Document:

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[LETTERHEAD]

September 9, 1999

ESSENTIAL.COM
John Duffy
3 Burlington Woods Dr.
4th Flr.
Burlington, MA 01803

John,

Enclosed you will find a copy of the ESSENTIAL.COM resale signature
ready agreement for the state of Texas. Please review the agreement and
let me know if you have any questions. If you are ready to sign the
agreement, sign in the designated places and return the entire
agreement to my office.

Once we receive the signed copy, the President-Industry Markets of
Southwestern Bell will sign it and a copy will be forwarded to you.
Southwestern Bell will file the agreement with the Texas Public
Utilities Commission. If you have any questions in the meantime, please
call me at 214 464-8557 or you can E-mail me at ac9085@txmail.sbc.com.

Sincerely,

/s/ Alex Cedillo
-----------------------------
Alexander (Alex) Cedillo
Account Manager-LPAT
Southwestern Bell

enclosure

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                                                                   PAGE 1 OF 3

                            RESALE AGREEMENT BETWEEN
                       SOUTHWESTERN BELL TELEPHONE COMPANY
                                AND essential.com
<TABLE>
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                                TABLE OF CONTENTS

<S>     <C>                                                                  <C>
I.      DESCRIPTION AND CHARGES FOR SERVICES ..................................1

II.     TERMS AND CONDITIONS FOR RESALE OF SERVICES ...........................3
        A. PERMITTED USE OF RESOLD SERVICES BY CLEC AND ITS END USERS .........3
        B. USE OF SWBT TRADEMARKS .............................................5
        C. NETWORK AND SERVICE ORDER CONDITIONS ...............................5
        D. CUSTOMER SPECIFIC PRICING ..........................................6

III.    ADDITIONAL SERVICES ...................................................7
        A. 911/E911 ...........................................................7
        B. DIALING PARITY .....................................................7
        C. WHITE PAGE DIRECTORIES: LISTINGS,
           DISTRIBUTION AND INFORMATION PAGE ..................................8
        D. DIRECTORY ASSISTANCE (DA) ..........................................9
        E. OPERATOR SERVICES (OS) ............................................10
        F. PAYPHONE SERVICES .................................................10

IV.     RESPONSIBILITIES OF SWBT .............................................10

V.      ADDITIONAL RESPONSIBILITIES OF THE PARTIES ...........................12
        A. COOPERATION ON FRAUD ..............................................12
        B. FILING THE AGREEMENT...............................................12

VI.     CHANGES IN SUBSCRIBER CARRIER SELECTIONS .............................13

VII.    ADDITIONAL RESPONSIBILITIES OF CLEC...................................14
        A. PAYMENT OF RATES AND CHARGES ......................................14
        B. INTERFACES WITH SWBT ..............................................18
        C. REPAIR CONTACT ARRANGEMENTS .......................................19
        D. CLEC OPERATING COMPANY NUMBER (OCN) ...............................19
        E. SPECIAL SERVICE ARRANGEMENTS ......................................19
        F. DEVELOPMENT OF BRANDING AND CUSTOMIZED ROUTING ....................19

VIII.   NONEXCLUSIVITY .......................................................21

IX.     SUPPORT SYSTEMS SERVICES .............................................21
        A. SUPPORT SYSTEMS SERVICES ..........................................21
        B. NETWORK MANAGEMENT CONTROLS .......................................23
        C. LAW ENFORCEMENT AND CIVIL PROCESS..................................23
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                                                                   PAGE 2 OF 3

<TABLE>
<S>     <C>                                                                  <C>
X.      CALL TRACE............................................................24

XI.     TAXES ................................................................24

XII.    TERMINATION OF SERVICE TO CLEC. ......................................25

XIII.   FORCE MAJEURE ........................................................27

XIV.    LIMITATION OF LIABILITY ..............................................27

XV.     NONDISCLOSURE ........................................................28

XVI.    PUBLICITY ............................................................29

XVII.   ASSIGNMENT ...........................................................29

XVIII.  DISPUTE RESOLUTION ...................................................30
        A. FINALITY OF DISPUTES ..............................................30
        B. ALTERNATIVE TO LITIGATION .........................................30
        C. COMMENCING DISPUTE RESOLUTION .....................................30
        D. INFORMAL RESOLUTION OF DISPUTES ...................................30
        E. FORMAL DISPUTE RESOLUTION .........................................31
        F. ARBITRATION .......................................................32
        G. BILLING DISPUTES...................................................33
        H. NO CONFLICT .......................................................34

XIX.    VERIFICATION REVIEWS .................................................34

XX.     COMPLIANCE WITH LAWS .................................................35

XXI.    CERTIFICATION REQUIREMENTS............................................36

XXII.   INTENTIONALLY LEFT BLANK .............................................36

XXIII.  NOTIFICATION .......................... ..............................36

XXIV.   NOTICES ................................ .............................36

XXV.    BENEFICIARIES ........................................................37

XXVI.   TERM .................................................................37

XXVII.  EFFECTIVE DATE .......................................................38
</TABLE>
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                                                                   PAGE 3 OF 3

<TABLE>
<S>     <C>                                                                  <C>
XXVIII. WAIVER ...............................................................38

XXIX.   DISCLAIMER OF WARRANTIES .............................................38

XXX.    RELATIONSHIP OF THE PARTIES ..........................................38

XXXI.   INTERVENING LAW AND PRESERVATION OF RIGHTS ...........................38

XXXII.  COMPLETE TERMS .......................................................39
</TABLE>

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                                                                   PAGE 1 OF 40

                            RESALE AGREEMENT BETWEEN
                       SOUTHWESTERN BELL TELEPHONE COMPANY
                                AND ESSENTIAL.COM

     This Agreement is between Southwestern Bell Telephone Company ("SWBT"), a
Missouri corporation, and essential.com. ("CLEC"), a Delaware corporation,
(collectively, "the Parties") entered into this__________ day of__________ 1999.

     WHEREAS, pursuant to the Telecommunications Act of 1996 (the "Act"), the
Parties wish to establish terms for the purchase by CLEC of certain SWBT retail
telecommunications services and certain other services for resale by CLEC to its
local exchange end users in the State of Texas. Therefore, the Parties hereby
agree as follows:

     The geographic SCOPE of this Agreement shall include all exchanges served
by SWBT in the state of Texas. This Agreement shall exclusively govern CLEC's
purchases of the services which are the subject of this Agreement, including any
Appendices, Exhibits, Attachments and/or Amendments hereto, in such state. By
entering this Agreement CLEC agrees that it is purchasing services pursuant to
this Agreement and not General Exchange Tariff (HB2128) and shall continue to
abide by all terms of this Agreement unless terminated as provided herein.

I.   DESCRIPTION AND CHARGES FOR SERVICES

     A.   Attached hereto as Exhibit A is a list of Telecommunications Services
          currently available for resale at the wholesale discount rate set by
          the Commission through arbitration, i.e., 21.6% off the retail rate
          for each service. Except as otherwise expressed herein and consistent
          with SWBT's obligation under Sections 251(c)(4)(A) of the Act, CLEC
          may resell other Telecommunications Services offered by SWBT and not
          listed in Exhibit A. Exhibit B contains a list of other services
          available for resale at the discount included in the exhibit.

     B.   SWBT shall make available for resale by CLEC SWBT's Bill Plus or
          Consolidated Billing service at a discount of five percent (5%) off
          SWBT's tariffed rate for each service (or in the event these services
          are not tariffed, at the rate SWBT charges its subscribers).

     C.   SWBT shall make available for resale by CLEC the following SWBT
          services at SWBT's tariffed rate for each service (or in the event a
          service is not tariffed, at the rate SWBT charges its subscribers,
          except as otherwise provided herein):

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                                                                   PAGE 2 OF 40

          - Construction Charges
          - Connections with Terminal Equipment and Communication System
          - Distance Learning
          - Maintenance of Service Charges
          - Suspension Services
          - Telecommunications Service Priority Systems
          - Access Services
          - Cellular Mobile Telephone Interconnection Services
          - Exchange Connection Services
          - Shared Tenant Service
          - 976 Information Delivery Service

     D.   The Distance Learning discount is in addition to the discounts for the
          underlying services provided. Suspension of Service discounts apply to
          the discounted rate for the underlying service. When CLEC resells
          Shared Tenant Service, CLEC will receive the discount associated with
          the underlying service used in the shared tenant arrangement.

     E.   SWBT shall be under no obligation to offer the following for resale:

          - BDS/LAN
          - Customer Provided Equipment
          - Customized Billing Reports
          - InLine -Registered Trademark- Products
          - Inside Wiring
          - Semi-Public Telephone Booths and Enclosures
          - 911 Universal Emergency Number Equipment

     F.   Grandfathered services are also available for resale at the applicable
          wholesale discount to the same customers to which SWBT offers the
          service.

     G.   Telecommunications Services will be resold to CLEC on terms and
          conditions that are reasonable and nondiscriminatory.

     H.   CLEC may offer to resell Customer Initiated Suspension and Restoral
          Service to their end users. SWBT will offer to CLEC Company Initiated
          Suspension service for their own purposes at the SWBT retail tariffed
          rate. Should CLEC choose to suspend their end user through Company
          Initiated Suspension Service, this suspension period shall not exceed
          fifteen (15) calendar days. If CLEC issues a disconnect on their end
          user account within the fifteen (15) day period, appropriate services
          will not be billed for the suspension period. However, should CLEC
          issue a disconnect after the fifteen (15) day suspension period, CLEC
          will be

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                                                                   PAGE 3 OF 40

          responsible for all appropriate charges on the account back to the
          suspension date, Should CLEC restore their end user, restoral charges
          at the SWBT retail tariffed rate will apply and CLEC will be billed
          for the appropriate service from the time of suspension.

II.  TERMS AND CONDITIONS FOR RESALE OF SERVICES

     The following terms and conditions are applicable to all services purchased
     under this Agreement.

     A.   PERMITTED USE OF RESOLD SERVICES BY CLEC AND ITS END USERS

          1.   For services included in this Agreement which are offered through
               tariffs by SWBT to its end users, the rules and regulations
               associated with the applicable State General Exchange Tariff,
               Local Exchange Service Tariff, and the other tariffs for the
               resold service (such tariffs collectively referred to herein as
               "corresponding tariffs"), apply except for applicable resale
               restrictions and except as otherwise provided herein.

          2.   CLEC shall only sell Plexar -R- services to a single end user or
               multiple users on continuous properties.

          3.   Except where otherwise explicitly provided in the corresponding
               tariffs, or except where SWBT permits such sharing by its own end
               users, CLEC shall not permit the sharing of a service by multiple
               end users or the aggregation of traffic from multiple end users
               onto a single service; however, based upon the Commission's
               Arbitration Order, SWBT will not retain its limitation on
               aggregation for purposes of the resale of volume discount offers.

          4.   CLEC shall only resell services purchased under this Agreement to
               the same class of end users to whom SWBT sells such services
               (e.g. residence service shall not be resold to business end
               users). CLEC may only resell Lifeline Assistance, Link-Up, and
               other like services to similarly situated customers who are
               eligible for such services. Further, to the extent CLEC resells
               services that require certification on the part of the buyer,
               CLEC will ensure that the buyer has received proper certification
               and complies with all rules and regulations as established by the
               Commission.

          5.   For purposes of this section, "short term promotions" of
               Telecommunications services are limited in length to no more than
               ninety (90) days for the length of the period during which the

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                                                                   PAGE 4 OF 40

               promotion may be offered to the public, and to no more than
               ninety (90) days for the period during which any and all benefits
               from the promotion must be realized or captured by the
               subscriber, and that the subscriber must begin receiving the
               benefit during the offering period.

               a.   Based upon the Arbitration Order of the Commission, CLEC may
                    obtain the short term promotional service from SWBT for
                    resale but CLEC is not entitled to receive a discount from
                    SWBT off of the promotional rate.

               b.   Retail rates that do not qualify as a short term promotion,
                    i.e., those in excess of 90 days, are the rates to which the
                    respective wholesale discounts in Section 1 apply while they
                    are in effect.

               c.   Nothing in this Agreement shall require SWBT to provide to
                    CLEC promotional service elements that are not
                    Telecommunications Services such as CPE and Inside Wire
                    Maintenance Plans.

          6.   CLEC shall not use a resold service to avoid the rates, terms and
               conditions of SWBT's corresponding tariffs.

          7.   CLEC shall not use resold local exchange telephone service to
               provide access or interconnection services to itself,
               interexchange carriers (IXCs), wireless carriers, competitive
               access providers (CAPs), or other telecommunications providers.
               Provided however, that CLEC may permit its end users to use
               resold local exchange telephone service to access IXCs, wireless
               carriers, CAPs, or other retail telecommunications providers.

          8.   If CLEC is found to be in violation of a provision of this
               Agreement, SWBT shall notify CLEC of the violation in writing of
               the specific provision being violated. At such time, CLEC shall
               have thirty (30) days to correct the violation and notify SWBT in
               writing that the violation has been corrected. SWBT shall then
               bill CLEC for the charges which should have been collected by
               SWBT or the actual revenues collected by CLEC from its end users
               for the stated violation, whichever is greater. If CLEC disputes
               the violation, it shall notify SWBT in writing within fourteen
               (14) days of receipt of notice from SWBT. Disputes shall be
               resolved as outlined in the Dispute Resolution section of the
               Agreement.

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                                                                   PAGE 5 OF 40

          9.   An End User Common Line (EUCL) charge will continue to apply for
               each local exchange line resold under this agreement. All federal
               rules and regulations associated with EUCL charges, as found in
               Tariff FCC 73, also apply. To the extent ordered by the Texas
               Public Utility Commission, the wholesale discount will apply to
               the EUCL.

          10.  To the extent allowable by law, CLEC shall be responsible for
               Primary Interexchange Carrier (PIC) change charges associated
               with such local exchange line. CLEC shall pay for PIC changes at
               the tariffed rate.

          11.  SWBT is not required to make services available for resale at
               wholesale rates to CLEC for its own use or to CLEC's affiliates,
               subsidiaries, predecessors, successors, assignees or anyone or
               any entity claiming by or through CLEC.

     B.   USE OF SWBT TRADEMARKS

          Except where otherwise required by law, CLEC shall not, without SWBT's
          written authorization, offer the services covered by this Agreement
          using the trademarks, service marks, trade names, brand names, logos,
          insignia, symbols or decorative designs of SWBT or its affiliates. Nor
          shall CLEC state or imply that there is any joint business association
          or similar arrangement with SWBT in the provision of
          telecommunications services to CLECs own end users. CLEC may brand
          services included in this Agreement with its own brand name, but SWBT
          shall not be responsible for providing such branding.

     C.   NETWORK AND SERVICE ORDER CONDITIONS

          1.   SWBT shall provide the services covered by this Agreement subject
               to availability of existing facilities and on a nondiscriminatory
               basis with its other customers. CLEC shall resell the services
               provided herein only in those service areas in which such resale
               services or any feature or capability thereof are offered at
               retail by SWBT as the incumbent local exchange carrier to its end
               users.

          2.   When CLEC converts an end user currently receiving noncomplex
               service from the SWBT network, without any changes to SWBT's
               network, and such order requires manual processing by SWBT
               personnel, CLEC will be charged an interim per order (i.e., per
               billable telephone number) conversion charge of $16.65 in Texas.

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                                                                   PAGE 6 OF 40

               Conversion orders processed and completed electronically will be
               charged $5 per order on an interim basis. Complex orders will be
               charged at an interim rate of $52.55 per order. Custom Services
               conversions (e.g. Plexar Custom) will be handled on a Customer
               Specific Proposal basis.

               When CLEC converts an end user's service and adds or changes are
               made to the network, the respective conversion charge will apply,
               as well as any normal service order charges associated with said
               changes. All non-recurring service connection charges, excluding
               the conversion charge mentioned above, will be charged at a
               discount for those services listed in Exhibits A and B.

          3.   For the purposes of ordering new service under this Agreement,
               each request for new service shall be handled as a separate and
               initial request for service per billable telephone number. The
               additional line rate for Service Order Charges shall apply only
               to those requests for additional residential service at the end
               user's same location where a residential line is currently
               provided on SWBT's network, regardless of the non-facilities
               based Competitive Local Exchange Carrier of record.

          4.   For purposes of this section, CLEC service orders shall be
               handled in the same fashion as SWBT employs for its own end
               users.

     D.   CUSTOMER SPECIFIC PRICING

          CLEC may convert current SWBT end users and SWBT or any reseller of
          SWBT local service may convert current CLEC end users with existing
          term, volume, termination liability or any customer specific pricing
          (all of the aforementioned referred to hereinafter as CSP) contracts
          existing with the current Local Service Provider (LSP) in the State of
          Texas reciprocally with the following responsibilities subject to any
          modifications ultimately approved in Docket 17759 and any appeals
          thereof:

          1.   RESPONSIBILITIES OF CLEC

               CLEC will assume in writing the balance of the terms, including
               volume, term and termination liability existing on a current
               retail or resold SWBT end user at the time of conversion. CLEC
               may resell the CSP initially at the wholesale discount of 5.62%
               for Customer Specific contracts and 8.04% for existing Tariffed
               Volume and term contracts. Correspondingly, CLEC will not charge
               their end user termination liability when an existing CSP

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                                                                   PAGE 7 OF 40

               contract between CLEC end user is converted to SWBT or any other
               LSP reselling SWBT local service.

          2.   RESPONSIBILITIES OF SWBT

               SWBT will not charge the end user termination liability when an
               existing CSP contract is converted to CLEC for resale.
               Correspondingly, SWBT or other LSP will assume in writing the
               balance of the terms, termination liability, volume or customer
               specific pricing contracts that exist when a current CLEC end
               user is converted to SWBT or other reseller of SWBT local
               service.

III. ADDITIONAL SERVICES

     A.   911/E911

          1.   Access to the 911 or E911 service, available to SWBT end users
               in the area(s) served by CLEC, shall be made available to CLEC's
               end users.

          2.   CLEC shall be responsible for collecting and remitting all
               applicable 911 surcharges on a per line basis to the Public
               Safety Answering Point (PSAP).

          3.   When requested by SWBT, CLEC shall provide timely, accurate and
               complete information on each of CLEC's end users as needed for
               the provisioning of 911 service to CLECs end users. Such
               information shall be in a format and a time frame pre-subscribed
               by SWBT for purposes of 911 administration.

     B.   DIALING PARITY

          1.   LOCAL DIALING PARITY

               SWBT agrees that local dialing parity shall be available to CLEC.
               That is, end users of SWBT and end users of CLEC shall have the
               same exchange boundaries, such end users shall be able to dial
               the same number of digits when making a "local" call.

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                                                                   PAGE 8 OF 40

          2.   IntraLATA TOLL DIALING PARITY

               SWBT agrees to make IntraLATA toll dialing parity available in
               accordance with Section 25(1)(b)(3) of the Telecommunications Act
               of 1996.

     C.   WHITE PAGE DIRECTORIES: LISTINGS, DISTRIBUTION AND INFORMATION PAGE

          1.   CLEC's subscribers to basic residential and business service will
               receive a basic listing in SWBT's White Pages directories in the
               same form and under the same conditions as SWBT provides to its
               subscribers.

               a.   Subscriber listing information on resold lines shall remain
                    the property of SWBT. Upon receipt of a request from a third
                    party directory publisher, including Southwestern Bell
                    Yellow Pages, for subscriber listing information, SWBT will
                    provide to that third party directory publisher CLEC
                    subscriber's listing information on an interfiled basis and
                    indistinguishable from SWBT's subscriber listing
                    information.

               b.   Each CLEC subscriber will receive one copy of SWBT's White
                    Pages directory, and a Yellow Pages directory when cobound
                    with the White Pages, in the same manner and at the same
                    time that they are provided to SWBT's subscribers. It is
                    the Parties' expectation that separately bound Southwestern
                    Bell Yellow Pages directories will be delivered in the same
                    manner and at the same time to CLEC's subscribers as to
                    SWBT's subscribers.

               c.   If an CLEC end user already has a current SWBT directory,
                    SWBT shall not be required to deliver a directory to that
                    end user until new directories are published for that end
                    user's location.

               d.   The listings and directories described above are included in
                    the wholesale price CLEC owes SWBT for resold lines and will
                    be provided by SWBT at no additional charges.

               e.   Additional Listing Services (e.g., foreign listings and
                    signature listing) can be purchased by CLEC for its end
                    users on a per listing basis. CLEC shall pay SWBT for all

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                                                                   PAGE 9 OF 40

                    such listings provided to CLECs end users. The discounts
                    applicable to listing services are contained in Exhibit B.

               f.   CLEC hereby releases SWBT from any and all liability for
                    damages due to errors or omissions in CLEC's subscriber
                    listing information as it appears in the White Pages
                    directory, including, but not limited to, special, indirect,
                    consequential, punitive or incidental damages. To the extent
                    CLEC reimburses its end user subscriber any listing charge
                    due to errors or omissions caused directly by SWBT, SWBT
                    shall reimburse CLEC any associated wholesale rate.

          2.   INFORMATION PAGE

               a.   At CLEC's request, SWBT shall include in the "Informational
                    Page section of SWBT's White Pages directory, for those
                    geographical areas in which CLEC provides local exchange
                    services, CLEC's customer contact information regarding
                    emergency services, billing and service information, repair
                    services and other pertinent information similar to that
                    provided by SWBT in its "Informational Pages." Such
                    information shall be included on the same page with other
                    CLEC information.

               b.   At CLEC's option, CLEC shall be provided a single
                    "Informational Page" (one side of one page) in the
                    informational section of the White Pages directory covering
                    a geographic area where an CLEC provides local exchange
                    service. This page shall be no different in style, size,
                    color and format than SWBT "Informational Pages." Sixty (60)
                    days prior to the directory close date, CLEC shall provide
                    to SWBT the "Informational Page" in the form of camera-
                    ready copy. The charges associated with this service vary
                    from geographic market to market, and are charged outside
                    this Agreement

     D.   DIRECTORY ASSISTANCE (DA)

          SWBT shall provide access to DA to CLEC's end users. CLEC shall pay
          the charges associated with the use of such services by CLEC's end
          users. The discounts applicable TO such services are contained in
          Exhibits A and B, which is attached hereto and made a part hereof.

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                                                                   PAGE 10 OF 42

               days prior to the directory close date, CLEC shall provide to
               SWBT the "Informational Page" in the form of camera-ready copy.
               The charges associated with this service vary from geographic
               market to market, and are charged outside this Agreement.

     D.   DIRECTORY ASSISTANCE (DA)

          SWBT shall provide access to the same DA services it makes available
          to its own end users to CLEC's end users. CLEC shall pay the charges
          associated with the use of such services by CLEC's end users. The
          discounts applicable to such services are contained in Exhibits A and
          B, which is attached hereto and made a part hereof.

     E.   OPERATOR SERVICES (OS)

          1.   SWBT shall provide access to Operator Services to CLEC's end
               users. CLEC shall pay the charges associated with the use of such
               services by CLEC's end users. The discounts applicable to such
               services are contained in Exhibits A and B, which are attached
               hereto and incorporated by reference.

          2.   SWBT shall provide Line Status Verification and Busy Line
               Interrupt on calls made on SWBT's network to CLEC end users. CLEC
               shall pay SWBT associated charges when its end users request such
               services, with discounts to apply as listed in Exhibits A and B.

     F.   PAYPHONE SERVICES

          1.   CLEC may enter the business of providing local telecommunications
               services to payphone service providers (PSPs) for PSPs' use in
               providing payphone service. Local telecommunications services
               which PSPs use in providing and which are provided to PSPs by
               CLEC by means of reselling those of SWBT's services offered
               pursuant to the General Exchange Tariff, See. 36 are referred to
               in this Agreement as "Payphone Lines". In its Common Carrier
               Docket No. 96-128, the Federal Communications Commission ("FCC")
               has ordered SWBT to compensate PSP customers of CLECs that resell
               SWBT's services for certain calls originated from pay telephones
               and received by the resale-based carriers. (IMPLEMENTATION OF THE
               PAY TELEPHONE RECLASSIFICATION AND COMPENSATION PROVISIONS OF THE

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                                                                   PAGE 10 OF 40

     E.   OPERATOR SERVICES (OS)

          1.   SWBT shall provide access to Operator Services to CLEC's end
               users. CLEC shall pay the charges associated with the use of such
               services by CLEC's end users. The discounts applicable to such
               services are contained in Exhibits A and B, which are attached
               hereto and incorporated by reference.

          2.   SWBT shall provide Line Status Verification and Busy Line
               Interrupt on calls made on SWBT's network to CLEC end users. CLEC
               shall pay SWBT associated charges when its end users request such
               services, with discounts to apply as listed in Exhibits A and B.

     F.   PAYPHONE SERVICES

          1.   CLEC may enter the business of providing local telecommunications
               services to payphone service providers (PSPs) for PSPs' use in
               providing payphone service Local telecommunications services
               which PSPs use in providing and which are provided to PSPs by
               CLEC by means of reselling those of SWBT's services offered
               pursuant to the General Exchange Tariff, Sec. 36 are referred to
               in this Agreement as "Payphone Lines". In its Common Carrier
               Docket No. 96-128, the Federal Communications Commission ("FCC")
               has ordered SWBT to compensate PSP customers of CLECs that resell
               SWBT's services for certain calls originated from pay telephones
               and received by the resale-based carriers. (IMPLEMENTATION OF THE
               PAY TELEPHONE RECLASSIFICATION AND COMPENSATION PROVISIONS OF THE
               TELECOMMUNICATIONS ACT OF 1996, FCC Docket No. 96-128, Report and
               Order, para. 86 (1996)). This compensation is referred to in
               this Agreement as "Payphone Compensation".

          2.   The Parties desire that SWBT satisfy its obligation to pay
               Payphone Compensation to Payphone Service Providers (PSPs) who
               are customers of CLEC by paying the Payphone Compensation to the
               CLEC who will then forward the Payphone Compensation directly to
               the PSPs.

IV.  RESPONSIBILITIES OF SWBT

     A.   SWBT shall allow CLEC to place service orders and receive phone number
          assignments (for new lines). These service order activities shall be
          accomplished by facsimile or electronic interface when established.

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                                                                   PAGE 11 OF 40

          SWBT, with input from CLEC, shall provide interface specifications for
          electronic access for these functions to CLEC once such electronic
          interfaces become technically feasible and are in place. However, CLEC
          shall be responsible for modifying and connecting any of its systems
          with SWBT provided interfaces when such interfaces become available,
          as outlined in Appendix OSS.

     B.   SWBT shall implement CLEC service orders within the same time
          intervals SWBT uses to implement service orders for similar services
          for its own end users.

     C.   CLEC will have the ability to report trouble for its end users to
          appropriate SWBT trouble reporting centers 24 hours a day, 7 days a
          week. CLEC will be assigned a customer contact center when initial
          service agreements are made. CLEC end users calling SWBT may be
          referred to CLEC at the number provided by CLEC. SWBT shall at all
          times be responsible for the repair and maintenance of its network.
          Nothing herein shall be interpreted to authorize CLEC to repair,
          maintain, or in any way touch SWBT's network facilities, including
          those on end user premises.

          Operational procedures for ordering and trouble reporting are outlined
          in SWBT's CLEC Handbook as amended by SWBT from time to time. Both
          parties agree to abide by the procedures contained therein.

     D.   On no less than sixty (60) days advance written notice, CLEC may
          request SWBT to make certain usage information available to CLEC on a
          daily basis in a standard electronic format. The information will
          consist of usage sensitive charges SWBT will bill to CLEC arising out
          of the use of resold lines. CLEC agrees to pay SWBT three tenths of a
          cent ($.003) per message for this service, plus other charges outlined
          in Appendix OSS.

     E.   Subject to any future order of the FCC which obligates SWBT to pay an
          amount different from the following, SWBT will pay Payphone
          Compensation due with respect to the Payphone lines in the amount of
          $0.284 per call. SWBT will pay to CLEC such Payphone Compensation only
          for (i) intraLATA subscriber 800 calls for which SWBT provides the 800
          service to the subscriber and carries the call and (ii) intraLATA
          calls placed using SWBT's prepaid calling card platform and carried by
          SWBT. SWBT will not pay to CLEC any Payphone Compensation for non sent
          paid calls.

          1.   SWBT will pay to CLEC the Payphone Compensation due to CLEC
               Customer (PSP) within sixty (60) days after the close of the
               calendar quarter in which the call for which Payphone
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                                                                  PAGE 12 OF 40

               Compensation is due is made. However, payment may be made later
               than sixty (60) days if SWBT deems it necessary to investigate a
               call or calls for possible fraud. To the extent to which SWBT's
               first payment includes Payphone Compensation for calls made prior
               to any calendar quarter which ended thirty (30) days after this
               Agreement takes effect and will include as Payphone Compensation
               under this Agreement an amount equal to the Payphone Compensation
               which would have been due to CLEC under this Agreement this
               Agreement taken effect on October 7,1997.

          2.   SWBT will make any payment due to CLEC under this Agreement by
               crediting CLEC's bill for the Payphone Line over which the call
               which give rise to the Payphone Compensation is placed. SWBT will
               not issue a check to CLEC if the credit for Payphone Compensation
               exceeds the balance due to SWBT on the bill.

          3.   Nothing in this Agreement entitles CLEC to receive or obligates
               SWBT to provide any call detail or other call record.

V.   ADDITIONAL RESPONSIBILITIES OF THE PARTIES

     A.   COOPERATION ON FRAUD

          SWBT shall not be liable to CLEC for any fraudulent usage on CLEC's
          end users' accounts.

          The Parties agree to cooperate with one another to investigate, and
          take corrective action in cases of fraud. The Parties' fraud on
          procedures are to be cost effective and implemented so as not to
          unduly burden or harm one Party as compared to the other.

          At a minimum, such cooperation shall include providing to the other
          Party, upon request, information concerning end users who terminate
          services to that Party without paying all outstanding charges, when
          such end user seeks service from the other Party. The Party seeking
          such information is responsible for securing the. end user's
          permission to obtain such information.

     B.   FILING THE AGREEMENT

          Unless otherwise agreed, if the designated Party fails to file the
          jointly signed agreement with the Commission within forty-five (45)
          days of

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                                                                  PAGE 13 OF 40

          both Parties signatures, then the signed agreement is null and no
          longer valid. If the contract becomes null, either Party can initiate
          negotiations to a new agreement.

VI.  CHANGES IN SUBSCRIBER CARRIER SELECTIONS

     A.   Prior to submitting an order under this Agreement, CLEC shall obtain
          end user authorization as required by applicable state or federal laws
          and regulations, and assumes responsibility for applicable charges as
          specified in Section 258 (b) of the Telecommunications Act of 1996.
          SWBT shall abide by the same applicable laws and regulations.

     B.   Only an end user can initiate a challenge to a change in its local
          exchange service provider. If an end user notifies SWBT or CLEC that
          the end user requests local exchange service, the Party receiving such
          request shall be free to immediately provide service to such end
          user, except in those instances where the end user's account is local
          PIC protected. It is the responsibility of the end user to provide
          express authorization to the current provider of record to remove
          local service provider protection before any changes in local exchange
          service provider are processed.

          SWBT shall be free to connect the end user to any Competitive Local
          Exchange Carrier based upon the Competitive Local Exchange Carrier's
          request and Competitive Local Exchange Carrier's assurance that proper
          end user authorization has been obtained. Both parties shall make
          authorization available to the other party upon request and at no
          charge.

     C.   When an end user changes or withdraws authorization, each Party shall
          release customer-specific facilities in accordance with the end user
          customer's direction or the direction of the end user's authorized
          agent. Further, when an end user abandons the premise, SWBT is free
          to reclaim the facilities for use by another customer and is free to
          issue service orders required to reclaim such facilities.

     D.   Neither Party shall be obligated by this Agreement to investigate any
          allegations of unauthorized changes in local exchange service
          (slamming) on behalf of the other Party or a third party. If SWBT, on
          behalf of CLEC, agrees to investigate an alleged incidence of
          slamming, SWBT shall charge CLEC a fifty dollar ($50) investigation
          fee.

     E.   When SWBT receives an order from CLEC for services under this
          Agreement and SWBT is currently providing the same services to another
          Competitive Local Exchange Carrier for the same end user, SWBT shall
          notify THE END USER'S Competitive Local Exchange Carrier of record of

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                                                                  PAGE 14 OF 40

          such order coincident with processing the order should CLEC subscribe
          to the Local Disconnect Report (LDR) as outlined below. It shall then
          be the responsibility of the Competitive Local Exchange Carrier of
          record and CLEC to resolve any issues related to the end user. This
          paragraph shall not apply to new additional lines and services
          purchased by an end user from multiple CLECs or from SWBT.

     F.   On no less than sixty (60) days notice, CLEC may request the Local
          Disconnect Report. SWBT agrees to furnish to CLEC the Billing
          Telephone Number (BTN), Working Telephone Number (WTN), and terminal
          number of all end users who have disconnected CLEC's service. CLEC
          understands and agrees that the CARE interface will be used to provide
          such information and such information will only be available via the
          CARE electronic data transmission. Information will be provided on a
          per-WTN basis to be priced on a per-WTN basis. SWBT will provide CLEC
          no less than thirty (30) days notice prior to any change of the per-
          WTN charge. SWBT grants to CLEC a non-exclusive right to use the
          information provided by SWBT. CLEC will not permit anyone but its
          duly authorized employees or agents to inspect or use this
          information. CLEC agrees to pay SWBT ten cents ($0.10) per WTN and
          any applicable charges for the LDR as outlined in Appendix OSS.

     G.   The CLEC agrees to hold harmless and indemnify SWBT against any and
          all liability and claims, including reasonable attorney's fees, that
          may result from SWBT acting under this Article.

     H.   Nothing herein shall be interpreted to apply to conversion of CLEC end
          users pursuant to Article XII. (TERMINATION OF SERVICE TO CLEC).

VII. ADDITIONAL RESPONSIBILITIES OF CLEC

     A.   PAYMENT OF RATES AND CHARGES

          1.   CLEC is solely responsible for the payment of charges for all
               services furnished under this Agreement including, but not
               limited to, calls originated or accepted at CLEC's location and
               its end users' service locations, with the exception of any
               retail services provided directly by SWBT to the end user which
               SWBT shall be responsible for billing.

               Interexchange carried traffic (e.g., sent-paid, information
               services and alternate operator services messages) received by
               SWBT for billing to resold end-user accounts will be returned as
               unbillable and will not be passed on to CLEC for billing. An
               unbillable code

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                                                                 PAGE 15 OF 40

             returned with those messages to the carrier will indicate that
             the messages originated from a resold account and will not be
             billed by SWBT.

             In accordance with industry standards, IXC PIC selections for
             lines resold to CLEC will not be processed from IXCs or end
             users, but will only be processed if received from CLEC.

        2.   SWBT shall not be responsible for the manner in which the use of
             resold service, or the associated charges are allocated to others
             by CLEC. All applicable rates and charges for such services will
             be billed to and shall be the responsibility of CLEC, with the
             exception of other retail services provided directly to the end
             user by SWBT as described in paragraph 1 above.

        3.   Compensation for all services shall be paid by CLEC regardless of
             CLEC's ability or inability to collect charges from its end user
             for such service.

        4.   If CLEC does not wish to be responsible for collect, third number
             billed, toll and information services (e.g., 900) calls, it must
             order the appropriate blocking for resold lines under this
             Agreement and pay any applicable charges. CLEC acknowledges that
             blocking is not available for certain types of calls, including
             800 numbers. Where CLEC purchases and maintains the appropriate
             toll restriction or blocking for all of its resold end user
             lines, then DA/OS, Branding and Rate/Reference Information would
             not be required, nor available. It is the responsibility of the
             CLEC to order the appropriate toll restriction or blocking on all
             of their resold end user lines.

        5.   CLEC agrees to pay all costs associated with a CLEC name change.

        6.   DEPOSIT REQUIREMENTS

             a.   If CLEC has not established a minimum of twelve (12)
                  consecutive months good credit history with all telephone
                  company affiliates of SBC Communications, Inc., (i.e., SWBT,
                  Pacific Bell and Nevada Bell) with which CLEC is doing or
                  has done business as a local service provider, CLEC shall
                  remit a cash deposit to SWBT prior to the furnishing of
                  service under this Agreement. The deposit required by the
                  previous sentence shall be determined as

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                                                                 PAGE 16 OF 40

                  follows: (a) if immediately prior to the effective date of
                  this Agreement, CLEC was not operating as a local service
                  provider in the state covered by this Agreement, the deposit
                  shall be in the amount of $17,000; or (b) if immediately
                  prior to the effective date of this Agreement, CLEC was
                  operating as a local service provider in the state covered
                  by this Agreement, the deposit shall be in the amount
                  calculated using the method set forth in Paragraph 6.f.,
                  hereof. This cash deposit will be held by SWBT as a
                  guarantee of payment of charges billed to CLEC. If CLEC has
                  established a minimum of twelve (12) consecutive months good
                  credit history with all telephone company affiliates of SBC
                  Communications, Inc., (i.e., SWBT, Pacific Bell and Nevada
                  Bell) with which CLEC is doing or has done business as a
                  local service provider, SWBT shall waive the initial deposit
                  requirement; provided, however, that the terms and
                  conditions set forth in Paragraphs 6.b through 6.i shall
                  continue to apply for the term of this Agreement and any
                  extension(s) hereof. In determining whether CLEC has
                  established a minimum of twelve (12) consecutive months good
                  credit history with each telephone company affiliate of SBC
                  Communications, Inc. with which CLEC is doing or has done
                  business, CLEC's payment record for the most recent twelve
                  (12) months occurring within the two year period immediately
                  prior to the effective date of this Agreement shall be
                  considered.

             b.   Any cash deposit held by SWBT shall be credited to CLEC's
                  account during the month following the expiration of twelve
                  (12) months after the cash deposit was remitted so long as
                  CLEC has not been sent more than one delinquency
                  notification letter during the most recent twelve (12)
                  months. For the purposes of this paragraph 6., interest will
                  be calculated as defined by the applicable state tariff
                  regulating retail deposits and shall be credited to CLEC's
                  account on an annual basis.

             c.   So long as CLEC maintains timely compliance with its payment
                  obligations, SWBT will not increase the deposit amount
                  required. If CLEC fails to maintain timely compliance with
                  its payment obligations, SWBT reserves the right to require
                  additional deposit(s) in accordance with Paragraphs 6.d.
                  through 6.i. of this Agreement.

