EXHIBIT 10.56
CONFIDENTIAL PORTION MARKED [************] HAS BEEN OMITTED PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.
Dated as December 31, 2003
SBC Communications Inc.
SBC Operations, Inc.
Southwestern Xxxx Communications Services, Inc.
000 Xxxx Xxxxxxx
Xxx Xxxxxxx, Xxxxx 00000
Ladies and Gentlemen:
AMENDMENT NO. 2 TO MASTER ALLIANCE AGREEMENT AND AMENDMENT NO. 4 TO TRANSPORT
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SERVICES AGREEMENT
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Reference is made to (a) the Master Alliance Agreement, effective as
of February 8, 1999, as amended by Amendment No. 1 entered into as of September
23, 2002 (as so amended, the "MAA"), by and between WilTel Communications, LLC,
formerly known as Xxxxxxxx Communications, LLC ("WILTEL"), and SBC
Communications Inc. ("SBC"), and (b) the Transport Services Agreement, effective
as of February 8, 1999, as amended by Amendment No. 1 dated as of September 29,
2000, Amendment No. 2 and Amendment No. 3 ("AMENDMENT NO. 3") dated as of
September 23, 2002 (as so amended, the "TSA"), by and among WilTel, SBC
Operations, Inc. ("SBCO") and Southwestern Xxxx Communications Services, Inc.
("SOUTHWESTERN", and together with SBCO, "SBCS"). WilTel, SBC, SBCO and
Southwestern may be referred to individually as a "party", or collectively as
the "parties". Capitalized terms used but not defined in this letter amendment
("LETTER AMENDMENT") shall have the meanings set forth in the TSA or, if not
defined in the TSA, the MAA.
It is hereby agreed by WilTel and SBC that the MAA, and by WilTel,
SBCO and Southwestern that the TSA, is, effective as of the date hereof, amended
as follows:
1. Pricing for Voice Transport Services. Notwithstanding anything to the
contrary contained in the TSA, including Section 6 of Schedule P thereto and
Amendment No. 3, the MAA or any Alliance Agreement, from and after January 1,
2004 to and including January 31, 2005 (the "PRICING PERIOD"), SBCS agrees to
pay the following rates for domestic voice On-Net Transport Services, including
On-Net SNET voice traffic:
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***********************************]. Cost Plus pricing, MFN Pricing or market
pricing under the TSA or the MAA shall not apply to pricing for voice On-Net
Transport Services (including for all purposes under this Letter Amendment, toll
free services) during the Pricing Period. The parties hereby confirm that for
the period through December 31, 2003, the fixed pricing set forth in Section 6
of Schedule P to the TSA remains in effect.
1
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
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(b)
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(b)
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2
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
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(b)
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(c)
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(d)
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5. Capital Expenditures. (a) On January 2, 2004, SBCS shall pay
WilTel, by wire transfer to an account designated in writing by WilTel,
[***********] (the "CAPEX PAYMENT") as a prepayment of certain capital
expenditures to be made by WilTel during the Pricing Period for augmentation of
voice ports and ancillary equipment in support of SBCS's voice services ("TDM
3
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
AUGMENTATION")[*************************************************************].
The Capex Payment represents a good faith estimate by WilTel of SBCS's pro rata
portion of WilTel's capital expenditures for TDM Augmentation
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(b) If prior to the end of the Pricing Period, (i) WilTel and SBCS
enter into a further amendment to the TSA (and any other relevant Alliance
Agreements) or other definitive agreement providing for pricing provisions for
voice services extending to at least December 31, 2006, or (ii) a majority of
the assets of, or voting interests in, WilTel is sold to any Person other than
an Affiliate of Leucadia National Corp., then, in each case, WilTel shall, not
later than 30 days after execution of such amendment or agreement or
consummation of such sale, as the case may be, reimburse SBCS the full amount of
the Capex Payment other than any Unused Amount expended on new product
development and/or Mandatory Projects under the MAA in accordance with the
proviso in Section 5(a) as a result of, and in accordance with, an Unused Amount
Consent. Amounts in respect of the Capex Payment may be included in Cost Plus
calculations that may be applicable in future periods only if and to the extent
such amounts are reimbursed to SBCS.
(c) WilTel shall provide SBCS with a written accounting of the
expenditures made by WilTel with respect to the Capex Payment together with a
plan for future expenditures prior to the end of each of (i) April 2004, (ii)
July 2004, and (iii) January 2005. The parties shall jointly review such
accountings of expenditures and such plans for future expenditures, and SBCS
shall have an opportunity to provide input with respect to such plans for future
expenditures.
