AGREEMENT FOR VOIP SERVICES --------------------------- THE UNDERSIGNED: 1. DIGITRAD FRANCE SARL, a SOCIETE A RESPONSABILITE LIMITEE, company incorporated under the laws of France, having its offices at sis 473, route des Dolines in Valbonne - Sophia Antipolis - Villantipolis n(degree)6 - BP 142 - 06560, France, registered with the Grasse Registry of Commerce and Companies under the number B 428 685 168 and hereby duly represented for the purposes of this agreement by Mr. Micha BENOLIEL in his quality of "Gerant", duly empowered hereafter also to be referred to as "PROVIDER", and 2. TELEPLUS GROUP, an company incorporated under the laws of United States, having its offices at 11601 Wilshire Blvd, Suite 2030, Los Angeles, CA hereby duly represented for the purposes of this agreement by Claude Buchert in his quality of Chief Executive Officer, duly empowered hereafter also to be referred to as "CUSTOMER", Both parties are hereafter also to be referred to as "PARTIES"; TAKING INTO CONSIDERATION THAT: o Provider provides Voice over Internet which means that it provides software (hereinafter "SOFTPHONE") which transmits voice communication by means of the Internet. (hereinafter "VOIP SERVICE"). Installing this software allows End Customers to communicate with any other End Customer by means of their computers and the Internet access that they arrange for themselves and allows End Customers to make and receive communications from the Public Switched Telephone Network. o Furthermore, Customer wishes to be allowed the use of Provider numbers for the duration of this Agreement in order for its customer to be able to receive the communications on Provider's VoIP service. o Customer agrees to develop under his trademark a Customer's VoIP service powered by Provider. Softphone to be downloaded from Customer's Website. Customer intends to integrate Softphone into Customer's Website and to market such Softphone and VoIP Service to End Customers. o Parties wish to lay down their respective rights and obligations in this Agreement. HAVE AGREED AS FOLLOWS: 1 1. DEFINITIONS 1.1 The following capitalised terms will have the meaning as set forth hereunder, either in the singular of in the plural form. AGREEMENT: this agreement and the Exhibits hereto; CALL: a transmission path through the internet and the PSTN infrastructure for the conveyance of signals for the purpose of voice telephony services; END CUSTOMERS: the party with whom Customer has entered into an agreement for the provision of VoIP services; EXHIBIT: exhibit to this Agreement; INCOMING SERVICE: service consisting of the routing of all communication that originate on the PSTN and is meant for the telephone numbers used by End Customers, to the VOIP-PSTN gateway; OUTCOMING SERVICE: service consisting of the receiving of a communication, that originates on the Internet, on the VOIP-PSTN Gateway as well as the transport of the transportation from the VOIP-PSTN gateway to numbers implemented on Provider infrastructure, or implemented on the infrastructure of third parties with whom Provider has entered into an interconnection agreement, for completion of the communication by Provider; SOFTPHONE means a Provider supplied downloadable computer software capable of delivering Service. TAB SERVICE means one or more specific areas of real estate within the Softphone which can be clicked by End Customers to browse contents supplied by Provider or Customer. PSTN-USER: a person who receives the communication on the Public Switched Telephone Network; SERVICE: the services provided by Provider under this Agreement as well as the provision of Provider's telephone numbers to End Customers VOIP-PSTN GATEWAY: the equipment used to provide the electronic `bridge' from the Internet to the PSTN; WORKING DAYS: Monday to Friday, with the exception of public holidays in France; CUSTOMER'S WEBSITE: any and all elements and contents of the website available - amongst other URLs - under the URL WWW.1TC.COM , from which website the Softphone can be downloaded; 2 2. PROVISION OF THE SERVICES 2.1 Company shall provide the Service in accordance with the Service Description attached hereto as Exhibit A. 2.2 The Service shall be put into service within a reasonable period of time, but not later than 45 days, after the date of signing the Agreement or any other date agreed upon by the Parties. Prior to the provision of the Service, Parties shall come to an agreement on tests for the Service based on industry agreed processes and criteria. Upon successful completion of such tests, Provider shall deliver to Customer a `Ready for Service Notification'. Delay in the provision of the Service shall not be taken into account in the event that it is due to the conduction of tests. In any event that the test evidence the existence of anomalies, Provider shall remedy any such defects found in a prompt manner. 2.3 In addition, it is hereby expressly agreed by Customer that it shall, at all times collaborate with Provider in order to enable it to make the Services available at the agreed date and to conduct satisfactory and successful tests. 2.4 The Service shall be maintained by Provider. Faults in the Service shall be restored in accordance with EXHIBIT D. 2.5 In the event that Customer will be required to provide operator assistance, directory enquiry services, Provider will use its best efforts to provide all necessary assistance in order to fulfill these obligations. By entering into this Agreement Customer acknowledge and agree that the Service cannot be used for emergency calling. None of Provider's services carry or support, or intend to carry or support emergency calls. 2.6 Parties shall supply to each other forecasts in accordance with EXHIBIT A. 3. PROVISION OF NUMBERS 3.1 Each of the Parties acknowledges having obtained or undertakes to obtain and to maintain, at any time, any and all authorization (or declaration) necessary to execute its obligations under the Agreement and/or to use the Service. 3.2 Provider will be use its best endeavour to allow the use of Provider's telephone numbers by End Customers, after having received a written request of Customer thereto. 3.3 Parties agree that the use of the telephone numbers by Customers does not constitute any transfer of any property or other rights with regard to the telephone numbers and Customer consequently acknowledges and accepts to follow Provider's instructions in connection with the use of the telephone numbers including but not limited to instruction resulting directly from competent authorities. For the avoidance of doubt, it is hereby clearly agreed that "competent authority" shall be understood as any governmental and/or private entity having legal, regulatory and/or customary competence and authority to draft, edict and enforce laws, rules and/or regulations relating to the activities of Customer's or Provider's activities. 