Document:

Staff Special Severance Plan and Summary Plan Description

 Exhibit 10.38 
  
 LOOKSMART, LTD. STAFF SPECIAL 
 SEVERANCE PLAN 
 AND SUMMARY PLAN DESCRIPTION 
  
 Effective October 1, 2003 
  
 I. INTRODUCTION 
  
 LookSmart, Ltd. (“LookSmart” or the “Company”)
establishes this special severance plan, the LookSmart, Ltd. Staff Special Severance Plan (the “Plan”) to assist certain employees of the Company whose employment is affected by a reduction-in-force program implemented on or about November
1, 2003 through April 30, 2004, by providing certain severance benefits. This Plan is an employee welfare benefit plan as defined in Section 3(1) of the Employment Retirement Income Security Act (“ERISA”). It is not a funded plan. Any
benefits under the Plan will be paid from the general assets of the Company if and when such benefits are owed. Employees have no rights to or interest in any specific assets or accounts of the Company, even if amounts are credited to accounts
designated to be used for the payment of severance benefits. 
  
 II. PLAN BENEFITS 
  
 A. General
Eligibility for Plan Benefits 
  
 All regular full-time and
part-time U.S. employees of the Company classified in positions below the Vice President Level and who are employed by the Company as of November 1, 2003, and are notified by the Company on or after that date, but before April 30, 2004, that their
employment is terminated due to a reduction-in-force, except as excluded below, are eligible to participate in this Plan (the “Eligible Employee(s)”). 
  

In order to receive any benefits under the Plan, an Eligible Employee must execute the Voluntary Separation Agreement and General Release
(“Agreement”) that will be provided by the Company. 
  
 An employee will not be an Eligible Employee: 
  
 1. If
such employee is transferred or offered a position with another related company or by a company that acquires all or some of the Company’s stock or assets on or before the employee’s designated termination date and the acquiring company
offers the employee an annual salary at least equal to eighty percent (80%) of the employee’s then base salary and relocation, if any, is within fifty (50) miles of the Company’s San Francisco offices; 
  
 2. If such employee is, after notice of termination is provided, terminated
by the Company for misconduct as defined in “Your Employee Handbook for U.S. Employees”; or 

 3. If such employee is classified at the Vice President or above levels, as a project or temporary
employee, or if such individual is classified by the Company as an independent contractor. 
  
 B. Severance Benefits 
  
 The following Severance Benefits are provided under this Plan: 
  

Eligible Employees shall receive Severance Benefits based on length of service, as follows: 
  
 Employees below Director Level 
  

	 	a.	Up to twelve (12) months of service—four (1) weeks’ Salary; 

  

	 	b.	More than twelve (12) up to twenty-four (24) months of service—six (6) weeks’ Salary; 

  

	 	c.	More than twenty-four (24) months up to thirty-six (36) months—eight (8) weeks’ Salary; 

  

	 	d.	More than thirty-six (36) up to forty-eight (48) months—ten (10) weeks’ Salary; and 

  

	 	e.	More than forty-eight (48) months—twelve (12) weeks’ Salary. 

  
 Director Level 
  

	 	a.	Twelve (12) weeks’ Salary plus one (1) additional week for each full year of service to a maximum of eighteen (18) weeks’ Salary. 

  
     Payment and Taxation of the Severance Benefits 
  
 Severance Benefits will be paid as a lump sum no later than fourteen (14)
days after receipt, without revocation, of the executed Agreement. Severance Benefits payable under this Plan will be treated as “wages” for the purpose of employment taxes and, as such, subject to withholding and other payroll taxes as
provided by applicable law and all authorized deductions. 
  
 C. Definitions 
  
     1.
Salary 
  
 For the purposes of calculating benefits under
this Plan, a week’s salary in the case of a salaried employee will be calculated based on the employee’s current weekly base salary as of 
  

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 employee’s termination date. For hourly employees, a week’s salary will be hourly base wage rate times number
of hours regularly scheduled to work in the week preceding notice of termination. 
  
 II. THE CLAIMS PROCESS 
  
 A. Submission of Claims 
  
 An
Eligible Employee does not have to submit a claim to receive benefits under the Plan. The Plan Administrator shall make the initial eligibility determination and arrange for the payment of benefits. However, if an employee disagrees with the initial
determination of the Plan Administrator, any claims concerning eligibility, participation, benefits or other aspects of this Plan must be submitted in writing and directed to the Plan Administrator. Except as provided below, from the date a claim is
received, the Plan Administrator has sixty (60) days in which to review the claim to determine whether or not benefits are payable in accordance with the terms and conditions of this Plan. 
  
 B. Additional Time to Process a Claim 
  
 If the Plan Administrator requires additional time to process a claim
because of special circumstances, the Plan Administrator, in its sole discretion, may extend the period sixty (60) additional days. The Plan Administrator must notify the employee in writing of any such extension prior to the expiration of the sixty
(60) day period commencing from the date the Plan Administrator first received written submission of the claim. If additional information is required to make a determination on the claim, the employee will receive a written request specifying the
nature of the information needed and an explanation as to why it is needed. 
  
 C. No Response to Claim 
  
 If
the employee is not notified of the status of the claim within sixty (60) days from the date it is received by the Plan Administrator and the employee has not been notified that an extension is required to review the claim, the employee may request
a review of the claim by following the procedures set out below for denial of a claim. 
  
