1. Terms

2. Plans

3. Personal Info

4. Summary

5. Confirmation

babyTEL Terms of Use This agreement for Voice over Internet Protocol (VoIP) and related Services ("Agreement") is between babyTEL, a division of Voice & Data Systems Inc., a Canadian corporation ("we", "us" or "babyTEL") and the user ("you", "user" or "Customer") of babyTEL's Service. 1- DEFINITIONS Device - any devices including any of its components, such as analog telephone adapter, IP phone, Softphone or any other IP connection device. Service -The Service provides a VoIP telephone connection, and all other related services such as voicemail, that allows you to make or receive telephone calls over the Internet to or from the public switched telephone network (PSTN). You can make or receive calls with other babyTEL subscribers entirely over the Internet. 2- PREAMBLE You represent that you are of legal age to enter this Agreement. This Agreement governs the terms and conditions of both the use of the Service provided, and the Devices used in conjunction with the Service. By activating the Service and by clicking "I Accept" below, you acknowledge that you have read, understood, and agree to be bound by the terms and conditions of this Agreement. 3- TERM The Service is offered on a monthly basis for a term that begins on the earlier of the date you activate your account online or 10 days after the date your account was created (herein referred to as the "Anniversary Date") and ends on the day before the same date in the following month. This Agreement will automatically renew on a monthly basis for subsequent terms without further action by you unless you provide babyTEL with written notice of non-renewal not less than ten [10] days prior to the end of the monthly term in which the notice is given. You agree that you are purchasing the Service for full monthly terms, meaning that if you terminate the Service prior to the end of a monthly term, you will be responsible for the full month's charges to the end of the then-current term, including without limitation unbilled charges, plus a disconnect fee (if applicable), all of which immediately become due and payable. Upon expiration of the term or termination of the Service you remain responsible for paying all unpaid and accrued charges due. 4- USER REQUIREMENTS To use the Service, the user must have a high-speed Internet link as provided via cable, DSL or Ethernet. Typical bandwidth required for a voice call is 14Kbps. However you may require up to 90Kbps in some circumstances. A Device procured from babyTEL is also required. In the case of a babyTEL Softphone Device the user must also have a computer. Also you may elect to connect via a Router. You assume all responsibility regarding the suitability of the router, programming of the router, and connection to the Internet and its ability to carry the voice traffic. 5- USE OF SERVICE 5.1- The Service and Device are provided to you for your personal and/or business use on an AS-IS basis. This also means that you are not to resell or transfer the Service or the Device to any other person for any purpose, or make any charge for the use of the Service, without express written permission from babyTEL in advance. 5.2- Pay-As-You-Go Plan: For users who have subscribed to babyTEL's Pay-As-You-Go plan, you will be charged at the rates indicated on the babyTEL website (www.babytel.ca) for all calls including incoming calls, outgoing calls and calls to voicemail. 5.3- Residential Packages: For users who have subscribed to babyTEL's Residential Package which include either unlimited local usage or unlimited long distance usage, the Service and Device are provided to you, as a residential user, for your personal, residential, non-business and non-professional use. As such you cannot use the Service or the Device for any other purpose, including without limitation, for any commercial or governmental activities, profit-making or non-profit, home office, business, sales, tele-commuting, telemarketing, autodialing, continuous or extensive call forwarding, fax broadcast, voice blasting, prolonged calls or any other activity that would be inconsistent with normal babyTEL residential usage patterns. You agree that your use of the Service and/or Device, or the use of the Service and/or Device provided to you by any other person for any commercial or governmental purpose will obligate you to pay babyTEL's higher rates for commercial service on account of all periods, including past periods, in which you use, or used, the Service for commercial or governmental purposes 5.4 Small Business Use of Service and Device - Prohibition on Resale If you have subscribed to babyTEL's Small Business services, the Service and Device are provided to you as a small business user. This means that you are not to resell or transfer the service or device to any other person for any purpose, without express written permission from babyTEL in advance. You agree that the babyTEL Small Business Plans do not confer the right to use the service for auto-dialing, continuous or extensive call forwarding, telemarketing (including without limitation charitable or political solicitation or polling), fax broadcasting or fax blasting. babyTEL reserves the right to immediately terminate or modify the Service, if babyTEL determines, in its sole discretion, that Customer's Service is being used for any of the aforementioned activities. 