Document:

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                                                                    EXHIBIT 10.1

                               WEBSIDESTORY, INC.

                 AMENDED AND RESTATED 2000 EQUITY INCENTIVE PLAN

                       TERMINATION DATE: DECEMBER 19, 2009

1.       PURPOSES.

         (a)      AMENDMENT AND RESTATEMENT. The Plan amends and restates the
WebSideStory 1998 Stock Option Plan effective August 1, 1998 and the
WebSideStory 1999 Stock Option Plan effective June 16, 1999 (the "PRIOR PLANS").
All outstanding options granted under the Prior Plans also shall be amended.

         (b)      ELIGIBLE STOCK AWARD RECIPIENTS. The persons eligible to
receive Stock Awards are the Employees, Directors and Consultants of the Company
and its Affiliates.

         (c)      AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide
a means by which eligible recipients of Stock Awards may be given an opportunity
to benefit from increases in value of the Common Stock through the granting of
the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) stock bonuses and (iv) rights to acquire restricted stock.

         (d)      GENERAL PURPOSE. The Company, by means of the Plan, seeks to
retain the services of the group of persons eligible to receive Stock Awards, to
secure and retain the services of new members of this group and to provide
incentives for such persons to exert maximum efforts for the success of the
Company and its Affiliates.

2.       DEFINITIONS.

         (a)      "AFFILIATE" means any parent corporation or subsidiary
corporation of the Company, whether now or hereafter existing, as those terms
are defined in Sections 424(e) and (f), respectively, of the Code.

         (b)      "BOARD" means the Board of Directors of the Company.

         (c)      "CODE" means the Internal Revenue Code of 1986, as amended.

         (d)      "COMMITTEE" means a committee of one or more members of the
Board appointed by the Board in accordance with subsection 3(c).

         (e)      "COMMON STOCK" means the common stock of the Company.

         (f)      "COMPANY" means WebSideStory, Inc., a California corporation.

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         (g)      "CONSULTANT" means any person, including an advisor, (i)
engaged by the Company or an Affiliate to render consulting or advisory services
and who is compensated for such services or (ii) who is a member of the Board of
Directors of an Affiliate. However, the term "Consultant" shall not include
either Directors who are not compensated by the Company for their services as
Directors or Directors who are merely paid a director's fee by the Company for
their services as Directors.

         (h)      "CONTINUOUS SERVICE" means that the Participant's service with
the Company or an Affiliate, whether as an Employee, Director or Consultant, is
not interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party's sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or
any other personal leave.

         (i)      "COVERED EMPLOYEE" means the chief executive officer and the
four (4) other highest compensated officers of the Company for whom total
compensation is required to be reported to shareholders under the Exchange Act,
as determined for purposes of Section 162(m) of the Code.

         (j)      "DIRECTOR" means a member of the Board of Directors of the
Company.

         (k)      "DISABILITY" means (i) before the Listing Date, the inability
of a person, in the opinion of a qualified physician acceptable to the Company,
to perform the major duties of that person's position with the Company or an
Affiliate of the Company because of the sickness or injury of the person and
(ii) after the Listing Date, the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

         (l)      "EMPLOYEE" means any person employed by the Company or an
Affiliate. Mere service as a Director or payment of a director's fee by the
Company or an Affiliate shall not be sufficient to constitute "employment" by
the Company or an Affiliate.

         (m)      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (n)      "FAIR MARKET VALUE" means, as of any date, the value of the
Common Stock determined as follows:

                  (i)      If the Common Stock is listed on any established
stock exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap
Market, the Fair Market Value of a share of Common Stock shall be the closing
sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or market (or the exchange or market with the greatest
volume of trading in the Common Stock) on the last market trading day prior to
the day

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of determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable.

                  (ii)     In the absence of such markets for the Common Stock,
the Fair Market Value shall be determined in good faith by the Board.

                  (iii)    Prior to the Listing Date, the value of the Common
Stock shall be determined in a manner consistent with Section 260.140.50 of
Title 10 of the California Code of Regulations.

         (o)      "INCENTIVE STOCK OPTION" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

         (p)      "LISTING DATE" means the first date upon which any security of
the Company is listed (or approved for listing) upon notice of issuance on any
securities exchange or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system if
such securities exchange or interdealer quotation system has been certified in
accordance with the provisions of Section 25100(o) of the California Corporate
Securities Law of 1968.

         (q)      "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not
a current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its parent
or a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act ("Regulation S-K")), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3.

         (r)      "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

         (s)      "OFFICER" means (i) before the Listing Date, any person
designated by the Company as an officer and (ii) on and after the Listing Date,
a person who is an officer of the Company within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated thereunder.

         (t)      "OPTION" means an Incentive Stock Option or a Nonstatutory
Stock Option granted pursuant to the Plan.

         (u)      "OPTION AGREEMENT" means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of an individual
Option grant. Each Option Agreement shall be subject to the terms and conditions
of the Plan.

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         (v)      "OPTIONHOLDER" means a person to whom an Option is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Option.

         (w)      "OUTSIDE DIRECTOR" means a Director who either (i) is not a
current employee of the Company or an "affiliated corporation" (within the
meaning of Treasury Regulations promulgated under Section 162(m) of the Code),
is not a former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

         (x)      "PARTICIPANT" means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

         (y)      "PLAN" means this WebSideStory, Inc. 2000 Equity Incentive
Plan.

         (z)      "RULE 16B-3" means Rule 16b-3 promulgated under the Exchange
Act or any successor to Rule 16b-3, as in effect from time to time.

         (aa)     "SECURITIES ACT" means the Securities Act of 1933, as amended.

         (bb)     "STOCK AWARD" means any right granted under the Plan,
including an Option, a stock bonus and a right to acquire restricted stock.

         (cc)     "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

         (dd)     "TEN PERCENT SHAREHOLDER" means a person who owns (or is
deemed to own pursuant to Section 424(d) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any of its Affiliates.

3.       ADMINISTRATION.

         (a)      ADMINISTRATION BY BOARD. The Board shall administer the Plan
unless and until the Board delegates administration to a Committee, as provided
in subsection 3(c).

         (b)      POWERS OF BOARD. The Board shall have the power, subject to,
and within the limitations of, the express provisions of the Plan:

                  (i)      To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; what type or combination of types of Stock Award shall
be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be

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permitted to receive Common Stock pursuant to a Stock Award; and the number of
shares of Common Stock with respect to which a Stock Award shall be granted to
each such person.

                  (ii)     To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

                  (iii)    To amend the Plan or a Stock Award as provided in
Section 12.

                  (iv)     Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best
interests of the Company which are not in conflict with the provisions of the
Plan.

         (c)      DELEGATION TO COMMITTEE.

                  (i)      GENERAL. The Board may delegate administration of the
Plan to a Committee or Committees of one (1) or more members of the Board, and
the term "Committee" shall apply to any person or persons to whom such authority
has been delegated. If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan.

                  (ii)     COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY
TRADED. At such time as the Common Stock is publicly traded, in the discretion
of the Board, a Committee may consist solely of two or more Outside Directors,
in accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such
authority, the Board or the Committee may (1) delegate to a committee of one or
more members of the Board who are not Outside Directors the authority to grant
Stock Awards to eligible persons who are either (a) not then Covered Employees
and are not expected to be Covered Employees at the time of recognition of
income resulting from such Stock Award or (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code and/or) (2)
delegate to a committee of one or more members of the Board who are not
Non-Employee Directors the authority to grant Stock Awards to eligible persons
who are not then subject to Section 16 of the Exchange Act.

         (d)      EFFECT OF BOARD'S DECISION. All determinations,
interpretations and constructions made by the Board in good faith shall not be
subject to review by any person and shall be final, binding and conclusive on
all persons.

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4.       SHARES SUBJECT TO THE PLAN.

         (a)      SHARE RESERVE. Subject to the provisions of Section 11
relating to adjustments upon changes in Common Stock, the Common Stock that may
be issued pursuant to Stock Awards shall not exceed in the aggregate Seven
Million Seven Hundred Thirty-Three Thousand One Hundred Fifty-Three (7,733,153)
shares of Common Stock.

         (b)      REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award
shall for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for issuance under
the Plan.

         (c)      SOURCE OF SHARES. The shares of Common Stock subject to the
Plan may be unissued shares or reacquired shares, bought on the market or
otherwise.

         (d)      SHARE RESERVE LIMITATION. Prior to the Listing Date and to the
extent then required by Section 260.140.45 of Title 10 of the California Code of
Regulations, the total number of shares of Common Stock issuable upon exercise
of all outstanding Options and the total number of shares of Common Stock
provided for under any stock bonus or similar plan of the Company shall not
exceed the applicable percentage as calculated in accordance with the conditions
and exclusions of Section 260.140.45 of Title 10 of the California Code of
Regulations, based on the shares of Common Stock of the Company that are
outstanding at the time the calculation is made.

5.       ELIGIBILITY.

         (a)      ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Incentive Stock Options
may be granted only to Employees. Stock Awards other than Incentive Stock
Options may be granted to Employees, Directors and Consultants.

         (b)      TEN PERCENT SHAREHOLDERS.

                  (i)      A Ten Percent Shareholder shall not be granted an
Incentive Stock Option unless the exercise price of such Option is at least one
hundred ten percent (110%) of the Fair Market Value of the Common Stock at the
date of grant and the Option is not exercisable after the expiration of five (5)
years from the date of grant.

                  (ii)     Prior to the Listing Date, a Ten Percent Shareholder
shall not be granted a Nonstatutory Stock Option unless the exercise price of
such Option is at least (i) one hundred ten percent (110%) of the Fair Market
Value of the Common Stock at the date of grant or (ii) such lower percentage of
the Fair Market Value of the Common Stock at the date of grant as is permitted
by Section 260.140.41 of Title 10 of the California Code of Regulations at the
time of the grant of the Option.

                  (iii)    Prior to the Listing Date, a Ten Percent Shareholder
shall not be granted a restricted stock award unless the purchase price of the
restricted stock is at least (i) one hundred

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percent (100%) of the Fair Market Value of the Common Stock at the date of grant
or (ii) such lower percentage of the Fair Market Value of the Common Stock at
the date of grant as is permitted by Section 260.140.41 of Title 10 of the
California Code of Regulations at the time of the grant of the Option.

         (c)      SECTION 162(M) LIMITATION. Subject to the provisions of
Section 11 relating to adjustments upon changes in the shares of Common Stock,
no Employee shall be eligible to be granted Options covering more than Nine
Hundred Forty-One Thousand One Hundred Seventy-Six (941,176) shares of Common
Stock during any calendar year. This subsection 5(c) shall not apply prior to
the Listing Date and, following the Listing Date, this subsection 5(c) shall not
apply until (i) the earliest of: (1) the first material modification of the Plan
(including any increase in the number of shares of Common Stock reserved for
issuance under the Plan in accordance with Section 4); (2) the issuance of all
of the shares of Common Stock reserved for issuance under the Plan; (3) the
expiration of the Plan; or (4) the first meeting of shareholders at which
Directors are to be elected that occurs after the close of the third calendar
year following the calendar year in which occurred the first registration of an
equity security under Section 12 of the Exchange Act; or (ii) such other date
required by Section 162(m) of the Code and the rules and regulations promulgated
thereunder.

         (d)      CONSULTANTS.

                  (i)      Prior to the Listing Date, a Consultant shall not be
eligible for the grant of a Stock Award if, at the time of grant, either the
offer or the sale of the Company's securities to such Consultant is not exempt
under Rule 701 of the Securities Act ("Rule 701") because of the nature of the
services that the Consultant is providing to the Company, or because the
Consultant is not a natural person, or as otherwise provided by Rule 701, unless
the Company determines that such grant need not comply with the requirements of
Rule 701 and will satisfy another exemption under the Securities Act as well as
comply with the securities laws of all other relevant jurisdictions.

                  (ii)     From and after the Listing Date, a Consultant shall
not be eligible for the grant of a Stock Award if, at the time of grant, a Form
S-8 Registration Statement under the Securities Act ("Form S-8") is not
available to register either the offer or the sale of the Company's securities
to such Consultant because of the nature of the services that the Consultant is
providing to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8, unless the
Company determines both (i) that such grant (A) shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or
(B) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii) that such
grant complies with the securities laws of all other relevant jurisdictions.

                  (iii)    Rule 701 and Form S-8 generally are available to
consultants and advisors only if (i) they are natural persons; (ii) they provide
bona fide services to the issuer, its parents, its majority-owned subsidiaries
or majority-owned subsidiaries of the issuer's parent; and (iii) the services
are not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for
the issuer's securities.

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6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following provisions:

         (a)      TERM. Subject to the provisions of subsection 5(b) regarding
Ten Percent Shareholders, no Option granted prior to the Listing Date shall be
exercisable after the expiration of ten (10) years from the date it was granted,
and no Incentive Stock Option granted on or after the Listing Date shall be
exercisable after the expiration of ten (10) years from the date it was granted.

         (b)      EXERCISE PRICE OF AN INCENTIVE STOCK OPTION. Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Incentive Stock
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

         (c)      EXERCISE PRICE OF A NONSTATUTORY STOCK OPTION. Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise
price of each Nonstatutory Stock Option granted prior to the Listing Date shall
be not less than eighty-five percent (85%) of the Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted. The
exercise price of each Nonstatutory Stock Option granted on or after the Listing
Date shall be not less than eighty-five percent (85%) of the Fair Market Value
of the Common Stock subject to the Option on the date the Option is granted.
Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with
an exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option
in a manner satisfying the provisions of Section 424(a) of the Code.

         (d)      CONSIDERATION. The purchase price of Common Stock acquired
pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (i) in cash at the time the Option is exercised
or (ii) at the discretion of the Board at the time of the grant of the Option
(or subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to
the Company of other Common Stock, (2) according to a deferred payment or other
similar arrangement with the Optionholder or (3) in any other form of legal
consideration that may be acceptable to the Board. Unless otherwise specifically
provided in the Option, the purchase price of Common Stock acquired pursuant to
an Option that is paid by delivery to the Company of other Common Stock
acquired, directly or indirectly from the Company, shall be paid only by shares
of the Common Stock of the Company that have been held for more than six (6)
months

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(or such longer or shorter period of time required to avoid a charge to earnings
for financial accounting purposes). At any time that the Company is incorporated
in Delaware, payment of the Common Stock's "par value," as defined in the
Delaware General Corporation Law, shall not be made by deferred payment.

         In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

         (e)      TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive
Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

         (f)      TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory
Stock Option granted prior to the Listing Date shall not be transferable except
by will or by the laws of descent and distribution and, to the extent provided
in the Option Agreement, to such further extent as permitted by Section
260.140.41(d) of Title 10 of the California Code of Regulations at the time of
the grant of the Option, and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. A Nonstatutory Stock Option granted on or
after the Listing Date shall be transferable to the extent provided in the
Option Agreement. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be
entitled to exercise the Option.

