Document:

<Page>

                                                     AT&T MA Reference No. 10027

        AT&T SERVICE ORDER ATTACHMENT -- VOICE/DATA SERVICES COVER PAGE

<Table>
<S>                                      <C>                                 <C>
---------------------------------------- ----------------------------------- -------------------------------------------
CUSTOMER Legal Name                      AT&T Corp ("AT&T")                  AT&T Sales Contact Name
("Customer", "You" or "Your")
---------------------------------------- ----------------------------------- -------------------------------------------
ACT Teleconferencing Services Inc.       AT&T Corp                           Mary Kingsley
---------------------------------------- ----------------------------------- -------------------------------------------
CUSTOMER Address                         AT&T Address                        AT&T Sales Contact Address
---------------------------------------- ----------------------------------- -------------------------------------------
1526 Cole Boulevard                      55 Corporate Drive                  7979 East Tufts Avenue
Golden                                   Bridgewater, New Jersey 08807       Denver
Colorado USA                                                                 Colorado USA
80401                                                                        80237
---------------------------------------- ----------------------------------- -------------------------------------------
CUSTOMER Contact                         AT&T Contact                        AT&T Sales Contact Information
---------------------------------------- ----------------------------------- -------------------------------------------
Name: Gene Warren                        Master Agreement Support Team       Telephone: Mary Kingsley
Title: President                         Email: mast@att.com                 Fax: 303-265-8338
Telephone: 303-233-3500                  url:   http://ma.kweb.att.com/      Email: mkingsley@att.com
Fax:                                     Fax:   908-658-2562                 Branch Manager: Terri Tochihara
Email:                                                                       Sales Strata: Growth  Sales Region: Central
---------------------------------------- ----------------------------------- -------------------------------------------
CUSTOMER Billing Address                 Customer Account Information
---------------------------------------- ----------------------------------- -------------------------------------------
1526 Cole Boulevard                      Master Customer Number (MCN):
Golden
Colorado USA                             Plan ID No.
80401
---------------------------------------- ----------------------------------- -------------------------------------------
</Table>

This Service Order Attachment (including its addenda, if any) is an
Attachment to the Master Agreement between Customer and AT&T dated June 22,
2001 and is an integral part of that Agreement.

The Attachment and the underlying Applicable Tariffs, as amended from time to
time, apply to the AT&T domestic interstate and international Services
ordered under this Attachment. The Master Agreement also applies to the
domestic interstate Services. When the AT&T International Services are
detariffed, they will also be covered by the Master Agreement.

In addition, for such domestic services, Section 9.2(iv) of the Master
Agreement shall read as follows:

"FOR DAMAGES OTHER THAN THOSE SET FORTH ABOVE AND NOT EXCLUDED UNDER THIS
AGREEMENT OR ANY ATTACHMENT, EACH PARTY'S LIABILITY SHALL BE LIMITED TO
PROVEN DIRECT DAMAGES NOT TO EXCEED PER CLAIM (OR IN THE AGGREGATE DURING ANY
TWELVE (12) -MONTH PERIOD) AN AMOUNT EQUAL TO THE TOTAL NET PAYMENTS PAYABLE
BY YOU FOR THE APPLICABLE SERVICE UNDER THIS ATTACHMENT DURING THE THREE (3)
MONTHS PRECEDING THE MONTH IN WHICH THE DAMAGE OCCURRED. THIS SECTION 9.2(iv)
SHALL NOT LIMIT YOUR RESPONSIBILITY FOR THE PAYMENT OF ANY AND ALL PROPERLY
DUE CHARGES UNDER THIS AGREEMENT."

The order of priority in the event of inconsistency among terms shall be the
Attachment, then the Master Agreement, and then the Applicable Tariffs.

In the event this Attachment is executed after detariffing of services
provided herein, references to "Applicable Tariffs" will be construed as
references to the non-tariffed successor to the Applicable Tariffs known as
the AT&T Service Guide at http://www.att.com/serviceguide/business

CUSTOMER HEREBY PLACES AN ORDER FOR:

<Table>
<S><C>
 /X/ New Attachment        / / Existing Attachment No.      / / Amendment of Existing Attachment No.
-------------------------------------------------------------------------------------------------------
EXISTING PRICING PLAN REPLACEMENT/DISCONTINUANCE:
/ /  Check here and identify any AT&T CT, Attachment, or other AT&T pricing plan being discontinued in
     conjunction with this order. Also specify the CT No./Attachment No., Plan ID No. or Main Billed
     Account No. (Note: Charges may apply as specified in the plan being discontinued.)
     CT No./Attachment No.                 Plan ID No.              Main Billed Account No.
-------------------------------------------------------------------------------------------------------
</Table>
--------------------------------------------------------------------------------
      SIGNATURE BELOW BY YOUR AUTHORIZED REPRESENTATIVE IS YOUR CONSENT TO
          THE TERMS AND CONDITIONS OF THIS SERVICE ORDER ATTACHMENT.
--------------------------------------------------------------------------------

CUSTOMER: ACT Teleconferencing              AT&T CORP.
          Services Inc.

By: /s/ Gene Warren                         By: /s/ R.J. Pallseno
   -------------------------------------       --------------------------------
            (Authorized Signature)                  (Authorized Signature)

               Gene Warren                             R.J. Pallseno
----------------------------------------    ------------------------------------
(Typed or Printed Name)                     (Typed or Printed Name)

                  COO                                District Manager
----------------------------------------    ------------------------------------
(Title)                                     (Title)

                3-6-01                                    3/15/01
----------------------------------------    ------------------------------------
(Date)                                      (Date)

<Page>

ACT Teleconferencing   WK-27881                                02/26/01  9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                       Original Title Page
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                    ** All material on this page is new. **

                         CONTRACT TARIFF NO. WK-27881

                                   TITLE PAGE

This Contract Tariff applies to AT&T Software Defined Network Services; AT&T
Concert Virtual Network Service; AT&T Concert Inbound Service, AT&T 800
Services; AT&T Private Line Services; AT&T InterSpan Frame Relay Service;
AT&T International Satellite Service; AT&T Local Channel Services; AT&T
Conference Services and Switched Video Conferencing Services for interstate
or foreign communications in accordance with the Communications Act of 1934,
as amended.

Telecommunication services provided under this Contract Tariff are furnished
by means of wire, radio, satellite, fiber optics, or any suitable technology
or combination of technologies.

<Page>

ACT Teleconferencing    WK-27881                                02/26/01 9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 1
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                   ** All material on this page is new. **

                        CONTRACT TARIFF NO. WK-27881

                                   CHECK SHEET

The Title Page and Pages 1 through 20 inclusive of this tariff are effective as
of the date shown.

                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                            Page
                                                                            ----
<S>                                                                         <C>
Check Sheet...............................................................   1
List of Concurring, Connecting and Other Participating Carriers...........   1
Explanation of Symbols - Coding of Tariff Revisions.......................   1
Trademarks and Service Marks..............................................   2
Explanation of Abbreviations..............................................   2
General Provisions........................................................   3
Contract Summary..........................................................   4

</Table>

LIST OF CONCURRING, CONNECTING AND OTHER PARTICIPATING CARRIERS
Concurring Carriers - NONE
Connecting Carriers - NONE
Other Participating Carriers - NONE

EXPLANATION OF SYMBOLS - Coding of Tariff Revisions

Revisions to this tariff are coded through the use of symbols. These symbols
appear in the right margin of the page. The symbols and their meanings are:

       R - to signify reduction.
       I - to signify increase.
       C - to signify changed regulation.
       T - to signify a change in text but no change in rate
           or regulation.
       S - to signify reissued matter.
       M - to signify matter relocated without change.
       N - to signify new rate or regulation.
       D - to signify discontinued rate or regulation.
       Z - to signify a correction.

Other marginal codes are used to direct the tariff reader to a footnote for
specific information. Codes used for this purpose are lower case letters of the
alphabet, e.g., x, y and z. These codes may appear beside the page revision
number in the page header or in the right margin opposite specific text.

<Page>

ACT Teleconferencing    WK-27881                                02/26/01 9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 2
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                   ** All material on this page is new. **

TRADEMARKS AND SERVICE MARKS - The following marks, to the extent if any, used
throughout this tariff, are trademarks and service marks of AT&T Corp.

                  Trademarks                 Service Marks
                  ----------                 -------------
                  None                       ACCUNET
                                             DATAPHONE
                                             InterSpan
                                             MEGACOM
                                             OneNet
                                             READYLINE
                                             USADirect

EXPLANATION OF ABBREVIATIONS

Adm.            -  Administrator
CISD            -  Customer's Initial Service
CT              -  Contract Tariff
GMUC            -  Gross Monthly Usage Charges
GSDN            -  Global Software Defined Network
IOCs            -  Inter Office Channels
kbps            -  kilobits per second
MARC            -  Minimum Annual Revenue Commitment
Mbps            -  Megabits per second
OneNet          -  Software Defined Network Integrated Outbound and
                   Inbound Optional Discount Plan
SDN             -  Software Defined Network

                               GENERAL PROVISIONS

I.  TERM START DATE AND CUSTOMER'S INITIAL SERVICE DATE - For the Services
Provided under this Contract Tariff, the date on which the term of this Contract
Tariff begins is referred to as the Term Start Date (TSD), which shall be the
first day of the Customer's 1st full billing month following the Customer's
Initial Service Date (CISD) for the AT&T SDN Services/AT&T 800 Services. The
rates and discounts specified in this Contract Tariff will apply commencing at
the CISD. For AT&T SDN Services/AT&T 800 Services and associated AT&T
Terrestrial 1.544 Mbps Local Channel Services and AT&T Concert VNS, Concert
Inbound Service and AT&T Conference Services the CISD can be no sooner, but can
be later, than: (1) the first day of the first full billing month following the
later of the Contract Tariff Effective Date (CTED) or the date on which AT&T
accepts the Customer's order for the Services Provided hereunder ("Acceptance
Date"), when the later of such dates is on or before the 10th of a month, or (2)
the first day of the second full billing month following the later of the CTED
or the Acceptance Date, when the later of such dates is after the 10th of a
month. For AT&T Private Line Services, AT&T InterSpan Frame Relay Service, AT&T
International Satellite Service and AT&T Local Channel Services, that CISD is
the date that the Customer begins service under this Contract Tariff.

