Document:

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EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of the
first day of October 1999, by and between PayStar Communications Corporation, a
Nevada corporation, ("Employer"), and Jeff McKay ("Employee").

                                   WITNESSETH:

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, receipt of which is
hereby acknowledged, the parties agree as follows:

     1. Employment: Employer hereby employs Employee, and Employee hereby
accepts employment with Employer, on the terms and conditions set forth herein.

     2. Duties:

        (a) Employee shall advise and counsel the Board of Directors of Employer
on all matters pertaining to the business, affairs, and activities of Employer,
handle such affairs of Employer, Employer subsidiary(ies), affiliate(s), or
parent as the Board of Directors of Employer shall determine from time to time,
and act in such offices or capacities as the Board shall request,
        (b) So long as he shall be elected to such offices, Employee shall
continue to occupy the positions of and perform all the acts and duties of
President. Employer's Board of Directors may extend or modify Employee's duties
and titles from time to time.
        (c) Employee shall be required to devote his entire time, ability and
attention to the business of Employer.

     3. Term: Subject to the provisions for termination as herein provided, the
term of employment of Employee shall be three (3) years, beginning October 1,
1999, and ending September 30, 2002. Thereafter, this Agreement shall
automatically be renewed for a renewal term of one (1) year after the expiration
of the initial three year term, and for successive one-year renewal terms
thereafter, unless either party gives the other written notice ("Notice") to
terminate the Agreement at the expiration of the initial three year term or of
the first renewal term or of any such successive renewal term. The Notice must
be given at least ninety (90) days prior to the expiration of any such term;
and, provided further, that in any event the automatic renewal clause in this
Agreement shall not be effective to renew this Agreement in excess of three (3)
terms of one (1) year each.

     4. Compensation:

        (a) Base Salary. The compensation to be paid Employee by Employer for
all services rendered to Employer during the term of this Agreement, including
services as an officer, director, or member of any committee of Employer, or of
a parent or subsidiary of Employer, shall be determined by the Board of
Directors of Employer, but in no event shall such annual

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salary be less than three hundred thousand dollars ($300,000.00) ("Base
Salary"), payable in bi-monthly installments in arrears, on the 15th and the
last day of the month after the effective date hereof. The Base Salary shall be
reduced by income tax and other applicable withholdings, and may be payable by
Employer, or by a parent or subsidiary of Employer, at the Employer's
discretion.
        (b) Bonus. In addition to his Base Salary the Employee shall be paid a
bonus in each fiscal year that he is employed by the Employer pursuant to the
terms of this Agreement in an amount not less to one percent (1%) of the net
income of Employer, and not more that four percent (4%) of the net income for
that fiscal year.

     5. Vacation: Employee shall be entitled each year to a vacation of not less
than three (3) weeks, during which time his compensation shall be paid in full.
For vacation purposes, a year shall be deemed to run from July 1 to June 30.

     6. Working Facilities: Employee shall be furnished with a private office,
stenographic and other necessary secretarial assistance, and such other
facilities, amenities and services as are presently or may be hereinafter
furnished to senior management officers of Employee and as are appropriate for
Employee's position and adequate for the performance of his duties.

     7. Other Benefits

        (a) Employee shall be entitled to participate on a basis consistent with
other executive employees of Employer in pension, profit-sharing, stock option,
deferred compensation, savings, hospitalization, medical, disability, and life
insurance programs in accordance with such plans as Employer or its corporate
parent may now have in effect or may adopt from time to time in the future.
        (b) Employer shall provide a monthly automobile allowance not to exceed
$800.00, either in the form of a direct automobile payment or a salary increase
to Employee.
        (c) Employee shall also receive such other additional compensation,
rights and other benefits as the Board of Directors of Employer shall from time
to time, in its absolute and sole discretion, grant to him. (d) The benefits and
perquisites provided from time to time to the Employee may not be unilaterally
reduced or diminished by the Employer.

     8. Expenses: Employee is authorized to incur on behalf of Employer expenses
in connection with the performance of his duties hereunder or in promoting or
furthering the business of Employer, including dues for social clubs, expenses
for entertainment, travel, lodging and similar items, in accordance with the
standards and policies that the Board of Directors of Employer may establish
from time to time. All such expenses are to be paid, insofar as possible, by use
of credit cards in Employer's name furnished to Employee. Any such charges that
cannot be charged an a credit card may be paid for directly by Employee, who
shall be reimbursed by Employer upon the submission to Employer's Treasurer of
an itemized account of such expenditures.

