Document:

STOCK PURCHASE AGREEMENT
                            ------------------------

     THIS  STOCK  PURCHASE AGREEMENT ("Agreement") dated as of February 11, 2000
by  and  among  PACIFIC  TELCOM, INC., a corporation organized under the laws of
Illinois  ("Buyer"),  EASYTEL  CANADA CORPORATION, a corporation organized under
the  laws  of  the  Province  of  Ontario  (the  "Corporation")  and  RICHARD C.
GOLDSTEIN,  being  the  duly  appointed  Sellers'  Representative of the Selling
Shareholders  ("Sellers"  or  "Shareholders"  or  "Selling  Shareholders").

                                   WITNESSETH

     WHEREAS,  the  Selling  Shareholders  collectively  own  of  record  and
beneficially  one hundred percent (100%) of the issued and outstanding shares of
the  common  stock  of  EasyTel  Canada consisting of 6,315,000 shares of common
stock,  no  par  value  (the  "Shares");  and

     WHEREAS,  the Sellers own in addition to 6,315,000 common shares issued and
outstanding  on  February  4, 2000, the date of the Letter of Intent between the
parties  and  the  further  amount  of 2,599,850 common shares representing such
shares  derived  from outstanding options for common stock exercised and Class A
special  shares,  nonvoting, converted to common shares pursuant to the Articles
of  Corporation  and  by-laws  of  the  Corporation;  and

     WHEREAS,  it is the intention of the parties hereto that, upon consummation
of  the  purchase  and sale of the Shares pursuant to this Agreement, at Closing
effective  as  of  the  date  hereof  (the "Effective Date") Buyer shall own one
hundred  percent  (100%)  of  all of the issued and outstanding shares of common
stock  of  the  Corporation;

     NOW,  THEREFORE,  IT  IS  AGREED:

Section  1.  Sale  and  Purchase.
             -------------------

     1.1  Sale of the Shares. Subject to the terms and conditions herein stated,
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          the Selling  Shareholders agree to sell, assign,  transfer and deliver
          the  shares  to Buyer on the  Effective  Date,  and  Buyer  agrees  to
          purchase the outstanding  common shares from the Selling  Shareholders
          on the Effective Date. The certificates  representing the Shares shall
          be duly  endorsed to the Buyer,  or  accompanied  by Stock  Powers and
          Assignment  Separate from  Certificate,  duly executed in favor of the
          Buyer, by the relevant Selling  Shareholder.  The Selling Shareholders
          agree  to  cure at any  time  any  deficiencies  with  respect  to the
          endorsement  of the  certificates  representing  the  shares  or  with
          respect to the Stock Power with Assignment  Separate from Certificate,
          accompanying any such certificates.

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Section  2.0  Purchase  Price.
              ---------------

     2.1  Payment.  In consideration of the transfer,  conveyance and assignment
          --------
          of the Shares, the Buyer shall pay to the Selling Shareholders the sum
          of Two  Hundred  Fifty  Thousand  Dollars  ($250,000)  and One Million
          (1,000,000)  duly  authorized  and  issued  common  shares of  Pacific
          Telcom, Inc., subject to adjustment as described herein, to be paid in
          the following manner.

     2.2  Payments of Cash.  Buyer shall pay One Hundred Fifty Thousand  Dollars
          ----------------
          ($150,000)  payable in the form of check or by wire  transfer,  at the
          direction of the  Corporation on the Effective Date as a deposit to be
          held by Sellers  subject to Section 4.1  hereof.  A further sum of One
          Hundred  Thousand  Dollars  ($100,000) shall be due to the Corporation
          upon the Buyer having its common shares of stock publicly  tradable on
          or before  November  15,  2000  within  the price  ranges and upon the
          conditions  as set forth  herein in  Section  4.1  "Finality".  If the
          Seller elects not to undo the subject  transaction on the Closing Date
          upon the occurrence of the events set forth in Section 4.1 "Finality",
          the further sum of One Hundred  Thousand  Dollars  ($100,000) shall be
          due to Sellers on November 15, 2000.

     2.3  Payment in Common  Stock.  Delivery  shall be made by the Buyer to the
          ------------------------
          Selling  Shareholders on the Effective Date of One Million (1,000,000)
          of common  shares of  authorized  and issued stock of Pacific  Telcom,
          Inc.,  subject  to the terms and  conditions  of  Section  3.3 and 4.1
          "Finality".

     2.4  Adjustment to Purchase Price.  That portion of the Purchase Price paid
          ----------------------------
          by Buyer to Selling  Shareholders  in common stock of Buyer is subject
          to  adjustment,  as set forth in  Section  4.1  "Finality".  It is the
          agreement of Buyer and Sellers that adjustments to the Purchase Price,
          pursuant to the provisions  regarding  "Finality"  such that the value
          received  by Sellers  from Buyer,  after its receipt of common  shares
          shall  be  an  amount  equal  to  Ten  Million  Dollars  ($10,000,000)
          aggregate value of common shares,  in the express  condition and event
          of an adjustment to the Purchase Price thereto.

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     2.5  Separate  Agreements.  The Buyer's  Agreement herein is intended to be
          --------------------
          made with and effective  concerning each and every Selling Shareholder
          of the Corporation. In the event that it is necessary for the Buyer to
          have a separate  Agreement  with any such  Selling  Shareholder,  such
          separate  Agreement  shall  not be deemed a  separate  sale and such a
          separate  Agreement  shall not affect or act to construe an adjustment
          to the Purchase Price.

Section  3.0  Effective  Date;  Delivery.
              --------------------------

     3.1  Closing.  On the Effective Date , the parties shall meet at 10:00 a.m.
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          on February 11, 2000 at the offices of Kenneth G. Mason,  Esq.,  33 N.
          LaSalle St., Suite 2131,  Chicago,  Illinois  60602,  or on such later
          date as is mutually  agreeable  to the  parties  hereto as the parties
          hereto shall by a written instrument designate.

     3.2  Selling  Shareholders'  Delivery  of Shares.  On the  Effective  Date,
          -------------------------------------------
          Selling   Shareholders,   through   their  duly   appointed   Sellers'
          Representative,  shall  deliver  to  Buyer  endorsed  Certificates  or
          endorsed  Assignments  Separate from  Certificate with Stock Powers in
          the amount of 100% of the Corporation's Common Stock Representative by
          shares constituting  6,315,000  authorized and issued common shares of
          the Corporation outstanding on February 4, 2000; 600,000 common shares
          representing  the exercise of 600,000  options from a total of 600,000
          outstanding  options of the  corporation;  and 1,999,850 common shares
          representing 540,500 Class A special shares converted from February 4,
          2000 to the Effective Date, for a total of 8,914,850  aggregate common
          shares of the Corporation.

     3.3  Procedures  to  Deliver  Buyer's  Shares.  Notwithstanding  any of the
          -----------------------------------------
          foregoing,  it is expressly agreed by the parties that the delivery by
          Buyer of 1,000,000  common shares of Pacific  Telcom,  Inc. to Sellers
          shall be paid and transferred to the Selling Shareholders  pursuant to
          the following procedures:

          3.3.1Selling Shareholders Duty to Deliver.  Selling Shareholders shall
               ------------------------------------
               deliver to the Buyer at the Effective  Date a Final  Shareholders
               List to be  affixed  to this  Agreement  as  Exhibit A. Said list
               shall state,  for every Selling  Shareholder,  the  Shareholder's
               name and address, the number of shares of the Corporation held on
               the Effective  Date,  and the number of shares of the Buyer to be

<PAGE>
               received in exchange thereto. No fractional shares or script will
               be issued by Buyer.  It is  understood  by the  parties  that the
               aggregate number of shares to be paid to the Selling Shareholders
               at the  Effective  Date  shall  not  exceed  1,000,000  shares of
               Pacific Telcom, Inc. regardless of the number of shares of common
               stock of the Corporation  issued and outstanding at the Effective
               Date. On the Effective Date, upon delivery in a form satisfactory
               to Buyer  of the  certificates  representing  the  Shares  of the
               Corporation to be purchased and acquired hereunder, Buyer, by its
               Secretary,  will issue and  transmit by  facsimile  to the public
               transfer agent of the Buyer, Illinois Stock Transfer Corporation,
               a Letter of  Instruction,  in a form  substantially  as set forth
               herein as Exhibit  B,  directing  Robert  Pearson,  President  of
               Illinois Stock Transfer Corporation to issue 1,000,000 authorized
               shares of Pacific Telcom, Inc. common stock in book form pursuant
               to the  information  set  forth  in  the  Corporation's  List  of
               Shareholders presented at the Effective Date.

