Document:

Converted by EDGARwiz

                   
LEASE

PAPAGO SPECTRUM
TEMPE, ARIZONA

Between

CALIBRUS, INC.
(Tenant)

and

PAPAGO SPECTRUM, L.L.C.
(Landlord)

TABLE OF CONTENTS

Page 
LEASE
AGREEMENT                                                                                                             
3

RENT

3

A.
Types of Rent 

3

(1)

Base
Rent 

3

(2)

Operating
Cost Share Rent

3

(3)

Additional
Rent

3

(4)

Rent

                                                                                                
3

B.

Payment
of Operating Cost Share
Rent                                                          
      3

 

(I)

Payment
of Estimated Operating Cost Share Rent 

3

(2)

Correction
of Operating Cost Share Rent 

 

4

(3)

Estimated
Operating Costs Budget for First Fiscal Year

4

C.
Definitions

4

(1)

Included
Operating Casts

4

(2)

Excluded
Operating Costs

5

(3)

Taxes

 

 

6

(4)

Lease
Year 

7

(5)

Fiscal
Year

7

D.

Computation
of Base Rent and Rent Adjustments 

 

7

(1)

Prorations

7

(2)

Default
Interest

7

(3)

Rent
Adjustments

7

(4)

Books
and Records 

 

8

(5)

Miscellaneous

8

3.
PREPARATION AND CONDITION OF PREMISES; POSSESSION AND SURRENDER OF PREMISES
  8

A.

Condition
of Premises 

 8

B.

Tenant,
Possession 

 8

C.

Maintenance

 8

4.

PROJECT
SERVICES,

 9

Heating
and Air Conditioning 

 9

Elevators

 9

Electricity

 9

Water

                                      
10

Janitorial
Service

  10

Interruption
of
Services                                                                                                              
10

  
  

Public
Utility Requirements 

  
11

Holidays

  
11

Parking

   11

5.

ALTERATIONS
AND REPAIRS 

 
Landlord’s Consent and
Conditions                                                                                            
13

 
Damage to
System                                                                                                                      14

 
No
liens                                                                                                                                      14

 
Ownership of
Improvements                                                                                                        15

 

6.        
USE
OF                                                                                                                           15

 

7.        
GOVERNMENTAL REQUIREMENTS AND BUILDING
RULES                                15

 

8.        
WAIVER OF CLAIMS, INDEMNIFICATION,
INSURANCE                                      16

 

A.

Indemnity
by
Tenant                                                                                              16

 

B.

Indemnity
by
Landlord                                                                                      
16

 

C.

Landlord's
Not Responsible, for Acts of
others                                                      16

D.

Tenant's
Insurance                                                                                             
16

 

E.

Insurance
Certificates                                                                                             18

 

 

9.        
FIRE AND
OTHER                                                                                                     
18

          
A.
Termination                                                                                                                18

          
B. 
Restoration                                                                                                                 18

 

10.      
EMMINENT
DOMAIN                                                                                                  
18

 

11. RIGHTS
RESERVED TO LANDLORD 

19

 

 

 

 

 

 

 

 

 

 

12.
TENANT'S DEFAULT

20

A.

Rent
Default 

20

B.

Assignment/Sublease
or Hazardous Substances Default 

21

C.

Other
Performance
Default                                                                                     21

D.
      Credit Default 

21
E.
       Vacation or Abandonment
Default                                                                        21

 

13.

LANDLORD
REMEDIES

2l

A.

Termination.
of Lease or Possession 

                                                     21

B.

Lease
Termination
Damages                                                                                
21

 

C.

Possession
Termination Damages 

22

D.

Landlord's
Remedies Cumulative 

22

E.

WAIVER
OF TRIAL BY JURY 

32

F.

Litigation
Cost

22

14
SURRENDER

22

15
HOLDOVER                                                                                                                       
   23 

16.
SUBORDINATION TO GROUND LEASES AND MORTGAGES 

23

A.

Subordination

23

B.

Termination
of Ground Lease or Foreclosure of Mortgage 

23

C.

Security
Deposit 

73

D
      Notice and "Right to Cure

23

E.

Definitions

24
     

   17.
  ASSIGNMENT AND SUBLEASE

 24

             A.
      In
General                                                                                                      
      24

B.

Landlord's
Consent 

24

C.

Procedure...
'

24

D.

Intentionally
Omitted

25

E.

Excess
Payment

25

F
        Recapture

35

18.
CONVEYANCE BY LANDLORD 

35

19.
ESTOPPEL CERTOFOCATE

25

 20
  SECURITY DEPOSIT

26

21.
FORCE MAJEURE 

 

26

22.
TENANT'S PERSONAL PROPERTY AND FIXTURES 

26

23.
NOTICES 

26

A.

Landlord

 22

26.
MISCELLANEOUS                                                                                                              27

A.

Successors
and
Assigns                                                                                          27

B.

Date
Payments Are
Due                                                                                         27

C.

Meaning
of "Landlord", "Re-Entry", "including" and
"Affiliate"                                  28

Time
of the Essence 

28

·

No
Option 

28

·

Severability

28

Governing
Law

28

Lease
Modification

28

No
Oral Modification 

28

Landlord's
Right to Cure

 28

Captions

28

·

Authority

28

·

Landlord's
Enforcement of Remedies

28

·

Entire
Agreement 

28

·

Landlord's
Title

29

Light
and Air Rights

29

Singular
and Plural

29

No
Recording by Tenant 

29

Exclusivity

29

·

No
Construction Against Drafting Party 

29

·

Survival

29

Rent
Not Based on Income

29

·

Building
Manager and Service Providers,

29

Late
Charge and Interest on Late Payments

29

·

Tenant's
Financial Statement

30

27.

UNRELATED
BUSINESS INCOME

30

28.

HAZARDOUS
SUBSTANCES

30

29.

EXCCJLPATION

30

30.
RENEWAL OPTION

30

31.
RIGHT OF FIRST OFFER

31

:APPENDIX
:A. - PLAN OF THE PREMISES

APPENDIX
A-1 - EXPANSION AREA

APPENDIX
B - RULES AND REGULATIONS-

APPENDIX
C - TENANT IMPROVEMENT AGREEMENT

APPENDIX
D - GROUND LEASES AND MORTGAGES CURRENTLY AFFECTING THE­PROJECT

APPENDIX
E - COMMENCEMENT DATE CONFIRMATION

APPENDIX
..F ESTIMATED OPERATING COSTS BUDGET FOR FIRST FISCAL YEAR.

LEASE

THIS LEASE (the "Lease") is made as of May 16, 2000 between PAPAGO
SPECTRUM, L.L.C., an Arizona limited liability company (the "Landlord")
and the Tenant as named in the Schedule below. The term "Project" means
the office building (the "Building") known as "Papago Spectrum," the
adjacent parking structure and driveway and parking facilities and the land (the
"Land") located at 1225 West Washington, Tempe, Arizona 85281.
"Premises" means that part of the Project leased to Tenant described in
the Schedule and outlined on Appendix A.

The
following schedule (the "Schedule") is an integral part of this Lease.
Terms defined in this Schedule shall have the same meaning throughout the
Lease.

SCHEDULE

1.

Tenant:
Calibrus, Inc., a Nevada corporation.

2.

Premises:
Suite

,
of the Building, as more specifically outlined on Appendix A.

3.

Rentable Area of the Premises: The Useable Area of the Premises is
approximately 13,295 square feet. With the Building's standard 13.23% load
factor for multi-tenant floors, the Rentable Area of the Premises is
approximately 15,054 square feet and Base Rent is based thereon. The Building
Rentable Area is 159,363 square feet resulting in the Tenant's Proportionate
Share shown on Section 4 of this Schedule. After the Initial Improvements have
been completed under the Tenant Improvement Agreement to a point permitting
measurement, Landlord will cause DMJM to remeasure the Useable Area of the
Premises based on BOMA standards and the parties will, within ten (10) days
after the figures are available, enter into a letter agreement prepared by
Landlord confirming the Useable and Rentable (based on the 13.23% load factor)
Area of the Premises and any required adjustments to Base Rent based thereon and
any required adjustment of Tenant's Proportionate Share for purposes of Section
4 of this Schedule and of the Landlord's Contribution under Appendix C. After
such remeasurement occurs, the Useable and Rentable Area of the Premises and the
Tenant's Proportionate Share will remain fixed throughout the Term, regardless
of future reconfigurations or other changes within the Building (excluding only
addition or removal of Building space through new construction, damage,
destruction or condemnation.)

4:

Tenant's
Proportionate Share: 9.45 % (based upon a total of 159,363 rentable square feet
in the Building), expressly subject to adjustment under Section 3 of this
Schedule.

5.

Security Deposit: $82,797, being three (3) month's Base Rent,
while the Guaranty described below is in effect. As a condition to release of
the Guaranty as provided therein, the :Security Deposit will be increased to
$165,594, being six (6) month's Base Rent. Provided there is no default by
Tenant, and no event which, with the passage of time or the giving of notice,
would constitute a default by Tenant, the Security Deposit will be reduced (by
application to rent due from Tenant) by $27,599 at the beginning of each of the
37th, 415', 45'h, 490' and
53`0 months of the Lease Term, such that the Security Deposit
thereafter will be $27,599 (one month's Base Rent), These 'amounts
will be adjusted based on the final Rentable Area square footage of the
Premises.

6.

Tenant's Real Estate Broker for this Lease: Lee and Associates (John
Cerchiai).

 

Landlord's
Real Estate Broker for this Lease: CB Richard Ellis, Inc. (Jerry Roberts),
Tenant Improvements, if any: See the Tenant Improvement Agreement attached
hereto as Appendix C.

9.

 Commencement Date: The Completion Date, as defined in
Appendix C Landlord and Tenant shall execute a Commencement Date Confirmation
substantially in the form of Appendix E promptly following the Commencement
Date.

10.

 Termination Date/Term: Five (5) years after the Commencement
Date as set forth herein, or if the Commencement Date is not the first day of a
month, then after the first day of the following month.

11.

Guarantor:
Jeffrey W. Holmes, Joan D. Holmes and R. Kirk Blesch. The Guaranty is limited
and subject to cancellation as provided therein.

12.

Expense
Stop: $5.00 per rentable square foot.

13.

Base
Rent:

Period

Annual

Monthly

Base
Rent

Base
Rent

Entire
Original Lease Terra

$331,188
(based on

$27,599

$22.00 per square foot of Rentable Area)

Expressly
subject to adjustment under Section 3 of this Schedule.

14.

Parking
Spaces: 4V2 spaces per 1,000 square feet of Rentable Area, on the terms and
conditions more specifically set forth in Article 4(I) below.

[THE
'REMAINDER. OF THIS PAGE HAS BEEN INTENTIONALLY LE1'I BLANK.]

1.

 LEASE AGREEMENT. On the terms stated in this Lease,
Landlord leases the Premises to Tenant, and Tenant leases the Premises from
Landlord, for the Term beginning on the Commencement Date and ending on the
Termination Date unless extended or sooner terminated pursuant to this
Lease.

2.

RENT.

A.

Types
of Rent Tenant shall pay the following Rent in the form of a check
to
Landlord at the following address:

Papago
Spectrum, L.L.C.

c/o
Chamberlain Development, -L.C. 505 South Madison

Tempe,
Arizona 85281

or
at such other location as Landlord may notify Tenant:

(1)

Base Rent in monthly installments in advance, the first
monthly installment payable concurrently with the execution of this Lease and
thereafter on or before the first day of each month of the Term in the amount
set forth on the Schedule.

(2)

Operating Cost Share Rent in an amount equal to the
Tenant's Proportionate Share of the Operating Costs and Taxes for the applicable
Fiscal Year of the Lease (the "Fiscal Year Operating Costs") minus the
Expense Stop (defined to be the amount set forth in the Schedule of the Lease,
paragraph 12) paid monthly in advance in an estimated amount. Definitions of
Operating Costs, Taxes and Tenant's Proportionate Share, and the method for
billing and payment of Operating Cost Share Rent are set forth in Sections 2B.,
2C and 2D. Operating Cost Share Rent will not be payable for the first 12
calendar months after the Commencement Date.

(3)

Additional Rent in the amount of all costs, expenses,
liabilities, and amounts which Tenant is required to pay under this Lease,
excluding Base Rent and Operating Cost Share Rent, but including any interest
for late payment of any item of Rent.

(4)

Rent as used in this Lease means Base Rent, Operating Cost
Share Rent and Additional Rent. Tenant's agreement to pay Rent is an independent
covenant, with no right of setoff, deduction or counterclaim of any kind,

13.

Payment
of Operating Cost. Share Rent.

(1) Payment of Estimated
Operating Cost Share Rent. Landlord shall
estimate the Fiscal Year Operating Costs by April 1st of each Fiscal Year, or as
soon as reasonably possible thereafter. Landlord may revise these estimates
whenever it obtains more accurate information, such as upon its receipt of the
actual real estate tax assessment or tax rate for the Project.

 

Within ten (10) days after receiving the original or revised
estimate from Landlord of Fiscal Year Operating Costs for a particular Fiscal
Year, together with the Expense Stop, Tenant shall pay Landlord one-twelfth
(1/12th) of Tenant's Proportionate Share of the estimated Operating Cost Share
Rent, multiplied by the number of months that have elapsed in the applicable
Fiscal Year to the date of such payment including the current month, minus
payments previously made by Tenant for the months elapsed. On the first day of
each month thereafter, Tenant shall pay Landlord one-twelfth (1/12th) of
Tenant's Proportionate Share of this estimate, until a new estimate becomes
applicable.

(2)

Correction of Operating Cost Share Rent. Landlord shall
deliver to Tenant a report for the previous Fiscal Year (the "Operating Cost
Report") by April 1st of each year, or as soon as reasonably possible
thereafter, setting forth (a) the actual Fiscal Year Operating Costs incurred
for the Fiscal Year in question, (b) the Expense Stop, (c) the amount of
Operating Cost Share Rent due from Tenant, and ((I) the amount of Operating Cost
Share Rent paid by Tenant. Within twenty (20) days after such delivery, Tenant
shall pay to Landlord the amount due minus the amount paid. If the amount paid
exceeds the amount due, Landlord shall apply the excess to Tenant's payments of
Operating Cost Share Rent next coming due.

(3)

Estimated Operating Costs
Budget for First Fiscal Year. The
First Fiscal Year's estimated Operating Costs budget is attached as
Appendix F for illustrative purposes only and (a) the budget is subject to
change by Landlord at any time and (b) Landlord providing an estimated budget
does not constitute a representation or warranty that Operating Costs will, in
total or in any line item, match the budget.

C.

Definitions.

(1) Included Operating Costs. "Operating Costs"
means any expenses, costs and disbursements of any kind (including Taxes), paid
or incurred by Landlord in connection with the management, maintenance,
operation, insurance, repair and other related activities in connection with any
part of the Project and of the personal property, fixtures, machinery,
equipment, systems and apparatus used in connection therewith, including the
cost of providing those services required to be furnished by Landlord under this
Lease. Operating Costs shall also include "Included Capital Items", consisting
of (a) the costs of any capital improvements which are intended to reduce
Operating Costs or improve safety, and those made to keep the Project in
compliance with governmental requirements applicable from time to time, provided
that the costs of any such item shall be amortized by Landlord, together with an
amount equal to interest at ten percent (10%) per annum, over the estimated
useful life of such item and such amortized amounts are only included in
Operating Costs for that portion of the useful life of the item which falls
within the Term; and (b) amortized reasonable reserves for replacements of
capital items, based on the useful life of the capital replacement, or
amortization of expenses incurred for such capital replacements with interest at
ten per cent (10%) per annum, over the estimated useful life thereof and such
amortized amounts are only included in Operating Costs for that portion of the
useful life of the item that falls within the Term, or a combination of
amortized reserves and amortized expenses, provided both are not charged for the
same time period for the same item. Further, if Landlord or any affiliate of
Landlord is the manager of the Project, management fees will not exceed three
per cent (3%) of gross rents including Base Rent or Minimum Rent and expense
reimbursements.

Operating Costs will include all payments made to the Papago
Arroyo Property Owners Association or otherwise required. under the Declaration
of Reciprocal Easements and Maintenance Covenant, or under the Declaration of
Covenants, Conditions and Restrictions for Papago Park Center.

If the Project is not fully occupied during any portion of any
Fiscal Year, Landlord may adjust (an "Equitable Adjustment") Operating
Costs to equal what would have been incurred by Landlord had the Project been
fully occupied. This Equitable Adjustment shall apply only to Operating Costs
which are variable and therefore increase as occupancy of the Project increases.
Landlord may incorporate the Equitable Adjustment in its estimates of Operating
Costs.

The increase in "Controllable Operating Costs" for any year
from the prior year will be limited to six per cent (6%). For this purpose,
"Controllable Operating Costs" shall include only those items over which
Landlord or the property manager has discretion or control. For example, but
without limitation, taxes, assessments, utilities and insurance premiums are not
Controllable Operating Costs.

If Landlord does not furnish any particular service whose cost
would have constituted an Operating Cost to a tenant other than Tenant who has
undertaken to perform such service itself, Operating Costs shall be increased by
the amount which Landlord would have incurred if it had furnished the service to
such tenant.

(2)

Excluded
Operating Costs. Operating Costs shall: not include:

 (a)

costs
of alterations of tenant premises;

 (b)

costs
of capital improvements other than Included Capital Items;

                                   (c)
       interest and principal payments on
mortgages or any other
debt
                       costs,
or rental payments on any ground lease of the Project;

  (d)

real
estate brokers' leasing commissions;

(e)

legal
fees, space planner fees and advertising expenses incurred with regard to
leasing the Building or portions thereof;

(f)

 any
cost or expenditure for which Landlord is reimbursed, by insurance proceeds or
otherwise, except by Operating Cost Share Rent; the cost of any service furnished to any
office tenant of the Project which Landlord does not make available to Tenant;

(g)

depreciation
(except on any Included Capital Items).; franchise or income taxes
imposed upon Landlord, 

(h)except
to the extent imposed in lieu of all or any part of Taxes; costs of correcting
defects in construction of the Building (as opposed to the cost of normal
repair, maintenance and replacement expected with the construction materials and
equipment installed in the Building in light of their specifications); 

(k)

legal
and auditing fees which are for the benefit of Landlord such as collecting
delinquent rents, preparing tax returns . and other financial statements, and
audits other than- those incurred in connection with the preparation of reports
required pursuant to Section 2B" above;

(l) 

the wages of any employee for services not related directly to the
management, maintenance, operation and repair of the Building; and

(m)

fines,
penalties and interest (including such items . resulting from late payment of
Taxes).

(3) Taxes. "Taxes" means any and all taxes,
assessments and charges of any kind, general or special, ordinary or
extraordinary, levied against the Project, which Landlord shall pay or become
obligated to pay in connection with the ownership, Leasing, renting, management,
use, occupancy, control or operation of the Project or of the personal property,
fixtures, machinery, equipment, systems and apparatus used in connection
therewith. Taxes shall include real estate taxes, personal property taxes, sewer
rents, water rents, special or general assessments, transit taxes, ad valorem
taxes, and any tax levied on the rents hereunder (including but not limited to
any applicable transaction privilege, sales or use taxes) or the interest of
Landlord under this Lease (the "Rent Tax"). Taxes shall also include all
fees and other costs and expenses paid by Landlord in reviewing any tax and in
seeking a refund or reduction of any Taxes, whether or not the Landlord is
ultimately successful.

For any year, the amount to be included in Taxes (a) from taxes or
assessments payable in installments, shall be the amount of the installments
(with any interest) due and payable during such year, and (b) from all other
Taxes, shall at Landlord's election be the amount accrued, assessed, or
otherwise imposed for such year or the amount due and payable in such year. Any
refund or other adjustment to any Taxes by the taxing authority, shall apply
during the year in which the adjustment is made. Notwithstanding anything to the
contrary set forth herein, Rent Taxes shall be paid by Tenant along with the
monthly installments of Rent paid to Landlord.

Taxes shall not include any net income (except Rent Tax), capital,
stock, succession, transfer, franchise, gift, estate or inheritance tax, except
to the extent that such tax shall be imposed in lieu of any portion of
Taxes.

For a period ending eight (8) years after issuance of a
Certificate of Occupancy for the Building, the Building is exempt from real
estate taxes, by agreement of the City of Tempe. However, Landlord is required
to pay an "in lieu" payment during such eight years pursuant to such agreement,
and the Expense Stop includes reimbursement to Landlord for a portion of that in
lieu of payment equal to $.50 per rentable square foot. Landlord will pay all in
lieu amounts due during such. eight year period and will not pass the same along
to Tenant through Operating Costs.

After the eight year period described above, the $.50 per square
foot amount will be removed from the Expense Stop, but the Expense Stop amount
will not change. The Building and other improvements in the Project (and
potentially the.Land) will be subject to real estate taxation after such eight
year period and the same will be included in Operating Costs (as part of Taxes)
for all purposes.

(4)

Lease Year. "Lease Year" means each consecutive
twelve-month period beginning with the Commencement Date, except that if the
Commencement Date is not the first day of a calendar month, then the first Lease
Year shall be the period from the Commencement Date through the final day of the
twelve months after the first day of the following month, and each subsequent
Lease Year shall be the twelve months following the prior Lease Year.

(5)

Fiscal
Year. "Fiscal Year" means the calendar year, except that the first
Fiscal Year and the last Fiscal Year of the Term may be a partial calendar
year.

D.

Computation
of Base Rent and Rent Adjustments.

(1)

Prorations. If this Lease begins on a day other than. the
first day of a month, the Base Rent and Operating Cost Share Rent shall be
prorated for such partial month based on the actual number of days in such
month, If this Lease begins on a day other than the first day, or ends on a day
other than the last day, of the fiscal year, Operating Cost Share Rent shall be
prorated for the applicable fiscal year.

(2)

Default
Interest. Any sum due from Tenant to Landlord not paid when due shall bear
interest from the date due until paid at eighteen percent (18%) per annum.

(3)

Rent Adjustments: The square footage of the Premises and
the Building computed pursuant to the Schedule (after the measurement thereof
per Item 3 of the Schedule) are conclusively deemed to be the actual square
footage thereof, without regard to any subsequent remeasurement of the Premises
or the Building. If any Operating Cost paid in one Fiscal Year relates to more
than one Fiscal Year, Landlord may proportionately allocate such Operating Cost
among the related Fiscal Years.

(4)

Books and Records. Landlord shall maintain books and
records reflecting the Operating Costs and Taxes in accordance with sound
accounting and management practices, Tenant and its certified public accountant
shall have the right to inspect Landlord's records at Landlord's office upon at
least seventy-two (72) hours' prior notice during normal business hours during
the ninety (90) days following the respective delivery of the Operating Cost
Report. The results of any such inspection shall be kept strictly confidential
by Tenant and its agents, and Tenant and its certified public accountant must
agree, in their contract for such services, to such confidentiality restrictions
and shall specifically agree that the results shall not be made available to any
other tenant of the Building. Unless Tenant sends to Landlord any written
exception to either such report within said ninety (90) day period, such report
shall be deemed final and accepted by Tenant. Tenant shall pay the amount shown
on both reports in the manner prescribed in this Lease, whether or not Tenant
takes any such written exception, without any prejudice to such exception. If
Tenant makes a timely exception, Landlord shall cause its independent certified
public accountant to issue a final and conclusive resolution of Tenant's
exception. Tenant shall pay the cost of such certification unless
Landlord's original determination of annual Operating Costs or Taxes
overstated the amounts thereof by more than five percent (5%).

(5)

Miscellaneous. So long as Tenant is in default of any
material obligation under this Lease, Tenant shall not be entitled to any refund
of any amount from Landlord. If this Lease is terminated for any reason prior to
the annual determination of Operating Cost Share Rent, either party shall pay
the full amount due to the other within fifteen (15) days after Landlord's
notice to Tenant of the amount when it is determined. Landlord may commingle any
payments made with respect to Operating Cost Share Rent, without payment of
interest.

3. PREPARATION AND CONDITION OF PREMISES; POSSESSION AND
SURRENDER OF PREMISES.

A, Condition of Premises. Except to the extent of the
Tenant Improvements item on the Schedule, Landlord is leasing the Premises to
Tenant "as is", without any obligation to alter, remodel, improve, repair or
decorate any part of the Premises. Landlord shall cause the Premises to be
completed in accordance with the Tenant Improvement Agreement attached as
Appendix C.

B.

Tenant' Possession. Tenant's taking possession of any
portion of the Premises shall be conclusive evidence that the Premises was in
good order, repair and condition. If Landlord authorizes Tenant to take
possession of any part of the Premises prior to the Commencement Date for
purposes of doing business, all terms of this Lease shall apply to such pre-Term
possession, including Base Rent at the rate set forth for the First Lease Year
in the Schedule prorated for any partial month,

C.

Maintenance. Throughout the Term, Tenant shall maintain the
Premises in their condition as of the Completion Date, loss or damage caused by
the elements, ordinary wear, and fire and other casualty excepted, and at the
termination of this Lease, or Tenant's right to possession, Tenant shall return
the Premises to Landlord in broom-clean condition. To the extent Tenant fails to
perform either obligation, Landlord may, but need not, restore the Premises to
such condition and Tenant shall pay the cost thereof.

4.

PROJECT
 SERVICES.

Landlord
shall furnish services as follows:

A, Heating and Air Conditioning. During the normal business
hours of 7:00 a.m. to 6:00 p.m., Monday through Friday, and 7:00 a .m. to 2:00
p.m, on Saturday, exclusive of Holidays (as defined in Subsection H, below),
Landlord shall furnish heating and air conditioning to provide a comfortable
temperature, in Landlord's judgment, for normal business operations, except to
the extent Tenant installs equipment which adversely affects the temperature
maintained by the air conditioning system. If Tenant installs such equipment,
Landlord may install supplementary air conditioning units in the Premises, and
Tenant shall pay to Landlord upon demand as Additional Rent the cost of
installation, operation, repair and maintenance thereof Landlord may enlarge the
Building's normal business hours, for this purpose, at any time in its sole
discretion, but will not reduce the hours below those set forth above.

Landlord shall furnish heating and air conditioning outside of
normal business hours ("After Hours HVAC"), at Tenant's sole cost and
expense, provided Tenant gives Landlord a request for After Hours HVAC at least
one business day in advance. Landlord shall charge Tenant for After Hours HVAC
at the "After Hours HVAC Rate" as reasonably established by Landlord from time
to time, which rate is, presently $5.00 per hour/per zone. Tenant acknowledges
that After Hours HVAC cannot be supplied to less than one full zone at a time.
In the event After Hours HVAC is requested by more than one tenant of the
Building for the same time period and the same zone, the charge for the After
Hours HVAC shall be apportioned among those tenants on an equal basis.

B.

Elevators. Landlord shall provide passenger elevator
service during normal business hours to Tenant in common with Landlord and all
other tenants. Landlord shall provide limited passenger service at other times,
except in case of an emergency.

C.

Electricity. Landlord shall provide sufficient electricity
to operate normal office lighting and equipment. This does not include special
lighting in excess of building standard, or any other item of electrical
equipment which singularly requires a voltage which exceeds other than one
hundred twenty (120) volts (plus/minus ten percent) single phase. Tenant shall
not install or operate in the Premises any electrically operated equipment or
other machinery, other than business machines and equipment normally employed
for general office use which do not require high electricity consumption for
operation, without obtaining the prior written consent of Landlord. If any or
all of Tenant's equipment requires electricity consumption in excess of that
which is necessary to operate normal office equipment, such consumption
(including consumption for computer or telephone rooms and special HVAC
equipment) shall be submetered by Landlord at Tenant's expense, and Tenant shall
reimburse Landlord as Additional Rent for the cost of its submetered consumption
based upon Landlord's average cost of electricity. Such Additional Rent shall be
in addition to Tenant's obligations pursuant to Section

2A(2) to pay Its Proportionate Share of Operating Costs. Tenant
shall not, without the prior written consent of Landlord, use any apparatus or
device in or about the Premises which shall cause any substantial noise or
vibration or which will increase the amount of electricity or water, if any,
usually furnished or supplied for use of the Premises as general office space,
but this will not apply to exclude normal office equipment such as personal
computers or servers. Tenant shall not connect with electric current or water
pipes, except through existing electrical or water outlets already in the
Premises, any apparatus or device for the purposes of using electric current or
water.

As used above, the tetra "sufficient electricity to operate normal
office lighting and equipment" means sufficient electrical capacity to operate
(i) incandescent lights, typewriters, calculating machines, photocopying
machines and other machines of the same low voltage electrical consumption
(120/208 volts), provided that the total rated electrical design load for said
lighting and machines of low electrical voltage shall not exceed 3.0 watts per
usable square foot; and (ii) lighting (277/480 volts), provided that the total
rated electrical design load for said lighting shall not exceed 2.0 watts per
usable square foot (each such rated electrical design load to be hereinafter
referred to as the "Building Standard Rated Electrical Design Load").
Should Tenant's total rated electrical design load for the entire Premises or
any portion thereof (including, but not limited to, computer or telephone rooms)
exceed the Building Standard Rated Electrical Design Load for either low or high
voltage electrical consumption, or if Tenant's electrical design requires low
voltage or high voltage circuits in excess of Tenant's share of the building
standard circuits, Landlord will (at Tenant's expense) install such additional
circuits and Landlord will (at Tenant's expense) install such
additional circuits and associated high voltage panels and/or additional low
voltage panels with associated transformers (which additional circuits, panels
and transformers shall be hereinafter referred to as the "Additional
Electrical Equipment"). If the Additional Electrical Equipment is
installed because Tenant's low voltage or high voltage rated electrical design
load exceeds the applicable Building Standard Rated Electrical Design Load, then
a meter shall also be added (at Tenant's expense) to measure the electricity
used through the Additional Electrical Equipment. The design and installation of
any Additional Electrical Equipment (or any related meter) required by Tenant
shall be subject to the prior approval of Landlord (which approval shall not be
unreasonably withheld). All expenses incurred by Landlord in connection with the
review and approval of any Additional Electrical Equipment shall also be
reimbursed to Landlord by Tenant. Tenant shall also pay on demand the actual
metered cost of electricity consumed through the Additional Electrical Equipment
(if applicable), plus any actual accounting expenses incurred by Landlord in
connection with the metering thereof

D.

Water. Landlord shall furnish hot and cold tap water for
drinking and toilet purposes. Tenant shall pay Landlord for water furnished for
any other purpose as Additional Rent at rates fixed by Landlord. Tenant shall
not permit water to be wasted.

E.

Janitorial
Service. Landlord shall furnish janitorial service as generally provided to
other tenants in the Building, except on the Holidays listed in Subsection H,
below.

F.

