Document:

Exhibit
      10.5

    Confidential
      Treatment
      Requested: 

    Confidential
      portions of
      this document have been redacted and have been filed separately with the
      Commission. 

    STRATEGIC
      AGREEMENT

    This
      Strategic Agreement (the
“Agreement”) is made and entered into as of the 21st
      day of May 2004 by and between InterMetro Communications,
      Inc., a California corporation (“IMC”), and Qualitek Services, Inc., a
      California corporation (“QSI”), with respect to the following facts:

    R
      E C I T A L S

    WHEREAS,
      IMC is
      engaged in the business of building a network to provide Internet Protocol
      services (the “Network”). 

    WHEREAS,
      QSI is
      engaged in the business of selling networking and IT equipment, including [***]
      (the “Equipment”). The term Equipment will include additional types of
      networking and IT equipment if agreed to by the parties by written amendment
      to
      this Agreement. 

    WHEREAS,
      IMC
      believes that the Equipment will help IMC to expand its Network. 

    WHEREAS,
      QSI
      desires to provide Equipment to IMC and IMC desires to acquire Equipment from
      QSI pursuant to the terms and conditions of this Agreement. 

    NOW,
      THEREFORE, for
      good and valuable consideration the receipt and sufficiency of which are hereby
      acknowledged by the parties to this Agreement, and in light of the above
      recitals to this Agreement, the parties to this Agreement hereby agree as
      follows: 

     

    
      	1.	Equipment
              Orders.

    

    During
      the term of this Agreement,
      QSI agrees to make available for purchase by IMC a minimum of: 

    (a)
      [***] 

    (b)
      [***] 

    (c)
      [***] 

    Unless
      otherwise agreed by the
      parties in writing, IMC may order up to [***] during any calendar month. Within
      ten (10) days after receipt of a written purchase order from IMC, QSI will
      deliver each piece of Equipment ordered per IMC’s specifications, which may or
      may not include cables, software, licenses and other essential components which
      constitute the particular piece of Equipment, to the location designated by
      IMC
      in the purchase order at IMC’s expense; provided, however, IMC reserves the
      right to approve the method and provider for delivery. Attached to this
      Agreement as Exhibit A is IMC’s projection of the Equipment it plans to order
      each month during the term of this Agreement. IMC reserves the right,
      exercisable in its sole discretion, to modify Exhibit A upon thirty
      (30) days prior notice to QSI. Exhibit A is only a projection and this
      Agreement, along with Exhibit A, does not obligate IMC to purchase any Equipment
      from QSI. 

     

    [***]Confidential
      material redacted
      and filed separately with the Commission.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    This
      Agreement constitutes a
      security agreement and pledge agreement for all purposes under the Uniform
      Commercial Code and California Law. QSI shall be the security holder of any
      and
      all Equipment provided to IMC under this Agreement, for which the Purchase
      Price
      (see below) has not been completely paid. The UCC filing will place QSI in
      first
      position regarding all Equipment sold to IMC. Upon full payment of the Purchase
      Price, QSI will promptly file proper documentation which releases QSI’s security
      interest in that particular piece of Equipment. IMC will then own that
      particular piece of Equipment free and clear of any liens or encumbrances.
      

     

    
      	2.	Equipment
              Warranty and Technical Support.
              

    

    QSI
      warrants that each piece of
      Equipment purchased by IMC will remain in proper working condition and be free
      of any defects for one (1) year from the date IMC receives delivery of the
      piece of Equipment (“Warranty Period”). During the Warranty Period, if IMC
      determines that a piece of Equipment is defective, QSI, at its sole expense,
      will deliver a replacement piece of Equipment to the location designated by
      IMC
      within twenty-four (24) hours of receipt of notice of such defect from IMC.
      IMC will return the defective Equipment to QSI, at QSI’s sole expense. QSI
      agrees to provide its standard technical support services to IMC at no charge
      so
      that IMC can implement the Equipment ordered into the Network. 

     

    
      	3.	Right
              of First Refusal.
              

    

    3.1.
Equipment
      Purchases
      by IMC. In the event IMC is able to procure a quote from a
      third-party vendor for a piece of Equipment at a price lower than the Economic
      Value, as defined in Section 4.1 of this Agreement, for such piece of
      Equipment, IMC agrees to notify QSI of such quote in writing before purchasing
      such piece of Equipment from the third party vendor (the “Purchase
      Notification”). For a period of two (2) business days after receipt of the
      Purchase Notification, QSI will have the right to match the quote. If QSI
      matches the quote, IMC must purchase such piece of Equipment from QSI at the
      quote price and pursuant to the other terms of this Agreement. If QSI does
      not
      match the quote, IMC may purchase such piece of Equipment from the third-party
      vendor at the quote price. 

