Document:

Internet Infrastructure Services Agreement with Q9 Networks Inc.

 Exhibit 10.11 
  

					
	

	  	 Internet Infrastructure Services
 Agreement
	  	    
Q9 Networks Inc.
100 Wellington St.
West
P.O. Box 235, Suite 900
Canadian Pacific Tower
Toronto-Dominion
Centre
Toronto, ON M5K 1J3
Tel: (416) 362-7000
Fax: (416)
362-7001
www.Q9.com
	  	Master Terms and Conditions	  
			
	 IISA-MT C08/27/05
	  	(Page 1 of 7)	  	

 This Internet Infrastructure Services Agreement (the “Agreement”) is made as of JUNE 21, 2006 (the
“Effective Date”) between Q9 Networks Inc. (“Q9”), with offices at Suite 900, 100 Wellington Street West, Canadian Pacific Tower, Toronto-Dominion Centre, Toronto, ON M5K 1J3 and Yak Communications (Canada) Inc.,
(“Customer”) with offices at 300 Consillum Place, Suite 500, Toronto, Ontario M1H 3G2 and describes the current terms and conditions under which Q9 will provide services to the Customer. In addition to these Master Terms and
Conditions, the following documents are Incorporated by reference into this Agreement and are deemed to be a part of and make up the entire Agreement: Schedule A - Sales Order Form; Schedule B - Customer Information Form; Schedule C - Service Level
Agreement and Schedule D – Installation Date Confirmation Form. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
below, the parties hereby agree as follows. 
 Q9 agrees to provide and Customer agrees to purchase, subject to the terms and conditions contained herein, the
Services described in the applicable Sales Order Form. The parties may from time to time by mutual agreement order other Services pursuant to additional Sales Order Forms and such Sales Order Forms shall be governed by these Master Terms and
Conditions and form a part of this Agreement for all purposes. 
 1. Interpretation. 
 (a) Definitions. The capitalized terms used in this Agreement, have the following meanings: 
 “Agreement” -
any Sales Order Form together with these Master Terms and Conditions, Q9’s Service Level Agreement, Customer Information Form and Installation Date Confirmation Form. 
 “Customer Provided Equipment” - the Customer’s network servers and other equipment, together with all required software and/or related components, owned and/or supplied by the Customer which is
necessary for interconnection to Q9’s network facilities or otherwise required for use in connection with any of the Services. 
 “Customer
Technology” - the Customer’s proprietary technology, including the Customer’s internet operations design, content, software tools, hardware designs, algorithms, software (In source and object code formals), user interface designs,
architecture, class libraries, objects and documentation (both printed and electronic), know-how, trade secrets and any related Intellectual property rights throughout the world (whether owned by the Customer or licensed to the Customer from a third
party) and also including any derivatives, improvements, enhancements or extensions of Customer Technology conceived, reduced to practice, or developed during the term of this Agreement by the Customer that are uniquely applicable to the Customer.

 “Equipment” - the Customer Provided Equipment and the Q9 Provided Equipment. 
 “Installation Date” - the date(s) set out in Q9’s Installation Date Confirmation Form which pertain to Q9’s initial set-up of all or a part of the Services (as described in a Sales Order Form) by
the end of the business day on the date(s) specified and Q9’s corresponding billing to the Customer for the Services. 
 “Fees” - charges and
fees for Services set forth in a Sales Order Form and Supplemental Services, as well as the costs of third party services or products, including increases thereto, purchased by Q9 on the Customer’s behalf at the Customer’s request.

 “Q9 Data Centre” - any of the facilities which Q9 uses to provide the Services. 
 “Q9 Provided Equipment” - equipment referred to in a Sales Order Form, together with all required software, hardware and/or related components, which will be
supplied by Q9 as required for use in connection with any of the Services. 
 “Q9 Technology” - Q9’s proprietary technology, including Q9
Services, software tools, hardware designs, algorithms, software (in source and object code formats), user interface designs, architecture, class libraries, objects and documentation (both printed and electronic), network designs, know-how, trade
secrets and any related intellectual property rights throughout the world (whether owned by Q9 or licensed to Q9 from a third party) and also including any derivatives, Improvements, enhancements or extensions of Q9 Technology conceived, reduced to
practice, or developed during the term of this Agreement by either party that are not uniquely applicable to the Customer in that they may generally be used in Q9’s business. 
 “Recurring Charges” - recurring periodic fees and charges payable to and/or recoverable by Q9 for the Services, including taxes, fees, equipment rental and governmental, carrier and any other third party
charges. 
 “Re-Sale” - any disposition or distribution of or making available to, third parties of Services purchased from Q9 pursuant to this
Agreement and whether occurring by direct sale distribution or disposition to such third party or through the use of a server containing third party data. 
 “Sales Order Form” - Q9’s form of Order Form referencing Q9’s Master Terms and Conditions and accepted and signed by the Customer and Q9 with respect to the Services. 
 “Services” - the agreed upon services to be provided by Q9 to the Customer as initially described in a Sales Order Form and as may subsequently be modified or
added to pursuant to additional Sales Order Forms or Supplemental Service requests. 
 “Setup Fees” - non-recurring fees and charges payable to
and/or recoverable by Q9 for any one or more of the Services, hardware, software, taxes and fees related to the setup of the Services. 
 “Space” -
the portion(s) of the Q9 Data Centre made available to the Customer for the placement of Customer Provided Equipment and/or the Q9 Provided Equipment and such other space as is required for the provision of the Services. 
 (b) Applicable Law, Practices and Procedure. This Agreement shall be governed and interpreted according to the laws of Ontario. 
 Confidential 

