Telnes, Inc. Service Level Agreement Service Metrics SLA for SDSL and T1

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1 Telnes, Inc. Service Level Agreement Service Metrics SLA for SDSL and T1 Telnes, Inc. is committed to providing the highest quality of service to our Customers. Our goal is to not only meet our Customer s expectations, but also to consistently strive to exceed them. The following guarantees are available to our eligible Broadband Customers. Overview 1. This SLA provides detailed descriptions of Metrics for Service performance and installation and is the basis for certain service level agreements between Customer and Telnes. 2. Overview Definitions Metric means the performance measures for specific Telnes function and includes the Description, Measurements Method, Objectives and Service Credits, if any. Description means the specific function measured. Measurement Method means the method of determining Telnes s performance and the frequency of the measurement. Objective means the target performance Customer expects Telnes to achieve, as outlined herein. Service Credit means the amount Customer may request of Telnes where applicable, if Telnes does not meet the Objective in the prescribed period. 3. Exceptions to Telnes s SLA Obligations. Notwithstanding anything in this SLA to the contrary, Telnes will only issue Service Credits to Customer upon its failure to meet Objectives for certain Metrics. However, Telnes will not be liable for Service Credits in the following situations and as otherwise described herein: a. prior to the successful completion installation (i.e. the billing start) for a Customer circuit, b. interruptions of Service caused by Customer, or any third party other than Telnes or Telnes s authorized agents or suppliers, the failure or

2 malfunction of equipment or systems not owned or controlled by Telnes, incumbent local exchange carrier (ILEC) infrastructure. c. interruptions or delays due to Customers CPE whether provided by Telnes or others, d. interruptions during period of scheduled maintenance or network upgrades, e. interruptions during periods when Customer elects not to release its Service for testing and /or repair, f. interruptions during any period when Customer releases a Service for maintenance or rearrangement purposes, or for implementation of a Customer order or request, g. interruptions during any period when Telnes or its agents are not afforded access to the Customer premises where Services are terminated, h. interruptions not reported to Telnes or where there is trouble reported, but no trouble found by Telnes, or i. Force Majeure events. Telnes will nevertheless use it reasonable efforts to seek a prompt resumption of Service and /or resolution of transmission problems in those circumstances where such efforts have a reasonable likelihood of achieving a resumption of Service. 4. Except for Installation Interval Service Credits, total service credit provided by Telnes in a given month application to a Customers circuit may not exceed twenty percent (20%) of the monthly recurring fees charged by Telnes during such month for such Customer circuit. Any service credits in excess of twenty percent (20%) will not carry over into later invoices. Credits provided by Telnes hereunder shall not be cumulative for any single failure. 5. Severe and Chronic Problems. End User Circuits are experiencing severe or chronic problems. Severe Problem: An End User Circuit is experiencing a Severe Problem if the aggregate time an End User experienced a Service Outage is in excess of twelve (12) hours for any T1 Service in any calendar month and in excess of forty eight (48) hours for any IDSL/SDSL services in any calendar month. Chronic Problem: A particular End User Circuit is experiencing a Chronic Problem if (a) at any time the End User Circuit experienced a Severe Problem, (b) Telnes did not recommend that Customer disconnected the End User Circuit at the time of the Severe Problem, and (c) a Customer receives the maximum service availability credit under this SLA for three consecutive months for the particular End User Circuit. Service Credit: If the End User Circuit experiences a Chronic Problem, which must include (a) (b) and (c) listed above in Chronic Problem, or if Telnes has exhausted all efforts to resolve the problem and has declared the problem to be chronic, End User or

