Document:

FUNDING AGREEMENT
                                -----------------

                  THIS FUNDING AGREEMENT (the "Agreement"),  is dated as of June
14, 2000 by and between Voice & Data  Communications  (Latin  America),  Inc., a
Delaware  corporation  (the  "Sub"),  and VDC  COMMUNICATIONS,  INC., a Delaware
corporation (the "Company").

                              W I T N E S S E T H:
                              --------------------

         WHEREAS,  pursuant to a Merger Agreement by and among the Company,  the
Sub,  Rare  Telephony,  Inc.,  a Nevada  corporation  (f/k/a  Washoe  Technology
Corporation)  ("Rare  Telephony"),  and the  holders  of all of the  outstanding
shares of common stock of Rare  Telephony  dated May 25, 2000, as amended,  (the
"Merger Agreement"),  Rare Telephony merged with and into the Sub (the "Merger")
for shares of common stock of the Company;

         WHEREAS,  the terms of the Merger Agreement  provided for the execution
of this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein  contained  and other good and  valuable  consideration,  the receipt and
sufficiency of which are hereby acknowledged,  the parties hereto,  intending to
be legally bound, hereby agree as follows:

1.       Establishment of Accounts.
         --------------------------

         (a)      The  Sub  shall  open  up  a  bank  account  (or,  in its sole
discretion,  a money market fund  account) the purpose of which shall be to hold
certain funds which shall be used exclusively to fund the business operations of
Sub and Cash Back Rebates LD.com,  Inc., a Delaware  corporation (the "Cash Back
Account").  The sole  signatory  on the Cash Back  Account  shall be  Clayton F.
Moran.

         (b)      The Sub shall open up a bank account to hold certain funds the
sole purpose of which is to fund the  development  of a robust web site for Free
dot  Calling.com,  Inc.  (the "Free  Account").  The sole  signatory on the Free
Account shall be Clayton F. Moran.

2.       Funding of Accounts.
         --------------------

         (a)      The Company  has agreed to provide up to ONE  MILLION  DOLLARS
AND NO/100 ($1,000,000.00) (the "Commitment") for the operations of Sub (and its
predecessor  Rare  Telephony)  and Cash Back  Rebates  LD.com,  Inc., a Delaware
corporation  ("Cash  Back").  As of the  date  of  this  Agreement,  in  partial
satisfaction  of the  Commitment,  the Company has loaned to Rare  Telephony and
Cash Back, SIX HUNDRED  THOUSAND  DOLLARS AND NO/100  ($600,000.00)  (the "Prior
Loans"). Within five (5) business days of the "Effective Time" of the Merger (as
defined in the Merger  Agreement),  the Company  shall  deposit in the Cash Back
Account,  FOUR  HUNDRED  THOUSAND  DOLLARS  AND  NO/100  ($400,000.00)  in  full
satisfaction of the Commitment.

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         (b)      The  Company  has  committed to providing ONE HUNDRED THOUSAND
DOLLARS  AND NO/100  ($100,000.00)  (the "Free  Commitment")  to the Sub for the
development of a robust web site for Free.  Within five (5) business days of the
Effective  Time of the Merger,  the Company shall  deposit ONE HUNDRED  THOUSAND
DOLLARS AND NO/100  ($100,000.00)  into the Free Account in full satisfaction of
the Free Commitment.

         (c)      The  "Effective  Time"  of  the  Merger  for  purposes of this
Agreement shall be the Effective Time indicated on an Effective Time Certificate
executed by the Company at the closing of the Merger.