 Canada without regard to conflicts of law rules or principles. In relation thereto, the parties will comply with all
applicable criminal and civil laws Including, but not limited to, laws relating to Intellectual property protection, trade secrets, privacy, obscenity and harassment. The parties agree that, except as stated in the last sentence of this paragraph,
any controversy arising under, out of, in conjunction with or relating to this Agreement shall be determined and settled by arbitration in accordance with the laws of Ontario. Any award resulting from such arbitration shall be final and binding on
Q9 and the Customer and their respective representatives and judgment may be entered on such award in any court having jurisdiction. The arbitrator shall not have the power to award special, incidental, indirect, consequential or punitive damages.
The expense of any arbitration shall be borne by Q9 and the Customer in the proportions the arbitrator shall determine. Notwithstanding the above, the parties reserve the full and unrestricted right to enforce all of their legal rights and remedies
whether in contract, common law, equity or otherwise. 
 2. Services. 
 (a) General: Customer agrees to purchase the Services described in a Sales Order Form(s) as may be subsequently revised in writing by the duly authorized representatives of Q9 and the Customer. Q9 agrees to
provide such Services in accordance with our Service Level Agreement and Q9’s operational procedures and Data Centre rules and guidelines as currently in effect, provided that the Customer shall receive evidence of all such operational
procedures and rules and guidelines and any amendments thereto, or modifications thereof, Other than as set out herein, failure to attain service levels as stated in our Service Level Agreement shall not constitute a breach of this Agreement. The
award of a service credit(s) or the termination of this Agreement as provided in section 9 hereof form the Customer’s sole remedies for any such failure to attain service levels. 
 (b) Delivery of Supplemental Services: The purpose of this provision is to enable Q9 to provide the Customer with certain limited services and equipment needed by the Customer on a “one-off” or
emergency basis (“Supplemental Services”) where such services are not included within the scope of the Services as specifically described in a Sales Order Form. Supplemental Services may include, as an example, a request from the Customer
to Q9 via telephone that Q9 immediately replace a problem Customer server with a Q9 server for a temporary period of time, Q9 shall notify the Customer of the Fees for any Supplemental Services requested by the Customer and obtain the
Customer’s approval prior to providing such Supplemental Services. The Customer agrees to pay Q9 the Fees charged by Q9 for Supplemental Services. The Customer will be charged for Supplemental Services in an invoice issued the month following
delivery of the Supplemental Services, Q9 will use commercially reasonable efforts to provide Supplemental Services, provided that Q9 has no obligation to determine the need for or provide Supplemental Services. All Supplemental Services provided
pursuant to this paragraph 2(b) are provided on an “as-is” basis and exclude any representations, warranties or conditions of any kind, whether express or implied, other than as expressly contained herein or in the SLA. 
 (c) Changes to the terms and conditions: If Q9 proposes to change any of the terms and conditions applicable to the Service during the term of this Agreement, Q9
shall provide the Customer with thirty (30) days’ prior written notice (the “Notice”). Upon receipt of the Notice, the Customer shall have fifteen (15) days to notify Q9 that it objects to such change and that it elects to
terminate the affected Service (the “Objection”). In this event, such termination shall become effective on the date of the change of the terms and conditions described in the Notice. Neither party shall be deemed to be in breach of this
Agreement as a result of such termination. If the Customer does not send an Objection to Q9 within such fifteen (15) day period, the Customer shall be deemed to have accepted the changes to the terms and conditions as set out in the Notice.

 3. Use. 
 The Customer shall use the Services and any
Supplemental Services for lawful purposes only and in accordance with the terms and conditions hereof. The Customer shall use the Space solely for the location and operation of the Customer Provided Equipment and any Q9 Provided Equipment described
in a Sales Order Form. The Customer shall not have any real property interests in the Space. The Space is accepted “AS IS” by the Customer. The Customer shall maintain the Space in the same quality and condition as provided to it by Q9. To
protect the integrity of the Q9 Data Centre and Space, including the Customer Provided Equipment and all other equipment installed there. Q9 has the right to prohibit the entry of material and equipment such as packing, cartons, refuse, bulky or
dirty outside clothing, food, cellular phones and other nonessential items and to restrict Customer activities within the Q9 Data Centre to only those which cannot be conducted elsewhere. 
 The Customer shall not connect or interconnect the Equipment with any other equipment or services of any third party without Q9’s prior written consent. All third
party software provided to Customer by Q9 in connection with any of the Services shall be subject to third party’s terms and conditions, inclusive of proprietary rights, for that software, which Customer agrees to abide by and in relation
thereto, Customer authorizes Q9 to permit said third party with access to its facilities and the Customer Provided Equipment on which the software product(s) are run for audit purposes only (If the third party software products(s) is running on
Equipment located elsewhere, Customer agrees to permit access to said third party for the same purpose set out herein). Customer also authorizes Q9 to provide said third party with Customer’s name and any Customer Provided Equipment information
that may be required to obtain the use of said third party’s software. 
 Subject to the Customer’s compliance all applicable security, safety and
authorization procedures for which, where applicable, the Customer has received written notice, access to the Space shall be available twenty-four (24) hours per day and seven (7) days per week but shall be limited to employees and agents
of the Customer whom the Customer has authorized to have access to the Space in accordance with Q9’s operational procedures and Data Centre rules and guidelines as currently in effect. The Customer specifically requires Q9 to deny access, on
the Customer’s behalf, to any unauthorized party. In accordance with Section 11, the Customer releases Q9 from any liability arising as a result of Q9 permitting or denying access as provided in this paragraph. 
 Q9 shall have the authority (without subjecting Q9 to any liability related thereto) to suspend the Customer’s operations in and around the Space if (in the sole
discretion of Q9, acting reasonably) there arises any hazardous condition, unsafe practice, emergency situation or Customer breach of any of the material terms and conditions of this Agreement that requires such suspension. Q9 will provide Customer
with notification of any such suspension before it occurs, or if that is not possible then as soon as practicable thereafter, and will work diligently with Customer to resolve such hazardous condition, unsafe practice or emergency situation and to
restore Customer’s operations as soon as possible. Q9 may, upon reasonable notice, require the Customer to relocate the Equipment to another space; provided, however, that such other space shall afford reasonably comparable access,
environmental conditions and facilities. Q9 will seek Customer’s prior approval of the proposed relocation Space, which approval will not be unreasonably withheld. All reasonable costs of relocating the Equipment shall be borne by Q9. Q9 shall
have the right to access the Space at any time for any purpose. 
 4. Fees and Invoicing. 
 The Customer shall pay to Q9 the Fees and other charge for Services set forth in a Sales Order Form. Fees for the Services shall be payable without counterclaim, set-off
or demand and shall be prorated for any partial month. Q9 reserves the right, in its sole 
  

