| 1. | DEFINITIONS |
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|   | 1.1 | “ACN Marks” means those      trademarks, service marks, trade names and logos of ACN or its affiliates      provided by ACN to Seller for use in accordance with this      Agreement. |
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|   | 1.2 | “ACN Platform” means the      current release of the VoIP applications platform, including all      modifications, updates, upgrades, enhancements and new releases thereto as      provided to Seller by ACN inwriting. |
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|   | 1.3 | “Dollars” means U.S.      Dollars. |
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|   | 1.4 | “Product” means the Video      Phone communication devices, including all equipment hardware, materials,      software and firmware, as described in Exhibit A  hereto. |
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|   | 1.5 | “Services” means the      services as described in Exhibit Ahereto. |
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|   | 1.6 | “Spare Parts” means the      spares or accessories that are provided by Seller to ACN for replacing the      damaged components or spare parts of the  Products. |
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|   | 1.7 | “Technical Documentation”      means the mutually agreed specifications, manuals, installation manuals,      technical reference manuals, drawings, release notes, descriptions, data      and other relevant technical materials of the Product provided in      accordance with this Agreement and its Exhibits relating to the operation,      maintenance, commissioning, testing and inspection of the      Product. |
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| 2. | SCOPE      OF AGREEMENT |
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|   | 2.1. | Scope.  Subject      to the terms of this Agreement, Seller will provide Product, Spare Parts      and Services to ACN pursuant to a written Purchase Order issued and      accepted in accordance with Section 3below. |
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|   | 2.2. | Modifications and      Additions.  Subject to ninety (90) days prior written      notification to ACN, Seller may modify the Product, including software and      firmware therein or add additional products to Exhibit A; provided,      however, that any modified or additional Product must meet the      compatibility requirements under Section 2.5 below and Seller must provide      ACN with new Technical Documentation and a detailed summary that describes      the modifications of any Product, including without limitation, any new      features, upgrades, updates or bug fixes, as applicable.  Upon      notification by Seller to ACN of Product changes, Seller must update or      deliver to ACN up to an aggregate of ten units to ACN’s designated test      facilities in North America and Europe, and ACN must sign-off (which shall      not be unreasonably withheld, conditioned or delayed) as accepting Product      changes prior to Seller shipping any modified units to ACN for resale to      its customers.  Any agreed changes to the Technical      Documentation requested by ACN, including without limitation the      specifications for the Product, will be made pursuant to a mutually agreed      change process as described in ExhibitD. |
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|   | 2.3. | Discontinuance.  Subject      to the Parties' mutual agreement (which shall not be unreasonably      withheld, conditioned or delayed), any Product may be discontinued subject      to Seller's obligations pursuant to Section 2.4  below. |
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|   | 2.4. | Spare      Parts.  Seller shall make Spare Parts for all Products      available to ACN for a minimum of two (2) years after the last shipment of      the applicable Product to ACN.  If ACN requires Spare Parts after      such two-year period, Seller will provide available drawings or purchase      specifications to assist ACN in obtaining the Products from other sources.      The documentation to be supplied will be that documentation as is in      existence at that time. |
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|   | 2.5. | Compatibility.  To      the extent required by the Technical Documentation, Seller shall ensure      that all Product shipped to ACN hereunder, shall be compatible and      interoperate with (a) the then-current version of the ACN Platform, (b)      all similar Products previously purchased by ACN hereunder, and (c) all      other Video Phone equipment purchased by ACN from third      parties.  ACN will notify Seller as soon as practicable of any      planned or actual modification, update, upgrade, enhancement or release to      the ACN Platform.  Seller agrees that it shall add features and      functionality to the Products as may be necessary to ensure continued      compatibility with the ACNPlatform. |
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|   | 2.6. | Printing.  At ACN’s      cost and expense Seller will provide printing services with respect to the      packaging of Products for shipping.  A Purchase Order (as      defined below) will include a description of the printing, including the      relevant languages, to be applied to each of the applicable packaging      items associated with a given Purchase Order, as well as any collateral      inserts or documentation to be added to the shipped    Products. |
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| 3. | PURCHASE      ORDERS |
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|   | 3.1. | Issuance.  Purchases      by ACN will be by individual written purchase orders (“Purchase Order”) via fax      or other electronic means made during the term of this      Agreement. |
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|   | 3.2. | Acceptance.  Purchase      Orders will be deemed accepted upon Seller’s issuance of its initial      invoice related to such Purchase Order (hereinafter referred to as “Initial      Invoice”).  If an Initial Invoice is not issued within      ten (10) days of receipt of a Purchase Order, the Purchase Order will be      deemed rejected; provided, however, that Seller shall not be permitted to      reject any Purchase Order that contains the information necessary for      Seller to process the order and otherwise conforms to the terms and      conditions of this Agreement, including without limitation the required      lead times and advance forecast, provided however that if Seller      reasonably demonstrates that it cannot meet the desired shipping date in      the Purchase Order for reasons not related to Seller’s performance of its      obligations under this Agreement, it can within five (5) business days of      receiving the Purchase Order, notify ACN of a recommended commercially      reasonable shipping date.  If the parties cannot agree on a      shipping date within an additional five (5) business days after the      request for an alternate shipping date, ACN may terminate the Purchase      Order without any prejudice orliability. |
