Document:

EXHIBIT 10.2

                                     OPTION

     ez  Tel,  LLC,  a  Nevada limited liability company (the "Company"), hereby
                        ------
agrees  with  NS8  Corporation,  a  Delaware  corporation  (the  "Investor"), as
follows:

                                    RECITALS
                                    --------

     A.  Concurrently  with  entering  into  this  Agreement,  the  Investor  is
advancing  a  US$200,000  loan  to  Long  Distance  Billing  Services,  Inc.,  a
subsidiary  of  the  Company.

     B.  The  loan  would  not  be advanced if the Company were not concurrently
entering  into  this  Agreement.

     C.  The  parties  acknowledge that this Agreement sets forth certain of the
basic  terms concerning the transaction contemplated by this Agreement, but that
many  details  remain  to  be negotiated in good faith by the parties further to
which  this  Agreement  will  be  amended.

NOW,  THEREFORE,  in  consideration  of  the  premises:

     1.     Option
            ------
     .  The  Company  grants  the  Investor  an option (the "Option") to make an
equity  investment  in  the  Company of US$1,500,000 following which 100% of all
equity, membership and ownership interests in and to the Company shall be issued
to  and  held by the Investor.  The foregoing is subject to confirmation of this
Agreement  and  confirmation of a revised Plan of Reorganization ("Plan") by the
Bankruptcy  Court  [name]  in  a  final  non-appealable  order.  The  Option  is
exercisable  only  in  writing  and  at  the  sole  discretion  of the Investor.

     2.     Covenants
            ---------
     .  The  Company  shall  amend  the  Plan  as  contemplated  above and shall
advocate  to  the  Bankruptcy Court that the amended Plan be confirmed such that
the  transactions  contemplated in this Agreement can proceed.  Without limiting
the  generality  of  the  foregoing:

     (a)     the  Plan  shall  call  for  all  current and then existing equity,
membership  and  ownership  interests,  including  options, warrants and similar
rights,  to be cancelled such that the Investor holds 100% of all such interests
following  its  exercise  of  and  the  Closing  on  the  option.

     (b)     [creditor's  committee]

     3.     Closing
            -------
     .  The  closing  of  the  transactions contemplated by this agreement shall
take place at the offices of Dorsey & Whitney LLP, [Washington, D.C.] at 5 p.m.,

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Eastern  time,  ten calendar days after the Investor gives the Company notice of
its  exercise  of  the  Option  (the  "Closing  Date") or at such other place or
different  time  or  day  as  may be mutually acceptable to the Investor and the
Company.

     4.     Representations  and  Warranties  by  the  Company
            --------------------------------------------------
     .  In  order  to induce the Investor to consider exercising the Option, the
Company hereby represents and warrants to the Investor that, except as disclosed
in  the  attached  Exhibit  A:

     (a)     Organization,  Standing,  Etc.
             ------------------------------
       The  Company  is  a  limited  liability  company  duly organized, validly
existing  and in good standing under the laws of the state of _____, and has the
requisite  corporate  power  and authority to own its properties and to carry on
its business in all material respects as it is now being conducted.  The Company
has  the  requisite  corporate  power  and  authority  to issue the 100% equity,
membership  and  ownership  interest  ("Units")  and  to  otherwise  perform its
obligations  under  this  agreement.

     (b)     Governing  Instruments
             ----------------------
     .  The  copies  of the Articles of formation and operating agreement of the
Company  which  have  been delivered to legal counsel for the Investors prior to
the  execution  of  this  agreement are true and complete copies of the duly and
legally  adopted Articles of formation and operating agreement of the Company in
effect  as  of  the  date  of  this  agreement.

     (c)     Subsidiaries,  Etc.
             -------------------
       The  Company  does  not have any direct or indirect ownership interest in
any  corporation,  company,  partnership,  joint  venture,  association or other
business  enterprise.  If any entity is listed on Exhibit A and the Company owns
a  controlling  interest  in such entity, the representations and warranties set
forth  in  this  Article 4 are being hereby restated with respect to such entity
(modified  as  appropriate  to  the  nature  of  such  entity).

     (d)     Qualification
             -------------
     .  The  Company  is  duly  qualified, licensed or domesticated as a foreign
limited  liability  company  in  good  standing in each jurisdiction wherein the
nature  of  its  activities  or  the properties owned or leased by it makes such
qualification,  licensing  or domestication necessary and in which failure to so
qualify or be licensed or domesticated would have a material adverse impact upon
its  business.

     (e)     Financial  Statements
             ---------------------
     .  Attached  to  this agreement as Exhibit B are (a) a balance sheet, as at
__G for the Company, together with the related statements of income and retained
earnings  and changes in financial position for the fiscal year then ended which

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balance sheet and related statements have been audited by _____, CPAs, and (b) a
balance  sheet,  as  at           H  for  the Company, together with the related
                        -----------
statement of income and retained earnings for the _____-month period then ended.
Such  financial  statements  (i) are in accordance with the books and records of
the  Company,  (ii) present fairly the financial condition of the Company at the
balance  sheets  dates and the results of its operations for the periods therein
specified, and (iii) have, in all material respects, been prepared in accordance
with generally accepted accounting principles applied on a basis consistent with
prior accounting periods.  Without limiting the generality of the foregoing, the
balance  sheets  or  notes  thereto  disclose  all of the debts, liabilities and
obligations  of  any nature (whether absolute, accrued or contingent and whether
due  or  to  become  due) of the Company at           G, and           H, which,
                                            -----------      -----------
individually  or  in  the  aggregate,  are material and which in accordance with
generally  accepted  accounting  principles would be required to be disclosed in
such  balance  sheets, and includes appropriate reserves for all taxes and other
liabilities  accrued  as  of  such  dates  but  not  yet  payable.