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                                                                 PAGE 17 OF 40

             d.   If during the first six (6) months of operations under this
                  Agreement, CLEC has been sent one delinquency notification
                  letter by SWBT, the deposit amount shall be re-evaluated
                  based upon CLEC's actual billing totals and shall be
                  increased if the CLEC's actual billing average for a two
                  month period exceeds the deposit amount held.

             e.   Throughout the term of this Agreement and any extension(s)
                  thereof, any time CLEC has been sent two delinquency
                  notification letters by SWBT, the deposit amount shall be
                  re-evaluated based upon CLEC's actual billing totals and
                  shall be increased if the CLEC's actual billing average for
                  a two month period exceeds the deposit amount held.

             f.   Whenever a deposit is re-evaluated as specified in
                  Paragraphs 6.d. and 6.e., above, such deposit shall be
                  calculated in an amount equal to the average billing to CLEC
                  for a two month period plus the amount of any charges which
                  would be applicable to transfer all then existing resold
                  service to SWBT in the event of CLEC's disconnection for
                  non-payment of charges. The most recent three (3) months
                  billing on all. of CLEC's CBAs shall be used to calculate
                  CLEC's monthly average.

             g.   Whenever a deposit is re-evaluated as specified in
                  Paragraphs 6.d. and 6.e., above, CLEC shall remit the
                  additional deposit amount to SWBT within thirty (30)
                  calendar days of receipt of written notification from SWBT
                  requiring such deposit. If CLEC fails to furnish the required
                  deposit within thirty (30) calendar days of receipt of
                  written notice requesting such deposit, SWBT shall begin
                  the process set forth in Section XII of this Agreement. If
                  CLEC continues to fail to furnish the required deposit at
                  the expiration of the fourteen (14) calendar days specified
                  in Section XII A. of this Agreement, then SWBT shall begin
                  the procedure(s) set forth in Section XII D., et seq. of
                  this Agreement.

             h.   This cash deposit requirement may be satisfied in whole or
                  in part with an irrevocable bank letter of credit acceptable
                  to SWBT. No interest shall be paid by SWBT for any portion
                  of the deposit requirement satisfied by an irrevocable bank
                  letter of credit.

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                                                                 PAGE 18 OF 40

               i.   The fact that SWBT holds a cash deposit or irrevocable bank
                    letter of credit does not relieve CLEC from timely
                    compliance with its payment obligations under this Agreement

          7.   CLEC represents and warrants that the only SWBT services which
               CLEC will make available to PSPs as Payphone Lines are the
               services which SWBT offers pursuant to the Local Exchange
               Services Tariff, Section 36.

               Except as provided otherwise in this paragraph, CLEC shall pay
               the entire amount of the Payphone Compensation due with respect
               to a Payphone Line to the PSP who is the CLEC Customer for the
               payphone line. CLEC shall make such payment on or before the last
               business day of the calendar quarter in which the call for which
               the Payphone Compensation is due to the PSP is made. If SWBT pays
               any Payphone Compensation to the CLEC later than sixty (60) days
               after the close of the calendar quarter in which the call for
               which Payphone Compensation is due is made, then CLEC shall pay
               the entire amount of such Payphone Compensation to the PSP who is
               the CLEC's customer for the Payphone Line within ten (10)
               business days after receiving such Payphone Compensation from
               SWBT.

               CLEC shall indemnify, defend and hold harmless SWBT from and
               against any loss, cost, claim, liability, damage or expense
               (including reasonable attorney's fees) to any third party,
               including PSP, relating to or arising from any of the following:

               a.   CLEC's failure to comply with all the terms and conditions
                    of Sec. VII A.7. or

               b.   Use by a PSP customer of CLEC of any service other than a
                    Payphone Line to provide pay telephone service or

               c.   False representation by CLEC.

     B.   INTERFACES WITH SWBT

          CLEC shall be responsible for modifying and connecting any of its
          systems with SWBT-provided interfaces as described in this Agreement.

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                                                                 PAGE 19 OF 40

     C.   REPAIR CONTACT ARRANGEMENTS

          CLEC shall be responsible for providing to its end users and to SWBT a
          telephone number or numbers that CLEC's end users can use to contact
          CLEC in the event of service or repair requests. In the event that
          CLEC's end users contact SWBT with regard to such requests, SWBT shall
          inform the end user that they should call CLEC and may provide CLEC
          contact number.

     D.   CLEC COMPANY CODE/OPERATING NUMBER (OCN) ALSO KNOWN AS ALTERNATE
          EXCHANGE CARRIER NUMBER (AECN)

          For the purposes of establishing, provisioning and billing service to
          the CLEC, the CLEC is required to provide to SWBT its OCN/AECN for
          resale services in any SWBT state, which must be separate and distinct
          from the CLEC's state-specific OCN/AECNs for facilities-based business
          (interconnection and/or unbundled network elements). CLEC name
          associated with specific resale OCN/AECN must be consistent among SWBT
          states.

     E.   SPECIAL SERVICE ARRANGEMENT

         For special service arrangements for CLEC not covered under this
         Agreement, special charges shall apply as provided in the applicable
         corresponding tariffs.

     F.   DEVELOPMENT OF BRANDING AND CUSTOMIZED ROUTING FOR DIRECTORY
          ASSISTANCE AND OPERATOR SERVICES

          1.   REQUIREMENTS - Pursuant to Section 226 (b) of The
               Telecommunications Act of 1996, each provider of Operator
               Services is required to:

               a.   Provide its brand at the beginning of each telephone call
                    and before the consumer incurs any charge for the call; and

               b.   Disclose immediately to the consumer, upon request a quote
                    of its rates or charges for the call.

               c.   Where SWBT provides CLECs OS and DA services via the same
                    trunk, both the OS and DA calls will be branded with the
                    same brand. Since SWBT's DA and 0S utilize the same trunk
                    group, CLEC will receive the same brand for both DA/OS. Such
                    branding will be provided pursuant Section 2. below.

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                                                                 PAGE 20 OF 40

          2.   CALL BRANDING - Except where CLEC purchases and maintains toll
               restriction or blocking for all of its resold end user lines, in
               compliance with F.1. above, CLEC shall purchase and SWBT shall
               provide DA/OS branding in CLEC's name based upon the criteria
               outlined below. If CLEC does not purchase and maintain toll
               restriction or blocking for all of its resold end user lines,
               CLEC acknowledges and agrees to meet its obligations for
               branding pursuant to Section 226 (b) of the Telecommunications
               Act as described above, and in accordance with the terms,
               conditions and prices as set forth in this agreement.

               a.   CLEC will provide SWBT with written specification of its
                    company name to be used in creating CLEC specific branding
                    messages for its DA/OS calls.

               b.   An initial non-recurring charge applies per load for the
                    establishment of Call Branding as well as a charge per
                    subsequent load to change the brand. In addition, a per call
                    charge applies for every DA/OS call handled by SWBT on
                    behalf of CLEC when such services are provided in
                    conjunction with resale services. Prices for Call Branding
                    are as outlined in Exhibit C, attached hereto and
                    incorporated herein.

          3.   RATE/REFERENCE INFORMATION - Except where CLEC purchases and
               maintains appropriate toll restriction or blocking for all of its
               resold end user lines, CLEC shall purchase and SWBT shall provide
               CLEC DA/OS Rate/Reference Information based upon the criteria
               outlined below. If CLEC does not purchase and maintain toll
               restriction or blocking for all of its resold end user lines,
               CLEC acknowledges and agrees to meet its obligations for
               branding pursuant to Section 226 (b) of the Telecommunications
               Act as described above, and in accordance with the terms,
               conditions and prices as set forth in this agreement.

               a.   CLEC will furnish DA/OS Rate and Reference Information in a
                    mutually agreed to format or media thirty (30) days in
                    advance of the date when the DA/OS Services are to be
                    undertaken.

               b.   CLEC will inform SWBT, in writing, of any changes to be made
                    to such Rate/Reference Information ten (10) working days
                    prior to the effective Rate/Reference change date.

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                                                                 PAGE 21 OF 40

                    CLEC acknowledges that it is responsible to provide SWBT
                    updated Rate/Reference Information in advance of when the
                    Rates/Reference Information are to become effective.

               c.   In all cases when a SWBT Operator receives a rate request
                    from a CLEC end user, SWBT will quote the applicable DA/OS
                    rates as provided by CLEC.

               d.   An initial non-recurring charge will apply for loading of
                    CLEC's DA/OS Rate/Reference Information as well as a charge
                    for each subsequent change to either the CLEC's DA/OS
                    Services Rate or Reference Information as outlined in
                    Exhibit C, attached hereto and incorporated herein.

          4.   CUSTOMIZED ROUTING - Except where CLEC purchases and maintains
               appropriate toll restriction or blocking for all of its resold
               end user lines, SWBT shall also offer CLEC the opportunity to
               customize route DA/OS where technically feasible. CLEC agrees to
               pay SWBT appropriate charges associated with customized routing
               on an ICB basis.

VIII. NONEXCLUSIVITY

      This Agreement is nonexclusive. CLEC acknowledges that SWBT will be
      providing the same or similar services to other local services providers
      in accordance with negotiated agreements which will be filed with the
      appropriate state commission(s). CLEC also acknowledges that SWBT may,
      upon end user request, provide any and all of the services provided to
      CLEC under this Agreement directly to the end users. SWBT acknowledges
      that CLEC may obtain the same or similar services from other local
      exchange companies.

IX.   SUPPORT SYSTEMS SERVICES

      A.   SUPPORT SYSTEMS SERVICES

           1.   TRANSFER OF SERVICE ANNOUNCEMENTS (INTERCEPT)

                The Party formerly providing service to an end user shall
                provide a Basic Referral announcement, reciprocally and free
                of charge on the abandoned telephone number. The announcement
                states that the called number has been disconnected or changed
                and provides the end user's new telephone number to the extent
                that it is listed.

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                                                                 PAGE 22 OF 40

               SWBT shall provide an intercept referral on behalf of CLEC to
               their end user as indicated on the appropriate service order.

               Basic Intercept Referral Announcements are to be provided on
               residential numbers for a minimum of thirty (30) days where
               facilities exist and the threat of telephone number exhaustion is
               not imminent.

               Basic Intercept Referral Announcements for a single line business
               end user and the primary listed telephone number for Direct
               Inward Dial (DID) and "Centrex-type" end users, shall be
               available for a minimum of thirty (30) days or for the life of
               the white pages directory, whichever is greater. If the threat of
               telephone number exhaustion becomes imminent for a particular
               central office, the service provider may reissue a disconnected
               number prior to the expiration of the directory, but no earlier
               than thirty (30) days after the disconnection of the business
               telephone number.

          2.   COORDINATED REPAIR CALLS

               SWBT shall be responsible for repairing its own network. However,
               CLEC shall maintain telephone numbers where its end user may call
               to report instances of trouble.

               The Parties shall employ the following procedures for handling
               misdirected repair calls:

               a.   The Parties shall inform their respective end users of the
                    correct telephone numbers to call to access their respective
                    repair bureaus.

               b.   To the extent the correct provider can be determined, each
                    Party shall refer misdirected repair calls to the proper
                    provider of local exchange service, at no charge, and shall
                    provide the end user the contact telephone number provided
                    by the other party.

                    In responding to repair calls, neither Party shall make
                    disparaging remarks about each other, nor shall they use
                    these repair calls as the basis for internal referrals or to
                    solicit customers or to market services. Either Party may
                    respond with accurate information in answering customer
                    questions.

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                                                                 PAGE 23 OF 40

               c.   The Parties shall provide each other their respective repair
                    contact numbers.

               d.   Notwithstanding anything contained herein to the contrary,
                    SWBT and CLEC agree that SWBT shall have no obligation to
                    unbrand or rebrand the uniforms or training of its
                    customer-contact employees, trucks, vehicles, any customer
                    premises equipment or other customer-owned facilities or
                    SWBT's outside plant or network components.

               e.   Where CLEC requires SWBT personnel to interface directly
                    with CLEC end user customers in any form of communication
                    (including, but not limited to, written, face-to-face, by
                    telephone or electronic transmission of any kind), such SWBT
                    personnel shall be identified as SWBT employees representing
                    the customer's provider.

     B.   NETWORK MANAGEMENT CONTROLS

          Each Party shall provide a 24-hour contact number for Network Traffic
          Management issues to the other. A FAX number must also be provided to
          facilitate event notifications for planned mass calling events.
          Additionally, both Parties agree that they shall work cooperatively
          that all such events shall attempt to be conducted in such a manner as
          to avoid degradation or loss of service to other end users.

     C.   LAW ENFORCEMENT AND CIVIL PROCESS

          SWBT and CLEC shall handle law enforcement requests as follows:

          1.   INTERCEPT DEVICES

               Local and federal law enforcement agencies periodically request
               information or assistance from local telephone service providers.
               When either Party receives a request associated with an end user
               of the other Party, it shall refer such request to the
               appropriate Party, unless the request directs the receiving
               Party to attach a pen register, trap and trace or form of
               intercept on that Party's own facilities, in which case that
               Party shall comply with any valid request.

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                                                                 PAGE 24 OF 40

     2.   SUBPOENAS

          If a Party receives a subpoena for information concerning an end user
          the Party knows to be an end user of the other Party, it shall refer
          the subpoena to the requesting entity with an indication that the
          other Party is the responsible company. Provided, however, if the
          subpoena requests records for a period of time during which the
          receiving Party was -the end user's service provider, the receiving
          Party will respond to any valid request.

     3.   EMERGENCIES

          If a Party receives a request from a law enforcement agency to
          implement a temporary number change, temporary disconnect or one way
          denial of outbound calls for an end user of the other party, the
          receiving Party will comply so long as it is a valid emergency
          request. In the case of the CLEC, the CLEC shall refer such request to
          SWBT and SWBT shall honor such request in accordance with this
          paragraph. Neither Party shall be held liable for any claims or
          damages arising from compliance with such requests, and the Party
          serving the end user agrees to indemnify and hold the other Party
          harmless against any and all such claims.

X.   CALL TRACE

     CLEC end user's activation of Call Trace for a line purchased under this
     Agreement, shall be handled by the SWBT Call Trace Center (CTC). SWBT shall
     notify CLEC of requests by CLEC's end users to provide the call records to
     the proper authorities. Subsequent communication and resolution of the case
     with CLEC's end user (whether that end user is the victim or the suspect)
     shall be the responsibility of CLEC.

     CLEC understands that for services where reports are provided to law
     enforcement agencies (e.g., Call Trace) SWBT shall only provide billing
     number and address information. CLEC shall provide additional information
     necessary for any police investigation.

XI.  TAXES

     CLEC shall be responsible for all federal, state or local, sales, use,
     excise or gross receipts taxes or fees imposed on or with respect to the
     services PROVIDED UNDER THIS AGREEMENT INCLUDING THOSE TAXES AND FEES,
     IMPOSED ON SWBT. CLEC shall reimburse SWBT for the amount of any such taxes
     or fees which SWBT is

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                                                                 PAGE 25 OF 40

     required to pay or collect for services provided to CLEC hereunder. To the
     extent a sale is claimed to be for resale tax exemption, the CLEC shall
     furnish SWBT a proper resale tax exemption certificate as authorized or
     required by statute or regulation by the jurisdiction providing said resale
     tax exemption. Failure to timely provide said resale tax exemption
     certificate will result in no exemption being available to the CLEC until
     such time as CLEC presents a valid certificate.

XII. TERMINATION OF SERVICE TO CLEC

     A.   If CLEC fails to pay when due (within 30 days of the bill date), any
          and all charges billed to them under this Agreement, including any
          late payment charges (Unpaid Charges) or miscellaneous charges, and
          any portion of such charges remain unpaid more than fifteen (15) days
          after the due date of such Unpaid Charges, SWBT shall notify CLEC in
          writing that in order to avoid having service disconnected, CLEC must
          remit all Unpaid Charges to SWBT within fourteen (14) calendar days.

     B.   If CLEC disputes the billed charges, it shall, within the fourteen
          (14) day period provided for above, inform SWBT in writing which
          portion of the charges it disputes, including the specific details and
          reasons for its dispute; immediately pay to SWBT all undisputed
          charges; and pay all disputed charges into an interest bearing escrow
          account established by CLEC with a third party escrow agent mutually
          agreed upon by the Parties.

     C.   Disputes hereunder shall be resolved in accordance with the procedures
          identified in Article XVII (Dispute Resolution). Failure of CLEC to
          pay charges deemed owed to SWBT after conclusion of the Arbitration
          shall be grounds for termination under this Article.

     D.   If any CLEC charges remain unpaid or undisputed twenty-nine (29) days
          past the due date, SWBT shall notify CLEC, the Commission and the end
          user's IXC(s) of Record in writing, that unless all charges are paid
          within sixteen (16) days, CLEC's service shall be disconnected and
          its end users shall be switched to SWBT local service. SWBT will also
          suspend order acceptance with the exception of disconnects on the same
          day that it sends the letter required by the preceding sentence.

     E.   If any CLEC charges remain unpaid or undisputed forty (40) days past
          the due date, CLEC shall, at its sole expense, notify its end users,
          the Commission and the end user's of Record that their service may be
          disconnected for CLEC's failure to pay Unpaid Charges, and that its
          end users must select a new Competitive Local Exchange Carrier within
          five (5) days. The notice shall also advise the end user that SWBT
          will assume

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                                                                 PAGE 26 OF 40

          the end user's account at the end of the five (5) day period should
          the end user fail to select a new Competitive Local Exchange Carrier.

     F.   If any CLEC charges remain unpaid or undisputed forty-five (45) days
          past the due date, SWBT shall disconnect CLEC and transfer all CLEC's
          end users who have not selected another Competitive Local Exchange
          Carrier directly to SWBT's service. These end users shall receive the
          same services provided through CLEC at the time of transfer. SWBT
          shall inform the Commission and the end user's IXC(s) of Record of the
          names of all end users transferred through this process. Applicable
          service establishment charges for switching end users from CLEC to
          SWBT shall be assessed to CLEC.

     G.   Within five (5) days of the transfer (50 days past CLEC's due date),
          SWBT shall notify all affected end users that because of a CLEC's
          failure to pay, their service is now being provided by SWBT. SWBT
          shall also notify the end user that they have thirty (30) days to
          select a Competitive Local Exchange Carrier, after which time should
          the end user not select a CLEC, the end user's service shall be
          terminated.

     H.   SWBT may discontinue service to CLEC upon failure to pay undisputed
          charges as provided in this section, and shall have no liability to
          CLEC or CLEC end users in the event of such disconnection.

     I.   If any end user fails to select a Competitive Local Exchange Carrier
          within thirty (30) days of the change of providers (80 days past
          CLEC's due date), SWBT shall terminate the end user's service. SWBT
          shall notify the Commission and the end user's IXC of Record of the
          names of all end users whose service has been terminated. The end user
          shall be responsible for any and all charges incurred during the
          selection period.

     J.   Nothing herein shall be interpreted to obligate SWBT to continue to
          provide service to any such end users. Nothing herein shall. be
          interpreted to limit any and all disconnection rights SWBT may have
          with regard to such end users.

     K.   After the letter required by Article XII, Section D has been sent to
          CLEC, SWBT shall not accept service orders from CLEC until all unpaid
          and undisputed charges have been paid. SWBT shall have the right to
          require payment of a deposit calculated in accordance with the
          provisions of article VII, Section A, Paragraph 6 of this Agreement
          prior to resuming acceptance of service orders from CLEC.

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                                                                 PAGE 27 OF 40

XIII. FORCE MAJEURE

     Neither party shall be responsible for delays or failures in performance
     resulting from acts or occurrences beyond the reasonable control of such
     Party, regardless of whether such delays or failures in performance were
     foreseen or foreseeable as of the date of this Agreement, including,
     without limitation: fire, explosion, power failure, cable cuts, acts of
     God, war, revolution, civil commotion, or acts of public enemies; any law,
     order, regulation, ordinance or requirement of any government or legal
     body; or labor unrest, including, without limitation, strikes, slowdowns,
     picketing or boycotts; or delays caused by the other party or by other
     service or equipment vendors; or any other circumstances beyond the Party's
     reasonable control. In such event, the Party affected shall, upon giving
     prompt notice to the other Party, be excused from such performance on a
     day-to-day basis to the extent of such interference (and the other Party
     shall likewise be excused from performance of its obligations on a
     day-for-day basis to the extent such Party's obligations relate to the
     performance so interfered with). The affected party shall use its best
     efforts to avoid or remove the cause of nonperformance and both parties
     shall proceed to perform with dispatch once the causes are removed or
     cease.

XIV. LIMITATION OF LIABILITY

     A.   With respect to any claim or suit arising out of SWBT's performance
          under this Agreement, by a CLEC or any others, for damages arising out
          of mistakes, omissions, interruptions, delays or errors, or defects in
          transmission occurring in the course of furnishing service hereunder,
          SWBT's liability, if any, shall not exceed an amount equivalent to the
          proportionate charge to the CLEC for the period of service during
          which such mistake, omission, interruption, delay, error, or defect in
          transmission or service occurs and continues. In no event shall SWBT
          be responsible for any special indirect, consequential or exemplary
          damages. Any mistakes, omissions, interruptions, delays, errors, or
          defects in transmission or service which are caused or contributed to
          by the negligence or willful act of the CLEC or which arise from the
          use of CLEC-provided facilities or equipment shall not result in the
          imposition of any liability whatsoever upon SWBT.

     B.   SWBT shall have no liability to the end users of the CLEC for claims
          arising from the provision of the CLEC's service to its end users
          including, but not limited to, claims for interruption of service,
          quality of service or billing disputes, unless such loss is caused by
          SWBT's own negligence or intentional misconduct in which case
          liability shall be limited as provided in paragraph A, above. In the
          case of any loss alleged

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                                                                 PAGE 28 OF 40

          or made by an end user of CLEC, CLEC shall defend and indemnify SWBT
          against any and all such claims or loss by its end users, unless the
          loss was caused by SWBT's sole negligence or intentional misconduct.

     C.   CLEC hereby releases SWBT and agrees that it shall indemnify SWBT
          with regard to any and all liability for damages due to errors or
          omissions in CLEC's subscriber listing information (including
          erroneous inclusion of nonpublished or nonlisted subscriber listing
          information) as such information is submitted by CLEC, and for
          inclusion in the White Pages directory including, but not limited to,
          special, indirect, consequential, punitive or incidental damages.

     D.   CLEC agrees to indemnify, defend and hold harmless SWBT from any Loss
          arising out of SWBT's provision of 911 services or out of CLEC's end
          users' use of the 911 service, whether suffered, made, instituted, or
          asserted by CLEC or its end users, including for any personal injury
          or death of any person or persons, except for Loss which is the direct
          result of SWBT's own negligence or willful misconduct.

     E.   CLEC shall indemnify and hold SWBT harmless from all claims and
          damages arising from the discontinuance of service for nonpayment to
          SWBT by the CLEC. Notice of discontinuance shall be as specified in
          the Substantive Rules of the State Commission.

     F.   When the lines or services of other companies and carriers are used
          in providing service or establishing connections to and/or from points
          not reached by SWBT's lines, SWBT is not liable for any act or
          omission of the other companies or carriers.

     G.   CLEC shall be responsible for any and damage to SWBT equipment or
          facilities caused by CLEC's own actions.

XV.  NONDISCLOSURE

     The Parties to this Agreement anticipate and recognize that they will
     exchange or come into possession of, data about each other's end users and
     each other's business as a result of this Agreement which will be
     designated as confidential by that Party. Each Party agrees (1) to treat
     all such data as strictly confidential and (2) to use such data only for
     purposes of performance under this Agreement. Each Party agrees not to
     disclose data on the other Party's end users or business which has been
     designated as confidential to any person without first securing the written
     consent of the other Party. The foregoing shall not apply to information
     which is in the public domain.

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                                                                 PAGE 29 OF 40

     If a court or governmental agency orders, or a third party requests, a
     Party to disclose or to provide any data or information covered by this
     Section, that Party will immediately inform the other Party of the order or
     request both by telephone and overnighted mail before disclosing the data
     or information. Notification and consent requirements described above are
     not applicable in cases where a court order requires the production of toll
     billing records of an individual residence or business end user customer.

     This section will not preclude the disclosure by the Parties of information
     or material described in this Section to consultants, agents, or attorneys
     representing the respective Parties or the Office of the Public Counsel for
     the state of Texas, and state Public Utility Commission or staffs, or FCC
     Staff, provided that these third parties are bound by the same or
     comparable confidentiality requirements as the Parties to this Agreement.
     The provisions of this Section will remain in effect notwithstanding the
     termination of this Agreement, unless agreed to in writing by both Parties.

     Pursuant to Section 222 of the Act, both Parties agree to limit their use
     of proprietary information received from the other to the permitted
     purposes identified in the Act.

XVI. PUBLICITY

     The Parties agree not to use in any advertising or sales promotion, press
     releases or other publicity matters any endorsements, direct or indirect
     quotes, or pictures implying endorsement by the other Party or any of its
     employees without such Party's prior written approval. The Parties will
     submit to each other for written approval, prior to publication, all
     publicity matters that mention or display one another's name and/or marks
     or contain language from which a connection to said name and/or marks may
     be inferred or implied.

XVII. ASSIGNMENT

      Neither Party may assign, subcontract, or otherwise transfer its rights or
      obligations under this Agreement except under such terms and conditions as
      are mutually acceptable to the other Party (e.g., a conversion charge will
      apply per billable telephone number) and with such Party's prior written
      consent, which consent shall not be unreasonably withheld. Assignment
      without consent shall be grounds for immediate termination of this
      Agreement.

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                                                                 PAGE 30 OF 40

XVIII. DISPUTE RESOLUTION

     A.   FINALITY OF DISPUTES

          1.   Except as otherwise specifically provided for in this Agreement,
               no claims will be brought for disputes arising from this
               Agreement more than 24 months from the date the occurrence which
               gives rise to the dispute is discovered or reasonably should have
               been discovered with the exercise of due care and attention.

     B.   ALTERNATIVE TO LITIGATION

          1.   The Parties desire to resolve disputes arising out of this
               Agreement without litigation. Accordingly, the Parties agree to
               use the following Dispute Resolution procedure with respect to
               any controversy or claim arising out of or relating to this
               Agreement or its breach.

     C.   COMMENCING DISPUTE RESOLUTION

          1.   Dispute Resolution shall commence upon the sending from one Party
               to the other of written notice of a controversy or claim arising
               out of or relating to this Agreement or its breach. No Party may
               pursue any claim unless such written notice has first been given
               to the other Party.

     D.   INFORMAL RESOLUTION OF DISPUTES

          1.   When such written notice has been given, as required by Section
               C, Commencing Dispute Resolution, each Party will appoint a
               knowledgeable, responsible representative to meet and negotiate
               in good faith to resolve any dispute arising under this Agreement
               The location, form, frequency, duration, and conclusion of these
               discussions will be left to the discretion of the
               representatives. Upon agreement, the representatives may utilize
               other alternative dispute resolution procedures such as mediation
               to assist in the negotiations. Discussions and the correspondence
               among the representatives for purposes of settlement are exempt
               from discovery and production and will not be admissible in the
               arbitration described below or in any lawsuit without the
               concurrence of both parties. Documents identified in or provided
               with such communications, which are not prepared for purposes of
               the negotiations, are not so exempted and, if otherwise
               admissible, may be admitted in evidence in the arbitration or
               lawsuit.

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                                                                 PAGE 31 OF 40

     E.   FORMAL DISPUTE RESOLUTION

          1.   If the Parties are unable to resolve the dispute through the
               informal procedure described above in Section D, Informal
               Resolution of Disputes, then either Party may invoke the
               following formal Dispute Resolution procedures. Unless agreed
               upon by the Parties, formal dispute resolution procedures
               described below, including arbitration or other procedures as
               appropriate, may be invoked not earlier than sixty (60) days
               after the date of the letter initiating dispute resolution under
               Section C, Commencing Dispute Resolution.

          2.   CLAIMS SUBJECT TO MANDATORY ARBITRATION. The following claims, if
               not settled through informal dispute resolution, will be subject
               to mandatory arbitration pursuant to Section F, Arbitration
               below:

               a.   All unresolved billing disputes involving one (1) percent or
                    less of the amounts charged to CLEC by SWBT under this
                    Agreement during the Contract Year in which the dispute
                    arises. During the first Contract Year the Parties will
                    annualize the initial months up to one year.

               b.   All other claims involving one (1) percent or less of the
                    amounts charged to CLEC by SWBT under this Agreement during
                    the Contract Year in which the matter in dispute arises,
                    whether measured by the disputing Party in terms of actual
                    amounts owed or owing, or as amounts representing its
                    business or other risks or obligations relating to the
                    matter in dispute. During the first Contract Year the
                    Parties will annualize the initial months up to one year.

          3.   CLAIMS SUBJECT TO ELECTIVE ARBITRATION. The following claims will
               be subject to arbitration pursuant to Section F, Arbitration if
               and only if, the claim is not settled through informal dispute
               resolution and both parties agree to arbitration. If both parties
               do not agree to arbitration, then either party may proceed with
               any remedy available to it pursuant to law, equity or agency
               mechanism.

               a.   All unresolved billing disputes involving more than one (1)
                    percent of the amounts charged to CLEC by SWBT under this
                    Agreement during the Contract Year in which the matter in
                    dispute arises, whether measured by the disputing Party in
                    terms of actual amounts owed or owning, or as

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                                                                 PAGE 32 OF 40

                    amounts representing its business or other risks or
                    obligation relating to the matter in dispute. During the
                    first Contract Year the Parties will annualize the initial
                    months up to one year.

               b.   All other claims involving more than one (1) percent of the
                    amounts charged to CLEC by SWBT under this Agreement during
                    the Contract Year in which the matter in dispute arises,
                    whether measured by the disputing Party in terms of actual
                    amounts owed or owing, or as amounts representing its
                    business or other risks or obligations relating to the
                    matter in dispute. During the first Contract Year the
                    Parties will annualize the initial months up to one year.

          4.   CLAIMS NOT SUBJECT TO ARBITRATION If the following claims are not
               resolved through informal dispute resolution, they will not be
               subject to arbitration and must be resolved through any remedy
               available to a Party pursuant to law, equity or agency mechanism.

               a.   Actions seeking a temporary restraining order or an
                    injunction related to the purposes of this Agreement.

               b.   Actions to compel compliance with the Dispute Resolution
                    process.

               c.   All claims arising under federal or state statute(s),
                    including, but not limited to, antitrust claims.

     F.   ARBITRATION

          1.   Disputes subject to mandatory or elective arbitration under the
               provisions of this Agreement will be submitted to a single
               arbitrator pursuant to the Commercial Arbitration Rules of the
               American Arbitration Association or pursuant to such other
               provider of arbitration services or rules as the Parties may
               agree. Each arbitration will be held in Dallas, Texas, unless the
               parties agree otherwise. The arbitration hearing will be
               requested to commence within sixty (60) days of the demand for
               arbitration. The arbitrator will control the scheduling so as to
               process the matter expeditiously. The Parties may submit written
               briefs upon a schedule determined by the arbitrator. The Parties
               will request that the arbitrator rule on the dispute by issuing a
               written opinion within thirty (30) days after the close of
               hearings. The Federal Arbitration Act, 9 U.S.C. Secs. 1-16, not
               state law, shall govern the

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                                                                 PAGE 33 OF 40

               arbitrability of all disputes. The arbitrator will have no
               authority to award punitive damages, exemplary damages,
               consequential damages, multiple damages, or any other damages not
               measured by the prevailing party's actual damages, and may not in
               any event make any ruling, finding or award that does not conform
               to the terms and conditions of the Agreement. The arbitrator
               shall be knowledgeable of telecommunications issues. The times
               specified in this Section may be extended or shortened upon
               mutual agreement of the Parties or by the arbitrator upon a
               showing of good cause. Each Party will bear its own costs of
               these procedures, including attorneys' fees. The Parties will
               equally split the fees of the arbitration and the arbitrator. The
               arbitrator's award shall be final and binding and may be entered
               in any court having jurisdiction thereof. Judgment upon the award
               rendered by the arbitrator may be entered in any court having
               jurisdiction.

     G.   BILLING DISPUTES

          1.   The following provisions apply specifically to billing disputes.

               a.   The Parties agree that all bills, including bills disputed
                    in whole or in part, are to be paid when due, that interest
                    applies to all overdue invoices as set forth in the
                    applicable provisions of this Agreement, and that no other
                    late payment fee or charge applies to overdue invoices. The
                    Parties further agree that if any billing dispute is
                    resolved in favor of the disputing Party the disputing Party
                    will receive, by crediting or otherwise, interest applied to
                    the disputed amount as set forth in the applicable
                    provisions of this Agreement.

               b.   To the extent that any other portions of this Agreement
                    provide for a bill closure process between the parties, or
                    if such a process is mutually agreed to by the Parties, the
                    procedures involved in such processes will not be deemed to
                    place a particular billing item in dispute for purposes of
                    Section XVIII, Dispute Resolution.

               c.   Each Party agrees to notify the other Party of a billing
                    dispute and may invoke the- informal dispute resolution
                    process described in Section D, Informal Resolution of
                    Disputes. The parties will endeavor to resolve the dispute
                    within sixty (60) calendar days of the Bill Date on which
                    such disputed charges appear, or, if the charges have been

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                                                                 PAGE 34 OF 40

                    subject to the bill closure process described in Section E,
                    Formal Dispute Resolution, above, within sixty (60) calendar
                    days of the closure of the billing period covered by such
                    bill closure process.

     H.   NO CONFLICT

          1.   The Dispute Resolution procedures set forth in this Agreement are
               not intended to conflict with applicable requirements of the Act
               or the state commission with regard to procedures for the
               resolution of disputes arising out of this Agreement.

XIX. VERIFICATION REVIEWS

     Each Party to this Agreement will be responsible for the accuracy and
     quality of its data as submitted to the respective Parties involved. Upon
     reasonable written notice, each Party or its authorized representative
     (providing such authorized representative does not have a conflict of
     interest related to other matters before one of the Parties) shall have the
     right to conduct a review and verification of the other Party to give
     assurances of compliance with the provisions of this Agreement. This
     includes on-site verification reviews at the other Party's or the Party's
     vendor locations.

     After the initial year of this Agreement verification reviews will
     normally be conducted on an annual basis with provision for staged reviews,
     as mutually agreed, so that all subject matters are not required to be
     reviewed at the same time. Follow up reviews will be permitted between
     annual reviews where significant deviations are found. During the initial
     year of the Agreement more frequent reviews may occur.

     The review will consist of an examination and verification of data
     involving records, systems, procedures and other information related to the
     services performed by either Party as related to settlement charges or
     payments made in connection with this Agreement as determined by either
     Party to be reasonably required. Each Party, whether or not in connection
     with an on-site verification review, shall maintain reasonable records for
     a period of time no less than twenty-four (24) months from the date such
     records are created and provide the other Party with reasonable access to
     such information as is necessary to determine amounts receivable or payable
     under this Agreement.

     Each Party's right to access information for verification review purposes
     is limited to data not in excess of 24 months in age. Once specific data
     has been reviewed and verified, it is unavailable for future reviews. Any
     items not reconciled at the end of a review will, however, be subject to a
     follow-up review effort. Any

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                                                                 PAGE 35 OF 40

     retroactive adjustments required subsequent to previously reviewed and
     verified data will also be subject to follow-up review. Information of
     either Party involved with a verification review shall be subject to the
     nondisclosure terms of this Agreement.

     The Party requesting a verification review shall fully bear its costs
     associated with conducting the review. The Party being reviewed will
     provide access to required information, as outlined in this Section, at no
     charge to the reviewing Party. Should the reviewing Party request
     information or assistance beyond that reasonably required to conduct such a
     review, the Party being reviewed may, as its option, decline to comply with
     such request or may bill actual costs incurred in complying subsequent to
     the concurrence of reviewing Party.

XX.  COMPLIANCE WITH LAWS

     The Parties believe in good faith that the Services to be provided under
     this Agreement satisfy the requirements of the Act In the event a court or
     regulatory agency of competent jurisdiction should determine that
     modifications of this Agreement are required to bring the Services being
     provided hereunder into compliance with the Act, the affected Party shall
     promptly give the other Party written notice of the modifications deemed
     required. Upon delivery of such notice, the Parties shall expend diligent
     efforts to arrive at an agreement respecting such modifications required,
     and if the Parties are unable to arrive at such agreement, either Party may
     terminate this Agreement, without penalty, effective the day the affected
     Party is ordered to implement the modifications deemed required, or
     effective on the day either Party concludes and gives notice that the
     Parties will not be able to arrive at any agreement respecting such
     modifications, whichever date shall occur earlier.

     This Agreement is an integrated package that reflects a balancing of
     interests critical to the Parties. It will be submitted to the applicable
     state regulatory Commission and the FCC as a compliance filing, and the
     Parties will specifically request that the applicable state regulatory
     Commission and the FCC refrain from taking any action to change, suspend or
     otherwise delay implementation of the Agreement. In the event the
     Commission or the FCC rejects any portion or provision of this Agreement or
     subsequently issues a ruling or order that results in a provision being
     contrary to law, or is invalid for any reason, the parties shall continue
     to be bound by the terms of this Agreement, insofar as possible, except for
     the portion rejected or subsequently determined to be unlawful, invalid, or
     unenforceable. In such event, the Parties shall negotiate in good faith to
     replace the rejected, unlawful, invalid, or unenforceable provision and
     shall not discontinue service to the other Party during such period if to
     do so would disrupt existing service being provided to an end user. So long
     as the Agreement remains in effect, the Parties shall not advocate before
     any legislative, regulatory, or other

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                                                                 PAGE 36 OF 40

       public forum that any terms of this specific Agreement be modified or
       eliminated. Notwithstanding this mutual commitment, however, the Parties
       enter into this Agreement without prejudice to any positions they have
       taken previously, or may take in the future in any legislative,
       regulatory, or other public forum addressing any matters, including
       matters related to the types of arrangements prescribed by this
       Agreement.

XXI.   CERTIFICATION REQUIREMENTS

       CLEC warrants that it has obtained all certifications required in those
       jurisdictions in which CLEC has ordered services pursuant to this
       Agreement. Subject to restrictions in Article II.A. (Permitted Use of
       Resold Service by CLEC and Its End Users), CLEC covenants that any
       originating service provider utilizing the resold services under this
       Agreement has obtained all required certification.

       Upon request by any governmental entity, the CLEC is required to provide
       proof of certification.

XXII.  INTENTIONALLY LEFT BLANK

XXIII. NOTIFICATION

       SWBT will notify CLEC of any changes in the prices, terms and conditions
       under which SWBT offers telecommunications services at retail to
       subscribers who are not telecommunications service providers or carriers,
       including, but not limited to, the introduction of any new features,
       functions, services, promotions, grandfathering or the discontinuance of
       current features or services at the time a tariff filing is transmitted
       to the State Commission, or, in situations where a tariff filing is not
       so transmitted, within ninety (90) days (forty-five (45) days for price
       changes) of the expected effective date of such change.

