Service Agreement - IXC Carrier Inc. and Diamond-Net ISP Inc.
SERVICE AGREEMENT This Agreement is made as of August 15, 1996, between IXC Carrier. Inc., a Nevada corporation ("Lessor"), 5000 Plaza on the Lake, Suite 200, Austin, Texas 78746, and Diamond-Net, I.S.P., Inc., a Missouri Corporation ("Lessee") 7777 North Bonhomme, Suite 1000, Clayton, Missouri 63105. 1. Scope and Rates. Lessor and/or its affiliates own and operate a fiber optic and digital microwave telecommunications system (the "System"). Lessor desires to lease DS-1, DS-3 or other telecommunications capacity on the System to Lessee. Lessor shall use its best efforts (considering the needs of its other customers) to provide Service for which a Marketing Service Order in the form attached hereto as Exhibit A (as such form may be amended from time to time by Lessor) has been accepted. The rates for Service are set forth in Exhibit D, unless otherwise specified in the applicable Purchase Order. The Marketing Service Order shall contain the applicable lease terms for Lessee's utilization of the System. Lessee may also order the services listed in Exhibit B, subject to availability. Lessor may lease telecommunications capacity from another carrier in order to provide the Services hereunder. 2. Payments. Lessee shall pay Lessor each month within 30 days of the date of invoice: (i) the monthly lease rate (prorated for any partial month) for each Available Circuit; and (ii) the charges for other services received. The first invoice shall be for the first two months; each invoice thereafter shall be for the following month. If any invoice is not paid when due: (i) a late charge shall accrue equal to 1-1/2% (or the maximum legal rate, if less) of the unpaid balance per month; and (ii) Lessor may suspend or terminate the Service. 3. Term. The term hereof shall continue through the end of the Circuit Lease Term which is last to expire. If Service continues thereafter, the applicable rates may be renegotiated; provided, however, that such rates shall not exceed the present rates increased by a percentage equal to the rise in the Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all Urban Consumers, U.S. City Average, Subgroup "All Items" (1982-1983=100) (the "Consumer Price Index") during the period beginning with the first full month following the date hereof and ending with the last full mouth immediately preceding the date on which the rates hereunder are to be adjusted and Service may be terminates by either parry upon 30 days' written notice. If the Consumer Price Index ceases to be published or is converted into a different standard reference base or otherwise revised, such other index as the parties shall agree upon in writing shall be substituted for the Consumer Price Index; if the parties are unable to agree as to such substituted index, such matter shall be submitted to arbitration. Lessee may terminate any Circuit upon 90 days' notice; provided that if termination occurs: (i) prior to the Activation Date, Lessee shall reimburse Lessor for all costs of the implementation of such Circuit; and (ii) on or after such date, Lessee shall pay: (A) <PAGE> all charges for Service previously rendered; and (B) the amount due through the end of the applicable Circuit Lease Term (Lessor shall try to re-lease such Circuit for such term, refunding to Lessee the amount so collected, if any). If Lessor: (i) fails to provide Service within six months of the Requested Service Date; or (ii) fails to cure a material breach hereof within 45 days of notice from Lessee, Lessee may, as its only remedy, terminate the affected Circuit. 4. Limits of Liability. Lessor shall not be liable for any direct, indirect, reliance or consequential damages, whether foreseeable or not, or for any damage to property, loss of profits, cost of replacement services, or claims of customers for service problem caused by any defect, delay in availability, or failure in the Service or by any other cause. In no event shall Lessor be liable in excess of the aggregate amount it has collected from Lessee hereunder. Lessor shall give Lessee a credit in accordance with its then-current outage policy for periods in which any Circuit loses continuity and fails to comply with applicable specifications. Such credit shall be Lessee's sole remedy with respect to such an event; provided, however, that no such credits shall be allowed and Lessor shall not be liable for any Service defect from causes outside its control, including accidents, cable cuts, fires, floods, emergencies, government regulation, wars, or acts of God. Lessor shall have no obligation to provide Lessee with any backup Circuits for Service ordered hereunder. LESSOR DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES RELATING TO SERVICE, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. LESSEE HAS NOT RELIED ON ANY REPRESENTATION NOT SET FORTH HEREIN. 5. General Terms. This Agreement shall be construed under the laws of Texas. All notices shall be in writing and shall be deemed given as of the date of delivery to the addresses set forth below. The waiver of a breach hereof shall not be construed to be a waiver of any subsequent breach. Lessor may terminate this Agreement without liability if Lessee becomes bankrupt or insolvent. Each party may refer any dispute relating hereto to arbitration in Austin, Texas under the rules of the American Arbitration Association, and in such event neither party may commence any action based on such dispute, and any action which has been commenced shall be stayed, pending the outcome of such arbitration. Each party shall pay its own costs, expenses and attorneys' fees in connection with any arbitration proceeding, unless the arbitration award in connection therewith specifies otherwise. If any term hereof is held to be invalid or unenforceable, this Agreement shall be construed without such invalid or unenforceable term. This Agreement is the entire agreement between the parties pertaining to the Circuits. This Agreement may only be modified by