Document:

EXHIBIT 10.1(ii)

                                DEED OF COVENANTS

          THIS  DEED OF COVENANTS, dated as of February 4, 2005, is entered into
by  LONG DISTANCE BILLING SERVICES, INC., a Nevada corporation (the "Borrower"),
in  favor  of  NS8  CORPORATION,  a  Delaware  corporation  (the "Lender") as an
inducement  to  the  Lender making a $200,000 term loan (the "Term Loan") to the
Borrower  and  on  the  understanding  that  the  Lender  is making such loan in
reliance.

                                    ARTICLE I
                                    ---------

                                    COVENANTS

     Until  the  $200,000  Term  Note  dated  February  3,  2005, and all of the
Borrower's  other  obligations  to the Lender under the Security Agreement dated
February  3,  2005,  both in relation to the Term Loan, shall have been paid and
satisified  in  full,  unless  the  Lender  shall  otherwise consent in writing:

     Section  1.1  Use  of  Proceeds.  The Borrower will use the proceeds of the
                   -----------------
Term Loan only for working capital, to pay outstanding tax liabilities and other
costs  and  expenses  approved  by  the  Lender  in  writing.

     Section  1.1  Merger.  The  Borrower will not merge or consolidate or enter
                   ------
into  any  analogous reorganization or transaction with any Person or liquidate,
wind  up  or  dissolve  itself  (or  suffer  any  liquidation  or  dissolution).

     Section  1.2 Sale of Assets. The Borrower will not, and will not permit any
                  --------------
subsidiary  to, sell, transfer, lease or otherwise convey all or any substantial
part  of  its  assets  except  for sales and leases of inventory in the ordinary
course  of  business.

     Section  1.3  Dividends.  The  Borrower  will  not  pay  any  dividends  or
                   ---------
otherwise  make  any distributions on, or redemptions of, any of its outstanding
stock.

     Section  1.4  Capital  Expenditures.  The  Borrower  will not, and will not
                   ---------------------
permit  any  subsidiary  to, make expenditures for fixed or capital assets in an
amount  exceeding  $25,000  on  a  consolidated  basis  in  any  fiscal  year.

      Section 1.5  Investments.  The  Borrower will not, and will not permit any
                   -----------
subsidiary  to,  make  any  loans, advances or extensions of credit to any other
Person  (except for trade and customer accounts receivable for inventory sold or
services  rendered  in the ordinary course of business and payable in accordance
with  customary  trade  terms)

     Section  1.6  Indebtedness.  The Borrower will not, and will not permit any
                   ------------
subsidiary  to,  borrow  any  money or issue any bonds, debentures or other debt
securities  or  otherwise  become obligated on any interest-bearing indebtedness
except  for  the  Term  Loan.

                                        1
<PAGE>

     Section  1.7  Contingent  Obligations.  The Borrower will not, and will not
                   -----------------------
permit  any  subsidiary  to,  guarantee  or  otherwise  become  liable  on  the
indebtedness  of  any  other  person.

                                    ARTICLE II
                                    ----------

                                  MISCELLANEOUS

     Section  2.8  Waivers,  etc.  No  failure  on the part of the Lender or the
                   -------------
holder  of  the  Term  Note  to exercise and no delay in exercising any power or
right  hereunder  shall  operate  as  a  waiver thereof; nor shall any single or
partial  exercise  of  any power or right preclude any other or further exercise
thereof or the exercise of any other power or right.  The rights and remedies of
the Lender hereunder are cumulative and not exclusive of any right or remedy the
Lender  otherwise  has.

     Section  2.9  Notices.  Except  when  telephonic  notice  is  expressly
                   -------
authorized  by this Agreement, any notice or other communication to any party in
connection  with  this Agreement shall be in writing and shall be sent by manual
delivery,  telegram,  telex, facsimile transmission, overnight courier or United
States  mail  (postage prepaid) addressed to such party at the address specified
on  the signature page hereof, or at such other address as such party shall have
specified  to the other party hereto in writing.  All periods of notice shall be
measured  from the date of delivery thereof if manually delivered, from the date
of  sending  thereof  if sent by telegram, telex or facsimile transmission, from
the  first  Business Day after the date of sending if sent by overnight courier,
or  from  four  days  after  the  date  of  mailing  if  mailed.

     SECTION  2.10  GOVERNING  LAW AND CONSTRUCTION.  THE VALIDITY, CONSTRUCTION
                    -------------------------------
AND  ENFORCEABILITY OF THIS AGREEMENT AND THE TERM NOTE SHALL BE GOVERNED BY THE
INTERNAL  LAWS  OF THE STATE OF WASHINGTON, WITHOUT GIVING EFFECT TO CONFLICT OF
LAWS  PRINCIPLES  THEREOF.

     SECTION  2.11  CONSENT  TO JURISDICTION.  AT THE OPTION OF THE LENDER, THIS
                    ------------------------
AGREEMENT  AND THE NOTE MAY BE ENFORCED IN ANY FEDERAL COURT OR WASHINGTON STATE
COURT  SITTING IN KING COUNTY; AND THE BORROWER CONSENTS TO THE JURISDICTION AND
VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT
CONVENIENT.  IN  THE  EVENT  THE  BORROWER  COMMENCES  ANY  ACTION  IN  ANOTHER
JURISDICTION  OR  VENUE  UNDER  ANY  TORT OR CONTRACT THEORY ARISING DIRECTLY OR
INDIRECTLY  FROM  THE  RELATIONSHIP CREATED BY THIS AGREEMENT, THE LENDER AT ITS
OPTION  SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO JURISDICTION AND VENUE
ABOVE-DESCRIBED,  OR  IF  SUCH  TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE
LAW,  TO  HAVE  SUCH  CASE  DISMISSED  WITHOUT  PREJUDICE.

