Document:

Exhibit 10.12

 

Portions
hereof have been omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for confidential treatment in accordance with
Rule 406 of the Securities Act of 1933, as amended.

 

 

CAPACITY PURCHASE AGREEMENT

 

Between

 

WILLIAMS COMMUNICATIONS, LLC

 

and

 

TELEGLOBE USA INC.

 

 

March 31, 2001

 

 

 

CONFIDENTIAL AND PROPRIETARY

 

 

 

CAPACITY PURCHASE AGREEMENT

 

This CAPACITY PURCHASE AGREEMENT
(this “Agreement”) is made this 31st day of March, 2001 (“Effective Date”), by
and between Williams Communications, LLC,
a Delaware limited liability company (“Seller”), with its principal place of
business at One Williams Center, 26th Floor, Tulsa, Oklahoma 74172, and Teleglobe USA Inc., a Delaware corporation
(together with its Affiliates, “Purchaser”), with its principal place of
business at 11480 Commerce Park Drive, Reston, Virginia 20191.

 

WITNESSETH:

 

WHEREAS, Seller has
constructed, acquired or obtained rights of use in or will construct, acquire,
or obtain rights of use in a fiber optic communication network in North
America;

 

WHEREAS, Seller
agrees to sell, and Purchaser agrees to purchase, certain IRUs (as hereinafter
defined) in the Williams’ Network, as more fully set forth herein;

 

WHEREAS, on even
date herewith, the parties have entered into the O&M Agreement providing
for the operations and maintenance services to be provided by Seller with
respect to the IRUs; and

 

WHEREAS, Seller and
Purchaser desire to define the terms and conditions under which the IRUs will
be acquired by Purchaser.

 

NOW THEREFORE, in
consideration of the foregoing and for other valuable consideration, the
parties hereby agree as follows:

 

1.             DEFINITIONS

 

1.1           “Acceptance Date” shall have the meaning
set forth in Section 4.2.6.

 

1.2           “Acceptance Testing” shall have the meaning
set forth in Section 4.2.1.

 

1.3           “Acknowledgement Letter” shall mean a
signed letter from a financing party contemplated in Section 11.3, that
contains the following elements: (a) an acknowledgement of Purchaser’s rights
under this Agreement, and (b) a statement that the financing party will not
seek to assert against Purchaser any greater rights than expressly exist in
favor of Seller under this Agreement.

 

1.4           “Affiliate” shall mean any person or entity
who directly or indirectly controls, is controlled by or is under common
control with another person or entity.

 

1.5           “Agreement” shall have the meaning set
forth in the recitals.

 

2

 

1.6           “Backhaul” shall mean the ***.

 

1.7           “Backhaul Closing Date” shall mean a date
within five (5) Business Days of the Acceptance Date of the Backhaul.

 

1.8           “Backhaul IRU” shall have the meaning set
forth in Section 2.1.

 

1.9           “Backhaul IRU Purchase Price” shall have
the meaning set forth in Section 3.1.

 

1.10         *** shall have the meaning set forth in Section
4.3.1.

 

1.11         ***

 

1.12         ***

 

1.13         “Business Day” shall mean a day other than
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required to close.

 

1.14         “Capacity” shall mean the Wavelength IRUs
and the Backhaul IRU, collectively.

 

1.15         “Capacity Lease” shall have the meaning set
forth in Section 2.3.3.

 

1.16         “Closing Date” shall mean, collectively,
the Backhaul Closing Date and the Wavelength Closing Date.

 

1.17         “Compliancy” shall have the meaning set
forth in Section 4.2.5.

 

1.18         “Confidential Information” shall have the
meaning set forth in Section 12.1.

 

1.19         “Decommission” shall mean Seller
decommissioning, removal or abandonment of the cable on a segment of the
Williams’ Network that includes the cable underlying the Wavelength or the
Backhaul, respectively.

 

1.20         “Default Rate” shall mean the annual rate
that is ***

 

1.21         “Demarcation Point” shall mean the point on
the optical distribution frame where the capacity-specific optical interface
terminates and where the Purchaser assumes responsibility for interconnection
of the Capacity to its network as identified on Exhibits B and C.

 

1.22         “Disclosing Party” shall have the meaning
set forth in Section 12.1.

 

1.23         “Effective Date” shall have the meaning set
forth in the recitals.

 

1.24         “Election Notice” shall have the meaning
set forth in Section 3.3.2.

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

3

 

1.25         “Exercise Date” shall have the meaning set
forth in Section 21.1.

 

1.26         ***
shall have the meaning set forth in Section 4.1.2(a).

 

1.27         “Force Majeure Event” shall have the
meaning set forth in Section 18.

 

1.28         ***
shall have the meaning set forth in Section 4.1.2(c).

 

1.29         “Indemnifying Party” or “Indemnified Party” shall have the meanings
set forth in Section 10.1.

 

1.30         “IRU” shall mean an indefeasible and
exclusive right of use.

 

1.31         “IRU Term” shall have the meaning set forth
in Section 8.2.

 

1.32         “Notice Date” shall have the meaning set
forth in Section 8.1.

 

1.33         “O&M Agreement” shall mean the
Operations and Maintenance Agreement between the parties of even date herewith.

 

1.34         “Option” shall have the meaning set forth
in Section 21.1.

 

1.35         “Option Price” shall have the meaning set
forth in Section 21.1.

 

1.36         “Ownership Interest” shall have the meaning
set forth in Section 21.1.

 

1.37         “POP” shall mean point of presence.

 

1.38         “Property Taxes” shall mean any property,
ad valorem, use or other similar taxes, fees or assessments that are determined
based on the ownership of property or any rights thereto.

 

1.39         “Receiving Party” shall have the meaning
set forth in Section 12.1.

 

1.40         “Representatives” shall have the meaning
set forth in Section 12.3.2.

 

1.41         “Required Rights” shall have the meaning
set forth in Section 4.6.

 

1.42         “STM-1” shall mean 155 Mbit/second full
duplex digital line passing between the two Williams’ Network Interface Points
set forth on Exhibit B and compliant with ITU-T standards, together with
the interconnection interfaces pertaining thereto.  Each STM-l shall have a particular circuit ID on the Williams’
Network.

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

4

 

1.43         “Taxes” shall mean any and all sales, use,
income, gross receipts, excise, transfer, franchise fees or other similar taxes
or fees.

 

1.44         “Taxing Authority” shall mean a federal,
state or local governmental authority or subdivision thereof.

 

1.45         “Technical Specifications” with respect to
the Backhaul shall mean the technical specifications set forth in Exhibit B
and with respect to the Wavelengths shall mean the technical specifications set
forth in Exhibit C.

 

1.46         “Telecommunications Facilities Agreement”
shall mean the Telecommunications Facilities and Services Agreement between the
parties of even date herewith.

 

1.47         “Term” shall have the meaning set forth in Section
8.1.

 

1.48         “Testing Period” shall have the meaning set
forth in Section 4.2.3.

 

1.49         “Testing Specifications” shall have the
meaning set forth in Exhibit D.

 

1.50         “Tributary Cards” means the Purchaser
capacity-specific interface cards, which are dedicated solely for the purpose
of creating the Backhaul IRU or the Wavelength IRU, located at the origination
and termination points set forth in Exhibits B and C.

 

1.51         “Wavelength(s)” shall mean each of the ***
The Wavelengths will originate and terminate at the locations specified in Exhibit
C.

 

1.52         “Wavelength Closing Dates” shall mean each
date within five (5) Business Days of the Acceptance Date of the Wavelength(s)
on which Seller receives payment in full of the applicable portion of the
Wavelength IRU Purchase Price.

 

1.53         “Wavelength IRU(s)” shall have the meaning
set forth in Section 2.2.

 

1.54         “Wavelength IRU Purchase Price” shall have
the meaning set forth in Section 3.2.

 

1.55         “Williams Network” shall mean the telecommunications
facilities owned and operated by Williams and used to provide
telecommunications services between two locations both end points of which
originate and terminate at a Williams point of presence.

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

5

 

2.             PURCHASE OF IRU AND GRANT OF INTEREST.

 

2.1           Backhaul IRU.  Subject to the terms and conditions contained herein, Purchaser
agrees to purchase and pay for the Backhaul IRU on the Backhaul Closing
Date.  Upon Purchaser’s payment of the
Backhaul IRU Purchase Price, Seller shall grant to Purchaser and Purchaser
shall acquire from Seller an IRU in the Backhaul for the IRU Term
(collectively, the “Backhaul IRU”),
with effect from the Backhaul Closing Date until the last day of the IRU Term.

 

2.2           Wavelength IRUs.  Subject to the terms
and conditions contained herein, Purchaser agrees to purchase and pay for the
Wavelength IRU(s) on the applicable Wavelength Closing Date.  Upon Purchaser’s payment of the Wavelength
IRU Purchase Price for the applicable Wavelength, Seller shall grant to
Purchaser and Purchaser shall acquire from Seller an IRU in the Wavelength(s)
for the IRU Term (collectively, the “Wavelength
IRUs”), with effect from the applicable Wavelength Closing Date
until the last day of the applicable IRU Term.

 

2.3           Property Interest.

 

2.3.1           Purchaser shall have no legal title or
ownership in the physical assets of the Williams Network itself, including any
proceeds from the disposition of the Williams Network.  Notwithstanding the preceding sentence, it
is understood and agreed that the grant of the Backhaul IRU and the Wavelength
IRUs is intended by the parties hereto to be treated for accounting and all
applicable tax purposes, as the sale and purchase of the Backhaul IRU and
Wavelength IRUs, and that on and after the Backhaul Closing Date and the
Wavelength Closing Date, as applicable, Purchaser or its Affiliates shall be
treated as the owner of the Backhaul IRU and the Wavelength IRUs for such
purposes.  Except as a party may
otherwise reasonably deem required by or appropriate under law or accounting
standards, the parties agree to make financial accounting filings and tax
returns consistently with such treatment.

 

2.3.2           The parties intend that the transactions
contemplated by this Agreement shall constitute a sale to Purchaser of the
rights that constitute an IRU and not a lease or other contract for provision
of capacity by Seller to Purchaser.

