COVAD COMMUNICATIONS COMPANY
ISP CUSTOMER AGREEMENT FOR TELESPEED SERVICES
Covad Communications Company ("Covad") is pleased to bring to __________________
("Customer") this offer for Covad's TeleSpeed-TM- service. TeleSpeed service is
a high-speed telecommunication service for Customer's small business Internet
access client ("Clients"). The terms of this agreement are as follows:
- Customer hereby contracts for Covad's TeleSpeed service to the premises of
each Customer Clients ("Client TeleSpeed Circuits") for one year
commencing on the Covad billing date of each Client TeleSpeed Circuit.
Customer shall pay for, and Covad shall install, Covad's TeleSpeed service
in accordance with and subject to the terms of this offer, as well as the
terms and conditions set forth herein, which are incorporated by reference
("Terms and Conditions").
- Customer shall provide Covad with addresses, direct telephone numbers,
work e-mail address and other information required for successful
installation of Customer's Clients designated to receive Covad TeleSpeed
service under the terms of this agreement ("Agreement"). Covad shall
target installation dates of the service for each of the Customer Clients
and the Customer Wide Area Network Circuits ("Customer TeleSpeed
Circuits") requested by Customer. Covad shall keep all Client information
confidential.
- Customer understands and agrees that the installation and monthly charges
for Covad's Customer TeleSpeed Circuits and Client TeleSpeed Circuits and
related charges shall be as set forth in List Pricing Schedule A,
attached.
1. DESCRIPTION AND USE OF COVAD'S TELESPEED SERVICE: Covad's TeleSpeed
service is a digital service that provides upstream and downstream maximum
throughput rates that range from up to 144Kbps to 1.5Mbps to a Client's
premises from a Covad serving center. The maximum throughput rate depends
on such factors as the distance of the Client's premises from a Covad
serving center and the quality of the copper telephone line serving the
premise. Covad's TeleSpeed service does not include any Internet access
service. The parties shall undertake commercially reasonable efforts to
work with each other to meet Customer's needs for Covad's services.
2. DESCRIPTION OF CHARGES AND PAYMENT TERMS: The rates and charges set forth
in List Pricing Schedule A, are for the point-to-point Client TeleSpeed
Circuits between a Customer Client and a Covad Regional Data Center.
Separate additional charges also apply for the Customer TeleSpeed Circuit,
which connects a Covad's Regional Data Center to the Customer and are set
forth in the List Pricing Schedule A. In addition, Covad shall xxxx all
applicable federal, state, and local mandated surcharges, fees, user's
fees, universal service contributions and taxes to Customer. Covad shall
mail an invoice to Customer by the first day of the month, prior to the
month of service at ________________________. Customer shall pay all
charges within 30 calendar days of the date that Covad's monthly invoices
are mailed. Unless otherwise specified in writing by Covad all payments
shall be made to Covad Communications Company and mailed to Accounts
Receivable Dept., Covad Communications Company, 0000 Xxxxxxx Xxxxxx, Xxxxx
Xxxxx, XX 00000.
3. LIMITED WARRANTY. COVAD TELESPEED SERVICE: Covad warrants to Customer,
subject to the limitations set forth below, that Covad's TeleSpeed Service
shall operate in substantial accordance with the terms of this Agreement
during the contract period of one year.
A. Customer understands and acknowledges that the actual transmission
speeds delivered by Covad may vary from the transmission speeds otherwise
expected by Customer or its Clients based on such factors as the length
and gauge of the line serving the Client, and other operational
characteristics of the facilities and equipment used by Covad (see Client
TeleSpeed Circuit Matrix Schedule D).
B. Covad shall use commercially reasonable efforts to provide
installation, repair and maintenance functions for its TeleSpeed services.
In the event that a Client experiences ad promptly notifies Covad of a
substantial reduction in transmission speed or significant interruption of
service, Covad will undertake, at no charge to Customer, commercially
reasonable efforts to restore Client's TeleSpeed service. Covad shall not
be responsible for service issues concerning a Client's computer or
software.
C. Customer understands and acknowledges and represents and warrants that
it will inform its Clients that Covad's TeleSpeed does not provide 911 or
other emergency and ancillary services conventionally available from
incumbent local phone companies.
D. Customer shall provide first level support for all of its Clients.
Covad shall provide commercially reasonable second level support.
E. Customer understands and acknowledges that Covad's service is limited
to certain regions in the United States. Covad reserves the sole and
exclusive right to determine the expansion of its service area, and the
right to maintain and reconfigure its service.