     SECTION  2.12  WAIVER  OF  JURY TRIAL.  EACH OF THE BORROWER AND THE LENDER
                    ----------------------

                                        2
<PAGE>

IRREVOCABLY  WAIVES  ANY  AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING  OUT  OF  OR  RELATING  TO  THIS  AGREEMENT, THE NOTE AND ANY OTHER LOAN
DOCUMENTS  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR  THEREBY.

     Section  2.13  Counterparts.  This  Agreement may be executed in any number
                    ------------
of  counterparts,  all of which taken together shall constitute one and the same
instrument,  and  either  of  the  parties  hereto may execute this Agreement by
signing  any  such  counterpart.

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
executed  as  of  the  date  first  above  written.

                                            LONG DISTANCE BILLING SERVICES, INC.

                                            By  /s/ Patric Boggs
                                                ------------------
                                            Print Name  Patric Boggs
                                                        -------------
                                            Title  President & CEO
                                                   ---------------

                                        3
<PAGE>EXHIBIT 10.1(iii)

                               SECURITY AGREEMENT

     THIS SECURITY AGREEMENT, dated as of February 3, 2005, is made and given by
LONG  DISTANCE  BILLING SERVICES, INC., a Nevada corporation (the "Grantor"), to
NS8  CORPORATION,  a  Delaware  corporation  (the  "Secured  Party").

                                    RECITALS
                                    --------

     A.  The  Grantor  will  or  may  become, or is now, indebted to the Secured
Party  under  that  certain  promissory  note  in  the amount of $200,000, dated
February  3,  2005  (the  "Note").

     B.  The  Secured  Party  has  required the Grantor to execute this Security
Agreement  and  the  Grantor  has  agreed  to  do  so.

     C.   The Grantor finds it advantageous, desirable and in its best interests
to  comply  with  the  requirement  that  it  execute  and deliver this Security
Agreement  to  the  Secured  Party.

     NOW, THEREFORE, in consideration of the premises and in order to induce the
Secured  Party  to  extend or continue credit accommodations to the Grantor, the
Grantor  hereby agrees with the Secured Party for the Secured Party's benefit as
follows:

     Section  1.  Defined  Terms.
                  --------------

     1  (a)  As  used  in  this  Agreement,  the  following terms shall have the
meanings  indicated:

     "Account" shall mean the rights of the Grantor to payment for goods sold or
      -------
leased  or  for  services  rendered  which  is not evidenced by an Instrument or
Chattel  Paper,  whether  or  not such right has been earned by performance, all
guaranties  and  security  therefor,  and all interests in the goods the sale or
lease  of  which  gave  rise  thereto, including the right to stop such goods in
transit.

     "Account  Debtor"  shall  mean  a  Person  who is obligated on or under any
      ---------------
Account,  Chattel  Paper,  Instrument  or  General  Intangible.

     "Chattel  Paper"  shall  mean  a  writing or writings which evidence both a
      --------------
monetary  obligation and a security interest in or lease of specific goods; when
a  transaction  is  evidenced  by both a security agreement or a lease and by an
Instrument  or  a  series  of  Instruments, the group of writings taken together
constitutes  Chattel  Paper.

     "Collateral"  shall  mean  all property and rights in property now owned or
      ---------
hereafter  at  any  time  acquired  by  the  Grantor in or upon which a Security
Interest  is  granted  to the Secured Party by the Grantor under this Agreement.

                                        1
<PAGE>

     "Document"  shall  mean  any  bill  of  lading, dock warrant, dock receipt,
      --------
warehouse  receipt  or  order for the delivery of goods, together with any other
document  or  receipt  which  in  the regular course of business or financing is
treated as adequately evidencing that the Person in possession of it is entitled
to  receive,  hold  and  dispose  of  the  document  and  the  goods  it covers.

     "Equipment" shall mean all machinery, equipment, motor vehicles, furniture,
      ---------
furnishings  and fixtures, including all accessions, accessories and attachments
thereto,  and  any  guaranties,  warranties, indemnities and other agreements of
manufacturers,  vendors  and  others  with  respect  to  such  Equipment.

     "Event  of Default" shall have the meaning given to such term in Section 18
      ----------------
hereof.

     "Financing  Statement" shall have the meaning given to such term in Section
      --------------------
4  hereof.

     "General  Intangibles"  shall mean any personal property (other than goods,
      --------------------
Accounts,  Chattel  Paper, Documents, Instruments and money) including choses in
action, causes of action, contract rights, corporate and other business records,
inventions,  designs,  patents,  patent applications, service marks, trademarks,
tradenames,  trade  secrets,  internet  domain names, engineering drawings, good
will,  registrations,  copyrights,  licenses,  franchises,  customer  lists, tax
refund  claims, royalties, licensing and product rights, rights to the retrieval
from  third parties of electronically processed and recorded data and all rights
to  payment  resulting  from  an  order  of  any  court.

"Instrument"  shall  mean  a draft, check, certificate of deposit, note, bill of
 ----------
exchange,  security  or any other writing which evidences a right to the payment
of  money and is not itself a security agreement or lease and is of a type which
is transferred in the ordinary course of business by delivery with any necessary
endorsement  or  assignment.

     "Inventory"  shall  mean  any  and  all  goods  owned or held by or for the
      ---------
account  of the Grantor for sale or lease, or for furnishing under a contract of
service,  or  as  raw  materials,  work in process, materials incorporated in or
consumed  in  the  production of any of the foregoing and supplies, in each case
wherever  the  same  shall  be  located,  whether in transit, on consignment, in
retail  outlets,  warehouses, terminals or otherwise, and all property the sale,
lease  or  other disposition of which has given rise to an Account and which has
been  returned  to  the  Grantor  or  repossessed  by  the Grantor or stopped in
transit.

"Lien"  shall  mean  any  security  interest,  mortgage,  pledge,  lien, charge,
 ----
encumbrance,  title  retention  agreement  or  analogous  instrument  or  device
(including  the  interest of the lessors under capitalized leases), in, of or on
any  assets  or  properties  of  the  Person  referred  to.