    3.2.
Equipment
      Sales by
      IMC. In the event IMC desires to sell any piece of Equipment
      purchased by IMC from QSI pursuant to this Agreement, IMC agrees to notify
      QSI
      in writing of the terms of IMC’s proposed sale of Equipment, including the sales
      price (the “Sales Notification”). For a period of two (2) business days
      after receipt of the Sales Notification, QSI will have the right to purchase
      the
      Equipment at the price and on the terms specified in the Sales Notification.
      If
      QSI does not purchase the Equipment from IMC within this period, IMC may sell
      the Equipment at the price and on the terms specified in the Sales Notice to
      a
      third party. 

     

    
      	4.	Equipment
              Purchase Price.
              

    

    4.1.
Economic
      Value. For the purposes of this Agreement the parties agree to
      assign the following values (the “Economic Values”) to each type of Equipment:

    (a)
      [***] 

    (b)
      [***] 

    (c)
      [***] 

     

    [***]Confidential
      material redacted
      and filed separately with the Commission.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    The
      Economic Value of any additional
      type of networking or IT equipment added to this Agreement by the parties will
      be set forth in a written amendment to this Agreement. 

    4.2
Purchase
      Price. The purchase price of each piece of Equipment is [***]
      Economic Value of such piece of Equipment (the “Purchase Price”) payable in cash
      as set forth in Section 4.3 of this Agreement. Except as otherwise set
      forth in this Agreement, with respect to each piece of Equipment purchased
      by
      IMC from QSI pursuant to this Agreement, the Purchase Price must be paid in
      full
      to QSI within [***] from the date of receipt of delivery by IMC of such piece
      of
      Equipment (the “Settlement Date”); provided IMC reserves the right to pay any
      outstanding Purchase Price before the Settlement Date. IMC’s obligation to pay
      the Purchase Price with respect to each piece of Equipment ordered and received
      by IMC will survive the term of this Agreement. Notwithstanding anything else
      to
      the contrary in this Agreement, under no circumstances will the aggregate MQER,
      as defined in Section 4.3 of this Agreement, paid by IMC to QSI with
      respect to a piece of Equipment exceed the Purchase Price of such piece of
      Equipment. 

    Notwithstanding
      the foregoing, the
      Purchase Price of each [***] is payable, determinable in IMC’s sole discretion,
      as follows: (a) one warrant to purchase one share of IMC common stock at an
      exercise price equal to the amount paid by investors for IMC’s stock in IMC’s
      most recent round of financing for each dollar of Economic Value or
      (b) cash in the amount of a reduced MQER calculated utilizing [***] of the
      QRM, as defined in Section 4.3 of this Agreement, until QSI receives the
      Purchase Price, plus one warrant to purchase one share of IMC common stock
      at an
      exercise price equal to the amount paid by investors for IMC’s stock in IMC’s
      most recent round of financing for every two (2) dollars of Economic Value.
      IMC must notify QSI in writing at the time IMC places a [***] order as to
      whether (a) or (b) above described will apply to that particular [***]
      order. Applicable warrants will be issued within thirty (30) days after
      receipt of delivery by IMC of the applicable [***]. 

    4.3
Calculation
      of
      Monthly Qualitek Equipment Revenue. With respect to each piece of
      Equipment, each month IMC will pay QSI the applicable Monthly Qualitek Equipment
      Revenue (“MQER”) toward the Purchase Price of such piece of Equipment. The MQER
      for each piece of Equipment will be calculated by multiplying the total number
      of Network minutes carried through such piece of Equipment during the previous
      calendar month by one of the following Qualitek Revenue per Minute (“QRM”)
      multipliers, as applicable: 

     

    
      	 	(a)	[***]

    

     

    
      	 	(b)	[***]

    

    IMC
      shall have sixty (60) days
      from the receipt of each piece of Equipment (“Ramp Period”) before that piece of
      Equipment is used to calculate the Primary Minimum MQER or the Secondary Minimum
      MQER, as the case may be, as defined below. If IMC sends revenue generating
      traffic during the Ramp Period, IMC shall pay QSI the applicable MQER under
      the
      terms of this Agreement. 

     

    [***]Confidential
      material redacted
      and filed separately with the Commission. 

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    Notwithstanding
      anything else in
      this Agreement to the contrary, with respect to the [***] pieces of
      Equipment purchased by IMC (“Initial Equipment Purchase Batch”), not including
      those [***] for which Section 4.2(a) is elected by IMC, the average MQER
      per Equipment within the Initial Equipment Purchase Batch must be no less than
      $250 (the “Primary Minimum MQER”). The Primary Minimum MQER shall be calculated
      by taking the sum of all the MQER, across all pieces of Equipment, paid to
      QSI
      during the previous month and dividing by the total number of eligible pieces
      of
      Equipment within the Initial Equipment Purchase Batch. An eligible piece of
      Equipment shall be defined as an Equipment piece for which its Ramp Period
      has
      elapsed and the Base Value of such piece of Equipment has not been paid to
      QSI.

