July 1st 2005

1. Before setting up an account with DRAGNFLY WIRELESS INC.

Please read the terms and conditions of this Customer Service Agreement before setting up an account with DRAGNFLY WIRELESS INC. ("DRAGNFLY"). The terms and conditions of this Agreement will govern the relationship between you (the "Customer") and DRAGNFLY.

DRAGNFLY provides its wireless Internet access services (the "Services") as they may exist from time to time, to Customers who establish accounts with DRAGNFLY. By establishing an account with DRAGNFLY or using any software ("Software") provided, developed, licensed or owned by DRAGNFLY, a Customer agrees to be bound by this Agreement and to use the Services in compliance with this Agreement and other DRAGNFLY policies posted from time to time on DRAGNFLY's website (the "DRAGNFLY Website) at www.dragnfly.com. 

DRAGNFLY may change or modify or add to the terms and conditions of this Agreement, the Services it provides and the fees it charges at any time. Such changes, modification or additions will be effective immediately upon posting on the DRAGNFLY Website. Customers should review the DRAGNFLY Website periodically to be aware of any changes to this Agreement.

2. Customers

Users of DRAGNFLY's Services must be at least eighteen years old or have the consent of their parents or legal guardians. Therefore, if the Customer is an individual, he or she certifies that he or she is at least eighteen years old. Each Customer assumes all responsibility for the use of the Services and his, her or its account by underage users.

This Agreement is not assignable by the Customer.

3. Contacting DRAGNFLY

• A Customer may contact DRAGNFLY's Customer Service Department as follows:
• by telephone at +1.866.4DRAGNFLY [866.437.2463]
• by email at HelpDesk@DragnFly.com
• by registered or certified mail at 16680 Luther Way, Suite 201, Eden Prairie MN, 55346 USA

4. Fees

DRAGNFLY's current fee schedule for Services is posted on the DRAGNFLY Website. DRAGNFLY may change or modify or add to the fees it charges at any time. Such changes, modification or additions will be effective immediately upon posting on the DRAGNFLY Website. Customers should review the DRAGNFLY Website periodically to be aware of any changes to DRAGNFLY's fee schedule.

5. Payment Obligations

A Customer must provide DRAGNFLY with accurate and complete billing information including legal name, address, telephone number and credit card/billing information and must advise DRAGNFLY of any changes to this information within 30 days of the change.

A Customer is responsible for all charges to his, her or its account.

Customers having questions regarding charges to an account should contact DRAGNFLY's Customer Service Department. All charges are considered valid unless disputed in writing within 60 days of the billing date. Adjustment will not be made for charges that are more than 60 days old.

Charges are billed to a Customer's credit card each month. DRAGNFLY is not responsible for any charges or expenses (e.g., for overdrawn accounts, exceeding credit card limits, etc.) resulting from charges billed by DRAGNFLY.

DRAGNFLY may, in its sole discretion, suspend or cancel a delinquent account. Suspension or cancellation of a delinquent account by DRAGNFLY will not relieve the Customer of responsibility for all charges accrued to the date of suspension or cancellation or for all late charges, collections fees or similar amounts incurred in connection with the account.

5.1 - Refund Policy - The sale of all DRAGNFLY access time products are final.

6. Setting up an Account

When a Customer sets up his, her or its account, he, she or it must provide a valid email address and choose a password. Only the Customer and those authorized by the Customer when setting up his, her or its account are authorized to use the account. A Customer should keep his, her or its password confidential. DRAGNFLY is not responsible for charges incurred by the unauthorized use of the Customer's account. If a Customer discovers any unauthorized use of his, her or its account, he, she or it should contact DRAGNFLY immediately at DRAGNFLY's Customer Service Department.

7. Terminating an Account

A Customer may terminate his, her or its account at any time upon notice to DRAGNFLY's Customer Service Department. If notice of termination is received from the Customer at least 5 business days prior to the end of a billing period, termination of the account will be effective at the end of such billing period. If a notice of termination is received less than 5 business days prior to the end of a billing period, termination will be effective at the end of the following billing period and charges to the account will continue to accrue until the end of the following billing period.