       With regard to new services, the notification shall advise CLEC of the
       category in which such new service shall be placed and the discount
       applicable to the new service.

       SWBT currently uses the Accessible Letter process to notify CLEC of such
       changes to the services available for resale. Any change to the process
       of notification to the CLEC will provide no less notice than the current
       Accessible Letter process.

XXIV.  NOTICES

       In the event any notices are required to be sent under the terms of this
       Agreement, they may be sent by registered mail and are deemed to have
       been

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                                                                 PAGE 37 OF 40

     given on the date received. Notice may also be effected by personal
     delivery or by overnight courier, and will be effective upon receipt.
     Notice may also be provided by facsimile, which will be effective on the
     next business day following the date of transmission; provided, however,
     notices to a Party's 24-hour maintenance contact number will be by
     telephone and/or facsimile and will be deemed to have been received on the
     date transmitted. The Parties will provide the appropriate telephone and
     facsimile numbers to each other.

     Unless otherwise specifically provided in this Agreement, notice will be
     directed as follows:

     To CLEC:                                    To SWBT:

     essential.com                               Contract Administration
     John Duffy, Vice President                  ATTN: Contract Management
     Of Business Development,                    Four Bell Plaza, 9th Floor
     Telecom Services                            311 S. Akard St.
     3 Burlington Woods Dr., 4th Floor           Dallas, TX 75202-5398
     Burlington, MA  O1803

     Either Party may unilaterally change its designated representative,
     address, telephone contact number and/or facsimile number for the receipt
     of notices by giving written notice to the other Party in compliance with
     this Section. Any notice to change the designated representative, address,
     telephone contact and/or facsimile number for the receipt of notices shall
     be deemed effective ten (10) days following receipt by the other Party.

XXV. BENEFICIARIES

     This Agreement shall not provide any nonparty with any remedy, claim, cause
     of action or other right.

XXVI. TERM

     SWBT and CLEC agree that the initial term of this Agreement shall commence
     upon approval of this Agreement by the Public Utility Commission of Texas
     and shall expire on October 12, 2000. Following expiration of the initial
     term, the Agreement shall renew for additional terms of one (1) year unless
     and until terminated as provided herein. Either Party may terminate this
     Agreement by providing written notice of termination to the other Party, at
     least 60 days in advance of the date of proposed termination. Upon the
     termination date, if CLEC has not made arrangements to provide service to
     its end users over its own or alternative facilities, SWBT shall invoke the
     notification and transfer of

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                                                                 PAGE 38 OF 40

        end user procedures outlined in Article XII. D. and F. (Termination of
        service to CLEC).

XXVII.  EFFECTIVE DATE

        The effective date of this Agreement shall be ten (10) days after the
        date that the appropriate state regulatory Commission approves this
        Agreement.

XXVIII. WAIVER

        The failure of either Party to enforce or insist that the other party
        comply with any of the terms or conditions of this Agreement, or the
        waiver by either Party in a particular instance of any of the terms and
        conditions of this Agreement, shall not be construed as a general
        waiver or relinquishment of the terms and conditions, but the Agreement
        shall be and remain at all times in full force and effect.

XXIX.   DISCLAIMER OF WARRANTIES

        SWBT MAKES NO REPRESENTATION OR WARRANTIES, EXPRESS OR IMPLIED,
        INCLUDING BUT NOT LIMITED TO ANY WARRANTY AS TO MERCHANTABILITY OR
        FITNESS FOR INTENDED OR PARTICULAR PURPOSE WITH RESPECT TO SERVICES
        PROVIDED HEREUNDER. ADDITIONALLY, SWBT ASSUMES NO RESPONSIBILITY WITH
        REGARD TO THE CORRECTNESS OF DATA OR INFORMATION SUPPLIED BY CLEC WHEN
        THIS DATA OR INFORMATION IS ACCESSED AND USED BY A THIRD PARTY.

XXX.    RELATIONSHIP OF THE PARTIES

        This Agreement shall not establish, be interpreted as establishing, or
        be used by either Party to establish or to represent their relationship
        as any form of agency, partnership or joint venture. Neither Party
        shall have any authority to bind the other or to act as an agent for
        the other unless written authority, separate from this Agreement, is
        provided. Nothing in the Agreement shall be construed as providing for
        the sharing of profits or losses arising out of the efforts of either
        or both of the Parties. Nothing herein shall be construed as making
        either Party responsible or liable for the obligations and undertakings
        of the other Party.

XXXI.   INTERVENING LAW AND PRESERVATION OF RIGHTS

        This Agreement is entered into as a result of both private negotiation
        between the Parties and the incorporation of some of the results of
        arbitration by the Public Utility Commission of Texas. If the actions
        of the State of Texas or federal legislative bodies, courts, or
        regulatory agencies of competent jurisdiction

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                                                                  PAGE 39 OF 40

         invalidate, modify, or stay the enforcement of laws or regulations
         that were the basis or rationale for a provision of the contract,
         the affected provision shall be invalidated, modified, or stayed,
         consistent with the action of the legislative body, court, or
         regulatory agency upon the written request of either party. In such
         event, the Parties shall expend diligent efforts to arrive at an
         agreement respecting the appropriate modifications to the Agreement.
         If negotiations fail, disputes between the Parties concerning the
         interpretation of the actions required or provisions affected by
         such governmental actions shall be resolved pursuant to the dispute
         resolution process provided for in this Agreement. Without limiting
         the general applicability of the foregoing, the Parties acknowledge
         that on January 25, 1999, the United States Supreme Court issued its
         opinion in AT&T CORP. V. IOWA UTILITIES BD, 119 S. Ct. 721 (1999)
         and on June 1, 1999, the United States Supreme Court issued its
         opinion in AMERITECH V. FCC, NO. 98-1381, 1999 WL 116994, 1999 LEXIS
         3671 (1999). The Parties further acknowledge and agree that by
         executing this Agreement, neither Party waives any of its rights,
         remedies, or arguments with respect to such decisions and any remand
         thereof, including its rights under this paragraph.

XXXII.   COMPLETE TERMS

         This Agreement, together with its exhibits constitutes the entire
         agreement between the Parties and supersedes all prior discussions,
         representations or oral understandings reached between the Parties.

         The corresponding tariffs and this Agreement (including the exhibits)
         contain all of the applicable rates and charges to be paid by the
         CLEC to SWBT in connection with SWBT's provision of
         telecommunications service to CLEC for Resale to its end user
         customers.

         Neither Party shall be bound by any amendment, modification or
         additional terms unless it is reduced to writing signed by an
         authorized representative of the Party sought to be bound.

         By their signatures in the space provided below, CLEC and SWBT
         indicate their acceptance of this Agreement. This agreement shall
         not bind CLEC and SWBT until executed by both Parties. This
         Agreement will be governed by and interpreted in accordance with the
         laws of the State of Texas.

<PAGE>

                                                                  PAGE 40 OF 40

THIS AGREEMENT CONTAINS A BINDING ARBITRATION AGREEMENT.

essential.com                               SOUTHWESTERN BELL TELEPHONE
AECN/OCN:                                   COMPANY
         ---------

 /s/ Akhil Garland President
--------------------------------            -----------------------------------
Signature,                                  Signature

 Akhil Garland
--------------------------------            -----------------------------------
Printed Name                                Printed Name

President                                   President - Industry Markets
--------------------------------            -----------------------------------
Position/Title                              Position/Title

27 Sept.  1999
--------------------------------            -----------------------------------
Date                                        Date

<PAGE>
                                                                    PAGE 1 OF 6

<TABLE>
<CAPTION>
                                                   EXHIBIT A
                       SOUTHWESTERN BELL'S RESALE TELECOMMUNICATIONS SERVICES* LIST - BUSINESS
                                                    TEXAS

                                                                                     RESALE DISCOUNTS
                                                                            RECURRING               NON-RECURRING
LOCAL EXCHANGE SERVICE
<S>                                                                        <C>                       <C>
Business 1 Party                                                              21.6%                    21.6%
Business - Multi-Line Hunting                                                 21.6%                    21.6%
Business - Measured                                                           21.6%                    21.6%
Business - Measured (HTG Class of Service)                                    21.6%                    21.6%
Customer Operated Pay Telephone (COPT)                                        21.6%                    21.6%

EXPANDED LOCAL CALLING
EMS - Optional                                                                21.6%                    21.6%
Expanded Local Calling (Mandatory)                                            21.6%                    21.6%
Extended Area Calling Service - Optional                                      21.6%                    21.6%
Mandatory EACS - Hotel/Motel Measured Trunk                                   21.6%                    21.6%
Mandatory EACS - Multi-Line Hunting                                           21.6%                    21.6%
Mandatory EACS - One element measured, 1-party                                21.6%                    21.6%
Mandatory EACS - PBX Trunk                                                    21.6%                    21.6%
Mandatory Extended Area Calling Service (EACS)- 1                             21.6%                    21.6%
Party

VERTICAL SERVICES
Anonymous Call Rejection                                                      21.6%                    21.6%
Auto Redial                                                                   21.6%                    21.6%
Auto Redial - Usage Sensitive                                                 21.6%                    21.6%
Call Blocker                                                                  21.6%                    21.6%
Call Forwarding                                                               21.6%                    21.6%
Call Forwarding - Busy Line                                                   21.6%                    21.6%
Call Forwarding - Busy Line/Don't Answer                                      21.6%                    21.6%
Call Forwarding - Don't Answer                                                21.6%                    21.6%
Call Return                                                                   21.6%                    21.6%
Call Return - Usage Sensitive                                                 21.6%                    21.6%
Call Trace                                                                    21.6%                    21.6%
Call Waiting                                                                  21.6%                    21.6%
Calling Name                                                                  21.6%                    21.6%
Calling Number                                                                21.6%                    21.6%
</TABLE>

*Some Services are not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                    PAGE 2 OF 6

<TABLE>
<CAPTION>
                                                                                           RESALE DISCOUNTS
                                                                                 RECURRING                NON-RECURRING
VERTICAL SERVICES (CONT.)
<S>                                                                             <C>                       <C>
ComCall -Registered Trademark-                                                     21.6%                     21.6%
Personalized Ring (1 dependent number)                                             21.6%                     21.6%
Personalized Ring (2 dependent numbers - 1st                                       21.6%                     21.6%
number)
Personalized Ring (2 dependent numbers - 2nd                                       21.6%                     21.6%
number)
Priority Call                                                                      21.6%                     21.6%
Remote Access to Call Forwarding                                                   21.6%                     21.6%
Selective Call Forwarding                                                          21.6%                     21.6%
Simultaneous Call Forwarding                                                       21.6%                     21.6%
Speed Calling 8                                                                    21.6%                     21.6%
Speed Calling 30                                                                   21.6%                     21.6%
Three Way Calling                                                                  21.6%                     21.6%

DID
DID (First Block of 100 - Category 1)                                              21.6%                     21.6%
DID (First Block of 10 - Category 1)                                               21.6%                     21.6%
DID (Ea. adl. block of 10 after first 10 - Category 1)                             21.6%                     21.6%
DID (Ea. adl. block of 100 after first 100 - Category 2)                           21.6%                     21.6%
DID (Ea. adl. block of 10 assigned over 1st 100 -                                  21.6%                     21.6%
 Category 2)
DID (with dial pulse)                                                              21.6%                     21.6%
DID (with Multifrequency)                                                          21.6%                     21.6%
DID (with Dual-Tone Multifrequency)                                                21.6%                     21.6%
DID (1 st 10 Trunks or access lines)                                               21.6%                     21.6%
DID (11 th thru 50th trunk or network access line)                                 21.6%                     21.6%
DID (51st trunk or network access line)                                            21.6%                     21.6%

TRUNKS
Trunk                                                                              21.6%                     21.6%

AIN
Area Wide Networking                                                               21.6%                     21.6%
Caller Intellidata -Registered Trademark-                                          21.6%                     21.6%
Disaster Routing Service                                                           21.6%                     21.6%
Intelligent Redirect -SM-                                                          21.6%                     21.6%
IntelliNumber                                                                      21.6%                     21.6%
Positive ID                                                                        21.6%                     21.6%
</TABLE>

*Some Services are not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                    PAGE 3 OF 6

<TABLE>
<CAPTION>
                                                                                       RESALE DISCOUNTS
                                                                             RECURRING               NON-RECURRING
OTHER
<S>                                                                           <C>                        <C>
Customer Alerting Enablement                                                    21.6%                     21.6%
Grandfathered Services                                                          21.6%                     21.6%
Hot Line                                                                        21.6%                     21.6%
Hunting                                                                         21.6%                     21.6%
Local Operator Assistance Service                                               21.6%                     21.6%
Night Number associated with Telephone Number                                   21.6%                     21.6%
Night Number associated with a Terminal                                         21.6%                     21.6%
Bundled Telecommunications Services (e.g., the                                  21.6%                     21.6%
Works)
Promotions (Greater than 90 days)                                               21.6%                     21.6%
Telebranch -Registered Trademark-                                               21.6%                     21.6%
TouchTone (Business)                                                            21.6%                     21.6%
TouchTone (Trunk)                                                               21.6%                     21.6%
Voice Dial                                                                      21.6%                     21.6%
Warm Line                                                                       21.6%                     21.6%

ISDN
Digiline -SM-                                                                   21.6%                     21.6%
Select Video Plus -Registered Trademark-                                        21.6%                     21.6%
Smart Trunk -SM-                                                                21.6%                     21.6%

DIRECTORY ASSISTANCE SERVICES                                                   21.6%                     21.6%

TOLL
IntraLATA MTS                                                                   21.6%                     21.6%
MaxiMizer 800 -Registered Trademark-                                            21.6%                     21.6%
OutWATS                                                                         21.6%                     21.6%

OPTIONAL TOLL CALLING PLANS
1+SAVER -SM-                                                                    21.6%                     21.6%

PLEXAR -Registered Trademark-
Plexar I -Registered Trademark-                                                 21.6%                     21.6%
Plexar II -Registered Trademark-                                                21.6%                     21.6%
Plexar Custom                                                                   21.6%                     21.6%
</TABLE>
*Some Services are not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                    PAGE 4 OF 6

<TABLE>
<CAPTION>
                                                                                    RESALE DISCOUNTS
                                                                           RECURRING               NON-RECURRING
<S>                                                                          <C>                       <C>
PRIVATE LINE
Analog Private Lines                                                         21.6%                     21.6%
Business Video Service                                                       21.6%                     21.6%
DOVLink                                                                      21.6%                     21.6%
Frame Relay                                                                  21.6%                     21.6%
MegaLink I -Registered Trademark-                                            21.6%                     21.6%
MegaLink II -Registered Trademark-                                           21.6%                     21.6%
MegaLink III -Registered Trademark-                                          21.6%                     21.6%
MicroLink I -Registered Trademark-                                           21.6%                     21.6%
Network Reconfiguration Service                                              21.6%                     21.6%
</TABLE>

*Some Services are not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                    PAGE 5 OF 6

    SOUTHWESTERN BELL'S RESALE TELECOMMUNICATIONS SERVICES* LIST - RESIDENCE
                                     TEXAS

<TABLE>
<CAPTION>
                                                                                                  RESALE DISCOUNTS
                                                                                          RECURRING            NON-RECURRING
<S>                                                                                        <C>                    <C>
LOCAL EXCHANGE SERVICE
Life Line and Link Up America Services                                                     21.6%                  21.6%
Residence 1 Party                                                                          21.6%                  21.6%
Residence Measured                                                                         21.6%                  21.6%

EXPANDED LOCAL CALLING
Expanded Local Calling (Mandatory)                                                         21.6%                  21.6%
Mandatory Extended Area Calling Service (EACS)- 1 Party                                    21.6%                  21.6%
Mandatory EACS - One element measured, 1 Party                                             21.6%                  21.6%
EMS - Optional                                                                             21.6%                  21.6%
Extended Area Calling Service - Optional                                                   21.6%                  21.6%

VERTICAL SERVICES
Anonymous Call Rejection                                                                   21.6%                  21.6%
Auto Redial                                                                                21.6%                  21.6%
Auto Redial - Usage Sensitive                                                              21.6%                  21.6%
Call Blocker                                                                               21.6%                  21.6%
Call Forwarding                                                                            21.6%                  21.6%
Call Forwarding - Busy Line                                                                21.6%                  21.6%
Call Forwarding - Busy Line/Don't Answer                                                   21.6%                  21.6%
Call Forwarding - Don't Answer                                                             21.6%                  21.6%
Call Return                                                                                21.6%                  21.6%
Call Return - Usage Sensitive                                                              21.6%                  21.6%
Call Trace                                                                                 21.6%                  21.6%
Call Waiting                                                                               21.6%                  21.6%
Calling Name                                                                               21.6%                  21.6%
Calling Number                                                                             21.6%                  21.6%
ComCall -Registered Trademark-                                                             21.6%                  21.6%
Personalized Ring (1 dependent number)                                                     21.6%                  21.6%
Personalized Ring (2 dependent numbers - 1st number)                                       21.6%                  21.6%
Personalized Ring (2 dependent numbers - 2nd number)                                       21.6%                  21.6%
Priority Call                                                                              21.6%                  21.6%
Remote Access to Call Forwarding                                                           21.6%                  21.6%
Selective Call Forwarding                                                                  21.6%                  21.6%
Simultaneous Call Forwarding                                                               21.6%                  21.6%
</TABLE>

*Some Services are not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                    PAGE 6 OF 6

<TABLE>
<CAPTION>
                                                                                   RESALE DISCOUNTS
                                                                           RECURRING              NON-RECURRING
<S>                                                                          <C>                      <C>
VERTICAL SERVICES (cont.)
Speed Calling 8                                                              21.6%                    21.6%
Three Way Calling                                                            21.6%                    21.6%

DIRECTORY ASSISTANCE SERVICES                                                21.6%                    21.6%

ISDN
Digiline-SM-                                                                 21.6%                    21.6%

OTHER
Customer Alerting Enablement                                                 21.6%                    21.6%
Grandfathered Services                                                       21.6%                    21.6%
Hot Line                                                                     21.6%                    21.6%
Local Operator Assistance Service                                            21.6%                    21.6%
Bundled Telecommunications Services (e.g., the                               21.6%                    21.6%
Works)
Promotions (Greater than 90 days)                                            21.6%                    21.6%
Preferred Number Service                                                     21.6%                    21.6%
TouchTone                                                                    21.6%                    21.6%
Voice Dial                                                                   21.6%                    21.6%
Warm Line                                                                    21.6%                    21.6%

TOLL
Home 800-SM-                                                                 21.6%                    21.6%
IntraLATA MTS                                                                21.6%                    21.6%
</TABLE>

*Some Services are not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                  PAGE 1 OF 1

                                   EXHIBIT B

                  SOUTHWESTERN BELL'S RESALE OTHER SERVICES* LIST
                                     TEXAS

<TABLE>
<CAPTION>
                                                                                       RESALE DISCOUNTS
                                                                             RECURRING               NON-RECURRING
                                                                             ---------               -------------
<S>                                                                          <C>                     <C>
900/976 Call Restriction                                                        21.6%                     21.6%
976 Information Delivery Service                                                 0%                        0%
Access Services                                                                  0%                        0%
Additional Directory Listings                                                   21.6%                     21.6%
Bill Plus                                                                        5%                        5%
Cellular Mobile Telephone Interconnection Services                               0%                        0%
Company Initiated Suspension Service                                             0%                        0%
Connections with Terminal Equipment and                                          0%                        0%
Communications Equipment
Consolidated Billing                                                             5%                        5%
Construction Charges                                                             0%                        0%
Customer Initiated Suspension Service                                            0%                        0%
Distance Learning                                                               21.6%                     21.6%
Exchange Connection Service                                                      0%                        0%
Maintenance of Service Charges                                                   0%                        0%
Shared Tenant Service                                                            0%                        0%
Telecommunications Service Priority Systems                                      0%                        0%
Toll Restriction                                                                21.6%                     21.6%
</TABLE>

*Some Services not available in all Areas.
Resale products available subject to state and federal rules, regulations and
tariffs.

<PAGE>

                                                                  PAGE 1 OF 1

                                   EXHIBIT C
                                APPENDIX RESALE
                                    TEXAS
                   OS/DA PRICING - BRANDING, RATE & REFERENCE

The following rates will apply for each service element:

--------------------------------------------------------------------------
A. CALL BRANDING

An initial non-recurring charge applies per TOPS switch, per
brand for the establishment of CLEC specific Call Branding.
A Per Call charge also applies. When there are subsequent
changes to the branding announcement, an additional non-
recurring charge will also apply per TOPS, per brand, for
each change.

                               Rate per initial load group   $1,081.00
                            Rate per load for Brand change   $1,081.00
                                                  Per Call    $0.0312
--------------------------------------------------------------------------
B. DIRECTORY ASSISTANCE RATE/REFERENCE
   INFORMATION

An initial non-recurring charge applies per TOPS switch, per
rate schedule for the initial load of CLEC's DA Services
Rate/Reference Information. An additional non-recurring
charge applies per TOPS switch, per rate schedule for each
subsequent change to Rate/Reference Information.

                                    *Rate per initial load   $1,958.67
                           Rate per subsequent rate change     $934.44
                      Rate per subsequent reference change     $934.44
--------------------------------------------------------------------------
C. OPERATOR SERVICES RATE/REFERENCE
   INFORMATION

An initial non-recurring charge applies per TOPS switch, per
rate schedule for the initial load of CLEC's Operator
Services Rate/Reference Information. An additional non-
recurring charge applies per TOPS switch, per rate schedule
for each subsequent change to Rate/Reference Information.

                                    *Rate per initial load   $1,958.67
                           Rate per subsequent rate change     $934.44
                      Rate per subsequent reference change     $934.44
--------------------------------------------------------------------------

* Initial Load Charges for Rate/Reference (B and C) when ordered together,
will incur a single Initial Load Charge. In cases where Rate/Reference
information is ordered separately, individual Initial Load charges will apply
to each order.

<PAGE>

                                                                 PAGE 1 OF 11

                         APPENDIX OSS-RESALE

<PAGE>
                                                                  PAGE 2 OF 11

                                 APPENDIX OSS

                ACCESS TO OPERATIONS SUPPORT SYSTEMS FUNCTIONS

1.   GENERAL CONDITIONS

     1.1 This Appendix sets forth the terms and conditions under which SWBT
provides nondiscriminatory access to SWBT's operations support systems (OSS)
"functions" to CLEC for pre-ordering, ordering, provisioning, maintenance /
repair, and billing.

     1.2 Resale functions will be accessible via electronic interface, as
described herein, where such functions are available. Manual access is available
for all pre-ordering, ordering, provisioning, and billing functions via the
Local Service Center (LSC). Repair and maintenance functions are available in a
manual mode through the Local Operations Center (LOC).

     1.3 CLEC agrees to utilize SWBT electronic interfaces, as described herein,
only for the purposes of establishing and maintaining Resale services through
SWBT. In addition, CLEC agrees that such use will comply with the summary of
SWBT's Operating Practice No. 113, Protection of Electronic Information, titled
Competitive Local Exchange Carrier Security Policies and Guidelines. Failure to
comply with such security guidelines may result in forfeiture of electronic
access to OSS functionality.'

     1.4 CLEC's access to pre-order functions described in 2.2.2 will only be
utilized to view Customer Proprietary Network Information (CPNI) of another
carrier's end-user where CLEC has obtained an authorization for release of CPNI
from the end-user and has obtained an authorization to become the end user's
local service provider. The authorization for release of CPNI must substantially
reflect the following:

     1.4.1 "This written consent serves as instruction to all holders of my
local exchange telecommunications Customer Proprietary Network Information
(CPNI) and account identification information to provide such information to the
undersigned. Specifically, I authorize disclosure of my account billing name,
billing address, and directory listing information, and CPNI including, service
address, service and feature subscription, long distance carrier identity, and
pending service order activity. This Authorization remains in effect until such
time that I revoke it directly or appoint another individual/company with such
capacity or undersigned receives notice to disconnect my local exchange service
or notice that a service disconnect has been performed. At and from such time,
this Authorization is null and void."

Or
     1.4.2 Authorization for change in local exchange service and release of
CPNI with documentation that adheres to all requirements of state and federal
law, as applicable.

<PAGE>

                                                                  PAGE 3 OF 11

     1.5 By utilizing electronic interfaces to access OSS functions, CLEC agrees
to perform accurate and correct ordering as it relates to the application of
Resale rates and charges where they are subject to the terms of this Agreement
and applicable SWBT tariffs. All exception handling must requested manually from
the LSC.

     1.6 In areas where Resale order functions are not available via an
electronic interface for the pre-order, ordering and provisioning processes,
SWBT and CLEC will use manual processes. Should SWBT develop electronic
interfaces for these functions for itself, SWBT will make electronic access
available to CLEC.

     1.7 The Information Services (I.S.) Call Center provides a technical
support function for electronic interfaces. CLEC will also provide a single
point of contact for technical issues related to the electronic interfaces.

     1.8 SWBT and CLEC will establish interface contingency plans and disaster
recovery plans for the pre-order, ordering and provisioning of Resale services.

     1.9 SWBT reserves the right to modify or discontinue the use of any system
or interface as it deems appropriate. Provided however,

         (a) SWBT shall provide CLEC with at least 90 days prior written notice
of any planned discontinuance and provide CLEC with a functionally equivalent
interface to access the OSS functions for any system or interface that is
discontinued. Upon CLEC request, SWBT shall also provide a reasonable transition
period.

         (b) SWBT shall provide CLEC with reasonable prior written notice of any
significant system modifications.

     1.10 If CLEC elects to utilize electronic interfaces based upon industry
guidelines for Resale, SWBT and CLEC agree to participate in the Order and
Billing Forum (OBF) and the Telecommunications Industry Forum (TCIF) to
establish and conform to uniform industry guidelines for electronic interfaces
for pre-order, ordering, and - provisioning. Neither Party waives its rights as
participants in such forums or in the implementation of the guidelines. TO
achieve system functionality as quickly as possible, the Parties acknowledge
that SWBT may deploy these interfaces with requirements developed in advance of
industry guidelines. Thus, subsequent modifications may be necessary to comply
with emerging guidelines. CLEC and SWBT are individually responsible for
evaluating the risk of developing their respective systems in advance of
guidelines and agree to support their own system modifications to comply with
new requirements. In addition, SWBT has the right to define LSR Usage
requirements according to the General Section 1.0, paragraph 1.4 of the
practices in the OBF Local Service Ordering Guidelines (LSOG), which states:
"Options described in this practice may not be applicable to individual
providers tariffs; therefore, use of either the field or valid entries within
the field is based on the providers tariffs/practices."

<PAGE>

                                                                  PAGE 4 OF 11

     1.11 Due to enhancements and on-going development of access to SWBT's OSS
functions, certain interfaces described in this Appendix may be modified,
temporarily unavailable or may be phased out after execution of this Appendix.
In compliance with section 1.9 of this Appendix, SWBT agrees that interfaces
phased out will be accompanied with proper notice.

     1.12 CLEC is responsible for obtaining operating system software and
hardware to access OSS functions as specified in the document "Requirements for
Access to Southwestern Bell OSS Functions."

2.   PRE-ORDER

     2.1 SWBT will provide real time access to pre-order functions to support
CLEC ordering of Resale services. The Parties acknowledge that ordering
requirements necessitate the use of current, real time pre-order information to
accurately build service orders. The following lists represent pre-order
functions that are available to CLEC so that CLEC order requests may be created
to comply with SWBT ordering requirements.

     2.2 PRE-ORDERING FUNCTIONS FOR RESALE SERVICES INCLUDE:

         2.2.1 Features and services available at a valid service address (as
applicable);

         2.2.2 Access to SWBT retail or resold customer proprietary network
INFORMATION (CPNI) for preordering will include: billing name, service address,
billing address, service and feature subscription, directory listing
information, long distance carrier identity, and pending service order activity
(CLEC agrees that CLEC's representatives will not access the information
specified in this subsection until after the customer requests that his or her
local exchange service provider be changed to CLEC, and a customer authorization
for release of CPNI complies with conditions as described in section 1.4 of this
Appendix.)

         2.2.3 A telephone number (if the customer does not have one assigned)
with the customer on-line;

         2.2.4 Service availability dates to the customer;

         2.2.5 Information regarding whether dispatch is required;

         2.2.6 Primary Interexchange Carrier (PIC) options for intraLATA toll
(when available) and interLATA toll;

         2.2.7 Service address verification.

     2.3. ELECTRONIC ACCESS TO PRE-ORDER FUNCTIONS: SWBT will provide CLEC
access to one or more of the following systems:

<PAGE>

                                                                  PAGE 5 OF 11

         2.3.1 RESALE SERVICES PRE-ORDER SYSTEM AVAILABILITY:

            2.3.1.1 Residential Easy Access Sales Environment (R-EASE): R-EASE
is an ordering entry system through which SWBT provides CLEC access to the
functions of preordering when R-EASE is utilized to order SWBT Residential
Resale Services.

            2.3.1.2 Business Easy Access Sales Environment (B-EASE): B-EASE is
an ordering entry system through which SWBT provides CLEC access to the
functions of preordering when such access is utilized to order SWBT-Business
Resale Services.

            2.3.1.3 DataGate is a transaction-based data query system through
which SWBT provides CLEC access to pre-ordering functions. This gateway shall be
a Transmission Control Protocol/Internet Protocol (TCP/IP) gateway and will
allow CLEC to access the preorder functions for Resale services by CLEC
developing its own end-user interface. SWBT and CLEC agree to cooperate in
developing and implementing an electronic communication interface that will be
consistent with industry guidelines developed by the OBF and the TCIF, assuming
they are different from that which SWBT is providing.

            2.3.1.4 Verigate is an end-user interface developed by SWBT that
provides access to the pre-ordering functions for Resale Services. Verigate may
be used in connection with electronic or manual ordering. Verigate is accessible
via Toolbar.

         2.3.2 OTHER PRE-ORDER FUNCTION AVAILABILITY:

            2.3.2.1 Where pre-ordering functions are not available
electronically CLEC will manually request this information from SWBT's LSC for
inclusion on the service order request.

            2.3.2.2 In addition to electronic interface access to pre-order
information, upon request but not more frequently than once a month, SWBT will
provide CLEC certain pre-order information in batch transmission for the
purposes of back-up data for periods of system unavailability. Specifically, the
following database information may be electronically provided, Street Address
Guide (SAG) Guide, Service and Feature Availability by NXX and a PIC list, to
support address verification, service and feature availability and PIC
availability, respectively. The parties recognize such information must be used
to construct order requests only in exception handling situations.

3.   ORDERING/PROVISIONING

     3.1 SWBT provides real time access to ordering functions (as measured from
the time SWBT receives accurate service requests from the interface) to support
CLEC provisioning of Resale services via one or more electronic interfaces. To
order Resale services, CLEC will format the service request to identify what
features, services, or elements it wishes SWBT to

<PAGE>

                                                                  PAGE 6 OF 11

provision in accordance with SWBT ordering requirements. SWBT will provide CLEC
access to one or more of the following systems or interfaces:

     3.2 RESALE SERVICES ORDER REQUEST SYSTEM AVAILABILITY:

         3.2.1 R-EASE is available for the generation of Residential Resale
services orders. Ordering flows are available via this system.

         3.2.2 B-EASE is available for the generation of Business Resale
services orders. Ordering flows are available via this system.

         3.2.3 Service Order Retrieval and Distribution (SORD) interface
provides CLECs with the ability to create certain complex Resale orders that
cannot be ordered through EASE, EDI or LEX In addition, the SORD interface
supports the modification of Service Orders submitted electronically by CLEC.
Should CLEC elect to correct service order errors via SORD, CLEC will be
responsible for correcting all errors occurring prior to completion, on any
orders submitted electronically by CLEC.

         3.2.4 SWBT makes available to CLEC an Electronic Data Interchange (EDI)
interface for transmission of SWBT ordering requirements via formats provided on
the Local Service Request (LSR) as defined by the Ordering and Billing Forum
(OBF) and via EDI mapping as defined by TCIF. In ordering and provisioning
Resale, CLEC and SWBT will utilize industry guidelines developed by OBF and TCIF
EDI to transmit data based upon SWBT's Resale ordering requirements.

         3.2.5 LEX is an end-user interface that provides access to the ordering
functions for Resale Services.

     3.3 PROVISIONING FOR RESALE SERVICES: SWBT will provision Resale Services
as detailed in CLEC order requests. Access to status on such orders will be
provided via the following electronic interfaces:

         3.3.1 Order Status will allow CLEC to check service order status.
Order Status is accessible via SWBT Toolbar. In addition, pending orders can be
viewed in SORD.

         3.3.2 In cases of EDI ordering, SWBT will provide CLEC with an EDI
interface for transferring and receiving orders, Firm Order Confirmation (FOC),
service completion, and, as available, other provisioning data and information.
SWBT will provide CLEC with a FOC for each Resale service request. The FOC will
include: purchase order number, telephone number, Local Service Request number,
due date, Service Order number, and completion date. Upon work completion, SWBT
will provide CLEC with an 855 EDI transaction-based Order Completion that states
when that order was completed. CLEC may submit supplement requests via the 860
EDI transaction, and, where available, SWBT will provide CLEC an 865 EDI
transaction-based Completion notice.

<PAGE>

                                                                  PAGE 7 OF 11

            3.3.2.1 The Parties agree that the following timelines are
applicable to electronically generated service orders with errors corrected
via SORD: 1) Errors occurring between application and distribution must be
corrected within 5 hours for a simple order and within 24 hours for a complex
order, 2)Error Service Order Image (ESOI) errors must be corrected within 3
business hours. Service orders will be excluded from calculation of the results
for all related performance measurements, described in Appendix Performance
Measurements, if CLEC fails to correct service order errors within the
timeframes specified above. Additionally, service orders, with errors that occur
after order generation, but prior to distribution will not qualify for a SBC
issued FOC.

         3.3.3 In cases of EDI ordering, SWBT will provide CLEC with an EDI
interface for transferring and receiving orders, Firm Order Confirmation (FOC),
service completion, and, as available, other provisioning data and information.
SWBT will provide CLEC with a FOC for each Resale service request. The FOC will
include: purchase order number, telephone number, Local Service Request number,
due date, Service Order number, and completion date. Upon work completion, SWBT
will provide CLEC with an 855 EDI transaction-based Order Completion that states
when that order was completed. CLEC may submit supplement requests via the 860
EDI transaction, and, where available, SWBT will provide CLEC an 865 EDI
transaction-based Completion notice.

         3.3.4 A file transmission may be provided to confirm order completions
for REASE or B-EASE order processing. This file will provide service order
information of all distributed and completed orders for CLEC.

            3.3.4.1 The Parties agree that the following timelines are
applicable to electronically generated service orders with errors corrected via
SORD: 1) Errors occurring between application and distribution must be corrected
prior to releasing the order from EASE; 2) Error Service Order Image (ESOI)
errors must be corrected within 3 business hours Service orders will be excluded
from calculation of the results for the related performance measurements,
described in Appendix Performance Measurements, if CLEC fails to correct service
order errors within the timeframes specified above. Additionally, service orders
with errors that occur after order generation, but prior to distribution will
not qualify for a SBC issued FOC.

4.   MAINTENANCE/REPAIR

     4.1 Two real time electronic interfaces are accessible to place, and check
the status of trouble reports for both Resales. Upon request, CLEC may access
these functions via the following methods:

         4.1.1 Trouble Administration (TA) system access provides CLEC with SWBT
software that allows CLEC to submit trouble reports and subsequently check
status on trouble reports for CLEC end-users. TA will provide the ability to
review the maintenance history of a converted Resale CLEC account. TA is
accessible via SWBT Toolbar.

<PAGE>
                                                                   PAGE 8 OF 11

         4.1.2 Electronic Bonding Interface (EBI) is an interface that is
available for trouble report submission and status updates. This EBI conforms to
ANSI guidelines T1:227:1995 and T1.228:1995, Electronic Communications
Implementation Committee (ECIC) Trouble Report Format Definition (TFRD) Number I
as defined in ECIC document ECIC/TRA/95-003, and all guidelines referenced
within those documents, as mutually agreed upon by CLEC and SWBT. Functions
currently implemented will include Enter Trouble, Request Trouble Report Status,
Add Trouble Information, Modify Trouble Report Attributes, Trouble Report
Attribute Value Change Notification, and Cancel Trouble Report, as explained in
6 and 9 of ANSI T1.228:1995. CLEC and SWBT will exchange requests over a
mutually agreeable X.25-based network.

5.   BILLING

     5.1 SWBT shall bill CLEC for resold services. SWBT shall send associated
billing information to CLEC as necessary to allow CLEC to perform billing
functions. At minimum SWBT will provide CLEC billing information in a paper
format or via magnetic tape, as agreed to between CLEC and SWBT.

     5.2 ELECTRONIC ACCESS TO BILLING INFORMATION FOR RESALE SERVICES WILL ALSO
BE AVAILABLE VIA THE FOLLOWING INTERFACES:

         5.2.1 CLEC may receive Bill Plus -TM-, an electronic version of their
bill as described in and in accordance with SWBT's Local Exchange Tariff.

         5.2.2 CLEC may receive a mechanized bill format via the EDI 811
transaction set.

         5.2.3 CLEC may also view billing information through the Bill
Information interface. Bill Information will be accessible via SWBT Toolbar.

         5.2.4 SWBT shall provide CLECs a Usage Extract Feed electronically, on
a daily basis, with information on the usage billed to its accounts for resale
services in the industry standardized Exchange Message Record (EMR) format,

         5.2.5 CLEC may receive Local Disconnect Report records (via CARE
records) electronically that indicate when CLEC's customers change their
Competitive Local Exchange Carrier.

6.   REMOTE ACCESS FACILITY

     6.1 CLEC must access the following SWBT OSS interfaces via a CLEC Remote
Access Facility (LRAF) located in Dallas, Texas: R-EASE; B-EASE; DataGate;
EDI-Ordering; SORD Supplement and via Toolbar, Trouble Administration, Order
Status, Verigate, LEX, and

<PAGE>

                                                                   PAGE 9 OF 11

Bill Information. Connection to the LRAF will be established via a "port" either
through dial-up or direct connection as described in Section 6.2. CLEC may
utilize a port to access these interfaces to perform the supported functions in
any SWBT state where CLEC has executed an Appendix OSS and purchases System
Access in that state.