 

2.3.3           In the event that (i) Seller does not have
the underlying rights to grant an IRU on portions of the Backhaul IRU or the
Wavelength IRUs or (ii) any jurisdiction in which the Williams’ Network is
located does not currently recognize, or does not recognize in the future, the
conveyance of telecommunications facilities on an IRU basis, then as to such
portions of the Backhaul IRU or Wavelength IRUs or such jurisdiction(s) only,
this Agreement shall be considered an agreement for a lease of such capacity (a
“Capacity Lease”).  The term of the Capacity Lease shall be

 

6

 

for the IRU Term of the Backhaul IRU or Wavelength IRUs, as the case
may be.  All amounts owed under this
Agreement shall be paid as provided in this Agreement and Purchaser shall not
be required to make any additional payments as a result of the above-described
change in status of the rights granted under this Agreement.  Notwithstanding the foregoing, the Capacity
Lease shall provide Purchaser with all of the same rights and privileges
contained in this Agreement for the Backhaul IRU or Wavelength IRUs, except for
the nature of such interest.

 

2.3.4           In the event that this Agreement is deemed a
Capacity Lease in one or more jurisdictions, then as to such jurisdictions
only, the terms “purchase,” “purchaser,” and any variations thereon shall mean
“lease,” “lessee,” or the appropriate variation thereof, and the terms
“indefeasible and exclusive right of use” and “IRU” shall mean “Lease.” Any
other terms and conditions of the Agreement also shall be deemed modified only
to the extent necessary to be consistent with the grant of a lease to
Purchaser.  All other terms and
conditions of the Agreement shall remain unchanged and fully valid and
enforceable.

 

2.3.5           Notwithstanding the provisions of Sections
2.3.3 and 2.3.4, it is the intent of the parties that Purchaser be granted
an IRU, or, if less than an IRU, the next highest rights that are less than an
IRU with regard to use of the Backhaul IRU or Wavelength IRUs.  To the extent that (i) Seller obtains the
ability to transfer an IRU on a portion of the Wavelength or Backhaul
previously conveyed as a Capacity Lease or (ii) any jurisdiction(s) recognizes
the conveyance of telecommunications facilities on an IRU basis at any time
during the term of the Agreement, then for such portion of the Williams’
Network, the rights and interest granted in connection with such portion shall
be an IRU, and the terms of this Agreement relating to the lease of capacity
shall be of no force or effect as to such portion of the Wavelength IRUs or
Backhaul IRU.

 

3.             CONSIDERATION

 

3.1           Backhaul IRU Purchase Price.  Subject to performance by Seller of its
obligations hereunder, Purchaser shall pay to Seller, in consideration for the
Backhaul IRU, the sum of *** (the “Backhaul IRU Purchase Price”), which shall
be paid on the Effective Date or the Backhaul Closing Date, as applicable, and as
set forth in Exhibit A, without demand, reduction or set-off except the
reduction for the dark fiber credits and repurchase credit allocated on Exhibit
A.

 

3.2           Wavelength IRU Purchase Price.  Subject to performance by Seller of its
obligations hereunder, Purchaser, shall pay to Seller, in consideration for the
Wavelength IRUs, the sum of *** (the “Wavelength IRU Purchase Price”), which

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

7

 

shall be paid as set forth in Exhibit A
on the applicable Closing Date, without demand, reduction or set-off except the
reduction for the dark fiber credits and repurchase credit allocated on Exhibit
A.

 

3.3           Reduction of Backhaul IRU Purchase Price.

 

3.3.1           If the *** is operational and the Acceptance
Date for the Backhaul IRU occurs prior to September 30, 2001, Purchaser shall
receive a credit of *** per day, per STM-1 (the “***”) for the *** which credit
shall be calculated in accordance with Section 3.3.2 below and applied
to the Backhaul IRU Purchase Price.  The
*** shall only apply to *** that Seller is currently providing to Purchaser.

 

3.3.2           Once Seller determines that *** is
operational and that the Backhaul IRU is ready for testing, Seller shall notify
Purchaser in writing.  Within fifteen
(15) days after Purchaser’s receipt of such notice, Purchaser must notify
Seller of the number of *** that Purchaser desires to keep operational and the
date on which Purchaser elects to have such operational *** terminate (the
“Election Notice”).  ***  For any *** not listed on the Election
Notice, Seller shall have the right to terminate such *** as of the Backhaul
Acceptance Date, as defined in Section 4.1.1.

 

3.3.3           The amount of the *** shall be determined by
taking the number of days remaining from the termination date set forth in
Purchaser’s Election Notice through ***

 

3.4           Operations and Maintenance.  ***

 

3.5           Late Payment.  Late payments shall
accrue interest at the Default Rate until paid in full.

 

4.             DELIVERY AND ACCEPTANCE TESTING

 

4.1           Delivery Dates.

 

4.1.1           Backhaul.  Seller shall use commercially reasonable
efforts to cause the Acceptance Date for the Backhaul IRU to occur on the
earlier of:  (a) September 30, 2001; or
(b) the date on which the *** is operational and the Backhaul has been accepted
in accordance with Section 4.2.1 (the “Backhaul
Acceptance Date”).

 

4.1.2           Wavelengths.  a) Seller shall use commercially reasonable
efforts to cause the Acceptance Date for the *** to occur by May 15, 2001.  The *** will be delivered on a non-diverse
path in ***.  Nothwithstanding the
foregoing, should Seller deliver the “TUA” as defined in Section

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

8

 

4.2.2 below for the *** prior to May 15, 2001,
Purchaser agrees to begin the Acceptance Testing procedure set forth
below.  Purchaser agrees that it will
not delay payment of the applicable Wavelength IRU Purchase Price for the ***
if the Acceptance Date is prior to May 15, 2001.

 

b)  Seller shall use commercially reasonable efforts to cause the ***
to become physically diverse as set forth in Section 4.5 (by achieving physical
diversity between the northern and southern routes converging at *** as
described in Exhibit C-1 (diverse circuit path chart)) by August 15,
2001.  Notwithstanding the foregoing,
should Seller deliver the physical diversity into *** prior to August 15, 2001,
Purchaser agrees to begin the Acceptance Testing procedure set forth below,
upon Seller’s delivery of the “TUA” as defined in Section 4.2.2 below
with respect to the new segments enabling the *** to become physically diverse.

 

c)  Seller shall use commercially reasonable efforts to cause the
Acceptance Date for the *** to occur by August 15, 2001.  Notwithstanding the foregoing, should Seller
deliver the “TUA” as defined in Section 4.2.2 below for the *** prior to
August 15, 2001, Purchaser agrees to begin the Acceptance Testing procedure set
forth below.  Purchaser agrees that it
will not delay payment of the applicable Wavelength IRU Purchase Price for the
*** if the Acceptance Date is prior to August 15, 2001.

 

4.2           Acceptance Testing.

 

4.2.1           Seller shall test the Backhaul and
Wavelength(s) using procedures in accordance with industry standards (“Acceptance Testing”) to verify that such
Backhaul is operating in accordance with the Technical Specifications set forth
in Exhibit B and that such Wavelength(s) are operating in accordance
with the Technical Specifications set forth in Exhibit C.  Seller shall provide Purchaser with five (5)
Business Days’ prior written notice (which notice may be sent by facsimile or
e-mail in this case only) of the date and time of each applicable test.

 

4.2.2           After the successful conclusion of the
Acceptance Testing conducted by Seller with respect to the Backhaul or
Wavelength(s), Seller shall provide Purchaser with an electronic notice that
the Backhaul or the applicable Wavelength(s), as applicable, is available for
use (“Turn Up Acknowledgement” or
“TUA”).

 

4.2.3           After receipt by Purchaser from Seller of
the TUA, Purchaser shall have five (5) Business Days to conduct its own
Acceptance Testing to verify that it is operating in accordance with the
applicable Testing Specifications (“Testing
Period”).  If Purchaser
determines that such test results show that the Backhaul or Wavelength(s) or
any portion thereof do not meet the applicable Testing Specifications,
Purchaser

 

9

 

shall, within the Testing Period, notify Seller’ Service Delivery
Department in writing that the Capacity does not comply with the Testing
Specifications, and, if, upon investigation, such non-compliance is due solely
to Seller’ fault, then Seller shall correct the non-compliance as set forth in Section
3.1.3 below.

 

4.2.4           In the event Purchaser notifies Seller
within the time periods set forth in Section 4.2.2 that the Backhaul or
Wavelength(s), or any portion thereof is not operating within the parameters of
the applicable Testing Specifications, Seller shall expeditiously take such
action as shall be necessary with respect to such portion of the Backhaul or
Wavelength(s) to bring the operating standards of such portion of the Backhaul
or Wavelength(s) into compliance, after which such portion of the Backhaul or
Wavelength(s) shall be re-tested in accordance with the provisions of this Section
4.  After taking such actions and
re-testing, Seller shall provide Purchaser with a re-tested TUA and Purchaser
shall again have all rights provided in this Section 4.

 

4.2.5           The cycle described above of testing, taking
corrective action and re-testing shall take place a maximum of two (2) times as
necessary to ensure that such portion of the Backhaul or Wavelength(s) operates
within the parameters of the applicable Testing Specifications.  Following the second such attempt by the
parties to agree on the Acceptance Testing results, if Purchaser asserts that
the test results demonstrate the Backhaul or Wavelength(s), or any portion
thereof, does not meet the applicable Testing Specifications (“Compliancy”), both parties shall choose an
independent engineer to establish whether the test results establish Compliancy
or not.  If the independent engineer
confirms Compliancy, Purchaser shall be deemed to have accepted the Backhaul or
Wavelength(s) and reimburse Seller for the ***.  If the independent engineer confirms Purchaser’s test results,
Seller will complete expeditiously the corrective action necessary to achieve
Compliancy and pay for the actual cost of the independent engineer and for the
actual internal and out-of-pocket costs incurred by Purchaser for such extra
testing.

