Document:

DATED                                                   9th March 2000

                                SERVICE AGREEMENT
                                   relating to

                         EUROTELECOM COMMUNICATIONS INC
                          [DIRECTOR SERVICE AGREEMENT]

EUROTELECOM COMMUNICATIONS INC                                            (1)

DAVID ANTHONY WALTON                                                      (2)

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DATE

9th March           2000

         PARTIES

(1)      EuroTelecom Communications Inc whose principal office is at F4
         Mexborough Business Centre, College Road, Mexborough, South Yorkshire
         S64 9JP ("the Company")

(2)      David Anthony Walton of 4 Malmesbury Close, Poynton, Cheshire SK12 1SE
         ("the Executive")

         INTERPRETATION

(1)      In this Agreement, unless the context otherwise requires, the following
         expressions have the meanings set out below:

         Admission                  admission of the ordinary shares of 5p each
                                    in the capital of the Company to the
                                    Alternative Investment Market ("AIM") first
                                    becoming effective as laid down by paragraph
                                    16.6 of the AIM Rules of the London Stock
                                    Exchange;

         the Appointment            the employment of the Executive pursuant to
                                    this Agreement;

         the Board                  the board of directors of the Company for
                                    the time being (including any committee of
                                    the Board);

         the Commencement Date      Admission or such other date on which
                                    Admission takes place being no later than 30
                                    April 2000;

         Confidential Information   all information which may be imparted in
                                    confidence or be of a confidential nature
                                    relating to the business or prospective
                                    business, current or projected plans or
                                    internal affairs of the Company or any Group
                                    Company and, in particular, but not limited
                                    to all Know-how, Marketing Information,
                                    trade secrets, unpublished information
                                    relating to the Company's or any Group
                                    Company's intellectual property and any
                                    other commercial, financial or technical
                                    information relating to the business or
                                    prospective business of the Company or any
                                    Group Company or to any customer or
                                    potential customer or supplier or potential
                                    supplier, licensee, officer or employee of
                                    the Company or any Group Company or to any
                                    member or person interested in the share
                                    capital of the Company or any Group Company;

         Documents                  documents, disks, memory, notebooks, tapes
                                    or any other medium, whether or not
                                    eye-readable, on which information (whether
                                    confidential or otherwise) may from time to
                                    time be referred to, written or recorded;

         the ERA                    the Employment Rights Act 1996;

         Group                      all companies being any of a subsidiary or
                                    subsidiary undertaking of the Company or a
                                    holding company or parent undertaking of the
                                    Company or a subsidiary or subsidiary
                                    undertaking of any such holding company or
                                    parent undertaking;

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         Group Company              any company within the Group and references
                                    to the "Group Companies" shall be construed
                                    accordingly;

         Key Employee               any employee who is or was (in the Period)
                                    employed to the knowledge of the Executive:-

                                    (a) at management grade; or

                                    (b) in a senior capacity; or

                                    (c) in a capacity in which he has access to
                                        or obtained Confidential Information;

         Know-how                   information (including without limitation
                                    that comprised in formulae, specifications,
                                    designs, drawings, component lists,
                                    databases, software (or pre-cursor
                                    documents), databases, manuals, instructions
                                    and catalogues) held in whatever form
                                    relating to the creation, production or
                                    supply of any products or services by the
                                    Company or any Group Company, or by or to
                                    any of the suppliers, customers, partners or
                                    joint venturers of such company;

         Marketing Information      information relating to the current or
                                    prospective marketing or sales of any
                                    products or services of the Company or any
                                    Group Company, including lists of customers'
                                    and suppliers' names, addresses and
                                    contacts, sales targets and statistics,
                                    market share and pricing statistics,
                                    marketing surveys, research and reports and
                                    advertising and promotional material;

         Period                     the period of 12 months immediately
                                    preceding the Termination Date;

         Permitted Interest         an interest in any class of shares or other
                                    securities of any company which are traded
                                    on a recognised investment exchange which
                                    amount to not more than 3% of such class of
                                    issued shares or securities or an interest
                                    in such traded shares or securities as
                                    notified to and permitted by the Board (not
                                    a committee) and an interest in any units of
                                    any authorised unit trust;

         Remuneration Committee     a committee of the Board which determines
                                    the annual salary, any bonuses and other
                                    remuneration payable to the Executive and
                                    other members of the Board and of which a
                                    majority consists of non-executive
                                    directors; and

         Termination Date           the date of termination or expiration of the
                                    Appointment.

(2)      The expressions "subsidiary" and "holding company" have the meanings
         given to them by Sections 736 and 736A of the Companies Act 1985; the
         expressions "parent undertaking" and "subsidiary undertaking" have the
         meanings given to them by Sections 258, 259 and 260 of the Companies
         Act 1985; and the expression "financial year" has the meaning given by
         Section 223 of the Companies Act 1985.

(3)      The provisions of Sections 324 and 328 of the Companies Act 1985 apply
         in determining for the purpose of Clauses 8 and 9 whether the Executive
         has an interest in any shares or other securities.

(4)      References to Clauses, Parties, and the Schedules are respectively to
         Clauses of and the Parties and the Schedules to this Agreement.

                                      -3-
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(5)      References to any enactment are to be construed as referring also to
         any enactment or re-enactment thereof (whether before or after the date
         hereof), and to any previous enactment which such enactment has
         replaced (with or without amendment provided that the amendment does
         not change the law as at the date hereof) and to any regulation or
         order made thereunder.

(6)      The clause headings are for ease of reference only and shall not affect
         the interpretation of this Agreement.

         OPERATIVE PROVISIONS

1        JOB TITLE

         The Company shall employ the Executive and the Executive shall serve
         the Company as Chief Operating Officer or in such other capacity as the
         Board may reasonably require.

2        PERIOD OF EMPLOYMENT

2.1      The Appointment shall be deemed to have commenced on the Commencement
         Date and, unless terminated earlier under Clause 12, will continue
         until terminated by either party giving to the other not less than 12
         months' notice in writing to expire at any time.

2.2      The Company (and any relevant Group Company) shall not be obliged to
         provide work to the Executive at any time after notice of termination
         of the Appointment shall have been given by either party under any of
         the provisions of this Agreement and the Company may, in its
         discretion, take any one or more of the following steps in respect of
         all or part of an unexpired period of notice:

         (a)      require the Executive to comply with such conditions as it may
                  specify in relation to attending at, or remaining away from,
                  the place(s) of business of the Company and the Group
                  Companies; and / or

         (b)      pay the Executive his fixed salary entitlement in lieu of all
                  or any part of the unexpired period of notice (subject to
                  deduction at source of income tax and applicable national
                  insurance contributions).

2.3      If the Executive fails to make himself available to work during any
         period of notice of termination of the Appointment other than at the
         request or with the permission of the Board, the Company reserves the
         right to deduct one day's salary for each day of absence during such
         notice period.

2.4      Subject to clause 2.5, if during the Appointment the Executive shall be
         removed from his office as a director of the Company pursuant to any
         power in that behalf given to the Board or to the members of the
         Company by law or by the Articles of Association of the Company, or if
         he shall retire from his office as a director of the Company by
         rotation and shall not be re-elected, such event will not be deemed to
         be a breach of this Agreement, and the job title of the Executive shall
         be altered appropriately.

2.5      If the Executive shall cease by reason of his own act or default to be
         a director of the Company he shall be deemed to be in breach of this
         Agreement.

3        DUTIES

3.1      During the term of the Appointment, the Executive shall have (in
         addition to his implied duty of fidelity and his duties as a director
         at law) the following duties and obligations:

         (a)      at all times to use all reasonable endeavours to promote the
                  interests and welfare and maintain the goodwill of the Company
                  and any other Group Company and not to do and to exercise all
                  reasonable endeavours to prevent there being done anything
                  which may be prejudicial or detrimental to the Company or any
                  Group Company;

         (b)      faithfully and diligently to perform his duties and to
                  exercise and carry out such powers and functions as may from
                  time to time be vested in him by or under the authority of the
                  Board;

         (c)      to devote the whole of his time and attention, with the
                  ability to organise his own affairs having regard to the
                  interests of the Company or any other Group Company, and
                  devote the full benefit of his knowledge, expertise and skills
                  in the proper performance of his duties (unless on holiday as
                  permitted by this Agreement or prevented by ill-health or
                  accident);

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         (d)      to give (in writing if so requested) to the Board, or to such
                  person(s) as it may direct, such information and explanations
                  regarding the affairs of the Company or any other Group
                  Company or matters relating to the Appointment as the Board
                  may require; and

         (e)      to comply with any applicable code relating to dealings in
                  securities of the Company including, without limitation, the
                  "Model Code" as set out in the Rules of the London Stock
                  Exchange and the City Code on Takeover and Mergers, all lawful
                  directions from time to time given to him by or under the
                  authority of the Board and, save as inconsistent with the
                  express terms of this Agreement, all applicable rules and
                  regulations from time to time laid down by the Company
                  concerning its employees;

         (f)      comply with the provisions of Chapter 16 of the Rules of the
                  London Stock Exchange relating to a Company listed on the
                  Alternative Investment Market;

         (g)      to comply with the provisions of Schedule 1 (Copyright and
                  Inventions); and

         (h)      to comply with US securities laws, federal laws and the laws
                  of the state of Delaware.

3.2      The Executive shall attend and work at any of the places of business of
         the Company and/or the Group as determined from time to time by the
         Board and shall travel to and work at such places (whether within or
         outside the United Kingdom) in the manner and on the occasions required
         from time to time by the Board.

3.3      The Board may require the Executive to perform services for any Group
         Company wherever situated and without further fees or remuneration and
         to enter into any separate agreement(s) with such Group Company for
         such purpose and any duties that he may have under this Agreement will
         be deemed to extend to such Group Company, provided that this does not
         interfere with the proper performance of the Executive's duties as
         of the Company.

3.4      The hours of work of the Executive are not fixed but are the usual
         working hours of the Company and such additional hours as may be
         necessary to enable him properly to discharge his duties. The Executive
         acknowledges that he may be required to work more than forty eight
         hours in a week.