					
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 discretion, to require that the Customer pay to Q9 any non-recurring or one-time Fees prior to the delivery of Services,
provided that, except in the case of emergency situations, the Customer has agreed to such one-time Fees in advance. All Fees charged by Q9 for Services are exclusive of all taxes and similar fees now in force or enacted in the future and imposed on
the transaction and/or the delivery of Services, all of which the Customer will be responsible for and will pay in full, except for taxes based on Q9’s net income. Fees shall be invoiced prior to the delivery of Services, except for Services
which are usage based, which will be invoiced at the end of the month within which the Services were delivered. Fees shall be determined in accordance with Q9’s customary method of calculation. Fees shall be paid to Q9 at its address first
above written or at such other place as Q9 may designate in writing. All Fees, invoices and payments shall be in Canadian dollars. Payments are due net thirty (30) days from the date of Q9’s invoice and are subject to late charges
thereafter, calculated at the rate of twelve (12) percent per annum (1.0 percent per month). Q9’s invoice shall be deemed to have been received by the Customer on the third day after mailing. If a Customer’s payment is not honoured
for NSF reasons, the Customer agrees to pay Q9 the greater of thirty-five ($35.00) or the amount actually charged to Q9 by its financial institution for the returned item, Q9 may suspend performance or provision of the Services or terminate this
Agreement for late or non-payment of Fees five (5) business days after written notice has been delivered to the Customer provided that the Customer has not cured such default within such notice period, and the Customer shall be liable for any
reasonable legal or collection agency fees incurred by Q9 in connection therewith, Q9 shall provide the Customer, at its request, with a schedule of any additional fees for additional services not covered in a Sales Order Form. Q9 may price such
additional services in its sole discretion. Any Services upgrades requested by the Customer may result in additional fees or other charges, Q9 may reclassify service levels, revise product or Services descriptions, or modify published prices as per
Section 2(c). If the parties fall to agree on a reclassification or modification of such Services or prices, either party may terminate this Agreement in accordance with Section 2(c) herein without liability therefor except for accrued
Fees to the date of termination. 
 The Customer agrees that on termination, expiry or cancellation of this Agreement, it will immediately pay all amounts
due to Q9 in accordance with this Agreement. With respect to any outstanding payments owing to Q9, the Customer gives Q9 authority to (a) retain all Customer Provided Equipment until such amounts have been paid in full and (b) sell the
Customer Provided Equipment to a third party or to Q9 and apply the proceeds of such sale to all outstanding amounts (including sale costs), if full payment has not been made within thirty (30) days of the end of the Agreement and if Q9’s
rights in this regard have not been subsequently waived in a separate overriding agreement with the lessor of said Customer Provided Equipment. The Customer acknowledges that even after termination, expiry or cancellation of this Agreement, it shall
continue to be responsible for any amounts payable to Q9 prior to and as a result of the termination, expiry or cancellation of this Agreement. 
 5.
Equipment. 
 (a) Responsibility for and Installation and Removal of Q9 Provided Equipment: Except as otherwise provided, Q9 has the sole
responsibility for obtaining, installing, maintaining and removing all Q9 Provided Equipment. The Customer may not, nor will it permit any third party to tamper with, relocate, remove or alter labels, change or otherwise modify or interfere with any
item of Q9 Provided Equipment unless authorized by Q9 in writing to do so. The Customer acknowledges that it will not acquire any ownership interest in the Q9 Provided Equipment, The Customer agrees that, except for the negligence or deliberate act
of Q9 or its employees, contractors or agents, the Customer will be solely responsible and liable for any loss or damage to the Q9 Provided Equipment that occurs while it is being used in connection with the Services whether such equipment is
located at the Q9 Data Centre, off-site at the Customer’s offices or any other off-site location that the Customer and/or its authorized representatives require. 
 (b) Responsibility for Customer Provided Equipment: Except as expressly provided in this Agreement, title to the Customer Provided Equipment shall remain with the Customer at all times, and Q9 shall have no
right, title or interest therein and Q9 shall keep the Customer Provided Equipment free and clear of all liens, security interests and encumbrances. The Customer has the sole responsibility far (i) obtaining, installing and maintaining all
Customer Provided Equipment and related services necessary for interconnection with Q9’s network facilities or otherwise required for use in connection with any of the Services; and (ii) ensuring that such Customer Provided Equipment and
related services are compatible with Q9’s requirements (including any modifications of the Services made by Q9 from time to time) as communicated to the customer in writing. 
 The Customer acknowledges that delivery of the Services by Q9 is dependent on the continuous availability and proper functioning of the Customer Provided Equipment and that Q9 has no liability for any inability to
properly provide or for failure to deliver the Services arising from any material default of the Customer under this Agreement. If the Customer requests and Q9 agrees to handle or access any Customer Provided Equipment, the Customer shall provide Q9
with precise instructions on what it requires and Q9 shall not be liable for any damage to or adverse effects upon the Customer Provided Equipment. 
 (c)
Installation and Removal of Customer Provided Equipment: Before beginning any delivery, installation or removal work, the Customer agrees to obtain Q9’s written approval of the Customer’s suppliers and contractors. The Customer may not
permit any third party to have access to the Q9 Data Centre or Space without Q9’s prior written consent. In case of failure of the Customer Provided Equipment with resulting danger to the Q9 Data Centre and other equipment installed there, the
Customer gives Q9 the right at the Customer’s expense to immediately disconnect, remove and safely store. If necessary, the Customer Provided Equipment, and Q9 will notify the Customer in such event. On termination, expiry or cancellation of
this Agreement, the Customer shall immediately remove the Customer Provided Equipment from the Space. If the Customer has not done so within seven (7) business days of the end of this Agreement, then the Customer authorizes Q9 to disconnect the
Customer Provided Equipment, remove if from the Space and the Q9 Data Centre and to store it on the Customer’s behalf. The Customer agrees to immediately reimburse Q9 for all charges incurred for the storage of the Customer Provided Equipment.
If the Customer Provided Equipment has not been claimed by the Customer within thirty (30) days of receipt of Q9’s written request to do so, then the Customer shall be deemed to have abandoned the Customer Provided Equipment, to have
surrendered all rights to its ownership or possession and to have authorized Q9 to dispose of the Customer Provided Equipment in such manner and for such terms as Q9 may determine in its sole discretion, without liability or compensation to the
Customer. 
 (d) Identification of Customer Provided Equipment: The Customer consents to Q9 affixing distinctive tracking labels to each item of
Customer Provided Equipment provided that such labels do not name the Customer or otherwise identify the Customer to third parties. The Customer will not remove any such labels until removal of the Customer Provided Equipment from the Q9 Data Centre
by the Customer. 
 (e) Customer Provided Equipment as Security: In the event that the Customer falls to pay Q9 all amounts owing to Q9 under this
Agreement when due, the Customer agrees that, upon delivery of prior written notice to the Customer and an opportunity to remedy the breach in accordance with Section 4 of this Agreement, Q9 may (i) restrict the Customer’s physical
access to the Q9 Data Centre, 
  

