AMENDMENT NUMBER THREE
TO THE GENERAL AGREEMENT AMONG
KMC TELECOM INC., KMC TELECOM II, INC.,
KMC TELECOM III, INC., KMC TELECOM OF VIRGINIA, INC.,
KMC TELECOM LEASING I LLC, KMC TELECOM LEASING II LLC,
KMC LEASING III LLC AND LUCENT TECHNOLOGIES INC.
This Amendment Number Three (hereinafter this "Amendment Three") is
made effective as of November 15, 1999, by and among KMC Telecom Inc., a
Delaware corporation, KMC Telecom II, Inc., a Delaware corporation, KMC Telecom
III, Inc., a Delaware corporation, KMC Telecom of Virginia, Inc., a Virginia
public service company, KMC Telecom Leasing I LLC, a Delaware limited liability
company, KMC Telecom Leasing II LLC, a Delaware limited liability company, and
KMC Telecom Leasing III LLC, a Delaware limited liability company, each with
offices located at 0000 Xxxxx 000, Xxxxx 000, Xxxxxxxxxx, Xxx Xxxxxx 00000
(hereinafter collectively referred to as "Customer"), and Lucent Technologies
Inc., a Delaware corporation, acting through its Global Service Providers Group,
with offices located at 000 Xxxxxxxx Xxxxxx, Xxxxxx Xxxx, Xxx Xxxxxx 00000
(hereinafter "Seller").
WHEREAS, Customer and Seller previously entered into that certain
General Agreement (Contract Number LNM97O313MP), effective March 6, 1997, as
modified and amended by Amendment Number One (Contract Number LNM970922MP),
effective as of October 15, 1997 and Amendment Number Two, effective December
22, 1998 (as so amended, the "General Agreement"), setting forth the terms and
conditions pursuant to which Seller agreed to supply and Customer agreed to
procure certain of Seller's Products, Licensed Materials and Services (as such
terms are defined therein); and
1
WHEREAS, Customer and Seller desire to amend and modify the
General Agreement as set forth herein;
NOW THEREFORE, in consideration of the mutual promises hereinafter
set forth and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:
1. SCOPE OF GENERAL AGREEMENT
The definition of "Customer" contained in the General Agreement is
hereby amended to additionally include KMC Telecom IV, Inc., a Delaware
corporation ("KMC IV") and KMC Telecom Leasing IV LLC, a Delaware limited
liability company ("KMC Leasing IV"); it being the intent and understanding
among the parties that KMC IV and KMC Leasing IV shall be authorized to procure
Products Licensed Materials and Services from Seller under and pursuant to the
terms and conditions of the General Agreement.
FINANCING
Customer's obligations under this Amendment are contingent on
Seller providing financing subject to terms and conditions to be mutually
agreed.
PURCHASE COMMITMENT AND FINANCIAL CONSIDERATIONS
In consideration for the discounts, allowances and incentives set
forth in Appendix A of the General Agreement (as modified hereby), Customer
agrees to procure directly and exclusively from Seller, consistent with the
provisions of Section 2 above, Seller's Products and related Licensed
Materials and Services which are available and may become available during
the Term, in each case meeting the Customer's technical requirements for
conversion of Customer's existing Tier I, II, III and IV cities to packet
technology and/or growth to the existing XXX technology, and for KMC IV's and
KMC Leasing IV's nine (9) additional Tier III cities and ninety-eight (98)
2
additional Tier IV cities, so long as at all times the purchase price
therefor (taking into account all of the terms and conditions of the
competitive offer) is competitive with the purchase price generally offered
by any other third-party vendor of the particular Product, Licensed Material
or Service in question in the United States.