<Page>

ACT Teleconferencing     WK-27881                              02/26/01 9:24 AM

AT&T COMMUNICATIONS                                CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 3
Bridgewater, NJ 08807
Issued: Iii                                                     Effective:  Eee

                    ** All material on this page is new. **

                         CONTRACT TARIFF NO. WK-27881

1. SERVICES PROVIDED

A. AT&T Software Defined Network (SDN) Services (AT&T Tariff B.C.C. No. 1)

B. AT&T Concert Virtual Network Service (Concert VNS) and Concert Inbound
Service (Concert IS) (AT&T Tariff F.C.C. No. 1)

C. AT&T 800 Services (AT&T Tariff F.C.C. Nos. 2 and 14)

D. AT&T Private Line Services (AT&T Tariff F.C.C. No. 9)

The International AT&T Private Line Services to Canada and Mexico consist of
IOCs and associated components which include office Functions, Office
Connections and Channel Options.

E. AT&T InterSpan Frame Relay Service (FRS) (AT&T Tariff F.C.C. No. 4)

F. AT&T International Satellite Service (AT&T Tariff F.C.C. No. 7)

G. AT&T Local Channel Services (AT&T Tariff F.C.C. No. 11)

H. AT&T Conference Services (AT&T Tariff F.C.C. No. 1)

I. Switched Video Conferencing Services (AT&T Tariff F.C.C. No. 4)

The Customer must identify with each order for AT&T Conference Services and
Switched Video Conference Services that such services are to be provided
under this Contract Tariff.

2. CONTRACT TERM; RENEWAL OPTION -  The term of this Contract Tariff (CT) is
three years. This CT may be renewed in its entirety for an additional 1 year
period at the rates, terms and conditions then in effect under this CT,
provided AT&T receives in writing, the Customer's order to renew at least 45
days prior to the last day of the initial term.

3. MINIMUM COMMITMENTS/CHARGES

A. MINIMUM ANNUAL REVENUE COMMITMENT - The Minimum Annual Revenue Commitment
(MARC for the AT&T Services provided under this CT is as follows:

CT TERM YEAR      YEAR 1         YEAR 2          YEAR 3
MARC              $30,000,000    $30,000,000*    $30,000,000*
* or 90% of the previous year's total of the actual MARC-eligible Charges,
whichever is greater.

<Page>

ACT Teleconferencing     WK-27881                              02/26/01 9:24 AM

AT&T COMMUNICATIONS                                CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 4
Bridgewater, NJ 08807
Issued: Iii                                                     Effective:  Eee

                    ** All material on this page is new. **

3.A. MINIMUM ANNUAL REVENUE COMMITMENT (CONTINUED)

The MARC will be satisfied by the "MARC-eligible charges" which are the total
of the following charges:

(1) Gross Monthly Usage Charges (GMUC) as specified in the SDN Integrated
Outbound and Inbound Option Discount Plan (OneNet) in AT&T Tariff F.C.C.
No. 1, as amended from time to time (including undiscounted recurring charges
for AT&T SDN Services Optional Features, AT&T 800 Services Optional Features
and AT&T Advanced 800 Service) Concert Virtual Network Service (foreign to
U.S.) and Concert Inbound Service GMUCs for the services provided under this
CT;

(2) the undiscounted recurring charges incurred by the Customer for Concert
Virtual Network Service and Concert Inbound Service;

(3) the undiscounted recurring charges incurred by the Customer for Digital
Service Volume Pricing Plan (DSVPP)-eligible  Service Components;

(4) the undiscounted recurring charges incurred by the Customer for the
following AT&T International Private Line services: International Full Channel
Service-Overseas-Overseas Cable Digital Channels, Voice Grade Private Line
Service-Overseas Half Channels-International ACCUNET Digital Services-Half
Channels;

(5) the undiscounted recurring Charges for AT&T International Satellite
shared Earth Station Service-Half Channel;

(6) the GMUCs for the AT&T Conference Services consisting of the following:
Audio-Teleconference Bridge-Dial-Out Conference-Domestic and International,
Meet-Me Bridge Arrangement Options 2 and 3-Domestic and International, AT&T
Event TeleConference Service-Domestic and International (including charges
for AT&T Conference Services Optional Features as agreed to by AT&T and the
Customer);

(7) usage charges for Switched Video Conferencing Services;

<Page>

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 5
Bridgewater, NJ 08807
Issued:  Iii                                                     Effective:  Eee

                  ** All material on this page is new. **

3.A.  MINIMUM ANNUAL REVENUE COMMITMENT (continued)

(8) AT&T Wireless Service (AWS) ordered under a separate contract between the
Customer and AT&T through the Corporate Digital Advantage (CDA) Program, in
approved AWS Markets only, limited to the following: (a) Detail Billing
Charges, (b) charges for additional Cellular Service features (excluding
enhanced features), (c) one-time charges for Service Activation, conversion
and charges for changing rate plans, (d) Monthly Access Charges, (e) Home
Airtime Charges, (f) Roaming Airtime Charges (and roaming surcharges)
incurred while roaming in AWS Markets, (g) AT&T 10288 Cellular Long Distance
calls associated with the CDA program;

(9) the undiscounted recurring charges incurred by the Customer for AT&T
ACCU-Ring Network Access Service which have been ordered under a separate
contract between the Customer and AT&T, excluding Special Construction
Charges and Individual Case Basis contracts; and

(10) alternative communications capabilities, which have been ordered under a
separate contract between the Customer and AT&T and which have been mutually
designated in writing by the parties prior to or during the term of this
Contract Tariff.

If, on any anniversary of the TSD, the Customer has failed to satisfy the
MARC, the Customer will be billed a shortfall charge in an amount equal to
the difference between the MARC and the total of the actual MARC-eligible
charges incurred for that year.

4.  CONTRACT PRICE - AT&T reserves the right to increase from time to time
the rates for the Services Provided under this CT, regardless of any
provisions in this CT that would otherwise stabilize rates or limit rate
increases, relating to charges imposed on AT&T stemming from an order, rule
or regulation of the Federal Communications Commission or a court of
competent jurisdiction, concerning: (i) payphone use charges, and (ii)
presubscribed interexchange carrier charges ("PICCs"). AT&T will make rate
adjustments under this provision as necessary.

 A.  The Contract Price for the AT&T Services provided under this CT is the
same as the undiscounted Recurring and Nonrecurring Rates and Charges
specified in AT&T Tariffs listed in Section 1., preceding, as amended from
time to time except for those Rates specified in Section 7., following.

<Page>

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 6
Bridgewater, NJ 08807
Issued:  Iii                                                     Effective:  Eee

                  ** All material on this page is new. **

5.  DISCOUNTS - The following discounts are the only discounts for the
Services Provided under this Contract Tariff.  No other discounts apply.

 A.  AT&T SDN SERVICES/AT&T 800 SERVICES - The Customer will receive the
following discounts, each month, in lieu of those provided by the OneNet
Discount Option Plan.  These discounts will be applied in the same manner as
the OneNet Discount Option Plan as specified in AT&T Tariff F.C.C. No. 1, as
amended from time to time.

<Table>
<Caption>
                                      Discount applied
                                      to Domestic SDN
                                      and Domestic &
For Gross Monthly                     International 800
Usage Charges of:                     Services GMUCs
-----------------                     --------------
<S>                                       <C>
Between $0 and $1,250,000                 45.0%
over $1,250,000 up to $2,500,000          46.0%
over $2,500,000 up to $15,000,000         47.0%
over $15,000,000                          00.0%
</Table>

 B.  AT&T CONCERT VNS SERVICES (U.S. to Foreign) - The Customer will receive
the following discounts each month.  This discount is in lieu of any other
discounts for the same services.

<Table>
<Caption>
                                      Discount applied
                                      to International
                                      SDN Usage &
For Gross Monthly                     Concert VNS GMUCs
Usage Charges of:                     (U.S. to foreign)
-----------------                     -----------------
<S>                                       <C>
Between $0 and $500,000                   45.0%
over $500,000 up to $1,000,000            47.0%
over $1,000,000 up to $15,000,000         48.0%
over $15,000,000                          00.0%
</Table>

<Page>
ACT Teleconferencing   WK-27881                                 02/26/01 9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 7
Bridgewater, NJ 08807
Issued:  Iii                                                     Effective:  Eee

                  ** All material on this page is new. **

     5. DISCOUNTS (CONTINUED)

     C. AT&T CONCERT VNS SERVICES (FOREIGN TO U.S.) - The Customer will
receive the following discounts each month. This discount is in lieu of any
other discounts for the same services.

<Table>
<Caption>
                                      Discount applied
                                      to International
                                      SDN Usage &
For Gross Monthly                     Concert VNS GMUCS
Usage Charges of:                     (Foreign to U.S.)
----------------                      -----------------
<S>                                   <C>
Between $0 and $500,000                     45.0%
over $500,000 up to $1,000,000              47.0%
over $1,00,000 up to $15,000,000            48.0%
over $15,000,000                            00.0%
</Table>

     D. AT&T CONCERT INBOUND SERVICE (U.S. TO FOREIGN AND FOREIGN TO U.S.) -
The Customer will receive the following discounts each month. This discount
is in lieu of any other discounts for the same services.

<Table>
<Caption>
                                      Discount applied
                                      to CIS Usage
                                      (U.S. to Foreign
For Gross Monthly                     and Foreign to
Total Minutes of Usage:               U.S.)
----------------------                -----------------
<S>                                   <C>
Between 0 and 1,000,000                      45.0%
over 1,000,000 up to 2,000,000               50.0%
over 2,000,000 up to 5,000,000               55.0%
over 5,000,000                               00.0%
</Table>

     E. AT&T PRIVATE LINE, AT&T LOCAL CHANNEL SERVICES AND AT&T INTERSPAN
FRAME RELAY SERVICE - The Customer will receive the following discounts, each
month, in lieu of any other discounts. These discounts will be applied to the
undiscounted recurring charges for Digital Services Volume Pricing Plan
(DSVPP)-eligible service components in service under this CT. These discounts
will be applied in the same manner as the DSVPP discounts as specified in
AT&T Tariff F.C.C. Nos. 4, 9 and 11, as amended from time to time.