3 3.4 In the event of "under-use" of the telephone numbers resources allocated, Customer irrevocably undertakes that, upon simple written request of Provider, to return the unused resources provided that it has been advised at least thirty days in advance. The expression "under-use" used in this article shall designate allocated telephone numbers which, for a period of at least three (3) months have not been exploited by Customer, i.e., have not received any call over that period. 3.5 In addition, Customer acknowledges and accepts that telephone resources are limited and that Provider shall not be held liable for its inability to provide all or part of the requested telephone numbers. 3.6 Customer will comply with any reasonable instructions given by Provider with regard to the use of the telephone numbers. Customer will comply with the requirements of the relevant national numbering plan. 3.7 Customer will provide information with regard to the use of the telephone numbers, including information with regard to the fulfilment of the requirements of the number plan, as may reasonably be required from time to time by Provider. 3.8 Provider will be its best endeavour to keep Customer regularly informed of the applicable national number plans and the consequences thereof for Customer and its End Customers. 3.9 Provider may terminate the telephone numbers: a) by giving three months prior written notice to Customer to take effect at the end of the minimum period or at any time thereafter. b) by giving a prior written notice of at least one day, if Provider is forced to do so by an competent authority. 4. NUMBERPORTABILITY 4.1 If requested by Customer, Provider shall, if possible, use its best endeavours to transfer the telephone numbers that have been given in use to End Customers, to any electronic communications network or service provider. Provider will use all reasonable endeavours to effect such a transfer and as soon as possible taking into account any other provider's lead times. 4.2 In any case, it however specified and agreed that Provider shall solely be under the obligation stated above if the operator to which the telephone number has to be transferred (i) has complied with all relevant and applicable legislation for portability ; (ii) evidences that it is entitled, under the legal provisions applicable to it, that it is entitled to provide the Service ; and (iii) has concluded with Provider a portability agreement. 4 4.3 All costs relating to such portability shall be borne solely by Customer. 5. EQUIPMENT 5.1 All equipment provided by one Party in connection with this Agreement shall remain the property of that Party. Each Party will comply with any reasonable instruction of the other regarding such equipment. Equipment on the other Party's premises will be kept secure and not interfered with by any person. Upon termination of this Agreement, Parties will ensure access to any relevant site to remove equipment and will make sure that all necessary authorizations to do so are obtained. 5.2 In the event of co-location, parties shall comply with all reasonable requests for access when one Party requires access to the other Party's premises in order to maintain equipment or to ensure the continued provision of the Service. 6. PROVISION OF INFORMATION 6.1 Each Party will promptly provide, free of charge, any information, including but not limited to information on protocols in use by it, as is reasonably required from time to time by the other Party for the implementation, use or provision of the Service and the telephone numbers allocated to End Customers. 6.2 The provisions of the Agreement and the information, whether written or oral and which are not in the public domain and relating to this contract (hereinafter the "CONFIDENTIAL INFORMATION"), shall be kept confidential and not be disclosed, in whole or in part, to any other person than the managers, directors, employees or representatives of a Party needing to have knowledge of the Confidential Information in order to negotiate, sign and execute this Agreement (collectively the "REPRESENTATIVES"). Said Confidential Information shall not be used for any other means. 6.3 Each Party undertakes to inform its Representatives of the private nature of the Confidential Information and to command these persons to treat these Confidential Information in accordance with the provisions of this Section. The Parties shall be authorized to disclose Confidential Information (i) on order issued by a court or tribunal or by a duly empowered administrative body, (ii) upon request or order of a duly empowered agency, competent authority or regulatory body or in accordance with a regulation of such, (iii) if reasonably necessary in the course of an action raised in application of the Agreement, (iv) to the independent legal counsels or auditors of a Party (v) to the sub-contractors of a Party, and (vi) to any authorized assigned in accordance with the Agreement, provided that the assignee undertakes, in writing, to be bound by the provisions of this article. 6.4 This section shall apply for the entire Term of this Agreement and shall be maintained at its expiry for a three (3) year period. 5 7. IP ADDRESSES AND GENERAL INFORMATION 7.1 If necessary, Customer shall use reasonable endeavours to provide the IP-addresses and/or other relevant general information of Customers to Provider for the purpose of routing calls, billing each other and agreed administrative use. Provider shall only use such information in accordance with the applicable law. In the event that Customer fails to provide such information to Provider, it is understood and agreed between the Parties that such failure could impact the provision of the Services by Provider and that consequently Provider shall in no case be held liable for any subsequent delay or incapacity to provide the Services. 8. PRIVACY AND SAFETY 8.1 Provider shall use its best endeavours to guarantee the confidentiality of communications via its Service, with due compliance with the applicable obligations and exceptions laid down by mandatory law and regulation. 8.2 Provider shall process personal and traffic data, which is needed to provide a proper Service, in accordance with the applicable law and regulations. Provider shall take organizational and technical measures it deems, to the best of its knowledge, as relevant and appropriate to protect the personal and traffic data and shall not retain it longer than required in order to provide the Services or as required by applicable law and regulations. 