Exhibit 10.19
Level 3 EnabledSM Partner Addendum
This Level 3 Enabled Partner Addendum (the "Addendum") is entered into
this 14th day of July, 2004, by and between Level 3 Communications, LLC ("Level
3") and Video Internet Broadcasting Corp. dba HomeNet-USA, ("Customer"). This
Addendum modifies the following agreements:
Master Service Agreement between Level 3 Communications, LLC and Video
Internet Broadcasting Corp. dba HomeNet-USA dated July 14, 2004.
(as amended and collectively, the "Agreement"). Capitalized terms used
but not defined herein shall have the meanings set forth in the Agreement.
Recitals
Level 3 has developed and is in the process of implementing various
programs pursuant to which certain selected parties will receive benefits in
order to assist in the marketing and sale of services which utilize Level 3
Services (the "Program");
One component of the Program entails increased levels of discount for
certain Services which are offered in exchange for various levels of purchases
made by participants in the Program;
Customer desires to participate in the Program, and Level 3 desires to
have Customer as a participant in the Program.
In consideration whereof, the parties hereby agree as follows:
1. Program Level.
The Program Levels are based on monthly recurring charges for the Services.
There are four (4) Program Levels: Authorized, Bronze, Silver and Gold.
Customers in the Bronze, Silver or Gold levels may have access to special price
discounts and other benefits.
The Program Purchase Levels will be determined only through Customer Orders
submitted and accepted by Level 3 after the date of this Addendum (Customer's
existing commitments or purchases, if any, shall not be included in determining
whether Customer qualifies for a specific the Program Level). Level 3's billing
records will be used to determine Customer's Program Level.
Upon execution of this Addendum, Customer shall be placed in the Bronze Program
Level.
(a) Maintaining the Bronze Program Level Status.
In order to maintain its status in the Bronze Program Level, Customer must (in
the one-year period following execution of this Addendum) achieve monthly
recurring charges as set forth in the following table. In the event that
Customer's qualifying monthly recurring charges are not at the level required in
each of the months indicated, Customer shall be downgraded to the "Authorized"
Program Level and may no longer have access to the price discounts and other
benefits available to "Bronze" Program Level participants.
- --------- ---------------- ----------------- ----------------- -----------------
3rd through 5th 6th through 8th 9th through 11th 12th through last
Month (MRC) Month (MRC) Month (MRC) Month (MRC)
- --------- ---------------- ----------------- ----------------- -----------------
- --------- ---------------- ----------------- ----------------- -----------------
Bronze $ ** $ ** $ ** $ **
- --------- ---------------- ----------------- ------------------ ----------------
After twelve months following the execution of this Addendum, Bronze Program
Level Customers must maintain the $__________ minimum qualifying monthly
recurring charge.
(b) Changes in Program Levels based on Qualifying MRC.
If Customer's qualifying monthly recurring charges for Services exceed the
Minimum Monthly Recurring Charge shown below, Customer will be upgraded to
either the Silver or Gold Program Level in the next following calendar month:
------------------- --------------------------------------------
Program Level Program Purchase Level
(Minimum Monthly Recurring Charge)
------------------- --------------------------------------------
Gold $ **
------------------- --------------------------------------------
Silver $ **
------------------- --------------------------------------------
Discounts and/or pricing for the new Program Level will apply to Customer's
monthly recurring charges in the following month and thereafter for as long as
Customer maintains the Minimum Monthly Recurring Charges for such Program Level.
If Customer's monthly recurring charges fail to meet the Minimum Monthly
Recurring Charges required for the Program Level in any given calendar month,
Customer's Program Level may be reduced accordingly (and thereafter Customer
shall be entitled to the pricing and other terms associated with such Program
Level). 2. Term. The term of this Addendum (the "Program Service Term") shall
commence upon execution hereof and end two (2) years thereafter. The Program
Service Term shall be automatically extended on a month-to-month basis
thereafter (which extended Program Service Term may be terminated by either
party upon 30 days' written notice to the other party).