     (f)     Tax  Returns  and  Audits
             -------------------------
     .  All  required  federal,  state  and  local  tax  returns  or appropriate
extension requests of the Company have been filed.  Except as set out in Exhibit
A  all  federal,  state and local taxes required to be paid with respect to such
returns  have  been  paid or due provision for the payment thereof has been made
and  the  Company  has  not  received  notice  of any tax deficiency proposed or
assessed  against  it,  and  it  has  not  executed any waiver of any statute of
limitations  on  the  assessment or collection of any tax.  The Company does not
have  any  tax liabilities except those reflected on Exhibit B or those incurred
in  the  ordinary  course  of  business  since           H.
                                               -----------

     (g)     Title  to  Properties  and  Encumbrances
             ----------------------------------------
     .  The  Company  has good and marketable title to all of the properties and
assets  reflected on Exhibit B and the properties and assets used in the conduct
of  its  business,  except  for  property  disposed of in the ordinary course of
business  since           H,  which properties and assets are not subject to any
                -----------
mortgage,  pledge,  lease,  lien,  charge,  security  interest,  encumbrance  or
restriction,  except (a) those which are shown and described on Exhibit B or the
notes  thereto,  (b)  liens for taxes and assessments or governmental charges or
levies  not  at  the  time due or in respect of which the validity thereof shall
currently  be  contested  in good faith by appropriate proceedings, or (c) those
which  do  not  materially affect the value of or interfere with the use made of
such  properties  and  assets.

     (h)     Litigation;  Governmental  Proceedings
             --------------------------------------
     .  There  are  no  legal  actions,  suits,  arbitrations  or  other  legal,
administrative  or governmental proceedings or investigations pending or, to the
knowledge  of  the Company, threatened against the Company, or its properties or
business,  and  the Company is not aware of any facts which are likely to result

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in or form the basis for any such action, suit or other proceeding.  The Company
is  not in default with respect to any judgment, order or decree of any court or
any governmental agency or instrumentality.  The Company has not been threatened
with  any  action  or  proceeding under any business or zoning ordinance, law or
regulation.

     (i)     Compliance  With  Applicable  Laws  and  Other  Instruments
             -----------------------------------------------------------
     .  The  business  and  operations  of  the  Company have been and are being
conducted in all material respects in accordance with all applicable laws, rules
and  regulations  of  all  governmental  authorities.  Neither the execution nor
delivery  of,  nor the performance of or compliance with, this agreement nor the
consummation  of  the transactions contemplated hereby will, with or without the
giving  of  notice  or passage of time, result in any breach of, or constitute a
default  under,  or result in the imposition of any lien or encumbrance upon any
asset  or property of the Company pursuant to, any agreement or other instrument
to  which the Company is a party or by which it or any of its properties, assets
or  rights  is bound or affected, and will not violate the Articles of formation
or  operating  agreement of the Company.  The Company is not in violation of its
Articles  of formation or operating agreement nor in violation of, or in default
under,  any  lien, indenture, mortgage, lease, agreement, instrument, commitment
or  arrangement  in  any  material  respect.  The  Company is not subject to any
restriction  which  would  prohibit  it  from  entering  into  or performing its
obligations  under  this  agreement.

     (j)     Units  and  Conversion  Units
             -----------------------------
     .  The  Units,  when  issued  and  paid  for  pursuant to the terms of this
agreement,  will be duly authorized, validly issued and outstanding, fully paid,
non-assessable  shares  and  shall  be  free  and  clear  of all pledges, liens,
encumbrances  and  restrictions.

     (k)     Trademarks  and  Other  Intangible  Rights
             ------------------------------------------
     .  The  Company  (a) owns or has the exclusive right to use, free and clear
of all material liens, claims and restrictions, all patents, trademarks, service
marks,  trade  names,  copyrights,  licenses  and  rights  with  respect  to the
foregoing,  used  in  the  conduct  of  its  business  as  now conducted without
infringing  upon  or otherwise acting adversely to the right or claimed right of
any  person  under or with respect to any of the foregoing, (b) is not obligated
or  under  any liability whatsoever to make any payments of a material nature by
way  of  royalties,  fees  or  otherwise  to any owner of, licensor of, or other
claimant  to,  any  patent, trademark, trade name, copyright or other intangible
asset,  with respect to the use thereof or in connection with the conduct of its
business  or  otherwise, (c) owns or has the unrestricted right to use all trade
secrets,  including  know-how,  customer  lists, inventions, designs, processes,
computer programs and technical data necessary to the development, operation and
sale  of  all  products and services sold or proposed to be sold by it, free and
clear  of  any  rights,  liens  or  claims  of  others, and (d) is not using any
confidential  information  or  trade  secrets  of  others.

