Document:

EXHIBIT 4.1

                       SECURITIES PURCHASE AGREEMENT

      This Securities Purchase  Agreement (this "Agreement")  is dated as  of
 March  8,  2006,  by  and  between  RAPID  LINK  INCORPORATED,  a   Delaware
 corporation (the  "Company"),  and TRIDENT  GROWTH  FUND, L.P.,  a  Delaware
 limited partnership, (the "Purchaser").

                                 WITNESSETH:

      WHEREAS, subject  to  the  terms  and  conditions  set  forth  in  this
 Agreement and  pursuant  to  an exemption  from  registration  contained  in
 Section 4(2) of  the Securities  Act of  1933, as  amended (the  "Securities
 Act") and Rule 506 promulgated thereunder, the Company desires to issue  and
 sell to  Purchaser, and  Purchaser desires  to  purchase from  the  Company,
 securities of the Company as more fully described in this Agreement.

      NOW, THEREFORE, in consideration of  the mutual covenants contained  in
 this Agreement, and for  other good and  valuable consideration the  receipt
 and adequacy of  which are hereby  acknowledged, the  Company and  Purchaser
 agree as follows:

                                 ARTICLE I.
                                 DEFINITIONS

      1.1  Definitions.  In addition to the  terms defined elsewhere in  this
 Agreement: (a) capitalized terms that are not otherwise defined herein  have
 the meanings given to  such terms in the  Debenture(s) (as defined  herein),
 and (b) the following terms have the meanings indicated in this Section 1.1:

           "Action" shall have the meaning ascribed  to such term in  Section
      3.1(i).

           "Affiliate" means any Person that, directly or indirectly  through
      one or more intermediaries,  controls or is controlled  by or is  under
      common control with a Person, as  such terms are used in and  construed
      under Rule 144 under  the Securities Act.   With respect to  Purchaser,
      any  investment  fund  or  managed  account   that  is  managed  on   a
      discretionary basis by the same investment manager as Purchaser will be
      deemed to be an Affiliate of Purchaser.

           "Business Day" means any day except  Saturday, Sunday and any  day
      which shall be a federal legal holiday in the United States or a day on
      which banking  institutions in  the State  of Texas  are authorized  or
      required by law or other government action to close.

           "Change of  Control Transaction"  means the  occurrence after  the
      date hereof of any of  (i) an acquisition after  the date hereof by  an
      individual or legal entity or "group" (as described in Rule 13d-5(b)(1)
      promulgated under  the  Exchange  Act) of  effective  control  (whether
      through legal or beneficial  ownership (as described  in Rule 13d-3  of
      the Exchange  Act) of  capital stock  of the  Company, by  contract  or
      otherwise) of in excess of 40% of the voting securities of the Company,
      or (ii) a replacement at one time or  within a one year period of  more
      than one-half of the members of the Company's board of directors  which
      is not approved by a majority  of those individuals who are members  of
      the board of directors on the date hereof (or by those individuals  who
      are serving as  members of  the board of  directors on  any date  whose
      nomination to the board of directors was approved by a majority of  the
      members of the board of directors who are members on the date  hereof),
      or (iii) the  execution by  the Company of  an agreement  to which  the
      Company is a party or by  which it is bound,  providing for any of  the
      events set forth above in (i) or (ii).

           "Closing" means  the  closing of  the  purchase and  sale  of  the
      Securities pursuant to Section 2.1.

           "Closing Date" means the Business Day when all of the  Transaction
      Documents have been  executed and delivered  by the applicable  parties
      thereto, and all conditions precedent to (i) Purchaser's obligations to
      pay the  Subscription  Amount and  (ii)  the Company's  obligations  to
      deliver the Securities  have been satisfied  or waived.   There may  be
      multiple Closing Dates.

           "Commission" means the Securities and Exchange Commission.

           "Common Stock" means the  common stock of  the Company, par  value
      $.001 per share, and any securities into which such common stock  shall
      hereinafter have been reclassified into.

           "Common Stock  Equivalents" means  any securities  of the  Company
      which would entitle the  holder thereof to acquire  at any time  Common
      Stock, including without limitation, any debt, preferred stock, rights,
      options, warrants or other instrument that  is at any time  convertible
      into or exchangeable for, or otherwise  entitles the holder thereof  to
      receive, Common Stock.

            "Debenture" means, the 10% Secured Convertible Debenture, in  the
      form of Exhibit A.

           "Disclosure Schedules"  shall have  the meaning  ascribed to  such
      term in Section 3.1 hereof.

           "Effective Date"  means the  date  that the  initial  registration
      statement filed by the Company for the Registrable Securities or Common
      Stock is first declared effective by the Commission.

           "Exchange Act"  means  the Securities  Exchange  Act of  1934,  as
      amended.

           "Exempt Issuance" means the issuance of (a) shares of Common Stock
      or options to employees, officers or directors of the Company  pursuant
      to any stock or option  plan currently in place  as of the date  hereof
      which has been duly adopted by the Board of Directors and  shareholders
      of the Company, (b)  securities upon the exercise  of or conversion  of
      any securities  issued hereunder,  convertible securities,  options  or
      warrants issued and outstanding on the date of this Agreement, provided
      that such  securities have  not been  amended since  the date  of  this
      Agreement  to  increase  the  number  of  such  underlying  shares   in
      connection therewith, (c) securities issued pursuant to acquisitions or
      strategic transactions, provided any such issuance  shall only be to  a
      Person which  is,  itself or  through  its subsidiaries,  an  operating
      company in a business synergistic with the business of the Company  and
      in which the Company receives benefits in addition to the investment of
      funds, but shall  not include  a transaction  in which  the Company  is
      issuing securities primarily for the purpose  of raising capital or  to
      an entity whose primary  business is investing  in securities, and  (d)
      shares of Common Stock or Common Stock Equivalents issued in with  that
      certain  transaction   with   Telenational  Communications,   Inc.   as
      contemplated and set  forth in that  certain binding  letter of  intent
      entered into between the Company and Telenational Communications,  Inc.
      on or about February 14, 2006.

           "Fully Diluted Basis" shall mean all Common Stock or Common  Stock
      Equivalents of the Company including the exercise or conversion of  all
      rights, options,  derivative  and convertible  securities  and  further
      including the  conversion (whether  convertible or  not) of  all  other
      common or preferred  stock equivalents  outstanding or  required to  be
      issued by the Company.

           "Fundamental Transaction" shall mean  (A) the Company effects  any
      merger or consolidation of the Company with or into another Person, (B)
      the Company effects any sale of all or substantially all of its  assets
      in one or  a series of  related transactions, (C)  any tender offer  or
      exchange offer (whether by the Company or another Person) is  completed
      pursuant to which holders  of Common Stock are  permitted to tender  or
      exchange their shares for  other securities, cash  or property, or  (D)
      the Company effects  any reclassification of  the Common  Stock or  any
      compulsory share  exchange  pursuant  to  which  the  Common  Stock  is
      effectively converted into or exchanged  for other securities, cash  or
      property.

            "GAAP"  shall  mean  generally  accepted  accounting  principles,
      consistently applied.

            "Intellectual Property Rights" shall have the meaning ascribed to
      such term in Section 3.1(n).

           "Legend Removal Date" shall have the meaning ascribed to such term
      in Section 4.1(c).

           "Liens" means  a  lien, charge,  security  interest,  encumbrance,
      right of first refusal, preemptive right, or other restriction.

           "Material Adverse Effect" shall have the meaning assigned to  such
      term in Section 3.1(b) hereof.

            "Material Permits" shall have the  meaning ascribed to such  term
      in Section 3.1(l).

           "Maximum Rate" shall  have the meaning  ascribed to  such term  in
      Section 6.17.

           "Person" means an individual  or corporation, partnership,  trust,
      incorporated or  unincorporated  association,  joint  venture,  limited
      liability company, joint  stock company,  government (or  an agency  or
      subdivision thereof) or other entity of any kind.

            "Proceeding" means  an  action,  claim,  suit,  investigation  or
      proceeding (including, without limitation, an investigation or  partial
      proceeding, such as a deposition), whether commenced or threatened.

           "Public Offering Date" the date  that the Company first  registers
      the Common Stock  pursuant to  Section 12  under the  Exchange Act,  or
      merges into a  corporation (by or  through one or  a series of  related
      transactions) already  registered pursuant  to  Section 12  or  becomes
      public under the Exchange Act in any other manner.

           "Purchaser Party" shall have the meaning ascribed to such term  in
      Section 4.11.

           "Purchaser's Designee"  shall have  the meaning  ascribed to  such
      term in Section 4.14.

           "Qualifying Transaction" shall mean  (i) an equity or  debt/equity
      financing wherein the Company receives gross proceeds equal to at least
      $3,000,000 from the sale  of Common Stock  or Common Stock  Equivalents
      issued  by  the  Company  to  unaffiliated  third  parties  or  (ii)  a
      Fundamental Transaction.

           "Registrable  Securities"   means   (i)  all   Underlying   Shares
      (exercised and unexercised); (ii) any securities issued or  transferred
      to Purchaser  in connection  with or  arising  out of  any  Transaction
      Document; and (iii) any  securities issued or  issuable upon any  stock
      split, dividend or other distribution recapitalization or similar event
      with respect to the foregoing.

           "Registration Statement" means  a registration statement  covering
      the sale or resale of the Registrable Securities.

           "Required Minimum" means,  as of any  date, the maximum  aggregate
      number of shares of Common Stock then issued or potentially issuable in
      the  future  pursuant  to  the  Transaction  Documents,  including  any
      Underlying Shares issuable upon exercise  of the Warrant or  conversion
      of the Debenture, ignoring any exercise limits set forth therein.

           "Rule 144" means Rule 144  promulgated by the Commission  pursuant
      to the Securities Act, as such Rule  may be amended from time to  time,
      or any similar rule or regulation  hereafter adopted by the  Commission
      having substantially the same effect as such Rule.

           "SBA" shall have the meaning ascribed to such term in Section 5.1.

           "SBA Documents" shall have  the meaning ascribed  to such term  in
      Section 5.1(b).

           "SBIC" shall have  the meaning ascribed  to such  term in  Section
      5.1.

           "SBIC Act" shall have the meaning ascribed to such term in Section
      5.1(a).

           "Securities" means the Debenture, the Warrant, and the  Underlying
      Shares.

           "Securities Act" means the Securities Act of 1933, as amended.

           "Security Agreement" means the Security Agreement, dated as of the
      date hereof, between the Company and Purchaser, in the form of  Exhibit
      B attached hereto.

           "Security Documents"  shall mean  the Security  Agreement and  any
      other documents  and  filing  required thereunder  in  order  to  grant
      Purchaser a first priority  security interest in all  of the assets  of
      the Company, with  the exception of  the security interests  previously
      granted to Global Capital Funding Group  LP including all UCC-1  filing
      receipts.

           "Subordination  Agreement"   means  that   certain   Subordination
      Agreement of even date  herewith executed by John  Jenkins in favor  of
      the Purchaser in the form of Exhibit D attached hereto.

           "Subscription Amount" means, as to Purchaser, the aggregate amount
      to be paid  for the Debenture  and the Warrant  purchased hereunder  as
      specified in  Section  2.1 herein,  in  United States  Dollars  and  in
      immediately available funds.

            "Subsidiary" means any corporation  or limited liability  company
      of which at  least 50% of  the outstanding  securities having  ordinary
      voting powers  for  the election  of  Board of  Directors  (or  similar
      governing body) are at the time owned by the Company.  As used  herein,
      the term "Company"  shall be  deemed to  include all  of the  Company's
      Subsidiaries, if any.

           "Trading Market" means,  as applicable, the  following markets  or
      exchanges on which the Common Stock is listed or quoted for trading  on
      the date in question: the American  Stock Exchange, the New York  Stock
      Exchange, the Nasdaq National Market,  the Nasdaq SmallCap Market,  the
      OTC Bulletin Board or  the "Pink Sheets" published  by the Pink  Sheets
      LLC.

           "Transaction Documents" means this  Agreement, the Debenture,  the
      Security Agreement, the Warrant and  any other documents or  agreements
      executed in connection with the transactions contemplated hereunder.

           "Underlying Shares" means the shares of Common Stock issuable upon
      exercise of the Warrants or conversion  of the Debenture, or any  other
      shares of Common Stock acquired by Purchaser hereby.

            "Variable Rate Transaction" shall mean a transaction in which the
      Company issues or  sells (i)  any debt  or equity  securities that  are
      convertible into, exchangeable or exercisable for, or include the right
      to receive  additional shares  of Common  Stock  (A) at  a  conversion,
      exercise or exchange  rate or  other price  that is  based upon  and/or
      varies with  the trading  prices of  or quotations  for the  shares  of
      Common Stock at  any time after  the initial issuance  of such debt  or
      equity securities, (B)  with a conversion,  exercise or exchange  price
      that is subject to  being reset at some  future date after the  initial
      issuance of such  debt or  equity security  or upon  the occurrence  of
      specified or contingent  events directly or  indirectly related to  the
      business of the  Company or  the market for  the Common  Stock, or  (C)
      whereby the number of underlying shares of Common Stock to be  received
      upon exercise,  conversion, or  exchange thereof,  is variable  in  any
      respect in  which  the  number  of  such  underlying  shares  could  be
      increased.

           "Warrant" means the Common Stock Purchase Warrant, in the form  of
      Exhibit C delivered  to Purchaser  at the  Closing in  accordance  with
      Section 2.2 hereof, which Warrant shall be exercisable immediately  and
      be exercisable until  the close of  business on  the fifth  anniversary
      following the Initial Exercise Date (as  defined in the Warrant).   The
      Company and Purchaser  agree that the  value of the  Warrant as of  the
      date hereof is less than $1,000.

                                 ARTICLE II.
                              PURCHASE AND SALE

      2.1  Closing.  On the Closing Date,  upon the terms and subject to  the
 conditions set forth herein, concurrent with  the execution and delivery  of
 this Agreement  by the  parties  hereto, the  Company  agrees to  sell,  and
 Purchaser agrees to purchase the Debenture and the Warrant for an  aggregate
 amount  of  SIX  HUNDRED  THOUSAND  DOLLARS  ($600,000)  (the  "Subscription
 Amount").  On the Closing Date,  Purchaser shall deliver to the Company  via
 wire transfer  of  immediately available  funds  equal to  the  Subscription
 Amount (less all  expenses and fees  due hereunder), and  the Company  shall
 deliver to Purchaser  the Debenture, the  Warrant, and the  other items  set
 forth in  Section  2.2  issuable at  the  Closing.   On  the  Closing  Date,
 contemporaneous with the funding of the purchase made the basis hereof,  the
 Company shall promptly pay  to the order of  Purchaser a commitment fee  and
 origination fee in the  aggregate amount of 4%  of the Subscription  Amount,
 such amounts  to  be  offset from  the  Subscription  Amount  wire  transfer
 described above.  Upon satisfaction of  the conditions set forth in  Section
 2.2, the Closing  shall occur  at the offices  of Purchaser,  or such  other
 location as the parties shall mutually agree.

      2.2  Deliveries

           a) On the Closing Date, the Company  shall execute and deliver  or
              cause to be delivered to  Purchaser the  following, each  fully
              executed by the appropriate authorized  officer or officers  of
              the Company:

                    (i) this Agreement (along with all Disclosure Schedules);

                    (ii) the Debenture;

                    (iii) the Warrant;

                     (iv) the Security  Agreement  along  with  all  Security
                          Documents;

                      (v) the Subordination Agreement;

                     (vi) SBA Form 480  (Size Status  Declaration), SBA  Form
                652 (Assurance of  Compliance) and SBA  Form 1031  (Portfolio
                Finance Report), Parts A  and B, in the  forms of Exhibit  D,
                Exhibit E and Exhibit F, respectively, attached hereto;

                     (vii)   Approval  by  the  Board  of  Directors  of  the
                Company, done in conformance with all applicable law and  the
                Bylaws of  the Company,  certified by  the Secretary  of  the
                Company as  of  the  Closing  Date,  approving  or  otherwise
                ratifying the  transactions contemplated  by this  Agreement,
                and approving the form of this Agreement and the  Transaction
                Documents,   and   authorizing   execution,   delivery,   and
                performance thereof;

                     (viii)   A copy  of the Certificate of Incorporation  of
                the Company, as amended to date, certified by an official  of
                the Company's jurisdiction of formation or incorporation  and
                further certified by the Secretary of the Company not to have
                been altered or amended since certification by such official;
                a Certificate of Good  Standing dated within  30 days of  the
                date first written above from the  Secretary of State of  the
                Company's jurisdiction of formation  or incorporation; and  a
                copy of  the Bylaws  of the  Company, certified  as true  and
                correct by the Secretary of the Company;

                     (ix) Payment of the origination and commitment fees,  if
                any, referenced in Section 2.1 hereof; and

                     (x)  Such  other  instruments,  documents  or  items  as
                Purchaser may reasonably request.

                b) On  the Closing Date, Purchaser  shall deliver or cause to
           be delivered to the Company the following:

                     (i)  this Agreement duly executed by Purchaser;

                     (ii) Purchaser's Subscription Amount by wire transfer to
                the account as specified in writing by the Company; and

                    (iii) the Security Agreement, duly executed by Purchaser.

      2.3  Closing Conditions.

                a) The obligations  of the  Company hereunder  in  connection
           with the Closing  are subject  to the  following conditions  being
           met:

                     (i) the accuracy  in all material respects when made and
                on the Closing Date of the representations and warranties  of
                the Purchaser contained herein;

                     (ii) all  obligations,  covenants   and  agreements   of
                Purchaser required to be performed at or prior to the Closing
                Date shall have been performed; and

                     (iii) the delivery by Purchaser of  the items set  forth
                in Section 2.2(b) of this Agreement.

                b) The  obligations of Purchaser hereunder in connection with
           the Closing are subject to the following conditions being met:

                     (i) the accuracy in all material respects on the Closing
                Date of  the representations  and warranties  of the  Company
                contained herein;

                     (ii) all  obligations, covenants  and agreements  of the
                Company required to be performed at  or prior to the  Closing
                Date shall have been performed;

                     (iii) the delivery by the Company of the items set forth
                in Section 2.2(a) of this Agreement; and

                     (iv) there  shall have  been no  Material Adverse Effect
                with respect to the Company since the date hereof.

