Document:

exv10w57

 

Exhibit 10.57

NETWORK INTERCONNECTION AGREEMENT

by and between

Pac-West Telecomm, Inc.

and

Cox California Telcom, LLC

 

 

Cox / Pac-West

CA Network Interconnection Agreement

TABLE OF CONTENTS

	 	 	 	 	 
	1.0 DEFINITIONS
	 	 	5	 
	 
	 	 	 	 
	2.0 INTERPRETATION AND CONSTRUCTION
	 	 	10	 
	 
	 	 	 	 
	3.0 [INTENTIONALLY LEFT BLANK]
	 	 	10	 
	 
	 	 	 	 
	4.0 INTERCONNECTION ARRANGEMENT
	 	 	10	 
	 
	 	 	 	 
	4.1 Scope
	 	 	10	 
	4.2 Physical Architectures
	 	 	11	 
	4.3 Mid-Span Meets
	 	 	12	 
	4.4 Shared Fiber Meet
	 	 	13	 
	4.5 [Intentionally left blank]
	 	 	13	 
	4.6 [Intentionally left blank]
	 	 	13	 
	 
	 	 	 	 
	5.0 TRANSMISSION AND ROUTING OF TELEPHONE EXCHANGE SERVICE TRAFFIC
	 	 	13	 
	 
	 	 	 	 
	5.1 Scope of Traffic
	 	 	13	 
	5.2 Trunk Group Connections and Ordering
	 	 	13	 
	5.3 Additional Switching System Hierarchy and Trunking Requirements
	 	 	13	 
	5.4 Signaling
	 	 	14	 
	5.5 Grades of Service
	 	 	14	 
	5.6 Measurement and Billing
	 	 	14	 
	5.7 Compensation Arrangements
	 	 	15	 
	5.8 Compensation to Third Party Transit Tandem Service Providers
	 	 	16	 
	 
	 	 	 	 
	6.0 800/888 TRAFFIC
	 	 	16	 
	 
	 	 	 	 
	7.0 [INTENTIONALLY LEFT BLANK]
	 	 	16	 
	 
	 	 	 	 
	8.0 [INTENTIONALLY LEFT BLANK]
	 	 	16	 
	 
	 	 	 	 
	9.0 NETWORK MAINTENANCE AND MANAGEMENT; OUTAGES
	 	 	16	 
	 
	 	 	 	 
	9.1 Information Exchange
	 	 	16	 
	9.2 [Intentionally left blank]
	 	 	16	 
	9.3 Repeated or Willful Noncompliance
	 	 	16	 
	9.4 Outage Repair Standard
	 	 	17	 
	9.5 Notice of Changes
	 	 	17	 
	 
	 	 	 	 
	10. JOINT NETWORK IMPLEMENTATION AND GROOMING PROCESS; INSTALLATION, MAINTENANCE,
TESTING AND REPAIR
	 	 	17	 
	 
	 	 	 	 
	10.1 Joint Network Implementation and Grooming Process
	 	 	17	 
	10.2 Installation, Maintenance, Testing and Repair
	 	 	18	 
	10.3 Forecasting Requirements for Trunk Provisioning
	 	 	18	 
	 
	 	 	 	 
	11.0 LOCAL NUMBER PORTABILITY
	 	 	19	 
	 
	 	 	 	 
	11.1 Scope
	 	 	19	 
	11.2 [Intentionally left blank]
	 	 	19	 
	11.3 [Intentionally left blank]
	 	 	19	 
	12.0 [INTENTIONALLY LEFT BLANK]
	 	 	19	 
	 
	 	 	 	 
	13.0 [INTENTIONALLY LEFT BLANK]
	 	 	19	 
	 
	 	 	 	 
	14.0 DATABASES AND SIGNALING
	 	 	19	 
	 
	 	 	 	 
	15.0 [INTENTIONALLY LEFT BLANK]
	 	 	20	 
	 
	 	 	 	 
	16.0 COORDINATION WITH TARIFF TERMS
	 	 	20	 
	 
	 	 	 	 
	17.0 CREDIT AND SECURITY
	 	 	20	 

2

 

Cox / Pac-West

CA Network Interconnection Agreement

	 	 	 	 	 
	18.0 TERM AND TERMINATION
	 	 	20	 
	 
	 	 	 	 
	19.0 DISCLAIMER OF REPRESENTATIONS AND WARRANTIES
	 	 	21	 
	 
	 	 	 	 
	20.0 CANCELLATION CHARGES
	 	 	21	 
	 
	 	 	 	 
	21.0 INDEMNIFICATION
	 	 	21	 
	 
	 	 	 	 
	22.0 LIMITATION OF LIABILITY
	 	 	22	 
	 
	 	 	 	 
	23.0 COMPLIANCE WITH LAWS
	 	 	22	 
	 
	 	 	 	 
	24.0 MISCELLANEOUS
	 	 	23	 
	 
	 	 	 	 
	24.1 Authorization
	 	 	23	 
	24.2 Independent Contractor
	 	 	23	 
	24.3 Force Majeure
	 	 	23	 
	24.4 Confidentiality
	 	 	24	 
	24.5 Choice of Law
	 	 	25	 
	24.6 Taxes
	 	 	25	 
	24.7 Assignment
	 	 	27	 
	24.8 Billing and Payment; Disputed Amounts
	 	 	27	 
	24.9 Dispute Resolution
	 	 	29	 
	24.10 Notices
	 	 	29	 
	24.11 Joint Work Product
	 	 	30	 
	24.12 No Third Party Beneficiaries; Disclaimer of Agency
	 	 	30	 
	24.13 No License
	 	 	30	 
	24.14 Technology Upgrades
	 	 	31	 
	24.15 Survival
	 	 	31	 
	24.16 Entire Agreement
	 	 	31	 
	24.17 Counterparts
	 	 	31	 
	24.18 Modification, Amendment, Supplement, or Waiver
	 	 	31	 
	24.19 Successors and Assigns
	 	 	32	 
	24.20 Publicity
	 	 	32	 
	24.21 Amendment
	 	 	32	 
	24.22 Changes in Law
	 	 	32	 
	APPENDIX 1
	 	 	34	 
	 
	 	 	 	 
	APPENDIX 2
	 	 	36	 

3

 

Cox / Pac-West

CA Network Interconnection Agreement

NETWORK INTERCONNECTION AGREEMENT

November 17, 2003

     Pursuant to this Network Interconnection Agreement (“Agreement”), Cox California Telcom, LLC
(“Cox”) and, Pac-West Telecomm, Inc. (“Pac-West”) (collectively the “Parties”) agree to
interconnect with each other within each LATA in which they both operate as competitive local
exchange carriers within the state of California, as described and according to the terms,
conditions and pricing specified hereunder.

     WHEREAS, the Parties, want to interconnect their networks directly via technically feasible
points of interconnection between their networks, or indirectly via third party providers, to
provide Telecommunications Services to their respective Customers;

     WHEREAS, the Parties are entering into this Agreement to set forth the respective obligations
of the Parties and the terms and conditions under which the Parties will interconnect their
networks as set forth herein; and

     WHEREAS, the Telecommunications Act of 1996 has specific requirements for Interconnection, and
the Parties intend that this Agreement meet those requirements.

     NOW, THEREFORE, in consideration of the mutual provisions contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Cox and
Pac-West hereby agree as follows:

     This Agreement sets forth the terms, conditions and pricing under which Pac-West and Cox
(individually, a “Party” and collectively, the “Parties”), both operating as competitive local
exchange carriers, will offer and provide to each other Interconnection within the state of
California. Notwithstanding this mutual commitment, except as noted below, 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, including proceedings which may
affect the terms of this Agreement under the terms of Section 23 hereof. Moreover, neither Party
shall in any public or private forum, except as noted below, represent that the other Party’s
acceptance of any particular term hereof relates in any way to the proper outcome of any rulemaking
proceedings under the Act now underway or hereafter to be conducted by the Federal Communications
Commission or the California Public Utilities Commission.

4

 

Cox / Pac-West

CA Network Interconnection Agreement

1.0 DEFINITIONS

     As used in this Agreement, the following terms shall have the meanings specified below in this
Section 1.

     1.1 “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, regulations and orders of the FCC or the Commission.

     1.2 “Agreement” means this Network Interconnection Agreement and all Appendices appended
hereto.

     1.3 “Applicable Laws” means all laws, regulations, and orders applicable to each Party’s
performance of its obligations hereunder.

1.4 [Intentionally left blank]

     1.5 “Calling Party Number” or “CPN” is a Common Channel Signaling (“CCS”) parameter which
refers to the number transmitted through a network identifying the calling party.

     1.6 “Central Office Switch” means a switch used to provide Telecommunications Services,
including, but not limited to:

          (a) “End Office Switch” or “End Office” is a switching entity that is used to terminate
Customer station lines for the purpose of interconnection to each other and to trunks; and,

          (b) “Tandem Switch” or “Tandem Office” or “Tandem” is a switching entity that has billing and
recording capabilities and is used to aggregate traffic and deliver traffic to carriers’
aggregation points, points of termination, or points of presence, and to provide Switched Exchange
Access Services.

     A Central Office Switch may also be employed as a combination End Office/Tandem Office Switch.

     1.7 “CLASS Features” means certain CCS-based features available to Customers including, but
not limited to: Automatic Call Back; Call Trace; Caller Identification, and future offerings.

     1.8 “Collocation” means an arrangement in which the equipment of a CLEC (the “Collocating
Party”) is installed and maintained at the premises of a LEC other than one of the Parties (the
“Housing Party”). If either Party wishes to establish a collocation arrangement within the other
Party’s premises, then the prices, terms and conditions of such collocation arrangement will be
addressed in a separate agreement. In a “Physical Collocation” arrangement, the Collocating Party
installs and maintains its own equipment in the Housing Party’s premises.

5

 

Cox / Pac-West

CA Network Interconnection Agreement

     1.9 “Commission” means the California Public Utilities Commission.

     1.10 “Internet Traffic” means Internet Traffic that is originated by an end user subscriber
served on the network of one Party, is transmitted to the network of the other Party, and then is
handed off by that Party to an Internet Service Provider served by that Party which has been
assigned a telephone number or telephone numbers within an NXX or NXXs which are local to the
originating end user subscriber.

     1.11 “Common Channel Signaling” or “CCS” means a method of transmitting call set-up and
network control data over a digital signaling network separate from the public switched telephone
network facilities that carry the actual voice or data traffic of the call. “SS7” means the common
channel out of band signaling protocol developed by the Consultative Committee for International
Telephone and Telegraph (“CCITT”) and the American National Standards Institute (“ANSI”). Pac-West
and Cox currently utilize this out-of-band signaling protocol. “CCSAC” or “CCSAS” means the common
channel signaling access connection or service, respectively, which connects one Party’s signaling
point of interconnection (“SPOI”) to the other Party’s STP for the exchange of SS7 messages.

     1.12 “Competitive Local Exchange Carrier” or “CLEC” means any Local Exchange Carrier other
than Pac-West and Cox, operating as such.

     1.13 “Customer” means a third-party residence or business end-user subscriber to
Telecommunications Services provided by either of the Parties.

     1.14 [Intentionally left blank]

     1.15 “Digital Signal Level 0” or “DS-0” means the 64 Kbps zero-level signal in the
time-division multiplex hierarchy.

     1.16 “Digital Signal Level 1” or “DS-1” means the 1.544 Mbps first-level signal in the
time-division multiplex hierarchy. In the time-division multiplexing hierarchy of the telephone
network, DS1 is the initial level of multiplexing.

     1.17 “Digital Signal Pac-West” or “DS-3” means the 44.736 Mbps third-level in the
time-division multiplex hierarchy. In the time-division multiplexing hierarchy of the telephone
network, DS3 is defined as the third level of multiplexing.

     1.18 “Exchange Access” is defined in the Act and FCC regulations and means the offering of
access to Telephone Exchange Services or facilities for the purpose of the origination or
termination of Telephone Toll Services.

     1.19 “FCC” means the Federal Communications Commission.

     1.20 “Interconnection” means the connection of separate pieces of equipment, transmission
facilities, etc. within, between or among networks for the transmission and routing

6

 

Cox / Pac-West

CA Network Interconnection Agreement

of Telephone Exchange Service. The architecture of Interconnection may include collocation and/or
mid-span meet arrangements.

     1.21 “IntraLATA Toll Traffic” means those intraLATA calls that are not defined as Local
Traffic in this Agreement.

     1.22 “Local Access and Transport Area” or “LATA” is defined in the Act and means a contiguous
geographic area: (a) established before the date of enactment of the Act by a Bell operating
company such that no Exchange Area includes points within more than one (1) metropolitan
statistical area, consolidated metropolitan statistical area, or State, except as expressly
permitted under the AT&T Consent Decree; or (b) established or modified by a Bell operating company
after such date of enactment and approved by the FCC.

     1.23 “Local Exchange Carrier” or “LEC” is defined in the Act and 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. The Parties to this Agreement are Local Exchange
Carriers.

1.24 [Intentionally left blank]

     1.25 “Local Calls” are as defined by the Commission. Local Calls currently include all 0-12
miles calls based on the rate centers of the originating and terminating NPA-NXXs of the callers,
irrespective of whether the routing point of an NPA-NXX is different than the rate center of that
NPA-NXX (these include, but are not limited to, ZUM Zone 1 and ZUM Zone 2 calls) and, where
established in LEC tariffs, ZUM Zone 3 and Extended Area Service (EAS) calls. Local Calls are also
referred to as “Local Traffic.”

     1.26 “Mid-Span Meet” means a direct Interconnection architecture whereby two carriers’
transmission facilities meet at a mutually agreed-upon Interconnection point utilizing a fiber or
electrical hand-off.

     1.27 “North American Numbering Plan” or “NANP” means the numbering plan used in the United
States that also serves Canada, Bermuda, Puerto Rico and certain Caribbean Islands. The NANP
format is a 10-digit number that consists of a 3-digit NPA code (commonly referred to as the area
code), followed by a 3-digit NXX code and 4-digit line number.

     1.28 “Numbering Plan Area” or “NPA” is also sometimes referred to as an area code. There are
two general categories of NPAs, “Geographic NPAs” and “Non-Geographic NPAs.” A Geographic NPA is
associated with a defined geographic area, and all telephone numbers bearing such NPA are
associated with services provided within that geographic area. A Non-Geographic NPA, also known as
a “Service Access Code” or “SAC Code,” is typically associated with a specialized
Telecommunications Service which may be provided across multiple geographic NPA areas; 800, 888,
900, 700 and 500 are examples of Non-Geographic NPAs.

7

 

Cox / Pac-West

CA Network Interconnection Agreement

     1.29 “NXX,” “NXX Code,” or “End Office Code” means the three digit switch entity indicator
(i.e. the first three digits of a seven digit telephone number).

     1.30 “Percent Local Usage” or “PLU” is a calculation which represents the ratio of the local
minutes to the sum of local and intraLATA toll minutes exchanged between the Parties.

     1.31 “Point of Interconnection” or “POI” means a physical location at which the Parties’
networks meet for the purpose of establishing interconnection. POIs include a number of different
technologies and technical interfaces based on the Parties’ mutual agreement.

     1.32 “Rate Center Area” or “Exchange Area” means the specific geographic point and
corresponding geographic area which has been identified by a given LEC as being associated with a
particular NPA-NXX code assigned to the LEC for its provision of Telephone Exchange Services. The
Rate Center Area is the exclusive geographic area which the LEC has identified as the area within
which it will provide Telephone Exchange Services bearing the particular NPA-NXX designation
associated with the specific Rate Center Area. A “Rate Center Point” is a specific geographic
point, defined by a V&H coordinate, located within the Rate Center Area and used to measure
distance for the purpose of billing Customers for distance-sensitive Telephone Exchange Services
and Toll Traffic.

     1.33 “Rating Point” or “Routing Point” means a specific geographic point identified by a
specific V&H coordinate. The Rating Point is used to route inbound traffic to specified NPA-NXXs
and to calculate mileage measurements for distance-sensitive transport charges of switched access
services. Pursuant to Telcordia (formerly “Bellcore”) Practice BR-795-100-100, the Rating Point
may be an End Office location, or a “LEC Consortium Point of Interconnection.” Pursuant to that
same Telcordia (formerly “Bellcore”) Practice, examples of the latter shall be designated by a
common language location identifier (CLLI) code with (x)KD in positions 9, 10, 11, where (x) may be
any alphanumeric A-Z or 0-9. The Rating Point/Routing Point must be located within the LATA in
which the corresponding NPA-NXX is located. However, the Rating Point/Routing Point associated
with each NPA-NXX need not be the same as the corresponding Rate Center Point, nor must it be
located within the corresponding Rate Center Area, nor must there be a unique and separate Rating
Point corresponding to each unique and separate Rate Center.