     9. Location: The office at which Employee will be employed is located in
Modesto,

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California. Employer will not be required to relocate outside of the Stanislaus
County, California, area without his voluntary consent. The withholding of such
consent shall not be grounds for any action taken against Employee.

     10. Confidentiality: Except as required in the ordinary course of
Employer's Business, Employee shall hold in confidence and not disclose to any
person or entity without the express prior written authorization of Employer,
either during the term of this Agreement or any time thereafter, the names or
addresses of any of Employer's customers; Employer's past or prospective
dealings with its customers; the parties, dates, or terms if any of Employer's
contracts; any information, trade secrets, systems, processes or business
methods, or any other secret or confidential matter relating to the customers or
the business affairs of Employer or any companies affiliated with Employer.
Employee acknowledges that in the course of performing his duties he may have
access to confidential information, the ownership and confidential status of
which are highly important to Employer and he agrees to comply with all known
policies and procedures of Employer for the protection of said confidential
information. The term "confidential information" as used in this Agreement means
(1) proprietary information of Employer including, but not limited to, formulas,
procedure, processes, materials, client lists and vendor lists (2) information
marked or designated by Employer as confidential (3) information whether or not
in written form which is known by the Employee to be treated by Employer as
confidential and (4) information provided to employee by third parties which
Employer is obligated to keep confidential. Employee agrees as follows:

        (a) That he will not copy, transmit, reproduce, summarize, quote or make
any commercial or other use whatsoever of Employer's confidential information
except as may be necessary in the performance of his duties for Employer.

        (b) Employee agrees to exercise the highest degree of care in
safeguarding Employer's confidential information against loss, theft or other
inadvertent disclosure and agree generally to take all steps necessary to ensure
the maintenance of confidentiality.

        (c) Upon termination of his employment, or as otherwise requested by
Employer, will deliver promptly to Employer all of Employer's confidential
information in whatever form that may be in their possession or under their
control.

        (d) Employee agrees not to disclose Employer's confidential information
directly or indirectly under any circumstances or by any means to any third
person without the express written consent of Employer.

     11. Non-Competition: While employed and for a period of one yew after the
termination of employment, Employee shall not, without the prior written consent
of Employer, compete with Employer, its subsidiaries, successors, or assigns,
either directly or indirectly, as an owner, member, partner, employee, officer,
director or agent of any sole proprietorship, association, partnership or
corporation. For the purposes of this Paragraph, the terms "compete" and
"competition" and "competitor" shall refer to: ATM script and pre-paid products.

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     Should any term or condition of these covenants against competition be
found to be unreasonable or excessive by any court of competent jurisdiction,
the parties agree to accept as binding in lieu thereof any lesser restrictions
which said court may deem reasonable.

     Both Employer and the Employee recognize that no adequate remedy at law
exists in which to enforce the terms and conditions of this Agreement.
Therefore, in the event the Employee breaches the confidential or covenant
not-to-compete provisions of this Agreement, then Employer shall be entitled to
injunctive relief prohibiting the continued breaches of the Agreement by the
Employee.

     12. Right to Employer Materials: Employee agrees that all documents are
intangible media relating to Employer's Business, including, but not limited to
the following; advertising literature, drawings, blueprints, notes, memorandum,
specification, devices, mechanical pads, formula, lists, materials, books,
files, reports, correspondence, records and other documents ("Employer
Materials") relating to the Business of Employer, shall remain the property of
Employer. Employer Materials constitute trade secrets of Employer and shall not
be disclosed to any other party except as expressly authorized by Employer. Upon
termination of employment, for any reason, all Employer Materials shall be
returned immediately to Employer, and Employee shall not make or retain any
copies thereof. Employee acknowledges and agrees that any knowledge, information
and materials in Employee's possession relating to the Business which Employee
possessed prior to the transfer of the Business to Employer, shall also be
deemed to constitute part of Employer Materials for purposes of this Section.