DRAGNFLY may terminate a Customer's account at any time and for any reason including, without limitation, if the Customer is in breach of this Agreement.

Upon termination of a Customer's account, the Customer will remain liable for payment of all charges incurred to the date of termination, the Customer will remain liable under the Indemnity set forth in Section 9 and the Disclaimer and Limitations of Liability provisions of Section 10 will continue for the benefit of DRAGNFLY.

8. Monitoring Use

DRAGNFLY has no obligation to monitor the use of the Services, but DRAGNFLY may do so and it may disclose information regarding the use of the Services if, for any reason it believes, in its sole discretion, that it is reasonable for it do so including, without limitation, in order for it to satisfy any legal requirements or requests, to operate the Services properly or to protect itself and its Customers.

9. Indemnity

The Customer agrees to defend, release, indemnify and hold DRAGNFLY harmless from all liabilities, claims and expenses of any nature or kind including without limitation reasonable legal fees, arising from the use of the Customer's account or the use of the Services by the Customer or arising from any breach of this Agreement by the Customer.

10. Disclaimers and Limitations of Liability by DRAGNFLY

THE CUSTOMER ACKNOWLEDGES AND AGREES THAT THE SERVICES ARE NOT GUARANTEED AND ARE PROVIDED ON AN "AS IS" BASIS AND THAT USE OF THE SERVICES BY THE CUSTOMER IS AT THE CUSTOMER'S OWN RISK. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING THE CUSTOMER FURTHER ACKNOWLEDGES AND AGREES THAT:

DRAGNFLY does not represent or warrant that any Service will be uninterrupted, error-free or free from viruses or other harmful components.

All conditions, representations and warranties, whether express or implied, including but not limited to any implied warranty of merchantability, fitness for a particular purpose or title or non-infringement are disclaimed and expressly excluded from this Agreement, except to the extent such disclaimer is prohibited by law.

DRAGNFLY is not responsible for the content of the information and material available through the Internet.

DRAGNFLY makes no representations or warranties and gives no guarantees as to the quality, suitability, truth, accuracy or completeness of any information or materials contained on the Internet. Any questions regarding any such information or materials should be directed to the providers of such information or materials.
DRAGNFLY will not be liable for any claims arising either directly or indirectly from the accessing, downloading, installation, use, reproduction of and or receipt or distribution of any information or material through any Services.

DRAGNFLY will not be liable for any direct, indirect, punitive, special, incidental or consequential damage (including loss of business, revenue, profits, use, data or other economic advantage) however such damage may arise, whether in tort as a result of breach of contract, even if DRAGNFLY has been previously advised of the possibility of such damage.

The Customer acknowledges the inherent risks to security, confidentiality and privacy of wireless communication and agrees that he, she or it is solely responsible for ensuring the security of his, her or its data and/or equipment used in connection with the Services and that he, she or it will not may any claim against DRAGNFLY for re-run time, lost data, inaccurate output, work delays or lost profits resulting from the use of the Services.

11. Acceptable Use

DRAGNFLY's dedication to customer service means that DRAGNFLY strives to maintain Services that provide Customers with an enjoyable Internet experience free from interference by those who use the Services in an improper or unlawful manner. Accordingly, DRAGNFLY's Acceptable Use Policy as described in this Section is incorporated in and forms part of this Agreement and all users of DRAGNFLY's Services must comply with it.
A Customer's use of the Services is governed by applicable local, provincial, national and international laws and regulations, including without limitation laws relating to copyright, trademark, obscenity, defamation, the right of privacy, false advertising and fraud. In addition to complying with such laws and regulations, each Customer is expected to use his, her or its best judgment and to be respectful of others. A Customer must use his, her or its best efforts to avoid interfering with the use of the Services by others and to ensure that he, she or it follows rules of proper conduct.

