Document:

US Internet Coloaction Services Agreement

 Exhibit 10.17 
  
 United States Internet Colocation Services Agreement 
  

	 	  	 	  	 
	

	 Varitek Industries Inc.
 16360 Park Ten Pl
  
 Houston, TX 77084
	  	 Varitek Industries Inc.
  
  

 Randy Bayne,
CEO
	  	
 Acceptance Date

	

		
	 MCI WorldCom—Official Use Only
  
	 	 
			
	 Corp ID:
	 	       Segment: HS	 	 
			
	 Contract: 404042-01
	 	 Billing Code: 021
	 	 
			
	 Sales Rep: Thomas Gatch (713) 888-7424
	 	 	 	 
	

  
 This United States Internet Coalition
Services Agreement (“Agreement”) is made by and between MCI WORLDCOM Communications, Inc., on behalf of itself and its affiliates and successors (together, “WorldCom”) and Varitek Industries Inc. (“Customer”). This
Agreement is binding only upon WorldCom’s acceptance of this Agreement. WorldCom’s provisioning of the Service (as defined below) at a particular site or countersignature on this Agreement will constitute WorldCom’s acceptance of this
Agreement. WorldCom’s acceptance of this Agreement is subject to Customer meeting WorldCom’s standard credit requirements, which may be based on commercially available credit reviews (to which Customer hereby consents). This Agreement will
be of no force and effect, and the offer contained herein will be deemed withdrawn, unless this Agreement is executed by Customer and delivered to WorldCom by January 12, 2003. 
  
 1. SERVICES. 
  
 1.1. Subject to the terms and conditions set forth in this Agreement, WorldCom will provide to Customer the support, network connectivity, physical access and/or
additional services, including without limitation, hardware and software (individual and collectively, the “Service”) identified on the Service Order Form (“Service Order”), which is attached to this Agreement and incorporated
herein by reference. To order additional Service, Customer will complete and submit an additional Service Order to WorldCom’s designated point of contact. All Service Orders will be subject to the terms and conditions of this Agreement, will
refer to this Agreement, and will be signed by Customer. The submitted Service Order will constitute the binding commitment of Customer to purchase the Service described in the Service Order. WorldCom’s provisioning of the Service at a
particular site or countersignature on a Service Order will constitute WorldCom’s acceptance of the relevant Service Order. WorldCom may reject any additional Service Order submitted by Customer hereunder. 
  
 1.2. Each Service Order Identifies the physical location or date center
(“Facility”) in which equipment storage space (“Space”) will be made available to Customer for installation and use of Customer’s equipment (the “Equipment”). WorldCom reservices the right to modify the Service
from time to time; provided WorldCom will use commercially reasonable efforts to provide Customer with notice of modification to the Service. If WorldCom modifies the Service and such modification results in a material adverse effect on the
functionality of the Service, Customer may terminate the particular Service Order to which the modified Service pertains without penalty within 30 days following implementation of the change; provided that Customer notifies WorldCom of such material
adverse effect in writing and WorldCom fails to correct this adverse effect within 10 days fallowing WorldCom’s receipt of Customer’s notice. 
  
 1.3. Customer, not WorldCom, has sole and exclusive control over the content residing on the Equipment (the “Customer Content’”). The parties acknowledge
and agree that in the provision of Service hereunder WorldCom is not provided, either directly or indirectly, and will not seek access to, the Customer Content. WorldCom does not and will not exercise any control over the Customer Content.

  
 1.4. Customer will promptly and thoroughly respond to any notices that the
Customer Content violates the Digital Millennium Copyright Act, 17 U.S.C. § 101 et. seq. (the “DMCA”) or any other law, rule or regulation. 
  
 2. ACCEPTABLE USE. WorldCom exercises no control over, and accepts no responsibility for, the content of the information passing through WorldCom’s host computers,
network hubs and points of presence (the “WorldCom Network”). All use of the WorldCom Network and the Service must comply with the then-current version of the WorldCom Acceptable Use Policy (“Policy”), which is made a part of
this Agreement and is available at www.worldcom.com/terms or such other URL WorldCom as WorldCom may designate. WorldCom reserves the right to amend the Policy from time to time, effective upon posting of the revised Policy at the URL.

  
 3. DOMAIN NAMES AND INTERNET PROTOCOL NUMBERS. Customer warrants that any
domain name registered or administered on its behalf will not violate the trademark or other intellectual property rights of any third party and that Customer will comply with the rules and procedures of the applicable domain name registries,
registrars, or either authorities. Customer waives any claims against WorldCom that may arise in connection with the registration or administration of domain name(s). Any Internet Protocol numbers (“IP Numbers”) assigned to Customer by
WorldCom in connection with the Service will be used only in Connection with the Service. In the event Customer discontinues use of the Service for any reason, or this Agreement expires or is terminated for any reason, Customer’s right to use
the IP Numbers will terminate upon such discontinuation, expiration or termination. 
  
 4. PERMISSIBLE USE OF SPACE. 
  
 4.1. Customer will use the Space only
for the purposes of installing, marketing, and operating the Equipment. Access to the Facility is restricted to Customer’s employees and agents. Customer will furnish to WorldCom, and keep current, a written list identifying a maximum of 5
individuals authorized to obtain entry to the Facility and access the Space. Customer will exercise reasonable efforts to ensure that no individual it authorizes to enter the Facility will have been convicted of a felony. Customer assumes
responsibility for all acts and omissions of the individuals included on this list or authorized by Customer to enter the Facility. Customer’s employees and agents will comply with all applicable laws, rules, regulations, and ordinances; with
the standards and practices of the telecommunications industry; and with all WorldCom or Facility security procedures, rules, requirements, and 
  

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 United States Internet Colocation Services Agreement 
  
 safety practices (which include, but are not limited to, a prohibition against smoking in
the Facility), as amended from time to time. WorldCom reserves the right to revoke the entry privileges of any person at any time and for any reason. 
  
 4.2. WorldCom and its designees may observe the activities of Customer’s employees and agents in the Facility and may inspect at any time the Equipment brought into
or removed from the Facility, including the Space. Customer’s employees and agents will not use any products, tools, materials, or methods that in WorldCom’s reasonable judgment, might harm, endanger, or interfere with the WorldCom
Network, the Service, WorldCom’s provision of services to any either customer, the Facility, or the personnel or property of WorldCom, its vendors or its either customers. WorldCom may take any reasonable action to prevent such potential harm
or interference. 
  
 4.3. WorldCom will perform certain services that support the
overall operation of the Facility (e.g., janitorial services, environmental systems, and maintenance) at no additional charge to Customer. Customer will maintain the Space in an orderly manner and will be responsible for the prompt removal of all
trash, packing material, cartons, and either items or materials that Customer’s employees or agents bring into or deliver to the Facility. 
  
 4.4. Customer will not make this Space available to any either person or entity, excluding Customer’s employees and agents. 
  
 4.5. Upon the expiration or termination of a Service Order under which Space is made
available to Customer or the expiration or termination of this Agreement, Customer will surrender the applicable Space to WorldCom and, within 30 days after the date of such expiration or termination, return the Space to WorldCom in the same
condition as it was originally delivered to Customer, reasonable wear and tear excepted. Customer will remove the Equipment from the Space and the Facility and will fully repair any damage to the Facility caused by Customer, including, without
limitation, any damage resulting from Customer’s removal of the Equipment from the Space. Any Equipment and/or personal property of Customer not removed within 30 days after the date of expiration or termination of this Agreement will, at
WorldCom’s option, conclusively be deemed to have been abandoned by Customer. WorldCom may apportion, sell, use, more, destroy, or otherwise dispose of the Equipment of Customer’s personal property without notice or liability to Customer
or any either person or entity. Customer will pay an expenses and costs incurred in connection with WorldCom’s disposition of the Equipment and Customer’s personal property, including, without limitation, the cost of restoring the Facility
to its original condition and of removing the Equipment or Customer’s personal property from the Facility. 
  
 5. CONDUCT IN FACILITY. 
  
 5.1. Customer will maintain and operate the Equipment in a safe manner, and keep the Space and any portion of the Facility it accesses in good order and condition. Customer agrees to use the common areas of the
Facility only for the purposes for which they are intended. Customer’s employees and agents are prohibited from bringing any harmful or dangerous materials (as determined by WorldCom in its sole discretion) into the Facility. Such materials
include, but are not limited to, wet cell batteries, explosives, flammable liquids or gases, alcohol, controlled substances, weapons, cameras and video or voice recording devices. Customer agrees that its employees and agents will not harm or
attempt to breach the security of the Facility, the Service, or any third party system or network connected to the Facility or accessed by means of the Service. 
  

5.2. Customer agrees not to alter, tamper with, adjust, or repair any equipment or property not belonging to Customer. Customer further agrees not to erect signs or
devices on the exterior of the storage cabinet or to make any physical changes or material attentions to the Space or any portion of the Facility. 
  
 6. EQUIPMENT/SOFTWARE. 
  
 6.1. Customer may purchase Equipment from WorldCom pursuant to a Service Order. Customer hereby grants WorldCom a purchase money security interest in any Equipment purchased from WorldCom until payment of the purchase
price and related charges is made to WorldCom in full. Customer will execute and deliver to WorldCom in recordable form any financing statement or either document requested by WorldCom to perfect, or to establish and/or maintain the priority of,
WorldCom’s, its contractor’s or its assignee’s security interest in the Equipment, if any, created under this Agreement. Notwithstanding the foregoing, WorldCom will not be required to obtain Customer’s consent or authorization
to file any financing statement or either document needed to perfect, establish and/or maintain such security interest, and WorldCom reservices the right to file a financing statement or either document without Customer’s execution in
accordance with the terms of this Uniform Commercial Code based on Customer executing this Agreement or any either agreement between WorldCom and Customer. Title to the Equipment purchased hereunder will remain with WorldCom until payment in full of
all amounts due is received by WorldCom, at which time title will pass to Customer. WorldCom will bear the risk of loss or damage to the Equipment until shipment of the Equipment for delivery to Customer. Thereafter, Customer will assume the risk of
loss or damage to the Equipment. 
  