an instrument in writing executed by each party. Neither party may assign this Agreement without the written consent of the other party; provided, however, that a security interest in this Agreement may be granted by Lessor to its lenders so long as such lenders agree in writing to fulfill Lessor's obligations hereunder. Subject to the limitations of liability set forth in <PAGE> Section 4 above, Lessee shall not disclose to any third party any information regarding the rates hereunder. Each party (each, an "Indemnitor") shall indemnify the other party (each, an "Indemnitee") for any damage or liability incurred by the Indemnitee arising from the Indemnitor's intentional misconduct or negligence. The rates hereunder do not include any sales, use or utility taxes. Lessee shall pay to Lessor any such taxes that Lessor may be required to collect or pay. 6. Definitions. For purposes hereof: "Available" means all necessary equipment for a Circuit has been installed. "Activation Date" means the date a Circuit is first made Available to Lessee. "Circuit" means a DS-0, DS-1 or DS-3. "Circuit Lease Term" means the term of a Circuit specified in the applicable Purchase Order. "Circuit Mileage" means the length of a Circuit specified in the applicable Purchase Order. "DS-0" means a circuit complying with TR-TSY-000333 "Switched and Special Access Services - Transmission Parameter Limits and Interface Combinations" Issue 1, July 1990. "DS-1" means a circuit complying with AT&T Tech. Ref. Pub. 62411, December 1990, with Addendum 1, March 1991, and Bellcore TR-MWT-000499, Issue 5, December 1993. "DS-3" shall mean a circuit meeting the specifications set forth in AT&T Technical Reference Pub. 54014 Addendum 1, November 1992 and Bellcore TB-NWT-608499, Issue 5, December 1993. "Purchase Order" means any Lessee purchase order accepted by Lessor. "Requested Service Date" means the date Service on a Circuit is requested to commence specified in the applicable Purchase Order. "Service" means transmission service provided between North American DSX standard cross-connect panels located in Lessor's terminal locations. To confirm their agreement to be bound hereby, the parties have executed this agreement below: IXC Carrier, Inc. Diamond Net, I.S.P., Inc. 5000 Plaza on the Lake, Suite 200 7777 North Bonhomme, Suite 1000 Austin, Texas 78746-1050 Clayton, MO 63105 Attention: Contract Administration Attention: Kevin Yarbrough Telephone No.: (512) 328-1112 Telephone No.: (314) 727-5596 Facsimile No.: (512) 328-7902 Facsimile No.: (314) 727-0180 By: /s/ John R. Flemming By: /s/ Andrew Gladney -------------------------------- ----------------------------- John R. Flemming, Andrew Gladney, Executive Vice President President & CEO ------------------------------------ -------------------------------- (Please Print - Name and Title) (Please Print - Name and Title) <PAGE> LIST OF EXHIBITS Exhibit A Form of Purchase Order Exhibit B Maintenance and other Additional Services Exhibit C List of On-net Cities Exhibit D List of Rates for Service <PAGE> EXHIBIT B CUSTOMER MAINTENANCE SUPPORT IXC Carrier, Inc.'s (hereinafter referred to as IXC) standard fees for customer maintenance support services are as follows (unless set by precedence in a service contract): Maintenance services shall be defined as all work performed by IXC on equipment provided by or on behalf of the Customer, or supervision of the Customer's work within IXC's terminate facilities. Maintenance Service charges are not billed for troubles found within that portion of a circuit provided by IXC. The following billing rates apply for these services: A. * per hour (4 hour minimum - if dispatch is required) Monday through Friday during the business hours of 8:00 a.m. - 5:00 p.m. local time, exclusive of the following holidays: New Years Day President's Day Memorial Day Independence Day Labor Day Thanksgiving Day and the day after Thanksgiving Christmas Day B. * per hour (4 hour minimum) for overtime work done after business hours (defined above) and/or on holidays (defined above) and/or all day on Saturdays and Sundays. C. As requests for maintenance services are typically made via telephone, IXC must be advised, in writing as to the person(s) who are authorized to request service. It is the Customer's responsibility to keep IXC apprised of any changes to its list of representative(s). D. To request technical assistance and help under the maintenance services, a call must be made to out Network Control Center at 1-800-526-2488. This number should be used for IXC technical assistance, troubleshooting or testing of circuits, not for service impairment or outages. The person calling in must be on the authorized list in order to commit for charges for this technical assistance. If that person is not on the list, the request cannot be accommodated. 1. The Network Control Center personnel will take the call, record the caller's name and phone number along with facts concerning the assistance and support needed. The caller will then be given the number of the "Assistance Ticket." Page 1 of 4 <PAGE> 2. Upon completion of work, this "Assistance Ticket" will be given to IXC's Accounting Department, and the customer will subsequently be billed based upon the information on that ticket. A copy will be attached to the invoice. E. Except for emergencies, IXC technicians cannot be dispatched unless requests are made in accordance with the above call-out procedure. Page 2 of 4 <PAGE> ANCILLARY PRICING SCHEDULE FOR ON-NET SERVICE NON-RECURRING CHARGES DS-1 DS-3 --------------------- ---- ---- New Order Installation (On-Net) * * New Order Installation (Off-Net) * * DS-1 Ramp-Up per DS-O * * Order Change (less than 5 business days) * * Order Cancellation (less than 5 business days) * * ASR (new or disconnect) (Special Access Only) * * ASR Supplement * * Order Expedite * * Reconfiguration Same as install Same as install MONTHLY RECURRING CHARGES DS-1 DS-3 ------------------------- ---- ---- Monthly circuit charge (IXC portion) * * Cross-connect charge * * Other Interexchange Carrier to Lessor local access or bypass facility (Lessor long haul not involved) Local bypass charge * * Lessor POP to Lessor POP in same city, with no Lessor long haul attached at either Lessor POP MISCELLANEOUS RECURRING NON-RECURRING ------------- --------- ------------- M13 1 yr Term * * 2+yr Term * * 3+yr Term * * ECHO CANCELLER (per circuit end) * * SECOND END LOOP (Ex: for ADPCM) * * DEMAND MAINTENANCE */hr 8a.m.