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|   | 3.3. | Initial      Order.  The first Purchase Order for twenty-five thousand      (25,000) pieces of Product, which shall be non-cancelable (hereinafter      refer to as “Initial      Order”), is to be issued as soon as practicable after Seller      provides a demonstration of working Product to  Buyer. |
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|   | 3.4. | Commitment.  Subject      to a mutual agreement between Seller and ACN as to the Technical      Documentation requirements as defined in Section 1.7, and further subject      to the ability of Seller to supply a Video Phone meeting the mutually      agreed Technical Documentation and the Technical Support requirements as      set forth in Exhibit C, ACN agrees that within twenty-four (24) months of      the Effective Date, ACN will purchase from Seller 300,000 units of      Product, subject to all the terms and conditions of this      Agreement. |
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|   | 3.5. | Delivery      Schedule.  Each Purchase Order, subject to the conditions      set forth in Article 6 below, shall set forth the desired delivery      schedule for each Product.  ACN shall be entitled to a per unit      credit of $15.00, solely for those units not shipped (unless previously      shipped), to the extent the Purchase Order amount materially differs from      the amount actually shipped within the time frames set forth in the      desired delivery schedule as set forth in the accepted Purchase Order,      including any modification thereof pursuant to Section 3.2      above. |
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| 4. | PAYMENT      AND INVOICE |
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|   | 4.1. | Price. |
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|   | 4.1.1. | The      Parties intend that the price to ACN for the Products will be Seller’s      cost of producing and supplying the Product (including by way of example      and not limitation, freight, handling, insurance and overhead) (“Seller’s Costs”) plus a      forty ($40) dollar markup.  On a quarterly basis, Seller will      provide ACN with full documentation of these costs.  Any changes      to Seller’s Costs at any time will apply upon the effective date of such      cost change, and will apply to all new Purchase Orders accepted thereafter      by Seller. |
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|   | 4.1.2. | Prices      are exclusive of any sales, use, property, and like taxes, as well as any      duties and tariffs. Any such tax, duty, tariff Seller may be required to      collect or pay upon the sale or delivery of the Products, other than taxes      based on Seller’s income, shall be promptly reimbursed by ACN upon Seller      providing appropriate documentation.  Applicable taxes, duties      and tariffs shall be billed as a separate item on the    invoice. |
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|   | 4.2. | Invoicing.  Seller      shall separately invoice ACN for Products ordered under each Purchase      Order.  Seller shall invoice ACN ten percent (10%) of the total      price of the Products set forth in a Purchase Order upon acceptance of the      Purchase Order by Seller, which invoice shall be due within thirty (30)      days after receipt of such invoice by ACN.  Upon delivery of      Products to ACN, Seller shall invoice ACN for the remaining amounts due      under the Purchase Order, which shall be paid as follows: (a) forty      percent (40%) shall be due within five (5) days upon written confirmation      of product shipment from Seller’s manufacturing facility and (b) the      remaining fifty percent (50%) shall be due within the earlier of (i)      thirty (30) days after receipt of product at ACN’s fulfillment facility,      or (ii) forty-five (45) days after product  shipment. |
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|   | 4.3. | Payment      Terms. |
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|   | 4.3.1. | ACN      shall make payments for Products purchased under this Agreement in Dollars      by wire transfer. |
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|   | 4.3.2. | The      bank information for Seller is listed as  following: |
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|   | 4.4. | Disputed      Charges.  If Seller submits an invoice which ACN      reasonably and in good faith believes is incorrect or it can be shown that      the charges do not correspond to a Purchase Order, then ACN will pay any      undisputed amounts in accordance with the Agreement and notify Seller in      writing of the dispute.  While the Parties are working together      to determine the correct amount to be invoiced, ACN will not be deemed to      be in breach of this Agreement for nonpayment.  Seller shall      provide ACN reasonable supporting documentation regarding any disputed      invoice or claim amount. |
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|   | 4.5. | ACN’s      Representations. ACN hereby represents to Seller that it has      financial ability to pay for Products ordered from Seller, is able to pay      its debts in the ordinary course of business as they become due, and is      not insolvent within the meaning of applicable bankruptcy      law.  ACN shall provide any creditability information and      documentation as reasonably requested by Seller.  ACN agrees and      undertakes to notify Seller within thirty (30) days in the event that the      foregoing representations become untrue or inaccurate.  ACN      agrees that Seller may reasonably rely on the representations contained in      this Section in selling Products to ACN, that these representations are a      material inducement to Seller for selling Products and any extension of      credit, and that it is ACN’s intent that Seller shall so    rely. |
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| 5. | LEAD      TIMES; CHANGES, RESCHEDULING AND CANCELLATIONS;  RETURNS |
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|   | 5.1. | Lead      Time.  The initial product and parts lead time is one      hundred fifty (150) days for the current Product.  Within the      first ninety (90) days following the first delivery of Product to ACN, and      within each thirty (30) days thereafter, ACN and Seller will meet to      discuss the shortening of lead time changes, and Seller will make all      reasonable efforts to shorten such lead time, until lead time becomes      ninety (90) days. |
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|   | 5.2. | Reduced Lead      Time.  Notwithstanding the above, Seller will, on      request, make reasonable efforts to shorten the lead time for demand      exceeding the forecast quantities. |
