Document:

Exhibit 10.1

        

    DISTRIBUTION
      AGREEMENT MADE AND ENTERED INTO IN THE CITY OF MONTREAL, PROVINCE OF QUÉBEC WITH
      AN EFFECTIVE DATE OF MARCH 1st, 2005

    

    
      	
              BY
                AND BETWEEN:

            	
              TÉLIPHONE
                INC., a
                body politic and corporate, duly incorporated according to law, having
                a
                place of business at 1080 Beaver Hall, suite 1555, Montreal, Quebec,
                H2Z
                1S8 herein represented by George
                Metrakos,
                President, duly authorized as he so declares, 

            
	 	 
	 	
              hereinafter
                referred to as “TÉLIPHONE”

            
	 	 
	
              AND:

            	
              MSBR
                Communications Inc., a
                body politic and corporate duly incorporated according to law, having
                a
                place of business of at 710 Richelieu #105, Beloeil QC, Canada J3G
                5E8,
                herein represented by Benoit Ratthé,
                President,
                duly authorized as he so declares, 

            
	 	 
	 	
              hereinafter
                referred to as “DISTRIBUTOR”

            
	 	 
	 	
              ____________________________________

            

    

     

    

    PREAMBLE
      

    

    

    WHEREAS
      Téliphone
      is in the business of providing Voice Over Internet Protocol (VoIP) service
      such
      that telephone communications may be effected through the use of wireless or
      wired high speed Internet and is an importer of the hardware devices required
      for delivery of the service (the “Product”)

    

    WHEREAS
      Distributor
      wishes to obtain an exclusive right to distribute the Product throughout the
      province of Quebec (the“Territory”)
      through
      Retail Outlets and Teliphone’s web site on the terms and subject to the
      conditions herein contained.

    

    Whereas
      the parties wish to set forth their rights and obligations pertaining to the
      right of distribution of the product in the territory and have agreed to cause
      the product to be marketed in conformity with the terms and conditions as
      provided herein;

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WHEREFORE
      THE PARTIES HERETO HAVE AGREED AS FOLLOWS:

    

    1. The
      Preamble hereinabove stated shall form an integral part of the present Agreement
      as if recited herein at length; 

    

    2. Definitions

    

    2.1.
      BUSINESS CLIENTS: A business client is an end user of the Product and may be
      a
      moral person or partnership or association or company with limited liability
      who
      may require multiple telephone lines and other services which the normal private
      consumer would not be using.

    

    2.2.
      DISTRIBUTOR BACK-OFFICE: means an internet portal supplied by Teliphone where
      Teliphone Subscribers may gain access to all of their private records through
      the use of internet, such records emanating from Teliphone’s central serving
      system which would allow a Distributor to determine what amounts and or
      information to determine whatever information that they’re entitled to get
      within the agreements made with Teliphone.

    

    2.3.
      END
      USER: These
      are
      members of the public who elect to gain access to a device for telephone
      communication through the use of VoIP who are charged for the use of the
      product;

    

    2.4.
      INTERNET SALE: An internet sale occurs when a prospective customer whose
      principal address is within the Territory becomes a Teliphone Subscriber through
      the purchase of the Product via Teliphone’s web site.

    

    2.5.
      PROMOTION MATERIAL: This is advertising information that may be made available
      through various means to identify the availability of VoIP products and
      services, and without limiting the generality of the nature of this material,
      it
      may include doorway stickers, posters, table tents, brochures, pamphlets,
      business cards, web portal, prepaid telephone service card, etc. wherein the
      logo of Téliphone may be displayed and promoted.

    

    2.6.
      RECURRING REVENUES: This is the revenue being received by Teliphone from the
      Teliphone Subscriber payable to Téliphone based on the services purchased from
      Teliphone

    

    2.7.
      RE-SELLER: a Re-Seller is a company or individual who will sell The Product
      in
      The Territory pursuant to authorization emanating from the
      Distributor

    

    
      
        
        

      

      
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    2.8.
      RE-SELLER BACK-OFFICE: means an internet portal supplied by Teliphone where
      Teliphone Subscribers may gain access to all of their private records through
      the use of internet, such records emanating from Teliphone’s central serving
      system which would allow a Re-Seller to determine what amounts and or
      information to determine whatever information that they’re entitled to get
      within the agreements made with the Distributor.

    

    2.9.
      RETAIL OUTLETS: Means a commercial place of business selling electronic,
      computer, telecommunications and related accessories and services with permanent
      retail store frontage serving commercial enterprises and the consumer public
      whose purposes is to invite the general public to enter their premises in order
      to demonstrate and offer for sale products and services such that the product
      may be promoted in the Territory.