     6.2 CLEC may use three types of access: Switched, Private Line, and Frame
Relay. For Private Line and Frame Relay "Direct Connections," CLEC shall provide
its own router, circuit, and two Channel Service Units/Data Service Units
(CSU/DSU). The demarcation point shall be the router interface at the LRAF.
Switched Acces "Dial-up Connections" require CLEC to provide its own modems and
connection to the SWBT LRAF. CLEC shall pay the cost of the call if Switched
Access is used.

     6.3 CLEC shall use TCP/IP to access SWBT OSS via the LRAF. In addition,
each CLEC shall have one valid Internet Protocol (IP) network address. CLEC
shall maintain a user-id /password unique to each individual for accessing a
SWBT OSS on CLEC's behalf. CLEC shall provide estimates regarding its volume of
transactions, number of concurrent users, desired number of private line or
dial-up (switched) connections, and length of a typical session.

     6.4 CLEC shall attend and participate in implementation meetings to discuss
CLEC LRAF access plans in detail and schedule testing of such connections.

7.   OPERATIONAL READINESS TEST (ORT) FOR ORDERING/PROVISIONING AND REPAIR/
     MAINTENANCE INTERFACES

     7.1 Prior to live access to interface functionality, the Parties must
conduct Operational Readiness Testing (ORT), which will allow for the testing of
the systems, interfaces, and processes for the OSS functions ORT will be
completed in conformance with agreed upon processes and implementation dates.

     7.2 Prior to live system usage, CLEC must complete user education classes
for SWBT-provided interfaces that affect the SWBT network. Classes are
train-the-trainer format to enable CLEC to devise its own course work for its
own employees. Charges will apply for each class. Classes will be required for
R-EASE, B-EASE, LEX, SORD Supplement and Trouble Administration. Optional
classes will be available for Order Status and Verigate. Classes are
train-the-trainer format to enable CLEC to devise its own coursework for its own
employees. Charges apply to training delivery. Schedules will be made available
upon request and are subject to change, with class lengths varying. Ongoing
class schedules may be requested from the CLEC's account manager.

<PAGE>
                                                                 PAGE 10 OF 11

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Training Rates        5 day      4.5 day    4 day      3.5 day    3 day     2.5 day      2 day    1.5 day     1 day     1/2 day
                      class       class     class       class     class      class       class     class      class     class
-------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>        <C>        <C>        <C>        <C>       <C>         <C>        <C>       <C>         <C>
1 to 5 students       $4,050     $3,650     $3,240     $2,835     $2,430     $2,025     $1,620     $1,215      $810      $405
6 students            $4,860     $4,380     $3,890     $3,402     $2,915     $2,430     $1,945     $1,455      $970      $490
7 students            $5,670     $5,100     $4,535     $3,969     $3,400     $2,835     $2,270     $1,705     $1,135     $570
8 students            $6,480     $5,830     $5,185     $4,536     $3,890     $3,240     $2,590     $1,950     $1,300     $650
9 students            $7,290     $6,570     $5,830     $5,103     $4,375     $3,645     $2,915     $2,190     $1,460     $730
10 students           $8,100     $7,300     $6,480     $5,670     $4,860     $4,050     $3,240     $2,430     $1,620     $810
11 students           $8,910     $8,030     $7,130     $6,237     $5,345     $4,455     $3,565     $2,670     $1,780     $890
12 students           $9,720     $8,760     $7,780     $6,804     $5,830     S4,860     $3,890     $2,920     $1,945     $970

--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

     7.3 A separate agreement will be required as a commitment to pay for a
specific number of CLEC students in each class. CLEC agrees that charges will be
billed by SWBT and CLEC payment is due 30 days later. CLEC agrees that personnel
from other competitive Local Service Providers may be scheduled into any class
to fill any seats for which the CLEC has not contracted. Class availability is
first-come, first served with priority given to CLECs who have not yet attended
the specific class.

     7.4 Class dates will based upon SWBT availability and will be coordinated
between CLEC, Account Manager and Product Management.

     7.5 CLEC agrees to pay cancellation fee of the full price noted in the
separate agreement if CLEC cancels scheduled classes less than two weeks prior
to the scheduled start date. CLEC agrees to provide to SWBT completed
registration forms for each student no later than one week prior to the
scheduled training class.

     7.6 CLEC agrees that CLEC personnel attending classes are to utilize only
training databases and training presented to them in class. Attempts to access
any other SWBT or SBC system are strictly prohibited.

     7.7 CLEC further agrees that training material, manuals and instructor
guides can be duplicated only for internal use for the purpose of training
employees to utilize capabilities SWBT's OSS in accordance with this Appendix.

8.   RATES

     8.1 CLEC requesting access to one or more of the SWBT OSS functions (i.e.,
pre-ordering, ordering / provisioning, maintenance / repair, billing) agrees to
pay the following rate:

     System Access                         $ 3,200.00/ month

     8.2 CLEC requesting functions via interfaces that require connection to the
Remote Access Facility, as described in section 6, agrees to pay the following
rate(s) depending upon on method of access utilized:

<PAGE>

                                                                 PAGE 11 OF 11

<TABLE>
<CAPTION>

             Remote Access Facility Access Methods
            <S>                                       <C>
             Direct Connection Per Port                $ 1,505.00/ month
             Dial Up Per Port                          $   301.00/ month
</TABLE>

     8.3 CLEC requesting the Bill Plus-TM- , as described in 5.2.1, agrees to
pay applicable tariffed rate, less Resale discount.

     8.4 CLEC requesting the billing function for Usage Billable Records, as
described in 5.2.4, agrees to pay $.003 per message transmitted.

     8.5 CLEC requesting the Local Disconnect Report, as described in 5.2.5,
agrees to pay $0.10 per record transmitted.

     8.6 Should unforeseen modifications and costs to provision OSS functions
become required by SWBT or industry guidelines, or by regulatory rulings, SWBT
reserves the right to modify its rate structure. In addition, should CLEC
request custom development of an exclusive interface to support OSS functions,
such development will be considered by SWBT on an Individual Case Basis (ICB)
and priced as such.

9.   EFFECTIVE DATE, TERM

     9.1 Whereas CLEC is currently operational under an existing, approved
Interconnection Agreement, this Appendix OSS will be effective, pending
commission approval, 10 days after it is filed with the state commission.
Alternatively, this Appendix will be effective upon approval by the state
commission when it is approved as a part of the Interconnection Agreement.

10.  APPLICABILITY OF OTHER RATES, TERMS AND CONDITIONS

     This appendix, and every service provided hereunder, shall be subject to
all rates, terms and conditions contained in this Agreement or other appendices
or attachments to this Agreement which are legitimately related to such service;
and all such rates, terms and conditions are incorporated by reference herein
and as part of every service provided hereunder. Without limiting the general
applicability of the foregoing, the following terms and conditions of the
General Terms and Conditions of the Resale Agreement are specifically agreed by
the Parties to be legitimately related to, and to be applicable to, each service
provided hereunder description of rates and charges for services, terms and
conditions for resale of services, responsibilities of SWBT, additional
responsibilities of the parties, additional responsibilities of CLEC,
termination of service to CLEC, changes in subscriber carrier selection,
notices, effective date, terra, disclaimer of warranties, limitation of
liability, force majeure, nondisclosure, dispute resolution, verification
reviews, compliance with laws, intervening law and preservation of rights.

<PAGE>

                                                                   PAGE 1 OF 21

                             APPENDIX
                      PERFORMANCE MEASUREMENTS

<PAGE>

                                                                   PAGE 2 OF 21

                     APPENDIX PERFORMANCE MEASUREMENTS

1.0     INTRODUCTION

        This Appendix Performance Measurements contains Performance Criteria
        which applies to resold services. The measurements set forth in this
        Appendix illustrates non-discriminatory access to SWBT's Operations
        Support Systems (OSS) and covers each of the five recognized OSS
        functions (pre-ordering, ordering, provisioning, maintenance and repair,
        and billing).

        The performance measurements contained herein, notwithstanding any
        provisions in any other appendix in this Agreement, are not intended to
        create, modify or otherwise affect parties' rights and obligations. The
        existence of any particular performance measure, or the language
        describing that measure, is not evidence that CLEC is entitled to any
        particular manner of access, nor is it evidence that SWBT is limited to
        providing any particular manner of access. The parties' rights and
        obligations to such access are defined elsewhere, including the relevant
        laws, FCC and PUC. decisions/regulations, tariffs, and within this
        agreement.

2.0     DEFINITIONS

        When used in this Appendix, the following terms will have the meanings
        indicated:

        2.1     Performance Criteria means the target level of SWBT performance
                specified for each Performance Measurement. Generally, the
                Performance Measurements contained in this Appendix specify
                performance equal to that which SWBT achieves for itself in
                providing. equivalent end user, service as the Performance
                Criterion.

        2.2     For certain Performance Measurements, a specific quantitative
                target has been adopted as the Performance Criterion. The
                determination of compliance is through the comparison of the
                measured performance delivered to CLEC and the applicable
                benchmark.

        2.3     Performance Measures means the set of measures listed in all
                of section 6.0 of this Appendix.

3.0     SPECIFIED PERFORMANCE STANDARDS

        3.1     SWBT will meet the Performance Criteria contained in this
                Appendix, except in those instances where its failure to do so
                is a result of a) the CLEC's failure to perform any of its
                obligations set forth in this Agreement or under the Act, or
                Texas law b) any delay, act or failure to act by an end user,
                agent or subcontractor of the CLEC, c) any Force Majeure Event,
                d) or non-SWBT

<PAGE>

                                                                   PAGE 3 OF 21

                problems associated with third party systems or equipment, which
                could not have been avoided by SWBT in exercise of reasonable
                diligence. Provided, however, the third party exclusion will not
                be raised by SWBT more than three times within a calendar year.

4.0     RECORDS AND REPORTS

        4.1     SWBT will not levy a separate charge for provision of the data
                to CLEC called for under this Appendix. Notwithstanding other
                provisions of this Agreement, the Parties agree that such data
                and associated records will be deemed Proprietary Information.

        4.2     Reports are to be made available to the CLEC by the 20th day
                following the close of the calendar month. If the 20th falls on
                a weekend or holiday, the reports will be made available the
                next business day.

        4.3     CLEC will have access to monthly reports through an interactive
                Website.

        4.4     CLEC and SWBT will consult with one another and attempt in good
                faith to resolve any issues regarding the accuracy or integrity
                of data collected, generated, and reported pursuant to this
                Appendix.

        4.5     UNE measurement categories included on the reports will be zero
                filled as that data is not applicable to resold services.

5.0     INITIAL IMPLEMENTATION; DATA REVIEW

        5.1     Every six months, SWBT, CLEC, and Commission representatives
                will review the performance measures to determine whether
                measurements should be added, deleted, or modified; whether
                the applicable benchmark standards should be modified or
                replaced by parity standards. The criterion for
                reclassification of a measure shall be whether the actual
                volume of data points was lesser or greater than anticipated.
                Criteria for review of performance measures, other than for
                possible reclassification, shall be whether there exists an
                omission or failure to capture intended performance, and
                whether there is duplication of another measurement.
                Performance measures for 911 may be examined at any six month
                review to determine whether they should be reclassified. The
                first six month period will begin when an agreement is adopted
                by CLEC and approved by the Commission. Any changes to
                existing performance measures shall be by mutual agreement of
                the parties and, if necessary, with respect to new measures and
                their appropriate classification, by arbitration. The current
                measurements and benchmarks will be in effect until modified
                hereunder or expiration of the agreement.

<PAGE>

                                                                   PAGE 4 OF 21

6.0     PERFORMANCE MEASUREMENTS

        SWBT will provide the following Performance Measurements, in accordance
        with the Business Rules, under this Agreement:

        6.1     Pre-Ordering/Ordering

                6.1.1   MEASUREMENT - Average Response Time For OSS
                        Pre-Order Interfaces
                        DEFINITION - The average response time in seconds from
                        the SWBT side of the Remote Access Facility (RAF) and
                        return for pre-order interfaces (Verigate, DataGate and
                        EDI where the pre-order functionality is integrated) by
                        function.
                        CALCULATION - Sigma[Query Response Date & Time)-(Query
                        Submission Date & Time)] DIVIDED BY (Number of Queries
                        Submitted in Reporting Period)
                        REPORT STRUCTURE -
                        BENCHMARK: TO BE DETERMINED
                      - ADDRESS VERIFICATION
                      - REQUEST FOR TELEPHONE NUMBER
                      - REQUEST FOR CUSTOMER SERVICE RECORD (CSR)
                      - SERVICE AVAILABILITY
                      - SERVICE APPOINTMENT SCHEDULING (DUE DATE)
                      - DISPATCH REQUIRED
                      - PIC

                6.1.2   MEASUREMENT - Percent Response Received Within "X"
                        Seconds
                        DEFINITION - The average response time in seconds from
                        the SWBT side of the Remote Access Facility (RAF) and
                        return for pre-order interfaces (Verigate and DataGate)
                        by function.
                        CALCULATION - Sigma[(Query Response Date & Time) -
                        (Query Submission Date & Time)]/(Number of Queries
                        Submitted in Reporting Period)
                        REPORT STRUCTURE - Reported on a company basis by
                        interface for DATAGATE and VERIGATE.
                        BENCHMARK: TO BE DETERMINED
                      - ADDRESS VERIFICATION
                      - REQUEST FOR TELEPHONE NUMBER
                      - REQUEST FOR CUSTOMER SERVICE RECORD (CSR)
                      - SERVICE AVAILABILITY
                      - SERVICE APPOINTMENT SCHEDULING (DUE DATE)
                      - DISPATCH REQUIRED
                      - PIC

<PAGE>

                                                                   PAGE 5 OF 21

                6.1.3   MEASUREMENT - EASE Average Response Time
                        DEFINITION - Average screen to screen response from the
                        SWBT side of the Remote Access Facility (RAF) and return
                        CALCULATION - Sigma[(Query Response Date & Time) -
                        (Query Submission Date & Time)] DIVIDED BY (Number of
                        Queries Submitted in Reporting Period)
                        REPORT STRUCTURE - Reported for all CLECs and SWBT by
                        division name (CPU platform)
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.1.4   MEASUREMENT - OSS Interface Availability
                        DEFINITION - Percent of time OSS interface is available
                        compared to scheduled availability
                        CALCULATION - ((# scheduled system available hours -
                        unscheduled unavailable system hours) DIVIDED BY
                        scheduled system available hours)) * 100
                        REPORT STRUCTURE - Reported on a company basis by
                        interface e.g. EASE, DATAGATE, VERIGATE, LEX, EDI and
                        TOOLBAR. The RAF will be reported by CLEC
                        BENCHMARK - 99%

                6.1.5   MEASUREMENT - % Firm Order Confirmations (FOCs) Received
                        Within "X" Hours
                        DEFINITION - Percent of FOCs returned within a specified
                        time frame from receipt of service requests to return of
                        confirmation to CLEC All Res. And Bus. < 24 Hours
                        Complex Business - Negotiated
                        CALCULATION - (# FOCs returned within "X" hours DIVIDED
                        BY total FOCs sent) * 100.
                        REPORT STRUCTURE - Reported for CLEC and all CLECs. This
                        includes mechanized from EDI and LEX and manual (FAX or
                        phone orders). The FOC for EASE is considered to be at
                        the time the due date is negotiated and is not included
                        in the calculation.
                        BENCHMARK - 90% within "X" hours

                6.1.6   MEASUREMENT - Average Time To Return FOC
                        DEFINITION - The average time to return FOC from receipt
                        of service order to return of confirmation to CLEC
                        CALCULATION - Sigma[(Date and Time of FOC) - (Date and
                        Time of Order Acknowledgment)] DIVIDED BY (# of FOCs)
                        REPORT STRUCTURE - Reported for CLEC and all CLECs
                        BENCHMARK - 90% within "X" hours

                6.1.7   MEASUREMENT - Percent Mechanized Completions Returned
                        Within 1 Hour Upon Successful Execution Of The SORD
                        (BU340) Batch Cycle

<PAGE>

                                                                   PAGE 6 OF 21

                        Which Updates The Order Status, Indicating A Completion
                        Notice. The batch process executes at the following
                        times: 9:00 AM, 12:00 noon, 3:00 PM, 6:00 PM, 10:30 PM.
                        DEFINITION - % mechanized completions returned within 1
                        hour for EDI and LEX
                        CALCULATION - (# mechanized completions returned to CLEC
                        within 1 hour DIVIDED BY total completions) * 100
                        REPORT STRUCTURE - Reported for CLEC and all CLECs for
                        the electronic interfaces (EDI and LEX). The 1 hour
                        interval above is subject to change as the EDI polling
                        time frame changes
                        BENCHMARK - 97%

                6.1.8   MEASUREMENT - Average Time to Return Mechanized
                        Completions
                        DEFINITION - Average time required to return a
                        mechanized completion
                        CALCULATION - Sum [(Date and Time of Notice Of
                        Completion Issued to the CLEC) -(Date and Time of Work
                        Completion)]DIVIDED BY(# of Orders Completed).
                        REPORT STRUCTURE - Reported on CLEC and all CLECs for
                        the electronic interfaces (EDI and LEX). The 1 hour
                        interval is subject to change as the EDI polling time
                        frame changes
                        BENCHMARK - 97%

                6.1.9   MEASUREMENT - Percent Rejects
                        DEFINITION - The number of rejects compared to the
                        issued orders for the electronic interfaces (EDI, RMI
                        and LEX)
                        CALCULATION - (# of rejects DIVIDED BY total orders
                        issued) * 100
                        REPORT STRUCTURE - Reported on CLEC and all CLECs for
                        the electronic interfaces (EDI and LEX)
                        BENCHMARK - Not required (Diagnostic)

                6.1.10  MEASUREMENT - Percent Mechanized Rejects Returned Within
                        1 Hour Of The Start Of The EDI/LASR Batch Process
                        DEFINITION - Percent mechanized rejects returned within
                        1 hour of the start of the EDI/LASR batch process. The
                        EDI and LASR processes execute every two hours between
                        6:00 A.M. and 12:00 A.M
                        CALCULATION - (# mechanized rejects returned within 1
                        hour DIVIDED BY total rejects) * 100
                        REPORT STRUCTURE - Reported for CLEC and all CLECs for
                        the electronic interfaces (EDI and LEX
                        BENCHMARK - 97% within I hour of PON

                6.1.11  MEASUREMENT - Mean Time to Return Mechanized Rejects
                        DEFINITION - Average time required to return a
                        mechanized reject

<PAGE>

                                                                   PAGE 7 OF 21

                        CALCULATION - E[(Date and Time of Order Rejection) -
                        (Date and Time of Order Acknowledgment)]+ (# of Orders
                        Rejected)
                        REPORT STRUCTURE - Reported on CLEC and all
                        CLECs for the electronic interfaces (EDI and LEX)
                        BENCHMARK - 97% within I hour of PON

                6.1.12  MEASUREMENT - Mechanized Provisioning Accuracy
                        DEFINITION - Percent of mechanized orders completed as
                        ordered
                        CALCULATION - (# of order's completed as ordered DIVIDED
                        BY total orders) * 100
                        REPORT STRUCTURE - Reported by individual CLEC, CLECs
                        and SWBT
                        BENCHMARK - EQUAL TO SWBT's OWN

                6.1.13  MEASUREMENT - Order Process Percent Flow Through
                        DEFINITION - Percent of orders or LSRs from entry to
                        distribution that progress through SWBT ordering systems
                        excluding rejects
                        CALCULATION - (# of "good" orders that flow through
                        DIVIDED BY total orders) * 100
                        LASR orders that flow through are those orders that
                        go to the mechanized order generation (MOG). Total
                        orders are the sum or orders that go to the MOG and
                        those that go to folders for manual handling. EASE
                        orders that flow through are those orders that are
                        issued by using the PF11 key and do not go to the
                        error queue. The total orders are all PF11 issued
                        orders.
                        REPORT STRUCTURE - Reported by individual
                        CLEC, CLECs and SWBT for CLEC typed orders and LSC typed
                        orders
                        BENCHMARK - EQUAL TO SWBT'S OWN

        6.2     BILLING

                6.2.14  MEASUREMENT - Billing Accuracy
                        DEFINITION - SWBT performs three bill audits to
                        ensure the accuracy of the bills rendered to its
                        customers: CRIS and toll/usage. A sample of customer
                        accounts is selected on the basis of USOCs and
                        classes of service using CIDB. The purpose of this
                        audit is to assure that the monthly bill sent to the
                        CLECs for resale services is accurate according to
                        the rating of the USOCs and classes of service. For
                        all accounts that are audited, the numbers of bills
                        that have been released prior to correction are
                        counted as an error.
                        CALCULATION - (# of bills not corrected prior to
                        bill release DIVIDED BY total bills audited) * 100
                        REPORT STRUCTURE - Reported for aggregate of all CLECs
                        and SWBT for the CRIS, and Usage bill audits
                        BENCHMARK - EQUAL TO SWBT's OWN

<PAGE>

                                                                   PAGE 8 OF 21

                6.2.15  MEASUREMENT - Percent of Accurate And Complete Formatted
                        Mechanized Bills
                        DEFINITION - Measurements the % of monthly bills sent
                        to the CLECs via the mechanized EDI process that are
                        accurate and complete. if an error is found, a
                        decision must be made to correct the error before the
                        bill is rendered and jeopardize timeliness or to send
                        the bill out on time and in error.
                        CALCULATION - (Count of accurate and complete formatted
                        mechanized bills via EDI DIVIDED BY total # of
                        mechanized bills via EDI) * 100
                        REPORT STRUCTURE - Reported for CLEC and all CLECs
                        BENCHMARK - 99%

                6.2.16  MEASUREMENT - Percent Of Billing Records Transmitted
                        Correctly

                        DEFINITION - Measurements % of billing records
                        transmitted correctly on the usage extract feed. Usage
                        records are sent to the CLEC each day containing
                        information to enable the CLEC to more promptly bill
                        their own customers. Controls and edits within the
                        billing system uncover certain types of errors, which
                        are likely to appear on the usage records. When these
                        errors are uncovered, a new release of the program will
                        be written to insure that the error does not occur
                        again. Thus, an error that is reported in one month
                        should not occur the next month because the billing
                        program error would have fixed by the next month.
                        CALCULATION - (Count of billing records transmitted
                        correctly DIVIDED BY total billing records transmitted)
                        * 100
                        REPORT STRUCTURE - Reported for CLEC and all CLECs
                        BENCHMARK - 95%

                6.2.17  MEASUREMENT - Billing Completeness
                        DEFINITION - Percent of service orders that are posted
                        in the CRIS billing system prior to the customers bill
                        period
                        CALCULATION - (Count of service orders included in
                        current applicable bill period DIVIDED BY total service
                        orders in current applicable bill period) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.2.18  MEASUREMENT - Billing Timeliness (Wholesale Bill)
                        DEFINITION - Billing timeliness measurements the length
                        of time from message creation to the time it is made
                        available to the CLECS. Data is collected from a
                        transmission report obtained each month from CIDB. A
                        mechanized bill will be considered timely if it is sent
                        by midnight of the 6th work day after the end of the
                        bill period. Since

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                                                                   PAGE 9 OF 21

                        paper bills are handled via the same process that SWBT
                        uses for paper distribution no measurement is provided.
                        CALCULATION - (Count of bills released on time
                        DIVIDED BY total number of bills released) * 100
                        REPORT STRUCTURE - Reported for CLEC and all CLECs
                        BENCHMARK - 95% within the 6th work day

                6.2.19  MEASUREMENT - Daily Usage Feed Timeliness
                        DEFINITION - Usage information is sent to the CLECs on
                        a daily basis. This usage data must be sent to the CLEC
                        within 6 days in order to be considered timely.
                        CALCULATION - (Number of usage feeds transmitted on time
                        DIVIDED BY total number of usage feeds) * 100
                        REPORT STRUCTURE - Reported for CLEC and all CLECs
                        BENCHMARK - 95% within the 6th work day

                6.2.20  MEASUREMENT - Unbillable Usage
                        DEFINITION - Percentage of usage data that is
                        unbillable. For CRIS billing, the total dollars for
                        AMA/ECS write off is divided by the total CRIS AMA/ECS
                        billing.
                        CALCULATION - (Total unbillable usage DIVIDED BY total
                        usage)* 100
                        REPORT STRUCTURE - Reported for the aggregate of SWBT
                        and CLECs
                        BENCHMARK - Not required (Aggregate measurement)

        6.3     MISCELLANEOUS ADMINISTRATIVE

                6.3.21  MEASUREMENT - LSC Average Speed Of Answer
                        DEFINITION - The average time a customer is in queue.
                        The time begins when the customer enters the queue and
                        ends when the call is answered by a SWBT representative
                        CALCULATION - Total queue time DIVIDED BY total calls
                        REPORT STRUCTURE - Reported for all calls to the LSC by
                        operational separation and SWBT retail
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.3.22  MEASUREMENT - LSC Grade Of Service (GOS)
                        DEFINITION - % of calls answered by the LSC within a
                        specified period of time
                        CALCULATION - Total number of calls answered by
                        the LSC within a specified period of time DIVIDED BY
                        total number of calls answered by the LSC
                        REPORT STRUCTURE - Reported for all calls to the LSC
                        by operational separation and SWBT retail (RSC and BSC)
                        BENCHMARK - EQUAL TO SWBT'S OWN

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                                                                  PAGE 10 OF 21

                6.3.23  MEASUREMENT - Percent Busy in the LSC
                        DEFINITION - Percent of calls which are unable to reach
                        the Local Service Center due to a busy condition in the
                        ACD
                        CALCULATION - (Count of blocked calls DIVIDED BY total
                        calls offered) * 100
                        REPORT STRUCTURE - Reported for all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.3.24  MEASUREMENT - LOC Average Speed Of Answer
                        DEFINITION - The average time a customer is in queue.
                        The time begins when the customer enters the queue and
                        ends when the call is answered by a SWBT representative
                        CALCULATION - Total queue time DIVIDED BY total calls
                        REPORT STRUCTURE - Reported for all calls to the LOC for
                        all CLECs and SWBT retail
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.3.25  MEASUREMENT - LOC Grade Of Service (GOS)
                        DEFINITION - % of calls answered by the LOC within a
                        specified period of time
                        CALCULATION - Total number of calls answered by the LOC
                        within a specified period of time DIVIDED BY total
                        number of calls answered by the LOC
                        REPORT STRUCTURE - Reported for all calls to the LSC by
                        operational separation and SWBT retail (Repair Bureau)
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.3.26  MEASUREMENT - Percent Busy in the LOC
                        DEFINITION - Percent of calls which are unable to reach
                        the Local Operations Center due to a busy condition in
                        the ACD
                        CALCULATION - (Count of blocked calls DIVIDED BY total
                        calls offered) * 100
                        REPORT STRUCTURE - Reported for all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT'S OWN

        6.4     POTS - PROVISIONING

                6.4.27  MEASUREMENT - Mean Installation Interval
                        DEFINITION - Average business days from application date
                        to completion date for N, T, C orders excluding customer
                        caused misses and customer requested due dates that are
                        earlier or greater than 5 business days
                        CALCULATION - [Sigma (completion date - application
                        date)] DIVIDED BY (Total number of orders completed)

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                                                                 PAGE 11 OF 21

                        REPORT STRUCTURE - Reported for CLEC, all CLECs and
                        SWBT, by Field Work (FW), No Field Work (NFW), Business
                        and Residence
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.28  MEASUREMENT - Percent Installations Completed Within "X"
                        Business Days (POTS)
                        DEFINITION - Measure of orders completed within "X"
                        business days, 5 business days for FW and 3 business
                        days for NFW, of receipt of confirmed service order for
                        POTS resale service excluding orders where customer
                        requested a due date greater than "X" business days and
                        excluding orders with only customer caused misses
                        CALCULATION - (Count of N,T,C orders installed within
                        business 5 days DIVIDED BY total N,T,C orders)* 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by Field Work (FW), No Field Work (NFW), Business and
                        Residence
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.29  MEASUREMENT - Percent SWBT Caused Missed Due Dates
                        DEFINITION - Percent of N,T,C orders where installation
                        was not completed by the due date, excluding customer
                        caused misses
                        CALCULATION - (Count of N,T,C orders not completed by
                        the due date, excluding customer caused misses DIVIDED
                        BY total number of N,T,C orders) * 100
                        REPORT STRUCTURE - Reported for CLEC all CLECs and SWBT
                        by Field Work (FW), No Field Work (NFW), Business and
                        Residence
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.30  MEASUREMENT - Percent SWBT Missed Due Dates Due To Lack
                        Of Facilities
                        DEFINITION - Percent N,T,C orders with missed committed
                        due dates due to lack of facilities
                        CALCULATION - (Count N,T,C orders with missed committed
                        due dates due to lack of facilities DIVIDED BY total
                        N,T,C orders) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        Retail for POTS Reported for > 30 calendar days & > 90
                        calendar days (Calculated monthly based on posted
                        orders)
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.31  MEASUREMENT - Average Delay Days For Missed Due Dates
                        Due To Lack Of Facilities
                        DEFINITION - Average calendar days from due date to
                        completion date on company missed orders due to lack
                        of facilities
                        CALCULATION - Sigma(Completion date - committed order
                        due date) DIVIDED BY (# of posted orders)

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                                                                   PAGE 12 OF 21

                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        Retail POTS
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.32  MEASUREMENT - Average Delay Days for SWBT Caused Missed
                        Due Dates
                        DEFINITION - Average calendar days from due date to
                        completion date on company missed orders
                        CALCULATION - Sum (Completion date - committed order due
                        date) DIVIDED BY (# of posted orders)
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        Retail POTS,
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.33  MEASUREMENT - Percent SWBT Caused Missed Due Dates > 30
                        Days
                        DEFINITION - Percent of N,T,C orders where installation
                        was completed > 30 days following the due date,
                        excluding customer caused misses
                        CALCULATION - (Count of N, T, C orders completed > 30
                        days following the due date, excluding customer caused
                        misses DIVIDED BY total number of N, T, C orders) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        for Resold POTS
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.34  MEASUREMENT - Count of Orders Canceled After the Due
                        Date (SWBT Caused)
                        DEFINITION - Orders canceled after the due date caused
                        by SWBT
                        CALCULATION - (1-30, 31-90, and > 90 DIVIDED BY count
                        of canceled orders)
                        REPORT STRUCTURE - Reported for individual CLECs and the
                        aggregate of all CLECs
                        BENCHMARK - Not required (Diagnostic)

                6.4.35  MEASUREMENT - Percent Trouble Reports Within 10 Days Of
                        Install
                        DEFINITION - Percent of N, T, C orders that receive a
                        network customer trouble report not caused by CPE or
                        wiring within 10 calendar days of service order
                        completion excluding subsequent reports and all
                        disposition code "13" reports 6
                        CALCULATION - (Count of N, T, C orders that receive a
                        network customer trouble report within 10 calendar days
                        of service order completion DIVIDED BY total N,T,C
                        orders (excludes trouble reports received on the due
                        date))* 100

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                                                                   PAGE 13 OF 21

                        REPORT STRUCTURE - Reported for POTS Resale by CLEC,
                        total CLECs and SWBT retail by Field Work (FW), No Field
                        Work (NFW) business and residence
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.4.36  MEASUREMENT - Percent No Access (Trouble Reports With No
                        Access)
                        DEFINITION - Percent of Field Work (FW) orders with
                        a status of "No Access"
                        CALCULATION - Count of orders that are No Access DIVIDED
                        BY total orders
                        REPORT STRUCTURE - Reported for CLEC, total CLECs and
                        SWBT
                        BENCHMARK - Resale POTS parity between FW compared to
                        SWBT FW (N, T, C order types) and NFW compared to SWBT
                        Retail NFW (N,T,C order types).

        6.5     POTS - MAINTENANCE

                6.5.37  MEASUREMENT - Trouble Report Rate
                        DEFINITION - The number of customer trouble reports not
                        caused by CPE or wiring, CPE and disposition code "13"
                        reports within a calendar month per 100 lines
                        CALCULATION - [Total number of customer trouble reports
                        DIVIDED BY (total lines DIVIDED BY 100)].
                        REPORT STRUCTURE - Reported for POTS Resale trouble
                        reports by CLEC, all CLECs and SWBT retail (valid for
                        line counts of 300,000 or greater)
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.5.38  MEASUREMENT - Percent Missed Repair Commitments
                        DEFINITION - Percent of trouble reports not cleared by
                        the commitment time, excluding disposition code "13"
                        reports
                        CALCULATION - (Count of trouble reports not cleared by
                        the commitment time for company reasons DIVIDED BY total
                        trouble reports) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        retail by dispatch and no dispatch
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.5.39  MEASUREMENT - Receipt To Clear Duration
                        DEFINITION - Average duration of customer trouble
                        reports from the receipt of the customer trouble report
                        to the time the trouble report is cleared with the
                        customer excluding subsequent, and all disposition code
                        "13" reports (excludable)

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                                                                   PAGE 14 OF 21

                        CALCULATION - sigma[(Date and time ticket is cleared
                        with customer) - (Date and time ticket received)]
                        DIVIDED BY total customer network trouble reports
                        REPORT STRUCTURE - Reported for POTS Resale trouble
                        reports by CLEC, all CLECs and SWBT retail for Out of
                        Service and Affecting Service by Dispatch and
                        No-Dispatch
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.5.40  MEASUREMENT - Percent Out Of Service (OOS) < 24 Hours
                        DEFINITION - Percent of OOS trouble reports cleared in
                        less than 24 hours excluding subsequents, tickets
                        received on Saturday or Sunday, no access and all
                        disposition code "13" reports (excludable)
                        CALCULATION - (Count of OOS trouble reports < 24 hours
                        DIVIDED BY total number of OOS trouble reports) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        retail
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.5.41  MEASUREMENT - Percent Repeat Reports
                        DEFINITION - Percent of customer trouble reports
                        received within 10 calendar days of a previous customer
                        report that were not caused by CPE or wiring excluding
                        subsequent reports and all disposition code "13"
                        reports. (excludable)
                        CALCULATION - (Count of customer trouble reports, not
                        caused by CPE or wiring and excluding subsequent
                        reports, received within 10 calendar days of a previous
                        customer report DIVIDED BY total customer trouble
                        reports not caused by CPE or wiring and excluding
                        subsequent reports)*100
                        REPORT STRUCTURE - Reported by CLEC, all CLECs and SWBT
                        retail
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.5.42  MEASUREMENT - Percent No Access (% Trouble reports
                        with No Access).
                        DEFINITION - Percent of dispatched customer trouble
                        reports with a status of "No Access".
                        CALCULATION - Count of trouble reports with a status of
                        "No Access" to customer's premise DIVIDED BY total
                        dispatched customer trouble reports
                        REPORT STRUCTURE - Reported for CLEC, total CLECs and
                        SWBT
                        BENCHMARK - POTS - Parity with SWBT Retail

        6.6     SPECIALS - PROVISIONING

                6.6.43  MEASUREMENT - Average Installation Interval
                        DEFINITION - Average business days from application
                        date to completion date for N,T,C orders by item.
                        Excludes customer caused

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                                                                   PAGE 15 OF 21

                        misses and customer requested due dates that are earlier
                        or greater than "X" business days
                        CALCULATION - [Sigma(completion date - application
                        date)] DIVIDED BY (total number of orders completed)
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by DDS, DS1, DS3, Voice Grade Private Line (VGPL) and
                        ISDN and any other services available for resale
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.44  MEASUREMENT - Percent Installations Completed Within "X"
                        Business Days
                        DEFINITION - Percent installations completed within "X"
                        business days excluding customer caused misses and
                        customer requested due date greater than "X" business
                        days
                        CALCULATION - (Count of N,T,C orders by item installed
                        within business "X" business days DIVIDED BY total N,T,C
                        orders by item) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by DDS, DS1, DS3, Voice Grade Private Line (VGPL) and
                        ISDN and any other services available for resale
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.45  MEASUREMENT - Percent SWBT Caused Missed Due Dates
                        DEFINITION - Percent of N,T,C orders where installations
                        were not completed by the negotiated due date excluding
                        customer caused misses
                        CALCULATION - (Count of N,T,C orders by item with missed
                        due dates excluding customer caused misses DIVIDED BY
                        total number of N,T,C orders by item) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and
                        SWBT by DDS, DS1, DS3, Voice Grade Private Line (VGPL)
                        and ISDN and any other services available for resale
                        BENCHMARK- EQUAL TO SWBT'S OWN

                6.6.46  MEASUREMENT - Percent Installation Reports Within 30
                        Days (I-30)
                        DEFINITION - Percent of N,T,C orders by item that
                        receive a network customer trouble report within 30
                        calendar days of service order completion
                        CALCULATION - (Count of N,T,C orders by item that
                        receive a network customer trouble report within 30
                        calendar days of service order completion DIVIDED BY
                        total N,T,C orders by item (excludes trouble reports
                        received on the due date)) * 100

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                                                                   PAGE 16 OF 21

                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by DDS, DS1, DS3, Voice Grade Private Line (VGPL) and
                        ISDN and any other services available for resale
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.47  MEASUREMENT - Percent SWBT Missed Due Dates Due To Lack
                        Of Facilities
                        DEFINITION - Percent N,T,C orders by item with missed
                        committed due dates due to lack of facilities
                        CALCULATION - (Count of N,T,C orders by item with missed
                        committed due dates due to lack of facilities DIVIDED
                        BY total N,T,C orders by item) * 100
                        REPORT STRUCTURE - Reported for Specials Resale by CLEC,
                        all CLECs and SWBT Retail Reported for > 30 calendar
                        days & > 90 calendar days
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.48  MEASUREMENT - Delay Days For Missed Due Dates Due To
                        Lack Of Facilities
                        DEFINITION - Average calendar days from due date to
                        completion date on company missed orders due to lack of
                        facilities
                        CALCULATION - Sigma(Completion date - Committed order
                        due date) DIVIDED BY (# of completed orders)
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        Retail Specials
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.49  MEASUREMENT - Delay Days for SWBT Caused Missed Due
                        Dates
                        DEFINITION - Average calendar days from due date to
                        completion date on company missed orders
                        CALCULATION - Sum (Completion date - committed order due
                        date) DIVIDED BY (# of posted orders)
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        Retail Specials
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.50  MEASUREMENT - Percent SWBT Caused Missed Due Dates > 30
                        Days
                        DEFINITION - Percent of N, T, C orders where
                        installation was completed > 30 days following the due
                        date, excluding customer caused misses
                        CALCULATION - (Count of N, T, C orders completed > 30
                        days following the due date, excluding customer caused
                        misses DIVIDED BY total number of N, T, C orders) * 100

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                                                                   PAGE 17 OF 21