    With
      respect to all other pieces of
      Equipment purchased by IMC, pursuant to this Agreement, in excess of the Initial
      Equipment Purchase Batch, not including those [***] for which
      Section 4.2(a) is elected by IMC, the average MQER per Equipment must be no
      less than $500 (the “Secondary Minimum MQER”). The Secondary Minimum MQER shall
      be calculated by taking the sum of all the MQER, across all pieces of Equipment,
      paid to QSI during the previous month and dividing by the total number of
      eligible pieces of Equipment in excess of the Initial Equipment Purchase Batch.
      An eligible piece of Equipment shall be defined as an Equipment piece for which
      its Ramp Period has elapsed and the Base Value of such piece of Equipment has
      not been paid to QSI. 

    If
      IMC fails to meet the Primary
      Minimum MQER or the Secondary Minimum MQER for any month during the term of
      this
      Agreement, QSI may notify IMC of those applicable pieces of Equipment for which
      the MQER is less than the Primary Minimum MQER or the Secondary Minimum MQER,
      as
      the case may be (the “Non Performing Equipment”). Within thirty (30) days
      after receipt of such written notice from QSI, IMC, exercisable in its sole
      discretion, must do one of the following: 

     

    
      	 	(i)	[***]

    

     

    
      	 	(ii)	[***]

    

     

    
      	 	(iii)	[***]

    

    4.4
Payment
      and
      Reporting. By no later than the fifteenth (15th) day
      of each month, IMC will provide QSI with a
      traffic report for each piece of Equipment, of which the Purchase Price has
      not
      been completely paid (the “Monthly Equipment Minute Report”), which details the
      number of minutes carried through such piece of Equipment during the prior
      month. IMC will include the MQER for such piece of Equipment with the Monthly
      Equipment Minute Report. 

    4.5
Settlement
      Date. No less than thirty (30) days prior to the Settlement
      Date for each piece of Equipment, QSI must notify IMC in writing of the then
      current outstanding balance of the Purchase Price owed by IMC for such piece
      of
      Equipment. Notwithstanding anything else to the contrary in this Agreement,
      IMC,
      exercisable in its sole discretion, may notify QSI no less than fifteen
      (15) days prior to the Settlement Date for such piece of Equipment that it
      intends to forego payment of the outstanding balance of the Purchase Price
      owed
      by IMC for such piece of Equipment and return such piece of Equipment to QSI
      at
      IMC’s sole expense. QSI will be entitled to keep any MQER previously paid by IMC
      to QSI through the date such piece of Equipment is returned to QSI and any
      warrants issued to QSI for such piece of Equipment pursuant to Section 5 of
      this Agreement. IMC will not be liable to QSI for any unpaid portion of the
      Purchase Price. 

     

    [***]Confidential
      material redacted
      and filed separately with the Commission. 

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
      	5.	Warrants.

    

    With
      respect to each piece of
      Equipment, not including CBXs which are separately addressed in Sections 4.2(a)
      and (b) of this Agreement, ordered and received by IMC pursuant to this
      Agreement, QSI will receive one warrant to purchase one share of IMC common
      stock at an exercise price equal to the amount paid by investors for IMC’s stock
      in IMC’s most recent round of financing for every [***]. Warrants will be issued
      within thirty (30) days after receipt of delivery by IMC of each applicable
      piece of Equipment. 

     

    
      	6.	Taxes
              and Other Obligations.
              

    

    QSI
      and IMC agree that the Purchase
      Price includes all obligations relating to the Equipment including the payment
      of all applicable state and federal sales, use, or other taxes and/or
      assessments with respect to each piece of Equipment purchased by IMC from QSI
      pursuant to this Agreement. QSI represents and warrants that all Equipment
      purchased by IMC from QSI is owned by QSI and is free and clear of any liens,
      encumbrances, or obligations of any kind. Any obligations, including but not
      limited to cash, in-kind, or other, are the sole responsibility of QSI.

     

    
      	7.	Exclusive
              Arrangement.

    

    QSI
      agrees that it will not enter
      into a similar business relationship with any other entity during the term
      of
      this Agreement. 