MODIFICATIONS TO APPENDIX A
The provisions of Appendix A of the General Agreement shall be
revised in the following respects:
The table entitled "Discount Schedule for 5ESS(R)-2000 Switch Products"
in Section A-1.7 of Appendix A and the paragraph below the table are
replaced with the following:
--------------------------------------------------------------------------------
INITIAL PERIPHERAL
PRODUCT TYPE SWITCH DISCOUNT LARGE GROWTH DISCOUNT GROWTH DISCOUNT
--------------------------------------------------------------------------------
5ESS Switch 83% 77% 25%
--------------------------------------------------------------------------------
5ESS CDX Switch 83% 77% 25%
--------------------------------------------------------------------------------
5ESS VCDX Switch 83% 77% 25%
--------------------------------------------------------------------------------
The parties acknowledge that the above discounts were effective October 1, 1999.
Large Growth is defined as the addition of seven (7) or more STSX-1 cards. Any
other growth shall be considered Peripheral Growth. Dedicated hardware and
Software for PRIs only shall receive a seventy-seven percent (77%) discount.
The following products shall be added to the table in Section A-1.22,
"Pricing Plan for Data Networking Products" (this Section was added
in Amendment Two). Unless otherwise specified in writing by Lucent,
the Warranty Periods for Data Networking Products are twelve (12)
months for the hardware and ninety (90) days for the Software.
--------------------------------------------------------------------------
DATA NETWORKING PRODUCTS DISCOUNT
--------------------------------------------------------------------------
MAX TNT(TM) WAN Access Switch 30%
--------------------------------------------------------------------------
PacketStar(TM)PSAX 2300 Access Concentrator 45%
--------------------------------------------------------------------------
GX 550(TM)Smart Core ATM Switch 35%
--------------------------------------------------------------------------
Stinger(TM) DSL Access Concentrator 35%
--------------------------------------------------------------------------
Copper Mountain CopperEdge(TM) 200* 32%
--------------------------------------------------------------------------
Copper Mountain CopperEdge(TM) 150* 32%
--------------------------------------------------------------------------
PacketStar(TM) PSAX 50 Broadband Service Unit 35%
--------------------------------------------------------------------------
3
--------------------------------------------------------------------------
DATA NETWORKING PRODUCTS DISCOUNT
--------------------------------------------------------------------------
PacketStar(TM) PSAX 100 Broadband Service Unit 35%
--------------------------------------------------------------------------
PacketStar(TM) PSAX 600 Broadband Service Concentrator 35%
--------------------------------------------------------------------------
Cajun(TM) 330R Stackable Switching System 35%
--------------------------------------------------------------------------
Cajun(TM) 550R Stackable Switching System 35%
--------------------------------------------------------------------------
ConnectStar(TM) Interworking Call Router (formerly 35%
Broadband Interworking Connection Router (BICR))
--------------------------------------------------------------------------
* The Warranty Period for these Products is twelve (12) months.
The following Access Products shall be added tothe table entitled
"Transmission Systems Products Discount Schedule" in Section A-1.15
(this table was replaced in Amendment Two).
---------------------------------------------------------------------------
ACCESS PRODUCTS DISCOUNT
---------------------------------------------------------------------------
CopperCom Gateway(TM) * 19%
---------------------------------------------------------------------------
CopperCom MXR(TM) * 19%
---------------------------------------------------------------------------
VINA ConnectReach * 50%
---------------------------------------------------------------------------
VINA ConnectReach Plus * 40%
---------------------------------------------------------------------------
7 R/E(TM) Connection Gateway (previously PacketStar(TM) 50%
Connection Gateway (PCG))**
---------------------------------------------------------------------------
* The Warranty Period for these Products is twelve (12) months.
** The Warranty Periods for the 7 R/E Connection Gateway are twelve (12) months
for the hardware and eighteen (18) months for the Software.
The following new Section A-1.25 is hereby added to Appendix A:
A-1.25 PRICING PLAN FOR OPTICAL NETWORKING PRODUCTS
In consideration for the Customer purchase commitment set forth in Section 3
of this Amendment Three, Seller will provide the discounts set forth below
for all purchases of the Optical Networking Product(s) described therein
which are made by Customer during the Term. This table of Optical Networking
Products may be expanded or amended from time to time by mutual agreement of the
parties.
