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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): May 1, 2023

 

Cogent Communications Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   001-51829   46-5706863
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

 

2450 N St NW,
Washington, D.C.
  20037
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: 202-295-4200

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class Trading Symbol Name of Each Exchange on 
which Registered
Common Stock, par value $0.001 per share CCOI NASDAQ Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company   ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Introductory Note.

 

As previously announced, on September 6, 2022, Cogent Infrastructure, Inc., a Delaware corporation (the “Buyer”) and a direct wholly owned subsidiary of Cogent Communications Holdings, Inc. (“Cogent”), entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Sprint Communications LLC, a Kansas limited liability company (“Sprint Communications”) and an indirect wholly owned subsidiary of T-Mobile US, Inc., a Delaware corporation (“T-Mobile”), and Sprint LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of T-Mobile (the “Seller”), providing for the acquisition by Cogent of the U.S. long-haul fiber network (including the non-U.S. extensions thereof) of Sprint Communications and its subsidiaries (the “Wireline Business”). In accordance with the terms and conditions set forth in the Purchase Agreement, on May 1, 2023 (the “Closing Date”), Cogent purchased from the Seller all of the issued and outstanding membership interests (the “Purchased Interests”) of Wireline Network Holdings LLC, a newly formed Delaware limited liability company that, following an internal restructuring, holds Sprint Communications’ assets and liabilities relating to the Wireline Business (such transactions contemplated by the Purchase Agreement, collectively, the “Transaction”).

 

On the Closing Date, the Buyer consummated the Transaction pursuant to the terms of the Purchase Agreement, providing a purchase price of $1 payable to the Seller for the Purchased Interests, subject to adjustments for cash, working capital and other customary items, which resulted in the Buyer paying to the Seller approximately $61.1 million.

 

The foregoing description of the Purchase Agreement and the Transaction does not purport to be complete and is qualified in its entirety by the terms and conditions of the Purchase Agreement, which is filed as Exhibit 2.1 to Cogent’s Current Report on Form 8-K filed on September 7, 2022, and is incorporated herein by reference.

 

Item 1.01.  Entry into a Material Definitive Agreement.

 

Transition Services Agreement

 

On the Closing Date, the Buyer entered into a transition services agreement (the “TSA”) with the Seller, pursuant to which the Seller and certain of its affiliates will provide to the Buyer and its affiliates, and the Buyer and certain of its affiliates will provide to the Seller and certain of its affiliates, on an interim basis following the Closing Date, certain specified services (the “Transition Services”) to ensure an orderly transition following the purchase and sale of the Wireline Business. The services to be provided by the Seller and its affiliates include, among others, information technology support, back office and finance, real estate and facilities, vendor and supply chain management and human resources. The services to be provided by the Buyer and its affiliates include, among others, information technology and network support, finance and back office and other wireless business support.

 

The Transition Services are generally intended to be provided for a period of up to two years following the Closing Date, although such period may be extended for an additional one-year term by either party upon 30 days’ prior written notice. The fees for the Transition Services will be calculated by reference to the historic practice of and allocations of resources to support the Wireline Business or the other business of the Seller and its affiliates, as applicable, during the two (2) months prior to the Closing Date. Any third-party costs incurred in providing the Transition Services will be passed on to the party receiving such services at cost.

 

Either party to the TSA may terminate the agreement (i) with respect to any individual service for convenience upon 30 days’ prior written notice or (ii) in its entirety if the other party has failed to perform any of its material obligations and such failure is not cured within 30 days. The TSA provides for customary indemnification and limits on liability.

 

Commercial Services Agreements

 

On the Closing Date, T-Mobile USA, Inc., a Delaware corporation and direct subsidiary of T-Mobile (“TMUSA”), entered into an agreement for IP transit services (the “IP Transit Agreement”), pursuant to which TMUSA will pay an affiliate of Cogent an aggregate of $700 million, consisting of (i) $350 million in equal monthly installments during the first year after the Closing Date and (ii) $350 million in equal monthly installments over the subsequent 42 months.

 

 

 

 

In addition, on the Closing Date, the Buyer and TMUSA entered into an agreement for colocation, connectivity and voice services (the “Customer Subscriber Agreement”), pursuant to which the Buyer and certain of its affiliates will provide such services to the Seller for a per service monthly fee plus certain third-party costs incurred in providing the services.

 

The foregoing descriptions of the TSA, the IP Transit Agreement and the Customer Subscriber Agreement do not purport to be complete and are qualified in their entirety by the full text of such agreements, copies of which are filed as Exhibits 10.1, 10.2 and 10.3, respectively, hereto and are incorporated herein by reference.

 

Item 2.01.  Completion of Acquisition or Disposition of Assets.

 

The information set forth in the Introductory Note of this Current Report on Form 8-K is incorporated by reference into this Item 2.01 insofar as it relates to the Transaction.

 

Item 7.01.  Regulation FD Disclosure.

 

On May 1, 2023, Cogent issued a press release announcing the closing of the Transaction, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained in this Item 7.01 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Forward-Looking Statements

 

Except for historical information and discussion contained herein, statements contained in this Current Report on Form 8-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “projects” and similar expressions. The statements in this Current Report on Form 8-K are based upon the current beliefs and expectations of Cogent’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including risks related to the Transaction, such as the risk that any announcements relating to the Transaction could have adverse effects on the market price of Cogent’s common stock; the risk that the Transaction and its consummation could have an adverse effect on the ability of Cogent to retain customers, to retain and hire key personnel or to maintain relationships with its suppliers and customers and on its operating results and businesses generally; the risk that problems may arise in successfully integrating Cogent’s business with the Wireline Business, which may result in the combined company not operating as effectively and efficiently as expected; the risk that the combined company may be unable to achieve cost-cutting synergies or that it may take longer than expected to achieve those synergies and other factors; and other risks discussed from time to time in Cogent’s filings with the Securities and Exchange Commission, including, without limitation, Cogent’s Annual Report on Form 10-K for the year ended December 31, 2022. Cogent undertakes no duty to update any forward-looking statement or any information contained in this Current Report on Form 8-K or in other public disclosures at any time.

 

 

 

 

Item 9.01.  Financial Statements and Exhibits.

 

(d) Exhibits:

 

Exhibit    
Number   Description
     
10.1   Transition Services Agreement, dated as of May 1, 2023, by and between Cogent Infrastructure, Inc. and Sprint LLC.*†
     
10.2   IP Transit Agreement, dated as of May 1, 2023, by and between Cogent Communications, Inc. and T-Mobile USA, Inc. †
     
10.3   Customer Subscriber Agreement, dated as of May 1, 2023, by and between Cogent Infrastructure, Inc. and T-Mobile USA, Inc.*†
     
99.1   Press Release of Cogent Communications Holdings, Inc., dated May 1, 2023.
     
104  

Cover Page Interactive Data File (embedded within the Inline XBRL document). 

 

*In accordance with Item 601(a)(5) of Regulation S-K, certain schedules (or similar attachments) to this exhibit have been omitted from this filing. The registrant will provide a copy of any omitted schedule to the Securities and Exchange Commission or its staff upon request.

 

In accordance with Item 601(b)(10)(iv) of Regulation S-K, certain information (indicated by “[***]”) has been excluded from this exhibit. The registrant will provide an unredacted copy of the exhibit on a supplemental basis to the Securities and Exchange Commission or its staff upon request.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated:  May 1, 2023 

  Cogent Communications Holdings, Inc.
     
  By: /s/ David Schaeffer
    Name: David Schaeffer
    Title:   President and Chief Executive Officer

 

 

 

Exhibit 10.1

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item (601)(b)(10). Such excluded information is not material and is the type that the registrant treats as private or confidential.

TRANSITION SERVICES AGREEMENT

This TRANSITION SERVICES AGREEMENT (this “Agreement”) is made and entered into as of May 1, 2023 (the “Closing Date”), by and between Sprint LLC, a Delaware limited liability company (“Seller”), and Cogent Infrastructure, Inc., a Delaware corporation (“Buyer”). Buyer and Seller may be referred to herein as a “Party” and collectively as the “Parties,” as the context may require. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement (as defined below).

RECITALS

WHEREAS, subject to the terms and conditions of that certain Member Interest Purchase Agreement, dated as of September 6, 2022 (as amended, restated, modified or supplemented from time to time, the “Purchase Agreement”), by and among Seller, Sprint Communications LLC and Buyer, Buyer is purchasing from Seller all of the issued and outstanding membership interests of the successor-in-interest to Sprint Communications LLC with respect to the Business, as described in the Purchase Agreement; and

WHEREAS, in connection with the transactions contemplated by the Purchase Agreement, the Buyer and Seller have agreed to provide certain services to the other Party as set forth herein during a transition period beginning on the Closing Date and continuing for such periods of time as set forth in the Exhibits attached hereto.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I
SERVICES

1.01           Provision of Services.

(a)                In accordance with the terms and conditions of this Agreement, each Party agrees to provide, or cause one or more of its Affiliates (each, a “Provider”) or Third Party Service Providers (as defined below) to provide, the other Party, or to one or more of its Affiliates (each, a “Recipient”), (i) the services set forth in the Exhibits attached to this Agreement, (ii) any other services that are not set forth in Exhibits attached to this Agreement, but which are to be provided under this Agreement pursuant to Section 1.06 or Section 1.07, and (iii) any modifications to a service provided pursuant to clause (i) or (ii) hereof , as Seller and Buyer may mutually discuss in good faith and agree in writing to be provided under this Agreement (collectively, the “Services”). Each Provider will provide, or will cause Third Party Service Providers to provide, the Services for the time period and to the extent specified in the Exhibits attached to this Agreement, in a manner consistent in all material respects with that provided by or to the Business, as applicable, or obtained from Third Party Service Providers in respect of the Business or the Wireless Business in the six-month period immediately prior to the execution of the Purchase Agreement (“Signing”) (as applicable). The quantity and timing of delivery of each Service shall be that which Recipient reasonably requires in connection with such Service for the operation of the Business or the Wireless Business, as applicable, consistent in all material respects with the operation of the Business or the Wireless Business, as applicable, in the six-month period prior to Signing. Each Provider (or applicable Third Party Service Providers) shall perform the Services exercising the same degree of care, quality, skill and service level as they exercise in performing the same or similar Services for their own account, with priority substantially equivalent to that provided to their business operations.

(b)                Except as otherwise provided in this Agreement, the scope and amount of Services to be performed hereunder shall not be altered unless the Parties otherwise agree in writing.

(c)                The Parties acknowledge the transitional nature of the Services. Accordingly, as promptly as practicable following the execution of this Agreement, Recipient agrees that during the term of this Agreement, it shall take, and shall cause its Affiliates to take, all steps reasonably necessary or appropriate to make a transition of each Service to its own internal organization or to obtain alternate third-party sources to provide the Services; provided that Recipient shall not be required to transition any Service prior to the expiration date specified in the Exhibits with respect to such Service. The Parties agree that, as part of the Services, Provider shall support and assist Recipient with the migration of services being provided as Services to enable Recipient to assume responsibility for the performance thereof.

(d)                In providing the Services, except as may be expressly set forth in the Exhibits or otherwise agreed in writing pursuant to Section 1.06, each Provider shall not be obligated to: (i) maintain the employment of any specific employee; (ii) purchase, lease or license any additional equipment; (iii) provide any Services to the extent providing such Service would violate any Law; provided that each Provider shall use commercially reasonable efforts to provide such Service in a manner that complies with applicable Law; (iv) convert data from one format to another for the Recipient or transfer any of the Recipient’s data to any alternate supplier of the Services or pay any costs related thereto; (v) expand their respective facilities, systems or incur long-term capital expenses which have not been agreed to be reimbursed by Recipient; (vi) integrate the technology systems of Provider and Recipient for purposes of receiving the Services or pay any costs related thereto; (vii) develop or implement any new functionality on any computer hardware, software, network, internet or website environment used by either Party as of Signing (other than, in the case of Buyer, functionality acquired in respect of the Business pursuant to the Purchase Agreement) or (vi) provide any Service to the extent providing such Service (A) requires that Provider makes any requested investments into any Service for which it will not be reimbursed pursuant to this Agreement; (B) requires that Provider devotes substantial resources to accommodate any change in requirements for the Services in a manner that would unreasonably interfere with Provider’s conduct of its own business; (C) requires that Provider hires any material number of additional employees; or (D) requires that Provider makes commitments (e.g., expansion of contracts or entry into new contracts or agreements) that would extend beyond the period of performance of the relevant Services for which Recipient does not agree to reimburse Provider. For clarification, the foregoing exclusions are not intended to supersede (x) each Provider’s overall obligation to provide, or cause its Third Party Service Providers to provide, the Services in a manner consistent in all material respects with that provided by or to the Wireline Business or Business, as applicable, in the six-month period immediately prior to Signing, or (y) each Provider’s obligations set forth in Section 1.01(c). Recipient may not resell the Services (or any component thereof) to any third parties. The Parties agree that the Services exclude any service or functionality that is required to be provided under the other Ancillary Documents. It is understood that, except as otherwise agreed by the Parties pursuant to Section 1.01(a), the Services shall be provided for the purpose of conducting the Business substantially as conducted in the six-month period immediately prior to Signing.

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1.02           Third Party Service Providers.