    

    2.10.
      SERVICES: Services include but is not limited to the following items that can
      be
      purchased by the Teliphone subscriber in order to make and receive calls from
      the various Teliphone Products:

    *Monthly
      Single Point of Contact (SPC) services

    *Monthly
      Basic VoIP calling services

    *Monthly
      Unlimited VoIP long distance calling packages

    *Monthly
      Limited VoIP long distance calling packages

    *Long
      distance calling on a per minute charge basis

    *Monthly
      Cellular phone (iPCS) local air time calling services

    *Additional
      local air time calling services on a per minute basis

    *Cellular
      phone (iPCS) long distance air time calling services

    

    2.11.
      SUBSCRIBER BACK-OFFICE: Means
      an
      internet portal supplied by Teliphone where Teliphone Subscribers may gain
      access to all of their private records through the use of internet, such records
      emanating from Teliphone’s central serving system which allows the subscriber to
      instantly obtain copy of detailed record of calls, charges incurred to date,
      payments received by Teliphone from subscriber, and any other information that
      may from time to time be made available by Teliphone for the use by Subscriber
      

    

    2.12.
      SUB-TERRITORY: Shall mean a region as defined by its telephone area code located
      within the Territory.

     

    2.13.
      TÉLIPHONE SUBSCRIBER: This is any End User of the Téliphone
      VoIP or Cellular service in good payment standing who elects to complete or
      

    
      
        
        

      

      
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    receive
      a
      telephone call using a telephone device which is being made available by
      Téliphone. Only Teliphone Subscribers whose principal location entered in their
      account as residing within the Territory will be considered in this
      agreement.

    

    2.14.
      TERRITORY: Shall mean the Province of Quebec

    

    2.15.
      VoIP: Voice
      Over Internet Protocol consists of a form of voice communication through the
      use
      of high speed internet, wireless internet (wi-fi), router, gateway, portable
      and
      desktop communication devices

    

    3.
      APPOINTMENT OF DISTRIBUTOR

    

    3.1.
      Teliphone appoints the Distributor as its exclusive distributor in the Territory
      for Sales through Retail Outlets and Teliphone’s Web Site upon the terms and
      conditions herein set out and Distributor hereby accepts such
      appointment:

    

    3.2.
      PROVISION FOR EXISTING TELIPHONE RESELLERS IN THE TERRITORY. The Distributor
      acknowledges that there exists agreements in place with Re-Sellers in the
      Territory, said agreements are identified in Schedule “A” annexed hereto.
      Teliphone undertakes to use its best efforts to transfer all rights and
      obligations under these agreements to the Distributor. Distributor warrants
      and
      represents that it will respect the terms and conditions so transferred.
      Distributor is hereby authorized to re-negotiate existing agreements with the
      Re-Sellers and Teliphone will use its best efforts to assist in such
      negotiations by acting as a mediator to attempt to resolve any cause of dispute
      or misunderstanding with the respect to the orderly transfer of the rights
      and
      obligations that is provided for under this agreement. 

    

    3.3.
      Teliphone agrees to issue a letter in form and content as identified in schedule
      “B” annexed hereto and provide copy of same to Distributor. Distributor
      acknowledges that the Re-Seller may prefer to continue purchasing directly
      from
      Teliphone and not from Distributor. In the event such sales occur, Teliphone
      shall provide copy to Distributor of all such transactions in order that the
      Distributor receives their portion of any recurring revenues that may be derived
      from the marketing of the product by the Re-Seller. Consequently, Distributor
      shall receive the commissions payable as defined in Schedule “A”. 

    

    3.4.
      The
      distributor acknowledges having received all agreements that exist between
      Teliphone and Re-Sellers and notice of the present assignment and subrogation
      in
      the form as set forth in schedule “B” shall immediately be sent to the
      Re-Sellers upon signing of this agreement.

    

    
      
        
        

      

      
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    3.5.
      Teliphone may continue to supply, sell and receive payments directly from the
      Re-Sellers for the Product. It is the desire and intention of the parties hereto
      to cause
      such activity to be the exclusive domain of the Distributor. Consequently,
      both
      parties shall use their best efforts in good faith to re-direct the sale and
      supply of the Product such that only the Distributor is providing the Re-sellers
      with the Product and not Teliphone. 

    

    3.6.
      INTERNET SALES WITHIN THE TERRITORY. Distributor will be entitled to the 25%
      commissions on Recurring Revenues for all internet sales made within the
      Territory to Teliphone Subscribers whose principal address is within the
      Territory. Distributor will not receive any commissions on the hardware devices
      sold.