          3.3.2Reserve of Cash on the  Effective  Date. In the event that on the
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               Effective Date, Sellers do not deliver certificates  representing
               one hundred  percent  (100%) of the  Corporation's  common  stock
               issued and  outstanding at the Effective  Date, a Reserve of Cash
               shall be withheld from the deposit at closing  representing a sum
               equal to the percentage of  Certificates  of  outstanding  common
               stock of the  Corporation  not delivered on the  Effective  Date.
               This Reserve shall be held by Buyer's  counsel in a trust account
               or client  fund  account,  without  interest,  to be  released to
               Sellers upon the delivery of the remaining  undelivered  endorsed
               certificates  of  common  stock of the  Corporation  or  endorsed
               assignments  separate from  certificate with endorsed stock power
               equivalent to then  constitute the delivery of 100% of the common
               shares of the Corporation issued and outstanding on the Effective
               Date.

          3.3.3Issuance of Certificated  Ownership.  Subsequent to the Effective
               -----------------------------------
               Date,   Selling   Shareholders,   individually,   shall   receive
               certificated  shares upon  delivery by the  Secretary of Buyer to
               Illinois   Stock   Transfer   Corporation,   the  exchange  agent

<PAGE>
               hereunder, of duly endorsed certificates  representing the shares
               of common stock of EasyTel Canada  acquired  hereunder.  For each
               such  certificate  of the  Corporation  received by the Buyer for
               each Selling Shareholder in satisfactory form, the Exchange Agent
               of the Buyer shall be directed by the  Secretary  of the Buyer to
               convert  Selling  Shareholders'  ownership  indicia in Buyer from
               book  form  to  certificated  form  and to  transmit  such  stock
               certificates to the Selling  Shareholders,  individually,  with a
               transmittal  letter  substantially  in the  form as set  forth in
               Exhibit C attached hereto.

Section  4.  Other  Agreements.
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     4.1  Finality and Attached Rider. On the Effective Date of this transaction
          ----------------------------
          shall be the date hereof,  however, the transaction shall be deemed to
          be in escrow  pending the Closing Date which shall be the later of the
          date the common  stock of the Buyer is publicly  tradable  and neither
          the  Sellers  nor the Buyer has  exercised  their  option to unwind or
          terminate  the  transaction  or November 30, 2000, if on such date the
          common stock of Buyer is not publicly tradable unless on such date the
          Sellers elect not to exercise  their right to terminate this Agreement
          and  undo  the  subject  the  transaction.  Closing  of  the  intended
          transaction   shall  be  conditional  upon  the  condition   described
          hereinafter  in Section 4.1 subsequent to the  transaction.  It is the
          intention  of Buyer  to have  its  common  shares  of  stock  publicly
          tradable on or before  November 15, 2000.  It is an express  condition
          precedent to the transaction that the Issue Price of the common shares
          of Pacific  Telcom,  Inc. on its first date of public trading shall be
          not less than  $5.00 per share.  In the event  that said  Issue  Price
          shall be not less than  $8.00 per share and not more than  $12.00  per
          share, this transaction shall be deemed complete and irreversible.  If
          the Issue Price is at least  $5.00 per share,  but less than $8.00 per
          share,  the  parties  agree to adjust the  Purchase  Price in favor of
          Sellers  such that Buyer shall pay such  further  shares of its common
          stock to equal  $10,000,000  value,  based upon such an Issue Price of
          less than $8.00 per share of Pacific Telcom,  Inc.  common shares.  In
          the event that the common shares of Pacific Telcom,  Inc. are publicly
          tradable on November  15, 2000 at a trading  price or issue price less
          than  $5.00 per share,  the  parties  agree  that  either the Buyer or
          Seller  shall  have the  option  to  terminate  and  undo the  subject

<PAGE>
          transaction, where upon Buyer and Sellers will conduct all steps, take
          all actions and execute all  documents  necessary to restore Buyer and
          Sellers to their original  position on the date prior to the Effective
          Date. In the event that the common shares of Pacific Telcom,  Inc. are
          not publicly tradable on November 15, 2000, the parties agree that the
          Seller's  Representative  will  have the  option  to deem the  subject
          transaction  terminated  whereupon  Buyer and Seller agree to undo the
          subject   transaction,   as  above  or,  at  the  option  of  Seller's
          Representative  Seller  shall  have the right to deem the  transaction
          finalized, even in the event that the common shares of Pacific Telcom,
          Inc.  are not publicly  tradable on November  15, 2000.

     4.2  Goods and  Services  Tax.  Based  upon  estimates  of the  Corporation
          -------------------------
          received from its Chartered  Accountants,  on a non-audited basis, the
          Corporation  is  eligible  to  recover,  or  be  refunded,  an  amount
          estimated  to be $12,847  as a result of its prior two  fiscal  years,
          resulting from the Goods and Services Tax.  Further,  the Corporation,
          in good  faith,  believes  it will be  entitled  to a  further  amount
          recoverable,  as and for Goods and  Services  Tax, for its fiscal year
          ending   March  31,   2000.   Buyer   agrees  that  the   Corporation,
          notwithstanding the effect of this Purchase Agreement otherwise, shall
          be solely  entitled to all such sums  refunded  from, or returnable to
          the Corporation as a result of Goods and Services Tax treatments.

     4.3  Funding New Territories. Subsequent to the Effective Date, it shall be
          ------------------------
          the duty and obligation of the Buyer to make such capital  investments
          necessary as to allow the capacity and  capability for the issuance of
          Local Access Numbers for four new Canadian cities, for the purposes of
          the subscription of new subscribers to the telecommunications products
          and services currently offered separately by Buyer and Sellers.

     4.4  Grant of Authority for Certain Continued Operations.  The Buyer grants
          -----------------------------------------------------
          to the  Corporation,  through  its  President,  the  limited  right to
          operate the  Corporation  for certain  essential  post  Effective Date
          duties  and  responsibilities.  This  grant of  authority  to  operate
          Toronto switches shall continue until April 30, 2000,  without further
          and additional  operating expenses by the Buyer other than the Deposit
          herein.  From the Effective Date until April 30, 2000, the Corporation
          shall continue to be responsible  for its routine  expenses,  overhead
          and  ordinary  expenses of  operation,  as  specifically  set forth in

<PAGE>
          Exhibit  D. The  Corporation  will apply its own  sources of  business
          revenues  toward the timely  payment of such routine  expenses,  until
          April 30,  2000.  This grant of  authority  is  intended to permit the
          conclusion  of post  Effective  Date matters,  including,  by a way of
          illustration,  filing of tax returns, distribution of cash payments of
          the  Purchase  Price  by  Buyer to the  Selling  Shareholders  and the
          holding  of common  shares of the  Buyer in trust to  accommodate  the
          exercise of  outstanding  options of  employees  and  certain  special
          service  providers  of the  Corporation,  and the  exercise of Class A
          special  shares.   Notwithstanding  the  foregoing,   Buyer  shall  be
          financially responsible for the expenses of capital investment for the
          Corporation's  Toronto switches and for all attendant  charges to that
          switch from the Effective Date, forward. Further,  subsequent to April
          30, 2000, notwithstanding the Corporation's limited grant of authority
          to operate certain  functions,  Buyer shall assume expenses of capital
          investment for the Corporation's  operations  thereafter,  pending the
          conditions set forth regarding "Finality" in Section 4.1.

     4.5  Retention  of  Management.  Buyer  agrees to  continue  to retain  the
          -------------------------
          services of Richard C.  Goldstein  as Chief  Executive  Officer of the
          Corporation, notwithstanding the limited grant of authority to operate
          set forth  above.  Buyer shall tender to him an  Employment  Agreement
          mutually  acceptable to Richard C.  Goldstein  and Buyer.  The parties
          acknowledge and agree that the retention of Mr. Goldstein shall act as
          a benefit to the Buyer during transition and for continued  operations
          and benefits of the Corporation thereafter,  and such hiring shall not
          be deemed to constitute an apparent  conflict-of-interest  on the part
          of  Mr.  Goldstein.  Buyer  further  agrees,  within  14  days  of the
          Effective  Date to cause its Board of Directors to appoint  Richard C.
          Goldstein  as a  director  of  Pacific  Telcom,  Inc.  and to have Mr.
          Goldstein serve on the same terms and conditions as the members of the
          existing Board of Directors of the Buyer.