     1.34 “Reciprocal Compensation” refers to remuneration received by one Party (the “Receiving
Party”) to recover its costs for receiving and terminating Local Traffic or receiving and handing
off Internet Traffic that originates on the network of the other Party (the “Originating Party”).

     1.35 “Shared Fiber Meet” means an interconnection architecture whereby the Parties or their
agents, each on one side of a demarcation point, provide and install half of the transmission fiber
and equipment required to construct a contiguous fiber ring between them.

     1.36 “Signaling Transfer Point” or “STP” means a specialized switch that provides SS7 network
access and performs SS7 message routing and screening.

8

 

Cox / Pac-West

CA Network Interconnection Agreement

     1.37 “Synchronous Optical Network” or “SONET” is an optical interface standard that allows
interworking of transmission products from multiple venders (i.e., mid-span meets). The base rate
is 51.84 Mbps (OC-1/STS-1) and higher rates are multiples of the base rate, up to 13.22 Gbps.

     1.38 “Tandem Transit” or “third party Tandem Transit” is, for the purposes of this Agreement,
an arrangement that provides indirect Interconnection, via a third party’s Tandem, that is used by
the Parties for the reciprocal exchange of Local and IntraLATA Toll Traffic between their
respective Customers.

     1.39 “Tariff” means any applicable federal or state Tariff of a Party, or standard agreement
or other document that sets forth the generally available terms and conditions under which a Party
offers a particular service, facility, or arrangement.

     1.40 “Telecommunications” is defined in the Act and means the transmission, between or among
points specified by the user, of information of the user’s choosing, without change in the form or
content of the information as sent and received.

     1.41 “Telecommunications Act” means the Telecommunications Act of 1996 and any rules and
regulations promulgated thereunder.

     1.42 “Telecommunications Carrier” is defined in the Act and 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).

     1.43 “Telecommunications Service” is defined in the Act and 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.

     1.44 “Telephone Exchange Service,” sometimes also referred to as “Exchange Service,” is
defined in the Act and FCC regulations and means (i) service within a telephone exchange or within
a connected system of telephone exchanges within the same exchange area operated to furnish
subscribers intercommunicating service of the character ordinarily furnished by a single exchange,
and which is covered by the exchange service charge, or (ii) comparable service provided through a
system of switches, transmission equipment, or other facilities (or combination thereof) by which a
subscriber can originate and terminate a Telecommunications Service. Telephone Exchange Service
generally provides the Customer with a telephonic connection to, and a unique telephone number
address on, the public switched telecommunications network, and enables such Customer to place or
receive calls to all other stations served by the public switched telecommunications network.

     1.45 “Telephone Toll Service” is defined in the Act and FCC regulations and means telephone
service between stations in different exchange areas for which there is made a separate charge not
included in contracts with subscribers for exchange service.

9

 

Cox / Pac-West

CA Network Interconnection Agreement

     1.46 “Wire Center” means a building or portion thereof in which a Party has the exclusive
right of occupancy and which is a location wherein trunks and exchange circuits which serve a
defined geographic area converge. A Wire Center may consist of one or more switching offices.

2.0 INTERPRETATION AND CONSTRUCTION

     2.1 All references to Sections, Exhibits and Schedules shall be deemed to be references to
Sections of, and Appendices to, this Agreement unless the context shall otherwise require. The
headings used in this Agreement are inserted for convenience of reference only and are not intended
to be a part of or to affect the meaning of this Agreement. Unless the context shall otherwise
require, any reference to any agreement, other instrument (including Pac-West, Cox, or other third
party offerings, guides or practices), statute, regulation, rule or Tariff is to such agreement,
instrument, statute, regulation, or rule or Tariff as amended and supplemented from time to time
(and, in the case of a statute, regulation, rule or Tariff, to any successor provision).

     2.2 Subject to the terms set forth in Section 16 regarding rates and charges, each Party
hereby incorporates by reference those provisions of its Tariffs that govern the provision of any
of the services or facilities provided hereunder. If any provision of this Agreement and an
applicable Tariff cannot be reasonably construed or interpreted to avoid conflict, the provision
contained in this Agreement shall prevail. If any provision contained in this main body of the
Agreement and any Appendix hereto cannot be reasonably construed or interpreted to avoid conflict,
the provision contained in this main body of the Agreement shall prevail. The fact that a
condition, right, obligation, or other term appears in this Agreement but not in any such Tariff
shall not be interpreted as, or be deemed grounds for finding, a conflict for purposes of this
Section 2. The Parties agree to give notice of all proposed Tariff changes pursuant to Commission
rules and orders.

3.0 [Intentionally left blank]

4.0 INTERCONNECTION ARRANGEMENT

     The types of traffic to be exchanged under this Agreement shall be Local Traffic and IntraLATA
Toll Traffic.

4.1 Scope

          4.1.1 Section 4 describes the architecture for direct Interconnection of the Parties’
facilities and equipment over which the Parties shall configure the following trunk groups:

               4.1.1.1 Interconnection trunks (“Interconnection Trunks” or “Interconnection Trunk
Group[s]”)for the transmission and routing of Local Traffic, IntraLATA

10

 

Cox / Pac-West

CA Network Interconnection Agreement

Toll Traffic and translated (post-query) intraLATA 800/888 traffic between their respective
Telephone Exchange Service Customers in accordance with Section 5 below. Interconnection Trunks
shall be designed and configured for two-way operation.

          4.1.2 For the purposes of this Agreement, the Parties agree that Interconnection for the
transport and termination of traffic may take place indirectly via a third party’s Tandem Transit
arrangement or directly at a terminating End Office, a Tandem, a Wire Center, any mutually
agreed-upon Mid-Span Meet or Shared Fiber Meet arrangement as provided in Sections 4.2 to 4.4
below, and/or other points as specified herein. Notwithstanding the foregoing, sentence, the
Parties shall consider and discuss the establishment of two-way direct End Office trunk groups when
the volume of transit traffic originating from one Party and passing through the appropriate ILEC
Tandem switch to which both Parties are directly connected, and terminating at the other Party,
exceeds the CCS busy hour equivalent of one (1) DS-1 equivalent trunks, on a monthly average basis,
for each month of any three (3) consecutive months.

          4.1.3 Where direct Interconnection is used, the Parties shall establish mutually agreed-upon
interconnection points (collectively, the “Points of Interconnection” or “POIs”).

          4.1.4 Where direct Interconnection is used, the Parties shall configure separate trunk groups
(as described in subsection 4.1.1 and 4.1.2 above) for traffic between Cox and Pac-West. Where
indirect Interconnection is used, each Party shall be responsible for ensuring that it has
sufficient facilities in place to each third party Tandem Transit arrangement used to exchange
traffic between the Parties’ networks.

4.2 Physical Architectures

          4.2.1 In each LATA where direct Interconnection is used, the Parties shall utilize the POI(s)
designated as the points from which the Parties will provide the transport and termination of
traffic. Each Party is operationally and financially responsible for bringing its facilities (and
the originating traffic over those facilities) to the POI(s).

          4.2.2 The Parties may mutually agree to any of the following methods for direct
Interconnection:

          (a) a Physical Collocation facility established separately by a Party or by a third
party with whom Cox or Pac-West has contracted for such purposes;

          (b) an entrance facility and transport (and any necessary multiplexing) provided by
or leased from a Party or a third party, pursuant to its effective Tariff;

          (c) a Mid-Span Meet, pursuant to Section 4.3;

          (e) any other mutually-agreed to arrangement, as negotiated by the Parties.

11

 

Cox / Pac-West

CA Network Interconnection Agreement

          4.2.3 Each Party shall provide its own facilities or purchase necessary transport for the
delivery of traffic to any agreed-to POI; where facilities are shared, each Party shall pay its
proportionate share of the cost of the jointly-used facilities.

          4.2.4 The Parties may order any of the Interconnection methods specified above in accordance
with the order intervals and other terms and conditions, including, without limitation, rates and
charges, set forth in this Agreement, in any applicable Tariff(s) or as may be subsequently agreed
to between the Parties.

4.3 Mid-Span Meets

          4.3.1 The Parties may agree to establish (i) a Mid-Span Meet arrangement in accordance with
the terms of this subsection 4.3 that utilizes wireline transmission facilities. In a Mid-Span
Meet, each Party extends its facilities to meet the other Party. The point where the facilities
meet is the Mid-Span point. Each Party bears its own costs to establish and maintain a Mid-Span
Meet arrangement, and/or shares any common costs associated with the arrangement. However, the
Parties also agree that a technical arrangement for a Mid-Span Meet may involve one Party placing
and extending its own (or leased) fiber facilities to the Wire Center of the other Party, with
sufficient additional length on the fiber to permit the receiving Party to terminate the fiber
without requiring splicing of the fiber facilities prior to the terminal equipment in the receiving
Party’s Wire Center. In this situation, the Parties will negotiate reasonable compensation to be
paid to the Party extending the facilities for the associated labor, materials, and conduit space
used in extending its facilities beyond a negotiated Mid Span point.

          4.3.2 The establishment of any Mid-Span Meet arrangement is expressly conditioned upon the
Parties’ reaching prior agreement on appropriate sizing and forecasting, equipment, ordering,
provisioning, maintenance, repair, testing, augment, and compensation procedures and arrangements,
reasonable distance limitations, and on any other arrangements necessary to implement the Mid-Span
Meet arrangement. Any Mid-Span Meet arrangement requested at a third-party premises is expressly
conditioned on the Parties’ having sufficient capacity at the requested location to meet such
request, on unrestricted 24-hour access for both Parties to the requested location, on other
appropriate protections as deemed necessary by either Party, and on an appropriate commitment that
such access and other arrangements may not be restricted for a reasonable period.

          4.3.3 Mid-Span Meet arrangements shall be used only for the termination of Local Traffic and
IntraLATA Toll Traffic, unless and until such time as the Parties have agreed to appropriate
compensation arrangements relating to the exchange of other types of traffic over such Mid-Span
Meet, and only where facilities are available.

          4.3.4 A Mid-Span Meet arrangement may be implemented by establishing direct End Office
interconnection using an electrical or optical cross-connect between the Parties’ respective
collocation arrangements at the appropriate third-party LEC Central Office. Each Party will pay
50% of the non-recurring and recurring costs of the cross-connects provisioned by the third-party
LEC. Except for the splitting of cross-connect costs, each Party shall be

12

 

Cox / Pac-West

CA Network Interconnection Agreement

operationally and financially responsible for its own facilities on its side of the
Interconnection Point.

          4.3.5 The Parties’ agree to initially establish direct End Office Trunking arrangements in
accordance with Appendix 2 to this Agreement. Appendix 2 of the Agreement may be revised from time
to time upon the mutual agreement of the Parties to reflect additional or changed interconnection
arrangements in California utilizing the Mid-Span Meet arrangement discussed in Section 4.3.4 above
or any other method available under Section 4.

     4.4 [Intentionally left blank]

     4.5 [Intentionally left blank]

     4.6 [Intentionally left blank]

5.0 TRANSMISSION AND ROUTING OF TELEPHONE EXCHANGE SERVICE
TRAFFIC

     5.1 Scope of Traffic

     Section 5 prescribes parameters for trunk groups to be effected over the Interconnections
specified in Section 4 for the transmission and routing of Local Traffic, translated (post-query)
LEC IntraLATA 800/888 traffic, and IntraLATA Toll Traffic between the Parties’ respective
Customers.

     5.2 Trunk Group Connections and Ordering

          5.2.1 Where direct Interconnection is used, trunk group connections will be made at a DS-1
level, DS-3 level, OC-3 level or higher. Higher speed connections shall be made, when and where
available, in accordance with the Joint Implementation and Grooming Process prescribed in Section
10.

          5.2.2 Where direct Interconnection is used, each Party shall provide trunk groups, where
available and upon reasonable request, that are configured utilizing the B8ZS ESF protocol for 64
kbps clear channel transmission between the Parties’ respective networks.

          5.2.3 Each Party will identify its Carrier Identification Code, a three or four digit numeric
obtained from Telcordia (formerly “Bellcore”), to the other Party when ordering a trunk group.

     5.3 Additional Switching System Hierarchy and Trunking Requirements

13

 

Cox / Pac-West

CA Network Interconnection Agreement

          For purposes of routing Cox traffic to Pac-West, the subtending arrangements between Pac-West
Tandem Switches (or functional equivalent) and Pac-West End Office Switches (or functional
equivalent) shall be the same as the Tandem/End Office subtending arrangements Pac-West maintains
for the routing of its own or other carriers’ traffic. For purposes of routing Pac-West traffic to
Cox, the subtending arrangements between Cox Tandem Switches (or functional equivalent) and Cox End
Office Switches (or functional equivalent) shall be the same as the Tandem/End Office subtending
arrangements (or functional equivalent) which Cox maintains for the routing of its own or other
carriers’ traffic.

     5.4 Signaling

     Each Party will provide the other Party with direct or indirect access to its databases and
associated signaling necessary for the routing and completion of the other Party’s traffic in
accordance with the provisions contained in Section 14 below. In addition, where direct trunk
Interconnection is used, the Parties will use SS7 signaling; where indirect trunk Interconnection
is used, the Parties will ensure that SS7 signaling is used end-to-end.

     5.5 Grades of Service

     Where direct Interconnection is used, the Parties shall initially engineer and shall jointly
engineer and maintain all trunk groups consistent with the Joint Implementation and Grooming
Process as set forth in Section 10.

     5.6 Measurement and Billing

          5.6.1 The terminating Party shall be responsible for creating or obtaining any billing records
needed in order to bill the originating Party terminating access minutes of use. Measurement of
minutes of use shall be in actual conversation seconds. The total conversation seconds over each
Interconnection trunk group will be totaled for the entire monthly billing cycle and then rounded
to the next whole minute.

          5.6.2 For billing and/or self-auditing purposes, whether direct or indirect Interconnection is
used, each Party shall pass Calling Party Number (“CPN”) information on at least ninety percent
(90%) of calls carried over the Interconnection Trunks. If the originating Party passes CPN on
less than ninety percent (90%) of its calls, the terminating Party shall bill its intrastate
Switched Access Service rates for all traffic passed without CPN unless the Parties agree that such
other rates should apply to such traffic.

          5.6.3 The Parties agree to provide a single statewide percent local usage (“PLU”) factor for
all traffic exchanged between the Parties directly and indirectly via a Tandem Transit provider.
Each Party shall provide the initial PLU to the other within 30 days of execution of the Agreement.
Adjustments to the applicable PLU, if any, may be made on a calendar-year quarterly basis, within
15 calendar days after the end of each quarter. When billing the other Party, a Party may classify
traffic as either Local Traffic or IntraLATA Toll Traffic by using CPN information or such PLU
factor.

14

 

Cox / Pac-West

CA Network Interconnection Agreement

     5.7 Compensation Arrangements

     Compensation arrangements address the transport and termination of Local Traffic and IntraLATA
Toll Traffic between the Parties. Compensation for the transport and termination of traffic not
specifically addressed in this subsection 5.7 shall be as provided elsewhere in this Agreement, or
if not so provided, as required by the Tariffs of the Party transporting and/or terminating the
traffic.

          5.7.1 Nothing in this Agreement shall be construed to limit either Party’s ability to
designate the areas within which that Party’s Customers may make calls which that Party rates as
“local” in its Customer Tariffs.

          5.7.2 For all Local Traffic, the Parties compensate each other for the transport and
termination of all Local Traffic (including Internet Traffic) at the rates provided in the Detailed
Schedule of Itemized Charges (Appendix 1 hereto).

          5.7.3 No additional charges, including port or transport charges, shall apply for receiving
and terminating Local Traffic or receiving and handing off Internet Traffic delivered to the
Cox-POI or the Pac-West-POI, except as set forth in the Price Schedule.

          5.7.4 The Parties agree to abide by all applicable orders and rules of the FCC and Commission
with respect to Reciprocal Compensation for Local Traffic exchanged between the Parties, to the
extent such orders and rules do not conflict with the Act.

          5.7.5 The Parties shall compensate each other for the transport and termination of all
IntraLATA Toll Traffic at the rates provided in the Detailed Schedule of Itemized Charges (Appendix
1 hereto).

          5.7.6 The designation of traffic as Local or IntraLATA Toll for purposes of compensation shall
be based on the horizontal and vertical coordinates associated with the originating and terminating
NPA-NXXs of the call, regardless of the carrier(s) involved in carrying any segment of the call.