Interruption
of Services. If any of the Building equipment or machinery ceases to
function properly for any cause, Landlord shall use reasonable diligence to
repair the samepromptly, Landlord's inability to furnish, to any extent, the
Project services set forth in this Section 4, or any cessation thereof resulting
from. any causes, including any entry for repairs pursuant to this Lease, and
any renovation, redecoration or rehabilitation of any area of the Building shall
not render Landlord liable for damages to either person or property or for
interruption or loss to Tenant's business, nor be construed as an eviction of
Tenant, nor work an abatement of any portion of Rent, nor relieve Tenant from
fulfillment  of any covenant or agreement hereof. However, in the event
that an interruption of the Project services set forth in this Section 4 causes
the Premises to be untenantable for a period of at least five (5) consecutive
business days, Base Rent shall be thereafter abated proportionately.

G. Public Utility Requirements. In the event any public
utility supplying energy requires, or government law, regulation, executive or
administrative order results in a requirement, that Landlord or Tenant must
reduce, or maintain at a certain level, the consumption of electricity for the
Premises, the Building or the Project, which affects the heating,
air-conditioning, lighting, or hours of operation of the Premises, Building or
Project, Landlord and Tenant shall each adhere to and abide by these laws,
regulations or administrative orders without any reduction or abatement in
Rent.

H, Holidays. Landlord shall not be required to furnish
services on the following "Holidays"; New Year's Day, Martin Luther
King Day, Presidents' Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving
Day, Christmas Day, any other national holiday promulgated by a Presidential
Executive Order or Congressional Act and any other holiday generally recognized
as such by landlords of office space in the metropolitan Phoenix office market,
as determined by Landlord in good faith. If, in the case of any specific holiday
mentioned in the preceding sentence, a different day shall be observed than the
respective day mentioned, then that day which constitutes the day observed by
national banks in Phoenix, Arizona on account of said holiday shall constitute
the Holiday under this Lease.

I.

Parking.

(1) Provided that Tenant shall not default or be in default at any
time under the terms and conditions of this Lease, and provided further that
Tenant shall pay all parking license fees, plus tax and other charges relating
thereto, and provided further that Tenant shall comply with and abide by any
parking rules and regulations from time to time in effect, Tenant shall have a
license to park up to, but not more than, the number described in Item 14 of the
Schedule of passenger automobiles (but not oversized or abnormally heavy
vehicles) in parking spaces located in the parking lots or structures provided
by Landlord from time to time for the Project, of which spaces (the "Total
Spaces") (i) twenty (20) (the "Covered Spaces") shall be in reserved,
covered parking areas provided and designated by Landlord from time to time, and
(ii) the balance of the spaces (the "Uncovered, Unreserved Surface
Spaces") shall be uncovered, unreserved spaces used in common with all other
tenants, visitors and occupants to or in the Project.

The parking privileges or spaces made available to Tenant as
provided above in this paragraph shall be charged to Tenant during the initial
Lease Term beginning on the first day of the Lease Term at the rate of, and
Tenant shall then pay to Landlord in cash and in advance (plus tax thereon) for
each such privilege or space, $35.00 per month, plus tax, for each Covered
Space. The Uncovered, Unreserved Surface Spaces shall be available free of
charge for the initial Lease Term.

Tenant covenants and agrees not to park or permit to be parked by
its agents, servants or employees more vehicles than the Total Spaces at any
time at or on the Project or any lots provided by Landlord for the Project and
in the event Tenant causes or permits more vehicles than designated herein to be
parked, the same shall constitute a default under this Lease. Each automobile
shall, at Landlord's option to be exercised from, time to time, bear
a permanently affixed and visible identification sticker or tag to be provided
from time to time by Landlord. Tenant shall not and shall not permit its
employees, agents, servants, licensees, customers or invitees to park any
vehicles in locations other than those specifically designated by Landlord as
being for Tenant's use. This license is for self-service parking only and does
not include additional rights or services, Landlord shall not have any
obligation to monitor or enforce Tenant's parking licenses or privileges. Except
for the gross negligence or willful misconduct of Landlord, neither Landlord nor
its operators, agents, servants, licensees or employees shall be liable for.:
(i) loss or damage to any vehicle or other personal property parked or located
upon or within such parking spaces or any parking areas whether pursuant to this
license or otherwise and whether caused by fire, theft, explosion, strikes,
riots or any other cause whatsoever; or (ii) injury to or death of any person
in, about or around such parking spaces or any parking areas or any vehicles
parking therein or in proximity thereto whether caused by fire, theft, assault,
explosion, riot or any other cause whatsoever and Tenant hereby waives any claim
for or in respect to the above. Tenant further agrees to indemnify, defend and
hold harmless Landlord for, from and against all claims or liabilities arising
out of loss or damages to property or injury to or death of persons, or both,
relating to. any of the foregoing unless directly caused by the gross negligence
or willful misconduct of Landlord. Except pursuant to an assignment permitted
under the Lease, Tenant shall not assign any of its rights hereunder and in the
event an attempted assignment is made, it shall be void.

(2)

In the event any tax, surcharge, imposition or regulatory fee is
at any time imposed by any governmental authority upon or with respect to
parking, parking spaces, the parking rights or license granted hereby, the
parking fees to be paid hereunder, or the vehicles parking in the parking spaces
referred to herein, Tenant shall pay the same to Landlord as additional rent
hereunder, payable with monthly installments of Monthly Rent or as otherwise
required by Landlord.

(3)

Landlord or its agents shall have the right (but not the
obligation), from time to time as a part of Operating Costs, to monitor all
parking spaces for the Project to assure that Tenant, its employees, agents and
contractors are parking only in the areas designated by Landlord from time to
time for Tenant's use. Landlord shall have the right to tow away, at the expense
of the vehicle owner, any vehicles that do not park in spaces designated for
Tenant's use or any vehicles of Tenant's invitees not parked in areas designated
for Tenant's use or visitors parking. Landlord shall only invoice the Tenant and
not individual employees for said parking. Landlord shall have the right to
modify the overall site parking plan including the right to change the location
of any spaces previously reserved for Tenant's use, whether covered or uncovered
and/or whether surface or garage. Landlord shall also have the right to pursue
other rights and remedies available at law or in equity.

(4)

Landlord or its agents shall have the right from time to time with
ten (10) days prior written notice to the Tenant to substitute other Covered
Spaces within the Project for the Covered Spaces referenced hereinabove.

(5)

Landlord or its agents reserves the right to cancel the above
Covered Spaces and/or convert them to Uncovered, Unreserved Surface Spaces for
nonpayment of rent in excess of one (.1j month. Landlord will give five (5)
business days written notice prior to the exercise of such right.

(6)

All rental or other charges set forth above shall be due and
payable at the same times as the monthly installments of Base Rent are payable
under the Lease and shall in general be subject to the terms and provisions as
are applicable to rental installments under the Lease, including without
limitation, payment of privilege, rental or other taxes on such rental
charges.

5.
ALTERATIONS AND REPAIRS. Landlord's Consent and Conditions.

Tenant shall not make any improvements or alterations to the
Premises (the "Work") without in each instance submitting plans and
specifications for the Work to Landlord and obtaining Landlord's prior written
consent which will not be unreasonably withheld, Tenant shall pay Landlord's
standard charge for review of the plans and all other items submitted by Tenant.
Landlord will be deemed to be acting reasonably in withholding its consent for
any Work which (a) impacts the base structural components or systems of the
Building, (b) impacts any other tenant's premises, or (c) is visible from
outside the Premises.

Tenant shall reimburse Landlord for actual costs incurred for
review of the plans and all other items submitted by Tenant. Tenant shall pay
for the cost of all Work. All Work shall become the property of Landlord upon
its installation, except for Tenant's trade fixtures and for items which
Landlord requires Tenant to remove at Tenant's cost at the termination of the
Lease pursuant to Section 5E.

The following requirements shall apply to all Work:

(1)

Prior to commencement, Tenant shall furnish to Landlord building
permits, certificates of insurance satisfactory to Landlord, and, at Landlord's
request, security for payment of all costs.

(2)

Tenant shall perform all Work so as to maintain peace and harmony
among other contractors serving the Project and shall avoid interference with
other work to be performed or services to be rendered in the Project.

(3)

The Work shall be performed in a good and workmanlike manner,
meeting the standard for construction and quality of materials in the Building,
and shall comply with all insurance requirements and all applicable governmental
laws, ordinances and regulations ("Governmental Requirements").

(4)

Tenant shall perform all Work so as to minimize or prevent
disruption to other tenants, and Tenant shall comply with all reasonable
requests of Landlord in response to complaints from other tenants.

(5)

Tenant shall perform all' Work in compliance with Landlord's
"Policies., Rules and Procedures for Construction Projects" in effect
at the time the Work is performed.

(6)

Tenant shall permit Landlord to supervise all Work. Landlord may
charge a supervisory fee not to exceed fifteen percent (15%) of labor, material,
and all other costs of the Work, if Landlord's employees or contractors perform
the Work.

(7)

Upon completion, Tenant shall furnish Landlord with contractor's
affidavits and full and final statutory waivers of liens, as-built plans and
specifications, and receipted bills covering all labor and materials, and all
other close-out documentation required in Landlord's "Policies, Rules and
Procedures for Construction Projects".

B.

Damage to Systems. If any part of the mechanical,
electrical or other systems in the Premises shall be damaged, Tenant shall
promptly notify Landlord, and Landlord shall repair such damage. Landlord may
also at any reasonable time make any repairs or alterations which Landlord deems
necessary for the safety or protection of the Project, or which Landlord is
required to make by any court or pursuant to any Governmental Requirement.
Tenant shall at its expense make all other repairs necessary to keep the
Premises, and Tenant's fixtures and personal property, in good order, condition
and repair; to the extent Tenant fails to do so, Landlord may make such repairs
itself The cost of any repairs made by Landlord on account of
Tenant's default, or on account of the misuse or neglect by Tenant or
its invitees, contractors or agents anywhere in the Project, shall become
Additional Rent payable by Tenant on demand.

C.

No Liens. Tenant has no authority to cause or permit any
lien or encumbrance of any kind to affect Landlord's interest in the Project;
any such lien or encumbrance shall attach to Tenant's interest only. If any
mechanic's lien shall be filed or claim of lien made for work or materials
furnished to Tenant, then Tenant shall at its expense within ten (10) days
thereafter either discharge or contest the lien or claim. If Tenant contests the
lien or claim, then Tenant shall (i) within such ten (10) day period, provide
Landlord adequate security for the lien or claim, (ii) contest the lien or claim
in good faith by appropriate proceedings that operate to stay its enforcement,
and (iii) pay promptly any final adverse judgment entered in any such
proceeding. If Tenant does not comply with these requirements, Landlord may
discharge the lien or claim, and the amount paid, as well as attorney's fees and
other expenses incurred by Landlord, shall become Additional Rent payable by
Tenant on demand,

D. Ownership of Improvements. All Work as defined in this
Section 5, partitions, hardware, equipment, machinery and all other improvements
and all fixtures except trade fixtures, constructed in the Premises by either
Landlord or Tenant, (i) shall become Landlord's property upon installation
without compensation to Tenant, unless Landlord consents Otherwise in writing,
and (ii) shall at Landlord's option either (a) be surrendered to Landlord with
the Premises at the termination of the Lease or of Tenant's right to possession,
or (b) be removed in accordance with Subsection 5E below (unless Landlord at the
time it gives its consent to the performance of such construction expressly
waives in writing the right to require such removal).

Removal at Termination. Upon the termination of this Lease
or Tenant's right of possession Tenant shall remove from the Project its trade
fixtures, furniture, moveable equipment and other personal property, any
improvements which Landlord elects shall be removed by Tenant pursuant to
Section 5D, and any improvements to any portion of the Project other than the
Premises.. Tenant shall repair all damage caused by the installation or removal
of any of the foregoing items. If Tenant does not timely remove such property,
then Tenant shall be conclusively presumed to have, at Landlord's election (i)
conveyed such property to Landlord without compensation or (ii) abandoned such
property, and Landlord may dispose of or store any part thereof in any manner at
Tenant's sole cost, without waiving Landlord's right to claim from Tenant all
expenses arising out of Tenant's failure to remove the property, and without
liability to Tenant or any other person. Landlord shall have no duty to be a
bailee of any such personal property. If Landlord elects abandonment, Tenant
shall pay to Landlord, upon demand, any expenses incurred for disposition.

6.

USE OF PREMISES. Tenant shall use the Premises only for
general office purposes. Tenant shall not allow more than one employee or
independent contractor per each one hundred fifty (150) usable square feet of
the Premises to use or occupy the Premises. Tenant shall not allow any use of
the Premises which will negatively affect the cost of coverage of Landlord's
insurance on the Project. Tenant shall not allow any inflammable or explosive
liquids or materials to be kept on the Premises. Tenant shall not allow any use
of the Premises which would cause the value or utility of any part of the
Premises to diminish or would interfere with any other Tenant or with the
operation of the Project by Landlord. Tenant shall not permit any nuisance or
waste upon the Premises, or allow any offensive noise or odor in or around the
Premises.

If any governmental authority shall deem .the Premises
to be a "place of public accommodation" under the Americans with Disabilities
Act or any other comparable law as a result of Tenant's use, Tenant shall either
modify its use to cause such authority to rescind its designation or be
responsible for any alterations, structural or otherwise, required to be made to
the Building or the Premises under such laws.

7.

GOVERNMENTAL REOUIREMENTS AND BUILDING RULES. Tenant shall
comply with all Governmental Requirements applying to its use of the Premises.
Tenant shall also comply with all reasonable rules established for the Project
from time to time by Landlord. The present rules and regulations are contained
in Appendix B. Failure by another tenant to comply with the rules or failure by
Landlord to enforce them shall not relieve Tenant of its obligation to comply
with the rules or make Landlord responsible to Tenant in any way.

Landlord shall use reasonable efforts to apply the rules and
regulations uniformly with respect to Tenant and tenants in the Building under
leases containing rules and regulations similar to this Lease. In the event of
alterations and repairs performed by Tenant, Tenant shall comply with the
provisions of Section 5 of this Lease and also Landlord's "Policies, Rules and
Regulations for Construction Projects".

WAIVER OF CLAIMS; INDEMNIFICATION; INSURANCE.

A.

Indemnity by Tenant. Tenant shall and does hereby indemnify
Landlord and agrees to save it harmless and, at Landlord's option, defend it
for, from and against any and all claims (whether groundless or not), actions,
damages, liabilities and expenses, including without limitation attorneys' and
other professional fees, in connection with loss of life, personal injury and/or
damage to property suffered by any person which is caused by Tenant, its
officers, agents, contractors, employees, licensees and invitees, or which
arises from or out of the business of Tenant or the occupancy or use by Tenant
of the Premises or any part thereof or of any other part of the Project, whether
occasioned or alleged to be occasioned wholly or in part by any act or omission
of Tenant, its officers, agents, contractors, employees or invitees..

B.

Indemnity by Landlord. To the extent not covered by Section
8A above or Tenant's insurance, and subject to the exclusions and limitations
set forth in this Lease, including Section 8C, Landlord shall and does hereby
indemnify Tenant and agrees to save it harmless for, from and against any and
all claims (whether groundless or not), actions, damages, liabilities and
expenses, including without limitation attorneys' and other professional fees,
in connection with loss of life, personal injury and/or damage to property
suffered by any person which is caused by the negligent or willful act or
omission of Landlord, its officers, agents, contractors or employees.

C.

Landlord's Not Responsible for Acts of Others. Landlord
shall not be responsible or liable to Tenant, or to those claiming by, through
or under Tenant, for any loss or damage which may be occasioned by or through
the acts of omissions of persons in, or occupying leased space in, the Project
or any part of any premises adjacent to or connecting with the Project,
including the failure of such persons to perform their lease obligations, or for
any loss or damage resulting to Tenant, or those claiming by, through or under
Tenant, or its or their property, from the `breaking, bursting, stoppage or
leaking of electrical, water, gas, sewer; sprinkler, steam or other cable,
wires, pipes or other equipment. To the extent permitted by law, Tenant waives
any claims it may have against Landlord or its officers, directors, employees or
agents for business interruption or damage to property sustained by Tenant as a
result of any act or omission of Landlord, excepting only Landlord's gross
negligence. To the maximum extent permitted by law, Tenant agrees to use and
occupy the Premises, and to use such other portions of the Project as Tenant is
herein given the right to use, at Tenant's own risk.

D.

Tenant's
Insurance. Tenant shall maintain insurance as follows, with such other
terms, coverages and insurers, as Landlord shall reasonably require from time to
time:

(1)

Commercial
General Liability Insurance, with (a) Contractual Liability including the
indemnification provisions contained in this Lease, (b) a severability
ofinterest endorsement, (c) limits of not less than Two Million Dollars
($2,000,000.00) combined single limit per occurrence and not less than Two
Million Dollars ($2,000,000.00) in the aggregate for bodily injury, sickness or
death, and property damage, and (d) umbrella coverage of not less than Five
Million Dollars ($5,000,000.00).

(2)

Property Insurance against "All Risks" of physical loss covering
the replacement cost of all improvements, fixtures and personal property. Tenant
waives all rights of subrogation, and Tenant's property insurance shall include
a. waiver of subrogation in favor of Landlord.

(3)

Workers'
compensation or similar insurance in form and amounts required by law, and
Employer's Liability with not less than the following limits:

		
	
Each
Accident
	
$500,000.00

	
Disease--Policy
Limit
	
$500,000.00

	
Disease--Each.
Employee
	
$500,000.00

(4)

Business
interruption insurance.

Such
insurance shall contain a waiver of subrogation provision in favor of Landlord
and its agents.

Tenant's insurance shall be primary and not contributory to that
carried by Landlord, its agents, or mortgagee. Landlord, and if any, Landlord's
building manager or agent and ground. lessor shall be named as
additional insureds as respects to insurance required of the Tenant in Section
8D(1). The company or companies writing any insurance which Tenant is required
to maintain under this Lease, as well as the form of such insurance, shall at
all times be subject to Landlord's approval, and any such company shall be
licensed to do business in the state in which the Building is located. Such
insurance companies shall have a A.M. Best rating of A VI or better.

Tenant shall cause any contractor of Tenant performing work on the
Premises to maintain insurance as follows, with such other terms, coverages and
insurers, as Landlord shall reasonably require from time to time:

(1)

Commercial General Liability Insurance, including contractor's
liability coverage, contractual liability coverage, completed operations
coverage, broad form property damage endorsement, and contractor's protective
liability coverage, to afford protection with limits, for each occurrence, of
not less than One Million Dollars ($1,000,"000.00) with respect to personal
injury, death or property damage.

(2)

Workers'
compensation or similar insurance in form and amounts required by law, and
Employer's Liability with not less than the following limits:

Each
Accident

$500,000.00

		
	
Disease-Policy
Limit
	
$500,000.00

	
Disease--Each
Employee
	
$500,000.00

Such insurance shall contain a waiver of subrogation provision in
favor of Landlord and its agents.

Tenant's contractor's insurance shall be primary and not
contributory to that carried by Tenant, Landlord, their agents or mortgagees,
Tenant and Landlord, and if any, Landlord's building manager or agent, mortgagee
or ground lessor shall be named as additional insured on Tenant's contractor's
insurance policies.

E, Insurance Certificates. Tenant shall deliver to Landlord
certificates evidencing all required insurance no later than five (5) days prior
to the Commencement Date and each renewal date. Each certificate will provide
for thirty (30) days prior written notice of cancellation to Landlord and
Tenant.

F. Landlord's Insurance. Landlord shall maintain "All-Risk"
property insurance at replacement cost, including loss of rents, on the
Building, and Commercial General Liability insurance policies covering the
common areas of the Building, each with such terms, coverages and conditions as
are normally carried by reasonably prudent owners of properties similar to the
Project. With respect to property insurance, Landlord and Tenant mutually waive
all rights of subrogation, and the respective "All-Risk" coverage property
insurance policies carried by Landlord and Tenant shall contain enforceable
waiver of subrogation endorsements.

FIRE AND OTHER CASUALTY.

A.

Termination. If a fire or other casualty causes substantial
damage to the Building or the Premises, Landlord shall engage a registered
architect to certify within one (1) month of the casualty to both Landlord and
Tenant the amount of time needed to restore the Building and the Premises to
tenantability, using standard working methods. If the time needed exceeds six
(6) months from the beginning of the restoration, or two (2) months therefrom if
the restoration would begin during the last twelve (12) months of the Lease,
then in the case of the Premises, either Landlord or Tenant may terminate this
Lease, and in the case of the Building, Landlord may terminate this Lease, by
notice to the other party within ten (10) days after the notifying party's
receipt of the architect's certificate. The termination shall be effective
thirty (30) days from the date of the notice and Rent shall be paid by Tenant to
that date, with an abatement for any portion of the Premises which has been
untenantable after the casualty.

B.

Restoration. If.a casualty causes damage to the
Building or the Premises but this Lease is not terminated for any reason, then
subject to the rights of any mortgagees or ground lessors, Landlord shall obtain
the applicable insurance proceeds and diligently restore the Building and the
Premises subject to current Governmental Requirements. Tenant shall replace its
damaged improvements, personal property and fixtures. Rent shall be abated on a
per diem basis during the restoration for any portion of the Premises which is
untenantable, except to the extent that Tenant's negligence caused the
casualty.

10.

EMINENT DOMAIN. If a part of the Project is taken by
eminent domain or deed in lieu thereof which is so substantial that the Premises
cannot reasonably be used by Tenant for the operation of its business, then
either party may terminate this Lease effective as of the date of the taking. If
any substantial portion of the Project is taken without affecting the Premises,
then Landlord may terminate this Lease as of the date of such taking. Rent shall
abate from the date of the taking in proportion to any part of the Premises
taken. The entire award for a taking of any kind shall be paid to Landlord, and
Tenant shall have no right to share in the award. All obligations accrued to the
date of the taking shall be performed by the party liable to perform said
obligations, as set forth herein.

11.

RIGHTS RESERVED TO LANDLORD.

Landlord may exercise at any time any attic following rights
respecting the operation of the Project without liability to the Tenant of any
kind:

A.

Name.
To change the name or street address of the Building or the suite number(s) of
the Premises.

B.

Signs. To install and maintain any signs on the exterior
and in the interior of the Building, and to approve at its sole discretion,
prior to installation, any of Tenant's signs in the Premises visible from the
common areas or the exterior of the Building. Tenant shall be entitled to
install Building signage at its sole cost, in a manner and at a location
approved by Landlord. Tenant shall be solely responsible to maintain such
signage in a good and attractive condition and to remove such signage upon
termination or expiration of the Lease and to repair all damage resulting
therefrom, at Tenant's sole cost. In addition to Landlord's approval of Building
signage, Tenant agrees and acknowledges that it is solely responsible to obtain
all required permits from the City of Tempe, and that such signage is subject to
the approval of Papago Park Center in accordance with their signage requirements
and to compliance with established signage guidelines for Papago Spectrum,
copies of which have been delivered to Tenant.

C.

Window Treatments. To approve, at its discretion, prior to
installation, any shades, blinds, ventilators or window treatments of any kind,
as well as any lighting within the Premises that may be visible from the
exterior of the Building or any interior common area.

D.

Keys.
To retain and use at any time passkeys to enter the Premises or any door within
the Premises. Tenant shall not alter or add any lock or bolt.

E.

Access.
To have access to inspect the Premises, and to perform its obligations, or make
repairs, alterations, additions or improvements, as permitted by this Lease.

F.

Preparation for Reoccupancy. To decorate, remodel, repair,
alter or otherwise prepare the Premises for reoccupancy at any time after Tenant
abandons the Premises, without relieving Tenant of any obligation to pay
Rent.

G.

Heavy Articles. To approve the weight, size, placement and
time and manner of movement within the Building of any safe, central filing
system or other heavy article of Tenant's property. Tenant shall move its
property entirely at its own risk.

H.

Show Premises. To show the Premises to prospective
purchasers, tenants, brokers, lenders, investors, rating agencies or others at
any reasonable time, provided that Landlord gives prior notice to Tenant and
does not materially interfere with Tenant's use of the Premises.

I.

Intentionally
Omitted.

J.

Use of Lockbox. To designate a lockbox collection agent for
collections of amounts due Landlord, In that case, the date of payment of Rent
or other sums shall be the date of the agent's receipt of such payment or the
date of actual collection if payment is made in the form of a negotiable
instrument thereafter dishonored upon presentment, However, Landlord may reject
any payment for all purposes as of the date of receipt or actual collection by
mailing to Tenant within 21 days after such receipt or collection a check equal
to the amount sent by Tenant.

K.

Repairs and Alterations. To make repairs or alterations to
the Project and in doing so transport any required material through the
Premises, to close entrances, doors, corridors, elevators and other facilities
in the Project, to open any ceiling in the Premises, or to temporarily suspend
services or use of common areas in the Building. Landlord may perform any such
repairs or alterations during ordinary business hours, except that Tenant may
require any Work in the Premises to be done after business hours if Tenant pays
Landlord for overtime and any other expenses incurred. Landlord may do or permit
any work on any nearby building, land, street, alley or way,

. L. Landlord's Agents. If Tenant is in default under this
Lease, possession of Tenant's funds or negotiation of Tenant's negotiable
instrument by any of Landlord's agents shall not waive any breach by Tenant or
any remedies of Landlord under this Lease.

M.

Building Services. To install, use and maintain through the
Premises, pipes, conduits, wires and ducts serving the Building, provided that
such installation, use and maintenance does not unreasonably interfere with
Tenant's use of the Premises.

N.

Other
Actions. To take any other action which Landlord deems reasonable in
connection with the operation, maintenance or preservation of the Building.

12.
TENANT'S DEFAULT.

Any
of the following shall constitute a default by Tenant:

A.

Rent
Default. Tenant fails to pay any Rent when due;

B.

Assignment/Sublease
or Hazardous Substances Default. Tenant defaults in its obligations under.
Section 17 Assignment and Sublease or Section 28 Hazardous Substances;

C. Other Performance Default. Tenant fails to perform any
other obligation to Landlord under this Lease, and, in the case of only the
first two (2) such failures during the Term of this Lease, this failure
continues for ten (10) days after written notice from Landlord, except that if
Tenant begins to cure its failure within the ten (10) day period but cannot
reasonably complete its cure within such period, then, so long as Tenant
continues to diligently attempt to cure its failure, the ten (10) day period
shall be extended to sixty (60) days, or such lesser period as is reasonably
necessary to complete the cure;

D.

Credit
Default. One of the following credit defaults occurs:

(1)

Tenant commences any proceeding under any law relating to
bankruptcy, insolvency, reorganization or relief of debts, or seeks appointment
of a receiver, trustee, custodian or other similar official for the Tenant or
for any substantial part of its property, or any such proceeding is commenced
against Tenant and either remains undismissed for a period of thirty  days
or results in the entry of an order for relief against Tenant which is not fully
stayed within seven days after entry;

(2)

Tenant becomes insolvent or bankrupt, does not generally pay its
debts as they become due, or admits in writing its inability to pay its debts,
or makes a general assignment for the benefit of creditors;

(3)

Any
third party obtains a levy or attachment under process of law against Tenant's
leasehold interest.

E.

Vacation
or Abandonment Default. Tenant vacates or abandons the Premises. 13.
LANDLORD REMEDIES.

A.

Termination of Lease or Possession. If Tenant default,
Landlord may elect by notice to Tenant either to terminate this Lease or to
terminate Tenant's possession of the Premises without terminating this Lease. In
either case, Tenant shall immediately vacate the Premises and deliver possession
to Landlord, and Landlord may repossess the Premises and may, at Tenant's sole
cost, remove any of Tenant's signs and any of its other property, without
relinquishing its right to receive Rent or any other right against Tenant.

B.

Lease Termination Damages. If Landlord terminates the Lease,
Tenant shall pay to Landlord all Rent due on or before the date of termination,
plus Landlord's reasonable estimate of the aggregate Rent that would have been
payable from the date of termination through the Termination Date, reduced by
the rental value of the Premises calculated as of the date of termination for
the same period, taking into account anticipated vacancy prior to reletting,
relating expenses and market concessions, both discounted to present value at
the rate of five percent (5%) per annum. If Landlord shall relet any part of the
Premises for any part of such period before such present value amount shall have
been paid by Tenant or finally determined by

a court, then the amount of Rent payable pursuant to such
reletting (taking into account vacancy prior to reletting and reletting expenses
or concessions) shall be deemed to be the reasonable rental value for that
portion of the Premises relet during the period of the reletting.

C.

Possession Termination Damages,. If Landlord
terminates Tenant's right to possession without terminating the Lease and
Landlord takes possession of the Premises itself, Landlord may relet any part of
the Premises for such Rent, for such time, and upon such terms as Landlord in
its sole discretion shall determine, without any' obligation to do so prior to
renting other vacant areas in the Building. Any proceeds from reletting the
Premises shall first be applied to the. expenses of reletting,
including redecoration, repair, alteration, advertising, brokerage, legal, and
other reasonably necessary expenses. If the reletting proceeds after payment of
expenses are insufficient to pay the full amount of Rent under this Lease,
Tenant shall pay such deficiency to Landlord monthly upon demand as it becomes
due. Any excess proceeds shall be retained by Landlord.

D.

Landlord's Remedies Cumulative, All of Landlord's remedies
under this Lease shall be in addition to all other remedies Landlord may have at
law or in equity. Waiver by Landlord of any breach of any obligation by Tenant
shall be effective only if it is in writing, and shall not be deemed a waiver of
any other breach, or any subsequent breach of the same obligation. Landlord's
acceptance of payment by Tenant shall not constitute a waiver of any breach by
Tenant, and if the acceptance occurs after Landlord's notice to Tenant, or
termination of the Lease or of Tenant's right to possession, the acceptance
shall not affect such notice or termination. Acceptance of payment by Landlord
after commencement of a legal proceeding or final judgment shall not affect such
proceeding or judgment. Landlord may advance such monies and take such other
actions for Tenant's account as reasonably may be required to cure or mitigate
any default by Tenant. Tenant shall immediately reimburse Landlord for any such
advance, and such sums shall bear interest at the default interest rate until
paid.

E.

WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES TRIAL BY JURY IN
THE EVENT OF ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH THIS
LEASE. EACH PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH
THIS LEASE IN A :i{EDERAL OR STATE COURT LOCATED IN MARICOPA COUNTY, ARIZONA,
CONSENTS TO THE JURISDICTION OF SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY
PROCEEDING TRANSFERRED FROM SUCH COURTS ON THE GROUND OF IMPROPER VENUE OR.
INCONVENIENT FORUM.

F.

Litigation
Costs. The nondefaulting party shall pay the other party's reasonable
attorneys' fees and other costs in enforcing this Lease, whether or not suit is
filed.

14. SURRENDER. Upon termination of this Lease or Tenant's
right to possession, Tenant shall return the Premises to Landlord in good order
and condition, ordinary wear and casualty damage excepted. If Landlord requires
Tenant to remove any alterations, then Tenant shall remove the alterations in a
good and workmanlike manner and restore the Premises to its condition prior to
their installation.

15.