5.5- All Packages: You may allow other individuals in your household or office to use the Service. However you are fully responsible for their compliance with this agreement and for payment of all charges relating to their use of the Service. Users may only make one simultaneous call per account. You agree that your use of the Service to make more than one simultaneous call will obligate you to pay babyTEL for additional accounts on account of all periods, including past periods, in which you made simultaneous calls. . babyTEL reserves the right to immediately terminate or modify the Service, if babyTEL determines, in its sole discretion, that Customer's Service is being used in a manner that is in default of any of the terms of this Agreement. 5.6- 'Canadian-Village' Calls: Calls made by you to non-babyTEL subscribers will be a 'Canadian-Village' call if the telephone number being called is one of the cities listed in babyTEL's 'Canadian Village' and found at Schedule A of this Agreement. All calls (other than calls to babyTEL subscribers) will be considered long distance calls and will be charged to you at the applicable rates stipulated on the babyTEL website. 5.7- 411 Service: This service is available and will be billed to you at rates established by babyTEL and which can be changed from time to time without notice at babyTEL's sole discretion. Rates are posted on the babyTEL web site (www.babytel.ca). 6- USE POLICY AND PROHIBITIONS: 6.1- You agree to abide by the following policy concerning use, as may be modified from time to time and communicated to you via the babyTEL website, by email or otherwise. By using the Service you (a) shall abide by all applicable laws, rules, and regulations relating to, without limitation, the electronic use, posting or transmission of content, software or other matter; and (b) shall not (nor allow any person to) (i) use the Service or the babyTEL Website in any manner which is illegal, fraudulent or deceptive, harassing, threatening, harmful, libelous, defamatory, abusive, slanderous, hateful, sexually, racially or ethnically objectionable, vulgar, pornographic, obscene, or otherwise objectionable material of any kind including but not limited to any material that encourages conduct that would constitute a criminal offense, give rise to a civil liability, or otherwise violate any applicable local, provincial, state, national or international law; (ii) attempt to gain unauthorized access to the babyTEL database or other babyTEL network or computer systems; or (iii) interfere with another's use and enjoyment of the babyTEL Services. Furthermore, you may not, nor may you allow others, directly or indirectly, to attempt to or actually: (a) disrupt, disable, impair or interfere with, overburden, alter or modify the Service or restrict or inhibit in any way any other visitor or user from accessing or using the Service, including, without limitation, by means of "hacking", "cracking" or defacing any portion of the Service, the Device and/or any activities being conducted on or through the Service; (b) transmit any software, device, routine or other materials that contain any virus, worm, time bomb, "Trojan horse", or other harmful, destructive or disruptive component; (c) use any robot, spider, site search/retrieval application, or other manual or automated device or process to retrieve, index, "data mine" or in any way reproduce or circumvent the navigational structure or presentation of the Service; or (d) collect or harvest any information about other visitors or users of the Service and/or any of babyTEL's employees, officers, directors, partners, representatives, agents or content providers by any means including, but not limited to, those described in this Agreement. You may not, nor may you allow others, directly or indirectly, to obtain or attempt to obtain any materials or information through any means not made expressly available through the Service. Without limitation, babyTEL reserves the right to terminate your Service immediately, resulting in the immediate payment of all amounts due, without advance notice if you violate the above restriction. Further, you will be liable to babyTEL and other third parties that suffer prejudice from your unauthorized use of the Service. 6.2- Unauthorized Use: You agree to immediately notify babyTEL of any unauthorized use of your account or any other breach of security known to you. 6.3- Use of Device: You agree that the Device is exclusively for use in connection with the Service. You agree not to tamper with the Device in any manner, including, without limitation, change the electronic serial number or Device identifier, or to perform a factory reset, or otherwise alter the firmware. 