(a)                Third Party Service Providers. Subject to the cost structure set forth in ARTICLE II, Provider may hire or engage one or more subcontractors, suppliers, vendors or other similar third parties that is not an Affiliate of Provider (each, a “Third Party Service Provider”) to perform all or any of its obligations under this Agreement; provided that Provider shall notify Recipient of any material changes to Third Party Service Providers after the Closing Date and take into consideration any good faith material concerns regarding such Third Party Service Provider in accordance with Section 7.10. Each Provider shall (i) use the same degree of care in selecting any such Third Party Service Provider as it would if such contractor were being retained to provide similar services to Provider, and (ii) in all cases remain primarily responsible for all of its obligations under this Agreement with respect to the scope of the Services and the standard for Services, in each case as and to the extent set forth herein. Except as expressly stated to the contrary in an Exhibit, Provider shall have the right to designate which of its personnel will furnish Services to Recipient and may remove or replace any such personnel in its sole discretion. Any act or omission of any Third Party Service Provider, or Provider that, if such act or omission were of Provider, would constitute a breach of this Agreement shall be deemed a breach of this Agreement by Provider.

(b)                Third-Party Non-Disclosure Agreements. To the extent that any third-party proprietor of information or software to be disclosed or made available to Recipient in connection with performance of the Services hereunder requires a non-disclosure agreement as a condition of such third-party proprietor’s consent to use of the same for the benefit of Recipient or to permit Recipient access to such information or software, if the applicable Recipient fails to enter a non-disclosure agreement with such third party and such third party refuses to permit Provider to disclose or make available to Recipient such information or software, Provider shall not be required to provide any Services for which the disclosure or making available of such information or software is required until such time as such Recipient party enters into a non-disclosure agreement with such third party or such third party otherwise permits Provider to disclose or make such information or software available to the applicable Recipient party.

(c)                Third Party Service Provider Agreement Contingencies. If Provider’s agreement with a Third Party Service Provider that provides services used in the Services expires before the end of the Term, or the vendor has an opportunity under its agreement with a Provider to increase the rates it charges for services that will be reimbursed by a Recipient to a Provider as part of the Services, Provider will notify Recipient of such circumstance at least thirty (30) days prior, or as soon as practicable following Third Party Service Provider’s notice to Provider, to the change taking effect and the Parties will work together in good faith to determine how to address it (e.g., and without limitation, by replacing such vendor with a vendor that provides services direct to Recipient).

1.03           Compliance with Laws. In performing its obligations under this Agreement, Provider shall comply in all material respects with all Laws applicable to it with respect to their provision of the Services.

1.04           Independent Contractor. In performing the Services, each Party’s relationship with the other Party shall be that of an independent contractor only. Nothing in this Agreement shall be construed as making the Parties partners or joint venturers, or as creating the relationship of employer and employee or principal and agent between the Parties. Each Party retains control over its representatives, and the representatives of one Party shall not be considered representatives of the other Party. Neither Party will be bound by any representation, act, or omission of the other Party. Except as otherwise expressly provided in this Agreement, neither Party has the right, power, or authority to create any obligation, express or implied, on behalf of the other Party.

1.05           Access. Provider or a Third Party Service Provider, as applicable, shall be provided with reasonable access to all facilities, equipment, systems, and personnel of Recipient necessary to provide the Services and fulfill its obligations under this Agreement. Provider’s or a Third Party Service Provider’s personnel, as applicable, shall comply with each Recipient’s commercially reasonable safety and security regulations while performing the Services or accessing the premises of Recipient, set forth in greater detail in the Annexes, as applicable. Each Recipient shall cooperate in good faith with each Provider (and Third Party Service Providers) in connection with Provider’s performance of the Services.

3

1.06           Requests for Additional or Revised Services. For any change requests regarding the Service (including an extension thereof beyond the term set forth in the applicable Exhibit for such Service) or a request for an additional Service that Recipient makes after the Closing Date (collectively, a “Change Request”), the following will apply: (a) for Change Requests to the Services that are required in order to ensure the Services will be provided in a manner consistent in all material respects with the six-month period immediately prior to Signing, Provider will review the Change Request in good faith and provide Recipient with an indication of whether Provider is able to entertain the Change Request; and (b) for Change Requests that represent additional services not required in order to ensure the Services will be provided in a manner consistent in all material respects with the six-month period immediately prior to Signing, Provider will have sole discretion to agree to entertain the Change Request or to decline such Change Request. If Provider will entertain the Change Request in accordance with either (a) or (b) above, as applicable, Provider will provide an estimate of the associated level of effort to implement the Change Request, provided Recipient has provided sufficient details necessary for Provider to perform such estimate. Provider will use commercially reasonable efforts to provide all estimates for Change Requests within fourteen (14) Business Days of receiving the Change Request or (if reasonably possible) more promptly, provided that if Provider does not provide estimates within such fourteen (14) Business Day period, Recipient may invoke the Escalation Process described in Section 7.10. For Change Requests involving software development or other changes to IT Systems, the Parties acknowledge that such Change Requests will follow Provider’s standard processes for estimating such work and Provider will strive to provide estimates within a commercially reasonable period of time, but such time period may exceed fourteen (14) Business Days. In no event will Provider be obligated to implement any Change Request unless the Parties agree in writing on an implementation schedule and the associated costs of implementing the Change Request.

1.07           Omitted Services. In the event that Recipient identifies any service not included in an Exhibit that (i) had been provided by or to the Business, as applicable, or obtained from Third Party Service Providers in respect of the Business or the Wireless Business in the six-month period prior to Signing, and (ii) is reasonably necessary for the operation of the Business, or the Wireless Business as applicable (each, an “Omitted Service”), Recipient shall provide notice to Provider, and Provider shall be required to provide such Omitted Service to Recipient in accordance with the cost structure as set forth in ARTICLE II. The Parties shall amend an Exhibit to include a description of the Omitted Service, the term for which such Service will be provided, and any other relevant terms. Such Omitted Service will thereafter be deemed to be a “Service” under this Agreement.

1.08           Services Baseline. The Parties acknowledge and agree that each Party has exercised due diligence in the preparation and review of the Exhibits attached hereto, and that the Services as set forth in the Exhibits hereto represent the most comprehensive description of the Services to be provided by each Provider to each Recipient to the best of the Parties’ knowledge as of the Closing Date.  The Parties will each conduct a baselining assessment within the first six months of this Agreement in order to determine if the Services set forth in the Exhibits need to be modified or updated (“Baselining Period”). During the Baselining Period, the Parties will meet to discuss any required revisions to the scope of the Services, and will work in good faith to amend the Services set forth herein to reflect such revisions.

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1.09           Operational Documents. The Parties will use commercially reasonable efforts to work together during the Term (as defined below) to create and maintain operational documents setting forth, among other things, Recipient’s specific instructions to Provider regarding the Service described in the Exhibits (“Operational Documents”). Any such Operational Documents will not be deemed to modify or supersede the terms of this Agreement (including without limitation Provider’s obligations to provide Services in accordance with this Agreement) and will not be deemed incorporated in this Agreement. Subject to the foregoing, the Parties agree that if either of them identifies concerns regarding the Operational Documents, they will seek to promptly work together in good faith to address such concerns and Recipient may invoke the Escalation Process described in Section 7.10 to address its concerns in circumstances in which Recipient believes such an approach will help to expedite resolution.

1.10           Good Faith Cooperation; Consents. During the term of this Agreement and subject to the terms of this Agreement, the Parties shall, and shall cause each of their respective Affiliates and each of the Parties’ and the foregoing entities’ respective directors, officers, employees, agents or advisors (collectively, “Representatives”) to (a) cooperate with each other in all matters relating to the provision and receipt of the Services, (b) enable Provider to provide, or cause to be provided, the Services in accordance with this Agreement, and (c) use commercially reasonable efforts to avoid taking any action that would interfere with or materially increase the cost of the Provider providing, or causing to be provided, the Services. Such cooperation shall include exchanging relevant information and using commercially reasonable efforts to maintain any necessary contract, license, lease or other agreement. Seller shall use commercially reasonable efforts to obtain such consents, licenses, sublicenses or other approvals from Third Party Service Providers necessary for each Party as Provider to perform, or cause to be performed, the Services in accordance with this Agreement (collectively, “Consents”). Seller shall bear all costs and expenses incurred in connection with attempting to obtain and obtaining any Consents. In the event that any Consents are not obtained, upon Recipient’s request, Provider shall reasonably cooperate with Recipient to identify and, if commercially reasonable, to implement, a work-around or other alternative arrangement for any affected Services at Seller’s cost and expense (except for any Consents required under agreements that Buyer has separately contracted with Third Party Service Providers and elects at its sole discretion to utilize such contract to provide Services in lieu of an existing provider).

1.11           Title to Equipment; Management and Control; Intellectual Property and Data.

(a)                Except as and to the extent otherwise expressly provided in this Agreement, any Exhibit hereto, any addenda or other signed document entered into by the Parties in connection with, or for the purposes of, this Agreement (collectively, the “TSA Documents”), the Purchase Agreement, or any other Ancillary Documents, all procedures, methods, systems, strategies, tools, equipment, facilities and other resources owned and used by Provider in connection with the provision of Services hereunder will remain the property of Provider and, except as otherwise provided in the TSA Documents, will at all times be under the sole direction and control of Provider.

(b)            Except as may otherwise be expressly provided in the TSA Documents, the Purchase Agreement or any other Ancillary Documents, the management of, and control over, the provision of the Services by Provider shall reside solely with Provider.

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(c)                Except as and to the extent otherwise expressly set forth in the TSA Documents, the Purchase Agreement or any other Ancillary Documents, each Party and its respective Affiliates shall retain ownership of its and its Affiliates’ Intellectual Property and data existing as of the date of this Agreement. Except as may be expressly set forth in the Exhibits, each Party agrees that any Intellectual Property or data of the other Party or its Affiliates, Representatives or licensors, as well as any Intellectual Property or data of Third Party Service Providers, made available to such Party or its Affiliates in connection with the Services, and any derivative works, additions, modifications, translations or enhancements of such Intellectual Property or data created or developed by a Party or its Affiliates pursuant to this Agreement (collectively, “New Work”), are and shall remain the sole property of the original owner of such underlying Intellectual Property or data (the “Original Owner”). For clarity, all Company Owned Intellectual Property shall be deemed the sole property of Buyer or its applicable Affiliate for purposes of determining the Original Owner of such underlying Intellectual Property. Each of the Parties assigns all of its rights, title and interest in and to such New Works to the Original Owner and agrees to execute and to cause its Affiliates to execute all such further instruments and documents and to take all such further action as the other Party may reasonably require in order to effectuate the terms and purposes of this Agreement. To the extent necessary for each Recipient to receive the full benefit of the Services and each Provider to provide the Services in accordance with this Agreement, each of Provider and Recipient, for itself and on behalf of its respective Affiliates, hereby grants to the other, a non-exclusive, sublicensable (for the benefit of such Party and its Affiliates, but not for the independent use by a third party) license to the Intellectual Property that is owned and controlled by the granting Party (including any New Works) and used in connection with the provision or receipt of the Services, but only to the extent and for the duration necessary for each Recipient to receive the full benefit of the Services and for each Provider to provide the applicable Service as permitted by this Agreement. Upon the expiration or termination of each Service in accordance with ARTICLE IV, the license to the relevant Intellectual Property will terminate, and upon the expiration or earlier termination of this Agreement in accordance with the terms hereof, all licenses granted hereunder shall terminate immediately.

1.12           Data Privacy and Security.

(a)                The Parties acknowledge and agree that the following sets forth each Party’s general obligations under this Agreement in connection with data privacy and security, and is subject to any specific additional or more specific obligations expressly set forth in applicable Exhibits or Annexes hereto.

(b)                Each Provider will process, store, and transmit, as applicable, any subscriber data of subscribers of, as applicable, the Business or the Wireless Business, and any other Confidential Information of each Recipient (collectively, “Protected Information”) to the extent such information is in each Provider’s possession or control, in accordance with all applicable Laws, CPNI rules and with each Provider’s internal information security policies, a copy of which will be provided to the Recipient before the Closing Date, as they may be updated by Provider from time to time. Any processing, storage, or transmission of Protected Information, by either Party, shall strictly be for the purposes of providing the Services set forth in this Agreement, as needed to respond to an emergency situation involving potential loss of life or bodily injury, or as required by all applicable Laws.

(c)                Each Recipient will process, store, and transmit, as applicable, any subscriber data of subscribers of the Business and the Wireless Business (as applicable) and any other Confidential Information of each Recipient in accordance with all applicable Laws, CPNI rules and each Recipient’s information security policy, as it may be updated from time to time.

(d)                Each Party and its respective Affiliates shall not, and shall make reasonable best efforts to cause each of their respective Representatives and contractors to not, break, bypass or circumvent, or attempt to break, bypass or circumvent, any security system of the other Party or its Affiliates in connection with the provision or the receipt of the Services hereunder or obtain access to any program or data other than that to which access has been specifically granted by the other Party or its Affiliates in connection with the provision and receipt of Services. Each Party shall, and shall make reasonable best efforts to cause its respective Affiliates to, use reasonable best efforts to ensure that, in connection with the provision or the receipt of Services, no computer virus or other malicious code is introduced to the IT systems of the other Party or its Affiliates.