     4.6  Repayment of Capital and Sharing of Revenues.  It is the understanding
          ---------------------------------------------
          of Buyer and Sellers,  that the Closing of this Purchase  Agreement is
          in escrow until the Date as described  in Section 4.1  "Finality".  In
          the event that the  transaction  does not close on the  Closing  Date,
          Buyer and Sellers shall undo the subject  transaction of this Purchase
          Agreement,  pursuant to Section  4.1  "Finality",  in such event,  the
          parties agree that there shall be a resulting  Joint  Venture  between
          them  concerning  the Capital  Investment  made by the Buyer in having
          equipped four new cities with the capacity for the services to be sold
          by the  parties  and the  revenues  derived  from the joint  marketing
          efforts of the Buyer and Sellers.  Under the terms of such a resulting
          Joint Venture,  revenue,  after deduction of Buyer approved  operating
          costs, will be apportioned as follows:  one third of such revenues are
          to be  apportioned  to Buyer to be  taken as a credit  toward  capital
          expenditures  in  new  geographical   markets,  as  set  forth  above;
          thereafter  remaining  revenues shall be divided equally between Buyer
          and Sellers.  Upon  completion of repayment of Buyer for the aforesaid

<PAGE>
          capital  investments,  such joint venture  revenues shall be shared by
          the parties  equally,  after payment of all  pre-approved  or budgeted
          costs.   In  the  event  that  Buyer  and  Sellers  undo  the  subject
          transaction  to the Purchase  Agreement and establish such a resulting
          Joint  Venture,  it is  expressly  agreed  that all prior  sources  of
          revenues of the Corporation and all subsequently  developed sources of
          revenues  exclusively  generated by the  Corporation  shall remain the
          sole property of the Corporation and shall not be considered  revenues
          attributable to the resulting Joint Venture.

     4.7  Liabilities.   Except  as  set  forth  in  the  un-audited   Financial
          -----------
          Statements  of the  Corporation  of March 31, 1999 (a copy of which is
          attached  hereto as Exhibit E), copies of which have been delivered to
          the Buyer,  the  Corporation is possessed of  liabilities  regarding a
          loan  payable  in the  current  amount  due of  $25,000.  Buyer  shall
          expressly  assume this loan,  which  carries a monthly debt service of
          approximately  $3,500.00, and Buyer shall be entitled to ownership and
          title of a cash deposit of $32,500.00 as security for the repayment of
          the  principal   amount  of  the  loan  in  its  aggregate  amount  of
          approximately $79,870 as of February 9, 2000.

     4.8  Accounts  Receivable.  With  respect to all accounts  receivable,  the
          --------------------
          Buyer shall be vested with title to all such  accounts  receivable  in
          existence on April 30, 2000.

     4.9  Employee  Benefits.  Any  and all  liability  of the  Corporation  for
          ------------------
          employee  benefits  or for paid  vacations  or for any other  employee
          benefit  accruals,  shall  be paid in full as of the  Effective  Date.
          Sellers'  Representative  shall  provide Buyer with such a certificate
          that such actions have taken place as Buyer may reasonably request.

     4.10 Tax Returns.  Sellers' Representative will timely file, or cause to be
          -----------
          filed on behalf of the  Corporation,  any tax  returns  required to be
          filed with respect to any taxes for the fiscal period ending March 31,
          2000 to reflect the operations of the  Corporation up to and including
          that date.  All such tax returns shall be prepared and filed using tax

<PAGE>
          accounting methods and principals which are consistent with those used
          in tax returns for preceding tax periods, by the Chartered Accountants
          of the Corporation.

     4.11 Deposit With Visa.  Any and all deposits  maintained  with Visa as and
          ------------------
          for  security for the  processing  of credit card  transactions  shall
          remain  unaffected  by the  subject  transaction,  but  title  to such
          deposit  shall be  transferred  to the Buyer,  as part of the  subject
          transaction.

     4.12 Other Financial  Benefits.  It is agreed by the parties that the Buyer
          -------------------------
          shall have full rights,  title and interest to all accounts receivable
          of the Corporation,  and shall receive the right to claim  non-capital
          loss carry forward amounts on the Corporation's balance sheet as other
          and further benefits to the Buyer pursuant to the subject transaction.

Section 5.0 Representations and Warranties of the Corporation.  Except as may be
            -------------------------------------------------
     set forth on a Schedule of Exceptions, attached hereto as Schedule Q, to be
     presented at the Effective  Date,  the  Corporation  hereby  represents and
     warrants to the Buyer as set forth below.  The Schedule of Exceptions shall
     be presented by the Corporation to the Buyer prior to the execution of this
     Purchase Agreement and shall be attached hereto as an exhibit. The Schedule
     of Exceptions  shall  specifically  identify the relevant  sub-paragraph of
     this  Agreement,  and the  statements  made in each  Schedule of Exceptions
     shall be deemed to be representations and warranties as if made hereunder.

     5.1  Organization and Standing;  Articles and Bylaws.  The Corporation is a
          ------------------------------------------------
          corporation  duly  incorporated  and  validly  existing  and  in  good
          standing  under the laws of the Province of Ontario.  The  Corporation
          has  requisite  corporate  power and  authority to own and operate its
          properties  and  assets,  and to carry on its  business  as  presently
          conducted and as proposed to be  conducted.  The  Corporation  is duly
          qualified and  authorized  to do business,  and is in good standing in
          each  jurisdiction  where  the  nature  of its  activities  and of its
          properties (both owned and leased) makes such qualification  necessary
          and where a failure  to do so qualify  would  have a material  adverse
          effect  on its  business  or  properties.  The  Articles  in the  form
          attached  hereto as  Exhibit F have been filed  with the  Minister  of
          Commercial Relations before the date hereof.

<PAGE>
     5.2  Corporate  Power.  The Corporation will have at the Effective Date and
          ----------------
          on the  Closing  Date all  requisite  legal  and  corporate  power and
          authority to execute and deliver this  Agreement  and to carry out and
          perform its obligations under the terms of this Agreement.

     5.3  Subsidiaries.  The  Corporation  has  no  subsidiaries  or  affiliated
          ------------
          companies  and  does  not  otherwise  own  or  control,   directly  or
          indirectly, any equity interest in any corporation or entity.

     5.4  Capitalization.  The  authorized  capital stock of the  Corporation on
          --------------
          February  4, 2000  consists  of a)  6,315,000  shares of common  stock
          issued  and   outstanding  and  b)  540,500  Class  A  special  shares
          convertible  to 3.7  common  shares  each  issued and  outstanding  on
          February 4, 2000. The outstanding shares have been duly authorized and
          validly issued, and are fully paid and nonassesable and were issued in
          compliance  with all relevant  securities  laws. The  Corporation  has
          reserved:  (i)  600,000  shares of  common  stock  for  issuance  upon
          exercise of various  options held by directors,  employees and service
          providers; and (ii) 1,999,850 shares of common stock for issuance upon
          conversion  of Class A  special  shares;  and  there  are (i) no other
          options,  warrants or other rights to purchase any of the  Corporation
          's authorized and unissued capital stock, or any security  directly or
          indirectly  convertible  into or  exchangeable  for  shares of capital
          stock of the Corporation,  (ii) so far as known to the Corporation, no
          voting  trust or  voting  agreements  among,  or  irrevocable  proxies
          executed by, stockholders of the Corporation, (iii) so far as known to
          the  Corporation,  no agreements  among  stockholders  proving for the
          purchase  or sale of the  Corporation  's capital  stock,  and (iv) no
          obligations  (contingent or otherwise) of the Corporation to purchase,
          redeem or  otherwise  acquire any shares of its  capital  stock or any
          interest therein or to pay any dividend or make any other distribution
          in respect  thereof.  All such  issued  and  outstanding  options  and
          warrants  have  been  duly  and  validly  issued  in  compliance  with
          applicable federal and state securities laws.

     5.5  Authorization.  All corporate  action on the part of the  Corporation,
          -------------
          its  directors  and  shareholders  necessary  for  the  authorization,
          execution,  delivery and performance of this Agreement and delivery of
          the shares has been taken prior to the Effective  Date. The shares are
          free of any liens,  encumbrances,  or restrictions and are not subject
          to any preemptive rights or rights of first refusal.

<PAGE>
     5.6  Liabilities. Except as set forth in Corporation's financial statements
          -----------
          as of March 31, 1999,  copies of which have been heretofore  delivered
          to Buyer, the Corporation has no liabilities or obligations,  absolute
          or contingent,  except  liabilities  and  obligations  which have been
          incurred  in the  ordinary  course of business  none of which,  in the
          aggregate,  exceeds $10,000,  except such liabilities as are disclosed
          in the financial statements of the Corporation in Exhibit E.