HOLDOVER. Tenant shall have no right to holdover possession
of the Premises after the expiration or termination of the Lease without
Landlord's prior written consent, which consent Landlord may withhold in its
sole and absolute discretion. If, however, Tenant retains possession of any part
of the Premises after the Term, Tenant shall become a tenant at sufferance for
the entire Premises upon all of the terms of this Lease as might be applicable
to such month­ to-month tenancy, except that Tenant shall pay all of Base
Rent and Operating Cost Share Rent at one hundred fifty percent (150%) the rate
in effect immediately prior to such holdover, computed on a monthly basis for
each full or partial month Tenant remains in possession. Tenant shall also pay
Landlord all of Landlord's direct and consequential damages resulting from
Tenant's holdover. No acceptance of Rent or other payments by Landlord under
these holdover provisions shall operate as a waiver of Landlord's right to
regain possession or any other of Landlord's remedies.

16.

SUBORDINATION TO GROUND LEASES AND MORTGAGES.

A.

Subordination. This Lease shall be subordinate to any
present or future ground lease or mortgage respecting the Project, and any
amendments to such ground lease or mortgage, at the election of the ground
lessor or mortgagee as the case may be, effected by notice to Tenant in the
manner provided in this Lease. The subordination shall be effective upon such
notice, but at the request of Landlord or ground lessor or mortgagee, Tenant
shall within ten (10) business days of the request, execute and deliver to the
requesting party any reasonable documents provided to evidence the
subordination. Any mortgagee has the right, at its option, to subordinate its
mortgage to the terms.of this Lease, without notice to, nor the consent of,
Tenant.

B.

Termination of Ground Lease or Foreclosure of Mortgage. If
any ground lease is terminated or mortgage foreclosed or deed in lieu of
foreclosure given and the ground lessor, mortgagee, or purchaser at a
foreclosure sale shall thereby become the owner of the Project, upon request of
such owner, Tenant shall attorn to such ground lessor or mortgagee or purchaser
without any deduction or setoff by Tenant, and this Lease shall continue in
effect as a direct lease between Tenant and such ground lessor, mortgagee or
purchaser. The ground lessor or mortgagee or purchaser shall be liable as
Landlord only during the time such ground lessor or mortgagee or purchaser is
the owner of the Project. At the request of Landlord, ground lessor or
mortgagee, Tenant shall execute and deliver within ten (10) business days of the
request any document furnished by the requesting party to evidence Tenant's
agreement to attorn,

C.

Security Deposit. Any ground lessor or mortgagee shall be
responsible for the return of any security deposit by Tenant only to the extent
the security deposit is received by such ground lessor or mortgagee.

D.

Notice and Right to Cure. The Project is subject to any
ground lease and mortgage identified with name and address of ground lessor or
mortgagee in Appendix D to this Lease (as the same may be amended from time to
time by written notice to Tenant). Tenant agrees to send by registered or
certified mail to any ground lessor or mortgagee identified either in such
Appendix or in any later notice from Landlord to Tenant a copy of any notice of
default sent by Tenant to Landlord. If Landlord fails to cure such default
within the required time period under this Lease, but ground lessor or mortgagee
begins to cure within ten (10) days after such period and proceeds diligently to
complete such cure, then ground lessor or mortgagee shall have such additional
time as is necessary, to complete such cure, including any time necessary to
obtain possession if possession is necessary to cure, and Tenant shall not begin
to enforce its remedies so long as the cure is being diligently pursued.

E. Definitions. As used in this Section 16, "mortgage"
shall include "deed of trust" and/or "trust deed" and "mortgagee"
shall include "beneficiary" and/or "trustee", "mortgagee"
shall include the mortgagee of any ground lessee, and "ground lessor",
"mortgagee", and "purchaser at a foreclosure sale" shall include, in each case,
all of its successors and assigns, however remote.

17. .ASSIGNMENT AND SUBLEASE.

A.

In General. Tenant shall not, without the prior consent of
Landlord in each case, (i) make or allow any assignment or transfer, by
operation of law or otherwise, of any part of Tenant's interest in this Lease,
(ii) grant or allow any lien or encumbrance, by operation of law or otherwise,
upon any part of Tenant's interest in this Lease, (iii) sublet any part of the
Premises, or (iv) permit anyone other than Tenant and its employees to occupy
any part of the Premises. Tenant shall remain primarily liable for all of its
obligations under this Lease, notwithstanding any assignment or transfer. No
consent granted by Landlord shall be deemed to be a consent to any subsequent
assignment or transfer, lien or encumbrance, sublease or occupancy. Tenant shall
pay all of Landlord's attorneys' fees and other expenses incurred in connection
with any consent requested by Tenant or in reviewing any proposed assignment or
subletting. Any assignment or transfer, grant of lien or encumbrance, or
sublease or occupancy without Landlord's prior written consent shall be void. If
Tenant shall assign this Lease or sublet the Premises in its entirety any rights
of Tenant to renew this Lease, extend the Term or to lease additional space in
the Project shall be extinguished thereby and will not be transferred to the
assignee or subtenant, all such rights being personal to the Tenant named
herein.

B.

Landlord's Consent. Landlord will not unreasonably withhold
its consent to any proposed assignment or subletting. It shall be reasonable for
Landlord to withhold its consent to any assignment or sublease if (i) Tenant is
in default under this Lease, (ii) the. proposed assignee or sublessee is a
tenant in the Project or an affiliate of such a tenant or a party that Landlord
has identified as a prospective tenant in the Project, (iii) the financial
responsibility, nature of business, and character of the proposed assignee or
subtenant are not all reasonably satisfactory to Landlord, (iv) in the
reasonable judgment of Landlord the purpose for which the assignee or subtenant
intends to use the Premises (or a portion thereof) is not in keeping with
Landlord's standards for the Building or are in violation of the terms of this
Lease or any other leases in the Project., (v) the proposed assignee
or subtenant is a government entity, or (vi) the proposed assignment is for less
than the entire Premises or for less than the remaining Term of the Lease (but
subleases for less than the entire Premises or for less than the remaining Term
are permitted). The foregoing shall not exclude any other reasonable basis for
Landlord to withhold its consent.

C.

Procedure.
Tenant shall notify Landlord of any proposed assignment or sublease at least
thirty (30) days prior to its proposed effective date. The notice shall include
the name

and address of the proposed assignee or subtenant, its corporate
affiliates in the case of a corporation and its partners in a case of a
partnership, an execution copy of the proposed assignment or sublease, and
sufficient information to permit Landlord to determine the financial
responsibility and character of the proposed assignee or subtenant. As a
condition to any effective assignment of this Lease, the assignee shall execute
and deliver in form satisfactory to Landlord at least fifteen (15) days prior to
the effective date of the assignment, an assumption of all of the obligations of
Tenant under this Lease. As a condition to any effective sublease, subtenant
shall execute and deliver in form satisfactory to Landlord at least fifteen (15)
days prior to the effective date of the sublease, an agreement to comply with
all of Tenant's obligations under this Lease, and at Landlord's option, an
agreement (except for the economic obligations which subtenant will undertake
directly to Tenant) to attorn to Landlord under the terms of the sublease in the
event this Lease terminates before the sublease expires.

D..

Intentionally Omitted.

E.

Excess Payments. If Tenant shall assign this Lease
or sublet any part of the Premises for consideration in excess of the pro-rata
portion of Rent applicable to the space subject to the assignment or sublet,
then Tenant shall pay to Landlord as Additional Rent 50% of any such excess
immediately upon receipt.

F.

Recapture. Landlord may, by giving written notice to Tenant
within thirty (30) days after receipt of Tenant's notice of assignment or
subletting, terminate this Lease with respect to the space described in Tenant's
notice, as of the effective date of the proposed assignment or sublease and all
obligations under this Lease as to such space shall expire except as to any
obligations that expressly survive any termination of this Lease.

18.

CONVEYANCE BY LANDLORD. If Landlord shall at any time
transfer its interest in the Project or this Lease, Landlord shall be released
of any obligations occurring after such transfer, except the obligation to
return to Tenant any security deposit not delivered to its transferee, and
Tenant shall look solely to Landlord's successors for performance of such
obligations. This Lease shall not be affected by any such transfer.

19.

ESTOPPEL CERTIFICATE. Each party shall, within ten (10)
days of receiving a request from the other party, execute, acknowledge in
recordable form, and deliver to the other party or its designee a certificate
stating, subject to a specific statement of any applicable exceptions, that the
Lease as amended to date is in full force and effect, that the Tenant is paying
Rent and other charges on a current basis, and that to the best of the knowledge
of the certifying party, the other party has committed no uncured defaults and
has no offsets or claims. The certifying party may also be required to state the
date of commencement of payment of Rent, the Commencement Date, the Termination
Date, the Base Rent and the current Operating Cost Share Rent estimate, the
status of any improvements required to be completed by Landlord, the amount of
any security deposit, and such other matters as may be reasonably requested.
Failure to deliver such statement within the time required shall be conclusive
evidence against the non-certifying party that this Lease, with any amendments
identified by the requesting party, is in full force and effect, that there are
no uncured defaults by the requesting party, that not more than one month's Rent
has been paid in advance, that the non-certifyingparty has not paid any security
deposit, and that the non-certifying party has no claims or offsets against the
requesting party.

20.

SECURITY DEPOSIT. Tenant shall deposit with Landlord on the
date of this Lease, security for the performance of all of its obligations in
the amount set forth on the Schedule. If Tenant defaults under this Lease,
Landlord may use any part of the Security Deposit to make any defaulted payment,
to pay for Landlord's cure of any defaulted obligation, or to compensate
Landlord for any loss or damage resulting from any default. To the extent any
portion of the deposit is used, Tenant shall within five (5) business days after
demand from Landlord restore the deposit to its full amount. Landlord may keep
the Security Deposit in its general funds and shall not be required to
pay interest to Tenant on the deposit amount. If Tenant-shall perform
all of its obligations under this Lease and return the Premises to Landlord at
the end of the Term, Landlord shall return all of the remaining Security Deposit
to Tenant within thirty (30) business days after the end of the Term. The
Security Deposit shall not serve as an advance payment of Rent or a measure of
Landlord's damages for any default under this Lease. If (Refer to page 1,
schedule 5)Landlord transfers its interest in the Project or s Lease, Land or
any transfer the

Security Deposit to its transferee. Upon such transfer, Landlord
shall have n further obligation to return the Security Deposit to Tenant, and
Tenant's right to the return of the Security. Deposit shall apply solely against
Landlord's transferee.

21.

 FORCE MAJEURE. Landlord shall not be in default under
this Lease to the extent Landlord is unable to perform any of its obligations on
account of any strike or labor problem, energy shortage, governmental preemption
or prescription, national emergency, or any other cause of any kind beyond the
reasonable control of Landlord ("Force Maeure").

22.

TENANT'S PERSONAL PROPERTY AND FIXTURES. In addition to any
statutory lien, Tenant hereby grants to Landlord a lien against and a security
interest in all of Tenant's personal property and fixtures now or hereafter
located within the Premises as security for performance of all of Tenant's
obligations under this Lease. Tenant may replace such personal property and
fixtures with items of equal or better quality, but shall not otherwise remove
them from the Premises without the consent of Landlord until all of the
obligations of Tenant under this Lease have been performed. This Lease
constitutes a security agreement creating a security interest in such property
in favor of Landlord, subject only to the liens of existing creditors, and
Landlord may at any time file this Lease as a financing statement under the
Uniform Commercial Code of the state in which the Project is located.
Alternatively, if requested to do so by Landlord, Tenant shall execute and
deliver within ten (10) days of such request a Form UCC-l. Financing Statement
wherein Landlord is the Secured Party and Tenant is the Debtor. Landlord agrees
to reasonably subordinate its lien to bona fide lenders providing funds to
Tenant. Notwithstanding the foregoing, Landlord shall have no lien hereunder or
under any applicable statute on the proprietary information of third parties
within Tenant's possession, including Tenant's computers

23.

 NOTICES. All notices, consents, approvals and similar
communications to be given by one party to the other under this Lease, shall be
given in writing, mailed or personally delivered as follows:

A.

Landlord.
To Landlord as follows:

Papago
Spectrum, L.L.C.

c/o
Chamberlain Family Trust 505 South Madison

Tempe,
Arizona 85281

or
to such other person at such other address as Landlord may designate by notice
to TenantB B.  Tenant.. To Tenant as follows:

or
to such other person at such other address as Tenant may designate by notice to
Landlord.

Mailed notices shall be sent by United States certified or
registered mail, or by a reputable national overnight courier service, postage
prepaid. Mailed notices shall be deemed to have been given on the earlier of
actual delivery or three (3) business days after posting in the United States
mail in the can of registered or certified mail, and one business day in the
case of overnight courier.

24.

QUIET POSSESSION. So long as Tenant shall perform all of
its obligations under this Lease, Tenant shall enjoy peaceful and quiet
possession of the Premises against any party claiming through the.
Landlord.

25.

REAL ESTATE BROKER. Tenant represents to Landlord that
Tenant has not dealt with any real estate broker with respect to this Lease
except for any broker(s) listed in the Schedule, and no other broker is in any
way entitled to any broker's fee or other payment in connection with this Lease,
Tenant shall indemnify and defend Landlord against any claims by any other
broker or third party for any payment of any kind in connection with this
Lease.

26.

MISCELLANEOUS.

A.

Successors and Assigns. Subject to the limits on
Tenant's assignment contained in Section 17, the provisions of this
Lease shall be binding upon and inure to the benefit of all successors and
assigns of Landlord and Tenant.

B.

Date Payments Are Due. Except for payments to be made by
Tenant under this Lease which are due upon demand or are due in advance (such as
Base Rent, Operating Cost Share Rent and Parking Charges), Tenant shall pay to
Landlord any amount for which Landlord renders a statement of account within ten
(10) business days of Tenant's receipt of Landlord's statement.

C. Meaning of "Landlord'', "Re-Entry", "including" and
"Affiliate". The term "Landlord" means only the owner of the Project and the
lessor's interest in this Lease from time to time. The words "re-entry" and
"re-enter" are not restricted to their technical legal meaning. The
words "including" and similar words shall mean "without li:mitationi". The word
"affiliate" shall mean a person or entity controlling, controlled by
or under common control with the applicable entity, "Control" shall mean the
power directly or indirectly, by contract or otherwise, to direct the management
and policies of the applicable entity.

Time
of the Essence. Time is of the essence of each provision of this Lease.

E.

No Option. This document shall, not be effective for any
purpose until it has been. executed and delivered by both parties; execution and
delivery by one party shall not create any option or other right in the other
party.

F.

Severability.
The unenforceability of any provision of this Lease shall not affect any other
provision.

G.

Governing
Law. This Lease shall be governed in all respects by the laws of the state
in which the Project is located, without regard to the principles of conflicts
of laws.

H.

Lease Modification. Tenant agrees to modify this Lease in
any way requested by a mortgagee which does not cause increased expense to
Tenant or otherwise materially adversely affect Tenant's interests under this
Lease.

L

No
Oral Modification. No modification of this Lease shall be effective unless
it is a written modification signed by both parties.

J.

Landlord's Right to Cure. If Landlord breaches any of its
obligations under this Lease, Tenant shall notify Landlord in writing and shall
take no action respecting such breach so long as Landlord promptly begins to
cure the breach and diligently pursues such cure to its completion. Landlord may
cure any default by Tenant; any expenses incurred shall become Additional Rent
due from Tenant on demand by Landlord.

K.

Captions.
The captions used in this Lease shall have no effect on the construction. of
this Lease.

L.

Authority.
Landlord and Tenant each represents to the other that it has full power and
authority to execute and perform this Lease.

M.

Landlord's
Enforcement of Remedies. Landlord may enforce any of its remedies under this
Lease either in its own name or through an agent.

N.

Entire Agreement. This Lease, together with all Appendices,
constitutes the entire agreement between the parties. No representations or
agreements of any kind have been made by either party which are not contained in
this Lease:

O.

Landlord's Title. Landlord's title shall always be
paramount to the interest of the Tenant, and nothing in this Lease shall empower
Tenant to do anything which might in any way impair Landlord's title.

P.

Light and Air Rights. Landlord does not grant in this Lease
any rights to light and air in connection with Project. Landlord reserves to
itself, the Land, the Building below the improved floor of each floor of the
Premises, the Building above the ceiling of each floor of the Premises, the
exterior of the Premises and the areas on the same floor outside the Premises,
along with the areas within the Premises required for the installation and
repair of utility lines and other items required to serve other tenants of the
Building.

Q.

Singular and Plural. Wherever appropriate in this Lease, a
singular terra shall be construed to mean the plural where necessary, and a
plural term the singular. For example, if at any time two parties shall
constitute Landlord or Tenant, then the relevant term shall refer to both
parties together.

R.

No
Recording by Tenant. Tenant shall not record in any public records any
memorandum or any portion of this Lease.

8.

Exclusivity.
Landlord does not grant to Tenant in this Lease any exclusive right except the
right to occupy its Premises.

T.

No
Construction Against Drafting Party. The
rule of construction that ambiguities are resolved against the drafting party
shall not apply to this Lease.

U.

Survival.
All :obligations of Landlord and Tenant under this Lease shall survive the
termination of this Lease.

V.

Rent Not Based on Income. No rent or other payment in
respect of the Premises shall be based in any way upon net income or profits
from the Premises. Tenant may not enter into or permit any sublease or license
or other agreement in connection with the Premises which provides for a rental
or other payment based on net income or profit.

W.

Building
Manager and Service Providers. Landlord may perform any of its obligations
under this Lease through its employees or third parties hired by the
Landlord.

X.

Late Charge and Interest on Late Payments. Without limiting
the provisions of Section 12A, if Tenant fails to pay any installment of Rent or
other charge to be paid by Tenant pursuant to this Lease within five (5)
business days after the same becomes due and payable, then Tenant shall pay a
late charge equal to the greater of five percent (5%) of the amount of such
payment or $250, but this late fee will not apply to the first two late payments
in any year of the. Lease Term. In addition, interest shall be paid by Tenant to
Landlord on any late payments of Rent from the date due until paid at the rate
provided in Section 2D(2). Such late charge and interest shall constitute
Additional Rent due and payable by Tenant to Landlord upon the date of payment
of the delinquent payment referenced above.

Y. Tenant's Financial Statements. Within ten (10) days
after Landlord's written request therefor, Tenant shall deliver to Landlord the
current audited annual financial statements of Tenant, and annual audited
financial statements of the two (2) years prior to the current year's financial
statements, each with an opinion of a certified public accountant and including
a balance sheet and profit and loss statement, all prepared in accordance with
generally accepted accounting principles consistently applied.

27.

UNRELATED BUSINESS INCOME. If Landlord is advised by its
counsel at any time that any part of the payments by Tenant to Landlord under
this .Lease. may be characterized as unrelated business income under
the United States Internal Revenue Code and its regulations, then Tenant shall
enter into any amendment proposed by Landlord to avoid such income, so long as
the amendment does not require Tenant to make more payments 'or accept fewer
services from Landlord, than this Lease provides.

28.

HAZARDOUS SUBSTANCES. Tenant shall not cause or permit any
Hazardous Substances to be brought upon, produced, stored, used, discharged or
disposed of in or near the Project unless Landlord has consented to
such storage or use in its sole discretion. "Hazardous Substances" include those
hazardous substances described in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et
seq., the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section
6901 et seq., any other applicable federal, state or local law, and the
regulations adopted under these laws. If any lender or governmental agency shall
require testing for Hazardous Substances in the Premises, Tenant shall pay for
such testing.

29.

EXCULPATION. Landlord shall have no personal liability
under this Lease; its liability shall be limited to its interest in the Project,
and shall not extend to any other property or assets of the Landlord. In no
event shall any officer, director, employee, agent, shareholder, partner, member
or beneficiary of Landlord be personally liable for any of Landlord's
obligations hereunder

30.

RENEWAL OPTION. Subject to the expansion rights of Arthur
Andersen LLP and/or its successor in interest under a Lease for a major portion
of the Building ("Other Tenant") to expand into the Premises after
expiration of the original Tenn, Tenant shall have the option to renew the Term
of the Lease for two additional five (5) year period in accordance with the
following provisions. Not later than nine (9) months prior to the expiration of
the original Term, Landlord will notify Tenant whether Other Tenant has elected
to exercise its option to expand into the Premises. If Other Tenant exercises
such Option, this Paragraph 30 will terminate and be of no further force or
effect.

If Landlord notifies Tenant that Other Tenant did not exercise its
option to expand into the Premises, such notice shall include Landlord's
determination of then Prevailing Market Rental (as defined below) for the
Premises for a five (5) year renewal term, but in no event will that be less
than the rental for the original Lease Term. In such event, within thirty (30)
days after receipt of Landlord's notice, Tenant may give notice of its election
to renew the Term of the Lease and whether it accepts Landlord's determination
of Prevailing Market Rental. If Tenant

does not timely give such notice, Tenant's current option to renew
(and the second option, if applicable) shall terminate. If the parties agree on
Prevailing Market Rental for the extended term, they shall immediately execute
an amendment to the Lease stating the Prevailing Market Rental and the amount of
the fixed rent for such renewal term in question.

If the parties are unable to agree on the Prevailing Market Rental
for the renewal term within the thirty (30) day period, the Prevailing Market
Rental shall be determined pursuant to arbitration as follows. In such event,
within ten (10) days thereafter, each party shall select as its arbitrator a
qualified commercial real estate broker with at least ten (10) years experience
in appraising property and buildings in the city or submarket in which the
Premises are located. The two (2) arbitrators shall give their opinion of
prevailing rental rates within twenty (20) days after their retention. In the
event the opinions of the two (2) arbitrators differ and, after good faith
efforts over the succeeding 20-day period, they cannot mutually agree, the
arbitrators shall immediately and jointly appoint a third arbitrator with the
qualifications specified above. This third arbitrator shall immediately (within
five (5) days) choose either the determination of Landlord's.
arbitrator or Tenant's arbitrator and such choice of this third arbitrator shall
be final and binding on Landlord and Tenant. If either party fails to timely
appoint its arbitrator, the opinion of prevailing rental rates of the arbitrator
for the other party shall be utilized. Each party shall pay its own costs for
its arbitrator. Following the determination of the Prevailing Market Rental by
the arbitrators, the parties shall equally share the costs of any third
arbitrator. Upon determination of the Prevailing Market Rental, the parties
shall immediately execute an amendment as set forth above.

The "Prevailing Market Rental" shall be the prevailing annual
rental rate per rentable square foot for the Premises then being charged to new
tenants in the Building and comparable buildings for improved space comparable
to the Premises (or adjusting the rental rate as appropriate for differences
therein), which is agreed by Landlord and Tenant or determined by arbitration in
accordance with the provisions of the balance of this paragraph, taking into
consideration use, location and floor level within the applicable building, the
location, quality, age and reputation of the building, the definition of
rentable area or net rentable area, as the case may be, with respect to which
such rental rates are computed, rent concessions or other allowances,
abatements, lease assumptions or take-overs, differences in terms and provisions
of the applicable leases such as passthroughs of operating expenses and taxes,
moving expenses, tenant improvements, parking rights, the term of the lease (or
renewal) under consideration, and the extent of services provided thereunder,
applicable distinctions between "gross" leases and "net" leases, base year or
expense stop figures for escalation purposes, other tenant concessions and
benefits such as new carpeting, paint and wall coverings for the Premises, and
any other relevant term or condition in making such evaluation.

31. RIGHT OF FIRST OFFER. Subject to the priority rights of
the Other Tenant, Tenant shall have the first right to offer to lease
approximately 10,000 square feet of rentable space adjacent to the Premises on
the second floor of the Building shown as the "Expansion Area" on
Appendix• A-1, as follows. Tenant shall have this right during the initial lease
up of the space but no notices from Landlord are required and Tenant's rights
shall not apply to the extent Landlord has then already leased such space or is
in actual lease negotiations with an identified tenant, at the time Tenant sends
a Letter of Interest as to Landlord for all or any part of such

space. If Tenant does send a Letter of Interest and the space is
available as provided in the preceding sentence, and provided Tenant executes an
Amendment to this Lease adding such space to this Lease within ten (10) business
days thereafter, Landlord shall not lease such space to any third party but if
this requirement is not met, Landlord shall be free to lease such space to any
third party.

After the initial lease up of any portion of the Expansion Area,
and excluding renewals by the original tenant(s), prior to leasing such space in
the future, Landlord shall first offer such space to Tenant. If Tenant delivers
a Letter of Interest within five (5) days and executes an Amendment to this
Lease adding such space to this Lease within fifteen (15) business days after
Tenant receives Landlord's notice, then Landlord shall not lease such space to
any third party, but if either of these requirements is not met, Landlord shall
be free to lease such space to any third party.

The Base Rent would be (a) at the rate specified herein, if the
election occurs within. six (6) months after Lease execution, or (b) the
Prevailing Market Rent fixed under Section 30, if the election occurs
thereafter. The security deposit would be proportionately increased Landlord
would provide a prorated Landlord's Contribution based upon the remaining Term
after completion of the Initial Improvements for the expansion space; the Term
for the expansion space would be coterminous with the Term for original
Premises; and all other terms and provision of this Lease would apply thereto as
set forth herein.

This Section 31 shall not be applicable if there is less than
twelve (12) months years remaining in the Lease Term.

[REMAINDER. OF PAGE INTENTIONALLY LEFT BLANK]

IN
WITNESS WHEREOF, the parties hereto have executed this Lease. 

LANDLORD:

James
J. Chamberlain

Trustee

 

 

PAPAGO
SPECTRUM, L.L.C., an Arizona limited liability company

By:
CHAMBERLAIN FAMILY TRUST UNDER TRUST AGREEMENTNT  DATED SEPTE MER 21, 1979
Its Managing Member

By:
 /s/ James M. Chamberlain

Name:
   James M. Cjamberlain

Title:
 Trustee

TENANT:

CALIBRUS,
INC., a Nevada corporation

By.
/s/ James W. Holmes

Print
    James W. Holmes

Title
     President and CEO

 

 

APPENDIX B
RULES AND REGULATIONS

1.

Tenant shall not place anything, or allow anything to be placed
near the glass of any window, door, partition or wall which may, in Landlord's
judgment, appear unsightly from outside of the Project.

2.

The
Project directory shall be available to Tenant solely to display names and their
location in. the Project, which display shall be as directed by Landlord.

3.

The sidewalks, halls, passages, exits, entrances, elevators and
stairways shall not be obstructed by Tenant or used by Tenant for any purposes
other than for ingress to and egress from the Premises. Tenant shall lend its
full . cooperation to keep such areas free from all obstruction and in a clean
and sightly condition and shall move all supplies, furniture and equipment as
soon as received directly to the Premises and move all such items and waste
being taken from the Premises (other than waste customarily removed by employees
of the Building) directly to the shipping platform at or about the time arranged
for removal therefrom. The: halls, passages, exits, entrances, elevators,
stairways, balconies and roof are not for the use of the general public and
Landlord shall, in all cases, retain the right to control and prevent access
thereto by all persons whose presence in the judgment of Landlord, reasonably
exercised, shall be prejudicial to the safety, character, reputation and
interests of the Project. Neither Tenant nor any employee or invitee of Tenant
shall go upon the roof of the Project.

4..

The toilet rooms, urinals, wash bowls and other apparatuses shall
not be used for any purposes other than that for which they were constructed,
and no foreign substance of any kind whatsoever shall be thrown therein, and to
the extent caused by Tenant or its employees or invitees, the expense of any
breakage, stoppage or damage resulting from the violation of this rule shall be
borne by Tenant.

5..

Tenant
shall not ;cause any unnecessary janitorial labor or services by reason of
Tenant's carelessness or indifference in the preservation of good order and
cleanliness.

6.

Tenant shall not install or operate. any refrigerating, heating or
air conditioning apparatus, or vending machines, or carry on any mechanical
business without the prior written consent of Landlord; use the Premises for
housing, lodging or sleeping purposes; or permit preparation or
warming of food in the Premises (warming of coffee and individual meals with
employees and guests excepted). Tenant shall not occupy or use the Premises or
permit the Premises to be occupied or used for any purpose, act or thing which
is in violation of any Governmental Requirement or which may be dangerous to
persons or property.

7.

Tenant shall not bring upon, use or keep in the Premises or the
Project any kerosene, gasoline or inflammable or combustible fluid or material,
or any other articles deemed hazardous to persons or property, or use any method
of heating or air conditioning other than that supplied by Landlord.

8.

Landlord shall have sole power to direct electricians as to where
and how telephone and other wires are to be introduced. No boring or cutting for
wires is to be allowed without the consent of Landlord. The location of
telephones, call boxes and other office equipment affixed to the Premises shall
be subject to the approval of Landlord.

9.

No additional locks shall be placed upon any doors, windows or
transoms in or to the Premises. Tenant shall not change existing locks or the
mechanism thereof. Upon termination of' the lease, Tenant shall deliver to
Landlord all keys and passes for offices, rooms, parking lot and toilet rooms
which shall have been furnished Tenant.

In the event of the loss of keys so furnished, Tenant shall pay
Landlord therefor. Tenant shall not make, or cause to be made, any such keys and
shall order all such keys solely from Landlord and shall pay Landlord for any
keys in addition to the two sets of keys originally furnished by Landlord for
each lock.

10.

Tenant
shall not install linoleum, tile, carpet or other floor covering so that the
same shall be affixed to the floor of the Premises in any manner except as
approved by Landlord.

l 1. No furniture, packages, supplies,, equipment or merchandise
will be received in the Project or carried up or down in the freight elevator,
except between such hours and in such freight elevator as shall be designated by
Landlord. Tenant shall not take or permit to be taken in or out of other
entrances of the Building, or take or permit on other elevators, any item
normally taken in or out through the trucking concourse or service doors or in
or on freight elevators.

12.

Tenant
shall cause all doors to the Premises to be closed and securely locked and shall
turn off all utilities, lights and machines before leaving the Project at the
end of the day.

13.

Without the prior written consent of Landlord, Tenant shall not
use the name of the Project or any picture of the Project in connection with, or
in promoting or advertising the business of, Tenant, except Tenant. may use the
address of the Project as the address of its business.

14.

Tenant shall cooperate fully with Landlord to assure the most
effective operation of the Premises' or the Project's heating and air
conditioning, and shall refrain from attempting to adjust any controls, other
than room thermostats installed for Tenant's use. Tenant shall keep corridor
doors closed and window coverings and/or blinds in their down position.

15.

Tenant assumes full responsibility for protecting the Premises
from theft, robbery and pilferage, which may arise from a cause other than
Landlord's negligence, which includes keeping doors locked and other means of
entry to the Premises closed and secured.

1
6.

Peddlers,
solicitors and beggars shall be reported to the office of the Project or
as
Landlord otherwise requests.

17.

Tenant
shall not advertise the business, profession or activities of
Tenant
conducted in the Project in any manner which violates the letter or
spirit of any code of ethics

adopted
by any recognized association or organization pertaining to such business,
profession or activities.