    

    4.
      DETAILS OF SALES ACTIVITIES WITHIN THE TERRITORY

    

    4.1.
      Distributor acknowledges that Teliphone has appointed a wholesaler known as
“GH”
      in order to provide VoIP services and long distance services at a wholesale
      level in the Territory to Business Clients and as a consequence thereof
      renounces to any claim or beneficial interest and or right with respect to
      any
      revenues derived from the activities of Teliphone and GH. As a result of this
      appointment, existing Teliphone Re-Sellers such as AR Wiring Solutions (ie.
      Re-seller for Business Clients) will fall under the management of GH. GH will
      not be permitted to sell through Retail Outlets without prior approval by
      Distributor, nor can they sell to private consumer clients without prior written
      consent of Distributor and Teliphone whose consents will not be unreasonably
      withheld.

    

    4.2.
      Teliphone has developed a white-label partnership with NCTel Telecom /
      (Additional Trade Name: Dielek Telecom) (“NCTel”). NCTel is permitted to sell
      their white-label version of the Teliphone product with the following
      conditions:

    

    a)
      NCTel
      cannot sell their product in Retail Outlets in the city of St-Hyacinthe,
      Province of Quebec.

    

    b)
      NCTel
      cannot sell their version of the Teliphone product in any Retail Outlets outside
      of city of Sherbrooke, Province of Quebec without the prior written consent
      of
      Teliphone and its Distributor. Teliphone will work with Distributor in order
      to
      ensure that any approved Retail Outlet sales by NCTel does not damage or hinder
      any Sales and Marketing initiatives currently underway by
      Distributor.

    

    c)
      Distributor cannot sell Teliphone’s products and services in the city of
      Sherbrooke, Province of Quebec until November 1, 2005.

    

    4.3.
      Distributor acknowledges that as they sell the product, there is initially
      a
      substantial negative financial burden which is assumed by Teliphone, namely
      that
      Teliphone must  

    
      
        
        

      

      
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    apply
      inventory below its cost. Consequently, Teliphone reserves the
      right to decline or to accept any orders from Distributor if;

     

    a)
      It is
      not in the interest of Teliphone from an economic point of view,
      or;

    

    b)
      If the
      timing for the commencement of the business is inappropriate, Teliphone, its
      Distributor and, if necessary, an independent mediator will determine the
      appropriate timing, or;

    

    c)
      If the
      Re-Seller is not deemed appropriate, Teliphone, its Distributor and, if
      necessary, an independent mediator will determine the appropriateness of the
      Re-Seller, or;

    

    d)
      if the
      credit worthiness of the Re-Seller is not considered to be appropriate,
      Teliphone reserving in its sole discretion to determine the appropriate credit
      credentials or; Teliphone must demonstrate inappropriate credit worthiness
      by
      means of credit verification services to Distributor.

    

    e)
      For
      any other commercial reason arising out of current market circumstances.
      Teliphone will demonstrate to Distributor the severity of the market
      circumstance which will necessitate such an action.

    

    4.4.
      As
      part of Teliphone’s Sales and Marketing Plan in the Territory, Teliphone may
      sell direct to Wholesalers. As a consequence, Distributor thereof renounces
      to
      any claim or beneficial interest and or right with respect to any revenues
      derived from the activities of Teliphone and Wholesalers. Teliphone, however,
      will not supply to any wholesalers who in turn will re-sell Teliphone’s products
      and services through Retail Outlets. Should Teliphone sell to Wholesalers
      (except noted in 4.1. above) that are not selling to Business Clients in The
      Territory, then Distributor shall receive a monthly commission of 10% of the
      Wholesaler’s cost, to a minimum of $1.00 on the Basic VoIP monthly service
      price.

    

    5.
      RE-SELLERS / ASSIGNMENT

    

    5.1.
      Teliphone hereby grants to the Distributor the right to appoint persons or
      companies as its Re-Sellers of the Product, provided however that the
      appointment by the Distributor of one or more Re-Sellers shall not relieve
      the
      Distributor of its obligations hereunder. Teliphone shall be requested in
      writing for its consent for such appointment, which consent will not be
      unreasonably withheld. 

    

    6.
      REQUIRED TELIPHONE SUBSCRIBER SALES

     

    
      
        
        

      

      
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    6.1.
      Distributor shall purchase directly from Teliphone the minimum quantities of
      the
      Product and hereby warrants and represents that it shall, on a best effort
      basis, cause sales to occur to Teliphone Subscribers by achieving End User
      activations.

    

    6.2.
      It
      is understood by both parties that there are many external factors that may
      influence sales objectives, such as competitive activity, amounts of investment
      in branding and promotion, inventory considerations for opening up new
      retailers, area code availabilities within Teliphone’s ability to cover the
      Territory, etc. As a result, quantities related to objectives in 6.1. above
      will
      be established based on a marketing plan produced by both Parties by the 31st
      of
      December, 2005.

    

    6.3.
      Distributor hereby warrants and represents that it hereby agrees to the pricing
      as set by Teliphone under schedule “C” which pricing may be modified from time
      to time at the sole discretion of Teliphone. Teliphone shall demonstrate to
      Distributor a valid reason for making any changes to the pricing structure
      outlined in schedule “C”.

