970313MP),  effective March 6, 1997, as modified
and amended by Amendment Number 1 (Contract  Number LNM 970922MP),  effective as
of October 15, 1997 (as so amended, the "General Agreement"),  setting forth the
terms and  conditions  pursuant to which  Seller  agreed to supply and  Customer
agreed to procure certain of Seller's Products,  Licensed Materials and Services
(as such terms are defined therein);

      WHEREAS, Customer and Seller desire to amend and modify the General
Agreement as set forth herein; and

      WHEREAS,  all terms used  herein  but not  defined  herein  shall have the
meanings ascribed to them in the General Agreement.

      NOW THEREFORE,  in  consideration  of the mutual promises  hereinafter set
forth and other good and valuable consideration,  the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

1.    SCOPE OF GENERAL AGREEMENT

      The definition of "Customer"  contained in the General Agreement is hereby
amended to additionally include KMC Telecom of Virginia, Inc., a Virginia public
service company ("KMC-Virginia"),  KMC Telecom III, Inc., a Delaware corporation
("KMC  III") and KMC  Telecom  Leasing  III LLC,  a Delaware  limited  liability
company ("KMC Leasing  III");  it being the intent and  understanding  among the
parties that  KMC-Virginia,  KMC III, and KMC Leasing III shall be authorized to
procure Products, Licensed Materials and Services from Seller under and pursuant
to the terms and conditions of the General Agreement.

<PAGE>

2.    TERM OF GENERAL AGREEMENT

      Section 1.2 of the General Agreement is hereby amended to provide that the
Term shall expire on March 5, 2003.

3.    PURCHASE COMMITMENT AND FINANCIAL CONSIDERATIONS

      In consideration for the discounts, allowances and incentives set forth in
Appendix  A of the  General  Agreement  (as  modified  hereby),  KMC III and KMC
Leasing III agree to procure  directly and exclusively  from Seller,  consistent
with the purchase  requirements set forth in the financing documents between the
parties,  Seller's  Products,  and related Licensed Materials and Services which
are  available  and may become  available  during the Term, in each case meeting
Customer's  requirements  for up to 27 Tier  III  cities  and up to 100  Tier IV
cities, so long as at all times the purchase price therefor (taking into account
all of the terms and conditions of the  competitive  offer) is competitive  with
the purchase  price  generally  offered by any other  third-party  vendor of the
particular  Product,  Licensed  Material  or Service in  question  in the United
States.  Either party's obligation to perform under this Amendment is contingent
on Seller providing  financing for all Seller's  Products,  and related Licensed
Materials and Services to be sold to Customer  hereunder in accordance with that
certain Loan and Security  Agreement,  dated as of February __, 1999,  among KMC
III, KMC Leasing III, the financial  institutions  signatory thereto,  Seller as
agent and __________ as collateral agent.

4.    DEFINITIONS

      The following definitions are hereby added to Section A-1.2, "Definitions"
of Appendix A:

      o     "Data  Networking  Products" means Seller's  intelligent  switching,
            access and applications and network services Products, including but
            not   limited  to  the   PacketStar(TM)   Access   Concentrator(TM),
            PathStar(TM)   Access  Server,   PortMaster(R)   Integrated   Access
            Concentrator  and  PacketStarTM  IP GateWay 1000.  The table of Data
            Networking  Products in Section 6 may be  expanded  or amended  from
            time to time by mutual agreement of the parties.

5.    MODIFICATIONS TO APPENDIX A

      The provision of Appendix A of the General  Agreement  shall be revised in
the following respects:

      (A) The first sentence of Section A-1.5 "Network Standardization" shall be
replaced  with  the  following:  "Subject  to the  provisions  of  Section  3 of
Amendment  Two,  Customer  agrees to  standardize  its  network  exclusively  on
Seller's  5ESS(R)-2000 Switch Systems Products,  Transmission  Systems Products,
fiber optic cable and associated  apparatus,  access  systems,  voice  messaging
systems,  Power Systems and Data Networking  Products during the Term, such that
in  the  event  Customer   requires  any  equipment  and/or  software  which  is
functionally  comparable  to Sellers  Products  and related  Licensed  Materials
available for purchase under this  Agreement,  then Customer  agrees to purchase
all of its requirements for such equipment and software from Seller.

                                       2
<PAGE>

      (B)  The  parties   acknowledge   that,   effective  June  30,  1998,  the
Transmission  Systems  discounts  available  to Customer  were  amended and that
effective as of June 30, 1998, the table entitled "Transmission Systems Products
Discount  Schedule"  in  Section  A-1.15  of  Appendix  A is  replaced  with the
following:

--------------------------------------------------------------------------------
               TRANSMISSION SYSTEMS PRODUCTS*                      DISCOUNT
--------------------------------------------------------------------------------
DDM PLUS                                                             27%
--------------------------------------------------------------------------------
DDM-2000 FiberReach OC-1                                             25%
--------------------------------------------------------------------------------
DDM-2000 OC-3 hardware & Software                                    45%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Shelf                                                 85%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Commons                                               43%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Optics                                                50%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Software                                              43%
--------------------------------------------------------------------------------
Dual  2Fiber  OC-48 A/D Ring  Term                                   70%**

Two  Systems  (ED8C902-30  G-3 e/w the following):
  TG3 (DS1) Cp LAA18
  System Controller LAA23B
  System Memory 4 Mbyte LAA25
  Line Controller (4 Mg) A/D & ring  LAA28
  Overhead Controller   LAA21
  Adapter Plate
  Filler Plate
--------------------------------------------------------------------------------
FT-2000 OC-48 Lightwave System Commons (spares)                      50%
--------------------------------------------------------------------------------
FT-2000 OC-48 Low Speed Cards (DS3, IS3, OC-3, OC-12)                40%
--------------------------------------------------------------------------------
FT-2000 OC-48 Lightwave System Optics                                65%
--------------------------------------------------------------------------------
FT-2000 OC-48 Lightwave System Software                              65%
--------------------------------------------------------------------------------
SLC(R)-2000 Multi Services Distant Terminals (MSDT)                  35%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - Common Units                             40%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - POTS/SPOTS Units                         35%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - Special Service Units                    40%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - Software                                 00%
--------------------------------------------------------------------------------
SLC(R)-SERIES 5 Carrier System - Common Units                        35%
--------------------------------------------------------------------------------
SLC(R)-SERIES 5 Carrier System - POTS/SPOTS Units                    35%
--------------------------------------------------------------------------------
SLC(R)-SERIES 5 Carrier System - Special Service Units               35%
--------------------------------------------------------------------------------
DACS IV 2000 Systems                                           see 1.15.1 below
--------------------------------------------------------------------------------