 

4.2.6           In the event Purchaser does not object to
the results of any of Seller’ Acceptance Testing or its own Acceptance Testing
within the time periods specified in Section 4.2.3, Purchaser shall be
deemed to have accepted the Backhaul or Wavelength(s) as of the first day
following the end of such period.  The
date on which Purchaser issues its notice accepting the Backhaul or
Wavelength(s), or on which it is deemed to accept the Backhaul or
Wavelength(s), as the case may be, under this

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

10

 

Section 4.2.5, shall constitute the date of
Purchaser’s acceptance (the “Acceptance Date”).

 

4.2.7           The parties agree that, subject to
Teleglobe’s right to terminate pursuant to Section 4.3.1, acceptance of
the Backhaul will not depend on, and shall occur regardless of, whether the *** has been delivered or is
operational.

 

4.3           Termination of Purchase Obligation.

 

4.3.1           In the event the Acceptance Date for the
Backhaul has not occurred by October 31, 2001, Purchaser may elect to terminate
its obligation to acquire the Backhaul IRU by providing written notice to
Seller by November 15, 2001, unless the reason for the Acceptance Date not
occurring results from an Event of Default by Purchaser or improper acts or
omissions.  The parties agree that the
Acceptance Date of the Backhaul will not depend on, and shall occur regardless
of, whether the *** has been delivered or is operational.  If the Acceptance Date has not occurred by
October 31, 2001 and Purchaser has not terminated its obligation to acquire the
Backhaul IRU (by the November 15, 2001 deadline), Seller shall continue to
provide to Purchaser the *** set forth on Exhibit A to the Telecommunications
Facilities Agreement (the “***”) at no cost to Purchaser after September 30,
2001.  Seller shall *** by October 1,
2001.  Williams shall continue to
provide the *** until the earlier of: 
(i) thirty (30) days after the Acceptance Date of the Backhaul IRU or
(ii) six (6) months after September 30, 2001. 
On March 31, 2002, if the Acceptance Date for the Backhaul IRU has still
not occurred, Purchaser, at its option, may (1) terminate the Backhaul IRU (and
Williams’ provision of the *** shall end as of March 31, 2002), or (2) convert the
Backhaul IRU to an equivalent IRU on the same terms and conditions as set forth
herein between the ***  In addition, the parties agree to reduce the payment for
operations and maintenance associated with original Backhaul IRU under the
O&M Agreement appropriately.

 

4.3.2           (a) In the event the Acceptance Date for the
applicable Wavelength(s) has not occurred by the deadline set forth in Section
4.1, Purchaser may elect to terminate its obligation to acquire the
particular Wavelength IRU for which the Acceptance Date has not occurred by
providing written notice to Seller, unless the reason for the Acceptance Date
not occurring results from Purchaser’s Default or improper acts or
omissions.  The notice and cure periods
set forth in Section 15 shall not apply with respect to the deadlines
set forth in Section 4.1.

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

11

 

b)  In the event the Acceptance Date has not occurred by the date set
forth in Section 4.1.2(b), Purchaser may elect to (i) drop the Wavelengths at
another point along the Williams Network subject to availability and commercially
reasonable installation intervals or (ii) terminate its obligation to accept
the *** for the return of such
Wavelength.  In the event Teleglobe
elects to drop the Wavelengths at another point on the Williams Network,
Purchaser shall deliver written notice of its election to change the drop point
within fifteen (15) days of date it may make such election.

 

4.3.3           In the event Purchaser terminates its
obligation to pay for the Backhaul IRU or any Wavelength IRU in accordance with
Sections 4.3.1 or 4.3.2 above, Purchaser agrees to pay to Seller the
value of the services provided by Williams associated therewith, which amount
shall be off-set by a credit of the applicable portion of the amounts Purchaser
previously paid to Seller under the Dark Fiber Agreement between the parties
dated December 22, 1999, which Dark Fiber Agreement has been terminated in
accordance with the Telecommunications Facilities and Services Agreement
between the parties entered into simultaneously herewith.

 

4.3.4           For the avoidance of doubt, in no event
shall a Force Majeure Event be deemed to delay or otherwise modify the
committed delivery and Acceptance Dates unless the Force Majeure Event arises
from an Act of God, fire, flood, war or civil disorder that does not exceed one
hundred and eighty (180) calendar days.

 

4.3.5           The remedies set forth in this Section 4.3
shall be Purchaser’s sole and exclusive remedies with respect to Seller’s late
delivery of the Backhaul IRU or any Wavelength IRU and with respect to any
failure by Seller to provide diversity.

 

4.4           Delivery of IRUs.  The IRUs shall be
delivered to Purchaser at the specified origination and termination points set
forth on Exhibit B or Exhibit C, as applicable.

 

4.5           Physical Diversity.

 

4.5.1           The Backhaul IRU shall be delivered and
maintained on diverse paths throughout the IRU Term.  For purposes of this Section, diverse paths shall mean separate
physical paths delivered between the cable landing station and Seller’s POP.  One path is provisioned as “work” and the other
path is provisioned as “protect”.

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

12

 

4.5.2           Two of the Wavelength IRUs shall be
delivered and maintained throughout the entire IRU Term on a fully physically
diverse path from the remaining two Wavelength IRUs subject to Section 4.1.2.

 

4.6           Required Rights.  Commencing as of the
Acceptance Date with respect to each IRU and continuing until the end of the
respective IRU Terms, Seller shall obtain all conduits, leases, fee interests,
licenses, authorizations, permits (including permits for highway, railroad and
waterway crossings and any necessary permits or authorizations such as
environmental permits) and/or other agreements or rights necessary for and
requisite to (i) the granting of the IRUs to Purchaser and (ii) the maintenance
of the Williams’ Network (collectively, the “Required
Rights”).  Seller shall cause
the Required Rights to remain effective through the respective IRU Terms.

 

5.             USE OF CAPACITY

 

5.1           Purchaser
shall be responsible for all costs to connect its facilities to the identified
Demarcation Point at the origination and termination points for the Wavelength
or the Backhaul, as the case may be, as identified in Exhibits B and C.

 

5.2           Purchaser
acknowledges that Seller may require the use of the Capacity from time to time
for the purposes of carrying out tests, adjustments and maintenance.  Purchaser shall make the Capacity available
to Seller upon reasonable notice being given to Purchaser as set forth in the
O&M Agreement, to permit Seller to conduct such tests, adjustments and
maintenance as may be necessary for the Williams’ Network to be maintained in
efficient working order in accordance with the O&M Agreement.

 

5.3           Purchaser
acknowledges that this Agreement grants no right to use any element of the
Williams’ Network other than the Capacity purchased herein.  Purchaser shall keep any and all of the
Williams’ Network free from any liens, rights or claims of any third party
attributable to Purchaser.

 

5.4           Purchaser
shall conduct all operations and use of the IRUs in a manner that does not
interfere with the operations of the Williams’ Network or the use thereof by
any other customer of Seller.

 

5.5           Seller
shall conduct all operations and use of the Williams’ Network in a manner that
does not interfere with the operations of the IRUs granted hereunder or the use
thereof by Purchaser.

 

5.6           Seller
agrees and acknowledges that it has no right to use the Backhaul IRU or
Wavelength IRUs during the IRU Term, except under the conditions specified in Section
5.2 above.

 

5.7           Seller
and Purchaser each agree to cooperate with and support the other in complying
with any requirements directly applicable to the Williams’ Network by any
governmental or regulatory agency or authority.

 

13

 

6.             TAXES

 

6.1           Purchaser
shall bear responsibility for and shall timely pay any Taxes assessed directly
against Purchaser by a Taxing Authority with respect to the Backhaul IRU or
Wavelength IRUs, or Purchaser’s use of facilities connected to the Backhaul IRU
or Wavelength IRUs; provided, however, that such Taxes shall not
include any tax that is (i) imposed upon or measured by Seller’ income or (ii)
imposed with respect to the Williams’ Network or any portion thereof beyond
Purchaser’s pro rata share for such liability, provided, further, that
Purchaser nonetheless agrees to reimburse Seller for fees in support of the
Universal Service Fund contemplated by the Telecommunications Act of 1996 or
any state equivalent, together with a one percent (1%) administrative fee to
the extent Seller’ recovery of the administrative fees is not precluded by law.

 

6.2           Seller
shall bear responsibility for and timely pay any and all Taxes and Property
Taxes asserted against it, the Williams’ Network or any portion thereof by a
federal, state or local governmental authority or subdivision thereof with
respect to the Williams’ Network (whether in connection with Seller’
construction, ownership, maintenance or use of the Williams’ Network, or
otherwise); provided that such Taxes shall not include any tax that is
(i) imposed upon, or measured by, Purchaser’s income or (ii) attributable to
Purchaser as described in Section 6.1 hereof.

 

6.3           With
respect to any and all Property Tax obligations arising in connection with the
Williams’ Network, any portion thereof or any interest therein, as between
Seller and Purchaser, Seller shall bear sole responsibility for payment and
submission of reports and filings in connection therewith.  Seller shall retain responsibility with
respect to any and all Taxing Authorities and their respective jurisdictions,
for timely reporting, filing and remitting payments in connecting with such
Property Taxes.

 

6.4           The
parties agree that they will cooperate with each other and coordinate their
mutual efforts concerning audits, or other such inquiries, filings, reports,
etc., as may relate solely to the Taxes arising from or under this Agreement,
which may be required or initiated from or by any Taxing Authority.

 

6.5           In
the event that Seller is assessed for any Taxes or fees related to Purchaser’s
ownership of the Backhaul IRU or Wavelength IRUs, Seller shall, within thirty
(30) days after receipt of an invoice therefor, provide information and
documentation to Purchaser sufficient to demonstrate the basis for the tax or fee
and the amount and due date for payment of the tax or fee.  Within such thirty (30) day period, Seller
may pay such tax or fee and invoice Purchaser for reimbursement.  Purchaser shall reimburse Seller for such
payment within thirty (30) days after receipt of Seller’ invoice.  In the event Seller elects to not pay such
tax or fee, it shall so notify Purchaser. 
Purchaser, at its option, may pay the tax or fee, or contest the same.

 

14

 

7.             DECOMMISSIONING

 

7.1           Notwithstanding
anything contained herein to the contrary, Seller may, in its sole discretion,
(i) Decommission the Backhaul or any portion thereof that affects the Backhaul
IRU at any time after the twentieth anniversary of the Backhaul Closing Date
(ii) Decommission the Wavelengths or any portion thereof that affects the
Wavelength IRUs at any time after the twentieth anniversary of the applicable
Wavelength Closing Date.