3. Training & Certification Commitment. Customer must meet the minimum
certification level associated with its selected Program Level (the "Program
Training & Certification Commitment") on or before the sixth month following
execution hereof (or achievement of the Silver or Gold Program Levels), as set
forth below:
-------------------------------------------------------------
Minimum Training & Certification
--------------- -------------------------------------------------------------
Program Level # of Sales # of Sales # of Order
Certifications Engineering Administration
Certifications Certifications
--------------- ------------------- --------------------- -------------------
Gold 6 6 1
--------------- ------------------- --------------------- -------------------
Silver 3 3 1
--------------- ------------------- --------------------- -------------------
Bronze 1 1 1
--------------- ------------------- --------------------- -------------------
In the event that Customer has not met the minimum Program Training &
Certification Commitment within the timeframe set forth above, Level 3 may (upon
written notice to Customer), at Level 3's option, reduce Customer's Program
Level appropriately. If Customer has failed to satisfy the Bronze Program
Training and Certification Commitment within the timeframe set forth above,
Level 3 may terminate this Addendum and/or the pricing contemplated hereby.
3. Funnel Reporting Commitment. Customer must provide timely and accurate
information which describes Customer's expected purchases on a monthly basis
("Sales Funnel Reports"). The Sales Funnel Reports shall include all anticipated
purchases, including purchases which are less than 100% probable. The Sales
Funnel Reports will be provided in the form requested by Level 3, which may
include verbal, written or electronic reporting.
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.
5. Tier 1 Support Commitment. Customer must provide a customer support
capability which will allow its own end-customers to contact Customer at any
time (24-hours a day, 365 days a year) ("Tier 1 Support"). Tier 1 Support shall
include:
- Installation and service provisioning inquires, such as office
administrator functions, user "moves, adds, changes &
deletes", and password resets
- Service management and service disruption inquires, including
triaging of problems (between WAN, LAN or application
problems) and escalating only the appropriate problems to
Level 3
- Billing inquires
- Network service performance inquiries
- Project management responsibility for any on-site break/fix
initiatives
Customer may elect to provide Tier 1 Support directly or to contract with a
third party. The cost of providing Tier 1 Support, whether provided directly or
through a third party, shall be borne by Customer.
6. Pricing Discounts. During the Program Service Term, certain of Customer's
monthly recurring charges shall be discounted as set forth in the "Pricing
Sheets" attached hereto. Discounts may be stated as a percentage discount off of
Level 3's wholesale list prices as set forth in each such Pricing Sheet. Level 3
reserves the right to modify the discount structure, or any Pricing Sheet,
applicable to any Service at any time in its sole discretion. Level 3 may
further supply additional Pricing Sheets for other Level 3 Services. All new
Pricing Sheets or changes to existing Pricing Sheets may be communicated through
the Partner Portal or otherwise, as determined by Level 3. Customer acknowledges
that the Pricing Sheets and the information contained therein are confidential
information and may not, under any circumstances, be shared with third parties
(including Customer's end users or prospects).
7. Marketing Development Funds. At its discretion, Level 3 may make available
Marketing Development Funds ("MDF") for use by Customer to promote Level 3's
Services. These funds are provided by Level 3 in its sole and absolute
discretion, and are subject to rules and procedures determined by Level 3 from
time to time in its sole and absolute discretion.
8. Termination.
(a) Level 3 retains the right to modify or discontinue the Program (or any
component thereof) at its discretion at any time by providing 30 days' prior
written notice to Customer. In the event that (1) Level 3 terminates Customer's
participation in the Program or discontinues the Program, or (2) Customer
reasonably determines that any modification, restriction or limitation of the
Program or Customer's participation in the Program has materially and adversely
impacted the value of Customer's continued participation in the Program,
Customer may withdraw from the Program without penalty, at which time this
Addendum shall be terminated.
(b) In the event that Level 3 terminates Customer's participation in the Program
because Customer has failed to abide by the terms of the Program and has not
cured such failure within 30 days after written notice thereof from Level 3, or
in the event that Customer breaches this Addendum and fails to cure such breach
within the times set forth in the Agreement, then Level 3 may elect to (i)
terminate this Addendum in its entirety, or (ii) discontinue offering the
discounts that would otherwise be applicable to Customer Orders submitted
hereunder.
(c) Upon termination of this Addendum for any reason, (i) the discounted rates
for Service shall cease to be applicable to new orders placed by Customer with
Level 3; (ii) Customer shall cease use of any Marketing Materials; and (iii) any
other rights or privileges granted to Customer hereunder shall immediately
cease. Customer's rates for Service already ordered under the terms of this
Addendum shall be governed by the rates for Service set at the time the Services
were ordered for the remainder of the Service Term.