3.5      The Company may at any time appoint another person or persons to act
         jointly with the Executive in discharging his duties.

3.6      The Executive shall:

         (a)      at the request and expense of the Company, submit annually to
                  a medical examination by a medical practitioner nominated by
                  the Company as part of a health screening programme and for
                  insurance purposes; and

         (b)      authorise such medical practitioner to disclose to or discuss
                  with the Company's medical adviser any matters arising from
                  such examination; and the Company's medical adviser may notify
                  the other directors of the Company of any serious matter if,
                  in his opinion, it might materially and adversely affect the
                  health of the Executive or the proper discharge of his duties.

4        PAY AND EXPENSES

4.1      The Company shall pay to the Executive for the proper performance of
         his duties under this Agreement a fixed salary at the rate of
         (pound)72,000 per annum (or such higher rate as the Company may from
         time to time notify in writing to the Executive).

4.2      The Company intends to operate a discretionary bonus scheme which is to
         be approved by the Remuneration Committee. The Executive shall be
         entitled to participate in such scheme.

4.3      The fixed salary of the Executive will:

         (a)      accrue from day to day and be payable by equal quarterly
                  instalments in arrears by not later than the last working day
                  of the month at the end of such quarter;

         (b)      notwithstanding anything to the contrary contained in the
                  Articles of Association of the Company or of any other Group
                  Company, be inclusive of any other fees or remuneration of any
                  description which the Executive might be entitled to receive
                  from the Company or any Group Company or any other company or
                  association in which he holds office as a nominee or
                  representative of the Company or any Group Company (and the
                  Executive shall, at the discretion of the Board, either waive
                  his right to any such remuneration or account to the Company
                  for the same forthwith upon receipt);

                                      -5-
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         (c)      be paid by credit transfer to the account nominated by the
                  Executive from time to time; and

         (d)      be capable of set off by the Company from time to time against
                  any liability of the Executive to the Company.

4.4      Subject to clause 4.5, the fixed salary shall be reviewed by the
         Remuneration Committee in the month of July each year. Increases are
         not automatic but will be based on individual merit and performance.

4.5      The Executive hereby authorises the Company to deduct from any
         remuneration accrued and due to him under the terms of this Agreement
         (whether or not actually paid during the Appointment) or from any pay
         in lieu of notice:

         (a)      any overpayment of salary or expenses or payment made to the
                  Executive by mistake or through any misrepresentation;

         (b)      any debt owed by the Executive to the Company or any Group
                  Company;

         (c)      any other sum or sums which may be required to be authorised
                  pursuant to Section 13 of the ERA; and

         (d)      any tax or Social Security contributions due in respect of
                  remuneration or any other monies received or receivable by the
                  Executive from the Company.

4.6      The Company shall repay to the Executive all reasonable travelling,
         hotel and other expenses properly incurred by him in or about the
         performance of his duties, subject to the Executive having delivered to
         the Company such form(s) and vouchers or other evidence of actual
         payment of such expenses as the Company may from time to time require.
         The decision of the Board as to what constitutes reasonable expenses
         shall be conclusive.

5        OTHER BENEFITS

5.1      If the Company adopts a Company car policy, then until notice of
         termination of the Appointment is given under Clauses 2 or 12 and
         subject to the Executive holding and continuing to hold a full driving
         licence, the Remuneration Committee may decide to provide the
         Executive:-

         (a)      a motor car of a type to be agreed between the Executive and
                  the Remuneration Committee for use by him in accordance with
                  the Company's car policy in force from time to time; or

         (b)      with a contract hire allowance for a suitable motor car at a
                  rate to be set by the Remuneration Committee and this
                  allowance will include maintenance, repairs, motor tax and
                  insurance but may exclude business mileage.

5.2      The Executive shall be entitled to participate, at the Company's
         expense, in any permanent health insurance scheme as the Remuneration
         Committee may decide to set up and provide from time to time subject to
         the Company's right to terminate or substitute other schemes for such
         schemes and subject to clause 12.1(a).

5.3      The Executive shall be entitled to participate, at the Company's
         expense in such medical insurance and life insurance scheme as the
         Remuneration Committee may decide to set up and provide from time to
         time subject to the rules of such scheme.

5.4      The Executive shall be entitled to become a member of the Company
         Pension Scheme which the Remuneration Committee may decide to set up.

5.5      Any benefits which may from time to time be provided by the Company or
         any other Group Company to the Executive or his family which are not
         expressly referred to in this Agreement shall be provided at the entire
         discretion of the Company and, unless so agreed in writing, shall not
         form part of the Executive's terms and conditions of employment.

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5.6      Should the Executive's employment be terminated for whatever reason the
         Company reserves the right:

         (a)      to make a cash allowance in lieu of the benefits to which the
                  Executive is entitled for any period of notice; or

         (b)      to make provision for the continuation of such benefits for
                  that period;

         or partly the one and partly the other. The provision of benefits
         pursuant to paragraph (b) above will cease immediately should the
         Executive commence new employment at any time prior to the expiry of
         the notice period.

6        HOLIDAY

6.1      In addition to the usual public and bank holidays, the Executive shall
         be entitled to 25 days' paid holiday in each complete holiday year
         worked (and pro rata for part of each holiday year worked) to be taken
         at such time or times as shall be agreed by the Board.

6.2      The holiday year runs from 1 January each year to the following 31
         December. No holiday entitlement may be carried forward from one
         holiday year to the next and no money will be paid in lieu of any such
         untaken holiday entitlement.

6.3      Upon termination of the Appointment, other than pursuant to Clause
         12.1, the Executive's entitlement to holiday will be calculated on the
         basis of 2.1 working days for each calendar month of service completed
         during the holiday year in which termination occurs and payment in lieu
         of untaken holiday entitlement may be made at the discretion of the
         Board.

7        CONFIDENTIALITY

7.1      Neither during the continuance of the Appointment, other than in the
         proper course of his duties and for the benefit of the Company, nor
         after the Termination Date for any reason whatsoever, shall the
         Executive:

         (a)      use, disclose or communicate to any person any Confidential
                  Information which he shall have come to know or have received
                  or obtained at any time (before or after the date of this
                  Agreement) by reason of or in connection with his service with
                  the Company; or

         (b)      copy or reproduce in any form or by or on any media or device
                  or allow others access to or to copy or reproduce Documents
                  containing or referring to Confidential Information.

7.2      The Executive acknowledges that all Documents containing or referring
         to Confidential Information at any time in his control or possession
         are and shall at all times remain the absolute property of the Company
         and the Executive undertakes, both during the Appointment and after the
         Termination Date:

         (a)      to exercise due care and diligence to avoid any unauthorised
                  publication, disclosure or use of Confidential Information and
                  any Documents containing or referring to it;

         (b)      at the direction of the Board, to deliver up any Confidential
                  Information (including all copies of all Documents whether or
                  not lawfully made or obtained) or to delete Confidential
                  Information from any re-usable medium; and

         (c)      to do such things and sign such documents at the expense of
                  the Company as shall be reasonably necessary to give effect to
                  this Clause and/or to provide evidence that it has been
                  complied with.

7.3      The restrictions in Clause 7.1:

         (a)      will not restrict the Executive from disclosing (but only to
                  the proper recipient) any Confidential Information which the
                  Executive is required to disclose by law or any order of the
                  court or any relevant regulatory body, provided that the
                  Executive shall, unless obliged by law, have given prior
                  written notice to the Company of the requirement and of the
                  information to be disclosed and allowed the Company an
                  opportunity to comment on the requirement before making the
                  disclosure; and

         (b)      will not apply to Confidential Information which is or which
                  comes into the public domain otherwise than as a result of an
                  unauthorised disclosure by the Executive or any other person
                  who owes the Company an obligation of confidentiality in
                  relation to the information disclosed.

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7.4      Nothing in this Agreement shall restrict the rights of the Executive to
         make a Protected Disclosure under the ERA. If the Executive has a
         particular grievance, concern, disclosure or information of a
         particularly sensitive nature or has reasonable grounds to believe that
         the Company has committed a crime, a breach of its legal obligations, a
         miscarriage of justice or a breach of health and safety or
         environmental legislation, the Executive should raise this in the first
         instance with a non-executive director of the Executive's choice.

7.5      The Executive agrees that the restrictions set out in this Clause 7 are
         without prejudice to any other duties of confidentiality owed to the
         Company whether express or implied and are to survive the termination
         of the Appointment.

8        RESTRICTIONS DURING EMPLOYMENT

8.1      Save as permitted under Clause 8.2, the Executive shall not during the
         Appointment carry on or be concerned, engaged or interested directly or
         indirectly (whether as principal, shareholder, partner, employee,
         officer, agent or otherwise) in any trade or business other than that
         of the Company and shall not engage in any other activity which the
         Company reasonably considers may impair his ability to perform his
         duties under this Agreement.

8.2      The Executive may:

         (a)      hold a Permitted Interest; and/or

         (b)      carry on or be concerned, engaged or interested in any other
                  trade or business if he shall have:

                  (i)      provided, on the basis of the utmost good faith, full
                           particulars of its nature and of the likely demands
                           it will make on his time and abilities;

                  (ii)     obtained the prior written consent of the Board,
                           which consent may be given subject to such terms or
                           conditions as it may decide (each of which shall be
                           considered to be a term of this Agreement) and the
                           Company shall have the right to reconsider the
                           consent or the terms if it reasonably considers that
                           it is in the interests of the Company to do so; and

                  (iii)    if required by the Company at any time, provide full
                           details of such hours as he may spend on its business
                           to enable the Company to comply with the requirements
                           of the Working Time Regulations 1998.

8.3      The Executive shall not during the Appointment (save in a purely social
         capacity or with the prior written consent of the Board) make any
         contact, whether formal or informal, written or oral, with any of the
         Company's past, current or prospective suppliers, customers or clients
         with whom the Executive has had business dealings (directly or
         indirectly) for any purpose (including but not limited to an intention
         to set up a competing business or to seek employment) other than for
         the legitimate business interests of the Company.