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|   | 5.3. | Rescheduling, Changes,      Cancellations.  ACN may reschedule (no more than once per      line item) or cancel the applicable part of an accepted order only in      accordance with the following: (i) if, for reason other than an event of      force majeure or the actions or omissions of ACN or its agents, a delay in      the scheduled shipping date for the products ordered exceeds or will      exceed thirty (30) days, or (ii) upon ACN’s written notice to Seller,      received by Seller prior to the originally scheduled shipment date by a      period greater than the current lead time for the product plus thirty      days.  Any rescheduling which results in a delay in shipment by      more than ninety days from the originally requested shipment date may, at      Seller’s option, be deemed a cancellation by ACN.  Any      cancellation or rescheduling of an accepted Purchase Order by ACN other      than as expressly authorized above (other than for Seller’s default) shall      be subject to the payment of an equitable cancellation charge including,      without limitation, any unearned pricing adjustment and uniquely incurred      costs for such order.  Such cancellation charge shall be      determined based upon the work completed and commitments incurred in good      faith prior to such cancellation and Seller’s current price to ACN for the      applicable products.  At ACN’s request and at least fifteen (15)      business days prior to payment of any cancellation charge, Seller will      document all amounts it reasonably believes should be incorporated into      any cancellation charge.  If ACN reasonably disputes the      cancellation charge amounts, the parties will utilize the remedy available      in Section 23.8.1 hereof.  Upon receipt of notice of such      termination, Seller will use commercially reasonable efforts to terminate      work in progress and/or to divert such products to other      customers.  In no event shall such cancellation or rescheduling      charge exceed the full contract price for the products so canceled or      rescheduled by ACN.  ACN shall be entitled to receive any      Products to the extent payment in full has been made to Seller for the      same. |
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| 6. | PRODUCT      FORECASTS |
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| 7. | ACCEPTANCE      AND DELIVERY OF PRODUCT AND SPAREPARTS |
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|   | 7.1. | Any      Product and Spare Parts shall be deemed to have been delivered in      conformity with the applicable Purchase Order unless ACN gives written      notice to the Seller within ten business days after the date of ACN’s      receipt of such Products and/or Spare Parts at ACN’s fulfillment      facility.  ACN shall notify Seller in writing with respect to      any non-conformity of the Products and/or Spare Parts with the Purchase      Order and these terms and conditions, setting forth in detail the nature      and scope of any such non-conformity.  Such inspection or      acceptance shall not, however, be deemed a waiver of any non-conformity      which could not reasonably be ascertained by an inspection conducted in      accordance with good commercial practices.  Absent timely      receipt of such notification by Seller, such Products shall be deemed      accepted by ACN.  Any determination of non-conformity hereunder      shall be subject to verification by Seller.  Non-conforming      Products which have been duly rejected in accordance herewith may be      returned by ACN for repair, replacement or credit as set forth      below. |
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|   | 7.2. | Seller      shall be responsible for any and all government mandated export and import      requirements needed to deliver products to ACN’s fulfillment facilities,      with the cost of such compliance being included within the Seller’s      Costs. |
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| 8. | SHIPPING      AND RISK OF LOSS |
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|   | 8.1. | All      Products and Spare Parts shall be shipped FOB Origin at Seller's site in      [   ]. |
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|   | 8.2. | Seller      shall be responsible for arranging all freight, handling and insurance      prior to delivery to ACN’s fulfillment facility.  Actual costs      of shipping (including by way of example and not limitation, the freight,      handling and insurance) will be borne by ACN with payment terms for      shipping and related costs due upon receipt of invoice and supporting      documentation from Seller. Seller will package the Products in accordance      with ACN’s standard fulfillment guidelines as provided to Seller. All      shipments shall be made on wooden pallets treated for entry into the USA,      Canada and all EU countries. |
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|   | 8.3. | If      ACN desires to replace Seller as the shipping party or designate the      method of shipment on each individual Purchase Order issued under this      Agreement and/or arrange for shipment by other than the designated method,      ACN shall pay any additional reasonable documented expense arising from      such designation. |
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| 9. | LICENSE      GRANT |
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| 10. | BRANDING |
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|  | 10.1. | Branding.  ACN      shall provide to Seller the content, language, logos (including size and      location thereof), and design of all packaging, end user documentation,      welcome kits and any other materials included with the Products for      distribution by ACN hereunder.  The Seller agrees that the ACN      Marks shall be used on all Products.  In addition, ACN provided      "wallpaper" shall be loaded and used on all Products, where applicable and      reasonably possible. |
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|  | 10.2. | Welcome      Kit.  If applicable, ACN may modify welcome kits and      other materials included with the Products for distribution at ACN’s cost      and expenses, and upon sixty (60) days prior written notice to      Seller. |
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|  | 10.3. | Seller’s      products and services are identified by means of certain trade names,      trade dress, service marks, trademarks, logos, and other indicia of      origin, including, but not limited to, the mark "Ojo" and such indicia of      origin as are now, or may hereafter, be designated by Ojo for use in      connection therewith (collectively referred to as Seller’s "Proprietary      Marks").  Seller continues to develop, use, and control      the use of such Proprietary Marks in order to identify for the public the      source of services and products marketed thereunder and to represent the      high standards of quality and performance of such products and      services.  ACN may use and promote Seller’s Proprietary      Marks.  In the event that ACN does use and promote Seller’s      Proprietary Marks, all use of Seller’s Proprietary Marks shall be on a      non-exclusive basis, shall be in accordance with Seller’s current      guidelines and directions, and shall be used for the sole purpose of      promoting the Ojo video phone products and services.  Any use of      Seller’s Proprietary Marks shall always clearly indicate that the same is      the property of Seller or a Seller affiliated company, as the case may be,      and as directed by Seller.  It is acknowledged and agreed that      Seller may at any time object to a specific use or application of any of      Seller’s Proprietary Marks, in which event such use or application will      promptly cease.  In no event shall Seller’s Proprietary Marks or      any similar words, names symbols or marks be (i) used as part of any      business name, or on a letterhead or business card, except as may be      approved by Seller in writing; (ii) attached to any other name or mark; or      (iii) added to, obliterated, defaced, modified or removed from the Seller      video phone products, documentation or the packaging      thereof.  All materials using Seller’s Proprietary Marks that      are generated other than by Seller shall require the prior written      (including electronic) approval of Seller.  Except as may be      expressly agreed in writing by Seller, all use of Seller’s Proprietary      Marks shall cease immediately upon the expiration or termination of the      agreement in which these terms and conditions are      incorporated. |