 

7.2           Seller
shall provide Purchaser ninety (90) days prior written notice of its decision
to Decommission the Backhaul or the Wavelengths, as the case may be.

 

8.             TERM

 

8.1           The
Term of this Agreement (the “Term”)
shall begin on the ***  Purchaser may
deliver such notice to Seller at any time with respect to any or all of the IRUs
granted hereunder and with respect to any IRU covered by such notice, the IRU
Term shall be deemed terminated as of the Notice Date.

 

8.2           The
term of the applicable IRU (“IRU Term”)
shall commence on the applicable ***

 

8.3           Upon
expiration of an IRU Term or the earlier termination of an IRU Term by
Purchaser in accordance with Section 8.1, Purchaser shall transfer
all rights and interest in the IRU(s) to Seller and all of Purchaser’s rights
to the IRU(s) shall revert to Seller without reimbursement by Seller of any
fees or other payments previously made with respect thereto, and from and after
such time Purchaser shall have no further rights or obligations (excepting such
obligations as shall have arisen prior to the date of expiration of the IRU Term
or such obligations which are intended to survive as set forth in Section 20)
with respect to the applicable IRUs.

 

9.             LIMITATION OF LIABILITY

 

9.1           NOTWITHSTANDING
ANY OTHER PROVISION HEREIN TO THE CONTRARY, NEITHER PARTY SHALL BE RESPONSIBLE
OR LIABLE TO THE OTHER FOR SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT,
PUNITIVE OR EXEMPLARY LOSSES OR DAMAGES ARISING AS A RESULT OF OR IN THE
PERFORMANCE OR NONPERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, OR ITS
ACTS OR OMISSIONS RELATED TO THIS AGREEMENT OR ITS USE OF THE WILLIAMS’ NETWORK
OR ANY CAUSE WHATSOEVER, WHETHER OR NOT ARISING FROM SOLE, JOINT OR CONCURRENT
NEGLIGENCE, STRICT LIABILITY OR VIOLATION OF LAW.

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

15

 

9.2           Nothing
contained herein shall operate as a limitation on the right of either Seller or
Purchaser to bring an action for damages against any third party, including
indirect, special, or consequential damages, based on any acts or omissions of
such third party as such acts or omissions may affect the operation or use of
the Capacity.  Each of Seller and
Purchaser shall assign such rights of claims, execute such documents and do
whatever else may be reasonably necessary to enable the other to pursue any
such action against such third party, provided however, that the provisions of
this Section 9.2 shall not permit, and the parties agree that Section
9.1 shall apply to prevent, the filing of an action by Seller or Purchaser
for damages against a third party for indirect, special, or consequential
damages arising out of or in connection with this Agreement if such third
party, directly or through one or more intermediate parties, has a right of
indemnification, impleader, cross-claim, contribution, or other right of
recovery against Seller or Purchaser, respectively.

 

9.3           EXCEPT
AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, SELLER MAKES NO WARRANTY OR
REPRESENTATION TO PURCHASER OR ANY OTHER PERSON OR ENTITY, WHETHER EXPRESS,
IMPLIED OR STATUTORY, AS TO THE INSTALLATION, DESCRIPTION, QUALITY,
MERCHANTABILITY, COMPLETENESS OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE
WILLIAMS NETWORK, OR AS TO ANY OTHER MATTER, ALL OF WHICH WARRANTIES ARE HEREBY
EXPRESSLY EXCLUDED AND DISCLAIMED.

 

9.4           With
respect to rights provided under this Agreement, the parties shall make a
similar disclaimer in each of their customer contracts, and shall require their
customers, permitted assignees or other users of the Capacity to agree, assume,
and be subject to the terms of this Section 9.

 

10.          INDEMNIFICATION

 

10.1         Each
party (the “Indemnifying Party”)
hereby releases and agrees to indemnify, defend, protect and hold harmless the
other party, its employees, officers, shareholders, directors, agents,
contractors and Affiliates (the “Indemnified
Parties”), from and against, and assumes liability for any and all
claims, demands, actions, losses, damages, assessments, charges, liabilities,
costs and expenses (including without limitation, interest, penalties and
attorneys fees and disbursements (including an allocated share of in-house
counsel fees)) which may from time to time be suffered or incurred by, or
asserted against, the Indemnified Parties directly or indirectly, on account of
or in connection with:

 

10.1.1      Any injury, death, loss or damage to any person,
tangible property or facilities of any person or entity to the extent arising
out of or resulting from the negligence or willful misconduct of the
Indemnifying Party, its officers, employees, servants, Affiliates, agents or
contractors or from any other person or entity for whom it is in law
responsible; and

 

16

 

10.1.2      Any violation by the Indemnifying Party of
regulations, rules, statutes or court orders of any local, state or federal
governmental agency, court or body in connection with its performance under
this Agreement, or its use of the Williams Network.

 

10.2         In
the event an Indemnified Party is notified of any action as to which it may
seek to be indemnified under this Section, it will promptly notify the
Indemnifying Party and seek to consult with such Indemnifying Party prior to
taking any material action with respect thereto, unless required to do so in
order to protect any rights or remedies which may be available.

 

10.3         The
Indemnifying Party hereby expressly recognizes and agrees that its obligation
to indemnify, defend, protect and save the Indemnified Parties harmless is a
material obligation to the continuing performance of the Indemnifying Party’s
other obligations hereunder.  The
obligations of this Section 10 shall survive the expiration or earlier
termination of this Agreement.  Recovery
under or in respect of this Section 10 shall not be limited to the
proceeds of any insurance to be carried hereunder or otherwise carried by the
Indemnifying Party.

 

11.          ASSIGNMENT

 

11.1         This
Agreement shall be binding on each party and its respective successors and
assigns.  Neither party may assign this
Agreement or any of its rights or obligations hereunder without the prior
written consent of the other party, which consent shall not be unreasonably
withheld or delayed.  If Seller does not
consent to the credit of the proposed assignee, Purchaser may still assign this
Agreement without consent of Seller, but Purchaser shall remain primarily
liable for all of the obligations hereunder. 
Any attempted assignment in violation of this Section 11 shall be
of no force or effect and shall be null and void.

 

11.2         Notwithstanding
the foregoing, Purchaser may assign this Agreement without prior written
consent to (i) any Affiliate, successor through merger, or acquirer of substantially
all of its assets which has the capacity to fulfill the requirements set forth
in this Agreement, or (ii) if necessary to be in compliance with the rules
and/or regulations of any regulatory agency, governmental agency, legislative
body or court of competent jurisdiction. 
Notwithstanding, in all cases the assignee must acknowledge in writing
its assumption of the obligations of the assignor hereunder and notify the
other party to this Agreement of such assignment as soon as practicable.

 

11.3         Notwithstanding
the foregoing, Seller may assign this Agreement without prior written consent
to (i) any Affiliate, successor through merger, acquirer of substantially all
of its assets which has the capacity to fulfill the requirements set forth in
this Agreement or as part of a financing transaction where Seller remains the
operator of the Williams’ Network, subject to the financing party executing an
Acknowledgement Letter, or (ii) if necessary to be in compliance with the rules
and/or regulations of any regulatory agency, governmental agency, legislative

 

17

 

body or court of competent jurisdiction.  Notwithstanding, in all cases the assignee
shall acknowledge in writing its assumption of the obligations of the assignor
hereunder and notify the other party to this Agreement of such assignment as
soon as practicable.

 

11.4         Notwithstanding
anything to the contrary in this Agreement, Purchaser may resell to its
customers (including on an IRU basis), lease, provision, swap, transfer or
exchange the IRUs or any telecommunications capacity derived from the IRUs in
smaller increments.

 

12.          CONFIDENTIAL AND PROPRIETARY INFORMATION

 

12.1         In
connection with this Agreement, either party may furnish to the other certain
information that is marked or otherwise identified as proprietary or
confidential (“Confidential Information”).  This Confidential Information may include,
among other things, documentation, data, drawings, specifications, plans, and
other technical or business information, including, without limitation,
confidential information of a party’s customer.  For purposes of this Section 12, the party that discloses
Confidential Information is referred to as the “Disclosing Party”, and the
party that receives Confidential Information is referred to as the “Receiving
Party”.

 

12.2         When
Confidential Information is furnished in tangible form, the Disclosing Party
shall mark or otherwise identify it as proprietary or confidential.  When Confidential Information is provided
orally, the Disclosing Party shall, at the time of disclosure or promptly
thereafter, identify the Confidential Information as being proprietary or
confidential.

 

12.3         With
respect to Confidential Information disclosed under this Agreement, the
Receiving Party shall:

 

12.3.1      hold the Confidential Information in confidence,
exercising a degree of care not less than the care used by the Receiving Party
to protect its own proprietary or confidential information that it does not
wish to disclose, but in no event less than a reasonable degree of care;

 

12.3.2      restrict disclosure of the Confidential
Information solely to those of its Affiliates, officers, directors, employees,
its lenders or other parties providing financing arrangements, agents or representatives,
including legal counsel and independent auditors (collectively, “Representatives”), who need to know such
Confidential Information for the purpose of negotiating, executing and
implementing this Agreement.  The
Receiving Party agrees to inform each of its Representatives of the non-public
nature of the Confidential Information and to direct such persons to treat such
Confidential Information in accordance with the terms of this Section 12
and with respect to permitted third parties, execute a non-disclosure 

 

18

 

agreement substantially reflecting the terms and conditions of this Section
12; and

 

12.3.3      use the Confidential Information only in
connection with the performance of this Agreement except as the Disclosing
Party may otherwise agree in writing.

 

12.4         Confidential
Information shall be deemed the property of the Disclosing Party.  Upon request of the Disclosing Party, the
Receiving Party shall return all Confidential Information received in tangible
form, or shall destroy it and provide written certification of destruction to
the Disclosing Party.  If the Receiving
Party loses or makes an unauthorized disclosure of Confidential Information, it
shall notify the Disclosing Party and use reasonable efforts to retrieve the
Confidential Information.