4
---------------------------------------------------------------------------
OPTICAL NETWORKING PRODUCTS DISCOUNT
---------------------------------------------------------------------------
WaveStar(TM) TDM 2.5G 50%
---------------------------------------------------------------------------
The following new Section A-1.26 is hereby added to Appendix A:
A-1.26 PRICING PLAN FOR 7R/E(TM) PACKET SOLUTIONS
Seller will provide firm price quotations to Customer for its 7R/E(TM) Packet
Solutions purchases. To constitute a 7R/E Packet Solution it must contain at
least a minimum of one unit each of a Call Feature Server, One-Link Manager, and
Packet Gateway purchased and installed at one time (it also may contain more
than one unit of each of these components) in addition to other 7R/E hardware
and Software elements (hereinafter referred to as "7R/E Packet Solution"). A
7R/E Packet Solution does not include the 5ESS(R) Switch or circuit switching
network elements that may interface with the 7R/E Packet Solution products. List
Prices are not yet finalized for 7R/E components. Seller commits to a minimum
twenty percent (20%) price savings for a 7R/E configuration utilizing pure
packet access when compared to a comparable 5ESS TDM configuration. Access
vehicles (e.g., RLAGs, IADs, etc.) are not included in the 7R/E pricing. The
Warranty Period for 7R/E hardware (whether or not the hardware is part of a 7R/E
Packet Solution) is twelve (12) months. The Warranty Period for Software
licensed with a new 7R/E Packet Solution installation (all three elements set
forth above required to constitute a Packet Solution must be installed at the
same time for this twelve (12) month Software warranty to apply) is twelve (12)
months. The Warranty Period for any other 7R/E Software including, but not
limited to, upgrades or updates to the initial Software or new releases of
Software is three (3) months.
ADDITIONAL CONSIDERATIONS
At Customer's request, Seller is providing Customer with a copy of its schedule
of anticipated release dates for certain of its Products. This Schedule is
attached hereto as Exhibit B. If there is a slip in the availability date that
impacts Customer's deployment schedule, Seller will, at Seller's expense, either
5
(a) provide Customer with an acceptable substitute and change it out to the
required Product when available, or (b) purchase on Customer's behalf an
acceptable non-Lucent substitute and change it out to the required Product when
available. In the event Seller purchases non-Lucent Products in accordance with
Subparagraph (b), said purchases will be treated as a Lucent Product for the
purposes of the purchase commitment and will be subject to the terms and
conditions of the financing agreement. Additionally, Seller will provide to
Customer, concurrently with the signing of this Amendment, a list of the
Products currently being purchased by Customer from Seller. This list will
include a description of the product, comcode, current list price and the
current discounted price. Lastly, at Customer's request, attached hereto as
Exhibit C is a summary that compares the older city pricing and the planned city
pricing, showing the expected savings by location.
ENTIRE AGREEMENT
Except as specifically modified, amended or supplemented herein, all terms and
conditions of the General Agreement shall remain in full force and effect. The
terms and conditions contained in this Amendment Three and those nonconflicting
terms and conditions of the General Agreement supersede all prior oral and
written understandings among the parties and shall constitute the entire
agreement among the parties with respect to the subject matter herein. This
Amendment Three shall not be modified or amended except by a writing signed by
an authorized representative of each of the parties.
6
IN WITNESS WHEREOF, the parties have caused this Amendment Three to be executed
by their duly authorized representatives on the date(s) indicated.