                                        2
<PAGE>

     "Note"  shall  have  the  meaning  indicated  in  Recital  A.
      ----

     "Obligations"  shall  mean  (a) all principal of, and interest on, the Note
      -----------
and  any  extension,  renewal or replacement thereof, (b) all liabilities of the
Grantor  under  this  Agreement.

     "Person"  shall  mean  any  individual,  corporation,  partnership, limited
      ------
partnership, limited liability company, joint venture, firm, association, trust,
unincorporated  organization,  government  or  governmental  agency or political
subdivision  or  any other entity, whether acting in an individual, fiduciary or
other  capacity.

     "Security  Interest"  shall  have  the meaning given such term in Section 2
      ------------------
hereof.

     1  (b)  All  other  terms used in this Agreement which are not specifically
defined  herein  shall  have  the  meaning assigned to such terms in the Uniform
Commercial  Code  in  effect  in  the State of Washington as of the date of this
Agreement  to  the  extent  such  other  terms  are  defined  therein.

     1  (c)  Unless  the  context  of this Agreement otherwise clearly requires,
references to the plural include the singular, the singular, the plural and "or"
has  the  inclusive  meaning  represented  by  the  phrase  "and/or."  The words
"include,"  "includes"  and  "including"  shall  be deemed to be followed by the
phrase  "without  limitation."  The  words  "hereof,"  "herein," "hereunder" and
similar  terms  in  this Agreement refer to this Agreement as a whole and not to
any  particular  provision  of  this  Agreement.  References  to  Sections  are
references  to  Sections  in  this Security Agreement unless otherwise provided.

     Section  2.  Grant  of  Security Interest.  As security for the payment and
                  ---------------------------
performance  of all of the Obligations, the Grantor hereby grants to the Secured
Party  a  security  interest  (the  "Security Interest") in all of the Grantor's
right,  title,  and  interest  in and to the following, whether now or hereafter
owned,  existing,  arising  or  acquired  and  wherever  located:

     2  (a)  All  Accounts.

     2  (b)  All  Chattel  Paper.

     2  (c)  All  Documents.

     2  (d)  All  Equipment.

     2  (e)  All  General  Intangibles.

     2  (f)  All  Instruments.

     2  (g)  All  Inventory.

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<PAGE>

     2  (h) To the extent not otherwise included in the foregoing, (i) all other
rights  to  the  payment of money, including rents and other sums payable to the
Grantor  under  leases,  rental agreements and other Chattel Paper and insurance
proceeds; (ii) all books, correspondence, credit files, records, invoices, bills
of  lading,  and  other  documents  relating to any of the foregoing, including,
without  limitation,  all tapes, cards, disks, computer software, computer runs,
and  other  papers  and documents in the possession or control of the Grantor or
any  computer  bureau from time to time acting for the Grantor; (iii) all rights
in,  to  and  under  all  policies  insuring  the life of any officer, director,
stockholder or employee of the Grantor, the proceeds of which are payable to the
Grantor;  and  (iv) all accessions and additions to, parts and appurtenances of,
substitutions  for  and  replacements  of  any  of  the  foregoing.

     2  (i)  To  the extent not otherwise included, all proceeds and products of
any  and  all  of  the  foregoing.

     Section  3.  Grantor  Remains  Liable.  Anything  herein  to  the  contrary
                  ------------------------
notwithstanding, (a) the Grantor shall remain liable under the Accounts, Chattel
Paper,  General  Intangibles  and  other items included in the Collateral to the
extent set forth therein to perform all of its duties and obligations thereunder
to  the same extent as if this Agreement had not been executed, (b) the exercise
by  the  Secured  Party  of  any  of  the rights hereunder shall not release the
Grantor  from  any  of its duties or obligations under any items included in the
Collateral,  and  (c)  the  Secured  Party shall have no obligation or liability
under  Accounts,  Chattel Paper, General Intangibles and other items included in
the  Collateral  by  reason  of  this  Agreement, nor shall the Secured Party be
obligated  to perform any of the obligations or duties of the Grantor thereunder
or  to  take  any  action  to  collect or enforce any claim for payment assigned
hereunder.

     Section 4.  Title to Collateral.  The Grantor has (or will have at the time
                 -------------------
it  acquires  rights  in  Collateral  hereafter  acquired  or  arising) and will
maintain  so long as the Security Interest may remain outstanding, title to each
item of Collateral (including the proceeds and products thereof), free and clear
of  all  Liens  except  the  Security  Interest.  The  Grantor  will  defend the
Collateral  against all claims or demands of all Persons (other than the Secured
Party)  claiming  the  Collateral  or  any  interest therein.  As of the date of
execution  of this Security Agreement, no effective financing statement or other
similar document used to perfect and preserve a security interest under the laws
of  any  jurisdiction  (a "Financing Statement") covering all or any part of the
Collateral  is  on  file  in  any recording office, except such as may have been
filed  in  favor  of  the  Secured  Party  relating  to  this  Agreement,.

     Section 5.  Disposition of Collateral.  The Grantor will not sell, lease or
                 -------------------------
otherwise  dispose  of,  or  discount  or  factor  with or without recourse, any
Collateral,  except  sales  of  items  of  Inventory  in  the ordinary course of
business.