     13. Inventions and Patents: Employee agrees that he will promptly and from
time to time fully inform and disclose to Employer all inventions, designs,
improvements, and discoveries which he now has or may hereafter have during the
term of this Agreement which pertain to or relate to the Business of Employer or
to any experimental work carried on by Employer, whether conceived by the
Employee alone or with others and whether or not conceived during regular
working hours. All such inventions, designs, improvement and discoveries shall
be the exclusive property of Employer. Employee shall assist Employer to obtain
patents on all such inventions, designs, improvements, and discoveries deemed
patentable by Employer and shall execute all documents and do all things
necessary to obtain letters patent, vest Employer with full and exclusive title
thereto, and protect the same against infringement by others. This provision
shall apply with equal force and effect to any items that may be subject to
copyright or trademark protection. This provision does not apply to an invention
for which no equipment, supplies, facility or trade secret information of the
Employer was used and which was developed entirely on the Employee's own time,
and (a) which does not relate, at the time the invention is conceived or reduced
to practice, to (1) the Business of Employer, or (2) actual or demonstrably
related anticipated research or development of Employer; or (b) which does not
result from any work performed by the Employee for the Employer. The provisions
set forth in the preceding sentence shall not, however, in any way authorize
Employee to engage in any such activities set forth therein in contravention of
the provisions of his duties and obligations hereunder.

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     14. Termination.

        (a) The employment of Employee may be terminated at any time by:

            (i)   Mutual written agreement; or
            (ii)  The death of Employer; or
            (iii) Action of the Board of Directors of Employer if Employee is
in material and willful default in the performance of his obligations,
services, or duties hereunder, or has materially and willfully breached any
provision of this Agreement or the Stockholders Agreement, or has committed
any act of dishonesty, fraud, misrepresentation, or other act of moral
turpitude that would prevent the effective performance of Employee's duties; or
            (iv)  Action of Employee if Employer is in default in the
performance of its Obligations or duties hereunder, or has breached any
provision of this Agreement or the Stockholders Agreement; or has committed
any act of dishonesty, fraud, misrepresentation, or other act of moral
turpitude that would prevent the effective performance of Employee's duties; or
            (v)  Either party in the event Employee shall not be elected to the
office of President of Employer. In the event Employer terminates the employment
pursuant to this provision, Employer shall continue to pay Employee for the
remainder of the term of the Agreement the compensation specified in paragraph 4
of this Agreement, except and to the extent that Employee is being paid more
than the minimum amount set forth in paragraph 4, then Employee shall be
entitled to the remaining payments at the increased rate; however, the other
benefits to which Employee is entitled pursuant to paragraph 7 of this Agreement
shall not continue for the remainder of the term of this Agreement; or
            (vi)  A determination by the Board of Directors that the Employee
has become so physically or mentally disabled as to be incapable of
satisfactorily performing his duties under this Agreement for a period of
ninety (90) consecutive days.
        (b) Thirty (30) days' written notice to the other party shall be given
prior to termination by either party followed by a reasonable time within which
to cure as to termination under subparagraphs 14(a)(i), (iii), (iv), (v) or
(vi).
        (c) Termination under subparagraphs 14(a)(iii) or (iv) shall not be in
limitation of any other right or remedy which the terminating party may have
under this Agreement or otherwise, however, if this Agreement is terminated
pursuant to paragraph 14(a)(iii) hereof, the Employee shall not be required to
mitigate damages otherwise obtainable from the Employer as a result thereof and
any income received by the Employee after such termination shall not reduce the
amount of damages otherwise obtainable from the Employer hereunder.
        (d) All obligations of Employer hereunder shall terminate upon the death
of Employee except:
            (i) Employer shall pay to the spouse of Employee the compensation as
set forth in subparagraph 4 for the remaining initial or renewal term of this
Agreement. If Employee does not have a surviving spouse at that time, Employer
agrees to pay Employee's designee or estate said sums;
            (ii) To the extent that Employee by reason of his death becomes
entitled to benefits under any group life insurance policy provided by Employer
hereunder.

     15. Successors and Assigns. The rights and obligations of Employer under
this

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Agreement shall inure to the benefit of and be binding upon the successors and
assigns of Employer, and the rights and obligations of Employee under this
Agreement shall inure and be binding upon his heirs, executors and
administrators.

     16. Definitions: For purposes of this Agreement unless the context
indicates otherwise, the term Employer shall be deemed to also include any
corporation which is in control of, controlled by or under common control with
Employer, whether or not Employee is directly employed by such other corporation
or corporations.

     17. Notices: Any notice to be given to Employer under the terms of this
Agreement shall be addressed to the Chairman of Employer's Board of Directors,
and any notice to be given to Employee shall be addressed to him at his home
address last shown on the records of Employer, or at such other address as
either party may hereafter designate in writing to the other. Any such notice
(except notice of a change of address) shall have been deemed duly given when
enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
registered or certified, and deposited (postage and registry or certification
fee prepaid) in a post office or branch post office regularly maintained by the
United States Government. Notice of a change of address shall be deemed given
only when received.