KMC TELECOM INC. KMC TELECOM LEASING I LLC
By KMC Telecom Inc., as Sole Member
By: /s/ By: /s/
------------------------------ ------------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxx
---------------------- ----------------------------
Title: President Title: President
--------------------------- ---------------------------------
Date: Date:
---------------------------- ----------------------------------
KMC TELECOM II, INC. KMC TELECOM LEASING II LLC
By: KMC Telecom II, Inc., as Sole
Member
By: /s/ By: /s/
------------------------------ ------------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxx
---------------------- ----------------------------
Title: President Title: President
--------------------------- ---------------------------------
Date: Date:
---------------------------- ----------------------------------
KMC TELECOM III, INC. KMC TELECOM LEASING III LLC
By KMC Telecom III, Inc., as Sole
Member
By: /s/ By: /s/
------------------------------ ------------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxx
---------------------- ----------------------------
Title: President Title: President
--------------------------- ---------------------------------
Date: Date:
---------------------------- ----------------------------------
7
KMC TELECOM IV, INC. KMC TELECOM LEASING IV LLC
By KMC Telecom IV, Inc., as Sole
Member
By: /s/ By: /s/
------------------------------ ------------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxx
---------------------- ----------------------------
Title: President Title: President
--------------------------- ---------------------------------
Date: Date:
---------------------------- ----------------------------------
By: By:
KMC TELECOM OF VIRGINIA, INC. LUCENT TECHNOLOGIES INC.
By: /s/ By: /s/
------------------------------ ------------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxx Typed Name: Xxxx Xxxxxxxx
---------------------- ----------------------------
Title: President Title:
--------------------------- ---------------------------------
Date: Date:
---------------------------- ----------------------------------
8
EXHIBIT A
Financing Term Sheet
A copy of the Financing Term Sheet
shall be placed behind this page
9
EXHIBIT B
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
WAVESTAR TDM 2.5G
-------------------------------------------------------------------------------
R. 1.0 4/99
-------------------------------------------------------------------------------
R. 2.0 6/99 9/99
-------------------------------------------------------------------------------
R. 3.0 w/UPSR Ring Termination 12/99 3/00
-------------------------------------------------------------------------------
R. 4.0 6/00 9/00
-------------------------------------------------------------------------------
R. 5.0 3/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR TDM 10G 2-FIBER
-------------------------------------------------------------------------------
R. 1.0 12/99 3/00
-------------------------------------------------------------------------------
R. 2.0 9/00
-------------------------------------------------------------------------------
R. 3.0 3/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR TDM 10G (OC-192 4F)
-------------------------------------------------------------------------------
R. 1.0 6/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR OLS 40G/80G
-------------------------------------------------------------------------------
R. 3.3 10/99
-------------------------------------------------------------------------------
R. 6.0 9/15/00
-------------------------------------------------------------------------------
R. 7.0 3/15/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR OLS 400G
-------------------------------------------------------------------------------
R. 2.0 9/30/99
-------------------------------------------------------------------------------
R. 3.0 3/31/00
-------------------------------------------------------------------------------
R. 4.0 12/15/00
-------------------------------------------------------------------------------
R. 5.0 9/15/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR ISTN
-------------------------------------------------------------------------------
R. 1.0 12/99 6/00
-------------------------------------------------------------------------------
R. 2.0 6/00 12/00
-------------------------------------------------------------------------------
R. 3.0 3/01
-------------------------------------------------------------------------------
R. 4.0 9/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR BANDWIDTH MANAGER
-------------------------------------------------------------------------------
R. 1.0 - 1.1 Now
-------------------------------------------------------------------------------
R. 1.2 Now
-------------------------------------------------------------------------------
R. 1.3 10/99 12/99
-------------------------------------------------------------------------------
R. 2.0 (w/TL1 cut through for DDM & FT) 1/00 3/31/00
-------------------------------------------------------------------------------
R. 3 6/30/00
-------------------------------------------------------------------------------
R. 4.0 3/01
-------------------------------------------------------------------------------
R. 5.0 9/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
WAVESTAR ALL METRO OLS
-------------------------------------------------------------------------------
R. 1.0 3/31/00