3 Telnes may terminate or disconnect the impacted End User Circuit. End User will be eligible for a Service Credit in the amount of any assessed early termination fees. End User will be liable for charges incurred prior to the termination of service (including, without limitation, service set-up, professional installation and missed appointment). General Definitions Telnes Network: Telnes Network means the infrastructure, facilities, and equipment controlled or utilized by Telnes to provide Services. The Telnes Network excludes Customer Premises Equipment ( CPE ), inside wiring at Customer s premises, and any network infrastructure, facilities, or other components not owned, leased, operated or controlled or utilized by Telnes. Figure 1: Telnes Network Boundaries. Telnes IP PoP: A Telnes IP PoP is defined as that part of the Telnes Network that connects to the public Internet. Telnes Service Area: Telnes Service Area is a Telnes designed group of Central Offices within a geographic area. IP Region: IP Region is the set of Telnes Service Areas that are serviced by a particular IP PoP. Telnes at its sole discretion, change the number and configuration of IP Regions and the assignment of Telnes Service Areas to particular IP Regions. Telnes may serve individual Customer circuit from an IP PoP in a different IP Region. 6. Service Outage: There is a Service Outage on a specific Customer Circuit when any of the following are true: a. IP packets cannot be exchanged between the Customer NID and any IP address (of Telnes choice) on the public Internet via Telnes Network. b. For a given 15 minute period, if 30 consecutive Round Trip Delay measurements performed at 30 seconds intervals shows a delivery rate of less than 90%. c. For a given 15 minute period, if 30 consecutive Round Trip Delay measurements performed at 30 second intervals shows the average delay is

4 five times the objectives set forth regarding Average Round Trip Delay (i.e., 5X110ms = 550 ms). A Service Outage excludes any failures to which any of the items listed in Section 3 above have contributed in whole or in part. 7. Claims Process It is Customer s responsibility to identify, request and document all valid SLA claims and corresponding Service Credits. To be eligible for Service Credits, Customer must first report service availability, delay, or delivery efforts to Telnes. Telnes will notify Customer of its resolutions of the reported event. Customer must request any applicable service credits by the 15 th day of the month following the month in which (a) the reported incident was resolved (in the case of credit for Average Service Availability, Mean Time to Repair, Average Round Trip Delay, and Average Data Delivery credits) or (b) the Billing Start Date of the affected Customer Circuit occurred (in the case of Installation Interval credits). Telnes will use reasonable commercial efforts to verify Customer s request within forty five (45) days of a complete and properly submitted credit request, and will apply any applicable Service Credits, as determined at Telnes s sole discretion, to Customer s invoice issued on the first day of the month following Telnes s forty five (45) day review. Customer may not, under any circumstances, submit credit requests beyond the timeframes specified above; Telnes will not accept late credit requests. Requests for Service Credits must be submitted to Request must include Customer Name, type of service credit and amount requested. Customer must be current in all of its invoices to be eligible for any credits and may not withhold payments based on SLA credit requests.

5 Table 1 Service Metrics Metric Description Measurement Method Objective Service Credit If Applicable Mean Time to Repair End User Circuits Outage for Standard IDSL/SDSL and Dedicated Loop ADSL Services Average time, in hours, to restore service to End Users after a failure, averaged on a monthly basis across all Customer End User Circuits within a particular Service Family (e.g., Standard IDSL/SDSL) impacted by Service Outages MAINTENANCE Service Outage is defined in the definitions section of this document. The Mean Time to Repair End User Circuit Outages calculation is measured each reporting calendar month as follows: sum of all End User Circuit Outage Time within a particular Service Family within the calendar month total number of End User Circuits within a particular Service Family impacted by Service Outages within the calendar month (Note: if any End User Circuit experiences more than one (1) Service Outage, each occurrence will be counted separately.) End User Circuit Outage Time is equal to the sum of the time duration, in minutes, for each Standard End User Circuit within a particular Service impacted by the Service Outage from the time a trouble ticket is opened by Telnes and/or Customer to the time the trouble ticket is closed by Telnes, excluding Saturdays, Sundays, federal holidays, and any period that Telnes waits for a response, availability, or action from Customer or End User, for each End User Circuit related trouble ticket. This calculation further excludes any period Telnes spends monitoring the affected End User Circuit after Telnes has restored service to the affected End User Circuit. Twenty-four (24) hours (excluding weekends and Federal Holidays) for Standard IDSL/SDSL End User Circuits thirty-six (36) hours (excluding weekends and Federal Holidays) for Dedicated Loop ADSL End User Circuits If Mean Time to Repair Standard IDSL and SDSL End User Circuits Outage is in excess of twenty-four (24) hours, Customer will be eligible for a Service Credit in an amount equal to ten percent (10%) of the total monthly recurring charges for each Standard IDSL/SDSL End User Circuit affected by a Service Outage during the reporting calendar month. If Mean Time to Repair Dedicated Loop ADSL End User Circuits Outage is in excess of thirty-six (36) hours, Customer will be eligible for a Service Credit in an amount equal to ten percent (10%) of the total monthly recurring charges for each Dedicated Loop ADSL End User Circuit affected by a Service Outage during the reporting calendar month