-5p.m. M-F, 4 hour minimum if dispatch is required; */hr after hours with 4 hour minimum RACK SPACE * - subject to availability SHELF SPACE */ea/mo ICB install DC POWER */amp/mo (5 amp minimum; 5 amp increments) CIF AC/DC POWER * ALL OTHER SERVICES See Note (2) (1) All of the above charges are subject to change with a 30-day notice. (2) Services not described above will be considered special handling and charges will be assessed on an individual basis. Page 3 of 4 * CONFIDENTIAL TREATMENT REQUESTED <PAGE> DSO ANCILLARY PRICING New Order Installation * Order Cancellation Prior to Turn up * Order Expedite * Reconfiguration (City Pairs the Same) * DACS Charge (Switching Only) * DS0 DACS Port Charge (Bell access at DACS) * DS1 DACS Port * Minimum Charge per DS-0 * Notes: 1. All of the above charges are subject to change with a 30 day notice. 2. Services not described above will be considered special handling and charges will be assessed on an individual basis. * CONFIDENTIAL TREATMENT REQUESTED Page 4 of 4 <PAGE> EXHIBIT C ON-NET DS-1 AND DS-3 CITIES ARIZONA DISTRICT OF COLUMBIA Flint Phoenix LATA 666 Washington, D.C. LATA 236 2001 S. Grand Traverse Phelps-Dodge Twr, Ste 1702 1828 L Street, N.W., Ste 260 (313)767 2600 N. Central (602)279 (202)833 Grand Rapids Tucson LATA 668 ILLINOIS 209 Graham, S.W. Arizona Bank Bldg. Chicago LATA 358 (616)235 33 N. Stone, Suite 1610 Prudential Building (520)792 130 E. Randolph, Suite 4001 Jackson (312)861 170 W. North Street CALIFORNIA (517)783 Bakersfield LATA 734 INDIANA 1430 Truxton Ave., Ste 730 Indianapolis LATA 336 Kalamazoo (805)327 Merchants Bank Bldg. 303 Mills St. 11 S. Meridian (616)385 Fresno LATA 728 Suite 1798/1799 4605 E. Vine (317)637 Lansing (209)486 230 South St. Southbend LATA 332 (517)482 Fresno Ter 211 West Washington St. Guarantee Savings 19th Floor Midland B1171 Fulton Mall, Ste. 1201 (219)233 1000 Jefferson (209)268 (517)631 MARYLAND Los Angeles LATA 730 Baltimore LATA 238 Pontiac One Wilshire 1220 S. Howard 324 S. Saginaw 624 S. Grand, Suite 1615 (301)752 (313)338 (213)689 MICHIGAN Royal Oak San Diego LATA 732 Ann Arbor 3100 W. 14 Mile Rd. 8933 Complex Dr. 1615 Plymouth Rd. (313)435 (619)569 (313)994 Saginaw San Francisco LATA 722 Battle Creek 315 Meredith Metropolitan Life Bldg. 175 Main Street (517)771 425 Market St, Ste 3800C (616)962 (415)543 MISSOURI Bay City Kansas City LATA 524 Sunnyvale LATA 722 100 E. Hart Bank of Kansas City 111 Uranium (517)667 1125 Grand Ave., Suite 1704 (408)739 (816) 283 Detroit LATA 340 COLORADO Book Bldg. Suite 2609 St. Louis LATA 520 Colorado Springs LATA 658 1249 Washington Blvd. 900 Walnut, Suite 220 102 S. Tejon, Suite 780 (313)961 (314)231 (719)471 Detroit NEVADA **Denver LATA 656 1860 Gratiot Ave. **Las Vegas LATA 821 Bell Building (313)259 Centel Bldg, Ste 400 931 14th Street, Ste. 622 125 S Las Vegas Blvd. (303)572 (702)388 Page 1 of 3 <PAGE> NEW JERSEY Tulsa LATA 538 Harlingen LATA 568 Newark LATA 224 Lookout Mountain 513 E. Jackson 744 Broad Street, 3rd Floor 3500 S. 26th West Avenue Matz Building (201)824 (918)584 (210)425 (918)446 NEW MEXICO Houston LATA 560 Albuquerque LATA 664 PENNSYLVANIA 293 N. Main Street 200 Lomas Blvd, N.W. Philadelphia LATA 228 (713)224 13th Floor 2401 Locust St., 2nd Floor (505)247 (215)564 Lubbock LATA 544 1220 Broadway, #1901 NEW YORK Pittsburgh LATA 234 (806)762 New York LATA 132 Oliver Building 60 Hudson St., Ste 206 535 Smithfield St., Ste 2650 McAllen LATA 568 (212)285 (412)281 200 S. 10th Street, Suite 704 (210)687 OHIO TEXAS Akron LATA 325 Abilene LATA 550 Midland LATA 542 1 Cascade Plaza, Ste 1950 1049 N. Third, Suite 500 KMID-TV Studio Main & Bowery (915)675 La Force Blvd & (216)535 Air Terminal Amarillo LATA 546 (915)561 Cincinnati LATA 922 Amarillo Petroleum Bldg. 2300 Carew Tower 203 W. 8th, Suite 607/608 San Angelo LATA 961 Suite 4701 (806)373 36 E. Twohig, 15th Floor 441 Vine St. (513)651 (915)653 Austin LATA 558 Cleveland LATA 320 621 Pleasant Valley Road San Antonio LATA 566 R.F. Keith Bldg., Suite 2117 (512)389 660 S. Santa Rosa 1621 Euclid Ave. (210)225 (216)771 Corpus Christi LATA 564 606 N. Carancahua, Ste 816 Waco LATA 556 Columbus LATA 324 Wilson Plaza 100 S. 26th Street Borden Bldg., Level 2B (512)882 (817)750 180 E. Broad St. 614(469) Dallas LATA 552 **Priced on an Individual Tower of the Americas Case Basis (ICB) Dayton LATA 328 2323 Bryan, Suite 380 1 National Bank Bldg. Suite 2220 2223 Houston St. 130 W. Second (513)461 (214)954 (214)969 Toledo LATA 326 El Paso LATA 540 319 Madison Ave., Ste 2901 El Paso National (419)242 Bank Bldg. OKLAHOMA 201 E. Main, Suite 1702 Oklahoma City LATA 536 (915)533 Liberty Tower 100 N. Broadway, Ste 3020 Fort Worth LATA 552 (405)232 WT Waggoner Blvd. 810 Houston Suite 1705 (817)870 Page 2 of 3 <PAGE> INSTALLED DS-0 CITIES AUGUST, 1996 ARIZONA NPA/NNX TEXAS NPA/NNX Phoenix 602-279 Austin 512-389 CALIFORNIA Corpus Christi 512-883 Dallas 214-741 Los Angeles 213-622 El Paso 915-533 San Diego 619-419 Fort Worth 817-777 Stockton 209-463 Harlingen 210-425 Houston 713-224 DISTRICT OF COLUMBIA San Antonio 210-222 Washington, DC 202-245 McAllen 210-632 ILLINOIS Chicago 312-861 VIRGINIA Norfolk 804-622 MARYLAND Baltimore 410-752 TOTAL DS-O CITIES 26 MICHIGAN All cities are equipped for DSO services. Birmingham 313-435 Additional cities will be added if cost MISSOURI is justified. Kansas City 816-221 St. Louis 314-231 NEW MEXICO Albuquerque 505-247 NEW YORK New York City 212-285 OHIO Dayton 513-252 OKLAHOMA Oklahoma City 405-232 Tulsa 918-582 PENNSYLVANIA Philadelphia 215-988 NPA/NNX Austin 512-389 Corpus Christi 512-883 Dallas 214-741 El Paso 915-533 