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Qwest Long Distance
Section 272 Affiliate Transactions

Master Services Agreement

AMENDMENT 3

This is Amendment 3 to the Master Services Agreement, Agreement Number AR96001 ("Agreement"), between U S WEST Communications, Inc. ("USWC") and U S WEST Long Distance, Inc. ("USWLD"), formerly U S WEST Communications Systems Corporation, dated April 1, 1996.

RECITALS


USWC and USWLD entered into that certain Agreement for Services Number AR96001 dated April 1, 1996 as amended by Amendment Number 1 dated July 1, 1996, as amended by Amendment Number 2 dated April 3, 1998, and USWC and USWLD wish to Amend the Agreement under the terms and conditions contained herein.

The following Agreement shall replace the previous Agreement in its entirety. All existing work orders shall be incorporated under this Agreement.

MASTER SERVICES AGREEMENT

BETWEEN

U S WEST COMMUNICATIONS, INC.

AND

U S WEST LONG DISTANCE, INC.


Agreement No. AR96001

TABLE OF CONTENTS


Article 1 - DESCRIPTION OF SERVICES
Article 2 - TERM
Article 3 - COMPENSATION
Article 4 - BILLING
Article 5 - DEFAULT OR BREACH
Article 6 - INDEPENDENT CONTRACTOR
Article 7 - PROPRIETARY INFORMATION
Article 8 - WARRANTY
Article 9 - INDEMNIFICATION
Article 10 - LIMITATION OF LIABILITY
Article 11 - FORCE MAJEURE
Article 12 - INSURANCE
Article 13 - WAIVER
Article 14 - REGULATORY SUPPORT
Article 15 - COMPLIANCE WITH LAWS
Article 16 - GOVERNING LAW
Article 17 - AMENDMENTS
Article 18 - NOTICES
Article 19 - CONTRACT ADMINISTRATION
Article 20 - DISPUTE RESOLUTION
Article 21 - NON-EXCLUSIVE AGREEMENT
Article 22 - ASSIGNMENT
Article 23 - SUBCONTRACTORS
Article 24 - SURVIVAL
Article 25 - RIGHTS UPON ORDERLY TERMINATION
Article 26 - RECORDS AND AUDITS
Article 27 - ENTIRE AGREEMENT
Article 28 - HEADINGS NOT CONTROLLING
Article 29 - THIRD-PARTY BENEFICIARY
Article 30 - AFFILIATE
Article 31 - SEVERABILITY
Article 32 - CANCELLATION FOR DEFAULT
Article 33 - SEVERAL LIABILITY AND JOINT DISCOUNTS
SIGNATURES

FOURTH AMENDMENT TO MSA



Agreement No. AR96001

EXHIBITS

Exhibit A NETWORK SERVICES
Exhibit B HUMAN RESOURCES SERVICES
Exhibit C INFORMATION TECHNOLOGIES SERVICES
Exhibit D MARKETING SERVICES
Exhibit E RETAIL MARKETS
Exhibit F FINANCE SERVICES
Exhibit G ADMINISTRATIVE SERVICES
Exhibit H RESERVED
Exhibit I RESERVED
Exhibit J RESERVED
Exhibit K RESERVED
Exhibit L RESERVED
Exhibit M RESERVED
Exhibit N SECURITY SERVICES
Exhibit O TELECOMMUNICATIONS SERVICES
Exhibit P WORK ORDER
Exhibit Q RESERVED
Exhibit R RESERVED
Exhibit S SALES OPERATIONS PLANNING AND CUSTOMER SERVICES
Exhibit T CARRIER SERVICES


Article 1
DESCRIPTION OF SERVICES


A. USWC shall provide services ("Services") to USWLD as set forth in the attached Exhibits (incorporated herein by this reference). The Exhibits describe Services that USWC may provide to USWLD upon request by USWLD. Such requests for Services shall be specified and documented on a Work Order (incorporated herein as Exhibit P), and include at a minimum the following information:
- Description/Location of Service/s Requested
- Dates of Commencement and Completion of Service/s Requested
- Deliverables, Performance Standards, Special Conditions
- Units and Price per Unit for Requested Service/s
- Costing Methodology


USWC may require additional information as it deems necessary for the provision, tracking, and billing of Services.

B. The parties shall comply with the U S WEST Technology Fair Compensation Policy when Services requested include technical information, software, inventions, functional specifications, and other researched or developed products or Services.

C. In the event of any conflict between the general terms and conditions of this Agreement and the special terms and conditions contained in the Exhibits, the special terms and conditions shall prevail.