6 Metric Description Measurement Method Objective Service Credit If Applicable Mean Time to Repair End User Circuits Outage for Enterprise IDSL/SDSL, and T1 Services). Average time, in hours, to restore service to End Users after a failure, averaged on a monthly basis across all Customer End User Circuits within a particular Service Impacted by Service Outages Service Outage is defined in the definitions section of this document. The Mean Time to Repair End User Circuit Outages calculation is measured each reporting calendar month as follows: sum of all End User Circuit Outage Time within a particular Service Family within the calendar month total number of End User Circuits within a particular Service Family impacted by Service Outages within the calendar month (Note: if any End User Circuit experiences more than one (1) Service Outage, each occurrence will be counted separately.) End User Circuit Outage Time is equal to the sum of the time duration, in minutes, for each End User Circuit within a particular Service Family impacted by the Service Outage from the time a trouble ticket is opened by Telnes and/or Customer to the time the trouble ticket is closed by Telnes, excluding any period that Telnes waits for a response, availability, or action from Customer or End User, for each End User Circuit related trouble ticket. This calculation further excludes any period Telnes spends monitoring the affected End User Circuit after Telnes has restored service to the affected End User Circuit. Eighteen (18) hours (including weekends and federal holidays) for Enterprise IDSL/SDSL End User Circuits two and a half (2.5)hours (including weekends and federal holidays) for T1 End User Circuits If Mean Time to Repair Enterprise IDSL/SDSL End User Circuits Outage is in excess of eighteen (18) hours, Customer will be eligible for a Service Credit in an amount equal to twenty percent (20%) of the total monthly recurring charges for each Enterprise IDSL/SDSL End User Circuit affected by a Service Outage during the reporting calendar month. If Mean Time to Repair T1 End User Circuits (includes T1 Circuits) Outage is in excess of two and a half (2.5) hours, Customer will be eligible for a Service Credit in an amount equal to ten percent (10%) of the total monthly recurring charges for each T1 End User Circuit affected by a Service Outage during the reporting calendar month. Severe and Chronic Problems for IDSL/SDSL Services, SDSL Services, and T1 Services. End User Circuits are experiencing severe or chronic problems Severe Problem: An End User Circuit is experiencing a Severe Problem if the aggregate time an End User experienced a Service Outage is in excess of: (1) twelve (12) hours for any T1 Service in any calendar month, and (3) forty eight (48) hours for any IDSL/SDSL Service in any calendar month. Chronic Problem: A particular End User Circuit is experiencing a Chronic Problem if (a) at any time the End User Circuit experienced a Severe Problem, (b) Telnes did not recommend that Customer disconnect the End User Circuit at the time of the Severe Problem, and (c) a Customer receives the maximum service availability credit under this SLA for three (3) consecutive months for the particular End User Circuit. Not applicable If the End User Circuit experiences a Chronic Problem, Customer or Telnes may terminate or disconnect the impacted End User Circuit. Customer will be eligible for a Service Credit in the amount of any assessed early termination fees. Customer will still be liable for charges incurred prior to the termination of service (including, without limitation, service set-up, professional installation and missed appointment charges).