     1. AT&T INTERSPAN FRAME RELAY SERVICES -  The Customer will receive a
discount of 17.0%, each month.

<Page>

ACT Teleconferencing   WK-27881                                 02/26/01 9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 8
Bridgewater, NJ 08807
Issued:  Iii                                                     Effective:  Eee

                  ** All material on this page is new. **

5.E. AT&T PRIVATE LINE, AT&T LOCAL CHANNEL SERVICES AND AT&T INTERSPAN FRAME
RELAY SERVICE (CONTINUED)

     2. AT&T PRIVATE LINE AND AT&T LOCAL CHANNEL SERVICES

<Table>
<Caption>
        Service Components                                             Discount
        ---------------------                                          --------
        <S>                                                            <C>
        *ASDS 64 kbps and below                                          40.0%
        *ASDS 128 kbps and above                                         45.0%
        *ACCUNET T1.5 Service                                            50.0%
        *ACCUNET T45 Service                                             60.0%
         ACCUNET Fractional T45 Services                                 58.0%
         International ACCUNET 2.048 Mbps Service-Mexico                 32.0%
        *ACCUNET SONET T155 Service                                       0.0%
         SONET OC12 Service                                               0.0%
         AT&T VGLCS and AT&T DDLCs at speeds of 9.6 kbps                 22.0%
         AT&T DDLCs at speeds of 56/64 kbps                              20.0%
         AT&T ACCUNET GDA at speeds of 9.6/56/64 kbps                    30.0%
         AT&T Terrestrial 1.544 Mbps Local Channel Service               34.0%
         (excluding the components in Section 5.D., following)
         AT&T Terrestrial 45 Mbps Local Channels                         20.0%
</Table>

     * Includes AT&T Tariff F.C.C. No. 9 Canada and Mexico Services

     F. AT&T AVA/UTA TERRESTRIAL 1.544 MBPS LOCAL CHANNEL - The Customer will
receive the following discount, each month, on the Monthly Recurring Charges
for AT&T Terrestrial 1.544 Mbps Local Channels which are in lieu of the
discounts specified in Section 5.C.2, preceding.
<Table>
<Caption>
        Service Components                                             Discount
        ---------------------                                          --------
        <S>                                                            <C>
        Access Value Arrangement (AVA) with the Universal                45.0%
        Terrestrial 1.544 Mbps Local Channels Access Arrangement
        AVA/UTA
</Table>

     G. AT&T INTERNATIONAL SATELLITE AND INTERNATIONAL AT&T PRIVATE LINE
SERVICES - The Customer will receive the following discounts, each month,
which are lieu of any other discounts.
<Table>
<Caption>
        Service Components                                             Discount
        ---------------------                                          --------
        <S>                                                            <C>
        Voice Grade Private Line Service-Overseas Half Channel           30.0%
        International ACCUNET Digital Services-Half Channel              60.0%
        International Satellite Shared Earth Station Service-Half        50.0%
        Channel
        International Full Channel Service-Overseas-Overseas Cable       50.0%
        Digital Channel
</Table>

<Page>

ACT Teleconferencing   WK-27881                                 02/26/01 9:24 AM

AT&T Communications                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                           Original Page 9
Bridgewater, NJ 08807
Issued:  Iii                                                     Effective:  Eee

                     ** All material on this page is new. **

5.  DISCOUNTS (CONTINUED)

H.  ADDITIONAL INTERNATIONAL DISCOUNTS - If the Customer's International Private
Line and Canada/Mexico Private Line Services undiscounted recurring charges are
at least $100,000 per month, the customer will receive an additional 2% discount
on the total discounted recurring charges on amounts between $100,000 and
$250,000 for the following services:

    SERVICE COMPONENTS
    International Full Channel Service - Overseas
    International Voice Grade Private Line Service - Overseas
    Half Channel
    International ACCUNET Digital Services - Half Channel
    ACCUNET T1.5 Service - Canada/Mexico
    ACCUNET T45 Service - Canada/Mexico
    International ACCUNET 2.048 Mbps Mexico
    AT&T SONET T155 Service - Canada/Mexico
    ASDS - Canada/Mexico 64 kbps and below
    ASDS - Canada/Mexico 128 kbps and above
    International DDS - Canada
    International DDS - Mexico

No Additional Discount will apply if the Customer's total International Private
Line and Canada/Mexico Private Line Services undiscounted recurring charges
exceed $250,000 in any month.

I.  AT&T CONFERENCE SERVICES - None.

6.  CLASSIFICATIONS, PRACTICES AND REGULATIONS

A.  Except as otherwise provided in this CT, the rates and regulations that
apply to the Services Provided specified in Section 1., preceding, are as set
forth in the Applicable AT&T Tariffs that are referenced in Section 1.,
preceding, as such tariffs are amended from time to time.

B.  MONITORING CONDITIONS - None.

<Page>

ACT Teleconferencing  WK-27881                                  02/26/01 9:24 AM

AT&T Communications                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 10
Bridgewater, NJ 08807
Issued:  Iii                                                     Effective:  Eee

                     ** All material on this page is new. **

6.  CLASSIFICATIONS, PRACTICES AND REGULATIONS (CONTINUED)

C.  PROMOTIONS, CREDITS AND WAIVERS - The Customer is ineligible for any
promotions, credits or waivers for the Services Provided under this CT, which
are filed or which may be filed in the AT&T Tariffs specified in Section 1.,
preceding.

The following credits and waivers will be applied to the Customer's bill subject
to the following limitations:  (1) all credits and waivers apply only to the
Services Provided under this CT and as specified below; (2) any waiver not
applied by the end of the CT will be null and void; (3) installation and monthly
charge waivers apply only to new service components (unless otherwise specified
below) and do not apply to service components disconnected and reconnected after
the CISD; (4) the service components must remain in service for a minimum
retention period of 12 months (unless otherwise specified below); and (5) the
credits/waivers under this section do not apply to Network Protective Service
(NPC).  If any of the installed service components are disconnected prior to the
end of the minimum retention period, AT&T will bill the Customer for the amount
of the charges that had been waived, or the amount of the credit that had been
applied equal to installation charges under this section for each service
component disconnected.  Any such bill must be paid by the Customer within 30
days.

The following charges, as specified in the AT&T Tariffs listed in Section 1.,
preceding, as amended from time to time, are waived.

1.  NONRECURRING CHARGES

     (a) The SDN Service Establishment Charge, not to exceed $10,000 over the CT
Term.
     (b) The Installation Charge for Primary Rate Interface (PRI) Office
Functions.
     (c) NETWORK REMOTE ACCESS (NRA) OPTIONS:  The nonrecurring Installation
Charges for NRA I, II, and IV.
     (d) CALL SCREENING:  The nonrecurring Installation Charges for the 2nd,
3rd and 4th Caller Groups, and for the 2nd, 3rd and 4th Screening Groups.
     (e) The Installation Charges for DSVPP-eligible service components and
associated Functions Connections, and those Local Channels specified in Section
5.F., preceding.  If ACCUNET SONET T155 Service and SONET OC12 Service IOC and
Multiplexing Office Function service components are not in service for 12
months, the Customer will also be billed the termination charges as specified in
AT&T Tariff F.C.C. No. 9, as amended from time to time.
<Page>

ACT Teleconferencing   WK-27881                                02/26/01  9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 11
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                  ** All material on this page is new. **

6.C. PROMOTIONS, CREDITS AND WAIVERS (CONTINUED)

  2. RECURRING CHARGES

   (a) 75% of the recurring Monthly Charge for new and existing PRI Office
Functions.
   (b) The recurring Monthly Charges for the following AT&T Tariff F.C.C Nos.
9 and 11 Services associated with the AT&T Terrestrial 1.544 Mbps and
9.6/56/64 kbps ACCUNET GDA Local Channel Services provided under this CT,
provided such service components are associated directly with the new and
existing Services provided under this CT: (1) ACCUNET T1.5/ASDS Access
Connections, (2) associated Access Coordination Functions (3) ACCUNET T1.5
M-24 Multiplexing Office Functions.  There is no minimum retention period
associated with this waiver.
   (c) The recurring Monthly Charges for the following new and existing
service components: (1) ACCUNET T45 Access Connections; (2) ACCUNET T45 M-28
Multiplexing Office Functions; and (3) Access Coordination Functions
associated with AT&T Terrestrial 45 Mbps Local Channels provided under this
CT.  There is no minimum retention period associated with this waiver.
   (d) ALTERNATE DESTINATION ROUTING (ADR):  The $20.00 per 800 number Monthly
Charge.  There is no minimum retention period associated with this waiver.
   (e) 800 NEXT AVAILABLE AGENT:  The $10.00 per 800 number Minimum Monthly
Usage Charge requirement.  There is no minimum retention period associated
with this waiver.

  3. RECURRING, NONRECURRING AND USAGE CHARGES

   (a) SPLIT ACCESS FLEXIBLE EGRESS ROUTING (SAFER):  For AT&T SDN Services,
the per primary SDN central office Special Access Line Grouping nonrecurring
Installation Charge is waived for no more than 500 Special Access Line
Groupings, and the recurring Monthly Charge per AT&T Terrestrial 1.544 Local
Channel or equivalent at the primary SDN central office is waived for the
first 6 full billing months.  For AT&T MEGACOM 800 Services, the nonrecurring
Installation Charge per 800 Number per Customer Location is waived for no
more than 500 800 numbers.
   (b) UNDER THE ROUTING PLAN OPTION:  The $25.00 per 800 number Monthly Charge
is waived.  The customer is responsible for the $25.00 nonrecurring
Installation Charge, for each installation or change per 800 number.

<Page>
ACT Teleconferencing   WK-27881                                02/26/01  9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 12
Bridgewater, NJ 08807
Issued:  Tii                                                     Effective:  Eee

                  ** All material on this page is new. **

6.C.  PROMOTIONS, CREDITS AND WAIVERS (CONTINUED)

  4. CREDITS

   (a) AT&T will apply a credit equal to the installation charges, as
specified in AT&T Tariff F.C.C. No. 11, as amended from time to time, for the
installation of new AT&T Terrestrial 1.544 Mbps Local Channels subscribed to
under an AVP, AVA, AVA/UTA.

   (b) AT&T will apply a credit equal to the installation charges, as
specified in AT&T Tariff F.C.C. No. 11, as amended from time to time, for the
installation of new AT&T Terrestrial 45 Mbps Local Channels subscribed to
under an AVP.

   (c) AT&T will apply a credit against charges billed under this CT equal to
the installation charges incurred by the Customer for AT&T Regional Frame
Relay Service DSVPP-eligible service components during the CT Term.

  D. DISCONTINUANCE - In lieu of any Discontinuance With or Without Liability
provisions that are specified in the AT&T Tariffs referenced in Section 1.,
preceding, the following provisions shall apply.

The Customer may discontinue this CT prior to the end of the CT Term,
provided the Customer replaces this CT with other AT&T Services or another
AT&T CT for AT&T Tariffed Interstate Services having: (i) an equal or greater
new annualized MARC for the "MARC-eligible Services" specified in Section 3.,
preceding, and (ii) a new term equal to or greater than the remaining term,
but not less than 3 years.  The Customer will also be billed a Shortfall
Charge equal to the difference between (1) the prorated MARC for the year in
which the customer discontinues and (2) the total of the actual MARC-eligible
charges incurred for that year, provided the amount in (2) is less than the
amount in (1).