 

12.5         The
Receiving Party shall have no obligation to preserve the proprietary nature of
Confidential Information which:

 

12.5.1      was previously known to the Receiving Party free
of any obligation to keep it confidential;

 

12.5.2      is or becomes publicly available by means other
than unauthorized disclosure by the Receiving Party;

 

12.5.3      is developed by or on behalf of the Receiving
Party independently of any Confidential Information furnished under this
Agreement; or

 

12.5.4      is received from a third party whose disclosure
does not violate any confidentiality obligation.

 

12.6         The
contents and existence of this Agreement is Confidential Information of both
parties, and all information that may be disclosed to Receiving Party
pertaining to the identities, locations, and requirements of the Disclosing
Party’s customers, is Confidential Information of Disclosing Party.

 

12.7         If
the Receiving Party is required to disclose the Disclosing Party’s Confidential
Information by an order or a lawful process of a court or governmental body,
the Receiving Party shall promptly notify the Disclosing Party, and shall
cooperate with the Disclosing Party in seeking reasonable protective
arrangements before the Confidential Information is produced; provided,
however, that after notice to and consultation with the Disclosing Party and
seeking reasonable protective arrangements, the Receiving Party may release
Confidential Information to governmental bodies which is required to comply
with federal or state securities laws.

 

12.8         Each
party agrees that the Disclosing Party would be irreparably injured by a breach
of this Section 12 by the Receiving Party or its representatives and that the
Disclosing Party may be entitled to equitable relief, including injunctive
relief and

 

19

 

specific performance, in the event of any
breach of the provisions of this Section 12.  Such remedies shall not be deemed to be the exclusive remedies
for a breach of this Section 12, but shall be in addition to all other
remedies available at law or in equity.

 

13.          PUBLICITY AND ADVERTISING

 

13.1         Neither
party shall publish or use any advertising, sales promotions, or other
publicity materials that use the other party’s logo, trademarks, or service
marks without the prior written approval of the other party.

 

13.2         No
publicity regarding the existence and/or terms of this Agreement may occur
without the mutual written agreement of both parties.  The content and timing of any press releases and all other
publicity regarding the subject matter of the Agreement or Purchaser’s
relationship with Seller shall be mutually agreed upon in writing by the
parties.

 

13.3         Nothing
in this Agreement establishes a lease, license or right for either party to use
any of the other party’s brands, marks, or logos without prior written approval
of the other party.

 

14.          REPRESENTATIONS, WARRANTIES AND COVENANTS

 

14.1         Each
party represents, warrants and covenants that as of the Effective Date and on
each Acceptance Date:

 

14.1.1         It has taken all requisite action to approve
the execution, delivery and performance of this Agreement;

 

14.1.2         This Agreement constitutes a legal, valid and
binding obligation enforceable against such party in accordance with its terms,
subject to bankruptcy, insolvency, creditors’ rights and general equitable
principles;

 

14.1.3         Its execution and performance under this
Agreement shall not violate any applicable existing regulations, rules,
statutes or court orders of any local, state or federal government agency,
court or body of any country or any contract or other agreement the party is
subject to;

 

14.1.4         It is a corporation or other legal entity duly
organized, validly existing and in good standing under the laws of its state of
incorporation or formation;

 

14.1.5         It has the full right and authority to enter
into, execute, deliver and perform its obligations under this Agreement;

 

14.1.6         To the best of its knowledge and belief, there
exists no breach of any agreement it may have with third parties which
reasonably could be

 

20

 

expected to have a material adverse effect on its ability to perform
its obligations under this Agreement;

 

14.1.7         Its execution and performance of this
Agreement will not result in a breach of any agreement it may have with third
parties or any applicable law which reasonably could be expected to have a
material adverse effect on its ability to perform its obligations under this
Agreement;

 

14.1.8         There are no pending or, to best of its
knowledge and belief, threatened claims, actions, suits, audits, investigations
or proceedings by or against it which reasonably could be expected to have a
material adverse effect on its ability to perform its obligations under this
Agreement;

 

14.1.9         It is qualified to do business in all
jurisdictions where such qualification is required by applicable law, except
where the failure to be so qualified could not reasonably be expected to have a
material adverse effect on its ability to perform its obligations under this
Agreement;

 

14.1.10       It shall perform its obligations under this
Agreement and use the Williams Network in a manner consistent with applicable
law, and shall not use, or knowingly permit the Williams Network to be used,
for any illegal purpose or in any other unlawful manner; and

 

14.1.11       It now holds or will obtain prior to the
applicable Acceptance Date all necessary consents, authorizations, licenses,
permits and other approvals, both governmental and private, as are necessary to
perform its obligations under this Agreement, including, with respect to Seller
only, as necessary for the operation and maintenance of the Williams Network.

 

14.2         In
addition to Section 13.1, Seller hereby represents, warrants and
covenants to Purchaser as of the Effective Date and each Acceptance Date that:

 

14.2.1         the Wavelength IRUs and Backhaul IRU will be
designed and operated as integral parts of the Williams Network;

 

14.2.2         Seller shall not amend any material agreement
or grant a waiver thereunder without the prior written consent of Purchaser, if
such amendment or waiver will have a direct material adverse effect on the IRUs
granted hereunder; and, Seller shall not seek to transfer any asset used in the
performance of this Agreement to an Affiliate without causing the Affiliate be
bound by this representation.

 

15.          DEFAULT

 

15.1         Generally.

 

15.1.1         A party shall be in default under this
Agreement thirty (30) days after the non-defaulting party shall have given
written notice of such default

 

21

 

unless the defaulting party shall have cured such default within such
thirty (30) days; provided, however, that where any such default other than the
payment of money cannot reasonably be cured
within such 30-day period, if the defaulting party shall proceed
promptly to cure the same and prosecute such cure with due diligence, the time
for curing such default shall be extended for such period of time not to exceed
ninety (90) days as may be necessary to complete such cure, and further
provided that the period for cure set forth in Section 15.2.7 shall be
one hundred eighty (180) days.

 

15.1.2         The notice and default provisions set forth in
this Section 15 shall not apply to delivery deadlines set forth in Section
4.1.

 

15.2         “Events
of Default” shall include, but not be limited to, the following:

 

15.2.1         failure to make any payment when due hereunder
not cured within the applicable cure period following written notice by the
non-defaulting party;

 

15.2.2         breach of any material provision hereof not
cured within the applicable cure period following written notice by the
non-defaulting party;

 

15.2.3         the making by either party of a general
assignment for the benefit of its creditors;

 

15.2.4         the filing of a voluntary petition in
bankruptcy or the filing of a petition in bankruptcy or other insolvency
protection against either party which is not dismissed within ninety (90) days
thereafter, or the filing by either party of any petition or answer seeking,
consenting to, or acquiescing in reorganization, arrangement, adjustment,
composition, liquidation, dissolution or similar relief; or

 

15.2.5         the failure of the Backhaul IRU or any
Wavelength IRU or any portion thereof to meet the Technical Specifications
applicable thereto the result of which causes such Backhaul IRU, Wavelength IRU
or portion thereof to be unusable by Purchaser for a continuous period of sixty
(60) consecutive days.  For purposes of
this Section, “unusable” shall mean either the inability to transmit any
traffic over the Wavelength or Backhaul or portion thereof, as applicable, due
to failure of facilities supplied by Seller, or degradation of service below
the Technical Specifications due to facilities provided by Seller.  In no event shall “unusable” mean
Purchaser’s inability to transmit traffic or use the Wavelength or Backhaul due
to the unavailability of the ***, Purchaser’s inability to connect to the
Wavelength or Backhaul, failure of any facilities or equipment provided by or
supplied by Purchaser or for reasons of a similar nature.

 

22

 

15.2.6                            the failure of Purchaser to
fulfill its obligation to purchase any Wavelength IRU or the Backhaul IRU.

15.2.7                            the failure of Williams to
fulfill its obligations to maintain Required Rights as set forth in Section
4.6 (except as modified by Section 21, Bargain Purchase Option).

15.3                       In the event of a default
described in Section 15.2.5 or Section 15.2.7 above, Purchaser
shall have the right to terminate the affected Backhaul IRU or Wavelength IRU
(or any portion thereof) and *** calculated from the applicable Acceptance
Date.  Upon receipt of such refund,
which shall be payable to Purchaser within ten (10) Business Days of the
request therefore, Purchaser shall return all rights and interest in the
terminated IRU to Seller.  The parties
hereby agree that in the event of a default in accordance with Section
15.2.5 above, the rights and remedies set forth in this paragraph shall be
Purchaser’s sole and exclusive rights and remedies with respect to such
default.

15.4                       Except as set forth in Section
4.3.5 and Section 15.3, in addition to the specific remedies provided
hereunder, upon any default by a party, after notice thereof the non-defaulting
party may pursue any legal remedies that it may have under applicable law or
principles of equity relating to such default that are consistent with this
Agreement, provided that appropriate notice has been given under this Section.

15.5                       The parties agree that in
the event of a default hereunder or due to the termination by Purchaser under Section
18 hereof (“Force Majeure”)
whereby Seller is required to ***

16.          RULES OF
CONSTRUCTION

16.1                       The captions or headings in
this Agreement are strictly for convenience and shall not be considered in
interpreting this Agreement or as amplifying or limiting any of its content.  Words in this Agreement that import the
singular connotation shall be interpreted as plural, and words that import the
plural connotation shall be interpreted as singular, as the identity of the
parties or objects referred to may require.

16.2                       Unless expressly defined
herein, words having well-known technical or trade meanings in the
telecommunications industry shall be so construed.

16.3                       Except as set forth to the
contrary herein, any right or remedy of Seller or Purchaser shall be cumulative
and without prejudice to any other right or remedy, whether contained herein or
not.

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

23

 

16.4                       This Agreement does not
provide, and is not intended to provide third parties with any remedy, claim,
liability, reimbursement, cause of action, or any other right.

16.5                       This Agreement has been
fully negotiated between and jointly drafted by Seller and Purchaser.

16.6                       In the event of a conflict
between the provisions of this Agreement and those of any Exhibit, the
provisions of this Agreement shall prevail and such Exhibits shall be corrected
accordingly.

