AMENDMENT NUMBER TWO
TO THE GENERAL AGREEMENT AMONG
KMC TELECOM INC., KMC TELECOM II, INC.,
KMC TELECOM LEASING I LLC, KMC TELECOM LEASING II LLC
AND LUCENT TECHNOLOGIES INC.
This Amendment Number Two (hereinafter this "Amendment Two") is made
effective as of December 22, 1998, by and among KMC Telecom Inc., a Delaware
corporation, KMC Telecom II, Inc., a Delaware corporation, KMC Telecom Leasing I
LLC, a Delaware limited liability company and KMC Telecom Leasing II 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 LNM970313MP), effective March 6, 1997, as modified
and amended by Amendment Number 1 (Contract Number LNM 970922MP), effective as
of October 15, 1997 (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);
WHEREAS, Customer and Seller desire to amend and modify the General
Agreement as set forth herein; and
WHEREAS, all terms used herein but not defined herein shall have the
meanings ascribed to them in the General Agreement.
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 of Virginia, Inc., a Virginia public
service company ("KMC-Virginia"), KMC Telecom III, Inc., a Delaware corporation
("KMC III") and KMC Telecom Leasing III LLC, a Delaware limited liability
company ("KMC Leasing III"); it being the intent and understanding among the
parties that KMC-Virginia, KMC III, and KMC Leasing III shall be authorized to
procure Products, Licensed Materials and Services from Seller under and pursuant
to the terms and conditions of the General Agreement.
2. TERM OF GENERAL AGREEMENT
Section 1.2 of the General Agreement is hereby amended to provide that the
Term shall expire on March 5, 2003.
3. 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), KMC III and KMC
Leasing III agree to procure directly and exclusively from Seller, consistent
with the purchase requirements set forth in the financing documents between the
parties, Seller's Products, and related Licensed Materials and Services which
are available and may become available during the Term, in each case meeting
Customer's requirements for up to 27 Tier III cities and up to 100 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. Either party's obligation to perform under this Amendment is contingent
on Seller providing financing for all Seller's Products, and related Licensed
Materials and Services to be sold to Customer hereunder in accordance with that
certain Loan and Security Agreement, dated as of February __, 1999, among KMC
III, KMC Leasing III, the financial institutions signatory thereto, Seller as
agent and __________ as collateral agent.
4. DEFINITIONS
The following definitions are hereby added to Section A-1.2, "Definitions"
of Appendix A:
o "Data Networking Products" means Seller's intelligent switching,
access and applications and network services Products, including but
not limited to the PacketStar(TM) Access Concentrator(TM),
PathStar(TM) Access Server, PortMaster(R) Integrated Access
Concentrator and PacketStarTM IP GateWay 1000. The table of Data
Networking Products in Section 6 may be expanded or amended from
time to time by mutual agreement of the parties.
5. MODIFICATIONS TO APPENDIX A
The provision of Appendix A of the General Agreement shall be revised in
the following respects:
(A) The first sentence of Section A-1.5 "Network Standardization" shall be
replaced with the following: "Subject to the provisions of Section 3 of
Amendment Two, Customer agrees to standardize its network exclusively on
Seller's 5ESS(R)-2000 Switch Systems Products, Transmission Systems Products,
fiber optic cable and associated apparatus, access systems, voice messaging
systems, Power Systems and Data Networking Products during the Term, such that
in the event Customer requires any equipment and/or software which is
functionally comparable to Sellers Products and related Licensed Materials
available for purchase under this Agreement, then Customer agrees to purchase
all of its requirements for such equipment and software from Seller.
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(B) The parties acknowledge that, effective June 30, 1998, the
Transmission Systems discounts available to Customer were amended and that
effective as of June 30, 1998, the table entitled "Transmission Systems Products
Discount Schedule" in Section A-1.15 of Appendix A is replaced with the
following:
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TRANSMISSION SYSTEMS PRODUCTS* DISCOUNT
--------------------------------------------------------------------------------
DDM PLUS 27%
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DDM-2000 FiberReach OC-1 25%
--------------------------------------------------------------------------------
DDM-2000 OC-3 hardware & Software 45%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Shelf 85%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Commons 43%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Optics 50%
--------------------------------------------------------------------------------
DDM-2000 OC-12 Software 43%
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Dual 2Fiber OC-48 A/D Ring Term 70%**
Two Systems (ED8C902-30 G-3 e/w the following):
TG3 (DS1) Cp LAA18
System Controller LAA23B
System Memory 4 Mbyte LAA25
Line Controller (4 Mg) A/D & ring LAA28
Overhead Controller LAA21
Adapter Plate
Filler Plate
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FT-2000 OC-48 Lightwave System Commons (spares) 50%
--------------------------------------------------------------------------------
FT-2000 XX-00 Xxx Xxxxx Xxxxx (XX0, XX0, XX-0, OC-12) 40%
--------------------------------------------------------------------------------
FT-2000 OC-48 Lightwave System Optics 65%
--------------------------------------------------------------------------------
FT-2000 OC-48 Lightwave System Software 65%
--------------------------------------------------------------------------------
SLC(R)-2000 Multi Services Distant Terminals (MSDT) 35%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - Common Units 40%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - POTS/SPOTS Units 35%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - Special Service Units 40%
--------------------------------------------------------------------------------
SLC(R)-2000 Access System - Software 00%
--------------------------------------------------------------------------------
SLC(R)-SERIES 5 Carrier System - Common Units 35%
--------------------------------------------------------------------------------
SLC(R)-SERIES 5 Carrier System - POTS/SPOTS Units 35%
--------------------------------------------------------------------------------
SLC(R)-SERIES 5 Carrier System - Special Service Units 35%
--------------------------------------------------------------------------------
DACS IV 2000 Systems see 1.15.1 below
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TRANSMISSION SYSTEMS PRODUCTS* DISCOUNT
--------------------------------------------------------------------------------
DACS II Systems (hardware & Software) 27%
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* The above Products do not include cabling or power equipment. Unless otherwise
specified, the discounts shown above apply to Transmission Systems Products
(hardware) only. The discount for the cables used in the systems set forth above
shall be twenty percent (20%) off the List Price.