If the Customer discontinues this CT for any reason other than specified
above, prior to the expiration of the CT Term, a Termination Charge will
apply.  The Termination Charge will be an amount equal to 35% of the
unsatisfied MARC for the year in which the Customer discontinues this CT and
35% of the MARC for each year remaining in the CT Term.

  E. OTHER REQUIREMENTS - Not Applicable.

  F. AVAILABILITY - This Contract Tariff is available only to Customers who:
(1) concurrently order this CT only once, either by the Customer or an
Affiliate of the Customer, which is any entity that owns a controlling
interest in either the Customer or an Affiliate of the Customer, or any
entity in which a controlling interest is owned by either the Customer or an
Affiliate of the Customer; and (2) order service within 30 days after the
affective date of this CT for initial installation of the Services Provided
under this CT within 30 days after the date ordered.

<Page>

ACT Teleconferencing WK-27881                                  02/26/01 9:24 AM

AT&T COMMUNICATIONS                                CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                         Original Page 13
Bridgewater, NJ 08807
Issued: Iii                                                      Effective: Eee

                    ** All material on this page is new. **

7. RATES

   A. SDN RATE SCHEDULES - The rates listed below apply for all Mileages &
Bands and for all rate periods. These rates are stabilized for the CT Term.

<Table>
<Caption>
                                             Initial          Each Additional
                                             18 Seconds or    6 Seconds or
Rates Schedules                              Fraction         Fraction
---------------                              -------------    ---------------
<S>                                         <C>              <C>
A, A-PV                                      $0.0306          $0.0102
B(a), B-PV(a), B(b), B-PV(b)                 $0.0153          $0.0051
C(a), C(b), C-PV                             $0.0141          $0.0047
E                                            $0.0291          $0.0097
G                                            $0.1020          $0.0340
H1                                           $0.0378          $0.0126
H2                                           $0.0528          $0.0176
K                                            $0.0348          $0.0116
L                                            $0.1218          $0.0406
P                                            $0.2328          $0.0776
</Table>

   B. AT&T 800 SERVICE RATE SCHEDULES - The rates listed below apply for all
Service Areas and for all rate periods. These rates are stabilized for the
CT Term.

<Table>
<Caption>
                                                  Per Hour of Use
                                                  ---------------
<S>                                              <C>
AT&T MEGACOM 800 Service-Domestic                 $3.06
AT&T 800 READYLINE Service-Domestic               $6.12
AT&T Toll-Free Multimedia Service                 $7.92
</Table>

<Page>

ACT Teleconferencing WK-27881                                  02/26/01 9:24 AM

AT&T COMMUNICATIONS                                CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                         Original Page 14
Bridgewater, NJ 08807
Issued: Iii                                                      Effective: Eee

                    ** All material on this page is new. **

7. RATES (CONTINUED)

   C. AT&T MEGACOM 800 SERVICE-INTERNATIONAL AND AT&T 800 READYLINE
SERVICE-INTERNATIONAL - The following rates are stabilized for the CT Term.

      1. RATE SCHEDULE FOR AT&T MEGACOM 800 SERVICE-CANADA

<Table>
<Caption>
                      DAY RATE             EVENING RATE            NIGHT RATE
                      Mon-Fri             Mon-Fri/Sat-Sun           Mon-Sun
                      8AM-6PM           6PM-12Mid/8AM-12Mid        12Mid-8AM
                Initial    Each Add'l  Initial    Each Add'l  Initial    Each Add'l
Rate            30 Secs     1 Sec      30 Secs      1 Sec     30 Secs      1 Sec
Step            or Frac't  or Frac't   or Frac't  or Frac't   or Frac't  or Frac't
----            ---------  ---------   ---------  ---------   ---------  ---------
<S>            <C>        <C>         <C>        <C>         <C>        <C>
1-6              $0.1260    $0.0042     $0.1260    $0.0042     $0.1260    $0.0042
</Table>

      2. RATE SCHEDULE FOR AT&T 800 READYLINE SERVICE-CANADA

<Table>
<Caption>
                      DAY RATE             EVENING RATE            NIGHT RATE
                      Mon-Fri             Mon-Fri/Sat-Sun           Mon-Sun
                      8AM-6PM           6PM-12Mid/8AM-12Mid        12Mid-8AM
                Initial    Each Add'l  Initial    Each Add'l  Initial    Each Add'l
Rate            30 Secs     1 Sec      30 Secs      1 Sec     30 Secs      1 Sec
Step            or Frac't  or Frac't   or Frac't  or Frac't   or Frac't  or Frac't
----            ---------  ---------   ---------  ---------   ---------  ---------
<S>            <C>        <C>         <C>        <C>         <C>        <C>
1-6              $0.1410    $0.0047     $0.1410    $0.0047     $0.1410    $0.0047
</Table>

      3. RATE SCHEDULE FOR AT&T MEGACOM 800 SERVICE-MEXICO

<Table>
<Caption>
Rate Areas 1-5
--------------
                   Standard Period        Economy Period
                ---------------------  ---------------------
                Initial    Each Add'l  Initial    Each Add'l
Service         30 Secs     1 Sec      30 Secs      1 Sec
 Areas          or Frac't  or Frac't   or Frac't  or Frac't
<S>            <C>        <C>         <C>        <C>
  M1             $0.2220    $0.0074     $0.2220    $0.0074
  M2             $0.2220    $0.0074     $0.2220    $0.0074
  M3             $0.4380    $0.0146     $0.4380    $0.0146
  M4             $0.4380    $0.0146     $0.4380    $0.0146
</Table>

<Page>

ACT Teleconferencing  WK-27881                                 02/26/01 9:24 AM

AT&T COMMUNICATIONS                                CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                         Original Page 15
Bridgewater, NJ 08807
Issued:  Iii                                                    Effective:  Eee

                  ** All material on this page is new. **

7.C. AT&T MEGACOM 800 Service-International and AT&T 800 READYLINE
Service-International (continued)

     4.  RATE SCHEDULE FOR AT&T 800 READYLINE SERVICE-MEXICO

<Table>
<Caption>
                    Standard Period               Economy Period
                    ---------------               --------------
                Initial      Each Add'l       Initial     Each Add'l
Service         30 Secs        1 Sec          30 Secs       1 Sec
 Areas          or Frac't     or Frac't       or Frac't    or Frac't
<S>             <C>          <C>              <C>         <C>
  M1            $0.2370      $0.0079          $0.2370     $0.0079
  M2            $0.2370      $0.0079          $0.2370     $0.0079
  M3            $0.4530      $0.0151          $0.4530     $0.0151
  M4            $0.4530      $0.0151          $0.4530     $0.0151
</Table>

     5.  USAGE RATES FOR AT&T MEGACOM 800 SERVICES-OVERSEAS AND AT&T 800
READYLINE SERVICES-OVERSEAS

<Table>
<Caption>
                        MEGACOM 800 Service         800 READYLINE Service
                     Initial 30       E/A 1       Initial 30         E/A 1
Country/Area           Seconds        Second        Seconds          Second
------------           -------        ------        -------          ------
<S>                   <C>            <C>           <C>              <C>
Australia             $0.3480        $0.0226       $0.3630          $0.0121
Belgium               $0.3450        $0.0115       $0.3600          $0.0120
China                 $0.8850        $0.0295       $0.9000          $0.0300
France (includes      $0.3480        $0.0116       $0.3630          $0.0121
service from
Monaco)
Germany, Federal      $0.3480        $0.0116       $0.3630          $0.0121
Rep. of
Greece                $0.6330        $0.0011       $0.6480          $0.0126
Hong Kong             $0.0000        $0.0146       $0.4530          $0.0151
India                 $0.8490        $0.0283       $0.8640          $0.0288
Ireland               $0.4020        $0.0134       $0.4170          $0.0139
Italy (includes       $0.3480        $0.0116       $0.3630          $0.0121
service from San
Marino and Vatican
City)
Japan                 $0.4380        $0.0146       $0.4530          $0.0151
Malaysia              $0.5760        $0.0192       $0.5910          $0.0197
New Zealand           $0.5730        $0.0191       $0.5880          $0.0196
Philippines           $0.5550        $0.0185       $0.5700          $0.0190
Singapore             $0.4470        $0.0149       $0.4620          $0.0154
Spain                 $0.3480        $0.0116       $0.3630          $0.0121
Taiwan                $0.4920        $0.0164       $0.5070          $0.0169
Thailand              $0.5790        $0.0193       $0.5940          $0.0198
United Kingdom        $0.1950        $0.0065       $0.2100          $0.0070
</Table>

<Page>

ACT Teleconferencing  WK-27881                                 02/26/01 9:24 AM

AT&T COMMUNICATIONS                                CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                         Original Page 16
Bridgewater, NJ 08807
Issued:  Iii                                                    Effective:  Eee

                  **All material on this page is new.**

7.   RATES (CONTINUED)

     D. INTERNATIONAL CALLING CAPABILITY - Following are the AT&T SDN
International Calling Capability Usage Rates to the Countries listed below,
applicable under this CT.  These rates are stabilized for the CT Term.

     1.  U.S. MAINLAND USAGE RATES - The following schedules are used to rate
calls between stations in the U.S. Mainland and stations in the country/area
specified below.  Rates apply for all days of the week including holidays and
apply to all rate periods.  Unless otherwise specified, the Initial Period
(IP) is 18 seconds, or fraction thereof, and the Additional Period (AP) is 6
seconds, or fraction thereof.

     (a) CANADA RATE SCHEDULE - This schedule applies to Customer Dialed
calls to stations in Canada using dedicated and switched access.

<Table>
<Caption>
                        DEDICATED ACCESS               SWITCHED ACCESS
                   Initial        Each Add'l      Initial         Each Add'l
                 18 Seconds       6 Seconds      18 Seconds       6 Seconds
Rate Mileage     or Fraction      or Fraction    or Fraction      or Fraction
------------     -----------      -----------    -----------      -----------
<S>              <C>              <C>            <C>              <C>
1-18               $0.0360          $0.0120        $0.0459          $0.0153
19-80              $0.0360          $0.0120        $0.0459          $0.0153
81-140             $0.0360          $0.0120        $0.0459          $0.0153
141-220            $0.0360          $0.0120        $0.0459          $0.0153
221-345            $0.0360          $0.0120        $0.0459          $0.0153
346-630            $0.0360          $0.0120        $0.0459          $0.0153
631-1200           $0.0360          $0.0120        $0.0459          $0.0153
1201-1610          $0.0360          $0.0120        $0.0459          $0.0153
1611-4000          $0.0360          $0.0120        $0.0459          $0.0153
</Table>
<Page>

ACT Teleconferencing   WK-27881                                 02/26/01 9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 17
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                     ** All material on this page is new. **

7.D.1. U.S. MAINLAND USAGE RATES (CONTINUED)

         (b) MEXICO RATE SCHEDULES - These schedules apply to Customer Dialed
calls to stations in Mexico using dedicated and switched access.