                                        4
<PAGE>

     (l)     Capital  Stock
             --------------
     .  At  the  date  hereof,  the authorized Units consists of _____, of which
_____  are  issued and outstanding.  All of the outstanding Units of the Company
were  duly  authorized,  validly  issued  and are fully paid and non-assessable.
There  are  no  outstanding  subscriptions, options, warrants, calls, contracts,
demands, commitments, convertible securities or other agreements or arrangements
of  any character or nature whatever, other than this agreement, under which the
Company  is  obligated  to  issue  any  securities  of  any kind representing an
ownership  interest  in the Company.  Neither the offer nor the issuance or sale
of  the  Units  constitutes  an event, under any anti-dilution provisions of any
securities  issued  or issuable by the Company or any agreements with respect to
the issuance of securities by the Company, which will either increase the number
of shares issuable pursuant to such provisions or decrease the consideration per
share  to  be received by the Company pursuant to such provisions.  No holder of
any  security  of the Company is entitled to any preemptive or similar rights to
purchase any securities of the Company from the Company; provided, however, that
nothing in this section shall affect, alter or diminish any right granted to the
Investors  in  this  agreement.  All  outstanding securities of the Company have
been  issued  in  full  compliance  with  an  exemption  or  exemptions from the
registration and prospectus delivery requirements of the Securities Act and from
the  registration  and  qualification  requirements  of  all  applicable  state
securities  laws.

     (m)     Corporate  Acts  and  Proceedings
             ---------------------------------
     .  This  agreement  has  been  duly  authorized  by all necessary corporate
action  on  behalf  of  the  Company,  has  been  duly executed and delivered by
authorized  officers of the Company, and is a valid and binding agreement on the
part  of  the Company that is enforceable against the Company in accordance with
its  terms,  except  as the enforceability thereof may be limited by bankruptcy,
insolvency,  moratorium,  reorganization  or  other  similar  laws affecting the
enforcement  of  creditors'  rights generally and to judicial limitations on the
enforcement  of the remedy of specific performance and other equitable remedies.
All  corporate  action  necessary  to  the authorization, creation, issuance and
delivery  of  the  Units  has been taken by the Company, or will be taken by the
Company  on  or  prior  to  the  closing  date.

     (n)     Accounts  Receivable
             --------------------
     .  To  the  extent  that they exceed the reserves for doubtful accounts set
forth in Exhibit B, the accounts receivable which are reflected in Exhibit B and
all  accounts  receivable  of  the  Company  which have arisen since           H
                                                                     -----------
(except  such  accounts receivable as have been collected since           H) are
                                                                -----------
valid  and  enforceable  claims,  and  the goods and services sold and delivered
which  gave rise to such accounts were sold and delivered in conformity with the
applicable  purchase  orders,  agreements  and  specifications.  Such  accounts
receivable  are  subject  to no valid defense or offsets except routine customer
complaints  or  warranty  demands  of  an  immaterial  nature.  The  reserve for
doubtful  accounts  that  is  included  in  Exhibit  B  is  adequate.

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<PAGE>

     (o)     No  Brokers  or  Finders
             ------------------------
     .  No  person, firm or corporation has or will have, as a result of any act
or  omission  of  the  Company,  any  right, interest or valid claim against the
Company  or  any  Investor  for  any  commission, fee or other compensation as a
finder  or  broker  in  connection  with  the  transactions contemplated by this
agreement.  The  Company  will indemnify and hold each of the Investors harmless
against  any and all liability with respect to any such commission, fee or other
compensation which may be payable or determined to be payable in connection with
the  transactions  contemplated  by  this  agreement.

     (p)     Conflicts  of  Interest
             -----------------------
     .  No  officer, director or shareholder of the Company or any affiliate (as
such  term  is  defined in Rule 405 under the Securities Act) of any such person
has  any  direct or indirect interest (a) in any entity which does business with
the Company, (b) in any property, asset or right which is used by the Company in
the  conduct  of  its  business, or (c) in any contractual relationship with the
Company other than as an employee.  For the purpose of this section, there shall
be  disregarded any interest which arises solely from the ownership of less than
a  1%  equity  interest  in a corporation whose stock is regularly traded on any
national  securities  exchange  or  in  the  over-the-counter  market.

     (q)     Licenses
             --------
     .  The Company possesses from the appropriate agency, commission, board and
government  body  and  authority, whether state, local or federal, all licenses,
permits,  authorizations,  approvals,  franchises  and  rights  which  (a)  are
necessary for it to engage in the business currently conducted by it, and (b) if
not  possessed  by  the  Company  would  have an adverse impact on the Company's
business.  The  Company  has  no knowledge that would lead it to believe that it
will  not  be  able  to obtain all licenses, permits, authorizations, approvals,
franchises and rights that may be required for any business the Company proposes
to  conduct.

     (r)     Retirement  Plans
             -----------------
     .  The  Company does not have any retirement plan in which any employees of
the  Company  participates  that  is  subject  to any provisions of the Employee
Retirement  Income  Security Act of 1974 and of the regulations adopted pursuant
thereto  ("ERISA").

     (s)     Environmental  and  Safety  Laws
             --------------------------------
     .  The  Company  is  not  in  violation  of  any applicable statute, law or
regulation relating to the environment or occupational health and safety, and no
material  expenditures  are or will be required in order to comply with any such
existing  statute,  law  or  regulation.

