Document 17-2
Filed 12/10/2007
Page 1 of 28
EXHIBIT A
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 2 of 28
Docket No. P421KI-01-1372
Contains Trade Secret Information
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 3 of 28
(=
. ... . : . .. . 3 . ,: ..'. . , .
I . :
.
?.
. .. . .
,
June 12,2002 Page 1 of 10
, ,
AlTDi).VIT OF BLAXE 0. FISHER
Gaiety of senior executive positions, inclgding, at relevant times, Regional Presided
'
. foihe WertemRe!on as well as *up
Vice President and Chief PIanning and
'
. ..
. D&opmebt .. OfficeG I now live i n . ~ & k City, Uf& . .
2.
'% I @la&
& p k s f i e circmnstances surrounding the negotiatiod and ,. . . . . - . .. . .,
.
.
'
..
.
..
b p l p e . @ t i p ~ ocan agreement uith Qwest Corporation f"~west'j to M G i e o d u S ~ volume piicing with
for dl purchases made by ~ c ~ e o d ~ 3 A ' f i o r n
. .
Qwekt The e v ~ t described in my afi3davit @okplace when i worked for s
. . .
3.
1was McLeodUSA's lead negotiator frk the negotiatiom that res;fted io a serjes of
agreement.;, including the volume purchase agreement. &tially, I w& negotiating
with~ohn e l l k y u s WEST. Later I FMS ne&tiatjng with my counterpart at. ~ at
.. . . . . . .. Qwest's CEO atikded a meeting in Cedar Rapids, hue, where, k p h g other things, : I - , ..
:
:
.. . - i . . . ..
:
the po.isibi!y of volume pricing was &scussed I &o attended that
Qwest
,
'::
:
+presentati~esaithg meeting iniomed us that they were m e e t i g w k many of . .
Qwcst's large customers. They also told us fbat Qwest intended to treat u as a large s
customer. Mr. Nacchio explained that Mr. Casey was responsible for our wholesale
ih relationship wt Qwest. Mi. Casey told me &at%. Nacchio had to give find
. . <:,
,
-.
. ,> . .. &$. :, , -. .
: - :....:..:::.>,;A ..
approval to any signiiicant -actions . . .. . .
.
between Qwest and McLeodUSA.
.
.~
-.
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 4 of 28
.. . _.. i ,:. .. . . . . . .._. .
. . .
!
:' .
~ , ,, , ~ . >
..%.,,
.
,
!
.'L
. .
>.
.
5
:
.
.
. .
. .. . . . .... .. . . ,. . . . . . . .. . , .
I
June 12,2002 Page.2 of 10
,:*.a
c..-.7r
2-i
I I
:-.
........
,
..
.. . . . ,:
h&y
>~
Ms. McKemey: Stephen Davis was &icas~o'dy . . invofvcd in the ne&tiations,
.
$
. ; ~cKe+ey,, who ..reported to Mi. ~a.&%id . . . . .. . .
f h & o Ibana, y ~ h o reported io
5 .
..
I
.
.
.
.
.
: ,. .
.
2
.
.
.:.. . . .
.
:
The ~ c L e o d ~ heg&aIing team ipcI~&dJim ~ a I v a &who was a Vi& President $h . ... . , : ,' . . . ... . , . o f $ : & and s&&$Stewart, who.T?@ vice Pre&3pnt D~ILEc . . . and i . . . . . Relitions , , :::. . . . .. . . , ... : . . . . &.the.*e. ... Thisis ihesame tk..that,had negotiated ' . . . P OM & &- & ...
.
'
a
.
.. . ..
.
,
i
yith U s WEST before the merger. Once ~ rcase; ~d I negotiated broad , ., agmmcnt parameters, the other members of our teamswould work on negotiating
'
.
.
i
6.
negenesis of the agreenients tbat ihciade the volume piicing occurred welt before the Qwest 1U S WEST merger. Prior to tbe passage of the Telecommuaications Act of 1996, i v r c ~ e o d u s ~ p u r c h ad 8e n b i ~ s. Common Blocks from U S WEST under . . various siate r e t d iaiiffs q d re&d the services t our customcis. On tbe eve of th., 6
.: :
5.
...
signing of the T e l e c o ~ y n i c a t.i o . of 1996; U S WEST withdrew its ofiering qf ..... Act . ~ . . . . . . . . . . Cenpex @?unon Blocks to new customers in illof its 14 states. McLeodLJSA
. .::. : .. . .