         (g)      VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(g) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

         (h)      MINIMUM VESTING PRIOR TO THE LISTING DATE. Notwithstanding the
foregoing subsection 6(g), to the extent that the following restrictions on
vesting are required by Section 260.140.41(f) of Title 10 of the California Code
of Regulations at the time of the grant of the Option, then:

                  (i)      Options granted prior to the Listing Date to an
Employee who is not an Officer, Director or Consultant shall provide for vesting
of the total number of shares of

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Common Stock at a rate of at least twenty percent (20%) per year over five (5)
years from the date the Option was granted, subject to reasonable conditions
such as continued employment; and

                  (ii)     Options granted prior to the Listing Date to
Officers, Directors or Consultants may be made fully exercisable, subject to
reasonable conditions such as continued employment, at any time or during any
period established by the Company.

         (i)      TERMINATION OF CONTINUOUS SERVICE. In the event an
Optionholder's Continuous Service terminates (other than upon the Optionholder's
death or Disability), the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than thirty (30) days for Options
granted prior to the Listing Date unless such termination is for cause), or (ii)
the expiration of the term of the Option as set forth in the Option Agreement.
If, after termination, the Optionholder does not exercise his or her Option
within the time specified in the Option Agreement, the Option shall terminate.

         (j)      EXTENSION OF TERMINATION DATE. An Optionholder's Option
Agreement may also provide that if the exercise of the Option following the
termination of the Optionholder's Continuous Service (other than upon the
Optionholder's death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in subsection
6(a) or (ii) the expiration of a period of three (3) months after the
termination of the Optionholder's Continuous Service during which the exercise
of the Option would not be in violation of such registration requirements.

         (k)      DISABILITY OF OPTIONHOLDER. In the event that an
Optionholder's Continuous Service terminates as a result of the Optionholder's
Disability, the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement, which period shall not be less
than six (6) months for Options granted prior to the Listing Date) or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If,
after termination, the Optionholder does not exercise his or her Option within
the time specified herein, the Option shall terminate.

         (l)      DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or (ii)
the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
option upon the Optionholder's death

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pursuant to subsection 6(e) or 6(f), but only within the period ending on the
earlier of (1) the date six (6) months following the date of death (or such
longer or shorter period specified in the Option Agreement, which period shall
not be less than six (6) months for Options granted prior to the Listing Date)
or (2) the expiration of the term of such Option as set forth in the Option
Agreement. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate.

         (m)      EARLY EXERCISE. The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Subject to the "Repurchase Limitation" in subsection
10(h), any unvested shares of Common Stock so purchased may be subject to a
repurchase option in favor of the Company or to any other restriction the Board
determines to be appropriate. Provided that the "Repurchase Limitation" in
subsection 10(h) is not violated, the Company will not exercise its repurchase
option until at least six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes) have
elapsed following exercise of the Option unless the Board otherwise specifically
provides in the Option.

         (n)      RIGHT OF REPURCHASE. Subject to the "Repurchase Limitation" in
subsection 10(h), the Option may, but need not, include a provision whereby the
Company may elect, prior to the Listing Date, to repurchase all or any part of
the vested shares of Common Stock acquired by the Optionholder pursuant to the
exercise of the Option. Provided that the "Repurchase Limitation" in subsection
10(h) is not violated, the Company will not exercise its repurchase option until
at least six (6) months (or such longer or shorter period of time required to
avoid a charge to earnings for financial accounting purposes) have elapsed
following exercise of the Option unless the Board otherwise specifically
provides in the Option.

         (o)      RIGHT OF FIRST REFUSAL. The Option may, but need not, include
a provision whereby the Company may elect, prior to the Listing Date, to
exercise a right of first refusal following receipt of notice from the
Optionholder of the intent to transfer all or any part of the shares of Common
Stock received upon the exercise of the Option. Except as expressly provided in
this subsection 6(o), such right of first refusal shall otherwise comply with
any applicable provisions of the Bylaws of the Company.

         (p)      RE-LOAD OPTIONS.

                  (i)      Without in any way limiting the authority of the
Board to make or not to make grants of Options hereunder, the Board shall have
the authority (but not an obligation) to include as part of any Option Agreement
a provision entitling the Optionholder to a further Option (a "Re-Load Option")
in the event the Optionholder exercises the Option evidenced by the Option
Agreement, in whole or in part, by surrendering other shares of Common Stock in
accordance with this Plan and the terms and conditions of the Option Agreement.
Unless otherwise specifically provided in the Option, the Optionholder shall not
surrender shares of Common Stock acquired, directly or indirectly from the
Company, unless such shares have been

                                       11
<PAGE>

held for more than six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes).

                  (ii)     Any such Re-Load Option shall (1) provide for a
number of shares of Common Stock equal to the number of shares of Common Stock
surrendered as part or all of the exercise price of such Option; (2) have an
expiration date which is the same as the expiration date of the Option the
exercise of which gave rise to such Re-Load Option; and (3) have an exercise
price which is equal to one hundred percent (100%) of the Fair Market Value of
the Common Stock subject to the Re-Load Option on the date of exercise of the
original Option. Notwithstanding the foregoing, a Re-Load Option shall be
subject to the same exercise price and term provisions heretofore described for
Options under the Plan.

                  (iii)    Any such Re-Load Option may be an Incentive Stock
Option or a Nonstatutory Stock Option, as the Board may designate at the time of
the grant of the original Option; provided, however, that the designation of any
Re-Load Option as an Incentive Stock Option shall be subject to the one hundred
thousand dollar ($100,000) annual limitation on the exercisability of Incentive
Stock Options described in subsection 10(d) and in Section 422(d) of the Code.
There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load Option
shall be subject to the availability of sufficient shares of Common Stock under
subsection 4(a) and the "Section 162(m) Limitation" on the grants of Options
under subsection 5(c) and shall be subject to such other terms and conditions as
the Board may determine which are not inconsistent with the express provisions
of the Plan regarding the terms of Options.

7.       PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

         (a)      STOCK BONUS AWARDS. Each stock bonus agreement shall be in
such form and shall contain such terms and conditions as the Board shall deem
appropriate. The terms and conditions of stock bonus agreements may change from
time to time, and the terms and conditions of separate stock bonus agreements
need not be identical, but each stock bonus agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i)      CONSIDERATION. A stock bonus may be awarded in
consideration for past services actually rendered to the Company or an Affiliate
for its benefit.

                  (ii)     VESTING. Subject to the "Repurchase Limitation" in
subsection 10(h), shares of Common Stock awarded under the stock bonus agreement
may, but need not, be subject to a share repurchase option in favor of the
Company in accordance with a vesting schedule to be determined by the Board.

                  (iii)    TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE.
Subject to the "Repurchase Limitation" in subsection 10(h), in the event a
Participant's Continuous Service terminates, the Company may reacquire any or
all of the shares of Common Stock held by the Participant which have not vested
as of the date of termination under the terms of the stock bonus agreement.

                                       12
<PAGE>

                  (iv)     TRANSFERABILITY. For a stock bonus award made before
the Listing Date, rights to acquire shares of Common Stock under the stock bonus
agreement shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Participant
only by the Participant. For a stock bonus award made on or after the Listing
Date, rights to acquire shares of Common Stock under the stock bonus agreement
shall be transferable by the Participant only upon such terms and conditions as
are set forth in the stock bonus agreement, as the Board shall determine in its
discretion, so long as Common Stock awarded under the stock bonus agreement
remains subject to the terms of the stock bonus agreement.

         (b)      RESTRICTED STOCK AWARDS. Each restricted stock purchase
agreement shall be in such form and shall contain such terms and conditions as
the Board shall deem appropriate. The terms and conditions of the restricted
stock purchase agreements may change from time to time, and the terms and
conditions of separate restricted stock purchase agreements need not be
identical, but each restricted stock purchase agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i)      PURCHASE PRICE. Subject to the provisions of
subsection 5(b) regarding Ten Percent Shareholders, the purchase price under
each restricted stock purchase agreement shall be such amount as the Board shall
determine and designate in such restricted stock purchase agreement. For
restricted stock awards made prior to the Listing Date, the purchase price shall
not be less than eighty-five percent (85%) of the Common Stock's Fair Market
Value on the date such award is made or at the time the purchase is consummated.
For restricted stock awards made on or after the Listing Date, the purchase
price shall not be less than eighty-five percent (85%) of the Common Stock's
Fair Market Value on the date such award is made or at the time the purchase is
consummated.

                  (ii)     CONSIDERATION. The purchase price of Common Stock
acquired pursuant to the restricted stock purchase agreement shall be paid
either: (i) in cash at the time of purchase; (ii) at the discretion of the
Board, according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be
acceptable to the Board in its discretion; provided, however, that at any time
that the Company is incorporated in Delaware, then payment of the Common Stock's
"par value," as defined in the Delaware General Corporation Law, shall not be
made by deferred payment.

                  (iii)    VESTING. Subject to the "Repurchase Limitation" in
subsection 10(h), shares of Common Stock acquired under the restricted stock
purchase agreement may, but need not, be subject to a share repurchase option in
favor of the Company in accordance with a vesting schedule to be determined by
the Board.

                  (iv)     TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE.
Subject to the "Repurchase Limitation" in subsection 10(h), in the event a
Participant's Continuous Service terminates, the Company may repurchase or
otherwise reacquire any or all of the shares of Common Stock held by the
Participant which have not vested as of the date of termination under the terms
of the restricted stock purchase agreement.

                                       13
<PAGE>

                  (v)      TRANSFERABILITY. For a restricted stock award made
before the Listing Date, rights to acquire shares of Common Stock under the
restricted stock purchase agreement shall not be transferable except by will or
by the laws of descent and distribution and shall be exercisable during the
lifetime of the Participant only by the Participant. For a restricted stock
award made on or after the Listing Date, rights to acquire shares of Common
Stock under the restricted stock purchase agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the
restricted stock purchase agreement, as the Board shall determine in its
discretion, so long as Common Stock awarded under the restricted stock purchase
agreement remains subject to the terms of the restricted stock purchase
agreement.

8.       COVENANTS OF THE COMPANY.

         (a)      AVAILABILITY OF SHARES. During the terms of the Stock Awards,
the Company shall keep available at all times the number of shares of Common
Stock required to satisfy such Stock Awards.

         (b)      SECURITIES LAW COMPLIANCE. The Company shall seek to obtain
from each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain
from any such regulatory commission or agency the authority which counsel for
the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to
issue and sell Common Stock upon exercise of such Stock Awards unless and until
such authority is obtained.

9.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

10.      MISCELLANEOUS.

         (a)      ACCELERATION OF EXERCISABILITY AND VESTING. The Board shall
have the power to accelerate the time at which a Stock Award may first be
exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest.

         (b)      SHAREHOLDER RIGHTS. No Participant shall be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Common Stock subject to such Stock Award unless and until such Participant
has satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

                                       14
<PAGE>

         (c)      NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or
any instrument executed or Stock Award granted pursuant thereto shall confer
upon any Participant any right to continue to serve the Company or an Affiliate
in the capacity in effect at the time the Stock Award was granted or shall
affect the right of the Company or an Affiliate to terminate (i) the employment
of an Employee with or without notice and with or without cause, (ii) the
service of a Consultant pursuant to the terms of such Consultant's agreement
with the Company or an Affiliate or (iii) the service of a Director pursuant to
the Bylaws of the Company or an Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.

         (d)      INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that
the aggregate Fair Market Value (determined at the time of grant) of Common
Stock with respect to which Incentive Stock Options are exercisable for the
first time by any Optionholder during any calendar year (under all plans of the
Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof which exceed such limit (according to the order in
which they were granted) shall be treated as Nonstatutory Stock Options.

         (e)      INVESTMENT ASSURANCES. The Company may require a Participant,
as a condition of exercising or acquiring Common Stock under any Stock Award,
(i) to give written assurances satisfactory to the Company as to the
Participant's knowledge and experience in financial and business matters and/or
to employ a purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters and that he
or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (1) the issuance of the shares of
Common Stock upon the exercise or acquisition of Common Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the Common Stock.

         (f)      WITHHOLDING OBLIGATIONS. To the extent provided by the terms
of a Stock Award Agreement, the Participant may satisfy any federal, state or
local tax withholding obligation relating to the exercise or acquisition of
Common Stock under a Stock Award by any of the following means (in addition to
the Company's right to withhold from any compensation paid to the Participant by
the Company) or by a combination of such means: (i) tendering a cash payment;
(ii) authorizing the Company to withhold shares of Common Stock from the shares
of Common Stock otherwise issuable to the Participant as a result of the
exercise or acquisition of Common Stock under the Stock Award, provided,
however, that no shares of Common Stock are

                                       15
<PAGE>

withheld with a value exceeding the minimum amount of tax required to be
withheld by law; or (iii) delivering to the Company owned and unencumbered
shares of Common Stock.

         (g)      INFORMATION OBLIGATION. Prior to the Listing Date, to the
extent required by Section 260.140.46 of Title 10 of the California Code of
Regulations, the Company shall deliver financial statements to Participants at
least annually. This subsection 10(g) shall not apply to key Employees whose
duties in connection with the Company assure them access to equivalent
information.

         (h)      REPURCHASE LIMITATION. The terms of any repurchase option
shall be specified in the Stock Award and may be either at Fair Market Value at
the time of repurchase or at not less than the original purchase price. To the
extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the
California Code of Regulations at the time a Stock Award is made, any repurchase
option contained in a Stock Award granted prior to the Listing Date to a person
who is not an Officer, Director or Consultant shall be upon the terms described
below:

                  (i)      FAIR MARKET VALUE. If the repurchase option gives the
Company the right to repurchase the shares of Common Stock upon termination of
employment at not less than the Fair Market Value of the shares of Common Stock
to be purchased on the date of termination of Continuous Service, then (i) the
right to repurchase shall be exercised for cash or cancellation of purchase
money indebtedness for the shares of Common Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock
issued upon exercise of Stock Awards after such date of termination, within
ninety (90) days after the date of the exercise) or such longer period as may be
agreed to by the Company and the Participant (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code regarding
"qualified small business stock") and (ii) the right terminates when the shares
of Common Stock become publicly traded.

                  (ii)     ORIGINAL PURCHASE PRICE. If the repurchase option
gives the Company the right to repurchase the shares of Common Stock upon
termination of Continuous Service at the original purchase price, then (i) the
right to repurchase at the original purchase price shall lapse at the rate of at
least twenty percent (20%) of the shares of Common Stock per year over five (5)
years from the date the Stock Award is granted (without respect to the date the
Stock Award was exercised or became exercisable) and (ii) the right to
repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares of Common Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock
issued upon exercise of Options after such date of termination, within ninety
(90) days after the date of the exercise) or such longer period as may be agreed
to by the Company and the Participant (for example, for purposes of satisfying
the requirements of Section 1202(c)(3) of the Code regarding "qualified small
business stock").