                                       3
<PAGE>

--------------------------------------------------------------------------------
               TRANSMISSION SYSTEMS PRODUCTS*                      DISCOUNT
--------------------------------------------------------------------------------
DACS II Systems (hardware & Software)                                27%
--------------------------------------------------------------------------------

* The above Products do not include cabling or power equipment. Unless otherwise
specified,  the discounts  shown above apply to  Transmission  Systems  Products
(hardware) only. The discount for the cables used in the systems set forth above
shall be twenty percent (20%) off the List Price.

** This 70% discount only applies to Lucent order code  ED8C902-30  G-3 which is
equipped with a dual bay, two complete  OC-48 systems and commons for one shelf.
For commons ordered singularly, the 50% discount shall apply.

6.    ADDITIONS TO APPENDIX A

      The  following  sections  are hereby  added to  Appendix A of the  General
Agreement.

      6.1 PRICING PLAN

      A new  Section  A-1.22  is  hereby  added  to  Appendix  A of the  General
Agreement:

            "A-1.22     PRICING PLAN FOR DATA NETWORKING PRODUCTS

      In consideration for the Customer purchase commitment set forth in Section
3 of this Amendment No. 2, Seller will provide the discounts set forth below for
all purchases of the Data Networking  Products  described therein which are made
by Customer during the Term:

--------------------------------------------------------------------------------
                  DATA NETWORKING PRODUCTS                         DISCOUNT
--------------------------------------------------------------------------------
PacketStar(TM) Access Concentrator 10                                30%
--------------------------------------------------------------------------------
PacketStar(TM) Access Concentrator 60                                40%
--------------------------------------------------------------------------------
PacketStar(TM) Access Concentrator 120                               40%
--------------------------------------------------------------------------------
PathStar(TM) Access Server (PSAS)                                    40%
--------------------------------------------------------------------------------
PortMaster(R)4 Integrated Access Concentrator (PM4)                  30%
--------------------------------------------------------------------------------
PacketStar(TM) IP GateWay 1000                                       25%"
--------------------------------------------------------------------------------

6.2   SUPPORT SERVICES FOR DATA NETWORKING PRODUCTS

      A new Section A-1.23 is hereby added to Appendix A:

                                       4
<PAGE>

            "1.23       SUPPORT SERVICES

      In addition to its obligations  under the "Warranty" clause of the General
Agreement,  Seller will make available  maintenance and other technical  support
services to Customer  for  Seller's  Data  Networking  Products  under  mutually
agreed-upon, separate support agreement(s)."

6.3   TRAINING INCENTIVE FOR DATA NETWORKING PRODUCTS

      A new Section A-1.24 is hereby added to Appendix A:

            "1.24       TRAINING INCENTIVE

      In consideration for Customer's purchase commitment set forth in Section 3
of this Amendment,  (a) for each one million two hundred fifty thousand  dollars
($1,250,000)  in  Customer's  purchases of Seller's  PathStar(TM)  Access Server
Products, Seller will provide Customer with two (2) tuition-free seats at a five
(5) day course related to Data Networking Products; and (b) for each one million
two hundred fifty  thousand  dollars  ($1,250,000)  in  Customer's  purchases of
Seller's  PortMaster(R)  4 Integrated  Access  Concentrator,  PacketStar(TM)  IP
GateWay 1000,  PacketStar(TM)  Access  Concentrator  10,  PacketStar(TM)  Access
Concentrator 60, or PacketStar(TM) Access Concentrator 120 Products, Seller will
provide  Customer  with two (2)  tuition-free  seats  at a five  (5) day  course
related to Data Networking  Products.  Seller, at its option, may offer training
regionally.

      Customer shall use the foregoing  training days earned by it within twelve
(12)  months  after the  shipment  of the  relevant  Data  Networking  Products.
Customer shall  responsible  for all associated  travel and living  expenses for
Customer  personnel in connection with attendance at the foregoing  courses.  In
the event  that  Seller  sends its  personnel  to a  Customer  site for  on-site
training,  Customer  shall be responsible  for all reasonable  travel and living
expenses for the  instructor  and for  providing  equipment  needed for hands-on
training. It is understood and agreed that any such equipment used in a training
setting must not be part of Customer's network product environment."

7.    ENTIRE AGREEMENT

      Except as specifically modified, amended or supplemented herein, all terms
and conditions of the General  Agreement  shall remain in full force and effect.
The  terms  and   conditions   contained  in  this   Amendment   Two  and  those
nonconflicting terms and conditions of the General Agreement supersede all prior
oral and  written  understandings  among the parties  and shall  constitute  the
entire  agreement  among the parties with respect to the subject  matter herein.
This  Amendment Two shall not be modified or amended  except by a writing signed
by an authorized representative of each of the parties.

                                       5
<PAGE>

      IN WITNESS  WHEREOF,  the parties  have caused  this  Amendment  Two to be
executed by their duly authorized representatives on the date(s) indicated.