         (d)      Notwithstanding  the  foregoing,  prior to the Company  having
any  obligation to deposit any funds in either the Cash Back Account or the Free
Account,  Sub shall  execute a promissory  note in the form  attached  hereto as
Exhibit "A" for the full  amount to be funded in both the Cash Back  Account and
the Free  Account.  The note shall have a maturity  date of four (4) years after
the  Effective  Time and shall  provide  for an  interest  rate of 8% per annum.
Additionally,  Sub,  Cash  Back and  Free  shall  execute  any  other  documents
reasonably  requested by the Company in connection  with the funding of the Cash
Back  Account and the Free  Account.  Without  limiting  the  generality  of the
foregoing, it is understood and agreed by the parties hereto, that the documents
referenced  in the  preceding  sentence  may  include  guarantees  and  that the
Company, at any time in the Company's sole discretion, may require that the Sub,
Cash Back,  and/or Free (in the Company's  sole  discretion)  execute a Security
Agreement and a UCC-1  covering all items that the Company views as necessary or
reasonable to protect the indebtedness of Sub to the Company.

3.       Disbursement of the Funds in the Cash Back Account.
         ---------------------------------------------------

         (a)      The funds in the Cash  Back  Account  shall be used to pay for
the  normal and  customary  business  expenses  of Cash Back  including  but not
limited to the expenses listed on Exhibit "B" hereto and incorporated  herein by
reference.

         (b)      The funds in the Cash  Back  Account  shall not be used to pay
for extraordinary and non-customary  business or other expenses  including,  but
not  limited  to,  payments  to  employees  outside  the terms of an  employee's
employment  agreement,  loans  or  advances  to  employees,  and  other  similar
expenditures.  Without  limiting the generality of the  foregoing,  it is agreed
that  the  funds  in the  Cash  Back  Account  shall  not be used for any of the
following purposes (unless otherwise approved in advance in writing by the Chief
Executive Officer of the Company):

                  (1)      To make any loan or advance to, or purchase,  acquire
or own any stock,  bonds,  notes or securities of, or any  partnership  interest
(whether general or limited) in, or any other investment or interest in, or make
any capital contribution to, any other person or entity;

                  (2)      To make  any  dividend or other  distribution  of any
nature on account of or in respect of the shares of capital  stock of Sub,  Cash
Back or Fee (collectively  referred to as the "Rare Companies") or on account of
the purchase,  redemption,  retirement or  acquisition of said shares of capital
stock (or warrants, options or rights therefor);

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                  (3)      To lease or purchase  any new  equipment in excess of
$1,000 for use in the operations of any of the Rare Companies;

                  (4)      To make a payment in settlement  of  any  litigation,
investigation, arbitration, or dispute to which any one of the Rare Companies is
a party or of which any one of the Rare  Companies (or its officers,  directors,
or employees) is aware as of the execution of this Agreement;

                  (5)      To  make  any  payment  for  any   obligation,  lien,
liability,  or  indebtedness  that is  represented  as not existing  (whether by
affirmative  representation,  omission of reference, or otherwise) in the Merger
Agreement; or

                  (6)      To  pay  more  than 1/2 of the legal fees  charged by
Fuhro & Hanley or Walter E. Hanley,  III, in  connection  with or arising out of
the Merger or the Merger Agreement or the Exhibits or Schedules thereto.

         (c)      Attached  hereto  as  Exhibit "C" and  incorporated  herein by
reference  is an  anticipated  schedule  of  disbursements  from the  Cash  Back
Account.

         (d)      The  funds  in  the  Cash Back Account  shall be  disbursed in
accordance  with the terms set  forth in this  Section  3. The funds in the Cash
Back Account shall not be remitted to the Company unless, upon written direction
from the Sub's Chief Executive  Officer,  said funds are remitted to the Company
in repayment of either the Commitment or the Fee Commitment.

4.       Disbursements of the Funds in the Free Account.
         -----------------------------------------------

         The funds in the Free Account shall be used exclusively for the purpose
of  developing a robust web site for Free.  The funds in the Free Account  shall
not be remitted to the Company  unless,  upon written  direction  from the Sub's
Chief Executive Officer,  said funds are remitted to the Company in repayment of
either the Commitment or the Fee Commitment.