 6.2. All Equipment situated in the Facility
is hereby charged with a lien, charge, mortgage or encumbrance in favor of WorldCom to the extent of any unpaid fees plus interest thereon under this Agreement or any either agreement between WorldCom and Customer, and this Agreement will constitute
a security agreement in respect of such Equipment. 
  
 6.3. All Equipment must fit
within the Space. Unless otherwise provided in a Service Order, Customer agrees that power consumption will not exceed 30 amps 110 VAC per storage cabinet and that all Equipment is UL approved. Cabling used by Customer must meet national electrical
and fire standards and any specifications provided by WorldCom. Customer will be allowed to remove from the Facility only that Equipment in which Customer can evidence it has sufficient ownership or possessory interest. 
  
 6.4. A WorldCom reservices the right to relocate the Equipment within the Facility or to move
the Equipment to another facility with at least 90 days’ written notice; provided that WorldCom will not be required to provide Customer prior written notice of any Equipment relocation or move resulting from a force majeure event. Equipment
moved or relocated at WorldCom’s initiative will be at WorldCom’s expense. WorldCom will use commercially reasonable efforts to minimize downtime and service interruption in the event Equipment is moved or relocated. If WorldCom relocates
the Equipment to a new Facility and Customer objects to the location of such Facility, Customer may terminate the applicable Service Order without penalty within 30 days of receiving notice of the new Facility’s location. 
  
 6.5. Customer will immediately remove or render noninfringing, at Customer’s expense,
any Equipment alleged to infringe any patent, trademark. copyright, or either intellectual property right. 
  
 6.6. Customer will notify WorldCom immediately of any lien(s) on or security interest(s) in the Equipment. 
  

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 United States Internet Colocation Services Agreement 
  
 6.7. If WorldCom damages any Equipment, WorldCom will repair or replace the damaged item or,
at WorldCom’s option, will reimburse Customer for the reasonable cost of repair or replacement. 
  
 6.8. Software and related documentation provided by WorldCom to Customer in connection with the Services and not otherwise subject to either a separate written agreement executed between WorldCom and Customer or to an
accompanying shrink wrap license (collectively the “Software”) is subject to the following: 
  
 (a) In consideration for payment of any applicable fees, Customer is granted a personal non-exclusive, non-transferable license to use the Software, in object code form only, solely in connection with the Service for
Customer’s internal business purposes on Customer-owned or Customer-leased Equipment (the “License”), Customer shall not use the Software (i) in connection with the products and/or services of any third party, or (ii) to provide
services for the benefit of any third party, including without limitation as a service bureau. 
  
 (b) Customer my make one copy of the Software, either than the documentation, for archival or back-up purposes only, provided that any copyright and either proprietary rights notices are reproduced on such copy.
Customer shall not make any copies of documentation provided as part of the Software. 
  
 (c) Customer shall not: (i) attempt to reverse engineer, decompile, disassemble or otherwise translate or modify the Software in any manner; or (ii) sell, assign, license, sublicense or otherwise transfer, transmit or convey Software, or
any copies or modifications thereof, or any interest therein, to any third party. 
  
 (d) All rights in the Software, including without limitation any patents, copyrights and any either Intellectual property rights herein, shall remain the exclusive property of WorldCom and/or its licensors. Customer agrees that the Software
is the proprietary and confidential information of WorldCom and/or its licensors subject to the provisions of the Section of this Agreement entitled “Confidential Information”. 
  
 (e) Except to the extent otherwise expressly agreed by the parties in writing, WorldCom has no obligation to provide maintenance or
otherwise support of any kind for the Software, including without limitation any error corrections, updates, enhancements or either modifications. 
  
 (f) The License shall immediately terminate upon the earlier of: (i) termination or expiration of this Agreement; (ii) termination of the Service with which the Software
is intended for use; or (iii) failure of Customer to comply with any provisions of this Section). Upon termination of any License, at WorldCom’s option, Customer shall promptly either (i) destroy all copies of the Software in its possession, or
(ii) return all such copies to WorldCom, and in either event provide a written officer’s certification confirming the same. 
  
 7. INSURANCE. 
  
 7.1. During the term of this Agreement, Customer will maintain, at Customer’s expense, and will require its Subcontractors (if any) to maintain: (a) Commercial General Liability Insurance in an amount not less
than Two Million dollars ($2,000,000) per occurrence (or bodily injury, personal injury and property damage; (b) Employer’s Liability Insurance in an amount not less than One Million dollars ($1,000,000) per occurrence; (c) Workers’
Compensation Insurance in an amount not less than that prescribed by statutory limits; (d) Commercial Automobile Liability Insurance applicable to bodily injury and property damage, covering owned, non-owned, leased and hired vehicles, in an amount
not less than $1,000,000 per accident; and (e) Umbrella or Excess Liability Insurance with a combined single limit of no less than $1,000,000 to apply over Commercial General Liability, Employee’s Liability, and Automobile Liability Insurance.

  
 7.2. Prior to taking occupancy of the Space, Customer will furnish WorldCom
with certificates of insurance which evidence the minimum levels of insurance set forth herein and which name WorldCom as an additional Insured. The Commercial General Liability Insurance will contain the “Amendment of the Pollution
Exclusion” endorsement (or damage caused by heat, smoke or fumes from a hostile fire. In the event the Facility’s landlord requires additional insurance pursuant to a tease relevant to a particular Space, Customer hereby agrees to comply
with the landlord’s requirements under the lease, as the lease may be modified from time to time. 
  
 7.3. WorldCom will not insure or be responsible for any loss or damage to property of any kind owned or leased by Customer or by its employees and agents other than losses or damages resulting fro m WorldCom’s
negligence or willful misconduct. Any insurance policy covering the Equipment against loss or physical damage will provide that underwriters have given their permission to waive their rights of subrogation against WorldCom, the Facility’s
landlord, and their respective directors, officers and employees. 
  
 8. TERM AND
TERMINATION 
  
 8.1. The term of this Agreement Witt commence on the date this
Agreement is signed by both parties and will terminate on the termination or expiration of the last Service Order. The initial term of a Service Order will be for the period set forth on the Service Order (“Initial Service Term”),
commencing on the dale WorldCom is prepared to provide Customer with the Internet connectivity selected under such Service Order (the “Service Activation Date”). Unless otherwise provided in a Service Order, each Service Order will
automatically renew for consecutive two-month Service Terms upon the expiration of the Initial Service Term; provide” that neither party has delivered written notice of its intent to terminate the applicable Service at least sixty (60) days
prior to this and of the Initial Service Term. Once the Initial Service Term of a Service Order expires, either party may terminate that Service Order upon 60 days prior written notice. 
  
 8.2. Either party may terminate a Service Order and/or this Agreement for Cause. “Cause” means a breach by a party of any material
provision of this Agreement, provided that the non-breaching party gives written notice of the breach to the breaching party, and She breach has not been cured within 30 days after delivery of such notice. Notwithstanding the foregoing, when the
breach giving rise to Cause adversely affects only a portion of the Service or a Service Order, the party seeking to terminate for Cause will be entitled to terminate only the adversely affected Service or the applicable Service Order and not this
Agreement. 
  
 8.3. WorldCom may terminate this Agreement and/or any Service Order
immediately upon notice to Customer if: (a) Customer violates the Policy; (b) Customer makes the Space available to any either person or entity, excluding Customer’s employees and agents; or (c) the Service is resold or used by another
organization. 
  

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 United States Internet Colocation Services Agreement 
  
 8.4. WorldCom may terminals this Agreement or any applicable Service Order immediately upon
notice to Customer if (a) Customer fails, after WorldCom’s request, to provide a bond or security deposit; (b) Customer provides false Information to WorldCom regarding the Customer’s identity. creditworthiness, or its planned use of the
Service; (c) Interruption of Service is necessary to prevent or protect against fraud a otherwise protect WorldCom’s personnel, facilities or services; (d) Customer interferes with WorldCom’s provision of services to any other customer; or
(e) Customer fails to pay any invoice on lime as provided herein. WorldCom also may discontinue a Service and/or terminals any applicable Service Order upon written notice If WorldCom generally ceases to provide such Service on a commercial basis to
its customers. 
  
 8.5. If, prior to the expiration of the Initial Term, Customer
terminates this Agreement or any Service Order, or any position thereof, other than pursuant to Sections 8.2. of if WorldCom terminates this Agreement or any Service Order pursuant to Sections 8.2, 8.3 or 8.4, Customer will pay 100% of the Monthly
Charges for such month remaining in the initial Term of each applicable Service Order. 
  
 8.6. If Customer terminates this Agreement or any Service Order, or any portion thereof, (or any reason, such cancellation of Service will be effective 60 days after WorldCom receives Customer’s written notice of cancellation.

  
 9. PAYMENT/TAXES. 
  
 9.1. All charges are exclusive of APPLICABLE federal, state, local, and foreign sales, use,
excise, utility, gross receipts, value added, and other taxes: any tax imposed by an authority on this benefits of a promotion offered by WorldCom involving services or goods or be third party; tax-like charges to recover amounts WorldCom is
required or permitted by a governmental or quasi-governmental authority to collect from others or pay to others in support of statutory or regulatory funds or programs and other tax-like charges; and tax-related surcharges (collectively,
“Taxes”), which Customer agrees to pay. WorldCom reservices the right to elect to impose and collect Taxes, unless otherwise constrained by court order or direction. If WorldCom has collected Taxes and a challenged Tax is found to have
been invalid and unenforceable, and if the amounts collected were retained by WorldCom or deliver over to the jurisdiction and returned to WorldCom, WorldCom, in, its sole discretion, may reduce service rates for a fixed period of time in the future
in order to flow-through to Customer an amount equivalent to the amounts collected, credit or refund such amounts to Customer (less its reasonable administrative costs), or negotiate an arrangement with the jurisdiction to provide a future benefit
for Customer in that jurisdiction. If Customer provides WorldCom with a duly authorized exemption certificate, WorldCom will exempt Customer in accordance with law, effective on the date WorldCom receives the certificate Taxes based on
WorldCom’s net income will be WorldCom’s sole responsibility. If Customer does not give written notice to WorldCom of a dispute with respect to the application of Taxes within 6 months of the date of the invoice, the invoice will be deemed
to be correct and binding on Customer for all purposes. 
  
