Document:

Exhibit 10.7

    

       

      CARRIER
        SERVICES AGREEMENT

       

      This
        CARRIER SERVICES AGREEMENT is made and entered into this day of
        October, 2004 (the "Effective Date"), by and between XO
        Communications,
        Inc., a
        Delaware corporation, on behalf of its operating Affiliates (as defined below)
        (such Affiliates hereinafter collectively referred to as "XO"), whose
principal
        place of business is located at 1 1 1 11 Sunset Hills Road, Reston,
        VA 20190
        and United
        American Corporation, a
        Nevada
        corporation (hereinafter referred
        to as "Customer"), whose place of business is located at 3199 E.
        Warm
        Springs
        Road, Suite 200, Las Vegas, NV 89120. Customer and XO are collectively referred
        to herein as the "Parties."

      

      Preliminary
        Statement

      

      Customer
        and XO hereby enter into this Agreement to enable Customer to obtain
        telecommunications services from XO pursuant to Section 211(a) of the
Communications
        Act of 1934, as amended. The Services will be offered in each area
        to
        the Customer by an entity ("Authorized Entity"), which is an Affiliate
        of XO.
        The
        terms and conditions of this Agreement are, and shall be, applicable
        to
        the
        Services provided to the Customer by each Authorized Entity.

      

      NOW, THEREFORE,
        in
        consideration of the mutual promises and covenants
        herein
        contained, the Parties hereby mutually agree as follows:

      

      ARTICLE
        1-
        DEFINITIONS/SERVICE OFFERINGS

      

      1.1
        The
        capitalized terms used in this Agreement shall have their normal or common
        meaning, the meaning given them in the Tariffs, or the meaning as defined
        in the text hereof, except that the following terms shall have the
        following
        meanings
        for the purpose of this Agreement:

      

      (a)  Acceptance
        or Accepted.
        Customer
        will be deemed to have given its "Acceptance" or to have "Accepted" a Circuit
        after the applicable test and acceptance
        procedures have been conducted which are set forth in the applicable Service
        Exhibit applicable to the Circuit ordered. Billing for a Circuit will
        begin on
        the
        requested Start of Service Date unless the Circuit has not met all
        applicable
        standards or the requested Start of Service Date has been changed by XO.
        If a
Circuit
        has failed the testing process, billing will begin after the Circuit has
        passed applicable
        Circuit standards. If Customer fails to permit XO to begin testing on
        a Circuit
        within five (5) days of the requested Start of Service Date, billing will
        still begin
        on
        the requested Start of Service Date. if XO has tested a Circuit
        pursuant
        to the
        procedures set forth in the applicable Exhibit, such Circuit meets the
requirements
        set forth therein and Customer refuses to accept the Circuit,
        billing
        for that
        Circuit will still begin on the requested Start of Service Date for that
        Circuit.
        This definition is applicable only to certain Services as further
        provided
        in the
        applicable Service Exhibit.

      

      (b)  Access
        Service Request (ASR). "Access
        Service Request" or "ASR" shall mean the capacity order for certain Services
        which delineates the type
        of
        Service, quantity of Circuits, location served, Point of Termination, protocols,
        Circuit
        term, requested Start of Service Date and other information necessary
        for
        XO to
        provide Service to the Customer.

      

      (c)  Affiliate.
        "Affiliate" shall mean, with respect to either Party, any other
        party which controls, is controlled by, or is under common control with
        such Party.
        For purposes hereof, the term "control" means the possession, directly
        or indirectly,
        of the power to direct or cause the direction of the management and policies
        of any such party whether through the ownership of voting securities,
        by
        contract, or otherwise.

      

      (d)  Agreement.
        "Agreement" shall mean this Carrier Services Agreement, including any schedules,
        appendices, Exhibits, Tariffs, and documents attached hereto and made a part
        hereof, or incorporated herein by reference as well as any written amendments
        to
        this Agreement which have been signed by the authorized representatives of
        the
        Parties,.

      

      (e)  Circuit.
        "Circuit" shall mean an individual telecommunications facility included as
        part
        of a Service.

       

      (f)  Emergency
        Maintenance.
        "Emergency Maintenance" shall mean maintenance
        which, if not accomplished promptly by XO, could result in a serious
        degradation or loss of Service to the Customer or the End User or damage
        to XO's
        Network or its customers.

      

      (g)  End
        User.
        "End
        User" shall mean a user to whom Customer will provide
        telecommunications services utilizing, in part, the Services provided
        by
        XO to
        Customer under this Agreement.

      

      (h)  Exhibit.
        "Exhibit" shall mean an attachment to this Agreement for a particular
        Service, including any schedules or attachments thereto, which
        contains
        the
        product description, pricing, and terms and conditions associated with that
        specific Service.

      

      (i)  Network.
        "Network" shall mean the telecommunications network of one of the Parties,
        as
        the context of the provision requires or as contemplated under this
        Agreement

      

      (j)  Off
        Net
        Services.
        "Off-Net
        Services" are those where one or both locations
        to be connected are not served by XO's Network and therefore a
        portion
        of the
        Services is provided by another service provider. Where XO is able to
provide
        Off-Net Services, the terms, conditions and pricing of such Service
        will
        be
        provided on an individual case basis ("ICB") subject to the terms and conditions
        of the underlying service provider. XO shall invoice Customer for Off-Net
        Services rendered and shall manage ordering pursuant to the
        applicable Exhibit,
        but XO shall not be liable for any failures on the part of the
        underlying
        service
        provider.

      

      (k)  On-Net
        Services.
        "On-Net
        Services" shall mean those Services which
        connect two (2) locations served by XO's Network, On-Net Services
        are
        provided
        entirely by XO.

      

      (1)
        Planned
        Service
        Outage.
        "Planned
        Service Outage" shall mean any Service Outage caused by scheduled maintenance
        or
        planned enhancements or upgrades to the XO Network as described in the
        applicable Service exhibits.

      

      (m)  Point
        of Presence (POP).
        "Point
        of Presence" or "POP" shall mean a specific location within a Local Access
        Transport Area (LATA) where service terminates and/or originates.

      

      (n)  Point
        of Termination. "Point
        of
        Termination" shall mean the point at which XO's responsibility to provide
        equipment and service ends and where Customer's or Customer's End User's
        responsibilities begin, identified as the interface
        between XO and Customer at Customer's Point of Presence, the local
        exchange
        carrier's central office, a long-distance carrier's Point of Presence or
        End-User sites identified on the ASR.

      

      (o)  Premises.
        "Premises" shall mean the address to which Service is provided
        or delivered, identified as a Point of Termination or Service Location
        on
        the
        Service Order.

      

      (p)  Service.
        "Service" shall mean XO-provided telecommunications service
        or collocation license, as further described in the applicable Exhibit and
        as
        specifically identified on the Service Order.

      

      (q)  Service
        Order.
        "Service
        Order" shall mean an ASR or other applicable
        service ordering form or Collocation Schedule (as defined in the
        Telco
        Collocation Exhibit attached hereto if applicable) provided by XO and entered
        into by the Parties pursuant to this Agreement.

      

      (r)  Service
        Outage.
        "Service
        Outage" shall mean a disruption or degradation of On-Net Service as set forth
        in
        the applicable Exhibit.

      

      (s)  Start
        of Service Date.
        The
        "Start of Service Date" for a Service shall be
        the
        later of (i) the date requested by Customer for in-service as indicated on
        the Service
        Order, (ii) the date XO notifies Customer that the Service is installed
        or

      
         

        XO
          CONFIDENTIAL

         

        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      CARRIER
        SERVICES AGREEMENT

       

      connected,
        successfully tested and available for Customer use, or (iii) the
        date
        after
        Circuit testing and Acceptance has been completed per this Agreement where
        applicable, regardless of whether or not Customer uses the Service. Notwithstanding
        the above, the Start of Service Date shall never be later than the
        date
        Customer begins to use the Service.

      

      (t)
        Tariffs.
        "Tariffs" shall refer to XO's applicable tariffs for intrastate and
        local
        services. This Agreement incorporates by reference the terms of each
        such
        Tariff to the extent Customer uses tariffed Services provided by XO XO may
        modify its Tariffs from time to time in accordance with law and thereby affect
        tariffed Services furnished to Customer, except that the terms and conditions
        of
        this Agreement shall supplement, or to the extent inconsistent, supersede
        Tariff
        terms and conditions. If any of XO's applicable Tariffs are cancelled during
        the
        term of this Agreement, such cancelled Tariff(s) will be deemed to be
        incorporated by reference into this Agreement on
        the
        effective date of cancellation, as supplemented by any
        non-inconsistent product
        descriptions, definitions, prices and other terms and conditions
        contained
        in the
        XO Service Description and Price Guide ("Guide"). The Guide will be maintained
        on an XO web-site accessible by Customer, such as www.terms.xo.com, and
        may
        be modified by XO from time to time and thereby
        affect
        the previously tariffed Service furnished to Customer.

      

      1.2
        Services
        and Service Exhibits.
        XO shall
        provide to Customer the Services Customer has specifically contracted for
        on a
        Service Order pursuant to the applicable Service Exhibit(s), attached hereto
        and
        made a part hereof, The Parties may add other Services to this Agreement
        by
        amending it to add additional Service Exhibit(s) and entering into additional
        Service Orders pursuant to such additional Exhibit(s). However, Customer
        may
        contract for international, interstate, intrastate and local voice services
        ("Voice Services") on a Service Order in accordance with XO's standard terms
        and
        pricing, including
        those set forth in any applicable Tariffs, without the incorporation
        of
        a Voice
        Services Exhibit hereunder.

      

      1.3 Resale
        of Services.

      

      (a)  Customer
        hereby acknowledges and agrees that it is the customer of record for all
        Services purchased from XO. In connection with its resale of the Services,
        Customer understands and agrees that it is solely responsible for all order
        provisioning, billing, collection, billing adjustments/credits, tax collection
        and payment, customer service, service installation, operation and termination,
        dispute resolution, other service-related requirements and creditworthiness
        of
        its End Users, XO shall have no liability to Customer's End Users under this
        Agreement. Customer is responsible for payment for all charges for Service
        furnished to Customer and/or its End Users by XO pursuant to the payment
        terms
        set forth in the Agreement. This responsibility is not changed by virtue
        of any
        (i) use, misuse, fraud, or abuse by Customer, its employees, its End Users
        or
        other members of the public of the Services provided
        to Customer or Customer-provided systems, equipment, facilities, or
        services
        interconnected to such Services, or (ii) inability to collect payments or
        charges from Customer's End Users, Affiliates, agents, brokers or
        re-sellers.
        Further, XO will not issue credits for fraudulent calls passed to XO
        by
        Customer.

      

      (b)  Customer
        assumes (i) the responsibility for enforcing all applicable
        regulations and the provisions of this Agreement with respect to its
        End
        Users, and (ii) any liability arising from violations thereof. In the event
        XO
        terminates the provisioning of any resold services to Customer for any reason,
        including without limitation disconnection of Customer for failure to make
        payment as required herein, Customer shall be solely responsible for providing
        any and all necessary notice to its End Users of the termination.

      

      1.4
        Access
        to Premises. _Customer
        agrees to cooperate with XO to accomplish Service activation by providing
        reasonable access to Customer's and its End Users' Premises and facilitating
        testing and Service delivery requirements, and Customer agrees XO shall have
        reasonable access to such Premises to repair, maintain or retrieve XO equipment.
        If the requisite access

      rights
        to
        all applicable buildings are not reserved to Customer, Customer
        shall
        secure
        any building owner or manager approval prior to such visit and shall
ensure
        that personnel representing XO have ready access to all portions of
        the
        grounds,
        building and adjunct areas and facilities needed by XO to perform the
        installation, removal, inspection and scheduled or emergency
        maintenance
        of XO's
        equipment. If applicable, Customer will be responsible for ensuring that
        its
        vendors and End Users cooperate with XO or its vendors in connection
        with the
        performance by XO of its obligations with respect to the Services, including,
        without limitation, the installation, modification, testing, maintenance
        and
        operation of XO's equipment. XO shall not be liable for any damages whatsoever
        resulting from delays in meeting Service delivery dates requested or specified
        by Customer, or inability to provide Services.

       

      ARTICLE
        2 - BILLING AND PAYMENT

      

      2.1
        Except as set forth in Section 22, Customer shall pay the recurring and
        non-recurring
        rates and charges and the usage charges set forth herein and/or in
        the Service
        Orders beginning on the Start of Service Date without deduction,
        setoff or
        delay
        for any reason. Customer agrees to pay for the Services, by check
        sent
        to the
        address provided for herein or on the invoice or by wire transfer sent in
        accordance
        with applicable instructions provided by XO, within thirty (30) days
        from the
        date of the invoice ("Payment Period"). Restrictive endorsements or statements
        on checks accepted by XO will not be binding upon XO. Monthly recurring charges
        are billed in advance while usage and related charges are billed
        in
        arrears. The Parties shall provide one another with reasonably
        requested information
        for bill validation including, but not limited to, the number of
        Circuits
        and
        charges for each Service.

      

      2.2
        Except for amounts in dispute, interest not to exceed 1.5% monthly may
        be charged
        on the unpaid balance not paid within the Payment Period. If the
        interest rate
        set
        out above exceeds the maximum rate allowable by law, then the
        interest chargeable
        shall be equal to the maximum rate allowed by law. Customer agrees
        to
        reimburse XO for any costs incurred as a result of any collection activity,
        including without limitation reasonable attorneys' fees and court costs,
        unless
        otherwise prohibited by law. Customer authorizes XO to request information
        from
        a reporting agency to enable XO to assess Customer's credit history. Customer
        agrees that such action is not the extension of "credit" to Customer and
        further
        agrees that XO, in its sole discretion, may alter any billing arrangements
        as a
        result of such report or upon determination of a change in Customer's financial
        circumstances. Customer agrees that as a condition of initial or continued
        Service, it must provide financial statements to XO's Credit Department within
        ten (10) days of receiving a request for such statements from XO or Service,
        if
        already installed, may be suspended or terminated.
        At any time during and upon two (2) business days written notice,
        XO may
        require a deposit or other form of security acceptable to XO if it reasonably
        deems itself insecure with respect to Customer's ability to pay (eg. if Customer
        has failed to pay any invoice when due, or if there is a material change
        in
        circumstances of Customer's
        actual
        or anticipated usage hereunder or Customer's financial condition). Failure
        by
        Customer to comply with
        such
        requirement by XO may result in Service suspension or termination.