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|  | 10.4. | Trademark      License.  Subject to the terms and conditions of this      Agreement, ACN hereby grants Seller a non-transferable, non-exclusive,      limited license to use the ACN Marks in the format provided by ACN solely      on Products and related documentation which are ordered by ACN pursuant to      a Purchase Order solely in relation to performing its obligations under      this Agreement.  Seller will comply with conditions reasonably      set forth in writing from time to time by ACN with respect to the style,      appearance and manner of use of the ACN Marks.  Any use of the      ACN Marks not specifically provided for by such conditions shall be      adopted by Seller only upon prior written approval by      ACN.  Seller hereby acknowledges ACN's ownership of the ACN      Marks and agrees that it will not contest such      ownership.  Seller also agrees that any and all rights that may      be acquired by the use of the ACN Marks by Seller shall inure to the sole      benefit of ACN.  ACN agrees that to the extent Seller has      manufactured Products bearing the ACN Marks in accordance with the terms      and conditions of this Agreement, such Products will not be generally      sellable other than to ACN, and in the event of any cancellation of a      Purchase Order not authorized by this Agreement or a termination of this      Agreement other than for Seller’s breach hereof, ACN will be liable for      payment of the full purchase price for such Products as well as any goods      in process not being purchased by ACNhereunder. |
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| 11. | WARRANTY |
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|  | 11.1. | All      Products and Spare Parts purchased under this Agreement are warranted by      Seller (i) for units of Product shipped for use in the US, for a period of      fifteen (15) months from receipt by ACN or twelve (12) months from the      date of purchase by an ACN end user customer, whichever is longer, and      (ii) for units of Product shipped for use in the EU, for a period of      twenty-four (24) months from the date of purchase by an end-user customer      (the “Warranty      Period”).  This warranty is that the Product will conform      to the generally applicable product specification issued by Seller in      writing and expressly identified as the product specification, (ii) and      that the hardware components of the Products and the media upon which any      software components are delivered, will be free from defects in      workmanship and materials at the time of delivery .  This      warranty is provided solely to ACN as a reseller of the products      hereunder, and to no other person or entity, whether by way of assignment      or otherwise.  Seller’s warranty to ACN shall not be enlarged,      diminished or affected by, and no obligation or liability shall arise or      grow out of, the rendering of technical advice or service to ACN in      connection herewith.  Seller’s warranty shall apply only to      Products which are found to have been defective within the Warranty      Period, provided Seller is so notified in writing of any such defects, and      the defective Product is returned to a Seller authorized service center,      including ACN’s third party logistics support vendors who have been      approved by Seller, in accordance with the procedures set forth herein, no      later than thirty (30) days after the expiration of the Warranty      Period.  Products repaired or replaced under warranty are      warranted for the greater of one hundred twenty (120) days from the      receipt thereof by ACN or for the unexpired term of the original      warranty. |
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|  | 11.2. | The      above warranty shall not apply to any defects or deficiency arising      from: |
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|   | 11.2.1. | Any      interference with Products which is not as a result of normal usage (for      instance, but not limited to, by not following the instructions given in      the user’s manual); |
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|   | 11.2.2. | Any      modification made to the Products by ACN or other third party not duly      authorized by Seller; |
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|   | 11.2.3. | Any      ACN provided, consigned, or designated hardware, software, and/or service,      which are incorporated or adopted in the Products and are not authorized      or approved for use with the Products bySeller; |
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|   | 11.2.4. | Any      operation or use of any of the Products in combination with other      hardware, software or system not furnished or authorized by      Seller; |
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|   | 11.2.5. | Any      accident or deterioration or as a result of the occurrence of an event      such as damage by water, fire, explosion, or  lightning; |
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|   | 11.2.6. | Any      malfunctions resulting from negligent operation or unfit operating      environment; or |
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|   | 11.2.7. | Any      malicious act or intentional damage committed by any person      whatsoever. |