6.4- Stolen Device: You must notify babyTEL immediately, in writing by email, or by calling the babyTEL customer support line, if a Device is stolen. When you call or write you must provide your account number and a detailed description of the circumstances of the theft or fraudulent use of the Device. 6.5- Use of software: Any software made available to you by babyTEL is governed by these Terms of Service and the terms set forth in the applicable end user license agreement. You may not reverse engineer, decompile or otherwise attempt to discover the source code of the software available on the Website. Without limiting the foregoing, copying or reproduction of the software to any other server or location for further reproduction or redistribution is expressly prohibited. 7- SERVICE LIMITATIONS 7.1- Use of Service and Device by Customers Outside the United States and Canada: babyTEL does not presently offer or support the Service to customers located outside the United States and Canada. If a Device is installed outside the United States and Canada and the Service is used, there is the risk that such activity violates laws in the country where you do so. You are liable for any and all use of the Service and/or Device by any person making use of the Service or Device provided to you. babyTEL accepts no liability. Further, babyTEL reserves the right, at its discretion, to limit or terminate your ability to access the Service from selected countries. 7.2- 900 and 976 numbers: babyTEL Services may not access certain special service phone numbers such as, without limitation, 900- and 976- numbers. babyTEL reserves the right to limit your ability to call any such numbers at its sole discretion. 7.3- Service Outage or deterioration due to third parties: You acknowledge and understand that the Service will not operate in the event of a power failure, or a failure of the Internet link. Excessive congestion of the Internet link may lead to deterioration in quality, which in turn can lead to Service failure. 7.4- Service Outage Due to Suspension of Account: You acknowledge and understand that should your account be suspended due to non-payment or other breaches of this Agreement, the Service will not function. 7.5- Not a traditional telephone service: You recognize, acknowledge and understand that the Service is not a traditional telephone service. Differences exist between traditional telephone service and the babyTEL Service including but not limited to the lack of traditional 911 services and privacy, as explained below. The Service is subject to a different regulatory treatment than traditional phone services and may limit or affect your rights of redress before the CRTC. 7.6- Privacy: babyTEL Service utilizes, in whole or in part, the public Internet and third party networks to transmit voice and other communications. babyTEL is not liable for any lack of privacy, which may result by the use of the Service. Please refer to our Privacy Statement at www.babytel.ca for additional information. 8- EMERGENCY SERVICES - 911 DIALING babyTEL's Emergency Calling Service: 911 Nomadic VoIP Service As a current customer of Nucleus Inc. & babyTEL (a division of Voice & Data Systems Inc.) ('babyTEL') or a future customer of babyTEL, you have subscribed or will subscribe to a Voice over Internet Protocol ('VoIP') telephone service offered by babyTEL according to babyTEL's terms and conditions of service ('VoIP Service'). The VoIP Service that we provide is known as a nomadic service. This means that babyTEL allows you, the customer, to make calls from anywhere that you have access to a broadband internet service. As you know, you can simply bring your telephone devices with you and use the VoIP Service wherever you are located. However, because of these nomadic capabilities, babyTEL is not currently able to automatically detect whether the service is being used from the registered service address or from some other location. Consequently, when a subscriber relocates, babyTEL no longer has valid 9-1-1 routing or ALI information with which to process 9-1-1 calls from that customer, unless the customer updates his/her location information. babyTEL's 911 Service Following the directives made by the Canadian Radio-television and Telecommunication Commission ('CRTC') pursuant to Telecom Decision CRTC 2005-21, babyTEL has, in compliance with such directives, implemented an emergency calling service or 911 service ('911 Service'). In order to use the 911 Service, you will need to activate it according to the instructions you are provided, and which can be found at www.nucleus.com/voip/faq12.html. Once the 911 Service is activated, all calls by the customer using the 911 Service will be connected to an intermediary (such as a third party call centre), which in turn will transfer the call to the proper PSAP or emergency services agency. Based on the information provided by the customer, the intermediary will direct your call to the appropriate emergency services agency or a public safety answering point. For a complete and full description of the 911 Service go to www.nucleus.com/voip/faq12.html. LIMITATIONS TO THE 911 SERVICE babyTEL is advising Customer of the following inherent limitations to the 911 Service due to