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(e)                Each of the Parties shall maintain reasonable, up-to-date security measures designed to (i) prevent unauthorized access to its IT systems and all data used in connection with the provision and receipt of the Services, (ii) provide access only to those of its personnel who are specifically authorized to have access to the IT systems of the other Party, and (iii) prevent unauthorized access, use, destruction, alteration or loss of information contained therein. Such measures shall in no event be less stringent than the industry standard security measures used by companies of a similar size and in a similar business, and in the case of clauses (ii) and (iii), those used to safeguard such Party’s own IT systems processing data of the same kind. Such measures shall include, where appropriate, use of updated firewalls, virus screening software, logon identification and passwords, encryption, intrusion detection systems, logging of incidents, periodic reporting, and prompt application of up-to-date security patches, virus definitions and other updates.

(f)                 While using or accessing any IT systems of the other Party in connection with the provision or receipt of the Services, each Party shall, and shall cause each of its Affiliates, Representatives and contractors (as applicable) to, adhere in all respects to the processes, policies and procedures applicable to that IT system with respect to IT security (including any of the foregoing with respect to confidential information, data, communications and system privacy, operation, security and proper use) as in effect on the date of this Agreement or as communicated to such Party reasonably in advance from time to time in writing.

ARTICLE II
COMPENSATION

2.01           Compensation.

(a)                Fees and Expenses. Except as otherwise set forth in the Exhibits, as consideration for the Services actually received by Recipient, Recipient shall pay Provider (i) all documented third party costs related to the provision of the Services (without markup, margin or premium of any kind) actually incurred and (ii) the agreed-upon fees for each of the Services set forth in each of the Annexes hereto in each case of (i)-(ii), consistent with the historic practice of and allocations of resources to support the Business or Wireless Business, as applicable, during the two (2) months prior to the Closing Date.

(b)                Invoices. Within 30 days after the end of each calendar month, Provider will submit one invoice to Recipient for any amounts payable by Recipient under this Agreement for the previous month, specifying in reasonably sufficient detail, the fees payable and to which Service each is applicable (the “Invoice”). Provider agrees to afford Recipient, upon reasonable notice, access to such information, records and documentation of Provider as Recipient may reasonably request in order to verify any invoices and charges for Services hereunder.

(c)                Additional Costs. If Provider is required to incur additional costs to accommodate a modification to the Services, then the Parties shall negotiate in good faith with respect to the additional costs and shall modify this Agreement with respect to such modification, to reflect the increased costs agreed upon by the Parties.

(d)                Invoice Disputes. Recipient must notify Provider of any disputed invoice amounts within thirty (30) calendar days following receipt of the Invoice, and the Parties will work in good faith to expeditiously resolve any dispute. Regardless of any notations that may accompany any payment, neither the Provider’s acceptance of any payment nor Recipient’s payment of any amounts will be deemed a waiver of any disputed amounts or invoices. In the event of a dispute over an invoice, Recipient will nevertheless promptly remit to the Provider all undisputed amounts set forth in such Invoice and, if the disputed amount exceeds One Million Dollars ($1,000,000), pay the disputed amount into an escrow account mutually acceptable to the Parties. If the disputed amount (taking into account all amounts currently in dispute) is less than One Million Dollars ($1,000,000), Recipient has no obligation to pay any portion of the disputed amount until the dispute has been resolved in accordance with this Agreement. Any disputed invoice will be resolved pursuant to the dispute escalation provisions of Section 7.11 and the Parties shall promptly cause the escrow agent to pay the escrowed amount to the prevailing Party. Withholding or paying into escrow any amount that is not disputed in good faith and in accordance with this Section shall be deemed to be a failure to pay.

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(e)                Payment Due Date. Except as set forth in an Annex hereto, Recipient shall pay Provider’s (or its Affiliates’) undisputed invoices with respect to the Services within thirty (30) calendar days after the Recipient’s receipt of each Invoice (the “Due Date”). All amounts payable by Recipient hereunder shall be remitted to Provider in United States Dollars.

(f)                 Late Payments. If Recipient fails to pay undisputed fees due, Provider shall provide notice to Recipient and Recipient shall have ten (10) days to pay the amounts due (“Payment Cure Period”). Following the Payments Cure Period, late payments of undisputed fees shall bear interest at, the lesser of (i) 1% per month or (ii) the highest rate allowable by applicable Law, following the applicable due date for such payment.

(g)                Payment Default. If the payment in full of any Invoice is not received by Provider from Recipient by the Due Date (except for any amount disputed in good faith, until such time as such dispute is settled in accordance with Section 2.01(d) and Section 7.11), and the amount to be received by the Due Date is in excess of One Million Dollars ($1,000,000), individually or in the aggregate for all amounts not paid and due as of such Due Date, the Provider shall have the right to suspend the Services until such time as the Recipient has paid in full all amounts then due, including any accrued interest. Immediately after such payment in full is received by the Provider, the provision of Services will resume.

2.02           Taxes. The fees do not include sales, use, privilege, excise, goods and services and other similar taxes (the “Transaction Level Taxes”) applicable to the provision of the Services. Provider shall invoice Recipient for any and all Transaction Level Taxes imposed or assessed as a result of the provision of Services to Recipient; provided, however, that Provider shall be responsible for net income, net worth/capital stock and property taxes imposed on Provider. To claim a tax exemption, Recipient must provide Provider with valid evidence and documentation of the tax exemption as required by applicable federal, state, or local authority, and such tax exemption will be applied prospectively. Recipient and Provider will cooperate to identify the information necessary to determine the Transaction Level Taxes, including a description of the Services, and, as applicable, the location(s) of delivery, receipt, use, or access. Provider will appropriately and sufficiently describe and separately state on the invoice each taxable and nontaxable component of the Services along with the Transaction Level Taxes. Provider and Recipient will reasonably cooperate to minimize any taxes, duties or tariffs owed in connection with the Services.

2.03           Records and Audit. Each Party shall maintain true and correct records of all receipts, invoices, reports and such other documents relating to the provision of Services and assessment of fees hereunder in accordance with its standard accounting practices and procedures, consistently applied. Each Party shall retain such accounting records and make them available to the other Party’s authorized representatives and auditors upon reasonable notice, but not more than once per calendar year, in order to verify the fees charged hereunder for a period of not less than one (1) year from the closing of each calendar year during the Term.

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ARTICLE III
CONFIDENTIAL INFORMATION

3.01           Confidentiality. Each Party (a “Non-Disclosing Party”) shall maintain in confidence all confidential or proprietary information of, or concerning, the other Party (a “Disclosing Party”), its Representatives, Affiliates, members, systems and customers, including commercial, financial, and technical information, customer or client lists, programs, procedures, data, documents, computer information and databases, business plans, trade secrets, budget forecasts, business arrangements, information regarding specific transactions, financial information and estimates, and long-term plans and goals (“Confidential Information”) and shall not disclose such Confidential Information to any third party except to those of its Representatives as are necessary in connection with the performance of such Non-Disclosing Party’s obligations under this Agreement, and then strictly on a need-to-know basis. In maintaining the confidentiality of Confidential Information, the Non-Disclosing Party shall exercise the same degree of care that it exercises with its own confidential information, and in no event less than a reasonable degree of care. The Non-Disclosing Party shall ensure that each of its Representatives holds in confidence and makes no use of the Confidential Information for any purpose other than those permitted under this Agreement or otherwise required by Law.

3.02           Exceptions. The obligation of confidentiality contained in this ARTICLE III shall not apply to the extent that (a) the Non-Disclosing Party is required to disclose information by order or regulation of a Governmental Authority; provided, however, that the Non-Disclosing Party shall not make any such disclosure without first notifying the Disclosing Party and allowing the Disclosing Party a reasonable opportunity to seek injunctive relief from (or a protective order with respect to) the obligation to make such disclosure; (b) the disclosed information was, at the time of such disclosure to the Non-Disclosing Party, already in (or thereafter enters) the public domain other than as a result of actions of the Non-Disclosing Party or its Representatives or Affiliates in violation hereof; (c) the disclosed information was known to the Non-Disclosing Party prior to the date of disclosure to the Non-Disclosing Party, except for information known by a Non-Disclosing Party due to it being an Affiliate of the Disclosing Party prior to the Closing Date; or (d) the disclosed information was received by the Non-Disclosing Party on an unrestricted basis and not under a duty of confidentiality to the Disclosing Party.

3.03           Unauthorized Disclosure. The Non-Disclosing Party acknowledges and agrees that the Confidential Information constitutes proprietary information and trade secrets valuable to the Disclosing Party, and that the unauthorized use, loss, or outside disclosure of such Confidential Information may cause irreparable injury to the Disclosing Party.

3.04           Return of Information. The Non-Disclosing Party shall, upon the request of the Disclosing Party or the termination or expiration of this Agreement, return to the Disclosing Party all Confidential Information in its possession or control, or destroy such Confidential Information, including any copies or reproductions thereof; provided that the Non-Disclosing Party shall be permitted to retain such copies of the Confidential Information (i) for bona fide record and compliance purposes, (ii) as may be required by applicable Law, rule or regulation, or (iii) to the extent such Confidential Information is “backed-up” on storage drives and cannot be expunged without undue effort.

3.05           Injunctive Relief. The Parties acknowledge and agree that the remedies at law for any breach of this ARTICLE III may be inadequate and that the damages resulting from any such breach may not be readily susceptible to being measured in monetary terms. Accordingly, the Parties acknowledge and agree that upon any breach, or threatened breach, by such Party of the terms and conditions of this ARTICLE III, the other Party will be entitled to seek injunctive relief and may obtain any order restraining any threatened or future breach. Nothing in this Section 3.05 shall be deemed to limit, in any way, the remedies at law or in equity of the Parties for a breach by the other Party of any of the provisions of this Agreement.

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ARTICLE IV
TERM AND TERMINATION

4.01           Term of Services. The term (the “Term”) of this Agreement shall be for a period commencing on the Closing Date and ending with respect to each Service as specified in the Exhibits with respect to such Service; provided, however, that the initial Term for any such Service shall not exceed two (2) years from the Closing Date (each, an “Expiration Date”) unless terminated earlier as otherwise provided in Section 4.02. Recipient may, upon thirty (30) days’ written notice prior to the then-current Expiration Date, obtain a single, one (1) year extension term for this Agreement and any Service set forth on the applicable Exhibit (the “Extension Term”) at rates equal to those provided for in ARTICLE II plus a twenty percent (20%) price increase to be applied throughout the Extension Term. Nothing in this provision shall limit the ability of a Recipient to place a Change Request requesting a subsequent extension of this Agreement and any Service set forth on the applicable Exhibit (each, an “Extension Period”), which the Parties will assess and negotiate in good faith pursuant to the Section 1.06. Any termination or expiration of any Service shall not terminate this Agreement with respect to any other Service; provided, that the Term of this Agreement shall expire with respect to all Services on the expiration of any Extension Periods.

4.02           Termination.

(a)                Termination of a Service. Recipient shall have the right to terminate any Service or reduce the amount of Services provided under this Agreement at any time, in each case, upon at least thirty (30) days’ prior written notice of its intent to cancel any Service or reduce the amount of any Services and shall obtain, if applicable and set forth in the Annex, an adjustment or credit for the fees due for such reduced Services as further described under ARTICLE II.

(b)                Breach of Agreement. Subject to the terms and conditions of ARTICLE VI, Recipient may terminate this Agreement in the event of any breach or default by Provider of Provider’s material obligations hereunder, and Provider’s breach or default continues unremedied for a period of thirty (30) days after Provider receives written notice thereof. Provider may terminate this Agreement in the event of any breach or default by Recipient of its payment obligations under ARTICLE II following ninety (90) days after invoking the Escalation Process described in Section 7.10.

(c)                Sums Due. In the event of the termination or expiration of this Agreement or any Services, Recipient shall pay to Provider all unpaid amounts, including without limitation any interest owed for late payments, and reimburse all expenses that have been incurred by Provider, in each case, as of the date of such termination or expiration.

(d)                Effect of Termination. Upon the Expiration Date of any Service, all rights of each Recipient under this Agreement to receive such Services shall cease, but such expiration shall not affect this Agreement with respect to any other Services as to which the Term has not expired or been terminated. Section 2.02 (Taxes), ARTICLE III (Confidential Information), Section 4.02(c) (Sums Due), ARTICLE V (Warranties, Indemnification and Remedies) and ARTICLE VII (Miscellaneous) shall survive the expiration or termination of this Agreement.

4.03           Service Interruption or Suspension. Provider will have the right to temporarily interrupt or suspend (a) the provision of one or more Services for the emergency maintenance of the systems necessary for such Services or the operation of Provider’s businesses or (b) the operation of the facilities or systems of Provider providing any such Services if such action is reasonably necessary to avoid a material adverse impact on the systems, operations, or businesses of Provider; in each case, provided, however, that (x) Provider will use its reasonable best efforts to resolve any such emergency as promptly as practicable, and Provider will limit the interruption or suspension to those users or services necessary to address the emergency or material adverse impact and promptly resume the impacted Services once the emergency or material adverse impact has been resolved; (y) to the extent possible, Provider shall provide an advance notice to Recipient as promptly as practicable prior to any such interruption or suspension; and (z) Recipient’s payment obligation under ARTICLE II shall be suspended in the event of a material interruption until the applicable Service is resumed; provided that (i) Recipient must first invoke the Escalation Process described in Section 7.10, and (ii) if the Escalation Process doesn’t resolve the material interruption to Recipient’s satisfaction, Recipient shall solely be temporarily relieved of the obligation to pay for the affected Service. If prior notice is not practicable, Provider will provide written notice in reasonable detail immediately following such suspension of services identifying the affected Services. Provider shall use, and shall use reasonable best efforts to direct its and their Third Party Suppliers to use, commercially reasonable efforts to maintain the facilities or systems necessary for the provision of the Services to avoid any such interruption or suspension of the Services.