Article 2
TERM


This Agreement shall become effective as of April 1, 1996 and will remain in full force and effect until either party provides sixty (60) calendar days written notice of termination to the other party. The parties agree to undertake a review of the contract every twenty-four months. If this Agreement is terminated prior to the completion of any Services, USWLD shall pay for all charges billed and owing to USWC for Services performed up to and including the date of termination, provided Services performed are in accordance with the terms and conditions of this Agreement. USWC shall complete any such work in progress prior to the termination of the Agreement, and USWC shall perform such services in accordance with the terms and conditions of this Agreement.

Article 3
COMPENSATION


Services provided by USWC shall be priced consistent with FCC rules and regulations concerning transactions between USWC and its affiliates. Where USWC reasonably deems it necessary in order to comply with such rules and regulations, USWC reserves the right to revise prices, provided that revisions occur no more than semi-annually. If applicable, USWLD and USWC agree to any necessary true-up compensation (bill or credit) which may result from such necessary price revisions. Upon request by USWLD, USWC agrees to provide supporting information to substantiate any such price revisions, the reasons therefore and any resulting true-up.

Article 4
BILLING
  1. USWC shall submit invoices to USWLD for Services provided in accordance with the terms and conditions of this Agreement on a monthly basis unless otherwise specified in the Work Order. USWLD shall notify USWC of the address to which invoices are to be sent.

  2. Invoices shall include the following billing information as a minimum:

    1. Invoice number
    2. Payment due date
    3. Date of Service
    4. Description of charges
    5. Applicable taxes
    6. Total charge


  3. The bill recipient is responsible for recording the obligation upon receipt of the invoice WITHOUT REGARD TO ACCEPTANCE unless the billing has been billed to the wrong entity. Once the payable has been recorded, the bill recipient may withhold cash payment of the invoice for disputed items only. Formal disputes must be initiated with the billing company contact no later than sixty (60) days from receipt of the invoice. Any amount billed and uncontested as of the 60th day from receipt of the invoice shall be construed to be a proper charge to the bill recipient.

    Interest should not be accrued on cash payments withheld by the bill recipient for disputed amounts during the period of the dispute. However, in order to discourage withholding of payments without due cause, if any portion of the disputed amount is resolved in favor of the billing company, interest shall be accrued from thirty (30) days after payment was due until the amount owed is paid. If the dispute is resolved in favor of the bill recipient, the billing company shall issue a credit to the bill recipient for the full amount. Payment of invoiced amounts that are undisputed or uncontested shall be remitted in full within thirty (30) calendar days after receipt of the invoice. Payment shall be sent to the address indicated on the invoice. Invoiced amounts not paid by the effective payment due date may be assessed interest on any outstanding balance until the amount is paid in full. Interest shall be accrued at a rate of one and one-half percent (1.5%) per month, or the highest rate allowed by applicable law, whichever is lower. Such interest shall be reflected on the invoice issued the month after the payment is deemed to be past due.

  4. The billing company shall have sixty (60) days from formal notification of the dispute to respond to the dispute.

  5. It is the responsibility of each affiliate to effectively communicate and resolve these disputes. If necessary, the issue in dispute should be escalated to the highest level required in order to achieve resolution within the allotted time frame. If all of this fails, refer the matter to the Directors of Technical Accounting at U S WEST, Inc. and at USWC, or their respective designees, for a ruling. Should such efforts prove ineffective, U S WEST, Inc. will, if asked, mediate the issue after a review of the related substantiating documentation. The matter may also be referred for mediation by an external party if both companies have agreed in writing to this type of mediation. (See Article 20 Dispute Resolution.)

  6. The billing company may not render a bill for services more than ninety (90) days after those services have been provided unless both companies have agreed in advance to a longer billing period.


Article 5
DEFAULT OR BREACH


In the event of a material breach of any of the terms of this Agreement, the aggrieved party shall give the other party written notice of such breach and request cure within thirty (30) calendar days from notice receipt as provided herein. If the described breach is not cured within the thirty (30) calendar day period, then this Agreement may, upon written notice, be terminated immediately without charge or liability, except for work performed by USWC and costs incurred by USWLD under this Agreement up until the date of termination.