 D. Denial of Benefits 
  
 If the claim is partially or wholly denied, the Plan Administrator will provide a written denial to the employee no later than sixty (60) days from
receipt of the claim request (or 120 days if an extension is required). The written denial will include specific reasons for the denial, reference to the Plan provisions upon which denial was based, description of any additional material or
information necessary for the employee to perfect the claim and instructions on the Plan’s claim review procedure. 
  

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 E. Claims Review Procedure 
  
 The employee may request in writing to the Plan Administrator a review of
the denied claim within sixty (60) days of receipt of such denial. Such written request must contain an explanation as to why the employee is seeking a review. If such request is not received within sixty (60) days, the employee will be deemed to
have waived his or her right to a review by the Plan Administrator. In preparation for filing such a request for review, the employee or his or her duly authorized representative may review pertinent Plan documents and employment records, and as
part of the written request for review, may submit issues and comments concerning the claim. 
  
 Once the Plan Administrator receives a request for review, a prompt review of the claim will take place. Upon completion of the review, the Plan Administrator will notify the employee in writing of the decision,
referencing Plan provisions that affect the decision. The Plan Administrator has sixty (60) days from receipt of the request for review to notify the employee of its decision unless special circumstances require an extension of time. If an extension
is required, the Plan Administrator must notify the employee in writing of any such extension prior to the expiration of the sixty (60) day period commencing from the date the Plan Administrator received the request for review. 
  
 IV. MISCELLANEOUS PROVISIONS 
  
 A. Changes to and Interpretation of the Plan 
  
 The Company reserves the right to amend or otherwise change all or part of
this Plan at any time, except the Company will not reduce any benefits for employees who have become eligible for benefits prior to such amendment. Any such amendment will be adopted and executed by the Chief Executive Officer of the Company at his
sole and exclusive discretion without prior notice or consideration to any employee with regard to such changes. The Plan will be interpreted by the Plan Administrator and all Plan fiduciaries in accordance with the terms of the Plan and their
intended meanings. However, the Plan Administrator and all Plan fiduciaries will have the discretion to make any findings of fact needed in the administration of the Plan, and will have the discretion to interpret or construe ambiguous, unclear or
implied (but omitted) terms in any fashion they deem to be appropriate in their sole judgment. The validity of any such finding of fact, interpretation, construction or decision will not be given de novo review if challenged in court, by
arbitration or any other forum, and will be upheld unless clearly arbitrary or capricious. To the extent the Plan Administrator or any Plan fiduciary has been granted discretionary authority under the Plan, the Plan Administrator’s or Plan
fiduciary’s prior exercise of such authority will not obligate it to exercise its authority in a like fashion thereafter. If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by
consistent interpretations or other evidence of intent, or as determined by the Plan Administrator in its sole and exclusive judgment, the provision will be considered ambiguous and will be interpreted by the Plan Administrator and all Plan
fiduciaries in a fashion consistent with its intent, as determined by the Plan Administrator in its sole discretion. The Plan Administrator will amend the Plan retroactively to cure any such ambiguity. This Section may not be invoked by any person
to require 
  

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 the Plan to be interpreted in a manner that is inconsistent with its interpretation by the Plan Administrator or by any
Plan fiduciaries. All actions taken and all determinations made in good faith by the Plan Administrator or by the Plan fiduciaries will be final and binding upon all persons claiming any interest in or under the Plan. 
  
 B. The Effective Date of the Plan 
  
 This Plan will be effective on October 1, 2003. 
  
 C. Plan Termination 
  
 The Plan will automatically terminate as of (i) the date all participants
have received the benefits provided for under the terms of the Plan or (ii) as of September 30, 2004, if no benefits have been paid under this Plan as of that date. 
  
 D. Summary Plan Description 
  
 The Plan and the Summary Plan Description are a combined document. 
  

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 V. ERISA REQUIRED INFORMATION 
  
 ADMINISTRATIVE INFORMATION 
 REQUIRED BY ERISA 
  

			
	 Plan Sponsor and Administrator,
 including address and telephone:
	 	 LookSmart, Ltd.
 625 Second Street
 San Francisco, CA 94107-1316
 (415) 348-7000

		
	 Name and address of person
 designated as agent for service of
 process:
	 	 Martin Roberts
 General Counsel
 LookSmart, Ltd.
 625 Second Street
 San Francisco, CA 94107-1316
 (415) 348-7000

		
	Basis on which Plan records are kept:	 	 Plan Year begins October 1, 2003, and ends September 30, 2004

		
	Type of Plan:	 	 Welfare Benefit Severance Plan

		
	Plan Number:	 	 508

		
	E.I.N.:	 	 13-3904355

  
 VI. STATEMENT OF
ERISA RIGHTS 
  
 As a participant in this Plan, you are
entitled to certain rights and protections under ERISA. ERISA provides that all participants will be entitled to: 
  

	 	•	examine, without charge, at the Plan Administrator’s office and other specified locations, all documents governing the Plan and copies of all documents filed by the Plan with
the U.S. Department of Labor; 

  

	 	•	obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The administrator may make a reasonable charge for the copies.

  
 In addition to creating rights for Plan
participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest
of you and other Plan participants and beneficiaries. No one, including your employer or any other person, 
  

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 may fire you or otherwise discriminate against you in any way in order to prevent you from obtaining a Plan benefit or
exercising your rights under ERISA. 
  