     

    
      	8.	Confidentiality.
              

    

    In
      connection with the Agreement,
      the parties may disclose certain information related to their operations or
      business (the “Confidential Information”). The receiving party will not utilize
      any Confidential Information received from the disclosing party for any purpose
      other than for the benefit of the disclosing party or in order to facilitate
      the
      transactions contemplated by this Agreement. The receiving party will not
      utilize the Confidential Information provided to it by the disclosing party
      to
      compete with the disclosing party, nor will the receiving party engage in
      reverse engineering of the disclosing party’s Confidential Information or any
      other conduct which would directly or indirectly result in one party
      misappropriating or improperly utilizing the rights, property, assets, or
      Confidential Information of the other party. The receiving party will not
      disclose the Confidential Information to any third party without the express
      prior written consent of the disclosing party. The receiving party will maintain
      the confidentiality of such Confidential Information using at least the same
      degree of care customarily used by the receiving party to protect its own
      Confidential Information, but under no circumstances will the receiving party
      use less than a reasonable degree of care. At the time of the termination of
      this Agreement (for any reason), the receiving party will return all
      Confidential Information provided by the disclosing party to the receiving
      party. The disclosing party will retain ownership of all its Confidential
      Information, whether or not disclosed to the receiving party. 

     

    [***]Confidential
      material redacted
      and filed separately with the Commission. 

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    
      	9.	Term
              and Termination.

    

    This
      Agreement will be effective as
      of the date first above written, and will continue for a period of two
      (2) years thereafter (the “Initial Term”) unless sooner terminated by
      either party pursuant to this Agreement. Thereafter, this Agreement will
      automatically be renewed for consecutive six (6) month periods unless
      terminated as follows: 

     

    
      	 	(a)	by
              either party giving not less than sixty (60) days written
              notice of cancellation to the other party prior to the end of the then
              current term; or 

    

     

    
      	 	(b)	by
              either party upon three (3) days written notice to the
              other party if the other party materially breaches this Agreement and
              does
              not cure the breach within thirty (30) days of receipt of written
              notice of the breach. 

    

     

    
      	10.	Liability.
              

    

    Neither
      party will be liable for any
      indirect, incidental, special, consequential, exemplary, or punitive damages,
      including but not limited to damages for lost profits or lost revenues, whether
      or not caused by the acts or omissions or negligence of its employees or agents,
      and regardless of whether such party has been informed of the possibility or
      likelihood of such damages. 

     

    
      	11.	Notices.

    

    Notice
      or other advice required to
      be given under this Agreement will be deemed given three (3) days after it
      is deposited, postage prepaid, in the United States Mail, or sent via a
      nationally recognized overnight courier (such as FedEx) to the parties’
respective notice addresses set forth below. If either party changes its address
      during the term of this Agreement, it will so advise the other party in writing
      and all notices and advice thereafter required to be given will be sent to
      such
      new address. In addition to the forms of notice above, the notice as it pertains
      to Section 2 of this Agreement will be deemed given immediately by IMC via
      email and/or fax to QSI. 

     

    
      	12.	Waivers.

    

    If
      any party shall at any time waive
      any rights hereunder resulting from any breach by the other party of any of
      the
      provisions of this Agreement, such waiver is not to be construed as a continuing
      waiver of other breaches of the same or other provisions of this Agreement.
      Resort to any remedies referred to herein shall not be construed as a waiver
      of
      any other rights and remedies to which such party is entitled under this
      Agreement or otherwise. 

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    
      	13.	Assignment.
              

    

    This
      Agreement may be assigned by
      either party with the advanced written consent of the other party, such consent
      not to be unreasonably denied or delayed. Notwithstanding the foregoing, either
      party may assign this Agreement to a parent, subsidiary, or
      successor-in-interest whether by merger, consolidation, acquisition,
      reorganization, or transfer of all or substantially all of its assets or
      otherwise without obtaining the prior written consent of the other party. This
      Agreement will benefit and be binding upon the parties hereto and their
      respective successors and permitted assigns. In the event of any assignment,
      the
      assignor will remain liable to the other party for any loss, damage, or claim
      arising from the assignee’s failure to perform as required hereunder.

     

    
      	14.	Entire
              and Sole Agreement.
              

    

    This
      Agreement constitutes the
      entire agreement between the parties and supersedes all other agreements,
      representations, warranties, statements, promises and undertakings, whether
      oral
      or written, with respect to the subject matter of this Agreement. This Agreement
      may be modified or amended only by a written agreement signed by the parties
      against whom the amendment is sought to be enforced. 

     

    
      	15.	Choice
              of Law and Venue.
              

    

    This
      Agreement will be governed by
      the laws of California without giving effect to applicable conflict of laws
      provisions. With respect to any litigation arising out of or relating to this
      Agreement, each party agrees that it will be filed in and heard by the state
      or
      federal courts with jurisdiction to hear such suits located in Los Angeles
      County, California. 

     

    
      	16.	Counterparts.
              

    

    This
      Agreement may be executed
      simultaneously in any number of counterparts, each of which counterparts shall
      be deemed to be an original, and such counterparts shall constitute but one
      and
      the same instrument. 