, kk+. , . , ,.' . .... .',.,:y: . . .....
:,,$
. . . . . . ..,2. . . . . .. I.. .AS.. .2 . .... . ,.. sought state regulatory action t stop or &verse u S WEST'Sunilateral withdrawal of o . . .i : ,,.:._: i :,, .~ its ;iholesale Ceu'trex product We were largeiy succissful in these regulatory cases in
.
C:
retaining our right to resell U S WEST'S Cedtrex product. McLcodUSA continued reselling U S WEST (and then Qwest) Centrex products in those states in which our right to rescll the product w s upheld w e id50 began resellinglFR aad 1FB under a
. .
..
.
. .,
. ..
2
.
;.
.. :.: . :<:;. . . . .;: . ,. . ... . .: .
Act ... . . . ..... . t>! . . the.. ., : prqvisions of the Telecommuoication~ . . &sale .. a .
. - : I* * " 7 . 11
.
.
.
:.
Later, we began to avail
..
\
ourselves of UNE-Piatform products.
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 5 of 28
.,
.
, t..' .. . . . . . .
;
- .
.
I .
I
. . .
.
.
..
Afiidavit of Blake 0 Fs e . ih r June 12,2002 Page 3 of 10
7.
:
Fiicially,the Centrex Common Block products and the &sequent resale products . . would not work for McLeodUSA over the longterm. The margins on boik f o v of
... ..
'$*.
-. ...* : -
,
r .e d.w e r e too thin to &and
8.
mow the company.
BeTore the merger, we approached U S WEST and told them that we wanted to
T
. :. . .
..
-.
,
. 9.
I e,xplai+d to U s W ~ S Ta all wereally wanted to db w&s to leave our hstomers & t
on the same &es that they W e n t l y had, wi@the same features, but to get the best available. At the time &at was UNE-P pn'ckig and we told U S WEST we were entitled to such pricing for the serviceswe were using.
(.
10.
with A U S WEST responded that it believed it could pmvide M ~ L ~ ~ ~ U San
.
acceptable product at pnkimg. that worked across its region, so we begsn negotiahhg . the p q e t e r s of the product and its prici&g. 11.
:
Prior to the Qwest I U S WEST merger, we were unable to agree on pricing thaf made
economic sense for M c h o d U S k
wr the merger, however, @vest expressed a e
.
.
desire to improve its relationship with M ~ L ~ O ~ U SaA as customer. Jbe Naccbio indicated at the meeting in Cedai Rapids referenced above that Qwest recognized competition was developing in its local markets. Therefore, Qwest intended to strengthen its wholesale business and relationships with its wholesale customers. ~ps3f1c&y, e s t indicated that it hoped to find a way to make it economically and w
.
i
. . . :. .*: : , operationally apactive , ., . ....... ..;; ,-, . . ?A ............ % . . _,, :. . .,, . ~ . . ;. ,.?.
. Y i
$
. . .
to keep.0~1 mc
on Qwest's network if p~ssible,
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 6 of 28
She result of~ continued,pigotiations was a product that Qwest calli.UNE-M or our . .
i..... star. WM & ..
a& l$
intended
be a. flat-iated, UNEplatFom puduct @t .
us t&c+vert out resold Centrex tines directly to UNE-M lines. ks we
'ccintin&d.to discuss pricing, hbwever, it tvas clear that the pricing Qwest offered was . . . .
not good enqugh for MckodUSA to warrant keep;ing.our&&ic on Qwestts
P I @
improved pricing on all of our purchases based on volume commitments -was our negotiarions. I do not now recall whether Qwest or w component ofthe
-
developed d&g
McLwiIUSAfirst pmposed tlie idea, but it became a c agreements we were diskissing.
After Substantialnegotiationr. with U S WEST first, and then with Qwest, Qwest
pricing on all of McLeodCISA's agreed to provide MchodUSA the benefit of y~lume pwhases eom m e s t The volume pricing applies to all products and senices pun:+ed by McLeodUSA fiom @vest, including access, wholesale long distance, capacity trunkioi private h e , unb$dled uetwofk elements ("UNEs3, collocation,
r ~ a services; ank M e d pioduc& and s'ervices. The volunie pricing applies to all' k
pukbases ~ d by e McLedUSA fromQwest b i d e and outside of Qwest's 14-state
m c territory.
