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BINARY TELECOM TERMS OF SERVICE

These Terms of Service constitute the agreement ("Agreement") between Binary Telecom Inc.. ("we," "us" or "Binary Telecom") and the user ("you," "user" or "Customer") of Binary Telecom's enhanced Residential communications services or enhanced Small Business communications services and any related products or services ("Service"). This Agreement governs both the Service and any devices, such as an IP phone, Multimedia Terminal Adapter, Analog Telephone Adapter or any other IP connection device, ("Device" or "Equipment") used in conjunction with the Service. By activating the Service, you acknowledge that you have read and understood, and you agree, to the terms and conditions of this Agreement, and you represent that you are of legal age to enter this Agreement and become bound by its terms. If you have purchased Equipment from any Binary Telecom retail dealer, you will be deemed a "Retail Customer" and will be governed by certain Retail Customer terms and conditions as set forth herein.

1. SERVICE

1.1 Term
Service is offered on a monthly basis for a term which begins on the date that Binary Telecom activates your Service and ends on the day before the same date in the following month. Subsequent terms of this Agreement automatically renew on a monthly basis without further action by you unless you give Binary Telecom written notice of non-renewal at least ten (10) days before the end of the monthly term in which the notice is given. You are purchasing the Service for full monthly terms, meaning that if you attempt to terminate 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, all of which immediately become due and payable. Expiration of the term or termination of Service does not excuse the Customer from paying all unpaid, accrued charges due in relation to the Agreement.

1.2.1 Use of Service and Device - Prohibition on Resale
If you have subscribed to Binary Telecom's services, the Service and Device are provided to you as a 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 Binary Telecom in advance. You agree that the Binary Telecom 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. Binary Telecom reserves the right to immediately terminate or modify the Service, if Binary Telecom determines, in its sole discretion, that Customer's Service is being used for any of the aforementioned activities.

1.3 Lawful Use of Service and Device
1.3.1 Prohibited Uses
You agree to use the Service and Device only for lawful purposes. This means that you agree not to use them for transmitting or receiving any communication or material of any kind when in Binary Telecom's sole judgment the transmission, receipt or possession of such communication or material (i) would constitute a criminal offense, give rise to a civil liability, or otherwise violate any applicable local, state, national or international law or (ii) encourages conduct that would constitute a criminal offense, give rise to a civil liability, or otherwise violate any applicable local, state, national or international law. Binary Telecom reserves the right to terminate your service immediately and without advance notice if Binary Telecom, in its sole discretion, believes that you have violated the above restrictions, leaving you responsible for the full month's charges to the end of the current term, including without limitation unbilled charges, plus a disconnect fee, all of which immediately become due and payable and may at Binary Telecomís discretion be immediately charged to your credit card. You are liable for any and all use of the Service and/or Device by yourself and by any person making use of the Service or Device provided to you and agree to indemnify and hold harmless Binary Telecom against any and all liability for any such use. If Binary Telecom, in its sole discretion believes that you have violated the above restrictions, Binary Telecom may forward the objectionable material, as well as your communications with Binary Telecom and your personally identifiable information to the appropriate authorities for investigation and prosecution and you hereby consent to such forwarding.

1.3.2 Use of Service and Device by Customers Outside the United States
While we encourage use of the Service within the United States to other countries, Binary Telecom does not presently offer or support the Service to customers located in other countries except Canada. If you remove the Device to a country other than the United States or Canada and use the Service from there, you do so at your own sole risk, including the risk that such activity violates local laws in the country where you do so. You are liable for any and all such use of the Service and/or Device by yourself or any person making use of the Service or Device provided to you and agree to indemnify and hold harmless Binary Telecom against any and all liability for any such use. Should the removal from the United States or Canada of the Device violate any export control law or regulation, you will be solely liable for such violation and agree to indemnify and hold harmless Binary Telecom against any and all liability for such violation. Binary Telecom reserves the right to terminate your Service immediately and without advance notice if it determines that you are using it outside the United States or Canada.

1.4 Loss of Service Due to Power Failure or Internet Service Outage or Termination or Suspension or Termination by Binary Telecom
You acknowledge and understand that the Service does not function in the event of power failure. You also acknowledge and understand that the Service requires a fully functional broadband connection to the Internet (which is not provided by Binary Telecom) and that, accordingly, in the event of an outage of, or termination of service with or by, your Internet service provider ("ISP") and/or broadband provider, the Service will not function, but that you will continue to be billed for the Service unless and until you or Binary Telecom terminate the Service in accordance with this Agreement. Should there be an interruption in the power supply or ISP outage, the Service will not function until power is restored or the ISP outage is cured. A power failure or disruption may require the Customer to reset or reconfigure equipment prior to utilizing the Service. Power disruptions or failures or ISP outages will also prevent dialing to emergency service numbers including the 911 calling feature. Should Binary Telecom suspend or terminate your Service, the Service will not function until such time as Binary Telecom restores your Service (which may require payment of all invoices and reconnection fees owed by you or cure of any breach by you of this Agreement).