Fort Worth 817-777 Harlingen 210-425 Houston 713-224 San Antonio 210-222 McAllen 210-632 Page 3 of 3 <PAGE> EXHIBIT D List of Rates for Service ------------------------- On-Net Service -------------- DS-0 Service I.C.B. DS-1 Service .1410 DS-3 Service I.C.B. Service is for a one (1) year term for On-Net. Off-Net Service --------------- DS-0 Service I.C.B. DS-1 Service I.C.B. DS-3 Service I.C.B. Service is for a one (1) year term or the term of the Underlying Carrier, whichever is greater. Page 1 of 1 <PAGE> ------------------ Req'st Svc. Date: EXHIBIT A OFFICE USE ONLY ----------------- IXC CARRIER, INC. Accepted Earlier Activation: MARKET SERVICE ORDER (MS0) Y N MSO# ------ ---------- ------------ Ckt ID: ---------------------- ------------------ PURCHASE ORDER FORM FOR CUSTOMER ORDER NO: -------------------- Pursuant to the DIGITAL SERVICE AGREEMENT by and between IXC CARRIER, INC. As LESSOR and as LESSEE, -------------------------------------------------------------------------- dated , 19 , LESSEE orders and LESSOR shall provide the following Digital Transmission Service: ---------- --- New Renew Qty Rate Term Miles --------------- -------------- Cancel Disconnect DS-3 --------------- -------------- ---------- --------- ---------- ---------------- Change Expedite Y N DS-1 --------------- ----- ------ ---------- --------- ---------- ---------------- On Net Off Net DS0 --------------- -------------- ---------- --------- ---------- ---------------- Protocol Reconfigure CIF --------------- -------------- ---------- --------- ---------- ---------------- Other Other ------------------------------------------ ---------- --------- ---------- ---------------- Customer Contact: Phone #: Fax # -------------------------------- -------------------- ------------------------- Technical Contact: Phone #: Fax # -------------------------------- -------------------- ------------------------- CITY LOCATION A: CITY LOCATION B: -------------------------------- -------------------------------------------- ------------------------------------------------------------------------------------------------------------------- Special Switched Special Switched ---------- ------------ ---------- ---------------- Bypass Y N Owner Bypass Y N Owner --- ---- ------------ ---- ----- ---------------- LESSOR TO PROVIDE: CFA: Y N LESSOR TO PROVIDE: CFA: Y N --- ---- ---- ------ LOA: Y N ASR: Y N LOA: Y N ASR: Y N --- --- --- ---- --- ---- ---- ------ CUSTOMER (LESSEE) TO PROVIDE: CUSTOMER (LESSEE) TO PROVIDE: LOA: Y N Coordinated Convert Y N LOA: Y N Coordinated Convert Y N --- --- --- --- --- ----- ------ CIF Arrangement Y N CIF Attach Y N CIF Arrangement Y N CIF Attach Y N --- --- --- --- --- ---- ------ Special Instructions Special Instructions ------------------------------ ----------------------------------------- ----------------------------------------------------- ------------------------------------------------------------ ----------------------------------------------------- ------------------------------------------------------------ MONTHLY LEASE RATE: NON RECURRING CHARGES: Monthly IXC Charge: $ Installation$ ASR: $ ---------------- ---------------- ----------------- Eqpt. Lease Charge: $ Installation$ Reconfig $ ---------------- ---------------- ----------------- Echo Canceller: $ Installation$ Expedite $ ---------------- ---------------- ----------------- CIF Racks: $ Installation$ ---------------- ---------------- CIF Power: $ Installation$ ---------------- ---------------- Other: $ Installation$ ---------------- ---------------- TOTAL: $ TOTAL OF NON RECURRING CHARGES: $ ---------------- ---------------- Notwithstanding anything in the Digital Service Agreement to the contrary, (1) a security interest in this Agreement may be granted by Lessor to any Lender and (2) Lessor may from time to time assign all its rights and obligations hereunder with respect to any Circuits to any Affiliate. Upon such assignment herein this Agreement shall be deemed to be multiple agreements, each upon the terms and conditions set forth herein by and between Lessee and such affiliate with respect to such circuit between Lessor and Lessee with respect to the circuit not so assigned. IN WITNESS WHEREOF, the parties have executed this PURCHASE ORDER on the day of 19 ------- --------- --- ------------------------------------------------------ ------------------------------------------------------- LESSOR APPROVAL/TITLE LESSEE AUTHORIZED REPRESENTATIVE/TITLE (Service Provider) (Customer) PLEASE FAX THIS DOCUMENT TO CUSTOMER SERVICE FAX # (512) 328-7810 ---------------------------------------------------------------------------------------------------------------------- For Office Use Only Version 2.0 4/11/95 ----------------------------------------------------------------------------------------------------------------------
<PAGE> AMENDMENT NO. 1 TO SERVICE AGREEMENT CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS. This Amendment No. 1 to Service Agreement (this "Amendment") is made as of October 22, 1996 (the "Amendment Effective Date") by and between IXC Carrier, Inc., a Nevada corporation ("Lessor"), and Diamond.Net, I.S.P., Inc., a Missouri corporation ("Lessee"). BACKGROUND This Amendment is made with reference to the following facts: A. Lessee and Lessor are parties to that certain Service Agreement (the "Agreement") dated as of August 15, 1996. B. The parties desire to amend the Agreement pursuant to the terms set forth below. Each capitalized term used and not elsewhere defined herein shall have the meaning set forth for it in the Agreement. TERMS OF AMENDMENT Accordingly, in consideration of the mutual promises set forth below, the parties hereto hereby agree as follows: 1. The following paragraphs are hereby added to the end of Section 1. Scope and Rates of the Agreement to read in their entirety as follows: Lessee may, at its option, reconfigure On-net DS-0, DS-1 or On-net DS-3 Circuits by disconnecting such Circuits and simultaneously ordering new On-net Circuits from Lessor's