As aresuit of our negotiations. McImdUSA and Qwest entered into a number of
written agreements between September 19,2060 and October 26,2050, including h e that are essential to undentaoding the volume pricing: , .
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 7 of 28
. . .
.
,
%
. .
'::
. :.
. . .
. .
. . . . . .
,
..
June 32,2002
Page 5 o f 10
a ,&chase Agreement Signed ~ c t o d e26,2000 and effective 0&ber 2,2000 r
+.. . . . . . ... .. .. : . .......
, ,
.
:
c o v i g +chases by McLeodUSA &amQZvest (the "MCL$USA
...
purcbzce.
~
,
~gre&cntn)~
b Pmchase Agreement signed October26,ZOOO and effective October 2,2000
16.
%8'~mendment to the Mc-dUSA
inteICOmction agkemenf.with Qwest set
out thetenas and conditions for thew Starproduct, including stak:speciiic flat ~ & ~ r i c i anegofi&d by Qwest and McLeodUSA g ..
[
.
~
17.
The M C L W ~ S A w c h a sAgreement i take dipay agreement That is, ~ i s
McLeodUSA coinmitted to purchase a qiecified vdlume of products from Qwesi during ipbc$ied time periods. I ~ M ~ L ~ O ~ U S A iails to make the requisite purchases,
it is sI ?
obligaped to pay (&st the&erence behveen the dollar amount of made and the minimum commitment amount in the purch'e
.
purotqses it a y
. .~
,i
.
:
; ,
agreement. In Year 1 of the c o n W (ending on December 200l),
the commitment
r,
;
was 1 E -
SECRET BEGXN~%~S~,~O~,OOO[TR~DE SECRETENDS~. the . . By.
:
end o f 2002, the cumulative commitment is [TRADE SECRET
BEGICNSj$3IO,OOO,OOO[TRADE SECRET ENDS] and, by the end of 2003, it is
W D E EECRET B E G I N S 1 % 4 ~ 0 , 0 0 0 , 0 0 0SECRET ENDS] ~~E
We
believed we could exceed these commitmentr and s h e d that view wiU~ Qwest
.:. . - . . Exhibit . . ..: . ..: '..:=:. . .,..; . .z. . . ..,,\ <:;, 8 : :. :., . .: . .
1 is a true copy of t h e ~ c ~ e Purchase ~ ~ o d ~ Agreement, which was entered
'
into by McLwaUSA q d kept by it in the normal course of business.
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 8 of 28
,
& .. &. ...:... ..: . .
~..?. .
18.
She Qwest Purchase Agreement is a k a."take or pay" agreement. In addition, ..
Qwest orally w
d io increase its commitmentlo give McLeodUSA a volume .,
.
;
.
'
purchase discount of up b lo%, t o p v i d e an '+centive ftir additional purchases
.
under the M~L&US.A ~urchase Agreement. l oi& to obtain a higherper&agi, h
,
M~LWJUSA to increase its puychases. M
. . Tbetsble below sIiows genaally out how iht v&lutnepricing kor&s:
Ootob&2000 though December, 2001
Penentake Reduction
AEB~W? l'mchases
Percentage Aggregate , W f i o ~ Puck;;
8%
ITRAUE SECRET BEG.INSj
1
1
Percentage Reduction
W
E
SECRE7 BEGWSI
$199-
$199250m[w
ESECI~ET'
2'30mlm
E SECRET
E"D?
-sf
.
.
SECRET BECINSj >
w
k
ITRAOE SECRET BEGINS] >
10%
I W E SECRET
$199rnfnou,
E SECRET ENDS1
$230mm
DE SECRET
mnsi
20.
'
The volume pricing is applied to every pycbsse made by MCL~O~USA, not just
the
,::...::,~:,:: V i i . ; . . . .:
purchases above tbe minim& .;.. ;. ,.,! : ..: . .
. %
So, for example, if McLeoduS~ spends [ W E
SECRET BEGRiS]S;200,000,00D[TRADE SECRET ENDS] w t Qwest in 2002 it' ih
Q07490
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 9 of 28
('->.
.
. , . ..
:
.. .
2
. . .'A entitled t'o
be
:
-
: i ,
. : . . .. .. ... . . .