      

      2.3
        If
        Customer disputes any invoice, Customer shall notify XO's Credit Department
        in writing, providing the billing identification, Circuit number,
        any trouble
        ticket number and an explanation for the dispute, and shall
        nevertheless pay
        the
        affected invoice within the Payment Period, provided that Customer
        may withhold
        payment of the amount in good faith dispute up to twenty percent
        (20%)
        of the
        invoiced charges. XO will investigate the dispute and in its discretion
exercised
        in good faith, may require additional supporting documentation or
        reject
        Customer's claim as inadequate. No charges may be disputed more than sixty
        (60)
        days
        after the date such charges are invoiced, and if not disputed within
        that
        time,
        all such charges shall be deemed valid and undisputed by Customer. Payment
        shall not prejudice Customer's right to dispute charges, so long as
        they are
        disputed in good faith in the manner and within the timeframes specified
        in this
        Section, The Parties will cooperate in good faith to resolve any such
        disputes within
        a
        thirty (30) day period after the dispute is submitted to XO. If the
        dispute

       

      XO
        CONFIDENTIAL

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      CARRIER
        SERVICES AGREEMENT

      
 

      is
        not
        resolved during this period, then either Party may seek resolution of the
        dispute in accordance with Article 13.

      

      2.4
        If a
        disputed amount is determined by XO to be a legitimate charge,
        interest not
        to
        exceed 1.5% monthly may be charged on the balance not paid within
        the
        original
        Payment Period and Customer will make payment of the amount due within five
        (5)
        business days of such determination. If the interest rate set out above
        exceeds the maximum rate allowable by law, then the interest
        chargeable
        shall be
        equal to the maximum rate allowed by law.

      

      2.5
        If
        Customer does not make payment of all invoiced charges in accordance
with
        the
        provisions herein within the Payment Period, XO may, at its option
        and without
        notice (i) refuse to accept additional Service Orders; (ii) suspend any
        and
        all
        Service provided by XO under this Agreement and/or any other service
agreement
        until Customer has paid all past due amounts (including interest);
        (iii) offset
        such unpaid balances from any amounts that XO owes to Customer under any
        other
        agreement between the parties; and/or (iv) require weekly payments
        or
        a surety
        of up to two (2) times Customer's aggregate monthly invoicing and failure
        by
        Customer to comply with such requirement by XO may result in Service suspension.
        Following suspension of Services for non-payment, XO is not
        required to reinstate Services to Customer until: (I) Customer has paid in
        full all
        charges then due, including any late fees, interest charges, collection costs
        and
        any cost
        of reinstating Services; and (2) Customer provides to XO satisfactory
assurance
        as requested by XO (such as a deposit) of Customer's ability to pay
        for Services
        for the remainder of the applicable Service term(s). If Customer fails
        to
        timely
        cure the non-payment within the timeframe specified by XO, Customer will
        be
        deemed to have terminated the affected Services as of the effective date
        of Service
        suspension. Termination hereunder for non-payment shall be treated
        as termination
        for convenience by Customer subject to early termination charges as set
        out
        in the applicable Exhibit. If Customer has not paid an invoice within
        the
        Payment
        Period and XO owes any amounts to Customer, XO may offset respective payments
        by
        first applying such amounts owed by XO to the full balance due from Customer
        and
        the remaining amounts owed by XO, if any, will
        be
        remitted in the normal course of business,

      

      2.6
        When
        Service is initiated on a day other than the fast day of the month or
terminates
        on a day other than the last day of the month, any monthly recurring
        charges
        for that month shall be prorated accordingly.

      

      2.7
        Notwithstanding anything contained herein to the contrary, if XO is required
        to
        construct and/or acquire telecommunications facilities in order to provide
        Service to Customer, Customer acknowledges and agrees that XO therefore incurs
        significant costs and expenses in provisioning such Service to Customer,
        including but not limited to costs associated with constructing and/or acquiring
        the telecommunications facilities necessary for delivery of XO Services to
        Customer. In addition to any other rights and remedies XO may have at law,
        in
        equity or as provided herein, Customer agrees that if Customer cancels this
        Agreement or any individual Service Order after signature but prior to the
        Start
        Of Service Date, or if Customer terminates this Agreement or any individual
        Service Order prior to expiration of the committed Service term, Customer
        shall
        reimburse XO for all costs and expenses XO incurred in constructing and/or
        acquiring such telecommunications facilities.

      

      2.8
        Monthly
        Minimum Commitment.
        During
        each month of the Agreement, Customer shall purchase Services from XO in
        an
        amount that shall equal or exceed 
        Dollars
        ($ )
        per
        month (the "Monthly Minimum"). If, at the end of each such month, Customer's
        purchase of Services are less than the Monthly Minimum, then Customer shall
        pay:
        (I) all accrued but unpaid Service charges and other charges incurred by
        Customer; and (2) a shortfall charge (which Customer hereby agrees is
        reasonable) equal to the difference between the Monthly Minimum and Customer's
        actual purchase of XO's Services (including any applicable cancellation
        charges), excluding taxes, tax related surcharges, and other surcharges during
        that month.

       

      ARTICLE
        3
        - TAXES

      

      3.1
        The
        rates, pricing and charges for Services set forth herein or in any Service
        Order
        do not include applicable taxes and surcharges. Customer shall be responsible
        for and shall pay any taxes, arising in any jurisdiction, including without
        limitation, sales, use, excise, gross receipts, value added, access, bypass,
        franchise, telecommunications, consumption, or other taxes, fees, duties,
        charges or surcharges; however designated, imposed on or based on the provision,
        sale or use of the Services, including taxes or surcharges imposed directly
        on
        XO. If Customer believes it or the Services is exempt from any tax, Customer
        will provide XO with a properly executed exemption certificate evidencing
        such
        claimed exemption. In no case shall Customer be responsible for any income
        taxes
        levied upon XO's (or any underlying carrier's) net income. Customer agrees
        that
        its obligation to pay taxes and surcharges under this Section shall survive
        the
        expiration or early termination of the Agreement.

      

      ARTICLE
        4 - TERM AND RENEWAL OPTIONS

      

      4.1
        The
        term of this Agreement shall commence on the Effective Date of this Agreement,
        and shall terminate three (3) years thereafter. Thereafter, this Agreement
        shall be automatically renewed in successive one-year periods unless terminated
        by written notice by one of the Parties at least sixty (60) days prior
        to the
        end
        of the initial term or any one-year renewal period (collectively,
        "Term"); provided,
        however, that if the period of time set out in the applicable Exhibit
        or
        Service
        Order for a particular Service(s) extends beyond the effective date of
        termination of this Agreement, such Services(s) shall remain in effect for
        such
        agreed upon time period, subject to all of the terms and conditions of this
        Agreement
        as if it were still in effect with respect to such Service(s). If
        Customer
        wishes
        to terminate a Service or Circuit(s) for any reason, or not to renew such
        Service or Circuit(s), Customer shall provide XO with written notice
        ("Termination Notice") addressed to XO at such location, as XO shall specify
        from time to time. Such Termination Notice must specify all necessary
        identifying details about the Service or Circuit being terminated (e.g.,
        Circuit
Identification
        number, the A and Z locations of such Circuit) and the requested
        effective date of such termination (which date must not be less than thirty
        (30)
days
        from
        the date notice is received by XO). Termination of
        Service/Circuit(s) by any
        form
        of
        communications or means other than as provided above shall not be
        effective and Customer shall remain obligated to XO for all
        Services/Circuit(s)
        rendered. For the avoidance of doubt, Customer may be liable for early
termination
        charges upon termination of Service/Circuit(s) as further provided
        in
        the
        applicable Service Exhibit attached hereto.

      

      ARTICLE
        5-INSURANCE

      

      5.1
        Except as may be otherwise provided in an Exhibit hereto, Customer will
maintain
        throughout the term of this Agreement the following insurance
        coverage with
        a
        licensed insurance company rated A- or better by A.M. Best: (a)
        Worker's
        Compensation Insurance to comply with the state laws in which the work is
        performed; (b) Commercial General Liability in an amount not less than
$1,000,000
        per occurrence / $2,000,000 general aggregate; and (c) Automobile Liability,
        including Non-Owned and Hired Auto Liability, in an amount not less
        than
        $1,000,000 Combined Single Limit, "XO Communications, Inc." shall be added
        as an
        additional insured on Customer's policies and such shall waive its rights
        of
        subrogation against XO. All insurance carried by Customer shall be primary
        and
        non-contributory with any insurance carried by XO.

      

      ARTICLE
        6 - WARRANTIES AND NETWORK STANDARDS

      

      6.1
        Each
        Party represents and warrants to the other Party that it is an entity,
        duly organized,
        validly existing and in good standing under the laws of the place of
        its
        origin,
        with all requisite power and authority to enter into and perform its obligations
        under this Agreement in accordance with its terms.

      

      6.2
        XO
        represents and warrants to Customer that all On-Net Service rendered
by
        it
        hereunder shall be designed, produced, installed, furnished and in all
        respects

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      CARRIER
        SERVICES AGREEMENT

      
 

      provided
        and maintained in conformance and compliance with applicable
        federal,
        state
        and local laws, administrative and regulatory requirements and any other
        authorities having jurisdiction over the subject matter of this
        Agreement.

      

      6.3
        Customer represents and warrants that (i) all services rendered by it to
        its End
        Users shall be designed, produced, installed, furnished and in all respects
        provided and maintained in conformance and compliance with applicable federal,
        state and local laws, administrative and regulatory requirements and any
        other
        authorities having jurisdiction over the subject matter of the Customer-provided
        services, and (ii) it has all licenses, approvals, registrations and
        certifications (collectively, "Approvals") which may be required by the
        applicable regulatory authorities for its operation and the provision of
        any
        services to its End Users and it shall be solely responsible for applying
        for,
        obtaining and maintaining all such Approvals.

      

      6.4
        The
        warranties and remedies set forth in this Agreement constitute the only
        warranties and exclusive remedies with respect to this Agreement. SUCH
WARRANTIES
        ARE IN LIEU OF ALL OTHER WARRANTIES, WRITTEN
        OR ORAL,
        STATUTORY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE WARRANTY
        OF
        MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE, NON-INTERFERENCE
        AND NON-INFRINGEMENT.

      

      ARTICLE
        7
        .-
DEFAULT

      

      7.1
        A
        Party shall be deemed in "Default" of this Agreement upon the occurrence
        of any
        one or more of the following events:

      

      (i)  a
        Party
        violates any applicable laws, statutes, ordinances, codes or other legal
        requirements with respect to the Services and such violation(s) are not remedied
        within thirty (30) days after written notice thereof; or

      

      (ii)  a
        Party
        fails to perform any of its material obligations under this Agreement and
        such
        nonperformance is not remedied within thirty (30) days
        after notice thereof or such other cure period as may be specified in
        the applicable
        Exhibit, except for payment defaults, for which no cure periods
        in
        addition to those described in Section 2.5 herein shall be available;
provided,
        however, if Customer is entitled to outage credits pursuant to the applicable
        Service Exhibit attached hereto or other remedies set out in this
        Agreement for such nonperformance by XO, then such outage credits or other
        remedies shall be Customer's exclusive remedy and such nonperformance
        shall not be construed to be a Default under this Section
        7.1.

      

      7.2
        In
        addition to all remedies available at law or in equity, the non-defaulting
        Party
        hereunder may terminate this Agreement, including, for the avoidance of
doubt,
        its Exhibits, and/or related Service Orders, in whole or in part, upon
        the
        occurrence of a Default.

      

      ARTICLE
        8 - CONFIDENTIAL INFORMATION

      

      8.1
        Each
        Party shall preserve the other Party's confidential information provided
        to it
        hereunder with the same degree of care in protecting its own confidential
        or
        proprietary information, but in no event less than a reasonable standard
        of care
        shall be used and shall execute and comply with the terms and conditions
        of the General Nondisclosure Agreement ("NDA") executed by both
        Parties
        as of the day of October, 2004. Notwithstanding any provision therein, the
        Parties hereby agree that such NDA shall be coterminous with this
        Agreement.

      

      ARTICLE
        9 - INDEMNIFICATION

      

      9.1
        Customer and/or End User shall indemnify, defend and hold harmless XO and
        its
        Affiliates and all of their employees, directors, officers, and agents from
        and
        against all claims, demands, actions, causes of actions, damages,
        liabilities,

       

      losses,
        and expenses (including reasonable attorney's fees) incurred as a result
        of
        third
        party claims:

      

      (i)  for
        libel, slander, infringement of copyright or unauthorized use of trademark,
        trade name, service mark or any other intellectual property infringement
        arising
        out of or related to use of the Service;

      

      (ii)  for
        patent infringement arising from combining or connection of Customer
        or third party services, equipment, and/or facilities to use XO's
        Network
        or Service;

      

      (iii)  for
        damage to property and/or personal injury (including death) arising
        out of the gross negligence or willful act or omission of Customer
        and/or
        End User;

      

      (iv)  arising
        out of or in connection with Customer's resale or sharing of the Services;
        and

      

      (v)  related
        to any Customer representations regarding Customer's traffic and
        Customer's use of Services including without limitation, as set forth
        in
        Article
        11.

      

      9.2
        XO
        shall indemnify defend and hold harmless the Customer and its Affiliates
        and their employees, directors, officers, and agents from and against
        all
        claims,
        demands, actions, causes of actions, damages, liabilities, losses, and
expenses
        (including reasonable attorney's fees) incurred as a result of third
        party
        claims:

      

      (i)  for
        patent or copyright infringement relating to XO's equipment or XO's software
        used by XO to provide the Services hereunder; and

      

      (ii)  for
        damages to property and/or personal injury (including death) arising out
        of the
        gross negligence or willful act or omission of XO.