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|  | 11.3. | Prior      to the return of any defective Products to Seller, ACN shall request from      Seller a return material authorization ("RMA"), which RMA shall      not be unreasonably withheld by Seller.  Products returned      without an RMA will be refused and returned freight collect to the      sender.  Upon the receipt of such RMA, ACN shall, at its risk      and expense, securely pack and return such defective Products as have been      furnished by Seller hereunder, to Seller at Seller's designated return      facility as set forth in the RMA.  Such products shall be      clearly labeled with the RMA number.  Subject to the above      conditions and limitations, and provided that ACN has rightfully and      timely, either rejected Products, rightfully revoked a prior acceptance or      claimed a breach of the aforesaid warranty in accordance with the terms      hereof, and duly notified Seller and returned the defective Product,      Seller shall, without charge to ACN, at Seller's option, repair or replace      (or make arrangements therefor) any such defective Products, and return      the repaired or replaced Products to the applicable ACN facility, or      provide ACN with a credit for the same.  In such event Seller      shall also provide ACN with a credit for the standard shipping charges for      originally returning the applicable defective Product to      Seller.  For purposes hereof used Product can be replaced with      refurbished product, with such refurbished Product covered under the same      Warranty Period as the original purchase.  Any expedited or      other non-standard shipping or handling will be at ACN’s      expense.  In the event of an improper or untimely rejection,      revocation, return, or in the event of a defect not covered by the above      warranty, ACN shall pay for all labor, materials and third party charges      involved in the shipping, receipt, handling, testing, storage and return      or restocking, as well as the requested remediation of any defect not      covered by the aforesaid, at the then current rates of      Seller.  At ACN’s request and at least fifteen (15) business      days prior to payment of any such return charges, Seller will document all      amounts it reasonably believes should be incorporated into any such return      charge.  If ACN reasonably disputes the return charge amounts,      the parties will utilize the remedy available in Section 23.8.1      hereof. |
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|  | 11.4. | THE      LIABILITY OF SELLER, IF ANY, FOR DAMAGES RELATING TO ANY ALLEGEDLY      DEFECTIVE PRODUCTS, UNDER ANY LEGAL OR EQUITABLE THEORY, SHALL BE LIMITED      TO, IN SELLER'S DISCRETION, THE REPAIR OR REPLACEMENT OF THE PRODUCTS OR      THE REFUND OF THE ACTUAL PRICE PAID (TAKING INTO ACCOUNT ANY DISCOUNTS,      REBATES AND THE LIKE WHICH MAY LOWER THE PRICE) TO SELLER BY ACN FOR SUCH      PRODUCTS. |
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|  | 11.5. | In      the event of an epidemic failure, which, for purposes of this Agreement,      will mean a failure covered by the above warranty which is due to the same      cause, and which occurs in more than 10% of the Products (and at least      fifty units) in any given delivery, Seller shall use all reasonable      efforts to correct the cause(s) of such failure at Seller’s sole expense.      If Seller cannot correct the problem in a reasonable amount of time, ACN      has the right to cancel all pending Purchase Orders affected, or      reasonably like to be affected, by such defect without      penalty. |
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|  | 11.6. | EXCEPT      AS PROVIDED IN SECTION 11.7 BELOW, THE FOREGOING WARRANTY IS EXCLUSIVE AND      IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT      LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR      PURPOSE. SELLER SHALL HAVE NO RESPONSIBILITY FOR ANY PARTICULAR      APPLICATION FOR ANY PRODUCTS. |
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|   | 11.7. |
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| 12. | INDEMNITY |
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|  | 12.1. | Seller      agrees to indemnify, defend and hold ACN harmless from and against any      third party claim, suit or proceeding involving ACN to the extent that      such claim, suit or proceeding is based on a claim related to Seller’s      obligations under Section 11.7, provided that Seller is notified promptly      in writing and given complete authority, information and assistance      required for defense of same.  Seller, however, shall not be      responsible for any settlement made by ACN without Seller's prior written      consent. |
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|  | 12.2. | Seller      agrees to indemnify, defend and hold ACN harmless from and against any      third part claim asserted against ACN, arising from the direct      infringement by the Products sold by Seller to ACN hereunder, of a valid      United States patent.  The aforesaid notwithstanding, in no      event shall Seller be liable for any of the following exclusions: (i)      infringement by any products, components, materials, or goods not supplied      by Seller hereunder, or arising from a combination with, an addition to,      or modification of the products after delivery by Seller, (ii) the use of      the Products as part of a process or method involving steps, devices,      agents or intermediary not fully contained or performed within the      product, (iii) any products manufactured to the purchasing party’s      specification, (iv) sales after the purchasing party hereunder has been      advised to cease sales, or (v) for royalties payable with respect to the      use of such infringing products, or revenues derived by the purchasing      party there from, or for any royalty basis other than as solely upon the      purchase price of the infringing product from Seller.  Seller      shall not be obligated to defend or be liable for costs and damages      arising out of or related to the above exclusions and a comparable      indemnity as that set forth above is hereby extended by the purchasing      party to Seller if any suit or proceeding brought against Seller to the      extent it is based upon any of the above exclusions and/or claims arising      therefrom.  In the event any Product furnished hereunder is, in      Seller's opinion, likely to or does become the subject of a claim of      infringement, Seller may, at its option and expense, procure for ACN the      right to continue using the Product, replace same with a non-infringing      Product of substantially similar capability, or modify the Product so it      becomes non-infringing (but has substantially similar capability). In the      event none of the foregoing alternatives is commercially reasonable, and      provided that there is a bona fide claim of infringement, in order to      minimize its liabilities hereunder, Seller may terminate this Agreement      and the obligation to sell Product to ACN hereunder by written notice to      ACN; provided however, that notwithstanding such termination, (i) the      indemnity provided in Section 12.2 hereof shall still apply and remain in      full force and effect, and (ii) Seller shall promptly repurchase from ACN      at full cost, all units of Product purchased by ACN under this Agreement      and not yet resold by ACN and ACN will promptly return same per the prior      written instructions of Seller, which shall not be unreasonably      withheld. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 12.3. | THE      FOREGOING STATES THE SOLE AND EXCLUSIVE LIABILITY OF SELLER HERETO FOR      INFRINGEMENT OR THE LIKE, OF ANY PATENTS, TRADEMARKS, COPYRIGHTS, AND      OTHER PROPRIETARY RIGHTS, WHETHER DIRECT OR CONTRIBUTORY, AND IS IN LIEU      OF ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY IN REGARD THERETO,      INCLUDING, WITHOUT LIMITATION, THE WARRANTY AGAINST INFRINGEMENT IN THE      UNIFORM COMMERCIAL CODE. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | TERM      AND TERMINATION |
|-----|---------------------------|