unused capacity, but only if all the following conditions are met: (i) such Circuits to be disconnected have been in service at the time of such reconfiguration for at least three months (for DS-0 and DS-1 Circuits) or six months (for DS-3 Circuits), (ii) Service capacity on each such new Circuit is available from Lessor (Lessor shall not be obligated to construct new Circuit capacity to fill any Marketing Service Order); (iii) Lessee shall pay for such reconfiguration the charge therefore set forth in Exhibit B; and (iv) the aggregate monthly invoicing hereunder for the new Circuits involved in such reconfiguration must be equal to, or greater than, the aggregate monthly invoicing for the disconnected Circuits. Lessee shall have the right to reconfigure on-net service and such on-net reconfiguration, so long as it results in an upgrade in service and revenue to Lessor, shall be reconfigured at * of the normal reconfiguration charges on the ancillary pricing exhibit. Lessor may in the future offer high-capacity services of on-net OC-3C service or larger capacity services. In the event Lessor offers 1 * CONFIDENTIAL TREATMENT REQUESTED <PAGE> such on-net services, Lessee may reconfigure existing circuits into such high-capacity services on mutually agreeable terms. Notwithstanding the foregoing paragraph, Lessee's existing DS-1 Circuit (the "Existing DS-1 Circuit") between St. Louis and Kansas City (No. DNN017903) shall be made a part of a DS-3 Circuit ordered by lessee (the "Ordered DS-3 Circuit") between St. Louis and Kansas City, Lessee shall be charged only for the Ordered DS-3 Circuit and not for the Existing DS-1 Circuit as of the date the Ordered DS-3 Circuit is activated or the Amendment Effective Date, whichever is later (the "Start Date"), and Lessee shall remain responsible for any charges incurred in connection with the Existing DS-1 Circuit prior to the Start Date. Lessee shall order each of the Circuits set forth in Phase I of Exhibit E (the "Phase 1 Circuits") on or before November 29, 1996 and each of the Circuits set forth in Phase 2 of Exhibit E (the "Phase 2 Circuits") on or before May 1, 1997. Prior to ordering the Phase 2 Circuits, Lessee may elect to replace any of the Phase 2 Circuits with Circuits originating and/or terminating in different cities (the "Replacement Phase 2 Circuits") subject to availability by Lessor; provided, however, that Lessee shall pay for the Replacement Phase 2 Circuits at the rates set forth in Exhibit D and the aggregate monthly lease rate for the Replacement Phase 2 Circuits must be equal to, or greater than, the aggregate monthly lease rate for the replaced Circuits. The monthly lease rate for each of the Phase I Circuits shall be $0 for the five month period immediately following the activation date of each Circuit in Phase I (the "Five Month Free Period") and Lessee's first invoice for the Phase I Circuits shall be for two months Service for each Phase I Circuit and be due within the 30 day period immediately following the Five Month Free Period. The monthly lease rate for the Phase 2 Circuits shall be $0 for the one month period immediately following the activation date of each Circuit in Phase 2 (the "One Month Free Period") and Lessee's first invoice for each of the Phase 2 Circuits shall be for two months Service for the Phase 2 Circuits and be due within the 30 day period immediately following the One Month Free Period. In the event Lessor fails to provide the Service within 60 days of the Requested Service Commencement Date for any Circuit, then (a) Lessee, at its option, may terminate that Service on the affected Circuit without any liability whatsoever and (b) Lessee's * Take-or-Pay Commitment (set forth below) shall be reduced by the total aggregate monthly lease rates of the Circuits which could not be supplied by Lessor within such period (the "Unsupplied Circuits") if Lessee procures the Unsupplied Circuits from another carrier and provides Lessor with a copy of an invoice from such 2 * CONFIDENTIAL TREATMENT REQUESTED <PAGE> carrier within 90 days from the Requested Service Commencement Date. Lessor shall provide Lessee with Circuit routing information for all on-net Circuits ordered hereunder for Lessee's network planning purposes as soon as such information is available. Lessee shall have a Take-or-Pay Commitment of * per month beginning July 1, 1997 and continuing 60 months thereafter (the "Take-or-Pay Commitment Period")." 2. The following sentence is hereby added to the end of Section 2. Payments of the Agreement to read in its entirety as follows: "Notwithstanding anything herein to the contrary, no termination of this Agreement or any Circuit shall affect or reduce Lessee's obligation to make the "Take-or-Pay Commitment" payments required by Section 1; other than as set forth in Section 1. Scope and Rates above." 3. The first sentence of Section 3. Term of the Agreement is hereby amended to read in its entirety as follows: "The term of this Agreement shall commence upon the date hereof and shall continue until the later of: (i) the end of the Take-or-Pay Commitment Period; and (ii) the end of the Circuit Lease Term of the Circuit ordered hereunder which is last to expire." 4. The definition of "Take-or-Pay Commitment" is hereby added to the end of Section 6. Definitions of the Agreement to read in its entirety as follows: "Take-or-Pay Commitment" shall mean, with respect to a certain period and amount, that Lessee has the obligation to pay for Service hereunder in such amount for each month during such period, whether or not such Service is used. Charges for Services other than DS-0, DS-1, DS-3, OC type services and monthly recurring ancillary services (such as installation, local loops and any other services) shall not be counted toward the Take-or-Pay Commitment." 