the nomadic characteristics of VoIP Service. The 911 Service will not be accessible or available in the following situations: - You have not successfully activated the 911 Service AND received an email from babyTEL confirming your successful activation; - In case of Network Congestion; and - a service outage has occurred for any reason, including the following: - Power failure or disruption; - Internet connection outage/termination by your Internet service provider; - babyTEL terminates, suspends or cancels your VoIP Service for any of the reasons specified in our Terms and Conditions of Use [www.nucleus.com/voip/terms.html]; The 911 emergency responders that are part of the 911 Service may be delayed if : - You do not provide us with current and accurate location information (i.e., where you are); - You do not advise us immediately of any changes that you make to the location information that you initially provided us; In the event that an emergency call in progress is interrupted, 911 emergency personnel will be unable to call you at the phone from which you originated the call if: - You have call forwarding, do not disturb or other features programmed and in use at the time you dial a 911 call - Your telephone ringer is set to OFF; LIMITATION OF LIABILITY Neither Nucleus Inc. nor babyTEL, a division of Voice and Data Systems Inc. ('VDS'), its affiliated or related companies nor their officers or employees shall be held liable for any claim, damage, or loss, and you hereby waive any and all such claims or causes of action, arising from or relating to the VoIP Service and/or the 911 Service, including, without limitation, your inability to dial 911 from your line or to access emergency service personnel unless it is proven that the act or omission causing the claim, damage, or loss constitutes gross negligence, recklessness, or intentional misconduct on the part of babyTEL. You agree to defend, indemnify, and hold harmless VDS, its affiliated and related companies, their officers, directors, employees, affiliates and agents and any other third party service provider who furnishes services to you or to us in connection VoIP Service, from and against any and all claims, losses, damages, fines, penalties, costs and expenses (including, without limitation, reasonable legal fees and expenses) by, or on behalf of, you or any third party or user of your VoIP Service relating to the absence, failure or outage of the VoIP Service, including, without limitation the 911 Service and/or your inability or any third person or party or user that you authorise and allow to use and have access to the VoIP Service to be able to dial 911 or to access emergency service personnel, and any misroutes of 911 calls, including but not limited to your failure to follow correct activation procedures for 911 calling or your provision to us of incorrect or inaccurate or not current information in connection with the 911 Service. Acceptance Notwithstanding the Limitations that are discussed above, and having fully read and understood those Limitations as well as the limits of babyTEL's liability, you hereby fully acknowledge and accept, without limitation, the VoIP Service and the 911 Service as currently offered. 9- COPYRIGHT / TRADEMARK / UNAUTHORIZED USAGE OF DEVICE, FIRMWARE OR SOFTWARE The Service and all Service information, documents, software, firmware and materials on babyTEL's website(s), as well as names, trademarks, trade names, service works ("intellectual property") are the exclusive property of babyTEL or it's licensors and are protected by intellectual property laws and international treaty provisions. You acknowledge that you are not given any license to use the firmware or software used to provide the Service or provided to Customer in conjunction with providing the Service, or embedded in the Device, other than a nontransferable, revocable license to use such firmware or software (without making any modification thereto) strictly in accordance with the terms and conditions of this Agreement. If you decide to use the Service through an interface device not provided by babyTEL, which babyTEL reserves the right to prohibit in particular cases or generally, you warrant and represent that you possess all required rights, including software and/or firmware licenses, to use that interface device with the Service and you will indemnify and hold harmless babyTEL against any and all liability arising out of your use of such interface device with the Service. 