 9.2. Customer will pay
the rates and charges for the Service as set forth on the Service Order. Monthly Charges will begin accruing on the Service Activation Date applicable to each Service Order, unless Customer has not provided WorldCom with all information reasonably
requested by WorldCom for the provisioning of internet Connectivity under the Service Order. If Customer fails to provide WorldCom with such Information, Monthly Charges. will begin accruing on this thirtieth day following the date of
Customer’s execution of this Agreement or the applicable Service Order. Customer agrees to pay WorldCom for the Service within 30 days of invoice date. All payments must be made in U.S. Dollars, unless otherwise specified in the invoice.
Amounts not paid on or before 30 days from Invoice data will be considered past due, and Customer agrees to pay a late payment charge equal to the lessor of: (a) one and one-half portent (1.5%) per month, compounded; or (b) the maximum amount
allowed by applicable law, as applied against the past due amounts. Failure to remit payment within 30 days of invoice date may result in interruption or cancellation of the Services. If Customer’s financial condition is either unknown or
unacceptable to WorldCom, WorldCom may require Customer at any time to provide a security deposit upon WorldCom’s request. Such deposit must be paid in cash or the equivalent of cash in an amount equal to the applicable installation charges, if
any, and/or up to three (3) month’s actual or estimated usage charges for the Service. Customer also may be required at any time, whether before or after the commencement of Service, to provide such other assurances of, or security far, the
payment of charges for this Service as WorldCom may deem. necessary including, without limitation, advance payments for Service, third party guarantees of payment, pledges or either grants of security, interests in the customer’s assets, and
other similar arrangements. Any required deposit limits may be increased or reduced by WorldCom as a result of its experiences with Customer. In the case of a cash deposit, simple interest at the rate of six percent (6%) annually will be paid for
the period during which the deposit is held by WorldCom, unless a different rate has bean established by the appropriate legal authority in the jurisdiction in which Service is being provided. At WorldCom election, a deposit may be refunded by
crediting it against Customer’s account at. any time. Customer will be liable for the payment of all fees and expenses, including attorney’s fees, reasonably incurred in collecting, or attempting to edited any charges owed hereunder.

  
 10. INDEMNITY. 
  
 10.1. Customer and WorldCom agree to defend, indemnify, and hold each other harmless from and against any third party claims, suits, damages
and expenses asserted against or incurred by such party (“Indemnitee”) arising out of or relating to bodily Injury to or death of any person, or loss of or damage to real or tangible personal property or the environment, to the extent that
such claim, suit, damage, or expense was proximately caused by any negligent act or omission on the part of the party from whom indemnity is sought, its agents or employees (“Indemnifying Party”). The Indemnifying Party shall pay all
damages, settlements, expenses and costs, including coats of investigation, court costs and reasonable attorneys’ fees and costs (including allocable costs of in-house counsel) incurred by the Indemnitee in enforcing this Agreement. 

 
 10.2. In addition to the above, Customer agrees to defend, at its own expense, and
indemnify and hold harmless WorldCom and its subcontractors (collectively, the “WorldCom Indemnitees”), from and against any claims, suits, damages and expenses assorted against of incurred by any of the WorldCom Indemnitees arising out of
or relating to: (i) Customer’s acts, omissions, negligence and/or breach or its warranties or obligations hereunder, including, but not limited to Customer’s nonpayment for the Space or Service; (ii) Customer’s connection of the
Service to any third party service or network, including without limitation, damages resulting from unauthorized use of, or access to, the WorldCom Network by Customer or a third party; (iii) any third-party’s alleged ownership or possessory
Interest, lien, trust, pledge, or security interest in the Equipment, including, without limitation, any attempt by such third party to take possession of the Equipment; (iv) the dismissal, suspension, or termination of employment/work of any
Customer employee or agent; (v) the denial of any entry to the Facility of any employee or agent of Customer; and (vi) violation, misuse or misappropriation of the trademarks, copyrights, moral rights, trade secrets, or either proprietary rights or
intellectual property rights of WorldCom or of a third party (other than a claim based on an assertion by a third party that WorldCom does not own WorldCom service marks or trade marks). Notwithstanding any other provision of this Agreement,
Customer will pay all damages, settlements, expenses and costs, including costs of investigation, court costs and reasonable attorneys’ fees and costs (including allocable costs of in-house counsel) incurred by WorldCom Indemnitees as set forth
in this Section, including, without limitation, reasonable attorneys’ fees and costs incurred in enforcing this Agreement. 
  
 11. SERVICE LEVEL AGREEMENT. The Service Level Agreement (“SLA”) for the Service, which is made a part of this Agreement, is set forth at the following URL:
www.worldcom.correctterms/service_level_guarantee, or other URL designated by WorldCom, and applies only to Service provided under 
  

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 United States Internet Colocation Services Agreement 
  
 a Service Order with an Initial Term of at least one year. WorldCom reservices the right to
amend the SLA from time to time effective upon posting of the revised SLA to the URL; provided that WorldCom will use commercially reasonable efforts to notify Customer of amendments to the SLA. In the event of any amendment resulting in a material
reduction of the SLA’s service levels or credits, Customer may terminate the applicable Service Order without penalty by providing WorldCom written notice of termination during the 30 days following the posting of such amendment. The SLA sets
forth Customer’s sole and exclusive remedies for any claim relating to the Service or the WorldCom Network, including any failure to meet any guarantee set forth in the SLA, WorldCom’s records and data will be the basis for all SLA
calculations and determinations. Notwithstanding anything to the contrary, the maximum amount of credit in any calendar month under the SLA will not exceed the Monthly Charge and/or Initial Fee which, absent the credit, would have been charged for
the Service that month. 
  
 12. DISCLAIMER OF CERTAIN DAMAGES/LIMITATION OF
DAMAGES. 
  
 12.1. NEITHER PARTY WILL BE LIABLE TO THE EITHER FOR ANY INDIRECT,
CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF USE OR LOST BUSINESS, REVENUE PROFITS, OR GOODWILL, ARISING INCONNECTION WITH THIS AGREEMENT. THE SERVICE, RELATED PRODUCTS, DOCUMENTATION AND/OR
THE INTENDED USE THEREOF, UNDER ANY LEGAL THEORY OR CAUSE OF ACTION.(INCLUDING WITHOUT LIMITATION, TORT, CONTACT, WARRANTY, STRICT LIABILITY. OR A CLAIM UNDER ANY STATE OR FEDERAL STATUTE OR REGULATION), EVEN IF THE PARTY KNEW, OR SHOULD HAVE KNOWN
OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATION WILL NOT APPLY TO THE PARTIES’ OBLIGATES ARISING UNDER SECTION 10 OF THIS AGREEMENT. 
  
 12.2. THE TOTAL LIABILITY OF WORLDCOM TO CUSTOMER IN CONNECTION WITH THIS AGREEMENT WILL BE LIMITED TO THE LESSER OF: (A) DIRECT DAMAGES PROVEN BY CUSTOMER OR (B) THE
AGGREGATE AMOUNTS PAID BY CUSTOMER TO WORLDCOM UNDER THIS AGREEMENT FOR THE ONE (1) MONTHLY PERIOD PRIOR TO ACCRUAL OF SUCH CAUSE OF ACTION FOR THE SERVICE THAT FORMS THE BASIS FOR SUCH CAUSE OF ACTION. THE FOREGOING LIMITATION APPLIES TO ALL CAUSES
OF ACTIONS AND CLAIMS, INCLUDING WITHOUT LIMITATION BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATION AND OTHER TORTS, AND CLAIMS UNDER ANY FEDERAL OR STATE STATUTE OR REGULATION. NO CAUSE OF ACTION UNDER ANY
THEORY WHICH ACCRUED MORE THAN ONE (1) YEAR PRIOR TO THE INSTITUTION OF A LEGAL PROCEEDING ALLEGING SUCH CAUSE OF ACTION MAY BE ASSERTED BY EITHER PARTY AGAINST THE OTHER. NOTHING IN THIS SECTION WILL LIMIT WORLDCOM’S LIABILITY: (A) IN TORT FOR
ITS WILLFUL OR INTENTIONAL MISCONDUCT, (B) FOR BODILY INJURY OR DEATH, PROXIMATELY CAUSED BY WORLDCOM’S NEGLIGENCE, OR (C) LOSS OR DAMAGE TO REAL PROPERTY OR TANGIBLE PERSONAL PROPERTY PROXIMATELY CAUSED BY WORLDCOM’S NEGLIGENCE.

  
 13. NO WARRANTY. WORLDCOM PROVIDES THE SPACE AND THE SERVICE AS IS, EXCEPT AS
EXPRESSLY PROVIDED IN THE SECTION OF THIS AGREEMENT ENTITLED “SERVICE LEVEL AGREEMENT”. WORLDCOM MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO THE SERVICE, SPACE, FACILITY, RELATED PRODUCTS OR DOCUMENTATION. WORLDCOM SPECIFICALLY
DISCLAIMS ANY AND ALL IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE. TITLE OR NONINFRINGEMENT OF THIRD PARTY RIGHTS. WORLDCOM SPECIFICALLY DENIES ANY RESPONSIBILITY FOR
THE ACCURACY OR QUALITY OF INFORMATION OBTAINED THROUGH THE SERVICE OR THE WORLDCOM NETWORK THE USE OF CUSTOMER CONTENT OR INFORMATION OBTAINED VIA THE SERVICE IS AT CUSTOMER’S OWN RISK. 
  
 14. NO ESTATE OR PROPERTY INTEREST. Customer acknowledges that it has been granted only a
license to occupy designated portions of the Facility and that it has not been granted any real property interests in the Space or the Facility. Payments by Customer under this Agreement do not create or vest in Customer (or in any other entity or
person) any leasehold estate, easement, ownership interest, or other property right or interest of any nature in the Facility or any part thereof. The parties intend and agree that the Equipment, whether or not physically affixed to the Facility,
are not fixtures and will not be construed as such. Customer (or the lessor of the Equipment, if applicable) will report the Equipment as its personal property whereever required by applicable laws and will pay all taxes levied upon such Equipment.