1.5 Copyright / Trademark / Unauthorized Usage of Device, Firmware or Software
The Service and Device and any firmware or software used to provide the Service or provided to you in conjunction with providing the Service, or embedded in the Device, and all Services, information, documents and materials on Binary Telecom's website(s) are protected by trademark, copyright or other intellectual property laws and international treaty provisions. All websites, corporate names, service marks, trademarks, trade names, logos and domain names (collectively "marks") of Binary Telecom are and shall remain the exclusive property of Binary Telecom and nothing in this Agreement shall grant you the right or license to use any of such marks. You acknowledge that you are not given any license to use the firmware or software used to provide the Service or provided to you in conjunction with providing the Service, or embedded in the Device, other than a nontransferable, revocable license to use such firmware or software in object code form (without making any modification thereto) strictly in accordance with the terms and conditions of this Agreement. You expressly agree that the Device is exclusively for use in connection with the Service and that Binary Telecom will not provide any passwords, codes or other information or assistance that would enable you to use the Device for any other purpose. If you decide to use the Service through an interface device not provided by Binary Telecom, which Binary Telecom 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 Binary Telecom against any and all liability arising out of your use of such interface device with the Service. You shall not reverse compile, disassemble or reverse engineer or otherwise attempt to derive the source code from the binary code of the firmware or software.

1.6 Tampering with the Device or Service
You agree not to change the electronic serial number or equipment identifier of the Device, or to perform a factory reset of the Device, without express permission from Binary Telecom in each instance which Binary Telecom may deny in its sole discretion. Binary Telecom reserves the right to terminate your Service should you tamper with the Device, leaving you responsible for the full month's charges to the end of the current term, including without limitation unbilled charges, plus a disconnect fee, all of which immediately become due and payable. You agree not to hack or disrupt the service or to make any use of the Service that is inconsistent with its intended purpose or to attempt to do so.

1.7 Theft of Service
You agree to notify Binary Telecom immediately, in writing or by calling the Binary Telecom customer support line, if the Device is stolen or if you become aware at any time that your Service is being stolen or fraudulently used. When you call or write, you must provide your account number and a detailed description of the circumstances of the Device theft or fraudulent use of Service. Failure to do so in a timely manner may result in the termination of your Service and additional charges to you. Until such time as Binary Telecom receives notice of the theft or fraudulent use, you will be liable for all use of the Service using a Device stolen from you and any and all stolen Service or fraudulent use of the Service.

1.8 Return of Device
The Device may be returned to Binary Telecom within fourteen (14) days of the termination of Service to receive a credit for the $39.99 disconnect fee ($49.99 CAD) (refer to section 4.6 of this document regarding termination fees), provided: (i) you have retained, and return along with the Device, proof of purchase and original packaging; (ii) contents are undamaged and in original condition, reasonable wear and tear excluded; (iii) all parts, accessories, documentation and packaging materials are returned; and (iv) equipment is returned with a valid return authorization number obtained from Binary Telecomís customer care department. You are responsible for the cost and risk of return shipping of equipment. If you receive cartons and/or Devices that are visibly damaged, you must note the damage on the carrier's freight bill or receipt and keep a copy. In such event, you must keep the original carton, all packing materials and parts intact in the same condition in which they were received from the carrier and contact Binary Telecom's customer care department immediately. To obtain a return authorization number, you must contact billing@binarytelecom.com or 1-877-TALK-504.

1.9 Number Transfer on Service Termination
Upon termination of the Service, Binary Telecom may, at its sole discretion, release a telephone number that was ported in from a previous service provider to Binary Telecom by you and used in connection with your Service provisioned by Binary Telecom to your new service provider, if such new service provider is able to accept such number, and provided that (i) your account has been terminated; (ii) your Binary Telecom account is completely current including payment for all charges and disconnect fees; and (iii) you request the transfer upon terminating your account.

1.10 Service Distinctions
You acknowledge and understand that the Service is not a telephone service. Important distinctions (some, but not necessarily all, of which are described in this Agreement) exist between telephone service and the enhanced Service offering provided by Binary Telecom. The Service is subject to different regulatory treatment than telephone service. This treatment may limit or otherwise affect your rights of redress before Federal, State or Provincial telecommunications regulatory agencies.