 18. No bicycle or other vehicle and no animals or pets shall
be allowed in the Premises, halls, freight docks, or any other parts of the
Building except that blind persons may be accompanied by "seeing eye" dogs.
Tenant shall not make or permit any noise, vibration or odor to emanate from the
Premises, or do anything therein tending to create, or maintain, a nuisance, or
do any act tending to injure the reputation of the Building.

19.

Tenant
acknowledges that Building security problems may occur which may require the
employment of extreme security measures in the day-to-day operation of the
Project.

.Accordingly:

(a)

Landlord may, at any time, or from time to time, or for regularly
scheduled time periods, as deemed advisable by Landlord and/or its agents, in
their sole discretion, require that persons entering or leaving the Project or
the Property identify themselves to watchmen or other employees designated by
Landlord, by registration, identification or otherwise.

(b)

Tenant
agrees that it and its employees will cooperate hilly with Project employees in
the implementation of any and all security procedures.

(c)

Such security measures shall be the sole responsibility of
Landlord, and Tenant shall have no liability for any action taken by Landlord in
connection therewith, it being understood that Landlord is not required to
provide any security procedures and shall have no liability for such security
procedures or the lack thereof

20.

Tenant
shall not do or permit the manufacture, sale, purchase, use or gift of any
fermented, intoxicating or alcoholic beverages without obtaining written consent
of Landlord.

21.

Tenant
shall not disturb the quiet enjoyment of any other tenant.

 22. Tenant shall not provide any janitorial services or
cleaning without Landlord's written consent and then only subject to supervision
of Landlord and at Tenant's sole responsibility and by janitor or cleaning
contractor or employees at all times satisfactory to Landlord.

 23. Landlord may retain a pass key to the Premises and be
allowed admittance thereto at all times to enable its representatives to examine
the Premises from time to time and to exhibit the same and Landlord may place
and keep on the windows and doors of the Premises at any time signs advertising
the Premises for Rent.

 24. No equipment, mechanical ventilators, awnings, special
shades or other forms of window covering shall be permitted either inside or
outside the windows of the Premises without the prior written consent of
Landlord, and then only at the expense and risk of Tenant, and they

APPENDIX
B

shall
be of such shape, color, material, quality, design and make as may be approved
by Landlord.

25.

Tenant
shall not during the term of this Lease canvas or solicit other tenants of the
Building for any purpose.

26.

 Tenant shall not install or operate any phonograph, musical
or sound producing instrument or device, radio receiver or transmitter, TV
receiver or transmitter, or similar device in the Building, nor install or
operate any antenna, aerial, wires or other equipment inside or outside the
Building, nor operate any electrical device from which may emanate electrical
waves which may interfere with or impair radio or television broadcasting or
reception from or in the Building or elsewhere, without in each instance the
prior written approval of Landlord. The use thereof, if permitted, shall be
subject to control by Landlord to the end that others shall not be
disturbed.

27.

Tenant
shall promptly remove all rubbish and waste from the Premises. Tenant shall
break large boxes down to a "flat" condition prior to placement in the
trash.

28.

 Tenant shall not exhibit, sell or offer for sale, Rent or
exchange in the Premises or at the Project any article, thing or service, except
those ordinarily embraced within the use of the Premises specified in Section 6
of this Lease, without the prior written consent of Landlord.

29.

Intentionally Omitted.

30.

Tenant
shall not overload any floors in the Premises or any public corridors or
elevators in the Building.

31.

 Tenant shall not do any painting in the Premises, or mark,
paint, cut or drill into, drive nails or screws into, or in any way deface any
part of the Premises or the Building, outside or inside, without the prior
written consent of Landlord.

32.

 Whenever Landlord's consent, approval or
satisfaction is required under these Rules, then unless otherwise stated, any
such consent, approval or satisfaction must be obtained in advance, such consent
or approval may be granted or withheld in Landlord's sole discretion, and
Landlord's satisfaction shall be determined in its sole judgment.

33..

'Tenant and. its employees shall cooperate in all fire drills
conducted by.Landlord in the Building.

[THE REMAINDER OF THIS .PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

APPENDIX C
TENANT IMPROVEMENT AGREEMENT

1.

INITIAL IMPROVEMENTS. The Premises will include those items shown
or described on the attached Appendix C-1 ("Shell Improvements") which
Landlord will provide at its cost. The Shell Improvements are the only
improvement obligations of Landlord within or relating to the Premises. Landlord
shall cause to be performed the other improvements (the "Initial
Improvements") in the Premises in accordance with plans and specifications
approved by Tenant and Landlord (the "Plans"), which approvals shall not
be unreasonably withheld. The Initial Improvements shall be performed at the
Tenant's cost, subject to the Landlord's Contribution (hereinafter defined).

Tenant shall cause the Plans to be prepared, at Tenant's cost,
subject to the Landlord's Contribution, by DMJM, consistent with the space plan
dated March 14, 2000. Prior to close=of­business on June 1, 2000, Tenant
shall furnish the initial draft of the Plans to Landlord for Landlord's review
and approval. Landlord shall within two (2) weeks after receipt either provide
comments to such Plans or approve the same. Landlord shall be deemed to have
approved such Plans if it does not timely provide comments on such Plans. If
Landlord provides Tenant with comments to the initial draft of the Plans, Tenant
shall provide revised Plans to Landlord incorporating Landlord's comments within
one week after receipt of Landlord's comments. Landlord shall within one week
after receipt then either provide comments to such revised Plans or approve such
Plans. Landlord shall be deemed to have approved such revised Plans if Landlord
does not timely provide comments on such Plans. The process described above
shall be repeated, if necessary, until the Plans have been finally approved by
Landlord. Tenant hereby agrees that the Plans for the Initial Improvements shall
comply with all applicable Governmental Requirements. Landlord's approval of any
of the Plans (or any modifications or changes thereto) shall not impose upon
Landlord or its agents or representatives any obligation with respect to the
design of the Initial Improvements or the compliance of such Initial
Improvements or the Plans with applicable Governmental Requirements.

Sun State Builders will perform the construction of the Initial
Improvements, on a cost plus ten per cent (10%) basis. Landlord shall use
commercially reasonable efforts to cause the Initial Improvements to be
substantially completed, except for minor "Punch List" items, on or before the
Commencement Date specified in the Schedule to the Lease, subject to Tenant
Delay (as defined in Section 4 hereof) and Force Majeure.

2.

CHANGE ORDERS. If, prior to the Commencement Date, Tenant shall
require improvements or changes (individually or collectively,
"Change Orders") to the Premises in addition to, revision of
or substitution for the Initial Improvements, Tenant shall deliver to Landlord
for its approval plans and specifications for such Change Orders. If Landlord
does not approve of the plans for Change Orders; Landlord shall advise Tenant of
the revisions required. Tenant shall revise and redeliver the plans and
specifications to Landlord within five (5) business days of Landlord's advice or
Tenant shall be deemed to have abandoned its request for such Change Orders.
Tenant shall pay for all preparations and revisions of plans and specifications,
and the construction of all Change Orders, subject to Landlord's
Contribution.

3. LANDLORD'S CONTRIBUTION. Landlord shall contribute an amount up
to $345,670 (subject to adjustment to be $26.00 per square foot of Useable Area,
as provided in Section 3 of the Schedule) ("Landlord's Contribution")
toward the costs incurred for the Initial Improvements and Change Orders.
Landlord has no obligation to pay for costs of the Initial Improvements Or
Change Orders in excess of Landlord's Contribution. If the cost of the Initial
Improvements and/or Change Orders exceeds the Landlord's Contribution, Tenant
shall pay such overage to Landlord prior to commencement of construction of the
Initial Improvements and/or Change Orders.

4, COMMENCEMENT DATE DELAY. The Commencement Date shall be delayed
until the Initial Improvements have been substantially completed (the
"Completion Date"), except to the extent that the delay shall be caused
by any one or more of the following (e "Tenant Dela"):

(a)

Tenant's
request for Change Orders whether or not any such Change Orders are actually
performed; or

(b)

Contractor's
performance of any Change Orders; .or

(c)

Tenant's
request for materials, finishes or installations requiring unusually long lead
times; or

(d)

Tenant's
delay in preparing, reviewing, revising or approving plans and specifications
beyond the periods set forth herein; or

(e)

Tenant's delay in providing information critical to the normal
progression of the project. Tenant shall provide such information as soon as
reasonably possible, but in no event longer than one week after receipt of such
request for information from the Landlord; or

(f)

Tenant's
delay in making payments to Landlord for costs of the Initial Improvements
and/or Change Orders in excess of the Landlord's Contribution.; or

(g)

Any
other act or omission by Tenant, its agents, contractors or persons employed by
any of such persons.

If the Commencement Date is delayed for any reason, then Landlord
shall cause Landlord's Architect to certify the date on which the Initial
Improvements would have been completed but for such Tenant Delay, or were in
fact completed without any Tenant Delay.

5, ACCESS BY TENANT PRIOR TO COMMENCEMENT OF TERM. Landlord at its
discretion may permit Tenant and its agents to enter the Premises prior to the
Commencement Date to prepare the Premises for Tenant's use and occupancy. Any
such permission shall constitute a license only, conditioned upon Tenant's:

(a)

working
in harmony with Landlord and Landlord's agents, contractors, workmen, mechanics
and suppliers and with other tenants and occupants of the Building;

(b)

obtaining in advance Landlord's approval of the contractors
proposed to. be used by Tenant and depositing with Landlord in advance of any
work (i) security satisfactory to Landlord for the completion thereof, and (ii)
the contractor's affidavit for the proposed work and the waivers of lien from
the contractor and all subcontractors and suppliers of material; and

(c)

furnishing
Landlord with such insurance as Landlord may require against liabilities which
may arise out of such entry,

Landlord shall have the right to withdraw such license for any
reason upon twenty-four (24) hours' written notice to Tenant. Landlord shall not
be liable in any way for any injury, loss or damage which may occur to any of
Tenant's property or installations in the Premises prior to the Commencement
Date. Tenant shall protect, defend, indemnify and save harmless Landlord from
all. liabilities, costs, damages, fees and expenses arising out of the
activities of Tenant or its agents, contractors, suppliers or workmen in. the
Premises or the Building. Any entry and occupation permitted under this Section
shall be governed by Section 5 and all other terms of the: Lease.

6.
MISCELLANEOUS.

Terms
used in this Appendix C shall have the meanings assigned to them in the Lease.
The terms of this Appendix C are subject to the terms of the Lease.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

APPENDIX
F

				
	
PAPAW
SPECTRUM

OPERAMG
BUDGET

Cleaning
	
/SF

$

1.00
	
.Annual

$

157,252,00
	
Monthly.-

13,1
04.33

	
Insurance
	
$

0.15
	
$

23,587.80
	
$1,965.65

	
Landscape
Maintenance
	
$

0.12
	
$    
18,870.24
	
$

1,572,52

	
General
Maintenance
	
$

0.20
	
$

31,450..40.
	
$

2,620.87

	
Roof
Maintenance
	
$

0.05
	
$

1,965.65
	
$

163.80

	
Electric
	
$

2.00
	
$   314,504.00
	
$
   26,208.67

	
Water/Sewer
	
$

0.35
	
$

55,03:8.20
	
$

 4,586.52

	
Property
Tax
	
$

0.50
	
$

78,626.00
	
$      6,552,17

	
Management
	
$

0.60
	
$

94,351.20
	
$    
7,862.60

	
Total
	
$

4.97
	
$   
775,645.49
	
$   64,637.12

	
Square
Footage
	
1.57,252
	
 
	
 

COMMENCEMENT DATE CONFIRMATION

Landlord:

PAPAGO
SPECTRUIVI, L.L.C., an Arizona limited liability company

Tenant:

CALIBRUS,
INC., a Nevada corporation

This Commencement Date Confirmation is made by Landlord and Tenant
pursuant to that certain Lease dated as of May 16, 2000 (the "Lease") for
certain premises known as Suite 213 in the building commonly known as The
Spectrum (the "Premises"). This Confirmation is made pursuant to Item 9 of the
Schedule to the Lease.

1, Lease Commencement Date, Termination Date. Landlord and
Tenant hereby agree that the Commencement Date of the Lease is October 16, 2000,
and the Termination Date of the Lease is October 31, 2005.

2.

Acceptance
of Premises. Tenant has inspected the Premises and affirms that the Premises
is acceptable in all respects in its current "as is" condition.

3.

Incorporation This Confirmation is incorporated into the
Lease, and forms an integral part thereof This Confirmation shall be construed
and interpreted in accordance with the terms of the Lease for all purposes.

LANDLORD:

TENNANT:

CALIBRUS,
INC.

A
NEVADA CORP

PAPAGO
SPECTRUM, L .C.

an
Arizona limited liability company

By:
 /s/ Jeff W. Holmes

                                                                                        
 Name:  Jeff W. Holmes

Name:
Patsy L. Chamberlain Title: Member

By:
Sun State Builders Its: Managing Member

By:

Name:
Ed Forst Title: PresidentConverted by EDGARwiz

Agreement No. 02024517
Between

Calibrus, Inc.
And
SBC Services, Inc.
For
Services

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
1

 TABLE
OF CONTENTS

ARTICLE
1-PREAMBLE                                                                                                          
4

1.1
Preamble and Effective
Date                                                                                              
4

1.2
Scope of Agreement 

4

ARTICLE
2- DEFINITIONS

4

ARTICLE.
3- General Clauses 

6

  3.1
Affiliate

6

  3.2
Amendments and Waivers, 

6

  3.3
Assignment 

7

  3.4
Cancellation and Termination

7

  3.5
Compliance with
Laws                                                                                                        
8

  3.6
Conflict of
Interest.                                                                                                              8

  3.7
Construction and interpretation 

8

  3.8
Cumulative Remedies

9

  3.9
Delivery Performance and Acceptance 

9

  3.10
Entire Agreement

10

  3.11
Force Majeure

10

  3.12
Governing Law 

10

  3.13
Indemnity

10

  3.14
Information

12

  3.15
Infringement of Third Party Intellectual Property Rights

13

  3.16
Insurance 

14

  3.17
Invoicing and Payment 

15

  3.18
Licenses and Patents 

16

  3.19
Limitation of Liability

16

  3.20
Liquidated Damages 

16

  3.21
Most Favored Customer 

17

  3.22
M/WBE (and Exhibits)

17

  3.23
MBE/WBE/DVBE Cancellation Clause

17

  3.24
Non-Exclusive Market 

19

  3.25
Notices

19

  3.26
Price                            

                                                                                                          
20

  3.27
Publicity                              

20

  3.28
Quality Assurance,

20

  3.29
Records and Audits 

23

  3.30
Severability 

23

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier; their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
2

TABLE OF CONTENTS (Continued)

3.31
Survival of Obligations

23

3.32
Taxes

24

3.33
Term of Agreement

25

3.34
Warranty

25

3.35
Work  Orders 

27

ARTICLE
4- SPECIAL TERMS

27

4.1
Access 

27

4.2
Background Cheek 

28

4.3
Electronic Data .Interchange (EDI)

28

4.4
Independent Contractor 

29

4.5
Information Customer

30

4.6
Technical Support 

31

4.7
Key Personnel

31

4.8
Source Code
Availability                                                                                                   
32

4.9
Testimony

32
4.10 Work Done By
Others                                                                                                    
32

APPENDICES
AND EXHIBITS

Appendix
1.2(1) - Description of Services 

Appendix
1.2(2) -  Prices

Appendix
1.2(3) -  Specifications/Requirements

Appendix
3.5      - Executive Orders and Federal Regulations
Work Order/Statement of Services

Appendix
3.35    - Work Order/Statement of Services

Appendix
4.9      - Form of Escrow Agreement

Exhibit
A - Prime Supplier MBE/WBE/DVBE Participation Plan Exhibit.B - M/WBE-DVBE
Results Report

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
3

ARTICLE
1 - PREAMBLE

1.1

Preamble
and Effective Date

This
Agreement, effective on the date when signed by the last Party ("Effective
Date"), is between Calibrus, Inc, a Nevada corporation ("Supplier"), and SBC
Services, Inc, a Delaware corporation ("SBC"), each of which may be referred to
in the singular as "Party" or in the plural as "Parties."

1.2
Scope of Agreement

Subject
to the terms and conditions of this Agreement, Supplier shall provide to SBC the
Material and Services described in Appendix 1.2(1), pursuant to and in
conformance with Orders submitted by SBC. The applicable price for the Services
is specified in Appendix 1.2(2). Supplier agrees that the Services shall
strictly conform to the Specifications, including these specified in Appendix
1.2(3).

ARTICLE
2 - DEFINITIONS

2.1

"Accept"
or "Acceptance" means SBCs acceptance of the Material or Services ordered by SBC
and provided by Supplier as specified in Section 3.9, Delivery, Performance and
Acceptance. SBCs Acceptance shall occur no earlier than Supplier's Delivery of
Material and/or Services in strict compliance with the Specifications.

2.2

"Acceptance
Date" means the date on which SBC Accepts Material and/or Services,

2.3 

"Affiliate" means (1) a company., whether incorporated
or not which owns, directly or indirectly, a majority interest in either Party
(a "parent company"), and (2) a company, whether incorporated or not, in which a
five percent (5%) or greater interest is owned, either directly or indirectly,
by: (i) either Party Cr (ii) a parent company.

2.4

"Agreement"
shall have the meaning specified in the Section called "Entire Agreement."

2.5

"Cancellation"
means the occurrence by which either Party puts an end to this Agreement or
Orders placed under this Agreement for breach by the other, and its effect is
the same as that of "Termination" and, except as otherwise provided for herein,
the canceling Party also retains any remedy for breach of the whole Agreement or
any unperformed balance.

2.6

"Delivery"
means Supplier's obligation to provide Material and/or: Services that strictly
conform to the Specifications. Supplier completes Delivery: (i) upon SBC's
possession of the

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
4

Material
if Supplier is not required to provide additional Services, such as
installation, (ii) upon completing such additional Services, if Supplier is
required to provide such Services in connection with providing Material, or
(iii) for Services, upon completing the provision of Services. Notwithstanding
the above, Delivery shall not be deemed completed until the Supplier causes the
Material and Services to strictly conform to the Specifications.

 2.7

"Delivery
Date" means the date on which the Parties agree Supplier is scheduled in this
Agreement or an Order to complete its Delivery.

2.8

"Documentation"
means all documentation, including, but not limited to, user and system manuals
and instructions and training materials in machine readable or printed form, and
Supplier's written Specifications,

2.9

"Information"
means all ideas, discoveries, concepts, know-how, trade secrets, techniques,
designs, Specifications, drawings, sketches, models, manuals, samples, tools,
computer programs, technical information, and other confidential business,
customer or personnel information or data, whether provided orally, in writing,
or through electronic or other means,

2.10
"Laws" shall have the meaning specified in the Section called "Compliance with
Laws."

 2.11
"Liability" means all losses, damages, expenses, costs, penalties, fines and
fees, including reasonable attorneys' fees and consulting fees, arising from or
incurred in connection with a claim or cause of action related to performance or
omission of acts under this Agreement or any Order, including, but not limited
to, claims or causes of actions brought by third parties

 2.12
"Material" means a unit of equipment, apparatus, components, tools, supplies,
material, Documentation, hardware, or firmware thereto, or software purchased or
licensed here under by SBC from Supplier, including third party Material
provided or furnished by Supplier in connection with the Services provided
hereunder. Material shall be deemed to include any replacement parts.

 2.13
"Order" means such purchase orders, work orders, forms, memoranda or other
written communications as may be delivered to Supplier for the purpose of
ordering Services hereunder.

 2.14
"Service(s)" means any and all labor or service provided in connection with this
Agreement or an applicable Order, including, but not limited to, consultation,
engineering, installation, removal, maintenance, training, technical support,
repair, and programming. The term "Service" shall also include any Material,
including any Documentation, provided by Supplier in connection with providing
the Services.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SI3C, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
5

 2.15
"Specifications" mean (i) Supplier's applicable Specifications and descriptions,
including any warranty statements, and (ii) SBC's requirements, Specifications,
and descriptions specified in, or attached to, this Agreement or an applicable
Order, which shall control over an inconsistency with Supplier's Specifications
and descriptions.

 2.16
"Termination" means the occurrence by which either Party, pursuant to the
provisions or powers of this Agreement or pursuant to laws and regulations, puts
an end to this Agreement and/or Orders placed under this Agreement other than
for breach. On "Termination all executory obligations are discharged, but any
right based on breach of performance survives except as otherwise provided
herein.

 2.17
"Work" means all Material and Services, collectively, that Supplier is supplying
pursuant to Orders placed under this Agreement.

ARTICLE
3 - General. Clauses 

 3.1

Affiliate

Supplier
agrees that an Affiliate may place Orders with Supplier which incorporate the
terms and conditions of this Agreement, and that the term "SBC" shall
be deemed to refer to an Affiliate when an Affiliate places an Order with
Supplier under this Agreement. An Affiliate will be responsible for its own
obligations, including but not limited to, all charges incurred in connection
with such Order, The Parties agree that nothing in this Agreement will be
construed as requiring SBC to indemnify Supplier, or to otherwise be
responsible, for any acts or omissions of an Affiliate, nor shall anything in
this Agreement be construed as requiring an Affiliate to indemnify Supplier, or
to otherwise be responsible, for the acts or omissions of SBC.

 3.2
Amendments and Waivers

This
Agreement and any Orders placed hereunder may be amended or modified only
through a subsequent written document signed by the Parties; provided that SBC
may, at any time, make changes to the scope of Work, and Supplier shall not
unreasonably withhold or condition its consent. An equitable adjustment shall be
made if such change substantially affects the time of performance or the cost of
the Work to be performed under this Agreement. Such cost adjustment shall be
made on the basis of the actual cost of the Work, unless otherwise agreed in
writing. No course of dealing or failure of either Party to strictly enforce any
term, right or condition of this Agreement shall be construed as a general
waiver or relinquishment of such term, right or condition. A waiver by either
Party of any default shall not be deemed a waiver of any other default.

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives; except under written Agreement by the contracting
Parties.
6

Agreement
Number 02024517 3.3 Assignment

Neither
Party may assign, delegate, subcontract or otherwise transfer its rights or
obligations under this Agreement, except with the prior written consent of the
other Party; provided, however, that.. SBC will have the right to assign. this
Agreement to any Affiliate without securing the consent of Supplier, and both
Parties may assign their respective right to receive money due hereunder. Any
attempted assignment or transfer not consented to in writing, except for an
assignment to receive money due hereunder, will be void. It is expressly agreed
that any assignment of money will be void if (i) the assignor fails to give the
non-assigning Party at least thirty (30) days prior written notice, or (ii) the
assignment imposes or attempts to impose upon the non-assigning Party additional
costs or obligations in addition to the payment of such money, or (iii) the
assignment attempts to preclude SBC from dealing solely and directly with
Supplier in all matters pertaining to this Agreement, or (iv) the assignment
denies, alters or attempts to alter any of the non-assigning Party's rights
hereunder.

 3.4

Cancellation
and Termination

a.

Cancellation:

If
either party fails to cure a material default under this Agreement or
applicable- Order within thirty (30) days after written notice, then, in
addition to all other rights and remedies, the party not in default may Cancel
this Agreement and/or the Order under which the default occurred.
Notwithstanding anything else in this Agreement, if the material default is a
breach of the Compliance with Laws Section of this Agreement, the party not in
default may, upon providing written notice, Cancel the Agreement immediately.
Additional provisions for Cancellation of Orders hereunder are set forth in this
Agreement.

2.
If Supplier is the party in. default, SBC may Cancel any Orders which may be
affected by Supplier's default without any financial obligation or liability on
the part of SBC whatsoever, except to pay for the value of any Materials and/or
Services retained by SBC. If SBC elects to return any Material, or reject any
Services, Supplier shall be responsible for, and shall reimburse SBC for any
cost incurred in connection with promptly returning Material and restoring SBC's
site to its original condition. Supplier shall also promptly refund amounts, if
any, previously paid by SBC for such Material and/or Services. Upon removal and
restoration and SBC' s receipt of any such reimbursement and refund, title to
any such Materials, which had previously passed to SBC, shall revert to
Supplier,

b.

Termination:

SBC
may Terminate this Agreement or any Order in whole or in part, at any time, upon
written notice to Supplier. In such event, or if Supplier Cancels this Agreement
or Order as a result of BBC's failure to cure a material default, SBC
shall. pay Supplier its actual and direct costs incurred to provide the
Materials and Services ordered by SBC but no more than a percentage of the
Services performed or Materials Delivered,

Proprietary Information

The information contained in this Agreement is not for use ar
disclosure outside Sac, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties,
7

less
reimbursements, including salvage or resale value, of Materials or Services
affected. If requested, Supplier agrees to substantiate such costs with proof
satisfactory to SB.C In no event shall SBC's liability exceed the price of any
Materials or Services Ordered hereunder,. provided that SBC shall have no
liability for Materials not specially manufactured for SBC pursuant to any Order
which is. Terminated at least thirty (30) days prior to the Delivery Date. After
the receipt of SBC's payment for any Services, Supplier shall deliver the
physical embodiments, if any, of such Services. The foregoing statement of SBC's
liability states the entire. liability of SBC and Supplier's sole
remedy for SBC's Termination for convenience, or Supplier's Cancellation for
material default

c.

Partial.
Cancellation and. Termination:

Where
a provision of this Agreement or the applicable Laws permit SBC to Terminate or
Cancel an Order, such Termination or Cancellation may, at SBC's option, be
either complete or partial, In the case of a partial Termination or Cancellation
SBC may, at its option, accept a portion of the Materials or Services covered by
an Order and pay Supplier for such Materials or Services at the unit prices set
forth in such Order. The right to Cancel an Order shall also include the right
to Cancel any other related Order.

 3.5
Compliance with Laws

Supplier
shall comply with all applicable federal, state, county, and local rules,
inclining, without limitation, all statutes, laws, ordinances, regulations and
codes ("Laws"). Supplier's obligation to comply with all Laws includes the
procurement of permits, certificates, approvals, inspections and licenses, when.
needed, in the performance of this Agreement. Supplier further agrees to comply
with all applicable Executive and Federal regulations as set forth in "Executive
Orders and. Federal Regulations," a copy of which is attached as Appendix 3.5
and by this reference made a part of this Agreement. Supplier shall defend,
indemnify and hold SBC harmless from and against any Liability that may be
sustained by reason of Supplier's failure to comply with this Section.

3.6

Conflict
of Interest

Supplier
represents and warrants that no officer, director, employee, or agent of SBC has
been or will be employed, retained or paid a fee, or otherwise has received or
will receive any personal compensation or consideration, by or from Supplier or
any of Supplier's officers, directors, employees or agents in connection with
the obtaining, arranging or negotiation of this Agreement or other documents
entered into or executed in connection with this Agreement.

3.7

Construction
and Interpretation

a.
The language of this Agreement shall in all cases be construed simply, as a
whole and in accordance with its fair meaning and not strictly for or against
any Party. The Parties agree

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties,
8

that
this Agreement has been prepared jointly and has been the subject of arm's
length and careful negotiation. Each Party has been given the opportunity to
independently review this Agreement with legal counsel and other consultants,
and each Party has the requisite experience and sophistication to understand,
interpret and agree to the. particular language of the provisions. Accordingly,
in the event of an ambiguity in or dispute regarding the interpretation of this
Agreement, the drafting of the language of this Agreement shall not be
attributed to either Party.

b.

Article,
section and paragraph headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement. The use of the word. "include" shall mean "includes, but is not
limited to," The singular use of words shall include the plural and vice versa.
Except as otherwise specified, Supplier's price for Material and Services
includes the price for all related Material or Services necessary for SBC to use
the Material and/or Services for its intended purpose, as well as all other
Supplier obligations under this Agreement. All obligations and rights of the
Parties are subject to modification as the parties may specifically provide in
an Order. "Services" and "Software" shall be treated as "goods" for purposes of
applying the provisions of the Uniform Commercial Code ("UCC"). If there is an
inconsistency or. conflict between the terms in this Agreement and in an Order,
the terms in the Order shall take precedence.

c.

Whenever
any Party is. entitled to interest under this Agreement, the amount of interest
shall be the lower of twelve percent (12%) per annum, or the highest amount
allowed by the governing state law, pursuant to Section 3.12, "Governing
Law," of this Agreement.

 3.8
Cumulative Remedies

Except
as specifically identified. as a Party's sole remedy, any rights of
Cancellation, Termination, Liquidated Damages or other remedies prescribed in
this Agreement, are cumulative and are not exclusive of any other remedies to
which. the injured Party may be entitled. Neither Party shall retain the benefit
of inconsistent remedies.

 3.9

Delivery,
Performance. and Acceptance

Services'
performed by Supplier shall be deemed to be Accepted by SBC when Services are
performed to SBC's satisfaction, Payments, including progress payments, if any,
shall not be construed as Acceptance of Services performed up to the time of
such payments. SBC shall notify Supplier of any Services considered to be
unsatisfactory. Supplier shall, at no charge to SBC, take prompt action to
correct such unsatisfactory Services. If such unsatisfactory Services have not
been corrected within a reasonable time (not to. exceed ten (10) working days
from date of notification), SBC may, in addition to all other rights and
remedies provided by law or this Agreement, Cancel this Agreement and/or any
affected Order.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
9

The
terms contained in this Agreement and in any Orders, including all exhibits,
appendices and subordinate documents attached to or referenced in this Agreement
or in any Orders, constitute the entire integrated Agreement between Supplier
and SBC with regard to the subject matter contained herein. This Agreement
supercedes all prior oral and written communications, agreements and
understandings. of the Parties, if any, with respect hereto. Acceptance of
Material or Services, payment or any inaction by SBC, shall not constitute SBC's
consent to or Acceptance of any additional or different terms from those stated
in this Agreement, except for terms in an Order inserted by SE • and signed by
both Parties. Estimates furnished by SBC are for planning purposes only and
shall not constitute commitments. Supplier covenants never to contend otherwise.
No oral promises or statements have induced either Party to enter into this
Agreement.

 3.11
Force Majeure

a,

Neither
Party shall be deemed in default of this Agreement or any Orcbr to the extent
that any delay or failure in the performance of its obligations results from any
cause beyond its reasonable control. and. without its fault or negligence, such
as acts of God, acts of civil or military authority, embargoes, epidemics, war,
riots, insurrections, fires, explosions, earthquakes, floods or strikes ("Force
Majeure").

b,

If
any Force Majeure condition affects Supplier's ability to perform, Supplier
shall give immediate notice to SBC, and SBC may elect to either: (i) Terminate
the affected Order(s) or any part thereof, (ii) suspend the affected Order(s) or
any part thereof for the duration of the Force Majeure condition, with the
option to obtain Material and Services to be furnished under such Order(s)
elsewhere, and deduct from any commitment under such Order(s),, the quantity of
the Material and Services obtained elsewhere or for which commitments have been
made elsewhere, or (iii) resume performance under such Order(s) once the Force
Majeure condition ceases, with an option in SBC to extend any affected Delivery
Date for the length of time that the Force Majeure condition existed. Unless SBC
gives written notice within thirty (30) days after being notified of the Force
Majeure condition, option (ii) shall be deemed selected.