5. The Non-Recurring Charge for New Order Installation of each On-Net DS-3 as set forth in Exhibit B of the Agreement is hereby increased from * to * and the following paragraph is hereby added to the end of Exhibit B to read in its entirety as follows: "For purposes of this Exhibit B, "Configuration" means the relative arrangement, Phases, or connection pattern of a circuit and its subcomponent parts/objects; "Reconfiguration" means any change from 3 <PAGE> the original configuration of a circuit specified in an original Marketing Service Order; "Cross Connect" means a point in a network where a circuit is connected from one facility to another by cabling between the equipment. 6. Exhibit D of the Agreement is hereby amended to read in its entirety as set forth in Exhibit D hereto. 7. Exhibit E hereto is hereby added to the Agreement as Exhibit E thereto. 8. This Amendment is effective as of the Amendment Effective Date. 9. To the extent amended hereby, this Amendment supersedes the Agreement and any prior written or oral agreement between the parties with respect to the subject matter contained in this Amendment. All other terms and conditions of the Agreement not specifically amended herein shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment. IXC CARRIER, INC. DIAMOND.NET, I.S.P., INC. By: /s/ John R. Flemming By: /s/ Andrew Gladney ------------------------------------------------- ------------------------------------------------- Name: John R. Flemming Name: Andrew Gladney ------------------------------------------------ ------------------------------------------------ Title: Executive Vice President Title: President & CEO ----------------------------------------------- ----------------------------------------------- ----------------------------------------------------- ----------------------------------------------------- Approved as to form Legal dept. 4 <PAGE> -------------------------------- Req'st Svc. Date: EXHIBIT A OFFICE USE ONLY ---------------- IXC CARRIER, INC. Accepted Earlier Activation: MARKET SERVICE ORDER (MSO) MSO# Y N ------------------- ------ ---------- -------------------------------- Ckt ID: ---------------------- PURCHASE ORDER FORM FOR CUSTOMER ORDER NO: ---------------------- Pursuant to the DIGITAL SERVICE AGREEMENT by and between IXC CARRIER, INC. As LESSOR and as LESSEE, ------------------------------------------------------------------------------------------ dated , 19 , LESSEE orders and LESSOR shall provide the following Digital Transmission Service: ------------ -- New Renew Qty Rate Term Miles --------------- -------------- Cancel Disconnect DS-3 --------------- -------------- ---------- --------- ---------- ---------------- Change Expedite Y N DS-1 --------------- ----- ------ ---------- --------- ---------- ---------------- On Net Off Net DS0 --------------- -------------- ---------- --------- ---------- ---------------- Protocol Reconfigure CIF --------------- -------------- ---------- --------- ---------- ---------------- Other Other ------------------------------------------ ---------- --------- ---------- ---------------- Customer Contact: Phone #: Fax # --------------------------------- ---------------------- ---------------------- Technical Contact: Phone #: Fax # --------------------------------- ---------------------- ---------------------- CITY LOCATION A: CITY LOCATION B: --------------------------------- -------------------------------------------- ------------------------------------------------------------------------------------------------------------------- Special Switched Special Switched ---------- ------------ ---------- ---------------- Bypass Y N Owner Bypass Y N Owner --- ---- ----------------- ---- ----- -------------------- LESSOR TO PROVIDE: CFA: Y N LESSOR TO PROVIDE: CFA: Y N ---- ----- ----- ------ LOA: Y N ASR: Y N LOA: Y N ASR: Y N ---- ---- ---- ----- ---- ---- ---- ------ CUSTOMER (LESSEE) TO PROVIDE: CUSTOMER (LESSEE) TO PROVIDE: LOA: Y N Coordinated Convert Y N LOA: Y N Coordinated Convert Y N ---- ---- --- --- --- --- ---- ------ CIF Arrangement Y N CIF Attach Y N CIF Arrangement Y N CIF Attach Y N --- --- --- --- --- --- ---- ------ Special Instructions ` Special Instructions ------------------------------ ------------------------------ MONTHLY LEASE RATE: NON RECURRING CHARGES: Monthly IXC Charge: $ Installation $ ASR: $ ---------------- ---------------- ----------------- Eqpt. Lease Charge: $ Installation $ Reconfig $ ---------------- ---------------- ----------------- Echo Canceller: $ Installation $ Expedite $ ---------------- ---------------- ----------------- CIF Racks: $ Installation $ ---------------- ---------------- CIF Power: $ Installation $ ---------------- ---------------- Other: $ Installation $ ---------------- ---------------- TOTAL: $ TOTAL OF NON RECURRING CHARGES: $ ---------------- ----------------- Notwithstanding anything in the Digital Service Agreement to the contrary, (1) a security interest in this Agreement may be granted by Lessor to any Lender and (2) Lessor may from time to time assign all its rights and obligations hereunder with respect to any Circuits to any Affiliate. Upon such assignment herein this Agreement shall be deemed to be multiple agreements, each upon the terms and conditions set forth herein by and between Lessee and such affiliate with respect to such circuit between Lessor and Lessee with respect to the circuit not so assigned. IN WITNESS WHEREOF, the parties have executed this PURCHASE ORDER on the day of 19 ----- --------- -- ------------------------------------------------ ------------------------------------------------------------------ LESSOR APPROVAL/TITLE LESSEE AUTHORIZED REPRESENTATIVE/TITLE (Service Provider) (Customer) PLEASE FAX THIS DOCUMENT TO CUSTOMER SERVICE FAX # (512) 328-7810 ---------------------------------------------------------------------------------------------------------------------- For Office Use Only Version 2.0 4/11/95 ---------------------------------------------------------------------------------------------------------------------- <PAGE> CUSTOMER MAINTENANCE SUPPORT IXC Communications, Inc.'s (hereinafter referred to as IXC) standard fees for customer maintenance support services are as follows (unless set by