1.11 Ownership and Risk of Loss
You shall be deemed the owner of the Device, and bear all risk of loss of, theft of, casualty to or damage to the Device, from the time it is shipped to you until the time (if any) when it is returned by you pursuant to Section 1.8 and has been received by Binary Telecom.

1.12 No 0+ Calling; May Not Support x11 Calling
Binary Telecomís Service does not support 0+ calling (including without limitation collect, third party billing or calling card calling). Binary Telecomís Service may not support 311, 511 and/or other x11 (other than 911 and 411, which are provided for elsewhere in this Agreement) services in one or more (or all) service areas.

2. EMERGENCY SERVICES- 911 DIALING

2.1 Use of Enhanced 911 (E911) Dialing Service
You acknowledge and understand that the use of E911 emergency services may be subject to different circumstance and set up then traditional 911 service. Binary Telecom does offer a limited 911-type service available only on Binary Telecom Devices as described herein, but you acknowledge and understand that 911 dialing may be affected if the device is usedin another location from your main residence. The service is designed to determine your location and based not only on your listed location information in our service record but also as best as possible to determine if the device is in a ďoffsiteĒ location based in the IP address sent with the request for emergency service. You understand and acknowledge that Binary Telecom can not be held liable in the event that we are unable to contact the local emergency service provider due to faulty or improper information. You also acknowledge that you may be asked at some point to separately take affirmative steps to activate such 911-type dialing capabilities. You further acknowledge that such 911-type dialing may differ from traditional 911 service. Binary Telecom 911 dialing cannot be used in conjunction with a Binary Telecom Soft Phone application and is only available on Binary Telecom-certified Devices or Equipment. You agree to inform any household residents, guests and other third persons who may be present at the physical location where you utilize the Service as to the important differences and limitations that may be present in Binary Telecom 911 dialing service as compared with traditional 911 or E911 dialing that are set forth in this Agreement.

2.2 Description of 911-Type Dialing Capabilities - Activation May Be Required
Binary Telecom does offer a 911-type dialing service in the U.S. (but may not offer such service in Canada) that may differ in a number of important ways from traditional 911 service. You acknowledge and understand that 911-type dialing may at some point require an action on your part. When you dial 911, your call is routed from the Binary Telecom network to the Public Safety Answering Point (PSAP) or local emergency service personnel designated for the address that you listed at the time of activation or the address best possibly determined by other means. You acknowledge and understand that when you dial 911 from your Binary Telecom equipment it is intended that you will be routed to the PSAP or local emergency service provider, Unless otherwise specified your call will be routed to the 911 dispatcher(s) who are specifically designated to receive incoming 911 calls using traditional 911 dialing. Binary Telecom relies on third parties for the forwarding of information underlying such routing, and accordingly Binary Telecom and its third party provider(s) disclaim any and all liability or responsibility in the event such information or routing is incorrect. As described herein, this 911-type dialing may differ from traditional 911 or E911 dialing. Neither Binary Telecom nor its officers or employees may 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 911 dialing unless it is proven that the act or omission proximately causing the claim, damage, or loss constitutes gross negligence, recklessness, or intentional misconduct on the part of Binary Telecom. You agree to indemnify and hold harmless Binary Telecom and its third party provider from any claim or action arising out of misroutes of 911 calls, including but not limited to your failure to follow correct activation procedures for 911 calling or your provision to Binary Telecom of incorrect information in connection therewith.

2.3 Service Outage
2.3.1 Power Failure or Disruption
You acknowledge and understand that 911 dialing does not function in the event of a power failure or disruption. Should there be an interruption in the power supply, the Service and 911 dialing will not function until power is restored. A power failure or disruption may require the Customer to reset or reconfigure equipment prior to utilizing the Service or 911 dialing.

2.3.2 Broadband Service / ISP Outage or Termination / Suspension or Termination by Binary Telecom
You acknowledge and understand that service outages or suspension or termination of service by your broadband provider and/or ISP or by Binary Telecom will prevent ALL Service including 911 dialing.

2.3.3 Service Outage Due to Suspension of Your Account
You acknowledge and understand that service outages due to suspension of your account as a result of billing issues will prevent ALL Service, including 911dialing.

2.3.4 Other Service Outages
You acknowledge and understand that if there is a service outage for ANY reason, such outage will prevent ALL Service, including 911 dialing. Such outages may occur for a variety of reasons, including, but not limited to those reasons described elsewhere in this Agreement.