-------------------------------------------------------------------------------
R. 2.0 12/15/00
-------------------------------------------------------------------------------
R. 3.0 6/15/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
WAVESTAR OPTICAIR OLS
-------------------------------------------------------------------------------
R. 1.0 3/00
-------------------------------------------------------------------------------
R. 2.0 3/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
FT-2000 OC-48
-------------------------------------------------------------------------------
R. 9.1 1/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
ANYMEDIA ACCESS SYSTEM
-------------------------------------------------------------------------------
R. 1.0 9/98
-------------------------------------------------------------------------------
R. 1.2 4/99 6/99
-------------------------------------------------------------------------------
R. 1.5 6/99 8/99
-------------------------------------------------------------------------------
R. 1.7 - HDT 8/99
-------------------------------------------------------------------------------
R. 1.2.4 - as a PAS Server 1/00 3/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
DDM-2000 - OC3/12
-------------------------------------------------------------------------------
R. 15.0 10/99 12/99
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
DDM-2000 BAM
-------------------------------------------------------------------------------
R. 1.0 06/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
FIBERREACH
-------------------------------------------------------------------------------
R. 4.0 (TARP) 09/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
VINA TECH
-------------------------------------------------------------------------------
ConnectReach Plus Now
-------------------------------------------------------------------------------
ConnectReach Now
-------------------------------------------------------------------------------
R. 1.0 7/99
-------------------------------------------------------------------------------
VFDE 12/99
-------------------------------------------------------------------------------
R. 2.0 8/99
-------------------------------------------------------------------------------
R. 3.0 11/99
-------------------------------------------------------------------------------
R. 3.0.6 11/99
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COPPER MOUNTAIN
-------------------------------------------------------------------------------
CPE for Voice and Data w/PAS interop 10/99 11/99
-------------------------------------------------------------------------------
CPE for Voice and Data w/o PAS, standalone 10/99
-------------------------------------------------------------------------------
CE200 Now
-------------------------------------------------------------------------------
CE150 (for MTU use) Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
HDSL 2 - Data 12/99
-------------------------------------------------------------------------------
HDSL 2 - Derived Voice w/ PAS 11/99
-------------------------------------------------------------------------------
SDSL - Data Now
-------------------------------------------------------------------------------
SDSL - Derived Voice w/ PAS 7/99 11/99
-------------------------------------------------------------------------------
IDSL - Data Now
-------------------------------------------------------------------------------
IDSL - Derived Voice w/ PAS 11/99
-------------------------------------------------------------------------------
Rel. 2.4 01/00
-------------------------------------------------------------------------------
Rel. 2.9 03/00
-------------------------------------------------------------------------------
Rel. 3.0 07/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
DACS II
-------------------------------------------------------------------------------
Rel. 8.2 (Digital Signal Processing Platform) Now
-------------------------------------------------------------------------------
Rel. 8.3 (Low Density SONET and SDH Unit) Now
-------------------------------------------------------------------------------
Rel. 9.0 (Integrated Communications Interface Pack) 4Q99
-------------------------------------------------------------------------------
Rel. 9.1 (ATM Processing Shelf) 4Q99
-------------------------------------------------------------------------------
Rel. 10.0 (High Speed Unit - SONET) 1Q00
-------------------------------------------------------------------------------
Rel. 10.1 (High Speed Unit - SDH) 3Q00
-------------------------------------------------------------------------------
Rel. 11.0 (High Density Unit) 3Q00
-------------------------------------------------------------------------------
Rel. 12.0 (NextGen DACS) 2001
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
DACS 4/4/1
-------------------------------------------------------------------------------
R. 2.0 05/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
FT-2000 OC-48
-------------------------------------------------------------------------------
R. 9.0 TARP 01/00
-------------------------------------------------------------------------------
R. 9.1 01/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
5ESS ANYMEDIA SWITCH
-------------------------------------------------------------------------------
5E14 Software Release 4Q99 1q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
7 R/E PACKET SOLUTIONS