     5.7  Title to Properties and Assets;  Liens,  Etc.  Except for purchase and
          --------------------------------------------
          lease and similar  arrangements  covering minor assets such as copiers
          and postage meters,  the Corporation has good and marketable  title to
          its material  properties and assets, is not in default of any material
          lease,  in each case  subject to no  mortgage,  pledge,  lien,  lease,
          encumbrance  or charge,  other than the lien of current  taxes not yet
          due and payable, except as set forth in Exhibit G.

     5.8  Compliance with Other Instruments.  Corporation is not in violation of
          ---------------------------------
          any term of its Articles or Bylaws,  or in any material respect of any
          term  or  provision  of  the  mortgages,   indebtedness,   indentures,
          contracts, agreements, or instruments or any other material agreement,
          or any judgment or decree. The best of its knowledge,  the Corporation
          is  not in  violation  of  any  order,  statute,  rule  or  regulation
          applicable to the Corporation  where such violation  would  materially
          and adversely  affect the  Corporation;  to the  Corporation's  actual
          knowledge,  the Corporation is not in violation of any order,  statute
          or regulation applicable to the Corporation.  The execution,  delivery
          and performance of and compliance with this Agreement has not resulted
          and will not result in any material violation of, or conflict with, or
          constitute a material  default under,  the  Corporation's  Articles or
          Bylaws or any of such material  agreements  nor result in the creation
          of, or mortgage,  pledge, lien,  encumbrance or charge upon any of the
          material properties or assets of the Corporation.

     5.9  Litigation. There are no actions, suits, proceedings or investigations
          ----------
          pending  against the  Corporation  or its  properties  or in which the
          Corporation is the plaintiff,  before any court or governmental agency
          nor, to the  Corporation's  knowledge,  is there any threat thereof or
          any reasonable basis therefor.

     5.10 Employees.  To  the  Corporation's   knowledge,  no  employee  of  the
          ---------
          Corporation  is in violation of any  material  term of any  employment
          contract,  if  any,  exclusive  agreement  or any  other  contract  or
          agreement  relating  to the  relationship  of such  employee  with the
          Corporation  or any other party  because of the nature of the business

<PAGE>
          conducted or to be conducted by the  Corporation.  The  Corporation is
          not aware that any officer or key  employee,  or that any group of key
          employees,  intends  to  terminate  his or  its  employment  with  the
          Corporation,  nor does the  Corporation  have a present  intention  to
          terminate the employment of any key employee.  The  Corporation has in
          all material  respects  complied with all  applicable  Provincial  and
          federal laws related to employment.

     5.11 Exclusive Licenses. The Corporation (i) owns and has the right to use,
          ------------------
          free and clear of all  liens,  charges,  claims  and  restrictions  an
          Exclusive  License  Agreement  between the  Corporation  and Infotrust
          TELCO and an Exclusive  Re-Sellers  Agreement  with  Universal  Office
          Corporation, attached hereto as Exhibit H and Exhibit I, necessary for
          the  operation  of its  business  now  conducted  and  proposed  to be
          conducted,  and (ii) the  Corporation  is not  obligated  or under any
          liability whatsoever to make payments by a way of royalties,  fees, or
          otherwise  to any owner or  licensee of the  Exclusive  License of the
          Exclusive  License  Agreement,  with  respect to the use thereof or in
          connection  with the conduct of its  business,  or  otherwise.  To the
          knowledge of the  Corporation,  the Corporation has not infringed upon
          nor is it  infringing  such  Exclusive  License or other  intellectual
          property of any third party. The Company is not aware of any violation
          of  the  Company's  Exclusive  License  Agreement,  or  its  Exclusive
          Re-Sellers Agreement or other proprietary rights.

     5.12 Duties to Option  Holders.  Pursuant to Section 4.4,  the  Corporation
          -------------------------
          holds a grant of  authority  to hold,  in a fiduciary  capacity,  such
          shares of Pacific Telcom,  Inc. common stock equivalent to accommodate
          the exercise of outstanding  options of employees and certain  special
          service  providers  of the  Corporation.  The  Corporation  agrees  to
          perform the distribution of such common shares of Buyer to such option
          holders  promptly  upon the  exercise of such options and it is agreed
          that the Corporation  shall be entitled to retain the proceeds of such
          exercise.  The Corporation agrees to indemnify and hold harmless Buyer
          and its  officers,  directors  and  agents  harmless  from any and all
          damages, losses, costs, or expenses suffered or incurred,  directly or
          indirectly, through application of the Corporation's or Buyer's assets
          or  otherwise,  as a result  of any and all  claims,  demands,  suits,
          causes of action, proceedings,  judgments, and liabilities,  including
          reasonably counsel fees incurred in litigation or otherwise, assessed,
          incurred or  sustained  by or against  any of them with  respect to or
          arising out of any such indicia  fiduciary duty by the  Corporation to
          any such option holder.

     5.13 Brokers or  Finders.  There are no claims for  brokerage  commissions,
          --------------------
          finders'  fees  or  similar   compensation   in  connection  with  the
          transactions  contemplated  by this Agreement based on any arrangement
          or agreement made by or on behalf of the Corporation.

     5.14 Operating  Rights.  The  Corporation  has  all  operating   authority,
          -----------------
          licenses,  franchises,  permits,  certificates,  consents,  rights and
          privileges (collectively  "Authority") as are necessary or appropriate
          to the  operation of its business as now  conducted and as proposed to
          be  conducted  and which the failure to possess  would have a material
          adverse effect on the assets, operations or financial condition of the
          Corporation.   Such  Authority  are  in  full  force  and  effect,  no
          violations  have been or are expected to have been recorded in respect
          of any  such  authority,  and no  proceeding  is  pending  or,  to the
          knowledge  of the  Corporation,  threatened  that could  result in the
          revocation or limitation of any such  authority.  The  Corporation has
          conducted  its business so as to comply in all material  respects with
          all such Authority.

     5.15 Minute Books.  The minute books of the Corporation  contain a complete
          -------------
          summary of all meetings of directors and  shareholders  since the time
          of  incorporation  and  reflect all  transactions  referred to in such
          minutes accurately in all material respects.

     5.16 Taxes.  All federal and Provincial tax returns required to be filed by
          -----
          the Corporation have been filed and are true in all material respects,
          and all taxes, assessments,  fees, and other governmental charges upon
          the Corporation, or upon any of its properties, income, or franchises,
          shown in such  returns  to be due and  payable  have been paid  except
          those  contested  by the  Corporation  in good faith as  described  in
          Exhibit J and for which adequate  reserves have been set up; or if any
          such tax  returns  have not been  filed or if any such  taxes have not
          been paid or so reserved  for,  the failure to so file or to pay would
          not in the aggregate have a material  adverse impact on the properties
          or business of the Corporation.

     5.17 Disclosure.  None of the  representations  or  warranties  made by the
          ----------
          Corporation  in  this  Agreement  and no  written  information  in the
          Exhibits hereto or otherwise furnished to the Buyers in this Agreement
          or Exhibits contain any untrue statement of a material fact or omit to
          state a  material  fact  necessary  in order  to make  the  statements

<PAGE>
          contained  herein and therein not  misleading.  The Corporation is not
          aware of any fact which has not been  disclosed  to the  Buyers  which
          would have a material  adverse effect on the  Corporation's  business,
          prospects,   condition,   affairs  or  operations.   The   Corporation
          acknowledges  that all  information  set forth in the Exhibits  solely
          from reliance from  information  supplied to Buyer by the  Corporation
          and that the  Corporation  is not  aware of any  error,  omission,  or
          untrue statement of a material fact in the information  relied upon by
          the Buyer in the preparation of the Exhibits.

     5.18 Transactions  with Affiliates.  Except for (i) regular salary payments
          ------------------------------
          and fringe  benefits under an individual's  compensation  package with
          the Corporation,  and (ii) certain advances that have been made to the
          Corporation  by certain key  employees  as described on Exhibit K, and
          (iii) certain related party transactions involving consulting fees and
          rent as  described  in  Exhibit  L, none of the  officers,  employees,
          directors,  or  affiliates  of the  Corporation,  or  members of their
          families  is a party to any  agreements,  understandings,  or proposed
          transactions  with the Company.  The Corporation has not guaranteed or
          assumed any obligations of the Corporation's  officers,  directors, or
          employees.