 3.12
Governing Law

This
Agreement and performance hereunder shall be governed by the Laws of the State
of~ Texas, exclusive of its choice of law provisions.

 3.13
Indemnity

TO THE FULLEST EXTENT PERMITTED BY LAW, SUPPLIER SHALL DEFEND,
INDEMNIFY AND HOLD HARMLESS .SBC AND ITS AFFILIATES (INCLUDING THEIR EMPLOYEES,.
OFFICERS., DIRECTORS, AGENTS AND CONTRACTORS)

Proprietary
Information

The information contained in this Agreement is not for use or
disclosure outside SEC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties,
10

AGAINST
ANY LIABILITY ARISING FROM OR INCIDENTAL TO SUPPLIER'S OBLIGATIONS UNDER THIS
AGREEMENT OR THE MATERIAL OR SERVICES PROVIDED BY SUPPLIER, INCLUDING (i)
INJURIES TO PERSONS, INCLUDING DEATH OR DISEASE, (ii) DAMAGES TO PROPERTY,
INCLUDING THEFT, (iii) SUPPLIER'S FAILURE TO COMPLY WITH ALL LAWS, AND (iv)
LIENS ON SEC'S PROPERTY.

b.

IT
IS THE INTENT OF THE PARTIES THAT THIS INDEMNITY APPLY REGARDLESS OF WHETHER OR
NOT SUCH LIABILITY WAS CAUSED IN PART BY SEC'S OWN NEGLIGENCE OR THAT OF THE
OTHER PARTIES INDEMNIFIED UNDER THIS SECTION, EXCLUDING ONLY ANY LIABILITY
ARISING FROM THEACTIVE NEGLIGENCE OF SBC AND EXCLUDING ANY SBC LIABILITY ARISING
FROM SEC'S DEFINITION AND SEC'S SCRIPTING OF THE TPV PROCESS. THIS INDEMNITY
SHALL SURVIVE THE DELIVERY, INSPECTION AND ACCEPTANCE OF THE MATERIAL OR
SERVICES.

c.

IF
ANY SERVICES PERFORMED IN OHIO OR ANY OTHER STATE WHICH PROVIDES EMPLOYER
IMMUNITY FROM EMPLOYEE CLAIMS UNDER WORKERS COMPENSATION STATUTES OR SIMILAR
LAWS, STATUTES OR CONSTITUTIONAL PROVISIONS, IT IS EXPRESSLY AGREED THAT
SUPPLIER HEREBY WAIVES ANY IMMUNITY FROM ITS OBLIGATIONS TO DEFEND, INDEMNIFY
AND HOLD HARMLESS SBC AND ITS AFFILIATES AGAINST ANY CLAIMS BY EMPLOYEES OF
SUPPLIER, WHICH IMMUNITY WOULD OTHERWISE ARISE BY OPERATION OF SUCH LAW, STATUTE
OR CONSTITUTIONAL PROVISION (In Ohio, Ohio Revised code 4123.74 and 4123.741 and
Section 35, Article, II, Ohio Constitution).

d.

SBC
SHALL NOTIFY SUPPLIER WITHIN A REASONABLE PERIOD OF TIME OF ANY WRITTEN CLAIM,
DEMAND, NOTICE OR LEGAL PROCEEDINGS ("CLAIM") FOR WHICH, SUPPLIER MAY
BE RESPONSIBLE UNDER THIS INDEMNITY OBLIGATION. A DELAY IN NOTICE SHALL NOT
RELIEVE SUPPLIER OF ITS INDEMNITY OBLIGATION, EXCEPT TO THE EXTENT SUPPLIER CAN
SHOW IT WAS PREJUDICED BY THE DELAY.

SUPT)LIER
SHALL ASSUME, AT' ITS.EXPENSE, THE SOLE DEFENSE OF THE CLAIM THROUGH COUNSEL
SELECTED BY SUPPLIER AND SHALL ,.:KEEP: SBC FULLY INFORMED AS TO THE
PROGRESS 'OF SUCH DEFENSE. UPON REASONABLE REQUEST OF :SUPPLIER AND AT
SUPPLIER'S EXPENSE, SBC SHALL COOPERATE WITH SUPPLIER TEETHE DEFENSE OF THE
CLAIM. AT ITS OPTION AND EXPENSE, SBC MAY RETAIN OR. USE SEPARATE COUNSEL TO
REPRESENT IT,. INCLUDING IN-HOUSE COUNSEL .SUPPLIER SHALL MAINTAIN CONTROL OF
THE DEFENSE, EXCEPT THAT IF THE SETTLEMENT OF A. CLAIM WOULD ADVERSELY AFFECT
SBC, SUPPLIER MAY SETTLE, THE CLAIM. AS TO SBC ONLY WITH ITS CONSENT; WHICH
CONSENT SHALL NOT BE WITHHELD OR DELAYED UNREASONABLY. SUPPLIER .SHALL PAY THE
FULL AMOUNT OF ANY

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.

 

JUDGMENT,
AWARD OR SETTLEMENT WITH RESPECT TO THE CLAIM AND ALL OTHER EXPENSES RELATED TO
THE RESOLUTION OF THE CLAIM, INCLUDING COSTS, INTEREST AND REASONABLE ATTORNEYS'
FEES. IF SBC IS REQUIRED TO TAKE ANY ACTION TO ENFORCE ITS INDEMNITY RIGHTS
UNDER THIS AGREEMENT, OR TO ASSUME THE DEFENSE OF ANY CLAIM FOR WHICH IT IS
ENTITLED TO RECEIVE AN INDEMNITY UNDER THIS AGREEMENT, BECAUSE OF SUPPLIER'S
FAILURE TO PROMPTLY ASSUME SUCH DEFENSE, THEN SBC MAY ALSO RECOVER FROM SUPPLIER
ANY REASONABLE ATTORNEYS' FEES (INCLUDING COST OF IN-HOUSE COUNSEL AT MARKET
RATES FOR ATTORNEYS OF SIMILAR EXPERIENCE) AND OTHER COSTS OF ENFORCING ITS
INDEMNITY RIGHTS OR ASSUMING SUCH DEFENSE.

f.
SUPPLIER. AGREES NOT TO IMPLEAD OR BRING ANY ACTION AGAINST SBC OR SBC'S
EMPLOYEES BASED ON ANY CLAIM BY ANY PERSON FOR PERSONAL INJURY OR DEATH THAT
OCCURS IN THE COURSE OR SCOPE OF EMPLOYMENT OF SUCH PERSON BY SUPPLIER AND
RELATES TO SUPPLIER'S PERFORMANCE UNDER THIS AGREEMENT,

 3.14
Information

a.

Information
furnished by SBC.

1.
Any Information furnished to Supplier in connection with this Agreement,
including Information provided under a separate Non-Disclosure prior to
executing this Agreement, shall remain SBC's property. Unless such Information
was previously known to Supplier free of any obligation to keep it confidential,
or has been or is subsequently made public by SBC or a third party, without
violating a confidentiality obligation, it shall be kept confidential by
Supplier, shall be used only in performing under this Agreement, and may not be
used for other purposes, except as may be agreed upon between Supplier and SBC
in writing. Supplier is, granted no rights or license to such Information. All
copies of such Information, in written, graphic or other tangible form, shall be
returned to SBC upon the. earlier of (i) SBC's request or (ii) upon Termination,
Cancellation, or expiration of this Agreement. All copies of such Information in
intangible form, such as electronic' records, including electronic mail, shall
be destroyed upon the earlier of (i) SBC's request or (ii) upon Termination,
Cancellation, or expiration of this Agreement, and Supplier shall certify to SBC
the destruction of all intangible copies of such Information,

2.
Supplier understands and agrees that any and all field trial results prepared by
SBC are and shall remain the property of SBC and are hereby considered SBC's
proprietary Information. Therefore, it shall be SBC's option, in its sole
discretion, to furnish Supplier copies of such documents or to discuss such
documents with Supplier. Supplier's use of field trial reports furnished by SBC
shall be governed by the Publicity Section in addition to the provisions
contained in this Section, "Information."

b.

Information
furnished by Supplier.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
12

Any Information furnished to SBC under this Agreement shall remain
Supplier's property. No Information furnished by Supplier to SBC in connection
with this Agreement shall be considered to be confidential or proprietary unless
it is conspicuously marked as such. If Supplier provides SBC with any
proprietary or confidential Information which is

conspicuously
marked, SBC shall use the same degree of care to prevent its disclosure to
others as SBC uses with respect to its own proprietary or confidential
Information. Notwithstanding the preceding sentences, no installation,
operation, repair, or maintenance Information of Supplier that pertain to the
Material and Services that are the subject of this Agreement shall be considered
to be proprietary or confidential, and SBC may disclose such Information to
others for the purpose of installing, operating, repairing, replacing, removing
and maintaining the Material for which it was initially furnished.

 3.15
Infringement of Third. Party Intellectual Property Rights

a.

Supplier
agrees to defend, indemnify and hold SBC harmless from and against any
Liability, including increased damages for willful infringement, that may result
by reason of any infringement, or claim of infringement, of any trade secret,
patent, trademark, copyright or other proprietary interest of any third party
based of the normal use or installation of any Material or Services furnished to
SBC.

b.

Supplier
represents and warrants that it has made reasonable independent investigation to
determine the legality of its right to sell or license the Material or provide
Services as specified in this Agreement.

In
addition to Supplier's other obligations set forth in this Section, if an
injunction or order is obtained against SBC's use of any Material or Service;
or, if in Supplier's opinion, any Material or Service is likely to become the
subject of a claim of infringement, Supplier will, at its expense:

1.

Procure
for SBC the right to continue using the Material or Service; or

2.

After
consultation with SBC, replace or modify the Material or Service to make it a
substantially similar, functionally equivalent, non-infringing Material or
Service.

d.

If
the Material or Service is purchased or licensed, and neither (c)(1) nor (c)(2)
above, is possible, in addition to SBC's other rights, SBC may cancel the
applicable Order and. require Supplier to remove, or cause the removal and
return of, such Material or Service from SBC's location and refund any charges
paid by SBC.

e.

In
no event will SBC be liable to Supplier for any charges after the date that SBC
no longer uses any Material or Service because of actual or claimed
infringement

f.

Supplier agrees to defend or settle, at its own expense,. any
action or suit for which it is responsible under this Section. SBC agrees to
notify Supplier promptly of any claim of infringement and cooperate in every
seasonable way to facilitate the defense, Supplier shall

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties,
13

afford
SBC, at its own expense and with counsel of SBC's choice, an opportunity to
participate on an equal basis with Supplier in the defense or settlement of any
such claim..

 3.16
Insurance

a.
With respect to performance hereunder, and in. addition to Supplier's obligation
to indemnify, Supplier agrees to maintain, at all times during the term of this
Agreement, the following minimum insurance coverages and limits and any
additional insurance and/or bonds required by law:

1._
Workers' Compensation insurance with benefits afforded under the Laws of the
state in which the Services are to be performed and Employers Liability
insurance with minimum limits of $100,000 for Bodily Injury each accident,
$500,000 for Bodily Injury by disease policy limits and $100,000 for Bodily
Injury by disease each employee.

Commercial
General Liability insurance with minimum limits of: $2,000,000 General Aggregate
limit; $1,000,000 each occurrence sub-limit for all bodily injury or property
damage incurred in any one occurrence; $1,000,000 each occurrence sub-limit for
Personal Injury and Advertising; $2,000,000 Products/Completed Operations
Aggregate limit, with a $1,000,000 each. occurrence sub-limit for
Products/Completed Operations.. Fire Legal Liability sub-limits of $300,000 are
required for lease agreements.

SBC
and its Affiliated companies will be listed as an Additional Insured on the
Commercial General Liability policy.

2.
If use of a motor vehicle is required, Automobile Liability insurance with
minimum .limits of $1,000,000 combined single limits per occurrence for bodily
injury and property damage, which. coverage shall extend to all owned, hired and
non-owned vehicles.

a.

SBC
requires that companies affording insurance coverage have a rating of B+ or
better and a Financial Size Category rating of VII or better rating, as rated in
the A.M, Best Key Rating Guide for Property and Casualty Insurance
Companies.

b.

A
certificate of insurance stating the types of insurance and policy limits
prodded: the Supplier must be received prior to commencement of any Work If a
certificate is not received, Supplier hereby authorizes SBC, and SBC may, but is
not required to, obtain insurance on behalf of Supplier as specified herein. SBC
will either invoice Supplier for the costs incurred to so acquire insurance or
will reduce by an applicable amount any amount owed to Supplier.

The
cancellation clause on. the certificate of insurance will be amended to read as
follows:

"THE
ISSUING COMPANY WILL MAIL THIRTY (30) DAYS WRITTEN NOTICE TO THE CERTIFICATE
HOLDER PRIOR TO CANCELLATION OR MATERIAL CHANGE THAT AFFECTS THE TERMS OF THE
CONTRACT

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SI3C, Supplier, their affiliated companies and
their third party
representatives,. except under written Agreement by the contracting
Parties.
14

AGREEMENT
BETWEEN SBC AND CALIBRUS . IN THE CASE OF NON­PAYMENT ONLY TEN (10) WRITTEN
NOTICE WILL BE PROVIDED PRIOR TO. CANCELLATION,"

 

The
Supplier shall also require all subcontractors performing Work on the project or
who may enter upon the work site to maintain the same insurance requirements
listed above.

 3.17
Invoicing and Payment

a.

Except
as otherwise specified in. an Order, Supplier shall render an invoice in
duplicate promptly after the Delivery and Acceptance of Material or performance
of Services. The invoice shall specify in detail (i) quantities of each ordered
item, (ii) unit prices of each ordered item, (iii) whether the item is taxable
and the amount of tax per item, (iv) item and commodity codes, (v) total amounts
for each item, (vi) total amount of applicable sales or use taxes, (vii)
discounts, (viii) shipping charges, (ix) total amount due, and (x) Software
might-to-­use fees as either "application" or "operational." If SBC
determines that an invoice and the related documentation are complete and
correct, SBC will pay to Supplier the amount of the invoice within forty-five
(45) days after SBC's receipt of such invoice. If SBC determines that the
invoice or the related documentation are incomplete or incorrect, SBC will
notify Supplier in writing within twenty two (22) days, and the Parties will
then cooperate in good faith to resolve any disputes regarding the invoice or
related documentation before the invoice payment is due. If SBC determines that
the invoice or related documents are incomplete or incorrect after twenty two
(22) days from receipt of the invoice, SBC will pay the amount of the invoice
within forty five (45) days after SBC's receipt of such invoice, and the Parties
will then cooperate in good faith to resolve any disputes regarding the invoice
or the related documentation prior to the due date of the next subsequent
invoice. Any adjustments, which the Parties agree are to be made in the invoice
which SBC notified. Supplier was incomplete or incorrect shall be effected in
the next subsequent invoice issued by Supplier five (5) or more days following
the Parties reaching such agreement; Invoices received by SBC more than one (1)
year after the provision of Material or performance of Services are untimely and
SBC shall have no obligation to pay such invoices.

b.

Invoices
for or including freight charges shall be accompanied by legible copies of
prepaid freight bills, express receipts or bills of lading supporting the
invoice amounts. Such invoices shall include (i) carrier's name, (ii) date of
shipment, (iii) number of pieces, (iv) weight, and (v) freight
classification.

C.
All claims for money due or to become due from SBC will be subject to deduction
by SBC for any setoff counterclaim for money due or to become due from Supplier,
whether under this Agreement or otherwise Any amount due to SBC that is not so
applied against Supplier's invoices for any reason shall be paid to SBC by
Supplier within thirty (30) days after written demand by SBC,

d,
If an Order or an Exhibit or Appendix specifies that Supplier may submit
invoices for progress payments prior to Acceptance, Supplier is permitted to
submit invoices at the end of

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
15

each
month and SBC will make progress payments to the Supplier at thirty (30) day
intervals. Such progress payments shall not exceed ninety percent (90%) of
satisfactorily completed Work at the time of billing, as determined by SBC.
Supplier agrees to use such progress payments for expenses incurred for Services
or Material used in performance of the Order for SBC.

e.
Supplier agrees to accept standard, commercial methods of payment and evidence
of payment obligation including, but not limited to,. credit card payments,
purchasing card payments, SBC's purchase orders and electronic fund transfers in
connection with the purchase of the Material and Services.

 3.1
Licenses and Patents

No
licenses, express or implied, under any patents, copyrights, trademarks or other
intellectual property rights are granted by SBC to Supplier under this
Agreement. No licenses, express or implied, under any patents, copyrights,
trademarks or other intellectual property rights are granted by Supplier to SBC
under this Agreement.

 3.19
Limitation of Liability

SBC
will not be liable for consequential, incidental, special or punitive damages,
or for loss of revenue or profit in connection with the performance or failure
to perform this Agreement, regardless of whether such Liability arises from
breach of contract, tort or any other heory of Liability.

 3.20
Liquidated Damages

Supplier
recognizes the importance of meeting Delivery Dates and agrees to the following
Liquidated Damage provisions and procedures:

a.

Upon
discovery of anything indicating a reasonable certainty that Material and/or
services will not be Delivered by the scheduled Delivery Date, Supplier shall
notify SBC and provide the estimated length of delay. The Parties shall work
jointly toward resolving the delayed Delivery. If the Parties reach agreement on
an extended Delivery Date and Supplier fails to meet the extended Delivery Date,
then SBC may (i) Cancel the applicable Order, (ii) exercise its right to recover
Liquidated Damages specified hereunder, and/or (iii) further extend the Delivery
Date. No payments, progress or otherwise, made by SBC to Supplier after any
scheduled Delivery Date shall constitute a waiver of Liquidated Damages.

b.

Notwithstanding
the above paragraph, in the event of -Supplier's failure to meet a.
Delivery Date; SBC shall be entitled to the greater of either (i) five percent
(5%) of the price of delayed Materials and/or Services for each day or (ii) five
hundred ($500.00) for each day after the originally scheduled Delivery Date,
until the day of actual Delivery. Liquidated

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC; Supplier, their affiliated companies and
their third: party
representatives, except under written Agreement by the contracting
Parties.

16

Damages
under this Section shall in no event exceed one hundred percent (100%) of the
total price specified for the Material and/or Services delayed.

3.21
Most Favored Customer

Supplier
represents and warrants that all prices, benefits, warranties, and other terms
and conditions in this Agreement are and will continue to be during the term of
this Agreement no less favorable than those currently being offered or which
will be offered by Supplier to any of its similarly situated customers. Supplier
shall review and have an officer of its Company certify its compliance with this
Section to SBC semi-annually, This certification shall be sent to SEC's
representative listed under the Section called "Notices."

 3.22
M/WBE (and Exhibits)

a.

Supplier
will make commercially reasonable efforts to achieve goals for the participation
of M/WBE and DVBE firms (as defined in the Section entitled "MBE/WBE/DVBE
Cancellation Clause") as follows: two percent (2%) annual MBE participation;
zero percent (0%) annual WBE participation; and zero percent (0%) annual, DVBE
participation. These goals apply to all annual expenditures by any entity
pursuant to this Agreement with Supplier

b.

Attached
hereto and incorporated herein as Exhibit A is Supplier's completed
Participation Plan outlining its M/WBE-DVBE goals and specific and detailed
plans to achieve those goals. Supplier will submit an updated Participation Plan
annually by the first week in January. Supplier will submit M/WBE-DVBE Results
Reports quarterly by the end of the first week following the close of each
quarter, using the form attached hereto and incorporated herein as Exhibit B.
Participation Plans and Results Reports will be submitted to the Prime Supplier
Program Manager.

 3.23
MBE/WBE/DVBE Cancellation Clause

Supplier
agrees that falsification or misrepresentation of, or failure to report a
disqualifying change in, the MBE/WBE/DVBE status of Supplier or any
subcontractor utilized by Supplier, or Supplier's failure to comply in good
faith with any MBE/WBE/DVBE utilization goals established by Supplier, or
Supplier's failure to cooperate in any investigation conducted by SBC, or by
SBC's agent, to determine Supplier's compliance with this section, will
constitute a material breach of this Agreement. In the event of any such breach,
SBC may, at is option, cancel ("Cancel") this Agreement upon thirty (30) days
notice, Supplier acknowledges and agrees that SBC's right to Cancel is absolute
and unconditional, and SBC shall not be subject to Liability, nor shall Supplier
have any right to suit for damages as a result of such Cancellation.

b.
For purchases under this Agreement by Pacific Bell, Pacific Bell Directory,
Pacific Bell Mobile Services, Pacific Bell Information Services, Pacific Bell
Communications, and any other entity operating principally in California
(collectively "California Affiliates"), Minority

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC,Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
1.7

and
Women Business Enterprises (MBEs/WBEs) are defined as businesses which satisfy
the requirements of paragraph d. below and are certified as MBEs/WBEs by the
California Public Utilities Commission Clearinghouse ("CPUC-certified").

For
purchases under this Agreement by any entity that is not a California Affiliate,
MBEs/WBEs are defined as businesses which satisfy the requirements of paragraph
d. below and are either CPUC-certified or are certified as MBEs/WBEs by a
certifying agency recognized by SBC.

d.

MBEs/WBEs
must be at least fifty-one percent (51%) owned by a minority individual or group
or by one or more women (for publicly-held businesses, at least fifty-one
percent (51%) of the stock must be owned by one or more of those individuals),
and the MBEs/WBEs' management and daily business operations must be controlled
by one or more of those individuals, and these individuals must be either U.S.
citizens or legal aliens with permanent residence status. For the purpose of
this definition, minority group members include male or female Asian Americans,
Black Americans, Filipino Americans, hispanic Americans, Native Americans (i.e.,
American Indians, Eskimos, Aleuts and Native Hawaiians), Polynesian Americans,
and multi-ethnic (i.e., any combination of MBEs and WBEs where no one specific
group has a fifty-one percent (51%) ownership and control of the business, but
when aggregated, the ownership and control combination meets or exceeds the
fifty-one percent (51%) rule).. "Control" in this context means exercising the
power to make policy decisions. "Operate" in this context means actively
involved in the day-to-day management of the business and not merely acting as
officers or directors.

e.

For
purchases under this Agreement by California Affiliates, Disabled Veteran
Business Enterprises (DVBEs) are defined as business concerns that satisfy the
requirements of paragraph g. below and are certified as DVBEs by the California
State Office of Small and Minority Business (OSMB). The DVBE must be a resident
of the State of California, and must satisfy the requirements of paragraph .g.
below.

f.
For purchases under this Agreement by any entity that is not a California
Affiliate; DVBEs are defined as any business concern that satisfies the
requirements of paragraph g. below and is either a defined DVBE for purchases by
California Affiliates, or is certified as a DVBE by a certifying agency
recognized by SBC.

g.
The DVBE must be (i) a non publicly-owned enterprise at least fifty-one percent
(51%) owned by one or more disabled veterans; or (ii) a publicly-owned business
in which at least fifty-one percent (51%) of the stock is owned by one or more
disabled veterans; or (iii) a subsidiary which is wholly owned by a parent
corporation, but only if at least fifty-one percent (51%) of the voting stock of
the parent corporation is owned by one or more disabled veterans; or (iv) a
joint venture in which at least fifty-one percent (51%) of the joint venture's
management and control and earnings are held by one or more disabled veterans.
In each case, the management and control of the daily business operations must
be by one or more disabled veterans. A disabled veteran is a veteran of the
military, naval or air service of the United States with a service-connected
disability. "Management and control" in this context

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties.
18

means
exercising the power to make policy decisions and actively involved in the
dayto-day management of the business and not merely acting as officers or
directors.

 3.24
Non-Exclusive Market

It
is expressly understood and agreed that this Agreement does not grant Supplier
an exclusive privilege to provide to SBC any or all Material and Services of the
type described in this Agreement, nor does it require SBC to purchase or license
any Material or Services. It is understood, therefore, that SB.C may contract
with other manufacturers and suppliers for the procurement or trial of
comparable Material and Services and that SBC may itself perform the Services
described herein.

 3.25
Notices

a.

Except
as otherwise provided in this Agreement or an applicable Order, all notices or
other communications hereunder shall be deemed to have been duly given when made
in writing and either (i) delivered in person, or (ii) when received, if
provided via electronic communications, including, but not limited to,
electronic mail and facsimile communications, or (iii) when received, if
provided by an overnight or similar delivery service, or (iv) when received, if
deposited in the United States Mail, postage prepaid, return receipt requested,
and addressed as follows:

To:

Calibrus,
Inc,

1225
W. Washington St. Tempe, AZ 85281 Attn.; David H. Biggs Phone: 602-778-7510
Facsimile: 602-778-7569 

To:

SBC
Services Inc.

530
McCullough Room 2-M-04

San
Antonio, TX 78215.

Attn.:
Stephen W. Boyanowski Phone: 210-886-33`66 Facsimile; 210-886-5292 

b.

The
addresses and facsimile telephone numbers to which notices or communications may
be given by either Party may be changed by written notice given by such Party to
the other pursuant to this Section..

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties..
19

a.

Services
shall be furnished by Supplier in accordance with the prices set forth in
Appendix 1.2(2), attached hereto and made a part hereof, or pursuant to film
prices which are quoted by Supplier for such Services, whichever price is lower.
The prices for all Services in Appendix 1.2(2) are subject to change only in
accordance with this Agreement, which changes must be in writing and signed by
both Parties. If Supplier at any time makes a general price decrease, Supplier
shall promptly notify SBC in writing and extend such decrease to SBC effective
on the date of such general price decrease. The prices in Appendix 1.2(2) are
not subject to increase during the Term of this Agreement.

b.

Supplier
shall strive to proactively reduce its costs and corresponding prices for
Services as charged to SBC by at least five percent (5%) each year, through the
use of improved processes, supply line economies and other cost reduction
methods,

 3.27
Publicity

Supplier
shall not use SEC's or its Affiliates' names or any language, pictures,
trademarks, service marks or symbols which could, in SBC's judgment, imply SBC's
or its Affiliates' identity or endorsement by SBC, its Affiliates or any of its
employees in any (i) written, electronic or oral advertising or presentation or
(ii) brochure, newsletter, book, electronic database or other written matter of
whatever nature, without SBC's prior written consent (hereafter the terms in
subsections (i) and. (ii) of this Section shall be collectively referred to as
'Publicity Matters"). Supplier will submit to SBC for written approval, prior to
publication, all Publicity Matters that mention or display SBCs or its
Affiliates' names, trademarks or service marks, or that contain any symbols,
pictures or language from which a connection to said names or marks may be
inferred or implied.

 3.28
Quality Assurance

Supplier
represents and warrants that Supplier's processes utilized to produce Material
and provide Services under this agreement are certified to TL-9000 or COPC
within one hundred eighty (180) days after the execution of this agreement and
that Supplier will maintainTL­9000 or COPC certification for the term of
this agreement. Supplier shall provide SBC evidence of TL-9000 or COPC
registration certification within thirty (30) days from the date of
certification..

b.
Supplier's key subcontractors/suppliers shall be TL-9000 or COPC certified
within three hundred sixty five (365) days after execution of this agreement
between SBC and Supplier. Supplier shall provide SBC evidence of TL-9000 or COPC
registration certification within thirty (30) days from the date of
registration.

e.
Copies of TL-9000 or COPC may be ordered through the American Society for
Quality by calling (800) 248=1946. Additional information on TL-9000 or COPC may
be found on the QUEST Forum web site.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
20

     f.
 If Supplier is not TL-9000 or COPC certified or Supplier's key
subcontractors/suppliers are not TL-9000 or COPC certified, as of contract
execution, Supplier agrees that at no additional charge to SBC:

1.
Supplier shall provide to SBC a TL-9000 or COPC quality plan. Elements to be
detailed in the quality plan include (at minimum):

(i)

A
schedule for achieving TL-9000 or COPC certification.

(ii)

Identification
of key sub-contractors/suppliers, their TL-9000 or COPC certification status:
and schedule for becoming registered,

Designation
of the Supplier's quality representative and of the senior executive with
quality responsibility,

2.
Supplier agrees to conform to the most current version of TL-9000 or COPC
available in conformance with the QUEST Forum transition period.

 3.
As required by SBC, Supplier shall submit TL-9000 or COPC registration and
surveillance audit, results, management review goals, objectives and results for
the registered business entity.

 4.
SBC, at Supplier's expense, may require improvement initiatives requiring the
intervention of a third party quality consultant for the purpose of auditing,
tracking and reporting performance and Material conformance with stated
requirements. Both parties will mutually agree upon which third party quality
consultant will be' selected.

Periodically
as agreed, status of activities and initiatives shall be submitted to both
parties for review. Unresolved issues will be documented and reported within
both, companies to the appropriate level of management responsible to resolve
the issue,

c.

Supplier
shall meet the requirements of Telcordia GR: 282-CorE "Software Reliability and
Quality Acceptance Criteria (SRQAC)" and subsequent changes thereto.

d.

Supplier
hereby agrees that Material furnished hereunder by Supplier has undergone or his
been subject to appropriate quality control measures and procedures, including
performance measurements, testing, quality process reviews or inspections.

e.

When
source inspection is required, Supplier further agrees that it will, at SEC's
request:

    1.
Notify SBC or SBC's agent when Material is ready for source inspection
activities and give

          SBC
or SBC's agent reasonable opportunity for inspection of such Material.

2.
Maintain and make available to SBC or SBC's agent the data, including all
information and reports about Supplier's quality and process control procedures
that demonstrate that Material meets the specified quality and reliability
requirements.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties,
21

3.
Provide SBC or SBC's agent, at no charge, access to Supplier's premises, test
equipment, facilities, data and specifications. Supplier will also provide
personnel to assist and sufficient working space to. enable SBC or SBC's agent
to perform said source inspection and/or process surveillance and/or a review of
Supplier's quality program at' Supplier's facilities.

f.
Both parties hereby agree to participate in the Supplier Performance Program
(hereinafter "Program") described below. The Program is a program to assist
Supplier in self-identifying areas of deficiency that may develop in Supplier's
performance as it relates to fulfilling its obligations under this agreement.
Participation in or use of, the Program does not negate or diminish Supplier's
responsibilities as it relates to its requirements to perform its obligation as
defined elsewhere in this agreement nor does it negate diminish or waive: SEC's
rights or remedies as defined elsewhere in this agreement. If there is a
conflict between the Program and other sections of this agreement the other
sections of the agreement shall control,

 Supplier
hereby agrees to:

(i)

Monitor its performance relative to certain measurable performance
indices such as product performance, service performance, and on time delivery.
Performance measurements collected for the purposes of the Program (hereinafter
"Data") will be defined by SBC and communicated to Supplier from time
to time.