          5.7.7 In accordance with subsection 14.2, Pac-West and Cox agree that all networks involved in
exchanging Pac-West and Cox traffic via Tandem Transit arrangement will use CCS/SS7 protocol,
including Calling Party Number (“CPN”) and appropriate TCAP messages, to facilitate full
interoperability and billing and/or self-audit functions.

          5.7.8 Each Party reserves the right to measure and audit all traffic, up to a maximum of one
audit per 12-month period, to ensure that proper rates are being applied appropriately, provided,
however, that either Party shall have the right to conduct additional audit(s) if the preceding
audit disclosed material errors or discrepancies. Each Party agrees to provide the necessary
traffic data or permit the other Party’s recording equipment to be installed for sampling purposes
in conjunction with any such audit.

15

 

Cox / Pac-West

CA Network Interconnection Agreement

     5.8 Compensation to Third Party Transit Tandem Service Providers

     5.8.1 Where Traffic is exchanged via a third party’s Tandem Transit arrangement, the
originating Party shall be responsible for payment of any transit charges assessed by the third
party Tandem Transit provider for the use of its tandem. Further, it is the originating Party’s
responsibility to ensure that any agreement it may have in place with such third party Tandem
Transit provider allows the originating Party’s traffic to be transited to the terminating Party.

     5.8.2 To the extent required to prevent double payment or double recovery by either Party, if
either Party bills the Tandem Transit provider for terminating the other Party’s traffic, or if
either Party pays the Tandem Transit provider to terminate that Party’s traffic (in addition to
paying the Tandem Transit provider’s ‘transit’ charges), the Parties agree that no additional
compensation for such traffic shall be billed or owed between the Parties.

6.0 800/888 TRAFFIC

     For IntraLATA Toll Free Service calls provided by one of the Parties, the compensation set
forth in the Detailed Schedule of Itemized Charges (Appendix 1 hereto) for IntraLATA Toll Traffic,
shall be paid by the Party terminating the call to the Party originating the call. If needed, the
Parties will develop a mutually agreed-to method for exchanging billing data for this purpose.

7.0 [Intentionally left blank]

8.0 [Intentionally left blank]

9.0 NETWORK MAINTENANCE AND MANAGEMENT; OUTAGES

     9.1 Information Exchange

     The Parties will work cooperatively to install and maintain a reliable network. Cox and
Pac-West will exchange appropriate information (e.g., maintenance contact numbers,
escalation procedures, network information, information required to comply with law enforcement and
other security agencies of the Government) to achieve this desired reliability. In addition, the
Parties will work cooperatively to apply sound network management principles to alleviate or to
prevent congestion.

     9.2 [Intentionally left blank]

     9.3 Repeated or Willful Noncompliance

16

 

Cox / Pac-West

CA Network Interconnection Agreement

     The Interconnection provided hereunder may be discontinued (e.g., trunks made busy and/or
disconnected) by either Party upon thirty (30) days’ written notice to the other for repeated or
willful violation of and/or a refusal to comply with this Agreement in any material respect.
Interconnection shall not be discontinued if the other Party cures or disputes the alleged
violation within the thirty (30) day time frame of receipt of the written notice. The Party
discontinuing will notify the appropriate federal and/or state regulatory bodies concurrently with
the notice to the other Party of the prospective discontinuance.

     9.4 Outage Repair Standard

     In the event of an outage or trouble in any arrangement, facility, or service being provided
by a Party hereunder (the “Providing Party”), the Providing Party will follow procedures for
isolating and clearing the outage or trouble that are no less favorable than those that apply to
comparable arrangements, facilities, or services being provided by the Providing Party to any other
carrier whose network is connected to that of the Providing Party. Cox and Pac-West may agree to
modify those procedures from time to time based on their experience with comparable Interconnection
arrangements with other carriers.

     9.5 Notice of Changes

     If a Party makes a change in the information necessary for the transmission and routing of
services using that Party’s network, or any other change in its network which it believes will
materially affect the interoperability of its network with the other Party’s network, the Party
making the change shall provide at least ninety (90) days’ advance written notice of such change to
the other Party, and shall use all reasonable efforts to provide at least one hundred eighty (180)
days’ notice where practicable; provided, however, that if a longer period of notice is required by
the FCC’s or Commission’s rules.

10. JOINT NETWORK IMPLEMENTATION AND GROOMING PROCESS; INSTALLATION, MAINTENANCE, TESTING AND
REPAIR

10.1 Joint Network Implementation and Grooming Process

     Cox and Pac-West shall jointly develop an implementation and grooming process (the “Joint
Process”) which shall define and detail, inter alia,

(a) where direct Interconnection is used, standards to ensure that Interconnection
trunk groups experience a grade of service, availability and quality which is
comparable to that achieved on interoffice trunks within one another’s network and
in accord with all appropriate relevant industry-accepted quality, reliability and
availability standards. “Final” trunk groups, if used, will be engineered using a
design blocking objective of B.01;

(b) where direct Interconnection is used, the respective duties and responsibilities
of the Parties with respect to the administration and maintenance

17

 

Cox / Pac-West

CA Network Interconnection Agreement

of the trunk groups, including, but not limited to, standards and procedures for
notification and discoveries of trunk disconnects;

(c) disaster recovery provision;

(d) information related to traffic between exchanges that may be required for
forecasting each Party’s network requirements; and

(e) such other matters as the Parties may agree, including, e.g.,
where direct Interconnection is used, implementation of End Office-to-End Office
high usage trunks, as sound engineering practices may dictate.

     10.2 Installation, Maintenance, Testing and Repair

     Unless otherwise agreed to by the Parties, direct Interconnection shall be equal in quality to
that provided by each of the Parties to any subsidiary, affiliate, or third party. For purposes of
this Agreement, “equal in quality” means the same or equivalent interface specifications,
provisioning, installation, maintenance, testing and repair intervals for the same or equivalent
services under like circumstances. If either Party is unable to fulfill its obligations under this
subsection 10.2, it shall notify the other Party of its inability to do so and will negotiate
alternative intervals in good faith. The Parties agree that the standards to be used by each Party
for isolating and clearing any disconnections and/or other direct or indirect Interconnection
outages or troubles shall be no less favorable than those applicable to comparable arrangements,
facilities, or services being provided by such Party to any other carrier whose network is
connected to that of the Providing Party.

     10.3 Forecasting Requirements for Trunk Provisioning

          10.3.1 Where direct Interconnection is used, within ninety (90) days of executing this
Agreement, the Parties shall provide one another yearly traffic forecasts. This initial forecast
will provide the amount of traffic to be delivered by each Party over each of the Interconnection
Trunk groups. The forecast shall be updated and provided to one another twice a year. All
forecasts shall include Access Carrier Terminal Location, traffic type (local/toll, IP, etc.), code
(identifies trunk group), A location/Z location (CLLI codes), interface type (e.g., DS1), and
cumulative trunks in service each year for current, as well as current plus-1 and plus-2 years.

          10.3.2 Where direct Interconnection is used the Parties will, for ninety (90) days, monitor
traffic on each trunk group that it establishes. At the end of such ninety (90) day period, either
Party may request to disconnect trunks that, based on reasonable engineering criteria and capacity
constraints, are not warranted by the actual traffic volume experienced.

18

 

Cox / Pac-West

CA Network Interconnection Agreement

11.0 LOCAL NUMBER PORTABILITY

     11.1 Scope

          The Parties shall provide Local Number Portability (LNP) in accordance with the Act and the
rules and regulations as from time to time prescribed by the FCC. Location Routing Number (LRN) is
currently being used by the telecommunications industry to provide LNP, and will be used by the
Parties to implement LNP between their networks to the extent required under the Act and the FCC’s
regulations.

     11.2 [Intentionally left blank]

     11.3
[Intentionally left blank]

12.0 [Intentionally left blank]

13.0 [Intentionally left blank]

14.0 DATABASES AND SIGNALING

     14.1 Each Party shall provide the other Party with access to databases and associated
signaling necessary for call routing and completion, including but not limited to calling name
information as required, by providing SS7 Common Channel Signaling (CCS) Interconnection in
accordance with existing Tariffs, and Interconnection and access to 800/888 databases, LIDB, and
any other necessary databases in accordance with existing Tariffs and/or agreements with other
unaffiliated carriers, with compensation terms in accordance with Section 14.3 below.
Alternatively, either Party may secure CCS Interconnection from a commercial SS7 hub provider, and
in that case the other Party will permit the purchasing Party to access the same databases as would
have been accessible if the purchasing party had connected directly to the other Party’s CCS
network.

     14.2 The Parties will provide CCS Signaling to one another in all direct or indirect
Interconnection trunking arrangements. The Parties will cooperate on the exchange of TCAP messages
to facilitate interoperability of all CCS-based features and services, including but not limited to
CLASS and Calling Name Delivery, to the extent each Party offers such features and functions to its
Customers. All CCS Signaling parameters will be provided upon request (where such parameters are
available and support signaling features and functions deployed within both Parties’ networks),
including called party number, Calling Party Number, calling party category, and charge number.
All privacy indicators will be honored.

     14.3 The Parties agree that their respective CCS signaling costs shall offset each other, and
no explicit compensation between the Parties shall apply.

19

 

Cox / Pac-West

CA Network Interconnection Agreement

15.0 [Intentionally left blank]

16.0 COORDINATION WITH TARIFF TERMS

     16.1 Where explicitly noted in this Agreement, the Parties acknowledge that some of the
services, facilities, and arrangements described herein are or will be available under and subject
to the terms of the federal or state Tariffs of the other Party applicable to such services,
facilities, and arrangements. To the extent a Tariff of the Providing Party applies to any
service, facility, and arrangement described herein, the Parties agree as follows:

          16.1.1 Those rates and charges for services, facilities, and arrangements that reference a
rate contained in an existing Tariff of the Providing Party, shall conform with those contained in
the then-prevailing Tariff and vary in accordance with any changes that may be made to the Tariff
rates and charges subsequent to the Effective Date.

17.0 [Intentionally left blank]

18.0 TERM AND TERMINATION.

     18.1 This Agreement shall be effective as of the execution date first above written and
continue in effect for one (1) year, and thereafter the Agreement shall continue in force and
effect unless and until terminated as provided herein. Upon the expiration of the initial term,
either Party may terminate this Agreement by providing written notice of termination to the other
Party, such written notice to be provided at least ninety (90) days in advance of the date of
termination. In the event of such termination, those service arrangements made available under
this Agreement shall continue without interruption on a month-to-month basis until a new agreement
is executed by the Parties.

     18.2 If either Party defaults in the payment of any amount due hereunder, or if either Party
violates any other provision of this Agreement, and such default or violation shall continue for
thirty (30) days after written notice thereof, the other Party may terminate this Agreement and
services hereunder by written notice; provided the other Party has provided the defaulting Party
and the appropriate federal and/or state regulatory bodies with written notice at least twenty five
(25) days prior to terminating service. Notice shall be posted by overnight mail, return receipt
requested. If the defaulting Party cures the default or violation within the twenty five (25) day
period, the other Party will not terminate service or this Agreement but shall be entitled to
recover all costs, if any, incurred by it in connection with the default or violation, including,
without limitation, costs incurred to prepare for the termination of service.

20

 

Cox / Pac-West

CA Network Interconnection Agreement

19.0 DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

     EXCEPT AS EXPRESSLY PROVIDED UNDER THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY, EXPRESS
OR IMPLIED, WITH RESPECT TO THE SERVICES, FUNCTIONS AND PRODUCTS IT PROVIDES UNDER OR CONTEMPLATED
BY THIS AGREEMENT AND THE PARTIES DISCLAIM THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS
FOR A PARTICULAR PURPOSE.

20.0 CANCELLATION CHARGES

     Except as provided in this Agreement or as otherwise provided in any applicable Tariff, no
cancellation charges shall apply.

21.0 INDEMNIFICATION

     21.1 Each Party agrees to release, indemnify, defend and hold harmless the other Party from
and against all losses, claims, demands, damages, expenses, suits or other actions, or any
liability whatsoever, including, but not limited to, costs and attorneys’ fees (collectively, a
“Loss”), (a) whether suffered, made, instituted, or asserted by any other party or person, relating
to personal injury to or death of any person, or for loss, damage to, or destruction of real and/or
personal property, whether or not owned by others, incurred during the term of this Agreement and
to the extent proximately caused by the acts or omissions of the indemnifying Party, regardless of
the form of action, or (b) suffered, made, instituted, or asserted by its own Customer(s) against
the other Party arising out of the other Party’s provision of services to the indemnifying Party
under this Agreement. Notwithstanding the foregoing indemnification, nothing in this Section 21.
shall affect or limit any claims, remedies, or other actions the indemnifying Party may have
against the indemnified Party under this Agreement, any other contract, or any applicable
Tariff(s), regulations or laws for the indemnified Party’s provision of said services.

     21.2 The indemnification provided herein shall be conditioned upon:

(a) The indemnified Party shall promptly notify the indemnifying Party of any action
taken against the indemnified Party relating to the indemnification.

(b) The indemnifying Party shall have sole authority to defend any such action,
including the selection of legal counsel, and the indemnified Party may engage
separate legal counsel only at its sole cost and expense.

(c) 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, which consent shall not be unreasonably withheld.

21

 

Cox / Pac-West

CA Network Interconnection Agreement

(d) The indemnified Party shall, in all cases, assert any and all provisions in its
Tariffs that limit liability to third parties as a bar to any recovery by the third
party claimant in excess of such limitation of liability.

(e) The indemnified Party shall offer the indemnifying Party all reasonable
cooperation and assistance in the defense of any such action.

22.0 LIMITATION OF LIABILITY

     22.1 The liability of either Party to the other Party for damages arising out of failure to
comply with a direction to install, restore or terminate facilities; or out of failures, mistakes,
omissions, interruptions, delays, errors, or defects occurring in the course of furnishing any
services, arrangements, or facilities hereunder shall be determined in accordance with the terms of
the applicable Tariff(s) of the Providing Party. In the event no Tariff(s) apply, the Providing
Party’s liability shall not exceed an amount equal to the pro rata monthly charge for the period in
which such failures, mistakes, omissions, interruptions, delays, errors or defects occur. Recovery
of said amount shall be the injured Party’s sole and exclusive remedy against the Providing Party
for such failures, mistakes, omissions, interruptions, delays, errors or defects.

     22.2 Neither Party shall be liable to the other in connection with the provision or use of
services offered under this Agreement for indirect, incidental, consequential, reliance or special
damages, including (without limitation) damages for lost profits (collectively, “Consequential
Damages”), regardless of the form of action, whether in contract, warranty, strict liability, or
tort, including, without limitation, negligence of any kind, even if the other Party has been
advised of the possibility of such damages; provided, that the foregoing shall not limit a Party’s
obligation under Section 21.

     22.3 The Parties agree that neither Party shall be liable to the Customers of the other Party
in connection with its provision of services to the other Party under this Agreement. Nothing in
this Agreement shall be deemed to create a third party beneficiary relationship between the Party
providing the service and the Customers of the Party purchasing the service. In the event of a
dispute involving both Parties with a Customer of one Party, both Parties shall assert the
applicability of any limitations on liability to Customers that may be contained in either Party’s
applicable Tariff(s).

23.0 COMPLIANCE WITH LAWS

     23.1 Each Party represents and warrants that it is now and will remain in compliance with all
Applicable Laws. Each Party shall promptly notify the other Party in writing of any governmental
action that suspends, cancels, withdraws, limits, or otherwise materially affects its ability to
perform its obligations hereunder.

     23.2 The Parties recognize that the FCC has issued and may continue to issue the FCC
regulations implementing of the Telecommunications Act that affect certain terms contained in this

22

 

Cox / Pac-West

CA Network Interconnection Agreement

Agreement. In the event that any one or more of the provisions contained herein is inconsistent
with any applicable rule contained in such FCC Regulations, the Parties agree to make only the
minimum revisions necessary to eliminate the inconsistency or amend the application-affecting
provision(s).

     23.3 In the event any Applicable Law other than the FCC Regulations requires modification of
any material term(s) contained in this Agreement or if any of the definitions that are expressly
taken from the Act and restated in Section 1 hereof are amended in any material fashion, either
Party may require a renegotiation of the term(s) that require direct modification as well as of any
term(s) that are reasonably affected thereby. If neither Party requests a renegotiation or if an
Applicable Law requires modification of any non-material term(s), then the Parties agree to make
only the minimum modifications necessary, and the remaining provisions of this Agreement shall
remain in full force and effect.

24.0 MISCELLANEOUS

     24.1 Authorization

          24.1.1 Pac-West is a corporation duly organized, validly existing and in good standing under
the laws of the State of California, and has full power and authority to execute and deliver this
Agreement and to perform the obligations hereunder.