16.7                       Except as specifically set
forth herein, the normal standards of performance within the telecommunications
industry in the relevant market shall be the measure of whether a party’s
performance is reasonable and timely.

17.          MISCELLANEOUS
PROVISIONS

17.1                       Arbitration.

17.1.1                          Any dispute or disagreement
relating to this Agreement that is not settled to their mutual satisfaction
within the applicable notice or cure periods provided in this Agreement, shall,
upon the demand for arbitration by either party, be settled by arbitration in
New York, New York, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association in effect on the date that a party gives
notice of its demand for arbitration under this Section 17.1.  If Seller and Purchaser cannot agree on a
single arbitrator within fifteen (15) days after the notice demanding
arbitration is received by the receiving party, Seller and Purchaser shall each
select an arbitrator within the subsequent fifteen (15) day period and the two
(2) arbitrators shall select a third arbitrator within ten (10) days.  If the parties fail to appoint arbitrators
or the arbitrators cannot agree on a third arbitrator, then either party may
request that the American Arbitration Association shall select and appoint a
neutral arbitrator who shall act as the sole arbitrator.  The parties shall be entitled to submit
expert testimony and/or written documentation on such arbitration proceeding.  The decision of the arbitrator or
arbitrators shall be final and binding upon Seller and Purchaser and shall
include written findings of law and fact, and judgment may be obtained thereon
by either Seller or Purchaser in a court of competent jurisdiction.  Seller and Purchaser shall each bear the
cost of preparing and presenting its own case. 
The cost of the arbitration, including the fees and expenses of the
arbitrator or arbitrators, shall be shared equally by Seller and Purchaser
unless the award otherwise provides. 
The arbitrator or arbitrators shall be instructed to establish
procedures such that a decision can be rendered within ninety (90) days after
the appointment of the arbitrator or arbitrators.  In no event shall the arbitrator or arbitrators have the power to
award any damages described in and limited by Section 9 which 

 

24

 

 

section shall be binding on the arbitrator(s).  This Section 17 shall not be
construed to limit either party’s ability to recover under Section 10
with respect to claims of third parties brought against such party.

17.1.2                          The obligation to arbitrate
shall not be binding upon either party with respect to requests for preliminary
injunctions, temporary restraining orders, specific performance or other procedures
in a court of competent jurisdiction to obtain interim relief when deemed
necessary by such court to preserve the status quo or prevent irreparable
injury pending resolution by arbitration of the actual dispute.

17.1.3                          Any arbitrator appointed to
act under this Section 17.1 must agree to be bound to the provisions of
this Agreement, including Sections 9 and 12 with respect to the terms of
this Agreement and any information obtained during the course of the
arbitration proceedings.

17.2                       Notices.

17.2.1                          Unless otherwise provided in
this Agreement, all notices and communications concerning this Agreement
(except invoices) shall be in writing and addressed to the other party as
follows:

If to Purchaser:                                                   Teleglobe USA
Inc.

Attn:       Executive Vice President
                  and General Counsel

11480 Commerce Park Drive

Reston, Virginia 20191

Phone No.: (703) 755-2000

Facsimile No.: (703) 755-2694

with a copy to:                                                     Teleglobe USA
Inc.

Attn:       Chief Network Officer

11480 Commerce Park Drive

Reston, Virginia 20191

Phone No.: (703) 755-2000

Facsimile No.: (703) 755-2622

If to Seller:                                                                           Williams
Communications, LLC

Attn:       Contract Administration

One Williams Center, 27th Floor

Tulsa, OK 74172

Phone No.: (918) 573-3983

Facsimile No.: (918) 574-6042

with a copy to:                                                     Williams
Communications, LLC

Attn:       General Counsel

One Williams Center, Suite 4100

 

25

 

Tulsa,
OK 74172

Phone No.: (918) 573-2000

Facsimile No.: (918) 573-3005

or at such other address as
may be designated in writing to the other party.

17.2.2                          Unless otherwise provided
herein, notices shall be hand delivered, sent by registered or certified U.S.
Mail, postage prepaid, or by commercial overnight delivery service, and shall
be deemed served or delivered to the addressee or its office when received at
the address for notice specified above when hand delivered, on the day after
being sent when sent by overnight delivery service, or three (3) days after
deposit in the mail when sent by registered or certified U.S. mail.  Notice may be sent via facsimile, effective
on the date of sending the facsimile when the sender receives electronic
confirmation denoted “send successful” (or similar message), provided that the
party sending facsimile notice simultaneously sends a copy of the notice via a
nationally recognized overnight courier with the package marked for next-day
delivery.

17.3                       Waiver.  The waiver by any party, in whole or in
part, of a breach of or a default under any of the provisions of this
Agreement, or the failure, in whole or in part, of any party, upon one or more
occasions, to enforce any of the provisions of this Agreement or to exercise
any right or privilege hereunder shall not thereafter be construed as a waiver
of any subsequent breach or default or as a waiver of any other provision,
right or privilege hereunder.

17.4                       Governing
Law. 
This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New York without reference to
its choice of law principles.

17.5                       Entire
Agreement; Amendment.  This Agreement constitutes the
entire and final agreement and understanding between Seller and Purchaser with
respect to the subject matter hereof and supersedes all prior agreements
relating to the subject matter hereof, which are of no further force or
effect.  The Exhibits referred to herein
are integral parts hereof and are made a part of this Agreement by
reference.  This Agreement may only be
modified or supplemented by an instrument in writing executed by duly
authorized representatives of Seller and Purchaser.

17.6                       Counterparts.  This Agreement may be executed in one or
more counterparts, all of which taken together shall constitute one and the
same instrument.

18.          FORCE
MAJEURE

Except for an obligation to pay money
hereunder, neither party shall be in default under this Agreement with respect
to any delay in its performance caused by any of the 

 

26

 

following conditions (each a “Force Majeure Event”): act of God, fire,
flood, government codes, ordinances, laws, rules, regulations or restrictions;
war or civil disorder; or any other cause beyond the reasonable control of such
party.  The party claiming relief under
this Section shall promptly notify the other in writing of the existence of the
Force Majeure Event relied on, the expected duration of the Force Majeure
Event, and the cessation or termination of the Force Majeure Event and shall
exercise commercially reasonable efforts to minimize the time for any such
delay.  If a Force Majeure Event
persists beyond ninety (90) days, the parties agree to meet and discuss an
equitable solution taking into account the nature of the obligation involved,
the likelihood of a workaround solution, and the extent to which the affected
party is or will be adversely affected. 
If a Force Majeure Event persists beyond one hundred eighty (180) days,
Purchaser shall have the right to terminate such IRUs as are affected by the
Force Majeure Event and to receive a pro rata refund of the Backhaul IRU Purchase
Price or Wavelength IRU Purchase Price, as applicable, previously paid to
Seller for the applicable terminated IRU, based on a term of twenty (20) years,
calculated from the applicable Acceptance Date.  Upon receipt of such refund, which shall be payable to Purchaser
within ten (10) Business Days of the request therefore, Purchaser shall return
all rights and interest in the terminated IRU to Seller.  In no event shall either party be deemed in
default on account of a Force Majeure Event or termination pursuant to this
Section and termination and receipt of the refund described above shall be
Purchaser’s sole and exclusive rights and remedies with respect to any Force
Majeure Event.

19.          SEVERABILITY

If any term, covenant or condition contained
herein shall, to any extent, be invalid or unenforceable in any respect under
the laws governing this Agreement, the remainder of this Agreement shall not be
affected thereby, and each term, covenant or condition of this Agreement shall
be valid and enforceable to the fullest extent permitted by law.

20.          TERMINATION;
SURVIVAL

In the event all purchase obligations under
this Agreement have been terminated pursuant to Section 4.4, this
Agreement shall automatically terminate. 
Notwithstanding anything to the contrary contained herein, expiration or
termination of this Agreement shall not affect the rights or obligations of any
party hereto prior to the date of termination or pursuant to the Sections of
this Agreement entitled Indemnification, Limitation of Liability,
Confidentiality and Proprietary Information, and Arbitration, respectively.

21.          BARGAIN
PURCHASE OPTION

21.1                       Purchaser shall have the
option to purchase from Seller all of Seller’s right, title and interest in and
to the derivable capacity constituting the Backhaul and the Wavelengths, as
well as the Tributary Cards without warranty or recourse (the “Ownership Interest”) to the extent
Purchaser has then not already acquired such rights (an “Option”) for a
purchase price of *** (the “Option Price”),
on the last

 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

27

 

day of the applicable IRU Term (the “Exercise
Date”) so long as Purchaser shall have complied fully with all of
its obligations hereunder.  Purchaser
may exercise the Option by giving Seller an irrevocable written notice, at
least thirty (30) days before the Exercise Date, electing to purchase all (but
not less than all) of the Ownership Interest and by paying the Option Price to
Seller on the Exercise Date.  If no such
notice is delivered by Purchaser to Seller within such period, Purchaser shall
be deemed to have waived any right to purchase the Ownership Interest.  If such notice is delivered to Seller by the
Exercise Date and the Option Price paid to Seller as provided herein, Seller
shall on the Exercise Date transfer to Purchaser all of the Ownership Interest.

21.2                       In the event any Required
Rights documents are ambiguous with respect to the provisions of Section 20(a),
such ambiguity, solely for purposes of this Agreement, shall be construed as
not permitting transfer of an Ownership Interest.  This Section is intended solely to prevent unintentional
violation of the rights of third parties and shall not be construed as
estopping either party from applying a different interpretation of Required
Rights documents with respect to other parties.

21.3                       To the extent Purchaser
obtains an Ownership Interest, Purchaser must secure, at its own expense, all
rights, licenses, authorizations, easements, leases, fee interests, or
agreements to the extent necessary from third parties to provide fort the
continued occupancy of real property or fixtures (such as conduits, bridges,
river crossings, or transmission towers) by the Ownership Interest.  Upon Seller’s written request with respect
to specific tracts, Purchaser shall promptly certify that it has complied with
the condition set forth in the preceding sentence.