(ii)

Collect
and report to SBC the Data relating to Supplier's performance. The Data is to be
entered by Supplier in SEC's Supplier Website in a format that is designated by
SBC. Data will be collected and reported periodically.

(iii)
     Conduct a self-evaluation of its performance based
on the analysis of the Data

           reported.
In those areas where Supplier's performance deviates from SBC's

           identified
acceptable performance levels, Supplier shall develop and submit specific

           performance
improvement plans to SBC detailing Supplier plans to correct such

           deficiencies

(iv)    
Cooperate fully with SBC's supplier performance management team to coordinate
Supplier's activities as they relate to the Program. This includes but is not
limited to participation in planning meetings, audits, feedback sessions, and
issue resolution.

2.
SBC hereby agrees to:

                    
Define the Data requirements that Supplier will monitor and report.

          Provide
Supplier with access to SBC's supplier website for the purposes of 

          entering
Supplier's data.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting.
Parties.
22

Generate
Performance Reports summarizing the Data and provide Supplier with periodic
feedback evaluating of its performance. SEC's supplier performance management
team will assist Supplier in resolving any internal SBC issues that may impact
Supplier's performance.

g
 Nothing contained in this Section, "Quality Assurance," will diminish
Supplier's obligation to deliver defect-free Material in conformance to
Supplier's warranty obligations under this agreement. SBC's purchase or license
of any Material hereunder is subject to SEC's inspection and acceptance after
delivery thereof.

 3.29
Records and Audits supplier 

a.

Maintain
complete and accurate records related to the Material and Services provided by
Supplier to SBC, including records of all amounts billable to and payments made
by SBC in accordance with Generally Accepted Accounting Principles and
Practices, uniformly and consistently applied in a format that will permit
audit;

b.

Retain
such records and reasonable billing detail for a period of at least three (3)
years from the date of final payment for Material and Services;

c.

Provide
reasonable supporting documentation to SBC concerning any disputed invoice
amount within thirty (30) calendar days after receipt of written notification of
such dispute; and,

d.

Permit
SBC and its authorized representatives to inspect and audit during normal
business hours the charges invoiced to SBC, Should SBC request an audit,
Supplier will make available any pertinent records and files to SBC during
normal business hours at no additional charge.

 3.30
Severability

If
any provision of this Agreement is held invalid or unenforceable, such
invalidity or non enforceability shall not invalidate or render unenforceable
any other portion of this Agreement. The entire Agreement will be construed as
if it did not contain the particular invalid or unenforceable provision(s), and
the rights and obligations of Supplier and SEC will be construed and enforced
accordingly.

 3.31
Survival of Obligations

Obligations
and rights in connection with this Agreement, which by their nature would
continue beyond the Termination, Cancellation or expiration of this Agreement,
including, but not limited to, those in the Sections entitled "Compliance with
Laws," "Infringement of Third Party Intellectual Property Rights,"
"Indemnity," "Publicity," "Severability," "Information,"

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties.
23

"Independent
Contractor" and "Warranty," will survive the Termination, Cancellation or
expiration of this Agreement.

 3.32
Taxes

a.
   Supplier may invoice SBC the amount of any federal excise
taxes or state or local sales taxes imposed upon the sale of Material or
provision of Services as separate items, if applicable, listing the taxing
jurisdiction imposing the tax. Installation, labor and other non-taxable charges
must be separately stated. SBC agrees to pay all applicable taxes to Supplier
which are stated on and at the time the Material or Service invoice is submitted
by Supplier. Supplier agrees to remit taxes to the appropriate taxing
authorities. Supplier agrees that it will honor properly prepared retail sales
tax exemption certificates, which SBC may submit, pursuant to the relevant
Sales/Use tax provisions of the taxing jurisdictions.

b.

Supplier
agrees to pay, and to hold SBC harmless from and against, any penalty, interest,
additional tax, or other charge that may be levied or assessed as a result of
the delay or failure of Supplier, for any reason, to pay any tax or file any
return or Information required by law, rule or regulation or by this Agreement
to be paid or filed by Supplier. Supplier agrees to pay and to hold SBC harmless
from and against any penalty or sanction assessed as a result of Supplier doing
business with any country subject to U.S. trade. restrictions.

c.

Following
the issuance of an Order, Supplier shall within twenty (20) days (but in no
event later than two (2) weeks before commencement of Work under the applicable
Order) present SBC a schedule of taxes and fees that Supplier proposes to
collect from SBC. Upon SBC's request, the Parties shall consult with respect to
the basis and rates upon which Supplier shall pay any taxes or fees for which
SBC is obligated to reimburse Supplier under this Agreement. If SBC determines
that in its opinion any such taxes or fees are note payable, or should be paid
on a basis less than the full price or at rates less than the full tax rate,
Supplier shall make payment in accordance with such determinations and SBC shall
be responsible for such determinations. If collection is sought by the taxing
authority for a greater amount of taxes than that so determined by SBC, Supplier
shall promptly notify SBC. Supplier shall. cooperate with SBC in contesting such
determination, but SBC shall be responsible and shall reimburse Supplier for any
tax, interest, or penalty in excess of its determination. If SBC desires to
contest such collection, SBC shall promptly notify Supplier. If SBC determines
that in its opinion it has reimbursed Supplier for sales or use taxes in excess
of the amount which SBC is obligated to reimburse Supplier, SBC and Supplier
shall consult to determine the appropriate method of recovery of such excess
reimbursements. Supplier shall credit any excess reimbursements against tax
reimbursements or other payments due from SBC if and to the extent Supplier can
make corresponding adjustments to its payments to the relevant tax authority. At
SEC's request, Supplier shall timely file any claims for refund and any other
documents required to recover any other excess reimbursements, and shall
promptly remit to SBC all such refunds and interest received.

d.

If
any taxing authority advises Supplier that it intends to audit Supplier with
respect to any taxes for which SBC is obligated to reimburse Supplier under this
Agreement, Supplier shall

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
24

(i)
promptly so notify SBC, (ii) afford SBC an opportunity to participate on an
equal basis with Supplier in such audit with respect to such taxes and (iii)
keep SBC frilly informed as to the progress of such audit. Each Party shall bear
its own expenses with respect to any such audit, and the responsibility for any
additional tax, penalty or interest resulting from such audit shall be
determined in accordance with the applicable provisions of this Section.
Supplier's failure to comply with the notification requirements of this Section
shall relieve SBC of its responsibility to reimburse Supplier for taxes only if
Supplier's failure materially prejudiced SBC's ability to contest imposition or
assessment of those taxes.

In
addition to its rights under subsection d. above with respect to any tax or tax
controversy covered by this Tax Section 3.32, SBC will be entitled to contest,
pursuant to applicable law and tariffs, and at its own expense, any tax
previously billed that it is ultimately obligated to pay. SBC will be entitled
to the benefit of any refund or recovery of amounts that it had previously paid
resulting from such a contest. Supplier will cooperate in any such contest,
provided that all costs and expenses incurred in obtaining-a refund or credit
for SBC shall be paid by SBC.

f.
If either Party is audited by a taxing authority Or other governmental entity,
the other Party agrees to reasonably cooperate with the Party being audited in
order to respond to any audit inquiries in an appropriate and timely manner, se
that the audit and any resulting controversy may be resolved expeditiously.

 3.33
Term of Agreement

a.

This
Agreement is. effective on the date the last Party signs and, unless Terminated
or Canceled as provided in this Agreement, shall remain in effect for a term
ending on July 1, 2004. The Parties may extend the term of this Agreement by
mutual agreement in writing.

b.

The
Termination, Cancellation or expiration of this Agreement shall not affect the
obligations of either Party to the other Party pursuant to any Order previously
executed hereunder, and the terms and conditions of this Agreement shall
continue to apply to such Order as if this Agreement were still ia effect.

 3.34
Warranty

Supplier
warrants to SBC that any Services provided hereunder will be performed in a
first­class, professional manner, in strict compliance with the
Specifications, and with the care, skill and diligence, and in accordance with
the applicable standards, currently recognized in Supplier's profession or
industry. If Supplier fails to meet applicable professional standards, Supplier
will, without additional compensation, promptly correct or revise any errors or
deficiencies in the Services furnished hereunder.

b.
The warranty period for Services shall be the longer of the warranty period
stated in the Order, the Specifications, or one (1) year. The warranty period
shall commence upon Acceptance.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
25

c.
Supplier represents and warrants that:

1.

There
are no actions, suits, or proceedings., pending or threatened, which will have a
material adverse effect on Supplier's ability to fulfill its obligations under
this Agreement;

2.

Supplier
will immediately notify SBC if, during the. term of this Agreement, Supplier
becomes aware of any action, suit, or proceeding, pending or threatened, which
may have a material adverse effect on Supplier's ability to fulfill the
obligations under this Agreement or any Order;

3.

Supplier
has all necessary skills, rights, financial resources, and authority to enter
into this. Agreement and related Orders, including the authority to provide or
license the Material or Services;

4.

The
Material and Services will not infringe any patent, copyright, or other
intellectual property;

5.

No
consent, approval, or withholding of objection is required from any entity,
including any governmental authority with respect to the entering into or the
performance of this Agreement or any Order;

6.

The
Material and Services will be provided free of any lien or encumbrance of any
kind;.

7.

Supplier
will be fully responsible and liable for all acts, omissions, and Work performed
by any of its representatives, including any subcontractor;

8.

All
representatives, including subcontractors, will strictly comply with the
provisions specified in this Agreement and any Order; and,

9.

Supplier
will strictly comply with the terms of this Agreement or Order, including those
specified in any Exhibits or Appendices thereto.

d.
All warranties will survive inspection, Acceptance, payment and use. These
warranties will be in addition to all other warranties, express, implied or
statutory. Supplier will defend, indemnify and hold SBC harmless from and
against all Liabilities for a breach of these warranties.

e.
If at any time during the warranty period for Services,. SBC believes there is a
breach of any warranty, SBC will notify Supplier setting forth the nature of
such claimed breach. Supplier shall promptly investigate such claimed breach and
shall either 0) provide Information satisfactory to SBC that no breach of
warranty in fact occurred,. or (ii) at no additional charge to SBC, promptly use
its best efforts to take such action as may be required to correct such
breach.

Proprietary Information
The.
information contained in this Agreement is not for use or disclosure outside
SBC; Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
26

f.
If a breach of warranty has not been corrected within a commercially reasonable
time, or if two (2) or more breaches of warranty occur in any sixty (60) day
period, SBC may Cancel the applicable Order.

 3.35
Work Orders

SBC may order Material and Services by submitting Work Orders in
connection with this Agreement. SBC will submit Work Orders that are
substantially in the form of Appendix 3.35, specifying the following
information:

1.

A
description of the Services and/or Material, including any
numerical/alphabetical identification referenced'.. in the applicable price
list;

2.

The
requested Delivery Date;

3.

The
applicable price(s);

4.

The
location to which the Material is to be shipped, or the site where Services will
be rendered;

5.

The
location to which invoices are to be sent for payment; and, SBC's Work Order
number.

b.
The terms in this Agreement shall apply to Work Orders submitted in connection
with. this Agreement, and preprinted terms on the back of any Order shall not
apply.

ARTICLE
4 - SPECIAL TERMS 

 4.1

Access

When
appropriate, Supplier shall have reasonable access to SEC's premises during
normal business hours, and at such other times as may be agreed upon by the
Parties to amble Supplier to perform its obligations under this Agreement.
Supplier shall coordinate such access with SBC's designated representative prior
to visiting such premises. Supplier will. ensure that only persons employed by
Supplier or subcontracted by Supplier will be allowed to enter SBC's premises.
If SBC requests Supplier or its subcontractor to discontinue furnishing any
person provided by Supplier or its subcontractor from performing Work on SBC's
premises, Supplier shall immediately comply with such request. Such person shall
leave SBC's premises immediately and Supplier shall not furnish such person
again. to perform Work on SBC's premises without SBC's written consent. The
Parties agree that, where required by governmental regulations, Supplier mill
submit satisfactory clearance from the U.S. Department of Defense and/or other
federal, state or local authorities.

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties,
27

b.
SBC may require Supplier or its representatives, including employees and
subcontractors, to exhibit identification credentials, which SBC may issue to
gain access to SBC's premises for the performance of Services. If, for any
reason, any Supplier representative is no longer performing such Services,
Supplier shall immediately inform SBC. Notification shall be followed by the
prompt delivery to SBC of the identification credentials, if issued by SBC.
Supplier agrees to comply with SEC's corporate policy requiring Supplier or its
representatives, including employees and subcontractors, to exhibit their
company photo identification in addition to the SBC issued photo identification
when on SBC's premises.

c.
Supplier shall ensure that its representatives, including employees and
subcontractors, while on or off SBC's premises, will perform Work which (i)
conform to the Specifications, (ii) protect SBC"s Material, buildings and
structures, (iii) does not interfere with SBC's business operations, and (iv)
perform. such. Services with care and due regard for the safety, convenience and
protection of SBC, its employees, and property and in full conformance with the
policies specified in the SB.C Code of Conduct, which prohibits the possession
of a weapon or an implement which can be used as a weapon (a copy of the SBC
Code of Conduct is available upon request).

d.
Supplier shall ensure that all persons furnished by Supplier work harmoniously
with all others when on SBC's premises.

 4.2
Background Check

Supplier
shall conduct a background check for each individual providing Services to SBC
to identify whether the individual has been convicted of a felony. Supplier
agrees that no individual convicted of a felony will be permitted to provide
Services in connection with an. Order submitted by SBC without SBC's written
consent.

 4.3

Electronic
Data Interchange (EDI)

a.

The
Parties shall exchange orders, payments, acknowledgements, invoices, remittance
notices, and other records ("Data") electronically, in place of tangible
documents, and agree to exchange such Data in accordance with. the
Telecommunications Industry Forum EDI Guidelines for use of American National
Standards Institute (ANSI) Accredited Standards Committee X12 transaction sets,
unless they mutually agree to a proprietary format or another standard such
Extensible Markup Language (XML).

b.

The
following additional conditions apply to any such exchanges:

1.
Garbled Transmissions: If any Data is received in an unintelligible,
electronically

          unreadable,
or garbled form, the receiving Party shall promptly notify the originating

          Party
(if identifiable from the received Data) in a reasonable manner. In the absence
of

          such
notice, the originating Party's record of the contents of such Data shall
control

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier; their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
28

2.

Signatures:
Each Party will incorporate into each EDI transmission an electronic
identification consisting of symbol(s) or code(s) ("Signature"). Each Party
agrees that my predetermined Signature of such Party included in or affixed to
any EDI transmission shall be sufficient to verify such Party originated,
"signed" and "executed" such transmission. No Party shall disclose to any
unauthorized person the Signatures of the Parties hereto.

3.

Statute
of Frauds: The Parties expressly agree that all Data transmitted pursuant to
this clause shall be deemed to be a "writing" or "in writing" for purposes of
the Uniform Commercial Code ("UCC"). Any such Data containing or having affixed
to it a Signature shall be deemed for all purposes to: (i) to have been "signed"
and "executed"; and (ii) to constitute an "original" when printed from
electronic: files or records established and maintained in the normal course of
business.

4.

Method
of Exchange: Exchange of Data will be made by direct electronic or computer
systems communication between SBC and Supplier or by indirect communications
using a third party service provider ("Provider") or Value Added Network ("VAN")
to translate, forward and/or store such Data. Each Party shall be responsible
for the cost(s) and associated cost(s) of any Provider or VAN with which it
contracts.

 4.4
Independent Contractor

Supplier
hereby represents and warrants to SBC that:

a.

Supplier
is engaged in an independent business and will perform all obligations under
this Agreement as an independent contractor and not as the agent or employee of
SBC;

b.

Supplier's
personnel performing Services shall be considered solely the employees of
Supplier and not employees or agents of SBC;

c.

Supplier
has and retains the right to exercise full control of and supervision over the
performance of the Services and full control over the employment, direction,
assignment, compensation, and discharge of all personnel performing the
Services;

d.

Supplier
is solely responsible for all matters relating to compensation and benefits for
all of Supplier's personnel who perform Services. This responsibility includes,
but is not limited to, (i) timely payment of compensation and benefits,
including, but not limited to, overtime, medical, dental, and any other benefit,
and (ii) all matters relating to compliance with all employer obligations to
withhold employee taxes, pay employee and employer taxes, and file payroll tax
returns and information returns under local, state and federal income tax. laws,
unemployment compensation insurance and state: disability insurance tax laws,
social security and Medicare tax laws, and all other payroll tax laws or similar
taws with respect to all Supplier personnel providing Services; and,

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties.
29

e.
Supplier will indemnify, defend, and hold SBC harmless from all Liabilities,
costs, expenses and claims related to Supplier's failure to comply with the
immediately preceding paragraph.

 4.5

Information
Customer

a.

For
the purposes of this clause, "Information - Customer," "Customer Information"
includes, but is not limited to, customer name, address, phone number,
information concerning a customer's calling patterns, unlisted customer numbers,
aggregate customer data with individual identifying information deleted, and
Customer Proprietary Network Information ("CPNI") which includes information
available to SBC by virtue of the SBC's relationship with. its customers as a
provider of telecommunications service and may include: the quantity, technical
configuration, location, type, destination, amount of use of telecommunications
service subscribed to, and information contained on the telephone bills of SBC's
customers pertaining to telephone exchange service or telephone toll service
received by a customer of SBC. Except as provided herein, title to all Customer
Information shall be in SBC. Except as otherwise provided herein, no license: or
rights to any Customer Information are granted to Supplier hereunder.

b.

Supplier
acknowledges that Customer Information received may be subject to certain
privacy laws and regulations and requirements of SBC. Supplier shall consider
Customer Information to be private, sensitive and confidential. Accordingly,
with respect to Customer Information, Supplier shall comply with all applicable
CPNI restrictions of the Telecommunications Act (47 U.S.C. § 222) and, for SBC's
customers residing in California, the Constitution of California (Article I, §
1), the California Public Utilities Code (§§ 2841­2894), and General Order
107-B of the California Public-Utilities Commission. Accordingly,
Supplier shall:

1.

not
use any CPNI to market or otherwise sell products to SBC's customers;

2.

make
no disclosure of Customer Information to any party other than SBC, except to the
extent necessary for the performance of Services for SBC;

3.

not
incorporate any Customer Information into any database other than in a database
maintained exclusively for the storage of SBC's Customer Information;

4.

not
incorporate any data from any of Supplier's other customers, including
Affiliates of SBC, into SBC's customer database;

5.

make
no use whatsoever of any Customer Information for any purpose except to comply
with the terms of this Agreement;

6.

make
no sale, license or lease of Customer Information to any other party;

7.

restrict
access to Customer Information, to only those employees of Supplier that require
access in order to perform Services under this Agreement;

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
3Q

8.

implement
and comply with a data security plan, approved in advance in writing by SBC, and
other procedures as may be agreed by SBC and Supplier relative to the security
of Customer Information at all times: in performing Services hereunder;

9.

prohibit
access or use of Customer Information by any of Supplier's other customers,
Supplier's Affiliates, or third parties except as may be agreed otherwise by
SBC; and

10.

promptly return all Customer Information to SBC upon expiration,
Termination or Cancellation of this Agreement or applicable schedule, unless
expressly agreed or instructed otherwise by SBC.

 4.6

Technical
Support

Supplier
will provide, at no additional cost to SBC, full and complete technical
assistance to SBC for the Material and Services provisioned under this
Agreement, including ongoing technical. support and field Service and.
assistance, provision of technical bulletins and updated user manuals, and
telephone assistance to assist with installation, operation, maintenance and
problem resolution. The availability or performance of this technical support
will not be construed as altering or affecting Supplier's obligations as set
forth in the Warranty Section or as provided elsewhere in this Agreement. Field
service and technical support, including emergency support (service affecting),
will be provided on site twenty-four (24) hours a day. Supplier will provide to
SBC, and keep current, an escalation document that includes names, titles and
telephone numbers, including after-hours telephone numbers, of Supplier
personnel responsible for providing technical support to SBC. Supplier will
maintain a streamlined escalation process to speed resolution of reported
problems.

 4.7
Key Personnel

Supplier
shall notify in writing sixty (60) days prior to any change in key personnel.
SBC may terminate this Agreement after receiving such notice of change of key
personnel, upon giving thirty (30) days written notice of its intent to
terminate this Agreement. Key personnel shall include Tom Harker, and David
Biggs.

The
personnel or facilities listed below are considered essential to the
implementation of this program (defined as the first 180 days from the date the
first interface is executed). Before removing, replacing, or diverting any of
the specified personnel, Supplier shall notify SBC sixty (60) days in advance
and submit justification (including proposed substitutions) in sufficient detail
to permit evaluation of the impact on implementation. Supplier shall make no
diversion without SBC's written consent. Tom Harker and David Biggs
as key personnel may, with the consent of SBC, be amended from time to time
during the implementation of the contract to change the key personnel.

Proprietary Information.

The information contained in this Agreement is not for use or
disclosure outside SBC, supplier; their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties.
31

 4.8

Source
Code Availability

Supplier shall deposit the source code and any other Information
necessary to enable SBC to maintain the Software, including Documentation, into
an escrow account pursuant to an escrow agreement substantially in the form of
Appendix 4.9 ("Escrow Agreement") with an. escrow agent (the "Escrow Agent")
satisfactory to SBC. Whenever a change is made to the source code during the
term of the Escrow Agreement, the revised source code and related Documentation
shall promptly be deposited into such escrow account.

 4.9

Testimony

Matters
relating to Work under this Agreement may be at issue before various
governmental bodies. Supplier agrees to have appropriate members of its company
willing to testify at appropriate times at no additional cost, regarding any
aspect of the Work.

 4.10
Work Done By Others

If
any part of Supplier's Work is dependent upon work performed by others, Supplier
shall inspect and promptly report to SBC any defect that renders such other work
unsuitable for Supplier's proper performance. Supplier's silence shall
constitute approval of such other work as fit, proper and suitable for
Supplier's performance of its Work.

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized representatives:

Calibrus,.
Inc.,

By:
 /s/ David H Biggs

Printed
Name: David H Biggs

Title:
CEO

Date:

SBC
SERVICES, INC.

By:
/s/ John Howell

Printed
Name: John Howell

 Title:
Director Mktg. Bus Dev.& Advertising

Date:
 August 30, 2002

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties.

32

 

Appendix 1.2(1)

Description of Services (and Deliverables)

Supplier
shall provide the following Services:

Supplier
shall adhere to the current FCC and State regulations in providing these
Services to SBC. SBC and Supplier will negotiate in good faith any changes in
price as a result of significant changes in FCC, State regulations or call
details.

SBC
sales agent will contact the Supplier. Supplier will provide to SBC Third Party
Verification Live Operator Services ("TPV Services" or "Services") that will
allow for verification of orders.

The
TPV Services involve Third Party Verification of sales to SBC customers. When a
customer agrees to the sale, the SBC Sales Representative will enact an on-line
transfer to a Supplier to record the fact that the customer has agreed to the
sales order. Supplier will provide Live Operator Services that will allow for
Third Party Verification of orders.

The
Supplier will record the entire TPV process. Supplier will employ customized
scripts, greetings, and indexing recordings by specified captured details as
well as time, date, and year. Once recorded, all audio recordings shall be
available for retrieval, Access to recordings will be available through any
touch tone telephone or the Internet using the appropriate access and security
codes, All voice recordings and all TPV Services are the sole property of
SBC.

The
TPV Services shall be in strict compliance with the Specifications as specified
in Work Orders issued hereunder.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.

33

Appendix 1.2(2) Prices

Supplier
shall provide the Services, including any applicable deliverables, for the
following prices:

If
actual business conditions vary significantly from estimates in a manner that
affects the cost of providing TPV (Third Party Verification) Services, the
Supplier and SBC will be given an opportunity to adjust the price of the Service
by mutual written agreement. Supplier shall provide the Services, including any
applicable deliverables, for the following prices:

					
	
 
	
Per
call charge based on Calls/ Month

	
Call
Volume
	
>0

<=250K
	
>250K

<=500K

 
	
>500K

<=
750K

 
	
>750K

<=1M

	
Live
Operator Price Per call charge English

and
Spanish on behalf of SBC, SBC Affiliates

and
Suppliers
	
$  
..90
	
$ 0.87
	
$0.85
	
$0.83

	
Live
Operator Price Per call charge in

language
(Cantonese, Mandarin, Korean,

Japanese,
Tagalong, Vietnamese, and Polish)

behalf
of SBC, SBC Affiliates and Suppliers.
	
$1.59
	
$I.57
	
$1.54
	
$1.52

	
Internet
TPV - Live Operator Outbound

Contact
call charges for English and Spanish

on
behalf of SBC, SBC Affiliates and

Suppliers.
This price is not per call but for the

required
calls to contact Customer
	
$1.17
	
$1.14
	
$1.11
	
$1.08

Notwithstanding
the forgoing, the per call charge is determined on a cumulative basis for SBC,
all affiliates, SBC suppliers and all other Supplier customers who use the WEB
based tools designed for this program combined regardless of call type. The per
call charges is inclusive of all support charges including but not limited to
Scripting, 800 Number services, Toll Charges, Programming, Reporting,
Interfacing with SBC systems, etc. Cumulative SBC Calls apply to the total of
all Live Operators regardless of origination for SBC, SBC's affiliates and SBC
suppliers.

For
example, if there were 400,000 SBC1Affiliate/SBC supplier calls in a month and
200,000 `other Supplier customers using the WEB based tools' in the same month,
SBC would pay the prices per call specified in the
(>500K<=750K) column. If there are 550,000 SBC calls in a month
and 300,000 `other Supplier customers using the WEB based tools' in the same
month, SBC would pay the prices per call specified in the
(>750K<=1M) column.

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
34

Appendix 1,2(3)
Specifications/Requirements

To be specified on each work order issued hereunder. Executive Orders and
Federal Regulations

Work
under this Agreement may be subject to the provisions of certain Executive
Orders, federal laws, state laws and associated regulations governing
performance of this Agreement including, but not limited to: Executive Order
11246, Executive Order 11625, Executive Order 11701 and Executive Order 12138,
Section 503 of the Rehabilitation Act of 1973, as amended, and the Vietnam Era
Veteran's Readjustment Assistance Act of 1974. To the extent that such Executive
Orders, federal laws, state laws and associated regulations apply to the Work
under this Agreement, and only to that extent, Supplier (also referred to as
"Contractor") agrees to comply with the provisions of all such Executive Orders,
federal laws, state laws and associated regulations, as now in force or as may
be amended in the future, including, but not limited to, the following:

1.

EQUAL
EMPLOYMENT OPPORTUNITY DUTIES AND PROVISIONS OF GOVERNMENT CONTRACTORS

In
accordance with 41 C.F.R. §60-1.4(a), the parties incorporate herein by this
reference the regulations and contract clauses required by that section,
including, but not limited to, Supplier's agreement that it will not
discriminate against any employee or applicant for employment because of race,
color, religion, sex or national origin. Supplier will take affirmative action
to ensure that applicants are employed, and that employees are treated during
employment, without regard to their race, color, religion, sex or national
origin.

2.

AGREEMENTT
OF NON SEGREGATED FACILITIES

In
accordance with 41 C,F.R.§60-1.8, Supplier agrees that it does not and will not
maintain or provide for its employees any facilities segregated on the basis of
race, color, religion, sex or national origin at any of its establishments, and
that it does not, and will not, permit its employees to perform their services
at any location, under its control, where such segregated facilities are
maintained. The term "facilities" as used herein means waiting rooms, work
areas, restaurants and other eating areas, time clocks, rest rooms, washrooms,
locker rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and housing
facilities provided for employees; provided that separate or single-user
restrooms and necessary dressing or sleeping areas shall be provided to assure
privacy between the sexes.

3.

AGREEMENT
OF AFFIRMATIVE ACTION PROGRAM

Supplier
agrees that it has developed and is maintaining an Affirmative Action. Plan as
required by 41 C.F.R.§60-1..4(b).

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
36

4.

AGREEMENT
OF FILING

Supplier agrees that it will file, per current instructions,
complete and accurate reports on Standard Form 100 (EEO-1), or such other forms
as may be required under 41 C.F.R. §60­1.7(a).

5.

AFFIRMATIVE
ACTION FOR HANDICAPPED PERSONS AND DISABLED VETERANS, VETERANS OF THE VIETNAM
ERA.

In accordance with 41 C.F.R.§60-250,20, and 41 C.F.R.§60-741.20,
the parties incorporate herein by this reference the regulations and contract
clauses required by those provisions to be made a part of government contracts
and subcontracts.

6.

UTILIZATION
OF SMALL, .SMALL DISADVANTAGED AND WOMEN-OWNED SMALL BUSINESS CONCERNS

As
prescribed in 48 C.F.R., Ch. 1, 19.708(a):

(a)

It
is the policy of the United states that small business concerns, small business
concerns owned and controlled by socially and economically disadvantaged
individuals and small business concerns owned and controlled by women shall have
the maximum practicable opportunity to participate in performing contracts let
by any Federal agency, including contracts and subcontracts for systems,
assemblies, components andrelated services for major systems. It is further the
policy of the United States that its prime contractors establish procedures to
ensure the timely payment amounts due pursuant to the terms of the subcontracts
with small business concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals and small business concerns
owned and controlled by women.

(b)

Supplier
hereby agrees to. carry out this policy in the awarding of subcontracts to the
fullest extent consistent with efficient contract performance. Supplier further
agrees to cooperate in any studies or surveys as may be conducted by the United
States Small Business Administration or the awarding agency of the United States
as may be necessary to determine the extent of Supplier's compliance with this
clause,

(c)

As
used in this Agreement, the term "small business concern" shall mean a small
business as defined pursuant to Section 3 of the Small Business Act and relevant
regulations promulgated pursuant thereto. The term "small business concern owned
and controlled by socially and economically disadvantaged individuals" shall
mean a small business concern (i) which is at least fifty-one percent (51%)
unconditionally owned by one or more socially and economically disadvantaged
individuals, or, in the case of any publicly owned business, at least fifty-one
percent (51%) of the stock of which is unconditionally owned by one or more
socially and economically disadvantaged individuals; and (ii) whose management
and daily business operations are controlled by one or more such individuals.
This term shall also mean a small business concern that is

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
37

at
least fifty-one percent (51%) unconditionally owned by an economically
disadvantaged Indian tribe or Native Hawaiian Organization, or a publicly owned
business having at least fifty-one percent (51%) of its stock unconditionally
owned by one of these entities which has its management and daily business
controlled by members of an economically disadvantaged Indian tribe or Native
Hawaiian Organization, and which meets the requirements of 13 CRF part 124.
Supplier shall presume that "socially and economically disadvantaged
individual" includes Black Americans, Hispanic Americans, Native Americans,
Asian-Pacific Americans, Subcontinent Asian Americans and other minorities, or
any other individual found to be disadvantaged by the Administration. pursuant
to Section 8(a) of the. Small Business Act. Supplier shall presume that socially
and economically disadvantaged entities also include Indian Tribes and Native
Hawaiian Organizations.