                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        for Retail Specials
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.6.51  MEASUREMENT - Count Of Orders Canceled After The Due
                        Date (SWBT Caused)
                        DEFINITION - Orders canceled after the due date which
                        were caused by SWBT
                        CALCULATION - (1-30, 31-90, and > 90 DIVIDED BY the
                        count of canceled orders)
                        REPORT STRUCTURE - Reported for individual CLECs and the
                        aggregate of all CLECs
                        BENCHMARK - Not required (Diagnostic)

        6.7     SPECIALS - MAINTENANCE

                6.7.52  MEASUREMENT - Mean Time To Restore
                        DEFINITION - Average duration of network customer
                        trouble reports from the receipt of the customer trouble
                        report to the time the trouble report is cleared
                        excluding no access and delayed maintenance
                        CALCULATION - Sigma[(Date and time trouble report is
                        cleared with the customer) - (date and time trouble
                        report is received)] DIVIDED BY total network customer
                        trouble reports
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by DDS, DS1, DS3, Voice Grade Private Line (VGPL) and
                        ISDN and any other services available for resale
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.7.53  MEASUREMENT - Percent Repeat Reports
                        DEFINITION - Percent of network customer trouble reports
                        received within 30 calendar days of a previous customer
                        report
                        CALCULATION - (Count of network customer trouble reports
                        received within 30 calendar days of a previous customer
                        report DIVIDED BY total network customer trouble
                        reports.) * 100
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by DDS, DS1, DS3, Voice Grade Private Line (VGPL) and
                        ISDN and any other services available for resale
                        BENCHMARK - EQUAL TO SWBT'S OWN

                6.7.54  MEASUREMENT - Failure Frequency
                        DEFINITION - The number of network customer trouble
                        reports within a calendar month per 100 circuits
                        CALCULATION - [Count of network trouble reports DIVIDED
                        BY (Total Resold circuits DIVIDED BY 100)]
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                                                                 PAGE 18 OF 21

                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        by DDS, DS1, DS3, Voice Grade Private Line (VGPL) and
                        ISDN and any other services available for resale
                        BENCHMARK - EQUAL TO SWBT's OWN

        6.11    DIRECTORY ASSISTANCE (DA) AND OPERATOR SERVICES (OS)

                6.11.55 MEASUREMENT - Directory Assistance Grade Of Service
                        DEFINITION - % of directory assistance calls answered
                        < 1.5, < 2.5, > 7.5, > 10.0, > 15.0, > 20.0, and > 25.0
                        seconds
                        CALCULATION - Calls answered within "X" seconds DIVIDED
                        BY total calls answered
                        REPORT STRUCTURE - Reported for the aggregate of SWBT
                        and CLECs
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.56 MEASUREMENT - Directory Assistance Average Speed Of
                        Answer
                        DEFINITION - The average time a customer is in queue.
                        The time begins when the customer enters the queue and
                        ends when the call is answered by a SWBT representative
                        CALCULATION - Total queue time DIVIDED BY total calls
                        REPORT STRUCTURE - Reported for the aggregate of SWBT
                        and CLECs
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.57 MEASUREMENT - Operator Services Grade Of Service
                        DEFINITION - % of operator services calls answered
                        < 1.5, < 2.5, > 7.5, > 10.0, > 15.0, > 20.0, and > 25.0
                        seconds
                        CALCULATION - Calls answered within "x" seconds DIVIDED
                        BY total calls answered
                        REPORT STRUCTURE - Reported for the aggregate of SWBT
                        and CLECs
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.58 MEASUREMENT - Operator Services Average Speed Of Answer
                        DEFINITION - The average time a customer is in queue.
                        The time begins when the customer enters the queue and
                        ends when the call is answered by a SWBT representative
                        CALCULATION - Total queue time DIVIDED BY total calls
                        Structure - Reported for the aggregate of SWBT and CLECs
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.59 MEASUREMENT - Percent Calls Abandoned
                        DEFINITION - The percent of calls where the customer
                        hangs up while the call is in queue
                        CALCULATION - (Number of calls abandoned DIVIDED BY
                        number of operator positions requested) * 100

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                                                                 PAGE 19 OF 21

                        REPORT STRUCTURE - Reported for CLEC and SWBT in the
                        aggregate
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.60 MEASUREMENT - Percent Calls Deflected
                        DEFINITION - The percent of calls that are received and
                        are unable to be placed in queue
                        CALCULATION - (Number of calls deflected DIVIDED BY
                        number of operator positions requested) * 100
                        REPORT STRUCTURE - Reported for CLEC and SWBT in the
                        aggregate
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.61 MEASUREMENT - Average Work Time
                        DEFINITION - the average number of seconds an operator
                        spends handling a customer's request for assistance in
                        obtaining a telephone number, placing a call at the
                        customer's request or in a position busy state. The
                        Average Work Time normally begins when the customer
                        connects to an operator position and ends when the
                        operator position releases the customer after serving
                        his/her request.
                        CALCULATION - Sum (Time operator position releases
                        customer - time customer connects to an operator
                        position) DIVIDED BY calls
                        REPORT STRUCTURE - Reported for CLEC and SWBT in the
                        aggregate
                        BENCHMARK - Not required (Aggregate measurement)

                6.11.62 MEASUREMENT - Non-Call Busy Work Volumes
                        DEFINITION - The amount of time in CCS (Centum Call
                        Second) that an operator has placed their position in
                        make busy or in a position busy state
                        CALCULATION - Sum (Time operator position in busy state
                        - time operator removed position from busy state)
                        REPORT STRUCTURE - Reported for CLEC and SWBT in the
                        aggregate
                        BENCHMARK - Not required (Aggregate measurement)

        6.14    911

                6.14.63 MEASUREMENT - Average Time To Clear Errors
                        DEFINITION - The average time it takes to clear an error
                        after it is detected during the processing of the 911
                        database file. The clock will start upon receipt of the
                        error file and end when the error is corrected. This is
                        only on resale orders that SWBT installs.
                        CALCULATION - sigma(Date and time error detected -
                        date and time error cleared) DIVIDED BY total number of
                        errors
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT'S OWN

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                                                                   PAGE 20 OF 21

                6.14.64 MEASUREMENT - Percent Accuracy 911 Database Updates
                        DEFINITION - The percent of 911 records that were
                        updated by SWBT in error
                        CALCULATION - (Number of SWBT caused update errors
                        DIVIDED BY total number of updates) * 100
                        REPORT STRUCTURE - CLEC, all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT'S OWN

        6.17    DIRECTORY ASSISTANCE DATA BASE

                6.17.65 MEASUREMENT - Percent DA Database Accuracy For Manual
                        Updates
                        DEFINITION - The percent of DA records that were updated
                        by SWBT in error. The data required to calculate this
                        measurement will be provided by the CLEC. The CLEC will
                        provide the number of records transmitted and the errors
                        found. SWBT will verify the records determined to be in
                        error to validate that the records were input by SWBT
                        incorrectly.
                        CALCULATION - (Number of SWBT caused update errors
                        DIVIDED BY total number of updates) * 100
                        REPORT STRUCTURE - Reported by CLEC and all CLECs for
                        facility based providers
                        BENCHMARK - 97% accuracy for DA database updates for the
                        manual DA process

                6.17.66 MEASUREMENT - Percent of Electronic Updates that flow
                        Through the DSR Process Without Manual Intervention
                        DEFINITION - Percent of DSRs from entry to distribution
                        that progress through SWBT ordering systems to ALPS/LIRA
                        CALCULATION - (Number of DSRs that flow through to
                        ALPS/LIRA DIVIDED BY total LSRs)* 100
                        REPORT STRUCTURE - CLEC and all CLECs
                        BENCHMARK - 97%

        6.19 NXX

                6.19.67 MEASUREMENT - Percent NXXs Loaded And Tested Prior To
                        The LERG Effective Date
                        DEFINITION - The percent of NXXs loaded and tested prior
                        to the LERG effective date
                        CALCULATION - (Count of NM loaded and tested by LERG
                        date DIVIDED BY total NXXs loaded and tested) * 100
                        REPORT STRUCTURE - Reported by CLEC, all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT's OWN

<PAGE>

                                                                   PAGE 21 OF 21

                6.19.68 MEASUREMENT - Average Delay Days For NXX Loading And
                        Testing
                        DEFINITION - Average calendar days from due date to
                        completion date on company missed NXX orders
                        CALCULATION - Sum (Completion date - LERG date)
                        DIVIDED BY (number of orders)
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and
                        SWBT
                        BENCHMARK - Equal to SWBT's own

                6.19.69 MEASUREMENT - Mean Time To Repair
                        DEFINITION - Average calendar days from due date to
                        completion date on company missed NXX orders
                        CALCULATION - Sum (Completion date - LERG date)
                        DIVIDED BY (number of orders)
                        REPORT STRUCTURE - Reported for CLEC, all CLECs and SWBT
                        BENCHMARK - EQUAL TO SWBT'S OWN

7.0     APPLICABILITY OF OTHER RATES, TERMS AND CONDITIONS

        7.1     This appendix, and every service provided hereunder, shall be
                subject to all rates, terms and conditions contained in this
                Agreement or any other appendices or attachments to this
                Agreement which are legitimately related to such service; and
                all such rates, terms and conditions are incorporated by
                reference herein and as part of every service provided
                hereunder. Without limiting the general applicability of the
                foregoing, the following terms and conditions of the General
                Terms and Conditions are specifically agreed by the Parties to
                be legitimately related to, and to be applicable to, each
                service Provided hereunder: definitions, interpretation and
                construction, notice of changes, general responsibilities of the
                Parties, effective date, terra, termination, disclaimer of
                representations and warranties, changes in end user local
                exchange service provider selection, severability, intellectual
                property, indemnification, limitation of liability, force
                majeure, confidentiality, disputed amounts, dispute resolution,
                intervening law and miscellaneous.<PAGE>

                                     RESALE
                                    AGREEMENT

                                     BETWEEN

                         U S WEST COMMUNICATIONS, INC.

                                       AND

                                  ESSENTIAL.COM

                                       FOR

                                    MINNESOTA

                                                                   Page i

<PAGE>

                               TABLE OF CONTENTS

<TABLE>

<S>                                                                                      <C>
PART A - GENERAL TERMS....................................................................1

  (A)1. SCOPE OF AGREEMENT ...............................................................1

  (A)2. DEFINITIONS ......................................................................3

  (A)3. TERMS AND CONDITIONS .............................................................4
   (A)3.1 General Provisions .............................................................4
   (A)3.2 Term of Agreement ..............................................................4
   (A)3.3 Proof of Authorization .........................................................5
   (A)3.4 Payment.........................................................................6
   (A)3.5 Taxes ..........................................................................7
   (A)3.6 Force Majeure...................................................................7
   (A)3.7 Limitation of Liability.........................................................8
   (A)3.8 Indemnity ......................................................................8
   (A)3.9 Intellectual Property .........................................................10
   (A)3.10 Warranties....................................................................12
   (A)3.11 Assignments...................................................................12
   (A)3.12 Default.......................................................................13
   (A)3.13 Disclaimer of Agency..........................................................13
   (A)3.14 Nondisclosure.................................................................14
   (A)3.15 Survival......................................................................15
   (A)3.16 Dispute Resolution............................................................16
   (A)3.17 Controlling Law ..............................................................17
   (A)3.18 Joint Work Product ...........................................................17
   (A)3.19 Responsibility for Environmental Contamination ...............................17
   (A)3.20 Notices.......................................................................18
   (A)3.21 Responsibilities of Each Party................................................18
   (A)3.22 No Third Party Beneficiaries..................................................19
   (A)3.23 Referenced Documents .........................................................19
   (A)3.24 Publicity.....................................................................19
   (A)3.25 Amendment ....................................................................19
   (A)3.26 Executed in Counterparts .....................................................19
   (A)3.27 Headings of No Force or Effect ...............................................20
   (A)3.28 Regulatory Approval ..........................................................20
   (A)3.29 Compliance....................................................................20
   (A)3.30 Compliance with the Communications Assistance for Law Enforcement
           Act of 1994 ("CALEA") ........................................................20
   (A)3.31 Cooperation ..................................................................20
   (A)3.32 Availability of Other Agreements .............................................20

PART B - RESALE..........................................................................21

  (B)1. Description......................................................................21

  (B)2. Terms and Conditions.............................................................21

  (B)3. Rates and Charges................................................................25

                                                                     Page ii

<PAGE>

                               TABLE OF CONTENTS

 (B)4. Ordering Process ...............................................................26

 (B)5. Billing ........................................................................27

 (B)6. Maintenance and Repair .........................................................28

PART C - WHITE PAGES DIRECTORY LISTINGS ...............................................29

 (C)1. Description ....................................................................29

 (C)2. Terms and Conditions ...........................................................29

PART D- MISCELLANEOUS PROVISIONS ......................................................32

 (D)1. Network Security ...............................................................32

 (D)2. Access To Operational Support Systems (OSS) ....................................32

 (D)3. U S WEST Dex ...................................................................47

 (D)4. Notice Of Changes ..............................................................47

 (D)5. Maintenance and Repair..........................................................48

 (D)6. Service Performance ............................................................54

 PART E - MINNESOTA RATES .............................................................62

 PART F - SIGNATURE ...................................................................63
</TABLE>
                                                                     Page iii

<PAGE>

                                                                       Part A
                                                                General Terms

                            PART A - GENERAL TERMS

         This Resale Agreement is between essential.com ("RESELLER"), a Delaware
corporation, and U S WEST Communications, Inc. ("USW"), a Colorado corporation.

(A)1. SCOPE OF AGREEMENT

         (A)1.1   Pursuant to this negotiated Resale Agreement ("Agreement"),
                  RESELLER and USW (collectively, "the Parties") will extend
                  certain arrangements to one another within the geographical
                  areas where USW is the incumbent Local Exchange Carrier within
                  the state of Minnesota for purposes of providing the resale of
                  local Telecommunications Services. This Agreement or the
                  portions of this Agreement relative to a particular state will
                  be submitted to the Minnesota Public Utilities Commission
                  ("Commission") for approval. Notwithstanding this mutual
                  commitment, however, the Parties enter into this Agreement
                  without prejudice to any positions they have taken previously,
                  or may take in the future in any legislative, regulatory, or
                  other public forum addressing any matters, including matters
                  related to the types of arrangements prescribed by this
                  Agreement.

         (A)1.2   The provisions in this Agreement are based, in large
                  part, on the existing state of the law, rules, regulations and
                  interpretations thereof, as of the date hereof (the "Existing
                  Rules"). Among the Existing Rules are or could be the results
                  of arbitrated decisions by the Commission which are currently
                  being challenged by USW. Among the Existing Rules are certain
                  FCC rules and orders that are the subject of, or affected by,
                  the opinion issued by the Supreme Court of the United States
                  in AT&T CORP., ET AL. V. IOWA UTILITIES BOARD, ET AL. on
                  January 25, 1999. Nothing in this Agreement shall preclude or
                  stop USW from taking any position in any forum concerning the
                  proper interpretation or effect of the Existing Rules or
                  concerning whether the Existing Rules should be changed,
                  dismissed, stayed or modified. To the extent that the Existing
                  Rules are changed, vacated, dismissed, stayed or modified,
                  then the Parties shall amend this Agreement and all contracts
                  adopting all or part of this Agreement pursuant to Section
                  252(i) of the Act, shall be amended to reflect such
                  modification or change of the Existing Rules. Where the
                  Parties fail to agree upon such an amendment, it shall be
                  resolved in accordance with the Dispute Resolution provision
                  of this Agreement. It is expressly understood that this
                  Agreement will be corrected to reflect the outcome of generic
                  pricing proceedings by the Commission. This Section (A)1.2
                  shall be considered part of the rates, terms and conditions of
                  each service resale arrangement contained in this Agreement,
                  and this Section (A)1.2 shall be considered legitimately
                  related to the purchase of each service for resale arrangement
                  contained in this Agreement.

         (A)1.3   This Agreement is entered into as a result of both private
                  negotiations between the Parties and the incorporation of some
                  of the results of arbitrated decisions by the Commission,
                  acting pursuant to Section 252 (b) of the Act, and involving
                  interconnection/resale agreements of other parties. The
                  Parties have included for convenience certain rates, terms or
                  conditions in this Agreement which reflect

                                                                     Page 1

<PAGE>

                                                                       Part A
                                                                General Terms

                  rates, terms or conditions established in some or all of those
                  other arbitrations. RESELLER acknowledges: (1) that those
                  rates, terms or conditions are extended only because of the
                  arbitrated results in other dockets, (2) that USW intends to
                  appeal certain of those decisions, and (3) that any
                  negotiations, appeal, stay, injunction or similar proceeding
                  impacting the applicability of those rates, terms or
                  conditions to the local service providers who were parties to
                  those arbitrations will similarly impact the applicability of
                  those rates, terms or conditions to RESELLER. The Parties
                  further recognize that this Agreement is subject to the
                  generic proceedings by the Commission addressing the services
                  in this Agreement.

         (A)1.4   This Agreement sets forth the terms, conditions and prices
                  under which USW agrees to provide services for resale to
                  RESELLER, all for the sole purpose of providing
                  Telecommunications Services.

         (A)1.5   In the performance of their obligations under this Agreement,
                  the Parties shall act in good faith and consistently with the
                  intent of the Act. Where notice, approval or similar action by
                  a Party is permitted or required by any provision of this
                  Agreement, (including, without limitation, the obligation of
                  the Parties to further negotiate the resolution of new or open
                  issues under this Agreement) such action shall not be
                  unreasonably delayed, withheld or conditioned.

         (A)1.6   USW may make services and features available to RESELLER for
                  resale under this Agreement consistent with the way they are
                  available to USW end users, without a formal amendment to this
                  Agreement. Nothing herein prevents either Party from raising
                  other issues through additional good faith negotiations.

         (A)1.7   This Agreement is structured in the following format:

                  Part A - General Terms
                  Part B - Resale
                  Part C - Directory Services
                  Part D - Miscellaneous Provisions
                  Part E - Rates
                  Part F - Signature

         (A)1.8   Prior to placing any orders for services under this Agreement,
                  the Parties will jointly complete USW's "Reseller
                  Questionnaire". This questionnaire will then be used to:

                  Determine geographical requirements
                  Identify RESELLER Ids
                  Determine USW system requirements to support RESELLER specific
                  activity
                  Collect credit information
                  Obtain billing information
                  Create summary bills
                  Establish input and output requirements
                  Create and distribute USW and RESELLER contact lists
                  Identify client hours and holidays

                                                                     Page 2

<PAGE>

                                                                       Part A
                                                                General Terms

(A)2. DEFINITIONS

         (A)2.1   "Act" means the Communications Act of 1934 (47 U.S.C. 151
                  et. seq.), as amended by the Telecommunications Act of 1996,
                  and as from time to time interpreted in the duly authorized
                  rules and regulations of the FCC or a Commission within its
                  state of jurisdiction.

         (A)2.2   "Basic Exchange Features" are optional end user switched
                  services that include, but are not necessarily limited to:
                  Automatic Call Back; Call Trace; Caller ID and Related
                  Blocking Features; Distinctive Ringing/Call Waiting;
                  Selective Call Forward; and Selective Call Rejection.

         (A)2.3   "Basic Exchange Telecommunications Service" means a service
                  offered to end users which provides the end user with a
                  telephonic connection to, and a unique local telephone
                  number address on the public switched telecommunications
                  network, and which enables such end user to generally place
                  calls to, or receive calls from, other stations on the
                  public switched telecommunications network. Basic residence
                  and business line services are Basic Exchange
                  Telecommunications Services. As used solely in the context
                  of this statement and unless otherwise agreed, Basic
                  Exchange Telecommunications Service includes access to
                  ancillary services such as 911, directory assistance and
                  operator services.

         (A)2.4   "Commission" means the Public Utilities Commission(s) in the
                  state of Minnesota.

         (A)2.5   "Enhanced Services" means any service offered over common
                  carrier transmission facilities that employ computer
                  processing applications that act on format, content, code,
                  protocol or similar aspects of the subscriber's transmitted
                  information; that provide the subscriber with additional,
                  different or restructured information; or involve end user
                  interaction with stored information.

         (A)2.6   "Interconnect & Resale Resource Guide" is a USW document
                  that provides essential information needed to request
                  services available under this Agreement. It is available on
                  USW's Web site.

         (A)2.7   "Interexchange Carrier" or "IXC" means a carrier that
                  provides interLATA or IntraLATA Toll services.

         (A)2.8   "IntraLATA Toll" is defined in accordance with USW's current
                  intraLATA toll serving areas, as determined by the Federal
                  Communications Commission.

         (A)2.9   "Local Exchange Carrier" or "LEC" means any person that is
                  engaged in the provision of telephone exchange service or
                  exchange access. Such term does not include a person insofar
                  as such person is engaged in the provision of a commercial
                  mobile service under Section 332(c) of the Act, except to
                  the extent that the FCC finds that such service should be
                  included in the definition of such term.

         (A)2.10  "Party" means either USW or RESELLER and "Parties" means USW
                  and RESELLER.

                                                                     Page 3
<PAGE>

                                                                       Part A
                                                                General Terms

       (A)2.11    "Reseller" is a category of local exchange service
                  provider that obtains dial tone and associated
                  Telecommunications Services from another provider through
                  the purchase of finished services for resale to its end
                  users.

       (A)2.12    "Tariff" as used throughout this Agreement refers to USW
                  interstate Tariffs and state Tariffs, price lists, price
                  schedules and catalogs.

       (A)2.13    "Telecommunications Carrier" means any provider of
                  Telecommunications Services, except that such term does not
                  include aggregators of Telecommunications Services (as
                  defined in Section 226 of the Act). A Telecommunications
                  Carrier shall be treated as a common carrier under the Act
                  only to the extent that it is engaged in providing
                  Telecommunications Services, except that the Federal
                  Communications Commission shall determine whether the
                  provision of fixed and mobile satellite service shall be
                  treated as common carriage.

         (A)2.14  "Telecommunications Services" means the offering of
                  telecommunications for a fee directly to the public, or to
                  such classes of users as to be effectively available
                  directly to the public, regardless of the facilities used.

         (A)2.15  Terms not otherwise defined here, but defined in the Act
                  shall have the meaning defined there. Where a term is
                  defined in the regulations implementing the Act but not in
                  this Agreement, the Parties do not necessarily intend to
                  adopt the definition as set forth in said regulations.

(A)3. TERMS AND CONDITIONS

         (A)3.1   GENERAL PROVISIONS

                  (A)3.1.1         Each Party is solely responsible for the
                                   services it provides to its end users and to
                                   other Telecommunications Carriers.

                  (A)3.1.2         The Parties shall work cooperatively to
                                   minimize fraud associated with intra-LATA
                                   toll, third-number billed calls, and any
                                   other services related to this Agreement.

                  (A)3.1.3         Nothing in this Agreement shall prevent
                                   either Party from seeking to recover the
                                   costs and expenses, if any, it may incur in
                                   (a) complying with and implementing its
                                   obligations under this Agreement, the Act,
                                   and the rules, regulations and orders of
                                   the FCC and the Commission, and (b) the
                                   development, modification, technical
                                   installation and maintenance of any systems
                                   or other infrastructure which it requires to
                                   comply with and to continue complying with
                                   its responsibilities and obligations under
                                   this Agreement.

         (A)3.2   TERM OF AGREEMENT

                  This Agreement shall become effective upon Commission
                  approval, pursuant to Sections 251 and 252 of the Act, shall
                  terminate on January 16, 2002, and shall be binding upon the
                  Parties during that term, notwithstanding Section 252(i) of
                  the Act. After the date specified above, this Agreement shall
                  continue in force and

                                                                     Page 4

<PAGE>

                                                                       Part A
                                                                General Terms

                  effect until terminated by either Party providing one hundred
                  sixty (160) days written notice of termination to the other
                  Party. The day the notice is served will determine the
                  starting point for a 160-day negotiation period (in accordance
                  with 252(b)1 of the Act. In the event of such termination,
                  existing or pending service arrangements made available under
                  this Agreement shall continue in total without interruption
                  under either a) a new or adoption agreement executed by the
                  Parties, or b) tariff terms and conditions generally
                  available to all resellers.

                  (A)3.2.1         If the Parties are unable to negotiate a new
                                   agreement during the negotiation period
                                   described above, the window of opportunity
                                   to file for arbitration to resolve
                                   outstanding contractual issues in accordance
                                   with the Act will occur between days 135 and
                                   160 of the 160 day notice period.

                  (A)3.2.2         If the Parties are able to reach agreement,
                                   this Agreement shall continue for the brief
                                   period of time needed to secure the
                                   Commission's approval of an adoption
                                   agreement or a new resale agreement. In the
                                   case of Section (A)3.2.1, this Agreement
                                   will expire on the termination date
                                   specified in the one hundred sixty (160) day
                                   notice referenced above, unless a petition
                                   for arbitration has been filed, but if such
                                   a petition has been filed then this
                                   Agreement shall continue for the period
                                   necessary for the Commission to act and
                                   resolve the disputed issues so that the
                                   Parties will have an effective resale
                                   agreement.

         (A)3.3   PROOF OF AUTHORIZATION

                  Where so indicated in specific sections of this Agreement,
                  each party shall be responsible for obtaining and having in
                  its possession Proof of Authorization ("POA"). POA shall
                  consist of verification of the end user's selection and
                  authorization adequate to document the end user's selection..
                  Such selection may be obtained in the following ways:

                  (A)3.3.1         The end user's written Letter of
                                   Authorization.

                  (A)3.3.2         The end user's electronic authorization by
                                   use of an 1-8XX number.

                  (A)3.3.3         The end user's oral authorization verified by
                                   an independent third party (with third party
                                   verification as POA).

                  The Parties shall make POAs available to each other upon
                  request, in accordance with the applicable laws and rules.
                  Unless prohibited by applicable laws or regulations, a. charge
                  of $100.00 ("slamming charge") will be assessed if the POA
                  cannot be provided supporting the change in service provider.
                  If there is a conflict between the end user designation and
                  the other Party's written evidence of its authority, the
                  Parties shall honor the designation of the end user and change
                  the end user back to the previous service provider.

                                                                     Page 5

<PAGE>

                                                                       Part A
                                                                General Terms

         (A)3.4   PAYMENT

                  (A)3.4.1         Amounts payable under this Agreement are due
                                   and payable within thirty (30) calendar days
                                   after the date of USW's invoice, or within
                                   twenty (20) days after receipt of the
                                   invoice, whichever is later. If the payment
                                   due date is not a Business Day, the payment
                                   shall be made the next Business Day..

                                   USW may discontinue processing orders for the
                                   failure by RESELLER to make full payment for
                                   the services provided under this Agreement
                                   within thirty (30) days of the due date on
                                   RESELLER's bill.

                                   USW may disconnect for the failure by
                                   RESELLER to make full payment for the
                                   services provided under this Agreement within
                                   sixty (60) days of the due date on RESELLER's
                                   bill. RESELLER will pay the Tariff charge
                                   required to reconnect each end user line
                                   disconnected pursuant to this paragraph.

                  (A)3.4.2         Should RESELLER dispute, in good faith, any
                                   portion of the monthly billing under this
                                   Agreement, RESELLER will notify USW in
                                   writing within thirty (30) calendar days of
                                   the receipt of such billing, identifying the
                                   amount, reason and rationale of such dispute.
                                   RESELLER shall pay all amounts due. Both
                                   RESELLER and USW agree to expedite the
                                   investigation of any disputed amounts in an
                                   effort to resolve and settle the dispute
                                   prior to initiating any other rights or
                                   remedies. Should the dispute be resolved in
                                   RESELLER's favor and the resolved amount did
                                   not appear as a credit on RESELLER's next
                                   invoice from USW, USW will reimburse RESELLER
                                   the resolved amount plus interest from the
                                   date of payment. The amount of interest will
                                   be calculated using the late payment factor
                                   that would have applied to such amount had it
                                   not been paid on time.

                  (A)3.4.3         USW will determine RESELLER's credit status
                                   based on previous payment history with USW or
                                   credit reports such as Dun and Bradstreet. If
                                   RESELLER has not established satisfactory
                                   credit with USW or if RESELLER is repeatedly
                                   delinquent in making its payments, USW may
                                   require a deposit to be held as security for
                                   the payment of charges. "Repeatedly
                                   delinquent" means being thirty (30) calendar
                                   days or more delinquent for three (3)
                                   consecutive months. The deposit may not
                                   exceed the estimated total monthly charges
                                   for a two (2) month period. The deposit may
                                   be a surety bond, a letter of credit with
                                   terms and conditions acceptable to USW or
                                   some other form of mutually acceptable
                                   security such as a cash deposit. Required
                                   deposits are due and payable within ten (10)
                                   calendar days after demand in accordance with
                                   Commission requirements.

                                                                     Page 6
<PAGE>

                                                                       Part A
                                                                General Terms

                  (A)3.4.4         Interest will be paid on cash deposits at the
                                   rate applying to deposits under applicable
                                   Commission rules, regulations, or Tariffs.
                                   Cash deposits and accrued interest will be
                                   credited to RESELLER's account or refunded,
                                   as appropriate, upon the earlier of the
                                   termination of this Agreement or the
                                   establishment of satisfactory credit with
                                   USW, which will generally be one (1) full
                                   year of timely payments in full by RESELLER.
                                   The fact that a deposit has been made does
                                   not relieve RESELLER from any requirements of
                                   this Agreement.

                  (A)3.4.5         USW may review RESELLER's credit standing
                                   and modify the amount of deposit required.

                  (A)3.4.6         The late payment charge for amounts that are
                                   billed under this Agreement shall be in
                                   accordance with state Tariffs/Commission
                                   Rules and Orders.
         (A)3.5   TAXES

                  Each Party purchasing services hereunder shall pay or
                  otherwise be responsible for all federal, state, or local
                  sales, use, excise, gross receipts, transaction or similar
                  taxes, fees or surcharges levied against or upon such
                  purchasing Party (or the providing Party when such providing
                  Party is permitted to pass along to the purchasing Party such
                  taxes, fees or surcharges), except for any tax on either
                  Party's corporate existence, status or income. Whenever
                  possible, these amounts shall be billed as a separate item on
                  the invoice. To the extent a sale is claimed to be for resale
                  tax exemption, the purchasing Party shall furnish the
                  providing Party a proper resale tax exemption certificate as
                  authorized or required by statute or regulation by the
                  jurisdiction providing said resale tax exemption. Until such
                  time as a resale tax exemption certificate is provided, no
                  exemptions will be applied.

         (A)3.6   FORCE MAJEURE

                  Neither Party shall be liable for any delay or failure in
                  performance of any part of this Agreement from any cause
                  beyond its control and without its fault or negligence
                  including, without limitation, acts of nature, acts of civil
                  or military authority, government regulations, embargoes,
                  epidemics, terrorist acts, riots, insurrections, fires,
                  explosions, earthquakes, nuclear accidents, floods, work
                  stoppages, equipment failure, power blackouts, volcanic
                  action, other major environmental disturbances, unusually
                  severe weather conditions, inability to secure products or
                  services of other persons or transportation facilities or acts
                  or omissions of transportation carriers (collectively, a
                  "Force Majeure Event"). The Party affected by a Force Majeure
                  Event shall give prompt notice to the other Party, shall be
                  excused from performance of its obligations hereunder on a day
                  to day basis to the extent those obligations are prevented by
                  the Force Majeure Event, and shall use reasonable efforts to
                  remove or mitigate the Force Majeure Event. In the event of a
                  labor dispute or strike the Parties agree to provide service
                  to each other at a level equivalent to the level they provide
                  themselves.

                                                                     Page 7

<PAGE>

                                                                       Part A
                                                                General Terms

         (A)3.7   LIMITATION OF LIABILITY

                  (A)3.7.1         Except for losses relating to or arising out
                                   of any act or omission in its performance of
                                   services or functions provided under this
                                   Agreement, each Party shall be liable to the
                                   other for direct damages for any loss,
                                   defect or equipment failure resulting from
                                   the causing Party's conduct or the conduct of
                                   its agents or contractors in performing the
                                   obligations contained in this Agreement.

                  (A)3.7.2         Neither Party shall be liable to the other
                                   for indirect, incidental, consequential, or
                                   special damages, including (without
                                   limitation) damages for lost profits, lost
                                   revenues, lost savings suffered by the other
                                   Party regardless of the form of action,
                                   whether in contract, warranty, strict
                                   liability, tort, including (without
                                   limitation) negligence of any kind and
                                   regardless of whether the Parties know the
                                   possibility that such damages could result.

                  (A)3.7.3         Except for indemnity obligations, each
                                   Party's liability to the other Party
                                   for any loss relating to or arising out
                                   of any act or omission in its performance
                                   of services or functions provided under
                                   this Agreement, whether in contract or in
                                   tort, shall be limited to the total
                                   amount that is or would have been charged
                                   to the other Party by such breaching
                                   Party for the service(s) or function(s)
                                   not performed or improperly performed.

                  (A)3.7.4         Nothing contained in this Section shall limit
                                   either Party's liability to the other for
                                   intentional, malicious misconduct.

                  (A)3.7.5         Nothing contained in this Section shall limit
                                   either Party's obligations of indemnification
                                   as specified in the Indemnity Section of this
                                   Agreement.

                  (A)3.7.6         Neither Party shall be liable to the other
                                   under any theory including indemnity on
                                   account of such Party's failure or neglect to
                                   have or maintain a system or systems that are
                                   Year 2000 compliant. As the Parties approach
                                   the Year 2000, date information associated
                                   with any interfaces between the Parties is
                                   expected to remain as it is.

         (A)3.8   INDEMNITY

                  (A)3.8.1         With respect to third party claims, the
                                   Parties agree to indemnify each other as
                                   follows:

                                   (A)3.8.1.1  Except for claims made by end
                                               users of one Party against the
                                               other Party, which claims are
                                               based on defective or faulty
                                               services provided by the other
                                               Party to the one Party, each of
                                               the Parties agree to release,
                                               indemnify, defend and hold
                                               harmless the other Party and
                                               each of its officers,
                                               directors, employees and
                                               agents (each an "Indemnitee")
                                               from and against and in respect

                                                                     Page 8

<PAGE>

                                                                       Part A
                                                                General Terms

                                               of any loss, debt, liability,
                                               damage, obligation, claim,
                                               demand, judgment or
                                               settlement of any nature or
                                               kind, known or unknown,
                                               liquidated or unliquidated
                                               including, but not limited to,
                                               costs and attorneys' fees,
                                               whether suffered, made,
                                               instituted, or asserted by any
                                               other party or person, for
                                               invasion of privacy, personal
                                               injury to or death of any
                                               person or persons, or for
                                               loss, damage to, or
                                               destruction of property,
                                               whether or not owned by
                                               others, resulting from the
                                               indemnifying Party's
                                               performance, breach of
                                               applicable law, or status of
                                               its employees, agents and
                                               subcontractors; or for failure
                                               to perform under this
                                               Agreement, regardless of the
                                               form of action.

                                   (A)3.8.1.2  Where the third party claim is
                                               made by (or through) an end user
                                               of one Party against the other
                                               Party, which claim is based on
                                               defective or faulty services
                                               provided by the other Party to
                                               the one Party then there shall
                                               be no obligation of indemnity
                                               unless the act or omission giving
                                               rise to the defective or
                                               faulty services is shown to be
                                               intentional, malicious
                                               misconduct of the other Party.

                                   (A)3.8.1.3  If the claim is made by (or
                                               through) an end user and where a
                                               claim is in the nature of a claim
                                               for invasion of privacy, libel,
                                               slander, or other claim based
                                               on the content of a
                                               transmission, and it is made
                                               against a Party who is not the
                                               immediate provider of the
                                               Telecommunications Service to
                                               the end user (the indemnified
                                               provider), then in the absence
                                               of fault or neglect on the
                                               part of the indemnified
                                               provider, the Party who is the
                                               immediate seller of such
                                               Telecommunications Service
                                               shall indemnify, defend and
                                               hold harmless the indemnified
                                               provider from such claim.

                  (A)3.8.2         The indemnification provided herein shall be
                                   conditioned upon:

                                   (A)3.8.2.1  The indemnified Party shall
                                               promptly notify the
                                               indemnifying Party of any
                                               action taken against the
                                               indemnified Party relating to
                                               the indemnification. Failure to
                                               so notify the indemnifying
                                               Party shall not relieve the
                                               indemnifying Party of any
                                               liability that the indemnifying
                                               Party might have, except to the
                                               extent that such failure
                                               prejudices the indemnifying
                                               Party's ability to defend such
                                               claim.

                                   (A)3.8.2.2  The indemnifying Party shall have
                                               sole authority to defend any such
                                               action, including the selection
                                               of legal

                                                                     Page 9
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                                                                          Part A
                                                                   General Terms

                              counsel, and the indemnified Party may engage
                              separate legal counsel only at its sole cost and
                              expense.

                  (A)3.8.2.3  In no event shall the indemnifying Party settle
                              or consent to any judgment pertaining to any such
                              action without the prior written consent of the
                              indemnified Party.

(A)3.9  INTELLECTUAL PROPERTY

        (A)3.9.1  Each Party hereby grants to the other Party the limited,
                  personal and nonexclusive right and license to use its
                  patents, copyrights and trade secrets but only to the extent
                  necessary to implement this Agreement or specifically required
                  by the then applicable federal and state rules and regulations
                  relating to Interconnection and access to telecommunications
                  facilities and services, and for no other purposes. Nothing in
                  this Agreement shall be construed as the grant to the other
                  Party of any rights or licenses to trademarks.

        (A)3.9.2  The rights and licenses above are granted "AS IS" and the
                  other Party's exercise of any such right and license shall
                  be at the sole and exclusive risk of the other Party.
                  Neither Party shall have any obligation to defend,
                  indemnify or hold harmless, or acquire any license or
                  right for the benefit of, or owe any other obligation or
                  have any liability to, the other based on or arising from
                  any claim, demand, or proceeding (hereinafter "claim") by
                  any third party alleging or asserting that the use of any
                  circuit, apparatus, or system, or the use of any software,
                  or the performance of any service or method, or the
                  provision of any facilities by either Party under this
                  Agreement constitutes infringement, or misuse or
                  misappropriation of any patent, copyright, trade secret,
                  or any other proprietary or intellectual property right of
                  any third party.

        (A)3.9.3  As a condition to the access or use of patents, copyrights,
                  trade secrets and other intellectual property (including
                  software) owned or controlled by a third party to the
                  extent necessary to implement this Agreement or
                  specifically required by the then applicable federal and
                  state rules and regulations relating to Interconnection
                  and access to telecommunications facilities and services,
                  the Party providing access may require the other, upon
                  written notice, from time to time, to obtain a license or
                  permission for such access or use, make all payments in
                  connection with obtaining such license, and provide
                  evidence of such license.