                                 ARTICLE III.
                       REPRESENTATIONS AND WARRANTIES

      3.1  Representations and  Warranties of  the Company.   Except  as  set
 forth under the corresponding section of the disclosure schedules  delivered
 to  Purchaser  concurrently  herewith  (the  "Disclosure  Schedules")  which
 Disclosure Schedules shall be  deemed a part hereof,  the Company makes  the
 representations and warranties set forth below to Purchaser.

           a)   Subsidiaries.  The Company does not have any Subsidiaries.

           b)   Organization and  Qualification.   The Company  is an  entity
      duly incorporated, validly existing and in good standing under the laws
      of the jurisdiction of its incorporation, with the requisite power  and
      authority to own and use its properties and assets and to carry on  its
      business as currently conducted.  The Company  is  not in  violation or
      default of any  of the  provisions of  its certificate  or articles  of
      incorporation, bylaws, or  other organizational  or charter  documents.
      The Company  is duly  qualified  to conduct  business  and is  in  good
      standing as a foreign corporation or other entity in each  jurisdiction
      in which the nature of the  business conducted or property owned by  it
      makes such qualification necessary, except where  the failure to be  so
      qualified or in good standing,  as the case may  be, could not have  or
      reasonably be expected to  result in (i) a  material adverse effect  on
      the legality, validity or enforceability of any Transaction  Documents,
      (ii) a material adverse  effect on the  results of operations,  assets,
      business, prospects or financial condition of  the Company, or (iii)  a
      material adverse  effect on  the Company's  ability to  perform in  any
      material  respect  on  a  timely   basis  its  obligations  under   any
      Transaction Documents (any of (i), (ii)  or (iii), a "Material  Adverse
      Effect") and no Proceeding has been instituted in any such jurisdiction
      revoking, limiting or curtailing or seeking to revoke, limit or curtail
      such power and authority or qualification.

           c)   Authorization; Enforcement.   The Company  has the  requisite
      corporate power  and authority  to enter  into  and to  consummate  the
      transactions contemplated  by each  of  the Transaction  Documents  and
      otherwise to carry out its obligations  thereunder.  The  execution and
      delivery of each of  the Transaction Documents by  the Company  and the
      consummation by it of the  transactions contemplated thereby have  been
      duly authorized by  all necessary action  on the part  of the  Company.
      Each Transaction Documents has been (or  upon delivery will have  been)
      duly executed by the Company and, when delivered in accordance with the
      terms hereof, will constitute the valid  and binding obligation of  the
      Company enforceable against  the Company in  accordance with its  terms
      except  (i)   as   limited  by   applicable   bankruptcy,   insolvency,
      reorganization,  moratorium  and  other  laws  of  general  application
      affecting enforcement  of  creditors'  rights  generally  and  (ii)  as
      limited by laws relating to  the availability of specific  performance,
      injunctive relief or other equitable remedies.

           d)   No Conflicts.  The execution, delivery and performance of the
      Transaction Documents  by  the  Company and  the  consummation  by  the
      Company of the other transactions contemplated thereby do not and  will
      not: (i)  conflict  with or  violate  any provision  of  the  Company's
      certificate   or   articles   of   incorporation,   bylaws   or   other
      organizational  or  charter  documents,  or  (ii)  conflict  with,   or
      constitute a default (or an event that with notice or lapse of time  or
      both would become a default) under, result in the creation of any  Lien
      upon any of the properties or assets of the Company, or give to  others
      any rights  of  termination, amendment,  acceleration  or  cancellation
      (with or without  notice, lapse  of time  or both)  of, any  agreement,
      credit facility, debt or other instrument (evidencing a Company debt or
      otherwise) or other understanding to which the Company is a party or by
      which any property  or asset of  the Company is  bound or affected,  or
      (iii) conflict  with  or  result  in a  violation  of  any  law,  rule,
      regulation, order, judgment, injunction, decree or other restriction of
      any court or  governmental authority to  which the  Company is  subject
      (including federal and  state securities laws  and regulations), or  by
      which any property or asset of the Company is bound or affected; except
      in the case of each of clauses (ii)  and (iii), such as could not  have
      or reasonably be expected to result in a Material Adverse Effect.

           e)   Filings, Consents and Approvals.  Other than as set forth  on
      Schedule 3.1(e) and except  for filing of a  Form D and/or state  "blue
      sky" securities  filings, the  Company is  not required  to obtain  any
      consent, waiver, authorization or order of, give any notice to, or make
      any filing or  registration with, any  court or  other federal,  state,
      local or other  governmental authority  or other  Person in  connection
      with the  execution, delivery  and performance  by the  Company of  the
      Transaction Documents.

           f)   Issuance  of  the  Securities.    The  Securities  are   duly
      authorized and,  when  issued  and paid  for  in  accordance  with  the
      applicable Transaction  Documents, will  be  duly and  validly  issued,
      fully paid and nonassessable,  free and clear of  all Liens imposed  by
      the Company other  than restrictions on  transfer provided  for in  the
      Transaction  Documents.    The   Underlying  Shares,  when  issued   in
      accordance with the terms of the Transaction Documents, will be validly
      issued, fully  paid and  nonassessable, free  and  clear of  all  Liens
      imposed by the Company  or any third party.   The Company has  reserved
      from its duly  authorized capital stock  a number of  shares of  Common
      Stock for issuance of a number  of Underlying Shares at least equal  to
      the Required Minimum on the date hereof.   The Company has not, and  to
      the knowledge of  the Company, no  Affiliate of the  Company has  sold,
      offered for sale or solicited offers to buy or otherwise negotiated  in
      respect of any security (as defined in Section 2 of the Securities Act)
      that would be integrated with the offer or sale of the Securities in  a
      manner that would require the registration under the Securities Act  of
      the sale of the Securities to Purchaser.

           g)   Capitalization.   The capitalization  of  the Company  is  as
      described in Schedule 3.1(g).  The  Company has not issued any  capital
      stock other than  as set forth  on Schedule 3.1(g).  No Person has  any
      right of first  refusal, preemptive right,  right of participation,  or
      any similar right  to participate in  the transactions contemplated  by
      the Transaction Documents.  Except as a result of the purchase and sale
      of the Securities  or as  set forth on  Schedule 3.1(g),  there are  no
      outstanding options, warrants, script rights to subscribe to, calls  or
      commitments of  any character  whatsoever relating  to, or  securities,
      rights or obligations convertible into  or exchangeable for, or  giving
      any Person any  right to subscribe  for or acquire,  any shares of  the
      Company's capital stock, or  contracts, commitments, understandings  or
      arrangements by  which the  Company is  or may  become bound  to  issue
      additional shares  of  its  capital  stock,  or  securities  or  rights
      convertible or  exchangeable  into shares  of  its capital  stock.  The
      issuance and sale of  the Securities will not  obligate the Company  to
      issue shares of Common Stock or  other securities to any Person  (other
      than Purchaser) and will not result in a right of any holder of Company
      securities to adjust the exercise, conversion, exchange or reset  price
      under such securities. All of the  outstanding shares of capital  stock
      of the Company are validly issued,  fully paid and nonassessable,  have
      been issued in compliance with all  federal and state securities  laws,
      and none of  such outstanding  shares was  issued in  violation of  any
      preemptive rights  or  similar  rights to  subscribe  for  or  purchase
      securities.  No further approval  or authorization of any  stockholder,
      the Board of  Directors of the  Company or others  is required for  the
      issuance and sale of the Securities.   Except as disclosed in  Schedule
      3.1(g), there  are no  stockholders  agreements, voting  agreements  or
      other similar agreements with respect to the Company's capital stock to
      which the  Company is  a party  or, to  the knowledge  of the  Company,
      between or among any of the Company's stockholders.  A complete list of
      stockholders  of  the   Company  that  are   officers,  directors   and
      individuals holding  5% or  more of  the  outstanding Common  Stock  is
      included in Schedule 3.1(g).

           h)    SEC Documents.  The Company has filed all required  reports,
      schedules, forms, statements and  other documents with the  Commission.
      (the "SEC Documents").  As of their respective dates, the SEC Documents
      complied in all material respects  with requirements of the  Securities
      Act or  the  Exchange  Act, as  the  case  may be  and  the  rules  and
      regulations of the Commission promulgated thereunder applicable to such
      SEC Documents,  and none  of the  SEC  Documents contained  any  untrue
      statement of  a material  fact  or omitted  to  state a  material  fact
      required to  be  stated therein  or  necessary  in order  to  make  the
      statements therein, in light of the circumstances under which they were
      made, not misleading, except to  the extent that information  contained
      in any SEC Document has been revised or superseded by a later filed SEC
      Document.  The financial statements of the Company included in the  SEC
      Documents comply as to  form in all  material respects with  applicable
      accounting requirements and the published rules and regulations of  the
      Commission with respect thereto, have been prepared in accordance  with
      GAAP (except, in the case of unaudited statements as permitted by  Form
      10-Q or Form 10-QSB) applied on  a consistent basis during the  periods
      involved (except as may  be indicted in the  notes thereto) and  fairly
      present the  consolidated financial  position of  the Company  and  its
      consolidated subsidiaries as of the dates thereof and the  consolidated
      results of their operation and cash flows for the period then ending in
      accordance with GAAP (subject, in the case of the unaudited statements,
      to normal year  end audit  adjustments).  Except  as set  forth in  the
      filed SEC Documents, neither the Company  nor any Subsidiaries has  any
      liabilities or obligations  of any nature  (whether accrued,  absolute,
      contingent or  otherwise)  required  by  GAAP to  be  set  forth  on  a
      consolidated  balance  sheet  of  the  Company  and  its   consolidated
      subsidiaries or  in the  notes thereto  and which  could reasonably  be
      expected to have a Material Adverse Effect.

           i)   Litigation.   Other than  as set  forth on  Schedule  3.1(i),
      there is no action, suit, inquiry,  notice of violation, proceeding  or
      investigation pending or, to the  knowledge of the Company,  threatened
      against or affecting the Company, or  any of its respective  properties
      before or  by any  court,  arbitrator, governmental  or  administrative
      agency or  regulatory  authority  (federal,  state,  county,  local  or
      foreign) (collectively,  an "Action")  which (i)  adversely affects  or
      challenges the  legality,  validity or  enforceability  of any  of  the
      Transaction Documents or the Securities or (ii) could, if there were an
      unfavorable decision, have  or reasonably be  expected to  result in  a
      Material Adverse  Effect.   Neither the  Company  nor any  director  or
      officer thereof, is or has been  the subject of any Action involving  a
      claim of violation of  or liability under  federal or state  securities
      laws or a claim of breach of fiduciary  duty.  There has not been,  and
      to the knowledge of the Company, there is not pending or  contemplated,
      any investigation  by  the  Commission involving  the  Company  or  any
      current or former director or officer of the Company.

           j)   Labor Relations.  No material labor dispute exists or, to the
      knowledge of  the Company,  is  imminent with  respect  to any  of  the
      employees of the Company which could  reasonably be expected to  result
      in a Material Adverse Effect.

           k)   Compliance.  The Company  (i) is not in  default under or  in
      violation of (and no event has occurred that has not been waived  that,
      with notice or lapse of time or both, would result in a default by  the
      Company), nor has the Company received notice of a claim that it is  in
      default under or  that it is  in violation of,  any indenture, loan  or
      credit agreement or any other agreement or instrument to which it is  a
      party or by which it or any of its properties is bound (whether or  not
      such default or violation has been waived), (ii) is not in violation of
      any order of any  court, arbitrator or governmental  body, or (iii)  is
      not or has not been in violation of any statute, rule or regulation  of
      any governmental authority, including  without limitation all  foreign,
      federal, state and local laws applicable to its business except in each
      case as could not have a Material Adverse Effect.

           l)   Regulatory Permits.  The Company possesses all  certificates,
      authorizations and permits  issued by the  appropriate federal,  state,
      local or  foreign  regulatory  authorities  necessary  to  conduct  its
      business as described in Schedule 3.1(l),  except where the failure  to
      possess such permits could not have or reasonably be expected to result
      in a Material Adverse Effect ("Material Permits"), and the Company  has
      not received any notice  of Proceedings relating  to the revocation  or
      modification of any Material Permit.

           m)   Title to Assets.  Except as set forth on Schedule 3.1(m), the
      Company has good and marketable title in (or licenses or rights to use)
      all personal property that is material to the business of the  Company,
      in each case free and clear of all Liens.  The Company does not own any
      real property. Any real property and facilities held under lease by the
      Company are held by it under  valid, subsisting and enforceable  leases
      of which the Company  is in compliance.   The Company has not  granted,
      and  no  third  party  has  obtained  in  any  manner,  other  than  as
      contemplated by the Transaction Documents, any security interest in the
      assets of the Company.  Schedule  3.1(m) sets forth and details  which,
      if any, of such assets are owned by any Subsidiary.

           n)   Intellectual Property.

                (i)  Schedule  3.1(n)  contains  a  list  of  the   Company's
      Intellectual Property.   For purposes  hereof, "Intellectual  Property"
      means any or all of the following and all rights and goodwill,  arising
      out of or associated therewith:  (A) all United States,  international,
      and foreign patents  and applications  therefor (including  provisional
      applications) and  all reissues,  reexaminations, divisions,  renewals,
      extensions,  provisionals,   continuations  and   continuations-in-part
      thereof; (B)  all inventions  (whether  patentable or  not),  invention
      disclosures,  improvements,  trade  secrets,  proprietary  information,
      know-how, technology,  technical  data  and  customer  lists,  and  all
      documentation relating to  any of the  foregoing throughout the  world;
      (C) all international,  U.S. and foreign  registered trademarks,  trade
      names, service  marks, logos,  slogans,  and designs,  applications  to
      register trademarks, trade  names, service marks,  logos, slogans,  and
      designs,  intent-to-use   applications,  or   other  registrations   or
      applications  related  to   trademarks,  service   marks,  common   law
      trademarks, trade names, service marks, logos, slogans, and designs and
      all associated goodwill associated with all  of the foregoing; (D)  all
      copyrights, copyright registrations and applications therefor, and  all
      other rights  corresponding  thereto  throughout  the  world;  (E)  all
      industrial designs  and  any registrations  and  applications  therefor
      throughout the world; (F) all URL's, domain names, trade names,  logos,
      slogans, designs, common  law trademarks and  service marks,  trademark
      and service mark registrations and applications therefor throughout the
      world; (G) all databases  and data collections  and all rights  therein
      throughout the world; (H) all moral and economic rights of authors  and
      inventors, however  denominated, throughout  the world;  (I) any  other
      intellectual  property  that   is  the  subject   of  an   application,
      certificate, filing, registration or other document issued, filed with,
      or recorded with  any federal, state,  local or  foreign government  or
      other public body; and (J) any  similar or equivalent rights to any  of
      the foregoing anywhere  in the world.   For  purposes hereof,  "Company
      Intellectual Property" means any Company Intellectual Property owned or
      licensed by the Company, and "Company Registered Intellectual Property"
      means any items of Intellectual Property described in subsections  (A),
      (C) or (D) of this paragraph.

                (ii) No Company Intellectual Property  or product or  service
      of the Company's business related to the Company Intellectual  Property
      is subject to  any Proceeding or  outstanding decree, order,  judgment,
      agreement or stipulation restricting in any manner the use, transfer or
      licensing thereof by the Company, or which may affect the validity, use
      or enforceability of such Company Intellectual Property.  Each item  of
      Company Registered Intellectual Property is valid and subsisting.   All
      necessary registration, maintenance and  renewal fees currently due  in
      connection with the Company Registered Intellectual Property have  been
      made and all  necessary documents, recordations  and certifications  in
      connection with such Company Registered Intellectual Property have been
      filed  with  the  relevant   patent,  copyright,  trademark  or   other
      authorities in the United States or foreign jurisdictions, as the  case
      may  be,  for  the  purpose  of  maintaining  such  Company  Registered
      Intellectual Property.

                (iii)   The  Company owns  and  has good and exclusive  title
      to, or has licenses (any Intellectual  Property subject to any  license
      to be  identified  as such  in  Schedule 3.1(n))  (sufficient  for  the
      conduct of the Company's business as  currently conducted) to use  each
      item of the Company's Intellectual Property free and clear of any Lien;
      and the Company  is the exclusive  owner or exclusive  licensee of  all
      trademarks and  service marks,  trade names  and domain  names used  in
      connection with  and  material  to the  operation  or  conduct  of  the
      Company's business, including the sale of any products or the provision
      of any services  by same, free  and clear of  all Liens.   The  Company
      Intellectual Property, other than future improvements, derivations, and
      additions to  be made  by the  Company  or on  behalf of  the  Company,
      constitutes all of the Intellectual  Property used or contemplated  for
      use in  connection  with the  Company's  current business  and  in  the
      performance of any contract, proposal or letter of intent in connection
      with same.

                (iv) To the extent that any Company Intellectual Property has
      been developed or created by a third party for the Company, the Company
      has a written agreement with such third party with respect thereto  and
      the Company thereby  either (A) has obtained  ownership of  and is  the
      exclusive owner of, or (b) has obtained  a license (sufficient for  the
      conduct of the  Company's business as  currently conducted)  to all  of
      such third  party's Intellectual  Property in  such work,  material  or
      invention by operation of  law or by valid  assignment, to the  fullest
      extent it  is legally  possible to  do so,  each such  agreement  being
      listed on Schedule 3.1(n).

                (v)  The  operation  of  the  Company's  business  as  it  is
      currently  conducted,  including  the  Company's  design,  development,
      marketing  and  sale  of  the  products  or  services  of  the  Company
      (including with respect  to products currently  under development)  has
      not, does not and will not infringe or misappropriate in any manner the
      Intellectual Property of any  third party or, to  the knowledge of  the
      Company, constitute  unfair competition  or trade  practices under  the
      laws of any jurisdiction.

                (vi) The Company  has  no  knowledge, and  has  not  received
      written notice or any  other overt threats from  any third party,  that
      the operation of the Company's business  as it is currently  conducted,
      or any act, product or service of the Company's business, infringes  or
      misappropriates  the  Intellectual  Property  of  any  third  party  or
      constitutes unfair competition or trade practices under the laws of any
      jurisdiction.  The Company's Intellectual  Property is not the  subject
      of  any   third   party   communications  relating   to   validity   or
      enforceability, cease and  desist orders, demand  letters, warnings  or
      prior settlement agreements.   The Company's  Intellectual Property  is
      not currently the subject of any pending or threatened re-examinations,
      oppositions, interferences, or infringement actions.

                (vii)   To  the  knowledge of the  Company, no Person has  or
      is infringing or misappropriating any Company Intellectual Property.