 If your claim for a
benefit is denied in whole or in part, you must receive a written explanation for the reason for the denial. You have the right to have the Plan Administrator review and reconsider your claim. See Section III for details. Under ERISA, there are
steps you can take to enforce the above rights. For instance, if you request certain materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator
to provide the materials and pay you up to $110 a day until you receive them, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits that is denied or ignored, in whole or in
part, you may file a suit in a state or federal court. If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should
pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these fees and costs; for example, if it finds your claim is frivolous.

  
 If you have any questions about your Plan, you should contact
the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest Area Office of the Pension and Welfare Benefits Administration (PWBA), Department of Labor, listed in your
telephone directory or the Division of Technical Assistance and Inquiries, PWBA, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. 
  

 7Exhibit 10.7.3

 Exhibit 10.7.3 
  
 ***PORTIONS OF THIS EXHIBIT MARKED BY BRACKETS (“[***]”) OR OTHERWISE INDICATED HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THE OMITTED PORTIONS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.*** 
  
 EXECUTION VERSION 
  
 AMENDMENT NO. 2 TO IRU AGREEMENT 
  
 This AMENDMENT NO. 2 TO IRU AGREEMENT (“Amendment”), dated as of this 25th day of August, 2003, is by and between QWEST COMMUNICATIONS CORPORATION, a Delaware corporation (“Qwest”), and
BUSINESS TELECOM, INC., a North Carolina corporation (“BTI”). Each of Qwest and BTI is sometimes referred to herein as a “Party,” and both of them, together, are sometimes referred to herein as the
“Parties.” 
  
 RECITALS 

 
 WHEREAS, Qwest and BTI are parties to that certain IRU Agreement,
dated as of October 31, 1997, as amended by that certain First Amendment to IRU Agreement, executed by Qwest as of April 19, 1999, and by BTI as of April 18, 1999 (collectively, the “Amended IRU Agreement”), pursuant to which BTI
acquired from Qwest (1) an indefeasible right to use certain fibers identified therein and (2) certain related ancillary services identified therein and in the exhibits attached thereto; and 
  
 WHEREAS, concurrently with the execution and delivery of this
Amendment, Qwest and BTI are entering into and delivering (1) that certain Comprehensive Settlement and Release Agreement (“Settlement Agreement”), and (2) that certain Bi-Lateral Innerduct Lease Agreement (“Innerduct
Agreement”), each dated as of the date hereof; and 
  
 WHEREAS, the execution and delivery of this Amendment by the Parties is a condition precedent to the effectiveness of the Settlement Agreement; and 
  
 WHEREAS, BTI and Qwest desire to enter into this Amendment to amend and modify certain of the terms and conditions of
the Amended IRU Agreement. 
  
 NOW, THEREFORE, in
consideration of the foregoing and other good and valuable consideration provided herein, in the Settlement Agreement and the Innerduct Agreement, the Parties, intending to be bound hereby, agree as follows: 
  
 AGREEMENT 
  
 1. DEFINED TERMS 
  
 1.1 Defined Terms in the Amended IRU Agreement. The defined terms set forth in the Amended IRU Agreement shall apply for all purposes of this
Amendment; provided, however, that the additional defined terms set forth in Section 1.2 below (and elsewhere in this Amendment) shall apply for all purposes of this Amendment. 
  
 CONFIDENTIAL INFORMATION 
 ***CONFIDENTIAL TREATMENT REQUESTED*** 

 1.2 Additional Defined Terms. The parties hereby agree to amend the Glossary of Terms appended to
the Amended IRU Agreement to add the following additional defined terms (after the last defined term therein) to the Glossary of Terms: 
  
 “Amendment No. 2” means that certain Amendment No. 2 to IRU Agreement, dated as of the 25th day of August, 2003, by and between Qwest Communications, Inc., a Delaware corporation, and Business Telecom, Inc., a North Carolina corporation. 

 
 “Article 25” has the meaning given to it in Amendment No. 2.

  
 “Effective Date of Amendment No. 2” means August 25,
2003. 
  
 “New Section 8.04” has the meaning given to it
in Amendment No. 2. 
  
 “New Section 9(a)” has the
meaning given to it in Amendment No. 2. 
  
 “Old Section
8.04” has the meaning given to it in Amendment No. 2. 
  
 “Old Section 9(a)” has the meaning given to it in Amendment No. 2. 
  
 2. EFFECT OF THIS AMENDMENT 
  
 2.1 All of the
changes, revisions, modifications, alterations and amendments to the Amended IRU Agreement set forth in this Amendment shall be effective from and after the Effective Date of Amendment No. 2. From and after the Effective Date of Amendment No. 2, all
references in the Amended IRU Agreement to “the IRU Agreement,” “this Agreement,” “herein,” “hereof” and words of similar import shall refer to the Amended IRU Agreement, as amended by this Amendment.

  
 2.2 Except as expressly changed, revised, modified, altered or
amended hereby, the Agreement shall remain in full force and effect in accordance with its terms and constitutes the legal and binding obligation of the Parties. 
  