      

      9.3
        If,
        as the result of a claim or threatened claim related to an infringement of
        a
        third
        party's intellectual property rights, (1) the Services or any essential
        component thereof are held by a court of competent jurisdiction, or in XO's
        reasonable
        judgment may be held, to infringe, or (2) either Party receives a
        valid
        court
        order enjoining that Party from using the Services or any essential component
        thereof or, in XO's reasonable judgment such order may be received, XO
        shall
        in its reasonable judgment, and at its expense, (a) replace or modify
        the
        affected
        Service or essential component to be non-infringing; (b) obtain for Customer
        a license to continue using the affected Service or essential
        component;
        or (c)
        if XO cannot reasonably obtain the remedies in (a) or (b), terminate the
        affected Service without penalty to Customer. This Section states XO's entire
        responsibility and liability and Customer's sole and exclusive remedy for
        any
claim
        of
        infringement. Notwithstanding the foregoing, XO shall have no
        liability for
        any
        claim of infringement based on (x) the use of the Services in a manner
        not
        contemplated or otherwise not in accordance with this Agreement and
        documentation related to the Services; (y) any combination of the Service
        or
essential
        component thereof with other elements or the modification of a
        Service by
        anyone
        other than XO where, but for such combination or modification, no
        claim of
        infringement would exist or (z) the use of the Services . Any and all claims
        for
        indemnification shall be conditioned upon (i) prompt written notification
        by the indemnified Party to the indemnifying Party; (ii) assumption
        of sole
        control of the defense of such claim and all related settlement negotiations
        by the
        indemnifying Party; and (iii) provision by the indemnified Party of the
        prompt assistance,
        cooperation, information and authority necessary for the
        indemnifying
        Party to
        perform its obligations under this Section.

      

      ARTICLE
        10 - LIMITATION OF LIABILITY

      

      10.1
        Neither Party shall be liable to the other Party for any indirect,
        consequential, special, incidental, reliance, or punitive damages of any
        kind or
nature
        whatsoever including, without limitation, any lost profits, lost
        revenues, lost
        savings, or any other business loss including goodwill, loss of use of
        property,

      

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      CARRIER
        SERVICES AGREEMENT

       

      loss
        of
        data, cost of substitute performance equipment or services, downtime
        costs
        and
        claims of customer for damages, or harm to business, regardless of the
foreseeability
        thereof and regardless of whether damages are caused by the willful misconduct,
        negligent act or omission, or wrongful act arising from or related
        to this
        Agreement. For purposes of this Agreement, a Party's out-of-pocket costs
        for
        damages
        of the kinds specified in the preceding sentence which are recovered
from
        such
        Party by a third party shall be deemed to be indirect damages to
        such Party
        and
        each Party hereby releases the other Party, its subsidiaries and
        affiliates, and
        their
        respective officers, directors, managers, employees, and agents,
        from damages
        from such claim(s), except to the extent such damages are part of
        claims for
        which
        indemnification is due under Sections 9.1 and 9.2 herein. Customer's sole
        remedy for the failure of non-perfonnance or XO and/or the Service shall
        be to
        receive credits as set forth in this Agreement and the Exhibits
        hereto. THE
        ENTIRE
        LIABILITY OF XO AND CUSTOMER'S SOLE AND EXCLUSIVE
        REMEDY FOR CLAIMS ARISING UNDER OR IN ANY WAY
        RELATED TO THIS AGREEMENT SHALL BE LIMITED TO THE LESSER OF DIRECT DAMAGES
        OR
        THE TOTAL AMOUNT PAID
        BY CUSTOMER TO XO DURING THE PREVIOUS THREE (3) MONTHS
        FOR THE SERVICE(S). The foregoing limitations apply to all
        causes of action and claims of
        any
        kind arising out of
        or
        related to this Agreement
        including any Exhibit and any Service Order, including, without limitation,
        breach of
        contract,
        breach of
        warranty,
        strict liability, negligence,
        misrepresentation, or any other tort. Customer acknowledges
and
        accepts the reasonableness of
        the
        disclaimers and limitations of
        liability
        set forth herein.

      

      ARTICLE
        11- REGULATIONS

      

      11.1
        The
        rates set forth in this Agreement are subject to the imposition of
        new
        regulation, modification of existing regulation, and new interpretation or
        enforcement of regulation by any federal, state, or local regulatory agency,
        legislative
        body, or court of competent jurisdiction, including the imposition
        of
        any
        charges, surcharges, and/or taxes in reliance or as a result of the same
        ("Regulatory Activity"). XO reserves the right, at any time, (i) to pass
        through
        to Customer all, or a portion of, any charges, surcharges, or taxes directly
        or
indirectly
        related to such Regulatory Activity; or (ii) modify the rates and/or
        other terms
        and
        conditions of this Agreement to reflect the impact of such
        Regulatory
        Activity.

      

      11.2
        Customer represents and wan-ants that all traffic being delivered by
Customer
        or its End Users or agents to XO for local termination, and all
        traffic that
        XO
        delivers to Customer or its End Users or agents that has originated in
        the
        same
        local calling area
        in
        which
        Customer's NPA-NXX is assigned and/or in which
        such traffic is terminated to Customer or its End Users or agents, is
        local
        traffic
        or is legally entitled to be treated as local traffic under all applicable
        federal,
        state and local laws, administrative and regulatory requirements and
        any other
        authorities having jurisdiction over such traffic. Customer understands
        that
        XO will
        rely upon such representation to assign local telephone numbers to Customer
        and/or route Customer's traffic for termination as local calling. Customer
        represents and wan-ants that Customer has paid, or shall promptly
        pay to
        XO all
        switched access charges associated with any of Customer's traffic that
        is delivered
        pursuant to this Agreement. Customer also represents and wan-ants
        that
        neither
        it nor any of its end users or agents will remove or in any way alter Automatic
        Number Identification ("ANI") or Calling Party Number ("CPN") information
        associated with any traffic delivered pursuant to this Agreement. Customer
        agrees to cooperate with XO to obtain or verify any necessary regulatory
        certification regarding the nature of its traffic and/or use of
        facilities.

      

      11.3
        Customer shall promptly pay to XO all access charges, reciprocal compensation,
        and/or any other charges, surcharges and/or taxes billed to XO by a
        third
        party, or remitted by XO to a third party, that are associated with any of
        Customer's traffic delivered or facilities utilized pursuant to this Agreement,
        including but not limited to any retroactive charges, (collectively, "Additional
        Charges")
        and that are not already reflected in the rates charged by XO for
        the Services
        rendered pursuant to this Agreement. Although XO shall not have any
        obligation to challenge any Additional Charges levied by a third party, if
        XO

      successfully
        challenges imposition of any Additional Charges by a third party, it will
        refund
        to Customer any Additional Charges previously paid by Customer to XO that
        were
        subject to such successful challenge. In addition, XO shall have the right,
        upon
        five (5) days written notice to Customer, to revise its rates for Services
        provided to Customer to reflect any Additional Charges. Within thirty (30)
        days
        of receipt of written notice of any such rate increase to reflect Additional
        Charges, Customer, upon giving written notice to XO, may elect to transition
        any
        Services affected by such rate increase to another carrier over a period
        of time
        not to exceed sixty (60) days. Notwithstanding any other provision of this
        Agreement, if, within the designated thirty (30) day period, Customer does
        not
        provide written notice to XO of its election to transition the affected Services
        to another carrier, Customer shall be deemed to have waived its right to
        such
        election. Even if Customer elects to transition the affected Services to
        another
        carrier, Customer shall still be responsible for paying any and all Additional
        Charges billed to or remitted by XO up to and including the final transition
        date. The parties agree to cooperate on the scheduling of any such
        transition.

       

      1
        I.4
        Customer agrees that, if XO is subjected to a third party audit relating
        to
        Customer's traffic or use of facilities which is the subject of this Agreement,
        Customer will cooperate in any such audit. Customer further agrees that it
        will
        protect, defend, indemnify and hold harmless XO, its subsidiaries, affiliates,
        officers, directors and employees from any and all costs resulting from such
        third party action.

      

      ARTICLE
        12 - FORCE MAJEURE

      

      12.1
        In
        no event shall a Party have any claim or right against the other Party
        for
        any
        failure of performance due to causes beyond its control, including but not
        limited to: acts of God, fire, explosion, vandalism, cable or fiber cut,
        adverse
weather
        conditions, flood or other similar occurrences; any law, order
        regulation, direction,
        action or request of the government, including federal, state and
        local
        governments having or claiming jurisdiction over XO or of any department,
        agency,
        commission, bureau, corporation, or other instrumentality of any
        federal,
        state,
        or local government, or of any civil or military authority; national
        emergencies; unavailability of materials or rights-of-way; insurrections;
        riots,
        wars; terrorism; strikes, lock-outs, work stoppages, or other labor
        difficulties, supplier failures, shortages, breaches or delays; or any other
        cause or circumstance,
        whether of a similar or dissimilar nature to the foregoing, beyond
        the
        reasonable control of the affected Party.

      

      ARTICLE
        13 - DISPUTE RESOLUTION

      

      13.1
        Except for (i) action seeking a temporary restraining order or injunction,
        (ii)
        a suit
        to compel compliance with this dispute resolution process, (iii) disputes
        relating to the lawfulness of rates, terms, conditions or practices concerning
        Services
        that are subject to the Communications Act of 1934, as amended, or
        the
        rules
        and regulations of the FCC, a state public utility commission or other
administrative
        agency, (iv) Customer non-compliance with publicity provisions,
        or (v)
        billing or payment disputes or collections matters all of which may be
litigated
        (or brought before the applicable agency in the case of subsection (iii))
        at the
        election of XO, the Parties agree to use the dispute resolution procedures
        set
        forth in
        this Section with respect to any controversy or claim arising out of or relating
        to this Agreement or its breach.

      

      13.2
        Upon
        ten (10) days written notice, either Party may submit disputes to binding
        arbitration by a single arbitrator with a professional arbitration service
        selected by the Parties. If the Parties do not otherwise agree on an arbitration
        service, such services shall be provided pursuant to the American Arbitration
        Association
        ("AAA") Commercial Arbitration Rules and Mediation Procedures. The
        costs
        of arbitration, including the fees and expenses of the arbitrator, shall
        be
        paid
        equally by the Parties. Each Party shall bear the cost of preparing and
        presenting its case. The Parties agree that Fairfax County, Virginia shall
        be
        the location for the arbitration hearing.

       

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      CARRIER
        SERVICES AGREEMENT

      
 

      13.3
        The
        Parties agree that this Article 13 and the arbitrator's authority to grant
        relief shall be subject to the Federal Arbitration Act, 9 U.SC. §§ 1-16,
et
        seq.
        ("FAA"),
        the provisions of this Agreement, and the AAA Code of Ethics for Arbitrators
        in
        Commercial Disputes. The Parties agree that the arbitrator shall have no
        power
        or authority to make any award that provides for punitive or exemplary
        damages or damages otherwise limited or excluded in this Agreement. The
        arbitrator's decision shall be final and binding. The award may be
        confirmed and
        enforced in any court of competent jurisdiction. All post-award
        proceedings
        shall be
        governed by the FAA.

      

      ARTICLE
        14 - ASSIGNABILITY

      

      14.1
        Customer may not assign this Agreement without the prior written
        consent
        of XO,
        which consent shall not be unreasonably withheld. Any request by Customer
        for such consent from XO shall be directed to XO's Legal and Credit
        Departments. Any such assignment without XO's prior written consent shall
        be
        void. Notwithstanding the foregoing, if this Agreement is assigned by Customer
        to any other party, by assignment, operation of law or otherwise, which Party,
        prior to the assignment, has an agreement (the "Prior Agreement") with XO
        or
any
        of
        its Affiliates for the provision of services, the services being provided
        shall
        continue
        to be governed by the Prior Agreement, and the Services provided hereunder
        shall
        continue to be governed by this Agreement, each without reference to the
        other.

      

      ARTICLE
        15 - NOTICES

      

      15.1
        Notices under this Agreement shall be in writing and delivered by overnight
        courier (e.g., Federal Express, DHL) or certified mail, return receipt
requested,
        to the persons whose names and business addresses appear below and
        such
        notice shall be effective on the date of receipt by the receiving
        Party:

      

      If
        to XO:
        XO Communications, Inc. 11111 Sunset Hills Road Reston, VA 20190

      Attn:
        President, Carver Sales

      

      With
        copy
        to: XO
        Communications, Inc.

      11111
        Sunset Hills Road

      Reston,
        VA 20190

      Attn:
        Vice President, Assistant General Counsel

      

      if
        to
        Customer: United
        American Corporation

      3199
        E.
        Warm Springs Road, Suite 200 Las Vegas, NV 89120

      Attn:
        Benoit Laliberte

      

      A
        Party
        may change its address and point of contact by notifying the other
        Party
        in
        accordance with this Article.

      

      ARTICLE
        16 - MISCELLANEOUS

      

      16.1
        In
        the event of any express inconsistency, and only to the extent of such
        inconsistency, between the main body of this Agreement and any Exhibits or
        Service Orders made a part or in accordance with this Agreement, precedence
        shall be given to:

      

      
        (1)
          (2)
          (3)
The
        main
        body of this Agreement 

      The
        Exhibits; and Any Service Orders.

      Any
        Service Orders.

      

      16.2
        XO's
        telecommunications equipment shall remain the sole and exclusive property
        of XO or its assignee, and nothing contained herein shall give or
        convey to
        Customer any right, title or interest whatsoever in such equipment, which
        shall
        at all
        times be and remain personal property notwithstanding that it may be or become
        attached to or embedded in realty. Customer shall not tamper with, remove
        or
        conceal any identifying plates, tags or labels affixed to the
        equipment

      showing
        XO's ownership thereof XO may substitute, change or rearrange telecommunications
        equipment used in providing Service as long as the quality of
        the
        Service is not impaired.

      

      16.3
        This
        Agreement does not render either Party the agent or legal representative
        of the other Party and does not create a partnership or joint
        venture between
        Customer and XO. Neither Party shall have any authority to agree for
        or bind
        the
        other Party in any manner whatsoever, This Agreement confers no
        rights
        of any
        kind upon any third party, including without limitation Customer's
        End
        Users.

      

      16.4
        No
        waiver of any of the provisions of this Agreement shall be binding unless
        it is
        in writing and signed by both Parties. The failure of either Party to insist
        on
        the strict enforcement of any provision of this Agreement shall not constitute
        a
        waiver of any provision and all terms shall remain in full force and
        effect,

      

      16.5
        No
        subsequent agreement among the Parties concerning the Service shall be effective
        or binding unless it is made in writing and executed by authorized
        representatives of the Parties. Neither electronic mail nor instant messaging
        (IM) shall be considered a "writing" sufficient to change, modify, extend
        or
        otherwise affect the terms of the Agreement.