(d) In the event of a failure by Customer to pay amounts due and owing under the
Agreement, Customer hereby agrees that Level 3 may (if Level 3 so desires in its
sole and absolute discretion) contact, communicate with and solicit (or refer
such end users to third parties for solicitation), any or all of Customer's end
users to make appropriate arrangements for the discontinuance or continuation of
services. Customer expressly agrees that Level 3 shall have no liability to
Customer whatsoever for initiating or continuing such communication or
solicitation. Notwithstanding the foregoing, (i) Customer and Level 3 each agree
and acknowledge that Customer's end users are not and shall not be considered to
be third-party beneficiaries of this Addendum or the Agreement, and (ii) Level
3's actions in initiating or continuing communications with Customer's end users
shall in no way affect Customer's contractual obligations to Level 3 under the
Agreement or this Addendum.
9. License Grant. Level 3 hereby grants to Customer, during the term of this
Agreement, a non-exclusive, non-transferable, non-sublicenseable right and
license in the United States to use, reproduce and distribute any marketing
materials ("Marketing Materials") and user manuals, specifications and other
documentation detailing the Services offered by Level 3 (collectively, the
"Service Specifications") provided by Level 3 hereunder in connection with its
participation in the Program; provided, however, that Customer shall only be
permitted to distribute the Service Specifications and Marketing Materials to
end users and potential end users seeking services from Customer. Customer shall
remove all of Level 3's trademarks, service marks, trade names and logos from
the Marketing Materials and Service Specifications prior to distributing them to
third parties. Except as otherwise set forth in this section, Customer shall not
make any modifications to the Service Specifications without Level 3's prior
written approval. Level 3 Communications, Inc. shall retain all right, title and
interest, including all intellectual property rights, in and to all Marketing
Materials and the Service Specifications provided by Level 3. By way of
clarification, the works containing the modifications made by Customer to the
Marketing Materials and Service Specifications shall be owned by Level 3
Communications, Inc. as a work made for hire. To the extent such modified
Marketing Materials and Service Specifications may not be considered a work made
for hire, Customer assigns to Level 3 Communications, Inc. all right, title and
interest in the modified Marketing Materials and Service Specifications.
10. Partner Portal. The terms and conditions of this Section 10 shall only be
applicable to Customer's access to and use of Level 3's online Partner Portal
(the "Partner Portal"). The Partner Portal is an online web portal that provides
Customer with access to reporting, pricing, and Marketing Materials and online
ordering of certain Level 3 Services.
(a) Authorized Users.
(i) Customer may enroll for access to the Partner Portal by
signing and returning a completed Authorized User Access Form
as designated by Level 3, a copy of which is available from
Level 3 upon request, for each individual who is authorized to
access and use the Partner Portal on behalf of Customer.
Customer shall have the right to add or delete Authorized
Users from time to time at Customer's discretion by submission
to Level 3 of the appropriate form(s) designated by Level 3
and available upon request. Level 3 will send written
confirmation (via e-mail) of its receipt of such written
request, and will implement such additions, deletions or
changes by close of business on the second (2nd) business day
after receipt of such written request.
(ii) Customer agrees that the person using the Partner Portal
username and password is the person assigned to that username
and password and has the access rights and authority to bind
Customer (the "Authorized User") consistent with the access
rights and authority assigned by Customer to that Authorized
User in the applicable Authorized User Access Form.
(iii) Customer shall be responsible for the confidentiality and use
of all Partner Portal user name(s), password(s) and other
security data, methods and devices that may be provided by
Level 3 to Customer from time to time for use by Authorized
Users. Customer shall immediately notify Level 3 if there is
any unauthorized use of Customer's username(s), password(s)
and other security data, methods or devices.
(b) Change, Suspension or Termination of the Partner Portal. Level 3
may, at any time and without notice, change, modify and/or alter the Partner
Portal, including, without limitation, the functionality of the Partner Portal
and the Service available for ordering by Customer therein; provided, however,
that Level 3 shall use commercially reasonable efforts to notify Customer of
such changes, additions or deletions. In addition, Level 3 may, without cause,
suspend or terminate Customer's access to the Partner Portal or otherwise
discontinue the Partner Portal, in whole or in part, upon written notice to
Customer.
(c) Proprietary Rights. Customer agrees that Level 3's Partner Portal
is the property of Level 3. Customer agrees not to use Level 3's Partner Portal
other than for its intended use and, in no event, shall Customer provide access
to the Partner Portal to any person other than an Authorized User.
(d) Ordering Service Through the Partner Portal. This Section 10(d)
shall be applicable to Customer's submission of Customer Orders to Level 3 via
the Partner Portal.