    

    
      
        7.
          RESPONSIBILITIES OF TELIPHONE

      

    

    

    7.1.
      Teliphone will, on a best effort basis, ensure that it supplies to Distributor,
      within reasonable lead times befitting the product or service offering, all
      products and services as ordered and required by Distributor in order for it
      to
      deliver on its responsibilities as outlined in section 6 above.

    

    8.
      SHIPPING AND PAYMENT ARRANGEMENTS

    

    8.1.
      Products will be shipped to one destination supplied by the Distributor upon
      receipt by Teliphone of the Distributor’s purchase order. The product shall be
      sold F.O.B. Teliphone’s warehouse.

    

    8.1.1.
      Terms of payment will be COD.

    

    8.2.
      Teliphone will pay Distributor all commissions within 15 days of month end
      as
      per Schedule “D”. Paragraph 4.5 is also subject to the payment agreement
      described in this paragraph 7.2.

    

    9.
      RESPONSIBILITIES OF THE DISTRIBUTOR

    

    The
      distributor agrees that during the term of this Agreement, it
      shall:

    

    9.1.
      Comply and cause all its Re-Sellers or parties appointed by it to comply with
      all applicable laws in the Territory relating to the advertising, distribution
      and sale of Products and with the terms and conditions of this
      Agreement.

     

    
      
        
        

      

      
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    9.2.
      Request approval from Teliphone on all marketing and promotional material prior
      to distribution.

    

    9.3.
      Devote its best efforts to the performance of its obligations under this
      Agreement

    

    9.4.
      Make
      every reasonable effort and use proper means to develop the market potential
      for
      trade in Product and actively solicit the activation by End Users.

    

    9.5.
      Share in marketing, promotion and advertising costs as agreed upon with
      Teliphone on a case by case basis.

    

    9.5.1.
      In
      the case of demonstration phones, Distributor will cover 100% of Teliphone’s
      cost of the hardware required for the demonstration unit. Teliphone will pay
      for
      a free unlimited local calling only on the demonstration unit. The number of
      demonstration units in circulation will be determined on a case by case basis
      by
      Teliphone and Distributor.

    

    9.5.2.
      Distributor will provide Teliphone with banner advertising throughout its
      network of web sites. 

    

    9.6.
      Develop, promote and maintain with End Users, the goodwill and reputation of
      Teliphone and its products and services.

    

    10.
      TERM AND TERMINATION

     

    10.1
      TERM.
      This
      Agreement shall commence on the date hereinabove and remain in effect for an
      initial period of two (2) year from the effective date. This agreement shall
      automatically renew successive one-year terms, unless either party provides
      written notice to the other party not less than ninety (90) days prior to the
      end of the Initial Term, or end of successive renewal terms. In the case of
      dissolution of this contract, Distributor will be entitled to commissions on
      recurring revenues for as long as the Teliphone Subscriber that existed prior
      to
      the dissolution of this contract remains a client in good standing of
      Teliphone.

    

    10.2
      TERMINATION BY EITHER
      PARTY. Either party (the “Non-Defaulting Party”) may terminate this Agreement by
      providing at least thirty (30) days prior written notice to the other party
      (the
“Defaulting Party”) upon the occurrence of any of the following
      events:

    

    (a) the
      Defaulting Party is in default in the performance of any of its obligations
      under this Agreement or breaches any provision hereof and such default or breach
      continues after at least ten (10) following receipt of written notice of such
      default or breach from the Non-Defaulting Party to the Defaulting
      Party.

     

    
      
        
        

      

      
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    (b) the
      conviction in any court of competent jurisdiction of either party or any
      employee, shareholder, director or officer of either party for any crime or
      violation of law if, such conviction is likely to adversely affect the operation
      or business of the other party or tend to be harmful to the goodwill or
      reputation of the other party.

     

    (c) Any
      conduct or practice by either party, its directors, officers, employees or
      shareholders, which is injurious to the goodwill or reputation of the other
      party.

     

    (d) Either
      party commits, participates or acquiesces in any fraudulent or improper actions
      in regards to this agreement; 

     

    11.
      CONFIDENTIALITY.

    

     

    11.1.
      "Confidential Information" means any business and technical information
      disclosed by either party to the other party, either directly or indirectly,
      in
      writing, orally or by inspection of tangible objects (including without
      limitation concepts, designs, documents, prototypes or samples), which is
      designated as "Confidential," "Proprietary" or some similar designation or
      is
      disclosed under circumstances which indicate its confidential nature.
      Confidential Information may also include third party confidential information.
      Confidential Information will not include any information which

    

    (i) was
      publicly known and made generally available in the public domain prior to the
      time of disclosure by the disclosing party;

    

    (ii) becomes
      publicly known and made generally available after disclosure by the disclosing
      party to the receiving party through no action or inaction of the receiving
      party;

    

    (iii) is
      already in the possession of the receiving party at the time of disclosure
      by
      the disclosing party as shown by the receiving party's files and records
      immediately prior to the time of disclosure;

    

    (iv) is
      obtained by the receiving party from a third party without a breach of such
      third party's obligations of confidentiality; or 

    

    (v) is
      independently developed by the receiving party without use of or reference
      to
      the disclosing party's Confidential Information, as shown by documents and
      other
      competent evidence in the receiving party's possession.