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ARTICLE V
WARRANTIES, INDEMNIFICATION AND REMEDIES

5.01           Warranties.

(a)                Each Party is duly organized and validly existing under the laws of the jurisdiction of its organization. Each Party has all requisite corporate power and authority to conduct the businesses in which it is engaged and to own and use the assets and properties owned and used by it, to enter into this Agreement and to consummate the transactions contemplated by this Agreement.

(b)                Each Party has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder and thereunder. The execution and delivery by each Party of this Agreement, the performance by each Party of this Agreement and the consummation by each Party of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on each Party’s part. This Agreement has been duly and validly executed and delivered by each Party and constitutes or will constitute, assuming the due authorization, execution and delivery by the other Party, a valid and binding obligation of each Party, enforceable against each Party in accordance with its terms.

(c)                Each Party represents and warrants to the other Party that the execution and delivery by such Party of this Agreement and the performance by such Party of its obligations under this Agreement do not and will not result in a violation or breach of any Law, or any contract, agreement or other obligation or commitment to which such Party or any of its Affiliates is a party or by which it is bound.

(d)                SUBJECT TO SECTION 1.01(a), PROVIDER MAKES NO REPRESENTATIONS AND WARRANTIES OF ANY KIND, IMPLIED OR EXPRESSED, WITH RESPECT TO THE SERVICES, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH ARE SPECIFICALLY DISCLAIMED.

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5.02           LIMITATION ON LIABILITY. IN NO EVENT SHALL ANY PARTY HAVE ANY LIABILITY UNDER ANY PROVISION OF THIS AGREEMENT FOR ANY PUNITIVE, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES, INCLUDING LOSS OF FUTURE REVENUE OR INCOME, LOSS OF BUSINESS REPUTATION OR OPPORTUNITY RELATING TO THE BREACH OR ALLEGED BREACH OF THIS AGREEMENT, OR DIMINUTION OF VALUE OR ANY DAMAGES BASED ON ANY TYPE OF MULTIPLE, WHETHER BASED ON STATUTE, CONTRACT, TORT OR OTHERWISE, AND WHETHER OR NOT ARISING FROM THE OTHER PARTIES’ SOLE, JOINT, OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, CRIMINAL LIABILITY OR OTHER FAULT, EXCEPT (A) DAMAGES WHICH CANNOT BE EXCLUDED UNDER APPLICABLE LAW, (B) IN EACH CASE, WHERE SUCH DAMAGES WERE CAUSED BY OR RESULTED FROM, IN THE CASE OF DAMAGES INCURRED BY A RECIPIENT, THE PROVIDER’S KNOWING AND INTENTIONAL BREACH OF THIS AGREEMENT, OR IN THE CASE OF DAMAGES INCURRED BY A PROVIDER, THE RECIPIENT’S KNOWING AND INTENTIONAL BREACH OF THIS AGREEMENT, (C) DAMAGES RESULTING FROM EITHER PARTY’S INDEMNIFICATION OBLIGATIONS, (D) DAMAGES RESULTING FROM EITHER PARTY’S BREACH OF ARTICLE III (CONFIDENTIAL INFORMATION) (COLLECTIVELY, “EXCLUSIONS”). EXCEPT FOR DAMAGES ARISING FROM OR IN CONNECTION WITH THE EXCLUSIONS, THE AMOUNT OF ANY LOSSES BY A PARTY HEREUNDER SHALL BE LIMITED TO THE AGGREGATE AMOUNT OF THE FEES PAID OR PAYABLE TO SUCH PARTY BY THE OTHER PARTY HEREUNDER (ASSUMING THAT ALL EXTENSION PERIODS ARE EXERCISED).

5.03           Indemnification.

(a)                By Provider. Subject to the limitations set forth in Section 5.02, Provider shall indemnify, defend and hold harmless Recipient from and against, and shall promptly pay or reimburse Recipient for, any and all Losses sustained or incurred by Recipient relating to, arising out of or resulting from (i) the willful misconduct of Provider in connection with the provision of, or failure to provide, any Services to Recipient, or (ii) the Provider’s material breach of this Agreement.

(b)                By Recipient. Recipient shall indemnify, defend, and hold harmless Provider from and against, and shall promptly pay or reimburse Provider for, any and all Losses sustained or incurred by Provider relating to, arising out of or resulting from (i) the willful misconduct of Recipient in connection with this Agreement, or (ii) Recipient’s material breach of this Agreement.

5.04           Specific Performance; Equitable Remedies. The Parties agree that irreparable harm would occur in the event that the provisions of this Agreement were not performed in accordance with the terms of this Agreement, and that money damages or other legal remedies would not be an adequate remedy for any such harm. Accordingly, the Parties acknowledge and hereby covenant and agree that in the event of any breach or threatened breach of the covenants, agreements or obligations set forth in this Agreement, then in addition to any other remedy available at law or in equity, the non-breaching Party will be entitled to seek an injunction or injunctions to prevent or restrain any breaches or threatened breaches of this Agreement, and to specifically enforce the terms and provisions of this Agreement to enforce compliance with the covenants, agreements and obligations under this Agreement. Each Party hereby covenants and agrees not to raise, and irrevocably waives, any objections to the availability of such relief that a remedy at law would be adequate and that a bond or other security will be required.

5.06           Waiver; Remedies Cumulative. The rights and remedies of the Parties set forth herein are cumulative and not alternative. Neither any failure nor any delay by any Party in exercising any right, power or privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable Law, (a) no claim or right arising out of this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless such waiver or renunciation is in writing and signed by such Party, (b) no waiver that may be given by a Party will be applicable except in the specific instance for which it is given, and (c) no notice or demand by one Party will be deemed to be a waiver of any obligation of that Party, or a waiver of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement.

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ARTICLE VI
FORCE MAJEURE

Provider shall not be liable to Recipient for any interruption of the Services or any delays or failure to perform under this Agreement caused by matters or events which are beyond the reasonable control of Provider and which Provider is unable to prevent or mitigate by reasonable precautions, including strikes, lockouts, fires, floods, acts of God, pandemics, extremes of weather, earthquakes, tornadoes, or similar occurrences, riots, insurrections, acts of terrorism or other hostilities, or embargos (each, an “Event of Force Majeure”); provided that Provider shall take commercially reasonable measures to overcome the disruption or delay. If Provider is prevented from performing their obligations under this Agreement because of an Event of Force Majeure, then Provider shall notify Recipient in writing of such Event of Force Majeure, promptly (but in no event more than five (5) Business Days) following the occurrence of such Event of Force Majeure. Any delays, interruptions, or failures to perform the Services caused by such Event of Force Majeure shall not be deemed to be a breach or failure to perform under this Agreement. Provider shall use commercially reasonable efforts to mitigate the damages caused by an Event of Force Majeure and shall use commercially reasonable efforts to minimize or remove the effects of the Event of Force Majeure. No later than thirty (30) Business Days following the occurrence of such Event of Force Majeure, Recipient, in its sole discretion, may terminate any Service affected by such Event of Force Majeure, with such termination to be deemed effective immediately upon notice of termination to Provider.

ARTICLE VII
MISCELLANEOUS

7.01           Notices. All notices and other communications under or by reason of this Agreement will be in writing and will be deemed to have been duly given or made (a) when personally delivered, (b) when delivered by e-mail transmission with receipt confirmed (other than by means of automatically generated reply‎), or (c) upon delivery by overnight courier service, in each case to the addresses and attention parties indicated below (or such other address, e-mail address or attention party as the recipient party has specified by prior notice given to the sending party in accordance with this Section 7.01):

If to Seller, to:

Sprint LLC

c/o T-Mobile USA, Inc.

12920 SE 38th Street

Bellevue, Washington 98006

Attention: General Counsel

E-mail: [***]

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with a copy (which will not constitute notice) to:

Sprint LLC

c/o T-Mobile USA, Inc.

12920 SE 38th Street

Bellevue, Washington 98006

Attention: Senior Vice President, Corporate Strategy &

Development

E-mail: [***]

and

DLA Piper LLP (US)
500 8th Street, NW
Washington, DC 20004
Attention: Nancy Victory and Marc Samuel
E-mail:
[***]

If to Buyer, to:

Cogent Infrastructure, Inc.

2450 N Street, NW

Washington, DC 20037

Attention: John Chang

E-mail: [***]

with a copy (which will not constitute notice) to:

Latham & Watkins LLP

555 Eleventh Street NW, Suite 1000

Washington, DC 20004-1304

Attention: David S. Dantzic and Marc A. Granger

E-mail: [***] 

7.02           Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

(a)                This Agreement and the negotiation, execution, performance or nonperformance, interpretation, termination, construction and all matters based upon, arising out of or related to this Agreement, whether arising in law or in equity (collectively, the “Covered Matters”), and all claims or Actions (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to the Covered Matters shall be governed by, and construed in accordance with, the Laws of the State of New York without giving effect to its principles or rules of conflicts of Laws to the extent such principles or rules are not mandatorily applicable by statute and would require or permit the Laws of another jurisdiction.

(b)                All Actions arising out of or relating to this Agreement shall be heard and determined exclusively in the state court or, to the extent permitted by Law, the United States District Court, in each case, sitting in the State of New York and any appellate court thereof, and each Party hereby irrevocably submits to the exclusive jurisdiction of such courts (and, in the case of appeals, appropriate appellate courts therefrom) in any such Action and irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, Action or proceeding in any such court or that any such suit, Action or proceeding brought in any such court has been brought in an inconvenient forum. The consents to jurisdiction set forth in this Section 7.02 shall not constitute general consents to service of process in the State of New York and shall have no effect for any purpose except as provided in this Section 7.02 and shall not be deemed to confer rights on any third party. The Parties hereto agree that a final judgment in any such Action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.

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(c)                THE PARTIES HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE ACTIONS OF BUYER OR SELLER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF OR THEREOF.

7.03           Amendment and Waiver. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Parties or by any successor to or permitted assign of such Party, or in the case of a waiver, by the Party against whom the waiver is to be effective. No failure or delay by any Party in exercising any right, power, or privilege under this Agreement will operate as a waiver thereof nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. The rights and remedies provided will be cumulative and not exclusive of any rights or remedies provided for in this Agreement by law.

7.04           Third Party Beneficiaries. This Agreement is for the sole benefit of the Parties, their Affiliates and their permitted assigns, and nothing herein expressed or implied will give or be construed to give to any individual or entity, other than the Parties and such permitted assigns, any legal or equitable rights under this Agreement.

7.05           Purchase Agreement and Ancillary Documents. Nothing herein is intended to modify, limit, or otherwise affect the representations, warranties, covenants, agreements, and indemnifications contained in the Purchase Agreement or any of the Ancillary Documents, and such representations, warranties, covenants, agreements and indemnifications shall remain in full force and effect in accordance with their respective terms.

7.06           Severability. Any provision of this Agreement that is determined to be invalid, illegal or unenforceable by any court of competent jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provision of this Agreement invalid, illegal or unenforceable in any other jurisdiction.

7.07           Entire Agreement. This Agreement and the other documents and writings referred to herein or delivered pursuant hereto contain the entire understanding of the Parties with respect to the Services and supersede all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof and thereof. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.

7.08           No Assignment. Either Party may assign its rights, interest or obligations under this Agreement to any of its Affiliates or to a successor-in-interest, whether by operation of law or otherwise, upon any reorganization, merger, acquisition, change of control, or sale of all or substantially all of the assets of a Party, provided that (a) no such assignment shall relieve a Party of its obligations hereunder and (b) the assignment will not result in any incremental Taxes or other costs or expenses for which the other Party would be responsible. Other than the preceding, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any Party without the prior written consent of the Buyer, in the case of any assignment by the Seller, and of the Seller, in the case of any assignment by the Buyer. Nothing in this Section 7.08 shall limited Buyer’s or Seller’s rights to receive Services or perform Services through Affiliates (or of a Provider to cause Services to be performed by Third Party Service Providers).

15

7.09           Access to Books and Records; Cooperation.

(a)                Each of Provider, Recipient and their respective Affiliates shall retain the books, business records, documents, instruments, accounts, correspondence, writings, evidences of title and other papers relating to the Services in their possession or control (collectively, “Records”) in accordance with its data retention policies or for such longer period as may be required by Law or any applicable governmental order, and shall, and shall cause their respective Affiliates to, provide the other Party and its Affiliates and Representatives reasonable access during regular business hours to such Records (including the right to receive hard or electronic copies thereof).

(b)                Following any termination of this Agreement in whole or in part, each Party shall provide reasonable cooperation to the other Party in connection with the cessation of the provision of Services hereunder to minimize disruption to the Business; provided that this Section shall not require Provider to provide Services beyond the termination of such Service or this Agreement or to incur any unreimbursed costs or expenses.