Although DRAGNFLY does not exercise editorial control or review over the content of any web site, electronic mail transmission, newsgroup or other material created or accessible by using the Services, it may remove, block, filter or restrict by any other means any materials that in DRAGNFLY's sole discretion, may be illegal, may subject DRAGNFLY to liability, or which violate this Acceptable Use Policy. DRAGNFLY may cooperate with legal authorities and/or third parties in the investigation of any suspected or alleged crime or civil wrong.
The following is a list of activities that are violations of this Acceptable Use Policy. This list is intended to be illustrative, only. It is not exhaustive. There may be other activities that violate this Acceptable Use Policy. DRAGNFLY is the sole and final arbiter of what is an acceptable use of the Services. Without limitation, a Customer will be in breach of this Acceptable Use Policy and this Agreement if he, she or it:

• uses the Services to transmit any material (by uploading, posting, email or otherwise) that intentionally or unintentionally violates any applicable local, provincial, national or international law or any rules or regulations made thereunder including without limitation material that is threatening, abusive, tortuous, harassing, defamatory, libellous, obscene, invasive of another's privacy or hateful;
• uses the Services to harm or attempt to harm children in any way;
• uses the Services to make fraudulent offers to sell or buy products, items or services or to advance any type of scam, financial or otherwise, such as "pyramid schemes", "Ponzi schemes", unregistered sales of securities, securities frauds and chain letters;
• adds, removes or modifies identifying network, message or article header information or other identifiers in an effort to deceive or mislead others; attempts to impersonate any person by using forged headers or other identifying information provided, however, that the use of anonymous remailers or nicknames are not in themselves impersonation;
• uses the Services to transmit material by (uploading, posting, email or otherwise) that the user does not have a right to make available to others whether under any law or any contractual or fiduciary relationships;
• uses the Services to transmit any unsolicited commercial email or unsolicited bulk email or uses deliberately misleading headers in emails sent to multiple parties;
• uses the Services to transmit any material by (uploading, posting, email or otherwise) that contains software viruses or any other computer code, files or programs designed to interrupt, destroy or limit the functionality of any computer software or hardware or telecommunications equipment;
• uses the Services to access or attempt to access the accounts of others, or to penetrate or attempt to penetrate security measures of DRAGNFLY's or any other's computer software or hardware, electronic communications system or telecommunications system, whether or not resulting in disruption of service or the corruption or loss of data;
• disobeys any requirements, procedures, policies or regulations of any networks connect to the Services;
• uses the Services to transmit any material by uploading, posting, email or otherwise that infringes any copyright, trademark, patent, trade secret or other proprietary rights of any other person;
• uses the Services to collect or attempt to collect personal information about another person without that person's knowledge or consent;
• resells the Services without authorization to do so by DRAGNFLY; or
• uses the Services for high volume date transfers including in particular but without limitation sustained high volume data transfers or uses the Services to host a server including without limitation to host a web server or an IRC server.

12. In the event DRAGNFLY's Acceptable Use Policy is violated

DRAGNFLY requests that anyone who believes that DRAGNFLY's Acceptable Use Policy is being violated contact DRAGNFLY at DRAGNFLY's Customer Service Department and provide as much of the following information as possible:

• the IP address used to commit the alleged violation
• the date and time of the alleged violation, including the time zone
• evidence of the alleged violation

When reporting a matter regarding unsolicited email please provide a copy of the unsolicited email messages with full headers, if possible.

Upon receiving notice of an alleged violation DRAGNFLY may take such action as DRAGNFLY in its sole discretion may determine including without limitation:

• issuing warnings, written or verbal
• suspending or terminating the account of a Customer who violates the Acceptable Use Policy
• charge a Customer who violates the Acceptable Use Policy with administrative costs and/or reactivation charges
• bring legal action to enjoin violations and/or to collect damages

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