8.3 Provider shall comply with statutory obligations to provide information (including personal and/or traffic data), for example in the context of a criminal investigation. 8.4 Provider guarantees that it will meet its (statutory) obligation to retain and provide traffic data and/or to install wiretapping equipment in order to intercept communication if expressly required to do so by any competent body. 8.5 In the event that a designated competent authority requests Customer to retain and provide traffic data and/or to install wiretapping equipment in order to intercept communication, Provider will provide Customer with all necessary assistance and information in order to meet these requests. 9. RATES AND CHARGES 9.1 For providing Softphone which enables the End Customer communications, Customer will pay Provider the charges stated in Exhibit B to this Agreement. For the Service, Customer will pay Provider the charges stated in Exhibit B. Charges shall be calculated based on one (1) second intervals of the Call by the applicable rate. No charges will be payable for the conveyance of any Call which is not answered. 6 9.2 Unless otherwise stated all rates and charges shall be exclusive value added tax (VAT) or any other applicable tax. 10. TERMS OF PAYMENT 10.1 The charges shall be payable from the date Customer has received the `Ready for Service Notification' mentioned in SECTION 2.2. 10.2 No charges shall be payable under this Agreement by Customer to Provider unless such charges are specifically referred to in this Agreement. 10.3 Provider shall provide to Customer invoices of all charges due, calculated in accordance with the provisions of EXHIBIT B AND EXHIBIT C, within 15 days after the end of each month. The invoices are due and payable in Euro. 10.4 Customer will pay the charges due under this Agreement within 30 days of the date of the invoice. If Customer does not fulfil its payment obligation within this period, Provider shall will send a reminder stating a new payment period. If Customer does not make payment within this new period, Provider is entitled, at its sole discretion, automatically, as of right and without the need for a jurisdiction of any kind to confirm it, to: (i) charge the overdue amounts with interest at a rate equal to the latest EURIBOR rate increased by four (4) points; (ii) suspend the service until satisfactory payment of all overdue payments (including their interest) is issued; or (iii) terminate this Agreement. Recourse to either or all of the aforementioned remedies shall in no case prevent Provider from having recourse to another of said remedies and/or raise any action which it may have in this respect. 10.5 For the purpose of this Agreement, Provider grants Customer a credit limit, for the use of the Outcoming Services, at an amount of thirty thousand euros ((euro) 30.000) (the "CREDIT LIMIT"). In the event that, during an invoicing period Customer reaches the Credit Limit, Provider shall be entitled, at its sole discretion, automatically and as of right, to suspend provision of the Services and send an invoice to Customer for the total amount of use of the Services. Provider shall then solely restore provision of the Services upon payment by Customer of the entirety of said invoice which shall be subject to the provisions of SECTION 10.4 above. In addition, it is expressly agreed between the Parties that the Credit Limit is in no event limited to a single invoicing period and that consequently, its calculation shall run until receipt of the amounts due under the latest invoice issued by Provider. 10.6 If Customer disagrees on the amount of an invoice, it will inform Provider in writing within thirty (30) days of the date of the invoice. Such contestation shall clearly underline and justify Customer's contestation of the invoice. 10.7 In the event that Customer contests all or part of an invoice in accordance with the provisions of SECTION 10.7 above, it shall in any case issue payment of the uncontested amounts of the concerned invoice by the due date such as provided for in SECTION 10.4. above. 7 10.8 Notwithstanding anything in the above provisions, the Parties hereby expressly acknowledge and agree that the CDRs issued by the Service Provider's System will be used as the basis of the invoicing of Customer and for the calculation of the charges. Consequently the Parties agree that, such CDRs shall be the sole element taken into account for invoicing and Customer hereby expressly waives any right to contest said CDRs unless it can duly evidence a fraud or a manifest error of the Service Provider's system. 11. INTELLECTUAL PROPERTY RIGHTS 11.1 All intellectual property rights regarding the Services, including but not limited to the software and documentation that is used therefore, developed and/or owned by a Party shall be and shall remain the sole property of that Party. Neither the delivery of any services nor this Agreement implies any transfer of intellectual property rights. 11.2 Parties will only obtain a non-exclusive and non-transferable right for the use of the Services for the agreed objectives. Parties commit themselves to adhere rigidly to any conditions, laid down in the Agreement or imposed in any other way. 12. LIMITATION OF LIABILITY 12.1 It is hereby expressly specified that, in the provision of the Services, the Parties are solely bound to provide their best efforts. In this respect, each Party undertakes to provide all reasonable care and efforts in the provision of the Services. 12.2 Neither Party shall be held responsible for the delays or inexecution or of its contractual obligations resulting from events which can reasonably considered as out of its control such as the following events : governmental decision, meteorological perturbations, strikes and labour conflicts other than those opposing the concerned Party to its employees, lack or suspension of the provision of electricity, thunder or fire, decision of a national or international administrative authority or of any competent authority, war, public troubles, acts or omissions of other telecommunications operators or events outwith the scope of the reasonable control of the concerned Party's providers. 12.3 For the contractual obligation to make timely payment of the invoices such as mentioned above, neither Party shall be held liable, for any reason whatsoever, of the following damages : a) Loss of revenues, activities, contracts, clientele, savings, profits or data - the terms "loss of savings" shall mean any expense which one of the Parties intends to avoid or to undertake at a lower cost thanks to the use of the Services ; or 8 b) Any indirect damage likely to intervene in the course of execution of the Agreement. 