        (A)3.9.4  Except as expressly provided in this Intellectual Property
                  Section, nothing in this Agreement shall be construed as
                  the grant of a license, either express or implied, with
                  respect to any patent, copyright, logo, trademark, trade
                  name, trade secret or any other intellectual property
                  right now or hereafter owned, controlled or licensable by
                  either Party.

                                                                         Page 10

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                                                                          Part A
                                                                   General Terms

                  Neither Party may use any patent, copyright, logo,
                  trademark, trade name, trade secret or other intellectual
                  property rights of the other Party or its affiliates
                  without execution of a separate agreement between the
                  Parties.

       (A)3.9.5   Neither Party shall without the express written permission of
                  the other Party, state or imply that: 1) it is connected,
                  or in any way affiliated with the other or its
                  affiliates, 2) it is part of a joint business association
                  or any similar arrangement with the other or its
                  affiliates, 3) the other Party and its affiliates are in
                  any way sponsoring, endorsing or certifying it and its
                  goods and services, or 4) with respect to its advertising
                  or promotional activities or materials, that the resold
                  goods and services are in any way associated with or
                  originated from the other or any of its affiliates.
                  Nothing in this paragraph shall prevent either Party from
                  truthfully describing the network elements it uses to
                  provide service to its end users, provided it does not
                  represent the network elements as originating from the
                  other Party or its affiliates.

       (A)3.9.6   For purposes of resale only and notwithstanding the above,
                  unless otherwise prohibited by USW pursuant to an
                  applicable provision herein, RESELLER may use the phrase
                  "RESELLER is a reseller of U S WEST Communications
                  services" (the "Authorized Phrase") in RESELLER's printed
                  materials provided:

                  (A)3.9.6.1  The Authorized Phrase is not used in connection
                              with any goods or services other than USW services
                              resold by RESELLER.

                  (A)3.9.6.2  RESELLER's use of the Authorized Phrase does not
                              cause end users to believe that RESELLER is USW.

                  (A)3.9.6.3  RESELLER may not use the U S WEST logo. The
                              Authorized Phrase, when displayed, appears only
                              in text form with all letters being the same font
                              and point size. The point size of the Authorized
                              Phrase shall be no greater than one fourth the
                              point size of the smallest use of RESELLER's
                              name and in no event shall exceed 8 point size.

                  (A)3.9.6.4  RESELLER shall provide all printed materials using
                              the Authorized Phrase to USW for its prior
                              written approval.

                  (A)3.9.6.5  If USW determines that RESELLER's use of the
                              Authorized Phrase causes end user confusion, USW
                              may immediately terminate RESELLER's right to use
                              the Authorized Phrase.

                  (A)3.9.6.6  Upon termination of RESELLER's right to use the
                              Authorized Phrase or termination of this
                              Agreement, all

                                                                        Page 11

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                                                                          Part A
                                                                   General Terms

                              permission or right to use the Authorized
                              Phrase shall immediately cease to exist and
                              RESELLER shall immediately cease any and all
                              such use of the Authorized Phrase. RESELLER
                              shall either promptly return to USW or destroy
                              all materials in its possession or control
                              displaying the Authorized Phrase.

       (A)3.9.7  RESELLER acknowledges the value of the marks "U S WEST" and
                 "U S WEST Communications" (the "Marks") and the goodwill
                 associated therewith and acknowledges that such goodwill is
                 a property right belonging to U S WEST, Inc. and USW
                 respectively (the "Owners"). RESELLER recognizes that
                 nothing contained in this Agreement is intended as an
                 assignment or grant to RESELLER of any right, title or
                 interest in or to the Marks and that this Agreement does
                 not confer any right or license to grant sublicenses or
                 permission to third parties to use the Marks and is not
                 assignable. RESELLER will do nothing inconsistent with the
                 Owner's ownership of the Marks, and all rights, if any,
                 that may be acquired by use of the Marks shall inure to the
                 benefit of the Owners. RESELLER will not adopt, use (other
                 than as authorized herein), register or seek to register
                 any mark anywhere in the world which is identical or
                 confusingly similar to the Marks or which is so similar
                 thereto as to constitute a deceptive colorable imitation
                 thereof or to suggest or imply some association,
                 sponsorship, or endorsement by the Owners. The Owners make
                 no warranties regarding ownership of any rights in or the
                 validity of the Marks.

(A)3.10  WARRANTIES

         NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, THE
         PARTIES AGREE THAT NEITHER PARTY HAS MADE, AND THAT THERE DOES
         NOT EXIST, ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT
         LIMITED TO WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
         PARTICULAR PURPOSE.

(A)3.11  ASSIGNMENT

                 (A)3.11.1 Neither Party may assign or transfer (whether by
                           operation of law or otherwise) this Agreement (or
                           any rights or obligations hereunder) to a third
                           party without the prior written consent of the
                           other Party. Notwithstanding the foregoing,
                           either Party may assign or transfer this
                           Agreement to a corporate affiliate or an entity
                           under its common control; however, if RESELLER's
                           assignee or transferee has an interconnection
                           agreement with USW, no assignment or transfer of
                           this Agreement shall be effective without the
                           prior written consent of USW. Such consent shall
                           include appropriate resolutions of conflicts and
                           discrepancies between the assignee's or
                           transferee's interconnection agreement and this
                           Agreement. The Party making

                                                                        Page 12
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                                                                        Part A
                                                                 General Terms

                                 the assignment shall notify the Commission
                                 sixty (60) days in advance of the effective
                                 date of the assignment. Any attempted
                                 assignment or transfer that is not permitted is
                                 void AB INITIO. Without limiting the generality
                                 of the foregoing, this Agreement shall be
                                 binding upon and shall inure to the benefit of
                                 the Parties' respective successors and assigns.

                   (A) 3.11.2    Without limiting the generality of the
                                 foregoing subsection, any merger,
                                 dissolution, consolidation or other
                                 reorganization of RESELLER, or any sale,
                                 transfer, pledge or other disposition by
                                 RESELLER of securities representing more
                                 than 50% of the securities entitled to vote
                                 in an election of RESELLER's board of
                                 directors or other similar governing body,
                                 or any sale, transfer, pledge or other
                                 disposition by RESELLER of substantially
                                 all of its assets, shall be deemed a
                                 transfer of control. If any entity, other
                                 than RESELLER, involved in such merger,
                                 dissolution, consolidation, reorganization,
                                 sale, transfer,  pledge or other
                                 disposition of RESELLER has an
                                 interconnection agreement with USW, the
                                 Parties agree that only one agreement,
                                 either this  Agreement or the
                                 interconnection agreement of the other
                                 entity, will remain valid. All other
                                 interconnection agreements will be
                                 terminated. The Parties agree to work
                                 together to determine which interconnection
                                 agreement should remain valid and which
                                 should terminate. In the event the Parties
                                 cannot reach agreement on this issue, the
                                 issue shall be resolved through the Dispute
                                 Resolution process contained in this
                                 Agreement.

          (A)3.12 DEFAULT

                  If either Party defaults in the payment of any amount due
                  hereunder, or if either Party violates any other material
                  provision of this Agreement, and such default or violation
                  shall continue for thirty (30) calendar days after written
                  notice thereof, the other Party must notify the Minnesota
                  Public Utilities Commission in writing and may seek relief in
                  accordance with the Dispute Resolution provision of this
                  Agreement. The failure of either Party to enforce any of the
                  provisions of this Agreement or the waiver thereof in any
                  instance shall not be construed as a general waiver or
                  relinquishment on its part of any such provision, but the same
                  shall, nevertheless, be and remain in full force and effect.
                  Neither Party will disconnect the other without first
                  obtaining the approval of the Commission.

          (A)3.13 DISCLAIMER OF AGENCY

                  Except for provisions herein expressly authorizing a Party to
                  act for another, nothing in this Agreement shall constitute a
                  Party as a legal representative or agent of the other Party,
                  nor shall a Party have the right or authority to assume,
                  create or incur any liability or any obligation of any kind,
                  express or implied, against or in the name or on behalf of the
                  other Party unless otherwise expressly permitted by such other
                  Party. Except as otherwise expressly provided in this

                                                                         Page 13
<PAGE>

                                                                        Part A
                                                                 General Terms

                  Agreement, no Party undertakes to perform any obligation of
                  the other Party whether regulatory or contractual, or to
                  assume any responsibility for the management of the other
                  Party's business.

          (A)3.14 NONDISCLOSURE

                   (A)3.14.1     To the extent permitted by applicable law,
                                 either Party may disclose to the other
                                 proprietary or confidential customer,
                                 technical or business information. All
                                 information, including but not limited to
                                 specifications, microfilm, photocopies,
                                 magnetic disks, magnetic tapes, drawings,
                                 sketches, models, samples, tools, technical
                                 information, data, employee records, maps,
                                 financial reports, and market data, (i)
                                 furnished by one Party to the other Party
                                 dealing with end user specific, facility
                                 specific, or usage specific information,
                                 other than end user information
                                 communicated for the purpose of providing
                                 directory assistance or publication of
                                 directory database, or (ii) in written,
                                 graphic, electromagnetic, or other tangible
                                 form and marked at the time of delivery as
                                 "Confidential" or "Proprietary", or (iii)
                                 communicated and declared to the receiving
                                 Party at the time of delivery, or by
                                 written notice given to the receiving Party
                                 within ten (10) calendar days after
                                 delivery, to be "Confidential" or
                                 "Proprietary" (collectively referred to as
                                 "Proprietary Information"), shall remain
                                 the property of the disclosing Party. A
                                 Party who receives Proprietary Information
                                 via an oral communication may request
                                 written confirmation that the material is
                                 Proprietary Information. A Party who
                                 delivers Proprietary Information via an
                                 oral communication may request written
                                 confirmation that the Party receiving the
                                 information understands that the material
                                 is Proprietary Information.

                   (A)3.14.2     Upon request by the disclosing Party, the
                                 receiving Party shall return all tangible
                                 copies of Proprietary Information, whether
                                 written, graphic or otherwise, except that the
                                 receiving Party may retain one copy for
                                 archival purposes.

                   (A)3.14.3     Each Party shall keep all of the other Party's
                                 Proprietary Information confidential and shall
                                 use the other Party's Proprietary Information
                                 only in connection with this Agreement. Neither
                                 Party shall use the other Party's Proprietary
                                 Information for any other purpose except upon
                                 such terms and conditions as may be agreed upon
                                 between the Parties in writing.

                   (A)3.14.4     Unless otherwise agreed, the obligations of
                                 confidentiality and nonuse set forth in this
                                 Agreement do not apply to such Proprietary
                                 Information as:

                                 (A)3.14.4.1      was at the time of receipt
                                                  already known to the
                                                  receiving Party free of any
                                                  obligation to keep it

                                                                       Page 14
<PAGE>

                                                                        Part A
                                                                 General Terms

                                                  confidential evidenced by
                                                  written records prepared prior
                                                  to delivery by the disclosing
                                                  Party; or

                                  (A)3.14.4.2     is or becomes publicly known
                                                  through no wrongful act of the
                                                  receiving Party; or

                                  (A)3.14.4.3     is rightfully received from a
                                                  third person having no direct
                                                  or indirect secrecy or
                                                  confidentiality obligation to
                                                  the disclosing Party with
                                                  respect to such information;
                                                  or

                                  (A)3.14.4.4     is independently developed by
                                                  an employee, agent, or
                                                  contractor of the receiving
                                                  Party which individual is not
                                                  involved in any manner with
                                                  the provision of services
                                                  pursuant to the Agreement and
                                                  does not have any direct or
                                                  indirect access to the
                                                  Proprietary Information; or

                                  (A)3.14.4.5     is disclosed to a third person
                                                  by the disclosing Party
                                                  without similar restrictions
                                                  on such third person's rights;
                                                  or

                                  (A)3.14.4.6     is approved for release by
                                                  written authorization of the
                                                  disclosing Party; or

                                  (A)3.14.4.7     is required to be made public
                                                  by the receiving Party
                                                  pursuant to applicable law or
                                                  regulation provided that the
                                                  receiving Party shall give
                                                  sufficient notice of the
                                                  requirement to the disclosing
                                                  Party to enable the disclosing
                                                  Party to seek protective
                                                  orders.

                   (A)3.14.5     Nothing herein is intended to prohibit a Party
                                 from supplying factual information about its
                                 network and Telecommunications Services on or
                                 connected to its network to regulatory agencies
                                 including the Federal Communications Commission
                                 and the Commission so long as any confidential
                                 obligation is protected.

                   (A)3.14.6     Effective Date Of This Section. Notwithstanding
                                 any other provision of this Agreement, the
                                 Proprietary Information provisions of this
                                 Agreement shall apply to all information
                                 furnished by either Party to the other in
                                 furtherance of the purpose of this Agreement,
                                 even if furnished before the date of this
                                 Agreement.

          (A)3.15 SURVIVAL

                  Any liabilities or obligations of a Party for acts or
                  omissions prior to the cancellation or termination of this
                  Agreement; any obligation of a Party under the provisions
                  regarding indemnification, Confidential or Proprietary
                  Information, limitations of liability, and any other
                  provisions of this Agreement which, by their terms, are
                  contemplated to survive (or to be performed after) termination
                  of this Agreement, shall survive cancellation or termination
                  hereof.

                                                                         Page 15
<PAGE>

                                                                         Part A
                                                                  General Terms

          (A)3.16 DISPUTE RESOLUTION

                   (A)3.16.1     If any claim, controversy or dispute between
                                 the Parties, their agents, employees, officers,
                                 directors or affiliated agents should arise,
                                 and the Parties do not resolve it in the
                                 ordinary course of their dealings (the
                                 "Dispute"), then it shall be resolved in
                                 accordance with the dispute resolution process
                                 set forth in this Section. Each notice of
                                 default, unless cured within the applicable
                                 cure period, shall be resolved in accordance
                                 herewith.
                   (A)3.16.2     At the written request of either Party, and
                                 prior to any other formal dispute
                                 resolution proceedings, each Party shall
                                 designate an officer-level employee, at no
                                 less than the vice president level, to
                                 review, meet, and negotiate, in good faith,
                                 to resolve the Dispute. The Parties intend
                                 that these negotiations be conducted by
                                 non-lawyer, business representatives, and
                                 the locations, format, frequency, duration,
                                 and conclusions of these discussions shall
                                 be at the discretion of the
                                 representatives. By mutual agreement, the
                                 representatives may use other procedures,
                                 such as mediation, to assist in these
                                 negotiations. The discussions and
                                 correspondence among the representatives
                                 for the purposes of these negotiations
                                 shall be treated as Confidential
                                 Information developed for purposes of
                                 settlement, and shall be exempt from
                                 discovery and production, and shall not be
                                 admissible in any subsequent arbitration or
                                 other proceedings without the concurrence
                                 of both of the Parties.

                   (A)3.16.3     If the vice-presidential level
                                 representatives have not reached a
                                 resolution of the Dispute within thirty
                                 (30) calendar days after the matter is
                                 referred to them, then either Party may
                                 demand that the Dispute be settled by
                                 arbitration. Such an arbitration proceeding
                                 shall be conducted by a single arbitrator,
                                 knowledgeable about the telecommunications
                                 industry. The arbitration proceedings shall
                                 be conducted under the then current rules
                                 of the American Arbitration Association
                                 ("AAA"). The Federal Arbitration Act, 9
                                 U.S.C. Sections 1-16, not state law, shall
                                 govern the arbitrability of the Dispute.
                                 The arbitrator shall not have authority to
                                 award punitive damages. All expedited
                                 procedures prescribed by the AAA rules
                                 shall apply. The arbitrator's award shall
                                 be final and binding and may be entered in
                                 any court having jurisdiction thereof,
                                 subject to review by the Commission. The
                                 Parties shall submit a copy of each
                                 arbitration opinion to the Commission, the
                                 Department of Public Service, and the
                                 Office of Attorney General, Residential and
                                 Small Business Utilities Division. The
                                 arbitrator's decision shall prevail in
                                 effect unless the Commission decides
                                 otherwise within forty-five (45) days. Each
                                 Party shall bear its own costs and
                                 attorneys' fees, and shall share equally in
                                 the fees and expenses of the arbitrator.
                                 The arbitration proceedings

                                                                        Page 16
<PAGE>

                                                                          Part A
                                                                   General Terms

                        shall occur in the Denver, Colorado metropolitan area.
                        It is acknowledged that the Parties, by mutual, written
                        agreement, may change any of these arbitration practices
                        for a particular, some, or all Dispute(s).

         (A)3.16.4      Should it become necessary to resort to court
                        proceedings to enforce a Party's compliance with the
                        dispute resolution process set forth herein, and the
                        court directs or otherwise requires compliance herewith,
                        then all of the costs and expenses, including its
                        reasonable attorney fees, incurred by the Party
                        requesting such enforcement shall be reimbursed by the
                        non-complying Party to the requesting Party.

         (A)3.16.5      No Dispute, regardless of the form of action, arising
                        out of this Agreement, may be brought by either Party
                        more than two (2) years after the cause of action
                        accrues.

(A)3.17  CONTROLLING LAW

         This Agreement was negotiated by the Parties in accordance with the
         terms of the Act and the laws of the state where service is provided
         hereunder. It shall be interpreted solely in accordance with the terms
         of the Act and the applicable state law in the state where the service
         is provided.

(A)3.18  JOINT WORK PRODUCT

         This Agreement is the joint work product of the Parties and has been
         negotiated by the Parties and their respective counsel and shall be
         fairly interpreted in accordance with its terms and, in the event of
         any ambiguities, no inferences shall be drawn against either Party.

(A)3.19  Responsibility for Environmental Contamination

         Neither Party shall be liable to the other for any costs whatsoever
         resulting from the presence or release of any environmental hazard that
         either Party did not introduce to the affected work location. Both
         Parties shall defend and hold harmless the other, its officers,
         directors and employees from and against any losses, damages, claims,
         demands, suits, liabilities, fines, penalties and expenses (including
         reasonable attorneys' fees) that arise out of or result from (i) any
         environmental hazard that the indemnifying Party, its contractors or
         agents introduce to the work locations or (ii) the presence or release
         of any environmental hazard for which the indemnifying Party is
         responsible under applicable law.

                                                                        Page 17
<PAGE>

                                                                         Part A
                                                                  General Terms

          (A)3.20 NOTICES
                  Any notices required by or concerning this Agreement shall be
                  sent to the Parties at the addresses shown below:

                  USW
                  Director Interconnection Compliance
                  1801 California, Room 2410
                  Denver, CO 80202

                  With copy to:
                  U S WEST Law Department
                  Attention: General Counsel, Interconnection
                  1801 California Street, 51st Floor
                  Denver, CO 80202

                  RESELLER
                  John Duffy
                  Peter Mills
                  3 Burlington Woods Drive
                  4" Floor
                  Burlington, MA 01803
                  Phone:      781-229-9599, ext. 136
                  Fax:        781-229-9499
                  E-mail:     jduffy@essential.com
and
                  Executive Secretary
                  Minnesota Public Utilities Commission
                  121 Seventh Place East, Suite 350
                  St. Paul, MN 55101-2147

                  Each Party shall inform the other of any changes in the above
                  addresses.

          (A)3.21 RESPONSIBILITY OF EACH PARTY

                  Each Party is an independent contractor, and has and hereby
                  retains the right to exercise full control of and supervision
                  over its own performance of its obligations under this
                  Agreement and retains full control over the employment,
                  direction, compensation and discharge of all employees
                  assisting in the performance of such obligations. Each Party
                  will be solely responsible for all matters relating to payment
                  of such employees, including compliance with social security
                  taxes, withholding taxes and all other regulations governing
                  such matters. Each Party will be solely responsible for proper
                  handling, storage, transport and disposal at its own expense
                  of all (i) substances or materials that it or its contractors
                  or agents bring to, create or assume control over at work
                  locations or, (ii) waste resulting therefrom or otherwise
                  generated in connection with its or its contractors' or
                  agents' activities at the work locations. Subject to the
                  limitations on liability and except as otherwise provided in
                  this Agreement, each Party shall be responsible for (i) its
                  own acts and performance of all obligations imposed by
                  applicable law in

                                                                       Page 18
<PAGE>

                  connection with its activities, legal status and property,
                  real or personal and, (ii) the acts of its own affiliates,
                  employees, agents and contractors during the performance of
                  that Party's obligations hereunder.

          (A)3.22 NO THIRD PARTY BENEFICIARIES

                  This Agreement does not provide and shall not be construed to
                  provide third parties with any remedy, claim, liability,
                  reimbursement, cause of action, or other privilege.
                  Notwithstanding the foregoing, the Parties agree to give
                  notice to the Commission of any lawsuits or other proceedings
                  that involve or arise under the Agreement to ensure that the
                  Commission has the opportunity to seek to intervene in these
                  proceedings on behalf of the public interest.

          (A)3.23 REFERENCED DOCUMENTS

                  All references to Sections shall be deemed to be references to
                  Sections of this Agreement unless the context shall otherwise
                  require. Whenever any provision of this Agreement refers to a
                  technical reference, technical publication, RESELLER practice,
                  USW practice, any publication of telecommunications industry
                  administrative or technical standards, or any other document
                  specifically incorporated into this Agreement, it will be
                  deemed to be a reference to the most recent version or edition
                  (including any amendments, supplements, addenda, or
                  successors) of such document that is in effect, and will
                  include the most recent version or edition (including any
                  amendments, supplements, addenda, or successors) of each
                  document incorporated by reference in such a technical
                  reference, technical publication, RESELLER practice, USW
                  practice, or publication of industry standards. USW will not
                  implement changes in the most recent version or edition in the
                  documents described above when such changes are optional. The
                  existing configuration of either Party's network may not be in
                  immediate compliance with the latest release of applicable
                  referenced documents.

          (A)3.24 PUBLICITY

                  Neither Party shall publish or use any publicity materials
                  with respect to the execution and delivery or existence of
                  this Agreement without the prior written approval of the other
                  Party.

          (A)3.25 AMENDMENT

                  RESELLER and USW may mutually agree to amend this Agreement in
                  writing. Since it is possible that amendments to this
                  Agreement may be needed to fully satisfy the purposes and
                  objectives of this Agreement, the Parties agree to work
                  cooperatively, promptly and in good faith to negotiate and
                  implement any such additions, changes and corrections to this
                  Agreement. The Commission must approve of any amendment,
                  modification, or supplement to this Agreement.

          (A)3.26 EXECUTED IN COUNTERPARTS

                  This Agreement may be executed in any number of counterparts,
                  each of which shall be deemed an original; but such
                  counterparts shall together constitute one and the same
                  instrument.

                                                                        Page 19

<PAGE>

          (A)3.27 HEADINGS OF NO FORCE OR EFFECT

                  The headings of Sections of this Agreement are for convenience
                  of reference only, and shall in no way define, modify or
                  restrict the meaning or interpretation of the terms or
                  provisions of this Agreement.

          (A)3.28 REGULATORY APPROVAL

                  The Parties understand and agree that this Agreement will be
                  filed with the Commission for approval. In the event the
                  Commission rejects any portion of this Agreement, renders it
                  inoperable or creates an ambiguity that requires further
                  amendment, the Parties agree to meet and negotiate in good
                  faith to arrive at a mutually acceptable modification.

          (A)3.29 COMPLIANCE

                  Each Party shall comply with all federal, state, and local
                  laws, rules and regulations applicable to its performance
                  under this Agreement. Without limiting the foregoing, USW and
                  RESELLER agree to take all action necessary to keep and
                  maintain in full force and effect all permits, licenses,
                  certificates, insurance, and other authorities needed to
                  perform their respective obligations hereunder.

         (A)3.30  COMPLIANCE WITH THE COMMUNICATIONS ASSISTANCE FOR LAW
                  ENFORCEMENT ACT OF 1994 ("CALEA")

                  Each Party represents and warrants that any equipment,
                  facilities or services provided to the other Party under this
                  Agreement comply with CALEA. Each Party shall indemnify and
                  hold the other Party harmless from any and all penalties
                  imposed upon the other Party for such noncompliance and shall
                  at the noncompliant Party's sole cost and expense, modify or
                  replace any equipment, facilities or services provided to the
                  other Party under this Agreement to ensure that such
                  equipment, facilities and services fully comply with CALEA.

          (A)3.31 COOPERATION

                  The Parties agree that this Agreement involves the provision
                  of USW services in ways such services were not previously
                  available and the introduction of new processes and procedures
                  to provide and bill such services. Accordingly, the Parties
                  agree to work jointly and cooperatively in testing and
                  implementing processes for pre-ordering, ordering,
                  maintenance, provisioning and billing and in reasonably
                  resolving issues which result from such implementation on a
                  timely basis. Electronic processes and procedures are
                  addressed in Part D of this Agreement.

          (A)3.32 AVAILABILITY OF OTHER AGREEMENTS

                  With regard to the availability of other agreements, the
                  Parties agree that the provisions of Section 252(i) of the Act
                  shall apply, including state and federal, Commission and court
                  interpretive regulations and decisions in effect from time to
                  time.

                                                                         Page 20

<PAGE>

                                 PART B - RESALE

 (B)1. DESCRIPTION

          (B)1.1      Pursuant to the Act and this Part B, USW shall offer
                      for resale at wholesale  rates any Telecommunications
                      Services it provides to end users who are not
                      Telecommunications Carriers including terms and
                      conditions (except prices) in the USW Tariffs, where
                      applicable. RESELLER may obtain intraLATA toll service
                      from USW for resale or RESELLER has the option to
                      self-provision intraLATA toll or to obtain intraLATA
                      toll for resale from another provider.

          (B)1.2      The Parties agree that certain USW services are not
                      available for resale under this Agreement and certain
                      other USW services are available for resale but not at
                      a discount, as identified in Part E or in individual
                      state Tariffs. The availability of services and
                      applicable discounts identified in Part E or in
                      individual Tariffs are subject to change pursuant to
                      the Rates and Charges sub-section of this Resale
                      section.

 (B)2. TERMS AND CONDITIONS

          (B)2.1      Basic Exchange Telecommunications Service, Basic Exchange
                      Features, Private Line Service, Frame Relay Service and
                      intraLATA Toll may be resold only for their intended or
                      disclosed use and only to the same class of end user to
                      which USW sells such services (e.g., residence service may
                      not be resold to business end users). Service provided
                      directly to RESELLER for its own use, such as
                      administrative services, must be identified by RESELLER
                      and RESELLER must pay the full retail rates and prices for
                      such services.

          (B)2.2      USW shall provide to RESELLER Telecommunications Services
                      for resale that are at least equal in quality, and in
                      substantially the same time and manner that USW provides
                      these services to others, including other Resellers and
                      end users, and in accordance with any applicable
                      Commission service quality standards, including standards
                      the Commission may impose pursuant to Section 252 (e)(3)
                      of the Act.

          (B)2.3      In the event that there are existing agreements between
                      RESELLER and USW for resale under USW retail Tariff
                      discounts, RESELLER may elect to continue to obtain
                      services for resale under the existing agreements and
                      retail Tariff discounts or RESELLER may elect to terminate
                      such existing agreements and obtain such services under
                      this Agreement with the associated wholesale discount
                      specified in Part E of this Agreement.

          (B)2.4      In accordance with the Act, RESELLER will provide the date
                      it will begin to offer Telecommunications Services to
                      residential and business end users. RESELLER will provide
                      a two (2) year forecast within ninety (90) calendar days
                      of signing this Agreement The forecast shall be updated
                      and provided to USW on a annual basis or as requested by
                      USW. Each forecast will provide:

                                                                        Page 21
<PAGE>

                                                                         Part B
                                                                         Resale

                      -  The date service will be offered (by city and/or
                         state)
                      -  The type and quantity of service(s) which will be
                         offered
                      -  RESELLER's anticipated number of service orders
                      -  Name of RESELLER's key contact personnel

                      The information provided pursuant to this paragraph shall
                      be considered Proprietary Information under the
                      Nondisclosure Section of this Agreement.

          (B)2.5      RESELLER may not reserve blocks of USW telephone numbers,
                      except as allowed by Tariffs.

          (B)2.6      USW will accept at no charge one primary listing for each
                      main telephone number belonging to RESELLER's end user
                      based on end user information provided to USW by RESELLER.
                      USW will place RESELLER's listings in USW's directory
                      listing database for directory assistance purposes.
                      Additional terms and conditions with respect to directory
                      listings are described in Part C of this Agreement.

          (B)2.7      USW shall provide to RESELLER, for RESELLER's end
                      users, E911/911 call routing to the appropriate Public
                      Safety Answering Point ("PSAP). USW shall not be
                      responsible for any failure of RESELLER to provide
                      accurate end user information for listings in any
                      databases in which USW is required to retain and/or
                      maintain end user information.. USW shall provide and
                      validate RESELLER's end user information to the
                      Automatic Location Identification/Database Management
                      System ("ALI/DMS"). USW shall use its standard process
                      to update and maintain, on the same schedule that it
                      uses for its end users, RESELLER's end user service
                      information in the ALI/DMS used to support E911/911
                      services. USW assumes no liability for the accuracy of
                      information provided by RESELLER.

          (B)2.8      If USW provides and RESELLER accepts operator
                      services, directory assistance, and intraLATA long
                      distance as a part of the resold line, it will be
                      offered with standard USW branding. RESELLER is not
                      permitted to alter the branding of these services in
                      any manner when the services are a part of the resold
                      line without the prior written approval of USW.
                      However, at the request of RESELLER and where
                      technically feasible, USW will rebrand operator
                      services and directory assistance in RESELLER's name,
                      provided the charges associated with such rebranding
                      are paid by RESELLER.

          (B)2.9      RESELLER shall designate the Primary Interexchange Carrier
                      (PIC) assignments on behalf of its end users for interLATA
                      services and intraLATA services.

          (B)2.10     When end users switch from USW to RESELLER, or to
                      RESELLER from any other Reseller, and if they do not
                      change their service address to an address served by a
                      different Central Office, such end users shall be
                      permitted to retain their current telephone numbers if
                      they so desire. USW shall take no action to prevent
                      RESELLER end users from retaining their current telephone
                      numbers.

                                                                         Page 22

<PAGE>

                                                                         Part B
                                                                         Resale

          (B)2.11     RESELLER is liable for all fraud associated with service
                      to its end-users and accounts. USW takes no
                      responsibility, will not investigate, and will make no
                      adjustments to RESELLER's account in cases of fraud unless
                      such fraud is the result of any intentional act or gross
                      negligence of USW. Notwithstanding the above, if USW
                      becomes aware of potential fraud with respect to
                      RESELLER's accounts, USW will promptly inform RESELLER
                      and, at the direction of RESELLER, take reasonable action
                      to mitigate the fraud where such action is possible.

          (B)2.12     Resold services are available only where facilities
                      currently exist and are capable of providing such
                      services without construction of additional facilities
                      or enhancement of existing facilities. However, if
                      RESELLER requests that facilities be constructed or
                      enhanced to provide resold services, USW will review
                      such requests on a case-by-case basis and determine if
                      it is economically feasible for USW to build or
                      enhance facilities. If USW decides to build or enhance
                      the requested facilities, USW will develop and provide
                      to RESELLER a price quote for the construction.
                      Construction charges associated with resold services
                      will be applied in the same manner that construction
                      charges apply to USW's retail end users. If the quote
                      is accepted, RESELLER will be billed the quoted price
                      and construction will commence after receipt of
                      payment.

          (B)2.13     In the event USW terminates the provisioning of any
                      resold services to RESELLER for any reason, including
                      RESELLER's non-payment of charges, RESELLER shall be
                      responsible for providing any and all necessary notice to
                      its end users of the termination. In no case shall USW be
                      responsible for providing such notice to RESELLER's end
                      users. USW will provide notice to RESELLER of USW's
                      termination of a resold service on a timely basis
                      consistent with Commission rules and notice requirements.

          (B)2.14     The underlying network provider of a resold service shall
                      be entitled to receive, from the purchaser of Switched
                      Access, the appropriate access charges pursuant to its
                      then effective Switched Access Tariff.

          (B)2.15     Centrex terms and conditions related to calculation of
                      charges for, and provisioning of common blocks, station
                      lines, and optional features will be based on the Centrex
                      definition of a system and a [Resellers] serving location.

                      (B) 2.15.1    Where a common block is applicable, a
                                    Centrex system is defined by a single common
                                    block or multiple common blocks for a single
                                    RESELLER within a single Central Office
                                    switching system. A common block defines the
                                    dialing plan for intercom calling, access to
                                    Public Switched Network and/or private
                                    facilities, station line and system
                                    restrictions and feature access arrangements
                                    and functionality. RESELLER may purchase
                                    multiple common blocks within a single
                                    Central Office switching system when
                                    RESELLER

                                                                        Page 23

<PAGE>

                                                                         Part B
                                                                         Resale

                                    requires different dialing plans, feature
                                    access arrangements and station line or
                                    system restrictions within a single system
                                    operation. A Reseller with multiple common
                                    blocks within the same Central Office switch
                                    may have Network Access Register and Private
                                    Facility trunk groups aggregated across
                                    multiple common blocks. Centrex system based
                                    optional features (i.e. Automatic Route
                                    Selection) may not be aggregated across
                                    multiple common blocks. A Centrex system
                                    must provide station lines to at least one
                                    location and may provide station lines to
                                    multiple locations.

                   (B) 2.15.2       Centrex station lines are provisioned
                                    and charges are calculated based on
                                    serving [Reseller's] location. A location
                                    is defined as the site where USW
                                    facilities (cable plant from the serving
                                    Central Office switch) meet RESELLER
                                    facilities (inside wire). In a multi-
                                    tenant building, USW may bring
                                    facilities directly to a single point of
                                    interconnection with RESELLER
                                    facilities, typically in a basement
                                    equipment room, which would be
                                    considered a single location for this
                                    multi-tenant building. Should USW bring
                                    service to multiple floors or offices
                                    within a multi-tenant building each
                                    floor or office with a separate RESELLER
                                    facilities termination point is
                                    considered a location. Multiple
                                    buildings within contiguous property
                                    (campus) will be provisioned and billed
                                    as a single location. Contiguous
                                    property is defined as property owned or
                                    leased by a single end user and not
                                    separated by public thoroughfare, river
                                    or railroad rights-of-way. Property will
                                    be considered contiguous when connected
                                    via connecting passageways or conduit
                                    acceptable to USW for its facilities. A
                                    Reseller with Centrex station lines from
                                    multiple Central Office switching
                                    systems, within the same USW Wire
                                    Center, and provisioned to the same
                                    location will not be charged for service
                                    or provisioned as if service was
                                    originating from a single Centrex
                                    system. For example, station lines may
                                    only be aggregated from a single Centrex
                                    Reseller system to a single Reseller
                                    serving location for rating purposes.
                                    RESELLER may not specify a USW Central
                                    Office as a RESELLER location for
                                    termination of Centrex station lines.

          (B)2.16  Private Line Service used for Special Access is available
                   for resale but not at a discount.

          (B)2.17  DSL Service (such as Megabit Service) is available for resale
                   by RESELLER out of USW's Interstate Tariff, but at no
                   wholesale discount.

                                                                        Page 24
<PAGE>

                                                                         Part B
                                                                         Resale

 (B)3. RATES AND CHARGES

          (B)3.1      The Telecommunications Services identified in Part E are
                      available for resale at the wholesale discount percentage
                      shown in Part E. Telecommunications Services available for
                      resale but excluded from the wholesale pricing arrangement
                      in this Agreement are available at the retail Tariff
                      rates.

          (B)3.2      The Customer Transfer Charges (CTC) as specified in
                      Part E apply when transferring services to RESELLER.

          (B)3.3      A Subscriber Line Charge (SLC), or any subsequent
                      federally mandated charge to end users, will continue to
                      be paid by RESELLER without discount for each local
                      exchange line resold under this Agreement. All federal and
                      state rules and regulations associated with SLC as found
                      in the applicable Tariffs also apply.

          (B)3.4      RESELLER will pay to USW the PIC change charge without
                      discount for RESELLER end user changes of interexchange or
                      intraLATA carriers. Any change in RESELLER's end users'
                      interexchange or intraLATA carrier must be requested by
                      RESELLER on behalf of its end user.

          (B)3.5      RESELLER agrees to pay USW when its end user activates any
                      services or features that are billed on a per use or per
                      activation basis subject to the applicable discount in
                      Part E as such may be amended pursuant to this Section
                      (e.g., continuous redial, last call return, call back
                      calling, call trace, etc.).

          (B)3.6      Product specific non-recurring charges, as set forth in
                      USW's applicable Tariffs will apply when additional lines,
                      trunks or circuits are added or when the end user adds
                      features or services to existing lines or trunks.

          (B)3.7      Miscellaneous charges, if applicable, will be consistent
                      with charges for equivalent services ordered by USW end
                      users.

          (B)3.8      The wholesale discount rates in Part E established in
                      the Minnesota Docket Nos. P-442,421/M-96-855, P5321,
                      421/M96-909 and P-3167, 421M/-96-729, Order Resolving
                      Issues after Reconsideration and Approving Contract,
                      "In the Matter of AT&T Communications of the Midwest,
                      Inc., MCIMetro Access Transmission Services, Inc. and
                      MFS Communications Company, for Arbitration of the
                      Interconnection Rates, Terms and Pursuant to 47 U.S.C.
                      Sec. 252(b) of the Telecommunications Act of 1996",
                      (the "AT&T Rate Arbitration") are interim rates and
                      are pending the outcome of a final Commission decision
                      in an interconnection cost docket. Such rates, as
                      adopted in this Agreement, will be subject to true-up
                      from the date those rates became effective in this
                      Agreement to the effective date of the final
                      interconnection cost docket order. Notwithstanding
                      this true-up obligation, the Parties agree that rates
                      in this Agreement will remain in effect as described
                      below until the exhaustion of all appeals of the final
                      order in the interconnection cost docket.

                                                                         Page 25

<PAGE>

                                                                         Part B
                                                                         Resale

          (B)3.9      The Parties intend that, if the AT&T rates or the
                      services in the AT&T Arbitration are changed by any
                      negotiations, appeal, stay, injunction, settlement, or
                      similar proceeding with respect to AT&T, those rates
                      and services, if they have been adopted into this
                      Agreement, shall be changed in this Agreement to the
                      same extent as the rates and services in the AT&T
                      Arbitration. Notwithstanding the above, the Parties
                      agree that in the event a stay or injunction is
                      granted with respect to the implementation of the
                      services and rates in the AT&T Arbitration, the
                      Parties agree that the telecommunications services
                      still available for resale following the stay or
                      injunction will be available to RESELLER, effective as
                      of the date of the stay order or injunction, at a
                      wholesale discount rate of 12% (the "Standard Rate")
                      until such time as a nonappealable order establishes a
                      wholesale discount rate(s). If the Standard Rate
                      becomes effective pursuant to this paragraph, the
                      Standard Rate will also be subject to true-up to the
                      rate(s) established in the nonappealable order for the
                      period that the Standard Rate was in effect. If the
                      AT&T rates or the applicability of the rate to the
                      services in Part E is changed by a nonappealable
                      administrative or judicial order following approval of
                      negotiated rates, rates reached in an approved
                      settlement agreement, a decision on appeal or other
                      similar proceeding, such changed rate(s) will be
                      available to RESELLER, effective as of the date of the
                      order. The AT&T rate shall be subject to true-up to
                      the changed rates for the period of time the AT&T rate
                      was in effect. Notwithstanding the above, no true-up
                      of either the Standard Rate or the AT&T rate will
                      occur unless ordered as a part of the nonappealable
                      administrative or judicial order.