 3. SECTION 8.04—FIXED FACILITIES MAINTENANCE FEES 
  
 3.1 The Parties agree that, from and after the Effective Date of Amendment No. 2, Section 8.04 (“Old Section
8.04”) of the Amended IRU Agreement shall be deleted, in its entirety, and replaced with the following new Section 8.04 (“New Section 8.04”): 
  
 “8.04 BTI shall pay Qwest for operations costs in connection with each of the Regeneration Facilities (or alternatively
requested POP or terminal facilities) actually provided pursuant to Section 7.02 a fixed rate of $[***] per square foot per year per Regeneration Facility (or POP or terminal facility, as the case may be), subject to the CPI Adjustment
described in the immediately following paragraph (the “Monthly Recurring Charge”). In addition to the Monthly 

  

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 CONFIDENTIAL INFORMATION 
 ***CONFIDENTIAL TREATMENT REQUESTED*** 

 
Recurring Charges assessed under this Section 8.04, BTI shall timely pay all amounts owed to Qwest under all other applicable provisions of this Agreement
(as amended from time to time), and nothing contained in this Section 8.04 shall release BTI from its obligations to pay Qwest any such amounts owed to Qwest under this Agreement (as amended from time to time). Qwest shall submit invoices to BTI
quarterly in advance within thirty (30) days of the beginning of each calendar quarter remaining in the term hereof (and all extensions thereof) for the Monthly Recurring Charges to be paid by BTI for such quarter (“Quarterly Invoices”).
All amounts shown on each Quarterly Invoice with respect to each Segment shall be due and payable within forty-five (45) days after receipt of such Quarterly Invoice. 
  
 The Monthly Recurring Charge may be adjusted annually, in Qwest’s sole discretion, beginning with the first full
calendar quarter commencing after the first anniversary of the Effective Date of Amendment No. 2, for increases in the United States Bureau of Labor Statistics, CPI-U All Services Index (unadjusted), as originally published. Said adjustment shall be
hereinafter referred to as the “CPI Adjustment”. Such Monthly Recurring Charge, as adjusted by the CPI Adjustment, shall be equal to the product of the fee specified herein multiplied by the fraction (i) whose numerator is the CPI-U All
Services for March of the previous calendar year for which the adjustment to the fee is being made, and (ii) whose denominator is the CPI-U All Services for March of the preceding year. The Monthly Recurring Charge, as adjusted by the CPI
Adjustment, shall remain in effect for the succeeding twelve (12) months, at which time a new adjusted Monthly Recurring Charge determined pursuant to this provision shall become effective. Notwithstanding anything contained herein to the contrary,
in no event shall the amount of the Monthly Recurring Charge, as adjusted by the CPI Adjustment, pursuant to this provision (a) be less than the amount of the Monthly Recurring Charge in effect for the immediately preceding year or (b) be more than
the sum of (i) the amount of the Monthly Recurring Charge in effect for the immediately preceding year plus (ii) [***]% of the amount of the Monthly Recurring Charge in effect for the immediately preceding year. The parties agree that the
Index for March 1995 is defined as 151.4. In the event that the Bureau of Labor Statistics (or any successor organization) changes the current base of the CPI-U from 1982-84=100, the calculation of the Monthly Recurring Charge, as adjusted by the
CPI Adjustment, under this provision shall be adjusted to ensure that Qwest receives the same amount as it would have had the base not been changed. In the event the Bureau of Labor Statistics (or any successor organization) no longer publishes the
CPI-U, Qwest may, subject to BTI’s agreement (which shall not be unreasonably withheld), designate the statistical index it deems most appropriate for collocation of adjustments to the Monthly Recurring Charge and, from the date the CPI-U
ceased to be published, such index shall be used to make adjustments in the Monthly Recurring Charge under this provision.” 
  

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 CONFIDENTIAL INFORMATION 
 ***CONFIDENTIAL TREATMENT REQUESTED*** 

 3.2 Old Section 8.04 shall (1) remain in full force and effect for all purposes under the Amended IRU
Agreement for all periods prior to the Effective Date of Amendment No. 2 and (2) be null and void, and cease to be of any force or effect, from and after the Effective Date of Amendment No. 2. New Section 8.04 shall (a) be effective, and in full
force and effect, from and after the Effective Date of Amendment No. 2 and (b) be inapplicable, and of no force or effect, for any purpose under the Amended IRU Agreement for any period prior to the Effective Date of Amendment No. 2. 
  
 4. EXHIBIT G, SECTION 9(a)—ROUTE/SCHEDULED MAINTENANCE 
  
 4.1 The Parties agree that, from and after the Effective Date of Amendment
No. 2, Section 9(a) of Exhibit G (“Old Section 9(a)”) to the Amended IRU Agreement shall be deleted, in its entirety, and replaced with the following new Section 9(a) (“New Section 9(a)”):

  
 “(a) Scheduled Maintenance Fees. The fees payable
for any and all Scheduled Maintenance hereunder shall be determined in accordance with the following provisions. During any time after the Acceptance Date for any Segment but subject to paragraph 10 below, Qwest shall be the Service Provider and
provide Scheduled Maintenance at a cost of $[***] per route mile per year, as adjusted by the CPI-U Adjustment as defined in the immediately following paragraph (the “Qwest Fixed Fee”) and Unscheduled Maintenance as provided in
subparagraph 9(b) below. Qwest shall submit invoices to Service Recipient quarterly in advance within thirty (30) days of the beginning of each calendar quarter remaining in the term hereof (and all extensions thereof) for the Qwest Fixed Fee to be
paid by Service Recipient for such quarter (“Quarterly Invoices”). All amounts shown on each Quarterly Invoice shall be due and payable within forty-five (45) days after receipt of such Quarterly Invoice. 
  