         (i)      REPURCHASE LIMITATION. Notwithstanding any other provisions
contained herein, Options granted pursuant to this Plan shall be subject to the
following conditions:

                  (i)      REPURCHASE RIGHT. At the Committee's discretion,
Common Stock issued pursuant to the exercise of an Option may be subject to a
right, but not an obligation, of

                                       16
<PAGE>

repurchase by the Corporation (the "Right of Repurchase"), at the price
specified in subsection 10(i)(ii), if the Optionholder ceases to be an Employee
for any reason ("Employment Termination") at any time after the grant of the
Option pursuant to which such Common Stock was issued. Common Stock issued by
the Company will only be transferable by the Optionholder subject to the Right
of Repurchase, and the Company will legend the Right of Repurchase on the stock
certificates evidencing such shares of Common Stock and will take such other
steps as it deems necessary to ensure compliance with this restriction. The
Company's rights under this subsection 10(i)(i) will be freely assignable, in
whole or in part.

                  (ii)     REPURCHASE PRICE. The price per share of Common Stock
at which the Company may exercise the Right of Repurchase under subsection
10(i)(i) (the "Repurchase Price") will be the higher of the exercise price of
each share of Common Stock as paid by the Optionholder, or Fair Market Value of
the shares of Common Stock on the date the Company sends the notice to the
Optionholder of its exercise of its Right of Repurchase pursuant to subsection
10(i)(i).

                  (iii)    REPURCHASE PROCEDURE. The Company may exercise its
Right of Repurchase by sending a written notice to the Optionholder and to the
Escrow Agent, if any, of its taking such action and specifying the number of
shares of Common Stock being repurchased. The Company's Right of Repurchase will
terminate if not exercised by written notice from the Company to the
Optionholder within 90 days of the date on which the Company learns of the
Employment Termination or the last date any Option granted to such Optionholder
is exercised, which ever is later. If the Company exercises its Right of
Repurchase, the Optionholder, or if applicable, the Escrow Agent, will deliver
to the Company every stock certificate representing the shares of Common Stock
being repurchased, together with appropriate Assignments Separate from
Certificates, and the Company will then promptly pay the total Repurchase Price
in cash (or cancellation of purchase money indebtedness for the Common Stock, if
applicable) to the Optionholder, or if applicable, to the Escrow Agent, for
delivery to the Optionholder.

                  (iv)     ELECTION TO DEFER PURCHASE OF INCENTIVE STOCK OPTION
SHARES.

                           (A)      Notwithstanding the preceding provisions of
this subsection 10(i), an Optionholder whose shares of Common Stock were issued
pursuant to an Incentive Stock Option may elect to defer the Company's
repurchase of such Common Stock pursuant to this subsection 10 (i) until the
holding period requirements of Section 422(a) of the Code are met. Such election
will be in writing in such form as the Committee may require and will be
delivered to the Company and to the Escrow Agent by certified mail no later than
seven days after the date on which the Optionholder receives notice that the
Company elects to exercise its Right of Repurchase. Such election will pertain
to all such shares of Common Stock issued to the Optionholder and will be
irrevocable.

                           (B)      With respect to an Optionholder who makes
the election described in subsection 10(i)(iv), the Company will repurchase such
Common Stock on or before the date which is 90 days following the earlier of the
date on which the Optionholder dies or the date on which the holding period
requirements of Section 422(a) of the Code are met. The Repurchase Price of each
such share of Common Stock determined under subsection 10(i)(ii) will be

                                       17
<PAGE>

calculated by substituting for the Optionholder's Employment Termination date
the earlier of the date on which the Optionholder dies or the date on which such
holding period requirements are met.

                  (v)      ESCROW. To facilitate the consummation of the
Company's Right of Repurchase under this subsection 10(i)(i), at the request of
the Committee, the Optionholder and the Company will execute Joint Escrow
Instructions and the Optionholder will deliver and deposit with the Escrow Agent
named in the Joint Escrow Instructions two "Assignments Separate from
Certificate," together with all certificates evidencing the shares of Common
Stock issued to the Optionholder pursuant to the Plan, duly endorsed in blank.
The Escrow Agent will hold such documents and deliver the same to the Company
pursuant to the Joint Escrow Instructions and in accordance with the terms of
this subsection 10(i), as applicable.

                  (vi)     BINDING EFFECT. The Company's Right of Repurchase
will inure to the benefit of its successors and assigns and will be binding on
any representative, executor, administrator, heir, or legatee of the
Optionholder.

                  (vii)    PAYMENT OF NET AMOUNT OWING. Notwithstanding anything
to the contrary contained herein, if the Company determines to exercise its
Rights of Repurchase pursuant to this subsection before any Common Stock has
been issued as a result of an exercise of an Option, in lieu of issuing any
Common Stock, the Company will have the right, but not the obligation, to pay to
the Optionholder the net amount owing to the Optionholder.

                  (viii)   TERMINATION OF RIGHT OF REPURCHASE. Notwithstanding
any other provision of this subsection 10(i)(i), in the event that the Common
Stock is listed on any United States securities exchange or traded on any formal
over-the-counter market in general use in the United States at the time the
Optionholder would otherwise be required to transfer his or her Common Stock,
the Company will no longer have the Right of Repurchase, and the Optionholder
will have no obligation to comply with this Section 10(i)(i).

         (j)      RIGHT OF FIRST REFUSAL. Notwithstanding any other provisions
contained herein, Options granted pursuant to this Plan shall be subject to the
following conditions:

                           (i)      RIGHT OF FIRST REFUSAL. At the Committee's
         discretion, Common Stock issued pursuant to the exercise of an Option
         may be subject to a requirement that if an Optionholder proposes to
         sell, pledge, or otherwise transfer any Common Stock acquired pursuant
         to exercise of an Option, or any interest in such Common Stock, to any
         person or entity, the Company will have a right of first refusal (the
         "Right of First Refusal") with respect to such Common Stock. Any
         Optionholder desiring to transfer Common Stock subject to the Right of
         First Refusal will give a written notice (the "Transfer Notice") to the
         Company describing fully the proposed transfer, including the number of
         shares of Common Stock proposed to be transferred, the proposed
         transfer price, and the name and address of the proposed transferee.
         The Transfer Notice will be signed both by the Optionholder and by the
         proposed transferee and must constitute a binding commitment of both
         parties to the transfer of the Common Stock. The Company will have the
         right to purchase the Common Stock subject to the Transfer Notice on
         the

                                       18
<PAGE>
         terms of the proposal referred to in the Transfer Notice, subject to
         any change in such terms permitted under subsection 10(j)(ii), by
         delivery of a notice of exercise of the Right of First Refusal within
         30 days after the date the Transfer Notice is received by the Company.
         The Company's rights under this subsection 10(j)(i) will be freely
         assignable, in whole or in part.

                  (ii)     TRANSFER OF SHARES. If the Company fails to exercise
         the Right of First Refusal within 30 days after the date on which it
         receives the Transfer Notice, the Optionholder may, not later than six
         months following receipt of the Transfer Notice by the Company,
         consummate a transfer of the Common Stock subject to the Transfer
         Notice on the terms and conditions described in the Transfer Notice.
         Any proposed transfer on terms and conditions different from those
         described in the Transfer Notice, as well as any subsequent proposed
         transfer by the Optionholder, will again be subject to the Right of
         First Refusal and will again require compliance with the procedure
         described in Section 10(j)(i). If the Company exercises its Right of
         First Refusal, the Optionholder will immediately endorse and deliver to
         the Company every stock certificate representing the Common Stock being
         purchased, and the Company will then promptly pay the purchase price in
         accordance with the terms set forth in the Transfer Notice.

                  (iii)    REPURCHASE PAYMENT. The amount payable to an
         Optionholder pursuant to the Company's exercise of the Right of First
         Refusal will be paid to the Optionholder in accordance with the terms
         and conditions of the Transfer Notice or may, at the election of the
         Company, be paid in full in cash.

                  (iv)     BINDING EFFECT. The Company's Right of First Refusal
         will inure to the benefit of its successors and assigns and will be
         binding upon any transferee of the Common Stock, other than a
         transferee acquiring Common Stock in a transaction with respect to
         which the Company failed to exercise its Right of First Refusal (a
         "Free Transferee") or a transferee of a Free Transferee.

                  (v)      TERMINATION OF RIGHT OF FIRST REFUSAL.
         Notwithstanding any other provision of this subsection 10(j), if the
         Common Stock is listed on any United States securities exchange or
         traded on any formal over-the-counter market in general use in the
         United States at the time the Optionholder desires to transfer his or
         her Common Stock, the Company will no longer have the Right of First
         Refusal, and the Optionholder will have no obligation to comply with
         this subsection 10(j).

11.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a)      CAPITALIZATION ADJUSTMENTS. If any change is made in the
Common Stock subject to the Plan, or subject to any Stock Award, without the
receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of securities subject
to the Plan pursuant to subsection 4(a) and the

                                       19
<PAGE>

maximum number of securities subject to award to any person pursuant to
subsection 5(c), and the outstanding Stock Awards will be appropriately adjusted
in the class(es) and number of securities and price per share of Common Stock
subject to such outstanding Stock Awards. The Board shall make such adjustments,
and its determination shall be final, binding and conclusive. (The conversion of
any convertible securities of the Company shall not be treated as a transaction
"without receipt of consideration" by the Company.)

         (b)      CHANGE IN CONTROL--DISSOLUTION OR LIQUIDATION. In the event of
a dissolution or liquidation of the Company, then all outstanding Stock Awards
shall terminate immediately prior to such event. The Committee will notify the
Optionholder not less than 15 days prior to the proposed consummation of a
pending dissolution or liquidation, and the Option will be exercisable as to all
Common Stock which are vested prior to expiration until immediately prior to the
consummation of such action.

         (c)      CHANGE IN CONTROL--ASSET SALE, MERGER, CONSOLIDATION OR
REVERSE MERGER. In the event of (i) a sale, lease or other disposition of all or
substantially all of the assets of the Company, (ii) a merger or consolidation
in which the Company is not the surviving corporation or (iii) a reverse merger
in which the Company is the surviving corporation but the shares of Common Stock
outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, then any surviving corporation or acquiring corporation shall assume
any Stock Awards outstanding under the Plan or shall substitute similar stock
awards (including an award to acquire the same consideration paid to the
shareholders in the transaction described in this subsection 11(c) for those
outstanding under the Plan). In the event any surviving corporation or acquiring
corporation refuses to assume such Stock Awards or to substitute similar stock
awards for those outstanding under the Plan, then with respect to Stock Awards
held by Participants whose Continuous Service has not terminated, the vesting of
such Stock Awards (and, if applicable, the time during which such Stock Awards
may be exercised) shall be accelerated in full, and the Stock Awards shall
terminate if not exercised (if applicable) at or prior to such event. With
respect to any other Stock Awards outstanding under the Plan, such Stock Awards
shall terminate if not exercised (if applicable) prior to such event. The
Committee will notify the Optionholder not less than 15 days prior to the
proposed consummation of such transaction, and the Option will be exercisable as
to all Common Stock which are vested prior to expiration and until immediately
prior to the consummation of such transaction.

12.      AMENDMENT OF THE PLAN AND STOCK AWARDS.

         (a)      AMENDMENT OF PLAN. The Board at any time, and from time to
time, may amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the shareholders of the Company to the extent shareholder approval
is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3
or any Nasdaq or securities exchange listing requirements.

         (b)      SHAREHOLDER APPROVAL. The Board may, in its sole discretion,
submit any other amendment to the Plan for shareholder approval, including, but
not limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations

                                       20
<PAGE>

thereunder regarding the exclusion of performance-based compensation from the
limit on corporate deductibility of compensation paid to certain executive
officers.

         (c)      CONTEMPLATED AMENDMENTS. It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

         (d)      NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted
before amendment of the Plan shall not be impaired by any amendment of the Plan
unless (i) the Company requests the consent of the Participant and (ii) the
Participant consents in writing.

         (e)      AMENDMENT OF STOCK AWARDS. The Board at any time, and from
time to time, may amend the terms of any one or more Stock Awards; provided,
however, that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

13.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a)      PLAN TERM. The Board may suspend or terminate the Plan at any
time. Unless sooner terminated, the Plan shall terminate on the day before the
tenth (10th) anniversary of the date the Plan is adopted by the Board or
approved by the shareholders of the Company, whichever is earlier. No Stock
Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

         (b)      NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan
shall not impair rights and obligations under any Stock Award granted while the
Plan is in effect except with the written consent of the Participant.

14.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as determined by the Board, but no
Stock Award shall be exercised (or, in the case of a stock bonus, shall be
granted) unless and until the Plan has been approved by the shareholders of the
Company, which approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board.

15.      CHOICE OF LAW.

         The law of the State of California shall govern all questions
concerning the construction, validity and interpretation of this Plan, without
regard to such state's conflict of laws rules.

                                       21<PAGE>

                                                                    EXHIBIT 10.3

[LEVEL(3) LOGO]

                          TERMS FOR DELIVERY OF SERVICE

These Terms for Delivery of Service ("Terms") apply to and will be considered a
part of any "Customer Order" signed by Customer for Services delivered by Level
3 Communications, LLC ("Level 3"). These Terms (including the specific terms for
each Service as attached) are applicable to sales of Service located in,
originating or terminating in the United States.

SECTION 1. DEFINITIONS

1.1   COLOCATION AREA: The location within a Gateway in which Colocation Space
ordered by Customer is located.

1.2   COLOCATION SPACE: The location(s) within the Colocation Area of a Level 3
Gateway where Customer is permitted to colocate communications equipment
pursuant to a Customer Order accepted by Level 3.

1.3   COMMITTED DATA RATE: The minimum data rate committed by Customer and set
forth in the Customer Order (expressed in Megabits per second (Mbps)).

1.4   CONNECTION NOTICE: Written notice from Level 3 that the Service ordered
has been installed by Level 3 pursuant to the Customer Order, and has been
tested and is functioning properly.

1.5   CUSTOMER: The person or entity identified as the "Customer" on any
Customer Order.

1.6   CUSTOMER COMMIT DATE: The date upon which Level 3 anticipates that Service
will be available to Customer, as set forth in the Customer Welcome Letter or
such other written notice from Level 3 to Customer.

1.7   CUSTOMER ORDER: A request for Level 3 Service submitted by Customer in the
form designated by Level 3.

1.8   CUSTOMER PREMISES: The location or locations occupied by Customer or its
end users to which Service is delivered.

1.9   CUSTOMER WELCOME LETTER: A written communication from Level 3 to Customer
informing Customer of Level 3's acceptance of the Customer Order.

1.10  EXCUSED OUTAGE: Any outage, unavailability, delay or other degradation of
Service related to, associated with or caused by scheduled maintenance events,
Customer actions or inactions, Customer provided power or equipment, any third
party, including, without limitation, Customer's end users, third party network
providers, traffic exchange points controlled by third parties, or any power,
equipment or services provided by third parties, or an event of force majeure as
defined in Section 7.1.

1.11  FACILITIES: Property owned or leased by Level 3 and used to deliver
Service, including terminal and other equipment, wires, lines, ports, routers,
switches, channel service units, data service units, cabinets, racks, private
rooms and the like.

1.12  GATEWAY: Buildings owned or leased by Level 3 for the purpose of, among
others, locating and colocating communications equipment.