                (viii)   The  Company has taken  reasonable steps to  protect
      the rights of  the Company in  the confidential  information and  trade
      secrets of the  Company used  in the  Company's business  or any  trade
      secrets or confidential information of third parties used in same, and,
      without limiting  the  foregoing, the  Company  has enforced  a  policy
      requiring  each  employee  and  contractor  to  execute  a  proprietary
      information/confidentiality agreement, and except under confidentiality
      obligations or  in the  context  of the  attorney-client  relationship,
      there has not  been any  disclosure by the  Company of  any such  trade
      secrets or confidential information.

           o)   Insurance.  The Company is insured by insurers of  recognized
      financial responsibility  against such  losses and  risks and  in  such
      amounts as are  prudent and customary  in the businesses  in which  the
      Company is engaged, including directors and officers insurance at least
      equal to the aggregate principal amount of the Debenture.  To the  best
      of Company's  knowledge,  such  insurance contracts  and  policies  are
      accurate and complete.   The Company has no  reason to believe that  it
      will not be able to renew  its existing insurance coverage as and  when
      such coverage  expires  or  to obtain  similar  coverage  from  similar
      insurers as  may  be  necessary to  continue  its  business  without  a
      significant increase in cost.

           p)   Transactions With  Affiliates and  Employees.   None  of  the
      officers or  directors of  the Company  and, to  the knowledge  of  the
      Company, none of the employees of  the Company is presently a party  to
      any transaction with the Company (other than for services as employees,
      officers and  directors), including  any contract,  agreement or  other
      arrangement  providing  for  the  furnishing  of  services  to  or  by,
      providing for  rental of  real  or personal  property  to or  from,  or
      otherwise requiring payments to or from  any officer, director or  such
      employee or, to the knowledge of  the Company, any entity in which  any
      officer, director, or any such employee  has a substantial interest  or
      is an officer, director, trustee or partner, in each case in excess  of
      $60,000 other than  (i) for payment  of salary or  consulting fees  for
      services rendered, (ii) reimbursement  for expenses incurred on  behalf
      of the Company and (iii) for  other employee benefits, including  stock
      option agreements under any stock option plan of the Company.

           q)   Internal Accounting Controls.  The Company maintains a system
      of  internal  accounting  controls  sufficient  to  provide  reasonable
      assurance  that  (i)  transactions  are  executed  in  accordance  with
      management's general or specific authorizations, (ii) transactions  are
      recorded as necessary to permit preparation of financial statements  in
      conformity with GAAP and to maintain asset accountability, (iii) access
      to assets is permitted only in accordance with management's general  or
      specific authorization, and (iv) the recorded accountability for assets
      is compared  with  the  existing assets  at  reasonable  intervals  and
      appropriate action is taken with respect to any differences.

           r)   Certain Fees.  Other than as set forth on Schedule 3.1(r), no
      brokerage or finder's fees or commissions are or will be payable by the
      Company  to  any  broker,  financial  advisor  or  consultant,  finder,
      placement agent, investment banker, bank  or other Person with  respect
      to the transactions  contemplated by this  Agreement.  Purchaser  shall
      have no obligation  with respect  to any fees  or with  respect to  any
      claims made  by or  on behalf  of  other Persons  for  fees of  a  type
      contemplated in this  Section that may  be due in  connection with  the
      transactions contemplated by this Agreement.

           s)   Private  Placement.  Assuming  the  accuracy  of  Purchaser's
      representations  and   warranties  set   forth  in   Section  3.2,   no
      registration under the  Securities Act is  required for  the offer  and
      sale of  the Securities  by the  Company to  Purchaser as  contemplated
      hereby.

           t)   Investment Company.  The  Company  is  not,  and  is  not  an
      Affiliate  of,  and  immediately  after  receipt  of  payment  for  the
      Securities, will not be or be an Affiliate of, an "investment  company"
      within the meaning of the Investment  Company Act of 1940, as  amended.
      The Company shall conduct its business in a manner so that it will  not
      become subject to the Investment Company Act.

           u)   Registration Rights.   Other than  as set  forth on  Schedule
      3.1(u), no Person  has any  right to cause  the Company  to effect  the
      registration under the Securities Act of any securities of the Company.

           v)   Application of  Takeover Protections.   The  Company and  its
      Board of Directors have taken all necessary action, if any, in order to
      render   inapplicable   any   control   share   acquisition,   business
      combination, poison  pill (including  any distribution  under a  rights
      agreement) or other similar anti-takeover provision under the Company's
      Certificate of Incorporation (or similar charter documents) or the laws
      of its state  of incorporation that  is or could  become applicable  to
      Purchaser as a  result of Purchaser  and the  Company fulfilling  their
      obligations or exercising their rights under the Transaction Documents,
      including without limitation as a result  of the Company's issuance  of
      the Securities and the Purchaser's ownership of the Securities.

           w)   Disclosure.  The  Company confirms  that neither  it nor  any
      other Person acting on its behalf has provided Purchaser or its  agents
      or counsel with  any information that  constitutes or might  constitute
      material, nonpublic information except  for such information that  will
      be publicly  disclosed in  documents filed  with the  Commission.   The
      Company understands  and  confirms  that Purchaser  will  rely  on  the
      foregoing  representations  and  covenants  in  effecting  transactions
      in  securities  of  the  Company.  All  written statements provided  to
      Purchaser regarding  the Company,  its  business and  the  transactions
      contemplated  hereby,  including  the  Disclosure  Schedules  to   this
      Agreement, furnished by or on behalf of the Company with respect to the
      representations and warranties  made herein are  true and correct  with
      respect to such representations and warranties  and do not contain  any
      untrue statement of a material fact or omit to state any material  fact
      necessary in order to make the statements made therein, in light of the
      circumstances under which they were made, not misleading.

           x)   No Integrated Offering. Assuming the accuracy of  Purchaser's
      representations and warranties  set forth in  Section 3.2, neither  the
      Company, nor any  of its Affiliates,  nor any Person  acting on its  or
      their behalf has, directly or indirectly,  made any offers or sales  of
      any security  or  solicited  any offers  to  buy  any  security,  under
      circumstances that would cause  this offering of  the Securities to  be
      integrated with  prior offerings  by the  Company for  purposes of  the
      Securities Act or any applicable shareholder approval provisions.

           y)   Solvency.    Following  the   closing  of  the   Telenational
      Communications, Inc transaction,  based on the  financial condition  of
      the Company as of the Closing  Date after giving effect to the  receipt
      by the  Company  of  the  proceeds from  the  sale  of  the  Securities
      hereunder, and anticipated  future financing amounts  used to fund  the
      Telenational Communications, Inc and provide additional working capital
      into the company, (i) the Company's  fair saleable value of its  assets
      exceeds the amount that will be required to be paid on or in respect of
      the Company's  existing  financing  instruments, and  debts  and  other
      liabilities (including known  contingent liabilities)  as they  mature,
      with the exception  of those liabilities  that the company  is able  to
      negotiate payment terms, or does not  reasonably expect to pay in  full
      within the next 12 months, for those debts with maturity dates of  less
      than 1 year; (ii) the Company's  assets do not constitute  unreasonably
      small capital to carry on its  business for the current fiscal year  as
      now conducted and  as proposed to  be conducted  including its  capital
      needs taking into  account the particular  capital requirements of  the
      business conducted by the  Company, and projected capital  requirements
      and capital availability thereof; and (iii)  the expected cash flow  of
      the Company,  together  with  the future  proceeds  the  Company  would
      receive in  a  future  funding transaction,  would  provide  sufficient
      working capital for the  Company to continue  to operate its  business,
      and pay all amounts on or in respect of its debt when such amounts  are
      required to be paid, for debts with maturity dates of 1 year or less as
      of  the  closing  date.  The  Company does not  intend  to incur  debts
      beyond its  ability to  pay  such debts  as  they mature  (taking  into
      account the timing and amounts of cash  to be payable on or in  respect
      of its debt).  It  is understood that the  Company intends to pursue  a
      plan to provide positive  cash flow from  operations shortly after  the
      Telenational Communications, Inc. transaction, and to raise  additional
      financing of  not  less  than  $5.0  million,  sufficient  to  purchase
      Telenational, and to  pay down  its debts  as described  above, and  to
      provide additional working capital.  It  is understood by both  parties
      that the  Company  does  not currently  have  in  place  the  necessary
      financing to  close the  acquisition, and  to meet  the obligations  as
      outlined above.

           z)   Tax  Status.     Except   for   matters   that   would   not,
      individually or in  the aggregate, have  or reasonably  be expected  to
      result in  a  Material  Adverse  Effect,  the  Company  has  filed  all
      necessary federal, state and foreign  income and franchise tax  returns
      and has paid or accrued all taxes shown as due thereon, and the Company
      has no  knowledge  of a  tax  deficiency  which has  been  asserted  or
      threatened against the Company.

           aa)  No General Solicitation. Neither  the Company nor any  person
      acting on  behalf  of  the Company  has  offered  or sold  any  of  the
      Securities by any form of general solicitation or general  advertising.
      The Company has offered the Securities  for sale only to Purchaser  and
      certain other "accredited  investors" within  the meaning  of Rule  501
      under the Securities Act.

           bb)  Foreign Corrupt Practices.  Neither  the Company, nor to  the
      knowledge of the Company, any agent or other person acting on behalf of
      the Company, has (i) directly or indirectly, used any corrupt funds for
      unlawful contributions, gifts, entertainment or other unlawful expenses
      related to  foreign  or  domestic political  activity,  (ii)  made  any
      unlawful  payment  to  foreign  or  domestic  government  officials  or
      employees or to any foreign or domestic political parties or  campaigns
      from corporate funds, (iii) failed  to disclose fully any  contribution
      made by the  Company (or made  by any person  acting on  its behalf  of
      which the Company  is aware) which  is  in  violation of  law, or  (iv)
      violated in any material respect any  provision of the Foreign  Corrupt
      Practices Act of 1977, as amended

           cc)  Indebtedness.  Other than as  set forth on Schedule  3.1(cc),
      as of the Closing Date, the Company has no indebtedness.

           dd)  No Disagreements with Accountants and Lawyers.  There are  no
      disagreements of any kind presently existing, or reasonably anticipated
      by the Company to arise, between  the accountants and lawyers  formerly
      or presently employed by  the Company and the  Company is current  with
      respect to any fees owed to its accountants and lawyers.

           ee)  Acknowledgment Regarding Purchaser's Purchase of  Securities.
      The Company acknowledges and agrees that Purchaser is acting solely  in
      the  capacity  of  an  arm's  length  purchaser  with  respect  to  the
      Transaction Documents and the transactions contemplated hereby as  they
      relate to the Company.  The Company further acknowledges that Purchaser
      is not acting as a financial advisor or fiduciary of the Company (or in
      any  similar  capacity)  with  respect   to  this  Agreement  and   the
      transactions contemplated hereby and any  advice given by Purchaser  or
      any of  its respective  representatives or  agents  to the  Company  in
      connection with this Agreement and the transactions contemplated hereby
      is merely incidental to the Purchaser's purchase of the Securities.

           ff)  Material  Liabilities.     The   sole  outstanding   material
      liabilities of the Company are set forth on Schedule 3.1(ff) .

           gg)  Material Agreements.  Except  for those agreements set  forth
      on Schedule 3.1(gg) hereof, there are  no other material agreements  to
      which the Company is a party.

           hh)  Board of Directors.  The Board of Directors of Company
      consists of those persons set forth on Schedule 3.1(hh).

      3.2  Representations  and  Warranties of Purchaser.   Purchaser  hereby
 represents and warrants as of the date hereof and as of the Closing Date  to
 the Company as follows:

           (a) Organization;   Authority.    Purchaser   is  an  entity  duly
      organized, validly existing and in good standing under the laws of  the
      jurisdiction  of  its  organization  with  full  right,  corporate   or
      partnership power and  authority to enter  into and  to consummate  the
      transactions contemplated by the Transaction Documents and otherwise to
      carry out  its  obligations  thereunder. The  execution,  delivery  and
      performance by  Purchaser  of  the transactions  contemplated  by  this
      Agreement have  been  duly authorized  by  all necessary  corporate  or
      similar action  on the  part of  Purchaser.   Each of  the  Transaction
      Documents to which it is a  party has been duly executed by  Purchaser,
      and when delivered by  Purchaser in accordance  with the terms  hereof,
      will constitute the valid and legally binding obligation of  Purchaser,
      enforceable against  it in  accordance with  its terms,  except (i)  as
      limited by  general  equitable principles  and  applicable  bankruptcy,
      insolvency,  reorganization,  moratorium  and  other  laws  of  general
      application affecting enforcement of creditors' rights generally,  (ii)
      as  limited  by   laws  relating  to   the  availability  of   specific
      performance, injunctive relief  or other equitable  remedies and  (iii)
      insofar as indemnification and  contribution provisions may be  limited
      by applicable law.

           (b) Purchaser  Representation.    Purchaser  understands  that the
      Securities are "restricted securities" and have not been registered  or
      qualified, as  the  case  may  be, under  the  Securities  Act  or  any
      applicable state securities law by reason of a specific exemption  from
      the registration or qualification provisions  of the Securities Act  or
      any applicable state securities laws, the availability of which depends
      upon, among other things, the bona fide nature of the investment intent
      and the accuracy  of Purchaser's representations  as expressed  herein.
      Purchaser represents that it is acquiring the Securities for investment
      as principal  for  its own  account  and not  with  a view  to  or  for
      distribution or resale of such Securities  or any part thereof, has  no
      present intention of  distributing any of  such Securities  and has  no
      arrangement or  understanding  with  any other  persons  regarding  the
      distribution of such Securities  (this representation and warranty  not
      limiting Purchaser's  right  to  sell  the  Securities  pursuant  to  a
      Registration Statement  or  otherwise  in  compliance  with  applicable
      federal and  state  securities  laws).    Purchaser  is  acquiring  the
      Securities hereunder in the ordinary course of its business.  Purchaser
      does not have any agreement  or understanding, directly or  indirectly,
      with any Person to distribute any of the Securities.

           (c) Purchaser  Status.   At  the  time Purchaser  was  offered the
      Securities, it was, and at the date hereof  it is, and on each date  on
      which it exercises any Warrants it  will be either: (i) an  "accredited
      investor" as  defined  in Rule  501(a)(1),  (a)(2), (a)(3),  (a)(7)  or
      (a)(8)) of Regulation D promulgated under the Securities Act or (ii)  a
      "qualified institutional buyer"  as defined in  Rule 144A(a) under  the
      Securities Act.

           (d) Experience of  Purchaser.  Purchaser, either alone or together
      with  its  representatives,  has  such  knowledge,  sophistication  and
      experience in business  and financial matters  so as to  be capable  of
      evaluating the merits and  risks of the  prospective investment in  the
      Securities,  and  has  so  evaluated  the  merits  and  risks  of  such
      investment.   Purchaser  understands  that   the  acquisition  of   the
      Securities hereunder is highly a speculative investment which  involves
      a high degree of loss of Purchaser's investment therein.  Purchaser  is
      able to bear the economic risk of an investment in the Securities  and,
      at the  present  time,  is able  to  afford  a complete  loss  of  such
      investment.

           (e) Certain  Fees.   Purchaser has  not entered  into an agreement
      whereby brokerage  or  finder's fees  or  commissions are  or  will  be
      payable by the Company to any broker, financial advisor or  consultant,
      finder, placement agent, investment banker,  bank or other Person  with
      respect to the transactions contemplated by this Agreement.

           The Company acknowledges and agrees  that Purchaser does not  make
      or has not made any representations  or warranties with respect to  the
      transactions contemplated  hereby  other than  those  specifically  set
      forth in this Section 3.2.

                                 ARTICLE IV.
                      OTHER AGREEMENTS OF THE PARTIES

      4.1  Transfer Restrictions.

           (a) The  Securities may  only  be disposed  of in  compliance with
      state and federal securities laws.  In connection with any transfer  of
      Securities other than pursuant  to an effective registration  statement
      or Rule 144,  to the  Company or  to an  Affiliate of  Purchaser or  in
      connection with a pledge as contemplated in Section 4.1(b), the Company
      may require the transferor thereof to provide to the Company an opinion
      of counsel selected by the transferor and reasonably acceptable to  the
      Company, the form and  substance of which  opinion shall be  reasonably
      satisfactory to the Company, to the effect that such transfer does  not
      require  registration  of   such  transferred   Securities  under   the
      Securities Act or any applicable state securities laws.  As a condition
      of transfer, any such transferee shall agree in writing to be bound  by
      the terms of  this Agreement  and shall  have the  rights of  Purchaser
      under this Agreement.

           (b) Purchaser agrees  to the imprinting, so long as is required by
      this  Section  4.1(b),  of  a  legend  on  any  of  the  Securities  in
      substantially the following form:

      NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES
      ARE EXERCISABLE HAVE BEEN REGISTERED  WITH THE SECURITIES AND  EXCHANGE
      COMMISSION OR THE SECURITIES COMMISSION OF  ANY STATE IN RELIANCE  UPON
      AN EXEMPTION FROM  REGISTRATION UNDER THE  SECURITIES ACT  OF 1933,  AS
      AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
      SOLD EXCEPT PURSUANT TO AN  EFFECTIVE REGISTRATION STATEMENT UNDER  THE
      SECURITIES ACT OR  PURSUANT TO  AN AVAILABLE  EXEMPTION FROM,  OR IN  A
      TRANSACTION NOT  SUBJECT  TO,  THE  REGISTRATION  REQUIREMENTS  OF  THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES  LAWS
      AS EVIDENCED BY A  LEGAL OPINION OF COUNSEL  TO THE TRANSFEROR TO  SUCH
      EFFECT, THE SUBSTANCE OF  WHICH SHALL BE  REASONABLY ACCEPTABLE TO  THE
      COMPANY.

           The Company acknowledges and agrees  that Purchaser may from  time
      to time  pledge  pursuant  to  a bona  fide  margin  agreement  with  a
      registered broker-dealer or grant a security interest in some or all of
      the Securities  to  a  financial institution  that  is  an  "accredited
      investor" as defined in  Rule 501(a) under the  Securities Act and  who
      agrees to be bound by the provisions of this Agreement and, if required
      under the terms of such arrangement, Purchaser may transfer pledged  or
      secured Securities to the pledgees or  secured parties.  Such a  pledge
      or transfer would  not be  subject to approval  of the  Company and  no
      legal opinion of legal counsel of the pledgee, secured party or pledgor
      shall be required in connection therewith.  Further, no notice shall be
      required of such pledge.  At the Purchaser's expense, the Company  will
      execute and  deliver  such reasonable  documentation  as a  pledgee  or
      secured party of Securities may reasonably request in connection with a
      pledge or transfer of the Securities.