** This 70% discount only applies to Lucent order code ED8C902-30 G-3 which is
equipped with a dual bay, two complete OC-48 systems and commons for one shelf.
For commons ordered singularly, the 50% discount shall apply.
6. ADDITIONS TO APPENDIX A
The following sections are hereby added to Appendix A of the General
Agreement.
6.1 PRICING PLAN
A new Section A-1.22 is hereby added to Appendix A of the General
Agreement:
"A-1.22 PRICING PLAN FOR DATA NETWORKING PRODUCTS
In consideration for the Customer purchase commitment set forth in Section
3 of this Amendment No. 2, Seller will provide the discounts set forth below for
all purchases of the Data Networking Products described therein which are made
by Customer during the Term:
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DATA NETWORKING PRODUCTS DISCOUNT
--------------------------------------------------------------------------------
PacketStar(TM) Access Concentrator 10 30%
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PacketStar(TM) Access Concentrator 60 40%
--------------------------------------------------------------------------------
PacketStar(TM) Access Concentrator 120 40%
--------------------------------------------------------------------------------
PathStar(TM) Access Server (PSAS) 40%
--------------------------------------------------------------------------------
PortMaster(R)4 Integrated Access Concentrator (PM4) 30%
--------------------------------------------------------------------------------
PacketStar(TM) IP GateWay 1000 25%"
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6.2 SUPPORT SERVICES FOR DATA NETWORKING PRODUCTS
A new Section A-1.23 is hereby added to Appendix A:
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"1.23 SUPPORT SERVICES
In addition to its obligations under the "Warranty" clause of the General
Agreement, Seller will make available maintenance and other technical support
services to Customer for Seller's Data Networking Products under mutually
agreed-upon, separate support agreement(s)."
6.3 TRAINING INCENTIVE FOR DATA NETWORKING PRODUCTS
A new Section A-1.24 is hereby added to Appendix A:
"1.24 TRAINING INCENTIVE
In consideration for Customer's purchase commitment set forth in Section 3
of this Amendment, (a) for each one million two hundred fifty thousand dollars
($1,250,000) in Customer's purchases of Seller's PathStar(TM) Access Server
Products, Seller will provide Customer with two (2) tuition-free seats at a five
(5) day course related to Data Networking Products; and (b) for each one million
two hundred fifty thousand dollars ($1,250,000) in Customer's purchases of
Seller's PortMaster(R) 4 Integrated Access Concentrator, PacketStar(TM) IP
GateWay 1000, PacketStar(TM) Access Concentrator 10, PacketStar(TM) Access
Concentrator 60, or PacketStar(TM) Access Concentrator 120 Products, Seller will
provide Customer with two (2) tuition-free seats at a five (5) day course
related to Data Networking Products. Seller, at its option, may offer training
regionally.
Customer shall use the foregoing training days earned by it within twelve
(12) months after the shipment of the relevant Data Networking Products.
Customer shall responsible for all associated travel and living expenses for
Customer personnel in connection with attendance at the foregoing courses. In
the event that Seller sends its personnel to a Customer site for on-site
training, Customer shall be responsible for all reasonable travel and living
expenses for the instructor and for providing equipment needed for hands-on
training. It is understood and agreed that any such equipment used in a training
setting must not be part of Customer's network product environment."
7. 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 Two 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 Two shall not be modified or amended except by a writing signed
by an authorized representative of each of the parties.
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IN WITNESS WHEREOF, the parties have caused this Amendment Two to be
executed by their duly authorized representatives on the date(s) indicated.
KMC TELECOM INC. KMC TELECOM LEASING I LLC
By: KMC Telecom I, Inc., as Sole
Member
By: /s/ By: /s/
----------------------------------- -----------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxxx
--------------------------- ---------------------------
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. Xxxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxxx
--------------------------- ---------------------------
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. Xxxxxxxxx Typed Name: Xxxxxxx X. Xxxxxxxxx
--------------------------- ---------------------------
Title: President Title: President
-------------------------------- --------------------------------
Date: Date:
--------------------------------- ---------------------------------
KMC TELECOM OF VIRGINIA, INC. LUCENT TECHNOLOGIES INC.
By: /s/ By: /s/
----------------------------------- -----------------------------------
Typed Name: Xxxxxxx X. Xxxxxxxxx Typed Name: Xxxx Xxxxxx
--------------------------- ---------------------------
Title: President Title: Vice President - Sales
-------------------------------- --------------------------------
Date: Date:
--------------------------------- ---------------------------------
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