KMC TELECOM INC.                          KMC TELECOM LEASING I LLC
                                          By: KMC Telecom I, Inc., as Sole
Member

By:  /s/                                  By:  /s/
   -----------------------------------       -----------------------------------
Typed Name: Michael A. Sternberg          Typed Name: Michael A. Sternberg
           ---------------------------               ---------------------------
Title: President                          Title: President
      --------------------------------          --------------------------------
Date:                                     Date:
     ---------------------------------         ---------------------------------

KMC TELECOM II, INC.                      KMC TELECOM LEASING II LLC
                                          By: KMC Telecom II, Inc., as Sole
                                              Member

By:  /s/                                  By:  /s/
   -----------------------------------       -----------------------------------
Typed Name: Michael A. Sternberg          Typed Name: Michael A. Sternberg
           ---------------------------               ---------------------------
Title:  President                         Title: President
      --------------------------------          --------------------------------
Date:                                     Date:
     ---------------------------------         ---------------------------------
KMC TELECOM III, INC.                     KMC TELECOM LEASING III LLC
                                          By: KMC Telecom III, Inc., as Sole
                                              Member

By:  /s/                                  By:  /s/
   -----------------------------------       -----------------------------------
Typed Name: Michael A. Sternberg          Typed Name: Michael A. Sternberg
           ---------------------------               ---------------------------
Title: President                          Title: President
      --------------------------------          --------------------------------
Date:                                     Date:
     ---------------------------------         ---------------------------------
KMC TELECOM OF VIRGINIA, INC.             LUCENT TECHNOLOGIES INC.

By:  /s/                                  By:  /s/
   -----------------------------------       -----------------------------------
Typed Name: Michael A. Sternberg          Typed Name: Mark Wilson
           ---------------------------               ---------------------------
Title: President                          Title: Vice President - Sales
      --------------------------------          --------------------------------
Date:                                     Date:
     ---------------------------------         ---------------------------------

                                       6AMENDMENT NUMBER THREE
                         TO THE GENERAL AGREEMENT AMONG
                   KMC TELECOM INC., KMC TELECOM II, INC.,
            KMC TELECOM III, INC., KMC TELECOM OF VIRGINIA, INC.,
            KMC TELECOM LEASING I LLC, KMC TELECOM LEASING II LLC,
               KMC LEASING III LLC AND LUCENT TECHNOLOGIES INC.

            This Amendment Number Three  (hereinafter this "Amendment Three") is
made  effective  as of  November  15,  1999,  by and among KMC Telecom  Inc.,  a
Delaware corporation,  KMC Telecom II, Inc., a Delaware corporation, KMC Telecom
III,  Inc., a Delaware  corporation,  KMC Telecom of Virginia,  Inc., a Virginia
public service company,  KMC Telecom Leasing I LLC, a Delaware limited liability
company,  KMC Telecom Leasing II LLC, a Delaware limited liability company,  and
KMC Telecom Leasing III LLC, a Delaware  limited  liability  company,  each with
offices  located at 1545 Route 206,  Suite  300,  Bedminster,  New Jersey  07921
(hereinafter  collectively  referred to as "Customer"),  and Lucent Technologies
Inc., a Delaware corporation, acting through its Global Service Providers Group,
with offices  located at 600  Mountain  Avenue,  Murray  Hill,  New Jersey 07074
(hereinafter "Seller").

            WHEREAS,  Customer and Seller  previously  entered into that certain
General  Agreement  (Contract Number  LNM97O313MP),  effective March 6, 1997, as
modified  and amended by Amendment  Number One  (Contract  Number  LNM970922MP),
effective as of October 15, 1997 and Amendment  Number Two,  effective  December
22, 1998 (as so amended, the "General  Agreement"),  setting forth the terms and
conditions  pursuant to which  Seller  agreed to supply and  Customer  agreed to
procure certain of Seller's  Products,  Licensed Materials and Services (as such
terms are defined therein); and

                                       1
<PAGE>

            WHEREAS, Customer and Seller desire to amend and modify the
General Agreement as set forth herein;

            NOW THEREFORE,  in consideration of the mutual promises  hereinafter
set forth and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

1.    SCOPE OF GENERAL AGREEMENT

            The definition of "Customer"  contained in the General  Agreement is
hereby  amended  to  additionally  include  KMC  Telecom  IV,  Inc.,  a Delaware
corporation  ("KMC IV") and KMC  Telecom  Leasing  IV LLC,  a  Delaware  limited
liability  company ("KMC  Leasing  IV");  it being the intent and  understanding
among the parties that KMC IV and KMC Leasing IV shall be  authorized to procure
Products  Licensed  Materials and Services from Seller under and pursuant to the
terms and conditions of the General Agreement.

FINANCING

            Customer's obligations under this Amendment are contingent on
Seller providing financing subject to terms and conditions to be mutually
agreed.

PURCHASE COMMITMENT AND FINANCIAL CONSIDERATIONS

            In consideration for the discounts, allowances and incentives set
forth in Appendix A of the General Agreement (as modified hereby), Customer
agrees to procure directly and exclusively from Seller, consistent with the
provisions of Section 2 above, Seller's Products and related Licensed
Materials and Services which are available and may become available during
the Term, in each case meeting the Customer's technical requirements for
conversion of Customer's existing Tier I, II, III and IV cities to packet
technology and/or growth to the existing TOM technology, and for KMC IV's and
KMC Leasing IV's nine (9) additional Tier III cities and ninety-eight (98)

                                       2
<PAGE>

additional Tier IV cities, so long as at all times the purchase price
therefor (taking into account all of the terms and conditions of the
competitive offer) is competitive with the purchase price generally offered
by any other third-party vendor of the particular Product, Licensed Material
or Service in question in the United States.

MODIFICATIONS TO APPENDIX A

            The  provisions  of  Appendix A of the  General  Agreement  shall be
revised in the following respects:

        The table entitled "Discount Schedule for 5ESS(R)-2000  Switch Products"
            in Section A-1.7 of Appendix A and the paragraph below the table are
            replaced with the following:

--------------------------------------------------------------------------------
                            INITIAL                               PERIPHERAL
     PRODUCT TYPE       SWITCH DISCOUNT  LARGE GROWTH DISCOUNT  GROWTH DISCOUNT
--------------------------------------------------------------------------------
5ESS Switch                   83%                77%                   25%
--------------------------------------------------------------------------------
5ESS CDX Switch               83%                77%                   25%
--------------------------------------------------------------------------------
5ESS VCDX Switch              83%                77%                   25%
--------------------------------------------------------------------------------

The parties acknowledge that the above discounts were effective October 1, 1999.
Large Growth is defined as the addition of seven (7) or more STSX-1  cards.  Any
other growth  shall be  considered  Peripheral  Growth.  Dedicated  hardware and
Software for PRIs only shall receive a seventy-seven percent (77%) discount.