2.3.5 Limitation of Liability and Indemnification
You acknowledge and understand that Binary Telecom's liability is limited for any Service outage and/or inability to dial 911 from your line or to access emergency service personnel, as set forth in this document. You agree to defend, indemnify, and hold harmless Binary Telecom, its officers, directors, employees, affiliates 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 the absence, failure or outage of the Service, including 911 dialing and/or inability of Customer or any third person or party or user of Customer's Service to be able to dial 911 or to access emergency service personnel.

2.4 911 Dialing May Requires Actions
You acknowledge and understand that 911 dialing may require an action on your part now or in the future.
2.5 Failure to Designate the Correct Physical Address for your account.
Failure to provide the current and correct physical address and location of your Binary Telecom equipment may result in any 911 communication you may make being routed to the incorrect local emergency service provider. This must be the actual physical street address where you are located, not a post office box, mail drop or similar address.
2.6 May Requires Re-Activation if You Change Your Number or Add or Port New Numbers
You acknowledge and understand that 911 dialing may not function if you change your phone number or (for such newly added or ported numbers) if you add or port new numbers to your account, unless and until you have successfully activated the 911 dialing feature for your changed, newly added or newly ported number, and until such later date that such activation has been confirmed to you through a confirming email. Although you may have activated 911 dialing with your former Binary Telecom phone number.

2.7 Requires Re-Activation if You Move or Change Location
You acknowledge and understand that 911 dialing is designed to best determine your location if you move or otherwise change the physical location of your Binary Telecom Device to a different street address, unless and until you have successfully made any required changes to your account information, and until such later date that such activation has been confirmed to you through a confirming email. 911 dialing may need to be re-activated although you may have activated 911 dialing using your former address, you may separately activate 911 dialing for any new physical address. Failure to provide the current and correct physical address and location of your Binary Telecom equipment may result in any 911 dialing you may make being routed to the incorrect local emergency service provider

2.8 Possibility of Network Congestion and/or Reduced Speed for Routing or Answering 911
Due to the technical constraints on the manner in which it is possible to provide the 911 dialing feature for Binary Telecom Service at this time, you acknowledge and understand that there is a greater possibility of network congestion and/or reduced speed in the routing of a 911 communication made utilizing your Binary Telecom equipment as compared to traditional 911 dialing over traditional public telephone networks. You acknowledge and understand that 911 dialing from your Binary Telecom equipment will be routed to the 911 dispatcher(s) who are specifically designated to receive incoming 911 calls. You acknowledge and accept that Binary Telecom relies on third parties for the forwarding of information underlying such routing, and accordingly Binary Telecom and its third party provider(s) disclaim any and all liability or responsibility in the event such information or routing is incorrect. Binary Telecom or its officers or employees, may not 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 911 dialing unless it is proven that the act or omission proximately causing the claim, damage, or loss constitutes gross negligence, recklessness, or intentional misconduct on the part of Binary Telecom.

2.9 Automated Number Identification
At this time in the technical development of Binary Telecom 911 dialing, it may or may not be possible for the Public Safety Answering Point (PSAP) and the local emergency personnel to identify your phone number when you dial 911. Binary Telecom's system is configured in most instances to send the automated number identification information; however, one or more telephone companies, not Binary Telecom, route the traffic to the PSAP and the PSAP itself must be able to receive the information and pass it along properly, and PSAPs are not yet always technically capable of doing so. You acknowledge and understand that PSAP and emergency personnel may or may not be able to identify your phone number in order to call you back if the call is unable to be completed, is dropped or disconnected, or if you are unable to speak to tell them your phone number and/or if the Service is not operational for any reason, including without limitation those listed elsewhere in this Agreement.

2.10 Automated Location Identification
At this time in the technical development of Binary Telecom 911 Dialing, the transmission of your identification and personal address to the Public Safety Answering Point (PSAP) and local emergency personnel for your area when you dial 911 will be handle automatically except in case as identified elsewhere in this document.. You acknowledge and understand that in most cases if you can not state the nature of your emergency promptly and clearly, including your location, to the PSAP and emergency personnel your information will be provided on your behalf. You acknowledge and understand that in some cases PSAP and emergency personnel will not be able to find your location if the call is unable to be completed, is dropped or disconnected, and/or if the Service is not operational for any reason, including without limitation those listed elsewhere in this Agreement.


