1. DESCRIPTION OF SERVICES.

Company agrees to provide Client with the following services, free of charge:

- up to 500 megabites of web space to host Client's adult paysite;
- domain(s)/sub-domain(s) hosting on Company's DNS servers;
- unlimited bandwidth usage;
- one fully functional FTP account;
- one POP3 email account;
- unlimited email aliasing;
- ability to run CGI/Perl scripts;
- ability to use Apache Server Side Includes (SSI);
- access to the web server raw log files;
- use web server .htaccess protection;
- daily and monthly web server statistics.

Company agrees to transfer Client's existing domain name(s) to Company's DNS servers, or register a new domain name for Client, free of charge.

Company agrees to provide Client with instant credit card and online check billing solution.

Company agrees to pay Client 70% of all initial sales made through Client's web site plus 70% of all recurring sales.

2. DISCLAIMER.

The services provided by Company are provided as is, without warranty of any kind, including the implied warranties of merchantability and fitness for a particular purpose. Client understands that the Internet, like any public network, is inherently unsecure. Company will take measures to help insure site security and stability, however Client agrees that Company shall not be liable for any loss of profits, loss of use, interruption of business or service, or any direct, indirect, incidental or consequential damages of any kind, whether as a result of security breach, events beyond the control of Company, or otherwise.

3. SECURITY.

The Client is responsible for all use of Client's account(s) and confidentiality of password(s), including choosing safe passwords and ensuring file protections are set correctly. Company will suspend access or change access to Client's account(s) immediately upon notification by Client that Client's password has been lost, stolen or otherwise compromised.

4. GROUNDS FOR TERMINATION

Grounds for termination of this Agreement include but are not limited to the following:

4.1 Long term inactivity or non-use of Client's web space. Client's account may be considered inactive in the following cases:
- no hits or edits on the web site or any page of the web site for the last 60 days;
- virtual web server receives less than 100 hits per month;
- no initial sales or recurring sales (renewals) for the last 60 days.
4.2 Providing Company with incorrect contact information, including electronic and postal addresses;
4.3 Company believes or is informed that Client is not over the age of majority;
4.4 Company believes or is informed that Client has violated any of the terms, conditions, warranties, or promises in this Agreement or any subsequent modification of it;
4.5 Company believes or is informed that Client's web site has any materials which infringes the copyright rights, or any other intellectual property rights of any person or company;
4.6 Client agrees that in the event that Company believes that Client has breached any provision(s) of this Agreement, Company in its sole and absolute discretion, at any time may without any liability to Client, and in addition to any other remedies, erase or purge such materials from Company's equipment;
4.7 Company decides to end the whole program or just Client's Agreement with Company, which Company reserves the right to do, in its absolute discretion, at any time, and with reason or no reason as it deems appropriate in its sole and exclusive discretion.

5. CLIENT OBLIGATIONS, DUTIES, REPRESENTATIONS AND WARRANTIES.

Client hereby acknowledges and agrees that Company’s willingness to enter into this Agreement is based on various material representations, warranties and guarantees made by Client and relied upon by Company, as set forth in detail in this paragraph:

5.1 Client agrees not to use any other than provided by Company credit card biling system or age verification system on Client's web site;

5.2 Client agrees to deny access to anyone who attempts to enter or view the contents of protected area of Client's web site unless that person uses a valid password or access code provided by Company;

5.3 Client agrees not to advertise banners and/or links to any other revenue program within the protected area of Client's web site;

5.4 Client agrees and warrants that all of Client's use of web site space and Company’s equipment and all sales and distributions, by any and all means, of any type(s) content including, but not limited to executable files (e.g., .EXE), digitized audio/visual files (e.g., MP3), or archived copies of copyrighted works (.ZIP); goods, including, but not limited to videotapes and CD-ROM products, and any type of services by Client, which are advertised and/or promoted by, or are in any other way directly or indirectly associated with Client's use of web site space or Company’s equipment, shall at all times comply with all laws, including, but not limited to, all federal, state and local laws throughout the United States of America;