7.10           Service Managers; Escalation Process. Each Party will appoint an individual (a “Service Manager”) who shall (a) have overall, day-to-day responsibility during the Term for managing and coordinating the delivery and receipt of the Services; (b) subject to the supervision of the management of the applicable Party, be authorized to act for and on behalf of such Party with respect to all matters relating to the Services; and (c) be the primary contact with the other Service Manager for matters related to this Agreement. The applicable Provider will additionally appoint an individual for each major Service area in the applicable Exhibit (each, a “Service POC”) that will be primarily responsible for overseeing the delivery of such specific Services and who will report to that Party’s Service Manager. Each Party may, at its discretion, replace its Service Manager or a Service POC with another individual of comparable qualifications and experience. Either Party may invoke the escalation process described in this Section (the “Escalation Process”) under the circumstances contemplated by Section 1.06, Section 1.09, and Section 4.02(b). The invoking Party will first provide written notice (which may be provided in email) of its concerns to the other Party’s Service Manager and will make appropriate personnel available to such Service Manager in a timely manner to provide more information if requested. If following this escalation, the Party to whom the issue has been escalated has not addressed the concern to the submitter’s reasonable satisfaction, the submitter may exercise other applicable rights and remedies under this Agreement.

7.11           Dispute Escalation. If there is a dispute between the Parties relating to the Services or any other aspect of this Agreement, the Service Managers will meet and use good faith efforts to attempt to resolve the dispute prior to filing a legal action. If the Service Managers are unable to resolve the dispute within thirty (30) calendar days after the date of written notice of the dispute from one Party to the other, then the Service Managers will escalate the dispute to the vice president level on each side. If the vice presidents are unable to resolve the dispute within thirty (30) calendar days after the date of escalation, then the Parties will submit the matter to each Party’s responsible senior executive for resolution, and if such executives are not able to resolve the matter within thirty (30) calendar days, either Party may file a legal action in accordance with Section 7.02. Notwithstanding the foregoing, nothing in this Agreement will prevent either Party from, or require either Party to delay, the filing of any claim for injunctive or equitable relief.

7.12           Counterparts and Delivery. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. Any signed counterpart of this Agreement may be delivered by facsimile or other form of electronic transmission (e.g., .pdf), with the same legal force and effect as delivery of an originally signed agreement.

7.13           Order of Precedence. The entire Transition Services Agreement is made up this Agreement, the Exhibits, and any Annexes (including Schedules thereto) to the Exhibits.  To the extent any inconsistencies are found in these documents the order of controlling precedence shall be Annexes, Exhibits, and this Agreement.

[Signature Page Follows]

16

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

SELLER:
Sprint LLC
By: /s/ Peter Osvaldik
Name: Peter Osvaldik
Title: Executive Vice President & Chief Financial Officer

BUYER:
Cogent Infrastructure, Inc.
By: /s/ David Schaeffer
Name: David Schaeffer
Title: President and Chief Executive Officer

Exhibits:

Exhibit A – Services from Seller to Buyer

Exhibit B – Services from Buyer to Seller

EXHIBIT A

[***]

Annex A

[***]

Schedule 1

[***]

Schedule 2

[***]

Schedule 3

[***]

Annex B

[***]

Annex C

[***]

Schedule 1

[***]

Schedule 2

[***]

EXHIBIT “A”

[***]

EXHIBIT “B”

[***]

EXHIBIT “C”

[***]

EXHIBIT “D”

[***]

EXHIBIT “E”

[***]

Schedule 3

[***]

EXHIBIT 1

[***]

EXHIBIT 2

[***]

Schedule 4

[***]

EXHIBIT “A”

[***]

Annex D

[***]

Annex E

[***]

EXHIBIT B

[***]

Annex A

[***]

Annex B

[***]

SCHEDULE 1

[***] 

Exhibit 10.2 

 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item (601)(b)(10). Such excluded information is not material and is the type that the registrant treats as private or confidential.

 

  Network Services
Terms & Conditions
North America

 

1.       Services and Term.

 

1.1. Pursuant to the CSA, Cogent will provide the Services ordered by Customer each month up to the Bandwidth Commit to Customer in exchange for the amounts described in the “Monthly Payments” column in Section 2.3 below (the “Monthly Payments”). This CSA shall be effective from the commencement of the CSA Term (“Effective Date”) at which time Customer shall place the Master Service Order for Services up to the Bandwidth Commit using the Order Form provided by Cogent. Following the Effective Date, Customer may order Services in specific locations under the Master Service Order up to the Bandwidth Commit without incurring any charges beyond the Monthly Payments. Customer’s signature on the Order Form constitutes its acknowledgement and agreement that such Services shall be provided in accordance with this CSA, and Cogent will accept all such Order Forms for Services that are in compliance with the terms herein.

 

1.2. This CSA shall be effective for the CSA Term, subject to Customer’s obligation to make all payments required by Section 2.3. Each Service Order’s Initial Term shall be indicated on the applicable Order Form and any such Initial Term will begin as of the Service Date. Customer will be deemed to have accepted the Service as of the Service Date. At the end of the Initial Term, each Service ordered hereunder will renew for successive Renewal Terms unless and until terminated as provided herein. Notwithstanding any other term to the contrary, this CSA (including any Service Initial Terms and Renewal Terms) shall terminate at the end of the CSA Term; provided that Customer’s obligations to make the Monthly Commitment payments in Section 2.3(a) shall survive such termination (solely to the extent not paid prior to the end of the CSA Term).

 

1.3. Each Service will be provided to the Service Location specified on the Order Form only. Any relocation of a Service shall be an amendment of such Service requiring the consent of both Parties. Customer’s account must be current in order to make changes to Services or order additional Services.

 

2.       Service Charges and Billing.

 

2.1. Invoices for the Monthly Payments (as set forth in the table below) are sent monthly in advance. Customer agrees to pay each Monthly Payment by the last business day of each calendar month without counterclaim, set-off or deduction; provided, the first Monthly Payment shall be due and payable by the last business day of the calendar month of the Effective Date.

 

2.2. COGENT acknowledges that Customer is claiming it is tax exempt and Customer will provide Cogent with a properly executed exemption form.

 

2.3. Payment Commitment and Ceiling.

 

(a) Customer commits to pay Cogent an aggregate Seven Hundred Million ($700,000,000.00) over the CSA Term, in the monthly amounts set forth below (“Monthly Commitments”), subject to such month’s Monthly Payment Ceiling. From time to time, Customer may submit one or more Order Form for the Services under the Master Service Order up to the Bandwidth Commit detailed in the table below and Cogent agrees to provide such Services at any Cogent data center or mutually agreed third party data center. Customer shall provide COGENT with at least thirty (30) days prior written notice of a service order request; provided if COGENT reasonably requires more time due to the volume of any Service Order, the parties will work together in good faith to determine an appropriate longer timeframe. If the aggregate capacity of installed ports at month 13 is projected to exceed the Bandwidth Commit, Customer shall identify to COGENT those installed ports which will be terminated such that Customer will not exceed the Bandwidth Commit at least thirty (30) days prior to the date that the Bandwidth Commit will be exceeded. COGENT will terminate such ports as necessary to bring the aggregate capacity to a level that does not exceed the applicable Bandwidth Commit, so long as COGENT provides Customer with at least thirty (30) days prior advance notice of any such planned termination and permits Customer to select alternative ports for termination (provided such alternative selections are made within ten (10) days of Customer’s receipt of such notice from COGENT). The Monthly Commitments are a take or pay arrangement, and if Customer does not submit sufficient Order Forms to satisfy the Monthly Commitments, Customer will still pay the Monthly Commitment. The Monthly Commitments are as follows:

 

[***]

 

(b) Notwithstanding anything to the contrary in this Agreement, other than indemnity obligations set forth in Section 6 and except with respect to any interest that accrues for late payments pursuant to the last sentence of this Section 2.3(b), (i) in no event will cumulative charges paid or payable by Customer under this CSA and the full extent of Customer’s liability to Cogent, whether known or unknown, whether set forth in this CSA or not, including, without limitation, Monthly Payments, Taxes, Initial Costs, Termination Charges or other charges, fees, expenses, or payments of any kind assessed or assessable under this CSA, exceed [***] per month for each of the first twelve months from the Effective Date and an additional [***] in each of the forty-two (42) months of the remaining CSA Term (each as applicable, a “Monthly Payment Ceiling”) and (ii) for the avoidance of doubt, subject to the terms and conditions of this CSA, Customer is required to pay only the amounts described in the “Monthly Payments” column above (and not the amounts described in the “Monthly Implied Average Value” column above, which is included for reference purposes only). Notwithstanding the Payment Ceiling, Customer acknowledges and agrees that a late payment charge shall be added to Customer’s past due balance of the lesser of six percent (6%) per annum or the maximum legal rate.

 

3.       Service Use and Interruption.

 

3.1. Customer’s use of COGENT’s Services or Network may only be for lawful purposes and must comply with COGENT’s AUP to the extent such AUP does not limit Customer’s ability to use the Services or Network for Customer’s normal business practices. Transmission of any material in violation of any law, regulation or the AUP is strictly prohibited. Access to other networks connected to COGENT’s Network must comply with such other networks’ rules. Customer may not resell their Service, in whole or in part; provided that the use of the Services by Customer to provide services to its non-wireline customers (in their capacity as such) shall not be considered resale of the Services.

 

3.2 COGENT’s obligations and Customer’s exclusive remedies for a delayed or failed installation of a Service or the impairment, diminished performance, unavailability or other failure of COGENT’s Network or any Service are stated in the COGENT SLA; provided, however the Parties agree that for the Services ordered hereunder, Service Credits shall be capped at $100,000.00 per annum but may only be used by Customer in subsequent periods beyond the CSA Term, to the extent Customer and COGENT execute another CSA for Services.

 

4.       Termination, Restriction or Suspension.

 

4.1. COGENT may terminate the CSA at any time if Customer is in material breach of the CSA (including but not limited to the AUP) and, COGENT has provided Customer with written notice detailing the breach and Customer has failed to cure the breach within thirty (30) days of receipt of written notice.

 

4.2. Either Party may terminate the CSA if the other Party is in a Material Breach and fails to cure such Material Breach within thirty (30) days after receipt of written notice of the same. All termination notices by Customer must be sent separately for each Service (including terminating one Service location after a Service is switched to a new Service location) and must be sent to terms@cogentco.com.

 

4.3. If the CSA is terminated for any reason other than by Customer pursuant to Section 4.2 above, Customer’s obligations to pay the Monthly Payments shall survive any such termination on the same monthly schedule detailed in Section 2.3(a). If a Service is terminated prior to the Service Date, Customer shall not be entitled to order the portion of the Bandwidth Commit that such terminated Service represented in the month such Service was ordered.

 

4.4. If Customer defaults in any of its payment obligations under the CSA, Customer agrees to pay COGENT’s reasonable expenses, including but not limited to legal and collection agency fees, incurred by COGENT in enforcing its rights.

Page 1 of 4

Cogent Communications, Inc. 2450 N St., NW, Washington, D.C., 20037 202.295.4200 www.cogentco.com

Customer:

_______

 

 

 

5.       Disclaimer of Warranty and Limitation of Liability.

 

5.1. the services are provided “as is,” and neither cogent nor any of its providers, licensors, officers, employees, or agents makes any warranty, condition or guarantee with respect to the services or as to the results to be obtained from the use of the services, under this csa or otherwise. the services are purchased with knowledge of this warranty limitation. cogent expressly disclaims all other warranties, conditions or guarantees of any kind, either express or implied, including, but not limited to any warranties or conditions of merchantability, non-infringement, satisfactory quality, and/or fitness for a particular purpose. cogent does not monitor, and disclaims all liability and responsibility for, the content of any communication transmitted by customer or others, and disclaims all liability and responsibility for unauthorized use or misuse of the services.

 

5.2. without prejudice to or limiting of cogent’s right to receive payment for each of the monthly payments, each Party’s entire liability for all claims of whatever nature (including claims based on negligence) arising out of this agreement, and the provision by cogent of facilities, transmission, data, services or equipment including, but not limited to, damage to real/personal property, shall not exceed one hundred thousand dollars ($100,000.00) in total; provided, however, that the foregoing limitations shall not apply for (i) the monthly payments due by customer to cogent for the services, which are subject to the aggregate monthly payment ceiling; (ii) death or personal injury caused by cogent, or (iii) for any other liability which may not be excluded or limited under applicable law; and provided, further; that the parties acknowledge and agree that any such liabilities of cogent shall be satisfied by the issuance to the customer of service credits as described in section 3.2 above after payment of the monthly payments.

 

5.3. customer recognizes that the internet consists of multiple participating networks that are separately owned and not subject to cogent’s control. customer agrees that cogent shall not be liable for damages incurred or sums paid when the services are temporarily or permanently unavailable due to malfunction of, or cessation of, internet services by network(s) or internet service providers not subject to cogent’s control, or for transmission errors in, corruption of, or the security of customer information carried on such networks or internet service providers. cogent shall have no liability hereunder for damages incurred or sums paid due to any fault of customer or any third party, or by any harmful components (such as computer viruses, worms, computer sabotage, and ‘denial of service’ attacks). cogent is not liable for any breach of security on the customer’s network, regardless of whether any remedy provided in this csa fails of its essential purpose. without limiting the foregoing, customer agrees that it will not hold cogent responsible for (a) third party claims against customer for damages, (b) loss of or damage to customer’s records or data or those of any third party, or (c) loss or damage to customer associated with the inoperability of customer’s equipment or applications with any component of the services or the cogent network. customer agrees to make all claims related to the services directly against cogent, and waives any right to recover damages (directly or by indemnity) related to the services by claiming against or through a third party to this csa.