1.13  LOCAL LOOP: The connection between Customer Premises and the Level 3
intercity backbone network.

1.14  OFF-NET: Traffic that originates from or terminates to any location that
is not on the Level 3 network.

1.15  OFF-NET SEND TRAFFIC: Send Traffic that terminates to any location which
is not on the Level 3 network.

1.16  ON-NET: Traffic that originates from and terminates to a location that is
on the Level 3 network.

1.17  ON-NET SEND TRAFFIC: Send Traffic that terminates to a location which is
on the Level 3 network.

1.18  ON-NET INTRACITY SEND TRAFFIC: On-Net Send Traffic that does not transit
Level 3's long haul transmission facilities.

1.19  PROTECTED: (3)Link(SM) Private Line Service that includes a protection
scheme that allows traffic to be re-routed in the event of a fiber cut or
equipment failure.

1.20  RECEIVE TRAFFIC: Traffic from any origination point that is received by
Customer from the Level 3 network.

1.21  REMOTE HANDS: Basic on-site, first-line maintenance and support consistent
with Level 3's then current Remote Hands Service Policy and Managed Installation
Policy, as amended by Level 3 from time to time, which are available to Customer
upon request.

1.22  REVENUE COMMITMENT: A commitment by Customer to order and pay for a
minimum volume of Services during an agreed term, as set forth in a Customer
Order

1.23  SEND TRAFFIC: Traffic from any origination point which is sent by Customer
onto the Level 3 network.

1.24  SERVICE: Any service offered by Level 3 pursuant to a Customer Order,
including supplying Colocation Space.

1.25  SERVICE COMMENCEMENT DATE: The Service Commencement Date is the first to
occur of:

(A)   the date upon which Customer acknowledges in writing that the Service has
been installed and is functioning properly; or

(B)   the date which is seventy two (72) hours after delivery of the Connection
Notice for the Service (or, if two or more Services are designated as "bundled"
in any Customer Order, seventy two (72) hours after delivery of the Connection
Notice for all Services in the bundle); or

(C)   the date Customer begins using the Service.

1.26  SERVICE TERM: The duration of time (measured starting on the Service
Commencement Date) for which Service is ordered, as specified in the Customer
Order. The Service Term shall continue on a month-to-month basis after
expiration of the stated Service Term, until terminated by either Level 3 or
Customer upon thirty (30) days' written notice to the other.

                                  Page 1 of 12
<PAGE>

1.27  UNPROTECTED: (3)Link(SM) Private Line Service that does not include a
protection scheme that would allow traffic to be re-routed in the event of a
fiber cut or equipment failure.

SECTION 2. DELIVERY OF SERVICE

2.1   SUBMISSION OF CUSTOMER ORDER FORMS. To order any Service, Customer may
submit a Customer Order requesting Service. Unless otherwise agreed, Customer is
not obligated to submit Customer Orders. The Customer Order form and its backup
detail must include a description of the Service, the nonrecurring charges and
monthly recurring charges for Service and any applicable Service Term and/or
Revenue Commitment.

2.2   ACCEPTANCE BY LEVEL 3. Upon receipt of a Customer Order, if Level 3
determines (in its sole discretion) to accept the Customer Order, Level 3 will
deliver a Customer Welcome Letter for the requested Service (or some portion of
the Services). Level 3 will become obligated to deliver ordered Service only if
Level 3 has delivered a Customer Welcome Letter respecting the Service.

2.3   CREDIT APPROVAL AND DEPOSITS. Customer will provide Level 3 with credit
information as requested, and delivery of Service is subject to credit approval.
Level 3 may require Customer to make a deposit (which will not exceed Customer's
estimated charges for two months' Service) as a condition to Level 3's
acceptance of any Customer Order, or as a condition to Level 3's continuation of
Service. The deposit will be held by Level 3 as security for payment of
Customer's charges. When Service to Customer is terminated, the amount of the
deposit will be credited to Customer's account and any remaining credit balance
will be refunded.

2.4   CUSTOMER PREMISES. Customer shall allow Level 3 access to the Customer
Premises to the extent reasonably determined by Level 3 for the installation,
inspection and scheduled or emergency maintenance of Facilities relating to the
Service. Level 3 shall notify Customer two (2) business days in advance of any
regularly scheduled maintenance that will require access to the Customer
Premises. Customer will be responsible for providing and maintaining, at its own
expense, the level of power, heating and air conditioning necessary to maintain
the proper environment for the Facilities on the Customer Premises. In the event
Customer fails to do so, Customer shall reimburse Level 3 for the actual and
reasonable cost of repairing or replacing any Facilities damaged or destroyed as
a result of Customer's failure. Customer will provide a safe place to work and
comply with all laws and regulations regarding the working conditions on the
Customer Premises.

2.5   LEVEL 3 FACILITIES. Except as otherwise agreed, title to all Facilities
shall remain with Level 3. Level 3 will provide and maintain the Facilities in
good working order. Customer shall not, and shall not permit others to,
rearrange, disconnect, remove, attempt to repair, or otherwise tamper with any
Facilities, without the prior written consent of Level 3. The Facilities shall
not be used for any purpose other than that for which Level 3 provides them.
Customer shall not take any action that causes the imposition of any lien or
encumbrance on the Facilities. In no event will Level 3 be liable to Customer or
any other person for interruption of Service or for any other loss, cost or
damage caused or related to improper use or maintenance of the Facilities by
Customer or third parties provided access to the Facilities by Customer in
violation of these Terms, and Customer shall reimburse Level 3 for any damages
incurred as a result thereof. Customer agrees (which agreement shall survive the
expiration, termination or cancellation of any Customer Order) to allow Level 3
to remove the Facilities from the Customer Premises:

(A)   after termination, expiration or cancellation of the Service Term in
connection with which the Facilities were used; or

(B)   for repair, replacement or otherwise as Level 3 may determine is necessary
or desirable, but Level 3 will use reasonable efforts to minimise disruptions to
the Service caused thereby.

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

SECTION 3. BILLING AND PAYMENT

3.1   COMMENCEMENT OF BILLING. Upon installation and testing of the Service
ordered in any Customer Order, Level 3 will deliver to Customer a Connection
Notice. Upon receipt of the Connection Notice, Customer shall have a period of
seventy two (72) hours to confirm that the Service has been installed and is
properly functioning. Unless Customer delivers written notice to Level 3 within
such seventy two (72) hour period that the Service is not installed in
accordance with the Customer Order and functioning properly, billing shall
commence on the applicable Service Commencement Date, regardless of whether
Customer has procured services from other carriers needed to operate the
Service, and regardless of whether Customer is otherwise prepared to accept
delivery of ordered Service.

3.2   CHARGES. The Customer Order will set forth the applicable non-recurring
charges and recurring charges for the Service. In the event such Service
requires Level 3 to install additional infrastructure, cabling, electronics or
other materials in the provision of the Service, such Customer Order may include
(as specified therein) non-recurring charges that are payable by Customer
immediately upon Level 3's acceptance of such Customer Order. In the event
Customer fails to pay such non recurring charges within two (2) business days
following Level 3's delivery to Customer of the Customer Welcome Letter, (i)
such failure to pay shall constitute an Excused Outage for purposes of
installation of the Service; (ii) Level 3 may issue a revised Customer Commit
Date; and (iii) Level 3 may suspend installation of the Service until receipt of
such non-recurring charges. If Customer requests and Level 3 approves (in its
sole discretion) any changes to the Customer Order or Service after acceptance
by Level 3, including, without limitation, the Service installation date or
Service Commencement Date, additional non-recurring charges and/or monthly
recurring charges not otherwise set forth in the Customer Order may apply.

3.3   PAYMENT OF INVOICES. Invoices are delivered monthly. Level 3 bills in
advance for Service to be provided during the upcoming month, except for charges
which are dependent

                                  Page 2 of 12
<PAGE>

upon usage of Service, which are billed in arrears. Billing for partial months
are prorated based on a calendar month. All invoices are due thirty (30) days
after the date of invoice. Past due amounts bear interest at a rate of 1.5% per
month (or the highest rate allowed by law, whichever is less) beginning from the
date first due until paid in full. For Level 3 (3)Voice(SM) Service which
terminates on the PSTN (Public Switched Telephone Network) only (see Sections 12
and 13), Customer will be provided, in addition to its invoice, a summary report
describing the total amount due from Customer to Level 3 and the total cost of
Customer's recurring fees, non-recurring fees and total usage charges. Usage
detail will be provided via FTP format on a daily basis. Customer will also be
provided monthly telemanagement reports as follows: a Terminating LATA Summary
Report; a Terminating LEG Report; and a Terminating County Summary Report.

3.4   TAXES AND FEES. All charges for Service are net of applicable taxes.
Except for taxes based on Level 3's net income, Customer will be responsible for
all applicable taxes that arise in any jurisdiction, including, without
limitation, value added, consumption, sales, use, gross receipts, excise,
access, bypass, franchise or other taxes, fees, duties, charges or surcharges,
however designated, imposed on, incident to, or based upon the provision, sale
or use of the Service.

3.5   REGULATORY AND LEGAL CHANGES. In the event of any change in applicable
law, regulation, decision, rule or order that materially increases the costs or
other terms of delivery of Service, Level 3 and Customer will negotiate
regarding the rates to be charged to Customer to reflect such increase in cost
and, in the event that the parties are unable to reach agreement respecting new
rates within thirty (30) days after Level 3's delivery of written notice
requesting renegotiation, then (a) Level 3 may pass such increased costs through
to Customer, and (b) Customer may terminate the affected Customer Order without
termination liability by delivering written notice of termination no later than
thirty (30) days after the effective date of the rate increase.

3.6   DISPUTED INVOICES. If Customer reasonably disputes any portion of a Level
3 invoice, Customer must pay the undisputed portion of the invoice and submit a
written claim for the disputed amount. All claims must be submitted to Level 3
within sixty (60) days of receipt of the invoice for those Services. Customer
waives the right to dispute any charges not disputed within such sixty (60) day
period. In the event that the dispute is resolved against Customer, Customer
shall pay such amounts plus interest at the rate referenced in Section 3.3.

3.7   REVENUE COMMITMENT. In the event that Customer makes a Revenue Commitment
in any Customer Order, then Customer will be billed for and be responsible to
pay the greater of (a) the recurring charges for Service ordered and delivered,
or (b) the amount of the Revenue Commitment.

3.8   TERMINATION CHARGES. (A) Customer may cancel a Customer Order following
Level 3's acceptance of the same and prior to the Customer Commit Date, upon
prior written notice to Level 3. In the event that Customer does so, or in the
event that the delivery of such Service is terminated by Level 3 prior to
delivery of a Connection Notice due to a failure of Customer to comply with
these Terms, Customer shall pay Level 3 a cancellation charge equal to the sum
of (i) in the case of Colocation Space, the costs incurred by Level 3 in
returning the Colocation Space to a condition suitable for use by third parties,
plus (ii) the greater of:

      (a) any third party cancellation/termination charges and other Level 3 out
of pocket expenses related to the installation and/or cancellation of Service,
or

      (b) as the case may be:

      (i) one (1) month's monthly recurring charges for the cancelled Service if
      written notice of cancellation is received by Level 3 more than five (5)
      business days prior to the Customer Commit Date; or

      (ii) three (3) month's monthly recurring charges for the cancelled Service
      if written notice of cancellation is received by Level 3 five (5) business
      days or less prior to the Customer Commit Date.

Customer's right to cancel any particular Service under this Section 3.8(B)
shall automatically expire and shall no longer apply upon Level 3's delivery to
Customer of a Connection Notice for such Service.

(B)   In addition to Customer right of cancellation under Section 3.8(A) above,
Customer may terminate Service prior to the end of the Service Term upon thirty
(30) days' prior written notice to Level 3, subject to the following termination
charges. In the event that, after either the Customer Commit Date or Customer's
receipt of the Connection Notice for a particular Service (whichever occurs
first) and prior to the end of the Service Term, Customer terminates Service or
in the event that the delivery of Service is terminated due to a failure of
Customer to comply with these Terms, Customer shall pay Level 3 a termination
charge equal to the sum of (i) in the case of Colocation Space, the costs
incurred by Level 3 in returning the Colocation Space to a condition suitable
for use by third parties, plus (ii) the greater of

      (a) any third party cancellation/termination charges and other Level 3 out
of pocket expenses related to the installation and/or termination of Service; or

      (b) the percentage of the monthly recurring charges for the terminated
Service calculated from the effective date of termination as (1) 100% of the
monthly recurring charges that would have been incurred for the Service for
months 1-12 of the Service Term, plus (2) 50% of the monthly recurring charges
that would have been incurred for the Service for months 13 through the end of
the Service Term.

3.9   FRAUDULENT USE OF SERVICES. Customer is responsible for all charges
attributable to Customer incurred respecting Service, even if incurred as the
result of fraudulent or unauthorized use of Service.

3.10  SERVICE TERM. Except as otherwise set forth herein, Level 3 shall deliver
the Service for the entire duration of the Service Term, and Customer shall pay
all charges for delivery thereof through the end of the Service Term.

SECTION 4. DISCONTINUANCE OF CUSTOMER ORDERS

4.1   DISCONTINUANCE OF CUSTOMER ORDER BY LEVEL 3. Level 3 may terminate any
Customer Order and discontinue Service without liability:

(A)   if Customer fails to pay a past due balance for Service (other than
amounts reasonably disputed under Section 3.6) (i) within three (3) business
days after written notice from Level 3

                                  Page 3 of 12
<PAGE>

respecting charges invoiced in arrears, or (ii) within seven (7) business days
after written notice from Level 3 respecting charges invoiced in advance;

(B)   if Customer violates any law, rule, regulation or policy of any government
authority related to Service; if Customer makes a material misrepresentation to
Level 3 in connection with the ordering or delivery of Service; if Customer's
Service is delivered by Level 3 within a third party colocation facility and
Level 3's rights to provide Service therein is terminated; if Customer engages
in any fraudulent use of Service; or if a court or other government authority
prohibits Level 3 from furnishing Service;

(C)   if Customer fails to cure its breach (other than as addressed in
sub-Sections (A), (B), (D) or (E) of this Section 4.1) of any of these Terms or
any Customer Order within thirty (30) days after written notice thereof provided
by Level 3;

(D)   if Customer files bankruptcy, for reorganization, or fails to discharge an
involuntary petition therefore within sixty (60) days; or

(E)   if Customer's use of Service materially exceeds Customer's credit limit,
unless within one (1) day's written notice thereof by Level 3, Customer provides
adequate security for payment for Service.

4.2   EFFECT OF DISCONTINUANCE. Upon Level 3's discontinuance of Service to
Customer, Level 3 may, in addition to all other remedies that may be available
to Level 3 at law or in equity, assess and collect from Customer any applicable
termination charge.