     5.19 Corporation's   Contracts.   Except  with   respect  to  contracts  or
          ------------------------
          understandings  between the Corporation and its customers entered into
          in the  ordinary  course  of  business,  all  material  contracts  and
          agreements  of  the   Corporation   (i)  with  expected   receipts  or
          expenditures in excess of $10,000, or (ii) with provisions restricting
          or affecting the  development  or  distribution  of the  Corporation's
          products or services,  or  (iii)that  provide  indemnification  by the
          Corporation with respect to infringements  of proprietary  rights,  to
          which the  Corporation  is a party as of the Effective Date are listed
          on Exhibits H and I. All such  contracts  and  agreements  are legally
          binding, valid, and in full force and effect in all material respects.
          The  Corporation  has  received  no  indication  of  reduced  activity
          relating  to any  contract  or  agreement  with  any  customer  of the
          Corporation,  and the  Corporation  has no  knowledge  of any  current
          customer of the Corporation  that intends to reduce or discontinue its
          business with the Corporation.

     5.20 Financial  Statements.  The  Corporation  has  delivered to the Buyers
          ---------------------
          un-audited  financial statements for the periods ending March 1, 1999.
          All such financial  statements fairly present the financial  condition
          of the  Corporation  as of such dates and the results of operations of
          the Company for such respective periods.

     5.21 Absence of Certain  Changes.  There has not been since January 1, 2000
          ----------------------------
          up to and including the Effective  Date, any event or condition of any
          character   which  has   materially   and   adversely   affected   the
          Corporation's business,  prospects,  conditions,  affairs, operations,
          properties or assets, including but not limited to:

          5.21.1 any material adverse change in the financial condition, assets,
               liabilities or business of the Corporation;

          5.21.2 any damage,  destruction  or loss of any of the  properties  or
               assets of the  Corporation  (whether or not covered by insurance)
               materially  and adversely  affecting the business or plans of the
               Corporation; or

          5.21.3 any labor  trouble,  or any  other  event or  condition  of any
               character,  which  the  Corporation  knows or has  reason to know
               would  materially  and adversely  affect the business or plans of
               the Corporation.

     5.22 Employee  Benefits.  Except  for  stock  options  outstanding  on  the
          ------------------
          Effective  Date,  forth in  Exhibit  M, the  Corporation  has no other
          currently  existing  employment,   bonus,  pension,   profit  sharing,
          deferred  compensation,   stock  bonus,  retirement,  stock  purchase,
          phantom stock or similar plans.

     5.23 Absence of Undisclosed Liabilities.  The Corporation does not have any
          -----------------------------------
          outstanding claims, liabilities, obligations, or indebtedness, whether
          accrued,  absolute,  contingent, or otherwise,  except as set forth in
          the Balance Sheet or referred to in the footnotes thereto,  other than
          liabilities  incurred  subsequent  to the  Balance  Sheet  Date in the
          ordinary  course of  business.  The  Corporation  is not in default in
          respect of the terms or conditions of any indebtedness.

<PAGE>
     Section  6.   Representations  and  Warranties  of  the  Buyer.  The  Buyer
                   -------------------------------------------------
          represents  and  warrants  to  the  Corporation  with  respect  to the
          purchase of the Shares as follows:

     6.1  Organization. Buyer is a Corporation duly organized and existing under
          ------------
          the laws of the State of  Illinois,  and has all  requisite  corporate
          authority to make,  execute,  deliver and perform this  Agreement  and
          this  Agreement has been duly  authorized and approved by all required
          corporate action of the Buyer. Buyer has an authorized single class of
          common  stock in the amount of  25,000,000  shares.  On the  Effective
          Date, Buyer has 8,949,459 outstanding shares.

     6.2  No violation.  Neither the  execution and delivery of this  Agreement,
          ------------
          nor the  consummation  of the  transactions  contemplated  within  the
          Agreement  will  constitute a violation of, or be in conflict with, or
          result in a cancellation  of, or constitute a default under, or create
          or  cause  the  acceleration  of any  debt,  obligation  or  liability
          affecting,  or resulting in the creation or imposition of any security
          interest,  lien, or other  encumbrance upon any of the assets owned or
          used by, or any of the capital stock of the Buyer under:  (i) any term
          or  provision of the  Articles of  Incorporation  or by-laws of Buyer;
          (ii) any judgment,  decree, order, regulation, or rule of any court or
          government  authority;  (iii) any statute or law;  (iv) any  contract,
          agreement,  indenture,  lease or other  commitment to which Buyer is a
          party or by which it is bound; or (v) cause any material change in the
          rights  or  obligations  of  any  party  under  which  such  contract,
          agreement, indenture, or commitment.

     6.3  No Impairment.  Buyer is not impaired by any law,  regulation or order
          -------------
          of any  court or  federal,  state,  municipal  or  other  governmental
          department, commission, board, bureau, agency, or instrumentality and:
          (i) there  are no law  suits,  proceedings,  claims,  or  governmental
          investigations  pending  or to  the  knowledge  of  Buyer,  threatened
          against or involving Buyer which could materially impair its business;
          and (ii) there are no judgments,  consents,  decrees,  injunctions, or
          any other  judicial or  administrative  mandates  outstanding  against
          Buyer  which  impair  and  adversely  affect  its  property,   assets,
          liabilities,  financial condition,  results of operations, or business
          prospects or its right to conduct is business as presently conducted.

     6.4  Disclosure.  None of the  representations  or  warranties  made by the
          ----------
          Buyer in this  Agreement and no written  information  furnished to the
          Selling  Shareholders  in this  Agreement  or  otherwise,  contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary in order to make the statements contained herein and therein

<PAGE>
          not misleading.  The Buyer is not aware of any fact which has not been
          disclosed  to the  Selling  Shareholders  which  would have a material
          adverse   affect  on  the  rights  and   obligations  of  the  Selling
          Shareholders.

     6.5  Shares of the  Buyer.  The  outstanding  shares of the Buyer have been
          -------------------
          duly   authorized  and  validly   issued,   and  are  fully  paid  and
          non-assessable  and were  issued  in  compliance  with all  applicable
          federal and state  securities  laws.  The  issuance of Buyer's  shares
          transferred  to the  Selling  Shareholders  herein  are  with  out the
          requirement  of regulatory  approval from any  applicable  federal and
          state  regulatory  agency.  The common shares of the Buyer paid to the
          Selling  Shareholders  hereunder  are,  at  the  Effective  Date,  not
          publicly  tradable,  have not been registered to be traded publicly on
          the Effective  Date, and on the Effective Date no public market exists
          for the  trading  of such  common  shares of the  Buyer.  Certificates
          representing  the  authorized and issued common shares of the Buyer as
          part of the Purchase  Price  hereunder  are issued with a  restrictive
          legend pursuant to relevant federal securities laws and rule making of
          the United States  Securities  and Exchange  Commission  including the
          Securities and Exchange Act of 1933,  the  Securities  Exchange Act of
          1934, Regulation D thereunder and Rule 144 thereunder. As such, shares
          of the  Buyer  acquired  by the  Selling  Shareholders  as part of the
          Purchase Price herein, are not freely  transferable or freely tradable
          until such time as a publicly tradable market for the common shares of
          the Buyer  does  exist,  whereupon  the  general  counsel of the Buyer
          shall, upon the request of a Selling Shareholder,  issue such a letter
          of opinion to the public  transfer  agent of the Buyer  setting  forth
          such an opinion regarding the free tradability and  transferability of
          common shares of the Buyer held by a Selling  Shareholder.  Thereupon,
          such shares are deemed to be freely tradable.  Costs of such letter of
          opinion  shall be paid by the  Buyer.  The  Buyer  shall  use its best
          efforts to register all of its  outstanding  common shares at the time
          of its public offering.

     6.6  Dilution.  Buyer  represents  that shares of the Buyer acquired by the
          --------
          Selling  Shareholders  pursuant to the subject transaction are subject
          to significant  and substantial  dilution in the future.  Buyer hereby
          discloses  that  Selling   Shareholders   shall  not  be  acquiring  a
          substantial   enough  proportion  or  percentage  of  the  outstanding
          issuance of common stock of the Buyer to acquire management control of
          the Buyer, elect directors or officers of the Buyer or in other method
          or  manner  prevent  such  future   dilution.   Selling   Shareholders

<PAGE>
          acknowledge  the  representation  further of Buyer that,  in the event
          such dilution occurs,  it is foreseeable that such a dilution would be
          substantial  and  would  have a  significant  effect in  reducing  the
          percentage of ownership of the Selling Shareholders,  individually and
          collectively.

     6.7  Access  to  Data.   Buyer  has  had  an  opportunity  to  discuss  the
          ----------------
          Corporation's  business,  management  and  financial  affairs with its
          management and the opportunity to review the Corporation's most recent
          un-audited financial statement for a complete fiscal year and business
          plan.  Buyer has also had an  opportunity to ask questions of officers
          of the Corporation which questions were answered to its satisfaction.