. .
.
..
.
aW
. . . .
. . . .
.
:
:
.
June 12,200,& Page7oflO
I'
E SECRET BEGINSjSI6pRADE SECRET ENDS]. .
. . : . . .. . . .
. -
i
xpiliionpayrient, ..rcutated by multiplying 8% times every doUBr.+&t. I' . . ' . . f . . , . . : .:.. . .: :. .. ~ . .~ .e. o d U ~ ~ ' s p[TRADE SECRET ~ ~ ~ ~ ~ ] $ 2 5 0 , 0 0 0 , 0 0 0 [ ~ ~ c. ends . .
,
- .
SECRET ENDS] with Qwest, then i t d be entitled to receive FRADE SECRET l
BE,GLNS]$~~~~RADE SECRET ENDS] million, calculated by multi$ying 10%
-. . .. ~. . .. . . .
.
I .
" .. . ,
. . . .
.
.
.
,
"
timei ~ & y . . spe* doll? . . . . .. ..,, . ,. ' . pd *+,palm&
i f ~ c. L e o d U ~ ~ $xchaser frill below ci& . . . . . ..
levels, thqc is .
.
the.&scsuntXMcLeodLiSA signed the Purchase A p e w e n t Qwest rejpohded by
G g e & g a met- tq y m a n t e e &at M C L ~ O ~ Uwould receive a payment o f SA
:
... ., .
(
22.
at lead a p o g i i ~ the agieegito dixouiit each year i retum for its miiiim-, bf n
purchase &ments,
thit increfiied over time.
.,
:.
That mechaoism suggested by Qwest is the comb'~nation be w s and of et
McLedIJSA Purchase Agreements. The Qwest Pmb'asc Agreement requires
::
.
'
,
.
.... - :,,..!, ....? ,.": ..
: :
:
Qweg td pqc+se ITJl..DE SECRET BEGIh'Sj$15.84[TRADE SECRET ENDS] . . . . , . . . . d o d in prbducts fmm McLeodLJ5~ 2001, W in ES E ~ T
':
.
:
. i ,
. ... .
BFGI$~s]$~~.~z[@RADE SECRET E a S I million in products in 2002, and
. . ...~.. . .. .: -.
.....
[TfiADE SECRET BEGINS]$~~.PZ[T&~DE SECRET ENDS] million in p r o d u d
2003.
....
~. .
23.
The Qwest Purchase Agreement identifies products offered by McLeodUSA. We did not discuss any specific products that Qwest would purchase &om McLeodUSA. . . to i m e
..
. . T i.y , McLwdUSA viewed the Qwest Purchase Agreement as a mechanism . . .: ..... . . . . . . ... . . .:.... . . . .. .. . : ..>...... *.
......
* :.
.
__
.
...
that MchodUSA would receive some, if not all, cfthe benefit it was entitled to
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 10 of 28
..
ffidavit of B W 0 Fisher . June 12,2002 . Page 8 of 10
under the oral volume pricingagreement B e wmmibnent amount$ in the Qwest . . Purchase Apeemenl were calcvIated by applyingan 8% voluoie discount percgmge . . SA'S (from Qwest and M C L ~ ~ ~ ~ Joral akeement) to the maximum McfaodUSA
.
projected expenditures for t& percentage. b .
2 4 . Another component to complehg the transaction that gave M C L ~ ~ ~ U S A to access . . TRG+M and the p ~ h . ; e yolume pri!&g.wq McLeodUSA's agreement tb remain
. .
n b t d ~grirding Qwe;t's Section 271 appIi+oofor gwest to enter
@?st madeit clear to m'e that
& &e UNE-M apd volume pricing armngements, McLeodUSA
neutral on Qwest's Section 271 appliptions McLeodUSA complied with all of our agreements and
had to agree to re&
agreed to remain neutcal prdvided -st
with all applicable st-+
and regdlafioq.
25.
Exhibit 2 to this affidavit is a true copy of adocum& titled 'Outl&e of Major
T
d and dated September 19,2000. This document was created jointly by Qwesi
an$McLeodUSA at the September 19,2000 meeting. It is an accurate description of thC terms that had been dismsed betwee the parties as of that date, inclubing ihe
.
.