12.4 In additon, each of the Parties is solely and exclusively responsible of the provision of its own Services to its clients and resolves with them the disputes which could arise in the occasion of the provision of the Services. 12.5 In the event that one of the Parties shall be held liable in connection with the execution of its obligations under the Agreement, it is hereby expressly specified that its liability shall not exceed fifty thousand euros ((euro) 50.000) for any one direct damages or to one hundred thousand euros ((euro) 100.000) for any series of direct damages resulting from the same facts within a twelve (12) months period. 12.6 The provisions of this Section limitatively include all conditions applicable to the liability of each of the Parties in the frame of the execution of the Agreement. 13. TERM, TERMINATION AND SUSPENTION 13.1 The Agreement is concluded for an initial term of twelve (12) months (the "INITIAL TERM"), as of the date of signature of the Agreement, and shall be tacitly renewed for an indeterminate period of time (the "RENEWAL TERM") at the expiry of the Initial Term. 13.2 Either Party shall be entitled to terminate the contract either one (1) month prior to the expiry of the Initial Term or during the Renewal Term with a one (1) month prior notice sent to the other Party in accordance with the forms hereinafter defined. 13.3 In the event of a failure to meet any of its essential obligations resulting from the Agreement and including -but not limited to - the obligation to make payment of the invoices such as defined in SECTION 10 above, the non-defaulting Party shall send the defaulting Party a notice of default specifying the nature of the default with regard to the Agreement. 13.4 If the defaulting Party has not remedied to its default within five (5) days of sending of the default notice, the non-defaulting Party shall then be entitled, by sending to the defaulting Party a termination notice, to unilaterally, automatically and without the need to have recourse to any court or tribunal, declare the termination of the Agreement. Such termination shall therefore be immediate and shall take effect at the date of sending of the termination notice. 13.5 In addition, notwithstanding the above and as far as that is allowed by the applicable legal provisions, either Party shall be entitled to unilaterally, automatically and without the need to have recourse to any court or tribunal, declare the termination of the Agreement if the other Party files for or is filed for (i) a conciliation or rescheduling procedure for its debts towards its creditors, (ii) an assistance procedure for companies facing difficulties, and (iii) a bankruptcy or winding-up procedure or any similar procedure. 9 13.6 The fact, for the non-defaulting Party not to exercise its right to terminate the Agreement in the event of occurrence of one of the unilateral termination cases mentioned above, shall in no event be construed as a waiver of the right to eventually have recourse to this right later on. 13.7 The exercise of its termination right by either Party in the cases mentioned in the Agreement shall in no case affect or hinder their rights to raise any and all claims, actions or procedures available to them nor their eventual rights to damages before the competent jurisdictions. 13.8 Provider may suspend or block access to a Service without notice for any of the following reasons: (a) to comply with any law, regulation, court order, competent authority, or other governmental request or order requiring immediate action; (b) to prevent interference with, damage to, or degradation of Provider's network, equipment, system ; (c) the Service is used in a manner that violates any applicable law, regulation, or the obligations resulting from the Agreement, or otherwise exposes Provider to legal liability, whether this use is by Customer or any other entity or person using the Service and whether or not this use is authorized or consented to by Customer; or Customer does not pay an amount when due. 14. ASSIGNMENT 14.1 Parties may not assign, or otherwise transfer, this Agreement, or any rights or obligations hereunder without the other Party's written consent (which consent shall not be unreasonably withheld or delayed), always provided that each Party may, on written notice, assign, transfer or otherwise dispose of any or all rights hereunder to an affiliate of such Party. For this purpose affiliate shall mean "any company that, directly or indirectly, (a) is owned or controlled by Party (b) owns or controls Party, or (c) is owned or controlled by a company controlling Party at the time in question. For this purpose, ownership (directly or indirectly) of at least fifty percent (50%) of the shares or voting rights of the company shall be deemed to constitute ownership or control thereof." 15. NOTICES 15.1 All notices concerning the Agreement and the execution thereof will be send in writing, including but not limited to e-mail messages to: PROVIDER Commercial Contact: Micha Benoliel Address: 91, rue du Faubourg Saint Honore Place: 75008 PARIS Phone: +33 1 70 08 04 70 Fax: +33 1 700 888 44 Email: mb@digitrad.com Billing Contact: Patricia Franceze Email: pf@digitrad.com Fault Reporting (Technical) Contact: Arnaud Covez Phone: + 33 6 64 22 93 72 Email:ac@digitrad.com 10 CUSTOMER Commercial Contact: Address Place Phone/fax/e-mail Billing Contact: Phone: Email: Fault Reporting (Technical) Contact: Phone: Email: 15.2 Parties will inform each other immediately in case of change of address or change of contact. 16. DISPUTES 16.1 If a Party wishes to invoke the dispute procedure specified in this article, it shall send written notice of the dispute to the other Party. The notice shall contain all relevant details including the nature and the extent of the dispute. The receiving Party shall acknowledge the receipt of such notice of the dispute within two (2) Working Days. 16.2 Following this notice, Parties shall consult in good faith to try to resolve the dispute. If agreement has not been reached within fourteen (14) Working Days, either Party may refer the dispute to the CFO and shall forthwith send a copy of the referral to the other Party. Should the Parties fail to reach an agreement through this conciliation procedure, they shall then refer the matter in accordance with the provisions of SECTION 17 hereunder. 