     Section  6.  Names,  Offices,  Locations.  The Grantor does business solely
                  ---------------------------
under its own name and the trade names and styles, if any, set forth on Schedule
II  hereto.  Except as noted on said Schedule, no such trade names or styles and

                                        4
<PAGE>

no  trademarks  or  other similar marks owned by the Grantor are registered with
any  governmental  unit.  The chief place of business and chief executive office
and  the office where it keeps its books and records concerning the Accounts and
General  Intangibles  and  the  originals  of  all  Chattel Paper, Documents and
Instruments  are  located at its address set forth on the signature page hereof.
All  items of Equipment and Inventory existing on the date of this Agreement are
located  at  the  places  specified  on  Schedule  I  hereto.  The  Grantor will
immediately  notify  the Secured Party of any additional state in which any item
of  Inventory  or Equipment is hereafter located.  The Grantor will from time to
time  at the request of the Secured Party provide the Secured Party with current
lists  as to the locations of the Equipment and Inventory.  The Grantor will not
permit  any  Inventory,  Equipment,  Chattel  Paper  or Documents or any records
pertaining  to  Accounts  and  General Intangibles to be located in any state or
area  in  which,  in  the event of such location, a financing statement covering
such  Collateral  would  be  required  to be, but has not in fact been, filed in
order to perfect the Security Interest.  The Grantor will not change its name or
the  location  of  its chief place of business and chief executive office unless
the  Secured  Party has been given at least 30 days prior written notice thereof
and  the  Grantor has executed and delivered to the Secured Party such Financing
Statements  and  other  instruments  required  or  appropriate  to  continue the
perfection  of  the  Security  Interest.

     Section  7.  Rights  to  Payment.  As  of  the  date  of  execution of this
                  -------------------
Security  Agreement, the Accounts aged 60 days or less have a value in excess of
US$1,000,000.  Each  Account,  Chattel  Paper,  Document, General Intangible and
Instrument  constituting  or  evidencing  Collateral  is (or, in the case of all
future  Collateral,  will  be  when  arising  or  issued) the valid, genuine and
legally  enforceable  obligation  of  the  Account Debtor or other obligor named
therein or in the Grantor's records pertaining thereto as being obligated to pay
or  perform such obligation.  Without the Secured Party's prior written consent,
the  Grantor  will  not  agree to any modifications, amendments, subordinations,
cancellations  or terminations of the obligations of any such Account Debtors or
other  obligors  except  in  the  ordinary course of business and in amounts not
exceeding  $1,000 per Account Debtor or other obligor in any calendar year.  The
Grantor  will  perform  and  comply  in  all  material  respects  with  all  its
obligations under any items included in the Collateral and exercise promptly and
diligently  its  rights  thereunder.

     Section  8.   Further  Assurances;  Attorney-in-Fact.
                   --------------------------------------

     8  (a)  The  Grantor agrees that from time to time, at its expense, it will
promptly execute and deliver all further instruments and documents, and take all
further  action,  that may be necessary or that the Secured Party may reasonably
request,  in  order  to  perfect  and  protect  the Security Interest granted or
purported  to  be  granted hereby or to enable the Secured Party to exercise and
enforce  its  rights  and remedies hereunder with respect to any Collateral (but
any  failure  to  request  or  assure  that the Grantor execute and deliver such
instrument  or  documents  or to take such action shall not affect or impair the
validity,  sufficiency  or  enforceability  of  this  Agreement and the Security
Interest,  regardless  of  whether  any  such  item  was or was not executed and
delivered or action taken in a similar context or on a prior occasion).  Without
limiting  the  generality  of the foregoing, the Grantor will, promptly and from
time  to  time  at  the  request  of the Secured Party:  (i) mark, or permit the

                                        5
<PAGE>

Secured Party to mark, conspicuously its books, records, and accounts showing or
dealing  with  the  Collateral,  and  each item of Chattel Paper included in the
Collateral,  with  a  legend,  in form and substance satisfactory to the Secured
Party,  indicating  that  each  such  item  of  Collateral and each such item of
Chattel  Paper  is subject to the Security Interest granted hereby; (ii) deliver
and pledge to the Secured Party, all Instruments and Documents, duly indorsed or
accompanied  by  duly  executed instruments of transfer or assignment, with full
recourse  to  the Grantor, all in form and substance satisfactory to the Secured
Party;  (iii)  execute  and  file  such  Financing  Statements  or  continuation
statements in respect thereof, or amendments thereto, and such other instruments
or  notices  (including fixture filings with any necessary legal descriptions as
to any goods included in the Collateral which the Secured Party determines might
be  deemed  to  be fixtures, and instruments and notices with respect to vehicle
titles),  as may be necessary or desirable, or as the Secured Party may request,
in  order  to  perfect,  preserve,  and enhance the Security Interest granted or
purported to be granted hereby; and (iv) obtain waivers, in form satisfactory to
the  Secured  Party,  of  any  claim  to  any  Collateral  from any landlords or
mortgagees  of  any  property  where  any  Inventory  or  Equipment  is located.

     8  (b)  The Grantor hereby authorizes the Secured Party to file one or more
Financing  Statements  or  continuation  statements  in  respect  thereof,  and
amendments  thereto,  relating  to all or any part of the Collateral without the
signature  of  the  Grantor  where  permitted  by  law.  A  photocopy  or  other
reproduction  of  this  Agreement  or  any  Financing  Statement  covering  the
Collateral  or  any  part  thereof  shall be sufficient as a Financing Statement
where  permitted  by  law.

     8  (c)  The  Grantor  will  furnish  to the Secured Party from time to time
statements  and  schedules further identifying and describing the Collateral and
such  other  reports  in connection with the Collateral as the Secured Party may
reasonably  request,  all  in  reasonable  detail  and  in  form  and  substance
reasonably  satisfactory  to  the  Secured  Party.

     8  (d)  In  furtherance, and not in limitation, of the other rights, powers
and  remedies granted to the Secured Party in this Agreement, the Grantor hereby
appoints  the  Secured Party the Grantor's attorney-in-fact, with full authority
in  the place and stead of Grantor and in the name of Grantor or otherwise, from
time  to  time  in the Secured Party's good faith discretion, to take any action
(including the right to collect on any Collateral) and to execute any instrument
that  the  Secured  Party  may  reasonably  believe is necessary or advisable to
accomplish the purposes of this Agreement, in a manner consistent with the terms
hereof.