F. Customer acknowledges and understands that the lack of facilities or
other operational impediments may preclude or delay Covad's actual
installation, repair and maintenance of Covad's TeleSpeed service.
G. Covad will make reasonable efforts to provide 5-day notification to
Customer on Scheduled Maintenance. Covad may interrupts its provision of
service for maintenance and other operational reasons, without any
compensation or notice to Customer other than any commercially reasonable
refund from Covad. Covad also reserves the sole and exclusive right to
terminate its service in any area or cease operations with 60-day notice
to Customer.
H. This limited warranty shall not apply if: (1) the Client's equipment
has been subjected to unusual physical or electrical stress, misuse,
neglect, accident or abuse, or damaged by any other external causes; (2)
Covad's TeleSpeed service or equipment has been repaired or altered by
anyone other than Covad or Covad's subcontractors or affiliates, without
Covad's express and prior written approval; (3) Covad's TeleSpeed service
or equipment has been improperly installed by someone other than Covad or
Covad's subcontractors or affiliates; or (4) Covad's TeleSpeed service is
used in violation of applicable law or in violation of instructions
furnished by Covad.
I. Warranty: Inside Wire Customer TeleSpeed Circuit & Client TeleSpeed
Circuit. All Covad-installed or repaired premise wiring is warranted to
be free from defects for a period of 30 calendar days from the date of
work completion. Covad may outsource inside wire installations.
J. Warranty: Equipment Client Premise Equipment. If the Customer
purchases client premise equipment directly from Covad, the equipment will
carry a manufacturer's warranty beginning on the billing start date for
the Covad service. In the event that the equipment is determined to be
faulty within this warranty period, Covad will mail the replacement
equipment to the Customer to arrive within 3 business days.
- THE FOREGOING LIMITED WARRANTIES SHALL BE IN LIEU OF AND EXCLUDE ALL
OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATIONS,
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE OR PURPOSE.
4. LIMITATION OF LIABILITY: In no case shall Covad's liability exceed the
amount of fees due to Covad in the last Customer invoice for services
associated with any circuit or circuits that give rise to the liability
for the preceding billing period. Neither party shall have any liability
to the other party for any direct, indirect, special, incidental, or
consequential damages of any kind, regardless of whether such damages are
foreseeable by either or both parties.
5. QUALIFICATION.
5.1 CUSTOMER TELESPEED CIRCUIT. A Covad System Engineer (SE) will qualify
that a Customer TeleSpeed Circuit can be ordered from Covad prior to the
Customer ordering the circuit from Covad.
5.2 CLIENT TELESPEED CIRCUIT. Customers complete the on-line Service
Availability form made available on Covad's web site to receive the
estimated TeleSpeed services available for a Client site. If the client
address is not recognized by Covad's database, the Customer should follow
the directions on the web page.
5.3 CUSTOMER AND CLIENT PREMISE EQUIPMENT. Covad will publish a list of
"Covad Qualified" equipment. "Covad Qualified" equipment will be
supported as defined by Covad Product Management. Covad will not support
equipment that is not "Covad Qualified."
6. ORDERING.
6.1 CUSTOMER TELESPEED CIRCUIT. Covad currently offers two Customer TeleSpeed
Circuit options. The options are a DS-3/ATM circuit and a DS-1/Frame
Relay circuit. Customers should complete the Customer TeleSpeed Circuit
order form and fax or e-mail the form to their Covad Account Executive
(AE). Covad will send an order acknowledgment e-mail to the Customer
within one business day after receipt of an e-mailed or faxed order. The
Customer will receive an ID and password to access Covad's on-line
Customer Care Center within five business days of entering the Customer
TeleSpeed Circuit order. This will enable the Customer to place Client
TeleSpeed Circuit orders on-line and to access the other services made
available on-line by Covad.
6.2 CLIENT TELESPEED CIRCUIT. Covad offers a range of Client TeleSpeed
Circuit options with various maximum throughput rates. These options
currently include TeleSpeed 144, TeleSpeed 384, TeleSpeed 1.1 and
TeleSpeed 1.5. Customers complete the on-line order form and receive
immediate order acknowledgment via the web. If an acknowledgment is not
received, the Customer should notify Covad Customer Care immediately.
Covad will only accept Client TeleSpeed Circuit orders within 30 calendar
days of the published COMMITTED service available date from given central
office. All orders entered in Covad's system will be treated equally.
Covad is unable to prioritize the installation of one order over another.