     6.8  Brokers or Finders.  The Buyer has not, and will not, incur,  directly
          ------------------
          or  indirectly,  as a result of any action  taken by such  Buyer,  any
          liability for brokerage or finders' fees or agents' commissions or any
          similar charges in connection with this Agreement.

     6.9  Tax Liability.  To the extent it deems necessary, it has reviewed with
          --------------
          its own tax  advisors  the  federal,  state,  local  and  foreign  tax
          consequences of this investment and the  transactions  contemplated by
          this  Agreement.  It  relies  solely on such  advisors  and not on any
          statements or representations of the Corporation or any of its agents.
          It understands that it (and not the Corporation)  shall be responsible
          for  its  own  tax  liability  that  may  arise  as a  result  of this
          investment or the transactions contemplated by this Agreement.

Section 7.  Representations and Warranties of Selling Shareholders.  The Selling
            ------------------------------------------------------
     Shareholders (collectively and individually severally represent and warrant
     to the Buyer with respect to the purchase of the shares as follows:

     7.1  Access to Data.  The Selling  Shareholders  have had an opportunity to
          ----------------
          discuss the terms and  conditions of the Purchase  Agreement  with the
          Corporation's  management and have had an opportunity to ask questions
          of officers of the Corporation, which questions were answered to their
          satisfaction.

     7.2  Authority.  The Selling  Shareholder has all requisite legal power and
          ---------
          authority  to  execute  and  deliver  this   Purchase   Agreement  and
          certificates for the shares of the Corporation  hereunder and to carry
          out and perform its obligations under the terms of this Agreement.

<PAGE>
     7.3  Disclosure.  To the best of his or her knowledge, this Agreement, with
          ----------
          the  Exhibits  thereto,  when taken as a whole,  does not  contain any
          untrue statement of a material fact concerning the corporation or omit
          to state a material  fact  necessary  in order to make the  statements
          concerning the corporation contained herein not misleading in light of
          the circumstances under which they were made.

     7.4  Impairment. There are no actions, suits, proceedings,  which impair in
          ----------
          any way such  Selling  Shareholders'  ability  to enter into and fully
          perform its commitments  and  obligations  under this Agreement or the
          transactions contemplated hereby.

     7.5  Brokers or Finders.  The Selling  Shareholder  has not,  and will not,
          --------------------
          incur,  directly,  or  indirectly,  as a result of any action taken by
          such Selling Shareholder, any liability for brokerage or finders' fees
          or agent's  commissions or any similar charges in connection with this
          Agreement.

     7.6  Compliance  With  Other  Instruments.  The  execution,   delivery  and
          ------------------------------------
          performance  of  and   compliance   with  this   Agreement,   and  the
          transference  and  delivery of shares will not result in any  material
          violation of, or conflict with, or constitute a material default under
          any    agreement,    lien,    mortgage,    pledge,    encumbrance   or
          collateralization on the part of the Selling Shareholder.

     7.7  General  Release.  In  consideration of the agreements made hereunder,
          ----------------
          each of the Selling  Shareholders hereby release and forever discharge
          the  Buyer  and  the  Corporation,  and  each of  their  shareholders,
          officers,  agents,  representatives,  attorneys, and employees,  past,
          present,  and future,  individually  and  collectively for any and all
          claims,  demands,  causes of action or  liabilities  which each of the
          Selling  Shareholders  ever had or now has,  apart from  vested  stock
          options, advances to the Corporation or consulting fees accrued, which
          each of the Selling  Shareholders  ever had or now has, or which their
          heirs,  executors or administrators  hereafter can, shall, or may have
          upon or by a reason of any matter or cause  whatsoever,  whether known
          or  unknown,  suspected  or  unsuspected,  arising  on or prior to the
          Effective  Date,  arising out of or in any way connected  with each of
          the   Selling   Shareholders'   relationship   to   the   Corporation.
          Notwithstanding  the above,  this release shall not affect the Selling
          Shareholders'  rights  and  obligations  otherwise  set  forth in this
          Agreement.

<PAGE>
     7.8  Tax Returns.  The Selling  Shareholders will be solely responsible for
          ------------
          any and all taxes  incurred as a result of any  taxable  event to them
          generated  by the  entry  into  or  performance  of any  term  of this
          Agreement.

Section 8.  Conditions  to Buyer's  Obligations.  The exchange of documents  and
            -----------------------------------
     shares by the  parties  purchase  of the  shares on the  Effective  Date is
     conditioned  upon and  subject to the  fulfillment  of  obligations  of the
     Sellers at or prior to the Effective Date as contained herein.

     8.1  List of Selling  Shareholders.  The  Corporation  shall deliver to the
          -------------------------------
          Purchaser  on or before the  Effective  Date,  relative  to  surviving
          shareholders,  a list of: (i)  unexercised  options of the Corporation
          setting forth the name of the option holder,  the address,  the number
          of  unexercised  options,  the exercise  price of such options and the
          expiry  date,  to be set forth as Exhibit M; (ii) a list of  remaining
          holders  of Class A  special  shares  setting  forth the names of such
          surviving shareholders,  addresses,  number of shares on the Effective
          Date and the  amount  of  unpaid  cumulative  dividends  stated  in US
          Dollars and set forth in this Agreement as Exhibit N; and (iii) a true
          and correct copy of the terms of the preferences and rights of Class A
          special  shares,  as set  forth  in  the  Articles  of  Incorporation,
          by-laws,  or corporate  minutes,  to be attached to this  Agreement as
          Exhibit O.

     8.2  Supplemental  Due Diligence.  The Corporation  shall provide the Buyer
          ----------------------------
          not later  than  seven  days from the  Effective  Date with a true and
          correct copy of the Articles of Incorporation of the Corporation,  the
          by-laws of the  Corporation,  the  complete  corporate  minutes of the
          Corporation, and a certificate of good standing, or such equivalent as
          is applicable to the Corporation.

     8.3  Stock  Certificates.  Buyer shall  receive stock  certificates  of the
          -------------------
          Selling Shareholders representing all of the common shares of stock of
          the Corporation,  duly endorsed for transfer as provided herein at the
          Effective Date, or accompanied by executed  assignments  separate from
          certificates  with a stock power, in a form satisfactory to the Buyer.
          All endorsements on certificates, assignments or stock powers shall be
          signature guaranteed.

<PAGE>
     8.4  No Material  Adverse Change.  Prior to the Effective Date, there shall
          --------------------------
          be no  material  adverse  change  in the  assets or  liabilities,  the
          business or condition,  financial or otherwise of the  Corporation and
          the Sellers'  representative  shall deliver to Buyer a certificate  in
          the form set forth as  Exhibit  P,  dated the  closing  date,  to such
          effect.

Section  9.  Conditions  to the Sellers' Obligations.  The exchange of documents
             ---------------------------------------
     and shares by the parties on the  Effective  Date is  conditioned  upon and
     subject to the fulfillment of the conditions set forth below.

     9.1  Receipt of Purchase Price.  The Selling  Shareholder(s)  shall receive
          -------------------------
          the Deposit and the shares pursuant to the terms of Section 2.0.

     9.2  Proceedings.  All  proceedings  to be  taken  in  connection  with the
          -----------
          transactions contemplated by this Agreement and all documents incident
          thereto  shall be  reasonably  satisfactory  in form and  substance to
          Sellers and counsel.

     9.3  Performance  of  Obligations.  The  Buyer  shall  have  performed  and
          ----------------------------
          complied with all  agreements  and  conditions  herein  required to be
          performed or complied with by them on or before the Effective Date.

Section  10.  General  Provisions.
              -------------------

     10.1 Amendment and modification.  Subject to applicable law, this Agreement
          ---------------------------
          may be amended,  modified  or  supplemented,  as the parties  mutually
          agree,   by  a  written   Agreement   signed   by  a  duly   appointed
          representative of the Buyer and a duly appointed representative of the
          Selling Shareholders.

     10.2 Expenses.  The  parties  hereto  shall pay all of their  own  expenses
          --------
          relating to the transactions contemplated by this Agreement, including
          the fees and expenses of their respective  counsel,  accountants,  and
          financial advisers.

     10.3 Governing Law. The  interpretation  and construction of this Agreement
          --------------
          and all matters  relating  hereto shall be governed by the laws of the
          State of Illinois  relating to  contracts  made and to be performed in
          Illinois.

<PAGE>
     10.4 Waiver of Terms.  Any of the terms or conditions of this Agreement may
          ----------------
          be waived at any time by the party or parties entitled to the benefits
          thereof,  but  only  by a  written  notice  signed  by  an  authorized
          representative   of  the  party  or  parties  waiving  such  terms  or
          conditions.