     Section  9.  Taxes and Claims.  The Grantor will promptly pay all taxes and
                  ----------------
other  governmental charges levied or assessed upon or against any Collateral or
upon  or  against  the  creation,  perfection  or  continuance  of  the Security
Interest,  as  well as all other claims of any kind (including claims for labor,
material  and supplies) against or with respect to the Collateral, except to the
extent  (a)  such  taxes, charges or claims are being contested in good faith by
appropriate proceedings, (b) such proceedings do not involve any material danger

                                        6
<PAGE>

of the sale, forfeiture or loss of any of the Collateral or any interest therein
and  (c)  such  taxes,  charges or claims are adequately reserved against on the
Grantor's  books  in  accordance  with generally accepted accounting principles.

     Section  10.  Books and Records.  The Grantor will keep and maintain at its
                   -----------------
own  cost  and  expense  satisfactory  and  complete  records of the Collateral,
including  a record of all payments received and credits granted with respect to
all  Accounts,  Chattel  Paper  and  other  items  included  in  the Collateral.

     Section  11.  Inspection, Reports, Verifications.  The Grantor will at
                   ----------------------------------
all  reasonable times permit the Secured Party or its representatives to examine
or  inspect  any  Collateral, any evidence of Collateral and the Grantor's books
and  records  concerning the Collateral, wherever located. The Grantor will from
time  to time when requested by the Secured Party furnish to the Secured Party a
report  on  its  Accounts,  Chattel  Paper, General Intangibles and Instruments,
naming  the  Account  Debtors  or other obligors thereon, the amount due and the
aging  thereof.  The  Secured  Party  or  its  designee is authorized to contact
Account  Debtors and other Persons obligated on any such Collateral from time to
time  to  verify  the  existence,  amount  and/or  terms  of  such  Collateral.

     Section  12.  Notice of Loss.  The Grantor will promptly notify the Secured
                   --------------
Party of any loss of or material damage to any material item of Collateral or of
any  substantial  adverse  change,  known  to  Grantor,  in any material item of
Collateral  or  the  prospect  of  payment  or  performance  thereof.

     Section  13.  Insurance.  The Grantor will keep the Inventory and Equipment
                   ---------
insured  against  "all risks" for the full replacement cost thereof subject to a
deductible not exceeding the current deductible and with an insurance company or
companies satisfactory to the Secured Party, the policies to protect the Secured
Party  as  its  interests  may  appear,  with such policies or certificates with
respect  thereto to be delivered to the Secured Party at its request.  Each such
policy  or  the  certificate with respect thereto shall provide that such policy
shall  not be canceled or allowed to lapse unless at least 30 days prior written
notice  is  given  to  the  Secured  Party.

     Section 14.  Lawful Use; Fair Labor Standards Act. The Grantor will use and
                  ------------------------------------
keep  the  Collateral, and will require that others use and keep the Collateral,
only  for lawful purposes, without violation of any federal, state or local law,
statute  or  ordinance.  All  Inventory  of  the  Grantor as of the date of this
Agreement  that was produced by the Grantor or with respect to which the Grantor
performed any manufacturing  or assembly process was produced by the Grantor (or
such  manufacturing  or  assembly  process  was  conducted) in compliance in all
material respects with all requirements of the Fair Labor Standards Act, and all
Inventory  produced,  manufactured or assembled by the Grantor after the date of
this  Agreement  will be so produced, manufactured or assembled, as the case may
be.

     Section 15.  Action by the Secured Party.  If the Grantor at any time fails
                  ---------------------------
to  perform  or observe any of the foregoing agreements, the Secured Party shall

                                        7
<PAGE>

have  (and  the Grantor hereby grants to the Secured Party) the right, power and
authority  (but not the duty) to perform or observe such agreement on behalf and
in  the name, place and stead of the Grantor (or, at the Secured Party's option,
in  the  Secured  Party's  name) and to take any and all other actions which the
Secured  Party  may  reasonably  deem  necessary to cure or correct such failure
(including, without limitation, the payment of taxes, the satisfaction of Liens,
the  procurement  and  maintenance  of  insurance, the execution of assignments,
security  agreements  and  Financing  Statements,  and  the  indorsement  of
instruments); and the Grantor shall thereupon pay to the Secured Party on demand
the  amount  of  all  monies  expended  and  all  costs  and expenses (including
reasonable  attorneys' fees and legal expenses) incurred by the Secured Party in
connection  with  or  as  a  result  of  the  performance  or observance of such
agreements  or  the  taking  of  such action by the Secured Party, together with
interest  thereon  from the date expended or incurred at the highest lawful rate
then  applicable  to any of the Obligations, and all such monies expended, costs
and  expenses  and  interest thereon shall be part of the Obligations secured by
the  Security  Interest.

     Section  16.  Insurance Claims.  As additional security for the payment and
                   ----------------
performance  of the Obligations, the Grantor hereby assigns to the Secured Party
any  and  all  monies  (including  proceeds of insurance and refunds of unearned
premiums)  due  or to become due under, and all other rights of the Grantor with
respect  to,  any  and  all  policies  of insurance now or at any time hereafter
covering  the  Collateral  or  any  evidence  thereof or any business records or
valuable  papers  pertaining  thereto.  At any time, whether before or after the
occurrence of any Event of Default, the Secured Party may (but need not), in the
Secured  Party's name or in Grantor's name, execute and deliver proofs of claim,
receive  all  such  monies,  indorse  checks  and other instruments representing
payment  of  such  monies, and adjust, litigate, compromise or release any claim
against the issuer of any such policy.  Notwithstanding any of the foregoing, so
long  as  no  Event  of  Default  exists  the  Grantor  shall be entitled to all
insurance  proceeds  with  respect  to Equipment or Inventory provided that such
proceeds  are  applied  to  the  cost  of  replacement  Equipment  or Inventory.