       

      16.6
        This
        Agreement, together with any applicable Tariffs, sets forth the entire
understanding
        of the Parties and supersedes any and all prior or contemporaneous agreements,
        arrangements or understandings relating to the subject matter
        hereof,
        written,
        oral or otherwise. The Appendices and Exhibits referred to herein are
        integral
        parts hereof and are hereby made a part of this Agreement.

      

      16.7
        If
        any part of any provision of this Agreement or any other agreement, document
        or writing given pursuant to or in connection with this Agreement
        shall
        be
        invalid or unenforceable under applicable law, said part shall be ineffective
        to
        the extent of such invalidity only, without in any way affecting the remaining
        parts of said provision or the remaining provisions of this
        Agreement

      

      16.8
        This
        Agreement for Service is made pursuant to and shall be construed and enforced
        in
        accordance with the laws of the Commonwealth of Virginia without regard to
        its
        choice of law principles. Any action arising out of or related to this Agreement
        shall be brought in the state or Federal courts located in Fairfax County,
        Virginia, and Customer consents to the exclusive jurisdiction and venue of
        such
        courts.

      

      16.9
        This
        Agreement is non-exclusive. Nothing in this Agreement shall prevent Customer
        or
        XO from entering into similar arrangements with, or otherwise providing Services
        to, any other person or entity. Further, Customer understands and agrees
        that
        (i) as part of XO's normal business, XO will engage in extensive marketing
        efforts
        to
        sell
        its services; (ii) such efforts will result in active competition with Customer;
        and (iii) such competition is fair and proper and Customer shall not complain
        of
        business lost to XO as a result.

      

      16.10
        Neither Party shall issue a news release, public announcement, advertisement,
        or
        other form of publicity concerning the existence of this Agreement
        or the supplies or Services to be provided hereunder without
        obtaining
        the
        prior written approval of the other Party. Any request by Customer for such
        consent
        from XO shall be directed to XO's Legal and Corporate Communications
        Departments. Customer shall not (i) attempt to sell service to its End Users
        or
        prospective End Users using XO's name, (ii) represent to End Users or
        prospective End Users that they will be XO Customers or that they may obtain
        XO
        service from Customer, or (iii) indicate to End Users or prospective End
        Users
        that it has any relationship to XO other than an agreement to purchase
        XO
        services
        on a wholesale basis.

      

      16.11
        The
        terms and provisions contained in this Agreement that by their sense and
        context
        are intended to survive the performance thereof by the Parties shall survive
        the
        completion of performance and termination of this Agreement, including, without
        limitation, the making of any and all payments hereunder

       

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
CARRIER
        SERVICES AGREEMENT

       

       

      16.12
        Any
        additional services provided by XO to Customer not included in a Service
        Order
        shall be governed by the terms of this Agreement and priced in accordance
        with
        XO's standard pricing as set forth in its applicable Tariffs, price lists
        or
        Guide.

      

      
        

16.13
        This Agreement shall be of no force and effect and the offer contained herein
        shall be withdrawn unless this Agreement is executed by Customer and delivered
        to XO on or before the 10th
        day of
        November, 2004.

       

      

       

      IN
        WITNESS WHEREOF, the
        Parties hereto have caused this Agreement to be executed 

      by
        their
        duly authorized representatives as of the Effective Date.

      

       

      United
        American Corporation

       

      

        
          
            	
                     

                    BY:

                  
	
                    AUTHORIZED
                      SIGNATURE   DATE

                     

                     

                  
	
                    PRINT
                      NAME

                     

                     

                  
	
                    PRINT
                      TITLE

                  

          

      

       

      
      

      XO
        Communications, Inc. on behalf of
        its operating Affiliates

       

      
        
          	
                   

                  BY:

                
	
                  AUTHORIZED
                    SIGNATURE   DATE

                   

                   

                
	
                  PRINT
                    NAME

                   

                   

                
	
                  PRINT
                    TITLE

                

        

      

      List
        of Exhibits

      Exhibit
        A
        -Inter-Market Inbound Primary Rate Interface Service

      

      

      

      

      

      

      

      

      

      

      
 

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

      CARRIER
        SERVICES AGREEMENT

       

      This
        Inter-Market Inbound Primary Rate Interface Service Exhibit
(the
        "Service Exhibit"), is
        made and
        entered into this 12 day
        of
        October, 2004 (the "Effective Date") between XO
        Communications, Inc. ("XO"), a
        Delaware corporation with offices at 11111 Sunset Hills Road, Reston, VA
        20190
        and United
        American Corporation ("Customer"),
        a Nevada corporation with offices at 3199 E. Warm Springs Road, Suite 200,
        Las
        Vegas, NV 89120 (individually, a "Party" and collectively, the "Parties").
        This
        Service Exhibit describes the terms and conditions applicable to Customer's
        use
        of XO's Inter-Market Inbound Primary Rate Interface ("PRI") Service. In the
        case
        of any conflict between this Service Exhibit and the Agreement, the terms
        and
        conditions of this Service Exhibit shall control. Except as amended herein,
        the
        Agreement shall remain in full force and effect.

      

      1.  INTER-MARKET
        INBOUND PRIMARY RATE INTERFACE SERVICE ("PRI") SERVICE
        DESCRIPTION

      

      1.1
        Inter-Market Inbound PRI Service (the "Service(s)") is a type of Integrated
        Service Digital Network ("ISDN") service that is a digital trunking technology
        which provides customers with high capacity digital access from their customer
        premise equipment ("CPE") to the XO local switched network. The connection
        is
        provided over a DS-1 facility that carries up to twenty-four (24) channels
        delivering 64 Kbps
        and
        up to 1.544 Mbps of dedicated bandwidth. Inter-Market Inbound PRI Service
        is
        configured using
        twenty-three (23) bi-directional B or Bearer channels and 1 D or Data channel
        (23 B+D).

      

      This
        Service can also be used to terminate only long distance traffic at the rates
        specified on the attached spreadsheet. To the extent the Service will be
        utilized to terminate long distance traffic, the customer representations
        set
        forth in Sections 3.3-3.7 apply.

      

      1.2
        Inter-Market Inbound PRI Service is provided to Customer pursuant to the
        applicable tariffs and price lists of XO and/or its affiliates and successors
        (individually, a "Tariff' and collectively, the "Tariffs"), each as supplemented
        by this Service Exhibit to the extent permitted by law. This Service Exhibit
        incorporates by reference the terms of each such Tariff XO may modify its
        Tariffs from time to time in accordance with applicable law and thereby affect
        the Services furnished to Customer. In the event any of XO's applicable Tariffs
        are cancelled, Section 1.1(t) of the Agreement shall apply. Capitalized terms
        not otherwise defined in the Agreement or herein shall have the meaning given
        them in the Tariffs.

      

      1.3
        The
        Inter-Market Inbound PRI Service will be offered in each area to the Customer
        by
        an entity which is either an affiliate or subsidiary of XO and/or which XO
        manages or with whom it is otherwise contractually affiliated (an "Authorized
        Entity"). XO will notify Customer from time to time of the identity of each
        Authorized Entity. The terms and conditions of this Service Exhibit are,
        and
        shall be, applicable to the Inter-Market Inbound PRI Service provided to
        the
        Customer by each Authorized Entity.

       

      2.  AVAILABILITY

      

      2.1
        Inter-Market Inbound PRI Service is generally available in the following
        locations but each request will be reviewed for capacity prior to committing
        to
        customer that service can be installed in such location on a LATA-specific
        basis, including limited rate centers:

       

      
        	
                Akron

              	
                Allentown

              	
                Atlanta

              	
                Austin

              	
                Baltimore

              
	
                Boston

              	
                Chicago

              	
                Clarkston

              	
                Cleveland

              	
                Columbus

              
	 	
                Dallas/
                  Fort Worth

              	 	
                Denver

              	
                Detroit

              
	 	
                Freemont

              	
                Harrisburg

              	
                Houston

              	
                Las
                  Vegas

              
	
                Lewiston

              	
                Los
                  Angeles

              	
                Memphis

              	
                Miami

              	 
	
                N.
                  Virginia

              	
                Nashville

              	
                New
                  York City

              	
                North
                  New Jersey

              	
                Oakland

              

      

       

       

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

        
          	
                   

                	
                  Philadelphia

                	
                  Phoenix

                	
                  
                    Portland

                  

                	
                  Roseville

                
	
                  Sacramento

                	
                  
                    Salt
                      Lake City

                  

                	
                   

                	
                  
                    San
                      Diego

                  

                	San
                  Francisco
	
                  
                    Seattle

                  

                	
                   

                	
                  
                    Spokane

                  

                	
                  
                    St.
                      Louis

                  

                	Tampa 
	
                  Washington,
                    D.C.

                	
                   

                	
                   

                	
                  
                     

                  

                	 

        

      

       

      3.
        PRODUCT TERMS AND CONDITIONS

      

      3.1
        The
        Inter-Market Inbound PRI Service is a dedicated Inbound only Primary Rate
        Interface traffic solution for customers. Inter-Market Inbound PRI Service
        provides access to certain, identified LATAs, with up to five (5) rate centers
        within a given LATA as a standard option. Additional rate centers within
        the
        same LATA may be ordered and will be priced according to the pricing schedule
        found in the below Pricing Section. 100 DID numbers will be provided per
        each
        rate center, and additional blocks of numbers are available at pricing described
        in Section 4 below.

      

      3.2
        The
        Inter-Market Inbound PRI Service will be delivered to the Customer Premise
        on a
        digital basis only. In the event no term is specified in the service order
        for
        each individual Inter-Market Inbound PRI Service order, it shall be a one
        (1)
        year term and shall commence on the date of service activation.

      

      3.3
        Customer and XO agree that in the event of a decision by a regulatory authority
        at the federal, state or local level, including but not limited to the approval
        of a new ILEC interconnection arrangement, which alters XO's ability to offer
        the current pricing as set forth below, upon thirty (30) days written
        notification to Customer, XO may migrate the Customer to the Off-Net Price
        Plan
        for the remainder of the Customer's term commitment. If XO chooses to migrate
        the Customer to an Off-Net Price Plan for the remainder of the Customer's
        term
        commitment, Customer may cancel the Inter-Market Inbound PRI Service without
        incurring cancellation charges upon thirty (30) days written notice to XO
        after
        receipt of XO's migration notice.

      

      3.4
        Customer represents and warrants that all traffic being delivered by Customer
        or
        its designated agent to XO for local termination, and all traffic that XO
        delivers to Customer or its designated agent that has originated in the same
        local calling area in which Customer's NPA-NXX is assigned and/or in which
        such
        traffic is terminated to Customer or its designated agent, is local traffic
        or
        is legally entitled to be treated as local traffic under all applicable federal,
        state and local laws, administrative and regulatory requirements and any
        other
        authorities having jurisdiction over such traffic. Customer understands that
        XO
        will rely upon such representation to assign local telephone numbers to Customer
        and/or route Customer's traffic for termination as local calling. Customer
        represents and warrants that Customer has paid, or shall promptly pay to
        XO
        pursuant to Section 3.5 below, and all switched access charges associated
        with
        any of Customer's traffic that is delivered pursuant to this Service Exhibit.
        Customer also represents and warrants that neither it nor any of its agents
        will
        remove or in
        any
        way
        alter Automatic Number Identification ("AM") or Calling Party Number ("CPN")
        information associated with any traffic delivered pursuant to this Service
        Exhibit.

      

      3.5
        Customer shall promptly pay to XO all access charges, reciprocal compensation,
        and/or any other charges, surcharges and/or taxes billed to XO by a third
        party,
        or remitted by XO to a third party, that are associated with any of Customer's
        traffic delivered pursuant to this Service Exhibit, including but not limited
        to
        any retroactive charges, (collectively, "Additional Charges") and that are
        not
        already reflected in the rates charged by XO for the Services rendered pursuant
        to this Service Exhibit. Although XO shall not have any obligation to challenge
        any Additional Charges levied by a third party, if XO successfully challenges
        imposition of any Additional Charges by a third party, it will refund to
        Customer any Additional
        Charges
        previously paid by Customer to XO that were subject to such successful
        challenge. In addition, XO shall have the right, upon five (5) days written
        notice to Customer, to revise its rates for Services provided to Customer
        to
        reflect any Additional Charges. Within thirty (30) days of receipt of written
        notice of any such rate increase to reflect Additional Charges, Customer,
        upon
        giving written notice to XO, may elect to transition any Services affected
        by
        such rate increase to another carrier over a period of time not to exceed
        sixty
        (60) days. Notwithstanding any other provision of this Service Exhibit, if,
        within the designated thirty (30) day period, Customer does not provide written
        notice to XO of its election to

       

      XO
        CONFIDENTIAL.

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      transition
        the affected Services to another carrier, Customer shall be deemed to have
        waived its right to such election. Even if Customer elects to transition
        the
        affected Services to another carrier, Customer shall still be responsible
        for
        paying any and all Additional Charges billed to or remitted by XO up to and
        including the final transition date. The parties agree to cooperate on the
        scheduling of any such transition.

      

      3.6
        Customer agrees that, if XO is subjected to an audit by a third party of
        Customer's traffic which is the subject of this Service Exhibit, Customer
        will
        cooperate in any such audit. Customer further agrees that it will protect,
        defend, indemnify and hold harmless XO, its subsidiaries, affiliates, officers,
        directors and employees from any and all costs resulting from such third
        party
        action.