 The Qwest Fixed Fee may be adjusted annually, in Qwest’s sole
discretion, beginning with the first full calendar year commencing after the first anniversary of the Effective Date of Amendment No. 2, for increases in the United States Bureau of Labor Statistics, CPI-U All Services Index (unadjusted), as
originally published. Said adjustment shall be hereinafter referred to as the “CPI Adjustment”. Such Qwest Fixed Fee, as adjusted by the CPI Adjustment, shall be equal to the product of the fee specified herein multiplied by the fraction
(i) whose numerator is the CPI-U All Services for March of the previous calendar year for which the adjustment to the fee is being made, and (ii) whose denominator is the CPI-U All Services for March of the preceding year. The Qwest Fixed Fee, as
adjusted by the CPI Adjustment, shall remain in effect for the succeeding twelve (12) months, at which time a new adjusted Qwest Fixed Fee determined pursuant to this provision shall become effective. Notwithstanding anything contained herein to the
contrary, in no event shall the amount of the Qwest Fixed Fee, as adjusted by the CPI Adjustment, pursuant to this provision (a) be less than the amount of the Qwest Fixed Fee in effect for the immediately preceding year or (b) be more than the sum
of (i) the amount of the Monthly 

  

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 CONFIDENTIAL INFORMATION 
 ***CONFIDENTIAL TREATMENT REQUESTED*** 

 
Recurring Charge in effect for the immediately preceding year plus (ii) [***]% of the amount of the Monthly Recurring Charge in effect for the
immediately preceding year. The parties agree that the Index for March 1995 is defined as 151.4. In the event that the Bureau of Labor Statistics (or any successor organization) changes the current base of the CPI-U from 1982-84=100, the calculation
of the Qwest Fixed Fee, as adjusted by the CPI Adjustment, under this provision shall be adjusted to ensure that Qwest receives the same amount as it would have had the base not been changed. In the event the Bureau of Labor Statistics (or any
successor organization) no longer publishes the CPI-U, Qwest may, subject to Service Recipient’s agreement (which shall not be unreasonably withheld), designate the statistical index it deems most appropriate for collocation of adjustments to
the Qwest Fixed Fee and, from the date the CPI-U ceased to be published, such index shall be used to make adjustments in the Qwest Fixed Fee under this provision.” 
  
 4.2 Old Section 9(a) shall (1) remain in full force and effect for all purposes under the Amended IRU Agreement for all
periods prior to the Effective Date of Amendment No. 2 and (2) be null and void, and cease to be of any force or effect, from and after the Effective Date of Amendment No. 2. New Section 9(a) shall (a) be effective, and in full force and effect,
from and after the Effective Date of Amendment No. 2 and (b) be inapplicable, and of no force or effect, for any purpose under the Amended IRU Agreement for any period prior to the Effective Date of Amendment No. 2. 
  
 5. ARTICLE 25—COLLOCATION 
  
 The Parties agree that, from and after the Effective Date of Amendment No.
2, the following new Article 25, in its entirety, shall be inserted after the end of Section 24.06, and made a part of the Amended IRU Agreement (“Article 25”): 
  
 “ARTICLE 25. 
 COLLOCATION 
  
 25.01 Access Rights. Prior to and
as of the Effective Date of Amendment No. 2, Qwest has granted BTI certain rights (the “Access Rights”) to access, install, operate and maintain certain communications equipment of BTI in the telecommunications facilities located at
the addresses identified on Exhibit H hereto (the “Facilities”) and the exclusive use of the equipment space identified on Exhibit H hereto (the “Equipment Space”). 
  
 25.02 Terms of Access Rights. Except as expressly set forth in this
Article 25, the terms and conditions of the Access Rights shall be governed by the IRU Agreement, as amended from time to time. 
  
 (a) With respect to each Facility and Equipment Space, the Access Rights shall expire upon the termination of the IRU Agreement. In no
event shall 

  

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 CONFIDENTIAL INFORMATION 
 ***CONFIDENTIAL TREATMENT REQUESTED*** 

 
the Access Rights be construed to extend beyond the term of any underlying lease or other superior interest in the any Facility or Equipment Space; provided,
however, Qwest agrees to use its best efforts to (i) maintain the Access Rights for the Term of this IRU Agreement for all Facilities and Equipment Spaces obtained by BTI in connection with this IRU Agreement or (ii) provide equivalent Facilities or
Equipment Spaces to BTI at no additional cost to BTI for the Term of this IRU Agreement. Notwithstanding the foregoing, if a party other than Qwest with legal authority to do so requires a Facility or Equipment Space to be relocated and preventing
such relocation is beyond the reasonable control of Qwest, any such relocation shall be governed by Section 25.03(b), below. 
  
 25.03 Relocation; Condemnation. 
  
 (a) Discretionary Relocation of any Facility or Equipment Space. Subject to the terms of this Section 25.03, Qwest may, without
liability to BTI, relocate all or any portion of any Facility or Equipment Space, in its sole and absolute discretion (a “Discretionary Relocation”). Prior to any Discretionary Relocation, Qwest will use commercially reasonable
efforts to notify BTI at least 90 calendar days in advance, but in no event not less than 60 calendar days in advance, of any Discretionary Relocation (a “Discretionary Relocation Notice”). Qwest shall be entitled to proceed with
such Discretionary Relocation, which may include relocating all or any portion of BTI’s Facility and/or Equipment Space, without the consent of BTI. Following BTI’s receipt of a Discretionary Relocation Notice, BTI shall cooperate fully
with Qwest in relocating all of BTI’s equipment and other property affected by such Discretionary Relocation. In the event of a Discretionary Relocation, all of BTI’s reasonable direct out-of-pocket expenses (“Reimbursed
Expenses”) shall be reimbursed by Qwest within ten (10) days after receiving an invoice from BTI detailing such Reimbursed Expenses. BTI may, in its sole discretion, request that Qwest credit BTI’s account(s) with Qwest for the amount
of the Reimbursed Expenses in lieu of Qwest paying BTI in cash for the amount of such Reimbursed Expenses. 
  