         I.  MEXICO SCHEDULE 1 RATES - The following rates are for calls to the
point of connection at the international boundary.

<Table>
<Caption>
                      DEDICATED ACCESS                  SWITCHED ACCESS
                  Initial         Each Add'l         Initial        Each Add'l
                18 Seconds        6 Seconds        18 Seconds       6 Seconds
Rate Mileage    or Fraction      or Fraction       or Fraction     or Fraction
------------    -----------      -----------       -----------     -----------
<S>             <C>              <C>               <C>             <C>
   1 - 10         $0.0000          $0.0000           $0.0000         $0.0000
  11 - 22         $0.0000          $0.0000           $0.0000         $0.0000
  23 - 55         $0.0000          $0.0000           $0.0000         $0.0000
  56 - 124        $0.0000          $0.0000           $0.0000         $0.0000
 125 - 292        $0.0000          $0.0000           $0.0000         $0.0000
 293 - 430        $0.0000          $0.0000           $0.0000         $0.0000
 431 - 925        $0.0000          $0.0000           $0.0000         $0.0000
 926 - 3000       $0.0000          $0.0000           $0.0000         $0.0000
</Table>

         II. MEXICO SCHEDULE 2 RATES - The following rates apply to the Customer
Dialed Stations (DS) calls (as defined in Section 24.1.2.B.2.(a) of AT&T Tariff
F.C.C. No. 27) between the point of connection at the international boundary and
the locations in Mexico. The Initial Period is 1 minute, or fraction thereof,
and the Additional Period is 1 minute, or fraction thereof.

<Table>
<Caption>
                              DEDICATED ACCESS            SWITCHED ACCESS
                CLASS OF     PEAK -      OFF-PEAK -     PEAK -     OFF-PEAK -
RATE TABLE      SERVICE      IP/AP       IP/AP          IP/AP      IP/AP
<S>             <C>          <C>         <C>            <C>        <C>
     1            DS         $0.31       $0.23          $0.31      $0.23
     2            DS         $0.31       $0.23          $0.31      $0.23
     3            DS         $0.31       $0.23          $0.31      $0.23
     4            DS         $0.47       $0.33          $0.47      $0.33
     5            DS         $0.47       $0.33          $0.47      $0.33
     6            DS         $0.47       $0.33          $0.47      $0.33
     7            DS         $0.52       $0.36          $0.52      $0.36
     8            DS         $0.52       $0.36          $0.52      $0.36
</Table>

<Page>

ACT Teleconferencing   WK-27881                                 02/26/01 9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 18
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                     ** All material on this page is new. **

7.D.1.  U.S. MAINLAND USAGE RATES (CONTINUED)

         (c) OTHER COUNTRIES RATES - Dial Station using dedicated and switched
access and apply for all rate periods. The Peak and Off-Peak time periods for
the countries listed below are as specified in AT&T Tariff F.C.C. No. 1.

<Table>
<Caption>
                                   DEDICATED ACCESS         SWITCHED ACCESS
Country                         Initial    Additional     Initial    Additional
                                Period       Period       Period       Period
<S>                             <C>        <C>            <C>        <C>
Australia                       $0.0750     $0.0250       $0.0849     $0.0283
Austria                         $0.0750     $0.0250       $0.0849     $0.0283
Belgium                         $0.0750     $0.0250       $0.0849     $0.0283
China, People's Republic of     $0.2349     $0.0783       $0.2451     $0.0817
France                          $0.0750     $0.0250       $0.0849     $0.0283
Germany, Federal Republic of    $0.0750     $0.0250       $0.0849     $0.0283
Greece                          $0.0999     $0.0333       $0.1101     $0.0367
Hong Kong                       $0.1200     $0.0400       $0.1299     $0.0433
India                           $0.2850     $0.0950       $0.2949     $0.0983
Ireland                         $0.0750     $0.0250       $0.0849     $0.0283
Italy                           $0.0750     $0.0250       $0.0849     $0.0283
Japan (including Okinawa)       $0.0750     $0.0250       $0.0849     $0.0283
Korea, Republic of              $0.1050     $0.0350       $0.1149     $0.0383
New Zealand (including          $0.1399     $0.0633       $0.2004     $0.0666
 Chatham Island)
Philippines                     $0.1850     $0.0550       $0.1749     $0.0583
Singapore, Republic of          $0.1272     $0.0424       $0.1383     $0.0461
Spain (including Balearic       $0.0750     $0.0250       $0.0849     $0.0283
  Islands, Canary Islands,
  Ceuta and Melilla)
Taiwan                          $0.1401     $0.0467       $0.1500     $0.0500
Thailand                        $0.1800     $0.0600       $0.1899     $0.0633
United Kingdom                  $0.0860     $0.0120       $0.0459     $0.0153
 (including the Channel
 Islands, England, Isle
 of Man, Northern Ireland,
 Scotland and Wales)
</Table>

<Page>

ACT Teleconferencing   WK-27881                                02/26/01  9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 19
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                    ** All material on this page is new. **

7.D.1.  U.S. MAINLAND USAGE RATES (CONTINUED)

  (d)  MOBILE TERMINATION RATES

<Table>
<Caption>

                                     DEDICATED ACCESS           SWITCHED ACCESS
Country                          Initial      Additional     Initial     Additional
                                 Period         Period       Period        Period
<S>                             <C>            <C>          <C>           <C>
Australia                       $0.1707        $0.0569      $0.1806       $0.0602
Austria                         $0.1707        $0.0569      $0.1806       $0.0602
Belgium                         $0.1809        $0.0603      $0.1908       $0.0636
France                          $0.1809        $0.0603      $0.1908       $0.0636
Germany, Federal Republic of    $0.1809        $0.0603      $0.1908       $0.0636
Italy                           $0.1506        $0.0502      $0.1605       $0.0535
Japan (including Okinawa)       $0.1707        $0.0569      $0.1806       $0.0602
Korea, Republic of              $0.1656        $0.0552      $0.1755       $0.0585
New Zealand (including          $0.2757        $0.0919      $0.2862       $0.0954
Chatham Island)
Spain (including Balearic       $0.1404        $0.0468      $0.1503       $0.0501
Islands, Canary Islands,
Ceuta and Melilla)
Taiwan                          $0.1704        $0.0568      $0.1803       $0.0601
United Kingdom (including the   $0.1419        $0.0473      $0.1518       $0.0506
Channel Islands, England,
Isle of Man, Northern Ireland,
Scotland and Wales)
</Table>

<Page>

ACT Teleconferencing   WK-27881                                02/26/01  9:24 AM

AT&T COMMUNICATIONS                                 CONTRACT TARIFF NO. WK-27881
Adm. Rates and Tariffs                                          Original Page 20
Bridgewater, NJ 08807
Issued: Iii                                                       Effective: Eee

                    ** All material on this page is new. **

7.  RATES (CONTINUED)

 E.  AT&T CONCERT VNS RATE SCHEDULES - The rates listed below apply for AT&T
Concert VNS to the Countries listed below, applicable under this CT. The Peak
and Off-Peak time periods for the countries listed below are as specified in
AT&T Tariff F.C.C. No. 1. These rates are stabilized for the CT Term.

  SCHEDULE B - The following rate elements apply to calls from a station in
the designated foreign country/area with dedicated access. The Initial Period
(IP) is 6 seconds, or fraction thereof, and the Additional Period (AP) is 1
second, or fraction thereof:

<Table>
<Caption>

                        Initial Period       Additional Period
Country                Peak     Off-Peak     Peak     Off-Peak
-------              -------   ----------  -------   ----------
<S>                  <C>        <C>        <C>        <C>
Australia            $0.0126    $0.0126    $0.0021    $0.0021

Hong Kong            $0.0174    $0.0174    $0.0029    $0.0029

New Zealand          $0.0192    $0.0192    $0.0032    $0.0032

Singapore            $0.0258    $0.0258    $0.0043    $0.0043
</Table>

  SCHEDULE C - The following rate elements apply to calls from a station in
the designated foreign country area with switched access. The Initial Period
(IP) is 18 seconds, or fraction thereof, and the Additional Period (AP) is 1
seconds, or fraction thereof:

<Table>
<Caption>

                        Initial Period       Additional Period
Country                Peak     Off-Peak     Peak     Off-Peak
-------              -------   ----------  -------   ----------
<S>                  <C>        <C>        <C>        <C>
Australia            $0.0378    $0.0378    $0.0021    $0.0021

Hong Kong            $0.0522    $0.0522    $0.0029    $0.0029

New Zealand          $0.0576    $0.0576    $0.0032    $0.0032

Singapore            $0.0774    $0.0774    $0.0043    $0.0043
</Table><PAGE>

                                  Exhibit 10.2

                          FORM OF EMPLOYMENT AGREEMENT
                          ----------------------------

     THIS EMPLOYMENT AGREEMENT, dated as of this ____ day of ________, 2001, by
and between Virginia Financial Group, Inc., a Virginia corporation (the
"Company"), and O.R. Barham, Jr. (the "Executive").

     WHEREAS, the Executive has been a key executive officer of Virginia
Commonwealth Financial Corporation ("VCFC") and, by Agreement and Plan of
Reorganization, dated as June 12, 2001 (the "Merger Agreement"), VCFC and
Virginia Financial Corporation have agreed to merge and form the Company (the
"Merger");

     WHEREAS, the Merger Agreement provides that the parties will enter into
this Agreement to provide for the continued employment of the Executive by the
Company following the Merger;

     WHEREAS, the Company considers the availability of the Executive's services
to be important to the management and conduct of the Company's business and
desires to secure the continued availability of the Executive's services; and

     WHEREAS, the Executive is willing to make his services available to the
Company on the terms and subject to the conditions set forth herein.

     In consideration of the mutual covenants and agreements set forth herein,
the parties agree as follows:

                        Part I: General Employment Terms
                        ---------------------------------

     1.  Employment and Duties.  Conditional upon consummation of the Merger and
the Executive continuing in the employment of VCFC until the Effective Date of
the Merger (the "Effective Date"), and effective at the Effective Date, the
Executive shall be employed by the Company as its President and Chief Executive
Officer.  The Executive accepts such employment and agrees to perform the
managerial duties and responsibilities of President and Chief Executive Officer.
The Executive agrees to devote his time and attention on a full-time basis to
the discharge of such duties and responsibilities of an executive nature as may
be assigned him by the Board of Directors of the Company.  The Executive may
accept any elective or appointed positions or offices with any duly recognized
associations or organizations whose activities or purposes are closely related
to the banking business or service to which would generate good will for the
Company and its subsidiaries.