          24.1.2 Cox is a corporation duly organized, validly existing and in good standing under the
laws of the State of California, and has full power and authority to execute and deliver this
Agreement and to perform its obligations hereunder.

     24.2 Independent Contractor

     Each Party shall perform services hereunder as an independent contractor and nothing herein
shall be construed as creating any other relationship between the Parties. Each Party and each
Party’s contractor shall be solely responsible for the withholding or payment of all applicable
federal, state and local income taxes, social security taxes and other payroll taxes with respect
to their employees, as well as any taxes, contributions or other obligations imposed by applicable
state unemployment or workers’ compensation acts. Each Party has sole authority and responsibility
to hire, fire and otherwise control its employees.

     24.3 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: adverse weather conditions, fire, explosion, power failure, 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; strikes, boycotts; or delays caused by the other Party
; or any other circumstances beyond the Party’s reasonable control. In such event, the affected
Party

23

 

Cox / Pac-West

CA Network Interconnection Agreement

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 interferences (and the other Party shall likewise be excused
from performance of its obligations on a day-to-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(s) of non-performance and both Parties shall proceed to perform with
dispatch once the cause(s) are removed or cease. Each Party agrees to treat the other Party in
parity with the manner in which it treats itself and any other entities with regard to a Force
Majeure event.

     24.4 Confidentiality

          24.4.1 All information, including but not limited to specification, 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 Customer-specific, facility-specific, or usage-specific information, other
than customer information communicated for the purpose of publication or directory database
inclusion, or (ii) in written, graphic, electromagnetic, or other tangible form and marked at the
time of delivery as “Confidential” or “Proprietary,” or (iii) communicated orally and declared to
the receiving Party at the time of delivery, or by written notice given to the receiving Party
within ten (10) days after delivery, to be “Confidential” or “Proprietary” (collectively referred
to as “Proprietary Information”), shall remain the property of the disclosing Party.

          24.4.2 Each Party shall keep all of the other Party’s Proprietary Information confidential in
the same manner it holds its own Proprietary Information confidential (which in all cases shall be
no less than reasonable) and shall use the other Party’s Proprietary Information only for
performing the covenants contained in 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.

          24.4.3 Unless otherwise agreed, the obligations of confidentiality and non-use set forth in
this Agreement do not apply to such Proprietary Information that:

(a) was, at the time of receipt, already known to the receiving Party free of any
obligation to keep it confidential as evidenced by written records prepared prior to
delivery by the disclosing Party; or

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

(c) 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

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

24

 

Cox / Pac-West

CA Network Interconnection Agreement

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

(f) 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.

          24.4.4 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 only.

          24.4.5 Notwithstanding any other provision of this Agreement, the provisions of this
subsection 24.4 shall apply to all Proprietary Information furnished by either Party to the other
in furtherance of the purpose of this Agreement, even if furnished before the Effective Date. The
obligations hereunder shall expire three (3) years after termination with respect to any
information.

     24.5 Choice of Law

     The construction, interpretation and performance of this Agreement shall be governed by and
construed in accordance with the laws of the State of California, except for its conflicts of laws
provisions. In addition, insofar as and to the extent federal law may apply, federal law will
control.

     24.6 Taxes

          24.6.1 In General. With respect to any purchase hereunder of services, facilities or
arrangements, if any federal, state or local tax, fee, surcharge or other tax-like charge (a “Tax”)
is required or permitted by Applicable Law to be collected from the purchasing Party by the
Providing Party, then (i) the Providing Party shall properly bill the purchasing Party for such
Tax, (ii) the purchasing Party shall timely remit such Tax to the Providing Party and (iii) the
Providing Party shall timely remit such collected Tax to the applicable taxing authority.

          24.6.2 Taxes Imposed on the Providing Party With respect to any purchase hereunder of
services, facilities or arrangements, if any federal, state or local Tax is imposed by Applicable
Law on the receipts of the Providing Party, which Law permits the Providing Party to exclude
certain receipts received from sales for resale to a public utility, distributor, telephone
company, local exchange carrier, telecommunications company or other communications company
(“Telecommunications Company”), such exclusion being based solely on the fact that the purchasing
Party is also subject to a tax based upon receipts (“Receipts Tax”), then the purchasing Party (i)
shall provide the Providing Party with notice in writing in accordance with subsection 24.6.6 of
this Agreement of its intent to pay the Receipts Tax and (ii) shall timely pay the Receipts Tax to
the applicable tax authority.

          24.6.3 Taxes Imposed on Customers With respect to any purchase hereunder of services,
facilities or arrangements that are resold to a third party, if any federal, state or local Tax is
imposed by Applicable Law on the subscriber, end-user, Customer or ultimate consumer

25

 

Cox / Pac-West

CA Network Interconnection Agreement

(“Subscriber”) in connection with any such purchase, which a Telecommunications Company is required
to impose and/or collect from a Subscriber, then the purchasing Party (i) shall be required to
impose and/or collect such Tax from the Subscriber and (ii) shall timely remit such Tax to the
applicable taxing authority.

          24.6.4 Liability for Uncollected Tax, Interest and Penalty If the Providing Party has
not received an exemption certificate and fails to collect any Tax as required by subsection
24.6.1, then, as between the Providing Party and the purchasing Party, (i) the purchasing Party
shall remain liable for such uncollected Tax and (ii) the Providing Party shall be liable for any
interest assessed thereon and any penalty assessed with respect to such uncollected Tax by such
authority. If the Providing Party properly bills the purchasing Party for any Tax but the
purchasing Party fails to remit such Tax to the Providing Party as required by subsection 24.6.1,
then, as between the Providing Party and the purchasing Party, the purchasing Party shall be liable
for such uncollected Tax and any interest assessed thereon, as well as any penalty assessed with
respect to such uncollected Tax by the applicable taxing authority. If the Providing Party does
not collect any Tax as required by subsection 24.6.1 because the purchasing Party has provided such
Providing Party with an exemption certificate that is later found to be inadequate by a taxing
authority, then, as between the Providing Party and the purchasing Party, the purchasing Party
shall be liable for such uncollected Tax and any interest assessed thereon, as well as any penalty
assessed with respect to such uncollected Tax by the applicable taxing authority. If the
purchasing Party fails to pay the Receipts Tax as required by subsection 24.6.2, then, as between
the Providing Party and the purchasing Party, (x) the Providing Party shall be liable for any Tax
imposed on its receipts and (y) the purchasing Party shall be liable for any interest assessed
thereon and any penalty assessed upon the Providing Party with respect to such Tax by such
authority. If the purchasing Party fails to impose and/or collect any Tax from Subscribers as
required by subsection 24.6.3, then, as between the Providing Party and the purchasing Party, the
purchasing Party shall remain liable for such uncollected Tax and any interest assessed thereon, as
well as any penalty assessed with respect to such uncollected Tax by the applicable taxing
authority. With respect to any Tax that the purchasing Party has agreed to pay, or is required to
impose on and/or collect from Subscribers, the purchasing Party agrees to indemnify and hold the
Providing Party harmless on an after-tax basis for any costs incurred by the Providing Party as a
result of actions taken by the applicable taxing authority to recover the Tax from the Providing
Party due to the failure of the purchasing Party to timely pay, or collect and timely remit, such
Tax to such authority. In the event either Party is audited by a taxing authority, the other Party
agrees to cooperate fully with the Party being audited in order to respond to any audit inquiries
in a proper and timely manner so that the audit and/or any resulting controversy may be resolved
expeditiously.

          24.6.5 Tax Exemptions and Exemption Certificates If Applicable Law clearly exempts a
purchase hereunder from a Tax, and if such Law also provides an exemption procedure, such as an
exemption-certificate requirement, then, if the purchasing Party complies with such procedure, the
Providing Party shall not collect such Tax during the effective period of such exemption. Such
exemption shall be effective upon receipt of the exemption certificate or affidavit in accordance
with the terms set forth in subsection 24.6.6. If Applicable Law clearly exempts a purchase
hereunder from a Tax, but does not also provide an exemption procedure, then the Providing Party
shall not collect such Tax if the purchasing Party (i) furnishes the

26

 

Cox / Pac-West

CA Network Interconnection Agreement

Providing Party with a letter signed by an officer requesting such an exemption and citing the
provision in the Law which clearly allows such exemption and (ii) supplies the Providing Party with
an indemnification agreement, reasonably acceptable to the Providing Party (e.g.,
an agreement commonly used in the industry), which holds the Providing Party harmless on an
after-tax basis with respect to its forbearing to collect such Tax.

          24.6.6 Notices for Purposes of this Subsection 24.6 All notices, affidavits,
exemption-certificates or other communications required or permitted to be given by either Party to
the other, for purposes of this subsection 24.6, shall be made in writing and shall be delivered in
person or sent by certified mail, return receipt requested, or registered mail, or a courier
service providing proof of service, and sent to the addressees set forth in subsection 24.10 as
well as to the following:

	 	 	 	 	 
	 

	 	To Pac-West:
	 	Tamara Rudd
	 

	 	 	 	Director of Tax
	 

	 	 	 	Pac-West Telecomm, Inc.
	 

	 	 	 	1776 West March Lane, Suite 250
	 

	 	 	 	Stockton, CA 95207-6428
	 
	 	 	 	 
	 

	 	To Cox:
	 	Nancy Patin
	 

	 	 	 	Director of Taxes
	 

	 	 	 	Cox Communications, Inc.
	 

	 	 	 	1400 Lake Hearn Drive, N.E.
	 

	 	 	 	Atlanta, GA 30319

Either Party may from time to time designate another address or other addressees by giving notice
in accordance with the terms of this subsection 24.6. Any notice or other communication shall be
deemed to be given when received.

     24.7 Assignment.

     Either Party may assign this Agreement or any of its rights or obligations hereunder to a
third party, with the other Party’s prior written consent, which consent shall not be unreasonably
withheld upon the provision of reasonable evidence by the proposed assignee that it has the
resources, ability, and authority to provide satisfactory performance under this Agreement. Any
assignment or delegation in violation of this subsection 24.7 shall be void and ineffective and
constitute a default of this Agreement. No consent will be required in the event of assignment to
a parent owning a majority of the Party, or a majority owned subsidiary of the Party, provided that
such assignment shall not relieve the assigning Party of its obligations hereunder unless otherwise
agreed to by the Parties. The foregoing shall not be construed to prevent a Party from granting a
security interest in this Agreement.

     24.8 Billing and Payment; Disputed Amounts.

          24.8.1 Except as may otherwise be provided in this Agreement, each Party shall submit on a
monthly basis an itemized statement of charges incurred by the other Party during the

27

 

Cox / Pac-West

CA Network Interconnection Agreement

preceding month(s) for services rendered hereunder. Payment of billed amounts under this
Agreement, whether billed on a monthly basis or as otherwise provided herein, shall be due, in
immediately available U.S. funds, within thirty (30) days of the date of such statement.

          24.8.2 Although it is the intent of both Parties to submit timely and accurate statements of
charges, failure by either Party to present statements to the other Party in a timely manner shall
not constitute a breach or default, or a waiver of the right to payment of the incurred charges, by
the billing Party under this Agreement, and the billed Party shall not be entitled to dispute the
billing Party’s statement(s) based on such Party’s failure to submit them in a timely fashion.

          24.8.3 No claims, under this Agreement or its Attachments, shall be brought for disputed
amounts more than twenty-four (24) months from the date of occurrence which gives rise to the
dispute. If any portion of an amount due to a Party (the “Billing Party”) under this Agreement is
subject to a bona fide dispute between the Parties, the Party billed (the
“Non-Paying Party”) shall within sixty (60) days of its receipt of the invoice containing such
disputed amount give notice to the Billing Party of the amounts it disputes (“Disputed Amounts”)
and include in such notice the specific details and reasons for disputing each item. The Non-Paying
Party shall pay when due (i) all undisputed amounts to the Billing Party and (ii) the Disputed
Amount into an interest bearing escrow account with, or obtained from (in the case of a bond or
letter of credit), an entity agreeable to both Parties. The Disputed Amount shall thereafter be
paid, if appropriate, upon final determination of such dispute.

          24.8.4 If the Parties are unable to resolve the issues related to the Disputed Amounts in the
normal course of business within sixty (60) days after delivery to the Billing Party of notice of
the Disputed Amounts, each of the Parties shall appoint a designated representative that has
authority to settle the dispute and that is at a higher level of management than the persons with
direct responsibility for administration of this Agreement. The designated representatives shall
meet as often as they reasonably deem necessary in order to discuss the dispute and negotiate in
good faith in an effort to resolve such dispute. The specific format for such discussions will be
left to the discretion of the designated representatives, however all reasonable requests for
relevant information made by one Party to the other Party shall be honored.

          24.8.5 If the Parties are unable to resolve issues related to the Disputed Amounts within
forty five (45) days after the Parties’ appointment of designated representatives pursuant to
subsection 24.8.4, or if either Party fails to appoint a designated representative within forty
five (45) days, then either Party may file a complaint with the Commission to resolve such issues
or proceed with any other remedy pursuant to law or equity. The Commission may direct release of
any or all funds (including any accrued interest) in the escrow account, plus applicable late fees,
to be paid to either Party.

          24.8.6 The Parties agree that all negotiations pursuant to this subsection 24.8 shall remain
confidential and shall be treated as compromise and settlement negotiations for purposes of the
Federal Rules of Evidence and state rules of evidence.

28

 

Cox / Pac-West

CA Network Interconnection Agreement

          24.8.7 Any undisputed amounts not paid when due shall accrue interest from the date such
amounts were due at the lesser of (i) one and one-half percent (1-1/2%) per month or (ii) the
highest rate of interest that may be charged under applicable law.

     24.9 Dispute Resolution

     Any dispute between the Parties regarding the interpretation or enforcement of this Agreement
or any of its terms shall be addressed by good faith negotiation between the Parties, in the first
instance. Should such negotiations fail to resolve the dispute in a reasonable time, the Parties
may, upon mutual agreement, submit the matter to alternative dispute resolution (“ADR”) or, in the
absence of such an agreement, either Party may initiate an appropriate action in any regulatory or
judicial forum of competent jurisdiction.

     24.10 Notices

     Except as otherwise provided in this Agreement, notices given by one Party to the other Party
under this Agreement shall be in writing and shall be (a) delivered personally, (b) delivered by
express delivery service, or (c) mailed, certified mail or first class U.S. mail postage prepaid,
return receipt requested, to the following addresses of the Parties:

	 	 	 	 	 
	 

	 	To Pac-West:
	 	Mart McCann
Director, Interconnection

Pac-West Telecomm, Inc.

1776 West March Lane, Suite 250

Stockton, CA 95207-6428
	 
	 	 	 	 
	 

	 	To Cox:
	 	Douglas Garrett
	 

	 	 	 	Vice President Western Region Regulatory Affairs
	 

	 	 	 	Cox California Telcom, LLC
	 

	 	 	 	2200 Powell Street, Suite 1035
	 

	 	 	 	Emeryville, California 94608

with a copy:

	 	 	 	 	 
	 

	 	To Pac-West:	 	 
	 
	 	 	 	 
	 

	 	To Cox:
	 	Suzanne L. Howard
	 

	 	 	 	Director, Regulatory Affairs
	 

	 	 	 	Cox Communications, Inc.
	 

	 	 	 	1400 Lake Hearn Drive, N.E.
	 

	 	 	 	Atlanta, GA 30319

29

 

Cox / Pac-West

CA Network Interconnection Agreement

or to such other address as either Party shall designate by proper written notice. Notices will be
deemed given as of the earlier of (i) the date of actual receipt, (ii) the next business day when
notice is sent via express mail or personal delivery, or (iii) three (3) days after mailing in the
case of first class or certified U.S. mail.

     24.11 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.

     24.12 No Third Party Beneficiaries; Disclaimer of Agency

     This Agreement is for the sole benefit of the Parties and their permitted assigns, and nothing
herein express or implied shall create or be construed to create any third-party beneficiary rights
hereunder. 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 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.

     24.13 No License

          24.13.1 Nothing in this Agreement shall be construed as the grant of a license, either express
or implied, with respect to any patent, copyright, trademark, trade name, trade secret or any other
proprietary or intellectual property now or hereafter owned, controlled or licensable by either
Party. Neither Party may use any patent, copyrightable materials, trademark, trade name, trade
secret or other intellectual property right of the other Party except in accordance with the terms
of a separate license agreement between the Parties granting such rights.