        The following  products  shall be added to the table in Section  A-1.22,
            "Pricing Plan for Data Networking  Products" (this Section was added
            in Amendment Two). Unless otherwise  specified in writing by Lucent,
            the Warranty  Periods for Data  Networking  Products are twelve (12)
            months for the hardware and ninety (90) days for the Software.

--------------------------------------------------------------------------
                DATA NETWORKING PRODUCTS                     DISCOUNT
--------------------------------------------------------------------------
MAX TNT(TM) WAN Access Switch                                  30%
--------------------------------------------------------------------------
PacketStar(TM)PSAX 2300 Access Concentrator                    45%
--------------------------------------------------------------------------
GX 550(TM)Smart Core ATM Switch                                35%
--------------------------------------------------------------------------
Stinger(TM) DSL Access Concentrator                            35%
--------------------------------------------------------------------------
Copper Mountain CopperEdge(TM) 200*                            32%
--------------------------------------------------------------------------
Copper Mountain CopperEdge(TM) 150*                            32%
--------------------------------------------------------------------------
PacketStar(TM) PSAX 50 Broadband Service Unit                  35%
--------------------------------------------------------------------------

                                       3
<PAGE>

--------------------------------------------------------------------------
                DATA NETWORKING PRODUCTS                     DISCOUNT
--------------------------------------------------------------------------
PacketStar(TM) PSAX 100 Broadband Service Unit                 35%
--------------------------------------------------------------------------
PacketStar(TM) PSAX 600 Broadband Service Concentrator         35%
--------------------------------------------------------------------------
Cajun(TM) 330R Stackable Switching System                      35%
--------------------------------------------------------------------------
Cajun(TM) 550R Stackable Switching System                      35%
--------------------------------------------------------------------------
ConnectStar(TM) Interworking Call Router (formerly             35%
Broadband Interworking Connection Router (BICR))
--------------------------------------------------------------------------

*     The Warranty Period for these Products is twelve (12) months.

      The following  Access  Products  shall  be added  tothe  table  entitled
            "Transmission  Systems Products Discount Schedule" in Section A-1.15
            (this table was replaced in Amendment Two).

---------------------------------------------------------------------------
                    ACCESS PRODUCTS                          DISCOUNT
---------------------------------------------------------------------------
CopperCom Gateway(TM) *                                        19%
---------------------------------------------------------------------------
CopperCom MXR(TM) *                                            19%
---------------------------------------------------------------------------
VINA ConnectReach *                                            50%
---------------------------------------------------------------------------
VINA ConnectReach Plus *                                       40%
---------------------------------------------------------------------------
7 R/E(TM) Connection Gateway (previously PacketStar(TM)        50%
Connection Gateway (PCG))**
---------------------------------------------------------------------------

* The Warranty Period for these Products is twelve (12) months.

** The Warranty Periods for the 7 R/E Connection Gateway are twelve (12) months
for the hardware and eighteen (18) months for the Software.

      The following new Section A-1.25 is hereby added to Appendix A:

             A-1.25 PRICING PLAN FOR OPTICAL NETWORKING PRODUCTS

In consideration for the Customer purchase commitment set forth in Section 3
of this Amendment Three, Seller will provide the discounts set forth below
for all purchases of the Optical Networking Product(s) described therein
which are made by Customer during the Term.  This table of Optical Networking
Products may be expanded or amended from time to time by mutual agreement of the
parties.

                                       4
<PAGE>

---------------------------------------------------------------------------
              OPTICAL NETWORKING PRODUCTS                    DISCOUNT
---------------------------------------------------------------------------
WaveStar(TM) TDM 2.5G                                          50%
---------------------------------------------------------------------------

      The following new Section A-1.26 is hereby added to Appendix A:

               A-1.26 PRICING PLAN FOR 7R/E(TM) PACKET SOLUTIONS

Seller will provide firm price  quotations  to Customer for its 7R/E(TM)  Packet
Solutions  purchases.  To  constitute a 7R/E Packet  Solution it must contain at
least a minimum of one unit each of a Call Feature Server, One-Link Manager, and
Packet  Gateway  purchased  and  installed at one time (it also may contain more
than one unit of each of these  components)  in addition to other 7R/E  hardware
and Software elements  (hereinafter  referred to as "7R/E Packet  Solution").  A
7R/E Packet  Solution does not include the 5ESS(R)  Switch or circuit  switching
network elements that may interface with the 7R/E Packet Solution products. List
Prices are not yet finalized for 7R/E  components.  Seller  commits to a minimum
twenty  percent  (20%) price  savings for a 7R/E  configuration  utilizing  pure
packet  access when  compared to a  comparable  5ESS TDM  configuration.  Access
vehicles (e.g.,  RLAGs,  IADs,  etc.) are not included in the 7R/E pricing.  The
Warranty Period for 7R/E hardware (whether or not the hardware is part of a 7R/E
Packet  Solution)  is twelve  (12)  months.  The  Warranty  Period for  Software
licensed with a new 7R/E Packet  Solution  installation  (all three elements set
forth above  required to  constitute a Packet  Solution must be installed at the
same time for this twelve (12) month Software  warranty to apply) is twelve (12)
months.  The  Warranty  Period for any other 7R/E  Software  including,  but not
limited  to,  upgrades or updates to the  initial  Software  or new  releases of
Software is three (3) months.