4.3   DISCONTINUANCE OF CUSTOMER ORDER BY CUSTOMER.

(A)   If Level 3's installation of Service is delayed for more than thirty (30)
business days beyond the Customer Commit Date for reasons other than an Excused
Outage, Customer may terminate and discontinue the affected Service upon written
notice to Level 3 and without payment of any applicable termination charge;
provided such written notice is delivered prior to Level 3 delivering to
Customer the Connection Notice for the affected Service. This Section 4.3(A)
shall not apply to any Off-Net Local Loop Service, including, without
limitation, (3)Link(SM) Metropolitan Private Line (Off-Net) Service, provisioned
by Level 3 through a third party carrier for the benefit of Customer.

(B)   Customer may terminate and discontinue affected Service (excluding
Unprotected (3)Link(SM) Private Line Service) prior to the end of the Service
Term without payment of any applicable termination charge if: (i) such Service
is Unavailable (as defined below) on two or more separate occasions of more than
eight (8) hours each in any thirty (30) day period, and (ii) following written
notice thereof from Customer to Level 3, the same Service is Unavailable for
more than twelve (12) hours at any time within the twelve (12) month period
immediately following said notice. For purposes of the foregoing, "Unavailable"
shall mean a total interruption in Service, except for any interruption which is
an Excused Outage. The duration of any interruption will commence when Customer
reports an outage to the Level 3 Customer Service and Support Organization
(1-877-4LEVEL3) and will end when the Service is operative. Customer may only
terminate Service which is Unavailable, and must exercise its right to terminate
any affected Service under this Section, in writing, within thirty (30) days
after the event giving rise to a right of termination hereunder. This Section
4.3(B) shall not apply to Unprotected (3)Link(SM) Private Line Service.

(C)   In the event Customer elects to cancel the affected Service pursuant to
this Section 4.3, Customer shall have no right to, and Level 3 shall have no
obligation to pay, any Service Level credit(s) pursuant to Section 15 for the
discontinued Service.

SECTION 5. LIABILITIES

5.1   SERVICE INTERRUPTIONS AND DELIVERY. Level 3 provides specific remedies
regarding installation and performance of Service as set forth in Section 15
below ("Service Levels "). In the event of a failure to deliver Service in
accordance with the Service Levels, Customer's sole remedies are contained in
(a) the Service Levels applicable (if any) to the affected Service, and (b)
Section 4.3.

5.2   NO SPECIAL DAMAGES. Notwithstanding any other provision hereof, neither
party shall be liable for any indirect, incidental, special, consequential,
exemplary or punitive damages (including but not limited to damages for lost
profits, lost revenues or the cost of purchasing replacement services) arising
out of the performance or failure to perform under any Customer Order.

5.3   DISCLAIMER OF WARRANTIES. LEVEL 3 MAKES NO WARRANTIES OR REPRESENTATIONS,
EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW STATUTORY OR
OTHERWISE, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
USE, EXCEPT THOSE EXPRESSLY SET FORTH IN ANY APPLICABLE SERVICE LEVELS.

SECTION 6. PUBLICITY

6.1   PUBLICITY. Neither party shall have the right to use the other party's or
its affiliates' trademarks, service marks or trade names or to otherwise refer
to the other party in any marketing, promotional or advertising materials or
activities. Neither party shall issue any publication or press release relating
to any contractual relationship between Level 3 and Customer, except as may be
required by law or agreed between the parties.

6.2   DISCLOSURE OF CUSTOMER INFORMATION. Level 3 reserves the right to provide
any customer or potential customer bound by a nondisclosure agreement access to
a list of Level 3's customers and a description of Service purchased by such
customers. Customer consents to such disclosure, including the listing of
Customer's name and Service purchased by Customer (financial terms relating to
the purchase shall not be disclosed).

SECTION 7. GENERAL TERMS

7.1   FORCE MAJEURE. Neither party shall be liable, nor shall any credit
allowance or other remedy be extended, for any failure of performance or
equipment due to causes beyond such party's reasonable control. In the event
Level 3 is unable to deliver Service as a result of force majeure, Customer
shall not be obligated to pay Level 3 for the affected Service for so long as
Level 3 is unable to deliver; provided, however, that the Service Term of such
Service shall be extended for the period of time that Customer was not required
to pay for the affected Service.

                                  Page 4 of 12
<PAGE>

7.2   ASSIGNMENT AND RESALE. Customer may not assign its rights and obligations
under a Customer Order without the express prior written consent of Level 3,
which will not be unreasonably withheld. These Terms shall apply to any
permitted transferees or assignees. Customer shall remain liable for the payment
of all charges due under each Customer Order. Customer may resell the Service to
third party "end users", provided that Customer agrees to indemnify, defend and
hold Level 3 harmless from claims made against Level 3 by such end users.

7.3   NOTICES. Notices hereunder shall be deemed properly given when delivered,
if delivered in person, or when sent via facsimile, overnight courier,
electronic mail or when deposited with the U.S. Postal Service, (a) with respect
to Customer, the address listed on any Customer Order, or (b) with respect to
Level 3, to: Customer Financial Services - Contract Administration, Level 3
Communications, LLC, 1025 Eldorado Boulevard, Broomfield CO 80021, e-mail:
contractadimin@level3.com. Customer shall notify Level 3 of any changes to its
addresses listed on any Customer Order.

7.4   INDEMNIFICATION. Each party shall indemnify the other from any claims by
third parties and expenses (including legal fees and court costs) respecting
damage to tangible property, personal injury or death caused by such party's
negligence or willful misconduct

7.5   APPLICATION OF TARIFFS. Level 3 may elect or be required to file with the
appropriate regulatory agency tariffs respecting the delivery of certain
Service. In the event that such tariffs are filed respecting Service ordered by
Customer, then (to the extent such provisions are not inconsistent with the
terms of a Customer Order) the terms set forth in the applicable tariff shall
govern Level 3's delivery of, and Customer's consumption or use of, such
Service.

7.6   CONTENTS OF COMMUNICATIONS. Level 3 shall have no liability or
responsibility for the content of any communications transmitted via the
Service, and Customer shall defend, indemnify and hold Level 3 harmless from any
and all claims (including claims by governmental entities seeking to impose
penal sanctions) related to such content or for claims by third parties relating
to Customer's use of Service. Level 3 provides only access to the Internet;
Level 3 does not operate or control the information, services, opinions or other
content of the Internet. Customer agrees that it shall make no claim whatsoever
against Level 3 relating to the content of the Internet or respecting any
information, product, service or software ordered through or provided by virtue
of the Internet.

7.7   ENTIRE UNDERSTANDING These Terms, including any Customer Orders executed
hereunder, constitute the entire understanding of the parties related to
Service. In the event of any conflict between these Terms and the terms and
conditions of any Customer Order, these Terms shall control. These Terms shall
be governed and construed in accordance with the laws of the state of Colorado.

7.8   NO WAIVER. No failure by either party to enforce any rights hereunder
shall constitute a waiver of such right(s).

7.9   ACCEPTABLE USE POLICY. Customer's use of Service shall at all times comply
with Level 3's then-current Acceptable Use Policy and Privacy Policy, as amended
by Level 3 from time to time and which are available through Level 3's web site
at www.level3.com. Level 3 will notify Customer of complaints received by Level
3 regarding each incident of alleged violation of Level 3's Acceptable Use
Policy by Customer or third parties that have gained access to the Service
through Customer. Customer agrees that it will promptly investigate all such
complaints and take all necessary actions to remedy any actual violations of
Level 3's Acceptable Use Policy. Level 3 may identify to the complainant that
Customer, or a third party that gained access to the Service through Customer,
is investigating the complaint and may provide the complainant with the
necessary information to contact Customer directly to resolve the complaint.
Customer shall identify a representative for the purposes of receiving such
communications. Level 3 reserves the right to install and use, or to have
Customer install and use, any appropriate devices to prevent violations of its
Acceptable Use Policy, including devices designed to filter or terminate access
to Service.

SECTION 8. (3)LINK(SM) PRIVATE LINE SERVICE

8.1   APPLICABILITY. This Section is applicable only where Customer orders
(3)Link(SM) Private Line Service.

8.2   SERVICES FROM OTHERS. Where necessary for the interconnection of
(3)Link(SM) Private Line Service with services provided by others, Customer
will provide Level 3 with circuit facility assignment information, firm order
commitment information and the design layout records necessary to enable Level 3
to make the necessary cross-connection between the (3)Link(SM) Private Line
Service and Customer's designated carrier. Any delay by Customer in providing
such information to Level 3 may delay Level 3's provision of the necessary
cross-connection. Notwithstanding any such delay in the provision of the
cross-connection, billing for the (3)Link(SM) Private Line Service shall
commence on the Service Commencement Date as provided in Section 3.1. Level 3
may charge Customer non-recurring and monthly recurring cross- connect fees to
make such connection.

8.3   CONNECTION TO CUSTOMER PREMISES. Where (3)Link(SM) Private Line Service is
being terminated Off-Net at the Customer Premises, the charges set forth in the
Customer Order for such Service assumes that such Service will be terminated at
a pre-established demarcation point or minimum point of entry (MPOE) in the
building within which the Customer Premises is located, as determined by the
local access provider. Level 3 may charge Customer additional non-recurring
charges and/or monthly recurring charges not otherwise set forth in the Customer
Order for such Off-Net Service where the local access provider determines that
it is necessary to extend the demarcation point or MPOE through the provision of
additional infrastructure, cabling, electronics or other materials necessary to
reach the Customer Premises. Level 3 will notify Customer of any additional
non-recurring charges and/or monthly recurring charges as soon as practicable
after Level 3 is notified by the local access provider of the amount of such
charges.

SECTION 9. (3) CENTER(SM) COLOCATION

9.1   APPLICABILITY. This Section is applicable only where Customer orders
Colocation Space.

9.2   GRANT OF LICENSE. Customer is granted the right to occupy the Colocation
Space identified in a Customer Order during the Service Term, except as
otherwise provided in these Terms. Customer may submit multiple Customer Orders
requesting use of Colocation Space in multiple Level 3 Gateways, each of which
shall be governed by the terms hereof. Level 3 retains

                                  Page 5 of 12
<PAGE>

the right to access any Colocation Space for any legitimate business purpose at
any time.

9.3   USE OF COLOCATION SPACE. Customer shall be permitted to use the Colocation
Space only for placement and maintenance of communications equipment. Customer
may access the Colocation Space (and the Gateway and Colocation Area for the
sole purpose of accessing the Colocation Space) twenty four (24) hours per day,
seven (7) days per week; subject to any and all rules, regulations and access
requirements imposed by Level 3 governing such access. Customer hereby agrees,
within six (6) months of the Service Commencement Date for Colocation Space, to
use the Colocation Space for placement and maintenance of communications or
internet access equipment. Level 3 may, upon forty five (45) days' written
notice, reclaim any portion of Colocation Space not being used within such six
(6) month period. Customer shall surrender such recaptured Colocation Space and
the monthly recurring charges shall be appropriately reduced. No refunds shall
be made to Customer regarding recaptured Colocation Space.

9.4   LEVEL 3 MAINTENANCE. Level 3 shall perform janitorial services,
environmental systems maintenance, power plant maintenance and other actions as
are reasonably required to maintain the Colocation Area in which the Colocation
Space is located in a condition which is suitable for the placement of
communications equipment. Level 3 shall maintain the Colocation Area in which
the Colocation Space is located (but shall not be obligated to maintain the
Colocation Space itself) with a relative humidity in the range of 47.5 to 52.5%
and a maximum temperature of 78 degrees. Customer shall maintain the Colocation
Space in an orderly and safe condition, and shall return the Colocation Space to
Level 3 at the conclusion of the Service Term set forth in the Customer Order in
the same condition (reasonable wear and tear excepted) as when such Colocation
Space was delivered to Customer. EXCEPT AS EXPRESSLY STATED HEREIN OR IN ANY
CUSTOMER ORDER, THE COLOCATION SPACE SHALL BE DELIVERED AND ACCEPTED "AS IS" BY
CUSTOMER, AND NO REPRESENTATION HAS BEEN MADE BY LEVEL 3 AS TO THE FITNESS OF
THE SPACE FOR CUSTOMER'S INTENDED PURPOSE.

9.5   RELEASE OF LANDLORD. If and to the extent that Level 3's underlying leases
so require (but only if they so require) Customer hereby agrees to release the
landlord (and its agents, subcontractors and employees) from all liability
relating to Customer's access to the Gateway and the Colocation Area and
Customer's use and/or occupancy of the Colocation Space.

9.6   SECURITY. Level 3 will provide and maintain in working condition card
reader(s), scanner(s) and/or other access device(s) as selected by Level 3 for
access to the Colocation Area of a Gateway. Customer shall under no
circumstances "prop open" any door to, or otherwise bypass the security measures
Level 3 has imposed for access to, the Colocation Area. Level 3 will provide a
locking device on Customer's Colocation Space, which Customer shall be solely
responsible for locking and/or activating such device. In the event that
unauthorized parties gain access to the Gateway, Colocation Area and/or the
Colocation Space through access cards, keys or other access devices provided to
Customer, Customer shall be responsible for any damages caused by such parties.
Customer shall be responsible for the cost of replacing any security devices
lost or stolen after delivery thereof to Customer. In the event Customer has
reason to believe that an unauthorized party has gained access to the Colocation
Space, Level 3 will, at Customer's request, make video surveillance records of
the Colocation Area reasonably available to Customer for viewing by Customer in
the presence of a Level 3 employee. In addition, Level 3 will provide Customer
with a copy of the access logs for the Colocation Area and/or the Gateway, as
applicable, upon Customer's prior written request.

9.7   PROHIBITED ACTIVITIES. Customer shall abide by any posted or otherwise
communicated rules relating to use of, access to, or security measures
respecting the Gateway, Colocation Area and/or the Colocation Space. Customer's
rights of access and use will be immediately terminated in the event Customer or
any of its agents or employees are in Level 3's Gateway with any firearms,
illegal drugs, alcohol or are engaging in any criminal activity, eavesdropping
or foreign intelligence. Persons found engaging in any such activity or in
possession of the aforementioned prohibited items will be immediately escorted
from the Gateway.

9.8   TERMINATION OF USE. Level 3 shall have the right to terminate Customer's
use of the Colocation Space or the Service delivered therein in the event that:
(a) Level 3's rights to use the Gateway terminates or expires for any reason;
(b) Customer is in default hereof; (c) Customer makes any material alterations
to the Colocation Space without first obtaining the written consent of Level 3;
or (d) Customer allows personnel or contractors to enter the Gateway, Colocation
Area and/or the Colocation Space who have not been approved by Level 3 in
advance. With respect to items (b), (c) and (d), unless (in Level 3's opinion)
Customer's actions interfere or have the potential to interfere with other Level
3 customers, Level 3 shall provide Customer a written notice and a ten (10) day
opportunity to cure before terminating Customer's rights to the Colocation
Space.

9.9   REMOVAL OF EQUIPMENT. Within two (2) days following the expiration or
termination of the Service Term for any Colocation Space, Customer shall remove
all Customer equipment from the Colocation Space. In the event Customer fails to
remove the equipment within such two (2) day period, Level 3 may disconnect,
remove and dispose of Customer's equipment without prior notice. Customer shall
be responsible for any costs and expenses incurred by Level 3 resulting from
Level 3's disconnection, removal, disposal and storage of Customer's equipment,
for which Customer agrees to pay such costs and expenses and all other charges
due and owing by Customer to Level 3 under these Terms prior to Level 3
returning any Customer equipment still in Level 3's possession. Level 3 shall
not be liable for any loss or damage incurred by Customer arising out of Level
3's disconnection, removal, storage or disposal of Customer's equipment.