     

    
      	17.	Binding
              Arbitration.

    

    Any
      dispute under this Agreement
      will be resolved by binding arbitration conducted in accordance with the rules
      and procedures of the American Arbitration Association as they are then in
      effect in the County of Los Angeles, State of California. In order to select
      an
      arbitrator, each party to the dispute will select an arbitrator of its choice,
      and those selected arbitrators will then select by mutual agreement a single
      arbitrator for the proceeding. The decision of the arbitrator shall be final
      and
      binding on the parties to this Agreement, and judgment thereon may be entered
      in
      the Superior Court for the County of Los Angeles or any other court having
      jurisdiction. Each party to this Agreement will advance one-half of the
      arbitrator’s fees; however, all costs of the arbitration proceeding to enforce
      this Agreement, including attorneys’ fees and witness expenses, shall be paid by
      the party against whom the arbitrator rules. It is expressly agreed that the
      parties to any such arbitration may take discovery as contemplated and provided
      for by California Code of Civil Procedure §1283.05. Notwithstanding anything
      herein to the contrary, the parties hereto will not be required to submit a
      claim to arbitration if the claim is for temporary or preliminary equitable
      or
      injunctive relief that could not practicably be heard in a timely fashion
      through the arbitration process. 

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
      	18.	Attorneys’
Fees
              and Costs.
              

    

    In
      the event that either party must
      resort to legal action in order to enforce the provisions of this Agreement
      or
      to defend such action, the prevailing party shall be entitled to receive
      reimbursement from the nonprevailing party for all reasonable attorneys’ fees
      and all other costs incurred in commencing or defending such action, or in
      enforcing this Agreement, including but not limited to post judgment costs.
      

     

    
      	19.	Remedies.

    

    Except
      as otherwise expressly
      provided herein, none of the remedies set forth in this Agreement are intended
      to be exclusive, and each party shall have all other remedies now or hereafter
      existing at law, in equity, by statute or otherwise. The election of any one
      or
      more remedies shall not constitute a waiver of the right to pursue other
      available remedies. 

     

    
      	20.	Section
              Headings.

    

    The
      section headings in this
      Agreement are included for convenience only, are not a part of this Agreement
      and shall not be used in construing it. 

     

    
      	21.	Severability.
              

    

    In
      the event that any provision or
      any part of this Agreement is held to be illegal, invalid or unenforceable,
      such
      illegality, invalidity or unenforceability shall not affect the validity or
      enforceability of any other provision or part of this Agreement. 

     

    
      	22.	Independent
              Contractor.
              

    

    Each
      party shall act at all times
      hereunder as an independent contractor with respect to the other party, and
      not
      as an employee, partner, agent or co-venturer of or with the party. Except
      as
      set forth herein, neither party shall have nor exercise control or direction
      whatsoever over the operations of the other party, and neither party shall
      have
      nor exercise any control or direction whatsoever over the employees, agents
      or
      subcontractors hired by the other party. Each party hereto shall refrain from
      making any representation tending to create an apparent employment, partnership
      or joint venture relationship between the parties. Neither party’s employees,
      agents or subcontractors shall have any claim against the other party for any
      compensation or remuneration other than as specifically provided in this
      Agreement. Both parties further waive and agree to indemnify the other party
      against any claims for vacation pay, sick leave, retirement or pension benefits,
      social security contributions, worker’s compensation insurance or benefits,
      disability or unemployment benefits, welfare and pension benefits and
      obligations of the other party under the Employee Retirement Income Security
      Act
      of 1974, or other benefits of any kind customarily afforded to any employee.
      

     

    
      	23.	Publicity.
              Each party shall obtain the
              other party’s written consent prior to any publication, presentation,
              public announcement or press release concerning the relationship between
              the parties or the existence or terms and conditions of this Agreement.
              

    

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
this Agreement has been entered into as of the date first above
      written. 

     

    
      	
            	
            	
            	
            	
            	
            	
            	
            	
            
	IMC:	 	
            	 	
              INTERMETRO
                COMMUNICATIONS, INC.,

              a
                California
                corporation

            
	
            	
            	
            	
            	
            
	
            	 	
            	 	
            	 	
              By:

            	 	
              /S/    CHARLES
                PRICE

            
	
            	 	
            	 	
            	 	
            	 	
              Charles
                Rice, Chief Executive
                Officer

            
	
            	
            	
            	
            
	
            	 	
            	 	
            	 	  
	
            	 	
            	 	
            	 	
              Address

            
	
            	
            	
            	
            
	
            	 	
            	 	
            	 	  
	
            	 	
            	 	
            	 	
              City                                     State
                                                    Zip

            
	
            	
            	
            
	QSI:	 	
            	 	
              QUALITEK
                SERVICES,
                INC.,

              a
                California
                corporation

            
	
            	
            	
            	
            	
            
	
            	 	
            	 	
            	 	
              By:

            	 	
              /S/    W.H.
                MANBY

            
	
            	 	
            	 	
            	 	
            	 	
              W.H.
                Manby, Chief Executive
                Officer

            
	
            	
            	
            	
            
	
            	 	
            	 	
            	 	  
	
            	 	
            	 	
            	 	
              Address

            
	
            	
            	
            	
            
	
            	 	
            	 	
            	 	  
	
            	 	
            	 	
            	 	
              City                                     State
                                                    Zip

            

    

     

    
      
         

      

      
        -9-Exhibit
      10.6

    

    Confidential
      Treatment Requested:

    

    Confidential
      portions of this document have been redacted and have been filed separately
      with
      the Commission.