|  | 13.1. | This      Agreement shall commence on the Effective Date and, unless earlier      terminated, shall continue for a period of two (2) years thereafter and      shall be automatically renewed for additional one (1) year terms unless      either Party terminates this Agreement by written notice to the other      Party at least two (2) months before the expiration of the original term      or any such extended term of thisAgreement. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.2. | This      Agreement may be terminated asfollows: |
|--|-------|--------------------------------------------------|

|   | 13.2.1. | By      either Party at any time, if the other Party materially defaults in      performing any provision of this Agreement. The defaulting Party shall      have a period of thirty (30) days from the date of receipt of written      notice from the non-defaulting Party describing the default within which      to remedy the default. The termination shall become effective at the end      of the thirty (30) day period if the defaulting Party has failed to remedy      the default. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2.2. | If      either Party (i) admits in writing its inability to pay its debts      generally as they become due, or (ii) makes an assignment for the benefit      of its creditors, or (iii) institutes or consents to the filing of a      petition in bankruptcy, whether for reorganization or liquidation, under      federal or similar applicable state laws, or (iv) is adjudged bankrupt or      insolvent by a court having jurisdiction, then in either of such events,      the other Party may, by written notice, immediately terminate this      Agreement. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.3. | ACN's      obligation to pay for all Products purchased by it hereunder (and not      cancellable in accordance herewith) and the license granted in Article 10      above shall survive termination or expiration of this Agreement. In the      event that Seller terminates the Agreement for default, Seller will honor      any Purchase Orders received prior to the effective date of such      termination. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | LIMITATION      OF LIABILITY |
|-----|------------------------------|