8.4      The Executive shall not during the Appointment either on his own behalf
         or on behalf of any person, firm or company:

         (a)      solicit or endeavour to entice away from the Company an actual
                  employee, or discourage from being employed by the Company any
                  person who, to the knowledge of the Executive, is an employee
                  or a prospective employee of the Company; or

         (b)      employ or procure another person to employ any such person.

8.5      The restrictions set out in this Clause 8 are without prejudice to any
         other fiduciary duties owed to the Company whether express or implied.

9        RESTRICTIONS AFTER EMPLOYMENT

9.1      The Executive shall not, save in respect of a Permitted Interest or
         with the prior written consent of the Board (which shall not be
         unreasonably withheld), for a period of 6 months from the Termination
         Date carry on or be concerned or engaged or interested directly or
         indirectly (whether as principal, shareholder, partner, employee,
         officer, agent or otherwise) in any trade or business which competes
         with any trade or business carried on by the Company in which the
         Executive shall have been actively engaged or involved at any time
         during the Period.

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9.2      The Executive shall not for a period of 6 months from the Termination
         Date either on his own behalf or on behalf of any person, firm or
         company in relation to the business activities of the Company in which
         the Executive has been engaged or involved, directly or indirectly:

         (a)      solicit, approach or offer goods or services to or entice away
                  from the Company any person, firm or company who was a client
                  or customer of the Company during the Period with whom the
                  Executive has been actively engaged or involved by virtue of
                  his duties hereunder during the Period; or

         (b)      deal with or accept custom from any person, firm or company
                  who was a client or customer of the Company during the Period
                  with whom the Executive has been actively engaged or involved
                  by virtue of his duties hereunder during the Period; or

         (c)      solicit or approach or offer goods or services to or entice
                  away from the Company any person, firm or company who was a
                  supplier, agent or distributor of the Company during the
                  Period with whom the Executive has been actively engaged or
                  involved by virtue of his duties hereunder during the Period;
                  or

         (d)      deal with or interfere with any person, firm or company who
                  was a supplier, agent or distributor of the Company during the
                  Period and in each case with whom the Executive has been
                  actively engaged or involved by virtue of his duties hereunder
                  during the Period;

         PROVIDED THAT nothing contained in these paragraphs (a) to (d) shall
         prohibit the Executive from carrying out any activities which are not
         in competition with any part of the business of the Company with which
         the Executive was involved in the Period.

9.3      The Executive shall not for a period of 6 months from the Termination
         Date either on his own behalf or on behalf of any person, firm or
         company in relation to the business activities of the Company in which
         the Executive has been engaged or involved, directly or indirectly,
         approach, solicit, endeavour to entice away, employ, offer employment
         to or procure the employment of any person who is or was a Key Employee
         with whom the Executive has had dealings during the Period whether or
         not such person would commit any breach of his contract of employment
         by reason of so leaving the service of the Company or otherwise.

9.4      The Executive shall not, at any time after the Termination Date, either
         on his own behalf or on behalf of any other person, firm or company
         directly or indirectly:

         (a)      interfere or seek to interfere with the continuance, or any of
                  the terms, of the supply of goods or services to the Company;
                  or

         (b)      represent himself as being in any way connected with or
                  interested in the business of the Company (other than as a
                  consultant or a member if such be the case) [or use any name
                  which is identical or similar to or likely to be confused with
                  the name of the Company or any product or service produced or
                  provided by the Company or which might suggest a connection
                  with the Company.

9.5      For the avoidance of doubt the period of the restrictions in these
         Clauses 9.1, 9.2(a), 9.2(b), 9.2(c), 9.2(d), 9.3 and 9.4 shall be
         reduced by the period, if any, spent by the Executive during which the
         Executive is precluded from attending at the Company's premises, from
         contacting clients, customers, suppliers or agents of the Company and
         is not in receipt of Confidential Information in accordance with Clause
         2.2(a).

9.6      The Executive (who acknowledges that, in the course of the Appointment,
         he is likely to have dealings with the clients, customers, suppliers
         and other contacts of the Company) agrees that each of the restrictions
         in Clauses 9.1, 9.2(a), 9.2(b), 9.2(c), 9.2(d), 9.3 and 9.4 is separate
         and distinct, is to be construed separately from the other
         restrictions, and is reasonable as regards its duration, extent and
         application for the protection of the legitimate business interests of
         the Company. However, in the event that any such restriction shall be
         found to be void or unenforceable but would be valid or enforceable if
         some part or parts of it were deleted, the Executive agrees that such
         restriction shall apply with such deletions as may be necessary to make
         it valid and effective.

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10       RELEVANT DEFINITIONS

         For the purposes of the restrictions set out in Clauses 7, 8 and 9:

         (a)      the expression "Company" shall include any former owner or
                  transferor of a business acquired by the Company by which the
                  Executive shall have been employed under a contract of
                  employment in respect of which his service is included for the
                  purposes of calculating continuous employment with the
                  Company;

         (b)      any reference to the Company and to the Company's trade or
                  business shall be deemed to include any Group Company and its
                  trade or business and/or to apply to them as if the words were
                  repeated by reference to such company insofar as the Executive
                  shall have been performing services for a period of not less
                  than three months for such Group Company at any time during
                  the Period and the Executive hereby undertakes to execute any
                  further documents which the Company may require to confirm
                  this; and

         (c)      where references to the Company and Company's trade or
                  business are deemed to include and/or apply to a Group Company
                  and to a Group Company's business pursuant to paragraph (b) of
                  this Clause 10, the Executive covenants with the Company for
                  itself and in the same terms in relation to each such Group
                  Company and each Group Company's business as he does with the
                  Company and in respect of the Company's business.

11       ABSENCE, ILLNESS AND INCAPACITY

11.1     If at any time the Executive is prevented by reason of ill-health,
         accident or other incapacity from properly performing his duties he
         shall promptly furnish to the Company, if required, evidence of such
         incapacity in a form satisfactory to the Board.

11.2     The Company shall pay the Executive his fixed salary (less an amount
         equal to his statutory sick pay) for the first 180 days in aggregate in
         any calendar year of absence due to illness or other incapacity, but
         shall not be required to pay the Executive any salary or other
         remuneration for any further periods of such absence in any calendar
         year, although it may at its discretion do so.

12       TERMINATION

12.1     The Company may at any time terminate the Appointment with immediate
         effect (or by such longer period of notice as the Company shall see
         fit) by giving the Executive written notice in any of the following
         events:

         (a)      if the Executive at the time the notice is given is prevented
                  by reason of ill-health or accident or other incapacity from
                  properly performing his duties and has been so prevented
                  (whether by the same or another reason) for at least a
                  continuous period of 180 days or for an aggregate period of at
                  least 180 days (whether or not, in either case, working days)
                  in the preceding 12 months;

         (b)      if the Executive shall have:

                  (i)      neglected or failed or refused to carry out any of
                           his duties hereunder or otherwise as an Executive of
                           the Company or any Group Company;

                  (ii)     committed any material breach or non-observance or,
                           after having been given warning in writing, any
                           repeated or continued breach or non-observance of any
                           of his duties or any of his express or implied
                           obligations arising from the Appointment or otherwise
                           as a director of the Company or Group Company
                           including refusing to comply with any reasonable
                           instructions given to him by the Board;

                  (iii)    been guilty of conduct or permitted or suffered
                           events tending in the reasonable opinion of the Board
                           to bring himself, the Company or any Group Company
                           into disrepute;

                  (iv)     become prevented by an applicable law or regulation
                           from continuing as a director of the Company or
                           performing any of his duties;

                  (v)      committed any act of fraud or dishonesty (whether or
                           not connected with the Appointment) or committed any
                           act which, in the reasonable opinion of the Board,
                           adversely affects his ability properly to carry out
                           his duties;

                  (vi)     become unable to pay his debts for the purposes of
                           Section 268 of the Insolvency Act 1986, claimed the
                           benefit of any Act for the time being in force for
                           the relief of insolvent debtors or proposed or made
                           any arrangement or composition with his creditors;

                                      -10-
<PAGE>

                  (vii)    been convicted of a criminal offence (excluding an
                           offence under road traffic legislation in respect of
                           which he is not sentenced to a term of imprisonment,
                           whether immediate or suspended); or

                  (viii)   become of unsound mind or a patient as defined in
                           either Section 112 or Section 145 of the Mental
                           Health Act 1983 or been admitted to a hospital in
                           pursuance of an application made under Part 11 of
                           that Act.

12.2     Upon termination of the Appointment however arising:

         (a)      the Executive shall, without prejudice for any claim he may
                  have arising out of the termination of this employment
                  hereunder, forthwith at the request of the Board and without
                  further claim for compensation resign as a director of the
                  Company and from all offices held by him in any Group Company
                  and from all other appointments or offices which he holds as
                  nominee or representative of the Company or any Group Company
                  and, if he fails so to do, the Company is irrevocably
                  authorised by the Executive to appoint some person in his name
                  and on his behalf to execute such documents and to do such
                  other things as are reasonably necessary to give effect to
                  such resignations; and

         (b)      the Executive (or, if he shall be dead, of unsound mind or
                  bankrupt, his personal representatives or such other persons
                  as shall be appointed to administer his estate and affairs)
                  shall deliver up to the Company in accordance with the
                  directions of the Board all keys, security passes, credit
                  cards, Documents and other property (including any motor car
                  provided pursuant to Clause 5.1) belonging to or relating to
                  the businesses or affairs of the Company or any Group Company,
                  including all copies of all Documents containing or referring
                  to Confidential Information which may be in his possession or
                  under his control (or that of his personal representatives or
                  such other persons), and shall not retain copies, extracts or
                  notes of any of the same.