10- CHARGES / PAYMENTS / DEFAULT / TAXES 10.1- Billing and Payment: babyTEL will bill all charges monthly to your credit card. Monthly fees for Service, according to the plan for which you registered, Device rental charges, and feature charges where applicable, will be charged to your credit card monthly in advance. All charges for long distance, local minutes, directory assistance (411), etc. that exceed the selected package will be charged to your credit card monthly in arrears. However babyTEL reserves the right to bill at more frequent intervals if the amount due at any time exceeds $50. Charges for Activation fees, Device purchases (where applicable), and shipping and handling charges will be charged to your credit card at the time of your order. babyTEL only accepts payments by credit card and you must give us a valid credit card number when the Service is purchased. If the credit card expires, you close your account or your billing address changes, or the credit card is cancelled and replaced owing to loss or theft, you must advise babyTEL. Your acceptance of this Agreement by clicking "I Accept" below authorizes babyTEL to charge the credit card on file with babyTEL, including any modified information given to babyTEL if the credit card expires or is replaced, for all charges as described herein. This authorization will remain valid until 30 days after babyTEL receives your written notice terminating babyTEL's authority to charge your credit card or until all accrued charges to your accounts are paid. If the packaging containing any Device is visibly damaged upon receipt, please note the damage on the carrier's freight bill or receipt and keep a copy. Keep the original packaging, all packing materials and parts intact and contact babyTEL's customer care department immediately. Warranty coverage varies depending on the type of Device that you choose. Please refer to the appropriate babyTEL device warranty on the babyTEL website (www.babytel.ca). 10.2- Toll Charges: Long Distance Charges for calls through the Service will be billed to you at rates established by babyTEL and posted on the babyTEL website (www.babytel.ca). These rates may be changed from time to time at babyTEL's sole discretion and will be posted on the website. Currently there are no charges between users; however charges can be levied at the sole discretion of babyTEL and will be posted on the babyTEL web site. Call times for each call are rounded up and billed in six (6) second increments. Per call charges are rounded up to the next whole penny. All calls for which we receive answer supervision and last for at least six (6) seconds, as explained below, shall incur a minimum thirty (30) second charge. babyTEL relies on answer supervision to determine whether and when a call has been answered. Answer supervision is a signal sent by the carrier connecting the call to indicate the start of call. Answer supervision is generally received when a call is answered; however, answer supervision may also be generated by voicemail systems, private branch exchanges, and inter-exchange switching equipment. Where no answer supervision is received, we will commence billing forty (40) seconds following dial time unless the caller has terminated the call. 10.3- Taxes: The Customer is responsible for, and shall pay applicable federal (GST), Harmonized Sales Tax (HST) and provincial taxes (PST) or any additional telecommunication or other taxes, fees or charges now in force or enacted in the future, that arise from or as a result of Customer's subscription or use or payment for the Service or purchase or rental of a Device. Such amounts are in addition to payment for the Service and will be billed to your account. 10.4- Billing Disputes: You must notify babyTEL in writing within seven (7) days after your monthly statement is posted in your account section on the babyTEL Web site or is sent to your email address if you dispute any babyTEL charges on that statement or such dispute will be deemed waived. Billing disputes must be sent by mail or email to the following address: Customer Care Billing Department babyTEL 1425 Rene-Levesque W., Suite 700 Montreal, Quebec, Canada H3G 1T7 or billing@babytel.ca 11- TERMINATION/DISCONTINUANCE OF SERVICE 11.1- Termination of Service: You may terminate the service by requesting a cancellation of Service form from customercare@babytel.ca and returning the form once completed at least 10 days prior to the end of your month's term. Service provision will terminate at the end of the current month. There will be no refund on your current monthly charge and all usage fees will be charged to your credit card account as well as a disconnect fee, if applicable, according to the rate established below. babyTEL reserves the right to suspend or discontinue providing the Service generally, or to terminate your Service, at any time at its sole discretion. If babyTEL discontinues providing the Service generally, or terminates your Service at its discretion without a stated reason, you will only be responsible for charges accrued through the date of termination, including a pro-rated portion of the final month's charges. If your Service is terminated for any stated reason, including without limitation violation of this Agreement, or because of any improper use of the Service or Device (such as, but not limited to, your attempts to hack, disrupt, or misuse the Service), you will be responsible for the full month's charges to the end of the current term, including without limitation unbilled charges, plus a disconnect fee, if applicable and as stipulated below, all of which immediately become due and payable. babyTEL may terminate your Service at any time at its sole discretion if any charge to your credit card on file with