     10.5 Captions.  The  article  and  section  captions  used  herein  are for
          --------
          reference  purposes  only, and shall not in any way affect the meaning
          or interpretation of this Agreement.

     10.6 Publicity.  Prior to the Effective  Date,  none of the parties  hereto
          ---------
          shall issue any press release or make any other statement to the media
          relating to this  Agreement or the matters  contained  herein  without
          obtaining the prior approval of the Buyer.

     10.7 Notices.  All  notices,  requests,  demands  and other  communications
          -------
          required or permitted  hereunder will be in writing and will be deemed
          to have been  duly  given  when  delivered  by hand or by air  express
          courier.

          If  to  the  Buyer:    Pacific  Telcom,  Inc.
                                 5604  Sligo  St.
                                 Las  Vegas,  NV
          Attention:  Bill  J.   Angelos

          With  a  copy  to:     Kenneth  G.  Mason
                                 General  Counsel
                                 33  N.  LaSalle  St.,  Ste.  2131
                                 Chicago,  IL  60602

          If to the Sellers to:  Richard  C.  Goldstein
                                 EasyTel  Canada
                                 18  King  Street  East,  Ste.  1402
                                 Toronto,  Ontario  M5C1C4
                                 Canada

          With a copy to:        Barry  M.  Polisuk
                                 Garfinkle,  Biderman
                                 1  Adelaide  St.  East  #1401
                                 Toronto,  ON  M5C2V9

<PAGE>
     10.8 Entire  Agreement.  This Agreement  contains the entire  understanding
          -----------------
          between and among the parties and supersedes any prior  understandings
          and  agreements  among  them  respecting  the  subject  matter of this
          Agreement.

     10.9 Agreement  Binding.  This  Agreement  shall be binding upon the heirs,
          ------------------
          executors,  administrators,  successors  and  assigns  of the  parties
          hereto.

     10.10Pronouns and Plurals.  All pronouns and any  variations  thereof shall
          --------------------
          be deemed to refer to the masculine,  feminine,  neuter,  singular, or
          plural as the identity of the person or persons may require.

     10.11Presumption.  This  Agreement  or any  section  thereof  shall  not be
          -----------
          construed against any party due to the fact that said Agreement or any
          section thereof was drafted by said party.

     10.12Further  Action.  The  parties  hereto  shall  execute and deliver all
          ---------------
          documents,  provide all  information and take or forbear from all such
          action as may be necessary or  appropriate  to achieve the purposes of
          the Agreement.

     10.13Parties in  Interest.  Nothing  herein shall be construed to be to the
          -------------------
          benefit of any third  party,  nor is it  intended  that any  provision
          shall be for the benefit of any third party.

     10.14Savings  Clause.   If  any  provision  of  this   Agreement,   or  the
          ---------------
          application of such provision to any person or circumstance,  shall be
          held invalid,  the remainder of this Agreement,  or the application of
          such  provision  to  persons or  circumstances  other than those as to
          which it is held invalid, shall not be affected thereby.

<PAGE>
     IN  WITNESS WHEREOF, this Agreement has been executed by the parties hereto
on  the  day  and  year  first  written  above.

PACIFIC  TELCOM,  INC.                  EASYTEL  CANADA  CORPORATION
an  Illinois  Corporation               an  Ontario  Corporation

By:____________________________         By:____________________________
     Bill J. Angelos, President             Richard  C.  Goldstein
                                            President

Selling  Shareholders

By:____________________________
     Richard  C.  Goldstein
     Sellers'  Representative

<PAGE>EXHIBIT "A"
                                   -----------

Section  3.3.1
--------------

                      SHAREHOLDER'S LIST OF EASYTEL CANADA

                                FEBRUARY 11, 2000

     Set  forth  below are the existing holders of common stock on the Effective
Date.

<TABLE>
<CAPTION>

                                 SHARES OF          SHARES OF
SHAREHOLDER NAME               EASYTEL CANADA  PACIFIC TELCOM, INC.
-----------------------------  --------------  --------------------
<S>                            <C>             <C>
Richard C. Goldstein                1,200,000               134,607
53 Hetherington Crescent
Thornhill, Ontario L4J 2M9

Cindy Black Goldstein               1,200,000               134,607
53 Hetherington Crescent
Thornhill, Ontario L4J 2M9

Melissa Goldstein                     600,000               100,954
53 Hetherington Crescent
Thornhill, Ontario L4J 2M9

Jacob Goldstein                       600,000               100,954
53 Hetherington Crescent
Thornhill, Ontario L4J 2M9

Goldstein Family Trust                300,000                33,649
53 Hetherington Crescent
Thornhill, Ontario L4J 2M9

First Republic Securities           2,100,000               168,260
53 Hetherington Crescent
Thornhill, Ontario L4J 2M9

InfoUSA                               630,000                70,669
8530 Wilshire Blvd., Ste. 404
Beverly Hills, CA 90211

  Sub-total                         6,630,000               743,703

Richard Bogoroch                       85,100                 9,546
15 Caravan Dr.
North York, ON M3B 1M9

Michael Bourgon                        42,550                 4,773
18 Hume Dr.
Cambridge, ON N1T 2W1

Brian Crossley                         85,100                 9,546
844 Maple Ave.
Milton, ON L9T 3N4

Nancy Dal Bello                        85,100                 9,546
35 Peru Rd.
Milton, ON L9T 2V5

Bruce Davidson                        166,500                18,677
430 Bell St.
Milton, ON L9T 2B5

Greg Boehm & Assoc. Inc.               85,100                 9,546
Investment Centre
C-100 Victoria St. North
Kitchener, ON N2H 6R5

Eldon Kelly                            85,100                 9,546
2572 Misener Ct.
Mississauga, ON L5K 1N1

Keith Bundy                           118,400                13,281
356 Bell St.
Milton, ON L9T 2B4

David Jeffrey                          92,500                10,376
1795 Solitaire Ct.
Mississauga, ON L5L 2P2

Anne Lotz-Turner                       85,100                 9,546
7611 Appleby Line
Milton, ON L9T 2Y1

Gerald McGibbon                        92,500                10,376
2135 Madden Blvd.
Oakville, ON L6H 3M3

Loretto Sarracini                      85,100                 9,546
1403-1155 Bough Beeches Blvd.
Mississauga, ON L4W 4N9

Louis Solakofski                       85,100                 9,546
893-B Adelaide St. West
Toronto, ON M6J 3T1

Frank Esposito                         92,500                10,376
4040 Erindale Station Road
Mississauga, ON L5C 3T8

Edward O'Rourke                        85,100                 9,546
29 Strathroy Crescent
Waterdown, ON L0R 2H0

Betty MacDonald                       185,000                20,752
714 Robertson Crescent
Milton, ON L9T 4V5

Colin MacKenzie                        96,200                10,791
543 Marcellus Dr.
Milton, ON L9T 4E7

Charles Sammut                         85,100                 9,546
592 White Oak Dr.
Cambridge, ON N1S 4J6

Hazel Schachner                        85,100                 9,546
7035 Twiss Rd.
R.R. #3
Campbellville, ON L0P 1B0

Beryl Stevenson                        85,100                 9,546
79 Mary St.
Georgetown, ON L7G 4V9

Ken Thompson                           92,500                10,376
297 Oak St.
Milton, ON L9T 1H6

  Sub-total                         1,999,850               224,328

Barry Polisuk                          60,000                 6,730
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Randall Skala                          60,000                 6,730
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Lisa MacLeod                           50,000                 5,609
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Andrea Hardy                           40,000                 4,487
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Andy Walczak                           25,000                 2,804
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Jeff Seaton                            10,000                 1,122
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Bob Coffey                             10,000                 1,122
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Erik Schwartz                          15,000                 1,683
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

Markus Sauerbier                       15,000                 1,683
c/o EasyTel Canada
18 King St. East, Suite 1402
Toronto, ON M5C 1C4

  Sub-total                           285,000                31,969

  Grand Total                       8,914,850             1,000,000

</TABLE>

<PAGE>
                                   EXHIBIT "B"
                                   -----------

Section  3.3.2
--------------

               February  11,  2000

Illinois  Stock  Transfer  Co.
209  W.  Jackson  Blvd.,  Ste.  903
Chicago,  IL  60606

RE:     Pacific  Telcom,  Inc.  Acquisition  of  EasyTel  Canada

Dear  Sirs:

     Please  be  advised  that I am the Secretary and General Counsel to Pacific
Telcom,  Inc.  Be  further advised that on this date, a Stock Purchase Agreement
was  entered  into  between  Pacific  Telcom,  Inc.  and shareholders of EasyTel
Canada,  a  corporation  organized  under  the  laws  of the Province of Ontario
whereby  Pacific  Telcom,  Inc. is purchasing 100% of the issued and outstanding
shares of the common stock of EasyTel Canada.  As consideration, Pacific Telcom,
Inc.  is  issuing  1,000,000  authorized  newly  issued  shares  to  the  common
shareholders  of  EasyTel  Canada and pursuant to the authority delegated to the
undersigned  you  are  hereby  authorized  and  directed to issue, upon Original
Issue,  such  shares  in  book  entry  form  as  separately directed.  They have
prepared a final shareholders list effective this date stating the name, address
and  number of shares of Pacific Telcom, Inc. each such shareholder is receiving
in  exchange  for that shareholder conveying its common shares of EasyTel Canada
to  Pacific  Telcom, Inc.  It is agreed between the parties that shareholders of
EasyTel  Canada  shall  not on the date hereof receive in excess of 1,000,000 of
Pacific  Telcom,  Inc.  Pursuant to the by-laws of Pacific Telcom, Inc., you are
hereby  prevented  from  issuing any fractional shares and that all issuances of
Pacific  Telcom,  Inc. stock on a stock-for-stock basis must be in whole shares.