     2.  Term.  The term of this Agreement (the "Term") shall commence at the
Effective Date and shall continue through December 31, 2004, unless terminated
or extended as hereinafter provided.  This Agreement shall be extended for
successive one-year periods following the original term unless either party
notifies the other in writing at least ninety (90) days prior to the end of the
original term, or the end of any additional one-year renewal term, that the
Agreement shall not be extended beyond its current term.
<PAGE>

     3.  Compensation.

     (a) Base Salary.  For the remainder of 2001 and for 2002, the Company shall
pay the Executive an annual base salary not less than $250,000.  Such base
salary shall be paid to the Executive in accordance with established payroll
practices of the Company.  For 2003 and for each remaining year of this
Agreement, including any renewal term, the Company agrees to review the
Executive's base salary and to consider implementing changes to such base salary
as it may deem appropriate; however, such base salary shall not be less than
$250,000.

     (b) Annual Bonus.  During the term of this Agreement, the Executive will be
eligible to participate in an annual incentive plan that will establish
measurable criteria and incentive compensation levels payable to the Executive
for corporate performance in relation to defined threshold benchmarks.  The
Compensation Committee or the Board of Directors of the Company, as the case may
be, and the Executive will mutually establish the targeted corporate performance
levels for the Company on an annual basis consistent with the Company's business
plan and objectives.  Achievement of the targeted corporate performance levels
will result in an annual cash bonus payment equal to at least 35% of the
Executive's then current annual base salary.  To the extent the Company exceeds
the targeted performance levels, the incentive plan will provide a means by
which the annual bonus will be increased.  Similarly, the incentive plan will
provide a means by which the annual bonus will be decreased if the targeted
performance levels are not achieved, provided certain minimum threshold
benchmarks have been satisfied.  Any bonus payments due hereunder shall be paid
to the Executive no later than 75 days after the end of the year.

     (c) Stock Compensation.  Subject to the annual approval of the Compensation
Committee or the Board of Directors, as the case may be, the Executive will
receive during the term of this Agreement an annual stock award under the
Company's 2001 Incentive Stock Plan with a value equal to at least 30% of his
then current base salary.  The stock award, which will consist of stock options
or restricted stock grants, or any combination thereof, will include such
vesting and other terms and conditions as determined in the sole discretion of
the Compensation Committee or the Board of Directors in accordance with the 2001
Incentive Stock Plan.  The valuation of the stock award will be determined using
the Black-Scholes or similar methodology as determined by the Company.

     4.  Benefits.

     (a) During the term of this Agreement, the Executive shall be eligible to
participate in any plans, programs or forms of compensation or benefits that the
Company or its subsidiaries provide to the class of employees that includes the
Executive, on a basis not less favorable than that provided to such class of
employees, including, without limitation, group medical, disability and life
insurance, vacation and sick leave, and a retirement plan; provided however, a
reasonable transition period following any change in control, merger, statutory
share exchange, consolidation, acquisition or transaction involving the Company
or any of its subsidiaries shall be permitted in order to make appropriate
adjustments in compliance with this Section 4(a). The Company will allow the
Executive to continue to make salary deferral contributions to the Executive
Deferred Compensation Plan.

                                       2
<PAGE>

     (b) The Executive shall be entitled to five weeks vacation annually without
loss of pay.

     (c) The Company will pay the Executive's country club initiation fee and
dues on such basis as may be determined by the Board of Directors of the Company
from time to time.

     (d) During the term of this Agreement, the Company shall provide the
Executive with an appropriate automobile or automobile allowance as determined
by the Board of Directors of the Company.

     5. Reimbursement of Expenses. The Company shall reimburse the Executive
promptly, upon presentation of adequate substantiation, including receipts, for
the reasonable travel, entertainment, lodging and other business expenses
incurred by the Executive, including, without limitation, those expenses
incurred by the Executive and his spouse in attending trade and professional
association conventions, meetings and other related functions. However, the
Company reserves the right to review these expenses periodically and determine,
in its sole discretion, whether future reimbursement of such expenses to the
Executive will continue without prior Board approval of the expenses.

     6.  Termination of Employment.

     (a) Death or Incapacity. The Executive's employment under this Agreement
shall terminate automatically upon the Executive's death. In the event of
termination due to the death of the Executive, his survivors, designees or
estate shall continue to receive, in addition to all other benefits accruing
upon death, full compensation hereunder for a period of three (3) months
following the month in which his death occurred. If the Company determines that
the Incapacity, as hereinafter defined, of the Executive has occurred, it may
terminate the Executive's employment and this Agreement upon thirty (30) days'
written notice provided that, within thirty (30) days after receipt of such
notice, the Executive shall not have returned to full-time performance of his
assigned duties. "Incapacity" shall mean the failure of the Executive to perform
his assigned duties with the Company on a full-time basis as a result of mental
or physical illness or injury as determined by a physician selected by the
Company for the greater of ninety (90) consecutive calendar days or the longest
waiting period under any long term disability insurance contract or program
provided to him as an employee.

     (b) Termination by Company With or Without Cause. The Company may terminate
the Executives employment during the term of this Agreement, with or without
Cause. For purposes of this Agreement, "Cause" shall mean:

          (i) continual or deliberate neglect by the Executive in the
performance of his material duties and responsibilities as established from time
to time by the Board of Directors of the Company, or the Executive's willful
failure to follow reasonable instructions or policies of the Company after being
advised in writing of such failure and being given a reasonable opportunity and
period (as determined by the Company) to remedy such failure;

                                       3
<PAGE>

          (ii) conviction of, indictment for (or its procedural equivalent),
entering of a guilty plea or plea of no contest with respect to a felony, a
crime of moral turpitude or any other crime with respect to which imprisonment
is a possible punishment, or the commission of an act of embezzlement or fraud
against the Company or any subsidiary or affiliate thereof;

          (iii)  any breach by the Executive of a material term of this
Agreement, or violation in any material respect of any code or standard of
behavior generally applicable to officers of the Company, after being advised in
writing of such breach or violation and being given a reasonable opportunity and
period (as determined by the Company) to remedy such breach or violation;

          (iv) dishonesty of the Executive with respect to the Company or any
subsidiary or affiliate thereof, or breach of a fiduciary duty owed to the
Company or any subsidiary or affiliate thereof; or

          (v) the willful engaging by the Executive in conduct that is
reasonably likely to result, in the good faith judgment of the Company, in
material injury to the Company, monetarily or otherwise.

     (c) Termination by Executive for Good Reason. The Executive may terminate
his employment for Good Reason. For purposes of this Agreement, "Good Reason"
shall mean:

          (i) the continued assignment to the Executive of duties inconsistent
with the Executive's position, authority, duties or responsibilities as
contemplated by Section 1 hereof or, in the event of a Change in Control (as
hereinafter defined), Section 10(a);

          (ii) any action taken by the Company which results in a substantial
reduction in the status of the Executive, including a diminution in his
position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and/or inadvertent action not taken in had faith and
which is remedied by the Company promptly after receipt of notice thereof given
by the Executive;

          (iii)  the relocation of the Executive to any other primary place of
employment which might require him to move his residence which, for this
purpose, includes any reassignment to a place of employment located more than 50
miles from the Executive's initially assigned place of employment, without the
Executive's express written consent to such relocation; provided, however, this
subsection (iii) shall not apply in connection with the relocation of the
Executive if the Company decides to relocate its headquarters; or

                                       4
<PAGE>

          (iv) any failure by the Company, or any successor entity following a
Change in Control, to comply with the provisions of Sections 3 and 4 or Section
10(b) hereof or to honor any other term or provision of this Agreement, other
than an isolated, insubstantial or inadvertent failure not occurring in bad
faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Executive.

     (d) Incapacity. If payments under a long term disability policy or plan
shall cease due to discontinuance of the plan for failure for any reason of the
provider of such policy to continue to make payments, the Company will provide
the benefits to the Executive in accordance with the terms of such policy or
plan as if it were still in full force and effect. Notwithstanding the above, in
no event shall the Company's obligation under this subparagraph be for more than
two years.

     7.  Obligations of the Company Upon Termination.

     (a) Without Cause; Good Reason. Except as set forth in Sections 7(b) and
7(c) below, if, during the term of this Agreement, the Company shall terminate
the Executive's employment without Cause or the Executive shall terminate
employment for Good Reason, the Company will pay to the Executive in a lump sum
within thirty (30) days after the termination of employment the sum of the
Executive's annual base salary through the date of termination to the extent not
theretofore paid and the balance of the Executive's annual base salary for a
period of eighteen (18) months from the date of termination of employment. The
Company shall also maintain in full force and effect for the Executive's
continued benefit, until eighteen (18) months from the date of termination of
employment, all health and insurance plans as required by federal law, and
provided that the Executive's continued participation is possible under the
general terms and provisions of such plans and programs. If the Company
reasonably determines that maintaining such health and insurance plans in full
force and effect for the benefit of the Executive until eighteen months from the
date of termination of employment is not feasible, the Company shall pay the
Executive a lump sum equal to the estimated cost of maintaining such plans for
the Executive for eighteen months. In addition, stock option and similar
agreements with the Executive evidencing the grant of a stock option or other
award under the Company's Stock Incentive Plan, or any successor plan, will
provide that the vesting of such stock awards will accelerate and become
immediately exercisable and fully vested as of the date of termination of
employment without Cause or for Good Reason. In the case of stock options, the
Executive will have at least ninety (90) days after termination of employment,
or such longer period as may be provided for in the separate stock option
agreement, to exercise the option.