babyTEL is declined or reversed or in case of any other non-payment of account charges. Termination of Service for declined card, reversed charges or non-payment leaves you FULLY LIABLE to babyTEL for ALL CHARGES ACCRUED BEFORE TERMINATION and for charges incurred by babyTEL owing to your non-payment, such as (but not limited to) collection costs and attorney's fees. 11.2- Disconnect Fee: If you have rented a Device (other than a Softphone) from babyTEL, you will be charged a disconnect fee of $70.00 per device upon termination of Service for any reason. The disconnect fee becomes due and payable immediately upon termination and will be billed directly to your credit card. The disconnect fee will be fully reimbursed upon return of the rented Device(s) if returned within fourteen (14) days of termination under the following conditions: * The Device must be undamaged and in original condition. * All documentation and packaging materials are returned. * A valid Return Material Authorization (RMA) number must be indicated on the package and shipping document. The RMA will be sent to you by email upon receipt of your cancellation form. 11.3 Money Back Guarantee: babyTEL offers a 14-day money back guarantee, applicable to one primary line per account, but not for additional or secondary lines. Under terms of the Money-Back Guarantee, babyTEL refunds the activation fee, first month of service, Device rental fees and shipping charges. Any payment for the purchase of Device is also fully refunded. To be eligible for the money back guarantee, the user (i) must terminate the Service within 14 days of the Anniversary Date, (ii) the Device(s) must be returned within 14 days of the date of cancellation and (iii) must not have exceeded 250 minutes of usage. User remains responsible for any long distance charges, directory assistance and all other usage fees that are not eligible for refund. THIS MONEY BACK GUARANTEE DOES NOT APPLY TO ACCOUNTS EXCEEDING 250 MINUTES OF USAGE AND SUCH ACCOUNTS ARE NOT ELIGIBLE FOR REFUND OF ANY OF THE CHARGES DESCRIBED HEREIN. All returned Devices must be in the original packaging with the UPC or bar code intact. All components, manuals and registration card(s) must be included. Equipment must be returned with a valid return authorization number obtained from babyTEL Customer Care. To obtain a return authorization number, User must contact customercare@babytel.ca. User is responsible for the cost and risk of return shipping of equipment. THE MONEY BACK GUARANTEE WILL NOT BE HONORED IF USER FAILS TO MEET ALL SUCH REQUIREMENTS. 12- WARRANTY, LIMITATIONS OF LIABILITY and INDEMNIFICATION 12.1- Warranties: babyTEL and its affiliates, directors, employees and agents provide the Service "AS IS" and make no warranties of any kind, express or implied, including but not limited to, (i) any implied warranties of merchantability or fitness for a particular purpose of the Service or the Device, (ii) warrant that the Service will operate error-free or without failure, delay, interruption, degradation of voice quality or loss of content, data or information. Neither babyTEL nor its officers, directors, employees, affiliates or agents, suppliers or any other service provider or vendor who furnishes services or products to Customer in connection with this Agreement or the Service will be liable for unauthorized access to babyTEL's or Customer's transmission facilities or premises equipment or for unauthorized access to, or alteration, theft or destruction of, Customer's data files, programs, procedures or information through accident, fraudulent means or devices or any other method, regardless of whether such damage occurs as a result of babyTEL's or its service provider's or vendors' negligence. Statements and descriptions concerning the Service or Device, if any, by babyTEL or babyTEL's agents or installers are informational and are not given as a warranty of any kind. 12.2- Limitation of Liability: The parties agree that under no circumstances shall babyTEL, its officers, directors, employees, agents, partners, suppliers or any other service provider who furnishes services to Customer in connection with this Agreement or the Service be liable to you or any other person, for any actual direct, indirect, consequential, special, incidental, punitive, exemplary or for any other damages, including but not limited to loss of data, loss of revenue or profits of any kind or nature, regardless of the foreseeability thereof arising out of the provision of the Service or in any way arising out of this Agreement whether resulting from (i) Customer's use of Service (ii) mistakes, omissions, interruptions, loss, theft or deletions of files, errors, defects, delays in operation or transmission, or (iii) any failure of performance or otherwise in connection with the Service or this Agreement or arising out of or in connection with the use or inability to use the Service, including inability to dial 911 or to access emergency service personnel through the Service; degradation of quality of Service, failure of Device, mistakes, omissions, interruptions, or defects in equipment, force majeure events such as (but not limited to) acts of god, strikes; fire, war, riot, government actions, that is caused by any reason. The limitations set forth herein apply to claims founded in breach of contract, breach of warranty, products liability, extra-contractual liability and any and all other theories of liability and apply whether or not babyTEL was informed of the likelihood of any particular type of damages. 