					
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 Space and Customer Provided Equipment; and/or (ii) take possession of any Customer Provided Equipment and store it,
at the Customer’s expense, until taken in full or partial satisfaction of any lien or judgment, all without being liable to prosecution or for damages. 
 (f) Availability of Power & Cooling: The Customer agrees not to exceed the amount(s) of aggregate power demand for the Customer’s physical space Services stated in the relevant Sales Order
Form(s) or addendum. For the purposes of this Agreement, aggregate power demand will be measured in volt-amp (VA) units and calculated by summing the current drawn (in amps) on each phase of each circuit supplying power to the Customer Provided
Equipment and then multiplying the resulting sum by 120 volts. For greater clarity, Q9 may require that the Customer obtain prior written authorization from Q9 before bringing Customer Provided Equipment into the Data Centre in order to ensure that
the Customer does not exceed the stated amount(s) of power demand. Upon Q9’s determination and written notice to the Customer that the Customer is exceeding the stated amount of power demand, the Customer shall, within four (4) hours of
Q9’s notice, comply with one of the following options as stipulated by Q9: (i) increase the stated amount of power demand to accommodate the Customer’s increased requirement (in accordance with Q9’s current rates and subject to
availability and maximum power and cooling density restrictions as determined in Q9’s sole discretion); or (ii) decrease the Customer’s actual power demand to a level at or below the stated amount of power demand. Until such time as
the Customer complies with one of the above noted options, the Customer acknowledges and agrees that the provisions of Q9’s Service Level Agreement with respect to power availability will not apply. In the event that the Customer is exceeding
the stated amount of power demand and until such time as the Customer complies with one of the above noted options, the Customer also authorizes Q9, pursuant to Section 3 of the Agreement and without notice or compensation to the Customer, to
lake such steps as Q9 deems necessary to protect the integrity of its business and systems, including without limitation, shutting off that portion of Q9’s power supply Services to the Customer required to decrease the Customer’s actual
power demand to a level at or below the stated amount of power demand. The Customer further acknowledges and agrees that additional power demand will be provided to the Customer on an “as available” basis and is not guaranteed to be
available to the Customer. 
 (f) Cooling of Customer Provided Equipment: For effective cooling of equipment, the Customer agrees to distribute all
Customer Provided Equipment uniformly throughout the Customer’s Space within each Q9 Data Centre. The Customer further acknowledges that the effectiveness of cooling Customer Provided Equipment is significantly impacted by the thermal design of
such equipment, the enclosure used, and the specific layout of equipment and associated airflow obstructions (such as cabling) within this enclosure. While Q9 will provide cooling capacity sufficient to effectively cool the Customer Provided
Equipment and will, on request, assist the Customer, at no cost, with designing an equipment layout that maximizes cooling effectiveness, no guarantee is provided that any given subset of Customer Provided Equipment can be cooled effectively in any
given enclosure. 
 6. Ownership and Intellectual Property. 
 (a) Ownership of Q9 and Customer Technology: This Agreement does not transfer from Q9 to the Customer any Q9 Technology, and all right, title and interest in and to Q9 Technology will remain solely with Q9. Nor does this Agreement
transfer from the Customer to Q9 any Customer Technology, and all right, title and interest in and to Customer Technology will remain solely with the Customer, Q9 and the Customer each agrees that it will not, directly or indirectly, reverse
engineer, decompile, disassemble or otherwise attempt to derive source code or other trade secrets from the other party. 
 (b) Q9 Intellectual Property:
All right, title, and interest in and to any derivatives, improvements, enhancements or extensions of Q9 Technology conceived, reduced to practice, or developed in connection with the Services during the term of this Agreement which are not
uniquely applicable to the Customer in that they may have general applicability in Q9’s business, and any copyrighted material or protectable ideas contained therein (the “Q9 Intellectual Property”), shall vest in and be the property
of Q9. The Customer agrees that it shall deliver to Q9 any and all documentation in its possession, as the case may be, relating to the Q9 intellectual Property (whether completed or in process) upon Q9’s request or in any event upon
termination of this Agreement. The Customer hereby assigns to Q9 any and all rights the Customer may have in the Q9 intellectual Property. The Customer shall not retain, use, or disclose any of the Q9 intellectual Property without Q9’s prior
written consent. If it is necessary for the Customer to join in or otherwise assist Q9 in the registration of any Q9 intellectual Property, the Customer shall, at Q9’s expense co-operate with Q9 and execute any and all documents deemed
necessary by Q9 to register, and otherwise protect end perfect Q9’s rights and interests in, the Q9 intellectual Property. 
 (c) Customer
Intellectual Property: All right, title, and interest in and to any derivatives, improvements, enhancements or extensions of the Customer’s Technology conceived, reduced to practice, or developed in connection with the Services during the
term of this Agreement which are not uniquely applicable to Q9 in that they may have general applicability in the Customer’s business, and any copyrighted material or protectable ideas contained therein (the “Customer Intellectual
Property”), shall vest in and be the property of the Customer. Q9 agrees that it shall deliver to the Customer any and all documentation in its possession, as the case may be, relating to the Customer intellectual Property (whether completed or
in process) upon Customer’s request or in any event upon termination of this Agreement. Q9 hereby assigns to the Customer any and all rights Q9 may have in the Customer intellectual Property. Q9 shall not retain, use, or disclose any of the
Customer intellectual Property without the Customer’s prior written consent. If it is necessary for Q9 to join in or otherwise assist the Customer in the registration of any Customer intellectual Property, Q9 shall, at the Customer’s
expense co-operate with the Customer and execute any and all documents deemed necessary by the Customer to register, and otherwise protect and perfect the Customer’s rights and interests in, the Customer Intellectual Property, 
 7. Insurance. 
 The Customer agrees to maintain, at the
Customer’s expense, during the entire time this Agreement is in effect, general liability and all risks insurance adequate to provide reasonable indemnity to the Customer and Q9 against liability for loss through bodily injury and/or death and
damage to property of others, as well as replacement cost coverage in respect of the Customer Provided Equipment. Q9 shall be named as an additional insured under the required insurance and in respect of vicarious liability only and the insurer
shall waive any subrogation or similar right against Q9 or any of Q9’s directors, officers, employees, contractors and agents. The Customer shall provide evidence of such insurance to Q9, promptly on demand. However, the Customer acknowledges
that Q9 has no obligation to the Customer to insure nor be responsible for any loss or damage to the Customer Provided Equipment or any other property of any kind owned, leased or supplied by the Customer or its employees, contractors and agents.

 At all times that Q9 performs Services under this Agreement, Q9 agrees that it shall maintain, at its own expense, general liability and all risks
insurance, to provide reasonable coverage for bodily injury and/or death and damage to property of others, as well as replacement cost coverage in respect of the Q9 Provided Equipment. Q9 shall provide the Customer with evidence of such insurance
promptly on demand. 
 8. Space Alterations. 
 The
Customer shall make no alterations or improvements to the Space prior to submitting all plans and specifications for such 
  