precedence in a service contract): Maintenance services shall be defined as all work performed by IXC on equipment provided by or on behalf of the Customer, or supervision of the Customer's work within IXC's terminate facilities. Maintenance Service charges are not billed for troubles found within that portion of a circuit provided by IXC. The following billing rates apply for these services: A. * per hour (4 hour minimum - if dispatch is required) Monday through Friday during the business hours of 8:00 a.m. - 5:00 p.m. local time, exclusive of the following holidays: New Years Day President's Day Memorial Day Independence Day Labor Day Thanksgiving Day and the day after Thanksgiving Christmas Day B. * per hour (4 hour minimum) for overtime work done after business hours (defined above) and/or on holidays (defined above) and/or all day on Saturdays and Sundays. C. As requests for maintenance services are typically made via telephone, IXC must be advised, in writing as to the person(s) who are authorized to request service. It is the Customer's responsibility to keep IXC apprised of any changes to its list of representative(s). D. To request technical assistance and help under the maintenance services, a call must be made to our Network Control Center at 1-800-526-2488. This number should be used for IXC technical assistance, troubleshooting or testing of circuits, not for service impairment or outages. The person calling in must be on the authorized list in order to commit for charges for this technical assistance. If that person is not on the list, the request cannot be accommodated. 1. The Network Control Center personnel will take the call, record the caller's name and phone number along with facts concerning the assistance and support needed. The caller will then be given the number of the "Assistance Ticket." Page 1 of 3 * CONFIDENTIAL TREATMENT REQUESTED <PAGE> 2. Upon completion of work, this "Assistance Ticket" will be given to IXC's Accounting Department, and the customer will subsequently be billed based upon the information on that ticket. A copy will be attached to the invoice. E. Except for emergencies, IXC technicians cannot be dispatched unless requests are made in accordance with the above call-out procedure. Page 2 of 3 <PAGE> EXHIBIT E DIAMONDNET DS3 CIRCUITS Rate Section --------------------------------------------------------------------------------------------- V&H Banded City A City B Availability Miles $250k Rate Monthly Installation ----------------------------------------------------------------------------------------------------- P St. Louis Kansas City Normal 208 * * $2,000 H Chicago Detroit Normal 207 * * $2,000 A Detroit Pittsburgh Normal 206 * * $2,000 S Pittsburgh New York Normal 318 * * $2,000 E New York Philadelphia Normal 34 * * $2,000 Philadelphia Washington, DC Normal 124 * * $2,000 1 Washington, DC Atlanta Normal 541 * * $2,000 Atlanta Houston Normal 702 * * $2,000 Houston Austin Normal 144 * * $2,000 Dallas Phoenix 12/31/96 Note** 888 * * $2,000 Phoenix Los Angeles 2/28/97 Note** 359 * * $2,000 Total * Rate Section Billing Summary ----------------------------------------------------------------------------------------------------- Month Month 7 City A City B Month 1 Month 2 Month 3 Month 4 Month 5 6 thru 65 ------------------------------------------------------------------------------------------------------------- P St. Louis Kansas City H Chicago Detroit A Detroit Pittsburgh S Pittsburgh New York E New York Philadelphia Philadelphia Washington, DC 1 Washington, DC Atlanta Atlanta Houston Houston Austin Dallas Phoenix Phoenix Los Angeles Total * * * * * * * Note: Above rates under Phase 1 offer are provided with the following terms and conditions. o Total contract term of 65 months for each circuit provided. ------------------------------------------- o Billing during the first five months is *. Five Months of Billing * o Billing from 5th month forward is Monthly recurring plus monthly 60 Months Amortize * amortized amount of first five months. ------------------------------------------- o All circuits of Phase 1 must be ordered as a package. o Normal Availability is approximately 30 days after receipt of firm order. ** If the availability of the Dallas-Phoenix or the Phoenix-Los Angeles circuit is unsatisfactory, they can be deleted from this Phase without penalty. ----------------------------------------------------------------------------------------------------------------------------------- P Los Angeles Santa Clara Normal 313 * * $2,000 H Santa Clara San Francisco Normal 38 * * $2,000 A San Francisco Salt Lake Normal 598 * * $2,000 S Salt Lake Denver Normal 370 * * $2,000 E Denver Kansas City Normal 558 * * $2,000 Atlanta Miami Normal 600 * * $2,000 2 Chicago New York Normal 712 * * $2,000 Total * --------------------------------------- P Los Angeles Santa Clara H Santa Clara San Francisco A San Francisco Salt Lake S Salt Lake Denver E Denver Kansas City Atlanta Miami 2 Chicago New York Total * * * * * * * Note: Above rates under Phase 2 offer are provided with the following terms and conditions: o Total contract term of 81 months for each circuit provided. ---------------------- o All circuits of Phase 2 must be ordered as a package. One Month of Billing * o All circuits of Phase 1 must be ordered to quantity for Phase 2 circuits. 