12.4     The Executive shall have no claim against the Company in respect of the
         termination of the Appointment:

         (a)      by reason of the liquidation of the Company for the purpose of
                  amalgamation or reconstruction or as part of any arrangements
                  for the amalgamation or demerger of the undertaking of the
                  Company not involving liquidation provided that the Executive
                  shall have been offered employment with the amalgamated or
                  reconstructed or de-merged company or companies on terms no
                  less favourable to him than under this Agreement; or

         (b)      in relation to any provision in any articles of association,
                  agreement or arrangement which has the effect of requiring the
                  Executive to sell or give up any shares, securities, options
                  or rights at any price or which causes any options or other
                  rights granted to him to become prematurely exercisable or
                  lapse.

12.5     The Board, if it has reason to suspect that any one or more of the
         events set out in Clause 12.1(b) has or may have occurred, may suspend
         the Executive pending the making and completion of such
         investigation(s) as the Board thinks fit. While the suspension
         continues, the Company shall, unless specifically otherwise provided in
         this Agreement, pay to the Executive his fixed salary and provide to
         him the other benefits set out in this Agreement. During the period of
         suspension the Company and relevant Group Companies shall not be
         obliged to provide work to the Executive and may require the Executive
         to comply with such conditions as the Company may specify in relation
         to attending at or remaining away from the places of business of the
         Company and/or the Group Companies. The Company may later terminate the
         Appointment, pursuant to the terms of this Agreement, on the grounds of
         the same or any other event.

13       THE EMPLOYMENT RIGHTS ACT 1996

         This Agreement contains the particulars required to be given under
         Section 1 and 3 of the ERA.

                                      -11-
<PAGE>

14       RECORD KEEPING

         In order to keep and maintain records relating to the Appointment it
         will be necessary for the Company to record, keep and process personal
         data relating to the Executive. This data may be recorded, kept and
         processed on computer and in hard copy form. To the extent that it is
         reasonably necessary in connection with the Appointment and the
         performance of the Company's responsibilities as an employer, it may be
         necessary for the Company to disclose this data to others, including
         other employees of the Company, Group Companies, the Company's
         professional advisers, the Inland Revenue and other authorities. The
         Executive consents to the recording, processing, use and disclosure by
         the Company of personal data relating to the Executive as set out
         above. This consent cannot be withdrawn by the Executive. This does not
         affect the Executive's rights as a data subject or the Company's
         obligations and responsibilities under the Data Protection Act 1984
         and/or the Data Protection Act 1998. For the purposes of these Acts,
         the Company has nominated the [Company Secretary] as its
         representative.

15       SECURITY

         The Executive consents to the Company checking, recording and reviewing
         telephone calls, computer files, records and e-mails and any other
         compliance, security or risk analysis checks the Company considers
         reasonably necessary.

16       NOTICES

         Notices by either party:

         (a)      must be in writing addressed:

                  (i)      to the Company at its registered office for the time
                           being; and

                  (ii)     to the Executive at his place of work or at the
                           address set out in this Agreement or such other
                           address as the Executive may from time to time have
                           notified to the Company for the purpose of this
                           Clause; and

         (b)      will be effectively served:

                  (i)      on the day of receipt, where any hand-delivered
                           letter or a facsimile transmission is received on a
                           business day before or during normal working hours;

                  (ii)     on the following business day, where any
                           hand-delivered letter or facsimile transmission is
                           received either on a business day after normal
                           working hours or on any other day;

                  (iii)    on the second business day following the day of
                           posting from within the United Kingdom of any letter
                           sent by first class prepaid mail; or

                  (iv)     on the fifth business day following the day of
                           posting to an overseas address of any prepaid airmail
                           letter.

17       GENERAL

17.1     This Agreement, which contains all the terms of employment of the
         Executive, is in substitution for all existing contract(s) of
         employment between the Company and any Group Company and the Executive
         (whether written, oral or governed by a course of dealings) which shall
         be deemed to have terminated with effect from the Commencement Date.

17.2     The waiver, express or implied, by either party of any right under this
         Agreement or any failure to perform or breach by the other shall not
         constitute or be deemed a waiver of any other right under this
         Agreement or of the same right on another occasion.

17.3     No amendment, change or addition to the terms of this Agreement shall
         be effective or binding on either party unless reduced to writing and
         signed by each party adversely affected by such amendment, change or
         addition.

17.4     The Executive represents and warrants that he is not a party to any
         agreement, contract (whether of employment or otherwise) or
         understanding which would in any way restrict or prohibit him from
         undertaking or performing any of the duties of the Appointment in
         accordance with this Agreement.

17.5     The Executive undertakes not to disclose or communicate any terms of
         the Appointment to any other employee of any Group Company or to any
         third party (other than for the purpose of obtaining professional
         advice or in accordance with the law).

17.6     This Agreement is governed by and is to be construed in accordance with
         the laws of England and the Parties hereby submit to the non-exclusive
         jurisdiction of the High Court of Justice of England and Wales.

17.7     Except as otherwise expressly stated herein, nothing in this Agreement
         confers any rights on any other person (other than the parties hereto)
         pursuant to the Contracts (Rights of Third Parties) Act 1999.

                                      -12-
<PAGE>

                                   SCHEDULE 1

                            COPYRIGHT AND INVENTIONS

1        In this Schedule "Intellectual Property" shall mean patents, trade
         marks and service marks, rights in inventions, designs, rights,
         registered designs, trade names and copyrights (whether or not any of
         these is registered and including applications for registration of any
         such thing) and all forms of protection of a similar nature which may
         subsist anywhere in the world.

2        The Executive acknowledges, having regard to the nature of the business
         of the Company and other Group Companies and the nature of the
         Executive's expertise, that:

         (a)      the normal duties of the Executive under the Appointment may
                  include the making of inventions;

         (b)      inventions may reasonably be expected to result from the
                  carrying out by the Executive of such duties; and

         (c)      due to the nature of the Executive's duties and the particular
                  responsibilities arising from the nature of his duties, the
                  Executive has a special obligation to further the interests of
                  the Company's undertaking.

3        The Executive shall disclose to the Company any invention made or
         discovered or produced by the Executive in the course of the
         Appointment (whether or not during office hours or using office
         stationery and equipment) in connection with or in any way affecting or
         relating to or capable of being used or adapted for use in the business
         of the Company or any other Group Company.

4        The Executive shall do all things and execute all documents that may be
         necessary to enable the Company or its nominee to obtain the benefit of
         every invention made by the Executive in the course of his duties and
         to secure patent or other appropriate protection for it.

5        Without prejudice to the provisions of paragraph 2 of this Schedule,
         the Executive shall disclose to the Company full details of any
         Intellectual Property or copyright work made or created by the
         Executive during the continuance of his Appointment (whether or not
         during office hours or using office stationery and equipment) and the
         Executive hereby assigns to the Company, by way of assignment of future
         copyright or other Intellectual Property rights, all rights of
         copyright or other Intellectual Property rights throughout the world in
         that copyright work or Intellectual Property.

6        The Executive shall, before working, assigning or granting rights in
         relation to any invention or copyright work or other Intellectual
         Property rights to which the Company is not entitled under this
         Agreement and/or at law, allow the Company or any Group Company
         nominated by it a reasonable opportunity to evaluate the same and the
         Executive shall not dispose of any rights to any third party unless he
         shall first have given written notice to the Company with full,
         complete and bona fide details of the price and terms offered by the
         third party offering the Company, or any Group Company, an opportunity
         to purchase the rights concerned at the same price and on the same
         terms within 28 days of the date of the notice.

                                      -13-
<PAGE>

                                   SCHEDULE 2

        NOTE OF ADDITIONAL PARTICULARS UNDER SECTIONS 1 AND 3 OF THE ERA

1        For the purposes of the ERA the period of continuous employment of the
         Executive began on the Commencement Date.

2        There are no disciplinary rules applicable to the Executive. Any matter
         of discipline will be considered and determined by the Board, whose
         decision shall be final.

3        If the Executive has any grievance relating to the Appointment, he
         should apply in writing to the Board.

4        A contracting-out certificate under the Pension Schemes Act 1993 is not
         in force in respect of the Appointment.

         The Company shall be at liberty at any time and at its own discretion
         to vary the rules and procedures referred to in this Schedule.

                                      -14-
<PAGE>

           ATTESTATIONS

           EXECUTED as a DEED by                     )
           EuroTelecom Communications Inc.           )

                                                     Director

                                                     Secretary

          EXECUTED as a DEED and                  )
          DELIVERED by David Anthony Walton       )
          in the presence of:                     )

          Name of witness:

          Address:

          Occupation:

                                      -15-DATED 29 March 2000

                                PLACING AGREEMENT
          EUROTELECOM COMMUNICATIONS INC.             (1)

          BEESON GREGORY LIMITED                      (2)

          THE DIRECTORS                               (3)

<PAGE>

         DATE

 29 March 2000

PARTIES

(1)      EUROTELECOM COMMUNICATIONS. INC. a company incorporated on 1 June 1987
         in the State of Delaware in the United Slates, whose registered office
         is at Corporation Trust Center, 1209 Orange Street, City of Wilmington,
         County of New Castle, State of Delaware 19801 ("the Company");

(2)      BEESON GREGORY LIMITED (number 2316630) a company incorporated on 14
         November 1988 in England and Wales whose registered office is at The
         Registry, Royal Mint Court, London EC3N 4L8 ("BC");

(3)      THE PERSONS LISTED IN THE FIRST SCHEDULE (`the Directors').

INTRODUCTION

(A)      The Company has at the date of this Agreement an authorised share
         capital of US$1,100,000 divided into 50,000.000 shares of common stock
         of US$0.01 each (`Common Stock') of which ~> 17946,222 are in issue
         fully paid up and 50,000000 shares of Class `A' common stock of US$0.01
         each and US$100,000 of Preferred Stock.

(B)      The Company has at the date of this Agreement an issued share capital
         comprising 17,946,222 Shares of Common Stock only.

(C)      The Company proposes to raise (pound)17,250,000 (prior to expenses) by
         means of the placing up to 11,500,000 shares of Class "A" common stock
         ("the New Shares") for the purposes described in the Prospectus.