6.3 CUSTOMER PREMISE EQUIPMENT. Covad does not sell Customer premise
equipment. Covad currently provides a CSU/DSU with installation of a
DS-1/Frame Relay Customer TeleSpeed Circuit. The DSU/CSU remains the
property of Covad. When an order is placed for a DS-1 circuit, Covad will
provide a Covad Qualified CSU/DSUs. Covad does not currently provide any
customer premise equipment with installation of a DS-3/ATM Customer
TeleSpeed Circuit.
6.4 CLIENT PREMISE EQUIPMENT. Covad offers a range of Client premise
equipment options. These options currently include the Flowpoint 144
(four user and unlimited user) and Ascend Pipeline 50 (for use with
TeleSpeed 144 and provides for 128 Kbps symmetric throughput) and the
Diamond Lane 2000 (for use with TeleSpeed 384, TeleSpeed 1.1 and TeleSpeed
1.5). Customers select the appropriate client premise equipment on the
on-line order form and receive immediate order acknowledgment via the web.
7. PROVISIONING & INSTALLATION: LEAD TIMES.
7.1 CUSTOMER TELESPEED CIRCUIT
- DS1: 30 calendar days After Receipt of Order (ARO)
- DS3: 45 calendar days ARO
NOTE: Facility problems may push the installation date past the ARO
date.
7.2 CLIENT TELESPEED CIRCUIT
- 30 calendar days ARO
NOTE: Facility problems may push installation date past the ARO date.
Incorrect Customer supplied information may push installation date past
the ARO date.
8. PROVISIONING & INSTALLATION: SCHEDULING.
8.1 CUSTOMER TELESPEED CIRCUIT. Covad will schedule the installation by
appointment with the Customer.
8.2 CLIENT TELESPEED CIRCUIT. Monday - Friday; appointments begin at 8:00 am
and the last appointment will begin at 5:00 pm local time. A Covad Field
Service Technician (FST) will arrive within an assigned 2-hour window.
The Client should plan for the installation to take 2 hours to complete
after the arrival of the FST. The Customer or Client must confirm the
installation date and time by 12:00 noon the day before the installation
is scheduled or the installation will be rescheduled.
8.3 INSIDE WIRE. The Customer should notify Covad if extensive (> 1 hour
labor) inside wire is required by providing information on the on-line
order form. Extensive inside wire installations may be scheduled
separately, and will be scheduled as closely as possible to the Covad
installation date. If Covad is not notified of extensive inside wire
requirements, Covad may need to reschedule the installation.
9. PROVISIONING & INSTALLATION: RESCHEDULING
9.1 CUSTOMER TELESPEED CIRCUIT. There is no charge to reschedule a Customer
TeleSpeed Circuit appointment.
9.2 CLIENT TELESPEED CIRCUIT. Covad will not charge the Customer for
rescheduling a client installation if the cancellation occurs before 12:00
noon on the business day preceding the client installation. If
cancellation occurs after 12:00 noon, and for client no-shows, Covad will
charge the Customer 50% of installation price (even if a promotion to
waive installation is in effect). The Covad FST will wait for a minimum
of 15 minutes after arrival (arrival time within the installation window)
before the appointment is considered a no-show.
10. PROVISIONING & INSTALLATION: ACCEPTANCE.
10.1 CUSTOMER TELESPEED CIRCUIT. Covad requires a written "Confirmation of
Acceptance" from the Customer. A Covad System Engineer (SE) will obtain
this "Confirmation of Acceptance" from the Customer upon successful
installation.
10.2 CLIENT TELESPEED CIRCUIT. Covad considers an installation successful if
the maximum throughput rate is equal to or greater than 80% of ordered
service. See Schedule C for Acceptable Maximum Throughout Levels. If 80%
or greater is achieved, Covad will Close the installation ticket and will
not require verification of acceptance from the Customer. When less than
80% of either the up or downstream maximum throughput rates for the Client
TeleSpeed Circuit is installed, refer to schedule C for additional
actions. An e-mail will be sent to Customer with the installed maximum
throughput rates and the Client TeleSpeed Circuit to be billed. The
Customer has a 3-business day acceptance period to cancel or change the
installed service. If the Customer does not respond to cancel or change
the service, Covad will assume the installation is successful. When
TeleSpeed 144 is not ordered, but it is the fastest circuit that can be
installed, the Customer may elect to keep the Covad supplied and installed
client premise equipment n place (no additional installation required).
The Customer may also elect to replace the equipment (Covad or Customer
supplied) which may require a new installation (no charge to Customer).