          (B)3.10     If the resold services are purchased pursuant to Tariffs
                      and the Tariff rates change, charges billed to RESELLER
                      for such services will be based upon the new Tariff rates
                      less the applicable wholesale discount, if any, as agreed
                      to herein or as established by Commission order and/or
                      resale Tariff. The new rate will be effective upon the
                      Tariff effective date.

   (B)4. ORDERING PROCESS

          (B)4.1      RESELLER, or RESELLER's agent, shall act as the single
                      point of contact for its end users' service needs,
                      including without limitation, sales, service design,
                      order taking, provisioning, change orders, training,
                      maintenance, trouble reports, repair, post-sale
                      servicing, billing, collection and inquiry. RESELLER
                      shall inform its end users that they are end users of
                      RESELLER for resold services. RESELLER's end users
                      contacting USW will be instructed to contact RESELLER;
                      however, nothing in this Agreement, except as provided
                      below, shall be deemed to prohibit USW from discussing
                      its products and services with RESELLER's end users
                      who call USW.

          (B)4.2      RESELLER shall transmit to USW all information necessary
                      for the ordering (billing, listing and other information),
                      installation, repair, maintenance and post-installation
                      servicing according to USW's standard procedures, as

                                                                         Page 26

<PAGE>

                                                                         Part B
                                                                         Resale

                      described in the USW Interconnect & Resale Resource Guide
                      available on USW's Web site. Information shall be provided
                      using USW's designated Local Service Request (LSR) format
                      which may include the LSR, end user and resale forms.
                      RESELLER must send USW complete and accurate end user
                      listing information for Directory Assistance, Directory
                      Listings, and 911 Emergency Services using USW's
                      designated resale directory listing order forms. When
                      USW's end user or the end user's new service provider
                      orders the discontinuance of the end user's existing
                      service in anticipation of moving to another service
                      provider, USW will render its closing bill to the end user
                      effective with the disconnection. If another service
                      provider, RESELLER's end user or RESELLER requests that
                      service be discontinued from RESELLER and subsequently
                      USW's service to RESELLER is discontinued USW will issue a
                      bill to RESELLER for that portion of the service provided
                      to RESELLER.. USW will notify RESELLER by FAX, OSS
                      interface or other agreed upon processes, in accordance
                      with the OSS section of this Agreement when an end user
                      moves to another service provider. USW will not provide
                      RESELLER with the name of the other service provider
                      selected by the end user.

          (B)4.3      RESELLER shall provide USW and USW shall provide RESELLER
                      with points of contact for order entry, problem resolution
                      and repair of the resold services.

          (B)4.4      Prior to placing orders on behalf of the end user,
                      RESELLER shall be responsible for obtaining and have in
                      its possession Proof of Authorization ("POA"), as set
                      forth in Part A of this Agreement.

          (B)4.5      Due date interval standards are addressed in the
                      Interconnect & Resale Resource Guide.

          (B)4.6      Firm Order Confirmation (FOC) guidelines are addressed in
                      the Interconnect & Resale Resource Guide.

          (B)4.7      USW will provide completion notification that is equal to
                      that provided to USW end users.

          (B)4.8      USW will provide Design Layout Records when requested
                      under terms and conditions consistent with USW end users.

          (B)4.9      USW will handle jeopardy orders based upon the same
                      performance standards and criteria that USW provides to
                      itself.

 (B)5. BILLING

          (B)5.1      USW shall bill RESELLER and RESELLER is responsible for
                      all applicable charges for the resold services as
                      provided herein. RESELLER shall also be responsible for
                      all Tariffed charges and charges separately identified in
                      this Agreement associated with services that RESELLER
                      resells to an end user under this Agreement.

          (B)5.2      USW shall provide RESELLER, on a monthly basis, within
                      7-10 calendar days of the last day of the most recent
                      billing period, in an agreed upon standard electronic
                      billing format as detailed in Part D, billing information
                      including (1) a

                                                                        Page 27
<PAGE>

                                                                     Part B
                                                                     Resale

                      summary bill, and (2) individual end user sub-account
                      information consistent with the samples available for
                      RESELLER review.

(B)6. MAINTENANCE AND REPAIR

      RESELLER and USW will employ the procedures for handling misdirected
      repair calls as specified in the Maintenance and Repair Section of this
      Agreement.

      (B)6.1   USW will maintain facilities and equipment used to provide
               RESELLER resold services. RESELLER or its end user may not
               rearrange, move, disconnect, or attempt to repair USW
               facilities or equipment, other than by connection or
               disconnection to any interface between USW and the end user,
               without written consent of USW.

      (B)6.2   Maintenance and repair processes are detailed in the
               Maintenance and Repair Section of this Agreement.

                                                                     Page 28

<PAGE>

                                                                     Part C
                                                         Directory Listings

                         PART C - WHITE PAGES DIRECTORY LISTINGS

(C)1. DESCRIPTION

      White Pages Listings Service (Listings) consists of USW placing the
      names, addresses and telephone numbers of RESELLER's end users in
      USW's listing database, based on end user information provided to
      USW by RESELLER. USW is authorized to use Listings in Directory
      Assistance (DA) and as noted below.

(C)2. TERMS AND CONDITIONS

      (C)2.1   RESELLER will provide in standard, mechanized format, and USW
               will accept at no charge, one primary listing for each main
               telephone number belonging to RESELLER's end users. Primary
               listings for RESELLER will include the end user Listings for
               any resold services or wireless services and are further
               defined in USW's general exchange Tariffs. RESELLER will be
               charged for premium and privacy listings, (e.g., additional,
               foreign, cross reference, informational, etc.), at USW's
               general exchange listing Tariff rates, less the wholesale
               discount. If RESELLER utilizes Remote Call Forwarding for
               local number portability, RESELLER can list only one number
               without charge - either the end user's original telephone
               number or RESELLER-assigned number. The standard discounted
               rate for an additional listing applies to the other number.

      (C)2.2   USW will furnish RESELLER the Listings format specifications.
               All manual requests are considered a project and require
               coordination between RESELLER and USW to determine time frames.

      (C)2.3   RESELLER grants USW a non-exclusive license to incorporate
               Listings information into its Directory Assistance database.
               With this license USW will incorporate Listings in the DA
               database.

      (C)2.4   No prior authorization is needed for USW to release Listings to
               directory publishers or other third parties. USW will incorporate
               Listings information in all existing and future directory
               assistance applications developed by USW. RESELLER authorizes USW
               to sell and otherwise make Listings available to directory
               publishers. Listings shall not be provided or sold in such a
               manner as to segregate end users by carrier. USW will not charge
               for updating and maintaining the Listings database. RESELLER
               will not receive compensation from USW for any sale of Listings
               by USW.

      (C)2.5   To the extent that state Tariffs limit USW's liability with
               regard to Listings, the applicable state Tariff(s) is
               incorporated herein and supersedes the Limitation of Liability
               section of this Agreement with respect to Listings only.

                                                                     Page 29

<PAGE>

                                                                     Part C
                                                         Directory Listings

      (C)2.6   USW is responsible for maintaining Listings, including entering,
               changing, correcting, rearranging and removing Listings in
               accordance with RESELLER orders. USW will take reasonable steps
               in accordance with industry practices to accommodate
               non-published and non-listed Listings provided that RESELLER
               has supplied USW the necessary privacy indicators on such
               Listings.

      (C)2.7   USW will include RESELLER Listings in USW's Directory Assistance
               service to ensure that callers to USW's Directory Assistance
               service have non-discriminatory access to RESELLER's Listings.

      (C)2.8   USW will ensure RESELLER Listings provided to USW are included
               in the white pages directory published on USW's behalf.

      (C)2.9   RESELLER agrees to provide to USW its end user names, addresses
               and telephone numbers in a standard mechanized format, as
               specified by USW.

      (C)2.10  RESELLER will supply its ACNA/CIC or CLCC/OCN, as appropriate,
               with each order to provide USW the means of identifying
               Listings ownership.

      (C)2.11  Upon request by USW, RESELLER shall submit proof to USW, of
               authorization from each end user for which RESELLER submits
               a change in end user's Listing.

      (C)2.12  RESELLER represents and warrants the end user information
               provided to USW is accurate and correct. RESELLER further
               represents and warrants that it has reviewed all Listings
               provided to USW, including end user requested restrictions
               on use such as non-published and non-listed. RESELLER shall
               be solely responsible for knowing and adhering to state laws
               or rulings regarding Listings (e.g., no solicitation
               requirements in the states of Arizona and Oregon, privacy
               requirements in Colorado), and for supplying USW with the
               applicable Listing information.

      (C)2.13  RESELLER is responsible for all dealings with, and on behalf
               of, RESELLER's end users, including:

               (C)2.13.1  All end user account activity, (e.g. end user
                          queries and complaints).

               (C)2.13.2  All account maintenance activity, (e.g., additions,
                          changes, issuance of orders for Listings to USW).

               (C)2.13.3  Determining privacy requirements and accurately
                          coding the privacy indicators for RESELLER's end
                          user information. If end user information provided
                          by RESELLER to USW does not contain a privacy
                          indicator, no privacy restrictions will apply.

                                                                     Page 30

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                                                                     Part C
                                                         Directory Listings

               (C)2.13.4  Any additional services requested by RESELLER's
                          end users.

                                                                     Page 31
<PAGE>

                                                                     Part D
                                                   Miscellaneous Provisions

                              PART D - MISCELLANEOUS PROVISIONS

(D)1. NETWORK SECURITY

      (D)1.1  Protection of Service and Property - Each Party shall exercise
              the same degree of care to prevent harm or damage to the other
              Party and any third parties, its employees, agents or end users,
              or their property as it employs to protect its own personnel,
              end users and property, etc. Each Party shall comply at all
              times with USW security and safety procedures and requirements.

      (D)1.2  Revenue Protection - USW shall make available to RESELLER all
              present and future fraud prevention or revenue protection
              features. These features include, but are not limited to
              screening codes, and 900 numbers.

      (D)1.3. Law Enforcement Interface - USW provides emergency assistance
              to 911 centers and law enforcement agencies seven (7) days a
              week/twenty-four (24) hours a day. Assistance includes, but is
              not limited to release of 911 trace and subscriber
              information; in-progress trace requests; establishing
              emergency trace equipment, release of information from an
              emergency trap/trace or *57 trace; requests for emergency
              subscriber information; assistance to law enforcement agencies
              in hostage/barricade situations, kidnappings, bomb threats,
              extortion/scams, runaways and life threats.

      (D)1.4  USW provides trap/trace, pen register and Title III assistance
              directly to law enforcement, if such assistance is directed by
              a court order. This service is provided during normal business
              hours, Monday through Friday. Exceptions are addressed in the
              above paragraph. The charges for these services will be billed
              directly to the law enforcement agency, without involvement of
              RESELLER, for any lines served from USW Wire Centers or cross
              boxes.

      (D)1.5  In all cases involving telephone lines served from USW Wire
              Centers or cross boxes, USW will perform trap/trace Title III
              and pen register assistance directly with law enforcement.
              RESELLER will not be involved or notified of such actions, due
              to non-disclosure court order considerations, as well as
              timely response duties when law enforcement agencies are
              involved. Exceptions to the above will be those cases, as yet
              undetermined, where RESELLER must participate due to technical
              reasons wherein its circuitry must be accessed or modified to
              comply with law enforcement, or for legal reasons that may
              evolve over time. RESELLER will provide USW with a 24 hour a
              day, 7 days a week contact for processing such requests,
              should they occur.

(D)2. ACCESS TO OPERATIONAL SUPPORT SYSTEMS (OSS)

      (D)2.1  Description

              (D)2.1.1   USW has developed and shall continue to provide
                         Operational Support Systems OSS interfaces using
                         electronic gateways. These gateways act as a
                         mediation or control point between RESELLER's

                                                                     Page 32

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                                                                     Part D
                                                   Miscellaneous Provisions

                         and USW's OSS. These gateways provide security
                         for the interfaces, protecting the integrity of
                         the USW OSS and its databases. USW's OSS
                         interfaces have been developed to support
                         Pre-ordering, Ordering and Provisioning,
                         Maintenance and Repair and Billing. Included
                         below is a description of the products and
                         functions supported by USW OSS interfaces and
                         the technology used by each. This section
                         describes the interfaces that USW has developed
                         and shall provide RESELLER. Additional
                         technical information and details shall be
                         provided by USW in training sessions and
                         documentation, such as the "Interconnect
                         Mediated Access User's Guide". USW will
                         continue to make improvements to the electronic
                         interfaces as technology evolves, providing
                         notification to RESELLER consistent with the
                         provisions of this Section.

              (D)2.1.2   Through its electronic gateways, USW shall
                         provide RESELLER nondiscriminatory access to
                         USW's operational support systems for
                         pre-ordering, ordering and provisioning,
                         maintenance and repair, and billing for resale.
                         For the pre-ordering, ordering and provisioning
                         of resold services, USW shall provide RESELLER
                         access to its OSS in substantially the same
                         time and manner as it provides to itself.

      (D)2.2  OSS Support for Pre-Ordering, Ordering and Provisioning

              (D)2.2.1   LSR (Local Service Request) Ordering Process

                         (D)2.2.1.1  RESELLER shall use electronic interfaces
                                     for orders placed using the LSR Ordering
                                     Process for the services it supports. The
                                     electronic interface gateways include both
                                     the Electronic Data Interchange (EDI)
                                     interface and the Interconnect Mediated
                                     Access (IMA) Graphical User Interface
                                     (GUI).

                         (D)2.2.1.2  The EDI interface provides a single
                                     interface for Pre-Order and Order
                                     transactions from RESELLER to USW and is
                                     transaction based rather than batch based.
                                     The interface standards for EDI are based
                                     upon the Order & Billing Forum (OBF) Local
                                     Service Order Guidelines (LSOG), the
                                     Telecommunication Industry Forum (TCIF)
                                     Customer Service Guideline and the American
                                     National Standards Institute/Accredited
                                     Standards Committee (ANSI ASC) X12 with
                                     exceptions as specified in the IMA and EDI
                                     disclosure documents which are provided in
                                     conjunction with the implementation
                                     responsibilities contained in this Section.

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                                                                     Part D
                                                   Miscellaneous Provisions

                         (D)2.2.1.3  The IMA GUI also provides a single
                                     interface for Pre-Order and Order
                                     transactions from RESELLER to USW and is
                                     browser based The IMA GUI interface is
                                     based on the LSOG and utilizes a WEB
                                     standard technology, Hyper Text Markup
                                     Language (HTML), JAVA, and the
                                     Transmission Control Protocol/Internet
                                     Protocol (TCP/IP) to transmit messages.

                         (D)2.2.1.4  Functions

                             (D)2.2.1.4.1  Pre-ordering

                                           Pre-Ordering refers to the set of
                                           activities performed in conjunction
                                           with placing an order. Pre-order
                                           consists of the following functions:
                                           validate address, service
                                           availability, review Customer Service
                                           Record (CSR), check facility
                                           availability, reserve telephone
                                           numbers, and schedule an appointment.
                                           The electronic interface gateways
                                           provide on-line capabilities to
                                           perform these functions. Not all
                                           functions apply to all products.

                                   (D)2.2.1.4.1.1  Validate address will verify
                                                   the end user's address.

                                       (D)2.2.1.1.4.1.2  Service Availability
                                                         will return the list of
                                                         (1) POTS products and
                                                         services available in
                                                         the Central Office
                                                         switch serving a
                                                         particular end user
                                                         address, which will
                                                         indicate to RESELLER,
                                                         among other things,
                                                         which products and
                                                         services are authorized
                                                         for resale in the
                                                         Central Office switch
                                                         serving a particular
                                                         end user address and
                                                         (2) non-switched-based
                                                         products and services
                                                         that RESELLER is
                                                         authorized to provide
                                                         according to its
                                                         resale agreement with
                                                         USW.

                                       (D)2.2.1.1.4.1.3  Review Customer Service
                                                         Record (CSR) gives
                                                         RESELLER the ability to
                                                         request a display of
                                                         local exchange services
                                                         and features (CPNI) USW
                                                         is currently providing
                                                         to an end user.

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                                                                     Part D
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                                   (D)2.2.1.4.1.4 Check Facility Availability
                                         will provide an indication of whether
                                         existing facilities are available or
                                         if new facilities are required, and
                                         if a technician must be dispatched to
                                         provide the facilities requested at
                                         the end user's address. This
                                         transaction does not reserve
                                         facilities and does not guarantee
                                         that facilities will or will not be
                                         available when the order is submitted.

                                   (D)2.2.1.4.1.5 Reserve Telephone Numbers
                                         provides RESELLER with the ability
                                         to select an end user's telephone
                                         number. The reservation process is
                                         further divided into telephone
                                         number availability, selection,
                                         exchange and return functionality.
                                         Expiration period for selection and
                                         submission of Telephone Number are:

                                            - A period up to thirty (30) minutes
                                         in which to make a telephone number
                                         selection. If this time limit is
                                         exceeded, and no attempt has been made
                                         to select the telephone numbers, the
                                         telephone numbers are sent back to the
                                         OSS and an error message is displayed
                                         on the LSR. A new query will need to
                                         be performed for available telephone
                                         numbers.
                                            - When a telephone number has been
                                         reserved, there is a twenty-four (24)
                                         hour business period that the
                                         telephone number may be included on
                                         an LSR. If the time limit is exceeded,
                                         the telephone number is returned to
                                         the OSS.

                                   (D)2.2.1.4.1.6 Schedule Appointment allows
                                         RESELLER to retrieve a calendar of
                                         available appointments and to reserve
                                         an appointment date and time so that a
                                         technician can be dispatched for
                                         premises and/or non-premises work.

                                   (D)2.2.1.4.1.7 Expiration period for
                                         selection and submission of
                                         Appointment Reservation are:

                                            - A selection must be made within a
                                              thirty (30) minute period. If an
                                              appointment

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                                                                     Part D
                                                   Miscellaneous Provisions

                                              has been selected and the time
                                              limit was exceeded, an error
                                              message will display. If the error
                                              message displays, an updated list
                                              of available appointments will
                                              need to be requested. If an
                                              appointment has already been
                                              reserved for this Purchase Order
                                              Number, the Appointment
                                              Confirmation window will be
                                              displayed and will be
                                              pre-populated with confirmation
                                              number, appointment date and time,
                                              and after and before times.
                                            - Appointments are reserved for a
                                              24-hour business period. If the
                                              appointment is not attached to a
                                              submitted order within 24 business
                                              hours, the appointment is
                                              returned. When the appointment is
                                              successfully reserved,
                                              confirmation of the appointment
                                              will be displayed to RESELLER.

                             (D)2.2.1.4.2  Ordering and Provisioning

                                         Submitting an LSR will result in the
                                         provisioning and installation, if
                                         necessary, of an end user's service.
                                         The functional set associated with
                                         ordering is: Create New LSR, Open LSR,
                                         Query LSR Status and FOC Return.

                                     (D)2.2.1.4.2.1  Create New LSR allows entry
                                           of information specific to the LSR,
                                           including required OBF forms,
                                           validates information and submits the
                                           LSR for processing.

                                     (D)2.2.1.4.2.2  Open LSR allows RESELLER to
                                           save LSRs it is not ready to submit
                                           for processing as a pending status.
                                           When an LSR is saved as pending, all
                                           the data in all the forms associated
                                           with the LSR is saved. This feature
                                           permits RESELLER to access, edit,
                                           submit, re-save, and purge pending
                                           LSRs. In addition, for issued LSRs,
                                           RESELLER can issue supplemental LSRs
                                           and cancellations.

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                                                                     Part D
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                                     (D)2.2.1.4.2.3  Query LSR Status allows
                                            RESELLER to obtain the status of the
                                            LSR. Status is provided to RESELLER
                                            upon inquiry. Order status functions
                                            include the following: Submitted, In
                                            Review, Issued, Rejected, Erred,
                                            Completed and Jeopardy.

                                     (D)2.2.1.4.2.4 FOC Return returns a Firm
                                            Order Confirmation to RESELLER. The
                                            FOC confirms that USW has received a
                                            SR, issued an order, and assigned an
                                            order number for tracking.

                             (D)2.2.1.5 Forecast of Usage

                                  (D)2.2.1.5.1  RESELLER shall supply USW with a
                                                forecast of products and volumes
                                                they anticipate ordering through
                                                the electronic interface
                                                gateways on a quarterly basis.

                                  (D)2.2.1.5.2  USW will use RESELLER's forecast
                                                to provide RESELLER sufficient
                                                capacity to provide the services
                                                and elements requested. If
                                                RESELLER exceeds its capacity
                                                without notification, to the
                                                extent that it causes
                                                degradation to other users'
                                                response times, RESELLER's use
                                                of its capacity on the IMA or
                                                EDI server may be discontinued
                                                until a resolution can be
                                                mutually agreed to by both
                                                Parties. USW will attempt to
                                                notify RESELLER before
                                                discontinuing RESELLER's use of
                                                the IMA or EDI server; however
                                                USW reserves the right to
                                                discontinue use if it is unable
                                                to contact RESELLER.

                                  (D)2.2.1.5.3  When RESELLER requests more than
                                                twenty (20) Secure IDs from USW
                                                RESELLER shall use a T1 line
                                                instead of dial-up capabilities.

                             (D)2.2.1.6. Access Service Request (ASR) Ordering
                                         Process

                                  (D)2.2.1.6.1  The Exchange Access Control and
                                                Tracking (EXACT) system may be
                                                used for orders placed using the
                                                ASR process. EXACT is based upon
                                                the OBF Access Service Order
                                                Guidelines (ASOG). The EXACT
                                                interface accepts a batch

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                                                                     Part D
                                                   Miscellaneous Provisions

                                                file that is transmitted via a
                                                Network Data Mover (NDM)
                                                connection to USW from RESELLER.
                                                It is RESELLER's responsibility
                                                to obtain the appropriate
                                                software to interface with USW's
                                                EXACT system.

                             (D)2.2.1.7 Facility Based EDI Listing Process

                                  (D)2.2.1.7.1  The Facility Based EDI Listing
                                                Process is a single interface
                                                from RESELLER to USW. This
                                                interface is based upon the OBF
                                                LSOG and ANSI ASC X12 standards,
                                                version 4010. This interface
                                                enables RESELLER listing data to
                                                be translated and passed into
                                                the USW listing database. After
                                                USW's daily batch processing, a
                                                Confirmation/Completion record
                                                (for every PON provided on
                                                input) is returned to RESELLER
                                                via an EDI 855 transaction.

                   (D)2.2.2  Maintenance and Repair

                             (D)2.2.2.1  Maintenance and Repair electronic
                                         interfaces support the tracking and
                                         resolution of end users' repair and
                                         maintenance needs as reported to
                                         RESELLER. They facilitate the exchange
                                         of updated information and progress
                                         reports between USW and RESELLER while
                                         the Trouble Report (TR) is open and a
                                         USW technician is working on the
                                         resolution.

                             (D)2.2.2.2  RESELLER shall use the electronic
                                         interface gateways for reporting
                                         trouble. The electronic interface
                                         gateways are comprised of either the
                                         Mediated Access System Electronic
                                         Bonding (MEDIACC EB) interface or the
                                         IMA GUI interface.

                             (D)2.2.2.3  The MEDIACC Electronic Bonding (EB)
                                         interface uses CMIP protocol over
                                         X.25 packet switching network using
                                         ANS T1M1.5 227/228 standards.

                             (D)2.2.2.4  The IMA GUI also provides a single
                                         interface for trouble reporting from
                                         RESELLER to USW and is browser based.
                                         The IMA GUI interface uses a Berkley
                                         Socket interface using ANSI T1M1.5
                                         227/228 standards. The IMA GUI uses
                                         JAVA as the standard. The IMA GUI
                                         Interface currently supports trouble
                                         reporting for resale services.

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                                                                     Part D
                                                   Miscellaneous Provisions

                             (D)2.2.2.5  Functions

                                  (D)2.2.2.5.1  Maintenance and Repair - The
                                                functions, processes and systems
                                                used in repair are based on a
                                                Trouble Report (TR), which is an
                                                electronic document maintained
                                                in one or more OSS. A TR
                                                contains information about the
                                                end user, the trouble, the
                                                status of the work on the
                                                trouble and the results of the
                                                investigation and resolution
                                                efforts. These business
                                                processes will be made available
                                                to RESELLER in the following
                                                functional set: open a trouble
                                                report, modify a trouble report,
                                                notification of status change,
                                                view trouble report status,
                                                cancel a trouble report, receive
                                                a trouble report history,
                                                resubmit/delete an erred trouble
                                                report and close a trouble
                                                report.

                                         (D)2.2.2.5.1.1  Open Trouble Report is
                                                the mechanism that captures
                                                information needed to resolve
                                                the trouble. Once a TR has been
                                                opened, if RESELLER is using
                                                MEDIACC EB, USW sends an
                                                electronic transaction to
                                                RESELLER identifying information
                                                about the TR (E.G., commitment
                                                date and tracking number).

                                         (D)2.2.2.5.1.2  In IMA for POTS, and in
                                                EBTA for POTS and designed
                                                services, Modify Trouble Report
                                                allows RESELLER to modify the
                                                trouble severity (for example;
                                                change from "service affecting"
                                                to "out of service") and trouble
                                                narrative on a TR until it has
                                                been cleared.

                                         (D)2.2.2.5.1.3  Status Change
                                                Notification provides
                                                notification to RESELLER that
                                                the status of a previously
                                                opened TR has changed. if
                                                RESELLER is using MEDIACC EB,
                                                RESELLER will receive this
                                                notification via an electronic
                                                transaction. If RESELLER is
                                                using the IMA GUI Interface,
                                                RESELLER will receive this
                                                notification via email and/or
                                                fax.

                                         (D)2.2.2.5.1.4  View Trouble Report
                                                Status/Trouble Report Status
                                                Request allows RESELLER to
                                                view the status of an opened
                                                Trouble Report. If RESELLER is
                                                using MEDIACC EB, USW sends an
                                                electronic transaction to
                                                RESELLER with the

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                                                                     Part D
                                                   Miscellaneous Provisions

                                                status of an opened TR after
                                                RESELLER sends an electronic
                                                transaction to request the
                                                status.

                                         (D)2.2.2.5.1.5  Cancel Trouble Report
                                                allows RESELLER to request
                                                cancellation of a previously
                                                opened TR. Once a request to
                                                cancel is received, an orderly
                                                cessation of the trouble
                                                resolution process begins. If
                                                USW has completed any work
                                                before the trouble resolution
                                                process is stopped, charges to
                                                RESELLER may apply.

                                         (D)2.2.2.5.1.6  Trouble Report History
                                                provides RESELLER with
                                                historical information on up to
                                                the last three trouble reports.
                                                For POTS resale, the disposition
                                                and trouble report date and time
                                                are provided. For design
                                                services resale, the trouble
                                                report date and time, a text
                                                description of the disposition,
                                                the USW Trouble Report Number,
                                                and the trouble type are
                                                provided. IMA provides trouble
                                                report history.

                                         (D)2.2.2.5.1.7  Resubmit/Delete allows
                                                trouble reports to be
                                                resubmitted or deleted via IMA
                                                GUI if, prior to entering USW's
                                                OSS, the transaction fails or
                                                errors. This transaction is
                                                only valid if the TR has not
                                                entered USW's OSS. This
                                                transaction is currently only
                                                available via IMA GUI.

                                  (D)2.2.5.1.8  Close a Trouble Report for
                                                resale, allows USW to close the
                                                TR once work is complete. For
                                                design resale services, USW
                                                sends RESELLER a request for
                                                verification to close. RESELLER
                                                then authorizes or denies the
                                                closure. RESELLER has
                                                twenty-four (24) hours to
                                                respond. If a response is not
                                                received within that time frame,
                                                the TR will automatically be
                                                closed. USW provides
                                                notification to RESELLER that a
                                                TR has been closed because the
                                                trouble was resolved. Additional
                                                information, (e.g., disposition,
                                                disposition description, outage
                                                duration, maintenance of
                                                service, charge indicator) is
                                                also included. If RESELLER is
                                                using EB, RESELLER will receive
                                                this response via an electronic

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                                                                       Part D
                                                     Miscellaneous Provisions

                                          transaction. If RESELLER is using
                                          the IMA GUI Interface, RESELLER will
                                          receive this response via email and/or
                                          fax.

                           (D)2.2.2.5.1.9 MLT test results give [-Reseller] the
                                          ability to request a loop test for
                                          POTS service via EBTA. When RESELLER
                                          submits a TR throught IMA, the
                                          technician handling the TR will order
                                          a MLT test in appropriate situations.

(D)2.3 Hours of Operation
       USW's electronic interface gateways will be available to Resellers
       according to the following schedule:

<TABLE>
<CAPTION>
--------------------------------------- ------------------------ --------------------- ------------------------
Function                                Monday - Friday          Saturday              Sunday
--------------------------------------- ------------------------ --------------------- ------------------------
<S>                                     <C>                      <C>                   <C>
IMA Pre-Order & Order                   06:00 - 20:00
--------------------------------------- ------------------------ --------------------- ------------------------
Exact Order                             06:00 - 19:00            07:00 - 17:00
--------------------------------------- ------------------------ --------------------- ------------------------
Repair                                  02:15 - 23:15            07:00 - 21:00         13:00 - 17:00
--------------------------------------- ------------------------ --------------------- ------------------------
</TABLE>

         USW shall notify Resellers regarding system downtime through
         mass facsimile distribution and pop-up windows in the IMA
         GUI. All referenced times are Mountain Time.

         The preceding times represent the period when USW commits that
         its OSS interfaces and downstream systems will be functioning
         (except for unforeseen system crashes) and its personnel will
         be available to assist RESELLER. USW's OSS interfaces are
         typically available 23 hours a day. RESELLER may call any
         maintenance and repair issues to the applicable repair center
         24 hours per day, seven days per week. USW shall provide
         RESELLER current repair contact numbers.

(D)2.4 Billing

      (D)2.4.1      For products billed out of the USW
                    Interexchange Access Billing System (IABS), USW
                    will utilize the existing CABS/BOS format and
                    technology for the transmission of bills.

      (D)2.4.2      For products billed out of the USW Customer Record
                    Information System (CRIS), USW will utilize the existing
                    EDI standard for the transmission of monthly local billing
                    information. EDI is an established standard under the
                    auspices of the American National Standards Institute/
                    Accredited Standards Committee (ANSI/ASC) X12 Committee. A
                    proper subset of this specification has been adopted by
                    the Telecommunications Industry Forum (TCIF) as the "811
                    Guidelines" specifically for the purposes of
                    telecommunications billing.

                                                                       PAGE 41
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                                                                        Part D
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(D)2.5 Outputs

       Output information will be provided to RESELLER in the form of bills,
       files, and reports. Bills will capture all regular monthly and
       incremental/usage charges and present them in a summarized format. The
       files and reports delivered to RESELLER provide more detailed
       information than the bills. They come in the following categories:

<TABLE>
<CAPTION>
----------------------------------- ---------------------------------------------------------------
Usage Record File                   Line Usage Information
----------------------------------- ---------------------------------------------------------------
<S>                                 <C>
Loss and Completion                 Order Information
----------------------------------- ---------------------------------------------------------------
Category 11                         Facility Based Line Usage Information
----------------------------------- ---------------------------------------------------------------
SAG/FAM                             Street Address/Facility Availability Information
----------------------------------- ---------------------------------------------------------------
</TABLE>
       (D)2.5.1  Bills

                     (D)2.5.1.1   CRIS Summary Bill - The CRIS (Customer Record
                                  Information System) Summary Bill represents
                                  a monthly summary of charges for most
                                  wholesale products sold by USW. This bill
                                  includes a total of all charges by entity
                                  plus a summary of current charges and
                                  adjustments on each sub-account. Individual
                                  sub-accounts are provided as billing detail
                                  and contain monthly, one time charges and
                                  incremental/call detail information. The
                                  Summary provides one bill and one payment
                                  document for RESELLER. These bills are
                                  segmented by state and bill cycle. The number
                                  of bills received by RESELLER is dictated by
                                  the product ordered and the USW region in
                                  which RESELLER is operating.

                   (D)2.5.1.2     IABS Bill - The IABS (Interexchange Access
                                  Billing System) Bill represents a monthly
                                  summary of charges. This bill includes
                                  monthly and one time charges plus a summary
                                  of any usage charges. These bills are
                                  segmented by product, LATA, billing account
                                  number (BAN) and bill cycle.

      (D)2.5.2  Files and Reports

                   (D)2.5.2.1     Daily Usage Record File provides the
                                  accumulated set of call information for a
                                  given day as captured, or " recorded" by the
                                  network switches. This file will be
                                  transmitted Monday through Friday, excluding
                                  USW holidays. This information is a file of
                                  un-rated USW originated usage messages and
                                  rated RESELLER originated usage messages. It
                                  is provided in Alliance for Telecommunication
                                  Industry Solution (ATIS) standard

                                                                       PAGE 42

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                                                                        Part D
                                                      Miscellaneous Provisions

                                  Electronic Message Interface (EMI) format.
                                  This EMI format is outlined in the document
                                  SR-320; which can be obtained directly from
                                  ATIS. The Daily Usage Record File contains
                                  multi-state data for the Data Processing
                                  Center generating this information.
                                  Individual state identification information
                                  is contained with the message detail. USW
                                  will provide this data to RESELLER with the
                                  same level of precision and accuracy it
                                  provides itself. This file will be provided
                                  for Resale services.

                   (D)2.5.2.2     The charge for this Daily Usage Record File
                                  is contained in Part E of this Agreement.

                   (D)2.5.2.3     Routing of in-region IntraLATA Collect,
                                  Calling Card, and Third Number Billed
                                  Messages - USW will distribute in-region
                                  intraLATA collect, calling card, and third
                                  number billed messages to RESELLER and
                                  exchange with other Co-Providers operating
                                  in region in a manner consistent with
                                  existing inter-company processing agreements.
                                  Whenever the daily usage information is
                                  transmitted to a carrier, it will contain
                                  these records for these types of calls as
                                  well.

                   (D)2.5.2.4     Loss Report provides RESELLER with a daily
                                  report that contains a list of accounts that
                                  have had lines and/or services disconnected.
                                  This may indicate that the end user has
                                  changed Resellers or removed services from an
                                  existing account. This report also details
                                  the order number, service name and address,
                                  and date this change was made. Individual
                                  reports will be provided for resale services.:

                   (D)2.5.2.5     Completion Report provides RESELLER with a
                                  daily report. This report is used to advise
                                  RESELLER that the order(s) for the service(s)
                                  requested is complete. It details the order
                                  number, service name and address and date
                                  this change was completed. Individual reports
                                  will be provided for resale services.:

                                  This report media is described in Exhibit C.

                   (D)2.5.2.6     Category 11 Records are Exchange Message
                                  Records (EMR) which provide mechanized record
                                  formats that can be used to exchange access
                                  usage information between USW and RESELLER.
                                  Category 1101 series

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                                                                         Part D
                                                       Miscellaneous Provisions

                                           records are used to exchange detailed
                                           access usage information.

                              (D)2.5.2.7   Category 1150 series records are used
                                           to exchange summarized Meet Point
                                           Billed access minutes-of-use.

                                             These mechanized records are
                                             available from USW in the following
                                             formats:

                                             NDM (direct connect or dial-up)
                                             Comet
                                             Tape
                                             Cartridge

                             (D)2.5.2.8   SAG/FAM Files - The SAG (Street
                                          Address Guiders)/FAM (Facility
                                          Availability Matrix) files contain the
                                          following information:

                                          SAG provide: - Address and Serving
                                          Central Office Information.

                                          FAM provides USOCs and descriptions
                                          by state - (POTS services only.)  USOC
                                          availability by NPA-NXX (with the
                                          exception of Centrex). interLATA/
                                          intraLATA carriers by NPA/NXX.

                                          These files are made available via a
                                          download process. They can be
                                          retrieved by ftp (file transfer
                                          protocol), NDM (Network Data Mover)
                                          connectivity, or a Web browser.

         (D)2.6 Modifications to OSS Interfaces

                   (D)2.6.1    RESELLER and USW agree to discuss the
                               modification of OSS interfaces based upon
                               evolving standards (e.g., data elements,
                               protocols, transport networks, etc.) and
                               guidelines issued by or referenced by relevant
                               Alliance for Telecommunication Industry Solution
                               (ATIS) committees. Establishment of new, or
                               changes to industry standards and guidelines will
                               be reviewed semi-annually. The review will
                               consider standards and guidelines that have
                               reached final closure as well as those  published
                               in final form. Both Parties agree to evaluate
                               evolving standards and determine the relevant
                               modification to be implemented based upon the
                               latest approved version adopted or the latest
                               version reflecting final closure by the relevant
                               ATIS committee or subcommittee. As a result of
                               the review, USW shall draft appropriate interface
                               specifications that shall be made available to
                               RESELLER through the electronic gateway
                               disclosure document. Changes shall be implemented
                               in the next release after the distribution of the
                               electronic gateway disclosure document to the
                               Resellers.

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                                                                         Part D
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                   (D)2.6.2    In the course of establishing operational ready
                               system interfaces between USW and RESELLER to
                               support local service delivery, RESELLER and USW
                               may need to define and implement system interface
                               specifications that are supplemental to existing
                               standards. RESELLER and USW will submit such
                               specifications to the appropriate standards
                               committee and will work towards their acceptance
                               as a standard.

                   (D)2.6.3    Release updates will be based on regulatory
                               obligations as dictated by the FCC or Commissions
                               and, as time permits, business requirements. USW
                               will provide to RESELLER the features list for
                               modifications to the interface. Specifications
                               for interface modifications will be provided to
                               RESELLER three (3) weeks prior to the release
                               date. RESELLER is required to upgrade to the
                               current release within six (6) months of the
                               installation date.