(d)

The
term "small business concern owned and controlled by women" shall mean a small
business concern (i) which is at least fifty-one percent (51%) owned by one or
more women, or, in the case of any publicly owned business, at least fifty-one
percent (51%) of the stock of which is owned by one or more women, and (ii)
whose management and daily business operations are controlled by one or more
women; and.

(e)

Suppliers
acting in grind faith may rely on written represent Irons by their
subcontractors regarding their status as a small business concern a small
business concern owned-and controlled by social and-economically
disadvantaged individuals owned small business concern owned and controlled lay
women

7.
SMALL, SMALL DISADVANTAGED AND WOMEN-OWNED SMALL BUSINESS SUBCONTRACTING
PLAN.

The subcontractor will adopt a plan similar to the plan required by 48 CFR
Ch. 1 at 52.219-9.

38

Appendix 3.35

Work Order/Statement of Services

1.

Description
of Services and Deliverables:

Services
performed shall include but not be limited to:

2.

Personnel
to Perform the Services:

The
personnel to perform such Services include:

3.

Location
of Services:

Location
of Services shall be at the following location:

4.

Prices

[State
the applicable price or reference the Appendix which states the applicable
price:

5.

Payment

           Payment
for all Services shall be at the rate of

b.

Invoices/Billing.
Information:.

Invoices
and billing information are to be sent:

7.

Project
Manager/Point of Contact:

           The
project, manager and//or point of contact shall be:

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.

39

8. Name of Affiliate(s) Ordering Services 9. Reimbursable Expenses

The
following sets forth the standards to be applied in reimbursing Supplier for the
actual costs. of expenses incurred in the performance of its Services, provided
such reimbursements are authorized in the applicable Order.

1.

Airfare:
SBC will reimburse Supplier for airfare for coach or lower rate, provided such
travel is authorized in advance by SBC. Supplier shall submit to SBC copies of
all used airline tickets.

2.

Ground
Transportation: SBC will reimburse Supplier for travel from the originally
assigned work location (or, if no work location is so assigned, Supplier's
principal place of business) to and from the temporary work location (any
address other than the originally assigned work location) as follows: a) for use
of Supplier's automobile at the mileage rate allowed by the Internal Revenue
Services for business use of an automobile, or b) for reasonable car rental.

3.

Incidental
Transportation Expenses: SBC will reimburse Supplier for incidental
transportation expenses such as bridge tolls and parking fees incurred for
travel to and from. temporary work locations.

4.

Lodging
and Meals: SBC will reimburse Supplier for reasonable lodging and rival expenses
when Supplier is assigned to a temporary work location requiring an overnight
stay or longer, provided such travel is authorized in advance by SBC. Supplier
shall not be entitled to reimbursement for meals purchased for persons other
than Supplier's Personnel assigned to the project.

5,
Telephone: SBC will reimburse Supplier for long distance and toll telephone
calls placed by Supplier in the. performance of Services.

6. Delivery: SBC will reimburse Supplier for messenger services,
overnight delivery and other express mail type services when such services are
specifically requested by SBC or are reasonably necessary for Supplier's
performance of Services.

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SIC, Supplier, their affiliated companies and
their third
party representatives, except under written. Agreement by the contracting
Parties.
40

Agreement
Number 02024517 7. Entertainment: SBC will not reimburse Supplier for
entertainment expenses.

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representatives:

Supplier's
Name -- sample only

SBC
SERVICES, INC. -- sample only

By:

 By.

Printed
Name:

 Printed
Name:

Title:

 Title:

Date:

 Date:

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
41

Appendix 4.9

FORM OF SOFTWARE ESCROW AGREEMENT

THIS
ESCROW AGREEMENT, effective

,
200_, (the "Escrow Agreement")

is among SBC Services, Inc. ("SBC"), ("Supplier") and ("Escrow
Agent")

Pursuant
to that certain

("the
Agreement"), the parties agree as follows:

1.

Supplier
agrees to keep current copies of the source code and other materials for the
Supplier Licensed Software ("Deposit Materials") described in Attachment 1,
attached hereto and made a part hereof, (herein referred to as the "Software")
in escrow with Escrow Agent during the license term of such Software in
accordance with the provisions of the Agreement and this Escrow Agreement.

2.

SBC
and Supplier shall share equally all costs of providing and maintaining the
Deposit Materials in escrow, including the fees of Escrow Agent. The copy of the
Deposit Materials provided to SBC placed in escrow shall be reproduced and
maintained on magnetic tape compatible with workstations and the Systems. on
which the Software will operate and shall be accompanied by full documentation
therefore. When a new release or substantial change to the current release of
the Software is issued by or on behalf of Supplier during the term of the Escrow
Agreement, the revised Deposit Materials, including the change, shall be
delivered to the Escrow Agent as soon as practicable after the change is
effected by or on behalf of Supplier. Copies of the revised Deposit Materials
and the Deposit Materials prior to the then latest revision, shall be maintained
in escrow as provided herein.

3.

Escrow
Agent shall release the Deposit Materials to SBC under the following conditions
(a "Release Condition"):

3.
a.

Supplier's
failure to cure a Material breach under and within the timeframes specified in
the Agreement, or applicable Order; or

4.

b.

Except
as limited below, existence of any one or more of the following circumstances,
uncorrected for more than sixty (60) days: entry of an order for relief under
Title 11 of the Federal Bankruptcy Code; the making by Supplier of a general
assignment for the benefit of creditors; the appointment of a general receiver
or trustee in bankruptcy of Supplier's business or property; or action by
Supplier under any state insolvency or similar law for the purpose of its
bankruptcy, reorganization, or liquidation. Notwithstanding the foregoing, the
occurrence of the described events will not trigger release of the Deposit
Materials if, within the specified sixty (60) day period, Supplier

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their affiliated companies and
their third party
representatives, except under written Agreement by the contracting
Parties.
42

provides
to SBC adequate assurances, reasonably acceptable to SBC, of its continued
ability and willingness to fulfill all of its maintenance and support
obligations.

5.

If
SBC believes in good faith that a Release Condition has occurred, SBC may
provide to Escrow Agent written notice of the occurrence of the Release
Condition and a request for the release of the Deposit Materials ("Request for
Release"). Such Request for Release shall be accompanied by an affidavit (the
'Affidavit") signed by SBC attesting:

6.

1.
To a full description of the Release Condition; and

7.

2.
That the Deposit Materials shall continue to be the. sole property of Supplier
and shall be subject. to the confidentiality provisions of the Agreement;
and

S,
3. That the Deposit Materials shall be used solely for SBC's support and
maintenance, modification or correction of the Supplier Licensed Software
licensed by Supplier to SBC, including the creation of derivative works in order
to provide SBC the benefits intended under the Agreement or Order (but not for
purposes of sublicensing); and

9.

4.
That a copy of the Request for Release and said Affidavit have been provided to
Supplier.

10.

 Within
three (3) business days of receipt of a Request for Release, Escrow Agent shall
provide a copy of the Request for Release and the Affidavit to Supplier, by
certified mail, return receipt requested, or by commercial express mail,

11.

From
the date Escrow Agent mails the notice requesting release of the Deposit
Materials, Supplier shall have ten (10) business days to deliver to Escrow Agent
contrary instructions. "Contrary Instructions" shall mean the written
representation by Supplier that a Release Condition has not occurred or has been
cured. Upon receipt of Contrary Instructions, Escrow Agent shall send a copy to
SBC by certified mail, return receipt requested, or by commercial express mail.
Additionally, Escrow Agent shall notify both SBC and Supplier that there is a
dispute to be resolved pursuant to the Dispute Resolution Section of the
Agreement (Section J. Escrow Agent will continue to store the Deposit Materials
without release pending the first to occur of (a) joint instructions from
Supplier and SBC; (b) resolution pursuant to the Dispute Resolution provisions;
or (c) order of a court.

12.

If
Escrow Agent does not receive Contrary Instructions from Supplier, Escrow Agent
is authorized to release the Deposit Materials to SBC

4.

Escrow
Agent shall be responsible to perform its obligations under this Agreement and
to act in a reasonable and prudent. manner with regard to this Escrow Agreement.
Provided Escrow Agent has acted in the manner stated in the preceding sentence,
the party on whose behalf, or pursuant to whose direction Escrow Agent acts,
shall indemnify, defend and hold harmless

Proprietary Information
The information contained in this
Agreement is not for use or disclosure outside SBC, Supplier, their affiliated
companies and
their third party representatives, except under written
Agreement by the contracting Parties.
43

Escrow
Agent from any and all claims, actions, damages, arbitration fees and expenses,
costs, attorney's fees and other liabilities incurred by Escrow Agent relating
in any way to this Escrow Agreement. Absent any such direction, Supplier and SBC
shall jointly and severally indemnify and hold harmless Escrow Agent from any
and all claims, actions, damages, arbitration fees and expenses, costs,
attorney's fees and other liabilities incurred by Escrow Agent relating in any
way to this Escrow Agreement, except for any Liability, costs or expenses that
may be sustained or incurred by the gross negligence or willful misconduct on
the part of Escrow Agent, its employees or agents.

5.

Any
dispute relating to or arising from this Escrow Agreement shall be resoled by
arbitration under the Commercial Rules of the American Arbitration Association
as provided in Section of the Agreement. Any court having jurisdiction over the
matter may enter judgment on the award of the arbitrator(s). Service of a
petition to confirm the arbitration award may be made by First Class mail or by
commercial express mail, to the attorney for the party or, if unrepresented, to
the party at the last known business address,.

6.

In
the event of the nonpayment of fees owed to Escrow Agent, Escrow Agent shall
provide written notice of delinquency to the parties to this Agreement affected
by such delinquency. Any such party shall have the right to make the payment to
Escrow Agent to cure the default. If the past due payment is not received. in
full by Escrow Agent within one (1) month of the date of such notice, then at
any time thereafter Escrow Agent shall have the right to terminate this
Agreement to the extent it relates to the delinquent party by sending written
notice of termination to such affected parties. Escrow Agent shall have no
obligation to take any action under this Agreement so long as any payment due to
Escrow Agent remains unpaid.

7.

Upon
termination of this Agreement by joint instruction of Supplier and SBC, Escrow
Agent shall destroy, return, or otherwise deliver the Deposit Materials in
accordance with such instructions. Upon termination for nonpayment, Escrow Agent
may, at its sole discretion, destroy the Deposit Materials or return them to
Supplier. Escrow Agent shall have no obligation to return or destroy the Deposit
Materials lithe Deposit Materials are subject to another escrow agreement with
Escrow Agent.

8.

All
notices, invoices, payments, deposits and other documents and communications
shall be given to the parties at the address specified in Section _ of the
Agreement. It shall be the responsibility of the parties to notify each other as
provided in this Section in the even of a change of address.. The parties shall
have the right to rely on the last known address of the other parties. Unless
other wise provided in this Agreement, all documents and communications may be
delivered by First Class mail.

IN
WITNESS WHEREOF, the foregoing Agreement has been executed by authorized
representatives of the parties hereto, in duplicate, as of the date first set
forth above.

[Insert
Supplier Name]

SBC
Services, Inc.

By:________________________________
     By:_____________________________

 

Proprietary
Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated: companies and
their third
party representatives, except under written Agreement by the contracting
Parties.
44

Print
Name

Print
Name

Title

Date
Signed:

[Insert
Escrow.Agent Name

 By:

Print
Name

Title:

Date
Signed:

Proprietary Information

The information contained in this Agreement is not for use or
disclosure outside SBC, Supplier, their affiliated companies and
their third
party representatives, except under written Agreement by the contracting
Parties.
45

AMENDMENT NO.02
AGREEMENT NO. 02024517

This
Amendment, effective on the date when signed by the last Party ("Effective
Date"), and amending Agreement No.. 02024517, is. by and between Calibrus Inc.,
a Nevada corporation ("Supplier") and AT&T Services Inc.,. a Delaware
corporation ("AT&T"), each of which may be referred to in the singular as
"Party" or in the plural as "Parties,"

WITNESSETH

WHEREAS,
Supplier and AT&T entered into Agreement No. 02024517, on September 12,
2002, (the "Agreement"); and

WHEREAS,
Supplier and AT&T desire to amend the Agreement as hereinafter set
forth.

Now,
THEREFORE, in. consideration of the premises and the covenants hereinafter
contained, the Parties hereto agree as follows:

1.

Section
3.33 Term of Agreement Letter a. is hereby changed to read:

This
Agreement is effective on the date the last Party signs and, unless Terminated
or Canceled as provided in this Agreement, shall remain in effect for a term
ending on July 4, 2007. The Parties may extend the term of this Agreement by
mutual agreement in writing.

2.

Appendix
1.2 (2) Prices is .hereby changed to read:

Supplier
shall provide the Services, including any applicable deliverables, for the
following prices: A.

					
	
Monthly
Call Volume (note 1)
	
>
0
	
>250,000
	
>
500,000
	
>
750,000

	
<=
250,000
	
<=
500,000
	
<=
750,000
	
<= 1,000,000

	
Group
1 calls (note 2)

1
minute 30 seconds
	
$0.96
	
$0.94
	
$0.91
	
  $0.88.

	
1
minute 40 seconds
	
 $1.05
	
 $1..03
	
 $1.0.1
	
  $0.98.

	
1
minute 50 seconds
	
 $1.15
	
 $1..12
	
$1.09
	
 $1.07

	
2
minutes
	
 $1.17
	
 $1.17
	
 $1.1.5
	
  $1.12.

	
Group
2 calls (note 3)

1
minute 30 seconds
	
$0.99
	
$0.97
	
$0.94
	
$0.91

	
1
minute 40 seconds
	
$1.08
	
$1.06
	
$1.04
	
$1.01

	
1
minute 50 seconds
	
$1.18
	
$1.15
	
 $1.12
	
$1.10

	
2
minutes
	
$1.20
	
$1.20
	
$1.18
	
$1.15

	
Non-English
Non-Spanish calls (note 4)
	
 
	
 
	
 
	
 

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
AT&T, Supplier, their Affiliates and their third party
representatives,
except under written Agreement by the contracting Parties.

					
	
 
	
 
	
 
	
Amendment
02

Agreement
02024517

	
1
minute 30 seconds
	
$1.52
	
$1.60
	
$1.57
	
$1.55

	
1
minute 40 seconds
	
$1.74
	
$1.72
	
$1.69
	
$1.67

	
1
minute 50 seconds
	
$1.86
	
$1.84
	
$1.81
	
$1.79

	
2
minutes
	
   $1.98
	
$1.96
	
$1.93
	
$1.90

	
Conference
Call Back Calls (note 5)
	
$0.58
per minute live operator transfer time plus $0.068 per minute for the
entire conference time for all call volumes.

	
All
other calls (note 6)
	
.

1)
Monthly Call Volume Is determined by the sum of all calls in all categories and
calls from other Calibrus clients that use the same process as AT&T.

2)
Group 1 are live Operator calls in English and Spanish on behalf of AT&T,
AT&T Affiliates and Suppliers except LD Direct group 2 calls,

3)
Group 2 are live Operator calls in English and Spanish on behalf of AT&T LD
Direct, AT&T LD  Direct Affiliates and Suppliers.

4)
Non-English Non-Spanish calls are calls in Cantonese, Mandarin, Korean,
Japanese, Tagalong, Vietnamese, and Polish on behalf of AT&T, AT&T LD
Direct and their Affiliates and Suppliers.

5)
Conference Call Back calls are calls where the customer is transferred back-
to.AT&T, AT&T LD Direct, or their Affiliates. and Suppliers.

6)

The
pricing of all other calls will be defined in specific. work orders. Extended
length. live, operator calls that do not involve special long distance,
language, or infrastructure costs will be priced according to table B. Live
operator calls involving extra long distance, language, or other special cost
will be priced in a special work order.

						
	
B.
Extended Length Calls

Length
of Call (minutes)
	
1.5
	
1.6
	
1.7
	
1.8
	
1.9

	
"
Monthly Calls
	
Price
Per Call
	
Price
Per Call
	
Price
Per Call
	
Price
Per Call
	
Price Per Call

	
0-250,000
	
$0.93
	
$0.99
	
$1.05
	
$1.10
	
$1.16

	
250001-500000
	
$0.90
	
$0.97
	
$1.03
	
$1.08
	
$1.14

	
500001-750000
	
$0.88
	
$0.93
	
$0.99
	
$1.04
	
$1.10

	
Over
750000
	
$0.86
	
$0.92
	
$0.97
	
$1.03
	
$1.08

	
Length
of Call (minutes)
	
2
	
2.1
	
2.2
	
2.3
	
2.4

	
0.250,000
	
$1.21
	
$1.27
	
$1.32
	
$1.38
	
$1.44

	
250001-500000
	
$1.19
	
$1.25
	
$1.30
	
$1.36
	
$1.42

	
500001-750000
	
$1.15
	
$1,21
	
$1.26
	
$1.32
	
$1.38

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
AT&T, Supplier, their Affiliates and their third party
representatives,
except under written Agreement by the contracting Parties.

						
	
 
	
 
	
 
	
 
	
Amendment
02

Agreement.
02024517

	
Over
750000
	
$1.14
	
$1.19
	
$1.25
	
$1.31
	
$1-.36

	
Length
of Call (minutes)
	
2.5
	
2.6
	
2.7
	
2.8
	
2.9

	
0-250,000
	
$1.49
	
$1.55
	
$1.60
	
$1.66
	
$1.71

	
250001-500000
	
$I.47
	
$1.53
	
$1.58
	
$1.64
	
$1.69

	
500001-750000
	
$1.43
	
$1.49
	
$1.54
	
$1.60
	
$1.65

	
Over
750000
	
   $1.42
	
   $1
$1.47
	
$1.53
	
$1.58
	
$1.64

	
Length
of Call. (minutes)
	
3
	
3,1
	
3.2
	
3.3
	
3.4

	
0-250,000
	
$1.77
	
$1.82
	
$1.88
	
$1.94
	
$1$1.99

	
250001-500000
	
$1.75
	
$1.80
	
$1.86
	
$1,92
	
$1.97

	
500001-750000
	
$1.71
	
$1.76.
	
$1.82
	
$1.88
	
$1.93

	
Over
750000
	
$1.70
	
$1.75
	
$1.81
	
$1.86
	
$1.92

	
Length
of Call (minutes)
	
3.5
	
3.6
	
3.7
	
3.8
	
3.9

	
0-250,000
	
   $2.05
	
$2.10
	
$2.16
	
$221
	
$2.27

	
250001-500000
	
$2:03
	
$2.08
	
$2.14
	
$2.19
	
$2.25

	
500001-750000
	
   $1.99
	
$2.04
	
$2.10
	
$2.15
	
$2.21

	
Over
750000
	
   $1.97
	
$2.03
	
$2.09
	
$2,14
	
$2.20

	
Length
of Call (minutes)
	
4
	
4..1
	
4.2.
	
4.3
	
4.4

	
0-250,000
	
$2.33
	
$2.38
	
$2.44
	
$2.49
	
$2.55

	
250001-500000
	
$2.31
	
$2.36
	
$2.42
	
$2.47
	
$2.53

	
500001-750000
	
$2.27
	
$2.32
	
$2.38
	
$2.43
	
$2.49

	
Over
750000
	
$2.25
	
$2.31
	
$2.36
	
$2.42
	
$2.47

	
Length
of Call (minutes)
	
4:5
	
4,6
	
4.7
	
4.8
	
4.9

	
0-250,000
	
$2.60
	
$2.66
	
$2.71
	
$2.77
	
$2.83

	
250001-500000
	
$2.58
	
$2;64
	
$2.69
	
$2.75
	
$2.81

	
500001-750000
	
$2.54
	
$2.60
	
$2.65
	
$2.71
	
$2.77

	
Over
750000
	
$2.53
	
$2.59
	
$2.64
	
$2.70
	
$2.75

	
Length
of Call (minutes)
	
5.0
	
5.1
	
5.2
	
5.3
	
5.4

	
0-250,000
	
   $2.88
	
  $2$2.94
	
$2.99
	
$3.05
	
$3.10

	
250001-500000
	
$2:86
	
$2.92
	
$2.97
	
$3,03
	
$3.08

	
500001-750000
	
   $2.82
	
$2.88
	
$2.93
	
$2.99
	
$3$2.04

	
Over
750000
	
   $2.81
	
$2.86
	
$2.92
	
$2.98
	
$3.03

	
Length
of Call (minutes)
	
5.4
	
5.5
	
5.6
	
5.7
	
5.8

	
0-250,000
	
$3.16
	
$3.22
	
$3.27
	
$3.33
	
$3.38

	
250001-500000
	
$3.14
	
$3.20
	
$3.25
	
$3.31
	
$3.36

	
500001-750000
	
$3.10
	
$3.16
	
$3.21
	
$3.27
	
$3.32

	
Over
750000
	
$3.09
	
$3.14
	
$3.20
	
$3.25
	
83.31.

	
Length
of Call (minutes)
	
5.9
	
6.0
	
6.1
	
6.2
	
6.3

	
0-250,000
	
   $3.44
	
  $3
$3.49
	
$3.55
	
$3.60
	
$3$3.66

	
250001-500000
	
$3:42
	
$3.47
	
$3$
3.53
	
$3.58
	
$3.64

	
500001-750000
	
   $3.38
	
$3.43
	
$3.49
	
$3.54
	
$3.60

	
Over
750000
	
   $3.36
	
$3.42
	
$3.48
	
$3.53
	
$3.59

Proprietary Information
The
information contained in this Agreements not for use or disclosure outside
AT&T, Supplier, their Affiliates and their third party
representatives,
except under written Agreement by the contracting Parties.

						
	
 
	
 
	
 
	
 
	
Amendment 02

Agreement 02024517

	
Length.
of Call (minutes)
	
6.4
	
6,5
	
6.6
	
6.7
	
6.8

	
0-250,000
	
$3.72
	
$3.77
	
$3.83
	
$3.88
	
$3.94

	
250001.500000
	
$3.70
	
$3.75
	
$3.81
	
$3.86
	
$3.92

	
500001-750000
	
$3.66
	
$3.71
	
$3.77
	
$3.82
	
$3.88

	
Over
750000
	
$3.64
	
$3.70
	
$3.75
	
$3.81
	
$3.87

3.

Appendix
1.2 (3) Specifications/Requirements is hereby changed to include:

Supplier
will, achieve an Average Seconds to Answer ("ASA") of five (5) seconds measured
on a monthly basis. If Supplier does not meet the ASA for the given month
AT&T will receive a one percent (1%) credit towards that month's invoice.
For each subsequent month that the ASA is not met AT&T will receive an
additional one percent (1%) credit on that month's invoice, The total monthly
credit shall not exceed twelve percent (12%) at any time. The monthly credit
will reset back to zero (0) when the ASA is met for any given month.

Upon
written notice to AT&T, Supplier may stop handling calls from third parties
to AT&T under this Agreement if the third party in question has not paid all
applicable charges due to Supplier within ninety (90) days of the date of
invoice,

The terms and
conditions of Agreement No. 02024517 in all other respects remain .unmodified
and in full force and effect.

IN WITNESS WHEREOF, the Parties have caused this Amendment to
Agreement No. 02024517 to be executed, which may be in duplicate counterparts,
each of which will be deemed to be an original instrument, as of the-date-the
last Party signs.

Calibrus
Inc.

AT&T
Services Inc.

By:
/s/ Thomas Hofer

By:
 /s/ Todd Weiss

    

Printed
Name:  Tomas Hofer

Printed
Name: Todd Weiss

Title:
 Managing Director

Title:
 Sr. Contract Manager

Date:
 07/17/06

Date:
 7-21-06  

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
AT&T Supplier, their Affiliates and their third party
representatives,
except under written Agreement by the contracting Parties.

AMENDMENT NO.02
AGREEMENT NO. 02024517

This
Amendment, effective on the date when signed by the last Party ("Effective
Date"), and amending Agreement No. 02024517, is by and between Calibrus Inc., a
Nevada corporation ("Supplier") and SBC Services Inc., a Delaware corporation
("SBC"), each of which may be referred to in the singular as "Party" or in the
plural as "Parties,"

WITNESSETH

WHEREAS,
Supplier and SBC entered into Agreement: No..02024517, on September.
12, 2002, (the. "Agreement"); and.

WHEREAS,
Supplier and SBC desire to amend the Agreement as hereinafter set forth.

Now,
THEREFORE, in consideration of the premises and the covenants hereinafter
contained, the Parties hereto agree as follows:

1.

Section
2.13 "Order" is hereby changed to read:

"Order"
means such purchase orders, work orders, forms, memoranda or other written
communications as may be delivered to Supplier in the form set forth in Appendix
3,35 for the purpose of ordering Services hereunder.

2.

Section
3.2 Amendment and Waivers is hereby changed to read:

This
Agreement and any Orders placed hereunder may be amended or modified only
through a subsequent written document signed by the Parties; provided that SBC
may, at any time, make changes to the scope of Work through an amended or new
Order accepted by Supplier. Supplier shall not unreasonably withhold consent on
such issues. An equitable adjustment shall be made if such change substantially
affects the time of performance or the cost of the Work to be performed under
this Agreement. Such cost adjustment shall be made on the basis of the actual
cost of the Work, unless otherwise agreed in writing. No course of dealing or
failure of either Party to strictly enforce any term, right or condition of this
Agreement shall be construed as a general waiver or relinquishment of such term,
right or condition. A waiver by either Party of any default shall not be deemed
a waiver of any other default.

3.

Section
3.3- Assignment is hereby changed to read:

Neither
Party may assign, delegate, subcontract or otherwise transfer its rights or
obligations under this Agreement, except with the prior written consent of the
other Party; provided, however, that SBC will have the right to assign this
Agreement to any Affiliate without securing the consent of Supplier provided
that such Affiliate assume all obligations of SBC under this Agreement..
Both

 

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties.

Amendment
02 Agreement 02024517

Parties
may assign their respective rights to receive money due hereunder. Any attempted
assignment or transfer not consented to in writing, except for an assignment to
receive money due hereunder, will be void. It is expressly agreed that any
assignment of money will be void if (i) the assignor fails to give the
non-assigning Party at least thirty (30) days prior written notice, or (ii) the
assignment imposes or attempts to impose upon the non-assigning Party additional
costs or obligations in addition to the payment of such money, or (iii) the
assignment attempts to preclude SBC from dealing solely and directly with
Supplier in all matters pertaining to this Agreement, or (iv) the assignment
denies, alters or attempts to alter any of the non-assigning Party's rights
hereunder,

4.

Section
3.4 Cancellation and Termination Letter a. Number 2. hall now read:

If
Supplier is the party in default, SBC may Cancel any Orders which may be
affected by Supplier's default without any financial obligation or liability on
the part of SBC whatsoever, except to pay for the value of any Materials and/or
Services retained by SBC. Supplier shall also promptly refund amounts, if any,
previously paid by SBC for such Material and/or Services. Upon removal and
restoration and SBC's receipt of any such reimbursement and refund, title to any
such Materials, which had previously passed to SEC, shall revert to
Supplier.

5.
         Section 3.4
Cancellation and Termination Letter b.. is hereby changed to read:

SBC
may Terminate this Agreement or any Order in whole or in part, at any time, upon
90 days written notice to Supplier. In such event, or if Supplier Cancels this
Agreement or Order as a result of SBC's failure to cure a material
default under section 3.4(a), SBC shall pay Supplier its actual and direct costs
incurred to provide the Materials and Services ordered by SBC but no more than a
percentage of the Services performed or Materials Delivered, less
reimbursements, including salvage or resale value, of Materials or Services
affected. If requested, Supplier agrees to substantiate such costs with proof
satisfactory to SBC. In no event shall SBC's liability exceed the price of any
Materials or Services Ordered hereunder, provided that SBC shall have no
liability for Materials not specially manufactured for SBC pursuant to any Order
which is Terminated at least thirty (30) days prior to the Delivery Date. After
the receipt of SBC's payment for any Services, Supplier shall deliver the
physical embodiments, if any, of such Services. The foregoing statement of SBC's
liability states the entire liability of SBC and Supplier's sole remedy for
SBC's Termination for convenience, or Supplier's Cancellation for material
default,

6.

Section
3.5 Compliance with Laws is hereby changed to read:

Supplier
and SBC shall comply with all applicable federal, state, county, and local
rules, including, without limitation, all statutes, laws, ordinances,
regulations and codes ("Laws"). Supplier's obligation to comply with all Laws
includes the procurement of permits, certificates, approvals, inspections and
licenses, when needed, in the performance of this Agreement. Supplier further
agrees to comply with all applicable Executive and Federal regulations as set
forth in "Executive Orders and Federal Regulations," a copy of which is attached
as Appendix 3.5 and by this reference made a part of this Agreement. Each Party
shall defend, indemnify and hold the other Party harmless

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties.

from
and against any Liability that may be sustained by reason of the other Party's
failure to comply with this Section.

7.

Section
3.9 Delivery , Performance and Acceptance is hereby changed to read:

Services
performed by Supplier shall be deemed to be Accepted by SBC when Services are
performed to SEC's satisfaction. Payments, including progress payments, if any,
shall not be construed as Acceptance of Services performed up to the time of
such payments. SBC shall notify Supplier in writing of any Services it considers
to be unsatisfactory.. Supplies: shall, at no charge to SBC, take prompt action
to correct such unsatisfactory Services. If such unsatisfactory Services have
not been corrected within a reasonable time (not to exceed ten (10) working days
from date of notification), SBC may, in addition to all other rights and
remedies provided by law or this Agreement, Cancel this Agreement and/or any
affected Order.

8.

Section
3.13 Indemnity, Letter a. sentence (iii) is hereby changed to read: SUPPLIER'S
FAILURE TO COMPLY WITH ALL APPLICABLE LAWS, AND

9.

Section
3,13 Indemnity Letter b. is herby changed to read:

IT
IS THE INTENT OF THE PARTIES THAT THIS INDEMNITY APPLY REGARDLESS OF WHETHER OR
NOT SUCH-LIABILITY WAS CAUSED IN PART BY SBC'S-OWN NEGLIGENCE OR.
THAT OF THE OTHER PARTIES INDEMNIFIED UNDER THIS SECTION,. EXCLUDING ONLY
ANY.LIABILITY ARISING FROM THE NEGLIGENCE OF SBC AND EXCLUDING ANY SBC LIABILITY
ARISING FROM ANY ORDER DEFINITION OR SCRIPTING RELATING TO THE TPV.PROCESS.
THIS: INDEMNITY SHALL. SURVIVE THE DELIVERY, INSPECTION AND.ACCEPTANCE OF THE
MATERIAL OR SERVICES.

10.

Section
3.13 Indemnity add the following language:

g.