(D)      On the terms and subject to the conditions of this Agreement, BG has
         agreed, as agent for the Company, to use its reasonable endeavours to
         procure Placees for the New Shares at the Issue Price on the terms set
         out below.

(E)      The Company proposes to apply for the admission of the New Shares to
         trading on the Alternative Investment Market.

         OPERATIVE PROVISIONS

1      DEFINITIONS

1.1      In this Agreement all words and expressions defined in the Prospectus
         shall bear the same meanings and in addition the following words and
         expressions shall, unless the context otherwise requires, have the
         following meanings:
<PAGE>

Accounts                   the audited consolidated balance sheets of the
                           Company and its Subsidiaries as at the Accounts Date
                           and the audited consolidated profit and loss accounts
                           and the cash flow statements for the Company and its
                           Subsidiaries for the accounting period ended on the
                           Accounts Date (including the notes thereto) (as
                           revised)

Accounts                   Date 30 June 1999

Act                        the Delaware General Corporation Law

Admission                  the admission of the New Shares to trading on AIM

AIM                        the Alternative Investment Market of the London Stock
                           Exchange

Posting                    Date 29 March 2000

Pre-placed                 Shares those 7,966,667 shares of class "A" common
                           stock of US $0.01 each which shall be placed by BG
                           with certain private individuals

Press Announcement         a press announcement, in the agreed form, to be
                           released by BG on behalf of the Company giving
                           details of the Proposals

Proposals                  the Placing and Admission

Prospectus                 the circular in the agreed form, constituting a
                           prospectus for the purposes of and in accordance with
                           the POS Regulations and the AIM Rules, to be issued
                           by the Company

"(pound)" and "p"          pounds and pence, the lawful currency of the United
                           Kingdom the register of members of the Company

the Register               the register of the members of the Company

the Registrars             Lloyds TSB Registrars, The Causeway, Worthing, West
                           Sussex, BN99 6DA

the Registrars Agreement   the agreement between the Registrars and the Company
                           for the provision of share registration services in
                           the agreed form

Relevant Person            shall have the meaning set out in Clause 11.1 the
                           Securities Act of 1933 of the United States
<PAGE>

Securities Act             the Securities Act of 1933 of the United States

Share Option Scheme        the EuroTelecom Communications, Inc. Employee Share
                           Option Scheme adopted on 28 March 2000

Shares                     the Existing Shares and the New Shares

Subsidiary                 a subsidiary (as defined by Sections 736 and 736A of
                           the Companies Act 1985) for the time being of the
                           Company

VAT                        United Kingdom Value Added Tax

Verification Notes         verification notes, in the agreed form, the questions
                           to which have been prepared by the Company's legal
                           advisers in connection with the Proposals for the
                           purpose of substantiating the contents of the
                           Prospectus

Warranties                 the representations and warranties contained in
                           Schedule 2 made and given pursuant to the relevant
                           provisions of Clause 10

1.2      References to the Parties, the Introduction, the Schedules and Clauses
         are to the Parties, the Introduction and the Schedules to and Clauses
         of this Agreement.

1.3      Any document stated to be `in the agreed form" shall be in such form as
         shall be agreed by the Parties on or before the date of the Prospectus
         and signed on behalf of the Company and BG and by one of the Directors
         on behalf of all the Directors for the purposes of identification in
         each case with such amendments as may be agreed by or on behalf of the
         Company and BG.

1.4      References to statutory provisions shall be construed as references to
         those provisions as modified or re-enacted or extended from time to
         time (whether before or after the date of this Agreement) and to any
         subordinate legislation made under such provision and shall include
         references to any repealed statutory provision (whether with or without
         modification but so as not to increase the liability of any Party
         hereunder).

1.5      All obligations of the Directors hereunder shall be several
         obligations.

         (b)      the Company shall, where such termination arises under
                  paragraphs (b) or (c) of Clause 16, forthwith pay the amount
                  specified in Clause 9.1(b) (together with any VAT thereon);

         (c)      the Company shall forthwith pay to BC such of the expenses,
                  charges, and disbursements referred to in Clause 9.3 as have
                  been incurred (together with any VAT thereon)

         (d)      the provisions of clauses 9.4, 9.5,11 and 12 shall remain in
                  full force and effect.
<PAGE>

2.4      BG may, in its absolute discretion, agree to extend the time for
         satisfaction of any of the conditions in Clause 2.1 to not later than
         the Longstop Date (in which case, references to such conditions in this
         Agreement shall be to conditions so varied and corresponding
         adjustments will be made to the other dates specified in this Agreement
         and to the commissions payable pursuant to Clause 9) or to waive the
         satisfaction of any of the conditions in Clause 2.1.

2.5      Subject as otherwise provided herein, the Company and the Directors
         shall use all reasonable endeavours to procure that:

         (a)      the London Stock Exchange shall consent to Admission (subject
                  to it becoming effective in accordance with paragraph 16.6 of
                  the AIM Rules) not later than the Closing Date (or such later
                  date as BG and the Company may agree, being not later than the
                  Longstop Date);

         (b)      Admission shall become effective in accordance with paragraph
                  16.6 of the AIM Rules not later than the Closing Date (or such
                  later date as the Company and BC may agree, being not later
                  than the Longstop Date); and

         (c)      the Company and the Directors severally undertake to BC to use
                  all reasonable endeavours, insofar as they are able, to
                  procure that the conditions set forth in sub-clause 2.1 shall
                  be satisfied on or before the relevant time.

3       DELIVERY OF DOCUMENTS

3.1      The Company shall, prior to the despatch of the Prospectus, procure to
         be delivered to BG

         (a)      one copy of the Press Announcement;

         (b)      one certified copy of the Prospectus as signed by or on behalf
                  of each of the Directors and one copy of the Application
                  signed as aforesaid;

         (c)      one certified copy of the responsibility letters and powers of
                  attorney, In the agreed form, signed by each of the Directors;

         (d)      one certified copy of the written consents, in the agreed
                  form, of each of those persons who have consented, in
                  accordance with the provisions of the POS Regulations, to the
                  inclusion in the Prospectus of the references to their names
                  in the form and context in which they are included;

         (e)      one certified copy of the Verification Notes signed by, or on
                  behalf of, all those persons responsible for any replies
                  thereto whereby such persons agree to take responsibility for
                  the answers to those questions for which they are expressly
                  stated to be responsible, together with copies of such
                  annexures thereto or material referred to therein as BG may
                  require;
<PAGE>

         (f)      two certified copies of the minutes of a meeting of the board
                  of Directors, or a duly authorised committee thereof, in the
                  agreed form, approving and authorising the Placing and
                  Admission and the issue of the Prospectus; and shall advise as
                  to the extent to which cleared funds have been received from
                  the Placees of Pre-placed Shares pursuant to the Placing.

4.7      BG shall not have any liability in respect of any omission of
         information in the Placing Documents or any information or statement of
         fact or opinion contained therein being untrue, incorrect or
         misleading, for which the Company and the Directors are solely
         responsible.

4.8      BG shall be entitled to terminate its appointment as nominated adviser
         under sub-clause 4.1 prior to the expiry of the term provided for
         therein forthwith at any time by notice to the Company in the event
         that there is a material breach of any of the provisions of this
         Agreement or the Engagement Letter by the Company or by any of the
         Directors (and, if capable of remedy, shall not have been duly remedied
         by the defaulting Party within 14 days of the breach having come, or
         being drawn, to his or its attention in writing).

5        ADMISSION

5.1      The Company hereby undertakes to BG to supply or procure the supply of
         all such information, to give or procure the giving of all such
         undertakings and to execute or procure the execution of all such
         documents and to do or procure to be done all such things within its
         power as may be required by the London Stock Exchange in connection
         with the application by (or on behalf of) the Company for Admission.

5.2      The Company undertakes to BG to use its reasonable endeavours to
         procure Admission on the next Business Day following the satisfaction
         of the condition set out in paragraph (c) of Clause 2.1.

5.3      To the extent required by applicable law and/or the London Stock
         Exchange, if any significant new matter or significant inaccuracy in
         the Prospectus capable of affecting assessment of the New Shares arises
         or is noted between publication of the Prospectus and Admission, the
         Company and the Directors will promptly prepare a supplement to the
         Prospectus in a form satisfactory to BC containing details of any such
         significant new mailer or significant inaccuracy and ensure that such
         supplement is delivered to the Registrar of Companies in London and to
         the London Stock Exchange in the same manner in which the Prospectus
         was delivered to such persons in compliance with the P05 Regulations
         and the AIM Rules.

6        APPOINTMENT OF REGISTRARS

         The Company hereby confirms to BG that:

         (a)      it has appointed the Registrars to act as registrars (upon the
                  terms of the Registrars Agreement) to the Placing;
<PAGE>

         (b)      it will provide the Registrars with all authorisations and
                  information as will enable the Registrars to perform their
                  duties in accordance with the terms of this Agreement and the
                  Placing Letter, and that the authorities and discretions
                  granted to BG and contained in Clause 4 shall operate to
                  authorise BC to give any reasonable instructions to the
                  Registrars as BC considers appropriate; and

         (c)      it has appointed Lloyds TSB Registrars of The Causeway,
                  Worthing, West Sussex BN99 GDA to act as receiving agents to
                  the Placing.

7        OBLIGATIONS OF THE COMPANY

7.1      The Company shall procure:

         (a)      the publication of the Prospectus in accordance with paragraph
                  16.11 of the AIM Rules;

         (b)      delivery of the copies of the Prospectus to the Registrar of
                  Companies in England and Wales in accordance with the P05
                  Regulations on the date hereof;

         (c)      executed by the Company in the names of the allottees and for
                  the relevant numbers of New Shares shall be despatched to such
                  persons on the day of Admission (or as soon as practicable
                  thereafter).