10.3 CLIENT PREMISE EQUIPMENT. The Customer has a 3-business day acceptance
period to cancel or change the client premise equipment. The Customer is
responsible for changes to the client premise equipment, software &
configuration after the Covad installation is completed. Covad provides
on-line information to Customers about software and configuration upgrades
to facilitate Customer responsible upgrades.
11. BILLING.
11.1 CUSTOMER TELESPEED CIRCUIT. The Customer TeleSpeed Circuit billing will
start upon Covad's acceptance of the DS1 or DS3 from Covad's Customer
TeleSpeed WAN Circuit provider.
11.2 CLIENT TELESPEED CIRCUIT. The Client TeleSpeed Circuit billing will start
on the date that the service is successfully installed, unless the
TeleSpeed service is rejected within the 3-day Acceptance period as
defined herein.
12. CHANGE OF SERVICE: LEAD-TIME.
12.1 CHANGE OF EXISTING CUSTOMER TELESPEED CIRCUIT. As quoted.
12.2 CHANGE OF EXISTING CLIENT TELESPEED CIRCUIT. Change to or from TeleSpeed
144: 30 calendar days ARO. To change to or from TeleSpeed 144, the
Customer may need to purchase new client premise equipment and
installation. All other TeleSpeed Service Changes: 2 business days ARO.
13. CHANGE OF SERVICE: SCHEDULE, RESCHEDULE, ACCEPTANCE & PRICING.
13.1 CUSTOMER TELESPEED CIRCUIT. Scheduling, Rescheduling, Acceptance: same
as for a new Customer TeleSpeed Circuit.
A. Covad will not charge a cancellation fee for an upgrade of a Customer
TeleSpeed Circuit from a DS-1/Frame Relay to a DS-3/ATM. Installation
charges for the new circuit still apply. Customer will be charged for
both of the circuits if they are used simultaneously.
B. Covad will charge a cancellation fee for a downgrade of a Customer
TeleSpeed Circuit from a DS-3/ATM to a DS-1/Frame Relay. Installation
charges for the new circuits also apply.
13.2 CLIENT TELESPEED CIRCUIT. Scheduling, Rescheduling, Acceptance: same as
for a new Client TeleSpeed Circuit.
A. Covad will charge a fee for a Client TeleSpeed Circuit change as
stated in the current price list.
14. DISCONNECTION: LEAD TIME.
14.1 CUSTOMER TELESPEED CIRCUIT. The Customer is required to give 30 calendar
days notice to Covad to disconnect the Customer TeleSpeed Circuit. All
Client TeleSpeed Circuits must be canceled prior to disconnecting the
Customer TeleSpeed Circuit.
14. CLIENT TELESPEED CIRCUIT. Covad will cancel the Client TeleSpeed Circuit
within one business day after receipt of cancellation.
15. MOVE-CLIENT CHANGING CUSTOMER: SCHEDULING & PRICING.
15.1 CLIENT TELESPEED CIRCUIT. If a client served by Covad wishes to move
service from an existing Customer to a new Customer, Covad must receive a
cancellation order from the existing Customer and a new order from the new
Customer. Cancellation fees will be waived for the existing Customer when
the new order is received by Covad from the new Customer that:
- Has the exact same client location information
- References the existing Customer order to be canceled
NOTE: The price for a Client move that does not involve a truck roll is
the same as the price for a change of service from TeleSpeed 1.1 to
TeleSpeed 384. The price for a Client move that involves a truck roll to
configure the CPE only will be priced to Customer at dispatch pricing.
16. TERM OF CONTRACT & CANCELLATION: CIRCUITS
16.1 CUSTOMER TELESPEED CIRCUIT. The term of the contract is one year.
Cancellation of the circuit requires 30 calendar days' notice to Covad.
The circuit will be billed up to end of service date. Customer have 60
days after the billing start date to notify Covad of cancellation of the
circuit without cancellation fees. Customers must pay installation and
monthly charges for the term of contract if Covad receives notice of
cancellation AFTER 60 days, unless Covad is notified in writing of service
inadequacies and fails to rectify these inadequacies within 60 days of the
notification date. Covad will NOT refund installation and monthly
Customer TeleSpeed Circuit charges incurred within the 60-day cancellation
period. Contract becomes a month to month contract after one year.
16.2 CLIENT TELESPEED CIRCUIT. The term of the contract is one year. Customer
have 60 days after the billing start date to notify Covad of cancellation
of the circuit without cancellation fees. Customers must pay a $250
cancellation fee if Covad receives notice of cancellation AFTER 60 days,
unless Covad is notified in writing of service inadequacies and fails to
rectify these inadequacies within 60 days after receipt of the
notification date. Covad will NOT refund installation and monthly
Customer circuit charges incurred within the 60-day cancellation period.