21.4                       In the event Purchaser
exercises the Option, Purchaser shall (i) reimburse Seller for any direct
out-of-pocket costs incurred by Seller in connection with the exercise of the
Option and the transfer of right, title and interest in the applicable
Ownership Interest, and (ii) release, indemnify, defend, protect and hold
harmless Seller, its employees, officers, shareholders, directors, agents,
contractors and Affiliates, from and against, and assumes liability for any and
all claims, demands, actions, losses, damages, assessments, charges,
liabilities, taxes, costs and expenses (including without limitation, interest,
penalties, and attorney’s fees and disbursements) which may from time to time
be suffered or incurred by, or asserted against Seller directly or indirectly,
on account of or in connection with the grant of the Option or the transfer of
the Ownership Interest to Purchaser pursuant to exercise of the Option,
including without limitation, those arising from (1) any claims by a landowner
that Seller or Purchaser are violating such landowner’s rights because of a
transfer of the Ownership Interest, (2) any claims by any party to or successor
to a right-of-way agreement that Seller violated or exceeded the terms of such
right-of-way agreement because of a transfer of the Ownership Interest, (3) any
additional fees, payments, charges, taxes, or any other form of monetary claims
by any party to or successor to a right-of-way agreement that the transfer of the
Ownership Interest entitles that party to any additional payments under such
right-of-way agreement.  The provisions
of this Section 

 

28

 

shall apply regardless of the merits of any claim and regardless of
whether Seller actually transferred an Ownership Interest with respect to the
segment in question.

 

29

 

 

IN
WITNESS WHEREOF and in confirmation of their consent to the terms and
conditions contained in this Agreement and intending to be legally bound
hereby, Seller and Purchaser have executed this Agreement as of the dates set
forth opposite the signatures of their respective authorized officers below.

 

 

	
  TELEGLOBE USA INC.

  	
   

  	
  WILLIAMS COMMUNICATIONS, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/  Stewart Verge

  	
   

  	
  By:

  	
  /s/ William
  L. Cornog

  
	
  Name:

  	
  Stewart
  Verge

  	
   

  	
  Name:

  	
  William  L. Conog

  
	
  Title:

  	
  Executive
  Vice President

  	
   

  	
  Title:

  	
  SVP &GM
  Network Services

  
	
  Date:

  	
  March 31,
  2001

  	
   

  	
  Date:

  	
  March 31,
  2001

  

 

 

30

 

AMENDMENT
NO. 1

THIS
AMENDMENT (“Amendment”) is made and entered into effective
this 2nd day of May, 2001, by and between WILLIAMS
COMMUNICATIONS, LLC (“Seller”) and TELEGLOBE
USA INC. (“Purchaser”).

WHEREAS, Seller and
Purchaser are parties to that certain Capacity Purchase Agreement which is
dated March 31, 2001 (the “Agreement”); and

WHEREAS, Seller and
Purchaser desire to amend the Agreement; and

NOW,
THEREFORE in consideration of the foregoing premises and
mutual promises and covenants of the parties hereto, the receipt and
sufficiency of which is hereby acknowledged, Seller and Purchaser agree to
amend the Agreement as follows:

1.                                       Section 13.0,
“Portability,” of Exhibit B, “Technical Specifications and Description for
Backhaul Service,” shall be deleted in its entirety and replaced with the
following:

“13.0  Portability.  Notwithstanding anything in this Agreement to the contrary and
subject to availability, Purchaser may accept and pay for individual STM-1s
prior to Seller’s delivery of the *** as they become available, instead of on
the *** as was originally contemplated. 
Subject to the particular STM-1 meeting the Testing Specifications,
Purchaser agrees to accept and pay for any STM-l associated with the ***
requested by Purchaser and delivered by Seller regardless of whether the ***
has been turned up or is operational. Once Purchaser has accepted and paid for
an individual STM-l, it shall become part of the Backhaul IRU.  In no event shall the Backhaul IRU consist
of more or less than ***, except as specifically set forth in this
Agreement.  For example, Purchaser may
elect to accept and pay for *** STM-ls on the *** when they become
available.  If Purchaser so elects,
Purchaser will then purchase *** on the ***, which purchases together shall
constitute the Backhaul IRU.  The
purchase price for individual STM-1s shall be *** and payment shall be due five
(5) business days after acceptance of each STM-I.

In
addition, once Purchaser has accepted and paid for ***, Purchaser may elect to
port any of the STM-1s constituting the Backhaul IRU to the ***, subject to
availability and: (i) Purchaser must provide Seller with sixty (60) days
notice; and (ii) Purchaser must pay a reconfiguration fee to be determined at
the time of Purchaser’s request for such portability.  Portability shall mean, for example, that Purchaser shall have
the ability to turn down any number of the *** which constitute the Backhaul
IRU and turn up the same number of STM-1 s at the ***.  In no event shall the Termination Point set
forth in Section 12.0 above be portable and in no event shall the total number
of STM-1 s exceed ***. Seller agrees to perform the transition without an
Outage (as defined in the O&M Agreement). 
In the event the transition causes an Outage, Seller will provide Outage
Credits (as defined in the O&M Agreement) to Purchaser.  Such Outage Credit shall be Purchaser’s sole
and exclusive remedy in the event of any Outage during the transition period.”

2.                                       Except as
specifically amended herein, all terms, conditions and provisions contained in
the Agreement shall remain unchanged and in full force and effect.

SIGNATURE PAGE TO FOLLOW

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

31

 

IN WITNESS
WHEREOF, the parties have executed this Amendment on the day and year first
above set forth.

 

	
  TELEGLOBE USA. INC.

  	
   

  	
  WILLIAMS COMMUNICATIONS, LLC  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /S/ 
  Stewart Verge

  	
   

  	
  /S/ William L. Cornoy

  
	
  SIGNATURE)

  	
   

  	
  SIGNATURE)

  
	
   

  	
   

  	
   

  
	
  Stewart Verge

  	
   

  	
  William L. Cornoy 

  
	
  PRINT)

  	
   

  	
  PRINT)

  
	
   

  	
   

  	
   

  
	
  Eup-Global Ops

  	
   

  	
  Sup & Gen’l Mgr — Network Services

  
	
  TITLE)

  	
   

  	
  TITLE)

  

 

 

AMENDMENT
NO. 2

THIS AMENDMENT (“Amendment”) is made,
entered into, and effective this 25th day of October,
2001, by and between WILLIAMS COMMUNICATIONS,
LLC (“Seller”) and TELEGLOBE USA INC. (“Purchaser”).

WHEREAS, Seller and
Purchaser are parties to that Capacity Purchase Agreement, dated March 31,
2001, as amended by Amendment No. 1 dated May 2, 2001 (together the
“Agreement”); and

WHEREAS, the Seller
agrees to allow Purchaser to order, pursuant to the terms and conditions of the
Agreement, certain Backhaul in addition to the Backhaul provided for in the
original Agreement;

NOW,
THEREFORE, in consideration of the foregoing premises and
mutual promises and covenants of the parties hereto, the receipt and
sufficiency of which is hereby acknowledged, Seller and Purchaser agree to
amend the Agreement as follows:

1.               a.     The Definitions contained in Sections 1.6, 1.7, and
1.8 of the Agreement shall be deleted in their entirety and replaced with the
following:

1.6           “Backhaul” shall mean either a) the original ***, as described
in Section 12.0 of Exhibit B (except as ported in accordance with Section 13.0
of Exhibit B, as amended by Amendment No. 1); or b) the Added Backhaul as
specified in any applicable Service Order.

1
7           “Backhaul Closing Date” shall mean a date
within five (5) Business Days of the Acceptance Date of the Backhaul or Added
Backhaul, as applicable.

1.8           “Backhaul IRU” shall have the meaning set forth in Section
2.1, as to the original***, or
shall have the meaning set forth in Section 2.1.1, as added by Amendment
No.2.

                        b.     The following Definitions shall be added to Section 1
of the Agreement:

1.5.1        “Added Backhaul” shall mean the number of STM-1 s from the*** as specified in an applicable Service
Order, but excluding the original***.

1.5.2        “Added Backhaul IRU Purchase Price” shall have the meaning set
forth in Section 3.1.1, as added by Amendment No. 2.

2.                       The following
paragraph shall be added to the Agreement as Section 2.1.1:

2.1.1        Ordering
Added Backhaul. Customer may order and Williams shall provide,
subject to availability and the terms and conditions contained 

***
Portions hereof have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment in
accordance with Rule 406.

 

 

herein,
Added Backhaul. All such orders shall be requested on Williams’ service order
form in effect at the time of the request (the “Service Order”). No Service
Order shall be binding upon the Parties unless signed by an authorized
representative of Purchaser and Seller. Purchaser agrees to pay for the Added
Backhaul IRU on the applicable Backhaul Closing Date. Upon Purchaser’s payment
of the Added Backhaul IRU Purchase Price, Seller shall grant to Purchaser and
Purchaser shall acquire from Seller an IRU in the Added Backhaul for the IRU
Term (collectively, the “Backhaul IRU”), with effect from the Backhaul Closing
Date until the last day of the IRU Term.

3.                       The following
paragraph shall be added to the Agreement as Section 3.1.1:

3.1.1        Added
Backhaul IRU Purchase Price. Subject to performance by Seller of its
obligations hereunder, Purchaser shall pay to Seller, in consideration for any
Added Backhaul IRU, the sum of money specified in he applicable Service Order
(the “Added Backhaul IRU Purchase Price”),
which shall be paid on the Backhaul Closing Date.

4.                       Section 3.3 of
the Agreement shall not apply to any Added Backhaul IRU.

5.                       The provisions
of Section 4.3.1 of the Agreement shall not apply to any Added Backhaul.

6.                       Except as
specifically amended herein, all terms, conditions and provisions contained in
the Agreement shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the
parties have executed this Amendment as of the dates set forth opposite the
signatures of their respective authorized officers below.

 

	
  TELEGLOBE USA. INC.  