8.4      Subject to the fulfilment in all respects of the conditions set out in
         sub-clause 2.1 and to this Agreement not being terminated prior to
         Admission, as soon as practicable following Admission and, in any
         event, by midday on the second Business Day following the day of
         Admission, BC shall from the proceeds of the New Shares, In the
         following order of priority:-

         (a)      as agent for the Company pay to BC the fees and expenses
                  (including BC's legal expenses and disbursements) to which BC
                  is entitled pursuant to Clauses 9.1, 9.2 and 9.3:

         (b)      retain such fees, commissions and expenses to which BC is
                  entitled pursuant to Clause 9.4 and to the terms of its
                  appointment; and

         (c)      pay to the Company the balance of the monies received from
                  Placees in respect of the New Shares such payment to be made
                  to the Company's UK Bank account details of which the Company
                  shall inform BG in writing: 21 The Square, Retford, Notts,
                  DN22 6DL, account numbergl2SOlSQ, Sort: 80-17-28, Eurotelecom
                  Corporation Ltd.

8.5      The payment of the monies mentioned in sub-clause 8.4(c) shall
         constitute a complete discharge of BG's obligations.
<PAGE>

8.6      If this Agreement does not become unconditional by the Closing Date (or
         such later date as the Company and BG may agree, being not later than
         the Longstop Date) BG shall immediately thereafter, or immediately upon
         earlier termination, return without interest all monies received by it
         in respect of the New Shares in accordance with the provisions of this
         Agreement, to the first named Placee in the relevant acceptance form by
         crossed cheque drawn by BG in favour of such Placee and shall send each
         such cheque to such Placee through the post.

9        FEES, COMMISSIONS AND EXPENSES

9.1      In consideration of the agreement of BG to procure placees to take up
         the Placing Shares and their services under this Agreement in
         connection with the Placing and Admission and subject to this Agreement
         becoming unconditional in all respects the Company shall pay to BG:

         (a)      a commission of 2% (two per cent.) of the aggregate Issue
                  Price in respect of the Placing Shares; and

         (b)      a corporate advisory fee of (pound)250,000 of which
                  (pound)75,000 is to be satisfied by the issue, credited as
                  fully paid, to BG of 50,000 New Shares.

         together, in each case, with any value added tax chargeable on such
         amount against provision of a VAT invoice.

9.2      The commissions and fee referred to in Clause 9.1 (together with any
         VAT thereon) shall be paid in cleared funds not later than the third
         Business Day after the Closing Date (or, if earlier, on the date on
         which BG's obligations under this Agreement cease and determine
         pursuant to Clause 2.3 or are terminated pursuant to Clause 16). The
         Company hereby authorises BG, at its option, to deduct some or all of
         the commissions and expenses (including in relation to VAT, if any)
         payable to them pursuant to this Clause 9 from the proceeds of the
         Placing.

9.3      The Company shall pay all other fees, expenses, charges, duties and
         disbursements incidental to the Placing and Admission and the
         arrangements referred to herein or contemplated hereby (together with
         any VAT thereon) including (without limitation) the fees and expenses
         payable in connection with Admission, and (whether or not BG's
         obligations hereunder become unconditional or terminate) the
         accountancy, legal and other professional fees and expenses of the
         Company,

10.7     Any release, waiver or compromise or any other arrangement of any kind
         whatsoever which BG or any other Relevant Person may agree to or effect
         in connection with the Warranties and the Indemnity shall not affect
         the rights of BG or any other Relevant Person as regards any other
         person liable thereunder.

10.8     Where any of the Warranties is qualified by reference to the awareness,
         knowledge or belief of any Director (or similar expression) such
         qualification shall only operate if the Directors have made due and
         careful enquiries of the Company's senior or management employees,
         agents and professional advisers and anyone else who might reasonably
         be expected to have better knowledge than the Directors of a particular
         matter.
<PAGE>

10.9     The maximum aggregate liability of the Directors shall be limited in
         time to a period of 18 months following Admission and in amount to the
         sum of (pound)5,000,000. Any claim for breach of Warranty may be
         satisfied (to the extent possible) by the Directors by the sale of
         their Shares through BG.

11       INDEMNITY

11.1     No claim shall be made against BG, or any subsidiary or holding company
         of BG or any subsidiary company of such holding company, or any of its
         or their directors, officers, employees, or advisers (each a "Relevant
         Person") by the Company to recover any damage which the Company or any
         person may suffer by reason of, arising out of or otherwise in
         connection with, the allotment and issue of the New Shares, the issue
         and distribution of the Placing Documents and any other document in
         connection with the Placing or otherwise in connection with the
         carrying out by BG of their obligations (or exercise of their rights)
         under this Agreement, provided in any such case that such damage does
         not arise as a result of breach of any provisions of this Agreement by,
         or the negligence or wilful default of BG or any other Relevant Person
         or the breach by BG of their duties and/or obligations under this
         Agreement (including under clause 4.4 or under the, law or any
         applicable regulatory system.

11.2     The Company hereby undertakes with BG (for itself and as agent for each
         and every Relevant Person) to indemnify it and each other Relevant
         Person and hold it and them harmless from and against:

         (a)      all and any costs, claims, demands, actions, proceedings,
                  liabilities or judgements ("claims') brought or established
                  against BG or any other Relevant Person (whether or not
                  successful, compromised, settled or reversed) by any
                  subscriber, allottee or sub-underwriter of any of the New
                  Shares or any subsequent purchaser or transferee thereof or by
                  any other person, government agency or regulatory body
                  whatsoever;

         (b)      all taxes (including stamp duty and stamp duty reserve tax and
                  VAT) which BG or the Relevant Person may suffer or incur as a
                  result of any such claims; and

         (c)      all out of pocket costs, charges and expenses which BG or any
                  other Relevant Person may pay or incur (including without
                  limitation those properly or reasonably paid or incurred by BG
                  or the Relevant Person in seeking advice as to and in
                  defending or disputing any claims, whether or not such claims
                  are defended or disputed successfully);

         which in any case arise out of or in connection with or by reason of:

         (a)      the issue or the despatch of the Placing Documents, or the
                  making of the Placing or the allotment or issue of the New
                  Shares; or

         (b)      any breach by the Company of any of its obligations or
                  undertakings under this Agreement; or
<PAGE>

         (c)      any breach of any of the Warranties; or

         (c)      where the payment or reimbursement is in respect of costs or
                  expenses incurred by BG as agent for the Company, such amount
                  as equals the amount included in the costs or expenses in
                  respect of VAT provided that BG has procured that the person
                  supplying the goods or services has issued it with a VAT
                  invoice or BG shall have issued the Company with an
                  appropriate VAT invoice.

13       SELLING RESTRICTIONS

13.1     BG and the Company acknowledge to and with each other that, as part of
         the distribution of New Shares at any time, none of the New Shares has
         been or will be registered with the United States securities and
         Exchange Commission under the Securities Act of 1933 of the United
         States as amended ("the Securities Act") and no New Shares may be
         offered, sold, taken up or delivered directly or indirectly into or
         within the United States or to a U.S. person except in certain
         transactions specified only in Regulation S or pursuant to an exemption
         from or in a transaction not subject to the registration requirements
         of the Securities Act.

13.2     BG undertakes to the Company that, prior to the expiration of the
         one-year distribution compliance period relevant to the New Shares as
         set out at Rule SOS(S) of the Securities Act;

         (a)      neither it, its affiliates nor any person acting on its or
                  their behalf has offered or sold, or will offer or sell, any
                  of the Placing shares except in accordance with the provisions
                  of Rules 903 or 904 in an off-shore transaction outside the
                  United States;

         (b)      it, its affiliates and each person acting on its or their
                  behalf shall procure, in so far as it is within its or their
                  capacity to do so, that any certificate in respect of any New
                  shares will bear a legend to the following effect (unless the
                  Company determines otherwise in compliance with applicable
                  law):

                  "THE SHARES OF CLASS A COMMON STOCK REPRESENTED BY THIS
                  CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE US SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT') AND MAY NOT BE
                  OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) IN
                  AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 903
                  OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (2)
                  PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
                  SECURITIES ACT, OR (3) PURSUANT TO AN AVAILABLE EXEMPTION FROM
                  THE REGISTRATION REQUIREMENTS OF THE SECURITIES LAWS. HEDGING
                  TRANSACTIONS INVOLVING THE COMMON STOCK OR THE CLASS A COMMON
                  STOCK OF THE COMPANY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
                  WITH THE SECURITIES ACT.'
<PAGE>

         (c)      neither it, its affiliates nor any person acting on its or
                  their behalf has engaged or will engage in any directed
                  selling efforts with respect to the New Shares;

         (d)      neither it, its affiliates nor any person acting on its or
                  their behalf has engaged or will engage in any hedging
                  transactions with respect to the New Shares except in
                  compliance with the Securities Act;

         (e)      any Placee shall be required by BG to confirm in writing to BG
                  in respect of the Placing shares that it is not a U.S. person
                  and is not acquiring the Placing shares for the account or
                  benefit of a U.S. person (or otherwise that it is a U.S.
                  person who purchased the Placing Shares in a transaction that
                  did not require registration under the Securities Act);

         (f)      any Placee shall be notified by BG in writing that, in the
                  case of a resale of the Placing shares pursuant to Rule 904 by
                  a dealer (as defined in Section 2(a) (12) of the Securities
                  Act) or a person receiving a selling concession, it shall be
                  required to obtain confirmation

         (g)      it will not sell or deliver any New Letter or New Shares; and

         (h)      it will rot distribute or publish any offering Prospectus,
                  prospectus, advertisement or other offering material in
                  relation to the Placing Letter or New Shares,

         in each case either directly or indirectly in Australia or to any
         person whom it knows to have a registered address in Australia and
         further undertakes to the Company that any sub-underwriter procured by
         it will agree that the restrictions set out in this sub-clause will
         apply to it.