    

    11.2.
      Non-use and Nondisclosure. Each party agrees not to use any Confidential
      Information of the other party for any purpose except to perform its obligations
      or exercise its rights under this Agreement. Each party agrees not to disclose
      any 

     

    
      
        
        

      

      
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    Confidential
      Information of the other party to third parties or to such party's employees,
      except to those employees or consultants of the receiving party who are required
      to have the information. Nothing in this Section precludes either party from
      disclosing the other party’s Confidential Information as required by law or a
      legal process.

    

    11.3.
      Maintenance of Confidentiality. Each party agrees that it will take reasonable
      measures to protect the secrecy of and avoid disclosure and unauthorized use
      of
      the Confidential Information of the other party. Without limiting the foregoing,
      each party will take at least those measures that it takes to protect its own
      most highly confidential information and will ensure that its employees and
      independent contractors who have access to Confidential Information of the
      other
      party have signed a non-use and non-disclosure agreement in content similar
      to
      the provisions hereof. Each party will reproduce the other party's proprietary
      rights notices on any such approved copies, in the same manner in which such
      notices were set forth in or on the original.

    

    12.
      GENERAL AND CONCLUDING PROVISIONS

    

    12.1.
      This agreement shall ensure to the benefit of and be binding upon the parties
      hereto, and their respective heirs, legatees, executors, legal representatives,
      successors and assigns.

    

    12.2.
      This Agreement contains the entire agreement among the parties with respect
      to
      the transactions contemplated herein, and supersedes all prior negotiations,
      agreements and undertakings.

    

    12.3.
      This Agreement may be executed in two or more counterparts each of which shall
      be deemed an original and all of which together shall constitute one and the
      same Agreement. Faxed signatures of the parties shall be valid and binding,
      however, the parties hereto agree to provide the original of their signature
      to
      this Agreement to each of the other parties thereafter.

    

    12.4.
      All
      notices in connection with this Agreement shall be in writing and either
      hand-delivered or mailed by registered or certified mail and shall be sent
      to
      all of the parties hereto.  Any such notice shall be deemed to have
      been
      received on the earlier of the date of the hand-delivery or on the fifth (5th)
      business day following the date indicated on the proof of mailing. 
      The
      respective addresses for such notices are:

    

    Téliphone
      Inc 

    1170
      Place du Frère André, 4th
      Floor

    Montreal,
      Quebec H3B 3C6

    Attention:
      George Metrakos 

    Telephone
      (514) 313-6010

     

    
      
        
        

      

      
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      Fax
        (514) 313-6001

      E-Mail: 
        gmetrakos@teliphone.ca

      Distributor

    

    MSBR
      Communications Inc.

    710
      Richelieu #105

    Beloeil,
      Quebec J3G 5E8 

    Attention :
      Benoit Ratthé

    Telephone
      (514) 313-3271

    Fax
      (450)
      649-2846

    E-mail :
      bratthe1@sympatico.ca

    

    

    12.5.
      This Agreement shall be construed in accordance with the laws of the Province
      of
      Quebec and Canada.

    

    12.6.
      This Agreement may be amended only by written agreement duly executed by all
      parties hereto.

    

    12.7.
      The
      parties shall furnish and deliver from time to time such documents, and writings
      as may reasonably be required as necessary or desirable to complete this
      Agreement and to give effect to its provisions.

    

    12.8.
      The
      parties agree to do and cause to be done such acts, deeds, documents and/or
      corporate proceedings as maybe necessary or desirable to complete this
      Agreement, and to give effect to its provisions.

    

    12.9.
      In
      the event the majority control of the shares in Teliphone is sold to a third
      party and or in the event that the sale of the assets of Teliphone occurs,
      it is
      understood and agreed that the rights and obligations provided for the benefit
      of the Distributor under this agreement shall form the subject of a specific
      clause under such future agreements whereby the new controlling shareholders
      and
      or the purchaser of the assets assumes all financial obligations of Teliphone
      as
      provided for herein.

    

    12.10.
      The parties hereto have requested that the present Agreement be drafted in
      the
      English language. Les parties déclarent qu’ils ont requis que la présente
      entente soit rédigée dans la langue anglaise.