     18. Waiver: Either party's failure to enforce any provision or provisions
of this Agreement shall not in any way be construed as a waiver of any such
provision or provisions, or prevent that party thereafter from enforcing each
and every other provision of this Agreement. The rights granted both parties
herein are cumulative and shall not constitute a waiver of either party's right
to assert all other legal remedies available to it under the circumstances.

     19. Governing Law and Binding Effect: This Agreement shall be interpreted
and construed in accordance with the laws of the State of California and shall
inure to the benefit of and be binding upon the parties hereto and their heirs,
personal representatives, successors and assigns.

     20. Captions and Paragraph Headings: Captions and paragraph headings used
herein are for convenience only, are not a part of this Agreement, and shall not
be used in construing it.

     21. Severability: The invalidity or unenforceability of any provision
hereof or any part of any provision hereof shall in no way affect the validity
or enforceability of any other provision or part hereof, and this Agreement
shall be interpreted, construed and enforced as though the invalid or
unenforceable provision were not contained herein.

     22. Counterparts: This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.

     23. Entire Agreement: This Agreement supersedes all prior agreements and
understanding between the parties and may not be modified or terminated orally.
No modification, termination, or attempted waiver shall be valid unless in
writing and signed by the

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party against whom the same is sought to be enforced.

     IN WITNESS WHEREOF, the parties have duly executed this Agreement on the
date and year first set forth above.

                  EMPLOYER      PayStar Communications Corporation
                                A Nevada Corporation
                                By: /s/ William D. Yotty, Chairman
                                By: /s/ Jim Chambas, Secretary

                  EMPLOYEE      /s/ Jeff McKay<PAGE>

EXHIBIT 10.6

                        PAY TELEPHONE SERVICES AGREEMENT

     THIS AGREEMENT, made this ____ day of _________________, ______, by and
between the undersigned designated parties
____________________________________________________ (hereafter referred to as
"Owner") and Paystar Communications, Inc., a Nevada Corporation (hereafter
referred to as "Company").

                                   WITNESSETH:

     WHEREAS, Owner owns and operates the private pay telephone(s)
(collectively, the "Telephone(s)") at the locations set forth in Exhibit A
attached hereto; and

     WHEREAS, the Owner desires to utilize the services of Company in connection
with the operation of the Telephone(s) and Company desires to render such
services, upon the terms and conditions hereinafter set forth: and

     NOW, THEREFORE, in consideration of the foregoing recitals, all of which
are incorporated herein by reference, and of the mutual covenants herein
contained, the Owner and Company agree as follows:

                                    SECTION I
                                   DEFINITIONS

     1.1 Definitions. As used herein, the following terms shall have the
respective meanings indicated below:

         (a) Capital Improvements: any alteration or addition to, or rebuilding
or renovation of, the Telephone(s) the cost of which is not charged to repairs,
maintenance or other operating expenses.

         (b) Gross Revenues: all receipts of a Telephone from all sources,
except the proceeds from the sale of such Telephone.

         (c) Legal Requirements: all laws, statutes ordinances, orders, rules,
regulations, permits, licenses, authorizations, directions and requirements of
all governments and governmental authorities, which now or hereafter, may be
applicable to the Telephone(s), or any Telephone and the operation thereof.

         (d) Operating Vendors: Vendors of all services required in the
operation of the Telephone(s), including all lessors, local and long distance
carriers, operator service providers and other carriers.

         (e) Net Revenues: Gross Revenues, less the payment of all vendor
invoices

<PAGE>

relating to telephone usage, including, but not limited to, all fees and taxes
due and owing to local and long distance telephone carriers, site owners, and
operator service providers, the cost of ordinary and necessary new or
serviceable parts not covered by the manufacture's warranty required to repair
the Telephone, and the cost of all ordinary and necessary service calls to
repair the Telephone at a rate of $20 each occurrence.

         (f) Sites: The physical location upon which each Telephone is in
operation.

                                   SECTION II
                                      TERM

     2.1 Term. The term of the Agreement shall be one (1) year and commence on
the date hereof and end at midnight on the first (1st) anniversary of the date
hereof. Unless terminated by ninety (90) days written notice prior to the
anniversary date. This Agreement shall extend annually 1 year at a time.