13.8     BG further acknowledges to the Company that the New Shares may not be
         offered or sold directly or indirectly in Canada or to persons in
         Canada and that the Placing Letter may not be renounced in Canada or in
         favour of a resident of Canada and undertakes to the Company that, in
         the event that it subscribes for New Shares, it would not be acquiring
         any of the New Shares for resale into Canada, will not renounce any
         Placing Letter in favour of a person whom it knows to be a resident of
         Canada, and that any sub-underwriter procured by it will agree that the
         restrictions set out in this sub-clause will apply to it.

13.9     Nothing in this clause shall preclude a sale on the London Stock
         Exchange not knowingly made to a North American Person or a person with
         a registered address in Australia, Japan or the Republic of Ireland.
<PAGE>

14       RESTRICTIONS ON DISPOSAL OF SHARES

14.1     The Directors hereby severally undertake to the Company and BG that,
         except in accordance with Clause 14.2, he will not during the period
         from Admission until the earlier of (i) publication of the preliminary
         announcement of the Company's unaudited annual results for the year
         ending 30 June 2001 or (ii) 30 September 2001 (`the First Period")
         dispose or agree to dispose of any of the Shares held by him or any
         interest in them or charge or agree to charge or otherwise encumber any
         of such Shares otherwise than with the prior written consent of BG,
         save in the event of an intervening court order, a takeover offer
         relating to the Company's shares becoming or being declared
         unconditional or the death of the Director. Each of the Directors
         undertakes to BG that, where applicable, he will abide by the
         restrictions on dealings relevant to him contained in the US Securities
         Exchange Act of 1934.

14.2     Notwithstanding the other provisions of this clause 14, a Director may
         at any time transfer all or part of his Shares to the trustee(s) of a
         Family Trust provided that such trustee shall be required to enter into
         a Deed of Adherence in a form reasonably satisfactory to BG in terms
         that the trustee and any beneficiary or potential beneficiary under the
         trusts will be bound by this clause 14 as if such person(s) were the
         Director concerned.

14.3     In the event of the Company consolidating or sub-dividing its shares
         within the period specified in Clause 14.1 above, then the undertakings
         herein given shall extend to the consolidated or subdivided shares in
         the Company derived from the Shares. This undertaking shall also apply
         to any shares or other securities otherwise acquired by a Director in
         respect of his Shares, including by way of a bonus, capitalisation or
         rights issue or open offer.

14.4     If a Director wishes to sell any of his Shares after the First Period,
         then in order to maintain an orderly market, any such sale shall be
         notified to BG.

14.5     The Directors severally covenant and undertake to BG to comply and act
         in accordance with `The Model Code for AIM Companies" set out in
         Appendix 12 of the Rules of the London Stock Exchange.

14.6     For the purposes of this clause 14:

         (a)      "Family Trust" shall mean a trust (whether arising under a
                  settlement, declaration of trust or other instrument by
                  whomsoever or wheresoever made or under a testamentary

         fees referred to in Clause 9 and the Company shall remain liable to pay
         and, if appropriate, to reimburse to BG the amount of any expenses
         referred to in Clause 9.3 (together in all cases with any applicable
         VAT thereon).

<PAGE>

17       UNDERTAKINGS

17.1     Each of the Directors and the Company severally undertakes with BG that
         none of them will, and shall (insofar as it is reasonably within their
         power to do so) procure that no other member of the Group will, at any
         time during the period up to and including Admission, unless and to the
         extent required to do so by any applicable law or the AIM Rules or
         other applicable regulation make public any information which will, or
         may, affect the market price of the Company's securities without the
         prior written consent of BG.

17.2     The Company hereby undertakes with SO that it will, and each of the
         Directors (so long as they remain directors of the Company) severally
         undertakes to procure. (insofar as he is reasonably able so to do) that
         the Company will, at all times whilst BG remains as nominated adviser
         to the Company pursuant to sub-clause 4.1:

         (a)      notify BG in advance of any public announcement relating to,
                  and discuss with BG, any matter which it may be necessary to
                  be made known to the investing public in order to enable the
                  investing public to appraise the position of the Company or
                  which could lead to a substantial movement in the price of the
                  Shares;

         (b)      forward to BG for comment proofs of all documents to be sent
                  to holders of the Company's securities;

         (c)      notify BG in advance of, and discuss with BG any announcement
                  of profits or losses or dividends in respect of the financial
                  periods of the Company and any other announcement proposed to
                  be made to the public;

         (d)      discuss with BG any proposed transaction, acquisition,
                  disposal, or other arrangement or course of conduct proposed
                  to be undertaken or adopted otherwise than in the ordinary
                  course of business which is or may be material in the context
                  of the Group as a whole or which will or may require any
                  announcement to be made pursuant to the foregoing provisions
                  of this sub-clause 17.2 prior to such transaction,
                  acquisition, disposal or other arrangement having or taking
                  legal effect;

         (e)      prepare and send to BG within three weeks of the end of each
                  calendar month, a financial statement and management accounts
                  for the Group made up to and as at the end of that calendar
                  month, incorporating a breakdown of turnover and profits by
                  trading activities and identifying variances in sales,
                  revenues, costs and other material items from the Company's
                  financial projections and annual budgets in respect of that
                  month;

         (f)      comply with the continuing obligations imposed by the AIM
                  Rules following Admission

         (g)      hold meetings of the Board which a representative of BG shall
                  be entitled to attend at the expense of the Company at least
                  once in every calendar quarter of which not less than ten
                  Business Days prior notice shall be given to BG and supply to
                  BG, at the same time as the giving of such notice, the agenda
                  for such meeting and copies of all papers relevant for such
                  meeting;

         (h)      not make any material amendments to the covenants and
                  undertakings set out in the service contracts of the Directors
                  other than in prior consultation with BG (such approval not to
                  be unreasonably withheld or delayed);
<PAGE>

         (i)      within 3 months of Admission, appoint a further non-executive
                  director of the Company, such appointment to be approved in
                  advance by BG; and

18.3     This Agreement and/or the rights and/or obligations of the Parties or
         any of them shall not be capable of assignment or charging or
         encumbering in any way by any of the Parties without the prior
         agreement in writing of all the Parties.

18.4     This Agreement may be amended, superseded or cancelled or any of its
         terms varied or waived only by written agreement of the Parties or, in
         the case of a waiver, by the Party or Parties effecting the waiver.

18.5     The failure, omission or delay by any Party on any occasion to insist
         upon the performance of any term, provision or condition of this
         Agreement or to exercise any right, power, privilege or remedy
         conferred by this Agreement shall not thereby be treated as a waiver of
         any related breach or an acceptance of any consequential variation nor
         shall it impair any such right, power, privilege or remedy nor shall
         any single or partial exercise or waiver of any right, power, privilege
         or remedy preclude its further exercise or the exercise of any other
         right or remedy. The rights, powers, privileges and remedies of the
         Parties provided in this Agreement are cumulative and not exclusive of
         any rights or remedies provided by law.

18.6     Time shall be of the essence as regards any date or period mentioned in
         this Agreement and any date or period substituted for the same by
         agreement between the Parties as provided for herein.

18.7     All provisions of this Agreement shall (so far as they are capable of
         being performed or observed) continue in full force and effect
         notwithstanding Admission except in respect of those matters then
         already performed.

18.8     The illegality of any part of this Agreement or of any agreement or
         arrangement of which it forms part shall not affect the legality or
         validity of the remainder of the same.

18.9     The various Clauses, sub-clauses, paragraphs and sub-paragraphs of this
         Agreement are severable and if any of the same or an identifiable part
         thereof is held to be invalid or unenforceable in any court of
         competent jurisdiction then such invalidity or unenforceability shall
         not affect the validity or enforceability of the remaining provisions
         or identifiable parts thereof in this Agreement.

18.10    If any provision of this Agreement proves to be void, illegal or
         unenforceable, such provision shall be deemed to be deleted from this
         Agreement and the remaining provisions of this Agreement shall continue
         in full force and effect. Notwithstanding the foregoing, the parties to
         this Agreement shall thereupon negotiate in good faith in order to
         agree the terms of a mutually satisfactory provision to be substituted
         for the provision so found to be void, illegal or unenforceable.

18.11    Nothing in this Agreement shall constitute or be deemed to constitute a
         partnership between any of the Parties.
<PAGE>

18.12    The rights and obligations of the Parties or any of them shall enure
         for the benefit of, be enforceable against and shall be binding on
         their respective personal representatives, successors, estates and
         assigns.

18.13    The Company agrees that all monies payable to it under the Placing or
         hereunder, shall not be treated as client money subject to any
         regulations made under or pursuant to the Financial Services Act 1986.

19       LAW AND JURISDICTION

         This Agreement shall be governed by and construed and interpreted in
         accordance with English law and the Parties agree to submit to the
         exclusive jurisdiction of the High Court of Justice in England and
         Wales in relation to any claim, dispute or difference which may arise
         hereunder.

20.2     Any notice may be given (a) by facsimile transmission and such notice
         shall take effect at the expiration of three hours after transmission
         (b) by hand delivery and such notice shall take effect at the time of
         such delivery or (c) by first class prepaid post and such notice shall
         take effect 48 hours after such notice is introduced into the postal
         system.

IN WITNESS whereof this Agreement has been executed as a deed by the Directors
and the Company and under hand by BG and shall be deemed to be duly delivered
when dated.

<PAGE>

                                   SCHEDULE 2

                                   WARRANTIES
                                   ----------

         The recitals to this Agreement are true or (as the case may be) will be
         true by the time that they fall to be performed.

2        Save as set out in the Prospectus, there are not in force any options
         or other agreements which call for the issue of, or accord to any
         person the right to call for the issue of any shares in the capital or
         other securities of the Company.

3        The Company has power under its Certificate of Incorporation and
         Certificate of Designations, Powers, Preferences and Rights to create,
         allot and issue the New Shares, to effect the Proposals in the manner
         proposed and to enter into and perform this Agreement and no further
         consents or sanctions are required for the allotment and issue of the
         New Shares.