ADDITIONAL CONSIDERATIONS

At Customer's request,  Seller is providing Customer with a copy of its schedule
of  anticipated  release  dates for certain of its  Products.  This  Schedule is
attached hereto as Exhibit B. If there is a slip in the  availability  date that
impacts Customer's deployment schedule, Seller will, at Seller's expense, either

                                       5
<PAGE>

(a) provide  Customer  with an  acceptable  substitute  and change it out to the
required  Product  when  available,  or (b)  purchase  on  Customer's  behalf an
acceptable  non-Lucent substitute and change it out to the required Product when
available.  In the event Seller purchases non-Lucent Products in accordance with
Subparagraph  (b), said  purchases  will be treated as a Lucent  Product for the
purposes  of the  purchase  commitment  and will be  subject  to the  terms  and
conditions  of the  financing  agreement.  Additionally,  Seller will provide to
Customer,  concurrently  with  the  signing  of  this  Amendment,  a list of the
Products  currently  being  purchased by Customer  from  Seller.  This list will
include a  description  of the  product,  comcode,  current  list  price and the
current  discounted  price.  Lastly, at Customer's  request,  attached hereto as
Exhibit C is a summary that compares the older city pricing and the planned city
pricing, showing the expected savings by location.

ENTIRE AGREEMENT

Except as specifically  modified,  amended or supplemented herein, all terms and
conditions of the General  Agreement shall remain in full force and effect.  The
terms and conditions  contained in this Amendment Three and those nonconflicting
terms and  conditions  of the  General  Agreement  supersede  all prior oral and
written  understandings  among the  parties  and  shall  constitute  the  entire
agreement  among the parties with  respect to the subject  matter  herein.  This
Amendment  Three shall not be modified or amended  except by a writing signed by
an authorized representative of each of the parties.

                                       6
<PAGE>

IN WITNESS WHEREOF,  the parties have caused this Amendment Three to be executed
by their duly authorized representatives on the date(s) indicated.

KMC TELECOM INC.                         KMC TELECOM LEASING I LLC
                                         By KMC Telecom Inc., as Sole Member

By:  /s/                                 By:  /s/
   ------------------------------           ------------------------------------
Typed Name: Michael A. Stenberg          Typed Name: Michael A. Stenberg
           ----------------------                   ----------------------------
Title: President                         Title: President
      ---------------------------              ---------------------------------
Date:                                    Date:
     ----------------------------             ----------------------------------

KMC TELECOM II, INC.                     KMC TELECOM LEASING II LLC
                                         By: KMC Telecom II, Inc., as Sole
                                             Member

By:  /s/                                 By:  /s/
   ------------------------------           ------------------------------------
Typed Name: Michael A. Stenberg          Typed Name: Michael A. Stenberg
           ----------------------                   ----------------------------
Title: President                         Title: President
      ---------------------------              ---------------------------------
Date:                                    Date:
     ----------------------------             ----------------------------------

KMC TELECOM III, INC.                    KMC TELECOM LEASING III LLC
                                         By KMC Telecom III, Inc., as Sole
                                            Member

By:  /s/                                 By:  /s/
   ------------------------------           ------------------------------------
Typed Name: Michael A. Stenberg          Typed Name: Michael A. Stenberg
           ----------------------                   ----------------------------
Title: President                         Title: President
      ---------------------------              ---------------------------------
Date:                                    Date:
     ----------------------------             ----------------------------------

                                       7
<PAGE>

KMC TELECOM IV, INC.                     KMC TELECOM LEASING IV LLC
                                         By KMC Telecom IV, Inc., as Sole
                                            Member

By:  /s/                                 By:  /s/
   ------------------------------           ------------------------------------
Typed Name: Michael A. Stenberg          Typed Name: Michael A. Stenberg
           ----------------------                   ----------------------------
Title: President                         Title: President
      ---------------------------              ---------------------------------
Date:                                    Date:
     ----------------------------             ----------------------------------
By:                                      By:

KMC TELECOM OF VIRGINIA, INC.            LUCENT TECHNOLOGIES INC.

By:  /s/                                 By:  /s/
   ------------------------------           ------------------------------------
Typed Name: Michael A. Stenberg          Typed Name: Bill Plunkett
           ----------------------                   ----------------------------
Title: President                         Title:
      ---------------------------              ---------------------------------
Date:                                    Date:
     ----------------------------             ----------------------------------