      

      3.7
        CUSTOMER
        HEREBY REPRESENTS AND WARRANTS
        THAT
        IT
        IS
NOT
        RELYING
        ON
        XO IN
        ANY
        WAY
        TO
        PROVIDE 911, E911 OR ANY OTHER EMERGENCY SERVICES ("911 SERVICES").
Customer
        warrants and represents that it assumes all liability for any and all 911
        SERVICES associated directly and indirectly with its services to its end-user
        customers or to any holder of a telephone numbers issued by XO pursuant to
        the
        Service Exhibit and this Addendum ("End-User"). Customer agrees that XO shall
        not incur any liability, direct or indirect, to any End-User who dials or
        attempts to dial the digits "9-1-1" or any other emergency services number
        or to
        any other person who may be affected by the dialing of the digits "9-1-1"
        or any
        other emergency services number. Customer hereby acknowledges and agrees
        that it
        is fully responsible for all costs and expenses associated with 911 SERVICES,
        including but not limited to any and all state and local authorities for
        the
        funding of 911 SERVICES,
        911 assessments, taxes and the like. Customer represents and warrants that
        it is
        responsible for
        all
        costs associated with any state or local 911-board assessments, existing
        now or
        at any time during the term of the Agreement and its renewal periods, including
        any assessment based on telephone numbers instead of access lines. Customer
        further represents and warrants that, anything herein to the contrary
        notwithstanding, it will not deliver any traffic whatsoever to XO for transport
        and termination in the local calling area of its end user customer(s), including
        but not limited to, 911 traffic. Customer shall include in an appropriate
        contract with its End-Users that relates to Services provided under this
        Service
        Exhibit a limitation of liability that (i) limits its own and XO's liability
        to
        any End-User of Customer for any error or omission in any directory listing
        to
        no more than the costs, if any, assessed to the End-User for directory listing
        services and (ii) provides that XO shall not incur any liability, direct
        or
        indirect, to any person who dials or attempts to dial the digits "9-1-1"
        or to
        any other person who may be affected by the dialing of the digits
        "9-1-1".

      

      3.8
        Customer is prohibited from intermingling traffic or for utilizing this service
        for anything other than enhanced services. Customer expressly agrees, represents
        and warrants that it will not use the Services to originate or terminate
        voice
        calls and/or bypass switched access or other applicable charges. Customer
        understands and agrees that this covenant and the provisions set out in Article
        11 of the Agreement (collectively, "Restrictions") are material and essential
        parts of this Agreement and that Customer's breach of any of the Restrictions
        constitutes a material default of this Agreement. XO reserves the right to
        terminate this Agreement and/or the Services provided hereunder for cause
        immediately upon written
        notice to Customer if XO determines in its sole discretion that Customer
        is
        using or plans to use the
        Services
        in a manner inconsistent with any of the Restrictions. Without limiting any
        other provision of this Agreement,
        Customer further agrees (i) to indemnify, defend and hold harmless XO and
        its
        Affiliates and all
        of their
        employees, directors, officers, and agents from and against all claims, demands,
        actions, causes of actions,
        damages, liabilities, losses, and expenses (including reasonable attorney's
        fees) incurred as a result of Customer's
        breach of this covenant; and (ii) notwithstanding any other provision of
        this
        Agreement, damages
        for
        breach of this covenant shall not be capped or limited in any way. XO may
        audit
        customer's traffic to ensure that Customer is complying with Article 11,
        as well
        as with the prohibitions set forth above.

      

      4.
        PRICING

      

      4.1 For
        each
        Inter-Market Inbound PRI ordered, the following price elements may
        apply:

       

      ??
        Terminating,
        Market Charges Per PRI:
        MRC and
        NRC charges associated with T-1 port at the XO Sonus switch site in the
        terminating market:

       

      XO
        CONFIDENTIAL

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      

      
        	
                MRC
                  per T_1

              	
                NRC

              	
                Term

              
	
                $800

              	
                $0

              	
                1
                  year

              
	
                $750

              	
                $0

              	
                2
                  year

              
	
                $700

              	
                $0

              	
                3
                  year

              

      

       

      ??
        Local
        loop facility:
        MRC and
        NRC charges for the physical connection between Customer location and the
        XO
        Sonus switch site.

      Note:
        The
        local loop charge does not apply if Customer is collocated with XO at the
        XO
        Sonus switch site.

      

      ??
        Market
        Origination Charges:
        MRC and
        NRC charges associated with Customer selected markets as defined in section
        2.1.

       

       

      
        	
                1) Originating
                  Per Market MRC (includes 151
                  100
                  DIDs, and up to five (5) XO rate Centers):

                 

              
	
                MRC
                  per Market

              	
                NRC

              	
                Term

              
	
                $350

                $325

                $300

                 

              	
                $0

                $0

                $0

                 

              	
                1
                  year

                2
                  year

                3
                  year

                 

              
	
                 

                2) DID
                  Numbers (for > 100 DIDs), block of 20 DID numbers:

                 

              
	
                MRC
                  per Block

              	
                NRC

              	
                Term

              
	
                $20

              	
                $0

              	
                1
                  year

              
	
                $20

              	
                $0

              	
                2
                  year

              
	
                $20

              	
                $0

              	
                3
                  year

              

      

      
        	
                 

                3) Additional
                  Per Rate Center MRC (for > 5 rate centers per Originating
                  Market):

                 

              
	
                MRC
                  per Rate Center

              	
                NRC

              	
                Term

              
	
                $50

              	
                $0

              	
                1
                  year

              
	
                $40

              	
                $0

              	
                2
                  year

              
	
                $30

              	
                $0

              	
                3
                  year

              

      

       

      Inter-Market
        Inbound PRI Services are billed one (1) month in advance. The first month
        of
        each Inter-Market Inbound PRI ordered will be prorated for the number of
        days
        the PRI was in service for the month.

      

      5.
        CANCELLATION CHARGES

      

      5.1
        There
        will be no cancellation charge if a Circuit is cancelled within ten (10)
        days of
        Customer's Circuit
        order. If a Circuit is cancelled after the ten (10) day cancellation period
        set
        forth above but prior to the Start
        of
        Service Date, Customer shall pay one month's recurring charges, plus any
        applicable service ordering and
        installation charges. If a Circuit is cancelled after it has been activated,
        including cancellation of Services under
        Section 2.4 of the Agreement, Customer is liable for all charges, which Customer
        agrees is reasonable,
        associated with the service ordering and installation as well as the first
        month
        recurring charges and for the monthly
        recurring charges for the remaining term of the Circuit order, unless such
        Circuit does not meet the
        specifications set forth herein. It is agreed that XO's damages in the event
        of
        Inter-Market Inbound PRI Service
        cancellation shall be difficult or impossible to ascertain. These provisions
        are
        intended, therefore, to
        establish liquidated damages in the event of cancellation and are not intended
        as a penalty.

       

      6.0
        NUMBERING

      

      6.1
        As a
        part of a PRI Service order, Customer may order additional blocks of numbers
        in
        addition to the minimum
        DID numbers provided in accordance with Section 3.1 above. Any and all numbers
        provided by XO
        shall be
        subject to the limitations set forth in this Section.

       

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

      

      6.2
        To
        the extent Customer's request for any PRI Service involves XO obtaining numbers
        on Customer's behalf, XO will undertake a good faith effort to procure and
        provide the numbers requested, but XO does not and cannot guarantee that
        XO will
        be able to provide any or all numbers requested by Customer. Customer
represents
        and agrees that it will comply with all applicable laws, rules, regulations
        orders and decrees, relative
        to any
        use of numbers by Customer. The assignment of any specific number to a
        Customer's Service will be made
        at
        the sole discretion of XO. Customer has no property right to any numbers
        associated with any Services
        furnished by XO. XO reserves the right to assign, designate or change numbers
        associated with the Services provided hereunder, including without limitation,
        the XO service Central Office prefixes associated with such numbers, when
        necessary due to technical issues or as required by any governmental authority,
        the North American Numbering Plan Administrator ("NANPA"), the Pooling
        Administrator ("PA") or other reasons required by law. XO may reclaim any
        numbers not assigned by Customer to its own End-Users when XO deems it necessary
        in the conduct of its business or as required by any governmental authority,
        NANPA, the PA or any other reason required by law. Customer agrees to fully
        cooperate with XO to effect any number changes required hereunder in the
        manner
        directed by XO, including without limitation, procuring and providing to
        XO
        additional numbering resources from NANPA or the PA, if and to the extent
        requested by XO. Without limiting any contrary terms in the Agreement or
        in any
        Tariff, XO shall have no liability to Customer or others associated with
        any
        number resource issues beyond XO's control.

      

      6.3
        On or
        before January 15 and July 15 of each year, Customer shall provide XO
        information (current as of
        December 31"
        and June
        30th,
        respectively), regarding Customer's assignment of any numbers to a third
        party
        including, but not limited to a list of numbers that Customer has assigned
        to
        its own end-users, in the format and pursuant to the procedures set forth
        in
        Attachment 1 to this Service Exhibit (the "TN Report(s)"). XO may at other
        times
        request, and Customer shall provide within ten (10) calendar days of such
        request, TN Reports when such information is necessary to assist XO in obtaining
        additional numbering resources, or when requested by any governmental authority,
        NANPA or any PA. When circumstances allow, XO will use its commercially
        reasonable efforts to give Customer as much notice as possible of any need
        for a
        TN Report to be provided to XO.

      

      6.4
        In
        the event XO receives a valid request by a third party carrier for customer
        proprietary network information, including but not limited to customer service
        records, related to a number assigned by XO to Customer and/or Customer's
        End-Users, Customer hereby authorizes XO to provide any such information
        in XO's
        possession to the third party carrier. If XO does not have information
        sufficient to satisfy the request by the
        third
        party carrier, Customer hereby authorizes XO to instruct such third party
        carrier to contact Customer directly
        and Customer shall provide any such information in its possession to the
        third
        party carrier consistent
        with
        industry standards. Furthermore, in the event XO receives from a third party
        carrier a port-out request related to a number assigned to Customer, XO shall
        port out such number in compliance with procedures set forth by the Federal
        Communications Commission.

      

      6.5
        The
        Parties will address the issue of Local Number Portability ("I_NP") on an
        individual case basis and agree to cooperate with one another in arriving
        at an
        appropriate solution to accommodate LNP issues, if any.

       

      XO
        CONFIDENTIAL

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      7.0
        TERM

       

      The
        term
        of this Service Exhibit shall be for two (2) years from the date of execution
        of
        this Exhibit, but each Service ordered pursuant to this Exhibit will carry
        its
        own term.

       

      IN
        WITNESS WHEREOF, the
        Parties have executed this Service Exhibit by representatives duly authorized
        as
        of the Effective Date set forth above.

       

      United
        American
        Corporation

       

      /s/
        Benoit Laliberte October 12,
        2004

      Customer
        Signature and Date

       

      XO
        Communications, Inc.,

      on
        behalf
        of its operating subsidiaries and affiliates

       

      XO
        Signature and Date

       

       

      XO
        CONFIDENTIAL

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      
        
        
GENERAL
        NONDISCLOSURE AGREEMENT
        T

       

      This
        Nondisclosure Agreement (this "Agreement") is dated as of the 12th day
        of
        October, 2004 between XO
        Communications, Inc. ("XO"), a
        Delaware
        corporation, with offices located at 1 1 1 1 1 Sunset Hills Road,
        Reston,
        VA
        20190, and United
        American Corporation, a
        Nevada
        corporation, ("Company"), with offices located at 3199 E. Warm Springs Road,
        Suite 200, Las Vegas, NV 89120, (XO and Company sometimes are collectively
        referred to herein as the "Parties" and individually as a "Party").

      

      RECITALS

      

      XO
        and
        Company may disclose valuable proprietary information to each other relating
        to
        their respective operations and businesses providing telecommunications services
        only for the purpose of evaluating a business relationship regarding the
        procurement of telecommunications services culminating in the execution of
        a
        Carrier Services Agreement ("CSA") for the provisioning of dedicated transport
        services and/or performing other communications services during the term
        of the
        CSA (the "Project"). For purposes of this Agreement, the party disclosing
        confidential information hereunder is hereinafter referred to as the "Disclosing
        Party"
        and the
        party receiving confidential information hereunder is hereafter referred
        to as
        the "Receiving Party". In addition, other persons and entities, such as
        controlled affiliates of a Party, may (at the request of a Party) disclose
        valuable proprietary information to the other Party with respect to the
        Project.

      

      XO
        and
        the Company would like to protect the confidentiality of, maintain their
        respective rights in, and prevent the unauthorized use and disclosure of,
        such
        information.

      

      AGREEMENT

      

      XO
        and
        Company hereby agree as follows:

      

      I.
        Confidential
        Information. As
        used
        in this Agreement, "Confidential Information" means information not generally
        known to the public, and maintained by the Disclosing Party as confidential,
        whether of a technical, business or other nature that relates to the Project
        stated above or that, although not related to such Project, is nevertheless
        disclosed as a result of the Parties' discussions in that regard, and that
        should reasonably have been understood by the Receiving Party, because of
        (i)
        legends or other markings, (ii) the circumstances of disclosure or (iii)
        the
        nature of the information itself, to be proprietary and confidential to the
        Disclosing Party. Confidential Information may be disclosed in written or
        other
        tangible form (including information in computer software or held in electronic
        storage media) or by oral, visual or other means. For purposes of this
        Agreement, "Disclosing Party" includes controlled affiliates of a Party who
        disclose Confidential Information to the Receiving Party regarding the
        Project.

      

      2.  Use
        of Confidential Information. The
        Receiving Party, except as expressly provided in this Agreement, shall not
        disclose the Disclosing Party's Confidential Information to anyone without
        the
        Disclosing Party's prior written consent. The Receiving Party shall protect
        such
        Confidential Information from disclosure to others, using the same degree
        of
        care used to protect its own confidential or proprietary information of like
        importance, but in any case using no less than a reasonable degree of care.
        The
        Receiving Party shall not reverse-engineer, decompile, or disassemble any
        hardware or software provided or disclosed to it and shall not remove, overprint
        or deface any notice of copyright, trademark, logo, legend or other notice
        of
        ownership from any originals or copies of Confidential Information it obtains
        from the Disclosing Party. The Receiving Party shall not use Confidential
        Information for any purpose other than with respect to the Project.

      

      3.  Exceptions.
        The provisions of Section 2 shall not apply to any information that (i) is
        or
        becomes publicly available without breach of this Agreement; (ii) can be
        shown
        by documentation to have been known to the Receiving Party without
        confidentiality restrictions at the time of its receipt from the Disclosing
        Party; (iii) is rightfully received from a third Party who did not acquire
        or
        disclose such information by a wrongful or tortious act, or in breach of
        a
        confidentiality restriction; (iv) can be shown by documentation to have been
        independently developed by the Receiving Party without reference to any
        Confidential Information; or (v) is identified by the Disclosing Party as
        no
        longer proprietary or confidential.