          24.13.2 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 Party or its Customers based on or arising from any claim, demand, or proceeding 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, alone or in combination with that of the other Party,
constitutes direct, vicarious or contributory infringement or inducement to infringe, misuse or
misappropriation of any patent, copyright, trademark, trade secret, or any other proprietary or
intellectual property right of any Party or third party. Each Party, however, shall offer to the
other reasonable cooperation and assistance in the defense of any such claim.

30

 

Cox / Pac-West

CA Network Interconnection Agreement

          24.13.3 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, THAT THE USE BY
THE PARTIES OF THE OTHER’S FACILITIES, ARRANGEMENTS, OR SERVICES PROVIDED UNDER THIS AGREEMENT
SHALL NOT GIVE RISE TO A CLAIM BY ANY THIRD PARTY OF INFRINGEMENT, MISUSE, OR MISAPPROPRIATION OF
ANY INTELLECTUAL PROPERTY RIGHT OF SUCH THIRD PARTY.

     24.14 Technology Upgrades

     Nothing in this Agreement shall limit either Party’s ability to upgrade its network through
the incorporation of new equipment, new software or otherwise. A Party shall provide the other
written notice at least ninety (90) days prior to the incorporation of any such upgrades in its
network that will materially affect the other’s service, and shall exercise reasonable efforts to
provide at least one hundred eighty (180) days’ notice where practicable. The party receiving such
notice shall be solely responsible for the cost and effort of accommodating such changes in its own
network.

     24.15 Survival

     The Parties’ obligations under this Agreement which by their nature are intended to continue
beyond the termination or expiration of this Agreement shall survive the termination or expiration
of this Agreement.

     24.16 Entire Agreement

     The terms contained in this Agreement and any Schedules, Appendices, Tariffs and other
documents or instruments referred to herein, which are incorporated into this Agreement by this
reference, constitute the entire agreement between the Parties with respect to the subject matter
hereof, superseding all prior understandings, proposals and other communications, oral or written.
Neither Party shall be bound by any preprinted terms additional to or different from those in this
Agreement that may appear subsequently in the other Party’s form documents, purchase orders,
quotations, acknowledgments, invoices or other communications.

     24.17 Counterparts

     This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same instrument.

     24.18 Modification, Amendment, Supplement, or Waiver

     No modification, amendment, supplement to, or waiver of the Agreement or any of its provisions
shall be effective and binding upon the Parties unless it is made in writing and duly signed by the
Parties. A failure or delay of either Party to enforce any of the provisions hereof, to exercise
any option which is herein provided, or to require performance of any of the provisions hereof
shall in no way be construed to be a waiver of such provisions or options.

31

 

Cox / Pac-West

CA Network Interconnection Agreement

     24.19 Successors and Assigns

     This Agreement shall be binding on and inure to the benefit of the Parties and their
respective legal successors and permitted assigns.

     24.20 Publicity

     Neither Party shall use the name of the other Party in connection with this Agreement in a
press release or statement without the prior consent of the other Party, which consent shall not be
unreasonably withheld.

     24.21 Amendment

     The Parties may mutually agree to amend this Agreement in writing.

     24.22 Changes in Law

     In the event of a change in applicable law that materially affects any material term of this
Agreement, the rights or obligations of either Party hereunder, or the ability of either Party to
perform any material provision hereof, the Parties shall renegotiate in good faith such affected
provisions with a view toward agreeing to acceptable new terms as may be required or permitted as a
result of such legislative, regulatory, judicial, or other legal action. If, after good faith
negotiations, the Parties agree that resolution will not be reached, then either Party may initiate
an appropriate action in any regulatory or judicial forum of competent jurisdiction.

     24.23 Severability

     The Parties negotiated the terms and conditions of this Agreement for services and
interconnection of their respective networks pursuant to section 251(a)(1) and 251(b) of the Act as
a total arrangement and it is intended to be nonseverable. Every interconnection and service
provided hereunder shall be subject to all rates, terms and conditions contained in this Agreement
which are legitimately related to the complete interconnection and all services provided herein.

32

 

Cox / Pac-West

CA Network Interconnection Agreement

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the
dates set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	Cox California Telcom, LLC	 	Pac-West Telecomm, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Printed:	 	Carrington Phillip	 	Printed:	 	John Sumpter
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	Vice President Regulatory Affairs
	 	Title:
	 	 
	 	Vice President, Regulatory
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:
	 	 	 	 
	 	 	 	 	 	 	 

33

 

Cox / Pac-West

CA Network Interconnection Agreement

Appendix 1

DETAILED SCHEDULE OF ITEMIZED CHARGES

	A.	 	Pac-West Services, Facilities, and Arrangements:

	 	 	 	 	 	 	 
	 	 	Pac-West Service	 	Non-recurring	 	Recurring
	1.

	 	Entrance
facilities, and
transport, as
appropriate, for
Interconnection at
Pac-West End
Office, Tandem
Office, Serving
Wire Center, or
other Point of
Interconnection
	 	Per Tariffed or negotiated rates	 	 
	 
	 	 	 	 	 	 
	2.

	 	Reciprocal
Compensation for
Local Traffic
	 	None
	 	$0.0007 per mou
	 
	 	 	 	 	 	 
	3.

	 	Termination of
IntraLATA Toll
Traffic
	 	Per intrastate
Switched Access
Tariff
	 	Per intrastate
Switched Access
Tariff

34

 

Cox / Pac-West

CA Network Interconnection Agreement

	B.	 	Cox Services, Facilities, and Arrangements:

	 	 	 	 	 	 	 
	 	 	Cox Service	 	Non-recurring	 	Recurring
	1.

	 	Entrance
facilities, and
transport, as
appropriate, for
Interconnection at
Pac-West End
Office, Tandem
Office, Serving
Wire Center, or
other Point of
Interconnection
	 	Per Tariffed or negotiated rates	 	 
	 
	 	 	 	 	 	 
	2.

	 	Reciprocal
Compensation for
Local Traffic
	 	None
	 	$0.0007 per mou
	 
	 	 	 	 	 	 
	3.

	 	Termination of
IntraLATA Toll
Traffic
	 	Per intrastate
Switched Access
Tariff
	 	Per intrastate
Switched Access
Tariff

35

 

Cox / Pac-West

CA Network Interconnection Agreement

Appendix 2

INITIAL INTERCONNECTION ARRANGEMENTS

1. Direct Interconnection. Where, and to the extent sound engineering practice suggests the use of
direct interconnection, the Parties agree to establish such direct interconnection between their
networks as described below:

(a) [If an ILEC ‘cage-to-cage’ interface is used.] Pac-West and Cox will implement a
Mid-Span Meet interconnection. Cox will provide Pac-West Channel Facility Assignment and
Letter Of Agency (“LOA”) for a DS3 position on their APOT. Pac-West will order the DS3
cross connect from Pacific Bell (where Pacific Bell provides such cross connects) and will
bill Cox for its proportionate use of the recurring and non-recurring costs charged by
Pacific Bell for the cross connect. Once Pac-West receives the Design Layout Record
(“DLR”)/Circuit Layout Record (“CLR”), the DLR/CLR will be forwarded to Cox with the
proposed date of DS3 testing. After the DS3 cross connect is tested per Section 3 of this
Appendix 2, then trunk interconnection will be established per section 4 of this Appendix
2.The applicable ACLLI will be ______and the ZCLLI will be ______.

(b) [If a leased interface is used.] Pac-West and Cox will implement direct interconnection
using ____as the Local Access Provider. Cox will purchase the interoffice facilities
from ___and bill Pac-West for its proportionate use of the recurring and non-recurring
costs charged by ____for the facility. Pac-West will provide Cox with a LOA authorizing
Cox to use the ____entrance facilities at the Pac-West wire center to interconnect to
the Pac-West network at the DS3 level. Once Cox receives the LOA, Cox shall submit a DS3
order to ____with a standard interval due date. Once Cox receives the DLR/CLR, the
DLR/CLR will be forwarded to Pac-West with the proposed date of DS3 testing. After the DS3
is tested per Section 3 of Appendix 1, then trunk interconnection will be established per
section 4 of Appendix 2. The ACLLI will be ______and the ZCLLI will be
______.

(c) [If other interface is used.]

3. Testing. The Parties will coordinate with each other to test the DS-3 and/or DS-1s in
accordance with standard industry practices. The DS-3 test will be for a period of seventy-two
(72) hours to verify continuity.

4. Initial Trunking Requirements. Once testing is successfully completed, Pac-West and Cox will
initially jointly engineer and provision two-way trunks, starting at channel 1 of the DS-3 or DS-1,
into their respective switches for establishment of interconnection trunking. Pac-West will order
the trunks from Cox using Access Service Request (“ASR”) Exchange, which is ASOG ASR compliant to
version 21. The trunk groups established pursuant to this MOU will be used to exchange Local
Traffic (including traffic destined for Internet Service Providers) and IntraLATA Toll Traffic
only.

36

 

Cox / Pac-West

CA Network Interconnection Agreement

(a) The trunking will be established using the following parameters:

Traffic Class: PH

Traffic Type: Local Direct End Office Trunking or Toll Direct End Office Trunking

Signaling/Coding: SS7/B8ZS/ESF

Direction: Two Way

Pac-West Hunt: Most Idle

Cox Hunt: Most Idle or Anti-Clockwise

Glare: ODD/EVEN

Quantity of Trunks: To be jointly determined based on sound engineering practices.

TCIC Range: To be determined based on mutually agreed-to trunk quantities.

Pac-West OPC: LA-1: 005010102; LA-2: 206151001; LA-3: 206151002

Pac-West Switch CLLI: LSANCARCDS3; LSAOCAGIDS0; LSANCARCDSJ

Pac-West OCN: 7379 for California

Pac-West CIC: 0099

Cox DPC: _______________________

Cox Switch CLLI: _______________________

Cox OCN: ___________________________

Cox CIC: ___________________________

5. Signaling. The Parties will provide CCS Signaling to one another in all direct or indirect
Interconnection trunking arrangements. The Parties will cooperate on the exchange of TCAP messages
to facilitate interoperability of all CCS-based features and services, including but not limited to
CLASS and Calling Name Delivery, to the extent each Party offers such features and functions to its
Customers. All CCS Signaling parameters will be provided upon request (where such parameters are
available and support signaling features and functions deployed within both Parties’ networks),
including called party number, Calling Party Number, calling party category, and charge number.
All privacy indicators will be honored.

37exv10w58

 

Exhibit 10.58

	 		
	
	 	TERM LOAN AND SECURITY AGREEMENT

          TERM LOAN AND SECURITY AGREEMENT dated as of 30th day of November 2005, between
Pac-West Telecomm, Inc., a corporation organized and existing under the laws of the State of
Califorina having its principal office at 1776 W. March Lane, Stockton, CA 95207 (“Customer”),
and Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc., a
corporation organized and existing under the laws of the State of Delaware having its principal
office at 222 North LaSalle Street, Chicago, IL 60601 (“MLC”).

          In consideration of the mutual covenants of the parties hereto, Customer and MLC hereby agree as follows:

ARTICLE I. DEFINITIONS

Section 1.1 Specific Terms. In addition to terms defined elsewhere in this Loan Agreement,
when used herein the following terms shall have the following meanings:

     “Applicable Law” shall mean all laws, judgments, decrees, ordinances and regulations and any
other governmental rules, orders and determinations and all requirements having the force of law,
now or hereafter enacted, made or issued, whether or not presently contemplated, including (without
limitation) compliance with all requirements of zoning laws and labor laws.

     “Bankruptcy Event” shall mean any of the following: (i) a proceeding under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, liquidation, winding up or
receivership law or statute shall be commenced, filed or consented to by any Credit Party; or (ii)
any such proceeding shall be filed against any Credit Party and shall not be dismissed or withdrawn
within sixty (60) days after filing; or (iii) any Credit Party shall make a general assignment for
the benefit of creditors; or (iv) any Credit Party shall generally fail to pay or admit in writing
its inability to pay its debts as they become due; or (v) any Credit Party shall be adjudicated a
bankrupt or insolvent; or (vi) any Credit Party shall take advantage of any other law or procedure
for the relief of debtors or shall take any action for the purpose of or with a view towards
effecting any of the foregoing; or (vii) a receiver, trustee, custodian, fiscal agent or similar
official for any Credit Party or for any substantial part of any of their respective property or
assets shall be sought by such Credit Party or appointed.

     “Business Day” shall mean any day other than a Saturday, a Sunday, and any day on which
banking institutions located in the State of New York are authorized by law or other governmental
action to close.

     “Business Guarantor” shall mean every Guarantor that is not a natural person.

     “Closing Date” shall mean the date upon which all conditions precedent to MLC’s obligation to
make the Loan shall have been met to the satisfaction of MLC.

     “Collateral” shall mean the collateral more fully described on Exhibit A attached hereto,
howsoever arising, whether now owned or existing or hereafter acquired or arising, and wherever
located; together with all parts thereof (including spare parts), all accessories, alterations and
accessions thereto, all books and records (including computer records) directly related thereto,
all proceeds thereof (including, without limitation, proceeds in the form of Accounts and insurance
proceeds), and the additional collateral described in Section 3.6 (b) hereof.

     “Commitment Expiration Date” shall mean March 31, 2006.

     “Credit Party” and “Credit Parties” shall mean, individually or collectively, the Customer,
all Guarantors, and all Pledgors.

     “Default” shall mean either an “Event of Default” as defined in Section 3.5 hereof, or an
event which with the giving of notice, passage of time, or both, would constitute such an Event of
Default.

     “Default Rate” shall mean an annual interest rate equal to the lesser of: (i) two percentage
points over the Interest Rate; or (ii) the highest interest rate allowed by applicable law.

     “Event of Loss” shall mean the occurrence whereby any tangible Collateral is damaged beyond
repair, lost, totally destroyed or confiscated.

     “GAAP” shall mean the generally accepted accounting principles in effect in the United States
of America from time to time.

     “General Funding Conditions” shall mean each of the following conditions to each loan or
advance by MLC hereunder: (i) no Default or Event of Default shall have occurred and be continuing
or would result from the making of any such loan or advance hereunder by MLC; (ii) there shall not
have occurred and be continuing any material adverse change in the business, condition (financial
or otherwise) of any Credit Party; (iii) all representations and warranties of all of the Credit
Parties herein or in any of the Loan Documents shall then be true and correct in all material
respects; (iv) MLC shall have received this Loan Agreement and all of the other Loan Documents,
duly executed, all of which shall be in form and substance satisfactory to MLC; (v) MLC shall have
received, as and to the extent applicable, copies of invoices, bills of sale, loan payoff letters
and/or other evidence reasonably satisfactory to it that the proceeds of the Loan will satisfy the
Loan Purpose; (vi) MLC shall have received evidence reasonably satisfactory to it as to the
ownership of the Collateral and the perfection and priority of MLC’s liens and security interests
thereon, as well as the ownership of and the perfection and priority of MLC’s liens and security
interests on any other collateral for the Obligations furnished pursuant to any of the Loan
Documents; (vii) MLC shall have received evidence

1

 

reasonably satisfactory to it of the insurance
required hereby or by any of the Loan Documents on the Collateral; and (viii) any additional
conditions, information and/or other documents as reasonably requested by MLC with respect to the
transactions contemplated hereby shall have been met to the reasonable satisfaction of MLC.

     “Guarantor” shall mean each Person obligated under a guaranty, endorsement or other
undertaking by which such Person guarantees or assumes responsibility in any capacity for the
payment or performance of any of the Obligations.

     “Individual Guarantor” shall mean every Guarantor that is a natural person.

     “Loan” shall mean a 36 month term installment loan in an amount equal to $4,474,588.64

     “Loan Agreement” shall mean this agreement as titled in the initial paragraph hereof.

     “Loan Documents” shall mean this Loan Agreement, any note, any guaranty of any of the
Obligations and all other security and other instruments, assignments, certificates, certifications
and agreements of any kind relating to any of the Obligations, whether obtained, authorized,
authenticated, executed, sent or received concurrently with or subsequent to this Loan Agreement,
or which evidence the creation, guaranty or collateralization of any of the Obligations or the
granting or perfection of liens or security interests upon any Collateral or any other collateral
for the Obligations, including any modifications, amendments or restatements of the foregoing.

     “Loan Purpose” shall mean the purpose for which the proceeds of the Loan will be used; to wit:
to purchase or finance equipment.

     “Location of Tangible Collateral” shall mean the address of Customer where the collateral is
located as set forth on Exhibit A hereto.

     “Material Adverse Effect” shall mean any material adverse effect on the business or financial
condition of Customer taken as a whole as reasonably determined by MLC.