                                       8
<PAGE>

                                                                       EXHIBIT A

                              Financing Term Sheet

                       A copy of the Financing Term Sheet

                        shall be placed behind this page

                                       9
<PAGE>

                                                                       EXHIBIT B

-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
WAVESTAR TDM 2.5G
-------------------------------------------------------------------------------
R. 1.0                                                                4/99
-------------------------------------------------------------------------------
R. 2.0                                                 6/99           9/99
-------------------------------------------------------------------------------
R. 3.0 w/UPSR Ring Termination                         12/99          3/00
-------------------------------------------------------------------------------
R. 4.0                                                 6/00           9/00
-------------------------------------------------------------------------------
R. 5.0                                                                3/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR TDM 10G 2-FIBER
-------------------------------------------------------------------------------
R. 1.0                                                 12/99          3/00
-------------------------------------------------------------------------------
R. 2.0                                                                9/00
-------------------------------------------------------------------------------
R. 3.0                                                                3/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR TDM 10G (OC-192 4F)
-------------------------------------------------------------------------------
R. 1.0                                                                6/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR OLS 40G/80G
-------------------------------------------------------------------------------
R. 3.3                                                                10/99
-------------------------------------------------------------------------------
R. 6.0                                                               9/15/00
-------------------------------------------------------------------------------
R. 7.0                                                               3/15/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR OLS 400G
-------------------------------------------------------------------------------
R. 2.0                                                               9/30/99
-------------------------------------------------------------------------------
R. 3.0                                                               3/31/00
-------------------------------------------------------------------------------
R. 4.0                                                              12/15/00
-------------------------------------------------------------------------------
R. 5.0                                                               9/15/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR ISTN
-------------------------------------------------------------------------------
R. 1.0                                                 12/99          6/00
-------------------------------------------------------------------------------
R. 2.0                                                 6/00           12/00
-------------------------------------------------------------------------------
R. 3.0                                                                3/01
-------------------------------------------------------------------------------
R. 4.0                                                                9/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR BANDWIDTH MANAGER
-------------------------------------------------------------------------------
R. 1.0 - 1.1                                                          Now
-------------------------------------------------------------------------------
R. 1.2                                                                Now
-------------------------------------------------------------------------------
R. 1.3                                                 10/99          12/99
-------------------------------------------------------------------------------
R. 2.0 (w/TL1 cut through for DDM & FT)                1/00          3/31/00
-------------------------------------------------------------------------------
R. 3                                                                 6/30/00
-------------------------------------------------------------------------------
R. 4.0                                                                3/01
-------------------------------------------------------------------------------
R. 5.0                                                                9/01
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
WAVESTAR ALL METRO OLS
-------------------------------------------------------------------------------
R. 1.0                                                               3/31/00
-------------------------------------------------------------------------------
R. 2.0                                                              12/15/00
-------------------------------------------------------------------------------
R. 3.0                                                               6/15/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WAVESTAR OPTICAIR OLS
-------------------------------------------------------------------------------
R. 1.0                                                                3/00
-------------------------------------------------------------------------------
R. 2.0                                                                3/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
FT-2000 OC-48
-------------------------------------------------------------------------------
R. 9.1                                                                1/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
ANYMEDIA ACCESS SYSTEM
-------------------------------------------------------------------------------
R. 1.0                                                                9/98
-------------------------------------------------------------------------------
R. 1.2                                                 4/99           6/99
-------------------------------------------------------------------------------
R. 1.5                                                 6/99           8/99
-------------------------------------------------------------------------------
R. 1.7 - HDT                                                          8/99
-------------------------------------------------------------------------------
R. 1.2.4 - as a PAS Server                             1/00           3/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
DDM-2000 - OC3/12
-------------------------------------------------------------------------------
R. 15.0                                                10/99          12/99
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
DDM-2000 BAM
-------------------------------------------------------------------------------
R. 1.0                                                                06/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
FIBERREACH
-------------------------------------------------------------------------------
R. 4.0 (TARP)                                                         09/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
VINA TECH
-------------------------------------------------------------------------------
ConnectReach Plus                                                     Now
-------------------------------------------------------------------------------
ConnectReach                                                          Now
-------------------------------------------------------------------------------
R. 1.0                                                                7/99
-------------------------------------------------------------------------------
VFDE                                                                  12/99
-------------------------------------------------------------------------------
R. 2.0                                                                8/99
-------------------------------------------------------------------------------
R. 3.0                                                                11/99
-------------------------------------------------------------------------------
R. 3.0.6                                                              11/99
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
COPPER MOUNTAIN
-------------------------------------------------------------------------------
CPE for Voice and Data w/PAS interop                   10/99          11/99
-------------------------------------------------------------------------------
CPE for Voice and Data w/o PAS, standalone                            10/99
-------------------------------------------------------------------------------
CE200                                                                 Now
-------------------------------------------------------------------------------
CE150 (for MTU use)                                                   Now
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
HDSL 2 - Data                                                         12/99
-------------------------------------------------------------------------------
HDSL 2 - Derived Voice w/ PAS                                         11/99
-------------------------------------------------------------------------------
SDSL - Data                                                           Now
-------------------------------------------------------------------------------
SDSL - Derived Voice w/ PAS                            7/99           11/99
-------------------------------------------------------------------------------
IDSL - Data                                                           Now
-------------------------------------------------------------------------------
IDSL - Derived Voice w/ PAS                                           11/99
-------------------------------------------------------------------------------
Rel. 2.4                                                              01/00
-------------------------------------------------------------------------------
Rel. 2.9                                                              03/00
-------------------------------------------------------------------------------
Rel. 3.0                                                              07/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
DACS II
-------------------------------------------------------------------------------
Rel. 8.2 (Digital Signal Processing Platform)                         Now
-------------------------------------------------------------------------------
Rel. 8.3 (Low Density SONET and SDH Unit)                             Now
-------------------------------------------------------------------------------
Rel. 9.0 (Integrated Communications Interface Pack)                        4Q99
-------------------------------------------------------------------------------
Rel. 9.1 (ATM Processing Shelf)                                       4Q99
-------------------------------------------------------------------------------
Rel. 10.0 (High Speed Unit - SONET)                                   1Q00
-------------------------------------------------------------------------------
Rel. 10.1 (High Speed Unit - SDH)                                     3Q00
-------------------------------------------------------------------------------
Rel. 11.0 (High Density Unit)                                         3Q00
-------------------------------------------------------------------------------
Rel. 12.0 (NextGen DACS)                                              2001
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
DACS 4/4/1
-------------------------------------------------------------------------------