     Section  17.  The  Secured  Party's  Duties.  The  powers  conferred on the
                   -----------------------------
Secured Party hereunder are solely to protect its interest in the Collateral and
shall  not  impose  any  duty  upon it to exercise any such powers.  The Secured
Party  shall  be  deemed to have exercised reasonable care in the safekeeping of
any  Collateral  in  its  possession  if  such  Collateral is accorded treatment
substantially  equal  to the safekeeping which the Secured Party accords its own
property  of  like  kind.  Except  for  the safekeeping of any Collateral in its
possession  and  the  accounting  for  monies  and for other properties actually
received  by  it  hereunder,  the  Secured  Party  shall have no duty, as to any
Collateral,  as  to  ascertaining  or  taking  action  with  respect  to  calls,
conversions,  exchanges,  maturities,  tenders  or other matters relative to any
Collateral,  whether or not the Secured Party has or is deemed to have knowledge
of  such  matters, or as to the taking of any necessary steps to preserve rights
against  any  Persons  or  any  other  rights pertaining to any Collateral.  The
Secured  Party  will  take  action  in  the  nature  of  exchanges, conversions,
redemptions,  tenders  and  the  like  requested  in writing by the Grantor with
respect to the Collateral in the Secured Party's possession if the Secured Party
in  its  reasonable  judgment  determines  that  such action will not impair the
Security  Interest  or the value of the Collateral, but a failure of the Secured
Party to comply with any such request shall not of itself be deemed a failure to
exercise  reasonable  care.

     Section  18.  Default.  Each  of the following occurrences shall constitute
                   -------
an Event of Default under this Agreement:  (a) the failure of the Grantor to pay
when  due  any of the Obligations; (b) the failure of the Grantor to perform any
agreement  of  the  contained  herein or in any other agreement with the Secured
Party;  (c) any statement, representation or warranty of the Grantor made herein
or at any time furnished to the Secured Party is untrue in any respect as of the
date  made;  (d)  the entry of any judgment against the Grantor; (e) the Grantor
becomes  insolvent  or is generally not paying its debts as they become due; (f)
the  appointment of or assignment to a custodian, as that term is defined in the
United  States Bankruptcy Code, for any property of the Grantor, or encumbrance,
levy,  seizure  or  attachment  of  any  portion  of  the  Collateral;  (g)  the
commencement  of  any  proceeding  or the filing of a petition by or against the
Grantor  under  the  provisions  of  the  United  States  Bankruptcy  Code  for
liquidation,  reorganization  or adjustment of debts or under any insolvency law
or  other  statute  or  law  providing for the modification or adjustment of the

                                        8
<PAGE>

rights  of  creditors; or (h) dissolution, consolidation, or merger, or transfer
of  a  substantial  part  of  the  property  of  the  Grantor.

     Section  19.  Remedies  on  Default.  Upon  the  occurrence  of an Event of
                   ---------------------
Default  and  at  any  time  thereafter:

     19  (a)  The  Secured Party may exercise and enforce any and all rights and
remedies  available upon default to a secured party under the Uniform Commercial
Code.

     19  (b)  The  Secured Party shall have the right to enter upon and into and
take  possession  of all or such part or parts of the properties of the Grantor,
including  lands,  plants, buildings, Equipment, Inventory and other property as
may  be  necessary or appropriate in the judgment of the Secured Party to permit
or  enable the Secured Party to  manufacture, produce, process, store or sell or
complete the  manufacture, production, processing, storing or sale of all or any
part  of  the Collateral, as the Secured Party may elect, and to use and operate
said  properties  for  said  purposes and for such length of time as the Secured
Party may deem necessary or appropriate for said purposes without the payment of
any compensation to Grantor therefor.  The Secured Party may require the Grantor
to,  and the Grantor hereby agrees that it will, at its expense and upon request
of  the  Secured  Party  forthwith,  assemble  all  or part of the Collateral as
directed  by  the  Secured Party and make it available to the Secured Party at a
place  or  places  to  be  designated  by  the  Secured  Party.

     19  (c)  Any  sale of Collateral may be in one or more parcels at public or
private  sale,  at any of the Secured Party's offices or elsewhere, for cash, on
credit,  or  for future delivery, and upon such other terms as the Secured Party
may reasonably believe are commercially reasonable.  The Secured Party shall not
be  obligated to make any sale of Collateral regardless of notice of sale having
been  given,  and  the Secured Party may adjourn any public or private sale from
time to time by announcement made at the time and place fixed therefor, and such

                                        9
<PAGE>

sale  may, without further notice, be made at the time and place to which it was
so  adjourned.

     19 (d) The Secured Party is hereby granted a license or other right to use,
without  charge,  all  of the Grantor's property, including, without limitation,
all  of  the  Grantor's  labels, trademarks, copyrights, patents and advertising
matter,  or  any property of a similar nature, as it pertains to the Collateral,
in  completing  production  of, advertising for sale and selling any Collateral,
and  the  Grantor's rights under all licenses and all franchise agreements shall
inure  to  the  Secured  Party's benefit until the Obligations are paid in full.

     19  (e)  If notice to the Grantor of any intended disposition of Collateral
or  any  other intended action is required by law in a particular instance, such
notice  shall be deemed commercially reasonable if given in the manner specified
for  the  giving of notice in Section 24 hereof at least ten calendar days prior
to  the  date of intended disposition or other action, and the Secured Party may
exercise  or  enforce  any  and all other rights or remedies available by law or
agreement  against  the  Collateral,  against  the Grantor, or against any other
Person  or  property.