The contract becomes a month to month contract after one year with no
cancellation charge. If the Customer cancels within the 3-day
Installation Acceptance Period, Covad will charge the Customer for
installation only.
17. TERM OF CONTRACT & CANCELLATION: EQUIPMENT
17.1 CLIENT PREMISE EQUIPMENT. Covad will issue a credit to the Customer for
the first 20 client premise equipment purchased if notification of
cancellation of Client TeleSpeed Circuits is received by Covad before the
60-day cancellation period. Covad will NOT issue a credit for any other
client premise equipment past the initial 20 purchased.
18. RETURN: EQUIPMENT
18.1 CLIENT PREMISE EQUIPMENT. Client premise equipment purchased directly
from Covad can be returned to Covad if it is unused and in its original
packing within 30 days from Covad's original shipment date. A 25%
equipment handling and restocking charge will be charged to the Customer
by Covad. Customer should call Covad Customer Care/Order Administration
to receive a Return Materials Authorization (RMA) number and to ship the
equipment back t Covad (the Customer shall pay all shipping charges
associated with this return).
19. INSIDE WIRING: PRICING
19.1 CUSTOMER TELESPEED CIRCUIT. Installation charge includes inside wire.
19.2 CLIENT TELESPEED CIRCUIT. First Hour/Minimum Charge = $88 (includes
charge for one xxxx xxxx). Each additional 15 minutes: $20. Extensive
inside wiring may require a single quoted price.
20. DISPATCH SUPPORT: PRICING
20.1 CUSTOMER TELESPEED CIRCUIT & CLIENT TELESPEED CIRCUIT. The following
charges apply when a Covad Field Service Technician is dispatched to a
Customer or Client location AT THE REQUEST AND AUTHORIZATION of the
Customer when it is determined that the fault for the problem does not lie
with Covad.
Standard Hours: 1st Hour/Min. Charge = $88; Each Additional 15 minutes;
$20
Other Hours (After hours, Weekends, Holidays): 1st Hour/Min. Charge -
$110; Each Additional 15 minutes: $25
21. COMMUNICATION: The Customer should refer to Covad's on-line Customer Care
Center for the majority of community to and from Covad. All communication
from Covad will be directed to the Customer. Scheduling of visits to the
Client site will be done by the Customer in conjunction with Covad
Customer Care. All information discussed and agreed to with the Customer
will be available to the Customer in the on-line Customer Care Center.
22. CONFIDENTIAL INFORMATION: Each party shall limit disclosure of the other
party's confidential information to employees and contractors with a need
to know. Neither party shall disclose confidential information of the
other party to any third party. Nothing herein shall supersede the terms
of any nondisclosure agreement signed by the parties.
23. CUSTOMER REPRESENTATION: Customer represents and warrants that it shall
no, in the ordinary course of its business, when using Covad's network
services, be able to identify, and distinguish between, packet data
transmissions that originate and terminate within the same state
(intrastate transmissions), and those packet data transmissions that
originate and terminate in different states (interstate transmissions),
and states that it is impractical to identify, distinguish and measure its
intrastate and interstate transmissions on Covad's network. Further,
Customer estimates (on a good faith, rough-guess basis) that more than ten
percent of all data packets transmitted on Covad's network, including
those to and from the Internet, will consist of interstate transmissions.
24. FORCE MAJEURE AND DISPUTE RESOLUTIONS: Covad shall not be responsible for
any failure to perform any obligation or provide service hereunder because
of any Act of God, strikes, work stoppage, equipment or facilities
shortages, governmental acts or directives, war, riot or civil commotion,
or any other force beyond Covad's reasonable control. The parties shall
attempt to
resolve any disputes between them without resort to litigation in court.
Customer's remedies are limited as set forth herein.
25. ENTIRE AGREEMENT; AMENDMENTS IN WRITING: This Agreement, which shall
include the Attachments and Schedules referenced herein, constitutes the
entire Agreement between the parties concerning the subject matter hereof
and supersedes any prior agreements, representations, statements,
negotiations, understandings, proposals or undertakings, oral or written,
with respect to the subject matter expressly set forth herein. Any
amendment or supplement to these Terms and Conditions shall be in writing.