     2.2 Termination. Anything contained in this Agreement to the contrary
notwithstanding, Owner, at its sole discretion, shall have the right to
terminate this Agreement, without default by Company, as herinafter defined in
Section 9.2, after sixty (60) days written notice of termination to Company at
which time this Agreement shall be defined null and void.

     2.3 Acquisition. Owner will be solely responsible for the acquisition or
lease of each of the Telephone(s), including the purchase of Capital
Improvements required for the Telephone(s), and the acquisition or lease of the
Sites.

                                   SECTION III
                           OPERATION OF THE TELEPHONES

     3.1 Company's Duties and Responsibilities. During the Operating Period,
Company, on behalf and at the sole expense of Owner, in accordance with the
standards set forth in Section 3.2 is hereby authorized to and shall perform the
services indicated in Exhibit B, and with respect to the services described in
Sections L1-L4, as expressly authorized by Owner.

     3.2 Owner's Release Option. Provided that the Agreement shall remain in
effect through the fifth anniversary of the date of the Agreement (the
"Termination Date"), and ninety (90) days notice given to Company with first
right of refusal, then Owner shall have the option to require the Company to
Purchase from Owner any Telephone(s) upon the following terms and conditions
(the "Option"):

         a.   Sales Price. The value of any Telephone, the "Sales Price", shall
              be six thousand dollars ($6,000.00) or fair market value (which
              ever is higher). Payment of the Sales Price shall be made within
              thirty (30) days of the Termination Date.

<PAGE>

         b.   Conveyance of the Telephone(s). Concurrently upon receipt of the
              cash proceeds described in Section a above, Owner shall deliver
              to Company, at the address provided in Section XI of the
              Agreement or at such other address as Company may designate in
              writing, title to the Telephone(s) at current locations, with all
              taxes, direct or indirect, attributable to the transfer of the
              Telephone(s) paid and shall take such other steps as may be
              necessary to convey the Telephone(s) to Company free and clear of
              all liens, claims and encumbrances, as contemplated in the
              Agreement. The date of such conveyance shall be deemed the
              "Closing Date".

     3.3 Company's Release Purchase Option. During the term of the Agreement and
after the initial period of twelve (12) months, the Company may, by giving 90
days notice to the Owner, elect to purchase from Owner the Telephone(s) and site
agreement(s) (to include all owned telephones) for the sum of six thousand five
hundred dollars ($6500.00) each. The Owner may, by giving 90 days notice with
first right of refusal to the Company and after said Company's refusal, retain
the right to sell the Telephone(s) and site agreement(s) to a third party.

     3.4 Standard of Services. Company agrees that its services hereunder shall
be performed by competent personnel. All obligations of Company hereunder shall
be subject to and contingent upon (a) the provision by Owner of sufficient funds
(if not otherwise available from the operations of the Telephone(s)) to permit
Company to comply with, and (b) the commission by Owner of no act which prevents
Company from complying with such obligations. At the request of either, Company
and Owner shall meet to discuss any aspect of the operation of the Telephone(s)
or any operating problem which warrants a modification of any operating policy
or procedure. Owner acknowledges and agrees that Company is not a guarantor of
the financial success of the Telephone(s).

     3.5 Funding. From time to time throughout the term hereof as and when
requested by Company upon at least fifteen (15) days prior written notice, Owner
shall provide working capital by way of cash or through bank credit, such
working capital to be in amounts sufficient to constitute normal working capital
for Company to perform the services described in Sections L1-L3 of Exhibit B, to
the extent such services are authorized by Owner. Company shall in no event be
required to advance any of its own funds for the operation of the Telephone(s).
Not applicable if Level four (4) services are selected.

                                   SECTION IV
                    REMUNERATION AND REIMBURSEMENT OF COMPANY

     4.1 Monthly Fee. During the Operating Period, Owner shall pay to Company
with respect to each Telephone a monthly fee (the "Monthly Fee") as set forth in
Exhibit B attached hereto.

     4.2 Payment of Telephone Revenue and Monthly Fees. All Telephone(s)
revenues collected by the Company shall be mailed by the 10th day of the second
month based upon the Gross Revenues of the relevant Telephone.

     4.3 At any time during the term of the agreement, Owner may request that
Company pay

<PAGE>

to Owner all Telephone revenues collected by Company by the last day of each
quarter or semi-annual period instead of on the 10th day of the second month as
set forth within 4.2 above. Such request shall be in writing.