     Section 20.  Remedies as to Certain Rights to Payment.  Upon the occurrence
                  ----------------------------------------
of  an  Event of Default and at any time thereafter the Secured Party may notify
any Account Debtor or other Person obligated on any Accounts or other Collateral
that  the  same  have been assigned or transferred to the Secured Party and that
the  same  should be performed as requested by, or paid directly to, the Secured
Party, as the case may be.  The Grantor shall join in giving such notice, if the
Secured  Party  so requests.  The Secured Party may, in the Secured Party's name
or  in  the  Grantor's  name,  demand,  sue for, collect or receive any money or
property  at any time payable or receivable on account of, or securing, any such
Collateral  or grant any extension to, make any compromise or settlement with or
otherwise  agree  to  waive,  modify, amend or change the obligation of any such
Account  Debtor  or  other  Person.  If  any payments on any such Collateral are
received  by  the  Grantor after an Event of Default has occurred, such payments
shall  be  held in trust by the Grantor as the property of the Secured Party and
shall  not  be commingled with any funds or property of the Grantor and shall be
forthwith  remitted  to  the  Secured  Party for application on the Obligations.

     Section  21.  Application  of Proceeds.   All cash proceeds received by the
                   ------------------------
Secured  Party  in respect of any sale of, collection from, or other realization
upon  all  or  any  part of the Collateral may, in the discretion of the Secured
Party,  be  held  by the Secured Party as collateral for, or then or at any time
thereafter  be  applied in whole or in part by the Secured Party against, all or
any  part of the Obligations (including, without limitation, any expenses of the
Secured  Party  payable  pursuant  to  Section  22  hereof).

     Section  22.  Costs  and  Expenses;  Indemnity.  The  Grantor  will  pay or
                   --------------------------------
reimburse  the Secured Party on demand for all out-of-pocket expenses (including
in each case all filing and recording fees and taxes and all reasonable fees and
expenses of counsel and of any experts and agents) incurred by the Secured Party

                                       10
<PAGE>

in  connection  with  the  creation,  perfection,  protection,  satisfaction,
foreclosure  or  enforcement  of  the  Security  Interest  and  the preparation,
administration, continuance, amendment or enforcement of this Agreement, and all
such costs and expenses shall be part of the Obligations secured by the Security
Interest.  The  Grantor shall indemnify and hold the Secured Party harmless from
and  against  any  and  all claims, losses and liabilities (including reasonable
attorneys'  fees)  growing  out  of  or  resulting  from  this Agreement and the
Security  Interest  hereby  created (including enforcement of this Agreement) or
the  Secured  Party's  actions  pursuant  hereto,  except  claims,  losses  or
liabilities  resulting  from  the  Secured  Party's  gross negligence or willful
misconduct  as  determined  by  a  final  judgment  of  a  court  of  competent
jurisdiction.  Any  liability  of  the Grantor to indemnify and hold the Secured
Party  harmless  pursuant  to  the  preceding  sentence  shall  be  part  of the
Obligations  secured  by  the Security Interest.  The obligations of the Grantor
under  this  Section  shall  survive  any  termination  of  this  Agreement.

     Section 23.  Waivers; Remedies; Marshalling.  This Agreement can be waived,
                  ------------------------------
modified,  amended,  terminated  or discharged, and the Security Interest can be
released, only explicitly in a writing signed by the Secured Party.  A waiver so
signed  shall  be  effective  only in the specific instance and for the specific
purpose  given.  Mere delay or failure to act shall not preclude the exercise or
enforcement  of  any  rights  and  remedies available to the Secured Party.  All
rights  and  remedies  of  the  Secured  Party  shall  be  cumulative and may be
exercised  singly  in  any  order  or  sequence, or concurrently, at the Secured
Party's  option,  and  the  exercise  or enforcement of any such right or remedy
shall  neither  be  a  condition  to  nor bar the exercise or enforcement of any
other.  The  Grantor  hereby waives all requirements of law, if any, relating to
the  marshalling  of  assets  which  would  be applicable in connection with the
enforcement  by the Secured Party of its remedies hereunder, absent this waiver.

     Section  24.   Notices.  Any  notice or other communication to any party in
                    -------
connection  with  this Agreement shall be in writing and shall be sent by manual
delivery,  telegram,  telex, facsimile transmission, overnight courier or United
States  mail  (postage prepaid) addressed to such party at the address specified
on  the signature page hereof, or at such other address as such party shall have
specified  to the other party hereto in writing.  All periods of notice shall be
measured  from the date of delivery thereof if manually delivered, from the date
of  sending  thereof  if sent by telegram, telex or facsimile transmission, from
the  first  business day after the date of sending if sent by overnight courier,
or  from  four  days  after  the  date  of  mailing  if  mailed.

     Section  25.   Grantor  Acknowledgments.  The  Grantor  hereby acknowledges
                    ------------------------
that  (a)  it  has  been  advised  by  counsel in the negotiation, execution and
delivery  of this Agreement, (b) the Secured Party has no fiduciary relationship
to  the  Grantor, the relationship being solely that of debtor and creditor, and
(c)  no  joint  venture  exists  between  the  Grantor  and  the  Secured Party.

     Section 26.  Continuing Security Interest.  This Agreement shall (a) create
                  ----------------------------
a  continuing security interest in the Collateral and shall remain in full force
and  effect  until  payment in full of the Obligations and the expiration of the
obligations, if any, of the Secured Party to extend credit accommodations to the
Grantor,  (b)  be  binding upon the Grantor, its successors and assigns, and (c)

                                       11
<PAGE>

inure  to  the  benefit  of,  and  be  enforceable by, the Secured Party and its
successors,  transferees,  and  assigns.

     Section 27.  Termination of Security Interest.  Upon payment in full of the
                  --------------------------------
Obligations  and the expiration of any obligation of the Secured Party to extend
credit accommodations to the Grantor, the Security Interest granted hereby shall
terminate.  Upon  any  such  termination,  the  Secured Party will return to the
Grantor  such  of  the Collateral then in the possession of the Secured Party as
shall  not  have been sold or otherwise applied pursuant to the terms hereof and
execute  and  deliver  to  the  Grantor  such  documents  as  the  Grantor shall
reasonably  request  to  evidence  such termination.  Any reversion or return of
Collateral upon termination of this Agreement and any instruments of transfer or
termination shall be at the expense of the Grantor and shall be without warranty
by,  or  recourse  on,  the  Secured  Party.  As used in this Section, "Grantor"
includes  any  assigns  of  Grantor,  any  Person holding a subordinate security
interest  in  any  of the Collateral or whoever else may be lawfully entitled to
any  part  of  the  Collateral.