(i) Without limiting the generality of Section 10(a)(ii) above,
Customer acknowledges and agrees that any Customer Order for
Service submitted via the Partner Portal by an Authorized User
shall constitute a valid and binding Customer Order of
Customer (subject to the same terms and conditions for all
Customer Orders under the Agreement), and Customer shall be
responsible for any and all charges associated with such
Customer Order.
(ii) Level 3 shall confirm the submission of a Customer Order by
forwarding to Customer via e-mail a "Confirmation" of the
Customer Order within one (1) business day of receipt of the
Customer Order via the Partner Portal. In the event Customer
does not receive a Confirmation within such time frame,
Customer should contact its Level 3 account representative. If
the Confirmation incorrectly states any of the terms that
Customer believes are applicable to its Customer Order or
refers to a Customer Order that is improper, incomplete or
otherwise submitted in error, Customer shall deliver written
notice of its objection to the Confirmation within two (2)
business days following Level 3's delivery of the
Confirmation. In the event that an objection to a Confirmation
is delivered to Level 3 within such two (2) business day
period, then (x) the Customer Order shall be deemed rescinded
by Customer and (y) the parties shall confer in an effort to
resolve, if applicable, any incorrect or incomplete term. If
no objection to the Confirmation is received by Level 3 before
the expiration of this two (2) day timeframe, the Customer
Order shall be deemed correct and submitted by Customer to
Level 3 for consideration.
(iii) Both Customer and Level 3 agree that the electronic order
process (as more particularly described in this Section 10(d))
within the Partner Portal creates a valid and binding Customer
Order between Level 3 and Customer.
11. Remaining Terms Unaffected. Unless specifically modified hereby, the
terms, conditions and provisions contained in the Agreement shall
remain in full force and effect, and shall continue to be applicable to
the Service purchased by Customer.
Level 3 Communications, LLC Video Internet Broadcasting Corp.
dba HomeNet-USA
By: /s/ S Trimble By: /s/ Jonathan A. Moore
Title: V P Legal Title: Chief Technical Officer
PRICING SHEET - Internet AdvantageSM Services
Effective date: February 17, 2004
Partners will receive preferential price discounts for Level 3's Internet
Advantage services.
- ---------------------------------------- --------------------------------------
Level 3 Enabled Partner Tier Discount Off of MRC for Qualifying
Internet Advantage Products
- ---------------------------------------- --------------------------------------
Bronze 5%
- ---------------------------------------- --------------------------------------
Silver 10%
- ---------------------------------------- --------------------------------------
Gold 15%
- ---------------------------------------- --------------------------------------
The following Level 3 services are Qualifying Internet Advantage Products: o
Fixed Price DS1 Service Monthly Recurring Charges o DS1 Backup Service Monthly
Recurring Charges o Fixed Price Multi-DS1 Service Monthly Recurring Charges o
Fixed Price Backup Multi-DS1 Service Monthly Recurring Charges o Fixed Price DS3
Service Monthly Recurring Charges o Committed Date Rate ("CDR") with Burst for
DS3 Service Monthly Recurring Charges o CDR with Burst for backup DS3 Service
Monthly Recurring Charges o Rate Limiting for DS3 Service Monthly Recurring
Charges o Fixed Price OC3 Service Monthly Recurring Charges o CDR with Burst for
OC3 Service Monthly Recurring Charges o Usage and Non-Usage Based OC12 and OC48
Service Monthly Recurring Charges o Usage and Non-Usage Based Fast Ethernet
Service Monthly Recurring Charges o Usage and Non-Usage Based Gigabit Ethernet
Service Monthly Recurring Charges o Frame Relay DS1 Handoff Service Monthly
Recurring Charges o Frame Relay DS3 Handoff Service Monthly Recurring Charges
The discount shall be provided only with respect to the charges listed above;
the following charges (without limitation) shall not be discounted: o Activation
fees or installation charges o Charges for Quality of Service (Congestion
Priority Service) Feature o Charges for Customer Premise Equipment o Charges for
Advanced Services, including Primary DNS 10-Pack, Secondary DNS 10-Pack, Usage
Reporting, Network News Feed (initial), Packet Filtering, BGP4 Routing, Primary
DNS 10-Pack (additional). Secondary DNS 10-Pack (additional), and Network News
Feeds.
Discounts are stated off of Level 3's wholesale list price, which is subject to
change at any time at the sole discretion of Level 3. Discounts are available
only on new orders and will not be applied retroactively or on existing spending
with Level 3 (Level 3 does not "re-price the base").