Article 6
INDEPENDENT CONTRACTOR


USWC hereby declares and agrees that it is engaged in an independent business and will perform its obligations under this Agreement as an independent contractor and not as the agent or employee of USWLD; that USWC does not have the authority to act for USWLD or to bind USWLD in any respect whatsoever, or to incur any debts or liabilities in the name of or on behalf of USWLD; that any persons provided by USWC shall be solely the employees or agents of USWC under its sole and exclusive direction and control. USWC and its employees or agents are not entitled to USWLD's unemployment insurance benefits as a result of performing under this Agreement. USWC shall be solely responsible for all matters relating to payment of its employees and agents, including compliance with worker's compensation, unemployment, disability insurance, social security withholding, and all other federal, state and local, rules and regulations. USWC shall indemnify and hold USWLD harmless from any causes of action arising out of USWC's liability to its employees or agents.

Article 7
PROPRIETARY INFORMATION


Solely for the purposes of providing Services under this Agreement, each party grants to the other a nonexclusive, nontransferable license to use information provided by the other. Neither party shall publish, circulate, or otherwise distribute or disclose any such information that is marked proprietary or confidential to any third party other than its affiliates and its consultants who have executed a confidentiality agreement as described in (1) below unless and until (1) the original disclosing party has consented to such disclosure and such third party executes a confidentiality agreement containing terms substantially similar to the ones contained in this Agreement, (2) such information has come into the public domain through no fault of USWLD or USWC, (3) such information is otherwise in the possession of USWLD or USWC free of any obligation of confidentiality, or (4) such party is required to do so by regulatory mandate.

Any third party information provided by USWLD or USWC to the other party shall be deemed USWLD or USWC information according to its source and shall be treated accordingly. If such information is subject to a separate agreement with a third party, the party receiving information agrees to hold and use the information in strict accordance with the separate agreement, provided it has knowledge of the separate agreement, unless otherwise instructed in writing by the party providing the information.

Article 8
WARRANTY


Services shall be performed in a professional manner, consistent with industry standards, and meet the satisfaction of USWLD. USWLD reserves the right to inspect Services at any time prior to acceptance. USWC warrants that the Services will be provided free from defects in performance, will conform to all specifications described in Exhibit P, and will be fit and sufficient for the purposes expressed in, or reasonably inferred from this Agreement.

Article 9
INDEMNIFICATION


  1. USWC shall indemnify and hold harmless USWLD, its owners, parents, subsidiaries, affiliates, agents, directors and employees against all Liabilities to the extent they arise from or in connection with: (1) the fault or negligence of USWC, its officers, employees, agents, subcontractors and/or representatives; and/or (2) the furnishing, performance or use of any Services under this Agreement or any product liability claims relating to any Services; and/or (3) failure by USWC, its officers, employees, agents, subcontractors and/or representatives to comply with the Article entitled "Compliance with Laws;" and/or (4) assertions under workers' compensation or similar employee benefit acts by USWC or its employees, agents, subcontractors, or subcontractors' employees or agents.

  2. USWLD shall indemnify and hold harmless USWC, its owners, parents, subsidiaries, affiliates, agents, directors and employees against all Liabilities to the extent they arise from or in connection with: (1) the fault or negligence of USWLD its officers, employees, agents, subcontractors and/or representatives; and/or (2) the furnishing, performance or use of any Services under this Agreement or any product liability claims relating to any Services; and/or (3) failure by USWLD, its officers, employees, agents, subcontractors and/or representatives to comply with the Article entitled "Compliance with Laws," and/or (4) assertions under workers' compensation or similar employee benefit acts by USWLD or its employees, agents, subcontractors, or subcontractors' employees or agents.


Article 10
LIMITATION OF LIABILITY


Neither party is liable to the other for consequential, incidental, indirect, punitive or special damages, including commercial loss and loss profits, however caused and regardless of legal theory or foreseeability, directly or indirectly arising under this Agreement. Notwithstanding the foregoing, the parties are liable in accordance with the provisions of this Agreement and this limitation of liability shall not apply to the indemnification obligations under this Agreement.

Article 11
FORCE MAJEURE


Except for the payment for Services already rendered, neither party shall be held responsible for delays or failures caused by fires; strikes or similar labor difficulties; embargoes; acts of the legislative, administrative, executive, or judicial branches of government after the date hereof; regulatory requirements promulgated after the date hereof; civil or military authorities; acts of the elements; the public enemy; or other similar causes beyond its control.