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| 15. | TRAINING |
|-----|----------|

| 16. | TECHNICAL      SUPPORT |
|-----|------------------------|

| 17. | PRODUCT      LINE EVOLUTION |
|-----|-----------------------------|

| 18. | FORCE      MAJEURE |
|-----|--------------------|

| 19. | REGULATORY LAWS AND      STANDARDS. |
|-----|-------------------------------------|

| 20. | EXPORT      RESTRICTIONS |
|-----|--------------------------|

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| 21. | CONFIDENTIALITY |
|-----|-----------------|

| 22. | REPRESENTATIVES |
|-----|-----------------|

|  | 22.1. | Each      Party shall designate the following representatives (which may be revised      from time to time by providing notice to the other Party) to be      responsible for technical issues that arise in connection with this      Agreement: |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ACN’s      Technical Representative | Seller’s      Technical Representative |
|-------------------------------------------|----------------------------------------------|
| Primary:                                  | Primary:                                     |
| Back-Up:                                  | Back-up:                                     |

|  | 22.2. | Each      Party shall designate the following representative (which may be revised      from time to time by providing notice to the other Party) to be      responsible for business issues that arise in connection with this      Agreement. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ACN’s      Business Representative | Seller’s      Business Representative |
|------------------------------------------|---------------------------------------------|
| Primary:                                 | Primary:                                    |
| Back-Up:                                 | Back-up:                                    |