EXCEPT
FOR TFTE THIRD PARTY LIABILITY AND CONFIDENTIALITY PROVISIONS SET FORTH
HEREIN, IN NO. EVENT WILL A PARTY'S LIABILITY FOR INDEMNIFICATION UNDER THIS
AGREEMENT EXCEED THE AMOUNTS SUCH PARTY HAS BEEN PAID UNDER THIS AGREEMENT..

h.

EXCEPT
FOR THE THIRD PARTY LIABILITY PROVISIONS SET FORTH HEREIN, IN NO EVENT MAY A
PARTY MAKE A CLAIM FOR INDEMNIFICATION UNDER THIS. AGREEMENT' AFTER THE SECOND
ANNIVERSARY OF THE TERMINATION OF THIS AGREEMENT.

11.

Section
3.14. Information Letter a Number 1. is hereby changed to read:

Any
Information furnished to Supplier in connection with this Agreement, including
Information provided under a separate Non-Disclosure prior to executing this
Agreement, shall remain SEC's property. Unless such Information was previously
known to Supplier free of any obligation to keep it confidential, or has been or
is subsequently made public by SBC or a third. party, without violating

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
S.BC, supplier, their Affiliates and their third party
representatives,
except. under written Agreement by the contracting Parties.

Amendment
02 Agreement 02024517

a
confidentiality obligation, it shall be kept confidential by Supplier, shall be
used only in performing under this Agreement, and may not. be used for other
purposes, except as may be agreed upon between Supplier and SBC in writing.
Supplier is granted no rights or license to such Information other than to use
such information in accordance with this agreement. All copies of such
Information, in written, graphic or other tangible form, shall be returned to
SBC upon the earlier of (i) SEC's request or (ii) upon Termination,
Cancellation, or expiration of this Agreement. All copies of such Information in
intangible form, such as electronic records, including electronic mail, shall be
destroyed upon the earlier of (i) SBC's request or (ii) upon Termination,
Cancellation, or expiration of this Agreement, and Supplier shall certify to SBC
the destruction of all intangible copies of such Information.

12.

Section
3.14 Information Letter b.. is hereby changed to read:

Any
Information furnished to SBC under this Agreement by Supplier shall remain
Supplier's property. No Information furnished by Supplier to SBC in connection
with this Agreement shall be considered to be confidential or proprietary unless
it is conspicuously marked as. such. If Supplier provides SBC with any
proprietary or confidential Information, which is conspicuously marked, SBC
shall use the same degree of care to prevent its disclosure to others as SBC
uses with respect to its own proprietary or confidential Information.
Notwithstanding the preceding sentences, no installation, operation, repair, or
maintenance Information of Supplier that pertain to the Material and Services
that are the subject of this Agreement shall be considered to be proprietary or
confidential, and SBC may disclose such Information to others for the purpose of
installing, operating, repairing, replacing, removing and maintaining the
Material for which it was initially furnished except as defined in section 4.9
source code. Upon the request of Supplier, SBC will promptly surrender all
confidential Information of Supplier and all copies of the same to Supplier,

13.

Section
3.17 Invoicing and Payment letter e. is hereby changed to read:

Supplier agrees to accept standard, commercial methods of payment
and evidence of payment obligation including, but not limited to, SBC's purchase
orders and electronic fund transfers in connection with the purchase of the
Material, and Services.

14.

Section.
3.19 Limitation of Liability is herby changed to read:

Neither
Party will be liable for consequential, incidental, special or punitive damages,
or for loss of revenue or profit in connection with the performance or failure
to perform this Agreement, regardless of whether such Liability arises from
breach of contract, tort or any other theory of Liability.

15.

Section
3,23 MBEIWBEIDVBE Cancellation Clause Letters a. and b. are changed to read:

Supplier
agrees that falsification or misrepresentation of, or failure to report a
disqualifying change in, the MBE/WBE/DVBE status of Supplier or any
subcontractor utilized by Supplier, or Supplier's failure to comply in good
faith with any MBE/WBE/DVBE utilization goals established by Supplier, or
Supplier's failure to cooperate in any investigation conducted by

Proprietary Information
The
information contained in this Agreement is not. for use or disclosure outside
SBC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties.

Amendment
02 Agreement 02024517

SBC,
or by SBC's agent, to determine Supplier's compliance with this section, will
constitute a material breach of this Agreement. In the event of any such breach,
SBC may, at its option, cancel ("Cancel") this Agreement upon thirty (30) days
notice. Supplier acknowledges and agrees that SBC's right to Cancel is absolute
and unconditional, and.' SBC shall not be. subject to Liability, nor shall
Supplier have any right to suit for damages as a result of such Cancellation. In
the event of such. cancellation, SBC shall pay Supplier in accordance with the
terms of Section 3.4.

b.

For
purchases under this Agreement by Pacific Bell, Pacific Bell Directory, Pacific
Bell Mobile Services, Pacific Bell Information Services, Pacific Bell
Communications, and any other entity operating principally in California
(collectively "California Affiliates"), Minority and Women Business Enterprises
(MBEs/WBEs) are defined as businesses which satisfy the requirements of
paragraph d. below and are certified as MBEs/WBEs by the California Public
Utilities Commission Clearinghouse ("CPUC-certified") or are certified as
MBEs/WBEs by a certifying agency recognized by SBC.

16

Section
'3-,.25-Notices. the SBC contact is hereby changed to :.

SBC
Services Inc.

2000
Ameritech Center Dr Loc 3A35A

Hoffman
Estates, IL 60196

Attn.:
Todd Weiss Phone: (847) 248-5854

Facsimile:
(847) 248-3725

17.

Section
3.26 Price Letter a, is hereby changed to read:

Services
shall be furnished by Supplier in accordance with the prices set forth in .
Appendix 1.2(2), attached hereto and made a part hereof, or pursuant to firm
prices which are quoted by Supplier for such Services, whichever price is lower.
The prices for all Services in individual Orders are subject to change only in
accordance with this Agreement, which changes must be in writing and signed by
both Parties. If Supplier at any time makes a general price decrease, Supplier
shall promptly notify SBC in writing and extend such decrease to SBC effective
on the date of such general price decrease. The prices in Appendix 1.2(2) are
not subject to increase during the Term of this Agreement,

18.

Section
3.27 Publicity is hereby changed to read:

Supplier
shall not use SBC's or its Affiliates' names or any language, pictures,
trademarks, service marks or symbols which could, in SBC's judgment, imply SEC's
or its Affiliates' identity or endorsement by S.BC, its Affiliates or any of its
employees in any (i) written, electronic or oral advertising or presentation or
(ii) brochure, newsletter, book, electronic database or other written matter of
whatever nature, without SBC's prior written consent (hereafter the terms in
subsections (i) and (ii) of this Section shall be collectively referred to as
"Publicity Matters"). Supplier will submit

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SEC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties.

Amendment
02 Agreement 02024517

to
SBC for written approval, prior to publication, all Publicity Matters that
mention or display SBC's or its Affiliates' names, trademarks or service marks,
or that contain any symbols, pictures or language from which a connection to
said names or marks may be inferred or implied. Supplier shall be permitted to
show this Agreement or disclose the contents of this Agreement to third parties
in connection with lines of credit and debt or equity financings upon written
approval by SBC.

19.

Section
3.28 Quality Assurance is herby changed to read:

Supplier
shall maintain and follow the quality assurance plan set forth below. The plan
shall: 1.

Identify
personnel that perform the quality activities

2.

Identify
the team responsible for quality performance

3.

Clearly
identify known and suspected error sources identified by the supplier and/or
SBC.

4.

Define
the format of a weekly quality report that will be sent to SBC. The report will
as a minimum contain:

The
number of verifications monitored for each category of known and suspected
errors.

The
number of quality problems found

iii.)

Actions
taken to maintain or improve quality

5..

Identify
SBC personnel that will receive the weekly quality report.

b.

If
SBC. reasonably determines that Supplier has issues relating to the quality of
its Services under this Agreement, SBC, at Supplier's expense, may
require improvement initiatives requiring the intervention of a third party
quality consultant for the purpose of auditing, tracking and reporting
performance and Material conformance with stated requirements. Both parties will
mutually agree upon which third party quality consultant will be selected.
Periodically as agreed, status of activities and initiatives shall be submitted
to both parties for review. Unresolved issues will be documented and reported
within both companies to the appropriate level of management responsible to
resolve the issue.

1.

When
source inspection is required, Supplier further agrees that it will, at SBC's
request

2.

Provide
SBC or SBC's agent, at no charge, access to Supplier's premises, test equipment,
facilities, data and specifications. Supplier will also provide personnel to
assist and sufficient working space to enable SBC or SBC's agent to perform said
source inspection and/or process surveillance and/or a review of Supplier's
quality program at Supplier's facilities.

 

Proprietary Information
The
information contained in this. Agreement is not for use or disclosure-outside
"SBC, Supplier, their Affiliates and their third party
representatives,
except under written Agreement by the contracting Parties..

 

c.

Both
parties hereby agree to participate in the Supplier Performance Program
(hereinafter "Program") described below. The Program is a program to assist
Supplier in self-identifying areas of deficiency that may develop in Supplier's
performance as it relates to fulfilling its obligations under this agreement.
Participation in or use of, the Program does not negate or diminish Supplier's
responsibilities as it relates to its requirements to perform its obligation as
defined elsewhere in this agreement nor does it negate diminish or waive SBC's
rights or remedies as defined elsewhere in this agreement. If there is a
conflict between the Program and other sections of this agreement the other
sections of the agreement shall control.

Supplier
hereby agrees to:

(i)

Monitor its performance relative to certain measurable performance
indices such as product performance, service performance, and on time delivery.
Performance measurements collected for the purposes of the Program (hereinafter
"Data") will be defined by SBC and communicated to Supplier from time to
time.

(ii)

Collect
and report to SBC the Data relating to Supplier's performance. The Data is to be
entered by Supplier in SBC's Supplier Website in a format that is designated by
SBC. Data will be collected and reported periodically.

(iii)

Conduct
a self-evaluation of its performance based on the analysis of the Data reported.
In those areas where Supplier's performance deviates from SBC's identified
acceptable performance levels, Supplier shall develop and submit specific
performance improvement plans to SBC detailing Supplier plans to correct such
deficiencies:

(iv)

Cooperate
fully with SBC's supplier performance management team to coordinate Supplier's
activities as they relate to the Program. This includes but is not limited to
participation in planning meetings, audits, feedback sessions, and issue
resolution.

2.

SBC
hereby agrees to:

(i)

Define
the Data requirements that Supplier will monitor and report.

"(ii)

Provide
Supplier with access to SBC's supplier website for the purposes of entering
Supplier's data.

(iii)
Generate Performance Reports summarizing the Data and provide Supplier with
periodic feedback evaluating of its performance. SBC's supplier performance
management team will assist Supplier in resolving any internal SBC issues that
may impact Supplier's performance.

d.

Nothing
contained in this Section, "Quality Assurance," will diminish Supplier's
obligation to deliver defect-free Material in conformance to Supplier's
warranty

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties,

 

obligations
under this agreement. SBC's purchase or license of any Material hereunder is
subject to SBC's inspection and acceptance after delivery thereof.

20.

Section
3.33 Term of Agreement Letter a. is hereby changed to read:

This
Agreement is effective on the date the last Party signs and, unless Terminated
or Canceled as provided in this Agreement, shall remain in effect for a term.
ending on July 4, 2006. The Parties may extend the term of this Agreement by
mutual agreement in writing.

21.

Section
3.35 Work Orders, .shall now read:

a.

SBC may order Material and Services by submitting Work Orders in
connection with this Agreement. SBC will submit Work Orders that are
substantially in the form of Appendix 3.35

b.

The
terms in this Agreement shall apply to Work Orders submitted in connection with
this Agreement, and preprinted terms on the back of any Order shall not
apply,

22.

Section
4.7 Key Personnel is hereby deleted in. it entirety.

23.

Section
4.& Source, Code Availability 'hereby Changed to read:

Supplier
shall copy all Software, including Documentation, onto a CD quarterly and
deliver the CD to SBC to be used by SBC if Supplier is unable to perform the
Service. SBC will only use the backup copies of Software and Documentation in
the event that Supplier is unable to provide the Service.

24.

Appendix
1.2 (2). Prices is hereby changed to read:

Supplier
shall provide the Services, including any applicable deliverables, for the
following prices: A.

Monthly
Call Volume (note 1)

\.

				
	
>
0

<=
250,000,
	
>
250,000

<=
500,000
	
>
500,000

<.-.4
750,000
	
> 750,000

<= 1,000,000

	
$0.90
	
$0.87
	
$0.85
	
$0.83

	
$0.93
	
$0.90
	
$0.88
	
$0.86

	
$1.59
	
$1.57
	
$1.54
	
$1.52

	
$0.00
	
$0.00
	
$0.00
	
0.00

not
negotiated     not negotiated
       not negotiated    not
negotiated

Conference
Call Back Calls (note 7 )

$0.58
per minute
li                                                         operator
transfer time plus $0.068 per minute for the entire conference time for all call
volumes.

Proprietary Information
Tile
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties.

 

All
other calls: (note 8)

1)
Monthly Call Volume is determined by the sum of all calls in all categories and
calls from other Calibrus clients that use the same process as SBC.

2)
Group 1 are live Operator calls in English and Spanish on behalf of SBC, SBC
Affiliates and Suppliers except LD Direct group 2 calls.

3)
Group 2 are live Operator calls in English and Spanish on behalf of SBC LD
Direct, SBC LD Direct Affiliates and Suppliers.

4)
Non-English Non-Spanish calls are calls in Cantonese, Mandarin,.
Korean,..Japanese, Tagalong,, Vietnamese, and Polish on behalf of SBC, SBC LD
Direct and their Affiliates and Suppliers.

5)
Downtime IVR calls are IVR TPVs that are conducted because the normal operation
of Calibrus' infrastructure is disrupted to the extent that live operator TPVs
could not be conducted.

6)
Discretionary IVR calls would be the use of I.VR When Calibrus infrastructure-
was able to process live operator TPVs..

7)
Conference. Call Back. calls are calls where the customer is. transferred back
to. SBC, SBG LD Direct, or their Affiliates and Suppliers.

8)
The pricing of all. other calls will-be defined in specific work orders.
Extended length live operator calls that. do not involve special. long distance,
language, or infrastructure costs will be priced. according to table,
B. Live operator calls involving extra long distance, language, or other special
cost will be priced in a special­work order.

						
	
B.
Extended Length Calls

Length
of Call (minutes)
	
.

1.5
	

      16
   
	
1.7
	
1.8
	
1..9

	
Monthly
Calls
	
Price
Per Call
	
Price
Per. Call
	
Price
Per Call
	
Price
Per Call
	
Price Per Call

	
0-250,000
	
$0.93
	
$0.99
	
$1.05
	
$1.10:
	
$1.16

	
.250001-500000
	
$0.90
	
$0.97
	
$1.03
	
$1.08
	
 $1.34

	
500001-750000.
	
$0.88
	
$0.93
	
$0.99
	
$1.04
	
 $1.10

	
Over
750000:
	
$0.86
	
$0.92
	
$0.97
	
$1.03
	
 $1.08

	
Length
of Call (minutes)
	
2
	
2,1
	
2.2
	
2.3
	
2.4

	
0-250,000
	
 $1.21
	
$1.27
	
 $1,32
	
$1.38
	
$1.44

	
250001-500000
	
  $1.19
	
$1.25
	
$1.30
	
$1.36
	
$1.42

	
500001-750000
	
      $1.15
	
$1.21
	
  $1:26
	
$1.32
	
$1.38

	
Over
750000
	
$1.14
	
$1.19
	
  $1.25
	
$131
	
$1.36

	
Length
of Call (minutes)
	
2.5
	
2.6
	
2.7
	
2.8
	
2.9

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SRC, Supplier, their Affiliates and their third party
representatives, except
under written Agreement by the contracting Parties.

						
	
 
	
 
	
 
	
 
	
Amendment
02

Agreement
02024517

	
0-250,000
	
$1.49
	
$1.55
	
$1.60
	
$1.66
	
$1.71

	
250001-500000
	
$1.47
	
$1.53
	
 $1.58
	
$1.64
	
$1.69

	
500001-750000
	
$1.43
	
$1.49
	
$1.54
	
$1.60
	
$1.65

	
Over
750000
	
$1.42
	
$1.47
	
$1.53
	
$1.58
	
$1.64

	
Length
of Call. (minutes)
	
3
	
3.1
	
3.2
	
3.3
	
3.4

	
0-250,000:
	
$1.77
	
$1.82
	
$1.88
	
$1.94
	
$1.99

	
250001-500000
	
$1.75
	
$1.80
	
  $1,86
	
$1.92
	
$1.97

	
500001-750000
	
    $1.71
	
$1.76
	
$1.82
	
$1.88
	
  $1.93

	
Over
750000
	
    $1.70
	
$1.75
	
$1.81
	
$1.86
	
$1.92

	
Length.
of Call (minutes)
	
3.5
	
3.6
	
3,7
	
3.8
	
3.9

	
0-250,000
	
$2:05
	
$2.10
	
$2.16
	
$2.2.1
	
$2.27

	
250001-500000
	
$2.03
	
$2.08
	
$2.14
	
$2.19
	
$2.25

	
500001-750000
	
$1.99
	
$2.04
	
$2.10
	
$2.15
	
$2.21

	
Over
750000
	
$1.97
	
$2.03
	
$2.09
	
$2..14
	
$2.20

	
Length
of Call (minutes)
	
4
	
4.1
	
4.2
	
4.3
	
4.4

	
0-250,000
	
$2.33
	
$2.38
	
$2.44
	
$2.49
	
$2.55

	
250001-500000
	
$2:31
	
$2.36
	
$2.42
	
$2.47
	
$2.53

	
500001-750000
	
$2.27
	
$2.32
	
$2.38
	
$2.43
	
$2.49

	
Over
750000
	
$2.25
	
$2.31
	
$2.36
	
$2.42
	
$2.47

	
Length
of Call (minutes)
	
4.5
	
4.6
	
4.7
	
4.8
	
4.9

	
0.250,000
	
$2.60
	
$2.66
	
$2.71
	
$2.77
	
$2.83

	
250001-500000
	
$2.58
	
$2.64
	
 $169
	
$2.75
	
 $2.81

	
.500001-750000
	
$2.54
	
$2.60
	
$2.65
	
$2.71
	
$2.77

	
Over
750000
	
$2.53
	
$2.59
	
$2.64
	
$2.70
	
  $2.75

	
Length
of Call (minutes)
	
5.0
	
5.1
	
5.2
	
5.3
	
5.4

	
0-250,000
	
$2.88
	
$2.94
	
$2.99
	
$3.05
	
$3.10

	
250001-500000
	
$2.86
	
$2.92
	
$2.97
	
$3.03
	
$3.08

	
500001-750000
	
$2.82
	
$2.88
	
$2.93
	
$2.99
	
$3.04

	
Over
750000
	
$2.81
	
$2.86
	
$2.92
	
$2.98
	
$3.03

	
Length
of Call (minutes)
	
5.4
	
5.5
	
5.6
	
5.7
	
5.8

	
0-250,000
	
$3.16
	
$3.22
	
$3.27
	
$3.33
	
$3.38

	
250001-500000
	
$3.14
	
$3.20
	
$3.25
	
$3.31
	
$3.36

	
500001-750000
	
$3.10
	
$3.16
	
$3.21
	
$3.27
	
$3.32

	
Over
750000
	
$3.09
	
$3.14
	
$3.20
	
$3.25
	
$3.31

	
Length
of Call (minutes)
	
5.9
	
6.0
	
6.1
	
-6.2
	
6.3

	
0-250,000
	
$3.44
	
$3.49
	
$3.55
	
$3.60
	
$3.66

	
.250001-500000
	
 $3.42
	
$3.47
	
$3.53
	
$3.58
	
$3.64

	
500001-750000
	
$3..38.
	
$3.43
	
$3.49
	
$3:54
	
    $3.60

	
Over
750000
	
$3.36
	
$3.42
	
$3.48
	
$3.53
	
   $3.59

	
Length
of Call (minutes)
	
6.4
	
6.5
	
6.6
	
.6.7
	
6.8

	
0-250,000
	
$3.72
	
$3.77
	
$3.83
	
$3.88
	
$3.94

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
SBC, Supplier,. their Affiliates and their third party
representatives,
except under written Agreement by the contracting Parties.

						
	
 
	
 
	
 
	
 
	
Amendment 02

Agreement 02024517

	
250001-500000
	
$3.70
	
$3.75
	
$3.81
	
$3.86
	
$3.92

	
500001-750000
	
$3.66
	
$3.71
	
$3.77
	
$3;82
	
$3.88

	
Over
750000
	
$3.64
	
$330
	
$3.75
	
$3.81
	
$3.87

The terms and conditions of Agreement No. 02024517 in all other
respects remain unmodified and in full force and effect.

IN WITNESS WHEREOF, the Parties have caused this Amendment to
Agreement No. 02024517 to be executed, which may be in duplicate counterparts,
each of which will be deemed to be an original instrument, as of the date the
last Party signs.

Calibrus
Inc..

By:
/s/ David H Biggs

Printed
Name:  David H Biggs

Title:
 CEO

Date:
 28 May 2004

SBC
Services Inc.

By:
/s/ Todd Weiss

Printed
Name: Todd Weiss

Title
 Senior Contract Manager

Date:
5-27-2004

Proprietary Information
The
information contained in this Agreement is not for use or disclosure outside
$BC, Supplier, their Affiliates and their third party
representatives, except
underwritten Agreement by the contracting Parties.

AGREEMENT NO. 02024517.A,003

This
Amendment, effective an the date when signed by the last Party ("Effective
Date"), and amending Agreement No, 02024517, is byand between Calibrus  a
Nevada corporation

("Supplier")
and AT&T Services

a
Delaware corporation ("AT&T"), each of which. may be referred to
in the singular as "Party" or in the plural as "Parties.."

WITNESSETH

WHEREAS,
Supplier and AT&T entered into .Agreement No. 02.0245.17, on
September 1.2, 2002,. (the "Agreement"); and.

WHEREAS,.
Supplier and AT&T desire to amend the Agreement as .hereinafter set
forth.

Now,
THEREFORE, consideration of mutual promises and covenants erein., the Parties
hereby agree the purpose of this Amendment is to extend the term of the
Agreement NO.. 02024517.. Further,. both Parties agree as follows:

.

Section
3,33 Term of Agreement Letter is hereby changed to read:

This Agreement is effective on the date the last Party signs and,
unless Terminated. or Canceled as provided in this Agreement, shall remain iii
effect for a terra ending on September 30, 2007. The Parties may extend the
terra of this' Agreement by mutual agreement in writing..

2.

Appendix
1.2 (2) Prices is hereby changed to read:

									
	
WILD
Group One Calls

1.50
to 1.58 to: 1.67 to 1.75 to 1.83 
	
 
	
.1.92
to 2.00 to.2.08 to 2.17 to2.25 to

	
750,000-1,000k.
	
 
	
$0.96
	
.

$1
..05
	
$1.09
	
$1.14
	
$1.19.$1.24
	
$1.29
	
$1.34

	
5001-.750k.

$0:93
	
$0.97
	
$1.02.

$1.06
	
$1.11
	
$Ie16.
	
$1.21

$I.26
	
$1.3.1
	
$1.3'6

	
250k.-500k

$094_
	
$0..98
	
$1.03

$I:07
	
,12
	
$1.1 7
	
..22.
	
$1.32
	
$1..37

	
0-250.,.k

$0.95
	
$0,99
	
$1.04

$1.08.
	
$1.13
	
 
	
$1..23

,$IeZS.
	
$1
..33.
	
:$1.38

2.33.
to 2.42 to. 2.50 to 2.58 to 2.67 to 2.75 to 2..83 to 2.92 to 3.00+

										
	
750kel,000k
	
$`1.39
	
$1.44
	
$1.48
	
$1,53
	
$1:58
	
$1.62
	
$1...67
	
 
	
-$1.78

	
500.k-750k
	
$1.41
	
$1..46
	
$1..50
	
$l
..55
	
$1.59
	
$1.64
	
$1.68
	
$_1
75
	
$1.80

	
250je-5001
	
$1.4 2
	
$1.47
	
$1.51
	
$1.56
	
$1
.. 60'
	
$1.65
	
$"1.:.69
	
$1,76
	
$'l,$.
1

	
0-250k
	
.$ IA.3
	
:$ L. 4:8-
	
52
	
$1,57
	
$1,61'.
	
$1.66
	
51
..70
	
$1.77
	
$
1. .82

All
Non English and Spanish. Calls;. $1.84 per minute

Conference
Call Back Calls: $0.58 per minute live operator transfer time plus $0:068. per
minute  for the entire conference time for all call volumes. (Cabanas is'
using LD at US point)

 

*Extended
Length Calls not included in Average Call Length Calculations (Electronic 3-way,
:TOTS, etc)

3.08
to 3.17 to 3.25 to 3.33 to .3,42-to 3.5 to 3,58 to 3.67 to 3.75 to
3.83 to 750k 1,000k $1.83 $1.88 $1.93 $1,98 $2.03 $2,08 $2.13 $2.18 $2.23
52.28

500k-750k

$
I.85 $1.90 $1:95 12.00 $2.05 $2.10 $2.1.5 $2.20 $2.25 $2.30

-2501:-500k

$1.86
$1..91 $1,96 $2.01 $2.06 $2.11 $2.16 $2.2:1 $2.26 .$2.31

0-250k.

$1.87
$1.92 $1.:97 $2.02 $2.07 $2.12 $2.17 $2.22 $2.27 $2.32.

3.92
to 4 to

4.08
to 4.17 to 4,25 to 4.33 to 4.42 to 4.50 to 4.58 to 4.67 to 750k-1,000k. $233
$2.38 $2:43 $2.48 $2.53 $2.58 .$2.63 $2.68 $2.73 $2.78,

500k-750k

$2.35
$2.40 $2.45 $2.50 $2,55 $2..60 $2.65 $2-.70 $2.75 $2.80

250k-500k

$2.36
$2.41 $2.46 $2.51 $2.56 $2.61 .$2,66 $2,71 $2.76 $2.81

0-250k.

$2.37
$2,42 $2.47 $2.52 $2;57 .$2.62 $2:67 $2.72 .$2.77 $2.82

4.75
to 4.83 to 4.92 to 5 to

5.08
to 5..1'7 to. 5.25 to 5.33 to 5.42 to 5.5 to '750k-1,000k $2.837
$2.88 $2.93 $2;98 $303 $3.08 $3:13 $3.18 $3.23 $3,28

500k-750k.

$2.85.
$2,90 $2.95 $300 $3.05 $3..10 $3,15_ $3.20 :$3.25 $3.30

250k-500k

$2.86
$2.91 $2,96 $3,01 $3.06 $3.11 $3.16 $3.21 :$3.26 $33,1

0-250k

$2..8.7
$2.92 $2..97 $3..02 $3.07 $3..12 $3,17 $3:22 $3..27- $3,32

1)

Group
1: are live agent calls in English and Spanish of behalf of AT&T, AT&T
.affiliates :and -Suppliers except LD Direct Group 2 calls or as
describe in note

2)

Group
2 are live agent calls in .English and Spanish on behalf of AT&T LD Direct,
AT&T LD Direct Affiliates and suppliers.

3.)
Non English and Non-Spanish calls in Cantonese, Mandarin,. Korean, Japanese„
Tagalog, Vietnamese; and Polish on. behalf of AT&T,. AT&T LD Direct,. or
their affiliates or suppliers.

4)
Conference Call Back calls are calls where the customer is transferred back to
AT&T, AT&T LD Direct, or their affiliates or suppliers..

5),
The pricing. of all other calls will be defined. in specific work orders.
Extended length. live operator calls that do not involve special long distance,
language, or infrastructure costs will be priced according to the extended call
length table. Live agent calls involving extra long distance, language, or other
special cost will be priced in a special work order.

Toll
Free Numbers (Any new toll free numbers requested)

$.15.00
per number

The
terms and conditions of Agreement No. 02024517 in all other respects remain
unmodified and in full force and. effect.

Proprietary Information.

The information. contained in this Agreement is not for use or
disclosure outside AT&T; Supplier, their Affiliates and.. their
third. party.
representatives, except under written Agreement by
the contracting Parties.

Agreement .020245

IN WITNESS WHEREOF, the Parties have caused this Amendment to
Agreement No. 02024517 to be executed, which may be in duplicate counterparts,
each of which will be deemed to be an original instrument, as of the date the
last Party signs.

Calibrus
Inc.

AT&T
Services Inc.

    
By: /s/ Greg W Holmes

   
By: /s/ Todd Weiss

    
Printed Name:  Greg W Holmes

   
Printed Name:  Todd Weiss

    
Title:  President   

   
Title:  Sr. Contracts Manager  

    
Date 7-2-07

                                                                           
Date:  6-29-07
                                                                                    

Proprietary Information
The
information contained in this. Agreement is- not use or disclosure
outside-AT&T, Supplier,. their Affiliates-and their third
party
representatives, except under written Agreement by the contracting
Parties.

AGREEMENT NO. 02.024517.A.004

This
Amendment, effective on the date when signed by the last Party ("Effective
Date"), and amending Agreement No. 02024517, is by and between Calibrus Inc., a
Nevada corporation ("Supplier") and AT&T Services Inc., a Delaware
corporation ("AT&T"), each of which may be referred to in the singular as
"Party" or in the plural as "Parties."

WITNESSETH

WHEREAS,
Supplier.and AT&T entered into Agreement. No. 02024517, on September 12,
2002, (the. "Agreement"); and

WHEREAS,
Supplier and AT&T desire to amend the Agreement as hereinafter set
forth.

Now,
THEREFORE,. in consideration of the premises and the covenants hereinafter
contained, the Parties hereto agree as follows:

1.

Section
3.33 Term of Agreement Letter a. is hereby changed to read:

This Agreement is effective on the date the last Party signs and,
unless Terminated or Canceled as provided in this Agreement, shall remain in
effect for a term ending on December 31, 2009. The Parties may extend the term
of this Agreement by mutual agreement in writing.

The
terms and conditions of Agreement No. 02024517 in all other respects remain
unmodified and in full force and effect,

IN WITNESS WHEREOF, the Parties have caused this Amendment to
Agreement No. 02024517 to be executed, which may be in duplicate counterparts,
each of which will be deemed to be an original instrument, as of the date the
last Party signs.

Calibrus Inc.  

AT&T Services Inc.
                                                                                      

    By:  /s/ Greg W. Holmes

By: /s/ Todd Weiss
                                                          

Printed Name:  Greg W. Holmes

Printed Name: Todd Weiss

     Title:  President

Title:  Senior Contract Mngr

     Date
8-14-2007                                                                  Date:
 8-17-07

Proprietary Information
The
information contained in this, Agreement is not for use or disclosure outside
AT&T, Supplier, their Affiliates and their third party
representatives,
except under written Agreement by the contracting, Parties.

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