 (b) Mandatory Relocation of any Facility or Equipment Space. Notwithstanding anything contained herein to the contrary, in the
event Qwest is required by a third party, with legal authority to so require (including but not limited to any landlord, property owner or regulatory agency), to relocate all or any portion of any Facility or Equipment Space (a “Mandatory
Relocation”), Qwest shall use commercially reasonable efforts to provide notice of such Mandatory Relocation to BTI. Qwest shall be entitled to proceed with such Mandatory Relocation, which may include relocating all or any portion of
BTI’s Facility and/or Equipment Space, without the consent of BTI. In the event of a Mandatory Relocation, (1) BTI shall cooperate fully with Qwest in relocating all of BTI’s equipment and other property affected by such relocation and (2)
BTI shall bear all of its own costs and expenses associated with such Mandatory Relocation, and Qwest may bill BTI for its pro rata share of costs and expenses 

  

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 CONFIDENTIAL INFORMATION 
 ***CONFIDENTIAL TREATMENT REQUESTED*** 

 
incurred by Qwest in connection with such Mandatory Relocation. Notwithstanding the foregoing, if the reason for the relocation of all or any portion of a
Facility or Equipment Space is the fault of or could have been reasonably prevented by Qwest, then Qwest shall be liable for all costs incurred by Qwest in connection with such relocation, and Qwest shall reimburse BTI for all Reimbursed Expenses
incurred by BTI in connection with such relocation. All of BTI’s Reimbursed Expenses shall be reimbursed by Qwest within ten (10) days after receiving an invoice from BTI detailing such Reimbursed Expenses. BTI may, in its sole discretion,
request that Qwest credit BTI’s account(s) with Qwest for the amount of the Reimbursed Expenses in lieu of Qwest paying BTI in cash for the amount of such Reimbursed Expenses. 
  
 (c) In the event of any material damage, destruction or condemnation of any Facility or Equipment Space, or
in the event of a termination of an underlying ground right or facilities lease or right of way agreement, either party, without additional liability to the other party, may terminate the Access Rights with respect to such Facility or Equipment
Space, effective as of such event, by written notice within thirty (30) days of such event, unless such Facility or Equipment Space has been relocated pursuant to the terms hereof; provided, however, that if (i) the damage, destruction or
condemnation of any Facility or Equipment Space or (ii) the loss or termination of an underlying ground right or facilities lease or right of way agreement is caused by or could have reasonably been prevented by a party, such party is not entitled
to terminate the Access Rights. If a portion of the Access Rights is terminated pursuant to this Section 25.03(c), such termination shall not affect the Access Rights with respect to Facilities or Equipment Space not affected under this Section
25.03(c). 
  
 25.04 Shared Access For Qwest POPs.

  
 (a) Access to any Facility shall be as
permitted by the owner of the Facility (or party holding a legal interest to such Facility superior to Qwest’s). Qwest shall provide BTI with a written statement of applicable access policies upon BTI’s request. In addition to following
any policies and procedures required by the owner (or party holding a legal interest to such Facility superior to Qwest’s) of a Facility, BTI’s representative must be accompanied by a Qwest representative when accessing any Facility unless
BTI has caged space in the Facility with its own separate entrance. All reasonable pass-through expenses and costs imposed on Qwest by a Facility owner (or party holding a legal interest superior to Qwest’s) in a Facility that are reasonably
related to BTI’s use of or access to such Facility shall be paid by BTI to Qwest within ten (10) business days after receiving an invoice from Qwest for such expenses and costs. 
  
 (b) BTI shall pay Qwest the following hourly charges for such access to any Facility, for each Qwest
representative, for each hour or any portion thereof: 
  

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	 	(1)	on business days, between the hours of 8:00 a.m. (local time) and 5:00 p.m. (local time), [***] dollars ($[***]); 

  

	 	(2)	on business days, between the hours of 5:00 p.m. (local time) and 8:00 a.m. (local time), and at any time on Saturdays, [***] dollars ($[***]); and 

  

	 	(3)	on Sundays and legal holidays, [***] dollars ($[***]). 

  
 BTI shall pay Qwest for all of Qwest’s reasonable travel time, at the rates described in this Section 25.04(b). 
  
 (c) All individuals entering any Facility at the direction of
BTI shall at all times display identification acceptable to Qwest and shall display it upon request to any representative of Qwest and/or the applicable Facility owner (or party holding a legal interest superior to Qwest’s). 
  
 (d) BTI shall coordinate the scheduling of all access to any
Facility through any number or contact person provided by the owner (or party holding a legal interest superior to Qwest’s) of such Facility, and if necessary, through Qwest’s Access Control Center. 
  
 (e) All employees and contractors of BTI who will enter upon
any railroad right-of-way without a Qwest escort must successfully complete (in the sole discretion of Qwest) a railroad safety training for the applicable railroad, at BTI’s sole expense. 
  
 25.05 Installation and Alterations. 
  
 (a) BTI shall notify Qwest before commencing any
installation, interconnection, addition or alteration within or about any Facility, and prior to undertaking any installation, upgrade or modification to BTI’s equipment. Without the prior approval of Qwest (a “Qwest
Approval”), BTI shall not: 
  

	 	(1)	undertake any installation, interconnection, addition or alteration within or about any Facility; or 

  

	 	(2)	undertake any activity that, to the reasonable knowledge of BTI, would in any way, result in an increased cost to Qwest, or that might affect the use of any Facility or other
equipment by Qwest or any other user of such Facility. 