					
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 improvements to Q9 and receiving O9’s prior written consent. The Customer shall not employ any contractor to perform
such improvements unless previously approved in writing by Q9. All fixtures, alterations, improvements and/or appurtenances attached to or built into, on or about the Space shall be and remain part of the Space and shall not be removed by the
Customer (unless otherwise directed by Q9). Upon termination or expiration of this Agreement, the Customer shall promptly remove all Customer Provided Equipment (and other property as directed by Q9) and shall restore the Space to its condition
prior to the installation thereof, reasonable wear and tear excepted. Any Equipment or other property not so removed by the Customer may be removed and disposed of by Q9 and the Customer shall be liable for the cost of removal, disposal and
restoration of the Space. 
 9. Term and Termination. 
 The term of this Agreement (“Term”) commences on the first day that all of the Services are initially provisioned to the Customer by Q9 (the “Installation Date”), and continues for one year (or longer, as per the
relevant Sales Order Form). The Term automatically renews for one-year renewal periods absent contrary written notice provided at least thirty (30) days in advance. Termination for cause by Q9 may occur upon: (a) unremediated breach by
Customer of any material term or condition of this Agreement after three (3) days written notice; (b) the Customer’s failure to function as a going concern or operate in the ordinary course; (c) assignment by the Customer for the
benefit of creditors; (d) voluntary or involuntary bankruptcy filing by or against the Customer; or (e) breach by the Customer of the confidentiality restrictions in Section 13. Termination for cause by the Customer may occur upon:
(a) unremediated breach by Q9 of any material term or condition of this Agreement after three (3) days written notice; (b) Q9’s failure to function as a going concern or operate in the ordinary course; (c) assignment by Q9
for the benefit of creditors; (d) voluntary or involuntary bankruptcy filing by or against Q9; (e) breach by Q9 of the confidentiality restrictions in Section 13; (f) the occurrence of any circumstance in which the building in
which the Q9 Data Centre or the Space, or any substantial portion of any of them, or the means of access to same, are damaged or destroyed such that they are rendered unfit, as determined by the landlord of the Q9 Data Centre or the Space for use
pursuant to the terms hereof and/or are rendered inaccessible, or (g) breach by Q9 of the terms of the SLA. Except where early termination occurs due to lack of agreement on new pricing (Section 4), Force Majeure Event (Section 14 (f)) or for
cause as noted above, if the Customer terminates this Agreement prior to the end of the Term (as same may be renewed in accordance herewith), the Customer shall pay all amounts then due and unpaid plus a cancellation fee. The cancellation fee shall
be seventy-five percent (75%) of the Fees due during the then remaining Term of this Agreement, excepting all third party fibre or remote link Services for which the cancellation fee shall be the full amount of Q9’s third party
cancellation costs for said Services, to compensate Q9 for liquidated damages for early termination and not for penalty reasons. The cancellation fee shall also apply at Q9’s election upon its termination of this Agreement for the
Customer’s materiel breach of this Agreement, which includes late or non-payment of Fees for Services in accordance with section 4 hereof. The Customer agrees to pay any cancellation fee within ten days of any specified early termination event.
Customer acknowledges that the amounts payable pursuant to the preceding sentences herein are equitable compensation to Q9, and are intended to reasonably compensate Q9 for the losses which are occasioned by Customer’s failure to honour its
obligations hereunder and that the exact amount of damages is difficult or impractical to establish. However, Customer may terminate the Agreement upon thirty (30) days written notice without obligation, if, subject to the Service Level
Agreement, Customer experiences within a consecutive three (3) month period an aggregate of six (6) hours or more of any combination of network outage event(s) and/or eligible power loss event(s). In this regard, Customer shall only be
obligated to pay Q9 for Services up to the effective date of termination or when Q9 Services were last rendered. Q9 may terminate this Agreement, in its sole discretion and upon providing the Customer with reasonable prior written notice, if, acting
reasonably, it deems Customer’s Use of Services and operations within Q9’s Data Centre and Space to be detrimental to the business of Q9. 
 10.
Q9 Warranty and Disclaimer. 
 The Customer uses the Services entirely at the Customer’s own risk. Other than as expressly provided herein or in the
SLA, Q9 makes no warranty, express or implied, as to the Services including but not limited to any warranty or condition of merchantable quality or fitness for a particular purpose. The provision of any Service at a designated connection rate does
not guarantee end-to-end throughput at that rate. Routine maintenance and periodic system repairs, upgrades and reconfigurations may result in temporary impairment or interruption in Service. As a result, Q9 reserves the right, from time to time, to
temporarily reduce or suspend Service subject to the terms and conditions of Q9’s Service Level Agreement. Nevertheless, and subject to the limitations contained herein, Q9 warrants as follows: (i) that the Q9 Data Centre, Space and the
Services will, in all material respects, conform to the requirements of the Service Level Agreement and Sales Order Form(s), as well as to any other applicable terms and conditions contained in this Agreement; (ii) that all Services provided
hereunder shall be provided in conformance and compliance with applicable federal, provincial and local laws, administrative and regulatory requirements and requirements of any other authorities having jurisdiction over the subject matter of this
Agreement and it shall be responsible for applying for, obtaining and maintaining all registrations and certifications which may be required by such authorities; and (iii) that the Services shall be performed by qualified personnel in a
professional manner and in accordance with reasonably applicable industry standards., The Customer’s sole and exclusive remedy for breach of the above warranties or any claim related to the Services shall be repair or replacement of the
Services in accordance with the Service Level Agreement and Q9’s operational procedures and Data Centre rules and guidelines as currently in effect, or termination pursuant to Section 9 above. WITH RESPECT TO THE SERVICES, ANY EQUIPMENT
AND/OR THE SUBJECT MATTER OF THIS AGREEMENT, THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, OR CONDITIONS EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABLE QUALITY AND
FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. 
 11. Limitation of Liability. 
 For any claim arising under or related to the Services or this Agreement, each party’s damages or recovery shall be limited to those actually proven as directly
attributable to the negligence of the other party, subject to the following limitations set out in this Section 11. Neither party shall be liable to the other party under any circumstances for any indirect, incidental, reliance, special,
punitive or consequential damages including, but not limited to, lost profits, lost opportunities, even if the other party has been advised of the possibility of such damages. Neither party shall in any event be liable to the other party for an
amount greater than the amount paid by the Customer to Q9 for the Services in the eighteen (18) months prior to notice of the claim under which damage is claimed or if this Agreement has been in force less than six months, the amount paid by
the Customer in such lesser period. Except for the foregoing provision, Q9 shall not be liable, either in contract, tort, warranty, strict liability, negligence or under any statute, regulation or any other theory for any losses or damages resulting
from (i) unauthorized access, alteration, theft, corruption, or destruction of or to the Customer’s or its customer’s or end user’s computer files, databases, network, transmission facilities or equipment; or (ii) the
content, accuracy or quality of the data transmitted through the Services. 
 12. Indemnity. 
 The Customer will indemnify and save Q9, its affiliates, officers and directors, harmless from and against all loss, liability, damage and expense, including reasonable
legal fees, caused by the negligent or willful acts or omissions of Customer’s officers, employees, agents, 
  

					
	Confidential	 	- 5 -	 	

 vendors or contractors and arising from claims or demands: (a) for damages to property or for injury or death to
persons, including without limitation any disability, death or Worker’s Compensation benefits; (b) from data transmitted, received or stored on or over Q9’s network by or through the Customer in violation of the provisions of
Section 14 (b) and Section 14 (c) below; (c) from the Customer’s violation of the provisions of Section 3 above or breach of any material provision of this Agreement; (d) for any damages or loss incurred
directly by Q9 as a result of a failure of any Customer Provided Equipment installed within the Q9 Data Centre or Space, including, but not limited to, failures resulting in fire, electrical malfunction, and heat and/or water damage, even when such
Customer Provided Equipment was installed with the permission or assistance of Q9; (e) of infringement of a third party’s proprietary rights based upon any information, materials or access to property provided by the Customer; or
(f) out of or relating to the conduct of the Customer’s business, including without limitation, claims by any customer or end user of the Customer’s products or services 
 Q9 will indemnify and save Customer, its affiliates, officers and directors, harmless from and against all loss, liability, damage and expense, including reasonable legal fees, either (a) caused by the
negligent or willful acts or omissions of Q9’s officers, employees, agents, vendors or contractors and arising from claims or demands; or (b) for damages to property or for injury or death to persons, including without limitation any
disability, death or Worker’s Compensation benefits; or (c) from Q9’s breach of any material term of this Agreement. 
 The above
Indemnities shall survive the termination of the Agreement. 
 13. Confidentiality. 
 In connection with this Agreement, a party might obtain information of the other party which is confidential or proprietary in nature (“Confidential information”). As it relates to each party, respectively,
such Confidential Information shall include, without limitation: (a) any specifications, protocols, configurations and routing data related to the Q9 Data Centre facilities, technology and network services or any of the Customer’s
specifications, protocols, configurations, technology and application software; (b) any processes, methods, ideas, techniques, drawings, works of authorship, inventions, know-how, software, algorithms and formulae related to the products or
services of Q9 or the Customer; (c) information concerning research, development, financials, procurement, pricing, customer lists, customer service specifications, investors, employees, third party relationships, forecasts and marketing plans
of Q9 or the Customer; (d) any other information or material that is proprietary to Q9 or the Customer; and (e) any other information that is marked confidential, restricted, proprietary or with a similar designation whether written or
oral. Such information shall be deemed Confidential information, whether or not described as such at the time of communication. The parties agree: (i) to take all reasonable steps necessary to maintain the confidentiality of any such
Confidential information, and not to disclose such Confidential information without the other party’s prior written consent; (ii) to not use or copy any Confidential information for any purpose other than in direct furtherance of the
purposes of this Agreement; and (iii) that their obligations under this Section 13 shall survive the termination of this Agreement for a period of three (3) years. Notwithstanding the foregoing, each party’s confidentiality
obligations shall not apply to the extent that disclosed Confidential information: (1) is already known to the other party without an obligation of confidentiality; (2) becomes publicly available through no fault of the other party;
(3) is received from a third party rightfully and without restriction; (4) is independently developed without exposure to the Confidential information; or (5) is required to be disclosed by law, provided the non-disclosing party is
provided reasonable notice prior to the disclosure and the disclosing party reasonably cooperates in any attempt by the non-disclosing party to quash the legal requirement or otherwise prevent disclosure of its Confidential information through legal
means. The terms and conditions of this Agreement shall be deemed to be Confidential information, 
 14. Miscellaneous. 
 (a) Notice: Unless otherwise provided, any notice pursuant to this Agreement shall be in writing and shall be delivered, sent by fax or by e-mail to: 