PRICING SHEET - (3)Center(R) Colocation Services
Effective date: April 5, 2004
Partners will receive preferential price discounts for Level 3's Colocation
services. Note that pricing for cabinets does not include power.
- ---------------------------------------------------------------------
Monthly Recurring Charge List Prices MRC per
- ---------------------------------------------------------------------
Level 3 List Cab Pricing $** cab
- ---------------------------------------------------------------------
Level 3 List Suite Pricing $** square foot
- ---------------------------------------------------------------------
Level 3 List Power 120V AC $** amp
- ---------------------------------------------------------------------
Level 3 $** amp
- ---------------------------------------------------------------------
Level 3 List Power 48V DC $** amp
- ---------------------------------------------------------------------
- --------------------------------------------------------------------------------
Gold, Silver & Bronze Prices MRC per Discount
- --------------------------------------------------------------------------------
See Table See Table
Level 3 Partner Cab Pricing by City cab by City
- --------------------------------------------------------------------------------
Level 3 Partner Suite Pricing ** square foot **
- --------------------------------------------------------------------------------
Level 3 Partner Power 120V AC $** amp **
- --------------------------------------------------------------------------------
Level 3 Partner Power 208V AC $** amp **
- --------------------------------------------------------------------------------
Level 3 Partner Power 48V DC $** amp **
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------
Non-Recurring Charge List Prices NRC per
- ---------------------------------------------------------------------
Level 3 List Cab Pricing $** ____ cab
- ---------------------------------------------------------------------
Level 3 List Suite Pricing Custom square foot
- ---------------------------------------------------------------------
Level 3 List Power 120V AC $** ____ circuit
- ---------------------------------------------------------------------
Level 3 List Power 208V AC $** ___+ circuit
- ---------------------------------------------------------------------
Level 3 List Power 48V DC $** ____ circuit
- ---------------------------------------------------------------------
- --------------------------------------------------------------------------------
Gold, Silver & Bronze Prices NRC per Discount
- --------------------------------------------------------------------------------
Level 3 Partner Cab Pricing $** cab **
- --------------------------------------------------------------------------------
Level 3 Partner Suite Pricing Custom square foot **
- --------------------------------------------------------------------------------
Level 3 Partner Power 120V AC $** circuit **
- --------------------------------------------------------------------------------
Level 3 $** Circuit **
- --------------------------------------------------------------------------------
Level 3 Partner Power 48V DC $** circuit **
- --------------------------------------------------------------------------------
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.
Cabinet Pricing Discount Table by City
- -----------------------------------------------------------------------------------------------------------
Silver Cab Gold Cab Bronze Silver
Facilities Bronze Cab MRC MRC Discount from Discount from Gold Discount
MRC Pricing Pricing Pricing List List from List
- -----------------------------------------------------------------------------------------------------------
Atlanta 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Baltimore 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Cambridge 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Chicago 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Cincinnati 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Dallas 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Denver 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Emeryville 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Garden City 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Houston 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Los Angeles 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
McLean 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Miami 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
New York 1 ** ** ** 41% 45% 49%
- -----------------------------------------------------------------------------------------------------------
New York 5 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Newark 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Orlando 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Philadelphia 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Phoenix 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Reston 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
San Diego 1 ** ** ** 41% 45% 49%
- -----------------------------------------------------------------------------------------------------------
San Francisco 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Seattle 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Southfield 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
St. Louis 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Stamford 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Sunnyvale 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Sunnyvale 2 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Tampa 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Tustin 1 ** ** ** 49% 52% 56%
- -----------------------------------------------------------------------------------------------------------
Weehawken 1 ** ** ** 56% 60% 63%
- -----------------------------------------------------------------------------------------------------------
Level 3's wholesale list price is subject to change at any time at the sole
discretion of Level 3.
Discounts are available only on new orders and will not be applied retroactively
or on existing spending with Level 3 (Level 3 does not "re-price the base").
PRICING SHEET - (3)ToneSM
Effective date: March 11, 2004
Partners will receive preferential, discount prices for Level 3's (3)Tone
Services as listed below (subject to change).
[GRAPHIC OMITTED]
Level 3's prices are subject to change at any time at the sole discretion of
Level 3.
Discount prices are available only on new orders and will not be applied
retroactivity or on existing spending with Level 3 (Level 3 does not "re-price
the base").
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.