In connection with this Agreement, the parties acknowledge that USWC is a common carrier, obligated to perform certain services in the event of a national disaster. Both parties agree that USWC may suspend normal functions under this Agreement and perform such functions necessitated by the national disaster to recover or restore telecommunications services as required by law. Rates and charges shall be adjusted with the consent of both parties to reflect actual usage once the national emergency has passed. USWC may require designated USWLD personnel to attend occasional emergency preparedness training sessions and such attendance shall not be unreasonably denied by USWLD.

Article 12
INSURANCE


Both parties shall obtain and maintain insurance with coverage or limits consistent with U S WEST, Inc. practices and policies. Such insurance shall be commensurate with the type and/or amount of Service performed under this Agreement and the cost for such insurance shall be borne by the party performing the Service.

Either party may provide some or all of the insurance coverage required above through self-insurance in a manner consistent with U S WEST, Inc. practices and policies.

Each party shall also require its subcontractors, if any, to maintain appropriate levels of insurance and agrees to furnish the other party with certificates or adequate proof of such insurance, if requested. Either party may consult with U S WEST, Inc. - Risk Management for an evaluation of the appropriate insurance for subcontractors.

Article 13
WAIVER


The failure of either party to exercise any right shall not be construed to be a waiver unless agreed upon in writing. A waiver in any one instance will not constitute an amendment to this Agreement or indicate any continued waiver of such right on any other occasion.

Article 14
REGULATORY SUPPORT


This agreement shall comply with all state statutes and regulations, and USWC shall bear the financial risk if it does not. The parties agree that to the extent USWC is under the regulation of federal or state agencies, USWLD will provide cooperation and support for USWC's response to regulatory inquiries or discovery requests concerning this Agreement or relationships derived from this Agreement.

Article 15
COMPLIANCE WITH LAWS


  1. The parties shall obtain and maintain at its own expense all permits and licenses and pay all fees required by law with respect to any Services and/or performance of this Agreement. The parties shall, in connection with performance of and Services under this Agreement, comply with all applicable federal, state, and local laws, ordinances, rules, regulations, court orders, and governmental or regulatory agency orders ("Laws"), including, without limitation:

    1. The Telecommunications Act of 1996 and all rules, regulations and orders issued in connection with that Act and this Agreement shall, to the greatest extent possible, be construed to be consistent with the same.

    2. Laws relating to non-discrimination in employment, fair employment practices, equal employment opportunity, employment opportunities for veterans, non-segregated facilities, and/or employment of the disabled, except to the extent a party is exempt therefrom; and the Laws and contract clauses required by those Laws to be made a part of this Agreement are incorporated herein by this reference.

    3. The Laws referred to in the Article entitled "Independent Contractor".


  2. USWC acknowledges that Purchase(s) and/or Confidential Information ("Exports") may be subject to U.S. and applicable foreign export laws or regulations. USWC shall perform its obligations under this Agreement in a manner consistent with the requirements of all applicable U.S. and all applicable foreign laws and regulations, including the U.S. export laws and regulations, the Foreign Corrupt Practices Act, and anti-boycott laws, and U.S. export laws and regulations prohibiting the unauthorized export or re-export of certain items to residents of countries listed in U.S. Export Administration Regulations.

  3. The requirements of this Article shall survive the expiration, termination or cancellation of this Agreement. All provisions of this Article shall also apply to all subcontractors, and similar terms shall be included in all USWC's contracts with subcontractors.


Article 16
GOVERNING LAW


This Agreement shall be governed by and construed in all respects in accordance with the laws of the State of Colorado or such other state as agreed upon by the parties.

Article 17
AMENDMENTS


Amendments, modifications, additional exhibits, and supplements to this Agreement will be enforceable provided (1) they shall be in writing, shall reference this Agreement, and shall be signed by an authorized representative of each party, and, (2) unless otherwise expressly stated, they shall not be construed to adversely affect vested rights or causes of action which have accrued prior to the effective date of such amendment, modification, additional exhibit, or supplement. The term "this Agreement" as used herein shall be deemed to include any future amendments, modifications, supplements, and additional exhibits made in accordance herewith.

Article 18
NOTICES


Where written notices, demands, or other communications are required under this Agreement, they shall be deemed duly given when made in writing and delivered to the other party's address listed below. Addresses may be changed by written notice to the other party. Notices shall be delivered by hand, overnight courier service or certified mail, return receipt requested. Notification will be deemed to have taken place upon delivery, if delivery is by hand, overnight courier service or five (5) calendar days after posting if sent by certified mail. (USWLD) (USWC) U S WEST Long Distance, Inc. U S WEST Communications, Inc. Attention: Contract Manager Attention: Contract Representative 1801 California Street, Room 2800 Contract Development & Services Denver, CO 80202 188 Inverness Drive West, Suite 600 Englewood, CO 80112

Article 19
CONTRACT ADMINISTRATION


  1. Each party shall appoint a Contract Manager who shall be responsible for the management of the relationship between the parties. Interpretations, amendments, negotiations, modifications, requests for audits and/or examinations relating to this Agreement shall be initiated and managed by the Contract Managers.