     It  is  the  agreement  between the parties to the Stock Purchase Agreement
that  at  the  date  hereof  be  the  Effective  Date  of this transaction, this
direction  is  being forwarded to you to issue 1,000,000 of Pacific Telcom, Inc.
common stock in book form to the Selling Shareholders of EasyTel Canada in share
amounts  set  forth  in  their shareholder list.  The dates of issuance is to be
February  11,  2000  and  all  shares  in book form should be in accounts marked
stop/restricted  based  upon  such  issuance  date.
Illinois  Stock  Transfer  Co.
February  11,  2000
Page  2

     Upon  my  personal  delivery  to  your  offices  of  actual  certificates
representing  the  endorsed  shares of the Selling Shareholders of their EasyTel
Canada  common  stock,  you  are  directed  to convert the Selling shareholder's
ownership  from  book  form  to  certificated  form  and  to transmit such stock
certificates to the Selling Shareholders, individually with a transmittal letter
substantially  in  the  form  set  forth  as  an  enclosure.

     Upon  your  receipt  of  this  letter,  please call me at (312) 372-6969 to
signify  your  receipt  and  acknowledgment  of  the  terms  of  this  letter of
instruction.

                                       Very  truly  yours,

                                       Kenneth  G.  Mason
                                       General  Counsel  and
                                       Secretary

KGM/mpz
Enclosure

<PAGE>
                                   EXHIBIT "C"
                                   -----------

Section  3.3.3
--------------

Dear  (Shareholder):

     It  is  my  extreme  pleasure  to  enclose  your  stock  Certificate(s) for
_________  shares  of  common  stock of Pacific Telcom, Inc.  The Certificate(s)
represents  your  ownership  in  the  holding  company,  exchanged  for your old
certificate(s)  in  EasyTel  Canada  Corporation.

     I  appreciate your confidence in the company and will always work very hard
to  make  sure  you receive a proper return on your investment.  As always, feel
free  to  contact  me  with any comments or concerns you may have in the future.

                                       Respectfully  yours,

                                       Bill  J.  Angelos
                                       President
                                       Pacific  Telcom,  Inc.

Enclosure

<PAGE>
                                   EXHIBIT "D"
                                   -----------

Section  4.4
------------

EasyTel  Canada  Post  Transaction  Operation  Expenses

      1.     Rent
      2.     Utilities
      3.     Customer  Service  salaries
      4.     Operating  officer  salary
      5.     Bookkeeper  salary

<PAGE>
                                   EXHIBIT "E"
                                   -----------

Section  4.7
------------

                           EASYTEL CANADA CORPORATION

                         UN-AUDITED FINANCIAL STATEMENTS

                                 MARCH 31, 1999

<PAGE>
                                   EXHIBIT "F"
                                   -----------

Section  5.1
------------

                          ARTICLES OF INCORPORATION OF

                           EASYTEL CANADA CORPORATION

<PAGE>
                                   EXHIBIT "G"
                                   -----------

Section  5.7
------------

                        STATEMENT OF LIENS OF CORPORATION

      1.     Bank  of  Montreal

      2.     Bank  of  Montreal

     Both  liens  represent  security  given pursuant to the Corporation's Small
Business  Loan.

<PAGE>
                                   EXHIBIT "H"
                                   -----------

Section  5.11
-------------

                       EXCLUSIVE LICENSE AGREEMENT BETWEEN

                               INFOTRUST TELCO AND

                           EASYTEL CANADA CORPORATION

<PAGE>
                                   EXHIBIT "I"
                                   -----------

Section  5.11
-------------

                     EXCLUSIVE RE-SELLERS AGREEMENT BETWEEN

                        UNIVERSAL OFFICE CORPORATION AND

                           EASYTEL CANADA CORPORATION

<PAGE>
                                   EXHIBIT "J"
                                   -----------

Section  5.16
-------------

                         CONTESTED TAXES AND ASSESSMENTS

The  Corporation  has  no  contested  taxes  and assessments and has no reserve,
accordingly.

<PAGE>
                                   EXHIBIT "K"
                                   -----------

Section  5.18
-------------

                  ADVANCES TO THE CORPORATION BY KEY EMPLOYEES

The  Corporation  has  received and has shown on its balance sheet shareholders'
advances  in  the  amount  of  $37,039  from  Richard  C.  Goldstein.

<PAGE>
                                   EXHIBIT "L"
                                   -----------

Section  5.18
-------------

                           RELATED PARTY TRANSACTIONS

     1.   The  Corporation  incurred in 1999 a  consulting  fee in the amount of
          $40,000 paid to First Republic Securities  Corporation,  a Shareholder
          of the Corporation.

     2.   In 1999, First Republic paid rent in the approximate amount of $15,000
          for  office  space  to the  corporation,  for  which  the  corporation
          provided administrative services valued at approximately $5,000.

<PAGE>
                                   EXHIBIT "M"
                                   -----------

Section  5.22
-------------

                            OUTSTANDING STOCK OPTIONS

     Set  forth  below  are the existing holders of outstanding Stock Options on
the  Effective  Date.

Name  of  Option  Holder     Number  of  Options     Expiry  Date
------------------------     -------------------     ------------

     None

<PAGE>
                                   EXHIBIT "N"
                                   -----------

Section  8.1
------------

                          CLASS A SPECIAL SHAREHOLDERS

     Set forth below are the existing shareholders of the Class A special shares
on  the  Closing  Date.

                         Unpaid
Name  of  Shareholder     Number  of  Shares     Cumulative  Dividends
---------------------     ------------------     ---------------------

     None

<PAGE>
                                   EXHIBIT "O"
                                   -----------

Section  8.1
------------

                            RIGHTS AND PREFERENCES OF
                          CLASS A SPECIAL SHAREHOLDERS

     Set  forth  on  Pages  3,  3A  and  in  the  attachments.

<PAGE>
                                   EXHIBIT "P"
                                   -----------

Section  8.4
------------

                           NO MATERIAL ADVERSE CHANGE

                       SELLERS' REPRESENTATIVE CERTIFICATE
                       -----------------------------------

     RICHARD  C.  GOLDSTEIN,  the  Sellers'  Representative herein represents to
Buyer  that  prior  to  the  Effective  Date herein, there have been no material
adverse  change  in  the  assets  or  liabilities,  the  business  or condition,
financial  or  otherwise,  of  the  Corporation,  its  employees  or  customers,
including,  but  not  limited  to,  those  changes  that  are  a  result  of any
legislative  or  regulatory  change,  revocation  of  any license or right to do
business,  fire,  explosion,  accident,  casualty,  labor  trouble, flood, riot,
condemnation  or  act  of  God  or  other  public  force  or  otherwise.

Dated:  February  11,  2000

____________________________
Richard  C.  Goldstein
Sellers'  Representative

<PAGE>
                                   EXHIBIT "Q"
                                   -----------

Section  5.0
------------

                             SCHEDULE OF EXCEPTIONS

     I, Richard C. Goldstein, President of EasyTel Canada Corporation, do hereby
state that the representations and warranties of the Corporation made herein and
contained  in this Agreement and/or in the Exhibit delivered pursuant hereto are
true and correct, to the best of my knowledge, and that any exceptions as to the
representations  and  warranties  of  the  Corporation as set forth in the Stock
Purchase  Agreement  to  which  this  Certificate  is an Exhibit are as follows:

                                      None

                                       ____________________________
                                       Richard  C.  Goldstein,  President
                                       EasyTel  Canada  Corporation

<PAGE>

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