    

    CONFIDENTIAL
      TERM SHEET

    

    BETWEEN

    

    CANTATA
      TECHNOLOGY, INC.

    

    AND

    

    INTERMETRO
      COMMUNICATIONS, INC.

    

    May 2,
      2006

    

    This
      proposal (the “Term Sheet”) summarizes the principal terms with respect to a
      business relationship between Cantata Technology, Inc. and its affiliates and
      subsidiaries (collectively, “Cantata”), formerly known as Excel Switching
      Corporation and Brooktrout Technology, and InterMetro Communications, Inc.
      (“InterMetro”). Both parties agree in good faith that appropriate documents in
      final form will be executed regarding the subject matter of this Term Sheet
      and
      will contain all other essential terms of an agreed upon transaction (the
“Definitive Agreement”).

    

    Purpose/Scope

    

    Cantata
      and InterMetro are hereby entering into a strategic agreement (the “Strategic
      Agreement”) for the implementation of Cantata equipment into InterMetro’s
      extensive nationwide network (the “Network”) through the deployment of
      networking equipment and technology (the “Equipment”) provided by Cantata. The
      parties agree that the term of the Strategic Agreement shall commence on the
      date of this Term Sheet and terminate upon the signing of the Definitive
      Agreement. During the term of the Strategic Agreement, InterMetro may deliver
      purchase orders to Cantata as set forth below. Purchases pursuant to such
      purchase orders shall be subject to the terms of this Term Sheet and of
      Cantata’s Standard Terms and Conditions for Excel and Cantata Product Lines,
      attached hereto as Exhibit A. In the event of any conflict between the terms
      of
      this Term Sheet and the Standard Terms and Conditions, the terms of this Term
      Sheet shall apply. Upon the execution of the Definitive Agreement, all purchases
      shall be subject to the terms of the Definitive Agreement.

    

    The
      following outlines the terms of the Strategic Agreement:

    

    Terms
      of the Proposed Relationship

     

    
      	
               

            	
               

            	
               

            
	
              Cantata Responsibilities

            	
                

            	
              During
                the term of the Strategic Agreement, Cantata will make available
                to
                InterMetro an aggregate amount of Equipment that
                includes:

            
	
               

            	
                

            	
              (1)    [***]
                units [***], or the [***] of said equipment with [***] at the time
                of
                order; and

            

    

    

    [***]
      Confidential material redacted and filed separately with the
      Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 

    

     

    
      	
               

            	
                

            	
              (2)     [***]
                units [***], or the [***] or [***] of said equipment [***] at the
                time of
                order.

            
	
               

            	
               

            
	
               

            	
                

            	
              Upon
                InterMetro’s request and its purchase of [***] from Cantata, Cantata will
                provide [***].

            
	
               

            	
               

            
	
               

            	
                

            	
              If
                Cantata develops a larger capacity version of the [***], InterMetro
                will
                be able to purchase the larger version of the equipment under the
                Strategic Agreement at terms to be mutually negotiated in good faith
                by
                both parties.

            
	
               

            	
               

            
	
               

            	
                

            	
              Upon
                receiving proper written notice from InterMetro, Cantata will deliver
                the
                Equipment to an InterMetro specified destination within ten (10)
                business
                days from receipt. All costs associated with the delivery of Equipment
                will be directly paid by InterMetro or passed through to InterMetro
                at
                cost by Cantata, with the exception of shipments related to the
                replacement of defective equipment, which will be borne by
                Cantata.

            
	
               

            	
               

            
	
               

            	
                

            	
              Cantata
                will [***] for each [***] received by InterMetro under the Strategic
                Agreement, pursuant to the terms of [***]. In addition, Cantata will
                provide InterMetro with any new features or functionality that becomes
                available for [***].

            
	
               

            	
               

            
	
               

            	
                

            	
              All
                Equipment delivered by Cantata will be new and in proper working
                condition. Any Equipment found to be defective within the term of
                the
                Equipment’s Support Service term will be replaced by Cantata subject to
                the terms of the Support Agreement and the replacement Equipment
                will be
                delivered to an InterMetro specified destination within [***] of
                receipt
                of proper written notice by InterMetro.