5.5 Client affirmatively represents, agrees and warrants that Client has and at all times shall have all necessary intellectual property rights, including, but not limited to, all copyrights, trademark and service mark rights and rights of publicity, both in the United States and throughout the world, to reproduce and disseminate, via the Internet, all data which Client stores in web site space or which Client otherwise promote, advertise, disseminate and/or distribute to anyone by Client's direct or indirect use of web site space or Company’s equipment;

5.6 Client agrees and warrants that no data or other matter Client stores on or allow to be transmitted by Company’s equipment shall constitute or contain material which is harmful, violent, threatening, abusive, hateful, libelous, slanderous, defamatory, or any material which constitutes an infringement, misappropriation or violation of any person’s intellectual property rights, including without limitation, copyrights, trademark rights, rights of publicity, patent rights, privacy rights and all other personal and proprietary rights;

5.7 Client agrees and warrants that Client will neither store on nor allow to be transmitted by Company’s equipment any data or other matter which constitutes child pornography or which involves depictions of nudity or sexuality by an age inappropriate-looking performer (i.e. someone who looks younger than 18 years of age, regardless of their actual age) or by a performer who is portrayed or made to appear, as a person under the age of 18 years of age by virtue of the advertising, script, make-up, demeanor, costuming, setting, etc. In connection, therewith, Client represent and warrant that Client will not store or allow to be transmitted by Company’s equipment any sexual materials, like photographs or other visual images, which do not comply with federal labeling and record-keeping laws, specifically 18 U.S.C section 2257;

5.8 Client agrees and warrants that all data, visual materials, advertising and other matter Client stores on or allow to be transmitted by Company’s equipment shall be solely for entertainment and/or educational purposes and that Client shall assume the sole responsibility and duty to ensure that all such data, visual materials, advertising and other matter shall only be transmitted exclusively to willing adults and only to places in which such materials comply with contemporary community standards;

5.9 Client agrees that Company's agent for receipt of any claim of alleged infringement of copyright, or any other intellectual property rights of any kind shall be reorted to copyright@intermg.net, whose address is 104 6th Street, Suite B, Lynden, WA 98264.

5.10 Client agrees and warrants that any and all material(s) of every kind which Client stores in web site space or transmit using Company's equipment shall at all times be free from any and all damaging software defects, including, but not limited to, software “viruses”, “worms”, “Trojan Horses”, and other source code anomalies, which may cause software or hardware disruption or failure, reduced computer operating speed, or compromise any security system.

5.11 Client agrees and warrants not to use any form of mass unsolicited electronic mail solicitations, news group postings, IRC posting or any other form of “spamming” as a means of promoting Client's web site, or for any other purpose, directly or indirectly affiliated or related to Client's web site.

5.12 Client agrees and warrants not to engage in any false, deceptive or fraudulent activities in association with Client's web site or use of web sita space or Company's equipment.

5.13 Client shall not use any of the equipment, storage or server space provided by Company to Client pursuant to this Agreement as a storage site for files callable from any other site or any remote server.

5.14 Client hereby represents and warrants that at the time of entering into this Agreement Client is over eighteen (18) years of age (or twenty-one (21) in places where eighteen years is not the age of majority) and is fully competent to enter in to this Agreement.

6. AMENDMENTS AND CHANGES.

Company reserves the right to make amendments or changes to this agreement with written notice to Client. For the purposes of this agreement, written notice may be in the form of electronic mail (email). An updated version of this Agreement is always available at the following URL: http://www.500megsfree.com/terms.htm.

7. LEGAL RECOURSE.

All Disputes arising from or related to this Agreement shall be finally settled by, at the sole choice of Company, arbitration or through municipal small claims court. In the case of arbitration, the arbitrator shall be selected by Company. Unless otherwise agreed upon by both Client and Company, the place of arbitration or the filing and hearing of any small claims action shall be in Whatcom County, Washington. All costs of legal recourse including, without limitation, legal, arbitration, and court fees shall be awarded to the prevailing party. Client and Company agree to abide by the ruling of the arbitrator or judge.

8. ENTIRE AGREEMENT AND SEVERABILITY.

This represents the complete Agreement and understanding between Company and Client with respect to the subject matter herein. Every provision in this Agreement is intended to be severable. In the event that any term or provision of this Agreement is held by a court to be unenforceable, then the remaining provisions shall remain in full force and effect.