                                    SECTION V
                    COMPANY TO ACT SOLELY AS AGENT FOR OWNER

     5.1 In the performance of its duties hereunder, Company shall act solely as
agent of Owner. Nothing herein shall constitute or be construed to be or create
a partnership or joint venture between Owner and Company, nor shall the
execution and delivery of this Agreement by Company constitute the offer or sale
to Owner of an investment contract or other security. As to debts and
liabilities of Owner, Company shall not be liable for any such debts or
liabilities by reason of its maintenance, supervision, direction or operation of
the Telephone(s) for Owner. Company may so inform third parties with whom it
deals on behalf of Owner and may take any other reasonable steps to carry out
the intent of this Section. Owner agrees that it shall provide sufficient funds
to enable Company to promptly pay or discharge all obligations and debts of the
Telephone(s). Owner further agrees to indemnify, defend and hold Company and its
officers, employees, shareholders and affiliates harmless from any and all
liabilities, debts, claims or expenses (including reasonable attorney's fees and
other expenses in connection with the defense of same) of the Telephone(s)
incurred in accordance herewith.

                                   SECTION VI
                          BOOKS AND RECORDS AND REPORTS

     6.1 Books and Records. Company shall keep complete and accurate books of
account and other records on an accrual basis reflecting the results of
operation of the Telephone(s). Books of account and all other records relating
to or reflecting the operation of the Telephone(s) shall be available to Owner
and its representatives at the office of Company at all reasonable times for
examination, audit, inspection and copying. Such books and records shall not be
removed from the office of Company (other than temporarily for examination or
use by accountants employed to examine such books and records or prepare
financial statements or reports with respect to the Telephone(s)) without
Owner's prior written approval.

     6.2 Reports. Within forty-five (45) days after the end of each month,
Company shall prepare and furnish to Owner financial statements for each
Telephone for such month and, the Operating Year. Such statements shall include
a report of income or loss for the month, a balance sheet as of the end of the
month and an inventory report. The statements for the Operating Year shall be
prepared by Company and may be reviewed by an accounting firm retained by Owner,
which firm may also review the Monthly Fees for such year.

                                   SECTION VII
                              INSURANCE AND LOSSES

     7.1 Owner acknowledges and agrees that it shall be solely responsible for
obtaining and keeping in force with respect to the Telephone(s), in amounts
determined by Owner: (a) fire and

<PAGE>

extended coverage and business interruption insurance; (b) liability and excess
liability insurance for loss, damage or injury to property or persons which
might arise out of the operation of the Telephone(s); (c) any workmen's
compensation and employer liability coverage as required by statute; and (d) any
other coverage desired by Owner. Not applicable if Level four (4) services are
selected.

                                  SECTION VIII
                                 INDEMNIFICATION

     8.1 Owner and Company agree to protect, indemnify and hold each other
harmless from and against any and all losses, costs, expenses, claims, demands,
judgments, orders, decrees, damages or liabilities (including without
limitation, costs of litigation and reasonable attorneys' fees) arising out of
any tortuous conduct on the part of the indemnifying party or related in any way
to the failure or refusal of the indemnifying party to comply timely and fully
with each of its obligations, promises and covenants set forth herein.

                                   SECTION IX
                                     DEFAULT

     9.1 Default by Owner. Owner shall be in default hereunder if any one or
more of the following shall occur or exist: (a) Owner shall fail to provide
funds, after request by Company pursuant to Section 3.4, sufficient to permit
timely payment of any amount due to Company hereunder and such failure shall
continue for seven (7) days after written notice thereof has been given to Owner
by Company; or (b) Owner shall neglect or fail to perform any of its duties or
obligations hereunder or shall neglect or fail to comply with any of the
provisions hereof (other than as referred to in subsection (a) of this Section
9.1) and shall fail to remedy the same within fourteen (14) days after Company
shall have given Owner written notice specifying such neglect or failure or if
such failure cannot reasonably be cured within said fourteen (14) days and Owner
shall not have commenced to cure such failure within such period and shall not
thereafter with reasonable diligence and good faith cure such failure.

     9.2 Default by Company. Company shall be in default hereunder if Company
shall neglect or fail to perform any of its duties or obligations hereunder or
shall neglect or fail to comply with any of the provisions hereof and shall fail
to remedy the same within thirty (30) days after Owner shall have given Company
written notice specifying such neglect or failure or if such failure cannot
reasonably be cured within said thirty (30) days and Company shall not have
commenced to cure such failure within such period and shall not thereafter with
reasonable diligence and good faith cure such failure.