16.3 This procedure is without prejudice to any other rights and remedies that may be available in respect of any breach of any provision of the Agreement. 17. GOVERNING LAW 17.1 The Agreement shall be governed by the laws of France. 17.2 Any dispute arising in connection with this Agreement which cannot be resolved by diligent negotiations in good faith shall be finally settled in arbitration in accordance with the Rules of Arbitration of the Nice (France - 06) Chamber of Commerce or equivalent. The place of arbitration shall be Grasse (France - 06) Trade Tribunal and the French language shall be used in the proceedings. 11 18. MISCELLANEOUS 18.1 EXHIBIT A, B, C AND D are part of this Agreement. If the contents of any Exhibit contradict one or more of the provisions of this Agreement, the provisions of this Agreement shall prevail. 18.2 The Agreement constitutes the true and entire agreement between Parties with respect to the subject matter hereof and shall set aside all prior arrangements. 18.3 The invalidity or unenforceability of any provision of the Agreement shall not affect the validity or enforceability of the remaining provisions of this Agreement. In the event that any provision of the Agreement shall be determined to be invalid, unlawful or unenforceable to any extent, Parties will mutually agree upon a new provision that will approximate the contents and scope of the original provision. 18.4 No amendments of this Agreement shall be valid unless it is in writing and signed by or on behalf of each of the Parties. 18.5 The Failure of either Party to enforce any of its rights under the Agreement shall not be considered a waiver of that Party's right to enforce said provision or any other provision included herein. 12 Thus declared and signed in twofold in Los Angeles, On _________________ 2006. On behalf of Provider: On behalf of Customer: - ------------------- ------------------- Name: Name: Function: Function: EXHIBITS: Exhibit A Service Description Exhibit B Tariffs Exhibit C Invoicing Exhibit D End Customer Licence Agreement 13 EXHIBIT A SERVICE DESCRIPTION ----------------------------- 1. DESCRIPTION SERVICES Provider provides Voice over Internet which means that it provides software which transmits voice communication by means of the Internet. Installing this software allows End Customers to communicate with any other End Customer by means of their computers and the Internet access that they arrange for themselves. 2. DESCRIPTION INCOMING SERVICES The Service consists of the collection and conveyance of calls directed to telephone numbers allocated to Customer up to the VOIP-PSTN gateway. For this purpose, telephone numbers are allocated by Provider to Customer upon express written request of the latter. On request, Provider shall use its best endeavors to allocate the resources, including but not limited to telephone numbers, within thirty days after receipt of Customer's request. 3. DESCRIPTION OUTCOMING SERVICES The Service consists of the receiving of a Call on the VOIP-PSTN Gateway as well as the conveyance of the Call from the VOIP-PSTN gateway to numbers implemented on Provider's infrastructure, or implemented on the infrastructure of third parties with whom Provider has entered into an interconnection agreement, for completion of the Call by Provider. 4. SOFTPHONE LICENCE Provider is willing to supply to Customer for the purpose of combining with other software products, hardware products, or services that Customer will include in his Customer's VoIP service and Customer`s Website on the terms and conditions set forth herein. Subject to the terms and conditions of this Agreement, Customer shall: A. Incorporate Softphone into Customer Website and/or Customer's VoIP service(s); B. Market, sell and deliver Customer Website and/or Customer's VoIP service(s); C. Present the End Customer License Agreement to all prospective End Customers; Provider hereby grants to Customer a nonexclusive and nontransferable right and license during the term of this Agreement to integrate the Softphone with and incorporate the Sophtphone into Customer's Website and Customer's VoIP service(s), to copy the Sophtphone, or the Master Media, for use as part of Customer's VoIP services, and to distribute such copies of the Softphone as part of the Customer's Website and Customer's VoIP services. Customer shall have no right to modify or prepare derivative works of Softphone or to possess or use the source code form of the Softphone. Any distribution of the Softphone shall be pursuant to the terms and conditions of the End Customer License Agreement. The End Customer License Agreement included with all Customer's Website and all copies of Customer's VoIP Service(s) shall be substantially identical in terms and form to that set forth in Exhibit D. Customer may, from time to time, change the terms of the End Customer License Agreement set forth in Exhibit D, however, if the proposed changes to the End Customer License Agreement substantially affect the rights of Provider, then such proposed changes will be subject to the review and prior written approval of Provider, which approval will not be unreasonably withheld. 5. TRAFFIC FORECASTING Customer shall issue monthly non-binding traffic forecasts enabling Provider to size its network in consideration of the coming traffic. Said forecasts shall consist in traffic previsions per destination for the three forthcoming months as of the date of the forecast. Customer shall be entitled to review its forecasts monthly. Any modification to the forecasts shall however be taken into account by Provider as of the second invoicing period following the invoicing period during which the adjustment was made by Customer. 14 EXHIBIT B TARIFS ---------------- 1. VOIP SERVICE - --------------- For use of the Services, the Parties agree that Customer shall: - - pay Provider intial fee fixed at 96.000 USD (Ninety six thousands US dollars). Initial fee to be paid in three installments: - On signature of contract (70% of the amount) - On delivery a Softphone Beta vsersion (15% of the amount) - On delivery a `Ready for Service Notification' (15% of the amount) - - for the first year, the Provider will include in the initial fee 5.000 licenses of the Softphone for the End Customer who would have paid for any of the Customer's services. For any additionnal license the customer will pay to Provider annual royalties of 2.50 USD (Two point fifty US dollars) per additionnal copy of the softphone downloaded by End Customer who have paid for any of the Customer's services. - - for the first year, the Provider will include in the initial fee 3 Customized tabs (one per white label client). For any additionnal tab the customer will pay to Provider annual 35.000 USD (Thirty Five thousands US dollars). - - for the subsequent years, pay to Provider the non-refundable annual royalties of 2.50 USD (Two point fifty US dollars) per copy of Softphone downloaded by End Customers who have paid for any of the Customer's services. Billing will be made quarterly on the basis of the numbers of active licenses. We consider an active license a user who has paid for any of the Customer's services. - - for the subsequent year, pay to Provider an annual fee for the 3 Customized tabs (one per white label client) of 35.000 USD (Thirty thousand US dollars). For any additionnal tab the customer will pay to Provider annual 30.000 USD (Thirty Five thousands US dollars. 