-------------------------------------------------------------------------------
7 R/E Packet Local Solution R1 (IP) 12/99 06/00
-------------------------------------------------------------------------------
7 R/E Packet Local Solution R2 (IP) 06/00 12/00
-------------------------------------------------------------------------------
7 R/E Packet Local Solution R3 (ATM) 12/00 06/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R1.0 10/99 04/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R1.1 11/99 05/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R1.2 03/00 09/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R2.0 06/00 12/00
-------------------------------------------------------------------------------
7 R/E Packet Tandem/Toll Solution R3.0 12/00 06/01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
7 R/E PACKET DRIVER
-------------------------------------------------------------------------------
Release 1.3 - Modem pooling w/TNT 12/99 06/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
Release 1.4 - Internet Telephony, OneLink 03/00 09/00
-------------------------------------------------------------------------------
Release 2.0 - Data Offload on TNT 06/00 12/00
-------------------------------------------------------------------------------
Release 2.1 - IP and VPN feature enhancements 09/00 03/01
-------------------------------------------------------------------------------
Release 3.0 (Phase 2) - Integrated VtoA Offer - 12/00 06/01
IWG
-------------------------------------------------------------------------------
Phase 3 - Packet SM and 7R/E Elements 2H01 1H02
-------------------------------------------------------------------------------
Phase 4 - Renaissance existing SMs 2002 2002
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PATHSTAR ACCESS SERVER
-------------------------------------------------------------------------------
Rel. 1.0 4/99 5/99
-------------------------------------------------------------------------------
Rel. 2.0 6/99 7/99
-------------------------------------------------------------------------------
Rel. 3.0 2/00 3/00
-------------------------------------------------------------------------------
Rel. 4.0 1Q00 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PACKETSTAR CONNECTION GATEWAY
-------------------------------------------------------------------------------
Rel. 1 4/99 7/99
-------------------------------------------------------------------------------
Rel. 2 9/99 12/99
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
AC120
-------------------------------------------------------------------------------
UPSR 1Q00 1Q00
-------------------------------------------------------------------------------
APS (2 node configs only) 7/99 9/99
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PSAX2300
-------------------------------------------------------------------------------
Rel. 6.1 Now
-------------------------------------------------------------------------------
Rel. 6.1.1 12/99
-------------------------------------------------------------------------------
Rel. 6.2 03/00
-------------------------------------------------------------------------------
Rel. 7.0 4Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COPPERCOM GATEWAY
-------------------------------------------------------------------------------
Redundancy
-------------------------------------------------------------------------------
GSC (1:1) 1Q00
-------------------------------------------------------------------------------
ATM (1:1) 1Q00
-------------------------------------------------------------------------------
T1 (1:N) 1Q00
-------------------------------------------------------------------------------
Power (1:1) Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Voice
-------------------------------------------------------------------------------
Loop/Ground Start Now
-------------------------------------------------------------------------------
PCM Now
-------------------------------------------------------------------------------
ADPCM 32 Now
-------------------------------------------------------------------------------
ADPCM 16 1Q00
-------------------------------------------------------------------------------
Echo Cancellation Now
-------------------------------------------------------------------------------
Fax Auto Detect 1Q00
-------------------------------------------------------------------------------
Silence Suppression 2Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
GR-203
-------------------------------------------------------------------------------
Multiple I/F Groups Now
-------------------------------------------------------------------------------
EOC/Alarms/PPS Now
-------------------------------------------------------------------------------
Lucent Certification 11/15/99
-------------------------------------------------------------------------------
Flow Through Provisioning 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
T1 Line Card
-------------------------------------------------------------------------------
T1-4 port Now
-------------------------------------------------------------------------------
T1-8 port 2Q00
-------------------------------------------------------------------------------
STS-1 2Q00
-------------------------------------------------------------------------------
Hot Remove 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
ATM Line Card
-------------------------------------------------------------------------------