5.       Prior Loans.
         ------------

         On the Effective  Time, the Sub shall execute a promissory  note in the
form attached hereto as Exhibit "A" for the full aggregate  principal  amount of
the Prior  Loans (the "New  Note").  The New Note shall  provide for an interest
rate of 8% per annum and a maturity date of four years after the Effective Time.
Upon execution of the New Note,  the original  documents  documenting  the Prior
Loans shall be returned to Sub and all personal  guarantees  given in connection
with the Prior Loans shall be canceled.

6.       Miscellaneous.
         --------------

         (a) The  failure  of  either  party at any  time or  times  to  require
performance  of any  provision  hereof shall in no manner  affect the right at a
later time to enforce the same. To be effective, any waiver must be contained in
a written  instrument signed by the party waiving  compliance by the other party

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<PAGE>

of the term or covenant as  specified.  The waiver by either party of the breach
of any term or covenant  contained herein,  whether by conduct or otherwise,  in
any one or more instances, shall not be deemed to be, or construed as, a further
or continuing  waiver of any such breach, or a waiver of the breach of any other
term or covenant contained in this Agreement.

         (b)      This Agreement shall be binding  upon and inure to the benefit
of the parties hereto and their respective heirs, successors and assigns.

         (c)      Sub  shall not assign this Agreement to any other corporation,
firm or person without the express and written prior consent of the Company. The
Company may assign this Agreement without Sub's consent.

         (d)      This Agreement  may not be  amended  except  by an  instrument
in writing, executed by both parties hereto.

         (e)      If any term or provision of this Agreement  is  determined  to
be illegal,  unenforceable,  or invalid in whole or in part for any reason by an
arbitrator or court of competent jurisdiction,  such illegal,  unenforceable, or
invalid  provisions or part(s) thereof shall be stricken from this Agreement and
such provision shall not affect the legality, enforceability, or validity of the
remainder of this section, then the stricken provision shall be replaced, to the
extent  possible,  with a legal,  enforceable,  and valid  provision  that is as
similar in tenor to the stricken provision as is legally possible.

         (f)      This Agreement may be executed in multiple  counterparts  each
of which shall be an original but all of which together shall constitute one and
the same  instrument.  This  Agreement  may also be executed  and  delivered  by
exchange of facsimile  copies showing the  signatures of the parties,  and those
signatures  need not be affixed to the same copy.  The facsimile  copies showing
the signatures of the parties will  constitute  originally  signed copies of the
Agreement requiring no further execution.

         (g)      The  recitals  to  this  Agreement  constitute  part  of  this
Agreement.

         (h)      All notices,  requests,  instructions,   consents   and  other
communications  to be given pursuant to this  Agreement  shall be in writing and
shall be deemed received (i) on the same day if delivered in person, by same-day
courier or by telegraph,  telex or facsimile  transmission  (receipt  confirmed)
(provided that telegraph,  telex or facsimile notice shall be deemed received on
the next business day if received after 5:00 p.m. Eastern  Standard Time),  (ii)
on the next day if delivered by overnight mail or courier,  or (iii) on the date
indicated on the return  receipt,  or if there is no such receipt,  on the third
calendar day (excluding  Sundays) if delivered by certified or registered  mail,
postage prepaid,  to the party for whom intended to the following  addresses (or
to such other addresses and facsimile numbers as a party may designate by notice
to the other party):

                  (1)      if to Sub at:

                           Frederick A. Moran

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<PAGE>

                           Voice & Data Communications (Latin America), Inc.
                           75 Holly Hill Lane
                           Greenwich,  CT  06830
                           Facsimile: (203) 552-0908

                           with a copy to:

                           Thomas J. Vrabel
                           657 Main Street, Suite 301
                           P.O. Box 9101
                           Passaic, NJ  07055-9101
                           Facsimile: (973) 779-7991

                  (2)      if to the Company at:

                           Frederick A. Moran
                           VDC Communications, Inc.
                           75 Holly Hill Lane
                           Greenwich,  CT  06830
                           Facsimile: (203) 552-0908

                           with a copy to:

                           Louis D. Frost, Esq.
                           VDC Communications, Inc.
                           75 Holly Hill Lane
                           Greenwich,  CT  06830
                           Facsimile: (203) 552-0908