           (c) Certificates  evidencing Underlying  Shares shall  not contain
      any legend (including the legend set  forth in Section 4.1(b)  hereof):
      (i)  while  a  Registration  Statement  covering  the  resale  of  such
      Underlying Shares is effective under the Securities Act, (ii) following
      any sale of such Underlying Shares pursuant to Rule 144, (iii) if  such
      Underlying Shares are eligible for sale  under Rule 144(k), or (iv)  if
      such legend  is  not  required under  applicable  requirements  of  the
      Securities Act (including  judicial interpretations and  pronouncements
      issued  by  the  staff  of  the  Commission);  provided,  however,   in
      connection with the issuance of the Underlying Shares, Purchaser hereby
      agrees to adhere to and abide  by all prospectus delivery  requirements
      under the Securities Act  and rules and  regulations of the  Commission
      and all applicable state "blue sky" securities laws. The Company  shall
      cause its counsel to  issue a legal opinion  to the Company's  transfer
      agent promptly after the  Effective Date if  required by the  Company's
      transfer agent to effect the removal  of the legend hereunder.  If  all
      or any portion of  a Warrant is exercised  at a time  when there is  an
      effective Registration Statement to cover the resale of the  Underlying
      Shares, or if  such shares may  be sold under  Rule 144(k)  or if  such
      legend is not otherwise required  under applicable requirements of  the
      Securities Act (including judicial  interpretations thereof) then  such
      shares shall be issued  free of all legends.   The Company agrees  that
      following the  Effective Date  or at  such time  as such  legend is  no
      longer required under this Section 4.1(c),  it will, no later than  two
      Business Days following the delivery by Purchaser to the Company or the
      Company's transfer  agent  of  a  certificate  representing  Underlying
      Shares, as applicable,  issued with a  restrictive legend (such  second
      Business Day,  the  "Legend Removal  Date"),  deliver or  cause  to  be
      delivered to Purchaser a certificate  representing such shares that  is
      free from all restrictive and other legends.  The Company may not  make
      any notation on its records or give instructions to any transfer  agent
      of the Company that enlarge the  restrictions on transfer set forth  in
      this Section.

           (d) In  addition  to  Purchaser's  other  available  remedies, the
      Company shall pay to Purchaser, in cash, as partial liquidated  damages
      and not as a  penalty, the greater  of (i) $500  for each Business  Day
      after the  Legend Removal  Date, the  Warrant Share  Delivery Date,  or
      other such  date the  Underlying  Shares are  to  be delivered  to  the
      Purchaser, as the case may be, until such certificate is delivered with
      an appropriate legend or without a restrictive legend, as the case  may
      be; and  (ii) the  difference in  the Market  Value of  the  Underlying
      Shares (based on the closing bid price of the Common Stock on the  then
      principal Trading Market on the date  such Securities are submitted  to
      the Company's transfer agent)  on the delivery date  and the date  such
      shares are actually  received by the  Holder in such  form as  required
      herein and in the  Transaction Documents.   Nothing herein shall  limit
      Purchaser's right to pursue actual damages for the Company's failure to
      deliver certificates  representing any  Securities as  required by  the
      Transaction Documents, and Purchaser shall have the right to pursue all
      remedies available  to  it  at law  or  in  equity  including,  without
      limitation, a decree of specific performance and/or injunctive relief.

           (e) Purchaser  agrees that the  removal of  the restrictive legend
      from certificates representing Securities as set forth in this  Section
      4.1 is predicated upon the Company's reliance that Purchaser will  sell
      any Securities pursuant to either the registration requirements of  the
      Securities  Act,   including   any   applicable   prospectus   delivery
      requirements, or an exemption therefrom.

      4.2  Acknowledgment of  Dilution.   The Company  acknowledges that  the
 issuance of the Underlying Shares may result in dilution of the  outstanding
 shares of  Common Stock,  which dilution  may be  substantial under  certain
 market conditions.   The Company further  acknowledges that its  obligations
 under the Transaction Documents, including without limitation its obligation
 to issue the Underlying  Shares pursuant to  the Transaction Documents,  are
 unconditional and  absolute  and  not  subject to  any  right  of  set  off,
 counterclaim, delay  or reduction,  regardless of  the  effect of  any  such
 dilution or any claim the Company may have against Purchaser and  regardless
 of the dilutive effect that such issuance  may have on the ownership of  the
 other stockholders of the Company.

      4.3  Furnishing of Information.  As  long as Purchaser owns  restricted
 Securities, the Company covenants  to timely file  (or obtain extensions  in
 respect thereof and  file within the  applicable grace  period) all  reports
 required to be filed by  the Company after the  date hereof pursuant to  the
 Exchange Act.  As long as Purchaser  owns Securities, if the Company is  not
 required to file reports pursuant to  the Exchange Act, it will prepare  and
 furnish to Purchaser  and make publicly  available in  accordance with  Rule
 144(c) such information as is required for Purchaser to sell the  Underlying
 Shares under Rule 144.  The Company further covenants that it will take such
 further action as any  holder of Securities may  reasonably request, all  to
 the extent required from  time to time  to enable such  Person to sell  such
 Underlying Shares without registration under  the Securities Act within  the
 limitation of the exemptions provided by Rule 144.

      4.4  Integration.   The  Company shall  not  sell, offer  for  sale  or
 solicit offers to buy or otherwise negotiate in respect of any security  (as
 defined in Section 2  of the Securities Act)  that would be integrated  with
 the offer or  sale of  the Securities  in a  manner that  would require  the
 registration under  the Securities  Act of  the sale  of the  Securities  to
 Purchaser or, if then listed  or quoted on a  Trading Market, that would  be
 integrated with the  offer or  sale of the  Securities for  purposes of  the
 rules and regulations of any Trading Market.

      4.5  Exercise  Procedures.    The  form  of  Notice  of  Exercise   and
 Conversion Notice included in the  Warrant and Debenture, respectively,  set
 forth the  totality of  the procedures  required of  Purchaser in  order  to
 exercise the Warrant or convert the Debenture.  No additional legal  opinion
 or other  information or  instructions shall  be  required of  Purchaser  to
 exercise its Warrants  or convert the  Debenture.  The  Company shall  honor
 exercises of the Warrant and conversions of the Debenture and shall  deliver
 Underlying Shares in accordance with the terms, conditions and time  periods
 set forth in such Transaction Documents.

      4.6     Intentionally Omitted.

      4.7  Shareholders Rights Plan.   No claim will be  made or enforced  by
 the Company  or, to  the knowledge  of the  Company, any  other Person  that
 Purchaser is an  "Acquiring Person" under  any shareholders  rights plan  or
 similar plan or arrangement in effect  or hereafter adopted by the  Company,
 or that Purchaser could be deemed to trigger the provisions of any such plan
 or arrangement,  by virtue  of receiving  Securities under  the  Transaction
 Documents or under any other agreement between the Company and Purchaser.

      4.8  Non-Public Information.    If  at any  time  the  Company  becomes
 subject to  the  reporting  provisions of  the  Exchange  Act,  the  Company
 covenants and agrees  that neither  it nor any  other Person  acting on  its
 behalf will provide Purchaser or its agents or counsel with any  information
 that the  Company  believes  constitutes  material  non-public  information,
 unless prior  thereto  Purchaser shall  have  executed a  written  agreement
 regarding the  confidentiality and  use of  such information.   The  Company
 understands and confirms that  Purchaser shall be  relying on the  foregoing
 representations in effecting transactions in securities of the Company.

      4.9  Use of Proceeds.  Except as set forth in Schedule 4.9, the Company
 shall use the  net proceeds from  the sale of  the Securities hereunder  for
 working capital purposes and not for the satisfaction of any portion of  the
 Company's debt (other than payment of trade payables in the ordinary  course
 of the Company's business and prior  practices), to redeem any Common  Stock
 or Common  Stock  Equivalents  or  to  settle  any  outstanding  litigation.
 Schedule 4.9 shall detail  the Company's expected  use of proceeds  received
 from the sale of the Securities hereunder.

      4.10   Reimbursement.  If  Purchaser  becomes involved  in any capacity
 in any Proceeding  by or  against any  Person who  is a  stockholder of  the
 Company (except as a result of  sales, pledges, margin sales or any  similar
 transaction(s) by Purchaser to or with any current stockholder), solely as a
 result of Purchaser's  acquisition of the  Securities under this  Agreement,
 and Purchaser is  successful in the  Proceeding the  Company will  reimburse
 Purchaser for its reasonable legal and other expenses (including the cost of
 any investigation preparation and  travel in connection therewith)  incurred
 in connection therewith, as such expenses  are incurred.  The  reimbursement
 obligations of the Company under this paragraph shall be in addition to  any
 liability which the Company may otherwise  have, shall extend upon the  same
 terms and conditions to any Affiliates  of Purchaser who are actually  named
 in such  Action,  Proceeding  or  investigation,  and  partners,  directors,
 agents, employees and controlling persons (if  any), as the case may be,  of
 Purchaser and any such Affiliate, and shall be binding upon and inure to the
 benefit of any  successors, assigns, heirs  and personal representatives  of
 the Company, Purchaser  and any  such Affiliate and  any such  Person.   The
 Company  also  agrees  that  neither  Purchaser  nor  any  such  Affiliates,
 partners, directors, agents, employees or controlling persons shall have any
 liability to the Company or any Person  asserting claims on behalf of or  in
 right of the Company  solely as a result  of acquiring the Securities  under
 this Agreement.

      4.11   Indemnification of Purchaser.   Subject  to  the  provisions  of
 this Section 4.11, the Company will indemnify and hold the Purchaser and its
 directors, officers, managers, shareholders, partners, employees and  agents
 (each, a "Purchaser Party") harmless from  any and all losses,  liabilities,
 obligations, claims, contingencies, damages,  costs and expenses,  including
 all judgments,  amounts  paid in  settlements,  court costs  and  reasonable
 attorneys' fees and costs of investigation that any such Purchaser Party may
 suffer or incur as a result of or relating to  (a) any breach of any of  the
 representations, warranties, covenants or agreements made by the Company  in
 this Agreement  or in  the other  Transaction Documents  or (b)  any  action
 instituted against Purchaser, or any of  its Affiliates, by any  stockholder
 of the Company who is not an Affiliate of Purchaser, with respect to any  of
 the transactions  contemplated by  the  Transaction Documents  (unless  such
 action is based upon a breach  of Purchaser's representation, warranties  or
 covenants  under   the   Transaction   Documents  or   any   agreements   or
 understandings  Purchaser  may  have  with  any  such  stockholder  or   any
 violations by Purchaser of state or  federal securities laws or any  conduct
 by Purchaser which constitutes  fraud, gross negligence, willful  misconduct
 or malfeasance).  If any action shall be brought against any Purchaser Party
 in respect of which indemnity may be sought pursuant to this Agreement, such
 Purchaser Party  shall  promptly notify  the  Company in  writing,  and  the
 Company shall have the right to  assume the defense thereof with counsel  of
 its own  choosing.   Any Purchaser  Party  shall have  the right  to  employ
 separate counsel in any such action and participate in the defense  thereof,
 but the fees and expenses of  such counsel shall be  at the expense of  such
 Purchaser Party except  to the extent  that (i) the  employment thereof  has
 been specifically authorized by the Company in writing, (ii) the Company has
 failed after  a reasonable  period of  time to  assume such  defense and  to
 employ counsel or (iii) in such  action there is, in the reasonable  opinion
 of such separate counsel, a material conflict on any material issue  between
 the position of the Company and the  position of such Purchaser Party.   The
 Company will not be liable to  any Purchaser Party under this Agreement  (i)
 for any settlement by a Purchaser Party effected without the Company's prior
 written consent, which  shall not be  unreasonably withheld  or delayed;  or
 (ii) to the extent,  but only to the  extent that a  loss, claim, damage  or
 liability is attributable  to any  Purchaser Party's  breach of  any of  the
 representations, warranties, covenants  or agreements made  by Purchaser  in
 this Agreement or in the other Transaction Documents.

      4.12 Reservation and Listing of Securities.

           (a)  The Company shall maintain a reserve from its duly authorized
      shares of  Common  Stock  for  issuance  pursuant  to  the  Transaction
      Documents in such amount as may be required to fulfill its  obligations
      in full under the Transaction Documents.

           (b)  If, on any date, the number  of authorized but unissued  (and
      otherwise unreserved) shares of Common Stock is less than the  Required
      Minimum on such date, then the Board of Directors of the Company  shall
      use commercially reasonable efforts to amend the Company's  certificate
      or articles of incorporation to increase  the number of authorized  but
      unissued shares of  Common Stock to  at least the  Required Minimum  at
      such time, as soon as possible and in any event not later than the 75th
      day after such date; and

           (c)  The Company shall, if  then applicable: (i)  in the time  and
      manner required by the Trading Market or if the Common Stock is  listed
      on another Trading Market, promptly prepare and file with such  Trading
      Market an additional  shares listing application  covering a number  of
      shares of Common Stock  at least equal to  the Required Minimum on  the
      date of such application, (ii) take  all steps necessary to cause  such
      shares of Common Stock to be approved for listing on the Trading Market
      as soon as possible thereafter, (iii) provide to Purchaser evidence  of
      such listing, and (iv) maintain the listing of such Common Stock on any
      date at  least equal  to the  Required  Minimum on  such date  on  such
      Trading Market.

      4.14 Appointment of Board Member.  At  all such times from the  Closing
 until such time as  the Debenture remains outstanding  in whole or in  part,
 the Company  shall have  the right  to  appoint a  member  to the  Board  of
 Directors  to  (the  "Purchaser's Designee").   If  within 30  days  of  the
 Company's election  to appoint  it's Purchaser's  Designee to  the Board  of
 Directors of the Company, such appointment  of the Purchaser's Designee  has
 not occurred other than by reason of legal prohibitions or restrictions, the
 number of  Warrant  Shares purchasable  pursuant  to the  Warrant  shall  be
 increased by 10,000 per  month (including such initial  30 day period)  such
 appointment has not occurred.  The  Company must provide and keep in  effect
 officers' and directors'  liability insurance for  the Purchaser's  Designee
 which liability  insurance  shall be  satisfactory  to Purchaser,  and  such
 Purchaser's Designee shall be entitled  to receive reasonable and  customary
 director's fees and such  other compensation as is  ordinarily given to  the
 Company's directors  as well  as  the reimbursement  of  all out  of  pocket
 expenses.

      4.15   Registration Rights.

             (a) Piggyback Registrations.

                A.   At any  time  after the  Closing  Date, if  the  Company
      proposes to register any Common Stock for sale solely for cash,  either
      for its own account or for the account of a stockholder or stockholders
      (a "Company  Registration"),  then  the Company  shall  give  Purchaser
      written notice of its intention to do so and of the intended method  of
      sale (the "Registration Notice")  not fewer than 30  days prior to  the
      anticipated  filing date of the Registration  Statement effecting  such
      Company  Registration.   Purchaser   may  request  inclusion   of   any
      Registrable Securities in  such Company Registration  by delivering  to
      the Company, within 20 days after receipt of the Registration Notice, a
      written notice (the "Piggyback Notice") stating the number of shares of
      Registrable Securities proposed to be included and that such shares are
      to be  included  in  any  underwriting  only  on  the  same  terms  and
      conditions as the shares of Common  Stock otherwise being sold  through
      underwriters under such  Company Registration.   The Company shall  use
      its best efforts to cause all  Registrable Securities specified in  the
      Piggyback Notice to  be included in  the Company  Registration and  any
      related offering, all  to the extent  requisite to permit  the sale  by
      Purchaser of such Registrable Securities in accordance with the  method
      of sale applicable to the other shares of Common Stock included in  the
      Company Registration.   If the Company  fails to  file the  Registrable
      Securities in  such  Registration Statement,  then,  at the  option  of
      Purchaser, for each full calendar month that the Registrable Securities
      are not fully registered, Company shall issue to Purchaser 0.1% of  its
      Common Stock then outstanding computed on a Fully Diluted Basis per day
      until the shares are registered.

                B.   Limitations on Piggyback  Registrations.  The  Company's
      obligation  to   include   Registrable  Securities   in   the   Company
      Registration pursuant  to  Section  4.15(a) shall  be  subject  to  the
      following limitations:

                     (i)  The Company shall not  be obligated to include  any
      Registrable Securities in a registration statement (I) filed on Form S-
      4 or Form  S-8 or  such other similar  successor forms  then in  effect
      under the  Securities  Act,  (II) pursuant  to  which  the  Company  is
      offering to exchange its own securities, or (III) relating to  dividend
      reinvestment plans.

                     (ii) If the  managing  underwriter(s),  if  any,  of  an
      offering  related  to  the  Company  Registration  determines  in   its
      reasonable judgment that marketing factors require a limitation of  the
      number of shares of Common Stock that can be included in such offering,
      the managing  underwriter(s)  may  exclude the  appropriate  number  of
      shares of  Common  Stock  held by  the  stockholders  of  the  Company,
      including  Purchaser,   from  such   registration.   If  the   managing
      underwriter(s)  determine(s)  to   exclude  from   such  offering   any
      Registrable Securities that Purchaser desires to include or any  shares
      of  Common  Stock  that  other  Company  stockholders  with  applicable
      registration rights desire to include, Purchaser and such other Company
      stockholders (except for  such Person or  Persons, if  any, upon  whose
      demand such Company Registration is being made) shall share pro rata in
      the  portion  of  such  offering  available  to  them  (the  "Available
      Portion"), with  Purchaser  and  each such  other  Company  stockholder
      entitled to include in such Company Registration and related offering a
      number of  shares of  Common Stock  equal  to the  product of  (I)  the
      Available Portion and (II)  a fraction, the numerator  of which is  the
      total number  of  Registrable  Securities which  Purchaser  desires  to
      include in such Company Registration (in the case of Purchaser) or  the
      total number  of  shares  of Common  Stock  which  such  other  Company
      stockholder desires to  include in  such Company  Registration (in  the
      case of each  such other Company  stockholder) and  the denominator  of
      which is (x) the  total of the number  of Registrable Securities  which
      Purchaser desires to include in such Company Registration plus (y)  the
      total number  of  shares  of  Common  Stock  that  such  other  Company
      stockholders desire to include in such Company Registration.

                (b)  Demand Registrations.

                     (i)  Requests for Registration.  The Purchasers (or  any
      lawful  transferee  thereof)  may,  in  accordance  herewith,   request
      registration under the  Securities Act  of all  or any  portion of  its
      Registrable  Securities   on  Form   S-1  or   any  similar   long-form
      registration (a  "Long-Form  Registrations"), or  on  Form S-2  or  S-3
      (including pursuant  to  Rule 415  under  the Securities  Act)  or  any
      similar short-form registration (each, a "Short-Form Registration"), if
      available. All registrations requested pursuant to this Section 4.15(b)
      are referred to herein  as "Demand Registrations."  Each request for  a
      Demand Registration shall specify the approximate number of Registrable
      Securities requested to  be registered  and the  anticipated per  share
      price range  for  such  offering. Upon  the  Purchaser's  request,  the
      Company will include the  offer and sale  of Registrable Securities  in
      such registration statement.  In the event  that the  Company fails  to
      include the Registrable Securities in  a statement as required  herein,
      the Purchaser shall give notice demanding a registration and within  75
      days after the notice the Company shall prepare and file a registration
      statement with the SEC with respect to such Registrable Securities.  If
      the Company fails to file within said time period, then, at the  option
      of such Purchaser, for each full  calendar month following such 75  day
      period that the  Registrable Securities are  not fully registered,  the
      Company shall issue  0.1 % of  its outstanding shares  of Common  Stock
      computed on  a  fully  diluted  basis per  day  until  the  shares  are
      registered.