2. REVENUE SHARING. - ------------------- In consideration of management by Provider of Services, Customer agrees to pay Provider a certain percentage of Customer`s gross revenue resulting from each of the Customer's services as follows: a) Outcomming Service (for PSTN termination provided by Customer or by Provider): Customer shall purchase wholesale termination to Provider and decide freely of its Outcomming Service pricing. b) Teltel value added services : Subject to Subsection (d) below, Provider reserves the rights to market TelTel value added services (VAS) to End Customers. In this event, Provider shall be entitled to receive 85% for TelTel's VAS and Customer shall be entitled to receive 15% of the revenues generated for TelTel's VAS. Provider and Customer will gain approval from each other before offering any Teltel VAS to insure that there are no conflicts or other issues that would prevent the offering of those services. Both parties agree to pursue all reasonable efforts to accommodate the requesting party's desire to offer VAS. 15 c) Customer Tab Services: Subject to Subsection (d) below, Customer shall pay Provider 40% of its revenue resulting from advertisements and e-commerce transactions offered through Customer's Tab monthly. Provider shall pay Customer 25% of its revenue resulting from advertisements and e-commerce transactions offered through the Teltel Tab monthly. d) Revenue sharing percentages described in Subsections (c) above shall be adjusted as follows for all services billed on a per minute basis: i. Services offered by Provider: Provider shall receive 40% of the revenue and Customer shall receive 60% of the revenue ii. Services offered by Customer : Customer shall receive 85% of the revenue and Provider shall receive 15% (Fifteen Percent) of the revenue f) Provider and Customer will negotiate in good faith on mutually acceptable revenue sharing percentages for all other Provider services and Customer services to be offered to End Customers. 3. VOIP TRAFFIC COLLECTION SERVICE - ---------------------------------- - - pay Provider amount of the utilization costs for the telephone numbers fixed at 1.50 USD excl. taxes per number allocated and per month. 16 4. VOIP TRAFFIC TERMINATION SERVICE - ----------------------------------- The utilization costs of the Service are invoiced on one second increments as of the first second. The rates in the hereunder table exclude taxes. - ------------------------------------------------------------------------------- Country/Region/Type WHOLESALE RATE US DOLLARS - ------------------------------------------------------------------------------- Afghanistan 0,6189 Afghanistan - Mobile 0,6933 Albania 0,4731 Algeria 0,4344 Algeria - Mobile 0,4344 Algeria-Algiers 0,4344 Andorra 0,1018 Andorra - Mobile 0,4911 Angola 0,4780 Angola - Mobile 0,4780 Anguilla 0,4600 Antigua Barbuda 0,2997 Argentina 0,3009 Argentina - Mobile 0,4161 Argentina-Buenos Aires 0,2692 Argentina-Cordoba 0,0900 Armenia 0,1932 Armenia - Mobile 0,4206 Aruba 1,4344 Ascension 1,1781 Australia 0,0174 Australia - Mobile 0,2572 Australia-Canberra 0,0174 Australia-Shared Cost 0,0174 Australia-Sydney 0,0174 Austria 0,0234 Austria - Mobile 0,3024 Austria - Mobile - Telering 0,3552 Azerbaijan 0,3562 Bahamas 0,1410 Bahrain 0,3454 Bangladesh 0,1020 Bangladesh - Mobile 0,1020 Barbados 0,4617 17 Belarus 0,5001 Belarus - Mobile 0,5001 Belgium 0,0222 Belgium - Mobile 0,3040 Belgium - Mobile (Proximus) 0,2940 Belize 0,5193 Benin 0,2302 Bermuda 0,4620 Bhutan 0,4461 Bolivia 0,2487 Bolivia - Mobile 0,2487 Bolivia-La Paz 0,2487 Bosnia and Herzegovina 0,3240 Bosnia and Herzegovina - Mobile 0,4911 Botswana 0,4977 Brazil 0,0704 Brazil - Mobile 0,1836 Brazil-Rio de Janeiro 0,0704 Brazil-Sao Paulo 0,0599 Brunei Darussalam 0,1128 Brunei Darussalam - Mobile 0,2910 Bulgaria 0,1449 Bulgaria - Mobile 0,4989 Bulgaria-Sofia 0,0780 Burkina Faso 0,4042 Burundi 0,3045 Cambodia 0,3256 Cambodia - Mobile 0,3496 Cameroon 0,4186 Cameroon - Mobile 0,4186 Canada 0,0150 Cape Verde 0,7150 Cayman Islands 0,3670 Central Africa 0,2772 Chad 0,7366 Chile 0,0594 Chile - Mobile 0,3226 Chile-Santiago 0,0594 China 0,0174 China - Mobile 0,0174 China-Beijing 0,0174 China-Guangzhou 0,0174 18 China-Shanghai 0,0174 China-Shenzhen 0,0174 Colombia 0,1518 Colombia - Mobile 0,1648 Colombia-Armenia 0,1518 Colombia-Barranquilla 0,1380 Colombia-Bogota 0,0900 Colombia-Cali 0,0933 Colombia-Medellin 0,1300 Colombia-Pereira 0,1432 Comoros and Mayotte 2,0991 Congo 0,2001 Congo Dem Rep 0,6600 Congo Dem Rep - Mobile 0,6600 Cook Islands 2,6400 Costa Rica 1,3300 Costa Rica - Mobile 0,1584 Croatia 0,1192 Croatia - Mobile 0,3724 Cuba 1,5000 Cyprus 0,2151 Cyprus - Mobile 0,2151 Czech Republic 0,0606 Czech Republic - Mobile 0,3390 Czech Republic-Prague 0,0592 Denmark 0,0204 Denmark - Mobile 0,2988 Diego Garcia 13,0440 Djibouti 1,2303 Dominica 0,4366 Dominican Republic 0,1540 Dominican Republic - Mobile 0,2904 East Timor 3,3996 Ecuador 0,2613 Ecuador - Mobile 0,3258 Ecuador-Cuenca 0,2613 Ecuador-Guayaquil 0,2802 Ecuador-Quito 0,2800 Egypt 0,3018 Egypt - Mobile 0,2476 Egypt-Cairo 0,3018 El Salvador 0,2052 19 El Salvador - Mobile 0,2259 Equatorial Guinea 0,4644 Eritrea 0,5505 Estonia 0,9180 Estonia - Mobile 0,9180 Ethiopia 0,8841 Ethiopia - Mobile 0,8841 Falkland Islands 1,1440 Faroe Islands 0,3105 Fiji 0,4758 Finland 0,0759 Finland - Mobile 0,3210 Finland-Helsinki 0,0759 France 0,0156 France - Mobile 0,2147 France-Paris 0,0156 French Guiana 0,7803 French Guiana - Mobile 0,7803 French Polynesia 0,4119 Gabon 0,3792 Gambia 0,4323 Gambia - Mobile 0,4323 Georgia 0,1701 Georgia - Mobile 0,3195 Germany 0,0162 Germany - Mobile (Others) 0,3347 Germany - Mobile Tmobil 0,3347 Germany - Mobile Vodafone 0,3347 Ghana 0,1986 Ghana - Mobile 0,2646 Ghana-Accra 0,1986 Gibraltar 0,0922 Gibraltar - Mobile 0,6372 Greece 0,0628 Greece - Mobile 0,3693 Greece-Athens 0,0588 Greenland 1,2477 Greenland - Mobile 1,2780 Grenada 0,4041 Grenada - Mobile 0,4041 Guadeloupe 0,7491 Guadeloupe - Mobile 0,7491 Guam 0,0940 Guatemala 0,2433 Guatemala - Mobile 0,2433 20 Guinea 0,5712 Guinea-Bissau 1,8454 Guyana 0,6400 Haiti 0,5518 Haiti - Mobile 0,5518 Honduras 0,5280 Honduras - Mobile 0,5280 Hong Kong 0,0179 Hong Kong - Mobile 0,0179 Hungary 0,0753 Hungary - Mobile 0,4236 Hungary-Budapest 0,0753 Iceland 0,0813 Iceland - Mobile 0,5001 India 0,2100 India - Mobile 0,2100 India-Ahmedabad 0,2100 India-Bangalore 0,2100 India-Hyderabad 0,2100 India-Madras 0,2100 India-New Delhi 0,2100 Indonesia 0,1139 Indonesia - Mobile 0,1832 Indonesia-Jakarta 0,1139 Iran 0,3000 Iran - Mobile 0,3201 Iran-Tehran 0,3000 Iraq 0,6070 Ireland 0,0174 Ireland - Mobile 0,2556 Ireland-Dublin 0,0372 Israel 0,0509 Israel - Jerusalem 0,0606 Israel - Mobile 0,1679 Israel - Mobile - Palestine Region 0,1079 Israel - Palestine Region 0,1079 Italy 0,0174 Italy - Mobile 0,3314 Jamaica 0,3622 21 Jamaica - Mobile 0,3622 Japan 0,0323 Japan 0,0323 Japan - Mobile 0,1962 Jordan 0,3076 Jordan - Mobile 0,3628 Kazakhstan 0,2584 Kazakhstan - Mobile 0,3400 Kenya 0,3780 Kenya - Mobile 0,5628 Kenya-Mombasa 0,3780 Kenya-Nairobi 0,3780 Korea Dem People's Rep 3,0000 Korea Republic of 0,0333 Korea Republic of - Mobile 0,0916 Korea Republic of-Seoul 0,0333 Kuwait 0,1917 Kuwait - Mobile 0,1932 Kyrgyzstan 0,4018 Kyrgyzstan - Mobile 0,4018 Laos PDR 0,2740 Latvia 0,2439 Latvia - Mobile 0,3964 Lebanon 0,2182 Lebanon - Mobile 0,3910 Lesotho 0,5092 Liberia 0,4236 Libya 0,3693 Liechtenstein 1,7124 Liechtenstein - Mobile 0,7278 Lithuania 0,1822 Luxembourg 0,0263 Luxembourg - Mobile 0,2999 Macao 0,0538 Macao - Mobile 0,0538 Macedonia 0,2577 Macedonia - Mobile 0,5313 Madagascar 0,5628 Madagascar - Mobile 0,5628 Malawi 0,1860 Malaysia 0,0270 Malaysia - Mobile 0,0988 22 Malaysia-Kuala Lumpur 0,0467 Maldives 0,6600 Mali 0,4881 Mali-Bamako 0,4881 Malta 0,4107 Malta - Mobile 0,5148 Marshall Islands 0,6183 Martinique 0,6600 Martinique - Mobile 0,6600 Mauritania 0,5682 Mauritius 0,5001 Mexico 0,1199 Mexico-Guadalajara 0,3520 Mexico-Mexico City 0,1199 Mexico-Monterrey 0,1199 Mexico - Mobile 0,1199 Micronesia 0,7150 Moldova 0,3922 Moldova - Mobile 0,3922 Monaco 0,1062 Monaco - Mobile 0,1360 Monaco - Mobile-EX, KFOR 0,4461 Mongolia 0,1270 Montserrat 0,3927 Morocco 0,5220 Morocco - Mobile 0,5392 Morocco-Casablanca 0,3807 Morocco-Rabat 0,3807 Mozambique 0,4401 Mozambique - Mobile 0,4401 Myanmar 0,8001 Namibia 0,3975 Nauru 1,6845 Nepal 0,4038 Nepal-Kathmandu 0,4038 Nepal - Mobile 0,4038 Netherlands 0,0174 Netherlands - Mobile 0,3347 Netherlands Antilles 0,3816 New Caledonia 0,6171 New Zealand 0,0195 New Zealand - Mobile 0,2925 23 Nicaragua 0,5410 Nicaragua - Mobile 0,5410 Niger 0,3381 Nigeria 0,5866 Nigeria - Mobile - Others 0,2970 Nigeria-Lagos 0,4145 Norway 0,0198 Norway - Mobile 0,2496 Oman 0,4401 Pakistan 0,2992 Pakistan - Mobile 0,3040 Pakistan-Islamabad 0,2981 Pakistan-Karachi 0,2885 Pakistan-Lahore 0,2774 Palau 0,7467 Palestinian Authority 0,3306 Panama 0,1767 Panama - Mobile 0,2802 Paraguay 0,2223 Paraguay - Mobile 0,3454 Paraguay-Asuncion 0,2223 Peru 0,1323 Peru - Mobile 0,4900 Peru-Lima 0,0616 Philippines 0,1902 Philippines - Mobile 0,2279 Philippines-Cebu 0,2289 Philippines-Manila 0,1902 Poland 0,0639 Poland - Mobile 0,4180 Poland-Gdansk 0,1320 Poland-Warsaw 0,0597 Portugal 0,0274 Portugal - Mobile 0,2997 Puerto Rico 0,0670 Qatar 0,4941 Qatar - Mobile 0,5518 Reunion 0,3000 Reunion - Mobile 0,5736 Romania 0,2062 Romania - Mobile 0,4647 Romania-Bucharest 0,2091 24 Russia 0,1143 Russia - Mobile 0,0846 Russia-Moscow 0,0844 Russia-St Petersburg 0,0454 Rwanda 0,6400 Samoa American 0,2860 San Marino 0,0819 Saudi Arabia 0,3366 Saudi Arabia - Mobile 0,3239 Saudi Arabia-Jeddah 0,3366 Saudi Arabia-Makkah 0,3366 Saudi Arabia-Riyadh 0,2693 Senegal 0,4026 Senegal - Mobile 0,4026 Serbia 0,9042 Serbia - Mobile 0,9042 Seychelles 0,3562 Sierra Leone 0,6160 Singapore 0,0138 Singapore - Mobile 0,0155 Slovakia 0,4032 Slovakia - Mobile 0,4032 Slovenia 0,4800 Slovenia - Mobile 0,4800 Somalia 0,9759 South Africa 0,0990 South Africa - Mobile 0,3028 South Africa-Cape Town 0,0990 South Africa-Johannesburg 0,0990 South Korea-Fixed 0,0335 South Korea-Mobile 0,2423 Spain 0,0174 Spain - Mobile 0,2963 Spain - Mobile (Amena) 0,3705 Spain-Barcelona 0,0380 Spain-Madrid 0,0376 Sri Lanka 0,2171 Sri Lanka - Mobile 0,2922 St Kitts and Nevis 0,3519 St Pierre and Miquelon 0,5691 St Vincent Grenadines 0,4464 Sudan 0,3867 25 Suriname 0,5140 Suriname - Mobile 0,5140 Swaziland 0,4714 Sweden 0,0162 Sweden - Mobile 0,2922 Sweden - Mobile (Telia) 0,2922 Sweden-Stockhom 0,0162 Switzerland 0,0455 Switzerland - Mobile 0,4120 Syria 0,6522 Syria - Mobile 0,6522 Taiwan 0,0299 Taiwan - Mobile 0,1344 Taiwan-Taipei 0,0299 Tajikistan 0,6840 Tanzania 0,4389 Tanzania - Mobile 0,4389 Tanzania-Dar es Salaam 0,4389 Thailand 0,0671 Thailand - Mobile 0,0671 Thailand-Bangkok 0,0635 Togo 0,5400 Tonga 1,0140 Tunisia 0,5152 Tunisia-Tunis 0,4335 Turkey 0,2661 Turkey - Mobile - Others 0,3466 Turkey - Mobile - Telsim 0,3466 Turkey - Mobile - Turkcell 0,3466 Turkey-Ankara 0,0747 Turkey-Antalya 0,2661 Turkey-Istanbul 0,1582 Turkey-Izmir 0,2472 Uganda 0,2127 Uganda - Mobile 0,2127 Ukraine 0,2008 Ukraine - Mobile 0,3088 Ukraine-Kiev 0,1888 Ukraine-Lviv 0,1888 United Arab Emirates 0,3269 United Arab Emirates - Mobile 0,3302 United Arab Emirates-Dubai 0,3269 26 United Kingdom 0,0150 United Kingdom - Mobile - Hutchison3G 0,2381 United Kingdom - Mobile - O2 0,2381 United Kingdom - Mobile - Orange 0,2381 United Kingdom - Mobile - Others 0,2381 United Kingdom - Mobile - Tmobile 0,2381 United Kingdom - Mobile - Vodafone 0,2381 United Kingdom-London 0,0150 United Kingdom-Shared Cost-0845 0,5100 United Kingdom-Shared Cost-0870 0,5100 Uruguay 0,3606 Uruguay - Mobile 1,1628 USA 0,0153 USA-Alaska 0,0508 USA-Hawaii 0,0443 Uzbekistan 0,1944 Vanuatu 3,0000 Venezuela 0,1716 Venezuela - Mobile 0,5170 Venezuela-Caracas 0,1716 Vietnam 0,3465 Vietnam - Mobile 0,3413 Virgin Islands British 0,2280 Virgin Islands United States 0,1101 Wallis and Futuna 3,4977 Yemen 0,4977 Zambia 0,3192 Zimbabwe 0,5106 Zimbabwe - Mobile 0,5106 - ------------------------------------------------------------------------------- Provider shall be entitled to modify its rates at any time during the term of this Agreement with a thirty (30) day prior notice. Use of the Service after the date of effect of the modification of rates shall be deemed as express acceptation of the increase. In the event of an increase of the rates, Customer shall be entitled to refuse such and shall be entitled to terminate the Agreement provided that it sends a registered letter with acknowledgement of receipt notifying such decision and received at least three (3) working days prior to the date of effect. Such termination shall take effect as of the date of effect of the new rates. 