         (i)      This  Agreement  shall  be  governed  by  and  construed   and
interpreted in accordance  with the laws of the State of Connecticut  applicable
to  contracts  executed  and to be  performed  entirely  within said State.  All
controversies  or claims arising out of or relating to this  Agreement  shall be
determined by binding arbitration applying the laws of the State of Connecticut.
The  arbitration  shall be  conducted  at the  Company's  offices in  Greenwich,
Connecticut,  or at such other  location  designated by the Company,  before the
American  Arbitration  Association.  The decision of the arbitrator(s)  shall be
final and binding upon the parties,  and judgment may be obtained thereon in any
court of competent jurisdiction. Each party shall bear the cost of preparing and
presenting  its own case.  The cost of the  arbitration,  including the fees and
expenses of the  arbitrator(s),  shall be shared  equally by the parties  hereto
unless the award otherwise provides.  Nothing herein shall preclude a party from
seeking  injunctive  relief to restrain any breach or  threatened  breach of the
covenants  and  agreements  set forth in this  Agreement  or otherwise to obtain
specific performance of any such covenant or agreement, without the necessity of
posting bond or security in connection therewith.

                                       5
<PAGE>

         (j)      This Agreement  shall not be construed  more strictly  against
one party then against the other by virtue of the fact that drafts may have been
prepared  by  counsel  for one of the  parties,  it being  recognized  that this
Agreement  is the  product of  negotiations  between  the  parties  and that the
parties have contributed to the final preparation of this Agreement.

         (k)      Within ten (10) calendar days of receipt of a written  request
from the Company,  Sub shall  provide the Company with a statement  (sworn to by
the  President  or CEO of Sub before a Notary  Public and signed by said  Notary
Public and said  President or CEO) that, as of the date of said  statement,  Sub
has complied with all material terms of this Agreement and has used the funds in
accordance with Section 3 or Section 4, as the case may be.

         (l)      Each party acknowledges that (i) it has  carefully  read  this
Agreement,  (ii) it has had the assistance of legal counsel of its choosing (and
such other  professionals and advisors as it has deemed necessary) in the review
and  execution  hereof,  (iii) the meaning  and effect of the various  terms and
provision  hereof have been fully  explained to it by such counsel,  (iv) it has
conducted such investigation,  review and analysis as it has deemed necessary to
understand the provisions of this  Agreement and the  transactions  contemplated
hereby, and (v) it has executed this Agreement of its own free will.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
day and year first above written.

ATTEST:                                     COMPANY:

/s/ Louis D. Frost                          VDC COMMUNICATIONS, INC.
---------------------------
Signature

Louis D. Frost                              By:      /s/ Frederick A. Moran
---------------------------                    ---------------------------------
Print Name                                           Frederick A. Moran
                                                     Chief Executive Officer

ATTEST:                                     SUB:

                                            Voice & Data Communications
/s/ Clayton F. Moran                        (Latin America), Inc.
---------------------------
Signature

Clayton F. Moran                            By:      /s/ Frederick A. Moran
---------------------------                    ---------------------------------
Print Name                                           Frederick A. Moran
                                                     Chief Executive Officer

                                       6THIS  PROMISSORY  NOTE  SUPERCEDES  AND RENDERS NULL AND VOID:  (1) A PROMISSORY
NOTE,  DATED MAY 12, 1999,  IN THE  PRINCIPAL  AMOUNT OF $300,000 MADE BY WASHOE
TECHNOLOGY  CORPORATION WITH NETWORK CONSULTING GROUP, INC. AS HOLDER; AND (2) A
PROMISSORY  NOTE,  DATED JUNE 14, 2000, IN THE PRINCIPAL AMOUNT OF $100,000 MADE
BY RARE TELEPHONY,  INC., A NEVADA  CORPORATION WITH NETWORK  CONSULTING  GROUP,
INC. AS HOLDER.