     SECTION  28.  GOVERNING  LAW  AND CONSTRUCTION.  THE VALIDITY, CONSTRUCTION
                   --------------------------------
AND  ENFORCEABILITY OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF  WASHINGTON,  WITHOUT  GIVING  EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF,
EXCEPT  TO  THE  EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST
HEREUNDER,  OR  REMEDIES  HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE
MANDATORILY  GOVERNED  BY  THE  LAWS  OF  A JURISDICTION OTHER THAN THE STATE OF
WASHINGTON.   Whenever  possible, each provision of this Agreement and any other
statement,  instrument  or  transaction  contemplated  hereby or relating hereto
shall  be  interpreted  in  such  manner as to be effective and valid under such
applicable  law, but, if any provision of this Agreement or any other statement,
instrument  or  transaction contemplated hereby or relating hereto shall be held
to  be  prohibited or invalid under such applicable law, such provision shall be
ineffective  only  to  the  extent  of  such  prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement  or any other statement, instrument or transaction contemplated hereby
or  relating  hereto.

          SECTION  29.  CONSENT  TO  JURISDICTION.  AT THE OPTION OF THE SECURED
                        -------------------------
PARTY,  THIS  AGREEMENT MAY BE ENFORCED IN ANY FEDERAL COURT OR WASHINGTON STATE
COURT  SITTING  IN KING COUNTY; AND THE GRANTOR CONSENTS TO THE JURISDICTION AND
VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT
CONVENIENT.  IN  THE  EVENT  THE  GRANTOR  COMMENCES  ANY  ACTION  IN  ANOTHER
JURISDICTION  OR  VENUE  UNDER  ANY  TORT OR CONTRACT THEORY ARISING DIRECTLY OR
INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT, THE SECURED PARTY AT
ITS  OPTION  SHALL  BE ENTITLED TO HAVE THE CASE TRANSFERRED TO THE JURISDICTION

                                       12
<PAGE>

AND  VENUE  ABOVE-DESCRIBED,  OR  IF  SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER
APPLICABLE  LAW,  TO  HAVE  SUCH  CASE  DISMISSED  WITHOUT  PREJUDICE.

     SECTION  30.  WAIVER  OF NOTICE AND HEARING.  THE GRANTOR HEREBY WAIVES ALL
                   -----------------------------
RIGHTS  TO  A  JUDICIAL HEARING OF ANY KIND PRIOR TO THE EXERCISE BY THE SECURED
PARTY  OF ITS RIGHTS TO POSSESSION OF THE COLLATERAL WITHOUT JUDICIAL PROCESS OR
OF  ITS  RIGHTS  TO  REPLEVY,  ATTACH, OR LEVY UPON THE COLLATERAL WITHOUT PRIOR
NOTICE OR HEARING.  THE GRANTOR ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY COUNSEL
OF  ITS  CHOICE  WITH  RESPECT  TO  THIS  PROVISION  AND  THIS  AGREEMENT.

     SECTION  31.  WAIVER  OF  JURY  TRIAL.  EACH OF THE GRANTOR AND THE SECURED
                   -----------------------
PARTY, BY ITS ACCEPTANCE OF THIS AGREEMENT, IRREVOCABLY WAIVES ANY AND ALL RIGHT
TO  TRIAL  BY  JURY  IN  ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY.

     Section 32.  Counterparts.  This Agreement may be executed in any number of
                  ------------
counterparts,  each  of  which when so executed and delivered shall be deemed an
original,  but  all  such counterparts together shall constitute but one and the
same  instrument.

     Section 33.  General.  All representations and warranties contained in this
                  -------
Agreement  or  in  any other agreement between the Grantor and the Secured Party
shall  survive the execution, delivery and performance of this Agreement and the
creation  and  payment  of  the  Obligations.  The  Grantor waives notice of the
acceptance  of  this Agreement by the Secured Party.  Captions in this Agreement
are  for  reference and convenience only and shall not affect the interpretation
or  meaning  of  any  provision  of  this  Agreement.

     IN  WITNESS  WHEREOF,  the Grantor has caused this Security Agreement to be
duly  executed  and delivered by its officer thereunto duly authorized as of the
date  first  above  written.

                                            LONG DISTANCE BILLING SERVICES, INC.

                                            By  /s/ Patric Boggs
                                                ------------------

                                            Title  President & CEO
                                                   -----------------
Address  for  Grantor:
436  Lynchburg  Avenue
Brookneal,  Virginia  24528
[    ]
Fax  [425]  799-4481
Grantor's  Tax  ID  #  [54]  1994680

                                       13
<PAGE>

Address  for  the  Secured  Party:
NS8  Corporation
One  Union  Square,  Suite  1525
600  University  Street
Seattle,  Washington
98101
Fax  (206)  342-1799

                                       14
<PAGE>

                                   SCHEDULE I
                                       to
                               Security Agreement

Locations  of  Equipment  and  Inventory  as  of  Date  of  Security  Agreement

[Locations  to  be  provided,  including county.  Locations not owned by Grantor
should  be  specified  with  name  of  landlord  or  warehouse.]

436  Lynchburg  Avenue
Brookneal,  Virginia  24528
Campbell  County

Brookneal  Rescue  Squad  owns  the  physical  building  -  we rent it from them

                                       15
<PAGE>

                                   SCHEDULE II
                                       to
                               Security Agreement

Trade  Names  and  Trade  Styles

[To  be  provided.]

Long  Distance  Billing  Service,  Inc.
"LDBS,  Inc."

                                       16
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]