      

      4.  Receiving
        Party Personnel. The
        Receiving Party shall restrict the possession, knowledge, development and
        use of
        Confidential Information to its employees, agents, subcontractors, consultants,
        advisors and entities controlled by it (collectively, "Personnel") who have
        a
        need to know Confidential Information in connection with the Project. The
        Receiving Party's Personnel shall have access only to the Confidential
        Information they need for such purposes. The Receiving Party shall ensure
        that
        its Personnel are bound

      by
        confidentiality obligations substantially similar to those contained herein
        and
        that such Personnel comply with this Agreement.

       

      5.  
        Disclosures to Governmental
        Entities. If,
        in
        the opinion of its counsel, the Receiving Party becomes legally obligated
        to
        disclose Confidential Information, the Receiving Party shall give the Disclosing
        Party prompt written notice sufficient to allow the Disclosing Party to seek
        a
        protective order or other appropriate remedy, and shall, to the extent
        practicable, consult with Disclosing Party in an attempt to agree on the
        form,
        content, and timing of such disclosure. The Receiving Party shall disclose
        only
        such information as is required, in the opinion of its counsel, and shall
        exercise all reasonable efforts to obtain confidential treatment for any
        Confidential Information that is so disclosed..

       

      6.  
        Ownership of Confidential Information. All
        Confidential Information disclosed under this Agreement (including information
        in computer software or held in electronic storage media) shall remain the
        exclusive property of the Disclosing Party, and the Receiving Party shall
        have
        no rights, by license or otherwise, to use the Confidential Information except
        as expressly provided herein. No patent, copyright, trademark or other
        proprietary right is licensed, granted or otherwise conveyed by this Agreement
        with respect to Confidential or other information.

       

      7.  
        No
        Warranty or Obligation to Proceed. No warranties of any kind are given by
        either
        Party with respect to the accuracy, appropriateness or completeness of
        information provided to the other. The Parties agree that, unless and until
        a
        definitive written agreement with respect to any transaction relating to
        disclosures under this Agreement is completed, neither Party shall be under
        any
        legal obligation of any kind whatsoever with respect to such a transaction
        by
        virtue of this Agreement or any written or oral expression with respect to
        such
        a transaction by any of their respective directors, officers, employees,
        agents,
        representatives or advisors thereof, except, in the case of this Agreement,
        for
        the matters specifically agreed to herein,

       

      8.  
        Return of Confidential Information. The
        Receiving Party promptly shall return or destroy upon request, and verify
        in
        writing the completeness of the Confidential Information returned or the
        destruction of, all tangible material embodying Confidential Information
        (in any
        form and including, without limitation, all summaries, copies and excerpts
        of
        Confidential Information and all electronic media or records containing or
        derived from Confidential Information) upon the earlier of (i) the completion
        or
        termination of the dealings between the Disclosing Party and the Receiving
        Party, and (ii) the Disclosing Party's written request. Upon request by the
        Disclosing Party, the Receiving Party shall provide a written certificate
        of
        such destruction signed by an officer of the Receiving Party. The
        confidentiality obligations set forth in Section 2 above shall survive any
        such
        return or destruction of Confidential Information.

       

      9.  
        Export
        Control. The Receiving Party acknowledges that the Confidential Information
        governed by this Agreement is subject to US. export laws and regulations
        and
        that any use or transfer of the Confidential Information or products
        incorporating the Confidential Information must be authorized under those
        laws
        and regulations. The Receiving Party agrees that it shall not use, distribute,
        transfer or transmit directly or indirectly the Confidential Information
        or any
        immediate product (including processes and services) produced directly by
        the
        use of such Confidential Information, except in compliance with U.S. export
        laws
        and regulations.

       

      10.  
        Independent Development. The
        Disclosing Party acknowledges that the Receiving Party may currently or in
        the
        future be developing information internally, or receiving information from
        other
        parties, that is similar to the Confidential Information. Accordingly, nothing
        in this Agreement shall be construed as a representation or agreement that
        the
        Receiving Party shall not develop, or have developed for it, products, concepts,
        systems or techniques that are similar to or compete with the products,
        concepts, systems or techniques contemplated by or embodied in the Confidential
        Information, provided that the Receiving Party does not violate any of its
        obligations under this Agreement in connection with such development. Nothing
        herein shall restrict either Party from pursuing any business opportunities
        provided it complies at all times with the non-disclosure obligations set
        forth
        herein.

       

      11.  
        Remedies. The Receiving Party acknowledges that Confidential Information
        is
        unique and valuable, and that disclosure or use of Confidential Information
        in
        violation of this Agreement could cause irreparable harm to the Disclosing
        Party
        for which monetary damages may be difficult to ascertain or be an inadequate
        remedy. Therefore, the Parties agree that in the event of a breach or threatened
        breach of confidentiality, the Disclosing Party may be entitled to specific
        performance and injunctive or other equitable relief

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      as
        a
        remedy for any such breach or anticipated breach without the necessity of
        posting a bond, Any such relief shall be in addition to and not in lieu of
        any
        appropriate relief in the way of monetary damages.

      

      12.  Limited
        Relationship. This Agreement shall not create a joint venture, partnership
        or
        other formal business relationship or entity of any kind, or an obligation
        to
        form any such relationship or entity. Each Party shall act as an independent
        contractor and not as an agent of the other Party for any purpose, and neither
        shall have the authority to bind the other.

      

      13.  Cumulative
        Obligations. Each Party's obligations hereunder are in addition to, and not
        exclusive of, any and all of its other obligations and duties to the other
        Party, whether express or implied, in fact or in law.

      

      14.  Assignment.
        This Agreement may not be assigned in whole or in part by any Party without
        the
        prior written consent of the other Party except that either Party may assign
        this Agreement without consent to any operating subsidiary or controlled
        affiliate of the assigning Party. Any such assignment without the other Party's
        prior written consent shall be void.

      

      15.  Scope;
        Termination. This Agreement shall become effective as of the date first written
        above and shall automatically terminate at the end of one (1) year thereafter
        or
        upon the completion or termination of the Parties' evaluation or pursuit
        of the
        Project, whichever is later. Notwithstanding such expiration or termination,
        all
        of Receiving Party's nondisclosure obligations pursuant to this Agreement
        shall
        survive with respect to any Confidential Information received prior to such
        expiration or termination.

      

      16.  Nonwaiver.
        Any failure by either Party to enforce the other Party's strict performance
        of
        any provision of this Agreement shall not constitute a waiver of its right
        to
        subsequently enforce such provision or any other provision of this
        Agreement,.

      

      17.  Governing
        Law; Etc. This
        Agreement shall be governed by the laws of the State of New York without
        regard
        to its choice of law provisions, and may be executed in as many counterparts
        as
        may be required, including facsimile, each of which when delivered is an
        original but all of which taken together constitute one and the same instrument
        and the facsimile execution pages will be binding upon the executing Party
        to
        the same extent as the original executed pages. If a provision of this Agreement
        is held invalid or unenforceable under any applicable law, such invalidity
        or
        unenforceability shall attach only to such provision or part thereof and
        the
        remaining part of such provision and all other provisions hereof shall continue
        in full force and effect. Further, all terms and conditions of this Agreement
        shall be deemed enforceable to the fullest extent permissible under applicable
        law, and when necessary, the court is requested to reform any and all terms
        or
        conditions to give them such effect.

      

      18.  Entire
        Agreement; Amendment. This Agreement constitutes the entire agreement between
        the Parties relating to the matters discussed herein and may be amended or
        modified only with the mutual written consent of the Parties. Electronic
        Mail
        shall in no way be considered a "writing" sufficient to change, modify, extend
        or otherwise affect the terms of the Agreement.

       

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

       

      XO
        Communications, Inc.

      
         

        By:
          

        Printed
          Name:

        Title:
          

        Date:
          

      

      United
        American Corporation

       

      
        By:
          /s/Benoit Laliberte

        Printed
          Name: Benoit Laliberte

        Title:
          CEO

        Date:
          October 12, 2005

      

       

      XO
        CONFIDENTIAL

       

      
        
          
          

        

        
          15Exhibit 10.8

     

    DISTRIBUTION
      AGREEMENT

    

    

    THIS
      AGREEMENT made
      as
      of the 28th day of July,
      2004.
      BETWEEN:

    

    UNITED
      AMERICAN CORP., a
      corporation incorporated under the laws of one
      of
      the states
      of
the
      United States
      and
      having its head office at 220, rue
      de
      la
      Coulee, Town
      of
      St-Hilaire, J3II .5Z6,
      Province
      of
      Quebec, herein
      represented by Benoit
      Laliberte, its
      President, duly authorized by a Resolution of its Board of Directors
      herein
      annexed.

        (hereinafter
      called "The
      Producer") -
      and
      -

    

    

    DISTRIBUTION
      CAR-TEL INC.,
      a
      corporation incorporated under Part T of the Quebec Companies
      Act and having its
      head
      office
      at
      1750 Marie Victorin, Suite 290, Longueuil, J4G 1A5, Province of Quebec, herein
      represented by Luc
      Charlebois, its
      President, duly
      authorized
      by a Resolution of its Board of Directors herein annexed.

     

        (hereinafter
      called "The
      Distributor")

     

    WHEREAS
      The Producer is
      the
      importer of the products listed in Schedule "A" attached hereto (the
'Product");

    

    AND
      WHEREAS
      the
      Distributor
      wishes
      to
      obtain a non-exclusive right to distribute the Product
      throughout
      Canada (hereinafter the "Territory")
      and the
      exclusive right to distribute the Product
      throughout
      the Province of Quebec and the Maritimes (hereinafter the "Exclusive
      Territory"),
      on the
      terms and subject to the conditions herein contained_

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSES that
      in
      consideration of
      the
      respective covenants and agreements of the parties contained herein, it is
      agreed as
      follows:

    

    0.1 Definitions:

    
       

      
        	·  	
                Backroom
                  operation shall mean all
                  information
                  pertaining to the User,
                  including
                  the detailed billing to all Users in the Exclusive
                  Territory whether
                  the Product
                  was
                  sold by the Distributor
                  or
                  someone else and outside the Exclusive
                  Territory if
                  the Product
                  was
                  sold by Distributor,
                  the
                  quantities of products sold in
                  the
                  Exclusive
                  Territory and
                  outside the Exclusive
                  Territory if
                  sold by Distributor.

              

      

      

      
        	·  	
                Territory
                  shall mean all of Canada ;

              

      

       

      
        
          	·  	
                  Exclusive
                    Territory
                    shall
                    mean the Provinces of Quebec, New Brunswick, Prince Edward Island,
                    Nova
                    Scotia, and Newfoundland.

                

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	·  	
                Line
                  shall
                  mean the connection of the Product
                  to
                  the Producer's
                  systems
                  to allow the function of the Product
                  as
                  a communicating device and a telephone apparatus through the Internet
                  system, operating wireless and using technology which converts
                  voice into
                  data, (commonly known as Voice over Internet Protocol) including
                  all
                  services and options offered by the Producer
                  to
                  the User
                  in
                  relation to the use of the Line.

              

      

      

      
        	·  	
                Marketing
                  plan the
                  marketing plan attached herein as schedule B, with expenditure
                  budget
                  by

                 

              

      

      
        	·  	
                the
                  Producer
                  of
                  at least
                  $50,000
                  for
                  the first 180 days from the signing of the present Agreement for
                  every
                  subsequent year a marketing budget that is at least equal to three
                  percent
                  (3%) of yearly Revenues
                  but
                  under no circumstances such marketing expenditure can be less than
                  the
                  greater
                  of the first year expenditure or three percent (3%) of Revenues.

              

      

      

      
        	·  	
                "National
                  Retail Chain" means
                  a
                  corporate entity operating retail outlets throughout the Territory
                  and
                  having a single purchasing and distribution center. As more fully
                  identified in Schedule C.

              

      

      

      
        	·  	
                Recurring
                  Revenues shall
                  mean payments made by the User
                  to
                  the Producer
                  on
                  a recurring basis to maintain the right of use of the Tdlphone
                  Iine and
                  for the use of other services supplied by the Producer.

              

      

      

      
        	·  	
                Revenues
                  shall
                  mean all and every payment made by the User to the Producer
                  or
                  any other person affiliated to the Producer
                  or
                  the successor of the Producer
                  for
                  the connection of the Line,
                  the
                  monthly or periodic payment fox maintaining the Line,
                  for
                  long distance calls
                  made
                  by using the Line
                  and
                  Recurring
                  Revenues and
                  any
                  other
                  payment made for the use of the Line,
                  whatever
                  the mode of payment, including by prepaid cards or other prepaid
                  instruments;

                 

              

      

      
        	·  	
                User
                  shall
                  mean the end user of the Product.

              

      

    

     

    1.00
      Appointment of Distribution

    

    1.01.1
      The Producer appoints the Distributor:

     

    
      
        	a)  	
                As
                  its non-exclusive distributor in the Territory
                  and;

              

      

       

    

    
      	b)  	
              as
                its exclusive distributor in the Exclusive
                Territory, upon
                the terms and conditions herein set
                out.

            

    

    

    1.01.2
      

    a)
      In the
      event The Producer
      appoints
      an exclusive distributor in Canada, outside the Exclusive
      Territory, other
      than Distributor
      the
      latter shall cease to have any right or authority to distribute the Product
      in
      the
      Province where
      another
      exclusive distributor was appointed. Any Revenues attributable to the sale
      by
Distributor
      of
      the
Product
      outside
      the Exclusive
      Territory prior
      to
      the appointment of another Exclusive
      Distributor, shall
      continue to be payable to Distributor
      in
      accordance to section 1.05.

      

    b) Distributor
      shall
      be
      allowed to complete the orders on hand, accepted by Producer
      prior
      to
      the appointment of
      an
      exclusive Distributor
      outside
      the Exclusive
      Territory.

     

    
          c) Under
        no circumstances will Producer
        allow
        any
        other person to sell, distribute or market the Product
        in
        the
Exclusive
        Territory.

       

          d) The
        Distributor
        shall
        have the right until December 31, 2004, to sell in the Territory.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      e)
        In
        the event
        such sales
        occur the Distributor
        shall
        receive all Revenues
        in
        relation to the Lines
        connected
        to the Product
        sold
        by
        the retailers throughout the Territory.
        In
        the
event
        that another distributor is appointed in the non Exclusive
        Territory it
        is
        understood that such appointment will provide for exclusion of the National
        Retail Chains to
        which
        the Distributor
        has
        sold
        the Product.