                                 PROMISSORY NOTE
                                 ---------------

$100,000                                                  June 23, 2000
                                                          Greenwich, Connecticut

FOR VALUE  RECEIVED,  RARE  TELEPHONY,  INC. A DELAWARE  CORPORATION  ("Maker"),
promises  to pay to the order of  NETWORK  CONSULTING  GROUP,  INC. a New Jersey
Corporation  ("Holder"),  which term shall include any subsequent holder of this
Note,  at 101 Route 46 East,  Pine  Brook,  NJ 07058 (or at such other  place as
Holder  shall  designate  in  writing) in lawful  money of the United  States of
America, the aggregate principal sum of One Hundred Thousand Dollars ($100,000),
with interest thereon at the rate (the "Interest Rate") described below.

         1.   Interest  Rate.  The Interest Rate shall be eight percent (8%) per
              ---------------
              annum.  Interest  shall be  computed at the  Interest  Rate on the
              basis of the actual number of days which the Outstanding Principal
              Balance  (as  defined  herein)  is  outstanding  divided  by three
              hundred sixty (360),  which shall,  for the purposes of this Note,
              be considered one (1) year.

         2.   Outstanding  Principal Balance. All references to the "Outstanding
              -------------------------------
              Principal  Balance" shall mean the amount of One Hundred  Thousand
              Dollars ($100,000), less any principal repaid.

         3.   Installment  Payments.  This Note  shall be  payable in thirty six
              ----------------------
              (36) equal installments ("Installments") of principal and interest
              in the amount of $3,133.64,  which  installments shall commence on
              December 1, 2000 and  continue  thereafter  on the 1st day of each
              successive  calendar  month until  November 1, 2003 (the "Maturity
              Date")  when the entire  Outstanding  Principal  Balance,  and any
              accrued but unpaid interest, shall be due and payable.

         4.   Application  of  Payments.  All  payments  on this  Note  shall be
              --------------------------
              applied first to the payment of accrued and unpaid  interest,  and
              then to the reduction of the Outstanding Principal Balance.

         5.   Prepayment  Right.  Maker  shall  have the  right to prepay at any
              ------------------
              time, in whole or in part, the  Outstanding  Principal  Balance of
              this Note, without premium or penalty.

         6.   Accelerated  Maturity.  Notwithstanding  anything in this  Note to
              ----------------------
              the contrary and  irrespective  of the Maturity  Date, the  entire
              Outstanding  Principal  Balance and accrued interest shall  become
              immediately  due and  payable  upon the  earliest to occur  of the
              following (the "Accelerated  Maturity Date") after June  23, 2000:

                                       1
<PAGE>

              (a) the sale of all or  substantially  all of the  assets  of  the
              Maker  or  the  common  stock  of  the  Maker  to a  third   party
              (provided,  however, that this provision shall not take  effect or
              be  applicable  if the  sale of all or  substantially  all  of the
              assets  of the  Maker or the  common  stock of the  Maker  is to a
              subsidiary,  controlling  corporation or affiliate of the  Maker);
              or (b) the  issuance  of the  securities  of Maker on the   Public
              Market.

         7.   Modifications. From time to time, without affecting the obligation
              --------------
              of Maker to pay the  Outstanding  Principal  Balance or to observe
              the covenants of Maker contained herein, and without giving notice
              to or obtaining the consent of Maker, Holder may, at the option of
              Holder,  extend the time for payment of the Outstanding  Principal
              Balance  or any  part  thereof,  reduce  the  payments  hereunder,
              release any person liable hereunder, accept a renewal or extension
              of this Note,  join in any extension or  subordination  agreement,
              release any security given herefor,  take or release security,  or
              agree in writing  with Maker to modify  the  Interest  Rate or any
              other provision of this Note.

