Document:

Exhibit 10.1.27

[LETTERHEAD OF ADVANCED TELECOMMUNICATIONS, INC.]

To:         Steven K. Wachter

From:       Richard A. Smith, Chief Financial Officer/ Chief Operating Officer

Date:       July 19, 1999

Subject:    Outline of Employment Offer to Steven K. Wachter

I am pleased to present the following outline of Advanced Telecommunications,
Inc., (ATI) offer to you for the position of Senior Vice President -- Sales.

1.    Annual Direct Compensation
      Annual compensation will be $130,000.

2.    Incentive Compensation
      You will be eligible for an annual performance incentive pay package that
      could max out at 60% of your annual base pay. The performance targets will
      be based on the following metrics:

            Revenue
            Gross Margin
            Consolidated EBITDA
            Customer Satisfaction

      Performance incentive targets and pay will be assessed and granted
      quarterly upon completion of the year-end audit, reviewed and approved by
      the ATI Board of Directors.

            Base Plan (30%): Will represent the Company's budget on an annual
            basis.

            Target Plan (45%): Will represent the Company's budget adjusted as
            follows:

                              o Revenue = 104% of Budget
                              o Margin = 103% of Budget
                              o EBITDA = 89% of Budgeted Loss

            Premier Plan (60%): Will represent targets above budget that
            represent truly premier performance.

                              o Revenue = 107% of Budget
                              o Margin = 107% of Budget
                              o EBITDA = 79% of Budgeted Loss

<PAGE>

Page 2
July 19, 1999

3.    Option Grants
      You will be granted a total of 123,000 stock options broken down as
      follows:

                                 Tranche I       Tranche II          Total
                                 ---------       ----------          -----
      Shares                      90,000           33,000           123,000
      Strike Price                $5.41             $.01              NA

      Tranche II options are provided to you in order to replace the value of
      your Ameritech options and pension if you do not receive them. The options
      will be earned and vested on your anniversary as follows;

                                              Share Vesting    Percent Vesting
                                              -------------    ---------------
         End of Year      One                    24,600              20%
                          Two                    24,600              20%
                          Three                  24,600              20%
                          Four                   24,600              20%
                          Five                   24,600              20%
                                              -------------    ---------------
                          Total                 123,000             100%

      Should there be a change of control at ATI, all options granted will
      immediately be earned and vested.

      If the existing private equity funding process does not yield a $5.41 per
      share price, your exercise price will be the lesser of the private equity
      price per share or $5.41, whichever is lower.

      It is the objective of management and our key outside investor (Stolberg,
      Meehan and Seano) to increase the value of ATI at an annualized rate of at
      least 30% per year. See the following analysis for the estimated value
      generated by this grant over the next five (5) years:

      Estimated Value of S. Wachter Stock Options

                                         10%      20%      30%      40%     50%
                                       Growth   Growth   Growth   Growth  Growth
                                       ------   ------   ------   ------  ------
      Initial Grant (123,000 shares)    $.6M    $1.2M    $2.0M    $3.1M   $4.6M

      Note: These estimates of the future projected value of the option grant do
      not imply any guaranteed value -- but are based solely on
      management's/investor's expectations and their internal forecasts.

<PAGE>

Page 3
July 19, 1999

      As a key member of the ATI executive team, you will also eligible for
      additional option grants based on your individual performance and
      performance of ATI.

4.    Other Benefits
      You will also be eligible for a complete range of company benefits,
      including 401(k) (25% match on the first 6% contributed), health club
      membership reimbursement (family reimbursement is $35.00 per month),
      medical coverage, and company paid parking.

5.    Contingencies
      This offer is contingent upon successful completion of a physical
      examination, reference/background checks, and successful negotiation out
      of any/all applicable non-competes that you may have with your existing
      company.

6.    Relocation
      ATI will provide a relocation package to the Executive that is intended to
      allow the employee to remain neutral from a compensation perspective. This
      package will include the following elements:
      a) Out of pocket costs for home search (up to two family trips).
      b) All real estate commissions paid to a third party for sale of the
         primary dwelling.
      c) Points required to make interest rates equivalent to the current rate
         that the Executive pays.
      d) Closing costs on the sale and purchase of a primary dwelling.
      e) Temporary living expenses until a residence is occupied in Minneapolis
         if necessary.
      f) Home travel every two (2) weeks until the Executive's family is
         relocated.
      g) All household moving expenses with a licensed national moving company.
      h) One (1) month salary for incidentals, decorating, etc.

Steve -- I am looking forward to working with you at ATI and know that under
your leadership. the sales effort will add significant value to the shareowners
of our Company. After you receive, please call me at (612) 519-6626 to discuss.

Accepted by: /s/ Steven K. Wachter                   Date: July 20, 1999
             ------------------------------
             Steven K. Wachter

xc: File -- Steven K. Wachter<PAGE>

                                                                 Exhibit 10.1.28

[LETTERHEAD OF ADVANCED TELECOMMUNICATIONS, INC.]