     (b) Non-Competition. Notwithstanding the foregoing, all such payments and
benefits under Section 7(a) otherwise continuing for periods after the
Executive's termination of employment shall cease to be paid, and the Company
shall have no further obligation due with respect thereto, in the event the
Executive engages in "Competition" or makes any "Unauthorized Disclosure of
Confidential Information." In addition, in exchange for the payments on
termination as provided herein, other provisions of this Agreement and other
valuable consideration hereby acknowledged, the Executive agrees that he will
not engage in competition for a period of eighteen (18) months after the
Executive's employment with the Company ceases for any reason, including the
expiration or nonrenewal of this Agreement. For purposes hereof:

                                       5
<PAGE>

          (i) "Competition" means the Executive's engaging without the written
consent of the board of directors of the Company or a person authorized thereby,
in an activity as an officer, a director, an employee, a partner, a more than
one percent shareholder or other owner, an agent, a consultant, or in any other
individual or representative capacity within 50 miles of the Company's
headquarters or any branch office of the Company or any of its subsidiaries
(unless the Executive's duties, responsibilities and activities, including
supervisory activities, for or on behalf of such activity, are not related in
any way to such competitive activity) if it involves:

             (A) engaging in or entering into the business of any banking,
lending or any other business activity in which the Company or any of its
affiliates is actively engaged at the time the Executive's employment ceases, or

             (B) soliciting or contacting, either directly or indirectly, any of
the customers or clients of the Company or any of its affiliates for the purpose
of competing with the products or services provided by the Company or any of its
affiliates, or

             (C) employing or soliciting for employment any employees of the
Company or any of its affiliates for the purpose of competing with the Company
or any of its affiliates.

          (ii) "Unauthorized Disclosure of Confidential Information" means the
use or disclosure of information in violation of Section 8 of this Agreement.

          (iii)  For purposes of this Agreement, "customers" or "clients" of the
Company or any of its affiliates means individuals or entities to whom the
Company or any of its affiliates has provided banking, lending, or other similar
financial services at any time from the Effective Date through the date the
Executive's employment with the Company ceases.

     (c) Death or Incapacity. If the Executive's employment is terminated by
reason of death or incapacity in accordance with Section 6(a) hereof, this
Agreement shall terminate without further obligation to the Executive or his
legal representatives under this Agreement except as otherwise specified in
Section 6(a).

     (d) Cause; Other Than for Good Reason. If the Executive's employment shall
be terminated for Cause or for other than Good Reason, this Agreement shall
terminate without any further obligation of the Company to the Executive other
than to pay to the Executive his annual base salary through the date of
termination. The Executive will still be required to comply with the non-
competition and confidentiality covenants set forth in Section 7(b).

     (e) Remedies. The Executive acknowledges that the restrictions set forth in
paragraph 7(b) of this Agreement are just, reasonable, and necessary to protect
the legitimate business interests of the Company. The Executive further
acknowledges that if he breaches or threatens to breach any provision of
paragraph 7(b), the Company's remedies at law will be inadequate, and the
Company will be irreparably harmed. Accordingly, the Company shall he entitled

                                       6
<PAGE>

to an injunction, both preliminary and permanent, restraining the Executive from
such breach or threatened breach, such injunctive relief not to preclude the
Company from pursuing all available legal and equitable remedies. In addition to
all other available remedies, if the Executive violates the provisions of
paragraph 7(b), the Executive shall pay all costs and fees, including attorneys'
fees, incurred by the Company in enforcing the provisions of that paragraph. If,
on the other hand, it is finally determined by a court of competent jurisdiction
that a breach or threatened breach did not occur under paragraph 7(b) of this
Agreement, the Company shall reimburse the Executive for reasonable legal fees
incurred to defend that claim.

     8.  Confidentiality.  The Executive recognizes that as an employee of the
Company he will have access to and may participate in the origination of non-
public, proprietary and confidential information and that he owes a fiduciary
duty to the Company.  Confidential information may include, but is not limited
to, trade secrets, customer lists and information, internal corporate planning,
methods of marketing and operation, and other data or information of or
concerning the Company or its customers that is not generally known to the
public or in the banking industry.  The Executive agrees that he will never use
or disclose to any third party any such confidential information, either
directly or indirectly, except as may be authorized in writing specifically by
the Company.

                           Part II: Change in Control
                           ---------------------------

     9.  Employment After a Change in Control.  If a Change in Control of the
Company occurs during the term of this Agreement, and the Executive is employed
by the Company on the date the Change in Control occurs (the "Change in Control
Date"), the Company will continue to employ the Executive in accordance with the
terms and conditions of this Agreement for the period beginning on the Change in
Control Date and ending on the third anniversary of such date (the "Change in
Control Employment Period").  If a Change in Control occurs on account of a
series of transactions, the Change in Control Date is the date of the last of
such transactions.  Notwithstanding any other term or provision of this
Agreement, in the event of a Change in Control of the Company, Sections 9
through 15 in this Part II shall become effective and govern the terms and
conditions of the Executive's employment.

    10.  Terms of Employment.

          (a) Position and Duties.  During the Change in Control Employment
Period, (i) the Executive's position, authority, duties and responsibilities
will be at least commensurate in all material respects with the most significant
of those held, exercised and assigned at any time during the 90-day period
immediately preceding the Change in Control Date, and (ii) the Executive's
services will be performed at the location where the Executive was employed
immediately preceding the Change in Control Date or any office that is the
headquarters of the Company and is less than 35 miles from such location; it
being understood and agreed that this subsection (ii) shall supercede the
provisions of Section 6(c)(iv) dealing with the relocation of the Executive
following a Change in Control.

          (b) Compensation and Benefits.

                                        7
<PAGE>

          (i) Base Salary.  During the Change in Control Employment Period, the
Executive will receive an annual base salary (the "Annual Base Salary") at least
equal to the base salary paid or payable to the Executive by the Company and its
affiliated companies for the twelve-month period immediately preceding the
Change of Control Date.  During the Change in Control Employment Period, the
Annual Base Salary will be reviewed at least annually and will be increased at
any time and from time to time as will be substantially consistent with
increases in base salary generally awarded in the ordinary course of business to
other peer executives of the Company and its affiliated companies.  Any increase
in the Annual Base Salary will not serve to limit or reduce any other obligation
to the Executive under this Agreement.  The Annual Base Salary will not be
reduced after any such increase, and the term Annual Base Salary as used in this
Agreement will refer to the Annual Base Salary as so increased.  The term
"affiliated companies" includes any company controlled by, controlling or under
common control with the Company.

          (ii) Annual Bonus.  During the Change in Control Employment Period,
the Executive will be entitled to participate in an annual incentive plan
generally applicable to other peer executives of the Company and its affiliated
companies, but in no event will such incentive plan provide the Executive with a
less favorable opportunity to earn an annual bonus that is similarly structured
to the annual incentive plan as in effect at any time during the six months
immediately preceding the Change in Control Date.

          (iii)  Incentive, Savings and Retirement Plans.  During the Change in
Control Employment Period, the Executive will be entitled to participate in all
incentive (including stock incentive), savings and retirement, insurance plans,
policies and programs applicable generally to other peer executives of the
Company and its affiliated companies, but in no event will such plans, policies
and programs provide the Executive with incentive opportunities (including an
annual stock award with a value equal to at least 30% of his then current base
salary as provided in Section 3(c)), savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than
those provided by the Company and its affiliated companies for the Executive
under such plans, policies and programs as in effect at any time during the six
months immediately preceding the Change in Control Date.

          (iv) Welfare Benefit Plans.  During the Change in Control Employment
Period, the Executive and/or the Executive's family, as the case may be, will be
eligible for participation in and will receive all benefits under welfare
benefit plans, policies and programs provided by the Company and its affiliated
companies to the extent applicable generally to other peer executives of the
Company and its affiliated companies, but in no event will such plans, policies
and programs provide the Executive with benefits that are less favorable, in the
aggregate, than the most favorable of such plans, policies and programs in
effect at any time during the six months immediately preceding the Change in
Control Date.

          (v) Fringe Benefits.  During the Change in Control Employment Period,
the Executive will be entitled to fringe benefits in accordance with the
comparable plans, policies and programs of the Company and its affiliated
companies in effect for the Executive at any time during the six months

                                       8
<PAGE>

immediately preceding the Change in Control Date or, if more favorable to the
Executive, as in effect generally from time to time after the Change in Control
Date with respect to other peer executives of the Company and its affiliated
companies.

          (vi) Vacation.  During the Change in Control Employment Period, the
Executive will be entitled to paid vacation in accordance with the comparable
plans, policies and programs of the Company and its affiliated companies in
effect for the Executive at any time during the six months immediately preceding
the Change in Control Date or, if more favorable to the Executive, as in effect
generally from time to time after the Change in Control Date with respect to
other peer executives of the Company and its affiliated companies.

     11.  Termination of Employment Following Change in Control.

          (a) Death or Incapacity.  The Executive's employment will terminate
automatically upon the Executive's death or Incapacity during the Change in
Control Employment Period.

          (b) Cause.  The Company may terminate the Executive's employment
during the Change in Control Employment Period for Cause (as defined in Section
6(b)).

          (c) Good Reason.  The Executive's employment may be terminated during
the Change in Control Employment Period by the Executive for Good Reason (as
defined in Section 6(c).  Any good faith determination of Good Reason made by
the Executive during the Change in Control Employment Period shall be
conclusive.

          (d) Notice of Termination.  Any termination during the Change in
Control Employment Period by the Company or by the Executive for Good Reason
shall be communicated by written Notice of Termination to the other party
hereto.  For purposes of this Agreement, a "Notice of Termination" shall mean a
notice which shall indicate the specific termination provision in this Agreement
relied upon.

          (e) Date of Termination.  "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Incapacity, the
date specified in the Notice of Termination (which shall not be less than 30 nor
more than 60 days from the date such Notice of Termination is given), and (iii)
if the Executive's employment is terminated for Incapacity, 30 days after Notice
of Termination is given, provided that the Executive shall not have returned to
the full-time performance of his duties during such 30-day period.

     12. Compensation Upon Termination.

          (a) Termination Without Cause or for Good Reason.  The Executive will
be entitled to the following benefits if, during the Change in Control
Employment Period, the Company terminates his employment without Cause or the
Executive terminates his employment with the Company or any affiliated company
for Good Reason.