                                        6
<PAGE>

     (t)     Employees
             ---------
     .  To  the  best  of  the Company's knowledge, no officer of the Company or
employee  of the Company (whose annual compensation is in excess of $50,000) has
any  plans to terminate his or her employment with the Company.  The Company has
complied  in  all  material respects with all laws relating to the employment of
labor,  including  provisions  relating  to  wages,  hours,  equal  opportunity,
collective  bargaining  and  payment of Social Security and other taxes, and the
Company  has  not encountered any material labor difficulties.  The Company does
not  have  any  worker's  compensation  liabilities,  except  those reflected on
Exhibit  B.

     5.     Representations  of  the  Investor
            ----------------------------------
     .  The  Investor  represents  that:

     (a)     Acts  and  Proceedings
             ----------------------
     .  This  agreement  has been duly authorized by all necessary action on the
part  of  such  Investor, has been duly executed and delivered by such Investor,
and  is  a  valid  and  binding  agreement  of  such  Investor.

     (b)     No  Brokers  or  Finders
             ------------------------
     .  No  person, firm or corporation has or will have, as a result of any act
or  omission  by  such  Investor, any right, interest or valid claim against the
Company  for any commission, fee or other compensation as a finder or broker, or
in  any  similar  capacity,  in connection with the transactions contemplated by
this  agreement.  Such  Investor  will  indemnify  and hold the Company harmless
against  any and all liability with respect to any such commission, fee or other
compensation which may be payable or determined to be payable as a result of the
actions  of  such  Investor  in connection with the transactions contemplated by
this  agreement.

     6.     Conditions  of  The  Investor's  Obligation
            -------------------------------------------
     .  Upon  written exercise of the Option, the obligation to purchase and pay
for  the  Units on the closing date is subject to the fulfillment prior to or on
the  closing  date  of the conditions set forth in this Article 6.  In the event
that  any  such  condition is not satisfied to the satisfaction of the Investor.

     (a)     No  Errors,  Etc.
             -----------------
       The  representations  and  warranties of the Company under this agreement
shall  be  true  in  all  material respects as of the closing date with the same
effect  as  though  made  on  and  as  of  the  closing  date.

                                        7
<PAGE>

     (b)     Compliance  with  Agreement
             ---------------------------
     .  The  Company  shall  have  performed and complied with all agreements or
conditions  required  by  this agreement to be performed and complied with by it
prior  to  or  as  of  the  closing  date.

     (c)     Approvals
             ---------
     .  The  Bankruptcy  Court [and the Creditor's Committee] shall have amended
the  Company's  Disclosure Statement and Plan of Reorganization under Chapter 11
of  the Bankruptcy Code to take into account this Agreement and the transactions
herein  contemplated.

     (d)     Certificate  of  Officers
             -------------------------
     .  The  Company  shall have delivered to the Investors a certificate, dated
the  closing date, executed by the President and the senior financial officer of
the  Company  and  certifying  various  facts  typically covered by an officers'
certificate.

     (e)     Opinion  of  the  Company's  Counsel
             ------------------------------------
     .  The  Company  shall  have  delivered  to  the  Investor  an  opinion,
satisfactory  to  each of the Investors, of Craig Geno, counsel for the Company,
dated  the  closing  date,  to  the  effect  that:

          (1)  The  Company  is  a  limited liability company duly organized and
     validly  existing  in  good  standing  under  the  laws of the state of its
     incorporation,  and  has  the corporate power and authority to own and hold
     the properties owned and leased by it and to carry on the business in which
     it  is  engaged. The Company has the corporate power and authority to enter
     into  this  agreement,  to  issue  and  sell the Units and to carry out the
     provisions  of  this  agreement.

          (2) This agreement has been duly authorized, executed and delivered by
     the  Company,  is the legal, valid and binding agreement of the Company and
     is  enforceable  against the Company in accordance with its terms, subject,
     as  to  the  enforcement  of  remedies,  to  limitations  under  applicable
     bankruptcy,  insolvency,  moratorium,  reorganization,  and  other  laws
     affecting  the rights of creditors generally and to judicial limitations on
     the  enforcement  of the remedy of specific performance and other equitable
     remedies.

          (3)  The  Units  being  purchased  on  the closing date have been duly
     authorized, validly issued and delivered by the Company, are fully paid and
     non-assessable,  and are entitled to the rights, preferences and provisions
     of  the  Company's  Articles  of  incorporation  and  the  benefits  of the
     provisions  of  this  agreement  applicable  thereto.  The  certificates
     evidencing  the  Units  are  in  valid  and  sufficient  form.

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<PAGE>

          (4)  All corporate proceedings required by law or by the provisions of
     this  agreement  to  be taken by the Board of Directors and shareholders of
     the  Company  on  or  prior  to  such  closing  date in connection with the
     execution and delivery of this agreement, the adoption of the amendments to
     the  company's Articles of incorporation to include the provisions that are
     set  forth  in Exhibit A, the offer, issuance and sale of the Units and the
     consummation  of the transactions contemplated by this agreement, have been
     duly  and  validly  taken.

          (5)  The  Company  is authorized by its Articles of formation to issue
     _____  Units, _____ par value. Immediately prior to such closing date there
     were  no  Units  then  issued and outstanding. All Units outstanding on the
     date  of  this  Agreement  and  issued  prior  to  Closing  shall have been
     cancelled.