     “Obligations” shall mean all liabilities, indebtedness and obligations of Customer to MLC,
howsoever created, arising or evidenced, whether now existing or hereafter arising, whether direct
or indirect, absolute or contingent, due or to become due, primary or secondary or joint or
several, and, without limiting the generality of the foregoing, shall include principal, accrued
interest (including without limitation interest accruing after the filing of any petition in
bankruptcy), all advances made by or on behalf of MLC under the Loan Documents, collection and
other costs and expenses incurred by or on behalf of MLC, whether incurred before or after
judgment, and all present and future liabilities, indebtedness and obligations of Customer under
the Note issued pursuant hereto and this Loan Agreement, or any other Note or evidence of
indebtedness to MLC.

     “Permitted Liens” shall mean with respect to the Collateral: (i) liens for current taxes not
yet due and payable, other non-consensual liens arising in the ordinary course of business for sums
not due, and, if MLC’s rights to and interest in the Collateral would not be materially and
adversely affected thereby, any such liens for taxes or other non-consensual liens arising in the
ordinary course of business being contested in good faith by appropriate proceedings and so long as
adequate reserves are maintained with respect to such liens and available to Customer for the
payment of such taxes or other non-consensual liens; (ii) liens in favor of MLC; (iii) liens which
will be discharged with the proceeds of the Loan; (iv) statutory liens of landlords, carriers,
warehousemen, processors, mechanics, materialmen, or suppliers incurred in the ordinary course of
business and securing amounts not yet due or declared to be due by the claimant thereunder; and (v)
any other liens expressly permitted in writing by MLC.

     “Person” shall mean any natural person and any corporation, partnership (general, limited or
otherwise), limited liability company, trust, association, joint venture, governmental body or
agency or other entity having legal status of any kind.

     “Pledgor” shall mean each Person who at any time provides collateral, or otherwise now or
hereinafter agrees to grant MLC a security interest in any assets as security for Customer’s
Obligations.

     “UCC” shall mean the Uniform Commercial Code of Illinois as in effect in Illinois from time to
time.

1.2. Other Terms. Except as otherwise defined herein, all terms used in this Loan
Agreement which are defined in the UCC shall have the meanings set forth in the UCC and accounting
terms not defined herein shall have the meaning ascribed to them in GAAP.

1.3. UCC Filing. Customer hereby authorizes MLC to file a record or records (as defined or
otherwise specified under the UCC), including, without limitation, financing statements, in all
jurisdictions and with all filing offices as MLC may determine, in its sole discretion, are
necessary or advisable to perfect the security interest granted to MLC herein. Such financing
statements may describe the Collateral in the same manner as described herein or may contain an
indication or description of collateral that describes such property in any other manner as MLC may
determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of
the security interest in the Collateral granted to the MLC herein.

ARTICLE II. THE LOAN

2.1. Commitment. Subject to the terms and conditions hereof, MLC hereby agrees to make the
Loan to Customer for the Loan Purpose, and Customer agrees that all amounts borrowed shall satisfy
the Loan Purpose from MLC. The entire proceeds of the Loan shall be disbursed on the Closing Date
either directly to the applicable third party or parties on account of the Loan Purpose or to
reimburse Customer for amounts directly expended by it; all as directed by Customer in a Pay
Proceeds Notice to be executed by Customer and delivered to MLC as set forth in Section 2.3.

-2-

 

2.2. Note. The Loan will be evidenced by and repayable in accordance with that certain
Collateral Installment Note made by Customer payable to the order of MLC and issued pursuant to
this Loan Agreement (the “Note”). The Note is hereby incorporated as a part hereof as if fully set
forth herein.

2.3. Conditions of MLC’s Obligation. The Closing Date and MLC’s obligation to make the
Loan on the Closing Date are subject to the prior fulfillment of each of the following conditions:
(a) MLC shall have received a written request from Customer that the Loan be funded in accordance
with the terms hereof, together with a written direction from Customer as to the method of payment
and payee(s) of the proceeds of the Loan, which request and direction shall have been received by
MLC not less than two Business Days prior to any requested funding date; (b) the Commitment
Expiration Date shall not then have occurred; and (c) each of the General Funding Conditions shall
then have been met or satisfied to the reasonable satisfaction of MLC.

2.4. Use of Loan Proceeds. The proceeds of the Loan shall be used by Customer solely for a
Loan Purpose, or, with the prior written consent of MLC, for other lawful business purposes of
Customer not prohibited hereby. Customer agrees that under no circumstances will the proceeds of
the Loan be used: (a) for personal, family or household purposes of any Person whatsoever, or (b)
to purchase, carry or trade in securities, or repay debt incurred to purchase, carry or trade in
securities, or (c) unless otherwise consented to in writing by MLC, to pay any amount to Merrill
Lynch and Co., Inc. or any of its subsidiaries, other than Merrill Lynch Bank USA, Merrill Lynch
Bank & Trust Co. or any subsidiary of either of them (including MLC and Merrill Lynch Credit
Corporation).

ARTICLE
III. GENERAL PROVISIONS

3.1.  Representations and Warranties. Customer represents and warrants to MLC that:

(a) Organization and Existence. Customer is a corporation, duly organized and validly
existing in good standing under the laws of its jurisdiction of incorporation; the organizational
number assigned to Customer by such jurisdiction is C1968719; Customer is qualified to do business
and in good standing in each other jurisdiction where the nature of its business or the property
owned by it make such qualification necessary and where the failure to be so qualified would have a
Material Adverse Effect; and, where applicable, each Business Guarantor is duly organized, validly
existing and in good standing under the laws of the state of its formation and is qualified to do
business and in good standing in each other jurisdiction where the nature of its business or the
property owned by it make such qualification necessary, and where the failure to be so qualified
would have a Material Adverse Effect.

(b) Execution, Delivery and Performance. Each Credit Party has the requisite power and
authority to enter into and perform the Loan Documents. The Customer holds all necessary permits,
licenses, certificates of occupancy and other governmental authorizations and approvals required in
order to own or operate the Customer’s business except where the failure to do so would have a
Material Adverse Effect. The execution, delivery and performance by Customer of this Loan
Agreement and by each of the other Credit Parties of such of the other Loan Documents to which it
is a party: (i) have been duly authorized by all requisite corporate action by such Credit Party,
(ii) do not and will not violate or conflict with any material law, order or other governmental
requirement, or any of the agreements, instruments or documents which formed or govern any of the
Credit Parties, and (iii) do not and will not breach or violate any of the provisions of, and will
not result in a default by any of the Credit Parties under, any other material agreement,
instrument or document to which it is a party or is subject.

(c) Notices and Approvals. Except as may have been given or obtained, no notice to or
consent or approval of any governmental body or authority or other third party whatsoever
(including, without limitation, any other creditor) is required in connection with the execution,
delivery or performance by any Credit Party of this Loan Agreement, the Note and the other Loan
Documents to which it is a party other than where the failure to have been given or to have
obtained such notice, consent or approval would not have a Material Adverse Effect.

(d) Enforceability. The Loan Documents to which any Credit Party is a party are the
respective legal, valid and binding obligations of such Credit Party, enforceable against it or
them, as the case may be, in accordance with their respective terms, except as enforceability may
be limited by bankruptcy and other similar laws affecting the rights of creditors generally or by
general principles of equity.

(e) Collateral. Except for the existence of, or priorities afforded to, any Permitted
Liens: (i) Customer has good and marketable title to the Collateral, (ii) none of the Collateral is
subject to any lien, encumbrance or security interest, and (iii) upon the filing of all Uniform
Commercial Code financing statements authenticated or otherwise authorized by Customer with respect
to the Collateral in the appropriate jurisdiction(s) and/or the completion of any other action
required by applicable law to perfect its liens and security interests, MLC will have valid and
perfected first liens and security interests upon all of the Collateral. Without limiting the
foregoing:

(A) The chief executive office and chief place of business (as such terms are used in Article 9
of the UCC) of Customer is located at the address specified in the preamble hereto.

(B) The tangible Collateral is and will remain tangible personal property and is not and shall
not constitute real property fixtures. The tangible Collateral is removable from and is not
essential to the premises at which the tangible Collateral is located.

(C) All of the tangible Collateral is located at the Location of Tangible Collateral.

(f) Financial Statements. Except as expressly set forth in Customer’s or any Business
Guarantor’s financial statements, all financial statements of Customer and each Business Guarantor
furnished to MLC have been prepared in conformity with generally accepted accounting principles,
consistently applied, are true and correct in all material respects, and fairly present the
financial condition of it as at such dates and the results of its operations for the

-3-

 

periods then ended (subject, in the case of interim unaudited financial statements, to normal
year-end adjustments); and since the most recent date covered by such financial statements, there
has been no material adverse change in any such financial condition or operation.

(g) Litigation; Compliance With All Laws. No litigation, arbitration, administrative or
governmental proceedings are pending or, to the knowledge of Customer, threatened against any
Credit Party, which would, materially and adversely affect (i) such Credit Party’s interest in the
Collateral or the liens and security interests of MLC hereunder or under any of the Loan Documents,
or (ii) the financial condition of such Credit Party or its continued operations. Each Credit
Party is in compliance in all material respects with all laws, regulations, requirements and
approvals applicable to such Credit Party.

(h) Tax Returns. All federal, state and local tax returns, reports and statements required
to be filed by any Credit Party have been filed with the appropriate governmental agencies and all
taxes due and payable by any Credit Party have been timely paid (except to the extent that any such
failure to file or pay will not materially and adversely affect (i) either the liens and security
interests of MLC hereunder or under any of the Loan Documents, (ii) the financial condition of any
Credit Party, or (iii) its continued operations).

(i) Relationship with Merrill Lynch. Neither Customer nor any shareholder or other Person
that controls Customer is (i) an executive officer or director of Merrill Lynch & Co., Inc. or any
of its subsidiaries, or (ii) a holder of more than 10% of any class of voting securities of Merrill
Lynch & Co., Inc. or any of its subsidiaries. For purposes of this representation, “control” means
the power to vote 25% or more of any class of voting securities; the ability to control the
election of a majority of directors; or the power to exercise a controlling influence over
management policies.

(j) No Outside Broker. Except for employees of MLC, Merrill Lynch, Pierce, Fenner & Smith
Financial Consultant (“MLPF&S”) or one of their affiliates or as described in writing by Customer
to MLC, Customer has not in connection with the transactions contemplated hereby directly or
indirectly engaged or dealt with, and was not introduced or referred to MLC by, any broker or other
loan arranger.

(k) Environmental Matters. In the ordinary course of its business, the officers of
Customer consider the effect of Environmental Laws on the business of Customer, in the course of
which they identify and evaluate potential risks and liabilities accruing to Customer due to
Environmental Laws. On the basis of this consideration, Customer has concluded that Environmental
Laws cannot reasonably be expected to have a Material Adverse Effect on Customer or any Business
Guarantor. Neither Customer nor any Business Guarantor has received any notice to the effect that
its operations are not in material compliance with any of the requirements of applicable
Environmental Laws or are the subject of any federal or state investigation evaluating whether any
remedial action is needed to respond to a release of any toxic or hazardous waste or substance into
the environment, which non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect on Customer or any Business Guarantor. “Environmental Laws” shall mean any
Federal, foreign, state or local law, rule or regulation pertaining to the protection of the
environment, including, but not limited to, the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (“CERCLA”) (42 U.S.C. section 9601 et seq.), the Hazardous Material
Transportation Act (49 U.S.C. section 1801 et seq.), the Federal Water Pollution Control Act (33
U.S.C. section 1251 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. section 6901 et
seq.), the Clean Air Act (42 U.S.C. section 7401 et seq.), the Toxic Substances Control Act (15
U.S.C. section 2601 et seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
section 1361 et seq.), and the Occupational Safety and Health Act (19 U.S.C. section 651 et seq.),
as these laws have been amended or supplemented, and any analogous foreign, Federal, state or local
statutes, and the regulations promulgated pursuant thereto.

(l) Investment Company Act. Neither Customer nor any Business Guarantor is an “investment
company” or a company “controlled” by an “investment company”, within the meaning of the Investment
Company Act of 1940, as amended.

(m) Public Utility Holding Company Act. Neither Customer nor any Business
Guarantor is a “holding company” or a “subsidiary company” of a “holding company”, or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding company”, within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

(n) Customer Identification- USA Patriot Act Notice; OFAC and Bank Secrecy Act. MLC
hereby notifies Customer that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and MLC’s policies and practices,
MLC is required to obtain, verify and record certain information and documentation that identifies
each Customer, which information includes the name and address of each Customer and such other
information that will allow MLC to identify each Customer in accordance with the Act. In addition,
Customer shall (a) ensure that no Person who owns a controlling interest in or otherwise controls
any Customer or any subsidiary of any Customer is or shall be listed on the Specially Designated
Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets
Control (“OFAC”), the Department of the Treasury or
included in any Executive Orders, (b) not
use or permit the use of the proceeds of the Loan to violate any of
the foreign asset control
regulations of OFAC or any enabling statute or Executive Order relating thereto, and (c) comply,
and cause any of its subsidiaries to comply, with all applicable Bank Secrecy Act (“BSA”) laws and
regulations, as amended.

Each of the foregoing representations and warranties: (i) has been and will be relied upon as an
inducement to MLC to make the Loan, and (ii) is continuing and shall be deemed remade by Customer
on the Closing Date and at no other time.

3.2. Financial and Other Information. Customer shall furnish or cause to be furnished to
MLC during the term of this Loan Agreement all of the following:

(a) Annual Financial Statements. Within 90 days after the close of each fiscal year of
Customer, a copy of the annual audited certified financial statements of Customer and the annual
certified financial statements of each Business Guarantor, including, in each case, in reasonable
detail, a balance sheet and statement of retained earnings as at the close of such fiscal year and
statements of profit and loss and cash flow for such fiscal year.

-4-

 

(b) Interim Financial Statements. Within 60 days after the close of each fiscal quarter of
Customer, a copy of the interim financial statements of Customer and each Business Guarantor,
signed by the Chief Financial Officer, for such fiscal quarter (including in reasonable detail both
a balance sheet as of the close of such fiscal period, and statement of profit and loss for the
applicable fiscal period).

(c) Other Information. Such other information as MLC may from time to time reasonably
request relating to Customer, any Credit Party or the Collateral.

(d) General Agreements With Respect to Financial Information. Customer agrees that except
as otherwise specified herein or otherwise agreed to in writing by MLC: (i) all annual financial
statements required to be furnished by Customer to MLC hereunder will be audited by either the
current independent accountants for Customer or other independent accountants selected by Customer
and reasonably acceptable to MLC, and (ii) all other financial statements required to be furnished
by Customer to MLC hereunder will be certified as fairly presenting the financial condition of the
Customer in all material respects by the respective chief financial officer.

3.3. Other Covenants. Customer further agrees during the term of this Loan Agreement that:

(a) Financial Records; Inspection. Each Credit Party (other than any Individual Guarantor)
will: (i) maintain at its principal place of business complete and accurate books and records, and
maintain all of its financial records in a manner consistent with the financial statements
heretofore furnished to MLC, or prepared on such other basis as may be approved in writing by MLC
or as required by law; and (ii) permit MLC or its duly authorized representatives, upon reasonable
notice and at reasonable times, to inspect its properties (both real and personal), operations,
books and records, provided that absent the occurrence and continuance of an Event of Default, MLC
shall not conduct more than one inspection in any 12 month period.

(b) Taxes. Each Credit Party will pay when due all of its respective taxes, assessments
and other governmental charges, howsoever designated, and all other liabilities and obligations,
except to the extent that any such failure to file or pay will not materially and adversely affect
either the liens and security interests of MLC hereunder or under any of the Loan Documents, the
financial condition of any Credit Party or its continued operations.

(c) Compliance With Laws and Agreements. No Credit Party will violate (i) any law,
regulation or other governmental requirement, any judgment or order of any court or governmental
agency or authority; (ii) any agreement, instrument or document which is material to its operations
or to the operation or use of any Collateral, in each case as contemplated by the Loan Documents;
or (iii) any agreement, instrument or document to which it is a party or by which it is bound, if
any such violation will materially and adversely affect either the liens and security interests of
MLC hereunder or under any of the Loan Documents, the financial condition of any Credit Party, or
its continued operations.

(d) No Use of Merrill Lynch Name. Except upon the prior consent of MLC, no Credit Party
will directly or indirectly publish, disclose or otherwise use in any advertising or promotional
material, or press release, the name, logo or any trademark of MLC, MLPF&S, Merrill Lynch and Co.,
Inc. or any of their affiliates; provided, however, MLC hereby consents to any filing with the SEC
or similar regulatory body and the disclosure of the existence and terms of this facility.