(i) Q9 at its address or fax number shown on a Sales Order Form or to such other address, fax number or e-mail address of which Q9 may notify the
Customer; and 
 (ii) the Customer’s address, fax number or e-mail address as maintained by Q9 in its customer records database from
time to time. Notice shall be deemed given on the first business day after it is delivered, sent by fax or by e-mail. For the purposes of notice, a business day shall be a day on which chartered banks are open for business in the place in which the
recipient of the notice is located. 
 (b) Policy Statement: The Customer will observe all generally accepted customs and practices of the Internet
(known as “netiquette”). By way of illustrations but not limitation, the Customer agrees not to: 
 (i) carry out unsolicited mass
e-mail (“spam”) or Usenet advertising campaigns; 
 (ii) harvest e-mail addresses or other confidential information for any
purpose, including re-sale; 
 (iii) engage in any activity which could cause loss or degradation of service to other Q9 customers or
internet users; 
 (iv) compromise the security or integrity of others’ computer systems of software; or 
 (v) misrepresent or impersonate other internet users. 
 If Q9
detects or is advised of any use of the Services in contravention of this or any future comparable provision of this policy statement, the Customer authorizes Q9, without notice or compensation to the Customer, to take such steps as Q9 deems
necessary to protect the integrity of Q9’s business and systems including, without limitation, placing filters on routers serving the Customer or ceasing to deliver some or all of the Services. 
 (c) Re-Sale: Unless a Sales Order Form specifically provides for Re-Sale, no Re-Sale of the Services may be made. 
 (d) Assignment: This Agreement is for the benefit of and shall be binding upon the parties and their respective successors and permitted assigns. The Customer
shall neither assign, delegate nor transfer its rights or duties under this Agreement without Q9’s prior written consent, except that the Customer may assign and transfer this Agreement to any parent company, company under its or any common
ownership or control, where ownership or control is represented by ownership of at least fifty-percent of an entity’s equity or voting securities or shares, or any company which acquires all or substantially all of the assets of the Customer.
Q9 may neither assign, delegate nor transfer its rights or duties under this Agreement without providing prior written notice to the Customer, except that Q9 may assign and transfer this Agreement to any parent company, company under its or any
common ownership or control, where ownership or control is represented by ownership of at least fifty-percent of an entity’s equity or voting securities or shares, or any company which acquires all or substantially all of the assets of Q9.

 (e) Waiver: No waiver of any part of this Agreement or Schedules, inclusive of any violation or breach, shall be deemed to be a waiver of any other
provision of this Agreement or be deemed to be a waiver of any subsequent violation or breach. No waiver is to be interpreted as a continuing waiver unless agreed to in writing by the parties. 
 (f) Force Majeure Event: Except as provided for in the Q9 Service Level Agreement, the parties shall not be liable for any delay or failure in performance due to
war, riots, embargoes, strikescasualties, accidentsfire, earthquake, flood, acts of God, supplier or vendor failure or other occurrence beyond the party’s direct control (each, a “Force Majeure Event”). The parties shall notify the
other party of a Force Majeure Event and if a Force Majeure Event continues for more than fifteen (15) days, Q9 or the Customer may cancel this Agreement with no further liability (except for any amounts due and not paid by the Customer up to
the date of commencement of the Force Majoure Event) as a result of such Force Majoure Event. 
  

					
	Confidential	 	- 6 -	 	

 (g) Accurate Information: The Customer represents, warrants and agrees that it will provide to Q9 accurate and
reliable information with respect to Q9’s Customer information Form and all other information requested or required by Q9 for the purpose of fulfilling its obligations under this Agreement. 
 (h) Non-Solicitation: During the Term of this Agreement and continuing through the first anniversary of the termination of this Agreement, the Customer agrees
that it will not, and will ensure that its affiliates do not, directly or indirectly, solicit or attempt to solicit for employment any persons employed by Q9 or contracted by Q9 to provide Services to the Customer. 
 (i) Domain Names: If Q9 ceases to provide the Services, the Customer acknowledges its responsibility to immediately arrange for the transfer of all domain names
to another Q9 service or to new name servers and that Q9 shall be under no obligation pursuant to this Agreement to continue to provide such servers to the Customer.  
 (j) IP Addresses: The Customer acknowledges that all IP addresses assigned by Q9 to the Customer in connection with the Services remain the property of Q9 and all use thereof shall be surrendered by the
Customer on termination of this Agreement. 
 (k) Complete Agreement: This Agreement is the entire and complete Agreement between the parties with
respect to the Services and subject matter hereof and supersedes any prior or contemporaneous agreements or understandings between the parties, whether written or oral, and may not be modified in any way unless by means of written addendum, signed
and dated by the duty authorized representatives of the parties. In the event of any conflict between these Master Terms and Conditions and any Schedules or attachments, these Master Terms and Conditions shall control unless expressly stated to the
contrary. Any provision hereof that contemplates continuing obligations on a party shall survive the expiration or termination of this Agreement. 
 (l)
Severability: If any portion of this Agreement is found to be invalid, illegal or unenforceable by a court of competent Jurisdiction, the remaining provisions shall remain in effect and the parties shall immediately begin negotiations to replace
any invalid, illegal or unenforceable portions that are essential parts of this Agreement. 
 (m) Counterparts: This Agreement may be executed in two
or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. In making proof of this Agreement, It shall not be necessary to produce or account for more than one such
counterpart. A facsimile signature shall constitute a valid and binding signature with the same effect as if it were an original signature endorsed on this Agreement. 
 The Customer acknowledges that it has read, understands and agrees to Q9’s Master Terms and Conditions as set out herein which will govern all services provided by Q9. 
 IN WITNESS WHEREOF the parties have executed this Agreement by and through their duly authorized representatives as of the Effective Date. 
  