                     (ii) Long-Form   Registrations.   Purchaser   shall   be
      entitled to request  one Long-Form Registration.  A registration  shall
      not count as one of the permitted Long-Form Registrations until it  has
      become effective. If Purchaser is unable to register and sell at  least
      90% of the Registrable  Securities it has requested  to be included  in
      the first Long-Form Registration requested by it, it shall be  entitled
      to a second Long-Form Registration, provided that such second Long-Form
      Registration  may  not   be  requested   within  six   months  of   the
      effectiveness of the  most recent Long-Form  Registration requested  by
      it.

                     (iii)     Short-Form Registrations. In  addition to  the
      Long-Form Registrations, each Purchaser shall be entitled to request an
      unlimited  number  of  Short-Form  Registrations;  provided  that   the
      aggregate gross  proceeds to  be received  by the  Purchasers or  other
      securities exercising their "piggyback"  rights granted by the  Company
      either  herein   or  elsewhere   in  any   such  requested   Short-Form
      Registration must exceed $500,000. Demand Registrations shall be Short-
      Form Registrations  whenever  the  Company  is  permitted  to  use  any
      applicable short form. The Company shall  use its best efforts to  make
      Short-Form Registrations  on Form  S-3 available  for the  sale of  the
      Registrable Securities.  If the  Company, pursuant  to the  request  of
      Purchaser, is qualified to  and has filed with  the SEC a  registration
      statement under the  Securities Act on  Form S-3 pursuant  to Rule  415
      under the  Securities  Act  (the  "Required  Registration"),  then  the
      Company shall use its best efforts  to cause the Required  Registration
      to  be  declared  effective  under  the  Securities  Act  as  soon   as
      practicable after filing, and, once effective, the Company shall  cause
      such Required Registration to remain effective  for a period ending  on
      the earlier of (i)  the date on which  all Registrable Securities  have
      been sold pursuant to the Required Registration, or (ii) the date as of
      which the Purchaser is able to  sell all of the Registrable  Securities
      then held by it within a ninety-day period in compliance with Rule  144
      under the Securities Act.

                     (iv) Priority on Demand Registrations. The Company shall
      not include in  any Demand Registration  any securities  which are  not
      Registrable Securities or which are not subject to registration  rights
      agreements outstanding on the date hereof  and which are identified  on
      Schedule 3.1(u)  hereto  without  the  prior  written  consent  of  the
      Purchaser. If a Demand Registration is an underwritten offering and the
      managing underwriters  advise the  Company in  writing that,  in  their
      opinion,  the  number  of  Registrable  Securities  and,  if  permitted
      hereunder, other securities requested to  be included in such  offering
      exceeds the  number of  securities, which  can be  sold in  an  orderly
      manner in such offering within a  price range acceptable to  Purchaser,
      then the  Company shall  include in  such  registration, prior  to  the
      inclusion of any securities which  are not Registrable Securities,  (i)
      first, the  Registrable Securities  requested to  be included  in  such
      registration by the  Purchaser, and (ii)  second, the other  securities
      requested to be included in such registration.

                     (v)  Restrictions on Demand  Registrations. The  Company
      shall not be  obligated to effect  any Demand  Registration within  180
      days after the effective  date of a previous  Demand Registration or  a
      previous registration in which the Purchaser was given piggyback rights
      pursuant to Section 4.15(a) above and  in which the reduction, if  any,
      in the  number  of  Registrable Securities  requested  to  be  included
      therein was not greater  than 25%. The Company  may postpone for up  to
      180 days the filing  or the effectiveness  of a registration  statement
      for a Demand Registration if the Company, in good faith, concludes that
      such Demand  Registration  would  reasonably  be  expected  to  have  a
      Material Adverse Effect generally, and specifically with respect to any
      proposal or plan by the Company  or any of its Subsidiaries to  acquire
      financing, engage  in any  acquisition of  assets  (other than  in  the
      ordinary course of business), or  engage in any merger,  consolidation,
      tender offer, reorganization, or similar transaction; provided that, in
      such event, the Purchaser  shall be entitled  to withdraw such  request
      and the Company shall pay all Registration Expenses in connection  with
      such  registration.  The  Company  may  delay  a  Demand   Registration
      hereunder only once in any calendar year.

            (c)  Provisions Applying to All Registrations Under Section 4.15.

                     (i)  Selection of Underwriter.  Any Company Registration
      and related offering shall be managed by the Company; the Company shall
      have the power to select the managing underwriter(s) for such offering,
      and shall in  consultation with  the managing  underwriter(s) have  the
      power to determine the offering  price, the underwriting discounts  and
      commissions, the terms of the underwriting agreement and, the timing of
      the registration and related  offering.  To  the extent that  Purchaser
      participates in a Company Registration and related offering pursuant to
      Section 4.13(b), Purchaser shall enter  into, and sell its  Registrable
      Securities only pursuant to, the underwriting arranged by the  Company,
      and shall either commit to attend the closing of the offering and  take
      such other actions as may be reasonably necessary to effect Purchaser's
      participation in the offering and to provide any assurances  reasonably
      requested by  the  Company  and the  managing  underwriter(s)  in  that
      regard, or  shall  deliver  to  the  Company  in  custody  certificates
      representing  all  Registrable  Securities   to  be  included  in   the
      registration and shall  execute and deliver  to the  Company a  custody
      agreement  and  a  power  of  attorney,  each  in  form  and  substance
      appropriate for the purpose  of effecting Purchaser's participation  in
      the Company Registration and related offering and otherwise  reasonably
      satisfactory to the Company.  If Purchaser disapproves of the  features
      of  the  Company  Registration  and  related  offering,  Purchaser  may
      withdraw therefrom (in whole or part) by written notice to the  Company
      and the managing underwriter(s) delivered no later than ten days  prior
      to the effectiveness of the  applicable registration statement and  the
      Registrable Securities of Purchaser  shall thereupon be withdrawn  from
      such registration.

                     (ii) The Company shall furnish Purchaser such number  of
      copies  of  a  prospectus,  including  a  preliminary  prospectus,   in
      conformity with the requirements of the Securities Act, and such  other
      documents as they  may reasonably request  in order  to facilitate  the
      disposition of the Registrable Securities owned by it that are included
      in such registration;

                     (ii) Whenever required to include Registrable Securities
      in any registration or  to effect the  registration of any  Registrable
      Securities  pursuant  to   this  Agreement,  the   Company  shall,   as
      expeditiously as reasonably possible, prepare and  file with the SEC  a
      registration statement with respect to such Registrable Securities  and
      use its  absolute  best  lawful  efforts  to  cause  such  registration
      statement to become  effective, and use  its absolute  best efforts  to
      keep such registration statement  effective until all such  Registrable
      Securities have been distributed.  In  addition, the Company shall  use
      its best lawful efforts to register and qualify the securities  covered
      by such registration statement under such other securities or Blue  Sky
      laws of  such jurisdictions  as shall  be reasonably  requested by  the
      Purchaser,  provided  that  the  Company  shall  not  be  required   in
      connection therewith or as a condition thereto to qualify as a  broker-
      dealer in any states or  jurisdictions or to do  business or to file  a
      general consent  to  service  of  process in  any  of  such  states  or
      jurisdictions.

                     (iii)     All   expenses,   other   than    underwriting
      discounts and  commissions  incurred in  connection  the  registrations
      contemplated herein, including,  without limitation, all  registration,
      filing and qualification fees, printers' and accounting fees, fees  and
      disbursements of counsel for the Company,  and the reasonable fees  and
      disbursements of one counsel for the selling Purchaser, shall be  borne
      by the Company.

           (d)  Subject to the terms and conditions of this Agreement and the
      other Transaction Documents, the right to cause the Company to register
      Registrable Securities pursuant  to this Agreement  may be assigned  by
      Purchaser to any  transferee or assignee  of such securities;  provided
      that said transferee  or assignee  is a  transferee or  assignee of  at
      least five percent (5%) of the such Purchaser's Registrable Securities.

                                 ARTICLE V.
                      SMALL BUSINESS INVESTMENT COMPANY

      5.1  Small  Business  Investment  Company  Provisions.    The   Company
 acknowledges that Purchaser, is a small business investment company ("SBIC")
 licensed by the United States Small Business Administration (the "SBA"), and
 makes the following representations,  warranties and covenants to  Purchaser
 for so long as the Debenture held by Purchaser is outstanding:

           (a) Small  Business Concern.  The  Company represents and warrants
      that it, taken together with its "affiliates" (as that term is  defined
      in 13  C.F.R.  S121.103), is  a  "Small Business  Concern"  within  the
      meaning of  15 U.S.C.  S662(5), that  is Section  103(5) of  the  Small
      Business Investment Act of 1958, as  amended (the "SBIC Act"), and  the
      regulations  thereunder,  including  13  C.F.R.  S107,  and  meets  the
      applicable  size   eligibility  criteria   set  forth   in  13   C.F.R.
      S121.301(c)(1) or the industry standard covering the industry in  which
      the  Company  is  primarily   engaged  as  set   forth  in  13   C.F.R.
      S121.301(c)(2).   Neither  the  Company nor  any  of  its  Subsidiaries
      presently  engages  in  any  activities  for  which  a  small  business
      investment company is prohibited from providing funds by the SBIC  Act,
      including 13 C.F.R. S107.

           (b) Small Business Administration Documentation.  On or before the
      Closing Date, Purchaser shall have received  SBA Form 480 (Size  Status
      Declaration) and SBA Form 652 (Assurance of Compliance) which have been
      completed and executed  by the Company,  and SBA  Form 1031  (Portfolio
      Finance Report), Parts  A and  B of which  have been  completed by  the
      Company (the "SBA Documents").

           (c) Inspection.     The  Company  will  permit  Purchaser  or  its
      representatives, at the Company's expense, and examiners of the SBA  to
      visit and inspect the properties and assets of the Company, to  examine
      its books of account and records, and to discuss the Company's affairs,
      finances and accounts  with the Company's  officers, senior  management
      and accountants, all at  such reasonable times as  may be requested  by
      Purchaser or the SBA.

           (d) Informational Covenant.  Within sixty (60) calendar days after
      the end of the Company's fiscal year, the Company will furnish or cause
      to be furnished to Purchaser information required by the SBA concerning
      the economic impact of  Purchaser's investment, for (or  as of the  end
      of) each fiscal year, including but not limited to: (i) board  minutes,
      (ii)  information  concerning  full-time  equivalent  employees,  (iii)
      federal, state and  local income taxes  paid, (iv)  gross revenue,  (v)
      source of revenue growth, (vi) after-tax profit and loss, and (vii) and
      federal, state  and local  income tax  withholding.   Such  information
      shall be forwarded by the Company on a form provided by Purchaser.  The
      Company also will furnish  or cause to be  furnished to Purchaser  such
      other information regarding the business, affairs and condition of  the
      Company as Purchaser may from time to time reasonably request.

           (e) Use  of Proceeds.  The Company  will deliver to Purchaser from
      time to time promptly following Purchaser's request, a written  report,
      certified as correct by an officer, verifying the purposes and  amounts
      for which proceeds from the Debenture have been disbursed.  The Company
      will supply to Purchaser such  additional information and documents  as
      Purchaser reasonably  requests with  respect to  the Company's  use  of
      proceeds, and will permit Purchaser to  have access to any and all  the
      Company's records  and information  and  personnel as  Purchaser  deems
      necessary to verify how such proceeds have been or are being used,  and
      to assure that the proceeds have  been used for the purposes  specified
      on Schedule 4.9.

           (f) Activities and Proceeds.

                     (i) Neither the Company nor any  of its Affiliates  will
                engage in any  activities or use  directly or indirectly  the
                proceeds from the Debenture for any purpose for which a  SBIC
                is prohibited from providing funds by the SBIC Act, including
                13 C.F.R. S107.

                     (ii) Without  obtaining  the prior  written  approval of
                Purchaser, the Company will not  change, within one (1)  year
                of the  Closing Date,  the Company's  business activity  from
                that described  on Schedule  5.1(f)  to a  business  activity
                which a SBIC is prohibited from  providing funds by the  SBIC
                Act.   The  Company  agrees that  any  such  changes  in  its
                business activity  without  such  prior  written  consent  of
                Purchaser  will   constitute  a   material  breach   of   the
                obligations of the  Company under  the Transaction  Documents
                (an "Activity Event of Default").

                                 ARTICLE VI.
                                MISCELLANEOUS

      6.1  Intentionally Omitted.

      6.2  Fees and Expenses.   At the closing,  the Company shall  reimburse
 Purchaser for its legal fees and expenses up to a maximum amount of $20,000.
 Except as expressly set forth above and in the Transaction Documents to  the
 contrary, each  party shall  pay  the fees  and  expenses of  its  advisers,
 counsel, accountants  and other  experts, if  any,  and all  other  expenses
 incurred by such party incident to the negotiation, preparation,  execution,
 delivery and  performance  of  this  Agreement  and  the  other  Transaction
 Documents.  The Company shall pay  all transfer agent fees, stamp taxes  and
 other taxes  and  duties levied  in  connection  with the  issuance  of  any
 Securities.

      6.3  Entire Agreement.   The Transaction Documents,  together with  the
 exhibits and  schedules thereto,  contain the  entire understanding  of  the
 parties with respect to  the subject matter hereof  and supersede all  prior
 agreements and  understandings,  oral  or  written,  with  respect  to  such
 matters, which the parties acknowledge have been merged into such documents,
 exhibits and schedules.

      6.4     Notices.   Any  and  all notices  or  other  communications  or
 deliveries required  or  permitted to  be  provided hereunder  shall  be  in
 writing and shall be deemed given and  effective on the earliest of (a)  the
 date of  transmission, if  such notice  or  communication is  delivered  via
 facsimile at the facsimile number set forth on the signature pages  attached
 hereto prior to 5:30 p.m.  (Dallas, Texas time) on  a Business Day, (b)  the
 next Business  Day  after  the  date of  transmission,  if  such  notice  or
 communication is delivered via facsimile at  the facsimile number set  forth
 on the signature pages attached hereto on a  day that is not a Business  Day
 or later than 5:30 p.m.  (Dallas, Texas time) on  any Business Day, (c)  the
 second Business  Day  following  the  date  of  mailing,  if  sent  by  U.S.
 nationally recognized overnight courier service, or (d) upon actual  receipt
 by the party to whom such notice is required  to be given.  The address  for
 such notices and communications shall be as set forth on the signature pages
 attached hereto.

      6.5  Amendments; Waivers.  No provision of this Agreement may be waived
 or amended  except  in  a written  instrument  signed,  in the  case  of  an
 amendment, by the Company and Purchaser or, in the case of a waiver, by  the
 party against whom enforcement of any such  waiver is sought.  No waiver  of
 any default with respect to any provision, condition or requirement of  this
 Agreement shall be  deemed to  be a  continuing waiver  in the  future or  a
 waiver of  any  subsequent default  or  a  waiver of  any  other  provision,
 condition or requirement hereof, nor shall  any delay or omission of  either
 party to exercise any right hereunder  in any manner impair the exercise  of
 any such right.

      6.6  Construction.  The  headings herein are  for convenience only,  do
 not constitute a part of this Agreement and shall not be deemed to limit  or
 affect any of the  provisions hereof.  The  language used in this  Agreement
 will be deemed to  be the language  chosen by the  parties to express  their
 mutual intent, and no rules of  strict construction will be applied  against
 any party.

      6.7  Successors and Assigns.  This Agreement shall be binding upon  and
 inure to  the benefit  of the  parties and  their successors  and  permitted
 assigns.   The  Company may  not  assign this  Agreement  or any  rights  or
 obligations hereunder  without  the  prior  written  consent  of  Purchaser.
 Purchaser may assign any or  all of its rights  under this Agreement to  any
 Person to whom Purchaser assigns or transfers any Securities, provided  such
 transferee agrees in writing  to be bound, with  respect to the  transferred
 Securities, by the provisions hereof that apply to the Purchaser.

      6.8  No Third-Party Beneficiaries.  This Agreement is intended for  the
 benefit of the parties hereto and their respective successors and  permitted
 assigns and is  not for  the benefit  of, nor  may any  provision hereof  be
 enforced by, any  other Person,  except as  otherwise set  forth in  Section
 4.10.

      6.9  Governing  Law.   All  questions   concerning  the   construction,
 validity, enforcement and interpretation of the Transaction Documents  shall
 be governed by and  construed and enforced in  accordance with the  internal
 laws of the State of Texas, without regard to the principles of conflicts of
 law thereof.  Each  party agrees that all  legal proceedings concerning  the
 interpretations, enforcement and defense of the transactions contemplated by
 this Agreement and any other Transaction Documents (whether brought  against
 a  party  hereto   or  its  respective   affiliates,  directors,   officers,
 shareholders, employees or  agents) shall  be commenced  exclusively in  the
 state and federal courts sitting in the  City of Dallas, Texas.  Each  party
 hereby irrevocably submits to  the exclusive jurisdiction  of the state  and
 federal courts sitting in the City of Dallas, Texas for the adjudication  of
 any dispute  hereunder or  in connection  herewith or  with any  transaction
 contemplated hereby  or  discussed herein  (including  with respect  to  the
 enforcement of any  of the  Transaction Documents),  and hereby  irrevocably
 waives, and agrees  not to  assert in any  suit, action  or proceeding,  any
 claim that it  is not  personally subject to  the jurisdiction  of any  such
 court, that  such suit,  action or  proceeding is  improper or  inconvenient
 venue for such proceeding.  THE PARTIES  HEREBY WAIVE ALL RIGHTS TO A  TRIAL
 BY JURY.  If either party shall commence an action or proceeding to  enforce
 any provisions of the  Transaction Documents, then  the prevailing party  in
 such action or  proceeding shall be  reimbursed by the  other party for  its
 attorneys'  fees   and  other   costs  and   expenses  incurred   with   the
 investigation, preparation and prosecution of such action or proceeding.

      6.10 Survival.   The representations  and warranties  contained  herein
 shall survive the Closing and the delivery of the Securities until the later
 of the  satisfaction,  complete conversion,  or  exercise of  the  Debenture
 and/or the Warrant, as the case may be.

      6.11 Execution.   This  Agreement  may  be  executed  in  two  or  more
 counterparts, all of which when taken  together shall be considered one  and
 the same agreement and  shall become effective  when counterparts have  been
 signed by each party and delivered  to the other party, it being  understood
 that both parties need not sign the same counterpart.  In the event that any
 signature is  delivered  by  facsimile transmission,  such  signature  shall
 create a valid and  binding obligation of the  party executing (or on  whose
 behalf such signature is executed) with the same force and effect as if such
 facsimile signature page were an original thereof.