    

    

    WHEREFORE
      THE PARTIES HERETO HAVE SIGNED WITH DATE EFFECTIVE ON THE DATE AND PLACE FIRST
      MENTIONED HEREINABOVE.

     

    
      
        
        

      

      
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              TÉLIPHONE
                INC

               

              per: 

               

              /s/
                George Metrakos

              ____________________________________________

              George
                Metrakos, President

               

              May
                2/05

              ____________________________________________

              Date

            	
              Distributor:
                MSBR Communications Inc. 

               

              per:
                

               

              /s/
                Benoit Ratthe

              ____________________________________________

              Benoit
                Ratthé, President

               

              02/05/05

              ____________________________________________

              Date

            

    

    

    
      
        
        

      

      
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    SCHEDULE
      “A”

    

    

    
      	
              Re-Seller

            	
              Territory/Focus

            	
              Distributor

            	
              Segment

            	
              Hardware

            	
              Recurring

            	
              Resulting
                Distributor Commission on Recurring

            
	
              Teleplus
                Qc

            	
              Quebec/Gr-Mtl

            	
              MSBR

            	
              Cons

            	
              Reduced

            	
              0%

            	
              25%

            
	
              DRC

            	
              Quebec/Laval

            	
              MSBR

            	
              Cons

            	
              25%

            	
              15%

            	
              10%

            
	
              Camelot

            	
              Quebec/Mtl

            	
              MSBR

            	
              Cons

            	
              25%

            	
              25%

            	
              10%

            
	
              Nu
                Frontier

            	
              Quebec/TMR

            	
              MSBR

            	
              Cons

            	
              25%

            	
              15%

            	
              10%

            
	
              Comp.
                Solutions

            	
              Quebec/P-aux-Tr

            	
              MSBR

            	
              Cons

            	
              25%

            	
              15%

            	
              10%

            
	
              Ipnet.ca/GYP

            	
              Quebec/Mtl

            	
              MSBR

            	
              Cons

            	
              25%

            	
              15%

            	
              10%

            
	
              Syac

            	
              Quebec

            	
              MSBR

            	
              Cons

            	
              TBD

            	
              TBD

            	
              Min
                10%

            
	
              VanDerWelt

            	
              Quebec

            	
              MSBR

            	
              Cons/Bus

            	
              25%

            	
              15%

            	
              10%

            
	
              Evans
                Abbelard

            	
              Quebec

            	
              MSBR

            	
              Cons

            	
              25%

            	
              20%

            	
              10%

            

    

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      “B”

    

    DATE:

    

    Reseller
      Name

    ATT:

    Reseller
      Address

    

    Subject:
      Appointment of Quebec Distributor for Teliphone Inc.

    

    Dear
      Re-seller,

    

    

    Effective
      immediately, Teliphone Inc. has transferred, assigned and subrogated MSBR
      Communications Inc all rights and obligations which exist between our firm
      and
      your company pursuant to an agreement dated _______________.

    

    You
      are
      kindly requested henceforth to cause all future communications and business
      dealings pertaining to VOIP to occur by communicating directly
      with;

    

    MSBR
      Communications Inc.

    ATT:
      Benoit Ratthé, Director of Sales Quebec

    710
      Richelieu #105

    Beloeil
      QC J3G 5E8

    Tel :
      (514) 313-3271

    Fax :
      (450) 649-2846

    Email :
      bratthe@teliphone.ca

    

    

    The
      decision to authorize a distributor to act in the territory where you are
      working as a reseller has been made in order to give you and all subscribers
      of
      Teliphone more efficient and effective services henceforth.

    

    Signed,

    

    

    

    George
      Metrakos

    President
      & CEO

    Teliphone
      Inc.

    (514)
      313-6010

    gmetrakos@teliphone.ca

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      “C”

    

    Effective
      February 6, 2005

    

    

      
        	
                Item

              	
                Residential
                  / SOHO

              	
                Commercial
                  / 

                Enterprise

              
	
                Hardware

              	 	 
	
                    Teliphone
                  (wi-fi), with 12 mth contract

              	
                $99.00

              	
                $99.00

              
	
                    Teliphone
                  (wi-fi), no contract*

              	
                $229.95

              	
                $229.95

              
	    TeliphoneLine,
                single port, with 12 mth contract	
                $59.00

              	
                $59.00

              
	    TeliphoneLine,
                single port, no contract	
                $129.95

              	
                $129.95

              
	    TeliphoneLine,
                dual port, with 12 mth contract	
                $79.00

              	
                $79.00

              
	    TeliphoneLine,
                dual port, no contract	
                $149.95

              	
                $149.95

              
	 	 	 
	
                Rate
                  Plan

              	 	 
	    Single
                Point of Contract**	
                $5.00/mth

              	
                $5.00/mth

              
	