    

     

    1.02
      The
      parties
      agree that the Producer
      has
      permitted Camelot Info
      to sell
      the Product
      through
      the Distributor
      in
      conformity with the terms of the present agreement between the Producer
      and
      Camelot Info.

     

    1.03
      As
      the
      authorized distributor, the Distributor
      agrees
      to
      use its best efforts to sell and promote the Product
      in conformity
      with section 5.01 (III).

     

    1.04
      The
      parties acknowledge that the principal purpose of the distribution of the
Product
      is
      to
      generate Revenues
      from
      the
      use of the Product by the User.

     

    1.05
      Producer
      shall
      pay
to Distributor
      forty
      percent (40%)
      of
all
      and
      any Revenues
      received
      by Producer
      for
      the
      use
      of the
Product
      if
      the
Product

    

    a)  is
      sold
      by Distributor
      anywhere
      in
      the
      Territory
      ;

    

    b)  is
      sold
      by Distributortor anyone else in the Exclusive
      Territory.

    

    Whether
      the Product
      was
      sold
      prior or subsequent to the signing
      of
the
      present Agreement. 

    

    2.00
      New
      Product

     

    2.01
      Producer shall
      offer to the Distributor,
      in
      exclusivity in the Exclusive
      Territory, and
      Distributor
      accepts
      and the Distributor
      shall
      have the obligation to market and distribute in the Exclusive
      Territory any
      and
      all similar new Product,
      including
      any accessories and prepaid cards
      for
      the
      use of the Product
      and
      or
      the use of the services
      supplied
      by the Producer,
      developed,
      marketed, sold, distributed by or in any other manner or form promoted by
      Producer. The parties will
      negotiate
      the terms and conditions applicable to the marketing and distribution by
Distributor
      of
      the
      new product. Any Revenues
      generated
      by the new product or accessory shall be governed by section 8.03.

    

    Any
      reference to prepaid cards must be in relation to the Teliphone
      Product (Wi-Fi)

3.00 Status
      of Distributor

     

    3.01
      The status of the Distributor
      shall
      be
      that
      of an independent contractor and the Distributor
      shall
      have no authority to assume or create any obligation whatsoever, expressed
      or
      implied, in the name of the Producer,
      nor
      to
      bind Producer
      in
      any
      manner whatsoever. The Distributor
      shall
      have no authority hereunder to enter into any contract of
      sale
      or employment on behalf of Producer,
      nor
      to
      make allowances or adjustments on Producer's
      accounts
      for
      the
      return of merchandise, except pursuant to the written authorization of
Producer.

     

    4.00
      Sub distributors /
      Assignment
      

     

    4.01
      Sub distributors

    

    Producer
      hereby
      grants to the Distributor
      the
      right
      to appoint persons or companies as its sub distributors (herein called "Sub
      distributors") of the Product,
      provided
      however that the appointment by the Distributor
      of
      one or
      more Sub distributors shall not relieve the Distributor
      of
      any of
      its obligations hereunder. Producer
      shall
      be

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    requested
      in writing for its consent for such appointment, which consent will not be
      unreasonably withheld.

5.00
      Required Purchase Quantity

     

    5.01
      I)
      The
Distributor
      shall
      purchase directly, on an exclusive basis, from Producer
      such
      semi
      annual quantities of the Product
      as
      set
      out hereafter. Unless the parties agree to otherwise in
      writing,
      the purchase price for the Product
      shall
      be
      in accordance with
      Section
      6.01 hereof:

     

    II)
      Subject to Producer:

    

    a)  supplying
      the Product
      as
      ordered by Distributor,
      and

    

    b)  the
      Product
      meets
      all
      the Technical specifications; and

    

    c)  the
      price
      structure of the revenues is
      competitive; and

     

    d)  have
      in
      place an adequate client service structure.

    

    III)
      Distributor
      shall
      purchase directly from
      Producer
      the
      following minimum quantities:

     

    
      	
              a)

            	
              Year
                1:

            	
              2,500
                the first nine months.

            
	
              b)

            	
              Year
                2:

            	
              3,750
                every six months

            
	
              c)

            	
              Year
                3:

            	
              5,000
                every six months

            
	
              d)

            	
              Year
                4:

            	
              6,250
                every six months

            
	
              e)

            	
              Year
                5:

            	
              7,500
                every six months

            

    

     

    unless
      the parties agree to otherwise in writing.

     

    6.00
      Purchase and Sale of the Product

    

    6.01
      Subject
      to and in accordance with the terms and conditions of this Agreement,
Producer
      hereby
      agrees to sell to the Distributor,
      and
      the
Distributor
      agrees
      to
      buy from Producer,
      the
      Product
      at
      a
      price (the "Purchase Price")
      which
      shall be the Producer's
      landed
      cost of producing the Product
      (F.O.B. destination)
      plus ten percent (10%),

    

    6.02
      All
      prices for the Product
      referred
      to herein are payable by the' Distributor
      to Producer
      in
      the
      currency of Canada.

     

    7.00
      Shipping and
      Payment Arrangements

    
7.01
      The
      Product
      will
      be
      shipped to one destination stipulated by the Distributor
      upon
      receipt by Producer
      of
      the
Distributor's purchase
      order. The Product
      shall
      be
      sold F.O.B. Distributor's warehouse.

    

    Terms
      of
      payment shall be:

    

    
      	a)  	
              for
                the first deliveries, during the two first months from the signing
                of this
                Agreement, net sixty (60) days from date of activation of the Line;
                and

            

    

     

    
      
        	b)  	
                any
                  delivery after the initial two months,net thirty (30) days from
                  the date
                  of activation of the Line
                  .

              

      

7.02
      Producer shall
      Initially grant Distributor a line
      of,
      credit of Canadian $50,000.00 for
      Product
      purchased.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    8.00
      Obligations
      of Producer

     

    8.01
      Producer
      agrees
      that during the term
      of
      this
      Agreement, it shall:

     

    
      	(a)  	
              sell
                to the Distributor,
                at
                the Purchase
                Price, such
                quantities of the Product
                as
                are ordered by the Distributor
                from
                time to time;

            

    

     

    
      	(b)  	
              deliver
                all the Product
                ordered
                by the Distributor,
                upon
                the terms
                otherwise
                set out herein, within and not later than sixty (60) days from the
                date of
                the receipt by the Producer
                of
                the said purchase order;

            

    

     

    
      	(c)  	
              refund
                or credit to the account of the Distributor the amounts paid or owing
                by
                the Producer
                for
                any Product
                which
                is defective or faulty and which the Distributor
                returns
                to Producer,
                provided
                that the fault or defect does not arise as a result of the actions
                of the
                Distributor
                nor
                arises as a result of the actions of the retailer or the User;only
                the
                Producer
                shall
                have the authority and right to declare the Product
                defective
                and/or faulty.

            

    

     

    
      	(d)  	
              use
                its best efforts to maintain or improve the quality and standards
                of the
                Product;

            

    

     

    
      	(e)  	
              provide
                to the Distributor,
                at
                its cost, any and all sales promotional material, brochures, price
                lists
                and any other literature relative to the Product
                at
                such time and in such quantities as may be reasonably requested by
                Distributor,
                and

            

    

     

    
      	(f)  	
              assist
                the Distributor
                by
                all reasonable means in selling and distributing the Product
                to
                retailers, including, without limitation, coordinating sales programs
                with
                the Distributor;
                and

            

    

     

    
      	(g)  	
              have
                at all times available locally a sufficient quantity of the Product
                to
                meet the demand as communicated by Distributor
                to
                Producer.
                By
                October 15, 2004 Producer's inventory
                available locally must be equal to 1,000 units of the Product.
                After
                October 15, 2004 the minimum quantities of inventory available locally
                in
                the city of
                Montreal must be equal to the total amount of Product
                ordered
                by Distributor
                during
                the preceding 15 days;
                and

            

    

     

    
      	(h)  	
              provide
                to the Distributor
                , to
                the retailers and to the User technical support and have in place
                a
                reputable and efficient customer support service to meet properly
                and
                adequately the demand without
                delay;

            

    

     

    
      	(i)
                	
              to
                use its best effort to put in place a competitive strategy to meet
                any
                competition and react to any new competition with enough resources
                and
                speed to maintain the Product
                and
                the services in the market at a competitive price to the User.

            

    

     

     

    8.02
      Producer
      agrees
      that during the term of this Agreement, it shall not:

     

    
      	(a)  	
              withhold
                delivery of the Product
                ordered
                by the
                Distributor
                for any reason other than non-payment in respect of previous orders
                or
                breach of any of the terms and conditions of this
                Agreement;

            

    

     

    
      	(b)  	
              distribute,
                sell, or solicit orders for the Product
                within
                or for ultimate delivery to any place within the Exclusive
                Territory defined
                herein without the prior written consent of the Distributor;
                and

            

    

     

    
      	(d)  	
              (d)
                Subject to clause 1.02, Producer
                shall
                not sell directly or indirectly the Product
                otherwise
                than through 

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      Distributor.

    

    

    8.03
      Pay
      Distributor
      forty
      percent (40%) of all Revenues
      on
      the
      15ui
      day of
      each month for all Revenues
      received
      by Producer
      during
      the preceding month.

    

    8.04
      Producer shall
      give Distributor:

    

    
      	a)  	
              during
                the first 60 days from the date of signing the present Agreement,
                the
                right to examine the hardware used by Producer
                for
                the communication by the User
                for
                the purpose of ascertaining whether Producer
                can
                offer the service of Telecommunication and that the apparatus has
                sufficient
                capabilities to answer adequately the
                demand;

            

    

     

    
      	b)  	
              
                on
                  a regular basis access
                  to the
                  Backroom
                  Operation to
                  allow at all time direct or distant access to the billing of the
                  Users,

              

            

    

     

    8.05 Producer
      at
      its
      cost shall mace available,
      to
      Distributor
      and
      the
      retailers of the Product,
      qualified
      personnel to explain the Product
      and
      its
      operation.

     

    9.00
      Responsibilities
      of the Distributor

    

    9.01
      The
      Distributor
      agrees
      that during the term of this Agmeement, it shall:

    

    
      	(a)  	
              comply
                and cause all its Subdistributors or parties appointed by it to comply,
                with all applicable laws in the Territory
                relating
                to the advertising, distribution and sale of the Product
                and
                with the terms and conditions of this
                Agreement;

            

    

    

    
      	(b)  	
              devote
                its best efforts to the performance of its obligations under this
                Agreement;

            

    

    

    
      	(c)  	
              make
                every reasonable effort and use proper means to develop
                the
                market potential for trade in the Product,
                and
                actively solicit orders for the sale of the Product,
                provided
                that in no event shall the Distributor
                be
                required to expend any moneys on advertising or other marketing and
                sale
                techniques, except as the Distributor,
                in
                its sole discretion, determines appropriate;
                and

            

    

    

    
      	(d)  	
              develop,
                promote and maintain with customers, the goodwill and reputation
                of
                the
                Product.
                10.00 Terms of Agreement

            

    

     

    10.01
      'This
      Agreement shall come into effect on its date of execution and shall continue
      in
      full force and effect, unless terminated earlier in accordance with the terms
      set out below, until the fifth (5th) anniversary of the date of execution (the
      'Initial Term").

     

    10.02
      Provided
the
      Distributor
      has
      complied with all the terms and conditions hereof, this Agreement shall be
      automatically
      renewed at the
      completion
      of the Initial Term and shall continue on the same terms and conditions
      as
      contained herein for successive
      two
      (2)
      year periods (the "Renewal Term").

    

    10.03
      Notwithstanding the provisions contained in Section 10.01 above, the parties
      hereto agree that this Agreement shall immediately terminate without notice
      to
      either parry upon the occurrence of any one or more of the

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    following
      events:

    

    
      	a)  	
              the Distributor
                shall
                file an assignment in bankruptcy or be or become bankrupt or upon
                the
                appointment
                of
                a receiver for all or substantially all of the property or assets
                of the
                Distributor
                or
                upon the making by the Distributor
                of
                any assignment or attempted assignment for the benefit of creditors
                or
                upon the institution by the Distributor
                of
                any act or proceeding for the winding up of its
                business.

            

    

    

    10.04
      The
      parties agree that this agreement may be terminated at the option of the
Producer
      if
      there
      is any indebtedness due by the Distributor
      and:

    
      	a)  	
              a
                notice of default to pay is sent to the Distributor;
                and

            

    

     

    
      
        	b)  	
                after
                  the lapse of five (5) working days, payment is not received from
                  the Distributor.

              

      

    10.05
      I)
      Upon
      termination of this Agreement pursuant to lapse of time or notice of
      termination:

    

    
      	(a)  	
              the
                Distributor
                shall
                discontinue any and all representations or implications that it is
                a
                Distributor
                for
                or is otherwise affiliated with Producer;
                and

            

    

    

    
      	(b)  	
              Producer
                shall
                repurchase from the Distributor
                from
                or any sub-Distributor
                as
                the case may be, any of the Product
                in
                the Distributor's inventory
                at the cost to the Distributor
                for
                such Product,
                less
                any amount then owing from the Distributor
                to
                Producer.

            

    

    

    
      	(c)  	
              notwithstanding
                the termination of this Agreement, whatever the cause provided the
                cause
                is not that which is stipulated at 10.03(a), whether such termination
                was
                initiated by the Producer
                or
                the Distributor,
                Producer shall
                continue to pay Distributor
                the
                amounts referred to in section $_03 in relation to all the active
                Users
                at
                the date of effective termination of the Agreement as long as the
                User
                initially
                has connected his Line
                during
                the term of this Agreement or any renewal thereof and continues to
                use the
                Line.
                Producer shall
                not do anything to incite the User to make any change and Producer
                shall
                not do anything that can have as an effect to reduce the amount of
                Revenues
                payable
                to Distributor
                after
                the termination.

            

    

    

    
      	(d)  	
              upon
                Termination and for a period of 2 years from date of Termination
                ,Producer,
                shall
                not have any dealings, directly or indirectly with Distributors:

            

    

    
      
        	a)  	
                 Retailers
                  chains and;

              

      

      
        	b)  	
                 Cable
                  distributors.

              

      

    

     

    II)
      In
      case of contravention by Producer,
      Distributor shall
      have the following rights:

     

    
      
        	a)  	
                Ask
                  for injunctive relief and;

              

      

      
        	b)  	
                For
                  damages and;

              

      

    

    
      	c)  	
              Without
                restricting its right under (a) and (b) above Producer
                shall
                pay to Distributor
                forty
                percent (40%) of all Revenues generated to Producer
                as
                the result of any contravention to the present
                prohibition.