 

5.4. neither party nor anyone else involved in creating, producing, delivering (including suspending or discontinuing services) or supporting the services shall be liable to customer, any representative, or any third party for any indirect, incidental, special, punitive or consequential damages arising out of the services or inability to use the services, including, without limitation, lost revenue, lost profits, loss of technology, rights or services, even if advised of the possibility of such damages, whether under theory of contract or tort (including negligence, strict liability or otherwise).

 

5.5. no action or proceeding may be commenced by either Party more than one (1) year after the last day of the csa term, and the Parties acknowledge that this limitation constitutes an express waiver of any rights under any applicable statute of limitations which would otherwise afford additional time for such a claim.

 

6.       Indemnity.

 

6.1. Both Parties will indemnify, defend and hold harmless the other Party and its directors, officers, employees, affiliates, and its agents and subcontractors from and against any claims, suits, actions, and proceedings from any and all third parties, and for payment of any Losses, to the extent such Losses arise from injuries or damage to persons or real or tangible personal property to the extent the same are caused by the negligent acts or omissions of a Party in the performance of its obligations under this CSA.

 

7.       Additional Provisions.

 

7.1. Except as to payment obligations of Customer, neither Party shall have any claim or right against the other Party for any failure of performance due to Force Majeure.

 

7.2. Neither Party is the agent or legal representative of the other Party, and this CSA does not create a partnership, joint venture or fiduciary relationship between COGENT and Customer. Neither Party shall have any authority to agree for or bind the other Party in any manner whatsoever. This CSA confers no rights, remedies, or claims of any kind upon any third party, including, without limitation, Customer’s subscribers or end-users.

 

7.3. This CSA for Service is made pursuant to and shall be construed and enforced in accordance with the laws of the State of Delaware without regard to its choice of law principles. Any action arising out of or related to this CSA shall be brought in the District or Federal courts located in Delaware, and Customer consents to the jurisdiction and venue of such courts.

 

7.4. Notices, if required, must be sent in writing by e-mail, courier or first class mail (postage prepaid) to the appropriate contact point listed on the Order Form, and are considered made when received at that address; provided, that termination notices to COGENT must be sent in accordance with Section 4.2 above. In the event of an emergency, COGENT may only be able to provide verbal notice first; such verbal notice will be followed by written notice. Customer is responsible for accuracy of its information on the Order Form, including points of contact.

 

7.5. Neither this CSA nor any of the rights, interests or obligations hereunder shall be assigned without the prior written consent of COGENT, in the case of assignment by the Customer, and of the Customer, in the case of any assignment by COGENT.

 

7.6. Without limiting any other obligation which expressly survives the expiration or prior termination of the term of the CSA, the expiration or prior termination of the term of the CSA shall relieve both Parties of any further obligations hereunder, except with respect to the Sections 2, 3, 4.3, 4.4 and 5 through 7, which shall survive any expiration or termination of these Terms.

 

7.7. If (but only if) required by COGENT’s or Customer’s agreement with Customer’s Landlord: (a) any cessation or interruption in COGENT’s Service does not constitute a default or constructive eviction by Customer’s Landlord, and (b) Customer agrees to waive and release Landlord and its related parties from any liability in connection with any damages whatsoever incurred by Customer, including lost revenues, which arise, or are alleged to arise, out of any interruption of or defect in the COGENT Service, regardless of whether such interruption or defect is caused by the ordinary negligence (but not the gross negligence or willful misconduct) of a released party.

 

7.8.    The COGENT Network is owned by COGENT, or its licensors, and is protected by copyright and other intellectual property laws. Customer agrees that title to and ownership of the Services, in any form, shall at all times and in any event be held exclusively by COGENT. Customer shall be entitled to only such rights with respect to the Services as are specifically granted herein. 

Page 2 of 4

Cogent Communications, Inc. 2450 N St., NW, Washington, D.C., 20037 202.295.4200 www.cogentco.com

Customer:

_______

 

 

 

7.9.    This CSA, the MIPA and such other written agreements, documents and instruments as may be executed in connection with the CSA and the MIPA are the final, entire and complete agreement between Customer and COGENT and supersede all prior and contemporaneous negotiations and oral representations and agreements, all of which are merged and integrated into this CSA. No purchase order or similar document provided by Customer to COGENT shall be of any force and effect. Any and all amendments shall be in writing and signed by both Parties.

 

7.10.  This CSA and any Addendum thereto may be executed in one or more counterparts all of which taken together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the Effective Date.

 

  T-Mobile USA, Inc.
   
  By: /s/ Peter Osvaldik
     
  Name: Peter Osvaldik
     
  Title: Executive Vice President & Chief Financial Officer
   
  Cogent Communications, Inc.
   
  By: /s/ David Schaeffer
     
  Name: David Schaeffer
     
  Title: President and Chief Executive Officer

Page 3 of 4

Cogent Communications, Inc. 2450 N St., NW, Washington, D.C., 20037 202.295.4200 www.cogentco.com

Customer:

_______

 

 

 

Definitions

 

AUP COGENT’s Acceptable Use Policy as posted by COGENT at www.cogentco.com. COGENT reserves the right to amend its AUP at any time, effective upon posting on the COGENT website; provided such rights do not unreasonably modify any Customer’s reasonable business practices.
COGENT Cogent Communications, Inc.
COGENT Network The telecommunications network and network components owned, operated or controlled by COGENT, including COGENT’s fiber backbone, metropolitan fiber networks, any equipment connected to such fiber, and the software, data and know-how used by COGENT to provide the Services.  Where COGENT services a building through its own facilities, the COGENT Network includes those facilities.  The COGENT Network does not include customer premises equipment, customer-ordered telephony circuits, and any networks or network equipment not operated and controlled by COGENT.
Customer Customer identified in the attached Order Form.
CSA The entire Customer Subscriber Agreement between COGENT and Customer for provision of the Service, consisting of, in order of priority, any Order Form(s), any addendum between the Parties, the Terms and any schedule thereto, and the applicable product rider.
CSA Term The term of this CSA begins as of the Closing, as such term is defined in the MIPA, and ends on the last day of the fifty-fourth month thereafter.
Equipment Customer’s equipment, if any.
Force Majeure Causes beyond a Party’s control, including but not limited to:  acts of God; fire; explosion; vandalism; cable cut; storm; flood or other similar occurrences; any law, order, regulation, direction, action or request of any government, including federal, state, provincial, municipal and local governments claiming jurisdiction over a Party or the Service, or of any department, agency, commission, bureau, corporation, or other instrumentality of any such government, or of any civil or military authority; national emergencies; unavailability of materials or rights-of-way; insurrections; riots, terrorist acts or wars (declared/undeclared); or strikes, lock-outs, work stoppages, or other labor difficulties, supplier failures, shortages, breaches or delays.
Initial Costs Greater of (a) installation fees (if not paid); or (b) all third-party costs and charges incurred by or charged to COGENT on behalf of Customer for the Service, including but not limited to local loop fees, cross-connect charges, and wiring fees.
Initial Term Initial length of term for any Services ordered pursuant to this CSA, as indicated on the Order Form.
Landlord Customer’s landlord, building owner or property/telecom manager.
Losses Costs, fees, liabilities, losses, damages or penalties, including reasonable legal fees.
Material Breach In the case of (a) Customer, (i) the failure to make any undisputed payment under the terms of the CSA within five (5) days from date of receipt of notice of non-payment;  or (ii) a breach of any material provision;  and (b) in the case of Cogent, a breach of any material provision this CSA which (x) results in greater than 20% of the COGENT Network being unavailable for thirty (30) consecutive days and (y) is a result of gross negligence or willful misconduct by Cogent
Master Service Order The initial order form for Services executed by Customer and COGENT on the Effective Date for the aggregate Bandwidth Commit and Monthly Payments.
MIPA That certain Membership Interest Purchase Agreement by and among Sprint LLC, Sprint Communications, LLC and Cogent Infrastructure, Inc. dated September 6, 2022.
Party or Parties COGENT and/or Customer.
Renewal Term A Monthly length of term for any Services ordered pursuant to this CSA, after completion of the Initial Term.
Service(s) Bandwidth services provided by COGENT under the Customer Subscriber Agreement.
Service Date The date Cogent makes Services provided pursuant to an Order Form submitted to Cogent pursuant to this CSA available.
SLA The Service Level Agreement, as attached hereto as Exhibit A.
Space Rented rack space from COGENT, if any.
Tax or Taxes All taxes arising in any jurisdiction, including without limitation all:  sales, use, excise, value added, consumption, or other transaction taxes, fees, duties, charges or surcharges (however designated) which are imposed on or based on the provision, sale or use of the Service(s) and where the incidence of the tax is on the Customer.  Taxes do not include COGENT’s income, franchise, gross receipts or property taxes.
Termination Charge Single payment equal to the total remaining dollar value of the Master Service Order through the Initial Term.
Terms Terms and conditions that apply to the Services COGENT provides to Customer.

Page 4 of 4

Cogent Communications, Inc. 2450 N St., NW, Washington, D.C., 20037 202.295.4200 www.cogentco.com

Customer:

_______

 

 

Exhibit 10.3 

 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item (601)(b)(10). Such excluded information is not material and is the type that the registrant treats as private or confidential.

 

    Customer Subscriber Agreement
(Network Services
Terms & Conditions)

Global

 

This Customer Subscriber Agreement (“CSA”), together with any general terms and conditions, annexes, and exhibits attached hereto (collectively and with any annexes or riders subsequently entered into by the Parties, the “Agreement’) is made and entered into as of May 1, 2023 (“Effective Date”) by and between Cogent Infrastructure, Inc. having its head office or registered business address located at 2450 N St. N.W. Washington, D.C. 20037 (together with its affiliates, “Cogent”), and T-Mobile USA, Inc., a Delaware limited liability company, and its affiliates, having a principal place of business at 3625 132nd SE Street, Bellevue, WA 98006 (“Customer”).

 

NOW THEREFORE, in consideration of the mutual exchange of promises and covenants contained herein and for other good and valuable considerations, the Parties agree as follows:

 

1.       Services and Term.

 

1.1. Pursuant to the CSA, Cogent or its affiliates will provide the specific Services set forth in each Rider attached hereto to Customer for the Service charges set forth therein. If new Services (unrelated to the Services provided in the six months prior to Signing (as defined in that Transition Services Agreement dated as of the date hereof by and between Cogent and Customer) are requested by Customer following the Effective Date, then Customer’s signature on the Order Form constitutes its acknowledgment and agreement to be bound by the CSA. Capitalized terms are defined at the end of these Terms. The Services to be provided under this CSA will be set forth on one or more Riders attached hereto, and Services provided as of the Effective Date will not require an Order Form. Future Services ordered will be memorialized in a mutually agreed-upon Order Forms.

 

a)Cogent will, notwithstanding anything to the contrary in this Agreement, provide the Services specified on the Rider in a manner consistent in all material respects with the manner in which such Services were provided to Customer by Cogent’s affiliate, Sprint Communications Company LP, in the six-month period immediately prior to the Signing and any additional terms specified in a Rider. The quantity and timing of delivery of each Service shall be that which Customer reasonably requires in connection with such Service for the operation of its wireless business, consistent in all material respects with what was provided to the wireless business, in the six-month period prior to Signing. Cogent will perform the Services exercising the same degree of care, quality, skill and service level as it exercises in performing the same or similar Services for its other customers, as applicable.

 

b)In the event that Customer identifies any service not included in a Rider that (i) had been provided by or to the wireline business in respect of the wireless business in the six (6) month period prior to Signing of the Transition Services Agreement, and (ii) is reasonably necessary for the operation of the wireless business as applicable (each, an “Omitted Service”), Customer shall provide notice to Cogent, and Cogent shall be required to provide such Omitted Service to Customer in accordance with the cost structure as set forth in Section 2. The Parties shall amend a Rider to include a description of the Omitted Service, the term for which such Service will be provided, and any other relevant terms and execute an Order Form for such Service. Such Omitted Service will thereafter be deemed to be a “Service” under this Agreement.

 

c)Services Baseline. The Parties acknowledge and agree that each Party has exercised due diligence in the preparation and review of the Riders attached hereto, and that the Services as set forth in the Riders hereto represent the most comprehensive description of the Services to be provided by Cogent to Customer to the best of the Parties’ knowledge as of the Effective Date.  The Parties will each conduct a baselining assessment within the first six months of this CSA in order to determine if the Services set forth in the Riders need to be modified or updated (“Baselining Period”). During the Baselining Period, the Parties will meet to discuss any required revisions to the scope of the Services, and will work in good faith to amend the Services set forth herein to reflect such revisions.

 

1.2. Each Service’s Initial Term is indicated on the applicable Rider and the Initial Term will begin as of the Service Date. Unless otherwise set forth in a Rider, Customer will be deemed to have accepted the Service as of the Service Date. At the end of the Initial Term, unless otherwise specified in a Rider for such Services, each Service ordered hereunder will renew on a month-to month basis. For any of the Services set forth in a Rider as of the Effective Date, for the first three years following the Effective Date, Customer may terminate such Service upon 30 days’ prior written notice. At the end of the three year period following the Effective Date, either Party may terminate such Service upon 30 days’ prior written notice or the Parties may mutually agree to renew such Service for an agreed-upon Renewal Term.

