Rhythms Net Connections
San Francisco, CA
1-877-882-8534 x 6343 Direct
1-877-749-8454 Fax
Web address: www.rhythms.com


Date: Mon, 8 Nov 1999 16:17:27 -0700


Mr. Rod Welch
rowelch@attglobal.net
The Welch Company
440 Davis Court #1602
San Francisco, CA 94111 2496

Subject:   Rhythms DSL Information


Dear ROD,

Thank you very much for taking a few minutes today to discuss Rhythms' enterprise-grade DSL solutions and your current data-com needs. I am pleased to present the following draft of ideas based upon your initial conversation.

We can connect the six users on a single DSL line , that cost is $139.00. This includes 1 static IP and 1 email account. Costs for additional email accounts is $ 3.00 each. For web hosting the cost is $ 35.00 per month with a $ 50.00 set up fee.

The questions you asked regarding service levels are best addressed in the attachment labeled Service Level Agreement or SLA. Credits for lack of service and downtime are explained in General Terms.

You will also find various attachments regarding Power Internet (Internet Access) and Branch Office Interconnect (BOI).

I would love to have the opportunity to speak with you further to refine these ideas, and will telephone you later to follow up. In the meantime, please do not hesitate to contact me directly at (877)882-8534, ext. 6343 with any questions or comments.

We are absolutely committed to excellence, and to exceeding your expectations. We look forward to the opportunity to prove it to you.

Sincerely yours,

Tony Alvizu

Account Manager
talvizu@rhythms.net




Recent Press About Rhythms...

..FORTUNE MAGAZINE names Rhythms as one of its 12 "Cool Companies for 1999". GO http://www.pathfinder.com/fortune/cool/rhythms.html

..TELEPHONY MAGAZINE names Rhythms' CEO as one of its "Ten to Watch for 1999" Dec 21, 1998 issue. GO http://www.internettelephony.com

..RED HERRING MAGAZINE names Rhythms to its IPO Hall of Fame for being the 8th largest first day gain in IPO history. GO http:// www.redherring.com/insider/1999/0415/inv-halloffame2.html








Attachment 1:

Rhythms Power Internet Service Level Agreement


Network Availability

Rhythms is committed to providing a reliable network for its customers. With that goal, Rhythms target for Network Availability is 99.9 % per month. Rhythms' Network Availability is defined as:

1 - Total minutes of connection downtime in given month

# of minutes in month

The availability target does not account for natural disasters, scheduled outages on Rhythms' Network, scheduled outages on the Internet Service Provider (ISP) network, or end user equipment outages. Network downtime is calculated commencing with the date and time on which the customer opens the trouble ticket with Rhythms and ending upon confirmation from Rhythms that the Network Availability has been restored.

If Rhythms does not meet 99.9 % Regional Network Availability per the above definition, Rhythms will credit the customer for each affected End-user Connection 10% of the monthly service charge.

Network Delay

Rhythms is committed to providing fast Internet transport for its customers. Rhythms supports 100 ms as the average round trip transmission time for a 64-byte message from the DSL Access Multiplexer interface out to the ISP network and back.

Rhythms defines round trip message delay as the sum of the following:

If Rhythms does not meet the delay objective on average for the entire month, Rhythms will credit the customer 10% of the monthly service charge.

Throughput

Rhythms is committed to minimizing network congestion for its customers. Rhythms' target for the customer to achieve the speed of their contracted access through the Rhythms' Regional Network is 99.9% over a one-month period. Throughput is defined as the ability of the network to transmit traffic at the contracted access speed through Rhythms' network only, not including the ISP network.

If Rhythms does not meet the throughput target, Rhythms will credit the customer 10% of the monthly service charge.

Mean Response Time

Rhythms commits itself to providing the best customer care experience in the telecommunications industry. To that end, Rhythms promises to answer the phone within 20 seconds of the first ring, and a customer is on hold no longer than 30 seconds.

Mean Time to Restore Service

Rhythms commits itself to restoring service as quickly as possible. Rhythms guarantees restoration of services within the following time frames:

Customer Connections:

Rhythms will manage the local loop vendor (or Incumbent Local Exchange Carrier) on behalf of the customer for any repairs or problems related to Rhythms-provided connections.


General Terms

No credits will be provided for Availability, Throughput, or Network Latency prior to successful completion of installation. The customer must apply to Rhythms for credit. Credits provided by Rhythms hereunder shall not be cumulative for any single failure or greater than 50% for the monthly charge within any given month and 100% for the installation charge.

No service credits will be granted to any customer for any service interruption or other transmission problems (including, without limitation, any inability by Rhythms to maintain 100% service under its Network Availability, Network Delay, and Throughput commitments contained herein) which are caused by or contributed to (a) by the customer, (b) by any third party (including the customer), (c) by atmospheric or environmental conditions, (d) by any Act of God or natural disaster, or (e) by any person who is not controlled by, or under common control with, Rhythms. Rhythms will nevertheless use its reasonable efforts to seek a prompt resumption of service and/or resolution of transmission problems in circumstances where such efforts have a reasonable likelihood of achieving those results promptly.

If there is any month in which you believe our service has not delivered the performance that we promised you, please notify us at 1-877-486-4552.


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