            
	
               

            	
               

            
	
              InterMetro
                Responsibilities

            	
                

            	
              InterMetro
                will, from time to time, order specified quantities of the Equipment
                with
                advance written notice to Cantata (each an “Equipment Order”). InterMetro
                will make an initial Equipment Order of [***] upon execution of the
                Strategic Agreement. Unless otherwise agreed to by both parties in
                writing, InterMetro will have the right to order up to [***] within
                any
                calendar month.

            

    

     

    
      	
               

            	
               

            	
               

            
	
              Confidential
                Term Sheet

            	
                

            	
              2

            

    

     

    [***]
      Confidential material redacted and filed separately with the
      Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	 	 
	
               

            	
               

            
	
               

            	
                

            	
              For
                each piece of Equipment, [***] under the terms of the Strategic Agreement,
                InterMetro will [***]. InterMetro will [***] and will
                [***].

            
	
               

            	
               

            
	
              [***]

            	
                

            	
              InterMetro
                and Cantata agree that Cantata will offer to InterMetro [***] current
                equipment and technology, developed by Cantata.

            
	
               

            	
               

            
	
              Exclusive
                Rights

            	
                

            	
              Cantata
                will provide InterMetro: (1) a right of first refusal to [***], and
                (2)
                the exclusive right to purchase more than [***] under terms and conditions
                substantially similar to the terms of this Term Sheet. Additionally,
                during the [***] of the Strategic Agreement, Cantata may not
                [***].

            
	
               

            	
               

            
	
              Economic
                Value

            	
                

            	
              Listed
                below are the Economic Values that pertain to each Equipment Order
                under
                this Strategic Agreement:

            
	
               

            	
               

            
	
               

            	
                

            	
              [***]

            
	
               

            	
                

            	
              [***]

            
	
               

            	
                

            	
              [***]

            
	
               

            	
               

            
	
              Purchase
                Price

            	
                

            	
              The
                Purchase Price for each piece of Equipment will be determined based
                upon
                the purchase option selected by InterMetro at the time of each Equipment
                Order.

            
	
               

            	
               

            
	
              [***]

            	
                

            	
              If
                InterMetro indicates that it has [***], the Purchase Price will be
                equal
                to the [***] for that Equipment Order. The Purchase Price and the
                related
                sales tax will be paid 50% due upon delivery of the Equipment to
                InterMetro and 50% due 30 days after

              delivery
                of the Equipment to InterMetro.
                [***]

            

    

     

    
      	
               

            	
               

            	
               

            
	
              Confidential
                Term Sheet

            	
                

            	
              3

            

    

     

    [***]
      Confidential material redacted and filed separately with the
      Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 
	
               

            	
               

            
	
               

            	
                

            	
              If
                during the term of this Strategic Agreement, Cantata sells any Equipment
                to a third party under substantially similar terms, conditions, and
                quantities when considered in the aggregate, at a price below the
                then
                current Economic Value provided for under the Strategic Agreement
                (a
                “Threshold Price”), the Economic Value for [***] will be adjusted to be
                the new Threshold Price for [***].

            
	
              
                [***]

              

            	
               

            
	
            	
                

            	
              If
                InterMetro indicates that it [***] at the time of the Equipment Order,
                the
                Purchase Price for each [***] will be equal to [***] for that Equipment
                Order and the Purchase Price for [***] will be [***] of each [***].
                If
                InterMetro selects [***] or if the Strategic Agreement has been
                terminated. InterMetro will have the right, in its sole discretion,
                to pay
                any [***].

            
	
               

            	
               

            
	
              [***]

            	
                

            	
              If
                InterMetro has selected the [***], the Purchase Price plus the related
                sales tax for each piece of Equipment [***] will be paid by InterMetro
                [***]. The following summarizes the basic parameters of the
                [***]:

            
	
               

            	
               

            
	
               

            	
                

            	
              (1)     [***]
                related to each [***] will be [***] and [***]
                related

            

    

     

    
      	
              Confidential
                Term Sheet

            	
                

            	
              4

            

    

     

    [***]
      Confidential material redacted and filed separately with the
      Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	 	 
	
               

            	
                

            	
              to
                the [***] will be [***]

            
	
               

            	
               

            
	
               

            	
                

            	
              (2)     [***]
                for each piece of Equipment will be equal to:

            
	
               

            	
                

            	
              [***]

            
	
               

            	
                

            	
              [***]

            
	
               

            	
                

            	
              [***]

            
	
               

            	
               

            
	
               

            	
                

            	
              (3)     [***]
                for each [***] will be equal to:

            
	
               

            	
                

            	
              [***]

            
	
               

            	
                

            	
              [***]

            
	
               

            	
               

            
	
               

            	
                