  
 15. FORCE MAJEURE. 
  
 15.1. Any delay in of failure of performance by either party under this Agreement (other
than a failure to comply with payment obligations) will not be considered a breach of this Agreement if and to the extent caused by events beyond the reasonable control of the party affected, including, but not limited to, acts of God, embargoes,
governmental restrictions, strikes (other than those only affecting Customer), riots, insurrection, wars, or other military action, acts of terrorism, civil disorders, rebellion, fires, floods, vandalism, or sabotage. Market conditions and/or
fluctuations (including a downturn of Customer’s business) will not be deemed force majeure events. The party whose performance is affected by such events will promptly notify the other party, giving details of the force majeure circumstances,
and the obligations of the party giving such notice will be suspended to the extent caused by the force majeure so long as the force majeure continues. The time for performance of the affected obligation hereunder will be extended by the time of the
delay caused by the force majeure event. 
  
 15.2. If the Space is damaged due to
a force majeure event, WorldCom will give prompt notice to Customer of such damage, and may temporarily relocate the Equipment to new Space or a new Facility, If practicable. If the Facility’s landlord or WorldCom exercises an option to
terminate a particular tease due to damage or destruction of the Space, or if WorldCom decides not to rebuild the Space, the applicable Service Order will terminate as of the date of the force majeure event. Monthly Fees for Space and Service will
proportionately ebate for the period from the data of the force majeure event if neither the landlord of the Facility nor WorldCom exercises the right to terminate, WorldCom will repair the particular Space to substantially the same condition it was
a prior to the damage, completing the same with reasonable speed. In the event that WorldCom fails to complete the repair within a reasonable lime period, Customer will have the option to terminate the applicable Service Order with respect (o the
affected Space, which option will be the sole remedy available to Customer against WorldCom under this Agreement relating to such failure. If the Space or any portion thereof is rendered untenable by reason of such damage and the Equipment is not
relocated to a new Space or be new Facility, the Monthly Fee (or Space and Service will proportionately abate for the period from the date of such damage to the date when such damage is repaired. 
  
 16. CONFIDENTIAL INFORMATION. Each party will protect as confidential, and will not disclose
to any third party, any Confidential Information received from the disclosing party or otherwise discovered by the receiving party during the Term, including, but not limited to, the pricing and terms of this Agreement, and any Information relating
to the disclosing party’s technology, business affairs, and marketing or sales plans (collectively the “Confidential Information”). The parties will use Confidential Information only far the purpose of this Agreement. The foregoing
restrictions or, use and disclosure of Confidential Information do not apply to information that (a) is in the possession of the receiving party at the time of its disclosure and is riot otherwise subject to obligations of confidentiality, (b) is or
becomes publicly known, through no wrongful act or omission of the receiving party; (c) is 
  

 Page 5 of 14 

 United Stares Internet Colocation Services Agreement 
  
 received without restriction from a third party free to disclose it without obligation to the
disclosing party; (d) is developer independently by the receiving party without reference to the Confidential Information; or (e) is required to be disclosed by law, regulation, or court or governmental order. 
  

	1.	 	NO RESALE. The Service i provided to Customer’s organization only. Resale to or use by another organization is prohibited. 

  
 2. MISCELLANEOUS. WorldCom reserves the right to use subcontractors or any other third
parties to fulfill its obligations hereunder. Neither party will use the other party’s name, trademarks, tradenames, or either proprietary identifying symbols, or issue any press release or public statement relating to this Agreement without
the prior written permission of the either party; provided that WorldCom may, upon, written permission of the other party, provided that WorldCom may, upon written notice to Customer, reference Customer’s name in WorldCom press release, analyst
reports, or customer reference list. No failure on the part of either party to exercise, and no delay in exercising any right or remedy hereunder will operate as a waiver thereof, nor will nay single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof of the exercise of any other right or remedy granted herein. All notices hereunder will be in writing and either transmitted via facsimile, overnight courier, hand delivery or certified or
registered mail, postage prepaid and return receipt requested to the attention of the parties’ Legal Departments at the addresses set forth on the first page of this Agreement or to such other addresses as may be specified by written notice. In
addition, WorldCom may provide notice to Customer via Customer invoices or Inserts or via electronic mail at the E-mail address set fort on the first page of this Agreement. Notices will be deemed to have been given when received, or, if delivered
by certified or registered mail, five days after posting. This Agreement will be governed by the laws of the State of New York without regard to its choice of law rules. Neither party may assign this Agreement or any of its rights hereunder without
the prior written consent of the other party, which consent will not be unreasonably withheld, conditioned or delayed; provided that WorldCom may assign this Agreement or any of its rights hereunder to an affiliate or successor without
Customer’s written consent. All providers of this Agreement are severable, and the unenforceability or invalidity of any of the provisions will not affect the validity or enforceability of the remaining provisions. The remaining provisions will
be construed in such a manner as to carry out the full intention of the parties. The rights and responsibilities of the parties hereto under the provisions of Sections 4, 9, 10, 12, 13, 16 and 17 will survive expiration or earlier termination of
this Agreement along with any other provisions which by their nature extend beyond any such expiration or termination. This Agreement, including each Service Order accepted by WorldCom, sets forth the entire and exclusive agreement between the
parties, superseding all prior or contemporaneous representations, proposals, quotes, agreements or understandings concerning the subject matter addressed herein. Except as otherwise set forth herein, no amendment to this Agreement will be valid
unless in writing and signed by a authorized representatives of both parties. 
  
 ADDITIONAL ATTACHMENTS: This Agreement incorporates the following Attachment(s): 
 Attachment A—Customer Profile 
 Attachment B—Service Order Form 
  

 Page 6 of 14 

 United Stares Internet Colocation Services Agreement 
  
 Attachment A 
  
 Customer Profile 
 for Varitek Industries Inc. 
  
 MCI WorldCom Commercial Customer Profile 
  

	

	 Sales Information

	

	   Sales Rep./ARM Name
   Thomas Gatch
	  	 Sales Rep. ID
 452720343
	  	          ̈  East     ̈  National    East &
National/Telecom: 8929 N. Lakewood Ave., Tulsa, OK 74117 (913-598-8000)
          ̈  West    ̈  Agents      West & Agents: 28855 Stone Oak Parkway, San Antonio, TX 78258 (210-434-2454)

	

	 Applicant Information

	

	 Complete Company Name (if incorporated, name shown on corporate charter

Varitek Industries Inc.
	  	 	  	 	  	Taxpayer ID (Required)	  	Date Business Started
	

	 Main Business Phone Number
	  	 	  	Type of Business	  	 	  	 	  	 	  	 	  	 	  	State of Incorporation	  	Date of Incorporation
	

	 Street Address—Line 1
 16360 Park Ten Pl

	

	 Street Address—Line 2
	  	 	  	 City
 Houston
	  	 	  	 	  	 	  	 	  	 State
 TX
	  	 Zip + 4
 77084

	

	 Billing Address—Line 1

	

	 Billing Address—Line 2
	  	 	  	City	  	 	  	 	  	State	  	Zip + 4
	

	 Parent or Subsidiary Information

	

	 Check One
  ̈
Parent     ̈ Subsidiary
	  	Name of Business	  	 	  	 	  	 	  	 	  	 	  	 	  	State of Incorporation	  	Percentage Owned
	

	 Principal, Partner, and Major-Shareholder Information
                                        
                            List the complete names of all principals, partners, and major
shareholders.

	

	 Check One
	  	Name of Owner	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Social Security Number
	 	

	  ̈  Sole Proprietorship                          ̈  Partnership
	  	 Name of Partner 1
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Social Security Number
	 	

	  ̈  LLC
                                        
         ̈ LLP
	  	 Name of Partner 2
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Social Security Number
	 	

	  ̈  Private Corporation                          ̈  Public Corporation
	  	Name of Officer 1	  	 	  	 	  	 	  	 	  	 	  	Title
	 	

	 	  	 Name of Officer 2
	  	 	  	 	  	 	  	 	  	 	  	Title
	

	 References

	

	 Name of Bank
	  	 	  	Phone	  	 	  	 	  	 	  	 	  	 	  	Fax
	

	 Lending Officer
	  	 	  	Account Number	  	 
	

	 Previous or Existing Local Service Provider
	  	 	  	Previous or Existing Long-Distance Provider	  	 	  	 
	

	 General Trade References

	

	         Company
	  	 	  	Name of Contact	  	Phone	  	 	  	 	  	Fax
	

	 1
	  	 	  	 	  	 	  	 
	

	 2
	  	 	  	 	  	 	  	 
	

	 3
	  	 	  	 	  	 	  	 
	

	 Usage and Credit

	

	 Estimated Monthly Usage
 8000
	  	 	  	 Requested Credit Limit
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Application Tracking ID—   147785
	

	 Name of Person Providing Information
 Zane Russell
	  	 Title of Person Providing Information
 EVP
	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	

  

 Page 7 of 14 

 United States Internet Colocation Services Agreement 
  
 Attachment B 
  
 Service Order Form for 
 Varitek Industries Inc. 
  
 Internet Colocation Services 
  

	 Customer Name: Varitek Industries Inc.
	 	 	 	 