Mr. Richard Smith
3940 137th Street West
Rosemount, MN 55068

June 4, 1998

Dear Rick:

Thank you for your renewed interest in our Chief Financial Officer position. The
following represents my renewed offer as previously presented:

Performance Stock Options

You will be granted 1,600 performance stock options (up from original proposal
of 1,200) at a strike price of $124.93 per share. The shares will be earned and
vested on your anniversary date as follows:

End of Year       One              530 Shares        33.3%
                  Two              530 Shares        33.3%
                  Three            540 Shares        33.4%

You will also be eligible for additional performance option shares at the rate
of 125 shares per new major market acquisition and entry.

The stock option performance criteria will be set annually by the ATI Board of
Directors.

Incentive Pay

You will be eligible for an annual performance incentive pay package that could
max out at 120% of your annual base pay. Your fiscal 1998 performance targets
will be:

                                          Loading     Base    Target   Stretch
                                             %        Plan     Plan     Plan

         1) Revenue                         20%      25,340   29,000   32,000
         2) Gross Profit                    20%      11,400   13,000   15,000
         3) EBITDA                          40%      (2,770)  (2,200)  (1,700)
         4) Cust Satisfaction               10%         7.8      8.2      8.4
         5) Empl Satisfaction               10%         7.8      8.2      8.4

<PAGE>

Performance incentive targets and pay will be assessed and granted annually upon
completion of the year end audit, reviewed and approved by the ATI Board of
Directors.

      BASE PLAN: Will represent the Company's updated long range plan on an
      annual basis.

      TARGET PLAN: Will represent the Company's annual plan and budgets.

      STRETCH PLAN: Will represent targets above budget that could and/or might
      happen with a potential home-run scenario.

Benefits

You will be eligible for a complete range of company benefits including 401K,
health club membership reimbursement, and parking.

Expenses

You will be reimbursed for all company related expenses including but not
necessarily limited to: travel, lodging, meals, vehicle mileage, association and
educational expenses.

Employment Assurance

At minimum, you will receive six months of continuing base pay should your
employment be terminated without cause.

Annual Compensation -- $130,000 to start on       /s/ Richard A. Smith 6/19/98
or before October 8th, 1998                       /s/ Richard A. Smith 6/19/98

Rick, I trust that this letter adequately covers our Thursday, June 4, 1998
discussion, and I sincerely look forward to your positive response to the same.

Best regards,

/s/ Cliff D. Williams

                              /s/ Richard A. Smith               6/19/98
Cliff D. Williams             ----------------------------       -------------
Chief Executive Officer       Accepted by Richard A. Smith       Date

CDW/ms<PAGE>

                                                                 Exhibit 10.1.29

[LETTERHEAD OF ADVANCED TELECOMMUNICATIONS, INC.]

                                 March 10, 1999

Mr. Richard A. Smith
3940 137th St. W.
Rosemount, MN 55068

Dear Rick:

This letter represents an amendment to and modification of the terms of my June
4, 1998 letter to you detailing the terms of your employment by ATI. ATI has
granted you options to purchase 1,600 shares of ATI common stock at a price of
$124.93 and 1,067 shares of ATI common stock at $170.00 per share. These options
will vest over three and five years, respectively, so long as ATI achieves the
financial performance targets established each year by its Board of Directors.

You have also purchased a $200,000 Series B 8% Convertible Subordinated
Promissory Note issued by ATI and dated as of March 10, 1999 (the "Note"). The
Note is convertible into shares of ATI Class A common stock at the price of
$124.93 per share.

This will confirm our mutual understanding that in the event of any
"change-in-control" (as defined in the Change-in-Control Severance Pay Agreement
between you and ATI) of ATI on or before October 8,2001, you may elect to
receive a lump sum cash payment, not later than 30 days after the date of the
"change-in-control," of $2,000,000 (net of the $200,000 purchase price of the
Note) in exchange for your transfer to ATI of the Note and all of your stock
options. All of your outstanding stock options shall, by reason of the
"change-in-control" be deemed earned, vested and exercisable.

If in connection with the "change in control" Stolberg Partners L.P. fails to
realize on the ATI's Preferred Stock sold by it a profit equal to the greater of
271% of its investment in such Preferred Stock and an annually compounded rate
of return thereon of 30% or more and if Stolberg Partners, L.P. and Stolberg,
Meehan & Scano II, L.P. fail to realize on their investment in any other ATI
securities sold by them, an annually compounded internal rate of return of 30%
or more, then the amount to be paid you under this letter shall be ratably
reduced by the percentage amount (determined on a blended basis) of the
shortfall from the foregoing investment targets. To illustrate the foregoing for
clarification purposes and not by way of limitation, if the blended return is
25%, the guarantied payment will be reduced from $2,000,000 to $1,666,667 (i.e.,
25%/30% x $2,000,000).

<PAGE>

Mr. Richard A. Smith
March 10, 1999

Page 2

If the foregoing accurately reflects our mutual understanding, please indicate
your acceptance and agreement by signing where indicated below and returning
such signed copy of this letter to me.

                                       Best regards,

                                       /s/ Cliff D. Williams

                                       Cliff D. Williams
                                       Chief Executive Officer

CDW/cak

ACCEPTED ON MARCH 12th, 1999.

/s/ Richard A. Smith
-----------------------------
Richard A. Smith

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}]]