          (D)2.7 Reseller Responsibilities for Implementation of OSS Interfaces

                   (D)2.7.1    Before any RESELLER implementation can begin,
                               RESELLER must completely and accurately answer
                               the New Customer Questionnaire. This
                               questionnaire is provided by the USW account
                               manager and details information needed by USW
                               in order to establish service for RESELLER.

                   (D)2.7.2    Once USW receives a complete and accurate New
                               Customer Questionnaire, USW and RESELLER will
                               mutually agree upon time frames for RESELLER
                               implementation.

                   (D)2.7.3    If using the EDI interfaces, USW will provide
                               RESELLER with a copy of the Production
                               Readiness Verification document. RESELLER is
                               obligated to meet the requirements specified in
                               the Production Readiness Verification document
                               regardless of whether RESELLER chooses to
                               participate in the Production Readiness
                               Verification Test.

          (D)2.8 Reseller Responsibilities for On-going Support for OSS
                Interfaces

                   (D)2.8.1    If using the IMA GUI interface, RESELLER must
                               work with USW to train RESELLER personnel on
                               the IMA GUI functions that RESELLER will be
                               using. USW and RESELLER shall concur on which
                               IMA GUI functions should be included in
                               RESELLER's training. USW and RESELLER shall
                               make reasonable efforts to schedule training in
                               a timely fashion.

                   (D)2.8.2    An exchange protocol will be used to transport
                               EDI formatted content. RESELLER must perform
                               certification testing of exchange protocol
                               prior to using EDI.

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                                                                         Part D
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                   (D)2.8.3    If RESELLER is using EDI, USW shall provide
                               RESELLER with a pre-allotted amount of time to
                               complete certification of its business scenarios.
                               It is the sole responsibility of RESELLER to
                               schedule an appointment with USW for
                               certification of its business scenarios. RESELLER
                               must comply with the agreed upon dates and times
                               scheduled for the certification of its business
                               scenarios. If the certification of business
                               scenarios is delayed due to RESELLER, it is the
                               sole responsibility of RESELLER to schedule new
                               appointments for certification of its business
                               scenarios. Conflicts in the schedule could result
                               in certification being delayed. If a delay is due
                               to USW, USW will honor RESELLER's schedule
                               through the use of alternative hours.

                   (D)2.8.4    If RESELLER is using the EDI interface, RESELLER
                               must work with USW to certify the business
                               scenarios that RESELLER will be using in order to
                               ensure successful transaction processing. USW and
                               RESELLER shall mutually agree to the business
                               scenarios for which RESELLER is required to be
                               certified. Certification is granted only for a
                               specific release of EDI. New releases of EDI may
                               require recertification of some or all business
                               scenarios. A determination as to the need for
                               re-certification will be made by the USW
                               Coordinator in conjunction with the release
                               manager of each EDI release. Notice of the need
                               for re-certification will be provided to RESELLER
                               three (3) weeks prior to the release date.

                   (D)2.8.5    In the event of Electronic Interface trouble,
                               RESELLER shall use its best efforts to isolate
                               and resolve the trouble using the guidelines
                               provided in the Production Readiness
                               Verification document. If RESELLER cannot
                               resolve the problem, then RESELLER should
                               contact the LSP Systems Help Desk. The LSP
                               Systems Help Desk is RESELLER's Single Point of
                               Contact for electronic interface trouble.

          (D)2.9 Reseller Support

                   (D)2.9.1    USW shall provide adequate assistance to RESELLER
                               for RESELLER to understand how to implement and
                               use the OSS functions for which USW provides
                               access. This assistance will include training,
                               documentation, and a LSP Help Desk. The LSP Help
                               Desk will provide a single point of entry for
                               RESELLER to gain assistance in areas involving
                               connectivity, system availability, and file
                               outputs. The LSP Systems Help Desk is available
                               Monday through Friday, 6:00 a.m. until 8:00 p.m.
                               Mountain Time, excluding USW holidays. The Help
                               Desk areas are further described below..

                               (D)2.9.1.1     Connectivity covers trouble with
                                              RESELLER's access to the USW
                                              system for hardware configuration
                                              requirements with relevance to
                                              EDI and IMA GUI;

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                                                                         Part D
                                                       Miscellaneous Provisions

                                              software configuration
                                              requirements with relevance to
                                              EDI and IMA GUI; modem
                                              configuration requirements; T1
                                              configuration and dial in string
                                              requirements; firewall access
                                              configuration; Secure ID
                                              configuration; Profile Setup and
                                              password verification.

                               (D)2.9.1.2     System availability covers system
                                              errors generated during an
                                              attempt by RESELLER to place
                                              orders or open trouble reports
                                              through EDI and IMA GUI. These
                                              system errors are limited to:
                                              POTS; Design Services and Repair.

                               (D)2.9.1.3     File Outputs covers RESELLER's
                                              output files and reports produced
                                              from its usage and order activity.
                                              File outputs system errors are
                                              limited to: Daily Usage File;
                                              Loss / Completion File; IABS
                                              Bill; CRIS Summary Bill; Category
                                              11 Report and SAG/FAM Reports.

                   (D)2.9.2    Additional assistance to Resellers is available
                               through various web sites. These web sites
                               provide electronic interface training information
                               and user documentation and technical
                               specifications.

          (D)2.1 Compensation/ Cost Recovery

                 On-going and one-time startup charges, as applicable, will be
                 billed at rates to be specified by the Commission at the
                 completion of an appropriate cost docket hearing. USW shall
                 establish rates for any systems charges not included in
                 appropriate cost docket hearings.

(D)3. US WEST DEX

      USW and RESELLER agree that certain issues outside the provision of basic
      white page directory listings, such as yellow pages advertising, yellow
      pages listings, directory coverage, directory distribution, access to call
      guide pages (phone service pages), applicable listings criteria, white
      page enhancements and publication schedules will be the subject of
      negotiations between RESELLER and directory publishers, including
      U S WEST Dex. USW acknowledges that RESELLER may request USW to
      facilitate discussions between RESELLER and U S WEST Dex.

(D)4. NOTICE OF CHANGES

      Notice should be written and provide pertinent descriptive information of
      such changes, within the limitations of confidentiality and disclosure,
      such that the other Party can evaluate potential effects. Also included
      with the written notice should be contact names and phone numbers for
      subsequent discussions.

      This represents good faith effort on the part of the Parties and will
      evolve over time as required for the effective provision of resale
      services and end user service delivery.

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                                                                         Part D
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(D)5. MAINTENANCE AND REPAIR

          (D)5.1 Service Levels

                   (D)5.1.1    USW will provide repair and maintenance for all
                               services covered by this Agreement in a manner
                               equal to that which USW provides for itself.

                   (D)5.1.2    During the term of this Agreement, USW will
                               provide necessary maintenance business process
                               support to allow RESELLER to provide similar
                               service quality to that provided by USW to its
                               end users.
                   (D)5.1.3    USW will perform repair service that is equal
                               in timeliness and quality to that which it
                               provides to its own end users.
          (D)5.2 Branding

                   (D)5.2.1    Should USW need to use various forms for
                               communication with RESELLER end users (while
                               out on premises dispatch on behalf of
                               RESELLER, for example), USW will use unbranded
                               forms.

                   (D)5.2.2    If required by RESELLER, USW will use branded
                               forms provided at RESELLER's full expense,
                               covering training costs, storage, printing,
                               distribution and all other branding-related
                               costs.

          (D)5.3 Service interruptions

                   (D) 5.3.1   The characteristics and methods of operation of
                               any circuits, facilities or equipment of either
                               Party connected with the services, facilities or
                               equipment of the other Party pursuant to this
                               Agreement shall not: 1) interfere with or impair
                               service over any facilities of the other Party;
                               its affiliated companies, or its connecting and
                               concurring carriers involved in providing its
                               services; 2) cause damage to their plant; 3)
                               violate any applicable law or regulation
                               regarding the invasion of privacy of any
                               communications carried over the Party's
                               facilities; or 4) create hazards to the employees
                               of either Party or to the public. Each of these
                               requirements is hereinafter referred to as an
                               "Impairment of Service".

                   (D) 5.3.2   If it is confirmed that either Party is causing
                               an Impairment of Service, as set forth in this
                               Section, the Party whose network or service is
                               being impaired (the "Impaired Party") shall
                               promptly notify the Party causing the Impairment
                               of Service (the "Impairing Party") of the nature
                               and location of the problem. The Impaired Party
                               shall advise the Impairing Party that, unless
                               promptly rectified, a temporary discontinuance
                               of the use of any circuit, facility or equipment
                               may be required. The Impairing Party and the
                               Impaired Party agree to work together to attempt
                               to promptly resolve the Impairment of Service. If
                               the Impairing Party is unable to promptly remedy
                               the Impairment of

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                                                                         Part D
                                                       Miscellaneous Provisions

                               Service, the Impaired Party may temporarily
                               discontinue use of the affected circuit,
                               facility or equipment.

                   (D) 5.3.3   To facilitate trouble reporting and to
                               coordinate the repair of the service provided
                               by each Party to the other under this
                               Agreement, each Party shall designate a repair
                               center for such service.

                   (D) 5.3.4   Each Party shall furnish a trouble reporting
                               telephone number for the designated repair
                               center. This number shall give access to
                               the location where records are normally located
                               and where current status reports on any trouble
                               reports are readily available. If necessary,
                               alternative out-of-hours procedures shall be
                               established to ensure access to a location that
                               is staffed and has the authority to initiate
                               corrective action.

                   (D) 5.3.5   Before either Party reports a trouble condition,
                               it shall use its best efforts to isolate the
                               trouble to the other's facilities

                                (D) 5.3.5.1   In cases where a trouble condition
                                              affects a significant portion of
                                              the other's service, the Parties
                                              shall assign the same priority
                                              provided to other Resellers and
                                              to itself.

                                (D) 5.3.5.2   The Parties shall cooperate in
                                              isolating trouble conditions.

          (D)5.4 Trouble Isolation

                   (D)5.4.1    According to applicable state Tariffs, USW will
                               bill appropriate Trouble Isolation Charges for
                               dispatched work done by USW where the trouble
                               is found to be on the end user's side of the
                               NID or trouble is found to be in RESELLER's
                               portion of the network.

                   (D)5.4.2    Other Trouble Isolation Charges may also be
                               imposed by USW on RESELLER for other internal
                               repair work incurred on behalf of RESELLER and
                               later found to be in RESELLER network
                               components.

          (D)5.5 Inside Wire Maintenance

                 Except where specifically required by state or federal
                 regulatory mandates, USW will not perform any maintenance of
                 inside wire (premises wiring beyond the end user's NID) for
                 RESELLER or its end users.

          (D)5.6 Testing/Test Requests/Coordinated Testing

                   (D)5.6.1    USW will make the decision to test an end
                               user's line or circuit. The test systems used
                               by USW are finite, and their capacity has been
                               designed according to USW's operating standards.

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                                                                         Part D
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                   (D)5.6.2    Although some types of trouble reports
                               typically will not require a test, USW usually
                               runs certain standard tests on each line on
                               which trouble has been reported.

                   (D)5.6.3    Prior to any test being conducted on a line, USW
                               must receive a trouble report from RESELLER.

                   (D)5.6.4    USW end users are not given test results. On
                               manually-reported trouble USW will not provide
                               to RESELLER the test results for its trouble
                               reports. For electronically-reported trouble,
                               RESELLER may see various basic test results.

          (D)5.7 Workcenter Interfaces

                   (D)5.7.1    USW and RESELLER shall work cooperatively to
                               develop positive, close working relationships
                               among corresponding work centers involved in
                               the trouble resolution processes..

          (D)5.8 Misdirected Repair Calls

                   (D)5.8.1    RESELLER shall inform its own end users where
                               to report their trouble conditions. Persons
                               placing a misdirected repair call will be
                               advised to call their own telephone service
                               provider and will be provided the correct
                               telephone number for that purpose (this
                               referral may occur within a voice response
                               system or other interactive systems).

                   (D)5.8.2    RESELLER and USW will employ the following
                               procedures for handling misdirected repair calls;

                               (D)5.8.2.1     RESELLER and USW will provide
                                              their respective end users with
                                              the correct telephone numbers
                                              to call for access to their
                                              respective repair bureaus.

                               (D)5.8.2.2     End users of RESELLER shall be
                                              instructed to report all cases
                                              of trouble to RESELLER. End
                                              users of USW shall be
                                              instructed to report all cases
                                              of trouble to USW.

                               (D)5.8.2.3     To the extent the correct
                                              provider can be determined,
                                              misdirected repair calls will
                                              be referred to the proper
                                              provider of Basic Exchange
                                              Telecommunications Service.

                               (D)5.8.2.4     RESELLER and USW will provide
                                              their respective repair contact
                                              numbers to one another on a
                                              reciprocal basis.

                               (D)5.8.2.5     In responding to repair calls,
                                              neither Party shall make
                                              disparaging remarks about each
                                              other, nor shall they use these
                                              repair calls as the basis for
                                              internal referrals or to
                                              solicit end users to market
                                              services.

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                                                                         Part D
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                               (D)5.8.2.6     Performance targets for speed
                                              of repair call answering will
                                              be the same as USW`s
                                              performance targets for its own
                                              end users.

          (D)5.9 Major Outages/Restoral/Notification

                   (D)5.9.1    USW will notify RESELLER of major network
                               outages as soon as is practical. This
                               notification will be via e-mail to RESELLER's
                               identified contact. With the minor exception
                               of certain proprietary information, USW will
                               utilize the same thresholds and processes for
                               external notification as it does for internal
                               purposes. This major outage information will
                               be sent via E-mail on the same frequency
                               schedule as is provided internally within USW.
                               Service restoration will be non-
                               discriminatory, and will be accomplished as
                               quickly as possible according to USW and/or
                               industry standards.

                   (D)5.9.2    If desired, USW will meet with associated
                               personnel from RESELLER to share contact
                               information and review USW's outage restoral
                               processes and notification processes.

                   (D)5.9.3    USW's emergency restoration process operates on a
                               7X24 basis.

          (D)5.10 Proactive Maintenance

                   (D)5.10.1   USW will perform scheduled maintenance equal in
                               quality to what it provides to itself.

                   (D)5.10.2   USW will work cooperatively with RESELLER to
                               develop industry-wide processes to provide as
                               much notice as possible to RESELLER of pending
                               maintenance activity. Such process work will
                               include establishment of reasonable thresholds
                               and notification standards.

          (D)5.11 Hours of Coverage

                   (D)5.11.1   USW's repair operation is 7 days a week, 24
                               hours a day. Not all functions or locations
                               are covered with scheduled employees on a 7X24
                               basis. Where such 7X24 coverage is not
                               available USW's repair operations center
                               (always available 7X24) can call-out
                               technicians or other personnel required for
                               the situation.

          (D)5.12  Escalations

                   (D)5.12.1   USW will provide trouble escalation procedures
                               to RESELLER. Such procedures will be based on
                               the processes USW employs for its own end
                               users. USW escalations are manual processes.

                   (D)5.12.2   USW repair escalations begin with calls to the
                               up-front trouble reporting centers.

          (D)5.13 Dispatch

                   (D)5.13.1   USW will provide maintenance dispatch
                               personnel on the same schedule provided for
                               its end users.

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                                                                         Part D
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                   (D)5.13.2   Upon receipt of a trouble report from
                               RESELLER, USW will do all that is reasonable
                               and practical, according to internal and
                               industry standards, to resolve the repair
                               condition. USW will dispatch repair personnel,
                               if necessary, to repair the condition. It will
                               be USW's decision whether it is necessary to
                               send a technician on a dispatch. USW will make
                               this dispatch decision based on the best
                               information available in the trouble
                               resolution process. Since it is not always
                               necessary to dispatch to resolve trouble;
                               should RESELLER require a dispatch when USW
                               believes the dispatch is not necessary,
                               appropriate charges may be billed to RESELLER
                               for dispatch-related costs.

                   (D)5.13.3   For non-designed resale services USW will not
                               request authorization from RESELLER prior to
                               dispatch. For lines supported by USW's
                               designed services process, USW may accept
                               RESELLER authorization to dispatch. USW's
                               operational processes are regularly reviewed
                               and may be altered in the future. Should
                               processes be changed, RESELLER will be
                               notified.

                   (D)5.13.4   USW expects that RESELLER will have performed
                               appropriate trouble isolation and screening
                               prior to handing the trouble report off to
                               USW.

          (D)5.14 Electronic Reporting

                   (D)5.14.1   USW will accept repair reports from RESELLER
                               through a mechanized system (IMA).

                  (D)5.14.2    USW will work cooperatively to develop repair
                               reporting via electronic bonding (other than
                               IMA), based on national standards.
          (D)5.15 Intervals

                   (D)5.15.1   Similar trouble conditions, whether reported
                               by USW end users or on behalf of RESELLER end
                               users, will receive similar commitment
                               intervals.

          (D)5.16 Jeopardy Management

                   (D)5.16.1   Notification will be given as soon as USW is
                               aware that a trouble report interval is likely
                               to be missed. This process will be the same as
                               that used by USW for its own end users.

          (D)5.17 Trouble Screening

                   (D)5.17.1   RESELLER shall screen and test its end user
                               trouble reports completely enough to insure
                               that it sends USW only trouble reports that
                               involve USW facilities.

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                                                                         Part D
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                   (D)5.17.2   If desired, USW will cooperate with RESELLER to
                               show RESELLER how USW screens trouble
                               conditions in its own centers, so that RESELLER
                               may employ similar techniques in its centers.

          (D)5.18 Maintenance Standards

                   (D)5.18.1   USW will cooperate with RESELLER to meet the
                               maintenance standards outlined in this Agreement.

                   (D)5.18.2   For manually-reported trouble, USW will inform
                               RESELLER of repair completion as soon as
                               practical after completion. On electronically
                               reported trouble reports the electronic system
                               will automatically update status information,
                               including trouble completion, across the joint
                               electronic gateway.

          (D)5.19 End User Interfaces

                   (D)5.19.1   RESELLER will be responsible for all
                               interactions with its end users including
                               service call handling and notifying end users
                               of trouble status and resolution.

                   (D)5.19.2   All USW employees who perform repair service
                               for RESELLER end users will be trained in
                               non-discriminatory behavior.

          (D)5.20 Repair Call Handling

                   (D)5.20.1   Manually-reported repair calls by RESELLER to
                               USW will be answered with the same quality and
                               speed USW answers calls from its own end users.

          (D)5.21 Single Point of Contact

                   (D)5.21.1   USW will provide a single point of contact for
                               RESELLER to report maintenance issues and
                               trouble reports via electronic interfaces seven
                               days a week, twenty-four hours a day.

                   (D)5.21.2   For manually-reported trouble reports, a single
                               7X24 trouble reporting telephone number will be
                               provided to RESELLER for each category of
                               trouble situation encountered.

          (D)5.22 Maintenance Windows

                   (D)5.22.1   Generally, USW performs major switch
                               maintenance activities during off-hours time
                               periods, during certain "maintenance windows"
                               in the early morning hours and/or on weekends.

                   (D)5.22.2   Generally, the maintenance window is from
                               10:00 PM to 6:00 AM Monday through Friday and
                               from 10:00 PM Saturday to 6:00 AM Monday.

                   (D)5.22.3   Although USW attempts to perform major switch
                               maintenance at these times, on some occasions
                               this will not be possible.

                                                                        Page 53

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                                                                         Part D
                                                       Miscellaneous Provisions

(D)6. SERVICE PERFORMANCE

          (D)6.1 General Provisions

                   (D)6. 1.1   USW will provide reports of service indicators
                               that will assist in an evaluation of the service
                               provided to RESELLER.

                   (D)6.1.2    In no instance shall this Agreement be
                               construed to require USW to provide superior
                               levels of service to RESELLER in comparison to
                               the level of service USW provides to itself or
                               its own end users.

                   (D)6.1.3    As further specified in this Section, USW will
                               provide results for the list of performance
                               indicators identified for the following
                               Standard Service Groupings: Resold Residential
                               Plain Old Telephone Service (POTS); Resold
                               Business POTS; Resold ISDN; Resold Centrex
                               service; Resold PBX trunks, Resold Direct
                               Inward Dialing (DID) and Resold Digital
                               Switched Service (DSS); Resold DS-0, Resold
                               DS-1,. Resold DS-3.

                   (D)6.1.4    As specified in this Section, USW will provide
                               results for the following types of Orders:

                                 C = Change in existing service or billing
                                 number
                                 D = total disconnect of service
                                 F = From the outward service associated with a
                                 transfer (To or "T") of service from one
                                 address to another
                                 N = New connection for service
                                 R = Record order; record change only.
                                 (For Resale services, service migrations
                                 without changes for non-designed services
                                 are record orders.)
                                 T = To or transfer of service from one
                                 address to another
                                 X = USW initiated internal work order

          (D)6.2 Service Performance Indicators

                 The following Service Performance Indicators will be provided
                 to RESELLER when available and upon request, but no more
                 frequently than once per month subject to the provisions of
                 this Section. The requests for additional Service Performance
                 Indicators during the term of this Agreement shall be
                 considered by USW However, USW is not required to provide
                 additional Service Performance Indicators during the term of
                 this Agreement. Service Performance Indicators characterized
                 as "Core" indicators measure most directly the service or
                 process outcome USW provides to RESELLER.

                 Performance Indicators characterized as "Diagnostic"
                 indicators are those that measure aspects of service quality
                 that support aspects measured by core indicators, that
                 represent sub-process outcomes, or that are otherwise
                 duplicative to some degree of aspects measured by "Core"
                 indicators.

                                                                        Page 54

<PAGE>

                                                                         Part D
                                                       Miscellaneous Provisions

                   (D)6.2.1    Core Performance Indicators

                               (D)6.2.1.1     Gateway Availability Indicator

                                     GA-1     Gateway Availability - via
                                              Human-to-Computer Interface
                                              (percent).

                                     GA-2     Gateway Availability - via
                                              Computer-to-Computer Interface
                                              (percent).

                               (D)6.2.1.2     Pre-Ordering Indicators

                                     PO-1     Pre-Order/Order Response times

                                              A. Appointment Scheduling (Due
                                                 Date Reservation, where
                                                 appointment is required)
                                              B. Feature Function and Service
                                                 Availability Information
                                              C. Facility Availability
                                              D. Street Address Validation
                                              E. Customer Service Records
                                              F. Telephone Number

                               (D)6.2.1.3     Ordering and Provisioning
                                              Indicators

                                  OP-1        Speed of Answer - Interconnect
                                              Provisioning Center (average)
                                  OP-2        Calls Answered within 20 Seconds -
                                              Interconnect Provisioning
                                              Center (percent)
                                  OP-3        Installation Commitments Met
                                              (percent)
                                  OP-4        Installation Interval (average)
                                  OP-5        Installation Trouble Reports
                                              (percent)l
                                  OP-6        Delayed Days (average)

                               (D)6.2.1.4     Maintenance and Repair Indicators

                                  MR-1        Speed of Answer - Interconnect
                                              Repair Center (average)
                                  MR-2        Percent Calls Answered Within 20
                                              Seconds - Interconnect Repair
                                              Center (percent)
                                  MR-3        Out of Service Cleared Within 24
                                              hours - Non-Designed Repair
                                              Process (percent)
                                  MR-4        All Troubles Cleared Within
                                              48 hours - Non-Designed
                                              Repair Process (percent)
                                  MR-5        All Troubles Cleared Within
                                              4 hours - Designed Repair
                                              Process (percent)
                                  MR-6        Mean Time to Restore -
                                              Non-Designed Repair Process
                                              (average)
                                  MR-7        Repair Repeat Report Rate
                                              (percent)
                                  MR-8        Trouble Rate (percent)

                               (D)6.2.1.5     Billing Indicators

                                                                         Page 55
<PAGE>

                                                                         Part D
                                                       Miscellaneous Provisions

                                  BI-1        Mean Time to Provide USW Recorded
                                              Usage Records ((average)
                                  BI-2        Mean Time to Deliver Invoices
                                              (average)BI-3        Billing
                                              Accuracy

                               (D)6.2.1.6     Emergency Services

                                  ES-1        ALI Database Updates Completed
                                              Within 24 hours (percent)
                                  ES-2        911/E911 Emergency Services Trunk
                                              Installation Interval (average)

                               (D)6.2.1.7     Directory Assistance

                                  DA-1        Speed of Answer - Directory
                                              Assistance (average)
                                  DA-2        Calls Answered Within Ten
                                              Seconds - Directory Assistance
                                              (percent)
                               (D)6.2.1.8     Operator Services
                                  OS-1        Speed of Answer - Operator
                                              Services (average)
                                  OS-2        Calls Answered Within Ten
                                              Seconds - Operator Services
                                              (percent)

                   (D)6.2.2    Diagnostic Indicators

                               In addition to the performance indicators
                               identified above, USW will report the
                               following indicators that do not directly
                               address nondiscrimination but may be useful
                               in diagnosing problems or improving service:

                               (D)6.2.2.1 Pre-Order/Ordering

                                  DPO-1       Electronic Flow - Through of Local
                                              Service Requests (LSRs) to the
                                              Service Order Processor (percent)
                                  DPO-2       LSR Rejection Notice Interval
                                              (average)
                                  DPO-3       LSRs Rejection (percent)
                                  DPO-4       Firm Order Confirmation (FOC)
                                              Interval (average)
                                  DPO-5       Pre-Order/Order Response Times
                                              for USW Retail Transactions
                                              (average)
                                  DPO-6       Completion Notifications
                                              Transmitted Within 24 hours
                                              (percent)
                                  DPO-7       Completion Notification Interval
                                              (average)

                               (D)6.2.2.2     Ordering and Provisioning

                                  DOP-1       RESELLER or RESELLER's Customer
                                              - Caused Installation Misses
                                              (percent)
                                  DOP-2       Delayed Orders Completed equal to
                                              greater than 15 days past the
                                              Commitment Date (percent)

                                                                         Page 56

<PAGE>

                                                                         Part D
                                                       Miscellaneous Provisions

                                  DOP-3       Delayed Orders Completed equal to
                                              or greater than 90 days past the
                                              Commitment Date (percent)
                                  DOP-4       RESELLER or RESELLER's
                                              Customer-Caused Coordinated
                                              Cutover Misses (percent)

                               (D)6.2.2.3     Maintenance and Repair

                                  DMR-1       RESELLER or RESELLER's
                                              Customer-Caused Trouble Reports
                                              (percent)
                               (D)6.2.2.4     Access to OSS Functions:
                                  (GA-1)      Gateway Availability -
                                              Human-to-Computer Interface
                                              (percent)
                                  (GA-2)      Gateway Availability -
                                              Computer-to-Computer Interface
                                              (percent)
                                  (PO-1)      Per-Order/Order Response Times
                                              (average)
                                  (OP-1 and MR-1) Speed of Answer - Provisioning
                                              and Repair Centers (average)
                                  (OP-2 and MR-2) Calls Answered Within 20
                                              Seconds - Provisioning and Repair
                                              Centers (percent)
                                  (BI-1)      Mean Time to Provide USW -
                                              Recorded Usage Records
                                  (BI-2)      Mean Time to Deliver Invoices
                                  (BI-3)      Billing Accuracy

                               (D)6.2.2.5     Access to Emergency Services
                                  (ES-1)      ALI Database Updates Within
                                              24 Hours (percent)
                                  (ES-1)      911/E911 ES Trunk Installation
                                              Intervals (average)

                               (D)6.2.2.6     Access to Directory Assistance and
                                              Operator Services:
                                  (DA-1 and OP-1) Speed of Answer (average)
                                  (DA-2 and OS-2) Calls Answered Within 10
                                              Seconds (percent)

                               (D)6.2.2.7     Resale Services Ordering and
                                              Provisioning: (OP-3) Installation
                                              Commitments Met (percent)
                                  (OP-4)      Installation Interval (average)
                                  (OP-5)      Installation Trouble Reports
                                              (percent)
                                  (OP-6)      Delayed Days (average)

                               (D)6.2.2.8     Resale Services Maintenance and
                                              Repair:
                                  (MR-3)      Out of Service Cleared Within
                                              24 Hours - Non-Designed Repair
                                              Process (percent)
                                  (MR-4)      All Troubles Cleared Within
                                              48 Hours - Non-Designed Repair
                                              Process (percent)
                                  (MR-5)      All Troubles Cleared Within
                                              4 Hours - Designed Repair Process
                                              (percent)
                                  (MR-6)      Mean Time to Restore (average)
                                  (MR-6)      Repair Repeated Report Rate
                                              (percent)
                                  (MR-6)      Trouble Rate (percent)

                                                                         Page 57

<PAGE>

                                                                         Part D
                                                       Miscellaneous Provisions

          (D)6.3 Service Quality Performance Results Reports

                   (D)6.3.1    For Resale, USW will provide core service
                               performance results for the performance
                               indicators listed above for RESELLER, other
                               Resellers in aggregate and USW end users.

          (D)6.4 Performance Results Provided to Reseller

                 The performance results provided to RESELLER by USW shall be
                 consistent with the current version of the USW Service
                 Performance Indicator Description (PID).

          (D)6.5 The performance results provided under this Agreement are to
                 be used solely for the purposes set forth herein, and shall
                 be treated as "Proprietary Information" as provided in
                 Section (A)3.14 of this Agreement.

          (D)6.6 Service Performance - Reported Events

                   (D)6.6.1    When applicable, USW will report
                               service-related performance results for all
                               "events". An "event" is the activity that
                               generates the measurement.

                   (D)6.6.2    The Parties will report RESELLER results
                               referenced above provided that RESELLER has
                               ordered and is utilizing the services reported;

                   (D)6.6.3    USW will provide the reports on a calendar
                               monthly basis. These reports will be provided
                               within forty-five (45) calendar days of the
                               close of the preceding month.

          (D)6.7 Self Executing Remedies

                 The purpose and focus of remedies provisions under this Resale
                 Agreement shall be to resolve significant differences in
                 service quality that have been identified through appropriate
                 comparisons of the service performance results reported for
                 the core performance indicators defined above. Self-executing
                 remedies are those actions, defined herein, that USW will
                 undertake in good faith and in cooperation with RESELLER to
                 respond to such differences immediately, without waiting for
                 determination of whether actual discrimination may exist.

                   (D)6.7.1    For this purpose, significant differences shall
                               be considered to be those that are determined to
                               be statistically, operationally, and materially
                               significant in each of three (3) or more
                               consecutive months and that reflect a probability
                               that inferior service was apparently provided to
                               RESELLER, based on the relevant comparison of
                               performance indicator results. Statistical
                               significance shall be determined as defined
                               below. Operational and material significance
                               shall be established by including for comparison
                               only those results that have (a) minimum sample
                               sizes of 30 each, and (b) a relevant comparison
                               demonstrating a service performance difference of
                               a magnitude that can be reasonably considered to
                               have a perceptible effect on end users or
                               RESELLER operations.

                                                                         Page 58
<PAGE>

                                                                         Part D
                                                       Miscellaneous Provisions

                   (D)6.7.2    Determination of the statistical significance
                               of any difference in appropriately comparable
                               results shall be based on statistical testing
                               for (1) differences in means (where performance
                               indicator results are reported as averages) or
                               (2) difference in proportions (where performance
                               indicator results are reported as percentages),
                               as follows:

                               (D)6.7.2.1     Determination of the significance
                                              of a difference in mean values of
                                              each monthly service performance
                                              indicator results shall be based
                                              on a "permutation" test using what
                                              is commonly referred to as a "Z"
                                              statistic and a maximum of 1,000
                                              randomly selected permutations of
                                              the samples. Where sample sizes
                                              exceed 600, the "Z" test using the
                                              "modified Z statistic" may be used
                                              instead of the permutation test.
                                              Where used, the modified Z
                                              statistic will be based on the
                                              statistical variance associated
                                              with USW's retail performance
                                              results, where applicable, or on
                                              the variance associated with
                                              RESELLER aggregate performance
                                              results, where there are no retail
                                              performance results.

                               (D)6.7.2.2     The significance of a difference
                                              in proportional measurements shall
                                              be based on direct calculation of
                                              the probability of the observed
                                              difference using the binomial
                                              distribution with a pooled P
                                              value.

                               (D)6.7.2.3     A difference in results by either
                                              test type (i.e., differences in
                                              means or differences in
                                              proportions) will be deemed
                                              statistically significant if the
                                              appropriate one tailed test
                                              indicates, with 99 percent
                                              confidence, that the performance
                                              indicator  results being compared
                                              appear to be from different
                                              populations of performance. In
                                              other words, that service being
                                              provided to RESELLER appears to be
                                              inferior to that represented by
                                              the comparable results (such as,
                                              results representing service
                                              provided to Resellers in
                                              aggregate or to USW retail).

                   (D)6.7.3    For each case in which a significant difference
                               as defined above has occurred, USW shall:

                               (D)6.7.3.1     Immediately investigate to
                                              determine the cause(s) of the
                                              difference and, where feasible,
                                              begin good-faith efforts to
                                              resolve the difference;

                               (D)6.7.3.2     Within 45 days, provide to
                                              RESELLER a written explanation of
                                              the result of the investigation as
                                              to

                                                                     Page 59

<PAGE>
                                                                      Part D
                                                    Miscellaneous Provisions

                                              cause(s) and, as applicable, an
                                              action plan describing (i) what
                                              has and will be done to resolve
                                              the difference, (ii) what
                                              cooperative actions and timelines
                                              on the part of RESELLER are needed
                                              to facilitate or expedite
                                              resolution, and (iii) listing key
                                              milestones for use by the
                                              Parties in tracking progress;

                               (D)6.7.3.3     Offer and meet with designated
                                              RESELLER representatives monthly
                                              to discuss progress on resolving
                                              the difference(s);

                               (D)6.7.3.4     Escalate to vice president
                                              level any significant
                                              difference that has or is not
                                              projected to be resolved within
                                              three months of the difference
                                              first being identified as
                                              significant as defined above,
                                              with commitment at that level
                                              to direct due diligence toward
                                              removing obstacles and
                                              expediting resources where
                                              feasible and necessary to
                                              resolve the difference as soon
                                              as possible.

                   (D)6.7.4       If a statistically and operationally
                                  significant difference has occurred in the
                                  trend results for any particular performance
                                  indicator, the Parties shall allow three (3)
                                  months to correct the difference in the trend
                                  results. If the statistically, and
                                  operationally significant difference in trend
                                  results is corrected within the three (3)
                                  month time, no action, formal or informal,
                                  shall be taken by either Party with respect
                                  to that difference.

                   (D)6.7.5       If the statistically and operationally
                                  significant difference in trend results is not
                                  corrected within the three (3) month
                                  time frame, the Dispute Resolution provision
                                  of this Resale Agreement shall apply.

          (D)6.8 Delaying Events

                   (D)6.8.1       A Party's failure to meet a requirement in
                                  this Section of this Agreement shall not be
                                  included when that failure is a result,
                                  directly or indirectly, of a Delaying Event.

                   (D)6.8.2       A "Delaying Event" means:

                                  (D)6.8.2.1  Failure by either Party to perform
                                              any of its obligations set forth
                                              in this Agreement,

                                  (D)6.8.2.2  Any delay, act or failure to act
                                              by an end user, agent or
                                              subcontractor of the other Party,
                                              or

                                  (D)6.8.2.3  Any Force Majeure Event.

                                                                      Page 60
<PAGE>

                                                                         Part D
                                                       Miscellaneous Provisions

                   (D)6.8.3    If a Delaying Event prevents either Party from
                               performing a measured activity, then such
                               measured activity shall be excluded from the
                               performance indicator(s).

          (D)6.9 Records Retention for Service Performance Indicators

                 USW shall maintain complete and accurate records, for the
                 specified review period of its performance under this
                 Agreement for each measured activity. USW shall provide such
                 records to RESELLER in a self-reporting format. Such records
                 shall be in the format kept in USW's ordinary course of
                 business. The Parties agree that such records shall be
                 deemed "Confidential Information."

(D)6.10 Joint Defense and Advocacy

        The Parties shall jointly and separately advocate and defend the
        sufficiency of this Agreement in addressing the nondiscrimination
        requirements of the Act and wholesale services performance measurements
        reporting rights, remedies and related terms and conditions in any
        forum in which its sufficiency might be challenged.

(D)6.11 Cost Recovery

        Each Party reserves the right to recover the costs associated with
        the creation of the above measures, indicators, and reports through a
        future proceeding before a regulatory body. Such a proceeding may
        address a wide range of implementation costs not otherwise recovered
        through charges established herein.

                                                                        Page 61

<PAGE>

                                                                         Part E
                                                                Minnesota Rates

                            PART E - MINNESOTA RATES
                   LOCAL EXCHANGE SERVICES RESALE OF SERVICES

        The Parties agree the following charges apply to the Resale of Local
Services:
1.      Nonrecurring Charges.

a.      Customer Transfer Charge (CTC): The following nonrecurring charges
        apply when converting a USW account to a RESELLER account or when
        changing an end user from one reseller to another.

<TABLE>
<CAPTION>
           Category of Service                                    Nonrecurring Charge
           -------------------                                    -------------------
           <S>                                                    <C>
           RESIDENCE OR BUSINESS MECHANIZED                              $14.56
                   First Line                                            $ 6.57
                   Each Additional Line
           RESIDENCE OR BUSINESS MANUAL                                  $27.52
                   First Line                                            $ 7.12
                   Each Additional Line
           PRIVATE LINE TRANSPORT                                        $45.08
                   First Circuit                                         $31.19
                   Additional Circuits, Same CSR                         $50.48
           ADVANCED COMMUNICATIONS SERVICES, PER CIRCUIT
</TABLE>

b.      Product Specific Nonrecurring Charge: As set forth in USW tariffs, the
        product specific nonrecurring charges, without discount, will apply
        when additional lines or trunks are added or when the end user adds
        features or services to existing lines or trunks.

2.      Except as qualified below, all USW telecommunications services,
including IntraLATA Toll, shall be available for resale at a 21.5% discount.

     a. The following products and services are not available for resale:
              - Concession Service
              - Customer Premises Equipment (separately or in packages)
                Promotions equal to or less than 90 days
              - USW Calling Cards Enhanced Services (Including Voice Messaging
                 Service)
              - Inside Wire (including installation, sale or maintenance)

     b. The following products and services are available at the 21.5%
     discount only to the same class of customer eligible to purchase that
     service from USW:

<TABLE>
              <S>                             <C>
              - Lifeline/Link-up              - Residential
              - Grandfathered                 - Contract services
              - Special arrangements          - Packaged services
              - Discounted service            - Promotional offerings of more than 90 days
</TABLE>

     c. The following services are available for resale under this Agreement but
     are not included in the wholesale pricing reflected above:
              - Private Line Used For Special Access

3.      Daily Usage Record File: Recurring Charge - $.0011 per record.

                                                                         Page 62

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