3. CHANGES TO THIS AGREEMENT

Binary Telecom may change the terms and conditions of this Agreement from time to time. Notices will be considered given and effective on the date posted on to the "Service Announcements" section of Binary Telecomís website (currently located at http://www.Binary Telecom.com/legal-notices.shtml). Such changes will become binding on Customer, on the date posted to the Binary Telecom website and no further notice by Binary Telecom is required. This Agreement as posted supersedes all previously agreed to electronic and written terms of service, including without limitation any terms included with the packaging of the Device and also supersedes any written terms provided to Retail Customers in connection with retail distribution, including without limitation any written terms enclosed within the packaging of the Device..

4. CHARGES / PAYMENTS / DEFAULT / TAXES / TERMINATION
4.1 Billing
You may pay with any valid credit card number (Visa, MasterCard, Discover, American Express or any other issuer then-accepted by Binary Telecom) or a check when the Service is activated. It is recommended you keep a credit card on file to avoid service interruption. Binary Telecom reserves the right to stop accepting credit cards from one or more issuers. If the card expires, you close your account, your billing address changes, or the card is cancelled and replaced owing to loss or theft, you must advise Binary Telecom at once. We will bill all charges, applicable taxes and surcharges monthly in advance (except for usage-based charges, which will be billed monthly in arrears, and any other charges which Binary Telecom decides to bill in arrears) to your credit card, including but not limited to: activation fees, monthly Service fees, international usage charges, advanced feature charges, equipment purchases, disconnect fees and shipping and handling charges. Should you choose to pay by check, checks must be received by the 25th of the month to avoid service interruption. Binary Telecom reserves the right to bill at more frequent intervals if the amount due at any time exceeds $50. Any usage charges will be billed in increments that are rounded up to the nearest minute except as otherwise set forth in the rate schedules found on Binary Telecomís website.

4.2 Billing Disputes
You must notify Binary Telecom in writing within 7 days after receiving your credit card statement if you dispute any Binary Telecom charges on that statement or such dispute will be deemed waived. Billing disputes should be notified to the following address:
Customer Care Billing Department
Binary Telecom Inc.
10200 SW Allan Blvd. Ste D
Beaverton, OR 97005
or
billing@Binary Telecom.com

4.3 Payment
Binary Telecom accepts payments only by means as set forth in Section 4.1. Your initial use of the Service authorizes Binary Telecom to charge the credit card account number on file with Binary Telecom, including any changed information given Binary Telecom if the card expires or is replaced, or if you substitute a different card, for Binary Telecom charges as set forth in Section 4.1. This authorization will remain valid until 30 days after Binary Telecom receives your written notice terminating Binary Telecom's authority to charge your credit card, whereupon Binary Telecom will charge you the disconnect fee and any other outstanding charges and terminate the Service. Binary Telecom may terminate your Service at any time in its sole discretion, if any payment isnít received by Binary Telecom in a timely manner. In the event of a declined, reversed, or expired credit card and you have not provided Binary Telecom with a valid replacement credit card or in case of any other non-payment of account charges, a fee of $15 may be charged by Binary Telecom to restore service. Termination of Service for declined or expired card, reversed charges or non-payment leaves you FULLY LIABLE to Binary Telecom for ALL CHARGES ACCRUED BEFORE TERMINATION and for all costs incurred by Binary Telecom in collecting such amounts, such as (but not limited to) collection costs and attorney's fees.

4.4 Termination/Discontinuance of Service
Binary Telecom reserves the right to suspend or discontinue providing the Service generally, or to terminate your Service, at any time in its sole discretion. If Binary Telecom discontinues providing the Service generally, or terminates your Service in 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 or your acts or omissions that violate any acceptable use policy of Binary Telecom or of a third party provider to which Binary Telecom is subject), you will be responsible for the full month's charges to the end of the current term, including without limitation unbilled charges, plus the disconnect fee set forth in Section 4.6, all of which immediately become due and payable.

4.5 Taxes
You are responsible for, and shall pay, any applicable federal, state, provincial, municipal, local or other governmental sales, use, excise, value-added, personal property, public utility or other taxes, fees or charges now in force or enacted in the future, that arise from or as a result of your subscription or use or payment for the Service or a Device. Such amounts are in addition to payment for the Service or Devices and will be billed to your credit card as set forth in this Agreement. If you are exempt from payment of such taxes, you shall provide Binary Telecom with an original certificate that satisfies applicable legal requirement attesting to tax-exempt status. Tax exemption will only apply from and after the date Binary Telecom receives such certificate.