COVAD COMMUNICATIONS COMPANY CUSTOMER
---------------------------------- -----------------------------------
Name Date Name Date
---------------------------------- -----------------------------------
Title Title
LIST PRICING SCHEDULE A
--------------------------------------------------------------------------------
Client TeleSpeed Monthly Charges
MAXIMUM THROUGHPUT
SERVICE NAME MONTHLY CHARGES DOWNSTREAM/UPSTREAM
--------------------------------------------------------------------------------
TeleSpeed 144 $ 90.00 144Kbps/144Kbps
TeleSpeed 384 $125.00 384Kbps/384Kbps
TeleSpeed 1.1 $195.00 1.1Mbps/1.1Mbps
TeleSpeed 1.5 $195.00 1.5Mbps/384Kbps
Client TeleSpeed Circuit One-time Charges
INSTALLATION CHARGE
------------------------------------------------------------------
EQUIPMENT
Digital Model and RJ45 Xxxx Xxxx
TeleSpeed 384 $550.00
TeleSpeed 1.1 $550.00
TeleSpeed 1.5 $550.00
TeleSpeed 144 $399.00*/$499**
SERVICE
Service installation including
provisioning of one PVC $325.00
Inside wiring from RJ45 Xxxx Xxxx
to NID (optional). $ 88.00***
* Supports 4 Ethernet devices/MAC addresses
** Supports more than 4 Ethernet devices/MAC addresses
*** First Hour/Minimum Charge. For each additional 15 minutes: $20
Client TeleSpeed Circuit Upgrade of Service One-time Charge
DESCRIPTION CHARGE
------------------------------------------------------------------
Upgrade TeleSpeed 144 to
TeleSpeed 384/1.5/1.1 $199.00
Upgrades and changes from all
other TeleSpeed services $ 99.00
Client TeleSpeed Circuit Monthly Charges
SERVICE NAME MONTHLY CHARGE
------------------------------------------------------------------
DS1/Frame Relay $ 975.00
DS3/ATM $4,000.00
Customer TeleSpeed Circuit One-time Charges
DESCRIPTION CHARGE
------------------------------------------------------------------
EQUIPMENT & INSTALLATION
DS1/Frame Relay
(includes SEU/CSU) $2,500.00
DS3/ATM $7,500.00
Volume Discount Schedule B
--------------------------------------------------------------------------------
The following Volume Discount Schedule applies to the monthly charges for
specified Client TeleSpeed Circuits only. This schedule does not apply to any
other Covad services.
- All Client TeleSpeed Circuits invoiced are counted in determining the
volume discount percentage.
- All Client TeleSpeed Circuits with the exception of TeleSpeed 144 will be
eligible to be discounted.
The discount will be reflected on each monthly Customer invoice. The applicable
discount will be applied to ALL Client TeleSpeed Circuits, other than TeleSpeed
144, that are invoiced at the end of the month. The Customer receives the next
level of discount in the first month that the volume of Client TeleSpeed
Circuits increases to the next volume level.
If the number of Client TeleSpeed Circuits invoiced in a given month decreases
(due to circuit disconnects, etc.) to a lower volume level than obtained in the
prior month, the discount rate for all Client TeleSpeed Circuits will also
decrease.
The Customer must be current on all invoices to be eligible for the Volume
Discount Program.
CLIENT TELESPEED CIRCUITS INVOICED EACH MONTH DISCOUNT PERCENTAGE APPLIED TO EACH INVOICE
1-99 0%
100-499 4%
500-999 6%
1,000-2,499 8%
2,500+ 10%
Market Development Fund Schedule C
--------------------------------------------------------------------------------
PROGRAM DETAILS
--------------------------------------------------------------------------------
PROCESS
- Covad allocates MDF based on the volume of Client TeleSpeed Circuits
ordered, installed and billed by Covad.