Notification By Customer. Customer shall provide MLC with prompt written notification of:
(i) any Default or Event of Default; (ii) any Material Adverse Effect in the business, financial
condition or operations of any Credit Party; (iii) any information which indicates that any
financial statements of any Credit Party fail in any material respect to present fairly the
financial condition and results of operations purported to be presented in such statements; (iv)
any threatened or pending litigation involving any Credit Party which could reasonably be expected
to have an Material Adverse Effect; (v) any casualty loss, attachment, lien, judicial process,
encumbrance or claim affecting or involving any material portion of the Collateral; and (vi) any
change in Customer’s outside accountants. Each notification by Customer pursuant hereto shall
specify the event or information causing such notification, and, to the extent applicable, shall
specify the steps being taken to rectify or remedy such event or information.

(e) Entity Organization. Each Credit Party which is an entity will (i) remain (A) validly
existing and in good standing in the state of its organization and (B) qualified to do business and
in good standing in each other state where the nature of its business or the property owned by it
make such qualification necessary and the failure to do so materially adversely affects MLC’s
interest in the Collateral or its ability to enforce the terms of the Loan Documents or exercise
any remedies thereunder or under applicable law, as reasonably determined by MLC, and (ii) maintain
all governmental permits, licenses and authorizations where the failure to do so would and the
failure to do so materially adversely affects MLC’s interest in the Collateral or its ability to
enforce the terms of the Loan Documents or exercise any remedies thereunder or under applicable
law, as reasonably determined by MLC. Customer shall give MLC not less than 30 days prior written
notice of any change in name (including any fictitious name) or chief executive office, place of
business, or as applicable, the jurisdiction of organization or principal residence.

(f) Merger, Change in Business. Except upon the prior written consent of MLC, Customer
shall not cause or permit any Credit Party to: (i) be a party to any merger or consolidation except
where Customer is the surviving entity thereof, (ii) sell, transfer or lease all or any substantial
part of its assets; (iii) engage in any material business substantially different from its business
in effect as of the date of application by Customer for credit from MLC, or cease operating any
such material business; or (iv) cause or permit any other Person to assume or succeed to any
material business or operations of such Credit Party.

(g) Liquidity. The aggregate unrestricted cash and unrestricted marketable securities
owned and controlled by Customer shall at all times exceed the lesser of (i) $5,000,000.00, or (ii)
the amount of indebtedness evidenced by the Obligations.

3.4. Collateral.

-5-

 

(a) Pledge of Collateral. To secure payment and performance of the Obligations, Customer
hereby pledges, assigns, transfers and sets over to MLC, and grants to MLC first liens and security
interests in and upon all of the Collateral, subject only to priorities afforded to Permitted
Liens.

(b) Liens. Except upon the prior written consent of MLC, Customer shall not create or
permit to exist any lien, encumbrance or security interest upon or with respect to any Collateral
now owned or hereafter acquired other than Permitted Liens.

(c) Performance of Obligations. Customer shall perform in all material respects all of its
obligations owing on account of or with respect to the Collateral; it being understood that nothing
herein, and no action or inaction by MLC, under this Loan Agreement or otherwise, shall be deemed
an assumption by MLC of any of Customer’s said obligations.

(d) Sales and Collections. Customer shall not sell, transfer or otherwise dispose of any
Collateral so long as there are any Obligations..

(e) Alterations and Maintenance. Except upon the prior written consent of MLC, Customer
shall not make or permit any material alterations to any tangible Collateral which might materially
reduce or impair its market value or utility. Customer shall at all times (i) keep the tangible
Collateral in good condition and repair, reasonable wear and tear excepted, (ii) take reasonable
precautions to protect the Collateral against loss, damage or destruction, (iii) maintain, service,
test and inspect the Collateral (A) in accordance with manufacturer’s recommendations, and so as to
maintain in full force and effect any maintenance warranties, (B) in compliance with Applicable
Law and the requirements of insurance, (C) at a standard consistent with industry practices, and
(D) in all events not less than Customer’s standard practices for similar equipment owned, operated
or leased by Customer and (iv) pay or cause to be paid all obligations arising from the repair and
maintenance of such Collateral, as well as all obligations with respect to any Location of Tangible
Collateral (e.g., all obligations under any lease, mortgage or bailment agreement), except for any
such obligations being contested by Customer in good faith by appropriate proceedings. Customer
shall permit any Person designated by MLC, during normal business hours upon reasonable notice and
at MLC’s expense to visit, inspect and survey the tangible Collateral, its condition, use and
operation, and the records maintained in connection therewith. None of MLC or any of its designees
shall have any duty to make any such inspection and shall not incur any liability or obligation by
reason of not making any such inspection. The failure of any such party to object to any condition
or procedure observed or observable in the course of an inspection hereunder shall not be deemed to
waive or modify any of the terms of this Loan Agreement with respect to such condition or
procedure.

(f) Location. Customer shall not without MLC’s prior written notification place or move
any tangible Collateral to any location other than the Location of Tangible Collateral identified
on Exhibit A. In no event shall Customer cause or permit any material tangible Collateral to be
removed from the United States without the express prior written consent of MLC. Customer will
keep its books and records at its principal office address specified in the first paragraph of this
Loan Agreement or at such other location notified to MLC on not less than 30 days’ prior notice.

(g) Insurance. Customer shall insure all of the tangible Collateral under a policy or
policies of physical damage insurance providing that losses will be payable to MLC as its interests
may appear pursuant to a Lender’s Loss Payable Endorsement and containing such other provisions as
may be reasonably required by MLC. Customer shall maintain such other insurance as may be required
by law or is customarily maintained by companies in a similar business or otherwise reasonably
required by MLC. All such insurance policies shall provide that MLC will receive not less than 10
days prior written notice of any cancellation, and shall otherwise be in form and amount and with
an insurer or insurers selected by Customer and reasonably acceptable to MLC. Customer shall
furnish MLC with a copy or certificate of each such policy or policies and, prior to any expiration
or cancellation, each renewal or replacement thereof.

(h) Forced Placement. In the event that at any time the insurance required by this Section
shall be reduced or cease to be maintained below the level required, then (without limiting the
rights of MLC hereunder in respect of the Default which arises as a result of such failure) MLC may
at its option after failure of Customer to do so, maintain the insurance required hereby in such
event. Customer shall reimburse MLC upon demand for the cost thereof with interest thereon at a
rate per annum equal to the Default Rate, but in no event shall the rate of interest exceed the
maximum rate permitted by law.

(i) Use. Customer agrees that the tangible Collateral will be used by Customer solely in
the conduct of its business and in a manner complying in all material respects with all applicable
laws and any applicable insurance policies. All tangible Collateral shall at all times remain
personal property of Customer regardless of the degree of its annexation to any real property and
shall not by reason of any installation in, or affixation to, real or personal property become a
part thereof. Unless otherwise waived by MLC, Customer shall obtain and deliver to MLC (to be
recorded at Customer’s expense) from any Person having an interest in the property where the
tangible Collateral is to be located, waivers of any lien, encumbrance or interest which such
Person might have or hereafter obtain or claim with respect to the tangible Collateral.

(j) Event of Loss. Customer shall at its expense promptly repair all repairable damage to
any tangible Collateral where such repair is economically feasible. In the event that there is an
Event of Loss and the affected Collateral had a value prior to such Event of Loss of $100,000.00 or
more, then, on or before the first to occur of (i) 90 days after the occurrence of such Event of
Loss, or (ii) 10 Business Days after the date on which either Customer or MLC shall receive any
proceeds of insurance on account of such Event of Loss, or any underwriter of insurance on such
Collateral shall advise either Customer or MLC that it disclaims liability in respect of such Event
of Loss, Customer shall, at Customer’s option, either replace the Collateral subject to such Event
of Loss with comparable Collateral free of all liens other than Permitted Liens (in which event
Customer shall be entitled to utilize the proceeds of insurance on account of such Event of Loss
for such purpose, and may retain any excess proceeds of such insurance), or permanently prepay the
Obligations by an amount equal to the actual cash value of such Collateral as determined by either
the insurance company’s payment (plus any applicable deductible) or, in absence of insurance
company payment, as reasonably determined by MLC; it being further understood that any such
permanent prepayment shall cause an immediate permanent reduction in the Loan in the amount of such
prepayment and shall not reduce the amount of any future reductions in the Loan that may be
required hereunder. Notwithstanding the foregoing, if at the time of occurrence of such Event of
Loss or any time thereafter prior to replacement or line reduction, as aforesaid, an Event of
Default shall have occurred and be continuing hereunder, then MLC may at its sole option,
exercisable at any time while such Event of Default shall be continuing, require Customer to or
prepay the Obligations, as aforesaid.

-6-

 

(k) Notice of Certain Events. Customer, upon obtaining knowledge thereof, shall give MLC
immediate notice of any attachment, lien, judicial process, encumbrance or claim affecting or
involving the Collateral, other than Permitted Liens.

(l) Indemnification. Customer shall indemnify, defend and save MLC harmless from and
against any and all claims, liabilities, losses and reasonable costs and expenses (including,
without limitation, reasonable attorneys’ fees and expenses) of any nature whatsoever which may be
asserted against or incurred by MLC arising out of or in any manner occasioned by (i) the
ownership, collection, possession, use or operation of any Collateral, or (ii) any failure by
Customer to perform any of its obligations hereunder or under the other Loan Documents; excluding,
however, from said indemnity any such claims, liabilities, etc. arising directly out of the willful
wrongful act or active gross negligence of MLC as determined in a final non-appealable judgment by
a court of competent jurisdiction. This indemnity shall survive the expiration or termination of
this Loan Agreement as to all matters arising or accruing prior to such expiration or termination.

3.5. Events of Default. The occurrence of any of the following events shall constitute an
“Event of Default” under this Loan Agreement:

(a) Failure to Pay. Customer shall fail to pay when due any amount owing by Customer to
MLC under the Note or this Loan Agreement, or shall fail to pay when due any other Obligations, and
any such failure shall continue for more than five (5) Business Days from the due date.

(b) Failure to Perform. Any Credit Party shall default in the performance or observance of
any covenant or agreement on its part to be performed or observed under this Loan Agreement, the
Note or any of the other Loan Documents (not constituting an Event of Default under any other
clause of this Section), and such default shall continue unremedied for ten (10) Business Days (i)
after written notice thereof shall have been given by MLC to Customer, or (ii) from Customer’s
receipt of any notice or knowledge of such default from any other source.

(c) Breach of Warranty. Any representation or warranty made by any Credit Party contained
in this Loan Agreement, the Note or any of the other Loan Documents shall at any time prove to have
been incorrect in any material respect when made.

(d) Default Under Other Merrill Lynch Agreement. A default or event of default by any
Credit Party shall occur under the terms of any other agreement, instrument or document with or
directly intended for the benefit of MLC, MLPF&S or any of their affiliates, and any required
notice shall have been given and required passage of time shall have elapsed, or the Agreement
shall be terminated for any reason.

(e) Bankruptcy Event. Any Bankruptcy Event shall occur.

(f) Material Adverse Effect. Any event shall occur which shall result in a Material
Adverse Effect.

(g) Default Under Other Agreements. Any event shall occur which results in any default of
any material agreement involving any Credit Party or any agreement evidencing any indebtedness of
any Credit Party of $5,000,000.00 or more the result of which default would permit or result in the
holder of such indebtedness to declare such indebtedness due prior to its original maturity.

(h) Collateral Impairment or Lapse in Insurance Coverage. The loss, theft or destruction
of any material portion of the Collateral, or any levy, attachment, seizure or confiscation of
material portion of the Collateral which is not released within ten (10) Business Days; or the
failure to maintain insurance in accordance with Section 3.4(h).

(i) Contested Obligation. (i) Any of the Loan Documents shall for any reason cease to be,
or are asserted by any Credit Party not to be a legal, valid and binding obligations of any Credit
Party, enforceable in accordance with their terms; or (ii) the validity, perfection or priority of
MLC’s first lien and security interest on any of the Collateral is contested by any Person; or
(iii) any Credit Party shall or shall attempt to repudiate, revoke, contest or dispute, in whole or
in part, such Credit Party’s obligations under any Loan Document.

(j) Judgments. A judgment shall be entered against any Credit Party in excess of
$5,000,000.00 and the judgment is not paid in full and discharged, or stayed and bonded to the
satisfaction of MLC.

(k) Change in Control. (i)Customer shall enter into any transaction of merger or
consolidation where Customer is not the surviving entity without the prior written consent of MLC;
(ii) Customer shall cease to do business as a going concern, liquidate, or dissolve; (iii) Customer
shall sell, transfer, or otherwise dispose of all or substantially all of its assets or property.

(l) Dissolution. The dissolution, or the filing for dissolution of any Credit Party.

3.6. Remedies.

-7-

 

(a) Remedies Upon Default. Upon the occurrence and during the continuance of any Event of
Default, MLC may at its sole option do any one or more or all of the following, at such time and in
such order as MLC may in its sole discretion choose:

(i) Termination. MLC may without notice terminate its obligation to extend any credit
to or for the benefit of Customer (it being understood, however, that upon the occurrence of any
Bankruptcy Event all such obligations shall automatically terminate without any action on the
part of MLC).

(ii) Acceleration. MLC may declare the principal of and interest and any premium on the
Note, and all other Obligations to be forthwith due and payable, whereupon all such amounts
shall be immediately due and payable, without presentment, demand for payment, protest and
notice of protest, notice of dishonor, notice of acceleration, notice of intent to accelerate or
other notice or formality of any kind, all of which are hereby expressly waived; provided,
however, that upon the occurrence of any Bankruptcy Event all such principal, interest, premium
and other Obligations shall automatically become due and payable without any action on the part
of MLC.

(iii) Exercise Other Rights. MLC may exercise any or all of the remedies of a secured
party under applicable law and in equity, including, but not limited to, the UCC, and any or all
of its other rights and remedies under the Loan Documents.

(iv) Possession. MLC may require Customer to make the Collateral and the records
pertaining to the Collateral available to MLC at a place designated by MLC which is reasonably
convenient to Customer, or may take possession of the Collateral and the records pertaining to
the Collateral without the use of any judicial process and without any prior notice to Customer.

(v) Sale. MLC may sell any or all of the Collateral at public or private sale upon such
terms and conditions as MLC may reasonably deem proper, whether for cash, on credit, or for
future delivery, in bulk or in lots. MLC may purchase any Collateral at any such sale free of
Customer’s right of redemption, if any, which Customer expressly waives to the extent not
prohibited by applicable law. The net proceeds of any such public or private sale and all other
amounts actually collected or received by MLC pursuant hereto, after deducting all costs and
expenses incurred at any time in the collection of the Obligations and in the protection,
collection and sale of the Collateral, will be applied to the payment of the Obligations, with
any remaining proceeds paid to Customer or whoever else may be entitled thereto, and with
Customer and each Guarantor remaining jointly and severally liable for any amount remaining
unpaid after such application.

(vi) Delivery of Cash, Checks, Etc. MLC may require Customer to forthwith upon receipt,
transmit and deliver to MLC in the form received, all cash, checks, drafts and other instruments
for the payment of money (properly endorsed, where required, so that such items may be collected
by MLC) which may be received by Customer at any time in full or partial payment of any
Collateral, and require that Customer not commingle any such items which may be so received by
Customer with any other of its funds or property but instead hold them separate and apart and in
trust for MLC until delivery is made to MLC.

(vii) Control of Collateral. MLC may otherwise take control in any lawful manner of any
cash or non-cash items of payment or proceeds of Collateral and endorse Customer’s name on any
item of payment on or proceeds of the Collateral.

(b) Set-Off. MLC shall have the further right upon the occurrence and during the
continuance of an Event of Default to set-off, appropriate and apply toward payment of any of the
Obligations, in such order of application as MLC may from time to time and at any time elect, any
cash, credit, deposits, accounts, financial assets, investment property, securities and any other
property of Customer which is in transit to or in the possession, custody or control of MLC, MLPF&S
or any agent, bailee, or affiliate of MLC or MLPF&S. Customer hereby collaterally assigns and
grants to MLC a continuing security interest in all such property as Collateral and as additional
security for the Obligations. Upon the occurrence and during the continuance of an Event of
Default, MLC shall have all rights in such property available to collateral assignees and secured
parties under all applicable laws, including, without limitation, the UCC.