  2. USWC shall appoint Contract Administrators for the Services offered in the specific Exhibits to this Agreement. The Contract Administrator shall be responsible to oversee that the services are provided as specified in the Exhibit, initiate billing and monitor payment and provide further information regarding the Service and/or billing if USWLD requests. The Contract Administrator shall resolve such inquiries within thirty (30) days.

  3. If the Contract Administrator is unable to provide sufficient information to USWLD regarding the Services delivered and/or the amounts invoiced, the parties will notify their respective Contract Managers and Dispute Resolution procedures will be initiated.


Article 20
DISPUTE RESOLUTION




  1. Any claim, controversy or dispute which arises between the parties, their agents, employees, officers, directors or affiliates ("Dispute") which the parties are unable to settle through consultation and negotiation may be mediated under the Commercial Mediation Rules of the American Arbitration Association ("AAA") by a mutually acceptable mediator. Any Dispute which cannot be resolved through negotiation or mediation shall be resolved by binding arbitration as provided in this Article. The arbitrability of claims shall be determined under the Federal Arbitration Act, 9 USC Secs. 1-16. Notwithstanding the foregoing, the parties may cancel or terminate this Agreement in accordance with its terms and conditions without being required to follow the procedures set forth in this Article.

  2. A single arbitrator engaged in the practice of law, who is knowledgeable about the subject matter of this Agreement and the matter in Dispute, shall conduct the arbitration under the rules of the AAA then in effect, except as otherwise provided herein. The arbitrator shall be selected in accordance with AAA procedures from a list of qualified people maintained by the AAA. The arbitration shall be conducted in Denver, Colorado, and all expedited procedures prescribed by the AAA rules shall apply. The laws of Colorado shall govern the construction and interpretation of this Agreement. The arbitrator's decision and award shall be final, conclusive and binding, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

  3. Either party may request from the arbitrator injunctive relief to maintain the status quo until such time as the arbitration award is rendered or the Dispute is otherwise resolved. The arbitrator shall not have authority to award punitive damages. Each party shall bear its own costs and attorneys' fees, and the parties shall share equally the fees and expenses of the mediator and arbitrator.

  4. If any party files a judicial or administrative action asserting claims subject to arbitration, as prescribed herein, and another party successfully stays such action and/or compels arbitration of said claims, the party filing said action shall pay the other party's costs and expenses incurred in seeking such stay and/or compelling arbitration, including reasonable attorneys' fees.

  5. USWC agrees that in the event of any Dispute between the parties, it will continue to provide Services without interruption.


Article 21
NON-EXCLUSIVE AGREEMENT


It is expressly understood and agreed that this Agreement does not grant to USWC any exclusive privileges or rights and USWLD may contract with other suppliers for the procurement of comparable Services. Except as specifically identified in a Work Order, USWLD makes no guarantee or commitment for any minimum or maximum amount of Services hereunder.

Article 22
ASSIGNMENT


This Agreement shall be binding upon the parties' respective successors and permitted assigns. Neither party may assign or delegate this Agreement and/or any of its rights and obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld. Any such attempted assignment shall be void. However, either party may assign this Agreement and delegate any of its rights and/or obligations hereunder to its parents, subsidiaries, subsidiaries of its parents, or other affiliates, without the consent of the other party. Any assignment of amounts payable is void to the extent that it attempts to impose on USWLD obligations to the assignee, or to preclude USWLD from dealing solely and directly with USWC in all matters under this Agreement.

Article 23
SUBCONTRACTORS


Each party will be responsible for the proper performance of any subcontractor it hires which may be used to assist in the performance of Services; however, neither party will subcontract any work without the other party's prior written consent, which shall not be unreasonably withheld.

Article 24
SURVIVAL


All obligations and duties which by their nature extend beyond the expiration or termination of this Agreement shall survive and remain in effect beyond any expiration or termination.

Article 25
RIGHTS UPON ORDERLY TERMINATION


Upon termination or other expiration of this Agreement or any portion of the Services hereunder, each party shall return the other party's papers, material, and properties upon request and as specified in this Agreement. In addition, each party will assist the other in the orderly termination of this Agreement or any portion of this Agreement.