 

1.3. Additional Services. Each Service will be provided to the Service Location specified on the Order Form only. Any relocation of a Service shall be an amendment of such Service requiring the consent of both Parties. Customer may order additional Services or locations in North America through additional Order Forms, which will be governed by this CSA. Customer’s account must be current in order to make changes to Services or order additional Services.

 

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2.       Service Charges and Billing.

 

2.1. Except as otherwise set forth in a Rider, as consideration for the Services actually received by Customer, Customer shall pay Cogent (i) all documented third party costs related to the provision of the Services (without markup, margin or premium of any kind) actually incurred and (ii) the agreed-upon fees for each of the Services as set forth on a Rider consistent with the historic practice of and allocations of resources to support the wireless business during the two (2) months prior to the Effective Date. Except as otherwise set forth in a Rider, the agreed-upon fees for each of the Services, as calculated under the foregoing clause (ii), will be subject to a twenty percent (20%) increase with respect to Services provided after the two year period following the Effective Date. Except for services that involve a third-party loop provider, Customer may substitute or relocate a service that has been ordered and activated without paying any early termination fee, provided Customer buys another service with the same MRC or has the same term as the original service. If a prior Service location remains installed after a new Service location is installed, Customer will be responsible for Service charges for both Service locations until terminated as provided for each Service.

 

2.2. Invoices are sent monthly in advance. Cogent agrees to afford Customer, upon reasonable notice, access to such information, records and documentation of Cogent as Customer may reasonably request in order to verify any invoices and charges for Services hereunder.

 

2.3. Customer must notify Cogent of any disputed invoice amounts within thirty (30) calendar days following receipt of the invoice, and the Parties will work in good faith to expeditiously resolve any dispute. Regardless of any notations that may accompany any payment, neither Cogent’s acceptance of any payment nor Customer’s payment of any amounts will be deemed a waiver of any disputed amounts or invoices. In the event of a dispute over an invoice, Customer will nevertheless promptly remit to the Cogent all undisputed amounts set forth in such Invoice and, if the disputed amount exceeds One Million Dollars ($1,000,000), pay the disputed amount into an escrow account mutually acceptable to the Parties. If the disputed amount (taking into account all amounts currently in dispute) is less than One Million Dollars ($1,000,000), Customer has no obligation to pay any portion of the disputed amount until the dispute has been resolved in accordance with this Agreement. Any disputed invoice will be resolved pursuant to the dispute escalation provisions of Section 7.15 and the Parties shall promptly cause the escrow agent to pay the escrowed amount to the prevailing Party. Withholding or paying into escrow any amount that is not disputed in good faith and in accordance with this Section shall be deemed to be a failure to pay.

 

2.4. Payment Due Date. Customer shall pay Cogent’s undisputed invoices with respect to the Services within thirty (30) calendar days after Customer’s receipt of each Invoice (the “Due Date”). All amounts payable by Customer hereunder shall be remitted to Cogent in United States Dollars. If Customer fails to pay undisputed fees due, Cogent shall provide notice to Customer and Customer shall have 10 days to pay the amounts due (“Payment Cure Period”). Following the Payment Cure Period, late payments of undisputed fees shall bear interest at, the lesser of (i) 1% per month or (ii) the highest rate allowable by applicable law, following the applicable due date for such payment.

 

2.5 Payment Default. If the payment in full of any invoice is not received by Cogent from Customer by the Due Date (except for any amount in good faith disputed, until such time as such dispute is settled in accordance with this CSA), and the amount to be received by the Due Date is in excess of One Million Dollars ($1,000,000), individually or in the aggregate for all amounts not paid and due as of such Due Date, then Cogent shall have the right to suspend the Services until such time as the Customer has paid in full all amounts then due, including any accrued interest. Immediately after such payment in full is received by Cogent, the provision of Services will resume.

 

2.6 Taxes. The fees do not include sales, use, privilege, excise, goods and services and other similar taxes (the “Transaction Level Taxes”) applicable to the provision of the Services. Cogent shall invoice Customer for any and all Transaction Level Taxes imposed or assessed as a result of the provision of Services to Recipient; provided, however, that Provider shall be responsible for net income, net worth/capital stock and property taxes imposed on Provider. To claim a tax exemption, Customer must provide Cogent with valid evidence and documentation of the tax exemption as required by applicable federal, state, or local authority, and such tax exemption will be applied prospectively. Customer and Cogent will cooperate to identify the information necessary to determine the Transaction Level Taxes, including a description of the Services, and, as applicable, the location(s) of delivery, receipt, use, or access. Cogent will appropriately and sufficiently describe and separately state on the invoice each taxable and nontaxable component of the Services along with the Transaction Level Taxes. Cogent and Customer will reasonably cooperate to minimize any taxes, duties or tariffs owed in connection with the Services.

 

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3.       Service Use and Interruption.

 

3.1. Customer’s use of Cogent’s Services or Network may only be for lawful purposes and must comply with Cogent’s AUP. Transmission of any material in violation of any law, regulation or the AUP is strictly prohibited. Access to other networks connected to Cogent’s Network must comply with such other networks’ rules. Customers whose service location (as set forth on the Order Form) is a Cogent-owned or carrier neutral data center may resell Cogent’s Service ordered in that location.  Corporate Customers located in any other service location may not resell their Service, in whole or in part.

 

4.       Termination, Restriction or Suspension.

 

4.1. Cogent also may restrict or suspend the CSA, Customer’s use of or access to any Service, or both, at any time if Customer is in material breach of the CSA (including but not limited to the AUP) and, in Cogent’s reasonable judgment, an immediate restriction or suspension is necessary to protect the Cogent Network or Cogent’s ability to provide services to other customers, provided Cogent will promptly provide Customer with written notice of such suspension, with reasonable specificity for Customer to remedy the violation, Cogent will limit the suspension in time and scope as reasonably possible under the circumstances, and reinstate the access to the suspended Service immediately following resolution.

 

4.2. Except as set forth in a Rider, Customer may terminate any Service ordered hereunder upon thirty (30) days prior written notice. Only after the initial three years has elapsed with respect to such Service, Cogent may terminate any Service ordered hereunder upon thirty (30) days prior written notice to Customer. Either Party may terminate this CSA, except as otherwise stated herein, during an Initial Term or Renewal Term if the other Party breaches any material term or condition of this CSA and fails to cure such breach within thirty (30) days after receipt of written notice of the same. All termination notices by either Party must be sent separately for each Service (including terminating one Service location after a Service is switched to a new Service location) and must be sent in writing to the other Party to:

Cogent at [***]; or T-Mobile at [***]. As applicable, the Parties will work together in good faith to reasonably agree upon and implement processes necessary to carry out specific Service terminations based on termination notices.

 

4.3. Upon termination of any Service for any reason, Customer shall pay Cogent for the Service up through the date of termination. Any reconnections of the Service shall result in additional reconnection charges to Customer at Cogent’s then-prevailing rates.

  

5.       Disclaimer of Warranty and Limitation of Liability.

 

5.1. except as otherwise expressly set forth herein, the services are provided “as is,” and neither Cogent nor any of its providers, licensors, officers, employees, or agents makes any warranty, condition or guarantee with respect to the services or as to the results to be obtained from the use of the services, under this csa or otherwise. the services are purchased with knowledge of this warranty limitation. Cogent expressly disclaims all other warranties, conditions or guarantees of any kind, either express or implied, including, but not limited to any warranties or conditions of merchantability, non-infringement, satisfactory quality, and/or fitness for a particular purpose. Cogent does not monitor the content of any communication transmitted by customer or OTHERS, AND disclaims all liability and responsibility for CUSTOMER’s unauthorized use or misuse of the services.

 

5.2.  Damage Limitations. IN NO EVENT SHALL ANY PARTY HAVE ANY LIABILITY UNDER ANY PROVISION OF THIS AGREEMENT FOR ANY PUNITIVE, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES, INCLUDING LOSS OF FUTURE REVENUE OR INCOME, LOSS OF BUSINESS REPUTATION OR OPPORTUNITY RELATING TO THE BREACH OR ALLEGED BREACH OF THIS AGREEMENT, OR DIMINUTION OF VALUE OR ANY DAMAGES BASED ON ANY TYPE OF MULTIPLE, WHETHER BASED ON STATUTE, CONTRACT, TORT OR OTHERWISE, AND WHETHER OR NOT ARISING FROM THE OTHER PARTIES’ SOLE, JOINT, OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, CRIMINAL LIABILITY OR OTHER FAULT, EXCEPT (A) DAMAGES WHICH CANNOT BE EXCLUDED UNDER APPLICABLE LAW, (B) IN EACH CASE, WHERE SUCH DAMAGES WERE CAUSED BY OR RESULTED FROM, IN THE CASE OF DAMAGES INCURRED BY CUSTOMER, COGENT’S KNOWING AND INTENTIONAL BREACH OF THIS AGREEMENT, OR IN THE CASE OF DAMAGES INCURRED BY COGENT, CUSTOMER’S KNOWING AND INTENTIONAL BREACH OF THIS AGREEMENT, (C) DAMAGES RESULTING FROM EITHER PARTY’S INDEMNIFICATION OBLIGATIONS, (D) DAMAGES RESULTING FROM EITHER PARTY’S BREACH OF SECTION 7.12 (CONFIDENTIALITY) (COLLECTIVELY, “EXCLUSIONS”). EXCEPT FOR DAMAGES ARISING FROM OR IN CONNECTION WITH THE EXCLUSIONS, THE AMOUNT OF ANY LOSSES BY A PARTY HEREUNDER SHALL BE LIMITED TO THE AGGREGATE AMOUNT OF THE FEES PAID OR PAYABLE TO SUCH PARTY BY THE OTHER PARTY HEREUNDER (ASSUMING THAT ALL EXTENSION PERIODS ARE EXERCISED.

 

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5.3 Cogent may not be not liable (i) for unauthorized third party access to, or alteration, theft or destruction of, Customer’s data, programs or other information through accident, wrongful means or any other cause while such information is stored on or transmitted across Cogent network transmission facilities or CPE, except to the extent caused by Cogent’s gross negligence, intentionally wrongful acts or omissions, or breach of Section 7.12 (the foregoing exceptions shall not be interpreted as an Cogent’s admission of liability for these items); (ii) for the content of any information transmitted, accessed or received by Customer through Cogent’s provision of the Products and Services.

 

6.Indemnity.

 

6.1. Mutual Indemnification. Each Party will indemnify and defend the other Party, its directors, officers, employees, agents and their successors against all third party claims for damages, losses, liabilities or expenses, including reasonable attorneys’ fees (collectively, “Losses”), brought against the indemnified Party, relating to, arising out of, or resulting from (A) either Party’s willful misconduct in connection with the performance of its obligations under this Agreement, (B) either Party’s material breach of this Agreement, or (C) personal injury, death, or damage to tangible personal property to the extent such Claims are alleged to have resulted from the gross negligence or willful misconduct of the indemnifying Party or its subcontractors, directors, officers, employees or authorized agents.

 

6.2. Rights of Indemnified Party. A Party seeking indemnification under this Agreement must: (A) give the indemnifying Party timely written notice of the claim, (B) give the indemnifying Party full and complete information, assistance and authority for the claim’s defense and settlement, and (C) not, by any act, admission or acknowledgement, materially prejudice the indemnifying Party’s ability to satisfactorily defend or settle the claim. The indemnified Party may participate in the settlement or defense of the claim, with its own counsel and at its own expense; provided that the indemnifying Party will retain the right to settle or defend the claim, in its sole discretion, at its own expense and with its own counsel. Notwithstanding the foregoing, the indemnifying Party will not make, without the prior approval of the indemnified Party, which approval will not be unreasonably withheld, any admission of facts on behalf of the indemnified Party that exposes the indemnified Party to the imposition of punitive damages or exposure to other claims that are not covered by this indemnification.

 

7.       Additional Provisions.

 

7.1. Cogent shall not be liable to Customer for any interruption of the Services or any delays or failure to perform under this CSA caused by matters or events which are beyond the reasonable control of Cogent and which Cogent is unable to prevent or mitigate by reasonable precautions, including strikes, lockouts, fires, floods, acts of God, pandemics, extremes of weather, earthquakes, tornadoes, or similar occurrences, riots, insurrections, acts of terrorism or other hostilities, or embargos (each, an “Event of Force Majeure”); provided, Cogent shall take commercially reasonable measures to overcome the disruption or delay. If Cogent is prevented from performing their obligations under this CSA because of an Event of Force Majeure, then Cogent shall notify Customer in writing of such Event of Force Majeure, promptly (but in no event more than five (5) Business Days) following the occurrence of such Event of Force Majeure. Any delays, interruptions, or failures to perform the Services caused by such Event of Force Majeure shall not be deemed to be a breach or failure to perform under this CSA. Cogent shall use commercially reasonable efforts to mitigate the damages caused by an Event of Force Majeure and shall use commercially reasonable efforts to minimize or remove the effects of the Event of Force Majeure. No later than thirty (30) business days following the occurrence of such Event of Force Majeure, Customer, in its sole discretion, may terminate any Service affected by such Event of Force Majeure, with such termination to be deemed effective immediately upon notice of termination to Cogent.