				
	 Facility Location (Choose One)
	 	  ̈ Ashburn, VA
  ̈ Carterel, NJ
 x Houston, TX
  ̈ Richardson, TX
  ̈ Chicago, IL
	 	  ̈ Atlanta, GA
  ̈ Denver, CO
  ̈ Los Angeles, CA
  ̈ San Jose, CA
	 	  ̈ Boston, MA
  ̈ Elmsford, NY
  ̈ Miami, FL
  ̈ Seattle, WA

				
	 Service Term Commitment1—
	 	x 1 year Term (15% discount)	 	 ̈ 2 year Term (20% discount)	 	 ̈ 3 year Term (25% discount)
	
	 Payment If purchase order is required, return PO with this form and provide PO#:
                    

				
	 Equipment Space Options2
	 	 	 	 	 	 
	  ̈ Standard Cabinet. Space3
  ̈ Half
Cabinet
  ̈
Standard Cabinet
  ̈ Large Cabinet
	 	 No. of Cabinets
                                      
                       
  
                              2         
                    
                                       
                      
	 	 Monthly Charge (each)
 $   575
 $1,150
 $1,700
	 	 Install Fee (each)
 $0

$0
 $0

			
	  ̈ Non-Standard Cabinet Space4
 Equivalent Number of Cabinets for the Space
                     
	 	 Monthly Charge (each)
 $1,500 (not
Discountable or Waivable)
	 	 Install Fee (each)
 $2,000 (Not
Discountable or Waivable)

			
	  ̈ Standard Open Cabinet Caged Space5
  ̈ 5 Cabinet
Cage
  ̈ 10
Cabinet Cage
  ̈ 17 Cabinet Cage
	 	 Monthly Charge (each)
 $  6,667
 $13,333
 $22,500
	 	 Install Fee (each)
 $0

$0
 $0

			
	  ̈ Standard Lockable Cabinet Caged Space6
  ̈ 5 Cabinet
Cage
  ̈ 10
Cabinet Cage
  ̈ 15 Cabinet Cage
  ̈ 20 Cabinet Cage
	 	 Monthly Charge (each)
 $  7,500
 $15,000
 $22,500
 $30,000
	 	 Install Fee (each)
 $0

$0
 $0
 $0

	1	 	Minimum one-year Service Term is required. If Customer fails to select a Service Term, a one-year Service Term will automatically apply. Upon the expiration of the initial Service
Term, this Service Order will automatically renew for consecutive two-month Service Terms, unless either party has delivered written notice of its intent to terminate this Service Order at least sixty (60) days prior to the end of the initial
Service Term. The Service Term discount will no longer apply upon the expiration of the initial Serve Term/ The Service Term discount is applicable only to Monthly Charges not identified as “Not Discountable”. 

	2	 	Standard 2 x 20 Amp 110 Voltpower will be provided with each Cabinet Space and with each Cabinet included in a.Caged Space. WorldCom also offers two monitoring options for this
notice. Both Ping and HTTP monitoring are provided for an unlimited number of Customer’s collocation IP addresses at no charge. To select a monitoring option and to add or remove IP addresses or URLs from ‘Ping or HTTP monitoring, please
go to http://uuhost.customer.DU.net, or such other URL as WorldCom may designate. 

	3	 	Customer may purchase up to three (3) half, standard or large Standard Cabinets for the first Mbps of Internet Connectivity (Tiered or Burstable), and one (1) additional Cabinet for
each additional Mbps of Internet Connectivity, purchased by Customer hereunder. 

	4	 	Non-Standard Cabinet Space is made available by WorldCom on a case-by-case basis to allow Customer to install Equipment in the Facility that does not fit into a standard size
Cabinet. Customer is responsible for providing any necessary cabinets at its sole cost and expenses. 

	5	 	Standard Open Cabinet Caged Space is provided with metal mesh walls that are bolted to the floor and ceiling of the Facility and accessible by a sliding door with a lock. Customer
will receive the noted number of Cabinets, and Customer must purchase minimum Internet Connectivity of 1 Mbps (Tiered or Burstable) for each Cabinet provided in the Caged Space. If Customer desires to provide its own cabinets, Customer must meet all
Facility and regulatory requirements and pay any costs associated with meeting such requirements. The installation service level guarantee set forth at www.WorldCom.com/terms does not apply to the Cages Space. 

	6	 	Standard Lockable Cabinet Caged Space is provided with metal mesh walls that are bolted to the floor and ceiling of the Facility and accessible by a sliding door with a lock.
Customer will receive the noted number of Cabinets, and Customer must purchase minimum Internet Connectivity of 1 Mbps (Tiered or Burstable) for each Cabinet provided in the Caged Space. If Customer desires to provide its own cabinets, Customer must
meet all Facility and regulatory requirements and pay any costs associated with meeting such requirements. The installation service level guarantee set forth at www.WorldCom.com/terms does not apply to the Cages Space.

  

 Page 8 of 14 

  
 United States Internet
Colocation Services Agreement 
  
 Attachment B (Continued)

  

	 Customer Name: Varitek Industries Inc.

				
	  ̈Power
Upgrades
	 	 No. of Power
 Upgrades
	 	Monthly Charge (each)	 	Install Fee (each)
	  ̈Redundant7 20 amp 110 volt
	 	
	 	$220 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Redundant 30 amp 110
volt
	 	
	 	$330 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Redundant 50 amp 110
volt
	 	
	 	$550 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Redundant 20 amp 208
volt
	 	
	 	$420 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Redundant 30 amp 208
volt
	 	
	 	$620 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Redundant 50 amp 208
volt
	 	
	 	$1,050 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
				
	  ̈Replacement8 30 amp 110 volt
	 	
	 	$110 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Replacement 50 amp 110
volt
	 	
	 	$200 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Replacement 20 amp 208
volt
	 	
	 	$200 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Replacement 30 amp 208
volt
	 	
	 	$400 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)
	  ̈Replacement 50 amp 208
volt
	 	
	 	$830 (Not Discountable or Waivable)	 	$2,000 (Not Discountable or Waivable)

  
 On-Site Technical Support9 and Installation Services 
 All
Internet Colocation customers receive On-site Technical Support that consists of basic operational functions and diagnostic and selected equipment repair activities for select hardware models. (e.g. hand and eyes support). On-Site Technical
Support/Hands and Eyes Support activities and procedures are described at www.WorldCom.com, or such other URL designated by WorldCom10. Customer may elect to have WorldCom perform equipment Installation by selecting this option on the Internet Colocation Configuration Form. The first two hours on On-Site Technical Support/Hands and Eyes Support per month
are provided at no charge. Additional On-Site Technical Support/Hands and Eyes Support is billed at $200 per hour. On-Site Technical Support/Hands and Eyes Support calls for billed in 15 minute Increments, with a minimum call of 15 minutes.

	7	 	Redundant circuits are available in addition to the standard 2 x 20 Amp 110 Volt circuits provided with each Cabinet Space and in each Cabinet included in a Caged
Space. 

	8	 	Replacement circuits are available in addition to the standard 2 x 20 Amp 110 Volt circuits
provided with each Cabinet Space and in each Cabinet included in a Caged Space. 

	9	 	Includes Domain Name Service (DNS) for hosting one domain name. A Fee of $100 per domain name will be charged for each additional DNS domain name hosted by WorldCom.
Customer is responsible for registering and renewing its domain name(s): WorldCom will not register or renew Customer’s domain name. 

	10	 	WorldCom reserves the right to change On-Site Technical Support procedures upon posting of
the change to the URL or other notice to Customer. 

  

 Page 9 of 14 

 United States Internet Colocation Services Agreement 
  
 Attachment B (Continued) 
  
 Customer Name: Varitek Industrial Inc. 
  
 Primary Internet Connectivity’ 
  
  ̈ Tiered Service Tiered service provides a specific amount of bandwidth to Customer’s Space. Customer has unlimited use of this Internet bandwidth stream at a fixed monthly cost, but cannot exceed the
specific bandwidth tier. Customer may increase the bandwidth tier at any time during the term of this Service Order, but must remain at the tier for a least one calendar month. After the first month at the new tier, Customer may decrease the
bandwidth tier, but never below the tier for which Customer initially contracted. 
  
 One time Install Fee: $2,500 
  

	 Bandwidth Tier

	 	 Monthly Charges

	 	 Bandwidth Tier

	 	 Monthly Charge

	 	 Bandwidth Tier

	 	 Monthly Change

	  ̈1 Mbps
	 	$     983	 	 ̈25 Mbps	 	$13,333	 	 ̈90 Mbps	 	$  39,000
	  ̈1.5 Mbps
	 	$  1,200	 	 ̈30 Mbps	 	$16,000	 	 ̈100 Mbps	 	$  40,000
	  ̈3 Mbps
	 	$  2,400	 	 ̈35 Mbps	 	$18,867	 	 ̈200 Mbps11	 	$  80,000
	  ̈5 Mbps
	 	$  4,000	 	 ̈40 Mbps	 	$21,333	 	 ̈300 Mbps	 	$129,000
	  ̈6 Mbps
	 	$  4,400	 	 ̈50 Mbps	 	$21,667	 	 ̈400 Mbps	 	$160,000
	  ̈10 Mbps
	 	$  5,333	 	 ̈60 Mbps	 	$26,000	 	 ̈500 Mbps	 	$183,333
	  ̈15 Mbps
	 	$  8,000	 	 ̈70 Mbps	 	$30,333	 	 ̈750 Mbps	 	$275,000
	  ̈20 Mbps
	 	$10,667	 	 ̈80 Mbps	 	$34,667	 	 ̈1,000 Mbps	 	$366,667

  
  ̈ Burstable Service Burstable service provides unlimited use of a 100 or 1,000 Mbpa Internet connection. Customer will receive the Burstable service at the following rates,
based on Customer’s Monthly Minimum Usage Commitment. If Customer’s sustained usage exceeds the Monthly Minimum Usage Commitment, Customer will pay the Overage Charge set forth below for each Mbps that exceeds the Monthly Minimum Usage
Commitment. Sustained usage is defined at the 95th percentile measurement of all bandwidth usage samples taken
during the month. 
  
  ̈100 Mbps 
  
 One time Install Fee: $2,500 
  

	 Monthly Minimum Usage

	 	 Monthly Charge

	 	 Overage Charge (per Mbps)

	  ̈1 Mbps
	 	 $   1,000
 $   1,300
 $   2,600
 $   4,333
 $   4,800
 $   5,667
 $ 14,167
 $ 17,000
 $ 18,833
 $ 22,000
	 	 $ 1,000
 $    867
 $    867
 $    867
 $    800
 $    567
 $    567
 $    567
 $    567
 $    440

	 x1.5 Mbps
	 	 
	  ̈3 Mbps
	 	 
	  ̈5 Mbps
	 	 
	  ̈6 Mbps
	 	 
	  ̈10 Mbps
	 	 
	  ̈25 Mbps
	 	 
	  ̈30 Mbps
	 	 
	  ̈35 Mbps
	 	 
	  ̈50 Mbps
	 	 

	11	 	All Internet connectivity for bandwidth over 100 Mbps is delivered over fiber optics circuits. Customer is responsible for providing, at its sole cost and expense,
the Gig E card on its side of connection necessary to accept such a high bandwidth connection and a Layer 3 device that supports 1000 BASE-SX Multi Mode SC connections. 