4        The creation, allotment and issue of the New Shares in the manner
         contemplated in the Prospectus will comply with the laws of the US
         which are capable of applying to their lawful creation, allotment and
         issue, the Financial Services Act 1986 (to the extent applicable), the
         AIM Rules, the POS Regulations and all other relevant laws and
         regulations of the United Kingdom and US, will not breach any
         regulation binding on the Company nor infringe any restrictions imposed
         on or the terms of any contractor commitment whatsoever of the Company
         or give rise to any obligation under any such contractor commitment.

5        No member of the Group has entered into or assumed or incurred any
         contract, commitment, borrowings, indebtedness in the nature of
         borrowing, guarantee, liability (including contingent liability) or
         other obligation which, in any such case, has not been discharged at
         the date of this Agreement or will not be discharged prior to Admission
         and the disclosure of which to a potential subscriber for New Shares is
         required in order to prevent the Prospectus from being inaccurate or
         misleading in any material respect.

6        The Shares are freely transferable in accordance with the Company's
         Charter and By-laws save in respect of the restrictions set out at
         Clauses 13 and 14 hereof and in the Prospectus.

7        The Company has sufficient arrangements in place to ensure that,
         following Admission, transfers of New Shares will be registered within
         14 days of receipt.

8        The cashflow and working capital projections which form the basis of
         the report dated 29 March 2000 (the Working Capital Report'), have been
         properly and carefully compiled by the Directors on the basis of the
         assumptions set out in the projections (and no other material
         assumptions) and, in the opinion of the Directors, such assumptions are
         fair and reasonable and there are no facts known or which on reasonable
         enquiry could have been known to the Company or the Directors which
         have not been taken into account in the preparation of such projections
         and which could reasonably be expected to have a material effect
         thereon.

<PAGE>

9        The information contained in the Press Announcement, the Prospectus and
         the Placing Agreement is true and accurate in all material respects and
         is not misleading in any material respect and all expressions of
         opinion, intention and expectation expressed in it are honestly held,
         made fairly and on reasonable grounds after due consideration and there
         are no other facts known (or which on reasonable enquiry could be
         known) to the Company or the Directors the omission of which would make
         any statement in the Press Announcement or the Prospectus or the
         Placing Letter misleading or which, in the circumstances of the Placing
         and Admission, would be material for disclosure to a prospective
         allottee of New Shares including 80.

10       All statements contained in any other press announcement or any
         supplementary prospectus made or published on or after the date hereof
         by the Company before the commencement of dealings in the New Shares
         were true and accurate in all material respects and not misleading in
         any material properly discussed with BDO and/or BG and which would
         reasonably be expected to have an effect on it.

19       The Accountants Reports in Parts land Ill of the Prospectus have been
         prepared with all due care and attention and approved by the Directors,
         all statements of fact in them are true and accurate in all material
         respects, all expressions of opinion, intention or expectation in them
         are honestly held, made fairly on reasonable grounds and there are no
         facts or matters known (or which could on reasonable enquiry have been
         known) to the Company or the Directors which have not been taken into
         account in the preparation of the Accountants Reports and which would
         reasonably be expected to have an effect on it.

20       Since the Accounts Date and except as disclosed in the Accounts and the
         Prospectus (i) the businesses of the Group have been carried on in the
         ordinary and usual course, (ii) there has been no adverse change in the
         financial or trading position of the Group and (iii) other than as
         disclosed in the Prospectus, no contracts or commitments have been
         entered into by any member of the Group which are of an onerous or
         unusual nature and of material importance in the context of the issue
         of the New Shares or the obligations of BG under this Agreement.

21       Since the Accounts Date, so far as the Directors are aware, no member
         of the Group has to their knowledge carried out any transaction
         otherwise than in conformity with its constitutional documents or
         infringed to any material extent any law, contract or instrument to
         which it or any of its assets is subject.

22       The Verification Notes have been prepared or approved by persons having
         the appropriate knowledge and responsibility to enable them properly to
         provide such replies and all such replies given by the Directors have
         been given in good faith and the Company has no reason to believe that
         such replies or any information contained or referred to therein are
         not true and accurate in all material respects and that any material
         fact has been omitted.

23       No member of the Group is engaged in any legal or arbitration
         proceedings which may have, or have had during the twelve months
         immediately preceding the date of this Agreement, a significant effect
         on the financial position or prospects of the Group or which,
         individually or collectively, are or may be of material importance in
         relation to the issue of the New Shams and, so far as the Directors are
         aware, no such proceedings are pending, nor are there any circumstances
         known to the Company or the Directors (having made all reasonable
         enquiries) which are likely to give rise to any such proceedings.

<PAGE>

24       No member of the Group has taken any action nor have any steps been
         taken or legal proceedings started against any member of the Group for
         their winding up or dissolution or for any member of the Group to enter
         into any arrangement or composition for the benefit of creditors or for
         the appointment of a receiver, trustee, administrator, examiner or
         similar officer of any member of the Group or any of their properties,
         revenues or assets.

25       So far as the Directors are aware and save as clearly disclosed in the
         Long Form Reports, no circumstances have arisen such that any
         indebtedness in respect of borrowed money of any member of the Group is
         or will, or would with the giving of notice, lapse of time, or the
         satisfaction of any other condition, become repayable before its stated
         maturity and no person to whom any indebtedness in respect of borrowed
         money is owed by any member of the Group which is repayable on demand
         has demanded or threatened to demand repayment.

26       No member of the Group is or will be under any material liability in
         respect of any Taxation in relation to or in consequence of any actual
         or deemed income, profits or gains earned, accrued or received on or
         before the date of this Agreement or in relation to or in consequence
         of any event occurring on or before the date of this Agreement but
         after the Accounts Date other than corporation tax payable in respect
         of normal trading profits earned by it or VAT which has been collected
         from customers for on similar businesses for such amounts as would in
         the circumstances be prudent for such other companies, the Directors
         consider that such insurances provide satisfactory cover against the
         risks of the respective businesses of each member of the Group no
         member of the Group has done or omitted to do or suffered anything to
         be done or not to be done which has or might render any policies of
         insurance effected by it void or voidable.

36       There are in force no options or other agreements which call for the
         issue of or accord to any person the right to call for the issue of any
         shares or other securities in the capital of the Company or any of its
         subsidiaries now or at any time hereafter and no shareholder of the
         Company has any rights, in its capacity as such, in relation to the
         Group other than as are set out in the Articles of Association of the
         Company.

37       No material contracts (other than those disclosed in the Prospectus)
         will be entered into nor will the terms of any such subsisting material
         contracts (other than as aforesaid) be varied prior to the commencement
         of fully paid dealings in the Shares.

38       There are no agreements or arrangements in existence to which any
         member of the Group is a party which are subject to the provisions of
         the Restrictive Trade Practices Acts 1976 and 1977 nor is any course of
         conduct being pursued by any such company which contravenes Articles 81
         or 82 of the Treaty of Rome or will, when in force, contravene the
         Competition Act 1998 or any other anti-trust, anti-monopoly, or
         anti-cartel or competition statute, order, regulation or law of any
         territory in which any member of the Group carries on business.

<PAGE>

39       There have been no proceedings, actions or claims pending or threatened
         or capable of being threatened in respect of the title, validity or
         enforceability of any intellectual property owned or used by the Group
         or claiming any right or interest in any of the foregoing and there are
         no unusual terms in relation to any licence or other agreement granted
         by any third party to any such company in respect of Intellectual
         property used in connection with the business of the relevant company.

40       There has been disclosed to BG or its advisers details of all
         properties occupied by any member of the Group or in respect of which
         the Company or any member of the Group has any material liability
         (contingent or otherwise).

41       Save as described in the Prospectus, no event has occurred or is
         subsisting or is about to occur which constitutes or results in or
         would, with the giving of notice and/or lapse of time, constitute or
         result in a default or the acceleration or breach of any obligation
         under any agreement, instrument or arrangement to which any member of
         the Group is a party or by which any of its properties. revenues or
         assets are bound and which would, in any such case, have, or be likely
         to have, a material and adverse effect on the business, assets or
         prospects (save in respect of matters in the public domain) of the
         Group taken as a whole.

42       No member of the Group has incurred any liability for taxation which
         has arisen otherwise than in the ordinary course of normal trading.

43       The Prospectus contains all information concerning actual or potential
         conflicts of interest between the Company, or other member of the
         Group, and any Director or persons connected with him (within the
         meaning of Section 346 of the Companies Act).

44       The Prospectus contains details of the relationship between the Company
         and advisers and any promoter of the Company and details of any payment
         or other benefit paid or given, or to be paid or given, to any
         promoter.

45       Each of the Directors severally warrants to BG that the Prospectus
         contains all the directorships and partnerships of that Director held
         at any time in the five years preceding the date of this Agreement, any
         unspent convictions of that Director, details of any bankruptcies or
         individual voluntary arrangements of that Director and details of any
         receiverships administrations, voluntary

<PAGE>

ATTESTATIONS

Signed as a Deed by

Beeson Gregory Limited
acting by:

                                    Director

                                    Director/Secretary

Signed as a Deed by

EuroTelecom Communications, Inc.
Acting by

                                    Director

                                    Director/Secretary

Signed as a Deed by
JOHN SPACKMAN
in the presence of:

Witness' Signature

Witness' Name:

Witness' Address:

Witness' Occupation:

Signed as a Deed by
PHILIP DERPY
in the presence of:

Witness' Signature:

Witness' Name:

Witness' Address:

Witness' Occupation:

<PAGE>

Signed as a Deed by
DAVID ANTHONY WALTON
in the presence of:

Witness' Signature:

Witness' Name:

Witness' Address:

Witness' Occupation:

Signed as a Deed by
DAVID MICHAEL LINELL
in the presence of:

Witness' Signature:

Witness' Name:

Witness' Address:

Witness' Occupation:

<PAGE>

Signed as a Deed by
GRAHAM EVAN FORD
in the presence of:

Witness' Signature:

Witness' Name:

Witness' Address:

Witness' Occupation:

Signed as a Deed by
ANDREW KRAWCHU
in the presence of:

Witness' Signature:

Witness' Name:

Witness' Address:

Witness' Occupation:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]