          (6)  The  Company  has  obtained  the  approval  or  consent  of  all
     governmental  agencies  or bodies, including the Bankruptcy Court, required
     for  the  legal  and valid execution and delivery of this agreement and the
     legal  and  valid  offer,  issuance  and  sale  of  the  Units  and for the
     performance  of the obligations of the Company under all provisions of this
     agreement.  To  the best of such counsel's knowledge, the Company is not in
     violation  of any term, provision or condition of its Articles of formation
     or  operating  agreement,  or  in  violation  of  any  agreement  or  other
     instrument  to  which  the Company is a party or by which it is bound or to
     which any of its properties, assets or business is subject or any judgment,
     decree  or  order or any statute, rule or regulation. Assuming the accuracy
     of  the  representations made by the Investors in Article 5, the execution,
     delivery and performance of this agreement, the offer, issuance and sale of
     the  Units  and  the  consummation of the transactions contemplated by this
     agreement  will  not  result  in  any  breach  or violation of the terms or
     provisions of, or constitute a default under, the Articles of incorporation
     or  the  bylaws of the Company or any statute, rule or regulation affecting
     the  Company  or its business. To the best of such counsel's knowledge, the
     execution,  delivery  and performance of this agreement by the Company, the
     offer,  issuance  and  sale  of  the  Units  and  the  consummation  of the
     transactions  contemplated  by  this  agreement  will  not  result  in  any
     violation  of  any  agreement or other instrument to which the Company is a
     party  or by which it is bound or to which any of its properties, assets or
     business  is  subject  or  any  judgment,  decree  or  order.

          (7) Assuming the accuracy of the representations made by the Investors
     in  Article  5,  the offer, sale, issuance and delivery of the Units to the
     Investors under the circumstances contemplated by this agreement are exempt
     from  the  registration  and  prospectus  delivery  requirements  of  the
     Securities  Act  and  all  applicable  state  securities  laws.

          (8)  The offer, sale and issuance of all outstanding securities of the
     Company were made pursuant to and in full compliance with an exemption from
     the registration and prospectus delivery requirements of the Securities Act

                                        9
<PAGE>

     and from any registration or qualification requirements of applicable state
     securities  laws.

          (9)  Except  for  matters  disclosed on Exhibit A, such counsel has no
     knowledge  of  any  litigation,  proceeding  or  governmental investigation
     pending  or  threatened  against the Company or its properties or business.

     (f)     Supporting  Documents
             ---------------------
     .  The  Investor  shall  have  received  the  following:

          (1)  A  copy  of  resolutions of the Board of Directors of the Company
     certified  by  the  secretary  of the Company authorizing and approving the
     execution,  delivery  and  performance  of  this  agreement;

          (2)  A  certificate  of  incumbency  executed  by the Secretary of the
     Company  certifying  the  names,  titles  and  signatures  of  the officers
     authorized  to  execute  this  agreement  and  further  certifying that the
     Articles  of  formation and operating agreement of the Company delivered to
     legal  counsel  for  the  Investors  at  the  time of the execution of this
     agreement  have been validly adopted and have not been amended or modified,
     by  other than by the substitution of the provisions set forth in Exhibit A
     for  the  capital  stock  provisions  of the Articles of incorporation; and

          (3)  Such  additional  supporting  documentation and other information
     with  respect  to the transactions contemplated hereby as legal counsel for
     the  Investors  may  reasonably  request.

     (g)     Qualification  Under  State  Securities  Laws
             ---------------------------------------------
     .  All  registrations, qualifications, permits and approvals required under
applicable  state  securities laws for the lawful execution and delivery of this
agreement  and  the  offer,  sale,  issuance  and  delivery  of the Units to the
Investors  at  the  closing  shall  have  been  obtained.

     (h)     Employment  Agreements
             ----------------------
     .  Patric  Boggs  and  _____  and  the  Company  shall  have  entered  into
employment  agreements  in  form  and  substance  acceptable  to  the  Investor.

     (i)     Board  of  Directors
             --------------------
     .  The  Company  shall  have  taken such actions as shall be appropriate to
reconstitute  its Board of Directors in the manner contemplated by the Investor.

                                       10
<PAGE>

     (j)     Proceedings  and  Documents
             ---------------------------
     .  All corporate and other proceedings and actions taken in connection with
the transactions contemplated hereby and all certificates, opinions, agreements,
instruments  and  documents  mentioned  herein or incident to any transaction of
this  type  as  shall  be  reasonably requested by, and satisfactory in form and
substance  to,  legal  counsel  for  the  Investors.

     (k)     Due  Diligence
             --------------
     .  The  Investor's  due  diligence  shall be satisfactory to it in its sole
discretion.

     (l)     Loan  Repaid
             ------------
     .  The  US$200,000  loan by the Investor to Long Distance Billing Services,
Inc.  shall  have  been  repaid,  including  accrued  interest,  in  full.