4.6 Disconnect Fee
Customer will be charged a disconnect fee of $39.99 ($49.99 CAD) per voice line upon termination of Service for any reason or for convenience by Customer. The disconnect fee becomes due and payable immediately upon termination and will be billed directly to Customer's credit card. If Customer has multiple lines, Customer will be charged a disconnect fee of $39.99 ($49.99 CAD) per line for each line disconnected. To receive a credit for the disconnect fee, Customer must return the Device(s) undamaged and in original condition within fourteen (14) days of termination as set forth in Section 1.8. Binary Telecom will not credit Customer if the Device(s) is damaged or not in its original condition as received by the Customer or if Customer has otherwise failed to comply fully with the requirements of Section 1.8. In the event Customer disconnects multiple lines, Binary Telecom will issue Customer a credit for all disconnect fees upon receipt of all Devices (including without limitation Multimedia Terminal Adapters) in accordance with this Section and Section 1.8. Disconnect Fee does not apply to ďSmall Business UnlimitedĒ Customers.

4.7 Money Back Guarantee; Limitations and Conditions
Binary Telecom offers a 14-day Money Back Guarantee (30 days for Retail Customers; see offer details in advertising or online content of the retailer from whom Retail Customer purchased Equipment for the applicable time period) (such 14, 30 day period, the "Warranty Period"), applicable only to Userís first-ordered line per account, not to additional or secondary lines. Under terms of this Money Back Guarantee, Binary Telecom refunds the activation fee, first month of service, and shipping charges and waives the disconnect fee, provided the terms described below are satisfied. Federal excise taxes and any other applicable taxes cannot be refunded. Binary Telecom reserves the right to terminate or revoke this Money Back Guarantee at any time, without prior notice.
In order to be entitled to this Money Back Guarantee, User (i) must cancel service within the number of days in the Warranty Period after the account activation; (ii) must return all Devices within 14 days after cancellation pursuant to Sections 1.8 and 4.6; and (iii) must not have exceeded 250 minutes of usage (500 minutes for Retail Customers). User remains responsible for any charges for domestic usage in excess of the amount included within the Plan to which User subscribes, international usage (including the charges described in Section 4.9), payphone calls to Binary Telecom toll free numbers and directory assistance. THIS MONEY BACK GUARANTEE DOES NOT APPLY TO ACCOUNTS EXCEEDING 250 MINUTES (500 MINUTES FOR RETAIL CUSTOMERS) OF USAGE AND SUCH ACCOUNTS ARE NOT ELIGIBLE FOR REFUND OF ANY OF THE CHARGES DESCRIBED HEREIN.

In addition to the requirements set forth in Section 1.8, 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 Binary Telecom customer care. 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.

To obtain a return authorization number, User must contact billing@Binary Telecom.com.

4.8 Payphone Charges
If you make use of Binary Telecomís Toll Free Plus feature any toll free feature that may be offered by Binary Telecom in the future, you acknowledge and agree that Binary Telecom is entitled to recover from you any charges imposed on Binary Telecom by payphone owners or operators, either directly or indirectly through Binary Telecomís suppliers in connection with toll free calls made to your number, or any charges imposed on Binary Telecom by its suppliers to recover such costs. Binary Telecom may recover these amounts by means of a per-call charge, rounded up to the next cent, or in such other fashion as Binary Telecom deems appropriate for the recovery of these costs.

4.9 Charges for Directory Calls
Binary Telecom will charge 65 cents for each call made to Binary Telecom directory assistance.

5. WARRANTY and LIABILITY LIMITATIONS / INDEMNIFICATION
5.1 Limitation of Liability
Binary Telecom shall not be liable for any delay or failure to provide the Service, including 911 dialing, at any time or from time to time, or any interruption or degradation of voice quality that is caused by any of the following:
1.) act or omission of an underlying carrier, service provider, vendor or other third party;
2.) equipment, network or facility failure;
3.) equipment, network or facility upgrade or modification;
4.) force majeure events such as (but not limited to) acts of god; strikes; fire; war; riot; government actions;
5.) equipment, network or facility shortage;
6.) equipment or facility relocation;
7.) service, equipment, network or facility failure caused by the loss of power to Customer;
8) outage of Customerís ISP or broadband service provider;
9) act or omission of Customer or any person using the Service or Device provided to Customer; or
10) any other cause that is beyond Binary Telecom's control, including without limitation a failure of or defect in any Device, the failure of an incoming or outgoing communication, the inability of communications (including without limitation 911 dialing) to be connected or completed, or degradation of voice quality.

Binary Telecom's aggregate liability for (i) any failure or mistake; (ii) any claim with respect to Binary Telecomís performance or nonperformance hereunder or (iii) any Binary Telecom act or omission in connection with the subject matter hereof shall in no event exceed Service charges with respect to the affected time period.