- Once the MDF has been allocated, it must be spent within ninety (90) days
of allocation. The process for spending the funds is as follows:
1) Channel Partner is informed monthly of MDF balance
2) Channel Partner develops market development plan and submits to Covad
for approval. Approval will require that one of the following service
marks are included in all marketing collateral: Covad Connected-TM- or
Covad Communications-TM-
3) Covad approves plan (or sends back to step 2 for revisions) and
notifies partner
4) Partner then has three choices for implementation:
A) have Covad execute/develop/produce the market development plan
details
B) execute/develop/produce the market development plan and submit
the invoice for payment to Covad (only if the entire invoice will be
covered by MDF)
C) execute/develop/produce the market development plan, pay the
invoice and submit an invoice to Covad for reimbursement (with copies of
paid invoice)
MDF USE
The Channel Partner can use their MDF towards:
- Service Description Data Sheets
- Educational Materials, Tutorial, Customer Support Documentation
- Web/Electronic Collateral
- Direct Marketing/Lead Generation
- Trade Shows and Raffles
- Print or Radio Advertising
- Billboards
- Press Releases
- Welcome Kit Development
Market Development Fund Schedule C
--------------------------------------------------------------------------------
MARKET DEVELOPMENT FUND SCHEDULE:
--------------------------------------------------------------------------------
CLIENT TELESPEED CIRCUITS INVOICED EACH MONTH DISCOUNT PERCENTAGE APPLIED TO EACH
FOR EACH BILLING LOCATION INVOICE
1-99 0%
100-499 4%
500-999 6%
1,000-2,499 8%
2,500+ 10%
EXAMPLE
--------------------------------------------------------------------------------
MONTHLY INVOICE
Client Circuit Type Price Per Circuit Number of Circuits Price
------------------- ---------------- ------------------ -----
TeleSpeed 144 $ 90 160 $14,400
TeleSpeed 384 $125 400 $50,000
TeleSpeed 1.1 $195 50 $ 9,750
--- -------
Total 610 $74,150
MONTHLY INVOICE AFTER VOLUME DISCOUNT
Client Circuit Type Price Discount % Discount Price
------------------- ----- ---------- --------------
TeleSpeed 144 $14,400 0% $14,400
TeleSpeed 384 $50,000 6% $47,000
TeleSpeed 1.1 $ 9,750 6% $ 9,165
------- -- -------
TOTAL $74,150 $70,565
MDF
Number of Client TeleSpeed Circuits: 610
Total Client TeleSpeed Circuit invoice: $70,565
MDF%: 6%
MDF accrued for the moth: $70,565 x .06 = $4,234
Covad places this $4,234 in the customer's MDF account upon payment receipt for
the monthly invoice.
Client TeleSpeed Circuit Matrix Schedule D
--------------------------------------------------------------------------------
Table A: Client TeleSpeed Circuit Acceptable Maximum Throughput Levels
TELESPEED
ACCEPTABLE
SERVICES
TeleSpeed 144
TeleSpeed 384
TeleSpeed 1.1
TeleSpeed 1.5
Table B: Client TeleSpeed Circuit Installation Matrix
CUSTOMER MAXIMUM AVAILABLE INSTALLED THROUGHPUT INSTALLED ADDITIONAL ORDER
ORDERED THROUGHPUT AT AT INSTALLATION & BILLED CUSTOMER STATUS
SERVICE INSTALLATION ACTION (1) CODE
TELESPEED DOWNSTREAM UPSTREAM DOWNSTREAM UPSTREAM TELESPEED NOTES
144 Any Any Cap at 144 Cap at 144 144 None. Some CLOSED(2)
client equip.
will only sup-
port 128 Kbps.
384 > 300 Kbps > 300 Kbps Cap at 384 Cap at 384 384 None. CLOSED
384 > 300 Kbps > 300 Kbps Cap at 384 Maximum 384 Customer may CLOSED-
elect to CUSTOMER
schedule a new VERIFY
installation
of TeleSpeed
144.
384 < 300 Kbps < 300 Kbps Maximum Cap at 384 384 Customer may CLOSED-
elect to CUSTOMER
schedule a new VERIFY
installation
of TeleSpeed
144.
1.1 > 880 Kbps > 880 Kbps Cap at 1.1 Cap at 1.1 1.1 None. CLOSED
1.1 > 880 Kbps 1.1 Cap at 1.1 Maximum 1.1 Customer may CLOSED-
elect to CUSTOMER
change ser- VERIFY
vice to Tele-
Speed 1.5 or
384, or to
schedule a new
installation
of TS 144.
1.1 < 880 Kbps > 880 Kbps Maximum Cap at 1.1 1.1 Customer may CLOSED-
elect to CUSTOMER
change ser- VERIFY
vice to Tele-
Speed 384 or
____________
(1)Covad Customer Care will always e-mail the Customer with installation detail.
(2) A status of CLOSED indicates that service is installed at acceptable levels.
A status of CLOSED - CUSTOMER VERIFY gives the Customer the opportunity to
change the order before billing begins.
to schedule a
new installa-
tion of TS 144.
1.5 > 1.2 Mbps > 300 Kbps Cap at 1.5 Cap at 384 1.5 None. CLOSED
1.5 > 1.2 Mbps < 300 Kbps Cap at 1.5 Maximum 1.5 Customer may CLOSED-
elect to CUSTOMER
change ser- VERIFY
vice to Tele-
Speed 384 or
to schedule a
new installa-
tion of TS 144.