                                       9
<PAGE>

          (i) Accrued Obligations.  The Accrued Obligations are the sum of: (1)
the Executive's Annual Base Salary through the Date of Termination at the rate
in effect just prior to the time a Notice of Termination is given; (2) the
amount, if any, of any incentive or bonus compensation theretofore earned which
has not yet been paid; (3) the product of the Annual Bonus paid or payable,
including by reason of deferral, for the most recently completed year and a
fraction, the numerator of which is the number of days in the current year
through the Date of Termination and the denominator of which is 365; and (4) any
benefits or awards (including both the cash and stock components) which pursuant
to the terms of any plans, policies or programs have been earned or become
payable, but which have not yet been paid to the Executive (but not including
amounts that previously had been deferred at the Executive's request, which
amounts will be paid in accordance with the Executive's existing directions).
The Accrued Obligations will be paid to the Executive in a lump sum cash payment
within ten days after the Date of Termination;

          (ii) Salary Continuance Benefit.  The Salary Continuance Benefit is an
amount equal to 2.99 times the Executive's Final Compensation.  For purposes of
this Agreement, "Final Compensation" means the Annual Base Salary in effect at
the Date of Termination, plus the highest Annual Bonus paid or payable for the
two most recently completed years and any amount contributed by the Executive
during the most recently completed year pursuant to a salary reduction agreement
or any other program that provides for pre-tax salary reductions or compensation
deferrals.  The Salary Continuance Benefit will be paid to the Executive in a
lump sum cash payment not later than the 45th day following the Date of
Termination;

          (iii)  Welfare Continuance Benefit.  For 36 months following the Date
of Termination, the Executive and his dependents will continue to be covered
under all health and dental plans, disability plans, life insurance plans and
all other welfare benefit plans (as defined in Section 3(1) of ERISA) ("Welfare
Plans") in which the Executive or his dependents were participating immediately
prior to the Date of Termination (the "Welfare Continuance Benefit").  The
Company will pay all or a portion of the cost of the Welfare Continuance Benefit
for the Executive and his dependents under the Welfare Plans on the same basis
as applicable, from time to time, to active employees covered under the Welfare
Plans and the Executive will pay any additional costs.  If participation in any
one or more of the Welfare Plans included in the Welfare Continuance Benefit is
not possible under the terms of the Welfare Plan or any provision of law would
create an adverse tax effect for the Executive or the Company due to such
participation, the Company will provide substantially identical benefits
directly or through an insurance arrangement.  The Welfare Continuance Benefit
as to any Welfare Plan will cease if and when the Executive has obtained
coverage under one or more welfare benefit plans of a subsequent employer that
provides for equal or greater benefits to the Executive and his dependents with
respect to the specific type of benefit.  The Executive or his dependents will
become eligible for COBRA continuation coverage as of the date the Welfare
Continuance Benefit ceases for all health and dental benefits.

                                       10
<PAGE>

          (b) Death.  If the Executive dies during the Change in Control
Employment Period, this Agreement will terminate without any further obligation
on the part of the Company under this Agreement, other than for (i) payment of
the Accrued Obligations and three months of the Executive's Base Salary (which
shall be paid to the Executive's beneficiary designated in writing or his
estate, as applicable, in a lump sum cash payment within 30 days of the date of
death); (ii) the timely payment or provision of the Welfare Continuance Benefit
to the Executive's spouse and other dependents for 36 months following the date
of death; and (iii) the timely payment of all death and retirement benefits
pursuant to the terms of any plan, policy or arrangement of the Company and its
affiliated companies.

          (c) Incapacity.  If the Executive's employment is terminated because
of the Executive's Incapacity during the Change in Control Employment Period,
this Agreement will terminate without any further obligation on the part of the
Company under this Agreement, other than for (i) payment of the Accrued
Obligations and three months of the Executive's Base Salary (which shall be paid
to the Executive in a lump sum cash payment within 30 days of the Date of
Termination); (ii) the timely payment or provision of the Welfare Continuance
Benefit for 36 months following the Date of Termination; and (iii) the timely
payment of all disability and retirement benefits pursuant to the terms of any
plan, policy or arrangement of the Company and its affiliated companies.

          (d) Cause; Other than for Good Reason.  If the Executive's employment
is terminated for Cause during the Change in Control Employment Period, this
Agreement will terminate without further obligation to the Executive other than
the payment to the Executive of the Annual Base Salary through the Date of
Termination, plus the amount of any compensation previously deferred by the
Executive.  If the Executive terminates employment during the Change in Control
Employment Period, excluding a termination either for Good Reason, this
Agreement will terminate without further obligation to the Executive other than
for the Accrued Obligations (which will be paid in a lump sum in cash within 30
days of the Date of Termination) and any other benefits to which the Executive
may be entitled pursuant to the terms of any plan, program or arrangement of the
Company and its affiliated companies.

          (e) Possible Reduction in Payment and Benefits.  Following any Change
in Control, to the extent that any amount of pay or benefits provided under to
the Executive under this Agreement would cause the Executive to be subject to
excise tax under sections 280G and 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), and after taking into consideration all other amounts
payable to the Executive under other Company plans, programs, policies, and
arrangements, then the amount of pay and benefits provided under this Agreement
shall be reduced to the extent necessary to avoid imposition of any such excise
taxes.  The Executive may select the payments and benefits to be limited or
reduced, including an election not to have the vesting of certain benefits,
including stock options, accelerate as a result of a Change in Control.

          (f) Acceleration of Vesting of Stock Awards.  Except as may be
otherwise agreed to by the Executive, all stock option and similar agreements
with the Executive evidencing the grant of a stock option or other award under

                                       11
<PAGE>

the Company's Stock Incentive Plan, or any successor plan, will provide that (i)
the vesting of such stock awards will accelerate and become immediately
exercisable and fully vested as of the Change in Control Date, and (ii) in the
case of stock options, the Executive will have at least ninety (90) days after
termination of employment, or such longer period as may be provided for in the
separate stock option agreement, to exercise the stock option.

     13.  Fees and Expenses; Mitigation; Noncompetition.

          (a) The Company will pay or reimburse the Executive for all costs and
expenses, including without limitation court costs and reasonable attorneys'
fees, incurred by the Executive (i) in contesting or disputing any termination
of the Executive's employment or (ii) in seeking to obtain or enforce any right
or benefit provided by this Agreement, in each case provided the Executive's
claim is substantially upheld by a court of competent jurisdiction.

          (b) The Executive shall not be required to mitigate the amount of any
payment the Company becomes obligated to make to the Executive in connection
with this Agreement, by seeking other employment or otherwise.  Except as
specifically provided above with respect to the Welfare Continuance Benefit, the
amount of any payment provided for in Section 12 shall not be reduced, offset or
subject to recovery by the Company by reason of any compensation earned by the
Executive as the result of employment by another employer after the Date of
Termination, or otherwise.

          (c) The Executive will not be required to comply with the
noncompetition covenant in Section 7(b) if his employment is terminated during
the Change in Control Employment Period without Cause or he terminates for Good
Reason.

     14.  Continuance of Welfare Benefits Upon Death.  If the Executive
dies while receiving a Welfare Continuation Benefit, the Executive's spouse and
other dependents will continue to be covered under all applicable Welfare Plans
during the remainder of the 36-month coverage period.  The Executive's spouse
and other dependents will become eligible for COBRA continuation coverage for
health and dental benefits at the end of such 36-month period.

     15.  Change of Control Defined.  For purposes of this Agreement, a "Change
of Control" shall mean:

          (a) the acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act') of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act), of securities of the Company representing
20% or more of the combined voting power of the then outstanding securities;
provided, however, that the following acquisitions shall not constitute a Change
of Control:

               (i) acquisition directly from the Company (excluding an
acquisition by virtue of the exercise of a conversion privilege);

                                       12
<PAGE>

               (ii) any acquisition by the Company;

               (iii)  any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by
the Company; or

               (iv) any acquisition pursuant to a reorganization, merger or
consolidation by any corporation owned or proposed to be owned, directly or
indirectly, by shareholders of the Company if the shareholders' ownership of
securities of the corporation resulting from such transaction constitutes a
majority of the ownership of securities of the resulting entity and at least a
majority of the members of the board of directors of the corporation resulting
from such transaction were members of the incumbent board as defined in this
Agreement at the time of the execution of the initial agreement providing for
such reorganization, merger or consolidation; or

          (b) where individuals who, as of the inception of this Agreement,
constitute the board of directors of the Company (the "Incumbent Board") cease
for any reason to constitute at least a majority of such board of directors;
provided, however, that any individual becoming a director subsequent to the
effective date of this Agreement whose election, or nomination for election by
the shareholders was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are
used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a person other than a member of the board of directors; or

          (c) the shareholders of the Company approve, or the Company otherwise
consummates,

               (i) a merger, statutory share exchange, or consolidation of the
Company with any other corporation, except as provided in subparagraph (a)(iv)
of this section, or

               (ii) the sale or other disposition of all or substantially all
of the assets of the Company.

                             Part III: Miscellaneous
                            ------------------------

     16.  Documents.  All documents, record, tapes and other media of any kind
or description relating to the business of the Company or any of its affiliates
(the "Documents"), whether or not prepared by the Executive, shall be the sole
and exclusive property of the Company.  The Documents (and any copies) shall be
returned to the Company upon the Executive's termination of employment for any
reason or at such earlier time or times as the Board of Directors or its
designee may specify.

                                       13
<PAGE>

     17.  Severability.  If any provision of this Agreement, or part thereof, is
determined to be unenforceable for any reason whatsoever, it shall be severable
from the remainder of this Agreement and shall not invalidate or affect the
other provisions of this Agreement, which shall remain in full force and effect
arid shall be enforceable according to their terms.  No covenant shall be
dependent upon any other covenant or provision herein, each of which stands
independently.

     18.  Modification.  The parties expressly agree that should a court find
any provision of this Agreement, or part thereof, to be unenforceable or
unreasonable, the court may modify the provision, or part thereof, in a manner
which renders that provision reasonable, enforceable, and in conformity with the
public policy of Virginia.

     19.  Governing Law.  This agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia.

     20. Notices. All written notices required by this Agreement shall be deemed
given when delivered personally or sent by registered or certified mail, return
receipt requested, to the parties at their addresses set forth on the signature
page of this Agreement. Each party may, from time to time, designate a different
address to which notices should be sent.

     21.  Amendment.  This Agreement may not be varied, altered, modified or in
any way amended except by an instrument in writing executed by the parties
hereto or their legal representatives.

     22.  Binding Effect.  This Agreement shall be binding upon the Executive
and on the Company, its successors and assigns effective on the date first above
written subject to the approval by the board of directors of the Company.  The
Company will require any successor to all or substantially all of the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.

     23.  No Construction Against Any Party.  This Agreement is the product of
informed negotiations between the Executive and the Company. If any part of this
Agreement is deemed to he unclear or ambiguous, it shall be construed as if it
were drafted jointly by all parties.  The Executive and the Company agree that
neither party was in a superior bargaining position regarding the substantive
terms of this Agreement.

     24.  Entire Agreement.  This Agreement constitutes the entire agreement of
the parties with respect to the matters addressed herein and it supersedes all
other prior agreements and understandings, both written and oral, express or
implied, with respect to the subject matter of this Agreement.

                                       14
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written herein.

                              VIRGINIA FINANCIAL GROUP, INC.

                              By:
                                 ----------------------------
                                   Harry V. Boney, Jr.
                                   Chairman of the Board

                                 ----------------------------
                                   O.R. Barham, Jr.

                                       15

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