5.2 Disclaimer of Damages
IN NO EVENT SHALL BINARY TELECOM, ITS OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES OR AGENTS OR ANY OTHER SERVICE PROVIDER WHO FURNISHES SERVICES TO CUSTOMER IN CONNECTION WITH THIS AGREEMENT OR THE SERVICE BE LIABLE FOR ANY DIRECT, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR FOR ANY OTHER DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF DATA, LOSS OF REVENUE OR PROFITS, OR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE OR INABILITY TO USE THE SERVICE, INCLUDING INABILITY TO BE ABLE TO DIAL 911 OR TO ACCESS EMERGENCY SERVICE PERSONNEL THROUGH THE SERVICE. THE LIMITATIONS SET FORTH HEREIN APPLY TO CLAIMS FOUNDED IN BREACH OF CONTRACT, BREACH OF WARRANTY, PRODUCT LIABILITY, TORT AND ANY AND ALL OTHER THEORIES OF LIABILITY AND APPLY WHETHER OR NOT BINARY TELECOM WAS INFORMED OF THE LIKELIHOOD OF ANY PARTICULAR TYPE OF DAMAGES.

5.3 Indemnification
Customer agrees to defend, indemnify, and hold harmless Binary Telecom, its officers, directors, employees, affiliates 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, the Services, including 911dialing, or the Device. This paragraph shall survive termination of this Agreement.

5.4 No Warranties on Service
BINARY TELECOM MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS OF THE SERVICE FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR ANY WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE OR ANY WARRANTY THAT THE SERVICE WILL MEET CUSTOMERíS REQUIREMENTS. WITHOUT LIMITING THE FOREGOING, BINARY TELECOM DOES NOT WARRANT THAT THE SERVICE WILL BE WITHOUT FAILURE, DELAY, INTERRUPTION, ERROR, DEGRADATION OF VOICE QUALITY OR LOSS OF CONTENT, DATA OR INFORMATION. NEITHER BINARY TELECOM NOR ITS OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES OR AGENTS 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 BINARY TELECOM'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 BINARY TELECOM'S OR ITS SERVICE PROVIDER'S OR VENDORS' NEGLIGENCE. STATEMENTS AND DESCRIPTIONS CONCERNING THE SERVICE OR DEVICE, IF ANY, BY BINARY TELECOM OR BINARY TELECOM'S AGENTS OR INSTALLERS ARE INFORMATIONAL AND ARE NOT GIVEN AS A WARRANTY OF ANY KIND.

5.5 No Warranties, or Limited Warranties, for Devices
If Customer received the Device new from Binary Telecom and the Device included a limited warranty at the time of receipt, Customer must refer to the separate limited warranty document provided with the Device for information on the limitation and disclaimer of certain warranties. Remedies for breach of any such warranties will be limited to those expressly set forth in such documentation. If Customer's Device did not include a limited warranty from Binary Telecom at the time of receipt, Customer agrees that it accepts its Device "as is" and that Customer is not entitled to replacement or refund in the event of any defect, except that for Retail Customers only, Binary Telecom will provide a limited warranty on the Device as to manufacturing defects only for a period of one (1) year from the date of purchase. This Retail Customer limited warranty shall not apply to any defect or failure other than a manufacturing defect, and, without limiting the generality of the foregoing, shall not apply to any defect caused by damage in transit, retailer handling or Retail Customer handling. Retail Customerís sole remedy for any breach of this Retail Customer limited warranty is to obtain a repaired or replacement Device, by following the return procedures set forth in Section 1.8. Retail Customer must include with the returned Device a letter stating that the Retail Customer is returning the Device for warranty repair or replacement and stating the nature of the defect. This Retail Customer limited warranty shall also apply in lieu of the limited warranty included with the Device if such included limited warranty is less favorable to Retail Customer than that contained herein. OTHER THAN WARRANTIES AS TO THE DEVICE EXPRESSLY SET FORTH IN DOCUMENTATION PROVIDED WITH THE DEVICE AND THE RETAIL CUSTOMER LIMITED WARRANTY EXPRESSLY SET FORTH HEREIN, BINARY TELECOM MAKES NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY, FITNESS OF THE DEVICE FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR ANY WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE OR ANY WARRANTY THAT THE, DEVICE OR ANY FIRMWARE OR SOFTWARE IS "ERROR FREE" OR WILL MEET CUSTOMERíS REQUIREMENTS. THE FOREGOING WILL NOT BE DEEMED TO LIMIT ANY DISCLAIMER OR LIMITATION OF WARRANTY SET FORTH IN THE DOCUMENTATION PROVIDED WITH THE DEVICE. DEVICE WARRANTIES DO NOT APPLY TO ďSMALL BUSINESS UNLIMITEDĒ CUSTOMERS.