  
 Whenever Qwest’s approval of work is required, BTI shall deliver to Qwest a written request specifying and stating: 
  

	 	(v)	the names and addresses of each proposed contractor and subcontractor; 

  
  

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	 	(w)	a summary of the qualifications and experience of each contractor and subcontractor; 

  

	 	(x)	a description of the services to be performed; 

  

	 	(y)	the planned dates and times of such activities; and 

  

	 	(z)	that BTI has provided each contractor and subcontractor with a copy of Qwest’s and/or the Facility’s owner’s (or other holder of a legal interest superior to
Qwest’s) policies and procedures, as applicable, and that such contractor or subcontractor has agreed to comply with all such policies and procedures. 

  
 Qwest shall have the right to reasonably disapprove or require the removal of any contractor or
subcontractor selected for work at any Facility. All Qwest Approvals shall be valid only if signed by Qwest’s Vice President of Operations. If an approval from any owner or holder of a legal interest in a Facility superior to Qwest’s is
required with respect to any contractor or subcontractor, then Qwest shall also submit the written request to such other party for its approval, and BTI’s use of contractors and subcontractors shall be subject to such other party’s
approval, as set forth in the underlying lease or other agreement. 
  
 (b) All maintenance, installation, interconnection, addition, upgrade, modification or other alteration within any Facility shall comply with all manufacturers’ specifications and shall meet all industry quality
assurance standards (e.g., NEBS, IEEE, Bellcore/Telcordia, etc.) as reasonably supplemented by Qwest. 
  
 (c) BTI shall pay or cause to be paid all costs and charges, either directly to the applicable service/goods providers, or to Qwest prior
to the commencement of any Facility Work (as defined below), as the case may be: 
  

	 	(1)	for work done by BTI or caused to be done by BTI on or about any Facility or Equipment Space (“Facility Work”); 

  

	 	(2)	for all materials furnished for or in connection with Facility Work; 

  

	 	(3)	for alterations or additions to a Facility that are requested by BTI; 

  

	 	(4)	all other costs or expenses incurred directly by Qwest arising out of or related to Facility Work. 

  
 (d) BTI shall indemnify Qwest against and hold Qwest harmless and the Facilities free and clear of and from
all mechanics’ liens and claims of liens, and all other liabilities, liens, claims and demands on account of any Facility Work, and materials and work related thereto. If any such lien is filed at any time against any Facility, or any part
thereof, BTI shall cause such lien to be discharged of record within ten (10) days after the filing thereof, except that if 

  

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BTI desires to contest such lien it will furnish to Qwest, within such ten (10) day period, security reasonably satisfactory to Qwest of at least [***]
percent ([***]%) of the amount of the claim, plus estimated costs and interest. If a final judgment establishing the validity or existence of a lien for any amount is entered, BTI shall pay and satisfy the same without delay. If BTI fails to pay any
charge for which a mechanics’ lien has been filed, and has not given Qwest security as described above, Qwest may, at its option, pay such charge and related costs and interest, and the amount so paid, together with all reasonable
attorneys’ fees incurred in connection with such lien and the removal of such lien, will be immediately due from BTI to Qwest. Nothing contained herein shall be deemed to constitute a consent or agreement of Qwest to subject any Facility to
liability under any mechanics or other lien law. If BTI receives notice that a lien has been or is about to be filed against any Facility, or that any action affecting title to any Facility has been commenced on account of work done by or on behalf
of, or materials furnished to or for BTI, BTI shall immediately give Qwest notice of such occurrence. At least fifteen (15) days before commencement of any Facility Work, BTI will give Qwest notice of the proposed Facility Work and the names and
addresses of the persons supplying labor and materials for the proposed Facility Work. Qwest shall have the right to post notices of non-responsibility or similar notices at Facilities and Equipment Space, in its sole discretion. 
  
 25.06 Cross-Connection Services. Subject to availability, Qwest will,
at its sole discretion, provide certain cross-connection facilities in conjunction with the collocation services provided hereunder. The following terms and conditions shall apply to such cross-connection facilities. 
  
 (a) BTI will submit to Qwest a written application and order
form for cross-connect facilities, the form of which shall be provided by Qwest to BTI upon request. Within fifteen (15) days following Qwest’s receipt of such application for cross-connect, Qwest will provide to BTI written notification of its
acceptance or denial of the cross-connect order. If Qwest, in its sole and absolute discretion, determines to accept BTI’s application for cross-connection facilities, Qwest will provide BTI with written notice of any non-recurring or monthly
recurring charges associated with the cross-connect facility. BTI will sign and return to Qwest the fully executed cross-connect order prior to the commencement of any work by Qwest. 
  
 (b) Upon receipt of the fully executed cross-connect order, Qwest will, in a timely manner, construct and
install the cross-connect facility. Qwest will maintain the cable facility or facilities (each a “Cross-Connect Facility”), and BTI will keep such Cross-Connect Facility and any Qwest-provided equipment free and clear of any and all
liens, security interests, and encumbrances. Any cross-connection will be performed according to the then-existing industry standards. 
  
  

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 (c) Qwest retains the right to reject or modify the pricing on any accepted order
submitted by BTI hereunder upon notice to BTI and consent prior to order acceptance by Qwest. 
  
 (d) Qwest shall at all times retain ownership of the Cross-Connect Facilities. 
  
