ACCRETIVE NETWORKS, INC.
SERVICE LEVEL AGREEMENT –
SUPPORT AND MAINTENANCE TERMS.


This Service Level Agreement (“SLA”) defines the performance criteria to which Accretive Networks, Inc. (“Accretive”) will be held accountable. This SLA provides for standard reporting methods as well as automatic compensation in the event that performance levels are not met. The SLA will become effective on the first day of the month following installation with the exception of the On-Time Installation measure, which will be reflected in the first SLA report.

Accretive may from to time to time propose revised conditions of service and will notify Customer in accordance with Section 13 of the Accretive Network Terms and Conditions for Delivery of Service as to said changes. Customer shall be given ten (10) business days to review and respond to the proposed revisions before any changes become effective.

If you have any questions regarding the SLA or any other issue, please call our Customer Support Center at (206) 443-6401.


1.0 SLA Definition For: Network Availability
Service Level Agreement
Accretive’s objective is to maintain an end to end Network Availability of 100%.

Calculation
The amount of time per month of Network Downtime is used to calculate the compensation for Network Availability. Network Downtime is defined as the time when a Customer circuit is unable to transmit data, and includes unavailability associated with any maintenance activity other than that associated with Normal Maintenance (as hereinafter defined in Section 5.0).

Components Included
The availability of the following components shall be included in the determination of Network Availability:

> All components of Accretive’s managed IP network.

Exceptions

The following shall be excluded from any Network Downtime time when calculating Network Availability:

> Network Downtime attributable to any actions or omissions of Customer, its agents or Customer’s equipment;

> Accretive’s Network downtime during Normal Maintenance;

> Failure of any components that cannot be corrected due to the inaccessibility of Accretives’ equipment ot Accretives’ personnel at the Customer location or causes beyond the reasonable control of Accretive’s; or

> Failure or malfunction of equipment or applications not owned, managed or controlled by Accretive.

Reporting Methods
Network Availability reports will be available via a password-protected customer web site. This report will be provided once a month and will be contained in the Monthly SLA Report.

Compensation
In the event that Accretive fails to meet the Network Availability service level, Accretive will credit Customer’s bill in the amount equal to one day of service for every one hour of Network Downtime per month, up to, but not exceeding, 100% of one month’s recurring charges for any given month.

2.0 SLA Definition For: Latency
Service Level Agreement
Accretive is committed to maintain an average monthly latency of <10ms (“Average Latency”) from the Customer demarcation to the ingress (hand-off) to the Internet.

Service Level Agreement
Accretive is committed to maintain an average monthly latency of <75ms ("On-Net Average Latency") between any on-net location on the Accretive IP Backbone, and an average monthly latency of <5ms ("Egress Average Latency") between any Accretive Network Border Router ("ANBR") and a directly connected egress (hand-off) circuit.

Calculation
Latency is defined as the total amount of time it takes for a packet to traverse from the Customer point of demarcation to the closest egress (hand-off) location on the network. Measurements are processed in two ways: Measurements are taken between all Accretive Customer Aggregation Gateways ("ACAG") and ANBRs , and are also taken between all ANBRs and directly connected egress (hand-off) circuits. Measurements will be taken every 5 minutes. The highest 5% of all measurements will be excluded, and an Average Latency calculated for each day, as well as an Average Latency for the calendar month based on the remaining 95% of measurements for both On-Net Average Latency and Egress Average Latency.

Components Included

> All components of Accretive’s managed IP network.

Exceptions

The following shall be excluded from the determination of latency under this SLA.

> Network Downtime attributable to any actions or omission of Customer, its agents or Customer’s equipment;

> Accretive’s Network Downtime during Normal Maintenance;

> The failure of any components that cannot be corrected due to the inaccessibility of Customer Premises to Accretives’ personnel at the Customer location or causes beyond the reasonable control of Accretive; or

> Failure or malfunction of equipment or applications not owned or managed or controlled by Accretive.

Reporting Methods
Average latency performance reports will be available via a password-protected customer web site. This report will be provided once a month and will be contained in the Monthly SLA Report.

Compensation
In the event that Accretive fails to meet the average Monthly Latency performance level, Accretive will credit Customer’s account in the amount equal to 10% of one month’s recurring charges.

3.0 SLA Definition For: Service Quality Notification
Service Level Agreement
Accretive is committed to maintain a Service Quality Notification goal of 30 minutes to inform Customer that a Service interruption has occurred.

Calculation
If Accretive determines that Customer’s Services are unavailable, Accretive will contact the Customer escalation contact of record via an agreed upon method (e.g., pager, email) within 30 minutes after the Service interruption has occurred.

Components Included

> All components of Accretives’ IP network.

Exceptions

The following shall be excluded from this Service Quality Notification SLA.

> Network Downtime attributable to any actions or omissions of Customer, its agents or Customer’s equipment.

> Accretive’s Network Downtime during Normal Maintenance; or

> Failure or malfunction of equipment or applications not owned, managed or controlled by Accretive.

Reporting Methods
Service Quality Notification reports will be available via a password-protected customer web site. This report will be provided once a month and will be contained in the Monthly SLA Report.

Compensation
In the event that Accretive fails to meet the Service Quality Notification service level, Accretive will credit the Customer’s bill n the amount equal to one day of service (maximum of one Service Quality Notification credit per day) for a total credit not to exceed 100% of one month’s recurring charges.

4.0 SLA Definition For: On-Time Installation
Service Level Agreement
Accretive is committed to install all electrical, network connections, and network elements (as applicable) no later than the committed installation date provided to Customer.

Components Included

> All components of Accretive’s network.

Exceptions

The following events shall void this On-time Installation SLA:

> Delay caused by Customer’s purchase of network connections through individuals or entities or other than Accretive;

> Failure of Customer to properly install the network and power interface in a functioning manner as of the morning of the installation date;

> Failure of any components, which cannot be corrected due to the inaccessibility of Customer Premises to Accretive’s personnel at the Customer location or causes beyond reasonable control of Accretive; or

> Mutually agreed upon change of committed installation date.

Reporting Methods
On-Time Installation will be reported by analyzing actually installation dates versus the committed installation date and will be available via a password-protected customer web site. This report will be provided once a month and will be contained in the Monthly SLA Report.

Compensation
In the event that Accretive fails to meet the committed installation date, Accretive will credit the Customer’s account in the amount equal to 100% of the contract Installation Report.

5.0 SLA Definition For: Maintenance Window
Service Level Agreement
Normal maintenance: Normal Maintenance includes hardware, software, or capacity upgrades. Normal Maintenance shall be undertaken on Tuesday, Wednesday and Friday mornings between the hours of 12:00am to 4:00am local time where Customer is located. Some degradation of service may be experienced during this time frame. Downtime related to Normal Maintenance shall not be deemed to be Network Downtime. Accretive will provide at least 48 hours notice prior to Normal Maintenance activities. If this timeframe conflicts with customer activity on a particular date, Accretive will make every effort to reschedule the Normal Maintenance activities to a mutually agreed upon date and time.

Urgent Maintenance: Urgent Maintenance refers to corrective action procedures required to correct network conditions that are likely to cause sever service degradation. Some degradation of service may be experienced during this time frame. Downtime related to Urgent Maintenance shall be deemed Network Downtime. Accretive will make every effort to notify customers of Urgent Maintenance activities as soon as possible – and as covered under the Service Quality Notification service level parameters.

6.0 SLA Credit Limit
The total amount of credit that will be extended to Customer in any single monthly billing period for failure to meet any of the guaranteed levels of service in this SLA will not exceed 100% of one (1) month’s recurring charges for the Accretive NET service.

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