  

 Page 10 of 14 

 United States Internet Colocation Services Agreement 
  
 Attachment B (Continued) 
  
 Customer Name: Varitek Industries Inc. 
  
  ̈ 1,000 Mbps1 
 One-time Install Fee $2,500 
  

	 Monthly Minimum Usage

	  	Monthly Charge

	  	 	    	Overage Charge (per Mbps)

	  ̈ 50 Mbps
	  	$	23,333	  	 	    	$	467
	  ̈ 100
Mbps
	  	$	43,333	  	 	    	$	433
	  ̈ 250
Mbps
	  	$	108,333	  	 	    	$	433
	  ̈ 500
Mbps
	  	$	200,000	  	 	    	$	400
	  ̈ 750
Mbps
	  	$	300,000	  	 	    	$	400

  

	 Additional Service Options

	  	Monthly Charge (each)

	    	Install Fee

	  ̈ POP Mailboxes—No.
of Mailboxes2
                    
	  	$	10	    	$	0

  
  ̈ Cross Connects3 WorldCom with provision Cross
Connects for access to certain WorldCom Services to Alternate Carrier Access circuits, and to non-adjacent cabinets and/or cages within the Facility that are occupied by another customer(s). WorldCom assumes no responsibility for monitoring,
maintenance, or repair of the Alternate Access circuits that are not provided by WorldCom. 
  
  ̈ Cross Connects for WorldCom Service4 
  

	 	  	DS0 (No. of
Circuits)

	  	DS1 (No. of
Circuits)

	  	DS3 (No. of
Circuits)

	  	OC-X (No. of
Circuits)

	  	 (No. of
 Circuits)

	  	 Monthly
 Charge (each)

	  	 Install Fee (each)

	  ̈
Frame Relay
	  	____	  	____	  	____	  	____	  	 	  	$50	  	$150 (Not Discountable or Waivable)
	  ̈ Metro Frame
Relay
	  	____	  	____	  	____	  	____	  	 	  	$50	  	$150 (Not Discountable or Waivable)
	  ̈ ATM
	  	____	  	____	  	____	  	____	  	 	  	$50	  	$150 (Not Discountable or Waivable)
	  ̈ Metro
ATM
	  	____	  	____	  	____	  	____	  	 	  	$50	  	$150 (Not Discountable or Waivable)
	  ̈ U.S. Private
Line
	  	____	  	____	  	____	  	____	  	 	  	$50	  	$150 (Not Discountable or Waivable)
	  ̈ Metro Private
Line
	  	____	  	____	  	____	  	____	  	 	  	$50	  	$150 (Not Discountable or Waivable)
							
	 ̈ IP VPN Dedicated Services—Fully Managed	  	 	  	 	  	 	  	____	  	$50	  	$150 (Not Discountable or Waivable)

  

	1	 	All Internet connectivity for bandwidth over 100 Mbps is delivered over fiber optics circuits. Customer is responsible for providing, at its sole cost and expense,
the Gig E care on its side of connection necessary to accept such a high bandwidth connection and a Layer 3 devide that supports 1000 BASE-SIX Multi Mode SC connections. 

	2	 	The number of POP Mailboxes Customer may order will not exceed 500. 

	3	 	The Installation service level guarantee set forth at www.WorldCom.com/terms does not apply to any Cross-Connects provided by WorldCom under this Service
Order. 

	4	 	Customer must order the selected WorldCom service separately, and Customer is required to sign a separate service agreement, which will govern Customer’s use of
such service. Additional fees will apply. 

  

 Page 11 of 14 

 United States Internet Colocation Services Agreement 
  
 Attachment B (Continued) 
  
 Customer Name: Varitek Industries Inc. 
  
  ̈ Cross Connects—Alternate Carrier Access5 
  

	 Circuit Type

	  	No. of Circuits

	  	Monthly Charge (each)

	  	 Install Fee (each)

	 POTS
	  	_____	  	$50	  	$150 (Not Discountable or Waivable
	 DSO
	  	_____	  	$50	  	$150 (Not Discountable or Waivable
	 DS1
	  	_____	  	$50	  	$150 (Not Discountable or Waivable
	 DS3
	  	_____	  	$50	  	$150 (Not Discountable or Waivable
	 OC-X
	  	_____	  	$50	  	$150 (Not Discountable or Waivable

  
  ̈ Cross Connects—Alternate Carrier Access 
  

	 Cross-Connect Type

	  	No. of Cross Connects

	  	Monthly Charge (each)

	  	 Install Fee (each)

	 Category 5
	  	 	  	$50	  	$150 (Not Discountable or Waivable
	 Fiber
	  	 	  	$50	  	$150 (Not Discountable or Waivable

  
 Total Number of
Cross Connects6     
                                       
 _______     
  

	5	 	Any access provided by an alternate carrier will not be provisioned under this Service Order or Customer’s Internet Colocation Services Agreement with WorldCom;
Customer must enter into a separate agreement with the alternate carrier for the provisioning of such service. Also, the alternate carrier must currently provide service to, or have an existing presence in, the Facility. If Customer purchases
service from an alternate carrier, Customer must purchase at least an equal amount of Internet Connectivity from WorldCom on a service-by-service basis. Worldcom assumes no responsibility for monitoring, maintenance, or repair of circuits that are
not provided by WorldCom. 

	6	 	The total number of Cross Connects indicated should be the sum of the number of cross connects identified for the Cross Connects for WorldCom Services. Cross
Connects—Alternate Carrier Access, and Inter-Cabinet or—Cage Connectivity Cross Connects. 

  

 Page 12 of 14 

 United States Internet Colocation Services Agreement 
  
 Customer Name: Varitek Industries Inc. 
  
 Diversified Internet Connectivity 
  
  ̈ Tiered Service. Tiered service provides a specific amount of bandwidth to Customer’s Space. Customer has unlimited use of this internet bandwidth stream at a fixed monthly cost, but cannot exceed the
specified bandwidth tier. Customer may increase the bandwidth tier at any time during the term of this Service Order, but must remain at that tier for at least one calendar month. After the first month at the new tier, Customer may decrease the
bandwidth tier, but never below the tier for which Customer initially contracted. 
  
 One-time Install Fee: $2,500 
  

	 Bandwidth Tier

	 	 Monthly Charge

	 	 Bandwidth Tier

	 	 Monthly Charge

	 	 Bandwidth Tier

	 	 Monthly Charge

	  ̈ 1 Mbps
	 	$     933	 	 ̈ 25 Mbps	 	$13,333	 	 ̈ 90 Mbps	 	$  39,000
	  ̈ 1.5
Mbps
	 	$  1,200	 	 ̈ 30 Mbps	 	$16,000	 	 ̈ 100 Mbps	 	$  40,000
	  ̈ 3 Mbps
	 	$  2,400	 	 ̈ 35 Mbps	 	$18,667	 	 ̈ 200 Mbps	 	$  80,000
	  ̈ 5 Mbps
	 	$  4,000	 	 ̈ 40 Mbps	 	$21,333	 	 ̈ 300 Mbps	 	$120,000
	  ̈ 6 Mbps
	 	$  4,400	 	 ̈ 50 Mbps	 	$21,667	 	 ̈ 400 Mbps	 	$160,000
	  ̈ 10 Mbps
	 	$  5,333	 	 ̈ 60 Mbps	 	$26,000	 	 ̈ 500 Mbps	 	$183,333
	  ̈ 15 Mbps
	 	$  8,000	 	 ̈ 70 Mbps	 	$30,333	 	 ̈ 750 Mbps	 	$275,000
	  ̈ 20 Mbps
	 	$10,667	 	 ̈ 80 Mbps	 	$34,667	 	 ̈ 1000 Mbps	 	$366,667

  
  ̈ Burstable Service. Burstable service provides unlimited use of a 100 or 1,000 Mbps internet connection. Customer will receive the burstable service at the following rates,
based on Customer’s Monthly Minimum Usage Commitment. If Customer’s sustained usage exceeds the Monthly Minimum Usage Commitment, Customer will pay the Overage Charge set forth below for each Mbps that exceeds the Monthly Minimum Usage
Commitment. Sustained usage is defined at the 95th percentile measurement of all bandwidth usage samples taken during the month. 
  
  ̈ 100 Mbps7 
  
 One-time Install Fee: $2,500 
  

	 Monthly Minimum Usage Commitment

	  	Monthly Charge

	  	Overage Charge (per Mbps)

	  ̈ 1 Mbps
	  	$	 1,000	  	$	 1,000
	 x 1.5 Mbps
	  	$	 1,300	  	$	 867
	  ̈ 3 Mbps
	  	$	 2,600	  	$	 867
	  ̈ 5 Mbps
	  	$	 4,333	  	$	 867
	  ̈ 6 Mbps
	  	$	 4,800	  	$	 800
	  ̈ 10 Mbps
	  	$	 5,667	  	$	 567
	  ̈ 15 Mbps
	  	$	 6,500	  	$	 567
	  ̈ 20 Mbps
	  	$	 11,333	  	$	 567
	  ̈ 25 Mbps
	  	$	 14,167	  	$	 567
	  ̈ 30 Mbps
	  	$	 17,000	  	$	 567
	  ̈ 35 Mbps
	  	$	 19,833	  	$	 567
	  ̈ 50 Mbps
	  	$	 22,000	  	$	 440
	 	  	 	 	  	 	 

  
  ̈ 1,000 Mbps1 
  
 One-time Install Fee: $2,500

  

	 Monthly Minimum Usage Commitment

	  	Monthly Charge

	    	Overage Charge (per Mbps)

	  ̈ 50 Mbps
	  	$	 23,333	    	$	 467
	  ̈ 100
Mbps
	  	$	 43,333	    	$	 433
	  ̈ 250
Mbps
	  	$	 108,333	    	$	 433
	  ̈ 500
Mbps
	  	$	 200,000	    	$	 400
	  ̈ 750
Mbps
	  	$	 300,000	    	$	 400

  

  

	7	 	All internet connectivity for bandwidth over 100 Mbps is delivered over fiber optic circuits.
Customer is responsible for providing, at its sole cost and expense, the Gig E card on its side of the connection necessary to accept such a high bandwidth connection and a Layer 3 device that supports 1000 BASE-SX Multi Mode SC connections.