  	
   

  	
  WILLIAMS COMMUNICATIONS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /S/ 
  Stewart Verge

  	
   

  	
  /S/ William L. Cornoy

  
	
  Signature of
  Authorized Representative

  	
   

  	
  Signature of
  Authorized Representative

  
	
   

  	
   

  	
   

  
	
  Stewart Verge

  	
   

  	
  William L. Cornoy

  
	
  Printed Name

  	
   

  	
  Printed Name

  
	
   

  	
   

  	
   

  
	
  Executive Vice President

  	
   

  	
  VP Access Services Network

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  10-25-01

  	
   

  	
  12-17-01

  
	
  Date

  	
   

  	
  DateExhibit 10.13

 

Portions hereof have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment in accordance with Rule 406 of the Securities Act of 1933, as
amended.

 

 

	
  BCE

  	
   

  	
  Master Wholesale Agreement #C-1283

  
	
  NEXXIA

  	
   

  	
  (insert name of customer)

  

 

 

PricingSchedule (L)

Bell Nexxia.Wavelength Select

 

 

Service Description

 

Bell Nexxia.Wavelength Select Service is an unprotected (linear) layer
1 transport service, allowing the user the flexibility to define protection via
higher layer devices, such as routers end ATM switches.  The Basic Service attributes are as follows:

 

Unprotected dedicated connection (concatenated)

***

Point to Point circuits between two locations

 

Service Demarcation

 

The Service shall be provided up to the Service Demarcation Point
(SDP).  This SDP will vary depending on
whether the Customer buys its local access from Bell Nexxia or provides its own
access to Bell Nexxia’s “meet me rooms”. The SDP is the Fiber Patch Panel (FPPA),
or a Fiber Management System (FMS) and may be located at either the Customer’s
premises or in the Nexxia POP.

 

Management

 

The backbone network is fully managed, with 7X24 proactive network
management and actively monitored alarms and timely responses to the alarms.

 

Nexxia.Wavelength Select is a layer 1 service with no actively
monitored devices on the Customer’s premises. 
The maintenance teams rely on Customer reports to indicate a trouble on
the Customer’s network.

 

Help Desk

 

A 7 X 24 Help Desk will be provided to all Nexxia.Wavelength Select
customers with a single point of contact and coordination of issues related to
the service.

 

*** Portions hereof have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment in accordance with Rule 406.

 

1

 

Service Assurance

 

The Nexxia.Wavelength Select Service is designed in an unprotected
architecture, that is, any failure in the Optera LH transport equipment or
related DWDM transport network will result in an outage as protection is not
available. The user has the flexibility to define his own protection via higher
layer devices such as routers, and ATM switches.  Customers can achieve protection by procuring an additional
circuit at additional cost, as this service does not provide protection
switching.

 

The following chart outlines the Service Level
Objectives/Agreements  (SLOs/SLAs) for
the Bell Nexxis.Wavelength Select service:

 

	
   

  	
  Nexxia PoP
  to Nexxia PoP

  	
  All Others

  
	
   

  	
   

  	
   

  
	
  MTTRepair

  	
  MTTR is
  measured from the time the customer report is received by the BCE/Bell Nexxia
  HelpDesk until the service is accepted by the customer as restored.

  
	
  SLA: 12
  hours

  	
  SLO: 12
  hours

  
	
   

  	
   

  	
   

  
	
  Network
  Availability (%)

  	
  The Network
  Availability measurement is equal to the total number of minutes in a
  calendar month during where by network components are available divided by
  the total number of possible minutes available in a calendar month (Service
  Availability Timer) and expressed as a percentage.  Network Availability time is

  
	
  SLA:  99.95%

  	
  SLO:  99.95%

  
	
   

  	
   

  	
   

  
	
  Maintenance

  	
  When
  maintenance occurs, BCE/Bell Nexxia will advise the customer on a best
  efforts basis – 48 hours in advance.

  

 

* The formula for calculating availability or Up Time is as follows:

 

%availability = (TT – TUT) 
x  100%

Where:

TT                                =(total
time in hours during the assessment period, i.e., 1-month or 720 hours)

TUT                       =(Total
Unavailable Time) is the sum of all the Unavailable Time (UT) occurrences (in
hours) during the assessment period TT.

 

Outages attributable to scheduled maintenance are excluded from the
performance objective stated above.

 

Credits shall not be granted if an outage of any ON-Net circuit is due
to (i) and outage or other defect occurring in Customer’s Interconnection
Facilities; or (ii) the result of a Force Majeure.

 

2

 

All MTTR credits shall be credited on the next monthly invoice for the
affected Facility after receipt of Customer’s request for credit.  The total of all MTTR Credits applicable to
or accruing in any given month shall not exceed the amount payable by Customer
to Bell Nexxia for that same month for such facility.  If Customer receives an MTTR Credit for a circuit in a particular
Calendar Month, Customer is not entitled to any other credits described in this
Service Exhibit for that circuit in that Calendar Month.

 

MTTRepair is only applicable on network facilities between Nexxia PoPs
where:

Point of Presence (PoP):  A
physical location where a long distance carrier terminates lines before
connecting to the local exchange carrier, another carrier, or directly to a
customer.

 

Event Management

 

Event Management will detect and isolate fault conditions, on the Bell
Nexxia Network, using pre-configured, automated alarm triggers.

 

A fault ticket is created for all faults detected as a result of Bell
Nexxia’s network monitoring.  Fault
tickets are also created for all faults reported to the Help Desk by designated
customer contacts.  In both cases,
tickets are created as soon as the fault is recognized.  Tickets are updated throughout the life of
the fault resolution process to ensure a proper audit trail.

 

Change Management

 

If the Customer requests any change to the Services provided under this
Service Schedule, including the addition of new sites, an increase in bandwidth
or any other changes, this Service Schedule shall be amended to reflect these
changes and prices.

 

All Customer requests for changes to existing managed network elements,
within the Customer’s network solution, are tracked through all stages of
implementation.  Change tickets are
created for each request so that changes can be properly managed and
implemented by the operations team.

 

Term

 

The Services to be provided by Bell Nexxia to Customer pursuant to this
Schedule shall be provided by Bell Nexxia to Customer *** Notwithstanding any
other term, Bell Nexxia may, in its sole discretion, exercisable at any time,
terminate this Agreement and no longer provide the Services described herein to
Customer on the provision of *** prior written notice to the Customer.

 

*** Portions hereof have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment in accordance with Rule 406.

 

3

 

Fees

 

All Fees to be paid by Customer to Bell Nexxia on account of the
Services to be rendered pursuant to this Schedule shall be pre-paid by Customer
to Bell Nexxia one (1) month in advance for each and every month throughout the
term of this Agreement, provided that the first payment due and owing by
Customer to Bell Nexxia hereunder shall be in an amount equal to the cost of
Services hereunder from May 16, 2002 up to the date of Customer’s execution
hereof plus an additional one (1) month advance payment.  To the extent that Services have already
been activated, Bell Nexxia reserves the right, in its sole discretion to
suspend, de-activate or terminate line Services, or any of them, if Customer
fails to pay in full the advance monthly payment and other charges as and when
due and owing to Bell Nexxia.  In
addition, at any time during the term that Customer has not paid for the
Services one (1) month in advance, Customer shall be in default, and Bell
Nexxia, in its sole discretion, may immediately terminate the Services, or any
part thereof, on one (1) day’s written notice to Customer.

 

***

 

Termination Charges

 

In the event that the Customer terminates this Service or any portion
of the Services provided herein prior to the expiry of the MCP (minimum
contract period), the customer shall forthwith pay to Bell Nexxia in a single
payment, at the time of termination, any outstanding service charges and/or
Construction charges plus termination charges which are equal to 100% of the
remaining committed revenues, which payment an charges are a genuine
pre-estimate of the damages suffered by Bell Nexxia as a result of Customer’s
termination of the Services or any of them and not intended as a penalty or
other punitive charge.

 

By signing below, the Customer indicates that it has read, understands
and agrees with all of the terms and conditions set out or referenced within
this Schedule and the Master Wholesale Agreement.

 

Addresses

 

The following address will be used for notice and billing purposes.

(For those customers whose billing address is in Ontario)

 

 

	
  BCE Nexxia Inc. &

  BCE Nexxia Corporation

  Accounts Receivable Dept.

  100 Wynford Drive

  Floor 3C

  North York

  M3C 1K4

  	
  TO:  Customer

  

  Teleglobe Inc.

  18e étage

  1000 rue De Le Gauchètiere

  Montreal Quebec

  H3B 4X5

  

 

*** Portions hereof have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment in accordance with Rule 406.

 

4

 

	
   

  	
  Teleglobe USA Inc.

  11480 Commarce Park Drive

  Reston, Virginia

  USA

  20191

  

 

The following address will be used for notice and billing purposes.

(For those customers whose billing address is in Quebec)

 

BCE Nexxia Inc. &

BCE Nexxia Corporation

Bureau C-20

700, rue de La Gauchetiere Ouest

Montreal QC

H3B 4L1

 

Terms of Agreement

 

The terms and provisions of this Schedule reflect the entirety of the
agreements made between Customer and Bell Nexxia in connection with the
provision of the Services described herein by Bell Nexxia to Customer, and
replaces all prior agreements, consents and contracts between the parties in
connection with such Services, whether written or verbal, and all such prior
agreements, if any, are hereby terminated and replaced in their entirety with
the terms of this Agreement.

 

Parties

 

The facilities and Services which the Customer requires to be delivered
from Bell Nexxia pursuant to this Schedule, and which Bell Nexxia has agreed to
deliver to Customer pursuant hereto, are located in each of Canada and the
United States.  To the extent that the
facilities or Services to be rendered to Customer are located in Canada, the
facilities and Services will be performed and delivered by BCE Nexxia Inc. a
corporation incorporated under the laws of Canada, to Teleglobe Inc., a
corporation incorporated under the laws of Canada; and to the extent that any
of Services or facilities to be delivered hereunder are located in the United
States, then the Services and facilities will be performed and delivered by BCE
Nexxia Corporation, a corporation incorporated under the laws of the State of
Delaware, and will be delivered to Teleglobe USA Inc., a corporation
incorporated under the laws of the State of Delaware.

 

5

 

Signature of Customer:

 

 

	
  Teleglobe Inc.

  	
   

  	
  Teleglobe USA Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
  Name

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BCE Nexxia Inc., also acting as agent for

  Bell Canada and for BCE Nexxia

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
   

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]