     9.3 Remedies Upon Default. Upon the occurrence of any default under Section
9.1 or Section 9.2, the non-defaulting party may, in addition to and without
prejudice to any other right or remedy available to it at law or in equity,
terminate this Agreement by written notice of termination given to the
defaulting party.

                                    SECTION X

<PAGE>

                                   ASSIGNMENT

     10.1 Either Company or Owner may voluntarily, by operation of law or
otherwise, assign any of its rights or delegate any of its duties hereunder.

                                   SECTION XI
                                     NOTICES

     11.1 All notices, statements, consents, approvals, requests and demands
shall be in writing, duly executed by an authorized officer or agent, and shall
be delivered personally or sent by certified or registered United States mail,
postage prepaid, return receipt requested, addressed to Owner as set forth in
the signature page of this Agreement and to Company as follows:

         If to Company:             Jeff D. McKay, President
                                    PAYSTAR COMMUNICATIONS, INC.
                                    1110 W. Kettleman Ln. #46
                                    Lodi, CA  95240
         If to Owner:
                                    -------------------------------------

                                    -------------------------------------

                                    -------------------------------------

                                    -------------------------------------

     Any notice, statement, consent, approval, request, demand or other
communication, if delivered personally, shall be deemed to be given upon
delivery to the entities specified above; and, if sent by mail, shall be deemed
to have been given three (3) days after being deposited in the United States
mail, postage prepaid, properly addressed as provided above. Either party may
change either or both the address and person to which notices thereafter shall
be sent by giving notice to the other party in the manner provided above.

                                   SECTION XII
                                  MISCELLANEOUS

     12.1 Copies of Notices. Owner and Company shall each promptly furnish the
other with copies of all notices received concerning a Telephone, and especially
notices relating to any claimed failure to perform obligations with respect to a
Telephone, including, without limitation, notices from governmental authorities
and from third parties asserting rights to recover damages for personal injury
or property damage, breach of contract or any other claim.

     12.2 Headings. The headings to the articles and sections of this Agreement
are inserted for convenience of reference only and shall in no way affect the
interpretation of this Agreement.

     12.3 Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties concerning the subject matter hereof and
supersedes all prior and contemporaneous negotiations, correspondence, memoranda
and agreements, whether oral or written.

<PAGE>

     12.4 Amendment. Except as specifically provided otherwise herein, this
Agreement may be amended, modified, altered or waived, in whole or in part, only
by a written instrument signed by the party to be bound by such amendment,
modification, alteration or waiver.

     12.5 Waivers. The waiver of any of the terms and conditions of this
Agreement on any occasion shall not be deemed a waiver of such terms and
conditions on any future occasion.

     12.6 Severability. If any term or provision of this Agreement or the
application of that term or provision to any person or circumstance is illegal,
invalid or unenforceable to any extent, then the remainder of the Agreement and
the application of that term or provision to persons or circumstances other than
those as to which it is held illegal, invalid or unenforceable, shall not be
affected thereby. It is also the intention of the parties to this Agreement that
in lieu of each term or provision of this Agreement that is illegal, invalid or
unenforceable, there be added as a part of this Agreement a term or provision as
similar in terms to such illegal, invalid or unenforceable term or provision as
may be possible and be legal, valid and enforceable.

     12.7 Binding Effect. This Agreement shall bind and inure to the benefit of
Owner and Company and their respective successors and assigns.

     12.8 Applicable Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of California. If any suit or action
(including any appeal) is brought to enforce or interpret any one or more of the
terms and provisions of this Agreement, the prevailing party shall be entitled
to reasonable attorney fees and all costs of such action from the other party.

     12.9 Impossibility of Performance. Neither Owner nor Company shall be
liable for loss or damage or deemed to be in breach of this Agreement if its
failure to perform its obligations results from: (1) the unavailability of
suitable Operating Vendors; (2) compliance with Legal Requirements; (3) acts of
God; (4) acts of omissions of the other party; (5) fires, strikes, embargoes,
war, or riot; or (6) any other similar event or cause beyond the control of the
non-performing party. Any delay resulting from any of said causes shall extend
performance accordingly or excuse performance, in whole or in part, as may be
reasonable, but with respect only to the relevant Telephone, except that said
causes shall not excuse payments of amounts owed at the time of such occurrence.