(c) Power of Attorney. Effective upon the occurrence and during the continuance of an
Event of Default, Customer hereby irrevocably appoints MLC as its attorney-in-fact, with full power
of substitution, in its place and stead and in its name or in the name of MLC, to from time to time
in MLC’s sole discretion take any action and to execute any instrument which MLC may deem necessary
or advisable to accomplish the purposes of this Loan Agreement and the other Loan Documents,
including, but not limited to, to receive, endorse and collect all checks, drafts and other
instruments for the payment of money made payable to Customer included in the Collateral. The
powers of attorney granted to MLC in this Loan Agreement are coupled with an interest and are
irrevocable until the Obligations have been indefeasibly paid in full and fully satisfied and all
obligations of MLC under this Loan Agreement have been terminated.

(d) Remedies are Severable and Cumulative. All rights and remedies of MLC herein are
severable and cumulative and in addition to all other rights and remedies available in the Note,
the other Loan Documents, at law or in equity, and any one or more of such rights and remedies may
be exercised simultaneously or successively.

(e) No Marshalling. MLC shall be under no duty or obligation to (i) preserve, protect or
marshall the Collateral; (ii) preserve or protect the rights of any Credit Party or any other
Person claiming an interest in the Collateral; (iii) realize upon the Collateral in any particular
order or manner, (iv) seek repayment of any Obligations from any particular source; (v) proceed or
not proceed against any Credit Party pursuant to any guaranty or security agreement or against any
Credit Party under the Loan Documents, with or without also realizing on the Collateral; (vi)
permit any substitution or exchange of all or any part of the Collateral; or (vii) release any part
of the Collateral from the Loan Agreement or any of the other Loan Documents, whether or not such
substitution or release would leave MLC adequately secured.

-8-

 

(f) Notices. To the fullest extent permitted by applicable law, Customer hereby
irrevocably waives and releases MLC of and from any and all liabilities and penalties for failure
of MLC to comply with any statutory or other requirement imposed upon MLC relating to notices of
sale, holding of sale or reporting of any sale, and Customer waives all rights of redemption or
reinstatement from any such sale. Any notices required under applicable law shall be reasonably and
properly given to Customer if given by any of the methods provided herein at least 5 Business Days
prior to taking action. MLC shall have the right to postpone or adjourn any sale or other
disposition of Collateral at any time without giving notice of any such postponed or adjourned
date. In the event MLC seeks to take possession of any or all of the Collateral by court process,
Customer further irrevocably waives to the fullest extent permitted by law any bonds and any surety
or security relating thereto required by any statute, court rule or otherwise as an incident to
such possession, and any demand for possession prior to the commencement of any suit or action.

3.7. Miscellaneous.

(a) Non-Waiver. No failure or delay on the part of MLC in exercising any right, power or
remedy pursuant to this Loan Agreement, the Note or any of the other Loan Documents shall operate
as a waiver thereof, and no single or partial exercise of any such right, power or remedy shall
preclude any other or further exercise thereof, or the exercise of any other right, power or
remedy. Neither any waiver of any provision of this Loan Agreement, the Note or any of the other
Loan Documents, nor any consent to any departure by Customer therefrom, shall be effective unless
the same shall be in writing and signed by MLC. Any waiver of any provision of this Loan Agreement,
the Note or any of the other Loan Documents and any consent to any departure by Customer from the
terms of this Loan Agreement, the Note or any of the other Loan Documents shall be effective only
in the specific instance and for the specific purpose for which given. Except as otherwise
expressly provided herein, no notice to or demand on Customer shall in any case entitle Customer to
any other or further notice or demand in similar or other circumstances.

(b) Confidentiality. MLC agrees to keep confidential any information furnished or made
available to it by Customer pursuant to this Loan Agreement; provided that nothing herein shall
prevent MLC from disclosing such information (a) to any officer, director, employee, agent,
auditor, attorney or advisor of MLC or Merrill Lynch & Co., Inc. or any of their affiliates, (b) to
any other person if it is reasonably necessary for the administration of the credit facility
provided herein, (c) as required by any law, rule, or regulation, (d) upon the order of any court
or administrative agency, (e) upon the request or demand of any regulatory agency or authority, (f)
that is or becomes available to the public other than as a result of a disclosure by MLC prohibited
by this Loan Agreement, (g) in connection with any litigation to which MLC or any of its affiliates
may be a party with any Credit Party, (h) in connection with the sale, assignment, syndication or
transfer of any or all of MLC’s rights and interests under the Loan Documents, provided any
purchaser, assignee or transferee agrees to keep such information confidential, and (i) to the
extent necessary in connection with the exercise of any remedy under this Loan Agreement or the
Loan Documents.

(c) Communications. Delivery of an agreement, instrument or other document may, at the
discretion of MLC, be by electronic transmission. Except as required by law or otherwise provided
herein or in a writing executed by the party to be bound, all notices demands, requests,
accountings, listings, statements, advices or other communications to be given under the Loan
Documents shall be in writing, and shall be served either personally, by deposit with a reputable
overnight courier with charges prepaid, or by deposit in the United States mail by certified mail
return receipt required. Notices may be addressed to Customer as set forth at its address shown in
the preamble hereto, or to any office to which billing or account statements are sent; to MLC at
its address shown in the preamble hereto, or at such other address designated in writing by MLC.
Any such communication shall be deemed to have been given upon, in the case of personal delivery
the date of delivery, one Business Day after deposit with an overnight courier five (5) Business
Days after deposit in the United States by certified mail (return receipt required), or receipt of
electronic transmission (which shall be presumed to be three hours after the time of transmission
unless an error message is received by the sender), except that any notice of change of address
shall not be effective until actually received.

(d) Fees, Expenses and Taxes. Customer shall upon demand pay or reimburse MLC for: (i) all
UCC, recording and search fees and expenses incurred by MLC in connection with the verification,
perfection or preservation of MLC’s rights hereunder or in any Collateral or any other collateral
for the Obligations; (ii) any and all stamp, transfer, mortgage, intangible, document, filing,
recording and other taxes and fees, excluding income taxes, payable or determined to be payable in
connection with the borrowings hereunder or the execution, delivery, filing and/or recording of the
Loan Documents and any other instruments or documents provided for herein or delivered or to be
delivered hereunder or in connection herewith; and (iii) all reasonable fees and out-of-pocket
expenses (including reasonable attorneys’ fees and legal expenses) incurred by MLC in connection
with the preparation, execution, administration, collection, enforcement, protection, waiver or
amendment of this Loan Agreement, or under any of the other Loan Documents and such other
instruments or documents, and the rights and remedies of MLC thereunder and all other matters in
connection therewith. The obligations of Customer under this paragraph shall survive the expiration
or termination of this Loan Agreement and the discharge of the other Obligations.

(e) Right to Perform Obligations. If Customer shall fail to do any act or thing which it
has covenanted to do under this Loan Agreement or any of the Loan Documents, or any representation
or warranty on the part of Customer contained in this Loan Agreement or any of the Loan Documents
shall be breached, MLC may, in its sole discretion, after 5 Business Days written notice is sent to
Customer (or such lesser notice, including no notice, as is reasonable under the circumstances), do
the same or cause it to be done or remedy any such breach, and may expend its funds for such
purpose. Any and all reasonable amounts so expended by MLC shall be repayable to MLC by Customer
upon demand, with interest at the “Interest Rate” (as that item is defined in the Note) during the
period from and including the date funds are so expended by MLC to the date of repayment, and all
such amounts shall be additional Obligations. The payment or performance by MLC of any of
Customer’s obligations hereunder shall not relieve Customer of said obligations or of the
consequences of having failed to pay or perform the same, and shall not waive or be deemed a cure
of any Default.

(f) Late Charge. Any payment required to be made by Customer pursuant to this Loan
Agreement or any of the Loan Documents not paid within five (5) days of the applicable due date
shall be subject to a late charge in an amount equal to the lesser of: (i) 5% of the overdue
amount, or (ii) the maximum amount permitted by applicable law. Such late charge shall be payable
on demand.

-9-

 

(g) Further Assurances. Customer agrees to do such further acts and things and to execute
and deliver to MLC such additional agreements, instruments and documents as MLC may reasonably
require or deem advisable to effectuate the purposes of this Loan Agreement, the Note or any of the
other Loan Documents, or to establish, perfect and maintain MLC’s security interests and liens upon
the Collateral, including, but not limited to: (i) executing financing statements or amendments
thereto when and as reasonably requested by MLC; and (ii) if in the reasonable judgment of MLC it
is required by local law, causing the owners and/or mortgagees of the real property on which any
Collateral may be located to execute and deliver to MLC waivers or subordinations reasonably
satisfactory to MLC with respect to any rights in such Collateral.

(h) Binding Effect. This Loan Agreement, the Note and the other Loan Documents shall be
binding upon, and shall inure to the benefit of MLC, Customer and their respective successors and
assigns. MLC reserves the right, at any time while the Obligations remain outstanding, to sell,
assign, syndicate or otherwise transfer or dispose of any or all of MLC’s rights and interests
under the Loan Documents. MLC also reserves the right at any time to pool the Loan with one or
more other loans originated by MLC or any other Person, and to securitize or offer interests in
such pool on whatever terms and conditions MLC shall determine; provided all parties agree to the
confidentiality restrictions herein. MLC shall, acting for this purpose as an agent of Customer,
maintain at its offices a register for the recordation of the names and addresses of its
participants or assignees, and the amount and terms of its participations and assignments including
specifying any such participant’s or assignee’s entitlement to payments of principal and interest,
and any payments made, with respect to each such participation or assignment. Subject to Section
3.7(b), Customer consents to MLC releasing financial and other information regarding Credit
Parties, the Collateral and the Loan in connection with any such sale, pooling, securitization or
other offering. Customer shall not assign any of its rights or delegate any of its obligations
under this Loan Agreement, the Note or any of the other Loan Documents without the prior written
consent of MLC. Unless otherwise expressly agreed to in a writing signed by MLC, no such consent
shall in any event relieve Customer of any of its obligations under this Loan Agreement, the Note
or any of the other Loan Documents.

(i) Interpretation; Construction. (i) Captions and section and paragraph headings in this
Loan Agreement are inserted only as a matter of convenience, and shall not affect the
interpretation hereof; (ii) no provision of this Loan Agreement shall be construed against a
particular Person or in favor of another Person merely because of which Person (or its
representative) drafted or supplied the wording for such provision; and (iii) where the context
requires: (a) use of the singular or plural incorporates the other, and (b) pronouns and modifiers
in the masculine, feminine or neuter gender shall be deemed to refer to or include the other
genders.

(j) Governing Law. This Loan Agreement, the Note and, unless otherwise expressly provided
therein, each of the other Loan Documents, shall be governed in all respects by the laws of the
State of Illinois, not including its conflict of law provisions.

(k) Severability of Provisions. Whenever possible, each provision of this Loan Agreement,
the Note and the other Loan Documents shall be interpreted in such manner as to be effective and
valid under applicable law. Any provision of this Loan Agreement, the Note or any of the other Loan
Documents which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Loan Agreement, the Note and the other Loan Documents or affecting the
validity or enforceability of such provision in any other jurisdiction.

(l) Term. This Loan Agreement shall become effective when accepted by MLC at its office in
Chicago, Illinois, and subject to the terms hereof, shall continue in effect so long thereafter as
there shall be any moneys owing hereunder or under the Note, or there shall be any other
Obligations outstanding. Customer hereby waives notice of acceptance of this Loan Agreement by MLC.

(m) Exhibits. The exhibits to this Loan Agreement are hereby incorporated and made a part
hereof and are an integral part of this Loan Agreement.

(n) Counterparts. This Loan Agreement may be executed in one or more counterparts which,
when taken together, constitute one and the same agreement.

(o) Jurisdiction; Waiver. Customer acknowledges that this Loan Agreement is being accepted
by MLC in partial consideration of MLC’s right and option, in its sole discretion, to enforce the
Loan Documents in either the State of Illinois or in any other jurisdiction where Customer or any
Collateral may be located. Customer irrevocably submits itself to jurisdiction in the State of
Illinois and venue in any state or federal court in the County of Cook for such purposes, and
Customer waives any and all rights to contest said jurisdiction and venue and the convenience of
any such forum, and any and all rights to remove such action from state to federal court. Customer
further waives any rights to commence any action against MLC in any jurisdiction except in the
County of Cook and State of Illinois. Customer agrees that all such service of process shall be
made by mail or messenger directed to it in the same manner as provided for notices to Customer in
this Loan Agreement and that service so made shall be deemed to be completed upon the earlier of
actual receipt or three (3) days after the same shall have been posted to Customer or Customer’s
agent. Nothing contained herein shall affect the right of MLC to serve legal process in any other
manner permitted by law or affect the right of MLC to bring any action or proceeding against
Customer or its property in the courts of any other jurisdiction. Customer waives, to the extent
permitted by law, any bond or surety or security upon such bond which might, but for this waiver,
be required of MLC.

(p) Jury Waiver. MLC and Customer hereby each expressly waive any and all rights to a
trial by jury in any action, proceeding or counterclaim brought by either of the parties against
the other party with respect to any matter relating to, arising out of or in any way connected with
the Loan, the Obligations, this Loan Agreement, any of the other Loan Documents and/or any of the
transactions which are the subject matter of this Loan Agreement.

(q) Integration. This Loan Agreement, together with the other Loan Documents, constitutes
the entire understanding and represents the full and final agreement between the parties with
respect to the subject matter hereof, and may not be contradicted by evidence of prior written
agreements or prior,

-10-

 

contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements of the parties. Without limiting the foregoing, Customer acknowledges that: (i) no
promise or commitment has been made to it by MLC, MLPF&S or any of their respective employees,
agents or representatives to make any Loan on any terms other than as expressly set forth herein,
or to make any other loan or otherwise extend any other credit to Customer or any other party; and
(ii) except as otherwise expressly provided herein, this Loan Agreement supersedes and replaces any
and all proposals, letters of intent and approval and commitment letters from MLC to Customer, none
of which shall be considered a Loan Document. No amendment or modification of any of the Loan
Documents to which Customer is a party shall be effective unless in a writing signed by both MLC
and Customer.

(r) Survival. All representations, warranties, agreements and covenants contained in the
Loan Documents shall survive the signing and delivery of the Loan Documents, and all of the waivers
made and indemnification obligations undertaken by Customer shall survive the termination,
discharge or cancellation of the Loan Documents.

(s) Customer’s Acknowledgments. The Customer acknowledges that the Customer: (i) has had
ample opportunity to consult with counsel and such other parties as deemed advisable prior to
signing and delivering this Loan Agreement and the other Loan Documents; (ii) understands the
provisions of this Loan Agreement and the other Loan Documents, including all waivers contained
therein; and (iii) signs and delivers this Loan Agreement and the other Loan Documents freely and
voluntarily, without duress or coercion.

(t) Specific Cross-Collateralization and Cross Default. The provisions set forth in this
paragraph shall be construed as additional and supplemental and shall not in any way limit or
negate any related provisions in the Prior Loan Documents (hereafter defined) or the current
providing for cross default and cross collateralization rights for MLC. The “Collateral” as
defined in the Prior Loan Documents shall be deemed included within Collateral as defined and in
the Loan Documents and the Collateral shall be deemed included within the “Collateral” as defined
in the Prior Loan Documents, and the “Collateral” and the Collateral shall each upon an Event of
Default under either set of loan documents serve as security for the repayment of both the Loan
Documents and the Prior Loan Documents. Any Event of Default as defined in the applicable loan
documents shall be an Event of Default under the other set of loan documents. “Prior Loan
Documents” means the “Loan Documents” as defined in the Term Loan and Security Agreement dated May
21, 2004, Term Loan and Security Agreement dated July 2, 2004, Collateral Installment Note dated
May 21, 2004 , Collateral Installment Note dated July 2, 2004, Term Loan and Security Agreement
dated May 27, 2005 and Collateral Installment Note dated May 27, 2005.

(u) Counterparts; Facsimile Signatures; Other Electronic Transmissions. This Agreement
and all other Loan Documents may be executed in multiple counterparts which together shall
constitute one agreement, and any notices to be given pursuant to this Agreement, may be executed
and delivered by telecopier, facsimile or other electronic transmission (i.e. PDF format) all with
the same force and effect as if the same was a fully executed and delivered original counterpart.
The original counterparts of this Agreement and all Loan Documents shall be delivered by Customer
promptly after execution and failure to so deliver, at MLC’s option, shall be a Default, but
failure to deliver shall in no way limit or negate enforceability of any Loan Document.

-11-

 

IN WITNESS WHEREOF, this Loan Agreement has been executed as of the day and year first above
written.

PAC-WEST TELECOMM, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Signature
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Printed Name	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 
	 	 	 	 
	Accepted at Chicago, Illinois:	 	 
	 
	 	 	 	 
	Merrill Lynch Capital,
	 	 
	a division of Merrill Lynch Business Financial Services Inc.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

-12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]