(d) The provisions of this Section 5 shall not be deemed to be a
commitment by WilTel to spend any specific amount[******************************
***********].
6. Definitions. For purposes of this Letter Amendment, (i) "PORT"
means each DS-0 channel between WilTel's switch and the Trunk Group connecting
to SBCS through local access arrangements, and (ii) "TRUNK GROUP" means a series
of DS-0 channels bundled as an individual trunk group terminating to a voice
switch and operating at XX-0, XX-0, OC-3, OC-12 or OC-48 signaling speeds.
4
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
Except as herein expressly amended, the TSA, the MAA and any other
documents executed and delivered in connection therewith, including each of the
other Alliance Agreements, shall remain in full force and effect in accordance
with their respective terms; provided, however, that to the extent of any
conflict between this Letter Amendment and the TSA, MAA or any other documents
executed and delivered in connection therewith, including each of the other
Alliance Agreements, the terms of this Letter Amendment shall control. Upon the
effectiveness of this Letter Amendment, each reference in the TSA and the MAA,
as the case may be, to "this Agreement," "hereunder," "hereof," "herein," or
words of like import shall mean and be a reference to the TSA and the MAA,
respectively, as amended hereby, and each reference to the TSA or the MAA in any
other document, instrument or agreement executed and/or delivered in connection
with the TSA or the MAA, as the case may be, shall mean and be a reference to
the TSA and the MAA, as the case may be, as amended hereby.
Each of WilTel, SBCO and Southwestern represents and warrants to the
others as follows:
(a) The execution, delivery and performance by such party of this
Letter Amendment and the performance by such party of the TSA as amended hereby
(i) have been duly authorized by all necessary corporate or other action and
(ii) do not and will not contravene its organizational documents or any
applicable law. Such party has all requisite corporate or limited liability
company power and authority to enter into this Letter Amendment and to perform
its obligations hereunder and under the TSA, as amended hereby.
(b) This Letter Amendment and the TSA, as amended hereby, constitute
the legal, valid and binding obligations of such party, enforceable against such
party in accordance with their terms.
Each of WilTel and SBC represents and warrants to the other as
follows:
(a) The execution, delivery and performance by such party of this
Letter Amendment and the performance by such party of the MAA as amended hereby
(i) have been duly authorized by all necessary corporate or other action and
(ii) do not and will not contravene its organizational documents or any
applicable law. Such party has all requisite corporate or limited liability
company power and authority to enter into this Letter Amendment and to perform
its obligations hereunder and under the MAA, as amended hereby.
(b) This Letter Amendment and the MAA, as amended hereby, constitute
the legal, valid and binding obligations of such party, enforceable against such
party in accordance with their terms.
This Letter Amendment may be executed in any number of counterparts
with the same effect as if all parties hereto had signed the same document. All
counterparts shall be construed together and shall constitute one instrument.
Any such counterpart may be executed by facsimile transmission.
Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Letter Amendment for any
other purpose.
5
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
If you agree to the terms and provisions of this Letter Amendment,
please evidence such agreement by executing and returning at least two original
counterparts of this Letter Amendment to Xxxx X. Xxxxxx, President and CEO at
WilTel Communications, and one faxed copy to telecopier No. (000) 000-0000.
This Letter Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.
[REMAINDER OF PAGE INTENTIONALLY BLANK]
6
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
IN WITNESS WHEREOF, the parties hereto have caused this Letter
Amendment to be executed by their respective authorized representatives as of
the date first above written.
Very truly yours,
WILTEL COMMUNICATIONS, LLC
By /s/ Xxxx X. Xxxxxx
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Name: Xxxx X. Xxxxxx
Title: President & CEO
Agreed as of the date first above written:
SBC COMMUNICATIONS INC.
By /s/ Xxxxx X. Xxxxx
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Name: Xxxxx X. Xxxxx
Title:
SBC OPERATIONS, INC.
By /s/ Xxxxx X. Xxxxx
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Name: Xxxxx X. Xxxxx
Title:
SOUTHWESTERN XXXX
COMMUNICATIONS SERVICES, INC.
By /s/ Xxx Xxxxxxxx
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Name: Xxx Xxxxxxxx
Title: President
7
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
EXHIBIT A
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Arkansas
California
Kansas
Oklahoma
Missouri
Texas
8
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
EXHIBIT B
Illinois
Indiana
Michigan
Ohio
Wisconsin
9
PROPRIETARY INFORMATION: This information contained in this Letter Amendment is
not for use or disclosure outside WilTel, SBC, SBCO and Southwestern, and their
respective affiliated companies and third party representatives, except under
written agreement by the contracting parties.