                    Basic
                  VoIP
                  Service

                        Unlimited
                  within Teliphone local area***

              	
                $14.95/mth

              	
                $14.95/mth

              
	    Unlimited
                Quebec	
                $4.95/mth

              	
                $9.95/mth

              
	    Unlimited
                North
                America****	
                $9.95/mth

              	
                $19.95/mth

              
	 	 	 
	
                Additional
                  Services

              	 	 
	    Extra
                handset attributed to same number	 	 
	        Teliphone
                (wi-fi)	
                $199.95

              	
                $199.95

              
	        TeliphoneLine
                (single port)	
                $129.95

              	
                $129.95

              
	        TeliphoneLine
                (dual port)	
                $149.95

              	
                $149.95

              
	        Additional
                monthly charge	
                $4.95/mth

              	
                $4.95/mth

              
	    Extra
                phone
                number on same handset	
                 $4.95/mth

              	
                 $4.95/mth

              
	    Activation
                charge per line	
                Currently Free 

              	
                 $19.95

              
	 	 	 

      

    

    

    *
      Includes a $30 long distance credit upon activation.

    **PC,
      Single Point of Contact, includes a phone number, FollowMe Call forwarding
      and
      Voice Mail.

    ***
      Local
      area includes Montreal, Toronto and New York. Future Canadian cities will be
      added to the local coverage area.

    ****
      Includes Continental US and Canada.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      “D”

    

    The
      purchase and commission structure is as follows:

    

    Hardware:

    

    
      	·  	
              Téliphone
                V1 wi-fi VoIP phone at a cost of $60
                each

            

    

    
      	·  	
              TéliphoneLine
                single port unit at a cost of $20
                each

            

    

    
      	·  	
              TéliphoneLine
                dual port unit at a cost of $40
                each

            

    

    

    In
      the
      case where DISTRIBUTOR should sell a hardware unit at the full, non-contract
      price, the above margins (sell price - cost) will still apply to calculate
      the
      cost.

    

    As
      commission for activating new accounts with monthly unlimited rate plans, a
      10$
      commission will be credited to DISTRIBUTOR’s account upon the activation of a
      $9.95/mth North America Unlimited plan. A 5$ commission will be credited to
      DISTRIBUTOR’s account upon the activation of the line with a $4.95 Province
      Unlimited plan.

    

    No
      commissions will be paid out on the iPCS SIM card, iPCS hardware or the iPCS
      security deposits.

    

    Services:

    

    DISTRIBUTOR
      will receive 25% commission on the total expenditures (monthly basic plan and
      unlimited long distance plans) made by the DISTRIBUTOR’s activated
      clients.

    

    Distributor
      will receive 5% commission on long distance to be paid upon receipt of pre-paid
      $10 increments as received by active Teliphone subscribers.

    

    DISTRIBUTOR
      will also acknowledge that if Teliphone services are sold to a Call Center
      customer, then DISTRIBUTOR’s Call Center customers cannot subscribe to unlimited
      long distance packages and must negotiate a per minute Long Distance rate with
      Teliphone.

    

    The
      Téliphone iPCS monthly plans, additional cellular air time minutes and cellular
      long distance minutes will provide a 5% commission.Exhibit 10.2

    Preliminary
      Letter of Agreement

    

    Between

    

    Teliphone
      Inc.

    Montreal,
      Quebec Canada

    

    And

    

    Podar
      Enterprises

    Mumbai,
      India

    

    
      	1.  	
              Whereas
                Teliphone Inc., (Teliphone) a company incorporated under the laws
                of
                Canada is in the business of telecommunications which a specialty
                in Voice
                over Internet Protocol (VolP),

            

    

    

    
      	2.  	
              And
                Whereas Podar Enterprises (Podar) of Mumbai, India and through its
                subsidiary, Podar Infotech Ltd. poses business and technical skills
                to
                develop and market products and services currently available and
                yet to be
                developed by Teliphone.

            

    

    

    
      	3.  	
              The
                parties have agreed to co-operatively develop and exploit markets
                for the
                current Teliphone product line and products yet to be developed in
                territories identified in this agreement under terms and conditions
                described here in general terms and to be further established in
                a more
                comprehensive agreement to be developed within 45 days of execution
                of
                this agreement. The parties further agree to seek and develop
                opportunities in information and communication
                technologies.

            

    

    

    
      	4.  	
              Teliphone
                hereby grants exclusive marketing and distribution rights for Teliphone
                products and services to Podar for the following
                territories:

            

    

     

    
      	 	
              
                
                  India

                  China

                  Sri
                    Lanka

                  United
                    Arab Emirates

                  Russia

                

              

            

    

     

    
      
        	 	
                
                  under
                    terms and conditions set forth in this agreement, Podar and Teliphone
                     may
                    from time to time, add territories to this agreement. In order
                    to maintain
                     its
                    exclusivity, Podar will be required to meet performance targets
                    by
                    territory  as
                    set forth by this agreement. Where performance targets have not
                    been
                     established
                    here, Podar will have 6 months year from the date of this  agreement
                    to assess market conditions in the territories and provide  Teliphone
                    with a proposal for the development of the
                    territory.