9.10  SUBLICENSES. Customer may sublicense the use of Colocation Space under the
following conditions: (a) all proposed sublicensees must be approved, in
writing, by Level 3 in Level 3's sole discretion; (b) Customer hereby guarantees
that all such parties shall abide by the Terms; (c) Customer shall indemnify,
defend and hold Level 3 harmless from all claims brought against Level 3 arising
from any act or omission of any sublicensee or its agents; and (d) any such
party shall be considered Customer's agent and all of its acts and omissions
shall be attributable to Customer for the purposes of these Terms. In the event
Customer sublicenses use of the Colocation Space without Level 3's prior written
approval, Level 3 may upon ten (10) days' written notice reclaim the sublicensed
portion of the Colocation Space.

                                  Page 6 of 12
<PAGE>

Customer shall surrender such recaptured Colocation Space and shall be subject
to termination charges associated with the recaptured Colocation Space as
provided in Section 3.8. No refunds shall be made to Customer regarding
recaptured Colocation Space.

9.11  CHANGES.

(A)   Level 3 reserves the right to change (at Level 3's cost) the location or
configuration of the Colocation Space licensed to Customer within the Level 3
Gateway; provided that Level 3 shall not arbitrarily require such changes. Level
3 and Customer shall work in good faith to minimize any disruption in Customer's
services that may be caused by such changes in location or configuration of the
Colocation Space.

(B)   Notwithstanding anything in Section 3.1 to the contrary and unless
otherwise agreed in writing by the parties, in the event any Customer Order for
Colocation Space is altered (including, without limitation, any changes in the
configuration or build-out of the Colocation Space) at Customer's request after
submission and acceptance by Level 3 that results in a delay of Level 3's
delivery of such Colocation Space to Customer, billing for such Colocation Space
shall commence no later than the original Customer Commit Date.

9.12  INSURANCE. Prior to storage of equipment or occupancy by Customer and
during the Service Term, Customer shall procure and maintain the following
minimum insurance coverage: (a) Workers' Compensation in compliance with all
applicable statutes of appropriate jurisdiction (including Employer's Liability
with limits of $500,000 each accident); (b) Commercial General Liability with
combined single limits of $1,000,000 each occurrence; and (c) "All Risk"
Property insurance covering all of Customer's personal property located in the
Gateway. Customer's Commercial General Liability policy shall be endorsed to
show Level 3 (and any underlying property owner, as requested by Level 3) as an
additional insured. All policies shall provide that Customer's insurers waive
all rights of subrogation against Level 3. Customer shall furnish Level 3 with
certificates of insurance demonstrating that Customer has obtained the required
insurance coverages prior to use of the Colocation Space or the storage of
equipment in the Gateway. Such certificates shall contain a statement that the
insurance coverage shall not be materially changed or cancelled without at least
thirty (30) days' prior written notice to Level 3. Customer shall require any
contractor entering the Gateway on its behalf to procure and maintain the same
types, amounts and coverage extensions as required of Customer above.

9.13  REMOTE HANDS. Customer may order and pay for Level 3 to perform certain
limited maintenance services ("Remote Hands") on Customer's equipment within the
Colocation Space, which shall be performed in accordance with Customer's
directions. "Remote Hands" maintenance services includes power cycling
equipment. Level 3 shall in no event be responsible for the repair,
configuration or tuning of equipment, or for installation of Customer's
equipment (although Level 3 will provide reasonable assistance to Customer in
such installation at Customer's request).

9.14  SERVICE PREMIUM.

(A)   For purposes of this Section, the following terms have the meanings set
forth below:

      "Eligible Colocation Space" shall mean Colocation Space ordered by
      Customer hereunder which is accepted by Level 3 on or after July 17, 2000.

      "Qualified Service" shall mean (3)Link(SM) Wavelength Service, (3)Link(SM)
      Private Line Services - North America, (3) CrossRoads(SM) Service,
      (3)Connect(SM) Modem Service and (3)Voice(SM) Service (Termination and
      Exchange). Additionally, "Qualified Service" shall mean fifty percent
      (50%) of charges attributable to (3)Link(SM) Private Line Service -
      Transatlantic and/or Transpacific. "Qualified Service" does NOT include
      local access, (3)Link(SM) Metropolitan Private Line Service, cross
      connects, or any colocation service such as remote hands, managed install,
      power or between cabinet cabling.

      "Qualified Service MRC" shall be the total monthly recurring and/or usage
      charges for all Qualified Service purchased by Customer in the applicable
      month divided by the number of gross square feet of Eligible Colocation
      Space occupied by Customer during such month (for purposes of this
      Section, each cabinet used by Customer of shall be deemed to occupy 20
      square feet of Colocation Space).

(B)   The monthly recurring charges for Eligible Colocation Space set forth in
each Customer Order shall be applicable for the first six (6) full calendar
months following the Service Commencement Date. Thereafter, in addition to the
monthly recurring charges for Colocation Space, if the Qualified Service MRC is
less than $100, then Customer shall pay a "Service Premium" (on a per square
foot basis) calculated by subtracting Customer's actual Qualified Services MRC
from $100 (so that, as an example, if Customer's Qualified Service MRC is $55,
and the total Eligible Colocation Space is 200 square feet (or 10 cabinets),
then the total Service Premium would be $9,000 ($45 Service Premium (per square
foot) x 200 = $9,000)). The Service Premium is billed as an addition to, and not
as a replacement for, the base monthly recurring charge set forth in the
Customer Order for Eligible Colocation Space.

(C)   The base monthly recurring charge (as set forth in the Customer Order)
shall be billed in advance. Any Service Premium due hereunder shall be invoiced
or reflected in arrears (so that any applicable Service Premium due in the
seventh month following the Service Commencement Date would appear on the
invoice delivered in the eighth month following the Service Commencement Date).

9.15  STORAGE OF CUSTOMER EQUIPMENT. Level 3 may, at its option, agree to store
equipment which Customer intends to colocate in Customer's Colocation Space for
not more than forty-five (45) days prior to the scheduled Colocation Service
Commencement Date. Storage of such equipment is purely incidental to the
Services ordered by Customer and Level 3 will not charge Customer a fee for the
same. No document delivered as part of such storage shall be deemed a warehouse
receipt. Absent Level 3's gross negligence or intentional misconduct, Level 3
shall have no liability to Customer or any third party arising from such
storage. In the event Customer stores equipment for longer than forty-five (45)
days, Level 3 may, but shall not be obligated to, return Customer's equipment to
Customer without liability, at Customer's sole cost and expense.

9.16  PROMOTIONAL SIGNAGE. Customer may display a single promotional sign with
Customer's name and/or logo on the outside of any Customer private suite
Colocation Space; provided such signage does not exceed 8 inches by 11 inches.

                                  Page 7 of 12
<PAGE>

All other promotional signage is prohibited.

9.17  POWER. In the event the power utility increases the price paid by Level 3
for power provided to any Colocation Space, Level 3 may pass-through to Customer
such price increase upon prior written notice to Customer.

SECTION 10. (3)CONNECT(SM) MODEM SERVICE

10.1  APPLICABILITY. This Section is applicable only where Customer orders
(3)Connect(SM) Modem Service (either "Dedicated Service," "Dedicated Service
with QuickStart," or "Transit Service").

10.2  TYPES OF SERVICE. In the event Customer orders "Dedicated Service," end
user traffic will be routed through and aggregated in Level 3's facility, sent
to the Customer Premises via a dedicated circuit, and then routed to its final
destination by Customer. In the event that Customer orders "Transit Services,"
end user traffic will be routed to Level 3's facility and then routed to its
final destination by Level 3 via the Internet. Dedicated Service with
"QuickStart" will initially be provisioned to Customer in the same fashion as
Transit Services, until such time as Level 3 has provisioned the dedicated
circuit to send end user traffic from Level 3's facility to the Customer
Premises. QuickStart will then be migrated to standard Dedicated Service. For
Dedicated Service, the (3)Connect(SM) Private Line Service necessary to support
Dedicated Service will be ordered, installed and managed by Level 3. Level 3
cannot and does not guarantee the availability of any port ordered for
installation greater than ninety (90) days from the date of submission of the
Customer Order. Any telephone numbers used in providing the (3)Connect(SM) Modem
Services shall be released to Customer upon expiration or termination hereof to
the extent that it is technically feasible for Level 3 to port packet switched
telephone numbers and then only if Customer is in compliance with the Terms.

SECTION 11. (3)CROSSROADS(SM) SERVICE

11.1  APPLICABILITY. This Section is applicable only where Customer orders
(3)CrossRoads(SM) Service (which may include Service designated in a Customer
Order as "Internet Access Service").

11.2  CHARGES. Customer may elect to be billed based on a fixed rate,
"Destination Sensitive Billing", or a Committed Data Rate. The manner of billing
selected will be set forth in each Customer Order.

(A)   Fixed rate charges for (3)CrossRoads(SM) Services consist of two (2)
components: (a) a fixed installation charge (nonrecurring) per connection; and
(b) a fixed monthly recurring port charge.

(B)   Destination Sensitive Billing charges for (3)CrossRoads(SM) Services
consist of three (3) components: (a) a fixed installation charge (nonrecurring)
per connection; (b) a fixed monthly recurring port charge; and (c) monthly
recurring charges based on usage. Customer's usage of (3)CrossRoads(SM) Service
(both Send Traffic and Receive Traffic) will be measured and recorded by Level 3
every five minutes. At the end of the month, the top five percent (5%) of the
Send Traffic and Receive Traffic samples will be discarded. If the ninety-fifth
(95th) percentile Receive Traffic sample shows (3)CrossRoads(SM) usage greater
than the usage shown in the ninety-fifth (95th) percentile Send Traffic sample,
then Customer will be billed for the amount of (3)CrossRoads(SM) usage shown in
the ninety-fifth (95th) percentile sample for the Receive Traffic. If the
ninety-fifth (95th) percentile sample for the Send Traffic shows
(3)CrossRoads(SM) usage greater than the usage shown in the ninety-fifth (95th)
percentile Receive Traffic sample, then the total Send Traffic will be
categorized as Off-Net Send Traffic, On-Net Send Traffic and On-Net Intracity
Send Traffic, and Customer will be billed for the usage shown in the
ninety-fifth (95th) percentile sample for each category.

(C)   Committed Data Rate charges for (3)CrossRoads(SM) consist of three (3)
components: (a) a fixed installation charge (nonrecurring) per connection; (b) a
fixed monthly recurring port charge based on the Committed Data Rate; and (c)
monthly recurring charges based on usage to the extent usage exceeds the
Committed Data Rate. Customer's usage of (3)CrossRoads(SM) Service (both Send
Traffic and Receive Traffic) will be sampled every five (5) minutes for the
previous five (5) minute period. At the end of the month, the top five percent
(5%) of Send Traffic and Receive Traffic samples shall be discarded. The highest
of the resulting ninety-fifth (95th) percentile for Send Traffic and Receive
Traffic will be compared to the Committed Data Rate. If the ninety-fifth (95th)
percentile of either Send Traffic or Receive Traffic is higher than the
Committed Data Rate, Customer will, in addition to being billed for the
Committed Data Rate, be billed at this ninety-fifth (95th) percentile level for
any usage in excess of the Committed Data Rate at the contracted-for price per
Megabit.

SECTION 12. (3)VOICE(SM) TERMINATION SERVICE

12.1  APPLICABILITY. This Section is applicable only where Customer orders
(3)Voice(SM) Termination Service (which may include Service designated in a
Customer Order as (3)Voice(SM) Service).

12.2  SERVICE DESCRIPTION. (3)Voice(SM) Termination Service provides Customer
with a combined transport and termination rate for the purpose of delivering
Customer voice traffic from the Customer Premises to the PSTN (Public Switched
Telephone Network). (3)Voice(SM) Termination Service allows Customer to bring
voice traffic to Level 3, selecting from a wide range of connectivity options,
in a Level 3 supported format (North American SS7, and when Level 3 can support
the same, North American II, 5ESS PRI). Traffic delivered by Customer in a
format not supported by Level 3 will be blocked and will not be delivered by
Level 3. Level 3 does not originate any traffic pursuant to (3)Voice(SM)
Termination Services and will not accept calls seeking operator services or
directory assistance. Other examples of types of calls that are origination in
nature, and thus likewise not supported on the Level 3 network, include: 976,
911, 900, 800, and 700 calls

12.3  BILLING AND RATES.

(A)   Customer will be billed at Level 3's then current (3)Voice(SM) Termination
usage rates, billing increments and call minimums, and Level 3 reserves the
right to change the same with prior notice to Customer.

(B)   For Customer voice traffic in which Level 3 is unable to reasonably
determine the origin of such traffic, Level 3 will bill Customer for such
traffic at Level 3's interstate rates in proportion to the percentage of
interstate use set forth in the Customer Order ("PIU"). Customer hereby
certifies that the PIU is true and correct to the best of Customer's knowledge
and has been determined in accordance with all applicable laws and regulations.
Customer may modify the PIU from time

                                  Page 8 of 12
<PAGE>

to time upon thirty (30) days' prior written notice to Level 3. Upon Level 3's
written request, Customer agrees to provide Level 3 with all reasonable
information necessary to verify the accuracy of the PIU as compared to voice
traffic delivered by Customer to Level 3. If Level 3 determines that the PIU is
inaccurate, Level 3 reserves the right to bill Customer at the appropriate Level
3 rates based upon Level 3's determination of such traffic as interstate or
intrastate. Customer agrees to indemnify, defend and hold Level 3 harmless for
any claims by third parties (including local access charges for intrastate
traffic) resulting from or arising out of Level 3's use of an inaccurate PIU.

(C)   Customer further acknowledges receipt from Level 3 of Level 3's current
call success rates (sometimes referred to as access seizure ratios or ASRs)
respecting the Services and Customer agrees that: (i) it shall not open/initiate
trouble tickets regarding Service meeting the ASR's; and (ii) that Level 3 may
close any trouble tickets immediately which are opened by Customer in violation
of (i) above.

(D)   The (3)Voice(SM) Termination usage rates are net of any applicable
origination charges by third party payphone providers. Customer will be
responsible for (i) all such origination charges, and (ii) tracking any traffic
associated with such origination charges in accordance with applicable law or
regulation.