      6.12 Severability.  If any  provision of this Agreement  is held to  be
 invalid or unenforceable in any respect, the validity and enforceability  of
 the remaining terms and provisions of this Agreement shall not in any way be
 affected or impaired thereby  and the parties will  attempt to agree upon  a
 valid and enforceable  provision that is  a reasonable substitute  therefor,
 and upon so agreeing,  shall incorporate such  substitute provision in  this
 Agreement.

      6.13 Rescission and Withdrawal Right.  Notwithstanding anything to  the
 contrary contained in (and without limiting  any similar provisions of)  the
 Transaction Documents,  whenever  Purchaser  exercises  a  right,  election,
 demand or  option under  a Transaction  Document and  the Company  does  not
 timely perform its related obligations within the periods therein  provided,
 then Purchaser may rescind or withdraw, in its sole discretion from time  to
 time upon written  notice to  the Company,  any relevant  notice, demand  or
 election in whole  or in part  without prejudice to  its future actions  and
 rights; provided, however, in the case of  a rescission of an exercise of  a
 Warrant, Purchaser shall be  required to return any  shares of Common  Stock
 subject to any such rescinded exercise notice.

      6.14 Replacement of  Securities.   If  any  certificate  or  instrument
 evidencing any  Securities  is mutilated,  lost,  stolen or  destroyed,  the
 Company shall issue or cause to  be issued in exchange and substitution  for
 and upon cancellation thereof,  or in lieu of  and substitution therefor,  a
 new certificate or instrument, but only upon receipt of evidence  reasonably
 satisfactory to the Company of such loss, theft or destruction and customary
 and  reasonable  indemnity,  if  requested.   The   applicants  for  a   new
 certificate or  instrument  under  such circumstances  shall  also  pay  any
 reasonable  third-party  costs   associated  with  the   issuance  of   such
 replacement Securities.

      6.15 Remedies.  In addition  to being entitled  to exercise all  rights
 provided herein or granted by law, including recovery of damages,  Purchaser
 and  the  Company  will  be  entitled  to  specific  performance  under  the
 Transaction Documents.  The parties agree  that monetary damages may not  be
 adequate compensation  for any  loss incurred  by reason  of any  breach  of
 obligations described in the foregoing sentence  and hereby agrees to  waive
 in any action for  specific performance of any  such obligation the  defense
 that a remedy at law would be adequate.

      6.16 Payment Set Aside. To the extent that the Company makes a  payment
 or payments to Purchaser pursuant to any Transaction Documents or  Purchaser
 enforces or exercises its rights thereunder, and such payment or payments or
 the proceeds  of  such enforcement  or  exercise  or any  part  thereof  are
 subsequently invalidated,  declared to  be fraudulent  or preferential,  set
 aside, recovered from, disgorged by or  are required to be refunded,  repaid
 or otherwise  restored to  the Company,  a trustee,  receiver or  any  other
 person under any  law (including,  without limitation,  any bankruptcy  law,
 state or federal law, common law or equitable cause of action), then to  the
 extent of any  such restoration the  obligation or  part thereof  originally
 intended to be satisfied  shall be revived and  continued in full force  and
 effect as if such payment  had not been made  or such enforcement or  setoff
 had not occurred.

      6.17 Usury.  To the  extent it may lawfully  do so, the Company  hereby
 agrees not to insist upon  or plead or in  any manner whatsoever claim,  and
 will resist any  and all  efforts to  be compelled  to take  the benefit  or
 advantage of, usury laws wherever enacted,  now or at any time hereafter  in
 force, in  connection with  any  claim, action  or  proceeding that  may  be
 brought by  Purchaser in  order to  enforce any  right or  remedy under  any
 Transaction  Documents.   Notwithstanding  any  provision  to  the  contrary
 contained in any Transaction Documents, it is expressly agreed and  provided
 that the total liability of the Company under the Transaction Documents  for
 payments in the nature of interest shall not exceed the maximum lawful  rate
 authorized under applicable law (the "Maximum Rate"), and, without  limiting
 the foregoing, in no event shall  any rate of interest or default  interest,
 or both  of them,  when aggregated  with any  other sums  in the  nature  of
 interest that the  Company may  be obligated  to pay  under the  Transaction
 Documents exceed  such Maximum  Rate.   It  is agreed  that if  the  maximum
 contract rate of interest allowed by  law and applicable to the  Transaction
 Documents is increased or decreased by statute or any official  governmental
 action subsequent  to the  date hereof,  the new  maximum contract  rate  of
 interest allowed  by  law  will  be  the  Maximum  Rate  applicable  to  the
 Transaction  Documents  from  the   effective  date  forward,  unless   such
 application is  precluded by  applicable law.   If  under any  circumstances
 whatsoever, interest in excess of the Maximum Rate is paid by the Company to
 Purchaser  with  respect  to  indebtedness  evidenced  by  the   Transaction
 Documents, such excess shall be applied by Purchaser to the unpaid principal
 balance of any such indebtedness or  be refunded to the Company, the  manner
 of handling such excess to be at Purchaser's election.

      6.18 Intentionally Omitted.

      6.19 Liquidated Damages.  The Company's obligations to pay any  partial
 liquidated damages or other amounts owing under the Transaction Documents is
 a continuing obligation  of the Company  and shall not  terminate until  all
 unpaid  partial  liquidated  damages  and  other  amounts  have  been   paid
 notwithstanding the fact that the instrument  or security pursuant to  which
 such partial liquidated damages or other  amounts are due and payable  shall
 have been canceled.

                            (Signature Page Follows)

         IN WITNESS  WHEREOF, the parties hereto have caused this  Securities
 Purchase Agreement  to  be  duly executed  by  their  respective  authorized
 signatories as of the date first indicated above.

 COMPANY

 RAPID LINK INCORORATED                  Address for Notice and Delivery:
                                         17383 Sunset Boulevard
                                         Suite 350
                                         Pacific Palisades, California  90272
                                         Telephone:  (310) 566-1700
                                         Facsimile:  (310) 573-9435
                                         Attn: John Jenkins, CEO

 By:____________________________________
    Name:  John Jenkins
    Title: Chief Executive Officer

 PURCHASER

 TRIDENT GROWTH FUND, L.P.               Address for Notice and Delivery:
 By: TRIDENT MANAGEMENT, LLC, its        700 Gemini
       GENERAL PARTNER                   Houston, TX 77058
                                         Telephone:  (281) 488-8484
                                         Facsimile:  (281) 488-5353
                                         Attn: Larry St. Martin

 By:____________________________________

      Name:
      Title:  Authorized Member

                                 ATTACHMENTS

 Exhibit A           Form of Debenture
 Exhibit B           Form of Security Agreement
 Exhibit C           Form of Warrant
 Exhibit D           Form of Subordination Agreement
 Exhibit E           SBA Form 480
 Exhibit F           SBA Form 652
 Exhibit G           SBA Form 1031

 Schedule 3.1(a)     Subsidiaries
 Schedule 3.1(e)     Filings, Consents and Approvals
 Schedule 3.1(g)     Capitalization
 Schedule 3.1(h)     Financial Statements
 Schedule 3.1(i)     Litigation
 Schedule 3.1(l)     Regulatory Permits
 Schedule 3.1(m)     Title to Assets (Outstanding liens)
 Schedule 3.1(n)     Intellectual Property
 Schedule 3.1(r)     Certain Fees (Broker Fees)
 Schedule 3.1(u)     Registration Rights
 Schedule 3.1(cc)    Indebtedness
 Schedule 3.1(ff)    Material Liabilities
 Schedule 3.1(gg)    Material Agreements
 Schedule 3.1(hh)    Board of Directors
 Schedule 4.9        Use of Proceeds
 Schedule 5.1(f)     Business ActivityEXHIBIT 4.2

 THIS SECURITY  HAS NOT  BEEN REGISTERED  WITH  THE SECURITIES  AND  EXCHANGE
 COMMISSION OR THE  SECURITIES COMMISSION OF  ANY STATE IN  RELIANCE UPON  AN
 EXEMPTION FROM REGISTRATION  UNDER THE SECURITIES  ACT OF  1933, AS  AMENDED
 (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD  EXCEPT
 PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT  OR
 PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
 THE REGISTRATION REQUIREMENTS OF THE SECURITIES  ACT AND IN ACCORDANCE  WITH
 APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF  COUNSEL
 TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
 ACCEPTABLE TO THE COMPANY.  THIS SECURITY MAY BE PLEDGED IN CONNECTION  WITH
 A BONA  FIDE  MARGIN ACCOUNT  OR  OTHER LOAN  SECURED  BY SUCH  SECURITY  AS
 PERMITTED BY LAW AND THE SECURITIES PURCHASE AGREEMENT PURSUANT TO WHICH THE
 SECURITIES WERE ISSUED.

 Original Issue Date: March 8, 2006

 No. 1                                                               $600,000

                      10% SECURED CONVERTIBLE DEBENTURE
                      ---------------------------------

      This 10% Secured  Convertible Debenture  (this "Debenture")  is a  duly
 authorized and  issued  10%  Secured Convertible  Debenture  of  RAPID  LINK
 INCORPORATED, a Delaware corporation, having its principal place of business
 located at  the  address  set  forth  on  the  signature  page  hereto  (the
 "Company"),  for  the  principal  amount  of  SIX HUNDRED  THOUSAND  DOLLARS
 ($600,000), issued in  connection with that  certain Purchase Agreement  (as
 defined below) of even date herewith  entered into by and among the  Company
 and the Holder.

      FOR VALUE RECEIVED, the Company promises to pay to TRIDENT GROWTH FUND,
 L.P., a Delaware limited partnership, having its principal place of business
 located at 700 Gemini, Houston, Texas 77058, or its registered assigns  (the
 "Holder"), the principal sum of  SIX HUNDRED THOUSAND DOLLARS ($600,000)  on
 the earlier of (a)  March 8, 2007; or  (b) the consummation  of a Change  of
 Control Transaction (the "Maturity Date"), and to pay interest to the Holder
 on the then  outstanding principal amount  of this  Debenture in  accordance
 with the provisions  hereof.   This Debenture  is subject  to the  following
 additional provisions:

      Section 1.     Definitions.  For  the purposes hereof,  in addition  to
 the terms defined below and elsewhere  in this Debenture, capitalized  terms
 contained herein shall have the meanings given to such terms in the Purchase
 Agreement, and (b) the following terms shall have the following meanings:

           "Bankruptcy Event"  means any  of the  following events:  (a)  the
      Company or any Subsidiary (as such  term is defined in Rule 1.02(s)  of
      Regulation S-X of the Exchange Act)  thereof commences a case or  other
      proceeding   under   any   bankruptcy,   reorganization,   arrangement,
      adjustment of  debt,  relief  of debtors,  dissolution,  insolvency  or
      liquidation or similar law of any jurisdiction relating to the  Company
      or any Subsidiary thereof; (b) there  is commenced against the  Company
      or any  Subsidiary thereof  any such  case or  Proceeding that  is  not
      dismissed within 60  days after commencement;  (c) the  Company or  any
      Subsidiary thereof is adjudicated insolvent or bankrupt or any order of
      relief or other order approving any such case or Proceeding is entered;
      (d) the Company or  any Subsidiary thereof  suffers any appointment  of
      any custodian  or  the like  for  it or  any  substantial part  of  its
      property that  is not  discharged or  stayed within  60 days;  (e)  the
      Company or any Subsidiary  thereof makes a  general assignment for  the
      benefit of creditors; (f) the Company or any Subsidiary thereof calls a
      meeting of  its  creditors with  a  view to  arranging  a  composition,
      adjustment or  restructuring  of its  debts;  (g) the  Company  or  any
      Subsidiary thereof, by any act or  failure to act, expressly  indicates
      its consent to, approval of or acquiescence in any of the foregoing  or
      takes any corporate or other action for the purpose of effecting any of
      the foregoing; or (h) an application for the appointment of a  receiver
      or liquidator for the Company or any of its material assets.

           "Capital Lease" means  any lease  of property  (real, personal  or
      mixed) which, in  accordance with GAAP,  should be  capitalized on  the
      lessee's balance  sheet  or for  which  the  amount of  the  asset  and
      liability thereunder as if so capitalized should be disclosed in a note
      to such balance sheet.

           "Cash  Flow"  means   an  amount  equal   to  (i)  the   Company's
      Consolidated EBITDA, minus (ii) the Company's Consolidated non-financed
      Capital Expenditures.

           "Consolidated EBITDA" means, for any Person for any period:

                 (i) the consolidated  net  income  of such  Person  and  its
      Consolidated  Subsidiaries  for  such  period  (after  Income   Taxes),
      calculated in accordance with GAAP, but excluding:

                     (A)  any gain arising from the sale of capital assets,

                     (B)  any gain arising from any write-up of assets,

                     (C)  earnings of any other Person, substantially all  of
      the  assets  of  which  have  been  acquired  by  such  Person  or  its
      Consolidated Subsidiaries  in  any  manner, to  the  extent  that  such
      earnings were realized by such other  Person prior to the date of  such
      acquisition.

                     (D)  earnings of any Person in  which the Person or  its
      Consolidated Subsidiaries has an ownership interest (other than  wholly
      owned Subsidiaries of such Person ), unless such earnings have actually
      been received by  the Person or  its Consolidated  Subsidiaries in  the
      form of cash distributions,

                     (E)  earnings of  any  Person  to which  assets  of  the
      Person  or  its  Consolidated   Subsidiaries  shall  have  been   sold,
      transferred or disposed of, or into which the Person shall have merged,
      to the  extent that  such earnings  arise  prior to  the date  of  such
      transaction,

                     (F)  any  gain  arising  from  the  acquisition  of  any
      securities of such Person or any of its Consolidated Subsidiaries, and

                     (G)  any extraordinary gain realized  by such Person  or
      any of its Consolidated Subsidiaries during such period.

                (ii)  plus the following, but only in each case to the extent
      incurred by the Company and  its Consolidated Subsidiaries during  such
      period and deducted in the calculation above for such period,

                     (A)  all income and franchise taxes,

                     (B)  all Interest Expense,

                     (C)  all depreciation expense, and

                     (D)  all amortization expense.

           "Current Assets" means, at any particular time, all amounts which,
      in conformity  with GAAP,  would be  included as  current assets  on  a
      consolidated  balance  sheet  of  the  Company  and  its  Subsidiaries;
      provided, however, there  shall be excluded  therefrom (a) all  prepaid
      expenses of every type and nature, (b) all amounts due from  directors,
      officers, stockholders  or other  Affiliates, and  all loans  due  from
      employees, and (c) all deferred charges.

           "Current Liabilities" means, at  any particular time, all  amounts
      (including deferred taxes)  which, in  conformity with  GAAP, would  be
      included as current liabilities on a consolidated balance sheet of  the
      Company and its Subsidiaries.

           "Current Ratio"  means  the ratio  of  Current Assets  to  Current
      Liabilities.

           "Dallas Courts" shall have the meaning set forth in Section 7(e).

           "Debenture Register" shall have the  meaning set forth in  Section
      2(b).

           "Event of Default" shall have the meaning set forth in Section 6.

           "Interest Expense" means, with respect to  any Person and for  any
      period (without  duplication),  all  interest on  that  Person's  debt,
      whether paid in  cash or  accrued as a  liability and  payable in  cash
      during  any  subsequent  period  (including,  without  limitation,  the
      interest component of Capital Leases), as determined by GAAP.

           "Late Fees" shall have the meaning set forth in Section 2(c).

           "Liabilities" mean all  liabilities, obligations and  indebtedness
      of any and every kind and nature (including, without limitation,  lease
      obligations, accrued interest, charges,  expenses, attorneys' fees  and
      other sums) chargeable to the Company and made to or for the benefit of
      the Company, whether arising under this Debenture or arising under  the
      any of the Transaction Documents, whether heretofore, now or  hereafter
      owing, arising, due or payable from  Company to the Holder and  however
      evidenced, credited,  incurred,  acquired or  owing,  whether  primary,
      secondary,  direct,   contingent,   fixed,  or   otherwise,   including
      obligation of performance.

           "Net Income" or "Net Loss"  means, with respect to any Person  for
      any period, the  net income or  net loss of  such Person determined  in
      accordance with GAAP, after payment of  income taxes but excluding  any
      extraordinary or non-recurring items.

           "Original Issue Date" shall mean the date of the first issuance of
      this Debenture regardless  of the number  of transfers of  this or  any
      portion of this Debenture and regardless  of the number of  instruments
      which may be issued to evidence such Debenture or Debentures.

            "Purchase Agreement" means the Securities Purchase Agreement,  of
      even date herewith, to which the Company and the Holder are parties, as
      amended, modified or supplemented from time to time in accordance  with
      its terms.

      Section 2.     Interest.

           a) Payment of Interest in Cash. The Company shall pay interest, in
      cash, to the Holder  on the then outstanding  principal amount of  this
      Debenture at  the rate  of  10% per  annum,  payable in  equal  monthly
      installments of cash via wire transfer of immediately available  funds,
      in arrears, on the last day of  each month for the period beginning  on
      the Initial  Issuance Date  and ending  on the  Maturity Date  or  such
      earlier or later time  when this Debenture is  paid or prepaid in  full
      (except that, if any such date is not a Business Day, then such payment
      shall be due on the next  succeeding Business Day) (each such date,  an
      "Interest Payment Date"), subject to the conversion rights of Holder as
      stated herein.

           b) Interest  Calculations.  Interest  shall be  calculated  on the
      basis of  a 360-day  year  and shall  accrue  daily commencing  on  the
      Original Issue  Date  until  payment in  full  of  the  principal  sum,
      together with all accrued and unpaid  interest and other amounts  which
      may become due hereunder,  has been made.   Interest hereunder will  be
      paid to the Person  in whose name this  Debenture is registered on  the
      records  of  the  Company  regarding  registration  and  transfers   of
      Debentures (the "Debenture Register").

           c) Late  Fee.  All overdue accrued and  unpaid interest to be paid
      hereunder shall entail a late fee at the rate of 18% per annum (or such
      lower  maximum  amount  of  interest  permitted  to  be  charged  under
      applicable law) ("Late  Fee") which will  accrue daily,  from the  date
      such interest  is  due hereunder  through  and including  the  date  of
      payment.

           d) Prepayment.   The Company may prepay all  or any portion of the
      then  outstanding  principal  amount  of  this  Debenture  without  any
      prepayment premium or discount by providing  Holder not less than  five
      days prior written notice, such outstanding principal balance remaining
      subject to  Holder's  conversion  rights  hereunder  until  the  actual
      prepayment is made following such notice period.