Article 26
RECORDS AND AUDITS


USWLD or its authorized representative shall have the right to audit USWC's books and records which relate to performance obligations under this Agreement and the charges billed for Services rendered hereunder, including, but not limited to, wage rates, details of expenses incurred and time records, provided such audits are conducted during normal business hours and USWC is given thirty (30) calendar days written notice. Such books and records shall be kept in a timely and accurate manner and in accordance with Generally Accepted Accounting Principles (GAAP).

Article 27
ENTIRE AGREEMENT


This Agreement, including its Exhibits, constitutes the entire Agreement between the parties and supersedes all prior agreements, representations, negotiations, statements or proposals related to the subject hereof.

Article 28
HEADINGS NOT CONTROLLING


The headings of sections and clauses are inserted for convenience only and are not intended to affect the meaning or interpretation of this Agreement.

Article 29
THIRD-PARTY BENEFICIARY


Nothing in this Agreement is intended to create any rights in a third-party beneficiary.

Article 30
AFFILIATE


For purposes of this Agreement, ("Affiliate") means any entity which directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with one of the parties hereto. For the purpose of this Agreement, "control" means (i) in the case of corporate entities, direct or indirect ownership of more than ten percent, and (ii) in the case of non-corporate entities, direct or indirect ownership of more than ten percent.

Article 31
SEVERABILITY


Any term or provision of this Agreement which is held to be invalid, void, unenforceable or illegal will in no way affect, impair or invalidate the remaining terms or provisions, which will remain in full force and effect, consistent with the original intent of the parties. However, if such provision is an essential element of the Agreement, the parties shall promptly attempt to negotiate a substitute therefore.

Article 32
CANCELLATION FOR DEFAULT


Either party may cancel this Agreement and/or any Order(s), in whole or part, without liability, by giving written notice of breach or default if the other (1) becomes insolvent, unable to pay debts when due, or the subject of bankruptcy proceedings not terminated within thirty (30) days of any filing; or makes a general assignment for the benefit of creditors; or if a receiver is appointed for substantially all of its property; or (2) materially breaches or defaults on its obligations under this Agreement and, if the breach or default can be cured, fails to cure the breach or default within thirty (30) days after receipt of written notice to cure; or (3) commits breaches on obligations other than payment, repetitively, or at least three separate significant times within any four-month period. Customer may cancel any Order(s) in whole or in part, without liability, if USWC fails to Deliver conforming Services under that Order on time.

If Services are being provided, USWLD shall have the right to take over and complete the Services at USWC's expense.

If USWLD cancels this Agreement and/or any Order(s) for USWC's default or breach, it shall be entitled to recover from USWC all losses, damages and expenses incurred as a result of USWC's default or breach. USWC shall refund to USWLD amounts previously paid for Services which, due to such cancellation, cannot reasonably be used by USWLD, and shall bear all expenses for their removal and return. USWC shall, at USWLD's option, promptly remove Services or bear the cost of removal. USWC shall restore or bear the expenses of restoration of USWLD's property to its original condition at the direction of USWLD and refund to USWLD all monies previously paid for such Services.

If USWC cancels this Agreement and/or any Order(s) for USWLD's default or breach, it may recover from USWLD reasonable expenses incurred as a direct result of USWLD's default or breach, which shall not exceed the amounts which USWLD has not yet paid under the terms hereof. USWLD shall not be liable for incidental, consequential or indirect damages, including but not limited to lost profits or unallocated overhead.

Article 33
SEVERAL LIABILITY AND JOINT DISCOUNTS


The term USWC as used herein may be applicable to one or more parties and the singular shall include the plural. If more than one party is referred to as USWC herein, then their obligations and liabilities shall be several, not joint. Notwithstanding the foregoing, all Services under this Agreement and/or related agreements shall be cumulative for purposes of determining: (1) whether USWC has met any minimum purchase requirements; (2) credits which may be applicable; (3) USWC's forecasts; (4) the level of discount, if any, which shall apply to any Services.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and year first written above.

U S WEST Long Distance, Inc.   U S WEST Communications, Inc.
     
Kathy R. Stephens   Kristine M.Ringsdorf
Signature   Signature
     
Kathy R. Stephens   Kristine M.Ringsdorf
Name Printed or Typed   Name Printed or Typed
     
Vice President   Executive Director - Finance
Title   Title
     
9-21-98   8-15-98
Date   Date


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