SECTION 13. (3)VOICE(SM) EXCHANGE IP SERVICE

13.1  APPLICABILITY. This Section is applicable only where Customer orders
(3)Voice(SM) Exchange IP Service.

13.2  SERVICE DESCRIPTION. (3)Voice(SM) Exchange IP Service provides Customer
with the ability to transport voice traffic from the Customer Premises across
the Level 3 network for termination either to other Level 3 Customer locations,
to other Level 3 customers or to the PSTN (Public Switched Telephone Network).
Customer can originate traffic in an IP format using the version 2.0 SIP
protocol and, once available the version 2.0 H.323 protocol. Traffic delivered
by Customer in a format not supported by Level 3 will be blocked and will not be
delivered by Level 3. Level 3 does not originate any traffic pursuant to
(3)Voice(SM) Exchange IP Services and will not accept calls seeking operator
services or directory assistance. Other examples of types of calls that are
origination in nature, and thus likewise not supported on the Level 3 network,
include: 976, 911, 900, 800, and 700 calls.

13.3  CHARGES. Charges for (3)Voice(SM) Exchange IP Services consist of two
components: (a) a fixed installation charge (nonrecurring) per connection; and
(b) a monthly recurring charge based on usage (the "Transport Usage Charge"). An
additional usage charge will apply if traffic is terminated on the PSTN (the
"Termination Usage Charge"). Customer's Transport Usage Charge will be
determined by Level 3 by measuring and recording Customer's IP bandwidth usage
and Customer will be billed per minute of use. In addition, if Customer
terminates traffic to the PSTN, then Customer will also be billed a Termination
Usage Charge at Level 3's then current (3)Voice(SM) Exchange usage rates,
billing increments and call minimums. Level 3 reserves the right to change these
rates, increments and minimums with prior notice to Customer. Customer further
acknowledges receipt from Level 3 of Level 3's current call success rates
(sometimes referred to as access seizure ratios or ASRs) respecting the Services
and Customer agrees that: (i) it shall not open/initiate trouble tickets
regarding Service meeting the ASR's; and (ii) that Level 3 may close any trouble
tickets immediately which are opened by Customer in violation of (i) above.

SECTION 14. (3)VOICE(SM) ORIGINATION SERVICE

14.1  APPLICABILITY. This Section is applicable only where Customer Orders
(3)Voice(SM) Origination Service.

14.2  SERVICE DESCRIPTION.

(A)   (3)Voice(SM) Origination Service provides inbound PSTN to IP termination
voice services. Customer will be provided direct inward dial (DID) number(s) and
a specified number of DS-0 ports ("Ports") as set forth in the Customer Order.
Customer (or its end users) may access the Service by dialing a Level 3 provided
DID number, after which the voice traffic originated by Customer (or its end
users) will be aggregated by Level 3 and will undergo a net protocol conversion
by Level 3 to an IP format.

(B)   If Customer orders "Basic On-Net" (3)Voice(SM) Origination Service,
Customer must order, as a separate Service, the Level 3 (3)CrossRoads(SM)
Service to transport the media portion of the Customer traffic to a Level 3
On-Net facility. If Customer orders "Basic Off-Net" (3)Voice(SM) Origination
Service, the traffic will initially be delivered the same way as Basic On-Net
Service, but Customer will obtain, at its own cost, an internet connection from
a third party internet service provider that peers with Level 3 to transport the
traffic from the Level 3 network to an Off-Net destination. Level 3 shall not be
responsible for the service of any such third party providers. In all cases, the
traffic will be delivered back to Customer in an IP format, after which the
traffic shall be the sole responsibility of Customer.

(C)   Unless otherwise agreed, the (3)Voice(SM) Origination Services shall only
be ordered and delivered to Customer in the United States.

14.3  CHARGES. For use of (3)Voice(SM) Origination Service (and excluding the
charges for any other Service Customer must purchase from Level 3 to use the
same), Customer agrees to pay, on a monthly basis: (i) a port charge (the "Port
Charge") for each Port ordered; and (ii) a DID charge for each DID number
provided to Customer by Level 3. A non-recurring order processing charge and a
port installation charge will also apply for each (3)Voice(SM) Origination
Service ordered by Customer. All such charges will be stated in the Customer
Order.

14.4  PORT COMMITMENT. Each Customer Order for (3)Voice(SM) Origination Service
shall state a number of (3)Voice(SM) Origination Service Ports which Customer
commits to buy from Level 3 for the duration of stated Service Term (the "Port
Commitment"). The Port Commitment will commence upon the expiration of the Ramp
Period (if any) stated in the Customer Order. In any month following an
applicable Ramp Period in which Customer fails to meet its Port Commitment,
Customer will be billed for and will pay Level 3 for the Ports actually used by
Customer during the month, plus a shortfall fee equal to the difference between
the Port Charges that would have been due had the Port Commitment been satisfied
and Customer's actual Port Charges.

                                  Page 9 of 12
<PAGE>

SECTION 15. SERVICE LEVELS

15.1  GENERAL. The Services are subject to the following Service Levels, as
applicable to the particular Service as specified. In the event Level 3 does not
achieve a particular Service Level in a particular month, Level 3 will issue a
credit to Customer as set forth below upon Customer's request. To request a
credit, Customer must contact Level 3 Customer Service within five (5) days of
the end of the month for which a credit is requested. Level 3 Customer Service
may be contacted by calling toll free in the U.S. 1-877-4LEVEL3
(1-877-453-8353). In no event shall the total amount of credits issued to
Customer per month exceed the non-recurring charges ("NRC") and monthly
recurring charges ("MRC") for the affected Service.

15.2  (3)LINK(SM) PRIVATE LINE SERVICE LEVELS. The following service levels are
applicable where Customer orders (3)Link(SM) Private Line Service.

(A)   Installation Service Level. (1) Level 3 will exercise commercially
reasonable efforts to install any (3)Link(SM) Private Line Services on or before
the Customer Commit Date specified for the particular Service. This Installation
Service Level shall not apply to Customer Orders which contain incorrect
information supplied by Customer, Customer Orders which are altered at
Customer's request after submission and acceptance by Level 3. In the event
Level 3 does not meet this Installation Service Level for a particular Service
for reasons other than an Excused Outage, Customer will be entitled to a service
credit off of the NRC and MRC for the affected Service as set forth in the
following table:

<TABLE>
<CAPTION>
Installation Delay Beyond
  Customer Commit Date                 Service Level Credit
-----------------------------------------------------------
<S>                                    <C>
1 - 5 business days                    Amount of NRC

6 - 20 business days                   Amount of NRC plus
                                       charges for one (1)
                                       day of the MRC for
                                       each day of delay

21 + business days                     Amount of NRC plus
                                       one (1) months' MRC
</TABLE>

(2)   The Installation Service Level and associated credits set forth in
sub-Section (1) above shall not apply to Off-Net Local Loop Service, including,
without limitation, (3)Link(SM) Metropolitan Private Line (Off-Net) Service,
provisioned by Level 3 through a third party carrier for the benefit of
Customer. Level 3 will pass-though to Customer any installation service level
and associated credit (if applicable) provided to Level 3 by the third party
carrier for such Off-Net Local Loop Service.

(B)   Availability Service Level. (1) The Availability Service Level for
(3)Link(SM) Private Line Service delivered over Level 3's network is 99.99% for
Protected Terrestrial (3)Link(SM) Private Line Service, 99.9% for Unprotected
Terrestrial (3)Link(SM) Private Line Service and Protected Submarine (3)Link(SM)
Private Line Service, and 97% for Unprotected Submarine (3)Link(SM) Private Line
Service. For purposes of this Section 15.2(B), the term "Terrestrial" shall mean
any (3)Link(SM) Private Line Service that generally transits Level 3's
land-based network (with limited water crossings, including, without limitation,
bay and channel crossings) and does not in any way transit Level 3's under-sea
network in the Atlantic or Pacific Oceans, and "Submarine" shall mean any
(3)Link(SM) Private Line Service that transits any portion of Level 3's
under-sea network in the Atlantic or Pacific Oceans. In the event that the
(3)Link(SM) Private Line Service becomes unavailable for reasons other than an
Excused Outage, Customer will be entitled to a service credit off of the MRC for
the affected Service based on the aggregate duration of all Service
unavailability events in a given calendar month as set forth in the following
tables.

For All Protected (3)Link(SM) Private Line Service (both Terrestrial and
Submarine):

<TABLE>
<CAPTION>
Duration of Service
  Unavailability                Service Level Credit
----------------------------------------------------
<S>                             <C>
0 - 5 minutes                   No Credit
5:01 minutes - 45 minutes       5% of the MRC
45:01 minutes - 4 hours         10% of the MRC
4:01 - 8 hours                  20% of the MRC
8:01 - 12 hours                 30% of the MRC
12:01 - 16 hours                40% of the MRC
16:01 - 24 hours                50% of the MRC
24:01 + hours                   100% of the MRC
</TABLE>

For All Unprotected Terrestrial (3)Link(SM) Private Line Service:

<TABLE>
<CAPTION>
Duration of Service
  Unavailability            Service Level Credit
------------------------------------------------
<S>                         <C>
0 - 45 minutes                   No Credit
45:01 minutes - 4 hours          5% of MRC
4:01 - 18 hours                  10% of MRC
18:01 - 24 hours                 15% of MRC
Over 24 hours                    20% of MRC
</TABLE>

For all Unprotected Submarine (3)Link(SM) Private Line Service:

<TABLE>
<CAPTION>
Duration of Service
  Unavailability           Service Level Credit
-----------------------------------------------
<S>                        <C>
0 - 45 minutes                  No Credit
45:01 minutes - 4 hours         5% of MRC
4:01 - 24 hours                 10% of MRC
24:01 - 48 hours                15% of MRC
Over 48 hours                   20% of MRC
</TABLE>

For purposes of this Availability Service Level, "unavailable" or
"unavailability" means the duration of a break in transmission measured from the
first of ten (10) consecutive severely erred seconds ("SESs") on the particular
(3)Link(SM) Private Line Service until the first of ten (10) consecutive
non-SESs. An SES is a second with a bit error ratio of greater than or equal to
1 in 1000.

(2) The Availability Service Level and associated credits set forth in
sub-Section (1) above shall not apply to Off-Net Local Loop Service, including,
without limitation, (3)Link(SM) Metropolitan Private Line (Off-Net) Service,
provisioned by Level 3 through a third party carrier for the benefit of
Customer. Level 3 will pass-though to Customer any availability service level
and associated credit (if applicable) provided to Level 3 by the third party
carrier for such Off-Net Local Loop Service.

(3) Without prejudice to Customer's right to service credits pursuant to
subsection (1) above, if the (3)Link(SM) Private Line Services are provided in
Germany, then the Availability Service Level for such (3)Link(SM) Metropolitan
Private Line (Off-Net) Service is 97.5% (based on an annual average) and
(3)Link(SM) Metropolitan Private Line (On-Net) Service is 99.9% (based on a
calendar month)

                                  Page 10 of 12
<PAGE>

15.3  (3)CROSSROADS(SM). The following service levels are applicable where
Customer orders (3)CrossRoads(SM) Service.

(A)   Installation Service Level. Level 3 will exercise commercially reasonable
efforts to install any (3)CrossRoads(SM) Service on or before the Customer
Commit Date specified for the particular Service. This Installation Service
Level shall not apply to Customer Orders which contain incorrect information
supplied by Customer or Customer Orders which are altered at Customer's request
after submission and acceptance by Level 3. In the event Level 3 does not meet
this Installation Service Level for a particular Service for reasons other than
an Excused Outage, Customer will be entitled to a service credit equal to the
charges for one (1) day of the MRC for the affected Service for each day of
delay, up to a monthly maximum credit of ten (10) days.

(B)   Availability Service Level. (1) The Availability Service Level for
(3)CrossRoads(SM)Service is 100%. The (3)CrossRoads(SM) Service is available if
the port is available to send and receive traffic. In the event that the
(3)CrossRoads(SM) Service becomes unavailable for reasons other than an Excused
Outage, Customer will be entitled to a service credit off of the MRC for the
affected Service based on the total duration of unavailability in a given day as
set forth in the following table:

<TABLE>
<CAPTION>
Duration of Service
  Unavailability             Service Level Credit
----------------------------------------------------
<S>                          <C>
0 - 15 minutes                     1 hour
15:01 minutes - 8 hours            3 hours
8:01 - 12 hours                    12 hours
12:01 - 16 hours                   16 hours
16:01 - 24 hours                   1 day
</TABLE>

(2)   Without prejudice to Customer's right to service credits pursuant to
subsection (1) above, if the (3)CrossRoads(SM) Services are provided in Germany,
then the Availability Service Level for such (3)CrossRoads(SM) Services on the
Local Loop is 97.5% (based on an annual average) and On-Net is 99.9% (based on a
calendar month).

(C)   Delay Service Level. The following Delay Service Level is measured as an
average one-way delay over a calendar month for traffic on the Level 3 network
between Gateways. Delay measurements may be obtained from the Level 3 web site
at www.Level3.com. In the event of a delay in excess of the Service Levels set
forth below for reasons other than an Excused Outage, Customer will be entitled
to receive a service credit equal to the charges for one (1) day of the MRC for
the affected Service, up to a monthly maximum credit of one (1) day per calendar
month.

<TABLE>
<CAPTION>
Route                         Delay Service Level
--------------------------------------------------
<S>                           <C>
Intra-U.S.                            40 ms
Intra-Europe                          30 ms
London to New York, NY                40 ms
</TABLE>

(D)   Packet Delivery Service Level. The Packet Delivery Service Level for
(3)CrossRoads(SM) Service is 99% for On-Net traffic between Gateways. Packet
Delivery is the average number of Internet Protocol (IP) packets of information
that transit the Level 3 network and are delivered by Level 3 to the intended
On-Net destination in a calendar month. Packet Delivery measurements may be
obtained from the Level 3 web site at www.Level3.com. In the event Level 3 does
not meet the Packet Delivery Service Level for reasons other than an Excused
Outage or as a result of any third party local access circuit (whether
provisioned by Customer or Level 3), Customer will be entitled to receive a
service credit equal to the charges for one (1) day of the MRC for the affected
Service, up to a monthly maximum credit of one (1) day per calendar month.

15.4  (3)CONNECT(SM) MODEM. The following service levels are applicable where
Customer orders (3)Connect(SM) Modem Service.

(A)   Installation Service Level. Level 3 will exercise commercially reasonable
efforts to install any (3)Connect(SM) Modem Service on or before the Customer
Commit Date specified for the particular Service. This Installation Service
Level shall not apply to Customer Orders which contain incorrect information
supplied by Customer or Customer Orders which are altered at Customer's request
after submission and acceptance by Level 3. In the event Level 3 does not meet
this Installation Service Level for a particular Service for reasons other than
an Excused Outage, Customer will be entitled to a service credit equal to fifty
percent (50%) of the Non-Recurring Charges for the affected Service.

B)    Call Success Rate (CSR) Service Level. The CSR Service Level for
(3)Connect Modem Service is 90%*. The CSR is measured by Level 3 as a monthly
average across the Level 3 modem network calculated based on the number of IP
sessions established against the total sessions attempted. An IP session is
established when the modem port is available to send, receive and authenticate
traffic. In the event Level 3 does not meet the CSR Service Level for reasons
other than an Excused Outage, Customer will be entitled to a service credit off
of the MRC for the affected Service as set forth in the following table:

<TABLE>
<CAPTION>
CSR                               Credit
---------------------------------------------
<S>                           <C>
88 to 89.99%                  2.5% of the MRC
85 to 87.99%                  5% of the MRC
80 to 84.99%                  7.5% of the MRC
< 79.99%                      10% of the MRC
</TABLE>

* The CSR Service Level does not apply to ISDN Service.