            	
              Beginning
                after the second full [***], Cantata will have the right to notify
                InterMetro in writing during the subsequent [***]. Upon receipt of
                a [***]
                Notice, InterMetro will have until the end of the current [***],
                to notify
                Cantata in writing that [***]

            
	
               

            	
               

            
	
               

            	
                

            	
              (4)     [***]

            
	
               

            	
               

            
	
               

            	
                

            	
              (5)     The
                aggregate [***] paid by InterMetro for any specific piece of Equipment
                [***] will not exceed the Purchase Price plus related sales tax for
                that
                piece of Equipment [***]

            

    

     

    
      	
               

            	
               

            	
               

            
	
              Confidential
                Term Sheet

            	
                

            	
              5

            

    

     

    

    [***]
      Confidential material redacted and filed separately with the
      Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	 	 
	
              Potential
                Customers

            	
                

            	
              [***]
                of potential customers that will [***] through the
                [***]

            
	
               

            	
               

            
	
              InterMetro
                Cash Payments

            	
                

            	
              If
                subsequently agreed by both parties, any cash payment that is to
                be made
                by InterMetro to Cantata under the Strategic Agreement may be made
                in the
                form of InterMetro stock. The value of such stock will be equal to
                the
                price per common share, or common share equivalent, paid by investors
                in
                InterMetro’s most recent round of financing if InterMetro is privately
                held, or the 30 day average trading price for InterMetro common stock
                if
                InterMetro is public.

            
	
               

            	
               

            
	
              [***]

            	
                

            	
              Within
                [***], InterMetro will provide Cantata with [***]

            
	
               

            	
               

            
	
              Term

            	
                

            	
              The
                term of the Strategic Agreement will be for [***] (the “Initial Term”). At
                the end of the Initial Term:

            
	
               

            	
               

            
	
               

            	
                

            	
              (1)     Cantata
                will no longer be required to provide InterMetro with Equipment per
                the
                terms of the Strategic Agreement;

            
	
               

            	
               

            
	
               

            	
                

            	
              (2)     InterMetro
                will no longer be able to order Equipment from Cantata per the terms
                of
                the Strategic Agreement; and

            
	
               

            	
               

            
	
               

            	
                

            	
              (3)     [***]

            
	
               

            	
               

            
	
              Press
                Releases and

            	
                

            	
               

            
	
               

            	
               

            
	
               

            	
                

            	
              Authorized
                Use of Name
                Neither party may use the other party’s name or trademarks, or issue any
                publicity or make any public statements concerning the other party
                or the
                existence or content of this Strategic Agreement, without the other
                party’s prior written consent after the other party has reviewed the
                proposed publicity material and any corrections or modifications
                have been
                incorporated. Notwithstanding, both parties agree to issue a joint
                press
                release related to the parties entering into the Strategic Agreement
                within 30 days of the execution of the Strategic
                Agreement.

            

    

     

    
      	
               

            	
               

            	
               

            
	
              Confidential
                Term Sheet

            	
                

            	
              6

            

    

     

    

    [***]
      Confidential material redacted and filed separately with the
      Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
                

            	 

    

    

    Dated
      as of this 2nd day of May 2006.

     

    
      	
               

            	
               

            	
               

            	
               

            	
               

            
	
              CANTATA
                TECHNOLOGY, INC.

            	
               

            	
               

            	
               

            	
              INTERMETRO
                COMMUNICATIONS, INC.

            
	
              x    /s/    SUSAN
                MAXWELL

            	
               

            	
               

            	
               

            	
              x    /s/    CHARLES
                RICE

            
	
              FOR
                CANTANA TECHNOLOGY, INC.

            	
               

            	
               

            	
               

            	
              FOR
                INTERMETRO COMMUNICATIONS, INC.

            

    

     

    
      	
               

            	
               

            	
               

            	
               

            	
               

            
	
              SUSAN
                MAXWELL

            	
               

            	
               

            	
               

            	
              CHARLES
                RICE

            
	
              PRINTED
                NAME

            	
               

            	
               

            	
               

            	
              PRINTED
                NAME

            

    

     

    
      	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            
	
              CQO
                & VP Operations

            	
               

            	
               

            	
               

            	
              CEO

            
	
              TITLE

            	
               

            	
               

            	
               

            	
              TITLE

            

    

     

    
      	
               

            	
               

            	
               

            
	
              May
                2, 2006

            	
               

            	
               

            	
               

            	
              May
                2, 2006

            
	
              DATE

            	
               

            	
               

            	
               

            	
              DATE

            

    

     

    
      	
               

            	
               

            	
               

            	
               

            	
               

            
	
              ADDRESS:

            	
               

            	
               

            	
               

            	
              ADDRESS:

            
	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            

    

     

    
      	
               

            	
               

            	
               

            
	
              Confidential
                Term Sheet

            	
                

            	
              7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]