            

    

     

     III)
      Should the present Distribution Agreement be transferred, assigned and made
      over
      to a third party and in the event
      Clause 10.03 is the reason for termination, no monetary or legal rights shall
      exist for the benefit of the
      Distributor or the sub-Distributor(s).

    
       

      11.00
        Use of Trademarks

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

     

    11.01
      With
      respect to the use of any of the trademarks associated with
      the Product,
      now
      or at
      any time registered in the
      name of
Producer
      (the
      "Trademarks"), the parties agree as follows:

    

    
      	(a)  	
              all
                representations of any Trademarks which the Distributor
                intends
                to use in any promotional materials (the
                "Materials")
                shall be submitted to Producer
                for
                prior approval of design, colour and other details and
                no
                Materials containing any of the Trademarks shall be distributed by
                the
                Distributor
                or
                on behalf of the Distributor
                without
                the written approval of Producer;
                and

            

    

    

    
      	(b)  	
              Producer
                shall
                not withhold its approval unreasonably and, unless Producer
                has
                advised the Distributor
                in
                writing within three (3) business days of receipt of the Materials
                for
                approval that Producer
                does
                not approve of the use of such Materials, Producer
                shall
                be deemed to have approved of the use of such
                materials.

            

    

     

    11.02
      The
Distributor
      shaII
      not
      change or vary any of the Trademarks nor use any other Trademarks which are
      similar to or
      substantially similar to or so nearly resembling the `trademarks so as to be
      Iikely to cause deception or confusion
      to the
      public.

     

    12.00
      Confidential Information

     

     12.01

    a)
      The
Distributor
      agrees
      that all information, knowledge and data of a confidential nature ("Confidential
      Information") which it shall acquire or which may come to its knowledge during
      the term this Agreement shall at all times (both during the taut
      of
      this
      Agreement and subsequent to the termination thereof) and for all purposes be
      held by the Distributor
      in
      confidence and the Distributor
      agrees
      that it shall not (both during the term of this Agreement and subsequent to
      the
      termination thereof) disclose, divulge, communicate orally, in writing or
      otherwise to any person or persons any Confidential Information. Notwithstanding
      the above, the Distributor
      shall
      be
      entitled to disclose such Confidential Information to its duly appointed Sub
      distributors. For the purposes hereof, "Confidential Information"
      includes, but is not limited to information emanating from Producer,
      concerning research, development, patents, copyright, industrial property
      rights, marketing plans and
      strategies, profits, costs, pricing and systems of procedure.

     

    b)
      The
Producer
      agrees
      that all information, knowledge and data of a confidential nature ("Confidential
      Information") which it shall acquire or which may come to its knowledge during
      the term this Agreement shall at all times (both during the term of this
      Agreement and
      subsequent
      to the termination thereof) and for all purposes
      be held by the Producer
      in
      confidence and the Producer
      agrees
      that it shall not (both during the term
      of this
      Agreement and subsequent to the termination thereof) disclose, divulge,
      communicate orally, in writing or otherwise to any person or persons any
      Confidential Information. For the purposes hereof, "Confidential Infomnation"
      includes, but is not limited to information emanating from Distributor,
      concerning
      research, development,
      patents, copyright, industrial property rights, marketing plans and strategies,
      profits, costs, pricing
      and
      systems of procedure.

     

    12.02
      Immediately following the termination of this Agreement, the Distributor
      agrees
      to
      transfer and deliver to Producer
      all
      documents, notebooks, charts, files and records 

              
      containing or referencing Confidential Information including copies, summaries,
      and
      notes
      in
      its possession or control.

     

    13.00
      Patent Infringement and Conformity to Law.

    

    13.01
      Producer will
      defend claims against the Distributor
      that
      Product
      supplied
      hereunder infringe a Canadian patent. Producer
      will
      pay
      resulting court costs, damages and legal fees finally awarded provided that:
      (a)
      the,Distributor°

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    promptly
      notifies Producer
      in
      writing of
      the
      claim; (b) the Distributor
      provides
      Producer
      with
      all
      information and assistance necessary to defend or settle the claim; and (c)
      Producer
      has
      sole
      control of the defense and all related
      settlement
      negotiations. The Distributor
      agrees
      that if the Product
      supplied
      hereunder
      become,
      or in the opinion
      of Producer
      are
      likely to become, the subject matter of a claim, the Distributor will
      permit Producer
      at
      its option
      and expense either to: (a) procure the right for the Distributor
      to
      continue selling the Product;
      or
      (b)
      replace or
      modify
      the Product
      so
      that
      they do not infringe any patent. If neither alternative is reasonable in the
      opinion of
      Producer,
      the Distributor
      agrees
      to
      return the Product
      to Producer on
      request and Producer
      agrees
      to
      grant the Distributor
      a
      credit
      for the purchase price paid for the Product
      by
      the
Distributor.
      The
      liability of Producer
      under
      this paragraph is personal to Producer
      and
      may
      not be asserted against any assignee of Producer
      hereunder. Producer
      shall
      have no liability hereunder for any claim which is based on a use or
      modification of the Product
      for
      a
      purpose for which the Product
      were
      not
      designed.

    

    13.02
      Producer warrants
      that during the term of this Agreement and any renewal thereof that the
Product
      and
      its
      use shall at all time comply with the law.

     

    14.00
      Warranty

     

    14.01
      The
      Warranties applicable to each of the Product
      sold
      to
      the Distributor
      under
      this Agreement shall conform to the separate manufacturing product warranties
      then in effect with respect to such Product,
      copies
      of
      which have been furnished to the Distributor,
      and
      the
Distributor
      agrees
      to
      inform its customers of such warranties and any changes thereto that
Producer
      supplies
      to the Distributor
      from
      time
      to time. Such warranties are in lieu of and exclude
      all other conditions, warranties, guarantees, obligations, rights or
      representations (including any warranties
      as to
      merchantability, fitness or durability), expressed or implied, arising by
      statute or otherwise.

     

    15.00
      GENERAL CONTRACT PROVISIONS

     

    15.01
      All
      notices, requests, demands or other communications (collectively, 'Notices")
      by
      the terms hereof required or permitted to be given by one party to any other
      party, or to any other person shall be given in writing by personal delivery
      or
      by registered mail, postage prepaid, or by facsimile transmission to such other
      party as follows

    
      
        	    (a)      
                	
                To
                  Producer at:     

                220
                  , Rue de La coulee
ST-HILAIRE,
                  J3H 5Z6, Quebec, Tel: 514-788-4890

                Fax:
                  450-446-134S

              

      

      
        	    (b)      	
                To
                  Distributor at: 

                1750
                  , Maxie-Victorin ,suite 290 , 

                Longucuil
                  , JAG 1AS, Quebec,

                Tel
                  : 450-646-3355

                Fax
                  : 450-646-4455

              

      

    

     

    or
      at
      such other address as may be given by such person to the other parties
      hereto
      in
      writing from time to time. If any party bound hereby or any permitted transferee
      of shares hereunder shall not have given the parties hereto notice setting
      forth
      an address for the giving of Notices, the Notice for such person shaII be deemed
      to have been properly given
      if
      given
      in accordance with the terms hereof as if given
      to
      the
      transferor(s) of such shares.

     

    All
      such
      Notices shall be deemed to have
      been
      received when delivered or transmitted, or, if mailed, 3 business days
      after 12:01 a.m. on the day following the day of the mailing
      thereof.
      If any Notice shall have been mailed and
      if
      regular mail service shall be interrupted by strikes or other irregularities,
      such Notice shall be deemed to have

    
 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    been
      received 3 business days after 12:01 a.m. on the day following the resumption
      of
      normal mail service, provided
      that during the period that regular mail service shall be
      interrupted
all
      Notices
      shall be given by personal
      delivery
      or by facsimile transmission.

     

    15.02
      The
      parties shall sign such further and other documents, cause such meetings to
      be
      held, resolutions passed and by-laws enacted, exercise their vote and influence,
      do and perform and cause to be done and performed such further and other acts
      and things as may be necessary or desirable in order to give full effect to
      this
      Agreement and every part
      thereof.

     

    15.03
      This
Agreement
      may
      be
      executed in several counterparts, each of which so executed shall be deemed
      to
      be an original and such counterparts together shall be but one and the same
      instrument.

     

    15.04
      Time
      shall be of the essence of this Agreement and of every part hereof and no
      extension or variation of this Agreement shall
      operate
      as a waiver of this provision.

     

    15.05
      This
      Agreement constitutes the entire Agreement between the parties with respect
      to
      all of the matters herein and its execution
      has not been induced by, nor do any of the parties rely upon or regard as
      material, any representations or
      writings
      whatever not incorporated herein and made a part hereof and may not be amended
      or modified in any respect
      except by written instrument signed by the parties hereto. The Schedules
      referred to herein are incorporated
      herein
      by reference and form part of the Agreement

     

    15.06
      This
      Agreement shall inure to the benefit of and be binding upon the parties and
      their respective heirs, executors, administrators, successors, legal
      representatives and permitted assigns.

     

    15.07
      Any
      amount over due, payable by one party to the other, shall bear interest at
      the
      rate of 24% per year 2% per month.

     

    15.08
      The
      division of this Agreement into articles and sections is for convenience of
      reference only and shall not affect the interpretation or construction of this
      Ageement.

     

    15.09
      This
      Agreement
      shall be governed by and construed in accordance with the laws of the Province
      of Quebec and the federal laws of Canada applicable therein and each of the
      parties hereto agrees irrevocably to conform to the jurisdiction of the Courts
      of the Province of Quebec.

     

    15.10
      In
      this
      Agreement, words importing the singular number shall include the plural and
      vice
      versa, and words importing the use of any gender shall include the masculine,
      feminine and neuter genders and the word "person" shall include an individual,
      a
      trust, a partnership, a body corporate, an association or other incorporated
      or
      unincorporated organization or entity.

     

    15.11
      When
      calculating the period of time within which or following which any act is to
      be
      done or step taken pursuant to
      this
      Agreement, the date which
      is
      the
      reference date in calculating such period shall be excluded. If the last day
      of
      such period is not a Business Day, then the time period in
      question
      shall end on the first business day following such non-business
      day.

     

    15.12
      Any
      references in
      this
      Agreement to any law, by-law, rule, regulation, order or act of any government,
      governmental body or other regulatory body shall be construed as a reference
      thereto as amended or re-enacted from time to time or as a reference to any
      successor thereto.

     

    15.13
      If any
      Article, Section or any portion of any Section of this Agreement is determined
      to be unenforceable or invalid for any reason whatsoever that unenforceability
      or invalidity shall not affect the enforceability or validity of the
remaining
      portions of this Agreement and such unenforceable or invalid Article, Section
      or
      portion thereof shall be
      severed
      from the remainder of this Agreement.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    15.14
      The
      parties hereto agree that this Agreement may be transmitted by facsimile or
      such
      similar
      device and that reproduction of signatures by facsimile or such similar device
      will be treated as binding as if original and
      each
      party hereto undertakes to provide each and every other party hereto with a
      copy
      of the Agreement bearing original signatures forthwith upon demand.

     

    15.15
      The
      parties have requested that the present Agreement be drafted in English. Les
      parties ont requis que lc present accord soft redige
      en
      anglais.

    

    

     

    IN
      WITNESS WHEREOF the
      parties have duly executed s Distribution Agreement as of the date first above
      written.

     

    UNITED
      AMERICAN CORPORATION

     

     

    Per:
/s/
      Benoit Laliberte

    BENOIT
      LALIBERTE-Producer

     

    DISTRIBUTION
      CAR-TEL
      INC.

     

     

    Per:
/s/
      Luc Charlebois

    LUC
      CHARLEBOIS-Distributor

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      "A"

    

    The
      Schedule A would consist of the current Product
      being
      imported by Producer
      for
      which
      the Distributor
      is
      being
      retained to distribute.

     

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      "B"

    

    

    MARKETING
      PLAN

    

    The
      Schedule B would consist of the initial Marketing Plan within the Exclusive
      Territory:

    

    a)  Newspapers

    b)  Television

    c)  Radio

    d)  Direct
      Mailing

    

    All
      marketing will be performed on a "best effort" basis with a minimum monetary
      obligation of the Producer,
      to
      disburse
      the sum
      of Fifty Thousand Dollars ($50,000) during the first one hundred and eighty
      days
      (180) days after signing this Agreement.

    

    The Marketing
      Plan and
      its
      mode of implementation shall remain in the Exclusive domain of the Producer,
      and
      will
      be disclosed to the Distributor
      within
      sixty (60) days.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      "C"

     

    National
      Retail
      Chains

    

    
      	Ø  	
              LOBLAWS

            

    

    
      	Ø  	
              SHELL

            

    

    
      	Ø  	
              FUTURE
                SHOP

            

    

    
      	Ø  	
              RADIO
                SHACK

            

    

    
      	Ø  	
              ULTRAMAR

            

    

    
      	Ø  	
              BRAULT
                E MARTINAULT

            

    

    
      	Ø  	
              STEREO
                PLUS

            

    

    
      	Ø  	
              DUMOULIN
                

            

    

    
      	Ø  	
              CABINE
                TELEPHONIQUE

            

    

    
      	Ø  	
              CENTRE
                HI Fl

            

    

    
      	Ø  	
              SOBEY'S

            

    

    
      	Ø  	
              BUREAU
                EN GROS

            

    

    
      	Ø  	
              BRICKS

            

    

    
      	Ø  	
              COMPU-SMART

            

    

    
      	Ø  	
              STAPLES

            

    

    
      	Ø  	
              POSTE
                CANADA

            

    

    
      	Ø  	
              VIDEOTRON

            

    

    
      	Ø  	
              COGECO

            

    

    
      	Ø  	
              BELL

            

    

    
      	Ø  	
              ROGERS

            

    

    
      	Ø  	
              TELUS

            

    

    
      	Ø  	
              SPRINT

            

    

    
      	Ø  	
              MICROCELL
                (FIDO)

            

    

    
      	Ø  	
              INTERNET
                SERVICE PROVIDER

            

    

    
      	Ø  	
              WIFI

            

    

    
      	Ø  	
              AT&T

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