ATM - DS3 - Dual Port Now
-------------------------------------------------------------------------------
ATM - OC3 - Dual Xxxx 0X00
-------------------------------------------------------------------------------
ATM - DS3 - Quad Port 2Q00
-------------------------------------------------------------------------------
Data Pass Through 1Q00
-------------------------------------------------------------------------------
Daisy Chaining 1Q00
-------------------------------------------------------------------------------
Hot Remove 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Management
-------------------------------------------------------------------------------
Craft Interface Now
-------------------------------------------------------------------------------
Element Management System Rel 1 4Q99
-------------------------------------------------------------------------------
Element Management System Rel 2 1Q00
-------------------------------------------------------------------------------
Lucent Integration Under Review
-------------------------------------------------------------------------------
Alarm Contacts 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Voice of Frame Relay
-------------------------------------------------------------------------------
Interworking Function FRF.8 Now
-------------------------------------------------------------------------------
PCM Now
-------------------------------------------------------------------------------
Configurable ATM/Frame Now
-------------------------------------------------------------------------------
ADPCM 32 1Q00
-------------------------------------------------------------------------------
ADPCM 16 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Packet Trunk Interface
-------------------------------------------------------------------------------
PTI Logic Card 2Q00
-------------------------------------------------------------------------------
MGCP 2Q00
-------------------------------------------------------------------------------
10/100/1000 Mbps I/F 2Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
xDSL Modems
-------------------------------------------------------------------------------
SDSL Now
-------------------------------------------------------------------------------
ADSL Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
Voice
-------------------------------------------------------------------------------
16 Ports Now
-------------------------------------------------------------------------------
Loop Start Now
-------------------------------------------------------------------------------
Ground Start 1Q00
-------------------------------------------------------------------------------
PCM Now
--------------------------------------------------------------------------------
ADPCM 32 Now
-------------------------------------------------------------------------------
ADPCM 16 1Q00
-------------------------------------------------------------------------------
Echo Cancellation Now
-------------------------------------------------------------------------------
Silence Suppression 2Q00
--------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Data
-------------------------------------------------------------------------------
RIP 1 & 2 Now
-------------------------------------------------------------------------------
RFC 1483 Now
-------------------------------------------------------------------------------
PPP Now
-------------------------------------------------------------------------------
Classical IP Now
-------------------------------------------------------------------------------
NAT Now
-------------------------------------------------------------------------------
DHCP Now
-------------------------------------------------------------------------------
Firewall Now
-------------------------------------------------------------------------------
10Base T Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Management
-------------------------------------------------------------------------------
Console Port Now
-------------------------------------------------------------------------------
Telnet over Ethernet Now
-------------------------------------------------------------------------------
Proxy Through Gateway 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COPPERCOM MXR
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
xDSL Modems
-------------------------------------------------------------------------------
SDSL Now
-------------------------------------------------------------------------------
ADSL Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Voice
-------------------------------------------------------------------------------
16 Ports Now
-------------------------------------------------------------------------------
Loop Start Now
-------------------------------------------------------------------------------
Ground Start 1Q00
-------------------------------------------------------------------------------
PCM Now
-------------------------------------------------------------------------------
ADPCM 32 Now
-------------------------------------------------------------------------------
ADPCM 16 1Q00
-------------------------------------------------------------------------------
Echo Cancellation Now
-------------------------------------------------------------------------------
Silence Suppression 2Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Data