      Section 3.      Conversion Right; Adjustments.

           The Holder of  this Debenture shall  have the  right, at  Holder's
      option, at  any  time on  or  after the  Original  Issue Date  of  this
      Debenture, to convert  all, or, in  multiples of $50,000,  any part  of
      this Debenture into such number of fully paid and nonassessable  shares
      of Common  Stock as  shall be  provided  herein.   The Holder  of  this
      Debenture may exercise the conversion right by giving written notice (a
      "Conversion Notice") to the Company of  the exercise of such right  and
      stating the  name or  names in  which the  stock certificate  or  stock
      certificates for the shares  of Common Stock are  to be issued and  the
      address to which such certificates shall be delivered.  The  Conversion
      Notice shall be accompanied by this Debenture.  The number of shares of
      Common Stock that shall  be issuable upon  conversion of the  Debenture
      shall equal the  then outstanding  principal amount  of this  Debenture
      plus all accrued and unpaid interest  due and payable on the  Debenture
      on the Conversion  Date (defined below)  or a portion  thereof (in  the
      discretion of the Holder) divided by  the Conversion Price (as  defined
      below)  in  effect  on  the  date  the  Conversion  Notice  is   given.
      Conversion shall  be deemed  to  have been  effected  on the  date  the
      Conversion Notice  is delivered  to the  Company (each,  a  "Conversion
      Date").  Within ten Business Days after a Conversion Date, the  Company
      shall issue and deliver by hand against a signed receipt therefor or by
      reputable overnight delivery carrier to  the address designated in  the
      Conversion Notice, a  stock certificate  or stock  certificates of  the
      Company representing  the number  of shares  of Common  Stock to  which
      Holder is  entitled and  a check  or cash  in payment  of all  interest
      accrued and  unpaid  under the  Debenture  being converted  up  to  and
      including the  Conversion  Date.   If  a  stock  certificate  or  stock
      certificates  are  not  delivered  within  10  business  days  after  a
      Conversion Date, the Company shall pay and/or grant to Holder 0.1%  (on
      a Fully Diluted Basis) of the Company's Common Stock per day until such
      certificates are delivered. The conversion  rights will be governed  by
      the following provisions:

           a)   Conversion Price.   The   Conversion   Price,   subject    to
      adjustment as  set forth  herein, shall  be  equal to  $.30;  provided,
      however, that  in the  event  that this  Debenture  is not  repaid  and
      satisfied in full  on or by  September 7, 2006,  such Conversion  Price
      shall automatically, without  the necessity for  any further action  by
      any party hereto, be reduced to $.14.

           b)   Adjustment for Issuance of Shares at less than the Conversion
      Price.

                (i)  If and whenever any  Additional Common Stock (as  herein
      defined) shares shall be issued by the Company (the "Stock Issue Date")
      for a consideration per share less  than the Conversion Price, then  in
      each such case the initial Conversion  Price shall be reduced to a  new
      Conversion Price  in an  amount equal  to the  consideration per  share
      received by the Company for the additional shares of Common Stock  then
      issued,; and, in the case of  shares issued without consideration,  the
      initial Conversion Price shall be reduced  in amount and the number  of
      shares issued upon conversion shall be increased in an amount so as  to
      maintain for the Holder the right to convert this Debenture into shares
      equal in amount to the same percentage interest in the Common Stock  of
      the Company as existed for the  Holder immediately preceding the  Stock
      Issue Date.

                (ii)      Consideration for Shares.   In case of the issuance
      of Additional Common  Stock for a  consideration part or  all of  which
      shall be cash, the amount of  the cash consideration therefor shall  be
      deemed to  be the  amount of  the  cash received  by Company  for  such
      shares.  In  case of the  issuance of any  shares of Additional  Common
      Stock for a  consideration part  or all of  which shall  be other  than
      cash, the amount of the consideration therefor, other than cash,  shall
      be deemed to be the then fair market value of the property received  as
      determined by an investment banking firm selected by Holder.

                (iii)     Reclassification of  Shares.      In  case  of  the
      reclassification of securities into shares of Common Stock, the  shares
      of Common Stock issued in such reclassification shall be deemed to have
      been issued for a consideration other than cash.  Shares of  Additional
      Common Stock issued  by way of  dividend or other  distribution on  any
      class of  stock of  the Company  shall be  deemed to  have been  issued
      without consideration.

                (iv)  Split up or Combination of Shares.   In case issued and
      outstanding shares of Common Stock shall be subdivided or split up into
      a greater number of  shares of the Common  Stock, the Conversion  Price
      shall be proportionately decreased, and in case issued and  outstanding
      shares of  Common Stock  shall be  combined into  a smaller  number  of
      shares of Common Stock, the  Conversion Price shall be  proportionately
      increased, such  increase or  decrease, as  the case  may be,  becoming
      effective at the time of record of the split-up or combination, as  the
      case may be.

                (v)  The term "Additional  Common Stock"  herein shall  mean,
      other than with  respect to an  Exempt Issuance, in  the most  broadest
      sense all shares of Common Stock or Common Stock Equivalents  hereafter
      issued by the Company (including, but not limited to Common Stock  held
      in the treasury  of the Company,  except Common Stock  issued upon  the
      conversion or exercise of any security purchased in connection with the
      Purchase Agreement.

           c)   Adjustment for Mergers, Consolidations, Etc..

                (i)  In the event of distribution to all Common Stock holders
      of any stock,  indebtedness of the  Company or  assets (excluding  cash
      dividends or distributions from retained  earnings) or other rights  to
      purchase securities or assets, then,  after such event, this  Debenture
      will be convertible into  the kind and amount  of securities, cash  and
      other property  which  the holder  of  the Debenture  would  have  been
      entitled to receive if the holder owned the Common Stock issuable  upon
      conversion of the Debenture immediately prior to the occurrence of such
      event.

                (ii) In case of any capital reorganization,  reclassification
      of the stock of the Company (other than a  change in par value or as  a
      result of a  stock dividend, subdivision,  split up  or combination  of
      shares), this Debenture shall be convertible  into the kind and  number
      of shares of stock  or other securities or  property of the Company  to
      which the holder of the Debenture  would have been entitled to  receive
      if the holder owned  the Common Stock issuable  upon conversion of  the
      Debenture immediately  prior to  the occurrence  of  such event.    The
      provisions  of  the  foregoing   sentence  shall  similarly  apply   to
      successive    reorganizations,    reclassifications,    consolidations,
      exchanges, leases,  transfers  or  other dispositions  or  other  share
      exchanges.

           d)   Notice of  Adjustment.     In  the event  the  Company  shall
      propose to take any action which  shall result in an adjustment in  the
      Conversion Price, the Company  shall give notice  to the Holder,  which
      notice shall specify  the record  date, if  any, with  respect to  such
      action and the date on which such action is to take place.  Such notice
      shall be given on or before the  earlier of ten days before the  record
      date or the date which such action  shall be taken.  Such notice  shall
      also set forth all facts (to  the extent known) material to the  effect
      of such action on the Conversion Price and the number, kind or class of
      shares or other securities  or property which  shall be deliverable  or
      purchasable upon  the occurrence  of such  action or  deliverable  upon
      conversion of this Debenture.  Additionally, following completion of an
      event wherein the Conversion Price shall be adjusted, the Company shall
      furnish to  the holder  of this  Debenture a  statement, signed  by  an
      authorized officer of the Company of the facts creating such adjustment
      and specifying the resultant adjusted Conversion Price then in effect.

           e)   Reservation of Shares.  The Company warrants and agrees  that
      it shall at all times reserve and keep available, free from  preemptive
      rights, sufficient authorized  and unissued shares  of Common Stock  to
      effect conversion of this Debenture.

           f)   Registration Rights.   The  Holder  has certain  rights  with
      respect to the registration of shares  of Common Stock issued upon  the
      conversion of this Debenture, such rights being specifically set  forth
      in the Purchase Agreement  entered into by and  between Holder and  the
      Company on the date hereof.

           g)   Exercise Limitations.  The Holder shall not have the right to
      convert any  portion  of  this Debenture,  pursuant  to  Section  3  or
      otherwise, to  the extent  that after  giving effect  to such  issuance
      after exercise, the Holder (together with the Holder's affiliates),  as
      set forth on the applicable  Conversion Notice, would beneficially  own
      in excess of 4.99% (or as applicable, 9.99%) of the number of shares of
      the Common Stock  outstanding immediately after  giving effect to  such
      issuance.  For purposes of the  foregoing determination, the number  of
      shares of  Common  Stock  beneficially owned  by  the  Holder  and  its
      affiliates shall include the number of shares of Common Stock  issuable
      upon such conversion  of this Debenture  less the number  of shares  of
      Common Stock  which  would  be issuable  upon  (A)  conversion  of  the
      remaining, unexercised portion  of this Debenture  and (B) exercise  or
      conversion of  the  unexercised or  unconverted  portion of  any  other
      Securities (including,  without  limitation, any  other  Debentures  or
      Warrants) subject to a limitation  on conversion or exercise  analogous
      to the limitation contained herein  beneficially owned by the  Holder.
      Except as set  forth in the  preceding sentence, for  purposes of  this
      Section 3(g), beneficial  ownership shall be  calculated in  accordance
      with Section  13(d)  of the  Exchange  Act.   To  the extent  that  the
      limitation contained in this Section 3(g) applies, the determination of
      whether this Debenture is convertible (in relation to other  securities
      owned by  the Holder)  and of  which  a portion  of this  Debenture  is
      convertible shall be in the sole discretion of Holder.  For purposes of
      this Section 3(g), in determining the  number of outstanding shares  of
      Common Stock, the Holder may rely  on the number of outstanding  shares
      of Common Stock  as reflected in  (x) Schedule 3.1(g)  to the  Purchase
      Agreement, (y)  a  more  recent  public  announcement  by  the  Company
      including the annual report or quarterly report on Form 10-KSB or  Form
      10-QSB, as the case may be, most recently filed with the Commission; or
      (z) any other  notice by the  Company or the  Company's Transfer  Agent
      setting forth the number of shares  of Common Stock outstanding.   Upon
      the written or oral request of the Holder, the Company shall within two
      Business Days confirm orally and in writing to the Holder the number of
      shares of  Common  Stock  then outstanding.   The  provisions  of  this
      Section 3(g) may be waived by the  Holder upon, at the election of  the
      Holder, not less  than 61 days'  prior notice to  the Company, and  the
      provisions of this Section 3(g) shall continue to apply until such 61st
      day (or  such  later date,  as  determined by  the  Holder, as  may  be
      specified in such notice of waiver).

      Section 4.     Registration of Transfers and Exchanges.

           a) Different  Denominations. This Debenture is exchangeable for an
      equal aggregate principal amount of Debentures of different  authorized
      denominations, as requested by  the Holder surrendering  the same.   No
      service charge  will  be made  for  such registration  of  transfer  or
      exchange.

           b) Investment  Representations.  This  Debenture  has  been issued
      subject to certain  investment representations of  the original  Holder
      set forth in the Purchase Agreement and may be transferred or exchanged
      only in compliance with the  Purchase Agreement and applicable  federal
      and state securities laws and regulations.

           c) Reliance on Debenture Register. Prior to due presentment to the
      Company for transfer of  this Debenture, the Company  and any agent  of
      the Company may treat the Person  in whose name this Debenture is  duly
      registered on  the  Debenture Register  as  the owner  hereof  for  the
      purpose of  receiving payment  as herein  provided  and for  all  other
      purposes, whether or  not this Debenture  is overdue,  and neither  the
      Company nor any such agent shall be affected by notice to the contrary.

      Section 5.      Negative Covenants.  So  long as  any portion  of  this
      Debenture is  outstanding, without  the prior  written consent  of  the
      Holder, which consent  may be withheld  in the sole  discretion of  the
      Holder,  the  Company  will  not  and  will  not  permit  any  of   its
      Subsidiaries to directly or indirectly:

           a) Indebtedness.   Other than equipment leases of up to $50,000 in
      the aggregate  for any  12 month  period,  enter into,  create,  incur,
      assume or suffer to exist any indebtedness or Liens, on or with respect
      to any of its property or assets now owned or hereafter acquired or any
      interest therein or any income or profits therefrom that is senior  to,
      or pari passu with, in any respect, the Company's obligations under the
      Debentures;

           b) Repayment  of Indebtedness.  Repay  any principal due and owing
      on any promissory  notes, debentures, or  other forms of  indebtedness,
      other than (i)  periodic interest  payments due  and owing  thereunder;
      (ii) repayment due of any principal amount or interest due or  becoming
      due  under  or  under  this  Debenture;  and  (iii)  repayment  of  the
      indebtedness set  forth  in Schedule  4.9  to the  Purchase  Agreement;
      provided, however, nothing contained in this section shall prohibit the
      Company from making any payments with respect to trade payables made in
      the ordinary course of the Company's business;

           c) Repayment  of Shares.    Repay, repurchase  or offer  to repay,
      repurchase or otherwise acquire more than a de minimus number of shares
      of its  Common  Stock  or  other  equity  securities  or  as  otherwise
      permitted by the Transaction Documents;

           d) Governing Documents.   Amend its  certificate of incorporation,
      bylaws or other charter documents so as to adversely affect any  rights
      of the Holder in its capacity as a holder of the Debentures;

           e) Loans  and  Investments.   Lend  or  advance  money,  credit or
      property to  any  Person, or  invest  in (by  capital  contribution  or
      otherwise), or  purchase or  repurchase the  stock or  indebtedness  or
      assets or  properties  of  any  Person,  or agree  to  do  any  of  the
      foregoing, other than in the ordinary course of business;

           f) Guarantees.    Assume, endorse  or  otherwise become  or remain
      liable in connection with the obligations (including accounts  payable)
      of any other Person, other than in the ordinary course of business.

           g) Sale  of  Assets, Dissolution,  Etc.  Transfer,  sell,  assign,
      lease or otherwise dispose of any  of its properties or assets, or  any
      assets or properties necessary or desirable  for the proper conduct  of
      its business, or transfer, sell, assign or otherwise dispose of any  of
      its accounts, or contract rights to any Person, or change the nature of
      its business, wind-up, liquidate  or dissolve, or agree  to any of  the
      foregoing, other than in the ordinary course of business;

           h)  Acquisition  of  Assets.  Agree to purchase, acquire, or lease
      of any  assets of  any Person,  other than  in the  ordinary course  of
      business;

           i) Compensation.  Increase the compensation of any of its officers
      or consultants making more than $100,000 per year, hire any relative of
      any officer, director or shareholder of the Company, or pay a bonus  to
      any such person.

           j) Subsidiaries.  Establish or  form a  partially or  wholly owned
      Subsidiary.  Sell,  transfer or assign  any interest  in the  Company's
      existing Subsidiaries.

           k) No  Further Issuance of  Securities.  Other  than in accordance
      herewith or with respect to an Exempt Issuance, create, issue or permit
      the issuance of any additional securities  of the Company or of any  of
      its  Subsidiaries   (including   with   respect   to   any   Qualifying
      Transaction), if any, or any rights, options or warrants to acquire any
      such securities;  provided, however,  that in  the event  that  Company
      desires to issue  securities with  preferences or  rights greater  than
      that which the Common  Stock has and the  Holder consents to same,  the
      Holder will then have the option of converting all or any part of  this
      Debenture into such stock in lieu of the Common Stock;

           l) No Dividends;  No Redemption.  Declare any dividend, pay or set
      aside for payment any dividend or  other distribution, in cash,  stock,
      or other  property,  or  make  any  payment  to  any  related  parties,
      including to any preferred stockholders, as a dividend, redemption,  or
      otherwise, other than the payment of salaries in the ordinary course of
      business.

           m) Stock  Splits.   Undertake a reverse  or forward stock split or
      reclassification of the Common Stock; or

           n)   Agreement.     Enter  into  any   agreement  obligating   the
      Company to undertake any of the matters set forth in this Section 5.

           Section 6.     Affirmative Covenants.  So  long as any portion  of
      this Debenture is outstanding and unless the Holder otherwise  consents
      in writing, which consent may be withheld in the sole discretion of the
      Holder, the Company will:

           a) Taxes and Liens.  Promptly pay, or cause to be paid, all taxes,
      assessments and other governmental charges which may lawfully be levied
      or assessed upon  the income  or profits of  the Company,  or upon  any
      property, real, personal or  mixed, belonging to  the Company, or  upon
      any part thereof, and  also any lawful claims  for labor, material  and
      supplies which if  unpaid, might become  a lien or  charge against  any
      such property; provided, however, the Company shall not be required  to
      pay any such  tax, assessment,  charge, levy or  claim so  long as  the
      validity thereof shall be  actively contested in  good faith by  proper
      proceedings; but,  provided  further  that any  such  tax,  assessment,
      charge, levy or claim shall be paid or bonded in a manner  satisfactory
      to the Holder  upon the commencement  of proceedings  to foreclose  any
      lien securing the same.

           b) Business  and Existence.   Do  or cause  to be  done all things
      necessary to preserve and to keep in full force and effect any licenses
      necessary to the business of the  Company, its corporate existence  and
      rights of its  franchises, trade names,  trademarks, and permits  which
      are reasonably  necessary  for the  continuance  of its  business;  and
      continue to engage  principally in the  business currently operated  by
      the Company.

           c) Insurance  and Properties.   Keep its business  and  properties
      insured at all  times with  responsible insurance  companies and  carry
      such types and  amounts of insurance  as are required  by all  federal,
      state and  local  governments  in the  areas  which  the  Company  does
      business and as are usually carried by entities engaged in the same  or
      similar business similarly  situated.  In  addition, the Company  shall
      maintain in full force  and effect policies  of liability insurance  in
      amounts at least equal to that currently in effect.

           d) Maintain Property and Assets.  Maintain its property and assets
      in good order and repair  and, from time to  time, make all needed  and
      proper repairs,  renewals,  replacements,  additions  and  improvements
      thereto,  so  that  the  business  carried  on  may  be  properly   and
      advantageously conducted  at  all  times  in  accordance  with  prudent
      business  management,  and  maintain  annually  adequate  reserves  for
      maintenance thereof.

           e) True  Books.  Keep  true books of  record and  account in which
      full, true and correct entries will be made of all of its dealings  and
      transactions, and  set aside  on  its books  such  reserves as  may  be
      required by  GAAP, consistently  applied, with  respect to  all  taxes,
      assessments, charges, levies and claims referred  to in (a) above,  and
      with respect to its business in  general, and include such reserves  in
      interim as well as year-end financial statements.

           f) Right  of  Inspection.   Permit  any person  designated  by the
      Holder, at  the Holder's  expense,  to visit  and  inspect any  of  the
      properties, books and  financial reports of  the Company,  all at  such
      reasonable times upon three (3) Business Days prior notice to  Company,
      and as often as the Holder may reasonably request, provided the  Holder
      does not  unreasonably  interfere  with the  daily  operations  of  the
      Company and Holder executes a confidentiality agreement.