         8.   Events  of  Default.  Time  is of the  essence  hereof.  Upon  the
              --------------------
              occurrence  of  any  of  the  following  events  (the  "Events  of
              Default"), payment of the entire Outstanding Principal Balance and
              accrued  interest of this Note shall, at the option of the Holder,
              be accelerated  and shall be immediately  due and payable  without
              notice or demand:

                  (a)    Failure of Maker to pay any Installment within ten (10)
                         days after the due date thereof; or
                  (b)    Failure  of  Maker  to pay  the  Outstanding  Principal
                         Balance  and accrued  interest in full on the  Maturity
                         Date or the Accelerated Maturity Date; or
                  (c)    All or the majority of the value of the assets of Maker
                         is  seized  or  levied  upon  by  writ  of  attachment,
                         garnishment,  execution or otherwise,  and such seizure
                         or  levy  is  not  released  within  thirty  (30)  days
                         thereafter; or
                  (d)    Maker executes a general  assignment for the benefit of
                         its  creditors,  convenes any meeting of its creditors,
                         becomes insolvent, admits in writings its insolvency or
                         inability  to pay its debts,  or is unable to pay or is
                         generally not paying its debts as they become due; or
                  (e)    A receiver, trustee, custodian or agent is appointed to
                         take  possession of all or any  substantial  portion of
                         Maker's assets; or
                  (f)    Any case or  proceeding  is  voluntarily  commenced  by
                         Maker under any  provision  of the  federal  Bankruptcy
                         Code or any  other  federal  or state law  relating  to
                         debtor    rehabilitation,    insolvency,    bankruptcy,
                         liquidation  or  reorganization,  or any  such  case or
                         proceeding is involuntarily commenced against Maker and
                         not dismissed within thirty (30) days thereafter; or
                  (g)    Any representation made by Maker in this Note or in any
                         of  the  other   documents   delivered  in   connection
                         therewith,  shall have been untrue or  incorrect in any
                         material respect when made.

         9.   Default  Rate.  In the event  that Maker  (a)  fails  to  pay  any
              --------------
              Installment  within ten (10) days after the due  date thereof,  or
              (b)  fails  to pay  the  Outstanding  Principal   Balance  and all
              accrued  interest in full on the Maturity Date or  the Accelerated
              Maturity Date, the amount past due (including any  acceleration of
              the  Outstanding  Principal  Balance),   and  unpaid   shall  bear
              interest  at an annual  rate  equal to the lesser of (I)  the then

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<PAGE>

              applicable  Interest  Rate plus five  percent  (5%),  or  (ii) the
              maximum amount  permitted by law (the "Default  Rate"),   computed
              from the date on which  said  amount  was due and  payable   until
              paid.  The charging or collecting of interest at the Default  Rate
              shall not limit any of Holder's  other  rights or remedies   under
              this Note.

         10.  Governing Law. Maker, and each endorser and cosigner of this Note,
              --------------
              acknowledges  and agrees that this Note is made and is intended to
              be  paid  and  performed  in the  State  of  New  Jersey  and  the
              provisions hereof will be construed in accordance with the laws of
              the State of New Jersey and,  to the extent  that  federal law may
              preempt the  applicability of state laws,  federal law. Maker, and
              each  endorser and  cosigner of this Note further  agree that upon
              the  occurrence of an Event of Default,  this Note may be enforced
              in any court of competent jurisdiction in the State of New Jersey,
              and they do  hereby  submit  to the  jurisdiction  of such  courts
              regardless of their residence.

         11.  Remedies  Cumulative:  Waiver.  The remedies of Holder as provided
              ------------------------------
              herein shall be  cumulative  and  concurrent,  and may be  pursued
              singularly,  successively or together,  in the sole discretion  of
              Holder,  and may be exercised as often as occasion therefor  shall
              arise.  No act of omission  or  commission  of Holder,   including
              specifically  any  failure  to  exercise  any  right,   remedy  or
              recourse,  shall be deemed to be a waiver or release of  the same;
              such  waiver or release  to be  affected  only  through  a written
              document   executed  by  Holder  and  then  only  to   the  extent
              specifically recited therein.  Without limiting the  generality of
              the preceding sentence,  acceptance by Holder of any  payment with
              knowledge of the occurrence of an Event of Default by  Maker shall
              not be deemed a waiver of such Event of Default,  and   acceptance
              by Holder of any  payment in an amount  less than the amount  then
              due  hereunder  shall be an  acceptance on account only and  shall
              not in any way  affect  the  existence  of an  Event  of   Default
              hereunder.  A waiver or release  with  reference to any one  event
              shall not be construed as continuing, as a bar to, or as a  waiver
              or release of, any subsequent  right,  remedy or recourse as to  a
              subsequent event.