     7.     Miscellaneous
            -------------
     Waivers,  Amendments  and  Approvals

     .  In each case in which approval of the Investors is required by the terms
of  this agreement, such requirement shall be satisfied by a vote or the written
action  of  Investors owning a majority of the Purchased Units then owned by the
Investors.  With  the  written  consent  of  Investors  owning a majority of the
Purchased  Units  then  owned  by  the Investors, the obligations of the Company
under this agreement may be waived (either generally or in a particular instance
and  either  retroactively  or  prospectively)  and with the written approval of
Investors owning seventy-five percent (75%) of the Purchased Units then owned by
the  Investors,  the  Company  may  enter into a supplementary agreement for the
purpose of adding any provisions to or changing in any manner or eliminating any
of  the  provisions  of  this  agreement  or  of  any  supplemental agreement or
modifying  in  any  manner  the  rights  and  obligations  of the holders of the
Purchased  Units  of  the  Company;  provided,  however,  that no such waiver or
supplemental  agreement  shall  (a) amend the terms of the Units as set forth in
the  Company's Articles of incorporation (any such amendment to the terms of the
Units  shall require the vote of the holders of Units called for by the Articles
of incorporation), (b) amend the provisions of this agreement granting rights to
the  holders of the Purchased Units (including, but not limited to, registration
rights  under  Article  11)  without  the  written  consent  of the holders of a
majority  of  the  Purchased  Units,  or (c) reduce the aforesaid proportions of
shares  the  holders  of  which  are  required  to  consent  to  any  waiver  or
supplemental  agreement,  without  the  consent  of all of the record holders of
shares  whose rights would be affected by such reduction.  Written notice of any
such waiver, consent or agreement of amendment, modification or supplement shall
be  given  to  the record holders of the Purchased Units who have not previously
consented thereto in writing.  In all cases in which the consent or approval of,
or  actions  by, the Investors or the holders of the Purchased Units is required
by  the  terms  of  this  agreement, the number of Purchased Units owned by such
holder  or  Investor  shall  be  determined  on  an  as-if-converted  basis.

                                       11
<PAGE>

     (a)     Changes,  Waivers,  Etc.
             ------------------------
       Neither  this  agreement nor any provision hereof may be changed, waived,
discharged  or  terminated  orally, but only by a statement in writing signed by
the  party  against  which  enforcement  of  the  change,  waiver,  discharge or
termination  is  sought,  except  to  the  extent  provided  in  section  15.1.

     (b)     Payment  of  Fees  and  Expenses  of  the  Investors
             ----------------------------------------------------
     .  The Company agrees to reimburse the Investor for legal expenses incurred
by  them  to  their  legal  counsel,  Dorsey  &  Whitney, in connection with the
transactions  contemplated  by  this  agreement.  The  Company  also  agrees  to
reimburse  the  Investor  for  the  reasonable  legal  expenses  incurred by the
Investor  in  retaining  special  counsel  in  connection with any amendments or
waivers under or with respect to this agreement and for any expenses incurred by
the  Investor  in  making  public  announcements  of the investment contemplated
hereby.

     (c)     Notices
             -------
     .  All  notices,  requests,  consents  and other communications required or
permitted  hereunder  shall  be  in  writing  and  shall be delivered, or mailed
first-class  postage  prepaid,  registered  or  certified  mail,

          (1)  if  to any holder of any Purchased Units addressed to such holder
     at  its  address  as  shown  on  the books of the Company, or at such other
     address  as  such  holder  may specify by written notice to the Company, or

          (2) if to the Company at _____. Attention: President; or at such other
     address  as  the  Company  may  specify by written notice to the Investors,

and  such  notices  and  other  communications  shall  for  all purposes of this
agreement  be  treated  as  being  effective  or  having been given if delivered
personally,  or,  if  sent  by  mail,  when  received.

     (d)     Survival  of  Representations  and  Warranties,  Etc.
             -----------------------------------------------------
       All  representations  and  warranties  contained herein shall survive the
execution  and delivery of this agreement, any investigation at any time made by
the  Investors  or  on  their behalf, and the sale and purchase of the Units and
payment  therefor.  All  statements  contained in any certificate, instrument or
other  writing  delivered  by  or  on  behalf  of  the  Company pursuant to this
agreement  (other than legal opinions) or in connection with or in contemplation
of  the  transactions  herein  contemplated shall constitute representations and
warranties  by  the  Company  hereunder.

                                       12
<PAGE>

     (e)     Parties  in  Interest
             ---------------------
     .  All the terms and provisions of this agreement shall be binding upon and
inure  to  the  benefit  of  and be enforceable by the respective successors and
assigns  of the parties hereto, whether so expressed or not, and, in particular,
shall  inure  to the benefit of and be enforceable by the holder or holders from
time  to time of any of the Purchased Units; provided, however, that a successor
or  assign  of  an  Investor  shall  not  be  regarded  as  an  "Investor."

     (f)     Headings
             --------
     .  The  headings  of  the Articles and sections of this agreement have been
inserted  for convenience of reference only and do not constitute a part of this
agreement.

     (g)     Choice  of  Law
             ---------------
     .  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.

     (h)     Jurisdiction
             ------------
     AT  THE  OPTION  OF  THE  INVESTOR,  THIS  AGREEMENT MAY BE ENFORCED IN ANY
FEDERAL  COURT OR WASHINGTON STATE COURT SITTING IN KING COUNTY; AND THE COMPANY
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 COMPANY 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,

                                       13
<PAGE>

THE INVESTOR AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO THE
JURISDICTION  AND  VENUE  ABOVE-DESCRIBED,  OR  IF  SUCH  TRANSFER  CANNOT  BE
ACCOMPLISHED  UNDER  APPLICABLE  LAW,  TO  HAVE  SUCH  CASE  DISMISSED  WITHOUT
PREJUDICE.