.
i
terms hammered out durihg an &day negotiation session
Exhibit 3 to this alidavit is a true copy of an e-mail I sent to Jim Bdvanz, who f o d e d it tb Stacey Stewart on October 23,2000. Attached to Mr. Balvag.'s email is an October 21,2000 e-mail h m Audrey McKemey to Mr. Balvanz, Randall Rings (McLeodUSA's General Counsel) and me. Ms. McKenney's e-mail included
the attachment printed out on the secona page of Exhibit .
26.
Exhibit -wal received
and kept by me in tbe ordinary c o w e of business.
, :,::
>,-:!'::.
.:..
?
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 11 of 28
,
m..
. l .
.
&davit of ~ l a k k . 0 Fish& June 1 ZOO2 2 Page9of10 27;
. :..., .., - . . ..,.., .*. : . .. r . . ..
,
The second pige of &%it
3 fs a i Excel spseadsheet prepared by Qwest showing
.-
. ... . -
. . . Qwest's countepposal to a volume pricbg proposed by McQodUSA during the .. . . . . . . .. . .<.
neEo;dations d$cussed above. In this spreadsheet Qwest proposed a distount rate ranging from 6.5% to 10%.
28..
1
Eddi4 to this &davit is a true copy of an e-mail found by McLep3JSA in Mr.
. . . . .
~ai&.s . files inlthq purse of responding tg iniormation requests $pin the . . . . .
copied on this e-mail
29.
I 3 5 i i t 4 contains five
asked of Mr. Balvauz by Gary Dupler, then o+
&oup Vice President i f Network Developmint, and Mr. Balvanz's handwritten responses to those questions. The questiom all relate to the discount agreement with
west At the time, Mr. h p l a was responsible for network planning at
McLwdUSA. I have read thmugh each of the questions and responses on Exhibit 4. 1
am familiar with Mr. Edvanz's hahdwrking aod recoppize the handwriting on E&bit
,
-
4 to be bis. Based on my personal knowledge; 8Balvbfs handwritten responses . .
to each question are accurate and couect
!8eclare undefpmdty of pejury mder the laws of the Unkd Stat& of America and the state of
M h e s o t i that the foregoing is true and correct
Further affiant sayeth not
Signed this -day of'June, 2002
.
t
.
:
. . .. . .
_ _ .. . . .. >.;:..
!
'
Bike 0. Fisher
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 12 of 28
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 13 of 28
Exhibit #1
Contains Trade ~ e c r bInformation t
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 14 of 28
Tbh PA &l b$ bind.ing on C% and McLtodUSP, and each if the&isp&tivi $d 1.1 subs'idialics, &liared c o s p d o n s , $ c wand usip;
.-.
jb 1 3 '. Panis, k t m d b g t o k ligally bolmd, hava exem@ tb3 PAe@tivc ?f ~ c t d b c 2,20DO, inm&pIs counterpats, each of'which is deemxl en original, but all of W & r E &dl constiMc one and t sxine ktnmcat b ... .-. .. - . . . . .
. .
Unlcss ttrminHted as p"vided in tl@ section, the ibiiial term of his PA i fiqn s 1.4 the daic of signing undlDeccrhbcr31,2003 ( I i Tm")m'dthis PAshall W c r "na iutnbatit+y coniinue until & r & t& gbcs a l e a six (6) months idvvlcc 6 h ? t notice of : termioation. 'Ilk is Amenrlment cannnly bc tc+zkd . dming the Iiltr Tam,or at any timi rIiit . . . . .... t h w f t s , in the went oE . . .
:
.
. . . .
,
:.:
. .
. .
-
: 1.4.1 a maieJial breach oftbc tcuns of the A m a h o t this &endiuem . whichwaioi: m s o l v e d sod mcmnpchmtcd followin: application of the dLputr" resolu6on provisions of this agccment; . .
"
.. . . .
'
. . .
.
1.42 amatrdal. chaqe in the telecommunications industry pdc& is 54 adverse to McLeodUSA so as to m&e this PA useless; or
s t n t c k e rhat
:
1.43 a t g m b d o n oftha c-stain h h c Agrecmqt with a like eE&t pursuant to wbicbMcLcodUSAp;ichases Products (defined bdow) from &err
and
dak
1.5 All f i d ~ n d i t i r m t a duries set forrh in this PA arc, are k n r to be, :d t dd c misideredbythcParricsto be, r-nabiy relakd to, and d&enden
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 15 of 28
.