5.6 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.

5.7 Content
You are liable for any and all liability that may arise out of the content transmitted by or to you or Users using 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. Binary Telecom reserves the right to terminate or suspend affected Services, and/or remove your or Users' content from the Services, if Binary Telecom determines that such use or content does not conform with the requirements set forth in this Agreement or interferes with Binary Telecom's ability to provide Services to you or others or receives notice from anyone that your or Users' use or Content may violate any laws or regulations. Binary Telecom's actions or inaction under this Section shall not constitute review or approval of your or Users' use or Content. You will indemnify and hold Binary Telecom against any and all liability arising from the content transmitted by or to you or to Users using the Services. A "User" means any person, whether authorized or unauthorized, using the Service and/or Device provided to you.

6. GOVERNING LAW / RESOLUTION OF DISPUTES
6.1 Mandatory Arbitration
Any dispute or claim between Customer and Binary Telecom arising out of or relating to the Service or Device provided in connection with this Agreement shall be resolved by arbitration before a single arbitrator administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules (or, for Customers subscribing to service in Canada, a Canadian arbitration organization of Binary Telecomís choosing). The arbitration shall take place in Beaverton, Oregon (or, for Customers subscribing to service in Canada, Victoria, British Columbia) and shall be conducted in English. The arbitrator's decision shall follow the plain meaning of the relevant documents, and shall be final and binding. Without limiting the foregoing, the parties agree that no arbitrator has the authority to: (i) award relief in excess of what this Agreement provides; or (ii) award punitive or exemplary damages. Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. All claims shall be arbitrated individually and Customer will not bring, or join any class action of any kind in court or in arbitration or seek to consolidate or bring previously consolidated claims in arbitration. CUSTOMER ACKNOWLEDGES THAT THIS ARBITRATION PROVISION CONSTITUTES A WAIVER OF ANY RIGHT TO A JURY TRIAL.

6.2 Governing Law
The Agreement and the relationship between you and Binary Telecom shall be governed by the laws of the State of Oregon (or, for Customers subscribing to service in Canada, applicable Canadian law) without regard to its conflict of law provisions. To the extent court action is initiated to enforce an arbitration award or for any other reason consistent with Section 6.1, you and Binary Telecom agree to submit to the personal and exclusive jurisdiction of the courts located within the state of Oregon (or, for Customers subscribing to service in Canada, courts sitting within the province of British Columbia) and waive any objection as to venue or inconvenient forum. The failure of Binary Telecom to exercise or enforce any right or provision of the Agreement shall not constitute a waiver of such right or provision. 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.

6.3 Entire Agreement
This Agreement and the rates for Services found on Binary Telecom's website constitute the entire agreement between you and Binary Telecom and govern your use of the Service, superseding any prior agreements between you and Binary Telecom and any and all prior or contemporaneous statements, understandings, writings, commitments, or representations concerning its subject matter. No amendment to this Agreement shall be binding upon Binary Telecom unless and until posted in accordance with Section 3 hereof.

6.4 Severability
If any part of this Agreement is legally declared invalid or unenforceable, all other parts of this Agreement are still valid and enforceable. Such invalidity or non-enforceability will not invalidate or render unenforceable any other portion of this Agreement.

7. PRIVACY
Binary Telecom Service utilizes, in whole or in part, the public Internet and third party networks to transmit voice and other communications. Binary Telecom is not liable for any lack of privacy which may be experienced with regard to the Service. Please refer to our Privacy Policy applicable to you at <www.binarytelecom.com> for additional information.

Privacy Policy

Binary Telecom, Inc. respects your privacy. Any personal information you provide to us ó including your name, address, telephone number, and e-mail address ó will not be released, sold, or rented to any entities or individuals outside of Binary Telecom, Inc., or authorized partners and resellers. Binary Telecom, Inc. or one of our authorized partners or resellers, may contact you in regards to Binary Telecom, Inc. products or related services. However, Binary Telecom, Inc. will release such personal information if required by law or by a court of competent jurisdiction.

Binary Telecom, Inc. customers may receive information regarding special Binary Telecom, Inc. events, press releases, customer communications, news of complementary technologies from our strategic partners, and/or product-specific technical information including notifications of software patches and upgrades.

At any time you may request to be removed from our electronic mailing list via an e-mail to support@binarytelecom.com. Just include your e-mail address, and add the word - remove - on the subject line.

If you have any questions about our privacy policy, please email service@binarytelecom.com.

The Binary Telecom, Inc., Privacy Policy is subject to change without notice.