 

7.2. Neither Party is the agent or legal representative of the other Party, and this CSA does not create a partnership, joint venture or fiduciary relationship between Cogent and Customer. Neither Party shall have any authority to agree for or bind the other Party in any manner whatsoever. This CSA confers no rights, remedies, or claims of any kind upon any third party, including, without limitation, Customer’s subscribers or end-users, except for T-Mobile agency relationship with customer in placing orders with Cogent, as set out in 7.13 below.

 

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7.3. This CSA for Service is made pursuant to and shall be construed and enforced in accordance with the laws of the State of New York without regard to its choice of law principles. Any action arising out of or related to this CSA shall be brought in the District or Federal courts located in the State of New York, and Customer consents to the jurisdiction and venue of such courts.

 

7.4. All notices and other communications under or by reason of this CSA will be in writing and will be deemed to have been duly given or made (a) when personally delivered, (b) when delivered by e-mail transmission with receipt confirmed (other than by means of automatically generated reply‎), or (c) upon delivery by overnight courier service, in each case to the addresses and attention to the parties indicated below (or such other address, e-mail address or attention party as the recipient Party has specified by prior notice given to the sending Party in accordance with this Section):

 

If to COGENT, to:

Cogent Communications, Inc.

Attention:  Legal Department

   
 

Cogent Communications, Inc.

2450 N St., NW, 4th Floor

Washington DC 20037

E-mail: [***]

 

If to Customer, to:

T-Mobile USA, Inc.

12920 SE 38th Street

Bellevue, Washington 98006

Attention:  General Counsel

E-mail: [***]

   
with a copy (which will not constitute notice) to:

T-Mobile USA, Inc.

12920 SE 38th Street

Bellevue, Washington 98006

Attention:  Senior Vice President, Corporate Strategy &

Development

E-mail: [***]

 

7.5. Neither Party may assign this CSA without the other Party’s prior written consent, which consent shall not unreasonably be withheld, except that either Party may assign this Agreement, after notice, to an affiliate or entity that has purchased all or substantially all of the Party’s assets.

 

7.6. Without limiting any other obligation which expressly survives the expiration or prior termination of the term of the CSA, the expiration or prior termination of the term of the CSA shall relieve both Parties of any further obligations hereunder, except with respect to the Sections 2, 3, 4.3, 4.4 and 5 through 7, which shall survive any expiration or termination of these Terms.

 

7.7. Intentionally Omitted

 

7.8 The Cogent Network is owned by Cogent, or its licensors, and is protected by copyright and other intellectual property laws. Customer agrees that title to and ownership of the Services, in any form, shall at all times and in any event be held exclusively by Cogent. Customer shall be entitled to only such rights with respect to the Services as are specifically granted herein.

 

7.9 This CSA and such other written agreements, documents and instruments as may be executed in connection herewith are the final, entire and complete agreement between Customer and Cogent and supersede all prior and contemporaneous negotiations and oral representations and agreements, all of which are merged and integrated into this CSA. No purchase order or similar document provided by Customer to Cogent shall be of any force and effect. Amendments to the CSA or any Service shall be in writing and signed by both Parties. This CSA and any Addendum thereto may be executed in one or more counterparts all of which taken together shall constitute one and the same instrument.

 

7.10.  Compliance with Law. Each Party agrees that it will comply with all applicable laws in performance of its obligations under this Agreement.

 

7.11.  Intentionally Omitted

 

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7.12.  Confidentiality and Data Protection Requirements. Neither Party will disclose the other Party’s Confidential Information to any third party, except as expressly permitted in this Agreement. This obligation will continue until two years after this Agreement terminates or expires. The receiving Party (the “Recipient”) may disclose Confidential Information to its affiliates, agents and consultants with a need to know, and are subject to a confidentiality agreement at least as protective of the disclosing Party (the “Discloser”’s) rights as this provision. The Parties will use Confidential Information only for the purpose of performing under this Agreement or for the provision of services. The foregoing restrictions on use and disclosure of Confidential Information do not apply to information that: (A) is in the possession of the Recipient at the time of its disclosure and is not otherwise subject to obligations of confidentiality; (B) is or becomes publicly known, through no wrongful act or omission of the Recipient; (C) is received without restriction from a third party free to disclose it without obligation to the Discloser; (D) is developed independently by the Recipient without reference to the Confidential Information; (E) is required to be disclosed by law, regulation, or court or governmental order, provided, however, that the Recipient shall not make any such disclosure without first notifying the Disclosing Party and allowing the Disclosing Party a reasonable opportunity to seek injunctive relief from (or a protective order with respect to) the obligation to make such disclosure; or (F) is disclosed with the prior written consent of the Discloser. In addition to the foregoing, Cogent will comply with Exhibit A, Data Protection Requirements, attached hereto, in its handling of T-Mobile Network Information.

 

7.13 Injunction. The Parties acknowledge that the Recipient’s unauthorized disclosure or use of Confidential Information may result in irreparable harm. If there is a breach or threatened breach of this Agreement, the Discloser may seek a temporary restraining order and injunction in any court of competent jurisdiction to protect its Confidential Information. This provision does not limit any other remedies available to either Party. The Party who has breached or threatened to breach its nondisclosure obligations under this Agreement will not raise the defense of an adequate remedy at law.

 

7.14 Agency Relationship. In certain countries, Supplier acknowledges and accepts that T-Mobile may not be an authorized provider of Service and T-Mobile will act as an agent of T-Mobile’s End User, who is the customer of record. This agency relationship will flow through as necessary to the Supplier in order to be fully compliant with the regulatory requirements for the Service provided under this agreement. The Parties will clearly indicate this agency relationship in any corresponding documentation required by governmental authorities.

 

7.15 Dispute Resolution. In the event of a dispute arising from or relating to this Agreement, the disputing Party will notify the other Party in writing. The Parties will negotiate with each other in good faith and will use commercially reasonable efforts to resolve the dispute. If the dispute is not resolved in a reasonable time, each Party will escalate the dispute to higher management (VP or equivalent).

 

8. Maintenance; Trouble Reporting.

 

8.1.     Cogent and Customer will mutually agree upon a process for accepting reports relating to repair or maintenance associated with the Services provided by Cogent to Customer. Cogent will maintain a 24 hours a day, 7 days a week point-of-contact for Customer to report Service issues (i.e., a NOC). The telephone number for Cogent’s 24x7x365 National Operations Center is [***] or [***]. Customer will maintain a 24 hours a day, 7 days a week point-of-contact for Cogent to report Service issues. The telephone number for Customer’s 24x7x365 National Operations Center is [***] and the email alias is [***].

 

8.2.     In the event of a failure, interruption, maintenance, or any other issue of the Services (“Issue”), Cogent shall duly notify Customer’s NOC of the Issue pursuant to Section 8.1. Such notification shall be provided promptly, by phone call and include a detailed description of the nature and extent of the Issue, as well as any other relevant information necessary to fully apprise Customer of the Issue. Updates about repairs shall be provided at an interval that appropriately matches the impact or risk through resolution of the Issue. The exact update frequency and methods for each Issue will be agreed upon by both Parties during the initial Issue notification communication, and as otherwise agreed until such communication.

 

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9.        Definitions.

 

AUP Cogent’s Acceptable Use Policy as posted by Cogent at www.Cogentco.com. Cogent reserves the right to amend its AUP at any time, effective upon posting on the Cogent website.
Cogent Cogent Communications, Inc. or its subsidiaries or affiliates.
Cogent Network The telecommunications network and network components owned, operated or controlled by Cogent, including Cogent’s fiber backbone, metropolitan fiber networks, any equipment connected to such fiber, and the software, data and know-how used by Cogent to provide the Services.  Where Cogent services a building through its own facilities, the Cogent Network includes those facilities.  The Cogent Network does not include customer premises equipment, customer-ordered telephony circuits, and any networks or network equipment not operated and controlled by Cogent.
Confidential Information

Confidential or proprietary information of, or concerning, the other Party, its representatives, affiliates, members, systems and customers, including commercial, financial, and technical information, customer or client lists, programs, procedures, data, documents, computer information and databases, business plans, trade secrets, budget forecasts, business arrangements, information regarding specific transactions, financial information and estimates, and long-term plans and goals. 

Customer Customer or its subsidiaries and affiliates
CSA The entire Customer Subscriber Agreement between Cogent and Customer for provision of the Service, consisting of, in order of priority, the Terms, the applicable Product Rider and the SLA, the Order Form, any addendum between the Parties.
Equipment Customer’s equipment, if any.
Initial Term Initial length of term for the Services as indicated on the Rider or Order Form.
Landlord Customer’s landlord, building owner or property/telecom manager.
Losses Costs, fees, liabilities, losses, damages or penalties, including reasonable legal fees.
Order Form Cover form to which these Terms are attached, identifying the specific Service(s) to be delivered.
Party or Parties Cogent and/or Customer.
Renewal Term Subsequent length of term for the Services after completion of the Initial Term.
Service(s) Network services provided by Cogent under the Customer Subscriber Agreement, including the Product Riders thereto.
Service Date Earlier of date on which (a) Cogent notifies Customer that the Service is available for Customer’s use at either the Cogent-defined demarcation point or last-available test point; or (b) Customer first uses the Service or the Cogent Network.  The Requested Service Date on the Order Form is the earliest date on which Customer is willing to accept Cogent Service.  Cogent does not guarantee that the Service will be installed on the Requested Service Date.
Signing Has the meaning set forth in the Transition Services Agreement
Space Rented rack space from Cogent, if any.
Tax or Taxes All taxes arising in any jurisdiction, including without limitation all:  sales, use, excise, gross receipts, value added, access, bypass, franchise, telecommunications, property (for co-location customers), consumption, or other taxes, fees, duties, charges or surcharges (however designated) which are imposed on or based on the provision, sale or use of the Service(s), including such taxes imposed directly on Cogent or for which Cogent is permitted to invoice Customer in connection with Cogent’s performance under the CSA.  Taxes do not include Cogent’s income taxes.  
Terms Terms and conditions that apply to the Services Cogent provides to Customer.
T-Mobile Network Information Confidential, Customer-specific network information related to the implementation and provision of Services to Customer, including but not limited to, the quantity, technical configuration, type, destination, location, and use of such Services.
Transition Services Agreement means the agreement of such title entered into by and between Cogent’s affiliate, Cogent Infrastructure, Inc. and Customer’s affiliate, Sprint LLC, approximately concurrently with the CSA, and includes all Exhibits and Annexes incorporated by reference in such agreement.

 

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Accepted and agreed to:

 

T-MOBILE USA, INC. COGENT INFRASTRUCTURE, INC.
By: /s/ Peter Osvaldik By:/s/ David Schaeffer
Name: Peter Osvaldik Name:  David Schaeffer
Title: Executive Vice President & Chief Financial Officer Title: President and Chief Executive Officer
Date: May 1, 2023 Date: May 1, 2023

 

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Exhibit A

 

[***] 

 

Page 9 of 14

 

 

Product Rider – 1

 

 

[***]

 

Page 10 of 14

 

 

 

Product Rider –2

 

 

[***]

 

Page 11 of 14

 

 

SCHEDULE 1

 

[***]

 

Page 12 of 14

 

 

Exhibit 1

 

[***]

 

Page 13 of 14

 

 

 

Product Rider –3

 

[***]

 

Page 14 of 14

 

 

Exhibit 99.1

 

  FOR IMMEDIATE RELEASE

 

Cogent Contacts:   
For Public Relations:  For Investor Relations:
Jocelyn Johnson  John Chang
+ 1 (202) 295-4299  + 1 (202) 295-4212
jajohnson@cogentco.com  investor.relations@cogentco.com

 

Cogent Communications Announces Closing of Acquisition of T-Mobile’s Wireline Business

 

WASHINGTON, D.C. May 1, 2023 – Cogent Communications Holdings, Inc. (“Cogent”) (NASDAQ: CCOI) today announced that it has closed the previously announced acquisition of T-Mobile’s Wireline Business.

 

The T-Mobile Wireline Business (formerly known as Sprint GMG) offers the legacy Sprint U.S. long-haul network, a current customer base who are a fit for Cogent’s products and services, and a group of experienced employees with the knowledge and capabilities to execute the company’s strategy.

 

About Cogent

 

Cogent (NASDAQ: CCOI) is a facilities-based provider of low cost, high speed Internet access and private network services to bandwidth intensive businesses. Cogent’s facilities-based, all-optical IP network provides services in 219 markets across 51 countries.

 

Cogent is headquartered at 2450 N Street, NW, Washington, D.C. 20037. For more information, visit www.cogentco.com. Cogent can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.

 

# # #

 

 

 

 

Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “projects” and similar expressions. These forward-looking statements include, but are not limited to, statements regarding benefits of the acquisition, integration plans and expected synergies and anticipated future financial and operating performance and results, including estimates for growth. The statements in this release are based upon the current beliefs and expectations of Cogent’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including risks related to the acquisition of T-Mobile’s Wireline Business by Cogent and related transactions, such as the risk that any announcements relating to the transaction could have adverse effects on the market price of Cogent’s common stock; the risk that the transaction and its consummation could have an adverse effect on the ability of Cogent to retain customers, to retain and hire key personnel or to maintain relationships with its suppliers and customers and on its operating results and businesses generally; the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; the risk that the combined company may be unable to achieve cost-cutting synergies or that it may take longer than expected to achieve those synergies and other factors; and other risks discussed from time to time in Cogent’s filings with the Securities and Exchange Commission, including, without limitation, Cogent’s Annual Report on Form 10-K for the year ended December 31, 2022. Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.

 

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