           g) Observance  of Laws.   Conform  to and  duly observe  all laws,
      regulations and other  valid requirements of  any regulatory  authority
      with respect to the conduct of its business except those that would not
      cause a  Material  Adverse  Effect, as  determined  in  the  reasonable
      discretion of the Holder.

           h) Company's Knowledge of Default.  Upon an officer or director of
      the Company obtaining knowledge of, or  threat of, an Event of  Default
      hereunder, cause such  officer to promptly,  within no  more than  five
      Business Days,  deliver to  the Holder  notice thereof  specifying  the
      nature thereof, the period  of existence thereof,  and what action  the
      Company has taken and/or proposes to take with respect thereto.

           i) Notice  of Proceedings.   Upon  an officer  or director  of the
      Company obtaining  knowledge of  any  material litigation,  dispute  or
      proceedings being instituted or threatened against the Company, or  any
      attachment, levy, execution or  other process being instituted  against
      any assets of the  Company, cause such officer  to promptly, within  no
      more than five Business  Days, give the Holder  written notice of  such
      litigation, dispute, proceeding, levy, execution or other process.

           j) Certificate  of Covenant Compliance Within  30 days of the last
      day of each March, June, September and December, the Company will issue
      a Certificate  of Covenant  Compliance, executed  by either  the  Chief
      Executive Officer or Chief Financial Officer  in the form of Exhibit  A
      attached  hereto.  If  the  Company  is  not  in  compliance  with  the
      covenants specified  in this  Section 5,  the Company  will modify  the
      Certificate  of  Covenant  Compliance  by  stating  the  exception  and
      providing a detailed explanation of the non-compliance.

           k)   Payment of  Holder's  Expenses.   If  at any  time  or  times
      hereafter, Holder  employs counsel  to commence,  defend or  intervene,
      file a petition,  complaint, answer, motion  or other  pleading, or  to
      take  any  action  in  or  with  respect  to  any  suit  or  proceeding
      (bankruptcy or  otherwise)  relating to  this  Debenture or  any  other
      Transaction  Document,  or   any  other   agreement,  guaranty,   note,
      instrument or  document  heretofore,  now  or  at  any  time  or  times
      hereafter executed  by  the Company  and  delivered to  Holder,  or  to
      enforce any  rights of  Holder hereunder  whether before  or after  the
      occurrence  of  any  Event  of  Default,  or  to  collect  any  of  the
      Liabilities, then  in  any  of  such  events,  all  of  the  reasonable
      attorneys' fees arising from such services, and any expenses, costs and
      charges relating thereto, shall be part of the Liabilities, payable  on
      demand.

           l)   Financial Covenants.  As of the 75th date following the  date
      of this Agreement and thereafter continuing until the Termination Date,
      the Company must maintain the following ratios:

                (i)  Cash Interest Coverage. Until  this Debenture is  repaid
      in full, the  Company shall maintain  a Consolidated EBITDA   and  cash
      balance, including cash received from future financings, excluding cash
      required to pay down its debt  instruments due within 1 year, based  on
      any of the Company's quarterly  financial statements (as determined  on
      the last  day of  each fiscal  quarter  for the  immediately  preceding
      quarter), in an  amount that will  ensure payment of  all interest  due
      monthly  after  the  closing  date  and   after  the  closing  of   the
      Telenational transaction, until this debenture is paid in full.

                (ii) Current Ratio.  The  Company's current ratio, after  the
      completion of  the  Telenational transaction,  and  future  anticipated
      financings, will improve the Company's current ratio as compared to the
      Company's current ratio as  of the Closing Date.  .  The Current  Ratio
      shall be calculated  and tested quarterly  as of the  last day of  each
      fiscal quarter of the Company.

                (iii)     Actual versus  Budget.    The Company  shall  on  a
      quarterly basis achieve 75 percent of its budgeted revenue and  income.
      Budget numbers  shall be  those delivered  to Holder  contemporaneously
      herewith and then  on an annual  calendar basis.   It is understood  by
      both parties that Trident  Growth Fund has not  received a budget  from
      the Company, as  such information  is not  provided by  the Company  in
      connection with any financing transactions.

           Notwithstanding  the  foregoing,  the  achievement  of  the  above
      covenants as set  forth in  this Section  6(l) is  contingent upon  the
      closing of the  Telenational Communications, Inc.  transaction and  the
      anticipated future  financing of  at least  $5.0 million,  required  to
      close the transaction and provide the  necessary cash flow to pay  down
      the Company's  debt financings  as they  come due  within the  next  12
      months.   It is  understood  that the  Company  may not  achieve  these
      covenants if the financing it obtains is less than $5.0 million.

      Section 7.     Events of Default.

           a) "Event of  Default", wherever used herein, means any one of the
      following events (whatever the reason and whether it shall be voluntary
      or involuntary  or effected  by operation  of law  or pursuant  to  any
      judgment, decree  or  order  of  any  court,  or  any  order,  rule  or
      regulation of any administrative or governmental body):

                i. any default  in the payment of (A) the principal amount of
           any Debenture,  or  (B)  interest (including  Late  Fees)  on,  or
           liquidated damages in respect of, any Debenture, in each case free
           of any claim of subordination, as  and when the same shall  become
           due and payable (whether on the  Maturity Date or by  acceleration
           or otherwise);

                ii. the  Company shall fail  to observe or  perform any other
           covenant or agreement contained  in this Debenture  or any of  the
           other  Transaction  Documents  which  failure  is  not  cured,  if
           possible to cure, within the earlier  to occur of (A) 10  Business
           Days after notice  of such default  sent by the  Holder or by  any
           other holder  and (B)  10 Business  Days after  the Company  shall
           become or should have become aware of such failure;

                iii. a  default or event of default  (subject to any grace or
           cure period provided for in the applicable agreement, document  or
           instrument) shall occur under (A) any of the Transaction Documents
           or (B) any other material agreement, lease, document or instrument
           to which the Company or any Subsidiary is bound and not cured;

                iv. any representation  or warranty made herein, in any other
           Transaction Documents, in any written  statement  pursuant  hereto
           or  thereto,  or  in  any  other  report,  financial statement  or
           certificate made or delivered to the Holder or any other holder of
           Debentures shall be untrue or incorrect in any material respect as
           of the date when made or deemed made;

                v. there shall have occurred a Bankruptcy Event;

                vi. the Company or any Subsidiary shall default in any of its
           obligations  under  any  mortgage,   credit  agreement  or   other
           facility,  indenture  agreement,  factoring  agreement  or   other
           instrument under which there may be issued, or by which there  may
           be secured or  evidenced any  indebtedness for  borrowed money  or
           money due under any long term leasing or factoring arrangement  of
           the  Company  in  an  amount  exceeding  $100,000,  whether   such
           indebtedness now exists  or shall  hereafter be  created and  such
           default shall  result  in  such  indebtedness  becoming  or  being
           declared due  and payable  prior to  the date  on which  it  would
           otherwise become due and payable.

                vii. the  Company shall be  a party to  any Change of Control
           Transaction or  Fundamental Transaction,  shall agree  to sell  or
           dispose of all or in excess  of 33% of its  assets in one or  more
           transactions (whether or not such  sale would constitute a  Change
           of Control  Transaction) or  shall redeem  or repurchase  any  its
           outstanding shares of Common Stock or Common Stock Equivalents;

                viii. the  Company shall fail to  have available a sufficient
           number of  authorized and  unreserved shares  of Common  Stock  to
           issue to such Holder upon exercise of the Warrants in full and not
           remedied as permitted in the Transaction Documents;

                ix. the  Company  shall  redeem  any  of   the  Common  Stock
           Equivalents;

                x. upon the reasonable determination by the Holder that there
           has been a Material Adverse Effect; or

                xi. the  occurrence  of  an  Activity  Event  of  Default (as
           defined in Section 5.1(f)(ii) of the Purchase Agreement);

           b) Remedies Upon Event of Default. If any Event of Default occurs,
      the full principal amount of this Debenture, together with interest and
      other amounts owing  in respect thereof,  to the  date of  acceleration
      shall become, at the Holder's election, immediately due and payable  in
      cash.   Commencing  30  days  after  the  occurrence  of any  Event  of
      Default, the interest rate on this Debenture shall, while such Event of
      Default is continuing,  accrue at the  rate of 18%  per annum, or  such
      lower  maximum  amount  of  interest  permitted  to  be  charged  under
      applicable law.   All Debentures for  which the  full principal  amount
      hereunder shall have been paid in accordance herewith shall promptly be
      surrendered to or  as directed  by the Company.   The  Holder need  not
      provide and the Company hereby waives any presentment, demand,  protest
      or other notice of any kind, and the Holder may immediately and without
      expiration of any grace  period enforce any and  all of its rights  and
      remedies hereunder  and  all  other  remedies  available  to  it  under
      applicable law.   Such  declaration may  be rescinded  and annulled  by
      Holder at any time prior to payment hereunder and the Holder shall have
      all rights as a Debenture holder until  such time, if any, as the  full
      payment under this  Section shall have  been received by  it.  No  such
      rescission or annulment shall affect any subsequent Event of Default or
      impair any right consequent thereon.

      Section 8.     Miscellaneous.

           a)   Notices.   Any and  all notices  or other  communications  or
      deliveries to be provided by the  Holder hereunder shall be in  writing
      and delivered personally, by facsimile, sent by a nationally recognized
      overnight courier service, addressed to the Company, at the address  or
      facsimile number set forth on the signature page hereto, or such  other
      address or  facsimile  number  as the  Company  may  specify  for  such
      purposes by notice  to the Holders  delivered in  accordance with  this
      Section.  Any and all notices or other communications or deliveries  to
      be provided by the Company hereunder shall be in writing and  delivered
      personally, by  facsimile, sent  by a  nationally recognized  overnight
      courier service  addressed to  the Holder  at the  facsimile number  or
      address of  the  Holder appearing  herein,  or such  other  address  or
      facsimile number  as the  Holder may  specify in  accordance with  this
      Section.  Any  notice or  other communication  or deliveries  hereunder
      shall be deemed given and effective on the earliest of (i) the date  of
      transmission,  if  such  notice  or  communication  is  delivered   via
      facsimile at the facsimile telephone number specified on the  signature
      page hereto prior  to 5:30  p.m. (Dallas,  Texas time),  (ii) the  date
      after the  date of  transmission, if  such notice  or communication  is
      delivered via facsimile at the facsimile telephone number specified  on
      the signature page hereto later than 5:30 p.m. (Dallas, Texas time)  on
      any date and earlier than 11:59 p.m. (Dallas, Texas time) on such date,
      (iii) the second Business Day following the date of mailing, if sent by
      nationally recognized overnight  courier service, or  (iv) upon  actual
      receipt by the party to whom such notice is required to be given.

           b) Absolute  Obligation. Except  as expressly  provided herein, no
      provision of this Debenture shall alter or impair the obligation of the
      Company, which is absolute and unconditional, to pay the principal  of,
      interest and  liquidated damages  (if any)  on, this  Debenture at  the
      time, place, and rate, and in the coin or currency, herein  prescribed.
      This Debenture  is a  direct  debt obligation  of  the Company.    This
      Debenture ranks pari passu with all  other Debentures now or  hereafter
      issued under the terms set forth herein.

           c) Security Interest.   This Debenture is a direct debt obligation
      of the Company and, pursuant to the Security Documents, is secured by a
      first priority security interest  in all of the  assets of the  Company
      other than  those assets  not already  pledged  to the  Global  Capital
      Companies as security for prior loans made.

           d) Lost  or  Mutilated  Debenture.   If  this  Debenture  shall be
      mutilated, lost, stolen  or destroyed,  the Company  shall execute  and
      deliver, in exchange and  substitution for and  upon cancellation of  a
      mutilated Debenture,  or in  lieu of  or in  substitution for  a  lost,
      stolen or destroyed Debenture, a new Debenture for the principal amount
      of this Debenture so mutilated, lost, stolen or destroyed but only upon
      receipt of  evidence  of  such  loss,  theft  or  destruction  of  such
      Debenture, and of  the ownership hereof,  and indemnity, if  requested,
      all reasonably satisfactory to the Company.

           e) Governing  Law.    All questions  concerning  the construction,
      validity, enforcement  and interpretation  of this  Debenture shall  be
      governed by and construed and enforced in accordance with the  internal
      laws of  the  State of  Texas,  without  regard to  the  principles  of
      conflicts of law thereof.  Each party agrees that all legal proceedings
      concerning  the  interpretations,  enforcement   and  defense  of   the
      transactions contemplated by any of the Transaction Documents  (whether
      brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced in  the
      state and federal  courts sitting  in the  City of  Dallas, Texas  (the
      "Dallas Courts").  Each party hereto hereby irrevocably submits to  the
      exclusive jurisdiction of the Dallas Courts for the adjudication of any
      dispute hereunder or  in connection  herewith or  with any  transaction
      contemplated hereby or discussed herein (including with respect to  the
      enforcement  of  any   of  the  Transaction   Documents),  and   hereby
      irrevocably waives, and  agrees not to  assert in any  suit, action  or
      proceeding, any  claim  that  it  is  not  personally  subject  to  the
      jurisdiction of any such court, or  such Dallas Courts are improper  or
      inconvenient venue for such proceeding.  Each party hereby  irrevocably
      waives personal service of process and consents to process being served
      in any such suit,  action or proceeding by  mailing a copy thereof  via
      registered or certified  mail or overnight  delivery (with evidence  of
      delivery) to such  party at  the address in  effect for  notices to  it
      under this Debenture and agrees that such service shall constitute good
      and  sufficient  service  of  process  and  notice  thereof.    Nothing
      contained herein shall be deemed to limit in any way any right to serve
      process in  any  manner permitted  by  law. Each  party  hereto  hereby
      irrevocably waives, to the fullest extent permitted by applicable  law,
      any and all right to trial by jury in any legal proceeding arising  out
      of or  relating  to this  Debenture  or the  transactions  contemplated
      hereby. If  either party  shall commence  an  Action or  Proceeding  to
      enforce any provisions of this Debenture, then the prevailing party  in
      such action or proceeding  shall be reimbursed by  the other party  for
      its attorneys  fees and  other costs  and  expenses incurred  with  the
      investigation,  preparation   and  prosecution   of  such   Action   or
      Proceeding.

           f) Waiver.  Any waiver by the Company or the Holder of a breach of
      any provision of this Debenture shall not operate as or be construed to
      be a waiver of any other breach of  such provision or of any breach  of
      any other provision of this Debenture.   The failure of the Company  or
      the Holder  to  insist  upon  strict adherence  to  any  term  of  this
      Debenture on one or more occasions shall not be considered a waiver  or
      deprive that  party  of the  right  thereafter to  insist  upon  strict
      adherence to that term or any other term of this Debenture.  Any waiver
      must be in writing.

           g) Severability.   If any provision  of this Debenture is invalid,
      illegal or unenforceable, the balance of this Debenture shall remain in
      effect,  and  if  any  provision  is  inapplicable  to  any  person  or
      circumstance, it  shall nevertheless  remain  applicable to  all  other
      persons and circumstances.  If it  shall be found that any interest  or
      other amount  deemed interest  due hereunder  violates applicable  laws
      governing usury, the  applicable rate of  interest due hereunder  shall
      automatically be  lowered  to  equal  the  maximum  permitted  rate  of
      interest.

           h) Next  Business Day.   Whenever any payment  or other obligation
      hereunder shall be due on a day other than a Business Day, such payment
      shall be made on the next succeeding Business Day.

           i) Headings.   The headings  contained herein  are for convenience
      only, do  not constitute  a part  of this  Debenture and  shall not  be
      deemed to limit or affect any of the provisions hereof.

           j) Usury.  To the extent it may lawfully do so, the Company hereby
      waives and  agrees  not  to insist  upon  or  plead or  in  any  manner
      whatsoever claim, and will resist any  and all efforts to be  compelled
      to take the benefit or advantage  of, usury laws wherever enacted,  now
      or at any time hereafter in force, in connection with any claim, action
      or proceeding that may be brought by any Purchaser in order to  enforce
      any right or remedy under  any Transaction Documents.   Notwithstanding
      any provision to the contrary  contained in any Transaction  Documents,
      it is expressly  agreed and provided  that the total  liability of  the
      Company under the Transaction Documents for  payments in the nature  of
      interest shall not exceed the Maximum  Rate, and, without limiting  the
      foregoing, in no event shall any rate of interest or default  interest,
      or both of them, when aggregated with  any other sums in the nature  of
      interest that the Company may be obligated to pay under the Transaction
      Documents exceed such Maximum Rate.   It is agreed that if the  maximum
      contract rate  of  interest  allowed  by  law  and  applicable  to  the
      Transaction Documents  is  increased or  decreased  by statute  or  any
      official governmental action  subsequent to  the date  hereof, the  new
      maximum contract rate of  interest allowed by law  will be the  Maximum
      Rate applicable to the Transaction Documents from the effective date of
      such increase or decrease forward, unless such application is precluded
      by applicable law.  If under any circumstances whatsoever, interest  in
      excess of the Maximum Rate is paid by the Company to any Purchaser with
      respect  to  indebtedness,  if   any,  evidenced  by  the   Transaction
      Documents, such excess shall be applied by such Purchaser to the unpaid
      principal balance  of  any such  indebtedness  or be  refunded  to  the
      Company, the manner of handling such  excess to be at such  Purchaser's
      election in the event any principal amount remains outstanding.

           (k)  Amendment.  This Agreement  may not be amended,  supplemented
      or modified, except by  an agreement in writing  signed by each of  the
      parties hereto.

                           [Signature Page Follows]

      IN WITNESS WHEREOF, the  Company has caused this  Debenture to be  duly
 executed by a duly authorized officer as of the date first above indicated.

 COMPANY

 RAPID LINK INCORPORATED                 Address for Notice and Delivery:
                                         17383 Sunset Boulevard
                                         Suite 350
                                         Pacific Palisades, California  90272
                                         Telephone:  (310) 566-1700
                                         Facsimile:  (310) 573-9435
                                         Attn: John Jenkins, CEO

 By:____________________________________
    Name:  John Jenkins
    Title: Chief Executive Officer

<PAGE>

                                  EXHIBIT A

      I, the undersigned, hereby represent that Rapid Link Incorporated is in
 compliance with all of its covenants specified  in Sections 5 and 6 of  that
 certain 10% Secured Convertible  Debenture originally dated  as of March  8,
 2006, executed by Rapid Link Incorporated, in favor of Trident Growth  Fund,
 L.P.

                         RAPID LINK INCORPORATED

                         By:____________________________________
                            Name:
                            Title:

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