7 Table 1 Service Metrics Metric Description Measurement Method Objective Service Credit If Applicable SERVICE PERFORMANCE Average Service Availability for IDSL, SDSL, and T1 Service Percentage of minutes in a calendar month a particular Service did not experience a Service Outage (e.g., all of Customer s T1 Services). Average Service Availability is measured performance of Telnes network between the End User s NID and any IP address (of Telnes s choice) on the public Internet via the Telnes Network. Specifically, Average Service Availability is a percentage calculated as: sum of service outage duration 1 - ( ) * 100 total available time Where: sum of service outage duration is the total of the outage time, in minutes, of all End Users Circuits within a particular Service in service affected by Service Outages during the reporting calendar month. Outage time begins when the Customer or Telnes opens a trouble ticket and ends when Telnes notifies the Customer that the problem has been resolved, excluding hold time due to Customer or End User(s). total available time = (number of End User Circuits within a particular Service in service on the last day of the calendar month proceeding the reporting month) * ((days in the reporting calendar month) * (minutes per day)). For IDSL and SDSL End User Circuits the objective is ninety-nine and nine-tenths percent (99.9%). For T1 End User Circuits the objective is ninety-nine and ninety-nine one hundredths percent (99.99%). For each reporting calendar month in which Telnes fails to achieve the Average Service Availability, Customer will be eligible for a Service Credit in an amount defined by the tables below: IDSL /SDSL Availability Credits % Average Service Availability Credit % of the total monthly recurring charges for all End User Circuits impacted by Service Outages 99.5% % 5% Less than 99.5% 10% % Average Service Availability T1 Availability Credits Credit % of the total monthly recurring charges for all End User Circuits impacted by Service Outages 99.90% % 5% Less than 99.90% 10%

8 Table 1 Service Metrics Metric Description Measurement Method Objective Service Credit If Applicable SERVICE PERFORMANCE - Continued Average Data Delivery for IDSL, SDSL, and T1 Services. Percentage of IP packets that Telnes guarantees will be sent and received on an End User Circuit Within twenty-four (24) hours following the opening of a trouble ticket by Customer for suspected trouble relating to the Data Delivery, Telnes will, provided Customer and End User are available for cooperative testing, initiate measurement of the actual data delivery for the affected service covered by the trouble ticket in accordance with the following: Data Loss is as the number of IP packets unsuccessfully transmitted between the End User s NID and a Telnes IP PoP in a different IP Region through the Telnes Network in a period, provided that the only traffic on the End User Circuit during the test is the test traffic and assumes that the transfer rate of End User traffic during the test must be less than or equal to the service speed transmission rate. Data Loss is specifically calculated as described below. The Average Data Delivery on an End User Circuit is an average of the Delivery measurements conducted on that End User Circuit. Average Data Delivery is specifically calculated as described below. Ninety-nine and ninetenths percent (99.9%) for IDSL, SDSL, SDSL and T1 Services. For each End User Circuit whose Average Data Delivery as measured according to the measurement method does not equal or exceed the ninety-nine and nine-tenths percent (99.9%) Average Data Delivery Objective, Customer will be eligible for a Service Credit in an amount equal to ten (10%) percent of the total monthly recurring charges for the affected End User Circuit. The Data Delivery measurement will be performed using ICMP pings sent from a Telnes IP PoP in a different IP Region to the end user CPE. A minimum of 100 packets will be sent for every measurement and 2 sets of measurements will be taken each day spaced 4 hours apart for 5 consecutive days. The end user CPE must be a Telnes certified CPE and/or meet Telnes s qualification standards. The CPE must also be configured with an addressable IP address and powered on. Data Loss is equal to: (total number of pings sent to CPE - total number of successful replies from CPE) Average Data Delivery is: [1 Data Loss/(total number of pings sent to CPE)] * 100 Note: Average Data Delivery is not measured when the End User Circuit is experiencing a Service Outage.