     (i)     Waiver  of  Notice  and  Hearing.
             ---------------------------------
       THE  COMPANY  HEREBY  WAIVES ALL RIGHTS TO A JUDICIAL HEARING OF ANY KIND
PRIOR  TO  THE  EXERCISE  BY  THE  INVESTOR  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 COMPANY ACKNOWLEDGES
THAT IT HAS BEEN ADVISED BY COUNSEL OF ITS CHOICE WITH RESPECT TO THIS PROVISION
AND  THIS  AGREEMENT.

     (j)     Waiver  of  Jury  Trial.
             ------------------------
     EACH  OF THE COMPANY AND THE INVESTOR, 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.

     (k)     Counterparts
             ------------
     .  This agreement may be executed concurrently in two or more counterparts,
each  of  which  shall  be  deemed  an original, but all of which together shall
constitute  one  and  the  same  instrument.

     IN WITNESS WHEREOF, the Company has caused this agreement to be executed by
its  duly  authorized  representative  and each of the Investors has caused this
agreement  to be executed by signing in counterpart the acceptance form attached
to  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.

                                                       ez Tel, LLC

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

                                       14
<PAGE>December 17, 1998

 

 

 

February 4, 2005

 

 

Mr. Michael D. Hagedorn

1563 NW 125th Street

Clive, Iowa 50325

Dear Michael:

We are pleased to provide this letter setting forth in general the scope and terms of your proposed employment with UMB Financial Corporation ("UMB").  As we discussed, because UMB is a publicly-held company and has various corporate governance requirements, the Compensation Committee of the Board of Directors of UMB (the "Compensation Committee") must approve the proposed terms of your employment (as set forth below) before you can be hired.  Also, the full Board would need to formally elect you as CFO.  Accordingly, this letter and the proposed terms of your employment are subject to, and contingent upon, the Compensation Committee's formal approval of same and the Board election of you as CFO, as well as approval of the long term incentive plan ("LTIP") described below by the shareholders at the April 26, 2005 Annual Meeting of Shareholders.  If the provisions of this letter are acceptable to you, I will promptly convene a meeting of the Compensation Committee to seek its approval.  I have no reason to believe that its approval will not be promptly forthcoming, or that the full Board would not elect you as CFO at its upcoming special meeting in February.

If approved by you and the Compensation Committee and approved by the full Board (and upon the shareholders' approval of the LTIP Plan described below), this letter would reflect the terms and conditions of your employment with UMB, as follows:

	Employment.  UMB would employ you as its CFO, and you would serve UMB in such capacity, subject to the terms and conditions hereinafter set forth, as well as the various policies and terms and conditions applicable to all UMB employees generally.  You agree you would serve UMB faithfully, diligently and to the best of your ability during your employment, and that you would devote your full-time efforts and attention to the business of UMB, excluding reasonable vacation and sick leave ("PTO") in accordance with UMB policies.  Your duties would be generally consistent with those of a chief financial officer of a financial institution such as UMB, as indicated by UMB's Chief Executive Officer, or as specified from time to time by UMB's Board of Directors

	Commencement.  Your target start date would be no later than March 21, 2005

	Term.  You understand and agree that you would not be employed for any definite period of time and that the employment relationship could be terminated by UMB at any time for any reason.  As such, you agree that you would at all times be considered an "at will" employee, and that no statement, representation, promise or remark, whether in writing or oral, shall be deemed to modify the "at will" relationship unless such modification is reduced to writing and signed by the Chairman of the Compensation Committee and the Chief Executive Officer of UMB 

	Compensation.  You would receive and be entitled to the following:

	an initial Base salary of $250,000 per year ("Base Salary") payable to you in bi-weekly installments during your employment, subject to annual adjustments by the Compensation Committee and the UMB Board of Directors, in their sole discretion.  

	A one-time Incentive Stock Option grant of the maximum annual number of shares permitted by IRS regulations, based upon the price per share on the actual date of grant (based to today's price, this number would be approximately 1,800); 

	A monthly car allowance of $1,000

	One Country Club and one Lunch Club membership

	Eligibility for participation in the Short Term Incentive Program (STIP) subject to all terms of the plan with a 2005 target of 50% of base salary, contingent upon achieving Balanced Scorecard objectives for UMB

	Eligibility for participation in the long term incentive plan ("LTIP") with a 2005 grant target of 70% - 100% of base salary (LTIP is subject to shareholder approval in April 2005.)

	Upon hire, you would begin accruing Paid-Time-Off (PTO) at the rate of 25 days annually. Based upon a hire date of March 21st , your accrual for 2005 would be approximately 20 days.

	Eligibility for UMB-sponsored benefit plans on the following effective dates:

	Date of hire;

	Group Term Life Insurance

	Employee Assistance Plan (EAP)

	First of the month following one month of employment;

	Medical, Dental, Vision, Tax Savings Plan and 401(k) Plan

	First of the month following three months of employment;

	Supplemental Life and AD&D Insurance

	First of the month following six months of employment;

	Short Term and Long Term Disability Plans 

	First January or July following one year of qualified service;

	Profit Sharing

	Employee Stock Ownership Plan (ESOP)

	Eligibility to purchase a variety of additional insurance products after three months of employment, though UMB Scout Insurance, Inc.