5. HARDWARE INFRASTRUCTURE - -------------------------- 27 Provider will provide Customer with a hardware infrastructure with a capacity of 10.000 users. Hardware infrastructure includes the following servers: - 2 Power Access / Tunnel Server - 1 B2B UA Server (PSTN Termination) - 1 Web Server / Payment Server - 1 Radius Server - 1 Call Forwarding Server 28 EXHIBIT C INVOICING ------------------- This exhibit covers the invoicing for fees payable for the Services. Customer shall be responsible for the billing of the End Customers, based on its own billing information. For the implementation of billing solutions, the contact persons listed in SECTION 15 of the Agreement will be responsible. These contact persons shall handle the billing process and daily operations between the Parties. INVOICING GENERAL Provider shall carry out the collection and processing of billing data for fees, generate invoices for fees and ship such invoices to Customer as set out in this Section. ISSUING AN INVOICE Provider shall prepare a monthly invoice for fees or intermediary invoices in accordance with the provisions of SECTION 10 of the Agreement. In the case of a delay in the delivery of an invoice, Provider shall inform Customer in advance of such a delay and express the foreseen duration of the delay. INVOICE CONTENT AND FORMAT The invoice shall contain the following information: o Originator of the invoice o Receiver of the invoice o Invoice date o Invoice number o Bill period o Customer number o Provider contact person SHIPMENT OF INVOICE Invoices for fees shall be produced and shipped by Provider to Customer as printed-paper. Additionally an electronic form shall be produced and provided to the relevant Customer contact point. In the event there are any discrepancies between the paper and the electronic version, the paper version takes precedence. 29 FIRST PAYMENT IN ADVANCE - ------------------------ At least three (3) working days prior the beginning of the first invoicing period, Customer shall pay Provider with a payment in advance. The amount of such payment shall be equal to the amount due in accordance with the terms of the forecast provided by Customer to Provider in accordance with the provisions of point 3 of Exhibit A to this Agreement. 30 EXHIBIT D END CUSTOMER LICENCE AGREEMENT ---------------------------------------- MINIMUM END USER TERMS AND CONDITIONS The following terms and conditions must be included in any Customer agreement with End Customer to the Service and be made part of all purchase orders, in substantially the form set forth below. Any material deviations must be specifically approved in writing by Provider. Capitalized terms not defined herein shall have the meaning set forth in the Agreement. No End Customer can receive the Service unless it has expressly agreed to these terms and conditions and acknowledged its Agreement to these terms and conditions. 1. End Customer acknowledges and understands that the service is not a traditional telephone service and that Customer, Softphone and/or other related products are not a replacement for End Customer primary telephone service. Important distinctions exist between the traditional telephone service and the service provided by Customer. 2. By entering into this Agreement End Customer acknowledges and agrees that the service is not a replacement for End Customer ordinary telephone and cannot be used for emergency calling. None of Customer's products carry or support, or intend to carry or support emergency calls. 3. If Customer allocate number to End Customer as soon as reasonably possible after the receipt of End Customer request thereto. End Customer acknowledges and understands that the allocation of the number does not constitute any transfer of any property or other rights with regard to the number. 4. Customer is entitled, without any liability to End Customer, to refuse, change or terminate any number at any time. In particular, without limiting the generality of the foregoing, Customer reserves the right to immediately withdraw the number should End Customer not comply with the terms of this Agreement, the instructions given by Customer and/or Provider or the requirements of the relevant national number plan. 6. Customer grants a non-exclusive and non-transferable right to use the Softphone. End Customer will use Softphone only according to the purpose the Softphone is created for (the "contractual use"). This license does not include the right to grant any sub-licenses. 7. The right to use the Softphone is granted subject to a contractual use of the Softphone by End Customer, according to this license agreement; End Customer shall lose any right of use in case of infringing this contract. End Customer is obliged to return all copies and to delete all installations of the Softphone without undue delay in case of a substantial breach on request of Customer. 31 8. The Softphone is restricted for a contractual use. Except to the extend explicitly permitted by mandatory laws (e.g. national laws based on the European Software Directive (91/250) and the Database Directive (96/9)), End Customer may not extract or reutilize substantial parts of the Softphone nor reproduce, copy, modify, adapt, translate, disassemble, de-compile, reverse engineer any portion of the Softphone. It is furthermore strictly forbidden to remove, alter, modify or manipulate in other ways any logos, brands, trademarks, trade names as well as any copyright remarks which are part of the Softphone. 9. End Customer is not entitled to transfer or lease the Softphone in other ways to third parties, nor to grant any sub-licenses. It is furthermore not allowed to grant third parties any right of use based on a rental or a leasing model. 10. This Softphone is provided without any warranty and without any assurance of quality. Customer explicitly does not warrant that the Softphone is free of defects and/or suitable for the use End Customer plans for the Softphone. 11. This license agreement constitutes no claim on bug-fixes, upgrades or updates of the Softphone and its documentation. 12. Customer shall be not liable for any direct or indirect damages, consequential damages and any other kind of damage, arising from the use of the Softphone that may concern the End Customer, its partners, customers or any other third party, whom access to the Softphone or its use was granted. End Customer takes explicitly over such risk of operating the Softphone. 32