     12.10 Personal Emergency. The Company will exercise the Owner's Release
Option (3.2) upon notice from Owner of a valid and documented personal
emergency. This request by Owner must be accompanied by a letter from a doctor
of a life threatening event or by an attorney or other qualified representative
of the Owner in the event of an emergency legal situation requiring the exercise
of 3.2.a of this Agreement. This request may not be unduly withheld by the
Company.

     IN WITNESS WHEREOF, the Owner has duly executed this Agreement as of the
_______day of __________________, 19___.

<PAGE>

OWNER: (COMPLETE ONE)

Business Entity                          Individual

-------------------------------          -------------------------------
(Print Name)                             (Print Name)

-------------------------------          -------------------------------
(Signature)                              (Signature)

-------------------------------          -------------------------------
(Title)                                  (Telephone)

-------------------------------          -------------------------------
(Address)                                (SSN#)

-------------------------------
(City, State, Zip)

                                         COMPANY ACCEPTANCE
-------------------------------
(Telephone)
                                         Jeff D. McKay, President
                                         PAYSTAR COMMUNICATION, INC.
-------------------------------          1110 W. Kettleman Ln. #46
(SSN/FIEN NO.)                           Lodi, CA  95240

                                         ---------------------------------
                                         (Signature)

                                         ---------------------------------
                                         (Date)

<PAGE>

                                    Exhibit A
                                 (Page___of___)
                    Telephone Equipment Business No.________
        (Attach Extra copies for each Business to be purchased hereunder)

Site Address:
                  ----------------------------------
                  (Location Name)

                  ----------------------------------
                  (Address)

                  ----------------------------------
                  (City, State, Zip)

Telephone Serial No.:
                     -------------------------------

Enclosure Type:
                ------------------------------------

Other Equipment:
                ------------------------------------

Geographic Location:                              General Location:

__________AL                                      ___________Indoor
__________CA                                      ___________Outdoor
__________NV                                      ___________Either
__________IL
__________GA
__________MI
__________OH
__________TX
__________WA
__________Other
__________No Preference

Existing Long Distance Company                       OSP Services

____________Telco Communications                     ___________Opticom
____________US Long Distance                         ___________ILD Teleservices
____________ILD Teleservices                         ___________Other
____________Other

<PAGE>

                                    EXHIBIT B

                        PAY TELEPHONE SERVICES AGREEMENT
                                   SELECT ONE

Service Levels and Fees

During the term of this Agreement, Owner shall pay to Company with respect to
each Telephone a monthly fee ("Monthly Fee*") based on the following level of
services provided by Company. Owners signature in the space provided indicates
Owners understanding and acceptance of the terms of the Service selected.

         Level 1                Collect all monthly revenue generated by the
                           Telephone(s), and forward same to Owner in accordance
                           with Owner's written direction to Company, less the
                           Monthly Fee.

                Monthly Service Fee $25.00     Signature
                                                        ------------------------

         Level 2                Level 1 Service PLUS at Owner's expense, pay
                           commissions and fees to operating Vendors.

                Monthly Service Fee $35.00     Signature
                                                        ------------------------

         Level 3                Level 1 & 2 Services PLUS in consultation with
                           Owner, provide for the repair of the Telephone(s) and
                           maintain the Telephone(s) in a neat and clean
                           condition and in compliance with all Legal
                           Requirements, and with Owner's prior written
                           approval, make Capital Improvements, as necessary.

                Monthly Service Fee $50.00     Signature
                                                        ------------------------

         Level 4                Shall perform all of the services indicated
                           within the above sections Level 1-3, PLUS a guarantee
                           against losses incurred by theft, vandalism, or
                           destruction.  In the event Owner shall elect to
                           exercise the Release Purchase Option pursuant to
                           Section 3.2 of the Agreement and Exhibit A attached
                           thereto, then the Monthly Service Fee shall be 70% of
                           Net Revenues for each Telephone as set forth in
                           Exhibit A of the Agreement.  In the event Gross
                           Revenues are equal to or less than the option Amount
                           for each month, then Owner shall be entitled to 100%
                           of such net Revenues, or $65.00 for each Telephone,
                           which ever is greater.

                                               Signature
                                                        ------------------------

                *Such fees may be adjusted by Company with 90 days notice
       (Level 4 (L4) Services will remain in effect for contract duration).

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