15.5  (3)CENTER(SM) COLOCATION. The following service levels are applicable
where Customer orders (3)Center(SM) Colocation.

(A)   Installation Service Level. This Installation Service Level applies to
cabinet and private suite Colocation Space ordered in a Gateway. Level 3 will
exercise commercially reasonable efforts to install any Colocation Space on or
before the Customer Commit Date specified for such Colocation Space. This
Installation Service Level shall not apply to Customer Orders which contain
incorrect information supplied by Customer, Customer Orders which are altered at
Customer's request after submission and acceptance by Level 3, or Customer
Orders which require Level 3 to configure Colocation Space to specifications
other than Level 3's standard specifications for Colocation Space (such standard
specifications are available to Customer upon request). In the event Level 3
does not meet this Installation Service Level for a particular Colocation Space
for reasons other than an Excused Outage, Customer will be entitled to a service
credit equal to the charges for one (1) day of the MRC for the affected
Colocation Space for each day of delay, up to a monthly maximum credit of four
(4) days.

                                  Page 11 of 12
<PAGE>

(B)   Power Service Level. The Availability Service Level for Level 3 provided
power to the Colocation Space is 99.99%. In the event of any power outage for
reasons other than Customer actions or omissions, Customer will be entitled to
receive a service credit equal to the charges for one (1) day of the MRC for the
affected Colocation Space (with a maximum of a one (1) day credit for all
outages in any twenty four (24) hour period).

(C)   Remote Hands Response Time Service Level. The Response Time Service Level
for Remote Hands is as set forth below. This Response Time Service Level is
measured from the time Level 3 Customer Service receives and logs Customer's
request with all of the necessary information requested by Level 3 Customer
Service, until a Level 3 technician first calls Customer in response to the
request. In the event Level 3 does not meet the following Response Time Service
Level, Customer will be entitled to a service credit equal to the charges for
one (1) day of the MRC for the affected Colocation Space (with a maximum of a
one (1) day credit for all instances of delay in a day, with a total monthly
maximum credit of seven (7) days).

<TABLE>
<CAPTION>
                              Service Level
                      ------------------------------
Gateway Location          Hours of         Response
   (U.S Only)            Operation           Time
----------------------------------------------------
<S>                   <C>                 <C>
Boston, MA            24x7                30 minutes
Dallas, TX            24x7                30 minutes
Denver, CO            24x7                30 minutes
Chicago, IL           24x7                30 minutes
Los Angeles, CA       24x7                30 minutes
New York, NY          24x7                30 minutes
San Diego, CA         24x7                30 minutes
San Francisco, CA     24x7                30 minutes
Sunnyvale, CA         24x7                30 minutes
Mclean, VA            24x7                30 minutes
All other locations   7 a.m. to 7 p.m.    30 minutes
                      (M-F)
                      Off-hours,          2 hours
                      holidays &
                      weekends
</TABLE>

15.6  (3)CENTER(SM) INTRA-MARKET COLOCATION CONNECTION (IMCC). The following
service levels are applicable where Customer orders (3)Center(SM) IMCC Service.

(A)   Installation Service Level. Level 3 will exercise commercially reasonable
efforts to install any (3)Center(SM) IMCC Service on or before the Customer
Commit Date specified for the particular Service. This Installation Service
Level shall not apply to Customer Orders which contain incorrect information
supplied by Customer, or Customer Orders which are altered at Customer's request
after submission and acceptance by Level 3. In the event Level 3 does not meet
this Installation Service Level for a particular Service for reasons other than
an Excused Outage, Customer will be entitled to a service credit equal to the
charges for one (1) day of the MRC for the affected Service for each day of
delay, up to a monthly maximum credit of four (4) days.

(B)   Availability Service Level. The Availability Service Level for
(3)Center(SM) IMCC Service is 96.7%. In the event the (3)Center(SM) IMCC Service
becomes unavailable for reasons other than an Excused Outage, Customer will be
entitled to a service credit off of the MRC for the affected Service based on
the aggregate duration of unavailability events in a given calendar month as set
forth in the following table:

<TABLE>
<CAPTION>
Duration of Service
  Unavailability                 Service Level Credit
-----------------------------------------------------
<S>                              <C>
0 - 24 hours                          No Credit
24:01 - 48 hours                      10% of MRC
48:01 - 72 hours                      20% of MRC
72:01 + hours                         30% of MRC
</TABLE>

For purposes of this Availability Service Level, (i) "unavailable" or
"unavailability" means total interruption in the Service, and (ii) the duration
of any unavailability event will commence when Customer reports an outage to the
Level 3 Customer Service and Support Organization (1-877-4LEVEL3) and will end
when the Service is operative.

                                  Page 12 of 12
<PAGE>

                                                                 [LEVEL(3) LOGO]

CUSTOMER ORDER SUMMARY

ORDER DATE:      07-NOV-01    ORDER ACTION:    INSTALL

CUSTOMER ORDER#: 000186259    TYPE:            NEW

CUSTOMER INFORMATION:

  ORGANIZATION:       Websidestory.com

  SITE ID:      41644

  NAME:         Websidestory.com - 10182 TELESIS CT

  ADDRESS:      10182 TELESIS CT
                6th Floor

  CITY:         SAN DIEGO

  STATE:        CA

  ZIP:          92121-2719

  PRIMARY CONTACT:    Denis Duchene

  PHONE:        (858) 546-0040

  FAX:

  E-MAIL:       denis@websidestory.com

BILLING INFORMATION:

  SITE ID:      41644

  NAME:         Websidestory.com - 10182 TELESIS CT

  ADDRESS:      10182 TELESIS CT
                6th Floor

  CITY:         SAN DIEGO

  STATE:        CA

  ZIP:          92121-2719

PRODUCT DESCRIPTION AND CHARGES:

<TABLE>
<CAPTION>
                          SERVICE      ORDER#            MONTHLY RECURRING AMOUNT    NON-RECURRING AMOUNT   YEARLY-RECURRING AMOUNT
PRODUCT      PRODUCT #    ORDER #       TYPE     TERM              NEW                        NEW                    NEW
----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>          <C>          <C>     <C>       <C>                         <C>                    <C>
Colocation   BBBM4707     1000NQWV      New    2 Year           $33,705.00                   $0.00                  $0.00
                                               Contract
                                               Type:
                                               Lease
</TABLE>

                                   Page 1 of 3
<PAGE>

                                                                 [LEVEL(3) LOGO]

CUSTOMER ORDER SUMMARY

ORDER DATE:      07-NOV-01    ORDER ACTION:   INSTALL

Customer Order#: 000186259    Type:           New

<TABLE>
<S>                   <C>          <C>         <C>          <C>         <C>           <C>      <C>
(3)CrossRoads-CDR-    BBBM4817     1000NRDK    New          2 Year      $19,000.00    $0.00    $0.00
100 Mbps                                                    Contract
                                                            Type:
                                                            Lease
Usage Charges -
   CDR Additional Usage per Mbps:              $190.00
                                                                        ==========    =====    =====
                                               TOTAL:                   $52,705.00    $0.00    $0.00
                                                                        ==========    =====    =====
</TABLE>

                                   Page 2 of 3
<PAGE>

CUSTOMER ORDER SUMMARY

                                                  [LEVEL(3) COMMUNICATIONS LOGO]

ORDER DATE:      07-NOV-01    ORDER ACTION: INSTALL

CUSTOMER ORDER#: 000186259    TYPE:         NEW

CUSTOMER COMMITMENT:

   REVENUE COMMITMENT: $0.00 /MONTH   TERM: 1 YEAR   RAMP UP (MONTHS): 1

   FOR(3)VOICE(SM) SERVICES ONLY, THE PERCENTAGE OF INTERSTATE USE WILL BE:____%

TAX EXEMPT STATUS (PLEASE, CHECK ONE):

   [ ] NON-EXEMPT

   [ ] EXEMPT - PLEASE, FILL OUT AND RETURN TO LEVEL 3 A TAX EXEMPT FORM
       AVAILABLE UPON REQUEST.

CUSTOMER APPROVAL:

This Customer Order is governed by the following Level 3 terms and conditions as
such terms and conditions are applicable to the above listed Services ordered by
Customer and which terms and conditions are hereby incorporated into this
Customer Order.

Please check the applicable terms and conditions:

________Level 3's Terms for Delivery of Service, version 5.2 (applicable to
Customer Orders for Level 3 (3) Link(SM) Private Line, (3) Center(SM)
Colocation (except as ordered in connection with Level 3 (3)Link(SM) Wavelengths
Services), (3) Connect(SM) Modem, (3)CrossRoads(SM), (3)Voice(SM) Termination,
and (3)Voice(SM) Exchange IP Service); or

________Level 3's (3)Link(SM) Wavelengths Colocation Terms and Conditions,
version____________ (applicable to Customer Orders for Colocation services
ordered in connection with Level 3 (3)Link(SM) Wavelengths Services), or

_______Level 3's Global Master Services Agreement executed with Customer or (if
applicable) its affiliates (applicable to Customer Orders for Level 3
(3)Link(SM) Private Line, (3)Center(SM) Colocation (except as ordered in
connection with Level 3 (3)Link(SM) Wavelengths Services), (3) Connect(SM)
Modem, (3)CrossRoads(SM), (3)Voice(SM) Termination, and (3)Voice(SM) Exchange IP
Service); or

______Level 3's Master Carrier Services Agreement executed with Customer
(applicable to Customer Orders for Level (3)Voice(SM) Termination Service)

Neither party shall be liable for any indirect, special, consequential,
exemplary or punitive damages (including but not limited to damages for lost
profits or lost revenues), whether or not caused by the acts, omissions or
negligence if its employees or agents, and regardless of whether such party has
been informed of the possibility or likelihood of such damages.

Relevant Service Detail forms, including, without limitation, the Level 3
billing work sheet, setting forth specific information regarding the Services
ordered by Customer pursuant to this Customer Order Summary, are attached hereto
and incorporated herein.

This Customer order is governed by Level(3) Communications, LLC Terms for
Delivery of Service Version 5.2 and this Addendum dated November 20, 2001
between the parties.

Authorized Customer Signature: /s/ John Hentrich
                               --------------------
                               WEBSIDESTORY INC.

     Authorized Customer Name: J HENTRICH    Title: CEO

                         Date: 11/20/01

                                   Page 3 of 3
<PAGE>

[LEVEL(3) COMMUNICATIONS LOGO]

      BILLING WORKSHEET

                                                        [ILLEGIBLE] [ILLEGIBLE]
                                                           1 Year      $0.00

Company Name: Websidestory.com - 10182 TELESIS CT

Address:      10182 TELESIS CT
              SAN DIEGO, CA 92121-2719

Quote Number: 000186259

OSR Number:

<TABLE>
<CAPTION>
                                                          [ILLEGIBLE]
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>       <C>  <C>             <C>     <C> <C>         <C>   <C>      <C> <C>    <C>      <C> <C>        <C>          <C>
[ILLEGIBLE]
------------------------------------------------------------------------------------------------------------------------------------
45  GATEWAY:  1005 120 V AC (15    2 YEAR  --  $ 8,100.00  0.00%     --   --     --       --  --  $ 8,100.00 $  8,100.00          --
    SAN DIEGO      AMPS)
    - L3Gw         LINE: 10001
------------------------------------------------------------------------------------------------------------------------------------
900 GATEWAY:  1005 PRIVATE ROOM    2 YEAR  --  $72,000.00  0.00%  64.44%  --     --       --  --          -- $ 25,605.00  $25,605.00
    SAN DIEGO      (US)
    - L3Gw
                   LINE: 10001
------------------------------------------------------------------------------------------------------------------------------------
1   GATEWAY:  1005 INSTALL 900 SQ. 2 YEAR  --  $ 4,500.00  0.00% 100.00%  --  $0.00       --  --          --          --          --
    SAN DIEGO      FT.
    - L3Gw
                   LINE: 10001
------------------------------------------------------------------------------------------------------------------------------------
[ILLEGIBLE]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

               (C) Copyright, Level 3 Communications, LLC, 2000.
                              All Rights Reserved.

                                                                               1
<PAGE>

[LEVEL(3) COMMUNICATIONS LOGO]

      BILLING WORKSHEET

<TABLE>
<CAPTION>
                                                             [ILLEGIBLE]
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>        <C>   <C>              <C>     <C>  <C>         <C>    <C>      <C>  <C>    <C>      <C> <C>         <C>         <C>
1    Gateway:   1024  1000 Mbs         2 Year  --   $     0.00  0.00%      --   --   $0.00       --  --          --          --  --
     San Diego        Gateway Cross
     - L3Gw           Connect Install
                      (US)
                      Line: 10000
-----------------------------------------------------------------------------------------------------------------------------------
1    Gateway:   1024  1000 Mbs         2 Year  --   $     0.00  0.00%      --   --      --       --  --  $     0.00  $     0.00  --
     San Diego        Gateway Cross
     - L3Gw           Connect
                      Monthly (US)
                      Line: 10000
-----------------------------------------------------------------------------------------------------------------------------------
1    Gateway:   2015  Installation     2 Year  --   $ 5,000.00  0.00%  100.00%  --   $0.00       --  --          --          --  --
     San Diego        CDR Ethernet
     - L3Gw           1000 Mbps
                      Line: 10002
-----------------------------------------------------------------------------------------------------------------------------------
1    Gateway:   2015  CDR Ethernet     2 Year  --   $19,000.00  0.00%      --   --      --       --  --  $19,000.00  $19,000.00  --
     San Diego        1000 Mbps
     - L3Gw
                      Line: 10002
-----------------------------------------------------------------------------------------------------------------------------------
1    Gateway:   2015  CDR Ethernet     2 Year  --   $   190.00  0.00%      --   --      --  $190.00  --          --          --  --
     San Diego        1000 Mbps
     - L3Gw           Additional
                      Usage
                      Line: 10002
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

               (C) Copyright, Level 3 Communications, LLC, 1999.
                               All Rights Reserved.

                                                                               2
<PAGE>

[LEVEL(3) COMMUNICATIONS LOGO]

      BILLING WORKSHEET

<TABLE>
<S>        <C>      <C>        <C>      <C>         <C>         <C>         <C>
NRC TOTAL  $0.00    YRC TOTAL  $0.00    MRC TOTALS  $52,705.00  $52,705.00  $0.00
---------------------------------------------------------------------------------
</TABLE>

This Price Quote is governed by Level 3 Communications, LLC's Terms and
Conditions for Delivery of Service (which are available for your review either
upon request or on the Level 3 website), and shall be incorporated into the
Customer Order submitted by Customer for the foregoing Service.

Price Quote valid through: 2001-12-07 23:59:59

Notes:

               (C) Copyright, Level 3 Communications, LLC, 1999.
                              All Rights Reserved.

                                                                               3

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