									
	SIGNED, SEALED AND AGREED TO BY:	 		 		 	
				
	Q9 Networks Inc.	 		 	Customer:	 	Yak Communications (Canada) Inc.
					
	Signature:	 	 /s/ DAVID RALSTON
	 		 	Signature:	 	 /s/ VALERIE FERRARO

	Name:	 	DAVID RALSTON	 		 	Name:	 	VALERIE FERRARO
	Title:	 	VP - SALES	 		 	Title:	 	PRESIDENT

  

					
	Confidential	 	- 7 -Settlement Agreement with Digital Way S.A. dated July 25, 2005

 Exhibit 10.12 
 SETTLEMENT AGREEMENT 
 This Agreement is made as of this 25th day of July, 2005, by and between YAK COMMUNICATIONS INC., a Florida corporation (“Yak”), YAK COMMUNICATIONS (CANADA), INC., a Canadian
corporation (“Yak Canada”) and DIGITAL WAY, S.A., a company organized under the laws of Peru (“DWSA”). Yak, Yak Canada and DWSA are collectively referred to herein as the “Parties.” 
 RECITALS 
 WHEREAS, Yak and DWSA
entered into that certain Commercial Services and Marketing Agreement, dated as of November 12, 2002 (the “CSM Agreement”) and Yak Canada and DWSA entered into that certain Telecommunications Services and Disbursement Agreement, dated
as of November 12, 2002 (the “TSD Agreement” and together with the CSM Agreement, the “Principal Agreement”); 
 WHEREAS,
pursuant to the terms and conditions of the Principal Agreements, a venture was formed whereby the parties would establish a “Dial Around” and/or “Call by Call” telecommunications business in Lima, Peru (the “Venture”);

 WHEREAS, subsequent to the execution of the Principal Agreements the Parties entered into various additional agreements with respect to the Venture
including, without limitation, Guaranty Agreement, Sweep Agreement, Mortgage Agreement, Collateral Assignment of Contracts, Pledge Agreement each dated as of April 28, 2003, Acknowledgment of Obligations dated July 16, 2003, Trust
Management Agreement entered into by the Parties and Banco Sudamericano dated November 19, 2003 and Agreement dated January 28, 2005, along with all other documents entered into by the Parties relating to or arising from the Venture
(collectively, the “Ancillary Documents”); 
 WHEREAS, as of April 13, 2005 the Venture has been terminated and the Parties have
proceeded to wind down its operations; and 
 WHEREAS, the Parties desire to set settle all matters with respect to Venture and the relationship of
the Parties pursuant to terms and conditions contained herein. 
 NOW THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree that the foregoing preliminary statements are true and correct and further agree as follows: 
 AGREEMENT 
 1.
Recitals. The foregoing recitals are true and correct and are hereby incorporated herein by this reference. 

 2. Settlement Terms. The Parties agree as follows: 
 (a) Upon the execution of this Agreement, the Principal Agreements and the Ancillary Documents shall be terminated and shall be deemed null and void with
no further effect and the Parties shall have no further obligations or rights thereunder. 
 (b) Upon the execution of this Agreement,
ownership of the telecommunications equipment described in Schedule “A” attached hereto (the “Equipment”) shall be transferred to DWSA. Yak shall take such action as may be necessary or appropriate to vest in DWSA good and valid
title to the Equipment. The Equipment is transferred to DWSA on an “AS IS, WHERE IS” basis and neither Yak nor Yak Canada makes any representations or warrantees as to the condition of the Equipment or its fitness of use. 
 3. Representations, Warranties and Acknowledgments of the Parties. Each of the Parties hereby acknowledges, represents, warrants, covenants
and agrees as hereinafter set forth: 
 (a) Each of the Parties has full power and authority to enter into this Agreement and to carry out the
transactions contemplated hereby. This Agreement constitutes the legal, valid and binding obligation of each of the Parties enforceable in accordance with its terms. Neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby requires the approval or consent of any third party, whether governmental or otherwise. 
 (b) The
execution, delivery and performance of this Agreement and the transactions contemplated by this Agreement will not conflict with, or constitute or result in a breach, default or violation of (i) any law, ordinance, regulation or rule applicable
to any of the Parties; (ii) any order, judgment, injunction or other decree by which any of the Parties is bound; or (iii) any written or oral contract, agreement, or commitment to which any of the Parties is a party. 
 (c) The representations and warranties contained in this section do not contain any untrue statement of a material fact or omit to state a material fact
required or necessary to be stated therein to make the statements made therein, in light of the circumstances in which they were made, not misleading. 
 4. Mutual Release. In consideration of the provisions hereof, each of the Parties, for and on behalf of itself and its attorneys, officers, directors, shareholders, employees, representatives, agents,
predecessors, successors, assigns, Affiliates, subsidiaries and related entities (collectively, the “Releasing Parties”), does hereby agree to unconditionally and irrevocably waive, remise, acquit, satisfy, release and forever discharge
the other Parties, and their respective attorneys, officers, directors, shareholders, employees, representatives, agents, predecessors, successors, assigns, Affiliates, subsidiaries and related entities (collectively, the “Released
Parties”), of and from any and all claims, demands, dues, sums of money, reckonings, bonds, bills, specialties, agreements, contracts, covenants, actions, suits, causes of action, 
  

 2 

 obligations, controversies, promises, variances, trespasses, executions, debts, costs, expenses, accounts, damages,
judgments, losses and liabilities, of whatever kind or nature, in law, equity or otherwise, whether known or unknown, whether or not concealed or hidden, absolute or contingent, liquidated or unliquidated, which any of the Releasing Parties, had,
may have had, now have or can, shall or may have against each of the Released Parties, for upon or by reason of any matter, cause or thing whatsoever relating to or otherwise associated with the Venture, from the beginning of the world until and
including the time and date hereof. Notwithstanding the foregoing, nothing herein shall be deemed to release any of the Released Parties from any of the obligations of the Released Parties (or any claims arising by virtue of the Released Parties
breach of any such obligations) under the terms of this Agreement. Each of the Releasing Parties represents that it has not previously sold, transferred, conveyed, exchanged, or otherwise disposed of any claims it may have against any of the
Released Parties. 
 5. Survival and Indemnification. 
 (a) The representations, warranties, covenants and agreements contained herein to be performed or complied with after the closing of the transactions
contemplated hereby shall survive without limitation as to time, unless the covenant or agreement specifies a term, in which case such covenant or agreement shall survive until the expiration of such specified term. 
 (b) From and after the closing of the transactions contemplated hereby, each Party shall indemnify, defend and hold harmless the other (the party seeking
indemnification being referred to as the “Indemnified Party”) from, against and in respect of any and all claims, losses, liabilities and damages, including, without limitation, amounts paid in settlement, reasonable costs of investigation
and reasonable fees and disbursements of counsel (whether at the pre-trial, trial or appellate levels) which the Indemnified Party shall suffer, sustain or become subject to by virtue of or which arises our of, or results from the breach of any
representation, warranty, covenant or agreement, set fourth in this Agreement or contained in any instrument or certificate delivered pursuant hereto. To the extent incurred prior to a settlement or conclusion of any litigation arising hereunder,
such reasonable costs and fees shall be paid by the Indemnifying Party as incurred by the Indemnified party. Without limiting the foregoing, DWSA agree that the foregoing agreement to defend and indemnify Yak and Yak Canada shall include, without
limitation, any and all claims, losses, liabilities and damages which Yak or Yak Canada may suffer, incur, sustain or become subject to as a result of any pending or anticipated legal proceeding brought against any of the Parties arising from the
operations of the Venture in Peru including, without limitation, any claim instituted by any third party service provider (including, without limitation, IMPSAT, Telefonica de Peru and Banco Sudamericano) engaged by DWSA in connection with the
Venture. 
 (c) The Indemnified Party shall promptly provide the Indemnifying Party with the Indemnification Notice, specifying in detail the
basis of such claim, the facts pertaining thereto and, if known, the amount, or an estimate of the amount, of the liability arising therefrom. The Indemnified Party shall provide to the Indemnifying Party as promptly as practicable thereafter all
information and documentation necessary to support and verify the 
  