-------------------------------------------------------------------------------
RIP 1 & 2 Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
RFC 1483 Now
-------------------------------------------------------------------------------
PPP Now
-------------------------------------------------------------------------------
Classical IP Now
-------------------------------------------------------------------------------
NAT Now
-------------------------------------------------------------------------------
DHCP Now
-------------------------------------------------------------------------------
Firewall Now
-------------------------------------------------------------------------------
10Base T Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Management
-------------------------------------------------------------------------------
Console Port Now
-------------------------------------------------------------------------------
Telnet over Ethernet Now
-------------------------------------------------------------------------------
Proxy Through Gateway 1Q00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CAJUN 330R
-------------------------------------------------------------------------------
OC 12 ATM Uplink 03/00
-------------------------------------------------------------------------------
OC 3 ATM Uplink 05/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CAJUN 550R
-------------------------------------------------------------------------------
OC 12 ATM Uplink 03/00
-------------------------------------------------------------------------------
OC 3 ATM Uplink 05/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
GX 550
-------------------------------------------------------------------------------
Jade
-------------------------------------------------------------------------------
OC3/STM-1, OC12/STM-4 Now
-------------------------------------------------------------------------------
Full Redundancy (excluding GR253 APS) Now
-------------------------------------------------------------------------------
CBX 500 Rel. 3.0 SW functionality Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Jade.1
-------------------------------------------------------------------------------
Rapid upgrade Now
-------------------------------------------------------------------------------
IP Navigator Now
-------------------------------------------------------------------------------
Amethyst & Jade NMS merge Now
-------------------------------------------------------------------------------
Priority reroute Now
-------------------------------------------------------------------------------
OC-48/STM-16 software support Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Jade M2
-------------------------------------------------------------------------------
GR 253 Direct Trunk APS for OC12/STM-4 Now
-------------------------------------------------------------------------------
GR 253 Direct Trunk APS for OC48/STM-16 Now
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Eurpoa (Rel. 8.0)
-------------------------------------------------------------------------------
BIO 2 06/00
-------------------------------------------------------------------------------
GR 253 OC-3/STM-1, OC-12//STM-4, OC-48/STM-16 06/00
Direct Trunk / UNI APS
-------------------------------------------------------------------------------
Frame BIO 06/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRODUCT RELEASE SCHEDULE
-------------------------------------------------------------------------------
CI OR FSA GA
-------------------------------------------------------------------------------
4 port OC-3/STM-1 FOS/POS 06/00
-------------------------------------------------------------------------------
1 port OC-12/STM-4 FOS/POS 06/00
-------------------------------------------------------------------------------
IP Navigator & Frame Relay 06/00
-------------------------------------------------------------------------------
4 port DS3 ATM via GX 250 06/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MAX TNT
-------------------------------------------------------------------------------
Re. 8.0 01/00
-------------------------------------------------------------------------------
96 Modem Cards 02/00
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
STINGER
-------------------------------------------------------------------------------
TAOS 7.11.1 Now
-------------------------------------------------------------------------------
TAOS 8.0.x 2Q00
-------------------------------------------------------------------------------
24-port ADSl and HDSL2 Line Interface Modules 2Q00
-------------------------------------------------------------------------------
EXHIBIT C
OLD PRICE / NEW PRICE
CITY COMPARISON
OLD NEW
TDM QUOTES REDUCTION
KMC Central Office $2,816,827 $2,567,658 -8.85%
ILEC Tandem $483,473 $422,106 -12.69%
LSO Cob $966,946 $844,212 -12.69%
AT&T Cob $123,476 $122,350 -0.91%
MCI Cob $200,410 $146,926 -26.69%
IXC Cob $200,410 $146,926 -26.69%
Fees/Make Ready $500,000 $500,000 0.00%
Shipping (5%) $264,577 $212,509 -19.68%
Subtotal $5,556,119 $4,962,687 -10.68%
Switching Machine $2,551,741 51,950,000* -23.58%
Grand Total $8,107,860 $6,912,687 -14.74%
* List price not yet firm. This price is budgetary and exemplifies a model with
pure packet access. Seller commits to a minimum twenty percent (20%) price
savings when compared to a 5ESS TDM Switch configuration. Access vehicles (e.g.,
RLAGs, IADs, etc.) are not included in the pricing.