	Eligibility for many bank products and services free or on a reduced fee basis

	Relocation assistance per the attached Relocation Agreement

If any "Change in Control" (as defined on the final page) were to occur during the first one year of your UMB employment, and your employment with UMB (or its successor in interest) were to terminate within such one-year period (other than as a result of your resignation or an involuntary termination based on your acts of dishonesty, violations of law, regulations, or any material UMB (or its successor in interest) policy, or your failure to devote substantially all of your time and efforts to carrying out your assigned duties or to perform in a reasonable manner all significant duties for which you are given responsibilities), then you would be entitled to receive as a severance payment, upon your execution of UMB's standard form of release and separation agreement then in use (a copy of such document currently in use has already been furnished to you), a cash payment equal to your annual base salary at the time such Change in Control occurred.  If the Change in Control were to occur during the second one-year period of your UMB employment, then you would be entitled to receive, under the conditions described above, as a severance payment, a cash payment equal to 50% of your annual base salary at the time such Change in Control occurred.

In accepting employment with UMB, you have agreed that during your employment, you will not improperly use or disclose any confidential information or trade secrets or violate any non-competition or other agreement with, any former employer or any other persons to whom you have an obligation of confidentiality or noncompetition.  You will not bring onto the premises of UMB any unpublished documents or any property belonging to any former employer or any person to whom you have an obligation of confidentiality, unless consented to in writing by that former employer or person.  You will use in the performance of your duties only information that is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by UMB.  You represent that you are not subject to any contractual provision restricting your ability to accept or perform your duties as an employee of UMB. 

You understand that you have been selected for employment by UMB on the basis of your personal qualifications, experience and skills.  Therefore, you shall not assign all or any portion of your performance.  You, like all other UMB officers, will be subject to the UMB's Code of Ethics and Code of Conduct.  Among other things, the Code of Conduct  restricts the use of customer data and confidential and proprietary information, the solicitation of UMB customers and prospects after employment with UMB ends, and conflicts of interest.

We look forward to your joining our team and want to make the transition for you and your family as smooth as possible.  Jacqueline Witte, Executive Vice President and Director of Human Resources, will be in touch with you to address any questions you have about compensation or benefits plans and relocation assistance. Enclosed is a Summary of Benefits brochure for your reference.

Welcome to UMB. 

Sincerely, 

/s/ J. Mariner Kemper

J. Mariner Kemper

 

ALL TERMS OF EMPLOYMENT ARE SUBJECT TO THE APPROVAL OF THE COMPENSATION COMMITTEE

I have read and accept the terms and conditions of this job offer, and acknowledge and agree that it is contingent upon successful completion of a pre-employment drug screen and a credit check, as well as a post-employment FBI background check.  I also recognize that as an employer, UMB is required to request information from all new associates to comply with the Immigration Reform and Control Act of 1986.  Therefore, on my first day I will need to provide documentation to verify my identity and work authorization.  

 

 

Acknowledged and Agreed:__/s/ Michael D. Hagedorn________   

Date:  ___2-9-05________

 

"Change in Control" means, with respect to UMB Financial Corporation ("UMB"): (i) the acquisition, directly or indirectly, by merger, consolidation, purchase or otherwise, in any transaction or a series of related transactions, by any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), within any 12-month period, acquires "beneficial ownership" (as those terms are defined for purposes of Section 13(d) of the Securities Exchange Act of 1934 and the Rules and Regulation of the Securities and Exchange Commission promulgated thereunder) of securities representing an aggregate of 50% or more of the combined voting power of UMB's then outstanding voting securities (other than such transfers from an individual to one or more lineal descendants of that individual or transfers from an individual to a living trust the beneficiaries of which are lineal descendants of the grantor of that trust, or transfers from such living trust to such beneficiaries, as the case may be); or (ii) consummation by UMB of (a) a merger, consolidation or other business combination with any other "person" (as defined above) or Affiliate thereof, where the stockholders of UMB immediately prior to the merger, consolidation or other business combination own, immediately after the merger, consolidation or other business combination, less than a majority of the outstanding voting shares of the surviving or resulting entity, or (b) an agreement for the sale or disposition by UMB (in one transaction or a series of related transactions) of all or substantially all of its assets to a person that is not controlled by or under common control with UMB.  Notwithstanding the foregoing provisions of this definition, a "Change in Control" shall in no event be deemed to have occurred with respect to UMB when any transaction contemplated by this definition is consummated by UMB with a Person that, immediately prior to the consummation of such transaction and at all times thereafter, directly or indirectly, through one or more intermediaries, is an Affiliate of UMB.  For purposes of this definition, "Affiliate" of UMB shall mean any other Person directly, or indirectly through one or more intermediaries, controlling, controlled by or under common control with UMB , and "Person" shall mean a natural person or any legal, commercial or governmental entity, such as, but not limited to, a corporation, general partnership, joint venture, limited partnership, limited liability company, trust, business association, group acting in concert, or any person acting in a representative capacity.

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