1.5 < 1.2 Mbps > 300 Kbps Maximum Cap at 384 1.5 Customer may CLOSED-
elect to CUSTOMER
change ser- VERIFY
vice to Tele-
Speed 1.1 or
384 or to
schedule a new
installation
of TS 144.
LA METRO REGIONAL SPECIAL
SALES INCENTIVE SUMMARY OF TERMS
For all contracts received on or before 6/30/98, Covad ISP partners shall
receive the following discounts and incentives:
1. ISP WAN Circuit one-time installation shall be reduced by 1/2 off the Covad
published pricing of $2,500 for T1 and $7,500 for DS3.
2. Covad will defer billing for the ISP WAN Circuit shall be deferred until
September 1998.
3. For TeleSpeed orders received on or before July 31, 1998, installation
charges shall be reduced from the Covad published rate of $325.00 as
follows:
TeleSpeed 144 $ Waived
TeleSpeed 384 $162.50 (50% off)
TeleSpeed 1.1 $162.50 (50% off)
TeleSpeed 1.5/384 $162.50 (50% off)
All other terms and conditions shall remain the same.
COVAD COMMUNICATIONS
CO AVAILABILITY AS OF 6/12/98
COVAD CO NAME CLLI ORDERING AVAILABLE
--------------------------------------------------------------------------------
1. Anaheim, CA ANHMCA01 Now
2. Xxxxxxx Oaks, CA SHOKCA01 Now
3. Orange, CA ORNGCA11 7/9/98
4. Burbank, CA BRBNCA11 7/17/98
5. Canoga Park, CA CNPKCA01 7/17/98
6. Los Angeles, CA LSANCA07 7/17/98
7. Los Angeles, CA LSANCA11 7/17/98
8. Pasadena, CA PSDNCA11 7/17/98
9. Van Nuys, CA VNNYCA02 7/17/98
10. Huntington Beach, CA HNBHCAXH 7/31/98
11. Redondo HRBHCAXH 7/31/98
12. Rolling Hills Estate RLHLCAXF 7/31/98
13. Torrance TRNCCAXF 7/31/98
14. Artesia ARTSCAXF 7/31/98
15. Beverly Hills, CA BVHLCA01 8/6/98
16. Gardena, CA GRDNCA01 8/6/98
17. Huntington Beach HNBHCAXG 8/6/98
18. Huntington Beach HNBHCAXL 8/6/98
19. Huntington Park, CA HNPKCA01 8/6/98
20. Los Angeles, CA LSANCA08 8/6/98
21. Los Angeles, CA LSANCA10 8/6/98
22. Los Angeles, CA LSANCA12 8/6/98
23. North Hollywood, CA NHWDCA02 8/6/98
24. Reseda, CA RESDCA01 8/6/98
25. Xxxxxx HNBHCAXF 8/6/98
26. Long Beach Termino LNBHCAXT 8/6/98
27. Torrance TRANCCAXG 8/6/98
28. Long Beach Uptown LNBHCAXG 8/6/98
29. South Pasadena SPSDCA11 8/6/98
30. Los Angeles, CA LSANCA34 8/21/98
31. El Monte, CA ELMNCA01 8/21/98
32. Lomita, CA LOMTCA11 8/21/98
33. Torrance, CA TRNCCA11 8/21/98
34. Los Angeles, CA LSANCA01-03 8/21/98
35. Alhambra, CA ALHBCA01 9/1/98
36. Hollywood, CA HLWDCA01 9/1/98
37. Fullerton, CA FUTNCA01 9/7/98
38. San Xxxxx SNPDCA01 9/7/98
39. Covina COVNCAXF 9/25/98
40. Costa Mesa, A CSMSCA11 9/25/98
41. Corona Del Mar, CA CRDMCA11 10/5/98
42. Los Angeles, CA LSANCA35 10/5/98
43. Xxxxxx City CLCYCA11 10/5/98
44. Pasadena, CA PSDNCA12 10/5/98
45. Pacific Palisades PCPLCAXF 10/16/98
46. Playa Del Rey PRDYCAXF 10/16/98
47. West Los Angeles WLANCAXF 10/16/98
48. Westminster WMNSCAXF 10/16/98
49. Santa Fe Springs/Alondra NRWLCAXG 10/16/98
50. Long Beach F (HUB) LNBHCAXF 10/16/98
51. Laguna Niguel, CA LGNGCA12 10/20/98
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