9 Table 1 Service Metrics Metric Description Measurement Method Objective Service Credit If Applicable SERVICE PERFORMANCE - Continued Average Round Trip Delay for IDSL, SDSL, and T1 Services Interval of time, in milliseconds, it takes for an IP packet to travel roundtrip on an End User Circuit within Telnes s Network Boundary Within twenty-four (24) hours following the opening of a trouble ticket by Customer reporting suspected network trouble with round trip delay, Telnes will, provided Customer and End User are available for cooperative testing, measure the Average Round Trip Delay for the affected End User Circuit. The Average Network Round Trip Delay measurements will be performed through a cooperative test between Telnes, Customer, and End User, is measured within the Telnes Network boundaries, using Internet Control Message Protocol (ICMP) pings sent from a Telnes IP PoP in a different IP Region, selected by Telnes, to the end user CPE and consist of the following: One hundred ten (110) milliseconds roundtrip for IDSL, andt1 Services. If the Average Round Trip Delay measured according to the measurement method does not meet the Objective, Customer will be eligible for a Service Credit in an amount equal to ten (10%) percent of the total monthly recurring charges for the affected End User Circuit. A minimum of 100 packets will be sent for every measurement and 2 sets of measurements will be taken each day spaced 4 hours apart for 5 consecutive days. The Average Round Trip Delay is then calculated as the average of all measurements over the five (5) day period. The End User Circuit to be tested must be unloaded with the exception of test traffic. The End User CPE must be a Telnes certified CPE and/or meet Telnes s qualification standards. The CPE must also be configured with an addressable IP address and powered on. Each individual Round Trip Delay measurement is the roundtrip time in milliseconds ( ms ) for an IP Packet to travel between the End User s CPE and a Telnes IP PoP in a different IP Region. Note: Average Network Round Trip Delay is not measured when the End User Circuit is experiencing a Service Outage.

10 Metric Description Measurement Method Objective Service Credit If Applicable Installation Installation Interval for IDSL, SDSL, and T1 Services Number of calendar days from date of Customer s submission of a valid, serviceable order for an End User Circuit to date of successful installation of the Service For completed, End User Circuits on which billing has commenced, Installation Interval is calculated as the number of whole calendar days between the date Telnes received the End User Circuit order from Customer and the Billing Start Date for such End User Circuit order. This calculation excludes: (a) any period that Telnes waits for a response, availability, or action from Customer or End User, (b) any period that Telnes waits to install the End User Circuit resulting from Customer or End User failure to respond, unavailability, lack of access to End User s facilities, change of requested installation date, or other action or inaction, or (c) any period resulting from Force Majeure Events. In the event Telnes fails to meet an installation interval due to problems with ILEC facilities (e.g.., LEC special construction needed or ILEC CO wiring problem), lack of inside wiring, End User missed appointment, Customer has agreed to provide Customer Circuits and they have not been provided, or any other reason outside of Telnes s sole control, then, such any delay related to such problem with the installation will be excluded from the Installation Interval calculation. Thirty (30) calendar days for IDSL, SDSL, SDSL VOA and T1 Services. If Telnes fails to meet the Installation Interval Target for an End User Circuit, Customer will be eligible for a Service Credit (the Installation Interval Credit ) according to the following table for the affected Service, once said Service is installed: If Installation Credit is: Interval is: Greater than 30 calendar days and less than 45 calendar days Greater than 45 calendar days Fifty percent (50%) of the first whole month s monthly recurring charge for that End User Circuit One hundred percent (100%) of the first whole month s monthly recurring charge for that End User Circuit If the Installation Interval is greater than 45 calendar days, Customer may cancel the order for the affected Service, without cancellation liability; provided the cancellation order is placed at least forty-eight (48) hours prior to Telnes delivering to Customer the delayed Service.

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