                

              

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	5.  	
              Podar
                and its related companies by its part, agrees to work exclusively
                with
                Teliphone for the development of voice over Internet protocol in
                the
                territories covered in this agreement and agrees not to share any
                information or skills acquired through its relation with Teliphone
                with
                any third party. Furthermore, Podar agrees not to compete with Teliphone
                during the life of this agreement and for 2 years subsequent to any
                termination of this agreement.

            

    

    

    
      	6.  	
              Responsibilities
                of the Parties:

            

    

     

    
      	 	
              a. Telephone
                will be responsible for”

            

    

    

    
      	i.  	
              Access
                to all available Teliphone products and services for sale to the
                defined
                territories,

            

    

    
      	ii.  	
              Access
                to the Teliphone technical network including VolP services from its
                Montreal server and/or other servers/locations yet to be
                established,

            

    

    
      	iii.  	
              Voice
                termination services whether through Teliphone products or other
                companies
                Podar may identify that require voice
                termination,

            

    

    
      	iv.  	
              Maintenance
                of a voice and quality of service necessary to maintain customer
                satisfaction with such quality of service standards to be developed
                by the
                parties within one month of the execution of this
                agreement,

            

    

    
      	v.  	
              Technical
                support between Podar technicians and
                Teliphone,

            

    

    
      	vi.  	
              If
                required, a web-based ecommerce
                system,

            

    

    
      	vii.  	
              Access
                to a Podar “back-office” on the Teliphone web site which will provide
                Podar with real-time information on its activations and
                traffic,

            

    

    
      	viii.  	
              Access
                to all related software necessary for provisioning VolP telephones
                or
                VolP-related hardware,

            

    

    
      	ix.  	
              Technical
                training of Podar personnel in the Teliphone facility in
                Montreal,

            

    

    
      	x.  	
              Providing
                Podar with its experience and knowledge in the area of market development
                as well as all marketing materials.

            

    

     

     

    
      	 	
              b.
                Podar will be responsible for:

            

    

    

    
      	i.  	
              Meeting
                sales targets by territory as defined by this
                agreement,

            

    

    
      	ii.  	
              Developing
                and implementing a marketing plan for its territories including
                appropriate sales and distribution
                channels,

            

    

    
      	iii.  	
              Local
                technical and after sales support,

            

    

    
      	iv.  	
              Purchase
                of its own inventory,

            

    

    
      	v.  	
              Collection
                of subscription, long distance and other revenue from its
                subscribers,

            

    

    
      	vi.  	
              Timely
                remittance of agreed fees to
                Teliphone,

            

    

    
      	vii.  	
              Meeting
                all local regulatory requirements by
                territory,

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	 	
              c. 
                Both Parties will be responsible
                for:

            

    

    

    
      	i.  	
              Cooperating
                for technical integration of any non-Teliphone
                technology,

            

    

    
      	ii.  	
              Working
                diligently towards the successful development of the objects of this
                agreement.

            

    

    

    
      	7.  	
              The
                sales target set for India will be 4,000 activations within 12 months
                of
                execution of this agreement.

            

    

    

    
      	8.  	
              Costs
                and Distribution of Revenues

            

    

    

    
      	 	
              Podar
                agrees to pay Teliphone a base cost of US$10 per active subscriber
                per
                 month
                for the basic Teliphone service which consists of access to the
                 Teliphone
                network, all basic Teliphone services (i.e. as offered by Teliphone
                 as
                part of its basic services) and one telephone number. Podar further
                agrees
                 to
                pay Teliphone 15% of the gross profit to its subscribers. Ancillary
                 Teliphone
                products such as additional telephone numbers per subscriber,  unlimited
                North American access, long distance profits, etc. will be covered
                 under
                a separate agreement.

            

    

     

    
      	9.  	
              Life
                of the agreement

            

    

     

    
      	
               

            	
              
                This
                  agreement will be valid for a period of 5 years from the date of
                   execution.
                  Either Party may terminate this agreement with 60 days written
                   notice
                  should the other party be in default of its responsibilities as
                  identified
                  in  the
                  agreement.

              

            

    

     

    Signed
      at
      Mumbai this 11th
      Day of
      March, 2005.

    

    Teliphone
      Inc.

    

    

    

             /s/
      George Mretrakos

    Per:
      __________________________

    

    Podar
      Enterprises

    

    

           
      /s/ Lawry Trevor-Duetsch

    Per:
      ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]