12.3- Indemnification: Customer agrees to defend, indemnify, and hold harmless babyTEL, its officers, directors, employees, partners and agents and any other service provider who furnishes services to Customer in connection with this Agreement or the Service, from any and all claims, losses, damages, fines, penalties, costs and expenses (including, without limitation, reasonable attorneys fees) by, or on behalf of, Customer or any third party or user of Customer's Service, relating to this Agreement or by violation of this Agreement, the Services including but not limited to 911 dialing or the Device. This paragraph shall survive termination of this Agreement. 12.4- No Third Party Beneficiaries: No provision of this Agreement provides any person or entity not a party to this Agreement with any remedy, claim, liability, reimbursement, or cause of action or creates any other third party beneficiary rights. 12.5- Content You are liable for any and all content transmitted by or to you or Users of the Services. You shall assure that your or User's use of the Services and content will at all times comply with all applicable laws, regulations and written and electronic instructions for use. 12.6- Maximum Liability: babyTEL's maximum and sole liability for damages to you for any cause whatsoever regardless of form of action, including negligence, shall not exceed an amount equal to the Service charges paid by you for the Service during the one (1) month period preceding the event which caused the damages or injury. 13- GOVERNING LAW / RESOLUTION OF DISPUTES 13.1- Governing Law: This agreement and performance hereunder shall be governed by and construed in accordance with the laws in force in the province of Quebec, Canada, and the courts therein shall be competent to hear any dispute. If any provision of the Agreement is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties' intentions as reflected in the provision, and the other provisions of the Agreement remain in full force and effect. You agree that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to use of the Service or the Agreement must be filed within one (1) year after such claim or cause of action arose or be forever barred. 13.2- Non-Transferable: This Agreement is not transferable in any way and may not be assigned to any third party. This includes, without limitation, that neither you nor any other person may: (a) resell, timeshare, sublicense, or otherwise transfer all or any portion of the Services to any other party; nor (b) make commercial use of the Services except for Business Package users. 13.3- No Waiver: The waiver or failure of babyTEL to exercise or enforce, in any respect, any right provided for herein shall not be deemed a waiver of any further right hereunder. 13.4- Entire Agreement: The user acknowledges that he/she has read this Agreement together with Schedule A and the rates posted on the babyTEL website, understands it, and agrees to be bound by its terms and further agrees that it is the complete and exclusive statement of the agreement between the parties, which supersedes and cancels all prior proposals, understandings and all other agreements, oral, electronic and written, between the parties relating to this Agreement. babyTEL reserves the right to change the terms and conditions of this Agreement from time to time, including but not limited to rate changes, enhance, add to, delete from, modify, or discontinue all or any portion of the Service or any function or feature thereof in any manner at its sole discretion, with or without notice to, or obligation or liability of any kind to you or to any other person. Schedule A is an integral part of this Agreement. Notice of any changes to the "Terms of service" shall be considered given to and received by the Customer and effective on the date posted on the babyTEL website. Such changes shall be binding on the Customer. 13.5- Severability: If any provision of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. Schedule A The following cities are currently included in babyTEL's 'Canadian Village' *: Calgary Edmonton Halifax Hamilton Kitchener London Montreal Ottawa Quebec City Sherbrooke Toronto Vancouver * NOTE: Regardless of the above-mentioned cities, calls made to telephone numbers that would be considered long-distance by a local phone carrier if dialed from within the called city, will still be considered long-distance by babyTEL.

Please select continue to proceed with the sign-up. By doing so, you also acknowledge that you recognize and understand that differences exist between the traditional telephone service and the babyTEL service, including but not limited to limitations to the babyTEL 911 service.