R. 2.0                                                                05/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
FT-2000 OC-48
-------------------------------------------------------------------------------
R. 9.0 TARP                                                           01/00
-------------------------------------------------------------------------------
R. 9.1                                                                01/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
5ESS ANYMEDIA SWITCH
-------------------------------------------------------------------------------
5E14 Software Release                                  4Q99           1q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
7 R/E PACKET SOLUTIONS
-------------------------------------------------------------------------------
7 R/E Packet Local Solution R1 (IP)                    12/99          06/00
-------------------------------------------------------------------------------
7 R/E Packet Local Solution R2 (IP)                    06/00          12/00
-------------------------------------------------------------------------------
7 R/E Packet Local Solution R3 (ATM)                   12/00          06/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R1.0                 10/99          04/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R1.1                 11/99          05/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R1.2                 03/00          09/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R2.0                 06/00          12/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R3.0                 12/00          06/01
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
7 R/E PACKET DRIVER
-------------------------------------------------------------------------------
Release 1.3 - Modem pooling w/TNT                      12/99          06/00
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
Release 1.4 - Internet Telephony, OneLink              03/00          09/00
-------------------------------------------------------------------------------
Release 2.0 - Data Offload on TNT                      06/00          12/00
-------------------------------------------------------------------------------
Release 2.1 - IP and VPN feature enhancements          09/00          03/01
-------------------------------------------------------------------------------
Release 3.0 (Phase 2) - Integrated VtoA Offer -        12/00          06/01
IWG
-------------------------------------------------------------------------------
Phase 3 - Packet SM and 7R/E Elements                  2H01           1H02
-------------------------------------------------------------------------------
Phase 4 - Renaissance existing SMs                     2002           2002
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
PATHSTAR ACCESS SERVER
-------------------------------------------------------------------------------
Rel. 1.0                                               4/99           5/99
-------------------------------------------------------------------------------
Rel. 2.0                                               6/99           7/99
-------------------------------------------------------------------------------
Rel. 3.0                                               2/00           3/00
-------------------------------------------------------------------------------
Rel. 4.0                                               1Q00           1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
PACKETSTAR CONNECTION GATEWAY
-------------------------------------------------------------------------------
Rel. 1                                                 4/99           7/99
-------------------------------------------------------------------------------
Rel. 2                                                 9/99           12/99
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
AC120
-------------------------------------------------------------------------------
UPSR                                                   1Q00           1Q00
-------------------------------------------------------------------------------
APS (2 node configs only)                              7/99           9/99
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
PSAX2300
-------------------------------------------------------------------------------
Rel. 6.1                                                              Now
-------------------------------------------------------------------------------
Rel. 6.1.1                                                            12/99
-------------------------------------------------------------------------------
Rel. 6.2                                                              03/00
-------------------------------------------------------------------------------
Rel. 7.0                                                              4Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
COPPERCOM GATEWAY
-------------------------------------------------------------------------------
Redundancy
-------------------------------------------------------------------------------
   GSC (1:1)                                                          1Q00
-------------------------------------------------------------------------------
   ATM (1:1)                                                          1Q00
-------------------------------------------------------------------------------
   T1 (1:N)                                                           1Q00
-------------------------------------------------------------------------------
   Power (1:1)                                                        Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Voice
-------------------------------------------------------------------------------
   Loop/Ground Start                                                  Now
-------------------------------------------------------------------------------
   PCM                                                                Now
-------------------------------------------------------------------------------
   ADPCM 32                                                           Now
-------------------------------------------------------------------------------
   ADPCM 16                                                           1Q00
-------------------------------------------------------------------------------
   Echo Cancellation                                                  Now
-------------------------------------------------------------------------------
   Fax Auto Detect                                                    1Q00
-------------------------------------------------------------------------------
   Silence Suppression                                                2Q00
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
GR-203
-------------------------------------------------------------------------------
   Multiple I/F Groups                                                Now
-------------------------------------------------------------------------------
   EOC/Alarms/PPS                                                     Now
-------------------------------------------------------------------------------
   Lucent Certification                                             11/15/99
-------------------------------------------------------------------------------
   Flow Through Provisioning                                          1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
T1 Line Card
-------------------------------------------------------------------------------
   T1-4 port                                                          Now
-------------------------------------------------------------------------------
   T1-8 port                                                          2Q00
-------------------------------------------------------------------------------
   STS-1                                                              2Q00
-------------------------------------------------------------------------------
   Hot Remove                                                         1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
ATM Line Card
-------------------------------------------------------------------------------
   ATM - DS3 - Dual Port                                              Now
-------------------------------------------------------------------------------
   ATM - OC3 - Dual Port                                              2Q00
-------------------------------------------------------------------------------
   ATM - DS3 - Quad Port                                              2Q00
-------------------------------------------------------------------------------
   Data Pass Through                                                  1Q00
-------------------------------------------------------------------------------
   Daisy Chaining                                                     1Q00
-------------------------------------------------------------------------------
   Hot Remove                                                         1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Management
-------------------------------------------------------------------------------
   Craft Interface                                                    Now
-------------------------------------------------------------------------------
   Element Management System Rel 1                                    4Q99
-------------------------------------------------------------------------------
   Element Management System Rel 2                                    1Q00
-------------------------------------------------------------------------------
   Lucent Integration                                             Under Review
-------------------------------------------------------------------------------
   Alarm Contacts                                                     1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Voice of Frame Relay
-------------------------------------------------------------------------------
   Interworking Function FRF.8                                        Now
-------------------------------------------------------------------------------
   PCM                                                                Now
-------------------------------------------------------------------------------
   Configurable ATM/Frame                                             Now
-------------------------------------------------------------------------------
   ADPCM 32                                                           1Q00
-------------------------------------------------------------------------------
   ADPCM 16                                                           1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Packet Trunk Interface
-------------------------------------------------------------------------------
   PTI Logic Card                                                     2Q00
-------------------------------------------------------------------------------
   MGCP                                                               2Q00
-------------------------------------------------------------------------------
   10/100/1000 Mbps I/F                                               2Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
xDSL Modems
-------------------------------------------------------------------------------
   SDSL                                                               Now
-------------------------------------------------------------------------------
   ADSL                                                               Now
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
Voice
-------------------------------------------------------------------------------
   16 Ports                                                           Now
-------------------------------------------------------------------------------
   Loop Start                                                         Now
-------------------------------------------------------------------------------
   Ground Start                                                       1Q00
-------------------------------------------------------------------------------