 3 

 claim asserted and the Indemnifying Party shall be given reasonable access to all books and records in the possession or
control of the Indemnified Party or any of its affiliates which the Indemnifying Party reasonably determines to be related to such claim. 
 6. Injunction. It is recognized and hereby acknowledged by the Parties hereto that a breach by any Party of any of the covenants contained herein will cause irreparable harm and damage to the non-breaching Parties, the
monetary amount of which may be virtually impossible to ascertain. As a result, each of the Parties recognize and hereby acknowledge that in the event of a breach the non-breaching Parties shall be entitled to an injunction from any court of
competent jurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Agreement and that such right to injunction shall be cumulative and in addition to whatever other remedies the Parties may possess
hereunder or pursuant to applicable law. 
 7. Litigation. If any legal action is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this Agreement or the transactions contemplated hereby, the successful or prevailing Party or Parties shall be entitled to
recover reasonable attorney fees, paralegal fees and other costs incurred in that action or proceeding, in addition to any other relief to which it or they may be entitled. The Parties hereby agree that any such legal action shall be brought in a
court of competent jurisdiction in Miami-Dade County, Florida. 
 8. Governing Law. This Agreement shall be interpreted,
construed and governed by and under the laws of the State of Florida and any dispute hereunder must be commenced in Miami-Dade County, Florida. 
 9. Severability. If any provision or clause of this Agreement is held to be invalid by a court of competent jurisdiction, then such provision shall be severed herefrom and such invalidity shall not affect any other provision
of this Agreement, the balance of which shall remain and have its intended full force and effect. However, if such invalid or unenforceable provision would have been valid and enforceable if it had been restricted to a shorter time or narrow
geographic territory, then such time and territory shall be deemed reduced to the maximum time and territory enforceable by law. 
 10.
Headings. The headings and titles of the sections of this Agreement are not a part of this Agreement but are for convenience only and are not intended to define, limit or construe the contents of the various paragraphs. 
 11. Entire Agreement; Amendment. This Agreement, upon execution by all of the Parties, sets forth the entire understanding of the Parties
hereto and supersedes all prior agreements, whether oral or written, pertaining to the subject matter hereof. No provision of this Agreement shall be modified except by a written instrument duly signed and acknowledged by each of the Parties hereto.

 12. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and
all of which together shall constitute one and the same agreement. 
  

 4 

 13. No Interpretive Presumption Based on Drafting. The drafting and negotiation of this
Agreement has been participated in by each of the Parties hereto for all purposes and this Agreement shall be deemed to have been drafted equally and jointly by each of said Parties. All Parties have been advised and have had the opportunity to
consult with and have this Agreement reviewed by separate and independent counsel prior to the execution hereof and by each party’s execution and delivery of this Agreement such party shall be deemed to either have had such a review or to
voluntarily waive such review. The Parties acknowledge that they have executed this Agreement only after due consideration and they were not coerced or intimidated to execute this Agreement, and that in executing this Agreement, the Parties and
their respective counsel have not relied upon any oral or written statements or acts made by any other party other than as expressly set forth in this Agreement. 
 14. Confidentiality of Agreement. At all times following the date of the execution of this Agreement, the Parties hereby agree to hold in strict confidence the existence of this Agreement as well as all
business and other information relating to the terms and provisions of this Agreement and, except as otherwise required by law, or in connection with an action brought to enforce this Agreement, or as to information which becomes publicly available
other than from the Parties, not to disclose or otherwise reveal the existence of this Agreement or any information contained herein to any other person or entity (except for their respective attorneys and accountants) without, in each instance, the
prior written consent of the non-disclosing party. 
 15. No Third Party Beneficiaries. Except as specifically provided herein,
nothing contained in this Agreement shall be deemed to create any benefit, obligation or contractual relationship between one or more of the Parties hereto and any third party; nor shall anything contained in this Agreement be deemed to give any
third party any claim or right of action against any party hereto which does not otherwise exist without regard to this Agreement. 
 16.
Additional Acts. The Parties shall execute and deliver any other instruments or documents and take any further actions after the execution of this Agreement, which may be reasonably required for the implementation of this Agreement and
the transactions contemplated hereby. 
 17. Binding Effect. This Agreement will be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. 
 18. Expiration. In the event that this Agreement
is not fully executed by the Parties on or prior to 5:00 PM EST, Monday, July 25, 2005, this Agreement will expire with no further force and effect. 
 [Signatures Begin on Following Page] 
  

 5 

 IN WITNESS WHEREOF, the Parties hereto have each executed and delivered this Agreement as of the
day and year first above written. 
  

			
	YAK COMMUNICATIONS INC.
		
	By:	 	 /s/ Charles Zwebner

		 	Charles Zwebner
		 	Chief Executive Officer
	
	YAK COMMUNICATIONS (CANADA) INC.
		
	By:	 	 /s/ Charles Zwebner

		 	Charles Zwebner
		 	Chief Executive Officer
	
	DIGITAL WAY, S.A.
		
	By:	 	 /s/ Jose A. de Izcue

		 	Jose A. de Izcue
		 	Managing Director

  

 6 

 SCHEDULE A 
 Description of Equipment 
  

	
	 Description

	1 Gateways Cisco AS5300/4 E1s
	1 Gateways Cisco AS5300/4 E1s
	1 Router (in Impsat)
	Cable Serial Central to Server
	1 IVR for Call Centre with EI card and hardware from Canada
	Racks-Equipment YDW in DW
	Additional Energy Source
	Cards E y M with Installation
	1 SQL Server 2000 – English
	1 HP Proliant ML370G3 Server
	5 PCs P4 2.4 Ghz WIN XP
	1 Meridian Switchboard Option 11
	5 Headsets
	Linksys 16 ports 10/100
	1 Netscreen 5XT Firewall
	1 Laser Printer
	Adaption of 5 cubicles
	Cabling - Terminals & additional Phones
	Cables for Switchboard
	IBM Hard Drive (for call center)

  

 7

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