.
Neithcrpatywillpi+&t itsclf'as represenhug orj0;ndy 0;arkting scrviccs the otha, or market its smites & h hen off other prrrty, tviihout the prisr writtn g . . .. .. .. . . . . . . . . . consent of rhe other party. ..
1.8
i ;
'::
:
.. .. . . . .
.
.-
..
:
,
'mllocation s e ~ c . e $ eleniaix, capaiity, tnhination or origination SC&CCS, switchihg or fib* or ri&'(tbc ' ~ d u c t s ' at ,prices prcviobly quo* by Qwcst, mcluding but npt limited m, on ~ any products pr updated p d ~ r c t for \thokAe long diseaocc srrviccs purchased, thc hi&% s .. ...........-. . :-:- - discoinit &I available for tharpmduct, sljbjecr to the terms of thir,section2.
-
Q07497
~ Q ~ P C . B L DOCUMENT IC
., . .... . .- . ....
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 16 of 28
Sxbjject'a t h ~ p v i s i ofthi3 d o n 2 Fmm January 1,2001 tbro~+ ~s 23 i3ecenb~31,2D03. h4dm5tJSA will p u ~ c h a cumnl&vc mhimm of S4gDlnillion c
\
24.1
A reducSon i thc rates for any oirhc Pmducti. n
NONPUBLIC DOCUMENT
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 17 of 28
Q07499
NONPUBLIC D O C ~ E N T CONTAINS TRADE SECRET DATA
-4,
> .
"'-
Q$lOll8
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 18 of 28
Q07500
NONPUBLlC DOCUMENT
-5-
..
~ O N T A ~ NTRADE SECRET DATA S
~i10119 '
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 19 of 28
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 20 of 28
Docket No. P42 l/CI-0 1-137.1
.
. .
,
- <
'
Exhibit #2
Contains.Trade secret Information
(.-
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 21 of 28
I.
..%
. . .- - . .
Q will provide billing tapes to allow M to bill access charges stanin,. with usage for the montb of October (or pdssibly September Q to confim) and goin! foi%.ard. M nilt not charge Q acccs rafes on M platform tihcs a t a& higher than tbtrate Q charges M. Q wit1 pay M [$I8 miion] to settle apast billin&dispute oicr access charges fbr thc [2d & 3d] . quarter of 2bD0 and a releaie of claims for a new M platform from the date of'M's rcqurst. M wN ?ay Q [W rniIIio4 for wnversion ardtrrmination f e e ass,wiated with rhe chanzcs to anew fdplif~tform c k t e d by rhc parties. (Judy and Stacey to work on platform issues and details) (Audrcy nee& to tonfirm wheffier2d quarter settlement is avaiiablc). . . .. .
-
'
3.
Q wifl develop state~byrstate local platfog pricing for s e ~ c c s M (includmg & not S i t e d tobop&porn, f~aturrs, e )for a36 month pcrind (34to identify features it desires to sell c. and provide to Q by 9/22)(Qlo provjdc priciixg by 9/23).
'
.
.
I, .
M wilI pmvide infomtion to a ~ d w to develqp LR rates by 9/22 and Q wiII provide LD Q
pricing by 9/29.
5.
Witbin 2 days aikrreccipt ofpricing, M will deriver a &recast based on the rate in~orrn&n and propose a 36 month total rcvmuc wrnmitmcnt to Q @dudingrevenuc from all s e ~ c e and products purchased by M fiom Q, iricluaiig & not Limited to n m M platform, s , resale, LD,Pn'vate h e , urn. DSL,D L ~ ctc.)'with a firm, substantial portion of the total commitmcntin the fo& of W e or pay? In the event of sigoificant competitive ptasurcr. Iheparties agree to provide for amview of the pricing The parties wiU address a review of the 'takc-qciy' amount hffic event Q can not or does not p&vidc services suhstantiaUy in accordakt with UIC a g i e q e n r
Based on the p&pmed wmniitment by M, viit$n 5 business days, Q will propose v+lum= and &n discounts bved on quarterly revenue @gets, to be paid back to M by Q on a quarterly basis.
6:
.
7.