60 Months Amortize * o Billing during first month is *. ---------------------- o Billing from 2nd month forward is Monthly recurring plus amortized amount of first month. o Normal Availability is approximately 30 days after receipt of firm order. ----------------------------------------------------------------------------------------------------------------------------------- * CONFIDENTIAL TREATMENT REQUESTED Page 3 of 3 <PAGE> EXHIBIT D List of Rates for Service ------------------------- DS-0 Service * DS-1 Service * DS-3 Service Term Miles Rate per DS-0 Mile ---- ----- ------------------ ON-NET 0 - 250 * PHASE 1 65 months 251 - 500 * OFF-NET 501 - 1,000 * PHASE 2 61 months 1,000+ * * CONFIDENTIAL TREATMENT REQUESTED <PAGE> INSTALLED DS-0 CITIES OCTOBER, 1996 ARIZONA NPA/NNX TEXAS NPA/NNX Phoenix 602-279 Austin 512-389 Corpus Christi 512-883 CALIFORNIA Dallas 214-741 Los Angeles 213-622 El Paso 915-533 San Diego 619-419 Fort Worth 817-777 Stockton 209-463 Harlingen 210-425 Houston 713-224 DISTRICT OF COLUMBIA San Antonio 210-222 Washington, DC 202-245 McAllen 210-632 ILLINOIS VIRGINIA Chicago 312-861 Norfolk 804-622 MARYLAND TOTAL DS-0 CITIES 26 Baltimore 410-752 All cities are equipped for DSO services. MICHIGAN Birmingham 313-435 Additional cities will be added if cost is justified. MISSOURI Kansas City 816-221 St. Louis 314-231 NEW MEXICO Albuquerque 505-247 NEW YORK New York City 212-285 OHIO Dayton 513-252 OKLAHOMA Oklahoma City 405-232 Tulsa 918-582 PENNSYLVANIA Philadelphia 215-988 <PAGE> EXHIBIT C ON-NET DS-1 AND DS-3 CITIES ARIZONA DISTRICT OF COLUMBIA Flint Phoenix LATA 666 Washington, D.C. LATA 236 2001 S. Grand Traverse Phelps-Dodge Twr, Ste 1702 1828 L Street, N.W., Ste 260 (313)767 2600 N. Central (602)279 (202)833 Grand Rapids Tucson LATA 668 ILLINOIS 209 Graham, S.W. Arizona Bank Bldg. Chicago LATA 358 (616)235 33 N. Stone, Suite 1610 Prudential Building (520)792 130 E. Randolph, Suite 4001 Jackson (312)861 170 W. North Street CALIFORNIA (517)783 Bakersfield LATA 734 INDIANA 1430 Truxton Ave., Ste 730 Indianapolis LATA 336 Kalamazoo (805)327 Merchants Bank Bldg. 303 Mills St. 11 S. Meridian (616)385 Fresno LATA 728 Suite 1798/1799 4605 E. Vine (317)637 Lansing (209)486 230 South St. Southbend LATA 332 (517)482 Fresno Ter 211 West Washington St. Guarantee Savings 19th Floor Midland B1171 Fulton Mall, Ste. 1201 (219)233 1000 Jefferson (209)268 (517)631 MARYLAND Los Angeles LATA 730 Baltimore LATA 238 Pontiac One Wilshire 1220 S. Howard 324 S. Saginaw 624 S. Grand, Suite 1615 (301)752 (313)338 (213)689 MICHIGAN Royal Oak San Diego LATA 732 Ann Arbor 3100 W. 14 Mile Rd. 8933 Complex Dr. 1615 Plymouth Rd. (313)435 (619)569 (313)994 Saginaw San Francisco LATA 722 Battle Creek 315 Meredith Metropolitan Life Bldg. 175 Main Street (517)771 425 Market St, Ste 3800C (616)962 (415)543 MISSOURI Bay City Kansas City LATA 524 Sunnyvale LATA 722 100 E. Hart Bank of Kansas City 111 Uranium (517)667 1125 Grand Ave., Suite 1704 (408)739 (816) 283 Detroit LATA 340 COLORADO Book Bldg. Suite 2609 St. Louis LATA 520 Colorado Springs LATA 658 1249 Washington Blvd. 900 Walnut, Suite 220 102 S. Tejon, Suite 780 (313)961 (314)231 (719)471 Detroit NEVADA **Denver LATA 656 1860 Gratiot Ave. **Las Vegas LATA 821 Bell Building (313)259 Centel Bldg, Ste 400 931 14th Street, Ste. 622 125 S Las Vegas Blvd. (303)572 (702)388 <PAGE> NEW JERSEY Tulsa LATA 538 Harlingen LATA 568 Newark LATA 224 Lookout Mountain 513 E. Jackson 744 Broad Street, 3rd Floor 3500 S. 26th West Avenue Matz Building (201)824 (918)584 (210)425 (918)446 NEW MEXICO Houston LATA 560 Albuquerque LATA 664 PENNSYLVANIA 293 N. Main Street 200 Lomas Blvd, N.W. Philadelphia LATA 228 (713)224 13th Floor 2401 Locust St., 2nd Floor (505)247 (215)564 Lubbock LATA 544 1220 Broadway, #1901 NEW YORK Pittsburgh LATA 234 (806)762 New York LATA 132 Oliver Building 60 Hudson St., Ste 206 535 Smithfield St., Ste 2650 McAllen LATA 568 (212)285 (412)281 200 S. 10th Street, Suite 704 (210)687 OHIO TEXAS Akron LATA 325 Abilene LATA 550 Midland LATA 542 1 Cascade Plaza, Ste 1950 1049 N. Third, Suite 500 KMID-TV Studio Main & Bowery (915)675 La Force Blvd & (216)535 Air Terminal Amarillo LATA 546 (915)561 Cincinnati LATA 922 Amarillo Petroleum Bldg. 2300 Carew Tower 203 W. 8th, Suite 607/608 San Angelo LATA 961 Suite 4701 (806)373 36 E. Twohig, 15th Floor 441 Vine St. (513)651 (915)653 Austin LATA 558 Cleveland LATA 320 621 Pleasant Valley Road San Antonio LATA 566 R.F. Keith Bldg., Suite 2117 (512)389 660 S. Santa Rosa 1621 Euclid Ave. (210)225 (216)771 Corpus Christi LATA 564 606 N. Carancahua, Ste 816 Waco LATA 556 Columbus LATA 324 Wilson Plaza 100 S. 26th Street Borden Bldg., Level 2B (512)882 (817)750 180 E. Broad St. 614(469) Dallas LATA 552 **Priced on an Individual Case Basis (ICB) Tower of the Americas Dayton LATA 328 2323 Bryan, Suite 380 1 National Bank Bldg. Suite 2220 2223 Houston St. 130 W. Second (513)461 (214)954 (214)969 Toledo LATA 326 El Paso LATA 540 319 Madison Ave., Ste 2901 El Paso National (419)242 Bank Bldg. 201 E. Main, Suite 1702 OKLAHOMA (915)533 Oklahoma City LATA 536 Liberty Tower Fort Worth LATA 552 100 N. Broadway, Ste 3020 WT Waggoner Blvd. (405)232 810 Houston, Suite 1705 (817)870 <PAGE> ANCILLARY PRICING SCHEDULE FOR ON-NET SERVICE NON-RECURRING CHARGES DS-1 DS-3 --------------------- ---- ---- New Order Installation (On-Net) * * New Order Installation (Off-Net) * * DS-1 Ramp-Up per DS-O * * Order Change (less than 5 business days) * * Order Cancellation (less than 5 business days) * * ASR (new or disconnect) (Special Access Only) * * ASR Supplement * * Order Expedite * * Reconfiguration Same as install Same as install MONTHLY RECURRING CHARGES DS-1 DS-3 ------------------------- ---- ---- Monthly circuit charge (IXC portion) * * Cross-connect charge * * Other Interexchange Carrier to Lessor local access or bypass facility (Lessor long haul not involved) Local bypass charge * * Lessor POP to Lessor POP in same city, with no Lessor long haul attached at either Lessor POP. MISCELLANEOUS RECURRING NON-RECURRING ------------- --------- ------------- M13 1 yr Term * * 2+yr Term * * 3+yr Term * * ECHO CANCELLER (per circuit end) * * SECOND END LOOP (Ex: for ADPCM) * * DEMAND MAINTENANCE * /hr 8a.m.-5p.m. M-F, 4 hour minimum if dispatch is required; * /hr after hours with 4 hour minimum RACK SPACE * - subject to availability SHELF SPACE * /ea/mo ICB install DC POWER * /amp/mo (5 amp minimum; 5 amp increments) CIF AC/DC POWER * ALL OTHER SERVICES See Note (2) (1) All of the above charges are subject to change with a 30-day notice. (2) Services not described above will be considered special handling and charges will be assessed on an individual basis. * CONFIDENTIAL TREATMENT REQUESTED