I also understand that the following terms & conditions apply to the 911 emergency service:

babyTEL's Emergency Calling Service: 911 Nomadic VoIP Service As a current customer of Nucleus Inc. & babyTEL (a division of Voice & Data Systems Inc.) ("babyTEL") or a future customer of babyTEL, you have subscribed or will subscribe to a Voice over Internet Protocol ("VoIP") telephone service offered by babyTEL according to babyTEL's terms and conditions of service ("VoIP Service"). The VoIP Service that we provide is known as a nomadic service. This means that babyTEL allows you, the customer, to make calls from anywhere that you have access to a broadband internet service. As you know, you can simply bring your telephone devices with you and use the VoIP Service wherever you are located. However, because of these nomadic capabilities, babyTEL is not currently able to automatically detect whether the service is being used from the registered service address or from some other location. Consequently, when a subscriber relocates, babyTEL no longer has valid 9-1-1 routing or ALI information with which to process 9-1-1 calls from that customer, unless the customer updates his/her location information. babyTEL's 911 Service Following the directives made by the Canadian Radio-television and Telecommunication Commission ("CRTC") pursuant to Telecom Decision CRTC 2005-21, babyTEL has, in compliance with such directives, implemented an emergency calling service or 911 service ("911 Service"). In order to use the 911 Service, you will need to activate it according to the instructions you are provided, and which can be found at www.nucleus.com/voip/faq12.html. Once the 911 Service is activated, all calls by the customer using the 911 Service will be connected to an intermediary (such as a third party call centre), which in turn will transfer the call to the proper PSAP or emergency services agency. Based on the information provided by the customer, the intermediary will direct your call to the appropriate emergency services agency or a public safety answering point. For a complete and full description of the 911 Service please see here www.nucleus.com/voip/faq12.html. LIMITATIONS TO THE 911 SERVICE babyTEL is advising Customer of the following inherent limitations to the 911 Service due to the nomadic characteristics of VoIP Service. The 911 Service will not be accessible or available in the following situations: * You have not successfully activated the 911 Service AND received an email from babyTELs confirming your successful activation; * In case of Network Congestion; and * a service outage has occurred for any reason, including the following: o Power failure or disruption; o Internet connection outage/termination by your Internet service provider; o babyTEL terminates, suspends or cancels your VoIP Service for any of the reasons specified in our Terms and Conditions of Use (www.babytel.ca/content_pages/terms_of_use.html); The 911 emergency responders that are part of the 911 Service may be delayed if : * You do not provide us with current and accurate location information (i.e., where you are); * You do not advise us immediately of any changes that you make to the location information that you initially provided us; In the event that an emergency call in progress is interrupted, 911 emergency personnel will be unable to call you at the phone from which you originated the call if: * You have call forwarding, do not disturb or other features programmed and in use at the time you dial a 911 call * Your telephone ringer is set to OFF; LIMITATION OF LIABILITY Neither Nucleus Inc. nor babyTEL, a division of Voice and Data Systems Inc. ("VDS"), its affiliated or related companies nor their officers or employees shall be held liable for any claim, damage, or loss, and you hereby waive any and all such claims or causes of action, arising from or relating to the VoIP Service and/or the 911 Service, including, without limitation, your inability to dial 911 from your line or to access emergency service personnel unless it is proven that the act or omission causing the claim, damage, or loss constitutes gross negligence, recklessness, or intentional misconduct on the part of babyTEL. You agree to defend, indemnify, and hold harmless VDS, its affiliated and related companies, their officers, directors, employees, affiliates and agents and any other third party service provider who furnishes services to you or to us in connection VoIP Service, from and against any and all claims, losses, damages, fines, penalties, costs and expenses (including, without limitation, reasonable legal fees and expenses) by, or on behalf of, you or any third party or user of your VoIP Service relating to the absence, failure or outage of the VoIP Service, including, without limitation the 911 Service and/or your inability or any third person or party or user that you authorise and allow to use and have access to the VoIP Service to be able to dial 911 or to access emergency service personnel, and any misroutes of 911 calls, including but not limited to your failure to follow correct activation procedures for 911 calling or your provision to us of incorrect or inaccurate or not current information in connection with the 911 Service. Acceptance Notwithstanding the Limitations that are discussed above, and having fully read and understood those Limitations as well as the limits of babyTEL's liability, you hereby fully acknowledge and accept, without limitation, the VoIP Service and the 911 Service as currently offered.

I accept the terms and conditions. *