 (e) The term of the Cross-Connect Facilities hereunder shall
be coterminous with the terms of this IRU Agreement; provided, however, that Qwest shall have the right to terminate the term of any individual Cross-Connect Facility not then currently in use by BTI, without liability of any kind, upon thirty (30)
days written notice. Notwithstanding anything contained herein to the contrary, the minimum term for a Cross-Connect Facility provided to BTI hereunder shall be three (3) consecutive months, unless otherwise agreed to by Qwest in writing. BTI shall
provide written notification to Qwest of its intent to terminate any Cross-Connect Facility hereunder not less than ten (10) calendar days prior to the desired termination date. Termination by BTI shall not result in any liability to BTI if the
effective date of such termination is after the initial three (3) month period. 
  
 25.07 New Facilities and New Equipment Space. In the event BTI desires to add any Qwest facility (a “New Facility”) or equipment space (“New Equipment Space”) not identified on
Exhibit H hereto, the parties hereby agree to negotiate in good faith to enter into a Collocation Agreement, in substantially the form used by Qwest at such time, which Collocation Agreement will contain, among other things, the following
terms, pricing and conditions for such New Facilities and/or New Equipment Space: 
  
 (a) BTI shall pay to Qwest, as a license fee for the license as it relates to any New Facilities and/or New Equipment Space, (1) recurring
charges in the amount of $[***] per rack, which shall be paid by BTI to Qwest every month during the term of the Collocation Agreement, (2) a one-time non-recurring charge of $[***] per rack and (3) any additional amounts payable in accordance with
the terms of the Collocation Agreement. 
  
 (b)
Qwest shall provide to BTI [***] amps per racks, and shall offer BTI additional amps in increments of 10 amps, at a price of $[***] per amp. 
  
 (c) For all New Facilities and New Equipment Space, the Collocation Agreement shall supercede and replace all operative provisions of the
IRU Agreement that relate to Equipment Space and Facilities, and all other matters governed by such Collocation Agreement. The parties agree that in the event of an inconsistency between the IRU Agreement and the Collocation Agreement, the terms of
the Collocation Agreement shall govern. 
  
  

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 25.08 To the extent of any inconsistency between any provision of this Article 25 and any the provision
of any other Article or Section of the IRU Agreement (or any exhibit hereto), the terms of this Article 25 shall govern. 
  
 6. RATIFICATION 
  
 6.1 Except as expressly amended by this Amendment, the Amended IRU Agreement is hereby ratified and affirmed in all particulars and shall remain in full
force and effect as provided therein. The Amended IRU Agreement shall be interpreted and construed with this Amendment as one and the same instrument. 
  
 7. REPRESENTATIONS AND WARRANTIES 
  
 7.1 Each Party hereto represents and warrants that it has the full right and authority to execute, deliver and perform its obligations under this
Amendment and each of the other documents referenced herein to which it is a party, that the individual executing this Amendment and each of the documents referenced herein to which it is a party, on behalf of such Party, is authorized to do so on
behalf of such Party and that when each such document is executed and delivered by such individual on behalf of such Party, each document shall be a valid, legal and fully binding obligation on such Party, enforceable against such Party in
accordance with its terms, subject to bankruptcy, insolvency, creditors’ rights and general equitable principles. 
  
 7.2 Each Party hereto represents and warrants that the execution, delivery and performance of its obligations under this Amendment and each of the other
documents referenced herein does not and will not conflict with, violate, or result in a breach of any terms, conditions, or provisions of any law, regulation, order, writ, regulation, decree, or award of any court or governmental entity with
jurisdiction or any contract or agreement to which such Party is a party and that such Party has secured all of the necessary consents and approvals of third parties, if any, necessary for such Party to perform its obligations hereunder. 

 
 8. COUNTERPARTS 
  
 8.1 This Amendment may be executed in one or more counterparts, each of which when so executed and delivered shall be an
original, but all of which taken together shall constitute one and the same instrument. This Amendment may be executed by facsimile, and any such facsimile signatures shall be deemed original counterparts. 
  
 9. MISCELLANEOUS 
  
 9.1 The Amended IRU Agreement, as amended by this Amendment, constitutes the complete agreement of the Parties concerning
the subject matter hereof, and supersedes any prior written or verbal statements, representations, letters or agreements concerning the subject matter hereof. 
  

 

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 9.2 In the event of any inconsistencies between the terms of this Amendment and the terms of the Amended
IRU Agreement, the terms of this Amendment shall control. 
  
 9.3
This Amendment shall be effective as of the Effective Date of Amendment No. 2, and shall be deemed to be incorporated by reference into the Amended IRU Agreement, effective as of the Effective Date of Amendment No. 2. 
  
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 In confirmation of their consent and agreement to the terms and conditions contained in this Amendment
and intending to be legally bound hereby, authorized representatives of the Parties have executed this Amendment as of the dates set forth below. 
  
 QWEST COMMUNICATIONS CORPORATION 
  

			
	By:	 	 /s/TERESA TAYLOR

	 Name:
	 	 Teresa Taylor

	 Title:
	 	 Executive Vice President, Wholesale Markets

	 Date:
	 	 8/27/03

	 	 	

  
                 BUSINESS TELECOM, INC. 
  

			
	By:	 	 /s/JOHN W. BRAUKMAN, III

	 Name:
	 	 John W. Braukman, III

	 Title:
	 	 Chief Financial Officer

	 Date:
	 	 8/25/03

	 	 	

  

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