         12.  No Usury  Intended.  This Note is expressly  limited so that in no
              -------------------
              contingency or event  whatsoever,  whether by reason of:  error of
              fact or law;  payment,  prepayment or advancement of the  proceeds
              hereof;  acceleration  of maturity of the  Outstanding   Principal
              Balance, or otherwise, shall the amount paid or agreed to  be paid
              to Holder  hereof for the use,  forbearance  or  retention  of the
              money to be advanced  hereunder,  including any charges  collected
              or made in  connection  with the  indebtedness  evidenced  by this
              Note which may be treated as interest  under  applicable   law, if
              any,  exceed  the  maximum  legal  limit  (if any  such   limit is
              applicable)  under United States federal law or state  law (to the
              extent not  preempted by federal  law, if any),  now or  hereafter
              governing the interest  payable in connection with this Note.  If,
              from any circumstances  whatsoever,  fulfillment of any  provision
              hereof at the time  performance  of such  provision  shall be  due
              shall  involve  transcending  the  limit  of  validity  (if   any)
              prescribed  by law which a court of  competent  jurisdiction   may
              deem  applicable  hereto,  then ipso facto,  the obligation  to be
              fulfilled  shall  be  ----------  reduced  to the  limit  of  such
              validity,  and if  from  any  circumstances,  Holder   shall  ever
              receive as  interest  an amount  which  would  exceed  the maximum
              legal limit (if any such limit is applicable),  such  amount which
              would be excessive  interest shall be applied to the  reduction of

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<PAGE>

              the  Outstanding  Principal  Balance due hereunder and  not to the
              payment of interest or, if necessary, rebated to Maker.

         13.  Guaranty.  (intentionally deleted)
              ---------

         14.  Purpose of Loan.  Maker  certifies that the loan evidenced by this
              ----------------
              Note is obtained for business or commercial  purposes and that the
              proceeds   thereof  shall  not  be  used  for  personal,   family,
              household, or agricultural purposes.

         15.  Miscellaneous Provisions.
              -------------------------

              (a) Maker,  and each endorser and cosigner of this Note  expressly
                  grants to Holder  the right to  release or to agree not to sue
                  any other person, or to suspend the right to enforce this Note
                  against  such  other  person or to  otherwise  discharge  such
                  person;  and Maker, and each endorser and cosigner agrees that
                  the  exercise  of such rights by Holder will have no effect on
                  this  liability of any other person,  primarily or secondarily
                  liable  hereunder.  Maker,  and each  endorser and cosigner of
                  this Note  waives,  to the fullest  extent  permitted  by law,
                  demand for payment,  presentment for payment,  protest, notice
                  of protest, notice of dishonor,  notice of nonpayment,  notice
                  of acceleration of maturity, diligence in taking any action to
                  collect sums owing hereunder, any duty or obligation of Holder
                  to effect,  protect,  perfect,  retain or enforce any security
                  for  the  payment  of  this  Note or to  proceed  against  any
                  collateral before otherwise enforcing this Note, and the right
                  to plead as a defense to the  payment  hereof  any  statute of
                  limitations.

              (b) This Note and each payment of principal and interest hereunder
                  shall be paid when due without deduction or setoff of any kind
                  or nature whatsoever.

              (c) Maker  agrees to  reimburse  Holder for all costs,  including,
                  without  limitation,  reasonable  attorneys' fees, incurred to
                  collect  this  Note  if  this  Note  is  not  paid  when  due,
                  including,  but not limited to,  attorneys'  fees  incurred in
                  connection  with any bankruptcy  proceedings  instituted by or
                  against Maker (including relief from stay litigation).