  
  

 Page 13 of 14 

 United States Internet Colocation Services Agreement 
  
 Customer Name: Varitek Industries Inc. 
  
 Shadow Internet Connectivity 
  

	 ̈	 	Shadow Tiered Service. Tiered service provides a specific amount of bandwidth to Customer’s Space. Customer has unlimited use of this internet bandwidth stream at a
fixed monthly cost, but cannot exceed the specified bandwidth tier. Customer may increase the bandwidth tier at any time during the term of this Service Order, but must remain at that tier for at least one calendar month. After the first month at
the new tier, Customer may decrease the bandwidth tier, but never below the tier for which Customer initially contracted. Customer will be billed the base shadow connection Monthly Charge below as long as the sustained usage of such connection (95%
percentile traffic sampling rate) does not exceed 64 Kbps while the Primary Internet Connectivity is available. If sustained usage exceeds 64 Kbps, Customer will pay an excess usage charge(s) for the second connection. The excess usage charge is the
Monthly Charge for the tier noted below that is set forth in the Primary Internet Connectivity section above. Customer will be billed at those rates until the sustained usage of the Shadow Internet Connectivity in a month decreases below 64 Kpbs. If
WorldCom determines that Customer’s use of the Shadow Internet Connectivity resulted from unavailability of the WorldCom provided Primary Internet Connectivity, WorldCom will credit Customer’s account for any excess usage charges billed.

  
 One-time Install Fee: $2,500 
  

	 Bandwidth Tier

	  	Monthly Charge

	  	Bandwidth Tier

	  	Monthly Charge

	  	 Bandwidth Tier

	  	Monthly Charge

	  ̈ 1 Mbps
	  	$250	  	 ̈ 25 Mbps	  	$500	  	 ̈ 90 Mbps	  	$   750
	  ̈ 1.5 Mbps
	  	$250	  	 ̈30 Mbps	  	$500	  	 ̈ 100 Mbps	  	$1,000
	  ̈ 3 Mbps
	  	$250	  	 ̈35 Mbps	  	$500	  	 ̈ 200 Mbps8	  	$1,000
	  ̈ 5 Mbps
	  	$250	  	 ̈40 Mbps	  	$500	  	 ̈ 300 Mbps	  	$1,000
	  ̈ 6 Mbps
	  	$250	  	 ̈50 Mbps	  	$750	  	 ̈ 400 Mbps	  	$1,000
	  ̈ 10 Mbps
	  	$500	  	 ̈60 Mbps	  	$750	  	 ̈ 500 Mbps	  	$1,000
	  ̈ 15 Mbps
	  	$500	  	 ̈70 Mbps	  	$750	  	 ̈ 750 Mbps	  	$1,000
	  ̈ 20 Mbps
	  	$500	  	 ̈80 Mbps	  	$750	  	 ̈ 1000 Mbps	  	$1,000

  

	 Additional WorldCom Services9

	  	Monthly Charge

	  	Install Fee

	  ̈ Internet Managed
Firewall—Checkpoint
	  	$ 0	  	$ 0
	  ̈ IP VPN Dedicated
Services—Fully Managed10
	  	$ 0	  	$ 0

  

	8	 	All internet connectivity for bandwidth over 100 Mbps is delivered over fiber optic circuits. Customer is responsible for providing, at its sole cost and expense,
the Gig E card on its side of the connection necessary to accept such a high bandwidth connection and a Layer 3 device that supports 1000 BASE-SX Multi Mode SC connections. 

	9	 	Customer is required to sign a separate service agreement, which will govern Customer’s use of the selected service. Additional fees will apply. An order for
WorldCom IP VPN Dedicated Services—Fully Managed cannot be continued with an order for Load Balancing Diverse or Shadow Internet Connectivity, or Internet Managed Firewall—Checkpoint. 

	10	 	If Customer receives the WorldCom IP VPN Dedicated Services—Fully Managed, Customer must identify the number of POTS Circuits to be used with such IP VPN
services in the Cross Connects section of this Service Order. 

  

 Page 14 of 14Letter of Intent

 
Exhibit 10.18

 
Letter of Intent 
By and Between: 
 
[LOGO] 
 
Sea Tow Services International, Inc. 
 
AND 
 
[LOGO] 
 
Varitek Industries, Inc. 
 
THIS Letter of
Intent (“LOI”) is between Sea Tow International, Inc. (“STII”), and Varitek Industries, Inc. (“VTKI”). When referencing STII and VTKI individually, they may hereinafter be also referred to as the
“Party.” When referenced together, they may hereinafter be referred to as the “Parties.” This LOI represents a continuation of the program commenced by the Parties and set forth in the Memorandum of Understanding entered on April
19, 2002 and involves the continued offering and selling of STII’s standard memberships to the general public. 
 
Varitek Industries, Inc. (OTC: VTKI) designs, develops, and markets wireless data systems and technologies in response to identified consumer, commercial,
and/or institutional needs and demands; VTKI has developed telematics devices and the associated software support infrastructure, communication infrastructure and related services. 
 
The term “Telematics” encompasses the interconnection between computers (i.e., information) communication, and
location. Varitek Telematics systems utilize a small light-weight, computer with a broad range of electronic functionality and is targeted at the rapidly emerging market for on-asset communications – combining wireless voice and data transfer
with Global Positioning Satellite (GPS) technology to provide location-based connectivity, security, information accumulation, tracking, mobile commerce, enhanced productivity, and entertainment services. 
 

Page 1 of 9 

 
VTKI offers a range of
telematic services to business and consumers on a monthly subscription basis. The VTKI telematics device is presently being marketed to the marine and maritime marketplace, recreational vehicle markets and heavy equipment markets but is extensible
to many other applications and industries. 
 
STII through its
domestic and international franchisees provides boaters with a membership service. The STII membership, referred to under its trademarks, including “Your Road Service at Sea,®” offers service to boaters. STII provides comprehensive services 365 days per year on a 24/7 basis. 
 
WHEREAS, the Parties agree to continue the development of their
business relationship which leverages on the combined expertise, capabilities, contacts, knowledge and services to enable the delivery of Telematics capabilities and services to customers in the marine and maritime industry, and 
 
WHEREAS, the Parties to this LOI agree that their
business relationship shall take the form of VTKI in connection with its contractors providing Telematics solutions, customer support, call center operations, data reporting, technical expertise, product improvements and enhancements together with
the sale of Sea Tow memberships. 
 
WHEREAS,
the Parties to this LOI agree that their business relationship will also take the form of STII offering strategic product and service input to VTKI. In addition, STII agrees to the reselling of VTKI Telematics products and services to the STII
current and future customer base and to making prospective customer introductions to STII’s OEM and retail relationships. Furthermore STII agrees to the internal utilization of the VTKI Telematics products and services. STII further agrees in
providing STII services to all customers utilizing the VTKI Telematic solution who have purchased, or have had purchased for them, Sea Tow memberships. 
 
NOW, THEREFORE, in recognition of their mutual interests and desires and the premises set forth above, the Parties do hereby manifest by
this LOI their intent to negotiate in good faith, mutually agreeable terms and conditions to be included in a formal binding agreement between the Parties to be concluded at a later date (the “Definitive Agreement”). In this regard, the
Parties set forth the following non-binding principles which are to be negotiatedin said Definitive Agreement, unless determined by legal counsel of one of the Parties to be against the law or public policy: 
 

	 	1.	 	OVERVIEW OF DEFINITIVE AGREEMENT. Subject to the foregoing, the terms and conditions for the Parties to this LOI are: 

 

	 	(1)	 	Co-Brand, deliver, and package an exclusive aftermarket marine recreational product and to the extent feasible the commercial marine market,produced by VTKI and

 

Page 2 of 9 

 
supported
and sold by STII as “SeaSmart® by Remote Knowledge,” recognizing that Sea Smart is a registered
trademark of STII, used in connection with its membership program and subject to a license or other agreement to be included in the Definitive Agreement, including the retail boat industry; the marina and boat service sector; and solutions to the
boating consumers. 
 

	 	(2)	 	Agreement to a 12-month (500 units expected per month) volume order commitment for the Purchase and Delivery of VTKI’s telematics solutions and services to
identified STII customers as outlined within the definitive agreement. 

 

	 	(3)	 	Purchase and Delivery of potentially 500 RK3000 systems for the internal utilization of STII by the STII franchisees. 

 

	 	(4)	 	Joint Venture refinement and delivery of a packaged VTKI/Sea Tow call center solution whereby STII delivers and supports the solution to all emergency and on-water
response request and VTKI will deliver and support all OEM, Dealer Distributor and end-user information and ancillary requests and STII through its membership program will sell memberships and deliver services upon request.

 

	 	(5)	 	Joint venture refinement and delivery of a packaged VTKI/Sea Tow solution to OEM boat builders on a membership basis in accordance with STII’s programs. ***
OEM’s are the ultimate customer of VTKI and will be defined as such in the definitive agreement*** 

 

	 	(6)	 	Joint pursuit of opportunities to provide packaged Telematics/Sea Tow solution within government and quasi-governmental applications, 

 

	 	(7)	 	Joint pursuit of public funding for the development and delivery of all mutual initiatives. 

 

	 	2.	 	ROLES AND RESPONSIBILITIES. The primary responsibilities of STII and VTKI are set forth in Exhibit A and Exhibit B respectively, attached hereto. Each Party will
designate a representative to act as the primary point-of-contact (POC) related to this LOI. 

 

	 	3.	 	MUTUAL COOPERATION. 

 

	 	a.	 	The Parties intend to cooperate with each other in the pursuit of business transactions with potential Customers. Each Party will furnish information to the other,
work on mutually beneficial technical, and marketing efforts, and perform other such activities as may be reasonably required to support a customer or industry sector that the Parties have mutually agreed to pursue under this cooperative effort.