   PCM                                                                Now
--------------------------------------------------------------------------------
   ADPCM 32                                                           Now
-------------------------------------------------------------------------------
   ADPCM 16                                                           1Q00
-------------------------------------------------------------------------------
   Echo Cancellation                                                  Now
-------------------------------------------------------------------------------
   Silence Suppression                                                2Q00
--------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Data
-------------------------------------------------------------------------------
   RIP 1 & 2                                                          Now
-------------------------------------------------------------------------------
   RFC 1483                                                           Now
-------------------------------------------------------------------------------
   PPP                                                                Now
-------------------------------------------------------------------------------
   Classical IP                                                       Now
-------------------------------------------------------------------------------
   NAT                                                                Now
-------------------------------------------------------------------------------
   DHCP                                                               Now
-------------------------------------------------------------------------------
   Firewall                                                           Now
-------------------------------------------------------------------------------
   10Base T                                                           Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Management
-------------------------------------------------------------------------------
   Console Port                                                       Now
-------------------------------------------------------------------------------
   Telnet over Ethernet                                               Now
-------------------------------------------------------------------------------
   Proxy Through Gateway                                              1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
COPPERCOM MXR
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
xDSL Modems
-------------------------------------------------------------------------------
   SDSL                                                               Now
-------------------------------------------------------------------------------
   ADSL                                                               Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Voice
-------------------------------------------------------------------------------
   16 Ports                                                           Now
-------------------------------------------------------------------------------
   Loop Start                                                         Now
-------------------------------------------------------------------------------
   Ground Start                                                       1Q00
-------------------------------------------------------------------------------
   PCM                                                                Now
-------------------------------------------------------------------------------
   ADPCM 32                                                           Now
-------------------------------------------------------------------------------
   ADPCM 16                                                           1Q00
-------------------------------------------------------------------------------
   Echo Cancellation                                                  Now
-------------------------------------------------------------------------------
   Silence Suppression                                                2Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Data
-------------------------------------------------------------------------------
   RIP 1 & 2                                                          Now
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
   RFC 1483                                                           Now
-------------------------------------------------------------------------------
   PPP                                                                Now
-------------------------------------------------------------------------------
   Classical IP                                                       Now
-------------------------------------------------------------------------------
   NAT                                                                Now
-------------------------------------------------------------------------------
   DHCP                                                               Now
-------------------------------------------------------------------------------
   Firewall                                                           Now
-------------------------------------------------------------------------------
   10Base T                                                           Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Management
-------------------------------------------------------------------------------
   Console Port                                                       Now
-------------------------------------------------------------------------------
   Telnet over Ethernet                                               Now
-------------------------------------------------------------------------------
   Proxy Through Gateway                                              1Q00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
CAJUN 330R
-------------------------------------------------------------------------------
OC 12 ATM Uplink                                                      03/00
-------------------------------------------------------------------------------
OC 3 ATM Uplink                                                       05/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
CAJUN 550R
-------------------------------------------------------------------------------
OC 12 ATM Uplink                                                      03/00
-------------------------------------------------------------------------------
OC 3 ATM Uplink                                                       05/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
GX 550
-------------------------------------------------------------------------------
Jade
-------------------------------------------------------------------------------
   OC3/STM-1, OC12/STM-4                                              Now
-------------------------------------------------------------------------------
   Full Redundancy (excluding GR253 APS)                              Now
-------------------------------------------------------------------------------
   CBX 500 Rel. 3.0 SW functionality                                  Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Jade.1
-------------------------------------------------------------------------------
   Rapid upgrade                                                      Now
-------------------------------------------------------------------------------
   IP Navigator                                                       Now
-------------------------------------------------------------------------------
   Amethyst & Jade NMS merge                                          Now
-------------------------------------------------------------------------------
   Priority reroute                                                   Now
-------------------------------------------------------------------------------
   OC-48/STM-16 software support                                      Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Jade M2
-------------------------------------------------------------------------------
   GR 253 Direct Trunk APS for OC12/STM-4                             Now
-------------------------------------------------------------------------------
   GR 253 Direct Trunk APS for OC48/STM-16                            Now
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
Eurpoa (Rel. 8.0)
-------------------------------------------------------------------------------
   BIO 2                                                              06/00
-------------------------------------------------------------------------------
   GR 253 OC-3/STM-1, OC-12//STM-4, OC-48/STM-16                      06/00
   Direct Trunk / UNI APS
-------------------------------------------------------------------------------
   Frame BIO                                                          06/00
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
                            PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
                                                     CI OR FSA         GA
-------------------------------------------------------------------------------
   4 port OC-3/STM-1 FOS/POS                                          06/00
-------------------------------------------------------------------------------
   1 port OC-12/STM-4 FOS/POS                                         06/00
-------------------------------------------------------------------------------
   IP Navigator & Frame Relay                                         06/00
-------------------------------------------------------------------------------
   4 port DS3 ATM via GX 250                                          06/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
MAX TNT
-------------------------------------------------------------------------------
   Re. 8.0                                                            01/00
-------------------------------------------------------------------------------
   96 Modem Cards                                                     02/00
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
STINGER
-------------------------------------------------------------------------------
TAOS 7.11.1                                                           Now
-------------------------------------------------------------------------------
TAOS 8.0.x                                                            2Q00
-------------------------------------------------------------------------------
24-port ADSl and HDSL2 Line Interface Modules                         2Q00
-------------------------------------------------------------------------------
<PAGE>

                                                                       EXHIBIT C

                              OLD PRICE / NEW PRICE

                                 CITY COMPARISON

                           OLD              NEW
                           TDM            QUOTES            REDUCTION
KMC Central Office     $2,816,827        $2,567,658            -8.85%
ILEC Tandem              $483,473          $422,106           -12.69%
LSO Cob                  $966,946          $844,212           -12.69%
AT&T Cob                 $123,476          $122,350            -0.91%
MCI Cob                  $200,410          $146,926           -26.69%
IXC Cob                  $200,410          $146,926           -26.69%
Fees/Make Ready          $500,000          $500,000             0.00%
Shipping (5%)            $264,577          $212,509           -19.68%
Subtotal               $5,556,119        $4,962,687           -10.68%
Switching Machine      $2,551,741        51,950,000*          -23.58%
Grand Total            $8,107,860        $6,912,687           -14.74%

* List price not yet firm.  This price is budgetary and exemplifies a model with
pure packet  access.  Seller  commits to a minimum  twenty  percent  (20%) price
savings when compared to a 5ESS TDM Switch configuration. Access vehicles (e.g.,
RLAGs, IADs, etc.) are not included in the pricing.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]