              (d) If any  provision  hereof is for any reason and to any extent,
                  invalid or  unenforceable,  then neither the  remainder of the
                  document  in  which  such  provision  is  contained,  nor  the
                  application  of the  provision to other  persons,  entities or
                  circumstances shall be affected thereby,  but instead shall be
                  enforceable to the maximum extent permitted by law.

              (e) This Note shall be a joint and  several  obligation  of Maker,
                  and of all endorsers and cosigners hereof and shall be binding
                  upon   them   and    their    respective    heirs,    personal
                  representatives, successors and assigns.

              (f) This Note may not be modified or amended orally, but only by a
                  modification  or  amendment  in  writing  signed by Holder and
                  Maker.

              (g) When the context and  construction so require,  all words used
                  in the  singular  herein  shall be deemed to have been used in
                  the plural and the  masculine  shall  include the feminine and
                  neuter and vice versa.  The word "person" as used herein shall

                                       4
<PAGE>

                  include   any   individual,    company,   firm,   association,
                  partnership,  corporation,  trust or other legal entity of any
                  kind whatsoever.

              (h) The headings of the  paragraphs  and sections of this Note are
                  for  convenience or reference only, are not to be considered a
                  part hereof and shall not limit to otherwise affect any of the
                  terms hereof.

              (i) In the event that at any time any  payment  received by Holder
                  hereunder  shall  be  deemed  by  final  order  of a court  of
                  competent  jurisdiction to have been a voidable  preference or
                  fraudulent  conveyance under the bankruptcy or insolvency laws
                  of the United States,  or shall  otherwise be deemed to be due
                  to any party other than Holder,  then, in any such event,  the
                  obligation to make such payment shall survive any cancellation
                  of this Note and/or  return  thereof to Maker and shall not be
                  discharged  or satisfied by any prior payment  thereof  and/or
                  cancellation  of this  Note,  but  shall  remain  a valid  and
                  binding  obligation  enforceable in accordance  with the terms
                  and  provisions  hereof,  and the amount of such payment shall
                  bear  interest at the Default Rate from the date of such final
                  order until repaid hereunder.

              (j) THIS  NOTE  SUPERSEDES  AND  RENDERS  NULL  AND  VOID:  (1)  A
                  PROMISSORY  NOTE,  DATED MAY 12, 1999, IN THE PRINCIPAL AMOUNT
                  OF $300,000 MADE BY WASHOE TECHNOLOGY CORPORATION WITH NETWORK
                  CONSULTING GROUP, INC. AS HOLDER (THE "FIRST NOTE"); AND (2) A
                  PROMISSORY  NOTE, DATED JUNE 14, 2000, IN THE PRINCIPAL AMOUNT
                  OF $100,000 MADE BY RARE TELEPHONY, INC., A NEVADA CORPORATION
                  WITH  NETWORK  CONSULTING  GROUP,  INC. AS HOLDER (THE "SECOND
                  NOTE"). For good and valuable  consideration,  the receipt and
                  sufficiency  of which are hereby  acknowledged,  Holder hereby
                  forever  releases,  discharges,  and agrees to hold  harmless,
                  Maker and its  predecessors,  successors,  and affiliates from
                  any and all  claims,  demands,  or actions  arising  out of or
                  related to the First Note or the Second Note.

              (k) This Note may be signed by the  undersigned  in  counterparts.
                  This  Note may also be  executed  and  delivered  by Holder by
                  facsimile  signature.  This  Note  may  not  be  executed  and
                  delivered by Maker by facsimile signature.

         IN WITNESS  WHEREOF Maker has executed this  Promissory  Note as of the
day and year first above written.

Accepted by "Holder"                        "Maker"

Network Consulting Group, Inc.                       Rare Telephony, Inc.

By /s/ Peter J. Salzano                              By /s/ Frederick A. Moran
  -----------------------                              -------------------------
   Peter J. Salzano, President                          Frederick A. Moran, CEO

                                       5

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