As a condition to Q complciing this hansaction, M must' take a neutral stance on Q 221 reliefand agrccio develop a joint press release with Q announcing this anangement. M and Q will work jointl$on seri+ce standards. This i s a material provision of this agrecmeit
The parti& will coritinue to work on a program F r se~uitization receivables to allow o of capitaIization by M ( A u d w is working on tbese details and provide input by 9/29).
8.
?
\.
- ; ..91,+;2:,$c . ~artik continue work on an agreement to address M truding needs (Audrey to will , -;::,,-:.y b e s and provide ideas for how M can help address thcsc issucs and M .;.:.:2 'i~est&t;pricig ,
.
-.
necds to update L S forecast by 9/29). I
14.
?hc panies will develop a clear escala6on process to addressprqblems, issues, disputes and
. concerns
raised by tbe parties.
CONFIDENTIAL
Q07503
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 22 of 28
'
. ..
Docket No- P~Z'I/CI-0 1-1371 . .
Exhibit #3
contains Trade Secret:Information
!
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 23 of 28
,
.. .
.
,
Fmm: . To: r
t c
~ . G. e Ts B+v?rn on lOR,1231iODL,0919 . Stdcey D.s . . ..
.
~ubjed:~ n o l l w pmbnal- vdlhaiIadunen@
..
~ ~ ~ ~. W X ~ ~ ~ ~ & M C L E O D .
Blake 0. F~her 1OR1ROOOW19 Ptd
C
:
'
To:
CG
James 5.BahamiMCLEOD63MCLEOD -
Subject AnoUlsr pr6posal- with a t t c t e k laajmn
Jm,
i have agreed to Ms. We win be having addlllonal conversations about DSL and Voice Mail after his agreement is signed, l.conduded we couldn't get anymore righl now,but 1 think if we can find oul of region stuffwe have a greal opportunity io Q S m . ~ k Please give me a call a t 435-658-3338. by ~~0~ . -Fo~;irded Blake 0. Fhher/MCLEODon 1 0 1 2 1 ~0321 PM
To:
CC.
2
Randall E. ~ngs!?4CLEOD@MCI;EOD;Blake 0. Rsl?er@C~EOD@MCLEOD. James T. Batvanr/MrLEOD@MCWD
Subject Anolhsr pmposal wilh abchmenk
-
CONFIDENTIAL
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 24 of 28
QWEST COUNTERPROPOSAL
Mulunl Preferred Vendor Plan
2000
2001
2002
2003
Total 2001-2003
.
McLeod l o Qwosl- Befqra Solif RooRlo(her acuulsllons Proiecled Gmwih Rate 0% 78%' .. "FJa~se"/~rojecled revenue 155 '19s l~rvlerred Vendor 7 n h . or my15U %of ProjaclsdRovenue 78%
~
-.
7 ," ~ d
9701. , ,"
-
246 I6b.
85%
208 170
58%
.
732
480
'
66"
.
r
~ W B 10 Mcieod J ~ PrelerredV~ndur 'Take or Pay".commiimeniranges Minimum lordiscount lo apply Tier f 9M's Revenue ranges loo1 178-188 Over l @ g Qver 188 Discount Rate oirxsd 6.5% 0.0% 0.0% Tier2 an Revenue ranges McLaod'r 189-198 Over 230 Over 250 Discounl Rats P ~ ~ Q S ~ I 8.0% , 10.0% 10.0% Tier3 to & o s ~ R~venue ranges Discount Rate
-
I
1
,
.
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 25 of 28
(.
Cgntains Trade secret Information .
,
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 26 of 28
Jim,.
.
i have the following questionsrela~d ma subled, agreement andam lapying a rqited number of lo indhiduals with the understanding thal Ulk is wnsi6ered hightyconfidenkl information. As 1 understand it there is'a 610% additional on (he prices we pay for all qwesl service$. As such I need to ilndei'+nd and all of (hose copied need (o understand at least the follovving:
2)Are YOU suie that I1 has already been incorporated in all of our nekork acceis budge&? for example how did if gel. appiied Lo y e s t L C pmductr we buy? Y
,
s'n, s y 2 r i C c
J L
L
SW~M
- t -
dpruKA- r-L /u;~u,&a & afi
/
CONFIDENTIAL
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 27 of 28
Case 1:02-cv-01978-RPM
Document 17-2
Filed 12/10/2007
Page 28 of 28
United States Free Forms
Canada Free Forms
United Kingdom Free Forms
Australia Free Forms