 

	 	b.	 	The specific rights, duties, and obligations of the respective Parties in connection with each project shall be governed by such agreement(s) as the parties may
hereafter enter following good faith negotiations. Such agreement(s) shall be based on mutually acceptable terms and conditions, including fair and reasonable prices and the inclusion of any terms and conditions required or contemplated by law,
regulation or otherwise included in such agreement(s). 

 

	 	c.	 	For opportunities that the Parties mutually agree to pursue, the Parties will agree, to the 

 

Page 3 of 9 

extent possible, to provide each other with the “first right of refusal” for
unique capabilities, services and products beyond the normal scope of the parties’ routine business. 
 

	 	4.	 	COMPLIANCE WITH LAWS. The Definitive Agreement contemplated by this LOI to be executed by the Parties at a later date will include appropriate provisions requiring
both Parties to comply with all U.S. and International laws and regulations. 

 

	 	5.	 	PROPRIETARY INFORMATION. All information exchanged by the Parties is governed by the Non-Disclosure Agreement (NDA), which is already in place, and hereby
incorporated by reference into this LOI so long as it shall remain in effect. A copy of the Agreement for Exchange of Confidential Information executed by the Parties is attached as Exhibit C. 

 

	 	6.	 	NOTICES. Any notice, demand, request, statement, or other writing required or permitted by this LOI shall be deemed to have been sufficiently given either when
personally delivered or mailed by certified or registered United States mail with postage prepaid to the address of the Parties specified herein. The individuals designated below shall be, unless and until otherwise provided in writing by the
appropriate Party, the only individuals eligible to receive any and all written notices under this LOI: 

 

	 SEA TOW INTERNATIONAL, INC.
	    	 VARITEK INDUSTRIES, INC.

	
	 Keith Cummings
	    	 Marty Vogt

	 1560 Youngs Avenue – Box 1178
	    	 16360 Park Ten Place Suite 360

	 Southold Avenue, 11971
	    	 Houston, TX 77084

	 Phone: 631-765-3660
	    	 Phone: 281-599-4900

	 Email: keith@seatow.com
	    	 Email: mjvogt@varitekindustries.com

 

	 	7.	 	MARKETING EXPENSES. Each Party will bear all of its own expenses, costs, risks, and liabilities arising out of any marketing efforts related to this LOI, and neither
Party will make any claim or charges against the other for such efforts unless mutually agreed to in advance of any such occurrence by both parties. 

 

	 	8.	 	PUBLICITY AND NEWS RELEASES. Any information regarding this LOI, or anything relating to this LOI shall not be released to the news media or general public, without
the prior approval of the non-releasing Party; such approval shall not be unreasonably withheld. VTKI as a public entity is obligated to certain public disclosure rules and therefore shall be required to release any and all material events in a
timely manner. It is understood by both parties that a mutual press release shall be issued upon 

 

Page 4 of 9 

the execution of the LOI and the following execution of any preceding definitive
agreements. 
 

	 	9.	 	NATURE OF AGREEMENT. This LOI shall not be construed to create a joint venture or other form of business organization of any kind between the Parties. At all times
the Parties shall remain independent contractors, each responsible for its own employees. 

 

	 	10.	 	INDEPENDENT CONTRACTOR. Each Party is an independent contractor and shall be free to exercise discretion and independent judgment as to the method and means of
performance of the services or products contracted for by the other Party. Each Party shall be fully responsible for all supervision, performance, activities and liabilities due to, incurred by or because of its personnel and its personnel shall in
no sense be considered employees of the other Party. Each Party’s personnel will not, by virtue of this LOI, be entitled or eligible to participate in any benefits or privileges extended by the other Party to its employees.

 

	 	11.	 	EFFECTIVE DATE. The effective date of this LOI is April 15, 2003, in accordance with the MOU executed on April 15, 2002, thereby maintaining currency without hiatus.
To accomplish the Parties’ objectives, this LOI shall stay in effect until May 1st, 2004. If a Definitive
Agreement is not executed and delivered on mutually acceptable terms by the Parties by May 1st 2004, then the
proposed relationship with STII and VTKI described in this LOI shall terminate; provided, however nothing herein shall alter or diminish in any manner each Parties’ responsibilities, obligations, and covenants set forth in the Non-Disclosure
Agreement (which shall continue in full force and effect). 

 

	EXHIBITS:	 	

 

	 	1.	 	Exhibit A – Proposed Division of Responsibilities for STII 

 

	 	2.	 	Exhibit B – Proposed Division of Responsibilities for VTKI 

 

	 	3.	 	Exhibit C – Agreement for Exchange of Confidential Information 

 
NEITHER THIS LOI AS A WHOLE, or any single portion thereof, shall be deemed binding upon the Parties, unless and until
incorporated into a binding contract document properly executed by representatives of the Parties, each acting within the scope of a properly authorized delegation of authority. Notwithstanding the legally unenforceable nature of this document, the
representatives of the Parties executing this document warrant by their signatures that they will act in good faith and diligence to achieve the intent manifested herein. 
 
IN WITNESS WHEREOF, the Parties hereto have caused this LOI to be executed in duplicate as of the day and year below
written. 
 

	 Sea Tow International, Inc.
	 	 VARITEK INDUSTRIES, INC.

 

Page 5 of 9 

 
 

	
	 By:

	 	 	 	 By:

	 (Signature)
	 	 	 	 (Signature)

 

	
	 Capt. Joseph J. Frohnhoefer

	 	 	 	 Randy Bayne

	 (Typed Name)
	 	 	 	 (Typed Name)

 

	
	 Chairman and CEO

	 	 	 	 President /CEO

	 (Title)
	 	 	 	 (Title)

 

	
	
	 	 	 	

	 (Date)
	 	 	 	 (Date)

 

Page 6 of 9 

 
EXHIBIT A

 
PROPOSED DIVISION OF RESPONSIBILITIES
– STII 
 
This Exhibit lists the Primary
Responsibilities of STII to be negotiatedinto the Definitive Agreement, which is contemplated by this LOI: 
 

	 	1.	 	Will work with Varitek in the distribution, marketing and delivery of an overall Varitek/SeaTow Telematics Solution in accordance with STII’s membership
programs. 

 

	 	2.	 	Support project management and engineering services to integrate, test, and deliver the software products with commercial software products, computing platforms, and
communications infrastructure related to call center operations. 

 

	 	3.	 	Provide appropriate access for VTKI personnel to key STII personnel for information exchange, critical decision-making in connection with projects and efforts
described by the Definitive Agreement. 

 

	 	4.	 	Will provide access to any marine and maritime contacts and related information necessary to refine and deliver a better telematics solution for the Identified
Opportunities. 

 

	 	5.	 	Will seek to have the Varitek Telematics solution purchased and deployed on all STII franchise response vessels. 

 

	 	6.	 	Will make introductions within the marine and maritime business to any and all parties that might have an interest in the deployment of a telematics solution. This
shall include OEM boat Builders, dealers, insurance companies, finance companies, US Coast Guard, port authorities, and any other potential customers of a Varitek/SeaTow telematics solution. 

 

	 	7.	 	Support Varitek in the marketing efforts for the Telematics capabilities, products, and services being developed; such responsibilities may include the
development of marketing materials, launching a marketing web-site, and supporting the performance of demonstrations and presentations to potential clients. 

 

	 	8.	 	Will work in conjunction with Varitek to define requirements definition and product refinements necessary to address customer needs. 

 

	 	9.	 	Will work with Varitek to seek Federal, municipal or other public development funding for special projects. 

 
EXHIBIT B 
 
PROPOSED DIVISION OF RESPONSIBILITIES – VTKI

 
This Exhibit lists the Primary Responsibilities of
VTKI to be incorporated into the Definitive Agreement, which is contemplated by this LOI: 
 

	 	1.	 	Provide appropriate access for STII personnel to all engineering data and documentation to enable a comprehensive assessment of the existing Telematics
infrastructure and applications previously developed by VTKI. VTKI has promised to have its version 1 manufactured system provided to STII on or before July 1, 2003, for STII’s rugged use and testing. This commitment is a condition precedent
and critical requirement, and all agreements between the parties, except the Confidential Disclosure Agreement (Ex. C hereto) shall be deemed null and void should VTKI fail to timely deliver, or should the version 1, as provided unreasonably fail in
such rugged use and testing. 

 

	 	2.	 	Provide appropriate access for STII personnel to key VTKI personnel for information exchange, critical decision-making in connection with projects and efforts
described by the Definitive Agreement. 

 

Page 7 of 9 

 

	 	3.	 	Lead marketing efforts for the Telematics capabilities, products, and services being developed; such responsibilities may include the development of marketing
materials, launching a marketing web-site, and supporting the performance of demonstrations and presentations to potential clients. 

 

	 	4.	 	Unless otherwise agreed in writing, obtain financing to fund design, development, integration, testing, and delivery of the Telematics capabilities, products,
and services being contemplated by the Definitive Agreement. 

 

	 	5.	 	Support project management and engineering services to integrate, test, and deliver the software products with commercial software products, computing platforms, and
communications infrastructure. 

 

	 	6.	 	Support efforts to coordinate with outside providers and manage integration of those providers into a seamless team to pursue the opportunities put forth in the
Definitive Agreement; such responsibilities shall include planning and communications, quality control and validation, and integration and testing. 

 

	 	7.	 	Support ongoing operations of the Telematics capabilities, products, and services developed; such responsibilities shall include ongoing marketing practices,
maintenance of the dedicated web-site, and monitoring customer satisfaction of the information management capabilities, products, and services put forth in the Definitive Agreement. 

 

	 	8.	 	Support customers utilizing the Telematics products as it related to the transmission, storage, and delivery of any data, which occurs as a result of the sale, and
usage of the telematics solutions provided in connection with this agreement. 

 

	 	9.	 	Provide for carrier services and customer billing in connection with the telematics products and services contemplated by this Agreement. 

 

Page 8 of 9 

 
EXHIBIT C

 
Agreement for Exchange of Confidential
Information 
 
This document has been properly executed by
each Party to this LOI and is on-file. 
 

Page 9 of 9

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