| 23. | GENERAL      PROVISIONS |
|-----|-------------------------|

|  | 23.1. | Notices.  All      notices required to be given hereunder shall be in writing and shall be      considered received (a) on the day of actual transmittal when transmitted      by facsimile or email with written confirmation of such transmittal, (b)      on the next business day following actual transmittal when transmitted by      a nationally recognized overnight courier, or (c) on the third business      day following actual transmittal when transmitted by registered or      certified mail, return receipt requested, postage prepaid, in each case      when transmitted to a Party at the address shown below, or at such other      addresses as that Party may, from time to time, advise in writing in      accordance with this Section. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.2. | Assignment.  Neither      Party shall have the right to assign, transfer or sublicense its rights or      obligations under this Agreement without the prior written consent of the      other Party, except that either Party may assign its rights and      obligations under this Agreement without the other Party's approval to the      extent such assignment is limited to a change in corporate form of such      Party only. Any prohibited assignment shall be null and      void.  The parties acknowledge and agree that nothing in this      section 23.2 shall limit ACN’s ability to finance the purchase of      Products, including the execution of required documentation creating a      security interest in such purchasedProducts. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 23.3. | Relationship.  ACN      shall conduct its business in its own legal name and at its own expense      and risk, and shall be responsible, as an independent contractor, for (i)      paying all taxes, levies, tariffs, duties, fees and other charges imposed      by the applicable governmental authorities in connection with ACN’s      activities hereunder, (ii) securing and maintaining all required      approvals, registrations, permits and licenses, and (iii) otherwise      complying with all laws and regulations governing the conduct of its      business.  ACN and Seller are independent contractors, and as      such, shall not act or represent themselves, directly or by implication,      as an agent for the other or assume or create any obligation on behalf of      or in the name of the other, or otherwise bind the other in any      manner.  Nothing herein shall be deemed to create an agency,      partnership, franchise or joint venture between the    parties. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.4. | Waiver.  The      failure of either Party to enforce at any time the terms, conditions,      requirements, or any other provisions of this Agreement shall not be      construed as a waiver by suchParty. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.5. | Headings.  The      headings of paragraphs contained herein are for convenience and reference      only and are not a part of this Agreement, nor shall they in any way      affect the interpretation thereof. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.6. | Severability.  The      Parties agree that if any portion of this Agreement shall be held illegal      and/or unenforceable, the remaining portions of this Agreement shall      continue to be binding and enforceable provided that the efficacy of the      remaining portion of this Agreement would not defeat the overall business      intent of the Parties, or give one Party any substantial financial benefit      to the detriment of the otherParty. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.7. | Governing      Law.  This Agreement, its Exhibits and each Purchase      Order shall be governed by the laws of the State of New York, excluding      its conflicts of law rules. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.8. | Dispute      Resolution |
|--|-------|-------------------------|

|   | 23.8.1. | Informal Dispute      Resolution. |
|--------|---------|-----------------------------------|

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|  | 23.8.2  | Arbitration. |
|--|--------------|--------------|

|  | 23.9. | Entire      Agreement.  This Agreement constitutes the entire      Agreement between the Parties and supersedes all prior discussion, either      oral or in writing. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.10. | Amendment.  The      terms and conditions of this Agreement will prevail notwithstanding any      variance with the terms and conditions of any order.  Except as      expressly set forth in this Agreement, this Agreement shall not be deemed,      or construed to be, modified, amended, rescinded, or canceled in whole or      in part, except by written amendment executed by the Parties      hereto. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 23.11. | Survival.  Provisions      of this Agreement relating to confidentiality, license, branding,      warranty, indemnity, limit of liability, export, assignment, governing      law, dispute resolution, and survival shall survive the termination or      expiration of this Agreement. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 23.12. | Incorporation.  All      Exhibits attached hereto are incorporated herein by this      reference. |
|--|--------|-------------------------------------------------------------------------------------------------------------|

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| ACN      Digital Phone Service, LLC |   | Ojo      Video Phones LLC                                               |
|-------------------------------------|--------|-------------------------------------------------------------------------|
|                                |   |                                                                    |
| /s/ Dave Stevanovski                |   |         /s/      Harold M. Krisbergh |
| (Signature)                         |   | (Signature)                                                             |
|                                |   |                                                                    |
| Dave Stevanovski                    |   | Harold M. Krisbergh                                                     |
| (Typed/Printed      Name)           |   |        (Typed/Printed Name)                                        |
|                                |   |                                                                    |
| President                           |   |                                                                    |
| (Title)                             |   | (Title)                                                                 |

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